Ravi Karandeekar's Pune Shops, Malls, Offices and IT Parks News Links Blog

Pune excels over Hinjewadi!

2010-06-26T08:40:00.000+05:30

The Seven Stars of India — India's best performing micro markets for occupiers,' a report on a joint study by the Confederation of Indian Industry and real estate advisory firm Jones Lang LaSalle Meghraj, released on Friday, has suggested that seven major Indian cities, including Pune, have witnessed warming up of the commercial realty market and this may be the right time to strike long-term lease deals as 2011 may see a sharp upward trend in rentals.

The report says, in the face of severe cost pressure during 2009, both domestic and multinational players curbed real estate costs and expansion plans. The global economic recovery, along with rising software and services exports, has once again fuelled demand from the IT/ITES sector which accounted for nearly half of the absorption witnessed in the first quarter of 2010. A similar story was observed in India's 'sunshine sectors' of telecom, pharmaceuticals and manufacturing which, spurred by low rents, only provided weak, opportunistic demand for office space in 2009. The Q1 of 2010 has seen a surge in demand from the banking and financial services and telecom sectors in particular. Going forward, the IT/ITES and BFSI sectors will lead the charge as net absorption of office space is forecasted to grow 29.5 per cent from 19.6 million sq.ft. in 2009 to 42.6 million sq.ft. in 2012.

Most micro-markets are expected to reach their rental lows within the next two-three quarters, which indicates that the window of opportunity for occupiers, where balance of power favours them, continues to shrink with every passing quarter, the report says. The report lists Magarpatta, Kharadi, Kalyaninagar, Yerawada, Nagar Road, Vimannagar, Aundh and Baner as the promising micro districts in Pune. Pune excels over Hinjewadi due to better infrastructure and proximity to residential locations, presence of support infrastructure such as hotels, malls, educational and medical facilities. The city witnessed an average annual absorption of 2.2 million sq.ft. from 2007-2009 (against less than a million sq.ft. in Hinjewadi over the same time span), due to relatively larger rental correction. Encompassing major locations like Magarpatta, Kharadi and Kalyaninagar, state-of-the-art IT infrastructure, together with a well established transportation network and quality LEED certified office space (amidst bottomed out rentals) make Pune attractive.

To read more, please, visit The Times of India

Office rentals in Pune real estate market drop by 5 per cent - Report

2010-01-18T12:59:00.002+05:30

The rentals in the CBD of National Capital Region, Bangalore, Hyderabad and Kolkata remained constant; whereas in Mumbai and Chennai, the rentals dropped by three per cent and in Pune by five per cent owing to limited leasing activity.

The market report also adds that over the past quarter, the office real estate market has shown an uptrend in terms of level of enquiries, which more positively has also resulted in enhanced deal velocity.

Whilst the IT/ITeS sector has been slower to get onto the recovery path, corporate office space take-up has been quite encouraging; FIs, FMCG and Telecom sectors have all contributed to the same.

As supply has overtaken demand facilitating increased competition, better quality developments are attracting demand.

To read more, please, visit Office rentals stable: Report

Office property market yet to beat slump

2009-11-25T07:42:00.002+05:30

The office property market, which was hit hard in the aftermath of the global economic slowdown, will take at least a year to come out of the slump as demand for offices is still subdued, say fund managers, consultants and realty developers.

Office market is still in shambles and it is primarily dependent on economic growth. Since companies in banking and financial services are not expanding into various geographies, there is no fresh demand. Existing tenants are renegotiating rents.

Infotech and ITES sectors consume over 50 per cent of office supply in the country, but since the global economic slowdown, IT/ITES companies have also scaled back their plans due to lower business from the US and European clients.

To read more, please, visit Business Standard

Retail rentals: Revenue sharing new buzzword

2009-11-23T18:06:00.004+05:30

For landlords, rev share, a pre-determined precentage share of sales at the store, is emerging as a better option than vacant space.

The trend has caught on at most of Pune’s premier high street areas, except the traditional market of Laxmi Road due to high demand and low availability.

“The highest correction in rentals has been on the Jangli Maharaj (J.M. Road) and MG Road high street shopping areas, where the correction has been up to 30%,” said Anand Dutta, who heads the retail practice in Pune for property consultants Jones Lang LaSalle Meghraj (JLLM).

