Asian Voice Interview Mayfair International Estates
Released on: December 17, 2007, 11:19 am
Press Release Author: Philip Raye
Industry:
Press Release Summary: India Real Estate Boom invest with Mayfair International Estates
Press Release Body: INDIA's BOOMING REAL ESTATE MARKET
India is one of the fastest growing economies of the world. The country is witnessing an upsurge in its realty industry; especially the property zone and the investors are keen to invest their capital in prestigious Indian properties. Almost 70% of foreign investors are reaping huge profits in this sector, with 20% annual appreciation on property values (Source: FICCI Survey, 2006). Besides offering investor-friendly FDI and a clear taxation policy for the investors, the Indian real estate market also boasts of being the second largest contributor towards its GDP.
Owning an Indian property can fetch an investor the following key benefits:
. 20% Annual Appreciation on Property Values . Capitalization from Indian Special Economic Zones (SEZs) . Investor-friendly FDI and a clear Taxation Policy . 70% of Foreign Investors making Huge Profits (Source: FICCI Survey, 2006) . Second Largest Contributor towards India's GDP
Real estate is one of the fastest growing sectors in India. Market analysis pegs returns from realty in India at an average of 14% annually with a tremendous upsurge in commercial real estate on account of the Indian BPO boom. Lease rentals have been picking up steadily and there is a gaping demand for quality infrastructure. A significant demand is also likely to be generated as the outsourcing boom moves into the manufacturing sector. Further, the housing sector has been growing at an average of 34% annually, while the hospitality industry witnessed a growth of 10-15% last year.
Apart from the huge demand, India also scores on the construction front. A McKinsey report reveals that the average profit from construction in India is 18%, which is double the profitability for a construction project undertaken in the US. The importance of the Real Estate sector, as an engine of the nation's growth, can be gauged from the fact that it is the second largest employer next only to agriculture and its size is close to US $ 12 billion and grows at about 30% per annum. Five per cent of the country's GDP is contributed by the housing sector. In the next three or four or five years this contribution to the GDP is expected to rise to 6%.
...Past Three Years
Indian Real Estate has been one of the high riding sectors since 2002- 2003. After a bad decade of nineties, it has resurrected itself like never before. In fact, in last three to four years, the property market in India has zoomed by more than 300% in few cities. The average growth in India's real GDP over the last six years has been 7.1%.
Foreign Direct Investment (FDI) has been rising in India over the past several years. During the 1990s, annual FDI inflow was $2-3 billion a year. In 2004-2005, it touched $5.6 billion, and in 2005-2006, it touched a peak of $7.2 billion (Source: Jones Lang LaSalle Meghraj (JLLM) report).
Current Status
Indian real estate industry, which is currently pegged at $16 billion, is witnessing increased interest from several international developers, primarily from the Middle-East, South-East Asia and Europe.
The Indian real estate market is now a hot spot for global investors after new laws were enacted last year allowing foreigners to own 100% of real estate assets. This has invited more foreign investors and real estate sector in India is seemingly the most lucrative ground at present. Private equity players are considering big investments, banks are giving loans to builders, and financial institutions are floating real estate funds.
As per the recent JLLM report, FDI worth about $30 billion (INR 1.32 lakh crores) is in the pipeline for all Asian real estate markets, out of which about $6 billion is planned for the Indian market alone for the year 2007.
Listed and unlisted real estate companies and private institutional funds are the key players making FDI investments in India. More than a dozen overseas private equity firms such as Goldman Sachs, Morgan Stanley, JP Morgan and Blackstone Group are looking at investment opportunities, or have already invested in the Indian real estate market.
Investors are attracted to the strong commercial property yields across metros, the high capital and rental value appreciation, and the availability of quality supply in the country. With real estate yields in mature economies narrowing, India's current commercial property yield of 10-11 % is viewed as attractive. Moreover, rental rates for grade A commercial properties in Tier-I cities of Mumbai and Delhi have appreciated by more than 100% in the last 15-18 months.
In spite of high entry barriers and low availability of land banks, about 94% of capital investment in real estate is being deployed in Tier-I cities of Delhi, Mumbai and Bangalore, according to the JLLM report. This can be attributed mainly to the comparatively lower risk associated with these cities for developers.
What's more interesting is that a majority of realty issues have yielded phenomenal returns to investors, although there has been a fair amount of volatility. As the sector gets a facelift by organising itself, a number of local and regional players emerge as key contenders in the marketplace. Therefore, the industry is likely to witness dominance of local pioneers in different markets, such as DLF, Unitech or Parsvanath in the north, or the likes of Sobha Developers, Puravankara Projects or IVR Prime in select cities in the south.
