News & Views on Indian Real Estate

Thursday, March 13, 2008

Asia's biggest real estate deal

The biggest land deal of the country took place in Noida ,a consortium led by Delhi-based Business parks and Town planners(BPTP) bagged a 95 acre commercial plot in Noida sector 94 for a mind boggling Rs 5006 crore from the Noida authority. According to a Noida authority spokesman, the permitted floor area ratio for development of the site will only be two. Only an area of 8.2 million sq ft will be allowed to develop. At this rate, the per sq ft construction right has cost BPTP a whopping Rs 6,100.

According to an official communication, the New Okhla Industrial Development Authority (NOIDA) floated auction bids for the plot in February 2008. It received four bids and March 03, 2008, the bids were assigned to a consultant to study the technical feasibility and financial viability of the bids.

The consultant submitted its report to the authority in which one of the bidders Ansal (API) was disqualified. The remaining three bidders - Omaxe, DLF and BPTP - were qualified.

The commercial complex is strategically located close to Delhi. It will be around 16 km from Connaught Place and around 10 km from south Delhi via the DND flyover.

According to Kabul Chawla, chief of Business Parks and Town Planners {BPTP}, a company engaged in developing various projects mainly in & around the national capital region (NCR), “We will ensure that this become the country’s most prestigious commercial complex. And, we are already in touch with planners and consultants like Norman Foster, for hotels, commercial complexes and financial hubs.”

The astronomical amount paid for the site is a clear indication that, in terms of sentiment, there is no downturn in the real estate sector .It also points to Noida emerging as an alternative to Delhi and Gurgaon for office space. With the airport coming up, the expressway, and all the infrastructure development happening in the backdrop of the common wealth games to be held here, Noida and Greater Noida are sought after real estate destination. At present, office rentals in Delhi’s high class areas range between Rs 200 to Rs 350 per sq ft. In Gurgaon, it varies between Rs 80 and Rs 120 per sq ft. As against this, rentals in Noida are in the range of 40-60 per sq ft. This has also made Noida an attractive destination for commercial space in NCR. In the previous biggest land deal in Noida, Unitech had walked off with an approximately 340-avre residential plot for Rs 1,582.83 crore.