Retail rentals in the city, based on carpet area, are now in the range of Rs 20-40 per sq ft. However, the prime high street locations offer rates at the upper end of the range.
To read more, please, visit The Economic Times:

From a near flat level till June this year, Magarpatta City has leased over 4 lakh sq ft office space till now! - Satish Magar

2009-11-12T08:58:00.008+05:30

Commercial realty picks up momentum in Pune:

Commercial real estate including retail spaces which took a bigger hit in the wake of the economic slowdown, is showing an upward trend as demonstrated by the plans of some major world bands to enter the city, says the quarterly report of realty research and advisory firm Cushman & Wakefield (C&W).

A new kind of leasee-lessor relationship:

"IT firms are back in expansion mode and have started hiring, which has triggered the activity in this segment," Satish Magar, President of Credai Pune (Confederation of Real Estate Developers' Associations of India) and chairman and managing director of Magarpatta city Development Corporation, said, adding that the retail segment too is warming up again as consumer confidence returns and a new kind of leasee-lessor relationship evolves.

"From a flat rental agreement, we are now on a fixed plus floating rental basis where a leasee pays a minimum guaranteed rental and shares revenues with the developer. This has reduced the initial burden on the retailers easing their liquidity problems."

Minimum Guarantee and Revenue-sharing Models:

Anand Dutta, head (retail) Pune for real estate consultancy Jones Lang LaSalle Meghraj, said retail transactions have picked up noticeably, following a marked upsurge in shopper sentiments and a generalised correction in retail real estate rentals.

"An increasing number of retail landlords in Pune's malls and on key high street locations have opened up to the minimum guarantee and revenue-sharing models. The general stance now is that if a retailer is making money, landlords are willing to offer reductions on rentals if the retailer is willing to share his topline. "

To read more, please, visit Commercial, residential realty picks up momentum in city

Jewel Square at Koregaon Park, high-value retail space in Pune, is now almost 90 per cent booked out!

2009-11-12T08:32:00.009+05:30

High-end brands like Mango, Promod, Aldo, Charles & Keith and Tommy Hilfigher, are entering Pune's mall territory for the first time, with Jewel Square at Koregaon Park!

Thanks to new retail real estate rental models:

Retail transactions in Pune have picked up noticeably, following a marked upsurge in shopper sentiments and a generalised correction in retail real estate rentals. Properties are now more viable for retailers and the current scenario is considered as being far more amenable to their bottom lines, than it was before.

Moreover, an increasing number of retail landlords in Pune's malls and on key high-street locations, have opened up to the minimum guarantee and revenue sharing models. The general stance now is that if a retailer is making money, landlords are willing to offer reductions on rentals, if the retailer is willing to share his topline

.
Pune's retail real estate sees revival in premium brands on prominent high streets:

As a result, a number of retailers in Pune are now once again looking at expansion. Interest has revived, not only in malls but also on Pune's more prominent high streets of MG Road, JM Road, Aundh's Parihar Chowk and Kothrud's Karve Road.

The highest activity levels, in terms of expansion, are currently being witnessed among vanilla retailers in the apparel, accessories, hypermarkets and jewelry categories.

Anand Dutta, Head (retail) Pune, Jones Lang LaSalle Meghraj - The Economic Times

Launch:

Pune shops for commercial space

2009-11-08T06:53:00.002+05:30

But rentals and demand are nowhere near what prevailed during boom times:

In the last ten months, nearly 1.3 million sq.ft was leased out to the IT sector, indicating that there are signs of revival. But there is still around 3 million sq.ft in various stages of development. So it will take two to three years more for the demand-supply mismatch to be equalized. The rentals too are in the region of Rs 35-40 per sq.ft for the cold shell, against Rs 50-70 depending on the location at the height of the boom.

According to observers, the most preferred area in Pune for commercial space is Jangli Maharaj Road and Deccan Gymkhana, where the prevailing lease rent is Rs 200 per sq.ft. followed by Mahatma Gandhi Road and Koregoan Park with rents here in the Rs 125-150 per sq.ft range.

Typically, proprietors prefer to sign agreements for 60 months with an MoU permitting extension for another four years.

The agreement usually provides for a raise in the monthly rent by 6-8 per cent at the end of every year, and a refundable deposit of 6-10 months rent that has to be paid upfront before the property is occupied. Most agreements are registered and the stamp duty and registration fee shared equally by the two parties.

