Knight Frank India, the country’s leading independent global property consultants, has predicted that modern retail will grow from Rs.74 billion in 2009 to Rs.203 billion in 2012, whereas the Real Estate Retail Potential (RERP) will increase from Rs.79 billion to Rs.216 billion. The model also predicts that in 2012, Mumbai will continue to face the situation of oversupply by 1.31 mn sq.ft — six per cent of the total retail stock.

Knight Frank further estimated that by 2012, the higher pace of real estate developments in comparison to the pace of the modern retail market growth will create an oversupply of 21 mn sq.ft in seven cities — Mumbai, Pune, Hyderabad, Delhi, Kolkata, Bengaluru and Chennai. Its examination of the state of affairs of the retail market implies the frenetic rental hikes witnessed during the boom will not haunt retailers until 2012.

“One of the key findings by our research team with regard to the city of Mumbai is a noticeable undersupply of modern retail in several suburbs across the city. Our research has undertaken an extensive survey of all major operational and upcoming malls and two prominent high streets in each of these seven cities. The report determines the performance of the operational malls in terms of occupancy, rentals; retail formats and also foresees the demand-supply dynamics till 2012,” said Dr Samantak Das, national head – Research, Knight Frank India.

Demand for prime office locations in the country’s financial capital Mumbai has improved in the first quarter of 2010, thus bringing down vacancy level of such premises by over 5 percentage points to 12.9 per cent. According to a latest report by the global realty consultant CB Richard Ellis (CBRE), leasing activities in major Indian office markets remained buoyant in the first three months of 2010.

“In Mumbai, there was a noticeable rise in enquiry levels and transactional activity. The increase in demand brought CBD (central business district) vacancy compressed to 12.9 per cent from 18.2 per cent recorded in the final quarter of 2009,” the report said. The consultant said the CBD of the National Capital Region reported an increased number of transactions in both Grade A and Grade B market segments.

The major business districts of Bangalore also reported a slight increase in interest from occupiers and a marginal rise in leasing activity, it added. “During Q1 of 2010, while most micro-markets continued to face a situation of oversupply, demand levels did see upward movement. Overall, the economy in India has seen improvement during these past few months and this in turn has brought some stability to the real estate sector,” CBRE chairman and managing director (South Asia) Anshuman Magazine said.

In the short term, rentals in most micro markets are expected to remain stable or even may correct marginally, he added. “I also believe that future rental dynamics would depend on the velocity of absorption of existing demand,” Magazine said. In its earlier report last month, CBRE had said that rental value in NCR’s CBD appreciated by four per cent in the first quarter of this year, while it remained constant in Mumbai, Chennai, Hyderabad and Pune.

With a view to reduce carbon emissions, the government will soon rope in major real estate developers for voluntary adoption of a set of new guidelines on building low energy consuming green housing complexes. The move is part of the government’s national action plan on climate change.

The ministry of new and renewable energy (MNRE) has asked an expert agency set up by it in partnership with The Energy & Resources Institute (Teri) to evolve a set of guidelines on how to build large housing complexes in the most environment friendly and energy efficient way. The new guidelines would include requirements such as meeting about 5% of the energy requirements through renewable sources.

While development of townships is the mandate of the ministry of urban development and partly, the housing ministry and urban poverty alleviation, the proposed green rating for housing complexes is an initiative of MNRE because it is an extension of the projects it is already doing. Officials from other ministries are part of a technical panel of MNRE dealing with green infrastructure for large development. The expert agency—the

Association for Development and Research of Sustainable Habitats or ADARSH—which now gives green ratings for individual buildings, will evolve the new norms for large residential complexes. ‘‘The rating called Griha would be voluntary for builders in the initial few years, after which it could be made compulsory,’’ the rating agency’s CEO Siva Kishan told FE.

The idea is to rope in top five real estate developers to voluntarily adopt the guidelines, which would then set the benchmark for others. The rating agency is now in talks with various developers and the first partnership with a real estate developer may be announced soon, he said. The rating agency is also talking to various state governments for giving incentives to developers to adopt the new norms that would reduce energy consumption and the impact of construction on ground water levels and the environment.

Shiva Kishan said the Maharashtra government is open to reducing property tax for green buildings as an incentive, while some other states are open to let builders construct more floors if they follow green building norms. This would allow them to recoup the rating fee as well as the extra initial cost of environment-friendly construction. The ministry now allows some incentives for individual buildings to get green rated. These include reimbursement of 90% of the rating fee and rewards for the architect.

“India Realty Expo 2010 held in Dubai achieved great success this year, since most of the exhibitors were offering ready properties or possessions between 3-6 months. Maharashtra Chamber of Housing Industry (MCHI), the most prominent body of real estate builders and developers in India has received a cheering response to their ‘13th India Realty Expo 2010’ held in Dubai, with 2847 NRI’s visiting the exhibition in three days during June 3 and 5, 2010.

“Looking at the factors such as attractive prices of Indian real estate as compared to Dubai coupled with a lackluster trend in local markets there, turned out a bonanza for the Indian realtors exhibiting their properties in the Dubai exhibition with investors and genuine buyers visiting in large number this year.”, said Mr. Sunil Mantri, President MCHI.

Eighteen leading developers and builders from India including Acme Housing (India) Pvt Ltd., Akar Creations Pvt ltd., Ashiana, Delta Group, Everest Developers, Godrej Properties Ltd, Hiranandani Constructions Pvt Ltd, Kolte-Patil Developers Ltd, Marvel Realtors, Nahar Group, Nirmal Lifestyle, Nyati Group, Our Town, Pathy Housing, Prathmesh Construction Pvt Ltd, Runwal Group, Rustomjee, Uma Constructions- represented by United 4 realtors. Among the HFIs HDFC Ltd. and Standard Chartered Bank also participated in the exhibition.

“We have seen tremendous response and turnout for the exhibition this time. Projects in Bandra, Andheri, Powai, Kandivali, Borivali, Ghatkopar, Thane, Navi Mumbai from Mumbai and other cities such as Pune, Bangalore and Goa received a lot of enquires for residential flats. Quality of visitors was good and mostly they were affluent, focused and high end consumers. Moreover visitors showed interest in 2/3 BHK flats ranging from 60 lakh to 1 crore”, said Mr. Deepak Goradia, Hon. Secretary , MCHI.

“India Realty Expo 2010 held in Dubai achieved great success this year, since most of the exhibitors were offering ready properties or possessions between 3-6 months. We have really encouraged with the over the counter sales of 70 flats worth Rs 560 crores during the three day exhibition, said Mr. Zubin Mehta, CEO, MCHI. This was the 9th year of the India Realty Expo in Dubai to provide a one stop solution to all the needs of an NRI intending to purchase a property in India. The Exhibition was inaugurated by his Excellency Mr. Naresh Mehta, Consul Commerce of India, Consulate General of India, Dubai-U.A.E on June 3, 2010.