As a bustling city of trade and commercial capital of Kerala, Kochi, known as “The Queen of Arabian Sea”, has much to offer in terms of real estate and investors are enjoying the rapidly spiraling prices.

The current real estate boom started during the last quarter of 2004 and the announcement of each new project, particularly developments in the IT sector, has a direct impact on the real estate market. Multiple factors continue to promote Kochi as one of the leading real estate destination in India. However, one of the prime areas under fast development is Kakkanad, commonly referred to Kochi’s IT hub.

The reasons behind Kakkanad’s industrial and real estate boom

Kakkanad is attracting a great deal of interest from both Indian and international corporations wanting to open offices there. The reasons for Kakkanad becoming a real estate hotspot within Kochi include:

• The Infopark, an IT park with IT/ITES companies started in 2003-2004 and promoted by Govt. of Kerala, is the foremost reason for the sudden boost Kakkanad has enjoyed. Infopark has a total area of 98 acres and close to one million square feet of floor space, expected to expand to 5.14 million square feet by the year 2012.

IBS Software services, Tata Consultancy Services, Wipro Infotech, Affiliated Computer Services and US Technology are some of the major corporations with a presence in Infopark. As more and more companies open up offices in Infopark, it is expected to create between 30,000 and 40,000 new job opportunities in the next three years.

• Dubai Internet City are planning to open a Smart City in Kakkanad - a proposed area of 246 acres for IT/ITES companies. By 2012, the project is expected to have a space of 6.20 million square feet. The proposed Smart City project will create around 90,000 job opportunities in the next decade.

• KINFRA Export Promotion Industrial Park is a 90-acre park for export-oriented units in different sectors.

• Foreign companies can enjoy special benefits through the Cochin Special Economic Zone (CSEZ).

• Kakkanad is also home to Collectorate, several schools & colleges and hospitals.

Kakkanad lies in the suburbs of Kochi. From a sleepy hilly village until around 10 years ago to one of the hottest property areas in Kochi, Kakkanad has been transformed beyond anyone’s imagination.

The rampant expansion of the Kochi metro area has now limited further possibilities for development in the city and this is another reason, why commercial enterprises and property developers are focusing on suburbs like Kakkanad.

Property developers are also well aware that since the major IT-based business expansions are located in this area, residential property in Kakkanad is even more attractive and the demand is higher than in other areas.

Kakkanad’s pollution-free environment, compared to other parts of Kochi and good drinking water are the other reasons cited for the boom in residential property development there.

Residential Property in Kakkanad

In 2007, the property appreciation rate in Kakkanad was a stunning 60%! Easy access to Kakkanad from both Kochi city as well as the International Airport makes it a very sought-after location. Most leading developers have at least one project in or around Kakkanad and some have several. For instance, Mather Projects & Constructions has four projects in Kakkanad, including apartment and villa projects. They cater to the higher-end property market and a total of 18-20 lakhs (180,000 - 200,000) square feet are under various stages of construction at Kakkanad. Apartments cost Indian Rupees (Rs.) 35-45 lakhs ($89,700), while villas costs Rs.1-1.5 crores ($26400-$39500).

Residential property is not targeted at the IT crowd alone. “While apartments find customers in IT crowd, villas are usually targeted at higher-end segment including doctors, businessmen and Non-Resident Indians (NRI),” says Raffi Mather, Director of Mather Projects & Constructions.

On the other hand, IT personnel moving to Kochi for a short assignment or for the long term prefer studio apartments and one-bedroom apartments to large ones with two and three bedrooms. This is for a variety of reasons, including ease of maintenance and affordability. The concept of studio apartments is still in its infancy, but with demand set to increase, you can expect to see more studio apartment projects in Kakkanad in the near future.

The average standard rate per square foot for apartments in Kakkanad is between Rs.2,000 and Rs.3,000 ($52 - $79). However, some builders offer apartments for cheaper at the start of the project. For instance, Desai Homes recently had a record sales when they introduced their new apartment for around Rs.1,400 ($36) per square feet.

Other major builders with projects in and around Kakkanad include Abad Builders, Skyline Foundation and Structures Pvt. Ltd, Skyline Builders, Jain Housing and Constructions, Heera Constructions, Purvankara Projects Ltd. and SRK Constructions.