To read more, please, visit The Hindu Business Line :

Low rentals make mall developers, retailers opt for revenue sharing

2009-11-07T18:03:00.002+05:30

Of every 10 new malls, 6 to 7 opt for this model, according to Cushman & Wakefield (C&W)

With slowdown seemingly slipping away from sight, an increasing number of mall developers and retailers are now opting for rental revenue sharing model. As vacancy levels and rentals continue to dip especially in the metros, developers are banking on this 'performance based sharing' scheme to make up for the damages.

According to industry experts, the model comprises retailers sharing a percentage of their sales with real estate developers as a way of sharing risks. The move to adopt such a model is seen to be triggered by low footfalls that has been the bane of retailers since some time as well as lower rentals which has been troubling real estate developers during the slowdown.

The revenue share model has so far proved fruitful for retailers as well. Arvind Brands, for instance, has played with the revenue sharing model for its different formats including Megastore. "We have been playing two different types of revenue sharing model. One is where we are not required to pay any rentals to the real estate developers, and therefore, the revenue sharing ratio is higher. Second is where we pay certain amount of rentals as well as share part of our revenue," says J Suresh, chief executive officer of Arvind Brands Limited.

For large formats like Megastore, the retail company has opted for the former type of model, while for smaller formats it chooses to pay rentals apart from sharing revenue.

"Much of that depends on format, place as well as market scenario. Even the ratio is different for different formats. While we offer a ratio of 6-8 per cent for value formats, for lifestyle and premium formats it goes up to 15-20 per cent," adds Suresh, whose company pegged a turnover of Rs 440 crore for the financial year 2008-09.

To read more, please, visit BusinessStandard

Bangalore emerges as a clear preference for sectors like office and retail real estate

2009-10-01T00:14:00.000+05:30

Survival to Revival – Indian realty sector on the path to recovery:

Bangalore has emerged as a clear preference for sectors like office and retail, while coming a close third in the residential and hospitality according to Cushman & Wakefield, a retail estate research firm. In its report Cushman & Wakefield GRI India Real Estate Investment report 2009: ‘Survival to Revival – Indian realty sector on the path to recovery,’ the firm said that Bangalore is expected to see the highest demand for office space in the period 2009 – 2013 with approximately 34 million sq.ft.

The expected recovery in the IT/ITeS sector would have a positive effect on the demand in Bangalore, the preferred location for many IT/ ITeS companies.

The demand for retail sector is also expected to be the highest in Bangalore with approximately 7 million sq. ft. while demand for residential is expected to be approximately 570,000 units over 2009 – 2013, with the highest compounded annual growth rate at 14 per cent. The hospitality sector in Bangalore too is forecast to register the highest compounded annual growth of about 26 per cent in demand, followed by NCR at 24 per cent and Pune at 23 per cent.

The city of Chennai is expected to witness the second highest demand for office space in India between 2009 to 2013 with a projected cumulative 27.2 million sq ft

To read more, please, visit Bangalore Emerging as Most Preferred Real Estate Destination

What makes an office building green?

2009-07-27T17:13:00.010+05:30

"Energy saving, water conservation and reusing waste"

Green offices can save companies as much as 60% over time and halve water-use. Indian companies started thinking green four years ago when a draft Energy Conservation Building Code was published, specifying energy norms for commercial buildings.

Today, a green building can be certified either by the globally recognised LEED (Leadership in Energy and Environment Design) or GRIHA (Green Rating for Integrated Habitat Assessment), a voluntary rating appropriate for Indian conditions.

India currently has 34 LEED-rated buildings and 26 awaiting a GRIHA rating.