Years to Come.
JLLM estimates that about $10 billion of foreign investment will enter the Indian real estate sector over the next 12-18 months (starting from May 2007).
The growth of the real estate sector is expected to continue with strong ITITES, banking, financial services and insurance (BFSI) and corporate demand driving the office sector. The growth rate for the retail market is expected to be around 35%, with organised retailing currently at a mere 3% of total retail. Foreign private equity funds expect a return of 20-25 % from investments in Greenfield projects.
For the next two to three years, investment in Tier-I cities is expected to increase as a result of growing demand in these locations. However, in future, as Tier-I real estate markets mature, more investment will flow into Tier-II and Tier-III cities such as Chennai, Pune, Kolkata and Hyderabad.
A sector wise analysis indicates that most of the foreign investment is going into residential and mixed-used projects. According to the JLLM report, since the Reserve Bank of India (RBI) does not permit developers to use bank loans for purchasing land parcels, capital raised through private placements, foreign investments and funds are being used largely for land purchases.
GURGAON - THE 'CORPORATE CAPITAL' OF INDIA
Gurgaon, an important satellite town of Delhi (India's capital city), is a symbol of ancient Hindu Mythology, having derived its name from Indian epic 'Mahabharata'. Previously known as 'Guru-Gram', meaning 'Village of the Teacher', Gurgaon is the most eminent Corporate Hub in South Asia and the most prominent outsourcing and off-shoring hubs of India. More popularly known as the headquarter of India's renowned MNCs, Gurgaon is riding high on residential, commercial and retail developments, including gigantic apartments, luminating glass buildings, bustling malls and wide roads.
Ideally located on the National Highway of Delhi-Jaipur Road, the city houses top MNCs - both IT and non-IT: Genpact, Dell, Accenture, Convergys, etc. to name a few with their headquarters in the city. Automobile majors, including Honda and Maruti too have their manufacturing units in the city. Gurgaon is a hub of commercial activities, with major car, motorcycle and garment manufacturing units and export houses.
Gurgaon has got easy rail connectivity to AIIMS (via Mehrauli) and Dhaula Kuan in Delhi, Rohtak, Jammu, Faridabad, to name a few. Soon-to-be- recognised as a world class Golden Triangle City Centre for a four lane highway passing through the city, Golden Quadrilateral, Gurgaon also includes 7 flyovers and five underpasses. There are plans underway to extend the Delhi Metro to Gurgaon by 2010, which is just 10 kms from the International Airport.
The Cyber City of India - Gurgaon provides a chain of well-equipped hospitals, including Indraprastha Apollo Hospital, Privat Hospital, Chiranjiv Hospital, City Hospital, Civil Hospital, Jindal Hospital, Kanshiram Medical Centre. The city offers superlative medical facilities to distressed people from different parts of the NCR and the neighboring states.
Gurgaon shares boundaries with Uttar Pradesh and Rajasthan on its south and Rewari and Rajasthan in the west. Gurgaon district comprises nine blocks, including Tauru, Nuh, Pataudi, Nagina, Punhana, F.P. Jhirka, Sohna, Farukhnagar and Gurgaon.
Real Estate Market in Gurgaon
Gurgaon, the suburban neighbourhood of Delhi will continue to remain the scene of much of the real estate action in the next three years. Easy availability of quality housing at affordable prices and the quality of construction will make Gurgaon investment-worthy. Gurgaon, in fact, counts as the hottest suburb to invest in.
Property value in Gurgaon is likely to appreciate 10-15 per cent a year for the next few years. Gurgaon has reshaped the Indian realty sector as it has pioneered the emergence of luxury segment in India during 2004-05 with the launch of DLF\'s Aralias; Aralias II; MGF Vilas; DLF\'s Magnolia and lately DLF Belaire near Golf Course. These high end projects offer 4-5 bedrooms, central air-conditioning luxury apartments with lavish specifications and all the modern amenities for client satisfaction.
This trend of elite dwelling has also refurnished the need for purchases in Gurgaon real estate in to function as a weekend home. To fulfil the mounting demand of Gurgaon properties, many well renowned real estate developers have initiated the construction of new projects consisting of both middle and high-end budget projects at Gurgaon Sohna Road, MG Road, Old Gurgaon Road and Golf Course Road.
Apart from expensive dwellings and state-of-the-art office spaces, the city also offers a wide range of residential properties for middle class segment. This segment of residential apartments builds the base for the mass ongoing constructions in Gurgaon. Due to its proximity to south Delhi, the city will further enhance its position as a world class real estate destination for investors of India and abroad as connectivity to the international airport gives Gurgaon, a vital edge over other cities in the NCR.
