Residents in Bengaluru giving up their rented houses amidst rising covid cases – ET RealEstate

BENGALURU: With covid cases shooting through the roof, several Bengalureans are giving up their rented houses to seek shelter in their hometowns

If you’ve been seeing quite a few To-Let boards in the City, you’re not imagining them. The boards are appearing on shop windows, house gates and at office entrances as people have started seeking safe places. Like a flock of birds flying homes to shelters from the storm, thousands of people in the City are seeking out the safety of their parents’ homes and home towns.

Sujit Kumar had rented a house in Marathahalli because it was close to his office. With Covid cases in Bengaluru averaging close to 10,000 a day and the fears of a lockdown rising again, Kumar has vacated his house and moved back in with his parents’ house in Hesaraghatta. Kumar is just one of the many who have moved out of their current accommodations to safer options.

Darshana (name changed), a content writer, will be moving house this weekend. Her landlord had raised the rent and she moved to another area where she could be close to a friend and her family. “Last year’s lockdown was hard on me. I don’t think I can survive another lockdown, living alone,” she says.

Realty professionals say that with the resurgence of Covid cases, many rented houses are becoming vacant. T Ramesh Kumar, a real estate agent said, “Many of my shops are also vacant. Shopkeepers have vacated the premises fearing a lockdown. Rumours are spreading as rapidly as the coronavirus. Despite the State Government saying there will be no lockdown, people are not ready to listen and they don’t want to get stuck in the city without transportation and food, like last year. Hence, a section of the people is moving out and commercial complex owners are staring at vacant shops and offices.”

Kamala S, a resident of Defence Colony said, “My tenants had vacated the house last year and just two months back they had returned. But with Covid cases rising again, they have gone back to their home towns. I don’t know how long I will have to wait till I get new tenants.”

The railway stations have been seeing a huge rush of people in the last few weeks as many are heading out of the City. A few want to settle down in their home towns where Covid cases are comparatively lesser. As many companies have been offering work from home, many are opting to work from villages and small towns that they come from. R Prasad, a first-year BA student told Mirror, “I vacated my house on Bannerghatta road on April 11 and went back to Patna as my classes are now online. Back home, my parents are worried about my safety. Many of my friends have also moved out of the city.”

Those who own houses are now planning to offer discounts to their tenants. “As per the agreement, there used to be a 10 per cent hike in the rent every year. However, we have discontinued the practice and instead have asked for a five per cent increase. It’s better to have some rent coming in than none at all. Even if a house is vacant, we have to pay a minimum amount for electricity and water bills, and property tax,” said Girish S, a techie and a house owner.

My tenants had vacated the house last year and just two months back they had returned. But with Covid cases rising again, they have gone back to their home towns.— Kamala S, a resident of Defence Colony

Lakshmipathi B, a civil engineer said, “Work from Home and better internet connectivity in places away from Bengaluru is driving people to rural areas. When you can work from anywhere, why would anyone want to stay in Bengaluru and pay high rents? We are also seeing a sudden cancellation of orders from clients who wanted to build houses for rent. Now, we are being asked to wait for a few years so that the demand picks up.”

There are others who are hiring storage spaces to dump their luggage. “Since we are vacating our rented accommodation for a few months, we are looking for places where we can store our things till we come back. Once the situation normalises, we can come back and set up a new home,” said Prashanthi Reddy, a student. However, Suma Devi, a Bengalurean said, “Since last year we have been seeing that when Covid cases rise, people vacate the city and move out. I am a local, so where can I go? I have to stay here and protect myself from Covid. However, during my walks, I see many ‘To Let’ boards everywhere.”



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Prestige Estates & Century Group to build office park in Bengaluru at Rs 900 crore – ET RealEstate

NEW DELHI: Realty firm Prestige Estates Projects has formed a joint venture with Century group to develop an office park in Bengaluru with an estimated construction cost of around Rs 900 crore. Prestige Estates, one of the leading real estate firm in the country, plans to develop around 2.5 million sq ft of space in this park.

“We have formed a joint venture with Century group for the development of office park in Bengaluru,” Prestige Office Ventures CEO Juggy Marwaha told .

Century group owns around 16 acre of land through two special purpose vehicles (SPVs), he said.

Prestige group has acquired stakes in these two SPVs. It has picked up 45 per stake in Century Megacity and 55 per cent stake in Century Landmark.

The planning work for the development of this office park has started and the construction work will start in the next six months. The project will get completed in the next three years.

Asked about the investment, Marwaha said, “The JV already has the land. The construction cost will be around Rs 900 crore which will be funded by the JV through equity and debt.”

In October last year, Prestige Estates partnered with Brigade group to jointly develop a commercial project, comprising a shopping mall and a hotel, in Chennai at an estimated construction cost of around Rs 500 crore.

“Prestige group is rebuilding and re-investing in building over 42 million sq ft of office parks and future proof buildings all across the country under its 2.0 office ventures business,” Marwaha said.

These parks are being designed by internationally acclaimed architects and consultants, he said.

“It’s human experience that we are focusing on,” Marwaha added.

Last month, Prestige Estates signed definitive agreements with global investment firm Blackstone to sell 12 assets/undertakings comprising completed office, retail and hotel properties in the first phase of Rs 9,160-crore deal.



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Embassy REIT expedites office property construction – ET RealEstate

Embassy REIT has said that large corporate clients have started soliciting request for proposals (RFPs) for 2023-24 and the company has expedited construction to meet future office space demand.

“This is the opportunity to build the product and keep it ready. We are constructing 57 lakh sq ft in Pune, Bengaluru and Noida with the investment of over Rs 2,000 crore and half of it was started in the middle of lockdown. We expedited the construction sensing opportunity in long term,” Vikaash Khdloya, Deputy CEO and COO of Embassy REIT told ET.

The company is also looking for acquisition of large scale brownfield office parks in Noida, Gurgaon, Hyderabad and Chennai. In Q3FY21, Embassy REIT net operating income was Rs 4,780 million and it distributed Rs 4,313 million or Rs 4.55 per unit to unitholders.

Embassy REIT, listed in April 2019 has a portfolio of eight infrastructure-like office parks and four city centre office buildings in Bengaluru, Mumbai, Pune, and the NCR.

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WeWork India raises Rs 200 crore – ET RealEstate

NEW DELHI: WeWork India has raised Rs 200 crore from investors, through a mix of debt and equity, the company said in a media release.

Karan Virwani, CEO, WeWork India, said, “The new capital we have raised will help us in continuing our upwards momentum and truly explore the potential of flexible workspaces in the Indian market.”

The company claims to have leased 10,000 desks i.e. more than 7 lakh sq ft of area in Q1 2021. It’s enterprise portfolio has seen a 10% jump to now constitute 60% enterprise members. “Over the last year, WeWork has also seen a strong demand from enterprises, who are now looking at flexible workspaces as a viable long-term real estate option,” the company said in a media release.

In December, it had launched about 1.65 lakh sq ft flexible workspace in Embassy Manyata NXT building in Bengaluru. The location had capacity of over 3,500 desks.

It also leased out 1.5 lakh sq ft space to Microsoft in Noida and 15,700 sq ft of office space in Bengaluru to Khaitan & Co last year.



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