Delhi-NCR Economy Thread

[KuwarOnline]

Originally Posted by Indian Rockstars

Dude ....i fail to understand from where do you get these stats...???

that wht rediff n livemint(1.28L) article says....

in rediff article they say delhi has 78k n twice the national average
in same article they say mumbai has almost three times the national average

[KuwarOnline]

Originally Posted by Indian Rockstars

Some links

http://www.indicus.net/media/index.p...mumbai-spends-

The confirmation...

http://economictimes.indiatimes.com/...ow/5664515.cms

any of the article doesn't say mumbai has some xxx pci ....

[yashchauhan]

May be they are comparing major india cities...going by per capita income...no city is richer than Amby Valley...lol!

[Indian Rockstars]

check Maharashtra budget report 2008-09...you'll get the answer..!!!

[KuwarOnline]

its not opening....if u able to copy paste some text may help to understand....or i think they have calculated with MMR...not only mumbai....i dont know exactly

[Indian Rockstars]

Originally Posted by KuwarOnline

its not opening....if u able to copy paste some text may help to understand....or i think they have calculated with MMR...not only mumbai....i dont know exactly

Thats Ok bro....however, it says Greater Mumbai at number 5 and not mumbai....


also check city mayors for further reference .

[IchimaruGin1]

BPTP launches business destination at Noida

Offering global-standard amenities, Delhi-NCR’s developer BPTP has announced the launch of an integrated commercial district Capital City project at Noida.

Capital City comes up with facilities like hotel, serviced apartments, shopping complex, entertainment and office space. The international standard of infrastructure and well co-ordinated traffic movement and adequate parking planning will ensure high security system of the whole complex.

The project claims to offer service apartments and entertainment zones akin to the facilities available in Singapore and Hong Kong.

Announcing the launch of the world class business destination, Amit Raj Jain, vice president, marketing, BPTP, said, “The launch of Capital City signifies the commitment of BPTP to bring in global standards with sustainable design to create constructive synergies”. He further added, “The project also boasts of a healthy and serene work place environment, special emphasis on Vastu-compliant buildings.

Capital City is strategically located at the start of Noida expressway and is accessible through major roads of south and central Delhi. There are two metro lines connecting the Capital City — Noida-Connaught Place line and Connaught Place-Jasola line.

Spread across 21.17 acres, Capital City is a fully paid-up property, thereby ensuring zero-risk to buyers. It comprises of 2.1 million sq ft of office space, 1 million sq.ft of retail and entertainment space and 1.1 million sq. ft of hospitality space including service apartments.

A major attraction of Capital City is a luxury hotel (currently under construction), with a convention centre for hosting business conferences, seminars and international events.

Capital plans the state-of-the-art corporate suites which would provide high speed elevators, double glazed windows, central air conditioning, video conferencing, Wifi internet, concierge desk and fitness centre. The project would have modern traffic movement system and ample vehicular parking facilities.

Capital City shall also have health clubs, restaurants, bars, spas, shopping arcade. Capital City enjoys advantages of location and accessibility. Key commercial centres in central and south Delhi are at a distance of 15 km from Capital City.

Noida, which has witnessed tremendous commercial rise in the recent past is in a need of a composite and integrated one-stop business destination. BPTP’s Capital City project aims to answer this need, which will cater to both the residents as well as serve commercial purposes.

http://www.mydigitalfc.com/real-esta...tion-noida-323

[IchimaruGin1]

High minimum wages in Delhi push small industries out

With the Delhi Government increasing minimum wages by up to 49 per cent effective from February this year, the minimum wage levels in the Capital have now become the highest in the country.

This has had a severe impact on the wage bills of industry in the National Capital Territory (NCT) and many are examining the option of shifting to suburban areas such as Faridabad, Noida and Gurgaon to avoid the significant dent on their costs.

While the larger industries may be less hit, since they already pay higher wages, the worst affected have been the smaller enterprises in the micro, small and medium enterprises (MSME) category, besides export-related units where the margins vary with the currency rates and at times are very low.

According to a Delhi Government Labour Department notification of March 9 this year, minimum wages in the region have increased by between 33 and 49 per cent with effect from February 1.

At the bottom end, unskilled labour salaries have been hiked to Rs 5,278 a month from Rs 3,953, while on the higher end, minimum salary for graduates is now Rs 7,020, up from Rs 4,713.

Mr Praveen Nayyar, Senior Vice-Chairman, Apparel Export Promotion Council and Managing Director, Dimple Creations, an apparel exporter, told Business Line, “Such a steep increase has never happened. Normally, the increase is always around 5-6 per cent and happens twice a year.

The current increase is exclusive of the provident fund deduction and the ESI, which takes up further 6-7 per cent and is too high for an industry like ours.”

