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1st Quarter 2009 – REMMA Publications ®
- REMMA News
- 2009 – A Sound Foundation of Interest Rates and Inflation
- The Anatomy of Good Commercial Lease
- The Fundamentals of Rental Value
- Lease/Purchase Rates in Mumbai
- Featured Listings
- Featured Builder
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| REMMA News and Important Updates |
REMMA announces the addition of our new licensee in Bangalore, expanding our capabilities in the city, from relocation, sale and lease, to facilities management and a wide range of Infrastructure Services. More information can be found on our website, www.remmaindia.com.
In other news, on the residential front, our relocation efforts have created a need for special language skills and we have added advisors who are proficient in Japanese and our affiliate in Tokyo is now in place to assist customers on both sides. Moreover, we are seeing some movement on residential sales as good value and low interest rates are bringing sound buyers back into the residential markets.
Our commercial leasing team has also been busy finding good value for well-timed tenants. It is indeed an opportunity to negotiate flexible win–win situations, an opportunity to lower Operating expenses over the medium term. We provide a little more insight on commercial leasing in our article titled: The Anatomy of a Good Commercial Lease. |
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| 2009 – A Sound Foundation of Interest Rates and Inflation: |
| If you are looking to purchase, given that finding the right opportunity for you takes some time, then you may want to BEGIN NOW. Barring a prolonged global recession, India is on the right track, having extinguished inflation in the short term, thanks in large part due to the precipitous decline in oil and commodities prices and due to the a robust monetary policy. The proof: first, one point drop in the reverse repo rate and the 50 basis off the CRR, begins to multiply through the economy and we are seeing movement in industrial orders; second, January inflation numbers down from over 12% to close 5%, providing the rationale to keep interest rates low and what makes real estate as an industry possible. This, coupled with the bursting of a speculative bubble in equities and credit crunch, has led to over-leveraged owners in the market and hence good values. 2009 may be the time to BUY for those looking at long term value, eager to find good quality at reasonable value, while locking down good borrowing rates. It may take several quarters before the market to account for a turn around, but such is the time required by the smart buyer, to secure the right long term transaction, before a surge in the market. In residential markets, our advice to customers: begin looking for your dream home; it may be well in your reach. Research, research, research, quality, quality, quality, rental value and area infrastructure should be your guide. Commercial leasing picture does not present such a clear picture, as we will see companies globally, reluctant to pick up inventory, fearing for a worsening economy, and we will see troubled companies offloading inventory, whether operating firms or over leveraged buyers. It may be a good time for those with cash to realize their expansion priorities and find value, whereas with inventory levels built up and continued additions to those inventories, the buyer’s market may continue beyond the projected economic recovery curve. Again, this may provide opportunities for commercial buyers in Tier 1 and Tier 2 cities. Companies expanding leases, this may be your time to begin the search for the right lease to lock down reduced rates and negotiate good deals. |
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| The Anatomy of a Good Commercial Lease in Volatile Markets |
| Commercial lease terms can have tremendous consequences over the duration and it is one of most important decisions of a business enterprise. Basic provisions such as rent, duration, and security deposits are highly variable given the volatile market. It is important to work with a company that understands the local market and clearly represents one party’s interest in a transaction. In addition to the Basic Provisions, identifying at the outset, ongoing charges, related to utilities, insurance and property taxes, creates a more complete commercial transaction. In addition to the responsibilities of the parties, size, common areas, parking areas, maintenance, zoning assurances, right to sublease, termination and default, non-compete clauses, and dispute resolutions should be spelled out in detail. We certainly recommend finding an experienced counsel for any transaction of a size that will significantly affect your business, whichever side of the transaction that you are on. |
