August 2006 THE EXPAT BUZZ

Transcription

1 Issue 1.3 August 2006 THE EXPAT BUZZ...Property News et al Bridging the east-west divide Page 3 Mumbai Metro update Page 4 The Navi Mumbai story Page 10 As we predicted in our previous issue, the boom in real estate shows no signs of slowing down. But is it all a bubble? Recently, a publication articulated this concern by asking: How real is this realty show? Now, adding fuel to this melting pot is the SEZ (Special Economic Zone) factor. Our cover story gives you a holistic take on the 'Zone effect' and the prime players, based on articles from the Times of India, Economic Times, Financial Express, Business Standard and Businessworld. We also give you the latest on the SEZ policy front. As you know, the growth in the sector began with the government s decision to open up investment through 100 per cent FDI (Foreign Direct Investment), permitting Venture Capital funds to deploy money in real estate, selling off sick mill lands and so on. However, the move to set up SEZs across the country could be the biggest growth trigger of them all. SEZs could potentially transform the structure of the real estate industry as we now know it. The SEZ (Special Economic Zone) Act, 2005, has been in force from February 10, It aims to simplify procedures for setting up units and treats the service sector on par with the manufacturing sector. SEZs are governed by a special set of rules to allow easy FDI flow for export-oriented production. SEZs are free trade zones outside the supervision of customs authorities. These zones have minimum bureaucracy, premium infrastructure, generous tax holidays and unlimited duty free imports of raw, intermediate and final goods as well as capital goods. Units under SEZs enjoy various fiscal and non-fiscal benefits such as duty free imports, tax breaks (exemption of income tax, central sales tax, service tax and excise duty on inputs), single window clearances, etc. Naturally, these All the buzz on the SEZ SCENE How SEZs are adding more sizzle to the real estate market value-adds have attracted the attention of companies from sectors including the information technology, pharmaceutical, textile, petrochemical and auto ancillary areas. Biggies that have already announced mega plans include Reliance Industries, Bajaj Auto, Mahindra & Mahindra, Tata Consultancy Services, Wipro and Ranbaxy. Reliance Industries is reportedly investing considerable amounts into SEZs in Navi Mumbai and more importantly, in Gurgaon (Haryana) which, incidentally, is expected to be the country s largest SEZ. Therefore, the SEZ initiative could be a vital catalyst for the long term prospects of the Indian real estate market. A total investment of Rs 1 lakh crore is envisaged in SEZs over the next three years. In addition, these projects can potentially create over five lakh jobs, quite apart from the indirect employment that will be generated from the actual construction of these zones. So, we can confidently assert that SEZs will trigger a sharp increase in economic activities in and around the prospective areas. As real estate prices are directly co-related to the economic activity in the region, we could even witness another boom, which, in turn, means that properties in and around SEZs could be potential goldmines and promising long term investments! Cont'd on page 5

2 2 Aug 2006 THE EXPAT BUZZ CEO speaks Dear valued clients and associates, We have just passed halfway through Six months and more of the booming real estate scene in India and there is no more talk of unrealistic investment patterns as we see mega projects being launched, long-pending infrastructural plans being put into action and of course, the continuing global interest in the Indian market. Such interest brings with it the need to change from the ordinary to the extraordinary, as expectations tend to be higher across sectors be it in the amenities on offer or the interiors and other specifications. We believe that such add-ons enhance the value you get for your money. We have featured several projects of investment value in this issue of The Expat Buzz for those wanting to jump onto the bandwagon and gain a sound real estate investment. If you are planning something of that nature, I urge you to get in touch with our wellequipped Sales Team to learn more about the various options available but which have not been featured at the time of the issue going to press. Santosh Shetty Customer response After coming into contact with Expat Properties, our fear of real estate investments in unknown and often, unseen locations has been totally eradicated. This is mainly because of the honest and transparent manner in which every deal has been done. Excellent after-sales service has been rendered every time by all the Expat members, be it in Dubai, Bombay, Pune, Goa or Bangalore. As I became more and more confident of the products and services offered by Expat, it became almost my duty to introduce my friends and colleagues to them. They too are now satisfied customers of Expat Properties. I am fortunate that my association with Expat Properties introduced me to a profitable investment. I liked the way in which all the procedures were handled so professionally and the confident manner in which the entire process was taken care of. I was also impressed with the personal touch seen throughout my dealings, the manner I was guided. My needs were always given top priority. Kiran Moghe Textile businessman Mumbai Expat has always given us very good service and advice related to property matters from the time we have been associated with them, nearly five years ago. In fact, I recently found my dream home through them and I have now recommended them to others I know. Here s hoping they go from strength to strength. Malishka Mendonca Radio Professional, Red FM 93.5 I foresee a great future for all the partners and patrons of Expat Properties, and true to your mission, you do an exceptional job in Building Relationships. Kishore Watson Sr. Construction Supervisor Tebodin Middle East Ltd. Disclaimer While The Expat Buzz makes every effort to ensure that everything in the newsletter is accurate and complete, we provide it for information purposes only, so it is indicative rather than definitive. We thus make no explicit or implicit guarantee of its accuracy, and, as far as applicable laws allow, we neither accept responsibility for errors, inaccuracies or omissions, nor for any loss that may result directly or indirectly from reliance on its contents. Readers of this newsletter should not take, or omit to take, any action that relies on information. Through the newsletter, neither Expat Properties nor any other person is providing advisory, consulting or other professional services.