As elsewhere in Kochi, the boom in real estate in Kakkanad is also demand based and a prominent builder in Kochi estimates this growth will continue steadily for the next 15 years. With current projects like Infopark and future ones like Smart City still to come, the area is expected to offer some very solid and high ROI investment opportunities.

Although the U.S. National Bureau of Economic Research is waiting for definitive evidence that a recession has started in the United States, many economists are saying that it’s already here. Because the Canadian economy is so closely tied to that of its American neighbors, a U.S. recession is an unwelcome event not just in the U.S., but in Canada as well.

In the last few years, the Canadian economy has been booming, but things are starting to slow down. About 75% to 80% of Canada’s exports head to the United States, so the U.S. downturn is already having an impact. However, most economists agree that regardless of whether the U.S. experiences a downturn or an outright recession, Canada’s economy will only slow, not stop altogether. Experts still expect a 2.2% increase in GDP in 2008.

Canadian investors see real estate as a lower-risk option

Despite the lack of an official declaration of recession, savvy Canadians are already gearing up to tighten their belts. After enjoying several years of higher-than-typical economic growth, especially in the real estate market, many Canadians are in a strong position to save some of their assets for a rainy day.

In the stock market, Canadians are starting to shift around their holdings in order to mitigate some of the looming risk. Many investors are steering away from the more volatile stocks in favor of more resilient investments that have a better chance of withstanding a recession. Real estate is once again proving to be a solid investment that grows the hard-earned dollars of homeowners.

Being financially prepared for a U.S. recession should give Canadians the breathing room they need to ride out the toughest times. The government has also lowered interest rates recently, in an effort to help Canadians buy new properties, as well as to afford the payments on their existing mortgages or other loans.

Canada expected to be largely unscathed by a U.S. recession

Many economists are predicting that, regardless of an impending recession in the United States, Canada will escape the worst of it with very few battle wounds. Yes, the economy will be affected, but not enough to start a full-fledged Canadian recession. It’s estimated that the effects in Canada will be both comparatively small and most likely temporary.

The growth that Canada has experienced in recent years has been truly remarkable. The prices of houses have skyrocketed and more people are living in Canada today than ever before. However, although this growth has been astounding, it has also been something difficult for many Canadian cities to manage. The demand for houses escalated so dramatically that properties became overpriced and completely beyond the means of many looking for a place of their own. Rental vacancy rates also dropped to practically nil.

Now, as a possible U.S. recession approaches, the Canadian market is beginning to correct itself. Prices of homes and many other things are once again becoming affordable. Canadian cities are getting a moment to catch their breath. Residents and investors alike are turning to real estate for a safer, more profitable investment. Yes, difficult times may be ahead, but with a bit of planning and budget tightening, it looks like Canadians will have the ability to weather the storm.

According to CNBC.com, the British Bankers’ Association reported that UK mortgage approvals picked up in January from near record low numbers.

More specifically, mortgage approvals in the UK rose from 42,343 in December 2007 to 44, 288 in January of this year. The net mortgage lending also rose from 4.9 billion Pounds in December of 2007 to 5.2 billion Pounds in January.

In the article, the Bank of England policymaker, Kate Barker, further made the encouraging statement that a recession in the UK remains an unlikely prospect.

On the other hand, Alan Monks, an economist at JP Morgan commented, “With credit conditions likely to continue tightening, and the growing expectation that house prices will fall this year, we would still expect to see some further declines in house purchase activity looking forward.” However, he added, “But the rise in the BBA (British Bankers’ Association mortgage approvals) provides some tentative signs that we may be close to the bottom of the current slowing in house purchase activity.”

Mortgage approval rates are widely seen as a forward-looking indicator, and it was reported that the Pound rose in value when news of the approval rate increase was announced, reflecting an increase in confidence in the economy.

The Bank of England has reduced borrowing costs to 5.25% so far in 2008 and economists predict that the interest rates will be reduced further to 4.75% by the end of the year.

Kardan N.V., a Dutch-Israeli real estate and finance investment company expands into China and India to profit from their property market, according to a Bloomberg report.

The company is planning to invest up to $1.2 billion (800 million Euros) in real estate in China and India.