A green office saves energy, re-uses water, disposes of waste and uses debris effectively

Exteriors

Use double glazed windows, which can reduce energy consumptions by 8-10 % Insulate roofs paint them white, make terrace gardens, use thermal barriers Benefits of retrofitting accrue in 6-10 years

Lighting

Replace T12 fluorescent lights with energy-efficient T5 ones Automate lighting controls, use occupancy sensors

Furniture

Have low partitions More open spaces Have skylights

Office Equipment

Use computers with LCD monitors or laptops, which consume five times less electricity than desktop PCs

Thermal Comfort

Have a centralized AC system, automatically set to 26 degrees Clean AC condenser coils, which reduces energy bill by 20%

Plank of Excellence

Pradeep Sachdeva, a green architect who built ecofriendly buildings such as Dilli Haat cites Gandhi Ashram in Wardha as an example of a perfect building. Like the father of the nation, this building is minimalist and as natural as it can get, be it sunlight, ventilation or materials (bamboo, mud plaster, timber, mud floors), all of which have been procured from nearby places. Other buildings which he says deserve mention include ITCs Green Center and the soon to be opened Royal Gardenia, Bengaluru.

To read more, please, visit - Perfectly green? Sunday TOI

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Highway on his menu

2009-07-14T05:31:00.002+05:30

Barista Lavazza's Sanjay Coutinho is eyeing the lucrative food market for growth - he's rolling out eateries along highways that compete with local dhabas:

Another growth opportunity is along highways. Coutinho says that he has identified 15 highways where there is sufficient movement of travellers who could stop at a Barista store. Like the one at Murthal, search is in full swing for the right property along the highways that connect Delhi with Agra and Jaipur and Mumbai with Pune, Ahmedabad and Goa. “We plan to open on both sides of the highway,” says Coutinho. The key challenge for Coutinho will be to get the branding and visibility of the stores right so that travellers do not miss it while cruising at high speed on the highway.

Barista actually runs a store on the Bangalore-Mysore highway — Murthal will be its second. The rent is just 5 to 7 per cent of sales, compared to 20 per cent in cities, while the number of tickets is more or less the same as in cities — highway stores run round the clock. The average ticket size is Rs 275, way above the average for Espresso bars and close to that of the Creme cafes. Of course, the store is bigger, about 2,000 sq ft, because large toilets need to be provided for the highway travelers.
To read more, please, visit - business-standard.com

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DLF sells its stake in a 50:50 joint venture with Ackruti City for developing two office buildings spread over nine million sq ft at Andheri, Mumbai

2009-07-09T13:49:00.004+05:30

DLF plans to raise around Rs 10,000 crore through asset sale in the next three years:

These two buildings are part of a larger slum rehabilitation project being developed by Ackruti City. DLF had picked up stake in the project over two years ago with the strategy to spread its footprint across the country.

As part of the stake sale in Andheri project, DLF will receive Rs 200 crore plus the proportionate cost of construction done so far in the project. Around 20% of the construction work is complete, which may fetch DLF another Rs 20-25 crore, a DLF executive said. DLF has already received a token amount for the deal.

DLF exited the project as part of its asset sale programme to raise Rs 5,500 crore by the end of this fiscal.
To read more, please, visit - The Economic Times

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Cushman & Wakefield and Technopak tie-up

2009-01-18T10:29:00.004+05:30

Cushman & Wakefield (a privately held real estate services firm and retail real estate services provider) and Technopak (a management consulting firm in retail) have come together to offer a unified platform for end-to-end retail services.

The partnership will deepen Cushman & Wakefield’s capabilities for its clients in the retail industry by providing access to Technopak’s retail strategy and consulting services. Technopak’s clients will in turn get access to Cushman & Wakefield’s global platform of real estate market intelligence, management expertise and a broad range of real estate services.

The alliance would have over 500 professionals with a diversified skill base in retail industry with geographic reach across 100 cities in India.
To read more, please, visit - The Hindu Business Line

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Big retailers not keen to anchor new malls

2008-12-31T13:56:00.001+05:30

In what could make things worse for mall developers, big retailers, including Future Group, are now not too keen on being the first to open stores in new malls.

Department stores or hypermarket chains are usually the first to sign up as anchor tenants in a new mall. This helps the mall developer get other tenants on board easily as the presence of a big retailer ensures minimum footfall in the mall.

Anchor tenants have traditionally been crucial to the success of malls. Large department stores or lifestyle chains, which usually occupy a significant chunk of retail space—sometimes as much as 25%—ease off pressure on mall developers.

It’s good for a mall to have one or more anchor tenants as shoppers are initially drawn to the anchor stores.

Anchors, in turn, have their rents significantly discounted. It’s easier for mall developers to convince other smaller retailers to come on board once they have signed up an anchor tenant.