3 THE EXPAT BUZZ Aug BULLETIN BOARD News of interest for our Panvel investors Take off from Navi Mumbai by October 2012 Navi Mumbai may have been planned as a satellite of Mumbai but it is now all set to take off on its own. Plans are being finalized for a world-class international airport at Panvel. The airport, slated to be Mumbai s second airport, will be operational by October It will have two parallel runways (each 3,700 meters long) for segregated and simultaneous operations. To reach the airport, citizens will zip across the proposed 225 km Sewri-Nhava Trans-harbor link or simply hop into a hovercraft from Colaba! The City and Industrial Development Corporation of Maharashtra Limited (CIDCO) and the Airports Authority of India will prepare a detailed project report for the plan which has approval from the international civil aviation body. Naturally, plots around Kalamboli and Panvel are being snapped up even though land rates have gone sky high. According to one realty consultant, prices around the Nhava Sheva port in Panvel are up 100 percent! Source: 22 August 2006, The Times of India News of interest for our Kohinoor clients Bridging the East-West divide Imagine getting from Santacruz to Chembur in just 12 minutes, instead of the one hour it now takes you! This is no dream, but one of the benefits of a longpending project to bridge the east-west divide in Amchi Mumbai. The modern marvel in question is a double decker flyover-cum-overbridge between Santacruz and Chembur to be built as part of the Santacruz-Chembur Link Road (SCLR) project. The Maharashtra State Road Development Corporation (MSRDC) will build the bridge in 18 months. It will connect Kalina to the Amar Mahal Junction in Chembur on one side while its cross arm will link Nehru Nagar in Kurla to the Lokmanya Tilak Terminus. six-lane but later become eight-lane because of a second-floor two-lane 1.9 km-long section between Kurla and Chembur. In the north-south connection linking Nehru Nagar and the Terminus, there will be a 2.2 km elevated stretch. SCLR, conceptualized in the 1960s, remained on paper till last year. Its upper deck bridge will connect the suburbs of Santacruz and Chembur, while the lower deck bridge will ensure faster local connectivity. The Minister for Public Works, Anil Deshmukh called it integrated planning. There will be faster exits to the Lokmanya Tilak Terminus. We also expect the Terminus to attract more traffic after its re-development, he said. The Kalina-Amar Mahal Junction overbridge (East-West) will initially be Source: The Times of India

