Comments for India Real Estate Link

Comment on Twenty-three New SEZs Cleared by riathareja

riathareja — Thu, 07 Aug 2008 11:25:43 +0000

Ever since the government decided to allow companies to set up SEZs, India Inc has rushed in with big plans for projects across the country. Corporate giants such as Tata Consultancy Services, Reliance Industries (Mukesh Ambani group), Reliance Anil Ambani Group, DLF Ltd., Unitech Group, Parsvnath Developers and Videocon Group are all into developing SEZs.Foreign direct investment continues to play an important role. India has the opportunity to become a manufacturing hub for textiles, automobiles, steel, metals, petroleum products etc. for the world market. In 2005, FDI was estimated at $ 4 billion, without counting reinvested earnings and other capital. The ministry of commerce estimates an investment of Rs 1 trillion in these SEZs in the next few years and employment generation of 5, 00,000.For more view- realtydigest.blogspot.com

Comment on Essar Arm Wins Nagpur Hotel Project by riathareja

riathareja — Thu, 07 Aug 2008 11:24:43 +0000

With real estate stocks being hit adversely by the market slowdown, the phenomenon is expected to have a spiralling effect on hospitality development in India. Most real estate majors with a series of hospitality developments in their portfolio are affected by this trend. This may lead to a stall or delay in the completion of projects as well as a revision of the project expenditure. Over the past few months, real estate stocks have seen a major downfall, with an average of 60 to 65 per cent drop in the share prices during 2007-‘08. “There is not only a slowdown in the market, but also an alteration in project costs with the configuration of interest rates,” says Prem Subramaniam, Head, Infrastructure Development Finance Company (IDFC). While financial market analysts expect the decline in real estate stocks to continue in coming months, they also speculate that hotel projects will be stalled due to lack of liquidity and equity funding in the markets. On the contrary, hospitality consultants feel that projects that are already secured with funds will not be affected.For more view- realtydigest.blogspot.com

Comment on JPMorgan Plans To Invest One Billion Dollar by riathareja

riathareja — Thu, 07 Aug 2008 11:23:27 +0000

The world is now looking at India as the nation of the future. More significantly, India is well on its way to emerging as a first-world economy in the fields of information technology (IT), biotechnology, pharmaceuticals and the automotive sector, pushing the thrust now on to the retail sector to facilitate the creation of a new surging modern India. The real estate boom in India will not only propel the economy to sustainable heights, but will also generate employment for several millions. It is strongly expected that the growing Indian economy and growing opportunities will ensure that the foundation is laid for India’s tryst with destiny and for it to be fully integrated into the world economy.For more view- realtydigest.blogspot.com

Comment on JP Morgan Will Put More Than $1Billion In Asian Market by riathareja

riathareja — Thu, 07 Aug 2008 11:22:36 +0000

India has “enormous potential in all its property investment categories”. Strong population growth, a large pool of qualified workers, greater integration with the world economy and increasing domestic and foreign investment are fuelling demand for office, retail and residential property. India’s burgeoning middle class will drive up nominal retail sales through 2010 by 10% p.a. At the same time, organised retail is becoming more important. At present organised retail accounts for a mere 3% of the total; by 2010 this share will already have reached 10%.India is the prime destination for IT services outsourcing. In the coming five years, at least 55 million m² of extra office space must be completed in the premium office segment alone. Property investments in India are not risk-free. Market transparency is far behind European or US standards. It is therefore vital for foreign investors to have a professional local partner. The lack of liquidity and upward pressure of pricing remain the main concern within the market.For more view- realtydigest.blogspot.com

Comment on Delhi Slums Propose Huge Business To Realtors by riathareja

riathareja — Thu, 07 Aug 2008 11:21:40 +0000

The dream of having one’s own roof over one’s head is a universal one. India is no different. Almost all of us – including me – have a dream of owning our own houses. But in the present real estate boom coupled with inflation, how many among us are actually making our dream come true? In my last blog, there were a few comments on how the rich are getting richer and the common man is left out of this phenomenal real estate growth of the country.On a recently conducted online survey carried out by a property site, it was revealed that more than half of those surveyed are looking for a 2-bedroom home within 5-10 lakhs. It will be logical to say this largely reflects the dreams and aspirations of the common man – you, me and other people like us including the service class, businessmen, lawyers, professors, house wives and young professionals.However, going by the present trend, the Rs 5-10 lakh bracket of affordable houses are confined to the extreme suburbs or peripheries of large and small cities. Majority of the sample in the survey are from metros, where a 2 bedroom house is at least three to five times more than the affordable range! Tier II and Tier III cities too are fast catching up – making it even more difficult for the common man.It was on news that the Ministry of Housing and Urban Poverty Alleviation has commissioned the Reserve Bank of India team to find out more about affordable housing. I sincerely hope that they realize the folly of skewed growth and make the necessary correction.For more view- realtydigest.blogspot.com