Workers' plight

He added that the increase needs to be industry-specific, like in Karnataka.

“The potential of the industry to pay the kind of wages must be examined – garment exporters and the auto industry cannot possibly afford similar wages. We employ about a 1,000 workers of which 600 would be tailors. If, for tailors, the average wage goes to Rs 6,500 from Rs 5,000 earlier, the total increase on my wage bill would be about Rs 9-10 lakhs a month. With high yarn prices and currency prices fluctuating, we have now been hit badly,” he said.

However, Mr Salil Singhal, Chairman, CII-MSME Council, underlined the plight of the workers who have been under pressure due to the rising food and living costs, especially in Delhi.

“The high inflation may seem to be some justification for the rise in wages, though on the other side companies have margin pressures.

For MSMEs any rise in costs is a huge issue,” he said.

The Apex Chamber of Commerce and Industry of NCT Delhi, along with 29 industry associations, has filed a complaint on the issue with the Delhi High Court.

While the court has already issued a notice to the State Government on April 5, a hearing is now scheduled for July 14 for the Government's response.

“We went to court because the Government did not follow certain sections of the Labour Act which says that a committee has to be formed first to discuss the wage increase. After this, a notification is usually issued for 90 days asking for objections from the labour unions and industry. The Government has,ad hoc, increased the wages,” said Mr Nayyar.

Time-bound work

He added that during the course of the trial the industry will continue to pay higher wages.

“We can't afford a tool down by the labour unions - because our work is very time-bound,” he said.

In Delhi, there are close to 500 apparel export companies operating in Naraina, Kirti Nagar, Okhla, I P Extension, besides an even larger number of other small industries. While Mr Nayyar pegged the bottom line for garment exporters at one per cent of the turnover, others said it was closer to 5-7 per cent.

Moving out

To avoid the higher costs, many such exporters and small industries are also considering moving to the nearby towns of Gurgaon, Noida and Faridabad. Though these towns have infrastructure issues such as lack of electricity, the money saved lower wages seem to make up for the other costs. “I am planning to shift my Chattarpur factory to Faridabad in a month. Many of my friends who have similar operations in Okhla have already shifted or are about to move,” said Mr Arun Kakkar, owner of a textile export company called Comma.

Added Mr Nayyar, “Apparel industry does not have anything so fixed that cannot be moved. Machines can be moved in two days. However, it is tough to move in between the season, the lean period of May-June is usually preferred.”

http://www.thehindubusinessline.com/...2651270700.htm

[IchimaruGin1]

it seems that Delhi will become a mostly service based economy. While the NCR will take on manufacturing

[Abhishek901]

Originally Posted by IchimaruGin1

it seems that Delhi will become a mostly service based economy. While the NCR will take on manufacturing

Good for Delhi. It will mean lesser pollution. However, not all of NCR have manufacturing based economy. Gurgaon, Noida, and G. Noida have mostly service economies, while Faridabad, Manesar, Ghaziabad have more manufacturing.

[Gotcha]

Originally Posted by Abhishek901

Good for Delhi. It will mean lesser pollution. However, not all of NCR have manufacturing based economy. Gurgaon, Noida, and G. Noida have mostly service economies, while Faridabad, Manesar, Ghaziabad have more manufacturing.

how is manufacturing related to local pollution? As far as I know most machines in any kind of manufacturing facility are electrically driven (since that is the more efficient way to go), with the pollution occurring at the power plant which might be hundreds of kilometers away. Is a lot of manufacturing in India currently done by diesel burning generator power??

[Abhishek901]

Water pollution (from most of them) and air pollution (from some). There are some industries which release toxicants in air. It does not necessarily mean smoke only. And yes, diesel gensets too contribute heavily as electricity is not regular. Most of the industrial areas are (partially) unauthorised. Authorized ones are expensive and less popular.

[Gotcha]

That right there shows how much work needs to be done to get our industrial infrastructure up to the mark. In developed countries an "industrial" area does not necessarily mean a "poluted" area in any way.

[KuwarOnline]

Originally Posted by Indian Rockstars

Thats Ok bro....however, it says Greater Mumbai at number 5 and not mumbai....

dear....the PCI for 2007-2008....not for 2008-2009...which i was talking....

I saw the maha gov pdf.....at page number 29...it clearly says "Regionwise Per Capita Income (Rs.) 2007-08"

Interestingly Gurgaon has 3rd largest PCI after chd n mumbai.....

here is another reference...
http://businesstoday.intoday.in/inde...1&limitstart=4


I know this is not right place to talk....so requesting to move this discussion to mumbai economy or mumbai discussion thread.