“The economic environment has changed and retailers are not confident of developers’ ability to get enough footfalls. That’s why no retailer would like to be the first to test the water.

Anchor tenants’ hesitation will make life difficult for mall developers, as they are already facing excess retail capacity.
To read more, please, visit - The Economic Times

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Cinemax signs up for 300 more screens by 2012

2008-12-30T15:09:00.003+05:30

Cinemax multiplex chain, which has 22 plexes and 65 screens in its fold at the moment, has signed up for another 300 screens by 2012

This would involve an investment of Rs 500 crore embracing around 100 properties. Interestingly, Cinemax will throw open three properties in Kolkata between the close of 2008 and 2009.

'For the last few years, we have followed a 'clutter' approach and concentrated largely on Mumbai. Half the existing 22 plexes are based in Mumbai. One of the reasons is that our core competency is real estate and these properties are located in Mumbai. This reasons for our initial multiplexes in Mumbai being self-owned. Also, the movie industry is huge in this city. But now we are going pan-India with gusto,' says, Devang Sampat, senior vice-president, Cinemax.

At the moment, with its prime hub in Mumbai, the Cinemax chain dots Gujarat, Nasik, Nagpur, Panipat, Faridabad and Guwahati. The latest thrust on expansion will see us cutting across the country and adding on new centres like New Delhi, Pune, Hyderabad, Kochi and Bangalore among other locales.

Cinemax is part of the Kanakia Group who has a track record of over 20 years in real estate development. The Kanakia Group has developed over 5 million sq. ft. of Residential and Commercial real estate.
To read more, please, visit - Televisionpoint.com

Cinemax launches 1st property in Kolkata

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Naiknavare pitches a cheaper retail model as alternative to malls

2008-12-29T19:09:00.000+05:30

Naiknavare Developers Pvt. Ltd ties up with Michael Lloyd, Australia’s leading retail expert, to design and build shopping centers in Hadapsar and Viman Nagar

The Hadapsar and Viman Nagar projects will roll out an affordable retail model that can be an alternative to conventional malls, said Hemant Naiknavare. Most of the merchandise available at the centres will be private label, non-branded goods, which people with an eye on their family budget can afford, he said.

The shopping centres are designed to have everything that families need on a daily basis, from a grocery store to salons, cobblers, clothes and such like, he said.

The two shopping centres will serve a population of 50,000-75,000 residents each; while the Hadapsar project is already under way, the one is Viman Nagar is scheduled to start in January, Naiknavare added.

Being low-cost models, the projects will cost about Rs19 crore and are expected to be completed by the end of 2009.
livemint.com

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The recession in Indian real estate industry to impact the future developments of malls

2008-12-03T10:50:00.002+05:30

Do you worry about the future of mall culture in India?

I do worry. I do not want to be "culturally backward". I want to live international life style (like Gurgaon and Delhi!) in my hometown, Pune, in India. Like the real estate developers in Chandigarh, i also pry to good and hope that the mall culture will sweep Pune too sometime in the near future. What about you? Please, share your views in the comments. (Comments Policy)

Against much anticipation among the residents and the developers at the time of the launch, Uppal’s Centra Mall in the Industrial Area and DT Mall at IT Park Chandigarh, are still looking for takers. Maximum number of visitors here comprise of cine-goers. To read more, please, visit - Indian Express

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As global economic turmoil unfolds , several MNCs take a relook at their space requirements

2008-11-07T16:02:00.004+05:30

DLF vice-chairman Rajiv Singh says no client so far has backed out, but most of them have been “reluctant to commit space in the past 2 months.” Office space contributes major chunk of DLF’s revenue.

On company’s retail foray, Mr Singh said, “Our intention is to bring high-quality retailer to our malls and that’s why we keep engaging with them. But we have no intention to compete with our other tenants.”

Rajiv Singh says the company would try and fill the gap in its portfolio by acquiring suitable assets which come up for distress sale in a depressed real estate market. To read more, please, visit - DLF looks for distress sale, to stay Jr partner of retailers - The Economic Times

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Pune: an exception! Rental values rises in the range of 2-7 per cent in all micro markets!!

2008-08-07T09:38:00.000+05:30

IT-BPO industry holds back expansion plans due to slowdown fears- the commercial real estate market posts a lacklustre show in the 2nd quarter of 2008

The June quarter saw office space demand lagging far behind the supply levels of 18.07 million sq. ft. across major cities, as companies turned cautious.