Comment on Ahmedabad Attracting NRI by riathareja

riathareja — Tue, 05 Aug 2008 09:53:18 +0000

Country’s real estate sector might be witnessing ebbs but the downturn is only making things attractive for foreign investors. The slowdown, in fact, has set in more realistic valuations and growth-oriented investment opportunities for biggies to close in on lucrative deals. The US slowdown and the fact that China is tightening its FDI policy is also aiding a remarkable shift in investment. Experts reckon that cities like Mumbai, Bangalore and the NCR region are hot investment destinations owing to their strategic importance. But Industry experts do feel that most investors have been cashing in on the domestic market over the last six months. Shobhit Agarwal, MD, Capital Markets of global real estate consultancy Jones Lang LaSalle Meghraj (JLLM) feels that most foreign finance institutions and funds sponsored by Wall Street banks are eyeing the Indian market at this time. Besides the slowdown, the US recession has made money move out into more suitable markets like India, while property valuations are amenable for investment at reasonable entry costs. In fact, government figures on the sectors attracting the highest FDI equity inflows further validate this claim. Till now, most of these investors were standing in the fence. Naturally so, as the earlier valuations were very high in terms of viability of projects…however, now they are much more feasible. There are some who view the slump in real estate as a necessary correction. Kanwar Deep Singh, Chairman, Alchemist Group sums up the trend: “All private equity firms that have invested in India in the last five years have made money at the rate of 30% per annum.For more view- realtydigest.blogspot.com

Comment on Maharashtra Real Estates by riathareja

riathareja — Mon, 04 Aug 2008 10:09:58 +0000

After the “20:20″ kind of price escalations in the real estate market in the first home sales or second sales, it seems that owners of apartments want to do the same with leasing as they are trying to increase rental values now; each new listing in a new building is coming at a different price. While there is no set indicator or a barometer for rental values, it seems that the Mumbai real estate market is set for another battle, and this time around it is on the field, with the licensor and licensee. Many companies who have operations in the financial capital of India give their employees a set amount, popularly known as HRA (Housing Rent Allowance ). Budgets are set keeping several factors in mind and companies do revise this annually. The maximum increase each year is not beyond 5 to 10%.However, with the real estate market jumping up in capital values, owners are now expecting a much higher return whenever they jump a tenant. This is creating a big problem with MNCs as they have to raise the HRA to suit market conditions. The large increase in rentals is also creating a dilemma for Indian executives as the rental rates are squeezing them big-time and they are often inclined to buy instead of lease for a long term. This will have a negative impact in corporate sector housing, which is in the range of rental values of more than Rs.50,000 per month.For more view- realtydigest.blogspot.com

Comment on Wadhawan Holdings Private Ltd To Invest In Australia by riathareja

riathareja — Mon, 04 Aug 2008 08:57:49 +0000

World’s two fastest growing economies China and India will continue to witness boom in the real estate segments in smaller cities as both countries are expected to record strong growth in residential demand in the coming years, says a report. Further, investments volume in the two neighboring nations is projected to go up in the next few years. According to a report prepared by the research group of Germany’s Deutsche Bank, the long-term growth prospects for both countries “remain very good.” An important growth driver for the real estate market would be the increasing urban population in both countries. According to the report, another growth driver for both countries would be the rising population of working age. The working age population in India is projected to be on the upward curve in the coming years and would be above 65 per cent by 2050. Globalisation has helped the emerging economic giants to post double digit growth in recent years. Both countries have immensely benefited from increased trade and capital imports.For more view- realtydigest.blogspot.com

Comment on Omaxe Sees Financing Costs Up 300 Basis Points by riathareja

riathareja — Thu, 31 Jul 2008 06:21:54 +0000

Under pressure from rising input costs and stricter norms to deliver flats to buyers as per deadline, India’s real estate developers are waking up to global realities. They are now adopting unique technologies to develop quality projects within tight deadlines. With inflation pushing up project costs and consumer forums penalizing builders for delayed delivery of flats, many developers are now hiring the services of foreign project management consultancy companies and techno construction firms for faster implementation of projects, which come with cost advantages. Speeding up construction for a demand driven market like India is the need of the hour and technology based companies have a bright future.For more view- realtydigest.blogspot.com

Comment on A Township coming up In Siliguri by riathareja

riathareja — Mon, 28 Jul 2008 11:07:27 +0000

The Mayawati Government is planning to distribute one lakh houses to the urban poor. The apartments will be given either free or for a nominal price-this year. The houses will be built under the Kanshi Ram Shastri Garib Awaz Yojna, which Ms. Mayawati had announced last month on the anniversary of the formation of the first BSP Government in the state in 1995. The houses will be compact with two-rooms, a kitchen and a bathroom. “The Government will construct one-lakh houses for poor people every year. Each house, costing Rs 1.75 lakh, will be built in an area of 20 square metre,” informed an official from the Urban Development Department. The priority will be given to Scheduled Castes and Scheduled Tribes with a special provision for the poor belonging to upper castes, shelter-less widows and the handicapped.For more view- realtydigest.blogspot.com