Ahmedabad, October 29, 2007 - Ganesh Housing Corporation Ltd has announced that the Company has acquired land admeasuring 35000 sq.ft. in a posh area near Vijay Cross Roads, Memnagar, Ahmedabad.
The said land is situated in the heart of the city. The Company is putting up a shopping mall which will be studded with four screen multiplex and high end retail stores. The estimated area of construction is approximately one lakh sq.ft.
Ganesh Housing had earlier in the month announced that the Company is planning to make a retail foray and for this purposehad identified five properties in Paldi, Ambawadi, Thaltej - SAL Road, Thaltej - S G Road and Sola areas.
Ahmedabad
Wednesday, September 29, 2010
Real Estate Bubble Building- NHB Cautions Banks
The National Housing Bank (NHB), the regulator for housing finance companies, on Monday advised lenders to exercise caution on lending to high-value properties, even as it warned that a potential real estate bubble was building as residential prices in several regions in the country were breaching their lifetime highs. “There is some sort of real estate bubble building up in the residential property market in several regions. I expect banks and other institutions to show their due diligence before providing high value loans,” RV Verma, chairman and managing director at National Housing Bank, told Financial Chronicle.
Verma, who took over at the helm of NHB recently, also said developers should be cautious not to hike prices and instead should launch more projects that are appropriately priced. In the past three quarters, residential property prices have grown by over 10 per cent in the National Capital Region (NCR), 12 per cent in Kolkata, 13 per cent in Bangalore, 10 per cent in Chennai, 13 per cent in Pune and over 20 per cent in Mumbai, according to real estate consultants Jones Lang Lasalle India.
Verma said a cautious approach was needed to ensure that a repeat of the crisis in the housing market in late 2008 is not repeated. “I expect the real estate firms to be mature and not repeat the mistakes of 2008,” Verma said. The global markets went tumbling in 2008 as sub-prime real estate lending in the US created several defaults forcing the valuation of assets crashing down by over 50 per cent. Several banks and insurance firms were on the brink of bankruptcy including Citibank and AIG. Lehman Brothers has already filed for chapter 11 bankruptcy protections in the US.
In 2008 and 2009, Indian banks put curbs on lending to the real estate sector. The prices of some residential projects in Gurgaon have reached Rs 7,000-8,000 per sq ft, which in some cases is higher than the previous peak seen in the city. In central Mumbai, prices for some projects have risen to Rs 20,000-25,000 per sq ft. Verma said NHB is looking to increase its loans disbursements by about 23 per cent in 2010 to Rs 10,000 crore compared with last year’s Rs 8,160 crore. It announced its annual results for the year ended June 30 and posted net profit of Rs 280 crore
Verma, who took over at the helm of NHB recently, also said developers should be cautious not to hike prices and instead should launch more projects that are appropriately priced. In the past three quarters, residential property prices have grown by over 10 per cent in the National Capital Region (NCR), 12 per cent in Kolkata, 13 per cent in Bangalore, 10 per cent in Chennai, 13 per cent in Pune and over 20 per cent in Mumbai, according to real estate consultants Jones Lang Lasalle India.
Verma said a cautious approach was needed to ensure that a repeat of the crisis in the housing market in late 2008 is not repeated. “I expect the real estate firms to be mature and not repeat the mistakes of 2008,” Verma said. The global markets went tumbling in 2008 as sub-prime real estate lending in the US created several defaults forcing the valuation of assets crashing down by over 50 per cent. Several banks and insurance firms were on the brink of bankruptcy including Citibank and AIG. Lehman Brothers has already filed for chapter 11 bankruptcy protections in the US.
In 2008 and 2009, Indian banks put curbs on lending to the real estate sector. The prices of some residential projects in Gurgaon have reached Rs 7,000-8,000 per sq ft, which in some cases is higher than the previous peak seen in the city. In central Mumbai, prices for some projects have risen to Rs 20,000-25,000 per sq ft. Verma said NHB is looking to increase its loans disbursements by about 23 per cent in 2010 to Rs 10,000 crore compared with last year’s Rs 8,160 crore. It announced its annual results for the year ended June 30 and posted net profit of Rs 280 crore
Real Estate Trends in Ahmedabad, Gujarat
Gujarat’s healthy economy finds expression in all its cities, bustling as they are with activity on all fronts. Ahmedabad, being primus inter pares among other cities in Gujarat is recognized as one of the fastest growing Tier II cities in the country today
The very strong connections of NRI to Ahmedabad, and the Gujarati’s spending power and entrepreneurial skills have encouraged a healthy movement in real estate prices of late.
Though still at a very nascent stage, Ahmedabad is slated for steady growth in the next few years. Residential property ranges between Rs.600 in Ahmedabad North to over Rs.1200 on Ring Road currently. Builders like N.G Developers, Navratna, BGP Builders and Saumya Constructions are catering to the globe-trotting Gujarati with quality residential apartments.
Cashing in on the deep pockets of the local population, major builders have laid out commercial projects for the city to accommodate retail malls and luxury hotels. Niho’s Scottish Mall is coming up on the main Ashram road on 4.5 lakh sq. ft area at a cost of Rs.180 crore. An NRI-funded exhibition-cum-convention centre at Ahmedabad at a cost of $9.2 million will further promote commercial activity in the city.
The State Government’s vision is to develop Ahmedabad into a world-class city through reforms and infrastructure development. Its mission to make the city clean, liveable, productive and self sustaining has translated into the setting up of IT parks in and around Ahmedabad.
DLF has chalked out 30 acres for the city’s IT park, while the road to Gandhinagar will see another IT SEZ project by K.Raheja Corp coming up at a cost of Rs.8,000 million. Three projects have been identified for urban infrastructure development in the city including the Sabarmati riverfront project and integrated public transit system.
With property available at very competitive rates, Ahmedabad is a sound place for real estate investment. The progressive policies of the state government in pushing for SEZs, an organized workforce, considerable investment from NRIs, and the enterprise of the local population will sustain the upward trend the city is experiencing
The very strong connections of NRI to Ahmedabad, and the Gujarati’s spending power and entrepreneurial skills have encouraged a healthy movement in real estate prices of late.
Though still at a very nascent stage, Ahmedabad is slated for steady growth in the next few years. Residential property ranges between Rs.600 in Ahmedabad North to over Rs.1200 on Ring Road currently. Builders like N.G Developers, Navratna, BGP Builders and Saumya Constructions are catering to the globe-trotting Gujarati with quality residential apartments.
Cashing in on the deep pockets of the local population, major builders have laid out commercial projects for the city to accommodate retail malls and luxury hotels. Niho’s Scottish Mall is coming up on the main Ashram road on 4.5 lakh sq. ft area at a cost of Rs.180 crore. An NRI-funded exhibition-cum-convention centre at Ahmedabad at a cost of $9.2 million will further promote commercial activity in the city.
The State Government’s vision is to develop Ahmedabad into a world-class city through reforms and infrastructure development. Its mission to make the city clean, liveable, productive and self sustaining has translated into the setting up of IT parks in and around Ahmedabad.
DLF has chalked out 30 acres for the city’s IT park, while the road to Gandhinagar will see another IT SEZ project by K.Raheja Corp coming up at a cost of Rs.8,000 million. Three projects have been identified for urban infrastructure development in the city including the Sabarmati riverfront project and integrated public transit system.
With property available at very competitive rates, Ahmedabad is a sound place for real estate investment. The progressive policies of the state government in pushing for SEZs, an organized workforce, considerable investment from NRIs, and the enterprise of the local population will sustain the upward trend the city is experiencing
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