According to Cushman & Wakefield, the demand in the quarter was at 9.74 million sq ft, dominated by absorption (where companies move-in or begin fit-outs) of 6.36 million sq ft, and only 3.38 million sq ft in fresh pre-commitments.

“There has been a slowdown in the actual transactions witnessed in the second quarter of 2008 owing to a number of factors, primary amongst which is a general slowdown of economy. However, the economic fundamentals of India are strong and we should expect demand pick-up by the fourth quarter of the year,” said Mr Kaustuv Roy, Director, Tenant Strategies & Solutions, India, Cushman & Wakefield.

The Hindu Business Line : Demand slowdown hits office space market

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IT companies find Pune rentals high-priced

2008-07-30T10:15:00.001+05:30

"Pune seems to be gradually losing its cost advantage among software companies. Many think that the rentals in the city are on their way up and could be a big deterrent for further investment.

Sunil Patil, president (Pune region), UBICS, a software company of the UB group, believes that the rentals may spoil the show. “Rentals in Pune for software companies have gone up 300% in three years. We are being offered space at Rs 65 per sq ft, which at $1.50 is the rate in Manhattan,” he said.

He was just echoing the prevailing sentiment among small and medium sized IT product firms that India’s cost competitiveness is slowly getting eroded. The shift in viewpoint clearly underlines the need to graduate to value arbitrage from cost, something many large companies have already achieved."
-The Economic Times

Pune IT parks news Pune commercial real estate blog Rentals in Pune for software companies Sunil Patil, president (Pune region), UBICS small and medium sized IT product firms India’s cost competitiveness

Despite rise in number of malls in a city, high street shops continue to flourish - Jones Lang LaSalle Megharaj survey

2008-07-21T15:38:00.007+05:30

This mall phenomenon had given rise to apprehensions that high street shops were heading for an ignominious death. But, a recent survey done by Jones Lang LaSalle Megharaj, a global real estate consultancy firm, found that despite rise in number of malls in a city, high street shops continue to flourish.

The survey suggests that the presence of new malls within an established high street increase the retail appeal and attractiveness of the entire stretch. It allows malls and high streets to equally benefit from a growing footfall base of consumers flocking to such a street where they can find a combination of both high street retailing and climate controlled shopping in new malls.

The report says, 'Though it is early days, the initial evidence does suggest the fact that departmental stores as well as malls and high streets can indeed play to each others strength.'

The report said the anecdotal evidence of the complementarity of high streets and malls comes from the few instances that were found in Bangalore, Chennai, Hyderabad, Kolkata and Pune where informal feedback from retailers along the shopping high street as well those in the operational malls suggested that both of them are benefiting from the presence of the other.

A senior consultant with the firm Tanaji Chakraborty says that the high street shops, which were facing tough times some time back, have come back with a vengeance. Particularly, in the fully developed area, where further expansion of retail outlets is not possible, the existing high street shops have regained their charm.

In the last couple of years, since consumerism is on the rise, these high street shopping areas are getting revitalized either by the association of shopkeepers or by municipal corporations to enhance the consumer experience.

This results into augmentation of retail attractiveness. The report said that revitalization of streets globally is a very serious issue and often this is linked to the issue of regeneration of entire region. Typically stakeholders of streets, retailers, property owners, mall developers, development authorities, local council, all collaborate to map out a regeneration strategy with a view to improve the economic and image impact of the street.

In India, the report said, this movement is at a very nascent stage, though undoubtedly as economic interest refocuses on prime inner city areas, which typically have superb locations but suffer from run down image , there would in future initiatives regenerate to unlock value.
India is witnessing retail boom

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IT/ITeS to fuel realty growth in '08

2008-07-08T17:28:00.011+05:30

Demand for office space has traditionally been driven by the IT/ITeS sectors that comprise software development and processing centres. This is expected to be the largest demand driver in 2008 as well. Of the total expected supply of 82.8 million sq.ft.in 2008, IT related developments will garner the largest chunk.

IDC India, a leading research firm predicts that the domestic IT / ITeS market revenue will touch Rs1,10,000 crore in 2008 while sustaining the growth of 27% registered in 2007.