4 4 Aug 2006 THE EXPAT BUZZ BULLETIN BOARD Mumbai Metro work to start end-2006 Tired of the interminable traffic jams and endless hours on Mumbai s clogged roads? Take heart. Work on the Mumbai Metro network will start this year-end. Then, work begins on the first of the planned nine corridors of the 146 km Metro rail network that will crisis-cross the city. The first trains will start chugging by All this is because the state government has now accepted a bid from a Reliance Energy Limited-led consortium to build the city s first Metro corridor an 11.4 km Versova-Andheri-Ghatkopar stretch. At a project cost of Rs 2,356 crore, including government subsidy of Rs 651 crore, this long overdue Metro link will be India s most expensive public transport link so far: over Rs 214 crore per km! The project is India s first Metro to be executed on a Build-Own-Operate-Transfer (BOOT) basis. The consortium will run it till ; then hand it over to the state. Traffic analysis has shown that each train trip will carry as many as seven lanes of bus traffic or 24 lanes of private motor cars. Fares are Rs 6 (up to 3 km), Rs 8 (3 km-8 km) and Rs 10. Source: 18 May 2006, The Indian Express News of interest for our Bangalore investors B lore-mysore corridor update Phase I of the Rs 2,250-crore Bangalore- Mysore Infrastructure Corridor (BMIC) project is to be complete by August By then, the project executor, Nandi Infrastructure Corridor Enterprises (NICE), must build a 9.1 km link road between Mysore Road (BHEL) and Somupura (the interchange and the beginning of the expressway), a 12 km expressway up to Bidadi, develop interchanges at Hosur Road and a 41 km peripheral road linking Hosur Road to Tumkur Road. Phase II will involve building a 35 km expressway between Bidadi and Channapatna along with Commercial and Industrial Townships. The final phase will see the portion of the expressway between Ramanagaram and Mysore taken up, two more townships developed along with an eco-tourism project and a heritage center. NICE Managing Director, Ashok Kheny, is confident the expressway will be completed by the middle of Townships will have basic facilities such as roads, drains, power and water supply by the middle of Source: The Indian Express

5 THE EXPAT BUZZ Aug All the buzz... (cont'd from page 1) SEZs to morph into Investment Regions? While so much interest has been generated, are SEZs, per se, undergoing subtle modifications? Recently, Department of Industrial Policy and Promotion Secretary, Ajay Dua, hinted as much when he said: We plan to set up five or six Investment Regions in the country to extract maximum leverage from proposed investments in infrastructure. The proposal involves a network of high quality roads, air and sea ports and power plants connecting every industry and development in a geographical area of km. Existing SEZs could be included in such regions, Dua said. State governments such as Gujarat, Maharashtra, Haryana, Karnataka, Andhra Pradesh and Orissa have reportedly sent proposals on this already. Infy plans SEZs in Tier II cities At the moment, however, SEZs continue to be high on the radar. The Nasdaq-listed Infosys Technologies is planning SEZs either entirely on its own or will locate itself in zones promoted by others. This is because tax benefits on the export revenues of software companies will end by This year we will invest about $400 million in expansion, which includes investment in SEZs. We already have a SEZ in Mahindra City and are looking at SEZs in Mysore, Mangalore, Thiruvananthapuram, Chandigarh and Pune. Given the tax benefits, it makes sense to expand within SEZs and we will look for them wherever possible, Krish Gopalakrishnan, COO, Infosys Technologies, said recently. Essar looking at Rs 11,000 crore SEZ Likewise, the Essar Group plans to invest nearly Rs 11,000 crore in a proposed SEZ near Jamnagar, Gujarat. The actual investment could be even higher. Under SEZ rules, the anchor company will invest 75% of the total investment. So, total investment will be close to Rs 15,000 crore, company officials have disclosed. Hindujas select Vizag for multiproduct SEZ The Hinduja Group is planning a multi-product SEZ at Visakhapatnam. It also plans to use its Hyderabad land where Indian Detonators Limited (IDL), a group company, is presently located, for other purposes. The who s who on the SEZ scene The SEZ scene may be on fire just now, but do you know which company is investing how much and where? Take a look at our list. The 1,000 to 10,000+ acre club Mahindras 10,000+ acres In Chennai, Pune, Jaipur and Eastern India, Tier II cities Emaar 10,000+ acres Across India Ansals 10,000 + acres Across India Infosys 2,145 acres Bangalore, Hyderabad Indiabulls 192 acres Sonepat, Mumbai, Delhi The 20,000 + acre club Tata Group 30,000+ acres Across India Unitech 30,000+ acres Kundli (North Delhi) Baba Kalyani 27,000 + acres Bangalore, Pune Sahara 20,000 + acres Across India The 50,000 + acre club Reliance Industries 100,000 acres Navi Mumbai, Haryana, East and South India DLF Universal 50,000+ acres Across India