[IchimaruGin1]

Demand for office space picking up in Noida

Noida and Gurgaon the two key office locations of Delhi NCR (NYSE:NCR) have been viewed as distinct property markets so far with Gurgaon commanding significantly larger stock and higher rentals. But the gap could soon narrow, say experts.

Although its current supply of office space is less than half that of Gurgaon, a relatively strong development pipeline in Noida could propel the market size to over 60 per cent of Gurgaon in the next 3-4 years, according to a report by DTZ.

The findings estimate that office stock in Noida will rise from 20 million square feet (msf) to 48 msf between 2010 and 2013, while in the case of Gurgaon the supply will increase from 45 msf to 77 msf in the same period.

Gap reducing

This means that while the office stock in Noida will continue to trail Gurgaon in absolute terms, the gap will reduce considerably.

IT and ITES companies, which occupy more than three-fourths of the total office space in Noida, say factors such as lower rentals, planned infrastructure and availability of large parcels of land are driving the appeal of this suburban market.

This month, BPO player e4e established a new facility at Noida — its first centre in Northern India — with an overall capacity of 700 seats. BPO major EXL has leased an additional 80,000 sq.ft of space in an SEZ in Noida.

Last quarter, European IT-enabled business service provider Steria expanded its operations by setting up a new centre at Greater Noida to offer Remote Infrastructure Management services.

Rental scene

“We found the rentals in Greater Noida to be 50 per cent lower as compared to some of the other office locations in the NCR. Also, the cost incurred by our employees goes down significantly as residential prices for them are more affordable in Noida and Greater Noida,” Dr Mukesh Aghi, CEO, Steria India Ltd, said.

For the record, the vacancy level in Noida is estimated at nearly 45 per cent against 30 per cent for Gurgaon. This combined with lower absorption levels have kept the average rentals (including commercial rates in Noida at about Rs 40 a sq.ft a month compared to Rs 82 in Gurgaon .

“We are now seeing quality supply flow into the Noida market. In certain cases, companies looking to set up campuses are also coming to Noida. The campus model does not utilise the entire FSI, and since the development tends to be more horizontally spread, the availability of cheaper land becomes critical,” Mr Anurag Bhatnagar, Director of DTZ, pointed out.

Easy access from South Delhi coupled with planned development and infrastructure created by the local authority has brought in companies such as NIIT Technologies (OOTC:NIIOF) into the satellite town.

Infrastructure in place

“In Noida and Greater Noida, the infrastructure such as highways and freeways were built before the office space development started,” says Mr Arvind Thakur, CEO, NIIT Technologies. NIIT Tech is in the process of opening a new campus at Greater Noida — the first phase is expected to be operational by the end of the current fiscal or early next fiscal. NIIT Tech has already pumped-in over Rs 120 crore for establishing the campus, and expects to inject Rs 25 crore into the project this year.

Real estate company BPTP, which is creating office space as part of its integrated commercial development project (Capital City) in Noida, claims it has received strong response from potential clients.

With strong demand flowing in, realty player The 3C Company is now looking beyond IT space development in Noida. “So far we done IT SEZ development in Noida, but now we are considering developing full commercial space also. However, the details are yet to be worked out,” Mr Supreet Suri, Director, the 3C Company said.

http://www.istockanalyst.com/article...icleid/4124766

[SSCaddict]

Govt to unlock 30k acres in NCR

New Delhi: The National Capital Region (NCR) may soon have 30,000 acres of land available for residential construction, if the government’s steps in this direction bear fruit. The Centre is attempting to fast-track the resolution of disputes over NCR title deeds, which force developers to stay away. NCR is estimated to be short of 5 lakh housing units, and demand is growing at 1 lakh units a year.

The move will spark price correction, releasing over 2 million housing units. The exercise piloted by the urban development ministry and implemented by the NCR planning board, will be kicked off by year-end.

The exercise will unlock land in three states: eight districts in Haryana (Gurgaon, Rewari, Faridabad, Sonepat, Rohtak, Panipat, Jhajjar and Mewat); five districts of Uttar Pradesh, (Ghaziabad, Bulandshahar, Meerut, Baghpat and Gautam Budh Nagar) and one district (Alwar) in Rajasthan. The government plans to seek help from local bodies to identify and verify land ownership, after which independent agencies will cross-check data.

“This is good for developers who can get land and good for consumers who can get residential units at lower prices. But one has to see how it is implemented. India doesn’t have a very good history in implementing such policy initiatives. One also has to see how soon the free land can be made available for developers,” Abhishek Kiran Gupta, head-research, Jones Lang LaSalle, India said.

“In any big transaction, the problem of title deed arises at some point. We are trying to work out a formula. Various suggestions have come in. The exact strategy will be worked out in some time,” an urban development ministry official said.