Gurgaon excels as the investor\'s destination in comparison to other cities mainly because of the quality constructions and innovative additions to the home buyer\'s favour. As a competitive market evolves in Gurgaon mainly at the behest of the developers, who are trying to build a consumer base by providing investors with lucrative options in residential as well as commercial properties in Gurgaon. Gurgaon, in fact, counts as one of the hottest cities in India to invest in.
Key Highlights: Gurgaon on a Real Estate high note
Close Proximity to National Capital Region Gurgaon Real Estate - a talk and centre piece of attraction for a long with its high rise buildings, swanky malls, Five star hotels Proximity to International and National Airport Easy Access to modern facilities - a preferred destination by Multinationals and NRIs Construction industry and the developers of the real estate in Gurgaon have something on offer for almost every segment of the market and now provide feature-rich accommodation and commercial space at a very reasonable price
Why Invest?
Gurgaon offers an excellent location to start up an industry as it is in close contact with cosmopolitan world, being close to the National Capital of Delhi. It offers excellent law and order situation with peaceful environs. These pivotal factors have helped it attract a sizable number of investments from MNCs, large business houses, foreign investors, Non-Resident Indian (NRI), etc.
Gurgaon is one of India\'s major outsourcing hubs, housing major multinationals such as Agilent, Alcatel, American Express, British Airways, Convergys, eFunds, Ericsson, KLG Systel, KEANE India Ltd., Fidelity Investments, Genpact, HCL technologies, Hewitt, Hindustan Lever Limited (the Indian division of Unilever), IBM, Siemens, Flextronics, Coca-Cola, GSK, General Motors, Gillette, HP, Hitachi Metals, Nestle New York Life, Nokia, Pepsi, Trinity BPM, Xerox, etc.
Gurgaon is home to many manufacturing units of repute such as the largest car and motorcycle manufacturers in India, namely Maruti Udyog and Hero Honda; which has their manufacturing plants in the city. Gurgaon which hails most of the reputed developers like DLF, Unitech, JMD, Vipul, etc to name a few have also credit to the infrastructural and construction of international standard office spaces that meets the demand for MNCs and high-end modern corporate offices.
Besides, Gurgaon's proximity to New Delhi and easy connectivity to the international airport is a major plus factor. Also, availability of good quality and cheaper office buildings and residential complexes has proved attractive to many companies who have shifted their corporate and back offices.
Five years from Now.
Arrival of Metro Rail to offer Better Conveyance Upcoming 8-lane Expressway: User-friendly Roads and Systematised Traffic Better Infrastructure: Roads, Transportation, Housing and Entertainment Revamping of Airport New Express Road Connectivity to Vasant Kunj and Dwarka 80 SEZs to be set up in the Area Upcoming Medicity: Global Destination for Healthcare Solutions
RIGHT TIME FOR NRIs TO INVEST IN INDIA
The $12 billion Indian real estate market (2004-05) is expected to reach $50 billion by the year end of 2010, growing at the rate of 33%.
The booming growth in real estate market in India is due to an exploding economy, liberal FDI regime, new technological innovations making inroads into India, new norms and policies and entry of world class companies in the hospitality and entertainment sector.
The Indian real estate sector is the second largest employer of people.
In a report by Price Waterhouse Coopers:
In India's fast-growing economy, real estate has emerged as one of the most appealing investment areas for domestic as well as foreign investors. The real estate sector will continue to derive its growth from the booming IT sector, since an estimated 70 per cent of the new construction is for the IT sector.
Favourable interest rates, modern attitudes to home ownership (the average age of a new homeowner is now 32 years compared with 45 years a decade ago), economic prosperity along with a change of attitude amongst the young working population from that of 'save and buy' to 'buy and repay' and liberalised FDI regime have all contributed to this boom.
With the rise in potential of Tier II and Tier II cities the investment opportunities have increased manifold. Moreover 100 per cent FDI is allowed in real estate development and the Indian government has played a major role in supporting the growth of the real estate sector by allowing NRI investment.
In a recent report by Merrill Lynch:
Mall space is expected to increase dramatically in the coming years. India Property Exhibitions are being conducted in major cities of the world, to raise awareness about investment opportunities Indian Real Estate has.
Source: Times of Oman
MAYFAIR INTERNATIONAL ESTATES Think Investments. Go Global.
