Sunday, October 14, 2007

High Growth in Rental Property Market in India

Rental market soaring high and posing to be the most dynamic sector in Indian business scenario. Real Estate seemed to be the best investment opportunity with a growth rate that was even higher than the growth rate of our economy. But then started the realty blues, correction in prices, fear of the real estate being unreal and a bubble being on the verge of a burst. And now there is a new wave with which real estate may surge once again, The Rental Property Market.

At present the country's commercial and residential real estate rental market has a price tag of approx $50 billion, and is expected to grow 25% on a yearly basis. There are numerous factors that contribute to this incredible situation in rental property market. Major factors that are responsible for bringing about this change include growth in information technology/information technology-enabled services industry like BPOs as they are renting large commercial spaces in order to expand their business process in India. Apart from this, emergence of India as an important investment hub in the world market, growth in foreign direct investments and simultaneous growth in the purchasing power of the Indian middle class plays a pivotal role.

With our industrial sector growing super fast, youth being more career conscious and BPOs churning uncountable employment opportunities we find brilliant talents from all over the country migrating to big cities like Delhi, Mumbai, Chennai and Kolkata. People coming to these places in large numbers have created troubles for required accommodation in these big cities and this is time when renting property comes into the scene. In order to overcome this acute scarcity for good accommodation in the big cities and surrounding areas which can meet the requirements of the population coming to the cities for employment, people began renting their properties and soon realized that it is an amazing source for income as well. Also for young people despite of the handsome salaries and attractive prerequisites they earn owing a property is not a matter of fun and hence the option with which they are left with is to go for rented accommodation. Moreover with people aspiring rich lifestyle and an accommodation that matches their taste further drives the prices of rental property up the wall and makes it a lucrative business opportunity.

At this point it can be very conveniently said that rental property market has great potential and can turn out to be a reliable source of income generation.

The advantages of investing in rental property market can be summarized as below:

  • Demand for accommodation is ever increasing and people are willing to pay huge amounts for an accommodation that matches their taste and meets all the mentioned specifications.
  • In case immediate selling of any property is not possible, renting the accommodation is a good business and the returns are amazingly high.
  • Only apartments in multistoried buildings are not in demand but people seeking independent houses for rent are also many. As a result investment in building independent houses for renting purpose is also a money-spinning business with high rate of return.

This new trend is creating a wave in the RE industry in India.

Saturday, October 6, 2007

Retail Boom - Can it alter what we eat?

Recently, there has been news of many Real Estate and even other corporate foraying in the booming Retail industry in India. At present the organized sector accounts for only 2 to 4% of the total market although this is expected to rise by 20 to 25% on YOY basis.
Some Key Facts:-
  1. Retail is India’s largest industry, accounting for over 10 per cent of the country’s GDP and around eight per cent of the employment
  2. The market size of Indian retail industry is about US $312 billion
  3. Organised retailing comprises only 2.8 per cent of the total retailing market and is estimated at around US$ 8.7 billion
  4. The organised retail sector is expected to grow to US $ 70 billion by 2010


Indian Retail sector offers huge opportunity for Retail Dining as well and with the fast economic growth of the country, more disposible income with individuals and people willing to spend money on quality products and entertainment, retail dining is giving a boost to the resturant and snack chains. Every big retail setup requires a good amount of eating space for people to sit and relax after shopping.
Big international retail giants like Tesco, Coles and Walmart have been trying to make it in the market, but so far only walmart is the one successful in working out the option. Coles, Tesco, Sainsbury, all of them if come to India will bring a big revolution in the food industry too in India, since that means a lot of ready to eat stuff which suits the neuclear families of working partners and high quality high priced food material. Currently, though Indian chains are doing it, but the quality of "Ready to Eat" stuff is still a long way to go.

Now consumers will have more choice and variety and soon India will have more food and non-food brands collated at one place than anywhere in the world. I beleive, its just a wait and watch with excitement :)
I think this revolution will change and is already changing the living and eating styles of many families in India, which will carry it's pros and cons.

Rahul Gandhi

Contributed By : Rahul Gandhi

Monday, October 1, 2007

SKY IS THE LIMIT for Burj Dubai !

Burj Dubai: Pride of Dubai

Burj Dubai will be described as a tall, breathtaking and aesthetic master piece by one and all but will provide haven only to a fortunate few.

Burj Dubai not only symbolises the world’s highest building but also signifies the world’s highest objectives. An awe inspiring and dynamic edifice, Burj Dubai is an immaculate symbol of the Middle East. Being constructed in Downtown Burj Dubai, an inspired urban concept, Burj Dubai has set new benchmarks for the entire world to follow suit. This tower is undoubtedly the fundamental axis for the revolutionary development in Downtown Burj Dubai.