The ministry plans to advise states to create an ad hoc title deed in the name of the claimant to facilitate the transaction. “This should not be difficult as in villages and small towns, everyone is aware of who owns which land. The only problem in some cases is that official records are not available. This exercise will help do away with this problem,” said an official from the Haryana housing board

source

[gentem]

Residential component at $66.5bn of realty pie
TNN, Sep 25, 2010, 04.42am IST

MUMBAI: A Real Estate Intelligence Service ( REIS) report prepared by Jones Lang LaSalle Meghraj says the total market value of under-construction projects in India has crossed the $100-billion mark.

The market value and costs of development have been estimated at prevalent property prices and costs of construction, considering the variance in asset classes and geographical locations, it added.

The residential component contributes 66% ($66.5 billion) of this $ 101.3 billion, while the rest is contributed to by commercial office and retail space combined. The premium segment comprises only 4% of the saleable area being developed, but to 24% of the market value. "While NCR- Delhi leads in terms of volume of residential properties being developed, Mumbai contributes a larger share to the market value," it said.

On the other hand, the market value of commercial office and retail under construction has remained range-bound during 2006-2010 due to the effect of an increase in construction activity offset by a fall in capital values. "However, the contribution of residential has amplified due to a confluence of increase in construction activity and rapid recovery of property prices," the report said.

The market value of commercial (office and retail) real estate under construction is $34.8 billion and commercial office space under development contributes to 74% of the estimated market value being developed in the commercial sector.

"As of 2Q10, Tier-I cities of Mumbai, NCR-Delhi and Bangalore contsribute to 70% of the market value of under-construction commercial office space, while Tier II cities of Chennai, Pune, Hyderabad and Kolkata contribute to 21% of the pie. Other investment grade developments in Tier III cities contribute to a mere 9% of the pan-India market value being developed in India today."

According to the report, since 2007-08, a total foreign direct investment of $7.82 billion (over Rs 35,000 crore) has been put into housing and real estate in India. http://timesofindia.indiatimes.com/i...ow/6623592.cms

[gentem]

Dubai emerges from economic downtown as world's fastest growing office market on a per capita basis

UAE, 5th October 2010 - Dubai has experienced the greatest growth in occupied office space of any major city in the world on a per capita basis over the past two and a half years, according to the latest research from Jones Lang LaSalle, the world's leading real estate advisory firm.

The new research, which compared data on 25 major global cities, reveals that Dubai is the fastest growing office market in the world on a per capita basis, with the total area of occupied Grade A quality office space increasing by 2.8 sq ft per capita since the beginning of 2008. While other markets have grown by much more in absolute numbers, these are far larger mega cities, hence Dubai score highest in terms of net absorption (the change in occupied office space) per capita.



International comparisons are notoriously difficult, given the different geographical coverage and definitions adopted in different real estate markets globally. The total occupied stock of offices in those areas of Dubai monitored by Jones Lang LaSalle is estimated to have increased by around 42% since January 2008. This places Dubai in fifth place globally when assessed against the pace of growth of other office markets monitored by Jones Lang LaSalle. The fastest growing cities globally on this measure have been the mega cities of Delhi (61%), Mumbai (58%) Beijing (56%) and Bangalore (43%), which have all experienced strong net absorption as their stock of international quality office space has expanded rapidly from a previous low base. Outside of the BRIC economies, Dubai has been the fastest growing city globally in percentage terms (calculated as the change in occupied office stock between January 2008 and July 2010, divided by the total occupied stock in January 2008).



Commenting on these findings, Blair Hagkull, Chairman of Jones Lang LaSalle MENA, stated: http://www.zawya.com/story.cfm/sidZA...capita%20basis

[Master of Disguise]

Delhi overtakes Mumbai as most competitive city for business.

http://www.moneycontrol.com/news/cur...iz_503162.html

The Institute for Competitiveness unveiled its India City Competitiveness 2010 report. Mumbai slipped to rank 3 from rank 1 in 2009, with Delhi emerging as the most competitive city for business in India.Chennai came in second among the Tier I cities and Bengaluru dropped one spot to the fourth place.
Kolkata and Hyderabad maintained their fifth and sixth rank respectively,

Meanwhile, Ahmedabad and Pune were named the most competitive Tier-II cities in India.

The report was based on 800 indicators to measure competitiveness of 50 cities in India. The study also stated that policy makers were struggling with infrastructure and development.

[MeMumbaikar]

Originally Posted by KuwarOnline

World's top 20 BPO hotspots

1)Bangalore
2)Mumbai
3)New Delhi
4)Manila
5)Chennai
6)Hyderabad
7)Dublin
8)Pune
9)Cebu City
10)Shanghai

Source
http://www.rediff.com/business/slide...s/20101214.htm

==
wow!!! we have 6 cities in top 10 in world

Many indian cities