The firm notes that uptime, availability and performance management of infrastructure and applications will be at the core of innovation. Besides tier-I cities like Mumbai, NCR, Bangalore and Pune, cities like Kolkata and Nagpur are also being promoted as attractive destinations for such companies.

Cities that score high on the software technology park or IT park index include Bangalore, Chennai, New Delhi, Mumbai, Hyderabad, Noida, Pune, Kolkata and the states of Tamil Nadu and Maharashtra. They already house the largest IT parks in the country.

“IT/ITeS has been the focus of the Indian real estate sector for the last four years and though demand for commercial space remains consistent as compared to 2007, supply has increased significantly in anticipation of stronger growth and demand,” said Sanjay Dutt, deputy managing director, Cushman & Wakefield.

“Tier 2 and 3 cities like Mysore, Mangalore, Coimbatore, Ahmedabad, Kochi, Indore and Nagpur provide lower operational costs since the Indian IT biggies have already ventured into them,” he added.

Given below is an analysis based on feedback from realty experts on how some of the most sought after cities in this space are poised in 2008.

Pune:

Buoyed by strong economic conditions, favorable demographics and consumer spending, the city is growing rapidly, a factor that is encouraging companies to chalk out expansion plans in this market. Organized retailing has increasingly shifted to newer residential pockets of Bavdhan, Hinjewadi and Baner due to their proximity to IT destinations.

The realty sector witnessed rapid growth in 2007 with maximum development in peripheral regions due to lack of large land parcels in central locations. Of this, majority of the development is concentrated in eastern and western parts of Pune.
The Rajiv Gandhi Infotech Park at Hinjewadi was one of the first developments to take place in the peripheral locations of the city. Hinjewadi’s strategic location, with proximity to the Mumbai —Pune expressway and the Mumbai — Bangalore highway has supported other developments in the region.

Of late, the eastern corridor along Nagar Road upto Magarpatta has also come up as a preferred location for the financial sector as well as the IT/ITES companies.
In 2007, a number of projects in the eastern zone obtained SEZ status. This includes the 400-acre Magarpatta City by Magarpatta Township Development & Construction Company Limited, a four million sq.ft of IT hub EON Free Zone by Panchshil Realty at Kharadi and SP Infociti by SPCL located at Sholapur Road.
Prominent projects that were operationalized in 2007 include TechPark on Airport Road, SP Infociti on Sholapur Road, Cybercity at Hadapsar, and GigaSpace and Weikfield IT Park at Vimannagar.

According to a report by realty consultants Knight Frank, approximately 7.02 million sq.ft of office space is expected to enter the market in 2008. Of this, the eastern zone will witness approximately 67% of the total supply. Important projects to be completed in 2008 include Commerzone at Yerawada, Cerebrum at Kalyaninagar and Eternia at Wakdewadi.
Puneet Wadhwa - livemint.com

Pune Mahanagar Parivahan Mahamandal Ltd floats a proposal to develop 2 lakh sq ft commercial space at Hadapsar, Pune Station and Kothrud

2008-03-29T20:25:00.005+05:30

In a departure from the past, Pune Mahanagar Parivahan Mahamandal Limited (PMPML) is exploring BOT (Build Operate Transfer) options and is looking to rope in private players who will develop the space for PMPML, and sublease it themselves to make good their investment. PMPML should benefit by at least Rs 7 crore from this move.

A civil department official said that PMPML is expected to clear for development a minimum of 40,000 sq ft at Pune Station, Hadapsar and Kothrud each — in all 1.2 lakh sq ft.

More space would be released when the company’s building department clears the request. Rajiv Dongre, of Dongre and Dongre Associates, an architects and engineers firm that has been retained by PMPML for the process of issuing tenders and planning purposes, said that up to 2-lakh sq ft of commercial space could be developed.
- ExpressIndia.Com

real estate Indian real estate Pune real estate Pune commercial real estate blog commercial space at Hadapsar commercial space at Pune Station commercial space at Kothrud BOT (Build Operate Transfer) Rajiv Dongre, Dongre and Dongre Associates Maharashtra Leave and Licence Act. lease rent Sanjeev Arora, director, Global Group

Organised retail to invest Rs 27,550 crore for penetrating the tier II and III cities like Pune, Chandigarh and Hyderabad

2008-03-24T19:47:00.006+05:30

With inflated metropolitan land prices and the growing untapped consumer markets in smaller cities, tier II cities such as Hyderabad, Kochi, Goa, Chennai, and Chandigarh are becoming the preferred destination for investment by these leading real estate players for exploring retail business opportunities, said ASSOCHAM President, Mr Venugopal N. Dhoot.