6 6 Aug 2006 THE EXPAT BUZZ THE CONTRACTING DIVISION Broadening our horizons... to serve you better Contracting Division Just as the Retail division is constantly striving to add value to our valuable clients, the Contracting Division too is continuously re-inventing itself. Now, there has been a successful transition from pure contracting of land development, road alignment and construction to the telecom industry. Given the dedication and strict quality control we exercise, we are now recognized as contractors to be reckoned within the telecom industry! In keeping with this commitment to expand, the Contracting Division has seen an impressive growth in clientele as well as geographical reach we now have offices in Chennai, Ranchi, Bangalore and Kolkata. This has also helped us diversify our portfolio. Of deadlines and diversification When a project is entrusted to us, we ensure that we deliver. No matter what the circumstances. Recently, we delivered Phase I of what we had committed to Hutch and Nortel. Once the monsoons are over, we plan to further diversify into constructing villas / bungalows for projects handled by our Retail Divison. This will ensure that we bring a unique, hands-on approach to all the projects. As we mentioned before, broadening our horizons ensures that we stay on top. We are constantly on the look out for untapped market spaces such as warehousing, low-cost rapid construction, integrated commercial / residential complex maintenance, and so on. These are areas where we believe we can set the standards. Last but not the least; our efforts would be in vain if we did not have the constant support and encouragement of our esteemed clients, our board and all divisions that continue to extend confidence in the abilities of our team. It is such support that reinforces our beliefs and leaves us enthused! That is why we aim to do better, always.

7 THE EXPAT BUZZ Aug Broadening our horizons... to serve you better Retail Division In keeping with our commitment of meeting clients at their every point of need, our Retail Division has surveyed developing areas that surround cities such as Bangalore and Mysore as well as suburban localities such as Navi Mumbai. With our proven expertise in the real estate scene, we have decided to zero in on a couple of prime locations for you. In Bangalore, there has been unprecedented demand for residential property across micro markets with prices hardening for all categories of properties. Demand for independent luxury homes and high end apartments is on the rise. One reason is larger disposable incomes. To help meet this unprecedented demand for our clients, Expat Properties has enhanced its retail property portfolio in the Bangalore suburbs. Hebbal: Hebbal is a residential complex with 2-3 BHK luxury apartments in the heart of the city. The apartments are 1,200 to 1,500 sq. ft. and enveloped in the beauty and tranquility of the nearby Hebbal Lake. The property is less than eight km from M.G. Road and just half a kilometer from the Ring Road. This means you can easily drive to any part of the city! Given our stress on quality, the flats come equipped with all modern amenities and best of all, are priced at very competitive rates. Mysore: Mysore is to Bangalore what Pune is to Mumbai. Like Pune, Mysore is the next destination for futuristic development. Besides, Mysore has better infrastructure and is more picturesque than Bangalore. Now, the royal city is set for a makeover as the new destination for corporates. Connectivity used to be a major factor but the four lane road and the considerable progress on the Bangalore- Mysore Expressway has generated demand for space in Mysore. The two cities are now an hour and a half away. IT biggies Wipro and First American Corporation plan major operations in Mysore. Infosys already has a training center here and Wipro has reportedly acquired land. The expressway, broad gauge conversion and air connectivity will soon change the face of Mysore. With our knack for being bang on when it comes to such developments, Expat Properties is in the process of acquiring 80 acres on Bannur Road in Mysore, just seven km from the Palace grounds. Panvel: As Mumbai, in its effort to expand, is taking concrete steps to link to the mainland, we as a company followed the vibes and acquired land in the city of Panvel. Panvel is a quiet countryside suburb on the western coast of India. It is a nodal city, 15 minutes away from Navi Mumbai and 45 minutes from Sion-Mumbai. Lush and green with waterfalls and sylvan countryside, Panvel is a well planned suburb with good transport facilities, wide roads, and facilities for education, entertainment, etc. It is fast turning out to be a premium residential locality. It is also well connected to Mumbai. In the past couple of years, there have been major developments around Panvel such as the DAKC at Koparkhairane, the Jawaharlal Nehru Port Trust, the International Infotech Park at Vashi and the International Technology Center at Belapur. (Our City Focus column on page 10 updates you on developments around Panvel.) We have on offer residential plots of a minimum size of 3,013 sq. ft. each, having an FSI of 1:1 for construction. The property is just two km off NH4 and eight km from Panvel station. Our property promises high returns given that New Panvel is now saturated and non-agricultural land scarce. Its proximity to the proposed International Airport, the proposed Mukesh Ambani s Maha Mumbai project and the Sion Panvel multi-lane project are added attractions. All this makes Panvel a super investment for those who want property with potential. You may call it divine intuition or simply intelligent strategising but by a happy coincidence all our new ventures, whether in Bangalore or Mumbai, are in and around major developments. An investment in any of these properties will, therefore, be extremely lucrative. RETAIL AND LAND TRADE

