September 15, 2009 – 4:52 pm
Housing Development and Infrastructure Ltd stated that it had agreed to offer about three hundred fifty crore rupees as income to be booked in the remaining quarters of this financial year to the Income Tax Department. This follows an Income tax raid on HDIL office premises and promoters’ residences. HDIL said that the income calculated by Income Tax Department was based on initial entries in its books of accounts mostly relating to current fiscal year, which the company would have irrespectively booked during the current financial year on completion of transaction and taxes paid. HDIL said that there was no hidden income, tax evasion, levy of penalty for previous or current year.
September 12, 2009 – 3:45 pm
The government is preparing guidelines for the participation of PE funds in housing sector under the Rajiv Gandhi Awaas Yojana. The scheme aims to make a slum-free India in five years with construction of over 10 lakh houses.
The government wants to connect with private funds to provide affordable housing to millions of households under the scheme.
As per IDFC Projects Equity managing director Sachin Johri, a large number of PE’s are willing to take stake in such projects to an extent of 40-50%.
September 11, 2009 – 6:17 pm
Mothercare, a UK retailer for kids and expectant mothers, is forming a JV with DLF. While the company would continue its existing franchisee agreement Shoppers Stop, it hopes that the new JV will give it greater control over its Indian operations and ability to expand quickly in one of the fastest growing economies.
Mothercare was committed to its ongoing expansion in the Indian market. The company has twenty-one stores in affiliation with Shoppers Stop. Mothercare had been in discussions with DLF and the Tata Group retailer trent for a possible equity partnership in India.
September 11, 2009 – 4:13 pm
Real estate firm Oberoi Constructions plans to launch its IPO early next year.
The IPO may happen in the first quarter of next financial year.
The Mumbai-based developer has “delivered” four million square feet of property and plans to add another four million square feet in the near future.
The share offering would be utilized to “fund growth” in the company. They already have a very decent land bank. They will use the cash for business and further land acquisition.
September 11, 2009 – 11:22 am
Tata Housing is in initial talks with 2 PE funds, Sequoia Capital and Atlanta Equity, to raise funds for its multiple affordable housing projects, signaling that the PE players were willing to return to the real estate projects that offer good customer demand and less risk.
Sequoia and Atlanta have begun talks with the Mumbai-based realty firm to pick up minority stakes into its existing low-priced housing project in Boisar near Mumbai and three other affordable housing projects expected to be launched.
The two PE players want to pick up stake in Tata’s projects because they are low-risk projects with decent returns, the person close to the development said, adding that PE players could expect a return of 20-30% in these projects.
Sequoia Capital had marked around $1.8 billion out of its total ten billion dollars to India. If a deal with Tata Housing goes through, it could perhaps be its first in the real estate. Ditto for Atlanta Equity, an Atlanta-based $109-million fund founded in 2007.
September 8, 2009 – 1:00 pm
Real estate developers cannot be fined for late delivery of possession of a flat to an allottee if no specific date of its delivery is mentioned in the contract.
The National Consumer Commission further held that the acceptance of the belated delivery of the flat in 1993 without protest renders it impossible for the consumer forum to award compensation to the buyer in this case.
September 5, 2009 – 2:35 pm
If we talk about rental system, it completely depends upon the age of building. The building of old age is not supposed to be as costly as the new building is. As we know that real estate do not comes into the category of depreciable asset, but still, the building with age factor more than twenty loses its rental market value. The fact behind it is the use of old fittings and loss of elegance with time. Most of the people prefer well maintained modern house for rental purpose.
September 5, 2009 – 2:34 pm
UP Government has declared some tax benefits besides simplifying process for approval of building layouts to increase SEZ investments.
During the meeting, it was planned that units being set up in SEZs will get a rebate on entry tax from June 30. These units will get entry tax wavier like export oriented units. Arrangements have been made for fast approval of layout of buildings.
Unit Approval Committee headed by Noida and Greater Noida officials will approve layouts.
Officials were also ensured that VAT deposited by units set up in SEZ was refunded as these units are exempted from VAT w.e.f. january last year.
September 4, 2009 – 1:03 pm
Real estateWe often read that recovery in realty market is visible now. Such news has reached to general people and they have started looking at property of their choice at affordable rates. Competition between builders results into rate cuts and attractive offers for buyers. It can be easily figured out by taking a look on the increment in property registration in major cities. With the improvement in macro-economic conditions and affordability of buyers, developers witnessed a stronger response to new launches across cities over the past quarter.
September 2, 2009 – 4:08 pm
In coming years, India is expected to outperform the global markets with a growth rate in the range of 7 percent to 10 percent. This will benefit the real estate sector, which is closely linked to high growth in the economy.
A decrement in property prices, reduced interest rates and stability in the job market has helped the sector gain momentum once again. Developers now realized that affordability was the key to attract the prospective buyers; they tried out with smaller sized apartment. Projects that were launched in this segment received a good response, which indicated that home-buyers were waiting for a good opportunity.