“We see enormous demands in these markets. Go to China, go to India, and see what their needs are,” says Alain Ickovics, chairman of the management board.

China and India emerging as attractive real estate markets

This investment is an indication of where the big profits in real estate markets are going to be made. 2007 was a good year for real estate investments in both China and India. And this growth looks to continue in the future.

The World Bank has predicted that in 2008, China will grow at 9.6% while India’s growth will be around 8.4%. Even though these numbers were revised downwards from earlier predictions, the figures are still very impressive indeed.

The rapid expansion in these two economies has sparked a demand for new homes, offices, and shops in both China and India. And when you compare the return on investment from more saturated markets in Europe and US, you see why ‘CHINDIA,’ (as these two countries are collectively denominated), has become the prime target of many of the big investors, including Kardan N.V.

Developing retail and residential projects in Tier II cities in China

Kardan is targeting real estate projects in Tier-II Chinese cities with a population of three to fifteen million. Ickovics said in the Bloomberg report that around 350 to 400 million Chinese are expected to move from rural areas to cities in the next decade in search of jobs. This will create an enormous demand for housing, with experts predicting that housing prices will continue to soar in China’s major cities.

Kardan N.V. targets Mumbai, Delhi, and Pune in India

Within India, Kardan is planning to develop projects in the cities of Mumbai, New Delhi, and Pune. For investors, New Delhi and Mumbai have already established themselves as lucrative real estate markets. And Pune is quickly emerging as the next big thing in the Indian real estate market.

This is something reiterated by Ickovics, “Mumbai is the largest Indian financial center, Delhi is the capital and Pune offers strong potential for growth because of its location- not far from Mumbai - and its large, educated labor pool.”

The company is looking at long-term profits in real estate

Kardan N.V. has set aside 200 million Euros for equity investments in Asia, and the total investment, including financing, could be up to 4 times this figure. Currently, the company has six real-estate development projects in China and one in India.

Although Kardan is looking at China and India at the moment, there is also a possibility it could expand into other Asian countries at a later stage.

“We are brick builders,” Ickovics said. “We are creating value step by step. We don’t expect to make a billion tomorrow. For us, five or 10 years down the road is fine.”

They seem to be in it for the long haul - something that is sure to inspire the confidence of other investors and attract even more money to the area.

If you have been following the boom in the Indian Real Estate sector then you know that this tremendous growth started off at first in the large Indian urban centers and it has now begun to spread to second tier cities.

Mumbai, the financial epicenter and the commercial capital of the country has witnessed a rise in prices of both commercial and residential property of nearly 300% since 2003. Not only have prices of properties gone up, rents in recent times have also sky-rocketed, so much so that young professionals who would have traditionally rented a property for a few years until they could climb on the property ladder are now adopting a new mantra - buy a property rather than rent one.

These couples who often have double incomes now prefer to pay towards a mortgage and acquire a flat in Mumbai’s rapidly growing suburbs like Malad, Borivali and Mira Road, rather than shell out astronomical rent in other areas of the city which are closer to the business districts. Even though the interest rates on housing loans have steadily risen from 6.5% to 11% over the past few years, these young couples still feel it is more prudent to pay a mortgage of a few thousand rupees a month and ultimately own an asset that will appreciate over time, rather than pay the high rents demanded by landlords in many areas of Mumbai.

Why are rents in Mumbai raising so rapidly?

Mumbai is the financial and commercial capital of India and many IT companies, Multi National Companies and International Banks have their headquarters in this pulsating, frantic city. As a result of this there exists a great demand for quality apartments in areas like South Mumbai and Central Mumbai, which are located in close proximity to main business center of Mumbai - Nariman Point. This demand for quality abodes outstrips the present supply and has made rents soar to more than Rs.250,000 ($6,250) per month for a two bed room apartment in a quality building in South Mumbai.

Top-end professionals from IT companies, multinational corporations and banks who work in Nariman Point like to live close to the business district rather than commute from elsewhere. Though the northern suburbs of Mumbai do have much more to offer in terms of quality of life, poor connectivity with South Mumbai and the crumbling infrastructure make the commute from North to South Mumbai an absolute nightmare. If the infrastructure were well developed, then these executives would have perhaps considered commuting from North Mumbai to their South Mumbai offices. As things stand, they compete actively for the few quality residences that are available for rent in South Mumbai and this drives up the rental prices.