Mayfair International Estates (MIE), as the name suggests, seeks to offer prestigious property solutions in the realty industry worldwide. With a global mindset, the company embarks on providing a one-stop solution for the true realisation of our investors' aspirations and offering them a lucrative opportunity to diversify their portfolio geographically.
The Company has carved a niche for itself in the booming realty sector worldwide and has constantly set quality benchmarks in the provision of its services to its valuable investors. We invite the corporate, multinational corporations and business-minded retailers from across the world to invest in the awe-inspiring global properties and reap assured benefits out of such investment.
With over 50 years of collective experience and the persistent efforts of its team of dedicated professionals, Mayfair International Estates seeks to establish a harmonious relationship with its ever-growing clientele and accomplish the dreams of investors across the world, leaving no stone unturned.
MIE has also formed strategic alliances with reputed and major global real estate developers to market their products, which are high in demand not only locally but universally. Besides, the company has already spread its horizons across the world, catering to its investors in the UK, US, India, Malaysia and Sweden.
Products
Dubai: Dubai, a bustling metropolis, is recognised as the leading business and tourism destination across the world. Mayfair International Estates offers high-end commercial, retail and residential properties in Dubai - the City of Gold. These stylish abodes are accompanied with ultra-modern amenities and outstanding recreational facilities with an urban and contemporary lifestyle.
UK: Recognised as the most popular destination for Asian and US investors, the UK has a highly-skilled and flexible business environment for High Net-worth Individuals (HNIs) to build profits and is, thus, witnessed as a sound investment destination. The company offers its global strategic investors, an opportunity to invest in multifaceted residential and commercial properties in the UK - the busiest investment market across the world.
India: India, one of the world's fastest growing economies, has witnessed a surge in its realty industry, especially the property zone in the recent past. Mayfair International Estates offers prestigious residential, retail and commercial properties in one of the finest areas of the country - Delhi, National Capital Region, Jaipur, Gujarat, Himachal Pradesh, Mumbai, Pune, Hyderabad and many more.
Thailand: Recognised more popularly as the "Land of Smiles", Thailand is a place where people can live a luxurious tropical lifestyle offering a great universal appeal. Thailand has become one of the Asian economic leaders with significant rise in foreign investment over the recent past, while the dropping of certain financial requirements now make investment in Thailand an easier option. Current average capital growth for Thai property is set at between 10 and 15%. Mayfair International Estates offers lucrative property options in the beachfront location of Thailand - Phuket.
Spain: Besides being the most favoured tourist destination for its lovely climate, the property market in Spain has always been on an upsurge with its ever-increasing demand and stupendous returns on investment made by an individual investor. Mayfair International Estates brings exclusive opportunity for its investors to own luxurious residential properties, including apartments, villas, penthouses and condominiums in Spain.
Services
Project & Asset Management Services: We help our clients in efficiently managing their projects within stipulated budget and in mitigating the immediate risks involved therein. Whilst working closely with our investors, we analyse their requirements and develop strategies that suits their investment needs largely.
Investment Management Services: The company provides its investors with valuable advice on the monitoring of their investments. We carefully assess our clients' needs, scrutinise their risk profiles and recommend appropriate investments accordingly.
International Creative & Marketing Services: Our cumulative global expertise of over 50 years and deep insight into the ongoing market activities have helped our clientele in developing effective marketing strategies and assisted them in growing their businesses.
International Legal Services: Mayfair International Estates facilitates legal advisory services on various issues, including FDI, employment laws, leases, finance and international investment, to assist various corporate houses in setting up a successful venture.
International Taxation Services: Mayfair International Estates focuses on offering high-quality tax advice for all large corporate houses and financing transactions, including corporate mergers and acquisitions, joint ventures, disposals and restructurings.
Online Marketing Solutions: Mayfair International Estates has created a unique online marketing platform, wherein we market our clients' products globally through Online Marketing/Search Marketing Strategies, Online Media Planning & Buying, Search Engine Optimisation, PPC Campaigns, Banner Ads and much more.
Data Brokering: We offer customised, innovate data solutions to our clientele, whilst providing them with relevant data information. These custom-made databases are priced on the basis of the project and the technical requirements of our clients.
Interactive Advertising Solutions: Mayfair International Estates' key branding strategy is to conduct an extensive 360-degree advertising campaign (or, total branding) to nail down the core message in the minds of our global investors through different media and build one-to-one relationships with them.
Mayfair International Estates The Nova Building Herschel Street Slough Berkshire
Info@mayfairinternationalestates.com
Web Site: http://mayfairinternationalestates.com
Contact Details: Mayfair International Estates The Nova Building Herschel Street Slough Berkshire