Burj Dubai is not just a structure but a prestigious monument and an icon of the Gulf. The primal progress in Downtown Burj Dubai, Burj Dubai stands out from the rest of the developments in terms of quality, design and individuality. Under construction since 2004, this 160 storey tower will encompass residential, commercial as well as retail components, all under one roof. Privileged group of people will call it their home, some will make important business decisions whereas some others will benefit from the high class restaurants.

Burj Dubai developed by Emaar properties is designed by Adrian Smith, the world renowned architect who has also had a hand in several of the world’s tallest buildings. Burj Dubai certainly reflects the unique culture and environment of Dubai. The tower design is derived from the geometries of a native desert flower and Adrian Smith has also incorporated patterns from the traditional Islamic architecture into Burj Dubai. This super tall structure has indeed set the standard for high class quality as a result of making use of the world’s finest concrete and steel, suitable structural engineers as well as top designers.

The interiors are planned in such a manner whereby this global monument befalls to be a personal one. The 3-wing plan maximises the amount of exterior window area, and thus natural light without compromising on the privacy. The homes at Burj Dubai are individual, custom and unique. They are designed so that the owners can easily express their own tastes and preferences. Living in the world’s tallest building and a luxurious home will definitely pose a creative challenge to the owners in terms of decorating their homes.

Burj Dubai will have the finest amenities designed for offices and recreation purposes. Facilities will consist of exclusive corporate suite offices, residential suites, four luxurious pools, a cigar club, observation platform, restaurants, library, exclusive residents’ lounge and 15,000 sq ft for fitness.
Despite Burj Dubai still under construction, downtown Burj Dubai has welcomed its primary residents. The residents can now experience the sheer manifestation of high-rise living. In addition to this, the largest mall in Dubai called the Dubai Mall will open up in 2008. Vivacious entertainment choices, boulevard pedestrian pavements as well as retail components will complement the lives of the residents in future.

One of the must see places in downtown Burj Dubai is the Giorgio Armani hotel in the Burj Dubai tower. A joint venture between Emaar Hotels and Resorts and Giorgio Armani, this hotel will have the Italian designer’s distinctive style imprinted on everything from the interiors, furnishings to the amenities. According to Giorgio Armani, the new Armani hotels and resorts, the first of which will be the hotel and suites in Burj Dubai mark the beginning of a new chapter in Armani history. The hotel will become a flagship for a new international chain.

Burj Dubai is an unparalleled illustration of international cooperation, a symbol and a beacon of progress for the entire world. Burj Dubai is not crafted by chance but it is an outcome of the transformation of the city from a local centre to a global one. This tower is a concrete testimony of Dubai’s position and abilities in the growing and competitive world. Burj Dubai goes beyond physical specifications. Rather it is a source of inspiration and an architectural feat. With the completion of the Burj Dubai tower in late 2008, Dubai’s vision of attaining impossible goals will be successfully accomplished.


  • The estimated building cost is US $1 billion. Samsung Corporation from South Korea is the contractor for the main building.

  • Downtown Burj Dubai will offer 30,000 homes, world’s largest shopping mall, nine hotels, six acres of parkland and 19 residential towers.

  • Many of the tower floors will be occupied by the 175 room Armani hotel. In addition there will be 144 luxury residential suites designed by Giorgio Armani and kitted out with his home furnishing line.

  • Floors 17 to 108 will have 800 private apartments.

  • Most of the higher floors will be offices and private suites.

  • An observatory 442 metres above ground on the 124th floor will be open to public; the highest publicly accessible observation desk in the world.

  • There will be a club on floors 144 to 146.

  • The tower’s external surface is the size of 17 football fields.

  • The tower will be built of glass, aluminium, concrete and steel.

  • The external surface is made up of unitised panels made of aluminium, glass and various brackets. They interlock on site and are two storeys tall. They improve the quality and speed up building work.

  • The rods that reinforce the structure weigh a total of 31,400 tonnes.

  • The concrete used is equivalent to a solid cube of concrete 61 metres in size or a 1.5. metre wide pavement.

  • Water system will supply about 250,000 gallons per day.

  • At peak cooling times, the tower will require approximately 10,000 tonnes of cooling per hour, which is equivalent to the capacity provided by 10,000 tonnes of melting ice in one day.

  • Peak electricity demand of the tower is the same as 360,000 100-watt light bulbs all operating at the same time.

  • Burj Dubai has been designed to maximise occupant comfort and safety. Extensive wind tunnel testing enables the building to resist high wind loads while minimising vibration. Reinforced concrete slabs and corridor walls provide an inherently high resistance to fires.

  • A major factor in designing the tower was fire safety and evacuation. As it is impossible for people to walk down 160 floors, pressurised air conditioned refuge areas will be made available approximately every 25 floors where people could wait safely or rest on their way down.

Aarti Prashant

Contributed By : Aarti Prashant