Apart from these issues, living in South Mumbai is considered posh and this area of the city holds a status quite similar to New York’s Upper East Side or London’s Holland Park. This adds to the appeal for high-ranking executives and those who can afford the high rents.

A similar phenomenon has also been witnessed in the areas of Bandra, Juhu and Andheri, which are essentially suburbs of Mumbai because these areas happen to be close to the relatively new secondary business district of the Bandra Kurla Complex which is developing rapidly. This has caused rentals to go up in these areas as well. For instance rents for a two bedroom flat in Bandra have increased from Rs.60,000 ($1,500) to over Rs.100,000 ($2,500) a month, while in Andheri a two bedroom now fetches a rent of Rs.35,000 ($875) a month and in Juhu, a two bedroom rents for about Rs.40,000 ($1,000). These rates represent a 100% increase since 2005. Besides being close to the business district of Bandra Kurla Complex, these three areas are also close to the international and domestic airports, which makes them attractive to many of the corporate executives who travel frequently.

Another factor that has been instrumental in driving up the rents in Mumbai stems from the archaic tenancy laws that completely favor the tenant. Unless the Indian government undertakes major law reforms in this regard, several prime properties in South Mumbai will continue to remain in the possession of tenants who continue to pay rents at 1940 rates. Due to the ridiculous rental amounts the landlords of these buildings are earning, they do not bother to maintain these buildings as they don’t get adequate revenue from their properties.

So unless infrastructure in Mumbai is improved in the near future and the tenancy laws are radically reformed, rents in the coveted areas of Mumbai can be expected to continue to rise as long as demand for housing continues to outstrip supply.

There’s great news if you want to listen to some hot property buying tips from the experts on your PC or even on the move. Phil Spencer, who co-presents Channel 4 and More4’s popular property TV programs, Location, Location, Location and Relocation, Relocation, along with presenter Kirstie Allsopp, has branched out into property podcasts that you can listen to online or even download to your iPod or other mp3 player.

Phil Spencer On The House is produced in conjunction with the Royal Institution of Chartered Surveyors (RICS). A well known and respected property professional, Phil talks to experts and shares his views, thoughts and experiences on a range of key issues relating to property buying. Aimed at everyone from first-time buyers to hardy property investors, the podcasts so far cover topics such as dealing with estate agents, renting, buying a property for the first time and buying a home.

The Phil Spencer On The House property podcasts can be downloaded and listened to free of charge and you can even subscribe to automatically receive all the new editions as soon as they are published.

According to the property podcasts FAQ, the way to download a podcast depends on your computer: “Windows: Right click on link and choose ’save target as’. Mac: Ctrl + click on link and choose ‘download linked file’.” What’s not too clear, though, is that the link you must click on is either the ‘Audio’ or the ‘Audio and Pics’ link. Also, to download a podcast from the archive you must have already clicked on the ‘listen’ link, so it loads on the main part of the page.

That aside, these podcasts are well worth a listen if you’re planning to buy or invest in property and want some hot insider tips. So check them out at www.philspenceronthehouse.com!

The chances are that every person considering investing in property has had a common dream location for that property in their heads at one point or another - a beautiful, sparkling white new-build that looks out over the clear blue Mediterranean Sea, with sand leading right up to the patio and big spacious rooms that feel warm and homely. It does not matter whether or not you plan to live in that property or purchase it solely for investment purposes, the dream is always the same (with a few minor changes of course).

There is now a problem with that dream though - a major one in fact.

The Coastal Zone Management Agreement

In a major piece of real estate investment news, there are to be no more new build properties within 100 metres of the coastline in the Mediterranean area. The Coastal Zone Management agreement (ICMZ) was introduced as a part of the Barcelona Convention to help remedy problems that the coastline has been experiencing in recent years as a result of extensive property development in the area. Experts had become alarmed at the rate at which the coast was actually eroding and the sheer volume of pollution that had been introduced to the area as well.

