Realty News Roundup: FDI-Backed Cos Allowed To Lease Surplus Realty To Group Firms; Piramal Realty Launches Project In Thane

Realty News Roundup is PropGuide's selection of top stories from the real estate sector

Top News

The Department of Industrial Policy and Promotion (DIPP) allows companies backed by foreign direct investment (FDI) to lease or sub-lease out surplus real estate to other companies within the group. This move will not violate the FDI policy on real estate. A DIPP statement reads, "Facility sharing agreements between group companies through leasing/sub-leasing arrangements for the larger interest of business will not be treated as 'real estate business' within the provisions of the Consolidated FDI policy circular of 2015." Read more.

Tamil Nadu Chief Minister Jayalalithaa has announced, the state will build homes to cater to the low income group. Constructed across the state, the project will cost Rs 1,700 crore. This will include 2,300 flats at Ambattur in Chennai, 500 flats for government servants in 'C' and 'D' category at Villivakkam and Padi in Chennai, and a total of 2,800 units will be developed by Tamil Nadu Housing Board (TNHB) in Kancheepuram, Vellore, Cuddalore, Krishnagiri, Salem, Madurai and Tiruchi districts. The government aims to develop a total of 12,500 residential units across the state in the current fiscal year. Read more.

A The Indian Express report suggests that the Western Province Development project, announced by Sri Lanka's newly elected government will pose a huge investment opportunity for Indian real estate developers, once it takes off. Prime Minister Ranil Wickremesinghe, after his victory in August, had created a new portfolio, the Ministry of Megapolis and Western Province Development. This portfolio will implement the estimated $300 billion city development and urban renewal project spanning the entire Western province. Read more.

Off the front page

In a move to promote affordable residential properties, Mumbai Metropolitan Region Development Authority (MMRDA) has decided to build affordable homes in the remote areas of the city and construct Bus Rapid Transport System (BRTS) to cater to these dwellings. These will be developed where land price is relatively low. The BRTS service will help ease travel between these residential units, which will be a minimum 10 km away from the railway stations. Read more.

Meanwhile, Fullerton India Credit Co Ltd, a non-banking finance company, aims Rs 500-600 crore disbursement in the affordable residential segment in its first year of operations. The company sees huge opportunity in the affordable home segment and will begin residential property financing in November. Read more.

Gurgaon-based Developer Group India is expanding its real estate operations in the Britain along with Japan's Tama Home. The group plans to launch a residential project in London by the end of this year.

In another development, Ozone Group is in talks with private equity (PE) funds to raise Rs 700 crore for its 150-acre township, Ozone Urbana, in Bengaluru. This mixed-use township will have residences, offices, a hotel and homes for senior citizens. The project will have a saleable area of 11 million sq ft and will be developed in four phases. The project is expected to complete by 2021.

New launches: Piramal Realty has launched a mixed-use development project, Piramal Vaikunth, in Thane. Spread across 32 acre, the project will have 14 towers having 2BHK and 3BHK apartments, duplexes and townhouses. The project is being designed by Chicago-based architectural firm HOK, 200-300 residential units will developed in the first phase of construction. The property in the project will be priced at Rs 8,080 per sq ft for standard units and Rs 8,640 per sq ft for premium units. Read more.

Opinion

"Real estate is making a comeback of sorts," says Prakash Diwan, Altamount Capital Management, in this interview. He also called Godrej Properties and Sobha Developers, hidden gems.

Business World has published an article that tells how real estate developers can build trust among their customers. Before you start looking for the short-cuts to success, it is important to cater to your customers' needs, the article says. Read here.