8 8 Aug 2006 THE EXPAT BUZZ RETAIL AND LAND TRADE Details of ongoing projects Kohinoor City Around this time last year there was chaos in Mumbai with the rains pouring down like there was no tomorrow. The scene at Kohinoor City was no different; there was water, water, everywhere logging outside and within the complex. Then followed the infamous deluge of 26/7 that left areas around Kohinoor City submerged under 14 ft. of water while the complex experienced only four ft. of water. This was an eye opener as after that we re-examined and altered the drainage system. This monsoon too has led to heavy downpours but fortunately, there has been no water logging, within the complex or around. Construction is on in full swing. Work on the columns and the slabs is over and now it is time to lay bricks for the exteriors. The interiors will be done last. All the citizens of Kohinoor City have met the Kohinoor team, either at the site or in the case of the Middle Eastern clients, in Dubai / Oman, to get the flats customized. site is on and post monsoon, actual construction will start. Overall, work is progressing as per schedule and the Kohinoor team should be able to deliver the much awaited Kohinoor City within the stipulated time. Expat Properties new venture Expat Properties (I) Ltd. has ventured into the secondary market through all its existing offices. There is a large market for flats bought and sold either by the investor to the end users or leased out for periods ranging from eleven months to nine years. As most of our clients possess more than two properties in India, we realized we could help them lease or sell their apartments to benefit from the ongoing realty boom. Such a venture ensures we stay true to our motto: Building Relationships. The Solitude Location: Situated 48 km from Pune and 163 km from Mumbai, The Solitude is located in the idyllic hill station of Mugaon. Perched beside a lake created by the Warasgaon dam, the very air here brings a blush to your cheeks and a smile to your lips. Naturally, the weather is excellent all through the year. The buildings, though skeletal now, do hint at what the finished buildings will look. Safety standards are excellent in contrast to what most other builders practise. That in itself speaks of the quality maintained in the project. The Kohinoor team has worked day and night which is how the two slabs have been put up within a month, though it usually takes anywhere between 30 and 45 days. This may have put some extra burden on clients as they had to make payments faster than expected. Highlights: There are plots of different sizes available ideal for cottages, bungalows or little villas, depending on what you want to do with this haven of peace and serenity. Apart from the scenic beauty of the area, the fact that land prices in the vicinity are on an inexorable climb, make this a surefire investment winner! Signboards on the internal roads are up, excavation of the mall

9 THE EXPAT BUZZ Aug Details of ongoing projects (cont'd) Salthar Location: Situated in Lonavala, a hill station, just 128 km from Mumbai and 94 km from Pune. Highlights: Not only is this a slice of unspoilt nature, another advantage is that Salthar adjoins the mega Amby Valley project and is just 30 minutes drive from Lonavala City. So, not only do you get the best of natural beauty, you also get all the urban conveniences asphalted approach roads, electricity connections, regular water supply and every other amenity you can think of. Wegre Location: Situated in Mulshi Taluka, Pune, Wegre is another place blessed by nature s bounty. It lies at the edge of a lake created by the Temghar dam and is just 202 km from Mumbai. In fact, from Chandni Chawk to the site is just 36 km and it is barely five minutes from Lavasa! Highlights: This is a 1,000 acre property and adjoins the Lavasa project. As we said before, the backwaters of the Temghar dam lend a quiet magnificence to the area. RETAIL AND LAND TRADE Land Trade Botharwadi Location: This is a 70-acre property in Mulshi Taluka, Pune. Apart from the glorious location, it also scores because of its connectivity. It is just 17 km from Kothrud, 12 km from Hinjewadi, 24 km from Lavasa and seven km from Manas Resort & Boating. Highlights: Here, you find agricultural land in an untouched state. The property is next to a four-track road and there are a number of farmhouse and bungalow plots nearby. What is more attractive is that you can immediately register. What goes without saying is that the project and the land has high utility value. Given the increasing potential for real estate investments, we also have on offer land in and around Bangalore, Pune, Goa and Navi Mumbai. Pirungut Industrial Area Location: Situated right in the Pirangut Industrial estate, Mulshi Taluka, this is ideal for business expansion. Just two km from Gothwade Phata, 17 km from Chandini Chowk and 15 km from Hinjewadi IT Park. In fact, it is barely a half an hour's drive from Pune city. Highlights: The total land available is 24 acres and it comes under the industrial zone. The terrain is good and there's a river flowing by the south side of the property. In terms of facilities, water and electricity connections are already in place and there is an asphalted approach road from the north side. Urawade Residential Zone Location: On offer are acres inside the Urawade residential zone. This is perfect because it is just 1,000 metres away from the Pirangut Industrial Estate. Besides, it is 14 km from Chandni Chowk and 16.5 km from the Hinjewadi IT Park. Highlights: Urawade offers you the chance to build a home away from home. On offer are residential plots of 2,800 to 3,000 sq.ft. with all necessary amenities. There will be no question of being isolated for other developers have bungalow-sized plots in the neighborhood. As with all the other projects, the land has high utility value.