Here are some facts about the ICMZ for you:

• 14 countries located around the Mediterranean voted to ratify the ICMZ including Spain, Greece, Italy, Malta and Tunisia
• The agreement prevents both residential and commercial properties from being built within 100 metres of the coastline with no exceptions, although existing buildings are to remain in place
• The entire 29,000 mile shore of the Mediterranean is affected, meaning that Europe and North Africa will be obliged to follow the directives set out by the ICMZ
• The Barcelona Convention meets twice a year and it was not the first time that this kind of agreement has been discussed - it has been in the making since 1976 - but this is the first time that all participants have agreed on it

What the ICMZ means for investors and property owners

The ICMZ is undoubtedly a victory for the environment and a huge step forward towards sustainable property development. One question remains though. By taking steps to prevent damage to the environment of the Mediterranean, will the local economy decline as a result of this ruling and how will it affect the investor?

The Spanish and Italian real estate industries have been in decline in recent months anyway as a result of the fact that developers built too many properties. To this day, a number of them are actually sitting empty because the demand was slightly less than originally predicted. The amount of properties sitting empty undoubtedly damaged the appeal of property in certain areas anyway and forced prices down, but the most demanded were always the coastal properties and building more is no longer an option.

The ICMZ itself will do nothing to boost real estate and the local economies, despite the fact that it may enhance the environment and prevent further pollution. There will, however, be one major consequence in terms of investment potential. The price of purchasing a property on the coast will inevitably go through the roof. As these properties are in demand anyway, their worth will go up because they effectively become more exclusive than ever before!

Of course, property in the Mediterranean does remain popular on the whole, but it is wise to do your research in advance so you can gauge where the best investment is to be made. If you can get your prediction right, then now may well be the time to buy!

When buying a new home or investing in property, we all take certain factors into account.

Cost and location usually top the list, but many buyers are increasingly considering the energy efficiency of the property when conducting their search, leading to a surge in interest for the eco-homes market.

But how many of us actually think about what happens to our money after the property transactions have gone through? And does it really matter? Or do we not give it much thought because we think we don’t have a choice?

Ecos Homes, based in Somerset, UK, is at the forefront of a new way of thinking when it comes to investing in environmentally-friendly property.

Declaring itself to be ‘out to create a new breed of developer’ the firm is not really a ‘firm’ at all but a subsidiary company formed by the Ecos Trust, which ploughs profits back into its mission as a ‘social enterprise’.

Their aim as a developer is to remain competitive commercially, while maintaining strong social and environmental principles.

Up to £500 in bill savings

It’s not just pie in the sky either; Ecos Homes has already built the acclaimed Great Bow Yard, a development of 12 eco-homes and a restored listed warehouse in Langport.

Reportedly saving homeowners up to £500 a year in utility bills, three-quarters of the development’s houses were snapped up off-plan, a figure the firm says shows there is a commercial future in environmentally-friendly housing.

This development is contemporary and pleasing to the eye too - bricks from a demolished house in Bridgwater were used with lime mortar, meaning they can be used again at the end of the building’s life.

Toilets Flushed With Rain Water

The development’s properties include four-bed and three-bed houses, two-bed flats and one-bed flats. Environmentally sound features implemented in the properties include toilets flushed with collected rain water, solar panels to heat water, ‘sunspaces’ to pre-heat ventilation, non-toxic internal finishings and even a purpose-built badger sett nearby as part of an attempt to encourage wildlife.

Also onsite are serviced offices, workshops and a bistro with gallery space. Surrounding the eco-houses and warehouse, a community garden has been landscaped.

As reported by property blog Buildingtalk, Ecos Homes also sees Great Bow Yard as a blueprint for commercially successful yet environmentally sympathetic developments, publishing the pamphlet Great Bow Yard: Anatomy of an Eco Build, in the hope it will help others wanting to build sustainable homes.

Invest in your future

There are new opportunities for off-plan investors, but they are sure to be snapped up just as fast. Over the next three years Ecos Homes plans to build a mix of up to 80 sustainable and affordable houses on at least four new sites in the South West.

They estimate the total value of this will stretch to around £15m in total with locations at Carhampton, Merriott, Stawell and Bridport.

The firm says: “Eco-homeowners are investing in their future. Long-term benefits are recognised, and include reduced running costs, improved resale value, a healthier living environment, and the satisfaction that comes with leaving a smaller footprint on the earth.