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Rental Management - Fundamentals of Rental Value |
| Whether in good markets or in bad, if you lock in good cash flow and long term tenants, then you may be able to continue to build equity over the long term. Remember that historical prices indicate long term growth but what makes investments risky are short time horizon expectations, which often fall prey to short term volatility. There is an implied volatility if you are working on short time horizons that may leave you exposed to risk especially if you are leveraged in such a fashion that you are not able to make the payments in a sustained manner. In today’s new residential market, having a tenant is becoming more widely accepted in urban markets and rental rates continue to rise in areas where infrastructure is solid and there is good office space. |
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| Residential Property Rates in Mumbai (INR) |
| South Mumbai |
Navi Mumbai |
| CUFFE PARADE - 20000-62000 |
KOPAR KAHAIRANE - 3500-5000 |
| CHURCHGATE - 18000-30000 |
SANPADA - 3000-5000 |
| MARINE LINES - 14000-22000 |
NERUL - 3000-5000 |
| MALABAR HILL - 22000-65000 |
CBD BELAPUR - 3000-5000 |
| NAPEANSEA ROAD - 22000-65000 |
KHAR GHAR - 2000-4000 |
| WORLI - 18000-45000 |
KALAMBOLI - 1400-2200 |
| PRABHADEVI - 13000-24000 |
PANVEL - 1800-2700 |
| MAHIM - 8500-14000 |
VASHI - 3250-5500 |
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AIROLI - 2500-4000 |
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| Central Suburbs |
Western Suburbs |
| BYCULLA - 8500-11000 |
BANDRA(E) - 7000-11000 |
| WADALA - 5000-8000 |
BANDRA(W) - 16000-28000 |
| SION - 6500-9500 |
KHAR(E) - 7000-11000 |
| KURLA - 4000-6500 |
KHAR(W) - 13000-18000 |
| POWAI - 4500-9000 |
SANTACRUZ(E) - 9000-12000 |
| CHEMBUR - 5500-7000 |
SNATACRUZ(W) - 12500-18000 |
| GHATKOPAR - 4500-7500 |
VILE PARLE (E) - 7500-11500 |
| BHANDUP - 3750-6000 |
VILE PARLE(W) - 10000-17000 |
| MULUND - 3750-7500 |
ANDHERI(E) - 6500-9500 |
| THANE - 4000-6000 |
ANDHERI(W) - 6500-14000 |
| DOMBIVALI - 1400-2500 |
JOGESHWARI - 5000-8000 |
| KALYAN - 1400-2200 |
GOREGAON(E) - 4500-8500 |
| AMBERNATH - 1100-1600 |
GOREGAON(W) - 4800-7000 |
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MALAD(E) - 4500-7500 |
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MALAD(W) - 4000-6500 |
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BORIVALI(E) - 4500-6500 |
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BORIVALI(W) - 4000-6500 |
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MIRA ROAD(E) - 1800-2500 |
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NAIGAON(E) - 1200-1800 |
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VASAI(E) - 1100-1800 |
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KANDIVALI(E) - 4500-7500 |
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KANDIVALI(W) - 4500-6500 |
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VASAI(W) - 1000-1800 |
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VIRAR - 1100-2000 |
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| Commercial Property Rates - Rentals: |
Location |
Grade A Building |
Grade B Building |
Grade C Building |
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Rent |
Deposit |
Rent |
Deposit |
Rent |
Deposit |
Nariman Point –
Furnished |
Rs. 400 – 450 |
6-12 months |
Rs.325 – 350 |
6-12 months |
Rs. 275 – 300 |
6-12 months |
Nariman Point –
Unfurnished |
Rs. 350 – 375 |
6-12 months |
Rs. 300 – 325 |
6-12 months |
Rs. 225 – 250 |
6-12 months |
Worli/Prabhadevi/
Lower Parel – Furnished |
Rs. 300 – 350 |
6-12 months |
Rs. 225 – 250 |
6-12 months |
Rs.175 – 200 |
6-12 months |
Worli/Prabhadevi/
Lower Parel – Unfurnished |
Rs. 250 – 300 |
6-12 months |
Rs. 200 – 225 |
6-12 months |
Rs. 150 - 175 |
6-12 months |
Bandra/Khar/
Santacruz – Furnished |
Rs 250 – 275 |
6-12 months |
Rs. 200 – 225 |
6-12 months |
Rs. 150 - 175 |
6-12 months |
Bandra/Khar/
Santacruz – Unfurnished |
Rs.225 – 250 |
6-12 months |
Rs. 175 – 200 |
6-12 months |
Rs. 125 - 150 |
6-12 months |
Bandra Kurla Complex – Furnished |
Rs. 300 – 350 |
6-12 months |
Rs. 250 – 275 |
6-12 months |
Rs. 175 – 200 |
6-12 months |
Bandra Kurla Complex – Unfurnished |
Rs. 275 – 325 |
6-12 months |
Rs. 225 – 250 |
6-12 months |
Rs. 150 – 175 |
6-12 months |
Kalina/Vakola –
Furnished |
Rs. 275 – 300 |
6-12 months |
Rs. 225 – 275 |