10 10 Aug 2006 THE EXPAT BUZZ CITY FOCUS Navi Mumbai From satellite to star city Mumbai may be bigger and better known on the global radar but there s a city by its side that s slowly but surely, shaking off its satellite role to emerge as a star. Navi Mumbai may be technically a Tier II city or a satellite of Mumbai, but it is now a land of opportunity. Developed from marshy land, this parallel city is fast metamorphosing into an independent, self-contained, well-planned and modern metro. Egging on this growth path is the City and Industrial Development Corporation of Maharashtra Limited (CIDCO). By meeting all the infrastructural needs, CIDCO is making sure that Navi Mumbai will soon have a tactical and strategic advantage over Mumbai! A string of developments The city is being developed as a series of nodes, strung along an efficient Mass Transport System in the form of commuter Railway Network well connected to Mumbai-Thane and adjoining areas. Each node is expected to be self-sufficient in facilities such as schools / colleges, hospitals, recreation, community services, etc. The Indian Railways also plans a long distance terminal, close to CBD-Belapur, to meet the needs of inter-city travel from Navi Mumbai. CIDCO has also planned a new railway corridor from Belapur to Uran to connect with the new port city of Dronagiri. There are plans for a domestic airport, an international convention / exhibition center with a five star hotel. Also on the (Rates as per sq. ft.) Vashi 6,000 Sanpada 10,000 Koparkhairane 3,000 5,000 Airoli 4,000 8,000 Ghansoli 3,000 5,000 CBD Belapur 2,000 2,500 Kharghar 2,500 5,000 Source: 1st June 2006, The Economic Times anvil are a golf course, a country club, a technology park and an amusement park. The proposed Sion-Panvel multilane road project is about to take off. This project will provide an express entry into or exit from the city, as it will work as an extension of the Mumbai-Pune Expressway up to Sion. Investment city Naturally, all these proposed projects have caught the eye of astute investors. As a result, land rates have seen an appreciation of per cent in the past one year alone, with Nerul, Kharghar, Panvel areas leading the pack. Places adjoining Rabale station on the Thane- Belapur road, which used to be dormant earlier, are now high on the investors list. This is because of its easy connectivity and the availability of open land. Property prices here are naturally expected to spike soon. Adding to the attraction is the Dhirubhai Ambani Knowledge City (DAKC) in Koparkharaine. The International Infotech Park in Vashi and the International Technology Center in Belapur-CBD have also helped enhance the city s image. Icing on the cake The city s true potential will, however, be showcased with the proposed Reliance Special Economic Zone (SEZ) in Navi Mumbai. Work on the project is slated to begin this September. An entirely new city, one-third the size of Navi Mumbai, will come up on 14,000 hectares of land. The Rs 25,000 crore price tag is nothing compared to the estimated Rs 2,50,000 crore that other developers will invest into putting up factories, residential complexes, hospitals, hotels and shopping malls across the SEZ. This new cluster is to be completed by the end of this decade. It will house over a million people, virtually the same number currently living in Navi Mumbai! The Kalomboli zone near the Mumbai- Pune highway will be used to set up a hub for food processing and textiles. The bigger goal is to create an international financial services center where global BELT South Mumbai 8,000/- 18,000/- 27,000/- 29,000/- Western Suburbs 3,800/- 7,700/- 8,900/- 9,200/- Eastern Suburbs 3,000/- 5,600/- 7,300/- 9,200/- Navi Mumbai 1,800/- 4,000/- 14,000/- 17,000/- Uran 750/- 1,400/- 7,000/- 9,400/- Kalyan Dombivili 1,100/- 1,550/- 2,000/- 2,200/- A study predicts that in a decade, Navi Mumbai will overtake the suburbs to become the second-most expensive residential location. Source: 14 June 2006, Midday, banks, insurance companies and merchant banks can function just as though they were in London or New York. The surge has begun Many of these projects may be in the pipeline but in reality, they ve already contributed to increasing land prices. On the anvil are a World Trade Center, the Mumbai University campus, the Panvel Karjat railway line, the Dhapoli amusement park, the second international airport, the Sewri-Nhava sea link, and the Jawaharlal Nehru Port Trust-Goa Express Highway which will cut the distance to Goa by 215 km. Tip of the iceberg The construction projects are just the beginning. Our analysis, supported by a recent article in DNA, is that Navi Mumbai is set to be the next boom town in every possible way. For instance, there will soon be an airport, a trans-harbor sea link, a special economic zone (SEZ) and over half a dozen mega malls in the area.