“What is more, it is widely acknowledged that in the future, government taxes and regulations will make many of the eco-features from our houses mandatory in all new houses.”

Chrissie Amey, owner of a three-bed house at Great Bow Yard, said: “I just fell in love with what they were trying to do here - change the way things are built - and I love the design. This is very easy to live in and it’s an exciting home to live in.”

Another sneak preview of the Ecos Homes ethos and handiwork is menioned by Julia Hailes a consultant on social, environmental and ethical issues Julia writes: “The Ecos Trust offices had real character, with cubby holes in the walls and uneven surfaces on the walls, reflecting the previous life of the building. And its eco-credentials are pretty good too, going a long way beyond the attractively designed energy-efficient lighting.”

Forget expensive experiments in green living - this could be the way we all live and invest in the not-too distant future.

Further reading: Developing for Green: Investing in Better Buildings for the Future

The rise in yob culture, crime and the cost of living are the driving factors in Brits buying property and moving abroad, according to research published today.

The report by Foreign Currency Direct is based on research undertaken during February 2008 by YouGov, involving a representative sample of 2,000 people. Their views and reasons for moving abroad have been compared with similar research conducted in June 2007 and have produced surprising results.

Nearly four in 10 people (35%) in the UK are currently considering a foreign property purchase in the next 12 months. When these figures are broken down, 50% of them are women - compared to just 21% of men. 33% of these people said they’re keen to move abroad permanently to get away from the crime and yob culture in the UK. When asked the same question last year, only 4% of people mentioned crime and yob culture as a reason for moving.

Coming so soon after MP Jacqui Smith’s comment about the lack of safety on the streets of London and the seemingly increase in crime in the country, the research suggests it could be true that women are feeling unsafe amidst the current crime climate in the UK and this could be the reason why so many more women than men want to move abroad.

More than one in three people said that the high cost of living in Britain is a big factor for them. This figure has increased by over 10% since last year.

But, as has been the case for a while, the gloomy weather in the UK is still an issue for some people and 31% said they plan to move abroad to have better weather. Other reasons cited by respondents include:

• Investment opportunities (29%)
• High UK taxes (25%)
• Not being able to afford a second property in the UK (23%)
• Not being able to afford a first property in the UK (14%). This figure rose to a massive 77% for people aged between 18 and 24.
• The opportunity of better jobs overseas (4%)
• Inspiration from overseas property television programmes (7%).

Commenting on the findings, Peter S Ellis, CEO of Foreign Currency Direct, said, “With the rising cost of living and crime becoming a bigger concern for Brits, it seems that many of us are seeking refuge abroad. Buying property overseas is still an excellent investment and a great opportunity for a better quality of life.”

Northern Rock loan approved

There has been plenty written over the past few weeks and months about the situation at Northern Rock. I - like everybody else - was surprised at how the British Government managed to make a pig’s ear out of what started out as a simple request for temporary funding, which was approved by the Bank of England.

Media interference brings everything tumbling down

Television, radio and the press all jumped on the Northern Rock story and helped to cause what was in all but name, a run on the bank. I remember listening to the BBC’s Radio 5 Live breakfast program when they posed the question - ‘should you or shouldn’t you withdraw your savings?’ The mere suggestion that anyone with savings in Northern Rock should consider withdrawing their money would probably mean - they should. And guess what? They did! A shame really - because it looked like Northern Rock had it all under control.

Isn’t it good to own a bank?

The good old British tax payer is now the proud owner of a bank, since the Northern Rock is now national property. Isn’t this good news for anybody who has a mortgage? David Smith commented in The Sunday Times that the Council of Mortgage Lenders (CML) has done some calculations that predict a shock for borrowers as they move out of the deal period of their current mortgage and are offered much less favorable terms by their current lender for a new deal.

Better mortgage deals for all

The Government can protect borrowers from greedy mortgage lenders by ensuring the Northern Rock continues to offer competitive mortgage deals. Normal market forces will then ensure that other lenders will have to follow suit. Although I am not a fan of nationalization, and on the face of it I don’t understand why the government would want to own a bank, I can see that the situation could prove advantageous in steadying inflation. After all, a mortgage is most people’s largest financial commitment.