6-12 months |
Rs. 150 - 175 |
6-12 months |
Kalina/Vakola –
Unfurnished |
Rs. 250 – 300 |
6-12 months |
Rs. 200 – 250 |
6-12 months |
Rs. 125 - 150 |
6-12 months |
Andheri West –
Furnished |
Rs 150 – 200 |
6-12 months |
Rs. 125 – 150 |
6-12 months |
Rs.90 – 110 |
6-12 months |
Andheri West –
Unfurnished |
Rs.125 – 175 |
6-12 months |
Rs.100 – 125 |
6-12 months |
Rs. 80 – 100 |
6-12 months |
Andheri East –
Furnished |
Rs. 175 – 225 |
6-12 months |
Rs. 125 – 150 |
6-12 months |
Rs. 100 – 125 |
6-12 months |
Andheri East – Unfurnished |
Rs. 150 – 210 |
6-12 months |
Rs. 110 – 140 |
6-12 months |
Rs. 70 – 90 |
6-12 months |
Jogeshwari to Borivali – Furnished |
Rs. 100 – 140 |
6-12 months |
Rs. 90 – 110 |
6-12 months |
Rs. 70 – 90 |
6-12 months |
Jogeshwari to Borivali – Unfurnished |
Rs. 90 – 125 |
6-12 months |
Rs. 70 – 85 |
6-12 months |
Rs.60 – 70 |
6-12 months |
LBS Road, Bhandup to Mulund – Furnished |
Rs. 100 – 125 |
6-12 months |
Rs. 80 – 100 |
6-12 months |
Rs. 60 – 80 |
6-12 months |
LBS Road, Bhandup to Mulund – Unfurnished |
Rs. 80 – 100 |
6-12 months |
Rs. 70 – 80 |
6-12 months |
Rs. 50 – 60 |
6-12 months |
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| Commercial property rates (Sale) |
Location |
'A' Grade Bldg. |
'B' Grade Bldg. |
'C' Grade Bldg. |
Nariman Point |
Rs.28,000 - 35,000 |
Rs.22,000 – 28,000 |
Rs.18,000 – 22000 |
Worli / Prabhadevi / Lower Parel |
Rs.20,000 – 25,000 |
Rs.16,000 – 20,000 |
Rs.11,000 –16,000 |
Bandra / Santacruz / Khar |
Rs.16,000 – 20,000 |
Rs.12,000 - 16,000 |
Rs.10,000– 12,000 |
Bandra Kurla Complex |
Rs.25,000 – 32,000 |
Rs.20,000 - 25,000 |
Rs.15,000– 20,000 |
Kalina / Vakola |
Rs.20,000 – 25,000 |
Rs.16,000 – 22,000 |
Rs.12,000– 16,000 |
Andheri (E) |
Rs.15,000 – 20,000 |
Rs.10,000 – 14,000 |
Rs. 7,000 – 9,000 |
Andheri (W) |
Rs.12,000 – 16,000 |
Rs.10,000 – 14,000 |
Rs.7,000 – 9,000 |
Jogeshwari to Borivali |
Rs.8,000 – 12,000 |
Rs.6,000 – 8,000 |
Rs.5,000 – 6,000 |
LBS Road – Bhandup to Mulund |
Rs.8,000 – 10,000 |
Rs.6,000 – 8,000 |
Rs.4,000 – 6,000 |
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| Featured Properties |
S No |
Property
Type |
Sale/
lease |
Address |
Area |
Budget
(INR) |
- 1
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Residential
- Land |
Sale |
Indira Nagar, Kadavanthra, Cochin-20 |
2.28 Acres |
47 Lakhs, Negotiable |
- 3
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Residential
3 bhk Flat |
Sale |
Ashoka Tower, Parel, Mumbai |
1795 sq ft |
2.7 Crores |
- 1
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Residential
3 bhk Flat |
Sale |
Mystique moods,
Viman Nagar,
Near Airport,
Pune, Maharashtra |
1492.5 sq ft |
67 Lakhs |
- 3
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2 Bhk |
Sale |
Oberoi Splendor
Goregaon
Mumbai |
987 sq ft (Carpet) |
1 Crore |
- 9
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Residential
3 bhk Flat |
Sale |
Prestige St. John's wood, Koramangala, Bangalore - South East, Karnataka |
1744 sq ft |
1.4 Crores |
- 10
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Bungalow
3 Bhk |
Sale |
Hadapsar, Pune, Maharashtra |
1775 sq ft
excluding the balcony
and
garden area |
65 Lakhs |
- 11
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Residential
3 bhk Flat |
Sale |
Ashoka Tower, off turner road , near Tawa Restaurant, Bandra, Mumbai |
2200 sq ft |
3.5 Crores |
- 12
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Land |
Sale |
Lonavala,
Maharashtra |
2 Acres |
60 Lakhs |
- 13
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Residential
1 bhk |
Sale |
33rd Floor,
Sukmit suits,
Sukmit bldg ,Sukmit rd,Soi 13 (Lane no 13) Behind Ambassador hotel,
Bangkok |
58.5
sq mt
fully furnished |
60 Lakhs |
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Commercial office space |
Lease |
Chandivali,
Andheri (E)
Mumbai |
2150
Sq ft |
3.2 Lakhs |
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| Featured Builder |
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Located away from the Whitefield Main Roads, set beside a lake, this peaceful residential area spread over 24 acres will be beautifully landscaped. There are imaginative homes and apartments where every living area is designed to have an open view of the tranquil and natural surroundings. Apartment and Penthouses for people who share a passion for design and quality. These remarkable homes represent a synthesis of originality, an informed aesthetic and obsessive attention to detail.
No. of Units: 73 Duplex homes, 160 duplex apartments and 20 triplex apartments in 5
Blocks, 152 Circular Apartments in 2 blocks. |
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