11 THE EXPAT BUZZ Aug Navi Mumbai... (cont'd) The city has always been a favorite destination for people seeking affordable houses in an upmarket locality. In fact, the DNA article pointed out that the area continues to be one of the most affordable options for entry-level home buyers but rapid development has now triggered a phenomenal price rise in prime locations. With many more development projects on the planning board, you can expect real estate prices to reach dizzying levels here! CITY FOCUS Various development projects are planned in the satellite city, such as the airport at Kopra village near Panvel, Reliance SEZ at Dronagiri, Nerul- Belapur-Uran rail projects and the MSRDC Nhava Sheva Sealink project, explained Buddhabhushan Gaikwad, Chief PRO, CIDCO. Leading Navi Mumbai builders point out that there s already an effect on property rates in neighboring areas. Rates could rise even further once the projects take final shape, they said. More migration When there s development, there are job opportunities as well. Highly skilled people will rush to get well-paid jobs in the malls, sea link and SEZ under development. The net result will be greater demand for housing to accommodate the new workforce which means even more rate escalations! Some builders estimate that as Reliance SEZ is expected to generate employment for five lakh people, at least 20 lakh people could shift base to Navi Mumbai. Assuming that at least one per cent of them buy flats, it clearly spells boom time for the housing industry. Similarly, the airport is expected to attract five star hotels and spas, which will tremendously enhance the profile of locations in their vicinity. This lifestyle life could boost realty rates further. Will all this enhance living standards too? Apoorva Shah, a Navi Mumbai resident thinks so. After the projects were announced, my Mumbai friends have been enquiring about flat rates. Some have bought homes here too. All-round development It s not just better housing or living standards; there will be overall development in the region. For instance, Rajesh Prajapati, Director, Prajapati Constructions states that many ancillary projects will be coming up in Navi Mumbai. These include the Nerul- Belapur-Uran rail route which will make far-off places such as Uran more accessible. His view is supported by Devang Trivedi, Managing Director, Progressive Builders. Ghansoli and Uran may not have the best transportation right now but real estate rates are high and keep increasing because of the anticipatory rates these places can command, explained Devang. That established builders with proven track records are involved has boosted real estate prices too. Progressive Builders has been in the construction field since 1997, focusing on CBD Belapur and Koparkhairane with landmark projects such as Progressive Celebrity. My father was a construction contractor. After my MBA, I decided to focus on the real estate business. I felt I should give something back to society, said Devang. A timely investment Shubha Iyer, a Vashi resident recently purchased a plot in Dronagiri. Navi Mumbai is developing well. When the airport was announced, I bought a plot there and plan to hold on to the land. I will build a house later and am sure rates will be very high then. Rates have risen in villages such as Dronagiri, Ulawe, Kalamboli and Nhava. Lack of infrastructure is no deterrent. Once these villages are developed, land prices will hike further. Raju Gupta, a Vashi-based real estate consultant, summed up the scenario thus: The SEZ project has influenced rates to a large extent. The current rate of a plot in these areas is around Rs 30 lakh to Rs 60 lakh an acre. So, in a few years, the quiet farmland fringing this satellite city will be transformed into a soaring skyline, with high-tech buildings and every possible modern luxury. By then, people in this star' city will walk from their high-rise condominiums to their plush offices!

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