The fast-growing Indian economy has given a major thrust to changing consumer behaviour as reflected by the increase in investment announcements worth Rs 29,154 crore for setting up hyper-marts.
The Hindu Business Line : Corporates optimistic on retail boom; line up huge investments

Trumart business model - barely 4 months after acquiring an 84 % stake in Piramyd Retail, Indiabulls goes in for a major restructuring

2008-03-24T17:27:00.006+05:30

Retail is hardcore real estate business:

Indiabulls has closed five retail stores of Trumart, now known as Indiabulls Mart, one each in Thane, Jaipur and Pune and two in Ahmedabad. Indiabulls Director Gagan Banga said the company is applying its real estate skills to tighten the retail business.

“Retail is hardcore real estate business. You need real estate and good supply chain management; it is two businesses (combined) into one. It’s a zero-intellect business. The largest real estate player in the world is Wal-Mart, that’s why it is the largest retailer,” says Gagan Banga.

Bad real estate deals - high rentals:

1. Indiabulls has closed 5 stores
2. Opened 5 new stores (2 each in Ahmedabad and Pune and 1 in Jaipur)
3. 2 stores will open this Monday in Bhopal and Dewas.
4. The closed stores will be reopened in the same, or nearby areas, with better rental deals

Why are Indiabulls Marts closed down?

Observers said Trumart was paying high rentals, had issues of locations, merchandise, stock management, and was poorly managed.

1. the lease has expired
2. Indiabulls is either unwilling to accept a big hike in rentals
3. it has identified alternative sites, which offer a better real estate deal (lower rental and lower deposit).

Typically, these leases have a lock-in period of two years, where the rentals are hiked by five per cent every year, and 15 per cent every three years. The rentals have shot up in many metros, and in one such case the landlord was seeking a 40 per cent hike in rentals, which would have made the stores more unviable.

Expansion plans of Indiabulls Mart, Indiabulls Megastore and Indiabulls Wholesale:

In all, the group has set a target of 70 Indiabulls Mart and Megastore outlets by June and 100 by December.

When acquiring Piramyd, Indiabulls said it planned to scale up the number of Piramyd stores from 42 to over 150 stores by the end of next year.

It has scaled back its plans even as it gears up to launch its first hypermarket, under Indiabulls Wholesale, in April.
Indiabulls banks on realty skills to run Trumart

Related Stories:

1. Piramyd`s Trumart is now Indiabulls Mart

2. Indiabulls to enter retail with 30 hypermarkets in tier II cities; chooses Costco’s model for business

real estate Indian real estate Indian retail real estate Pune retail real estate blog restructuring business model Piramyd Retail Indiabulls Thane retail real estate Jaipur retail real estate Pune retail real estate Ahmedabad retail real estate Gagan Banga, Director, Indiabulls supply chain management Wal-Mart rent lease Indiabulls Megastore Indiabulls Wholesale hypermarket

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Pune: an exception! Rental values rises in the range of 2-7 per cent in all micro markets!!

IT-BPO industry holds back expansion plans due to slowdown fears- the commercial real estate market posts a lacklustre show in the 2nd quarter of 2008

IT companies find Pune rentals high-priced

Despite rise in number of malls in a city, high street shops continue to flourish - Jones Lang LaSalle Megharaj survey

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Pune:

Pune Mahanagar Parivahan Mahamandal Ltd floats a proposal to develop 2 lakh sq ft commercial space at Hadapsar, Pune Station and Kothrud

Organised retail to invest Rs 27,550 crore for penetrating the tier II and III cities like Pune, Chandigarh and Hyderabad

Trumart business model - barely 4 months after acquiring an 84 % stake in Piramyd Retail, Indiabulls goes in for a major restructuring

Retail is hardcore real estate business:

Bad real estate deals - high rentals:

Why are Indiabulls Marts closed down?

Expansion plans of Indiabulls Mart, Indiabulls Megastore and Indiabulls Wholesale: