Owing to the risk perception attached with the segment by banks, the residential realty segment has been increasingly relying on non-banking financial companies and housing finance companies to raise debt financing, reports Abhijit Lele.
If the government tries to bring in real estate under GST now, it will be a typical case of biting more than what one can chew, says Sukumar Mukhopadhyay.
Analysts, however, suggest investors remain selective on realty stocks and buy only where there is revenue visibility and a credible promoter backing.
In the third part of the series on real estate hotspots in India, estatelister.com highlights why Ahmedabad could emerge as a long-term investment bet.
Housing prices in India have fallen by over a tenth in real terms. Yet, prices are unaffordable for most Indians. Middle-income Indians are seen to be able to afford houses if the price-to-income ratio is five. It is 11 in India.
To tap the growing Indian interest, the Department of Tourism and Commerce Marketing, in conjunction with the Dubai Properties Group will organize Dubai real estate road shows in 2007.
India's office market was very active in 2024 with gross leasing of workspace witnessing a 19 per cent increase to a record 885.2 lakh square feet across eight major cities, according to Cushman & Wakefield. The gross leasing or absorption of office space stood at 745.6 lakh square feet in the preceding year, data from real estate consultant Cushman & Wakefield (C&W) showed.
this move by the government is likely to iron out the current challenges for the NBFCs and in turn help the real estate sector.
Among the cities that have fully implemented their projects are Agra, Varanasi, Madurai, Coimbatore, Udaipur, Pune, Surat, and Vadodara
Despite the absence of any notable price growth, transaction volumes are picking up in major Indian cities. The surge in sentiments is also backed by a significant rise in transparency in the industry.
India's stock markets corrected recently but foreign money is likely to chase China rather than India in the short-to-medium term, said Chris Wood, global head of equity strategy at Jefferies, on Thursday. Wood told the Business Standard Manthan Summit in New Delhi he is bullish about Indian equities from a long-term perspective, but for the short term he is cautious given the quantum of foreign investor (FII) outflows and valuation woes.
"Like other sectors which bore the brunt of recession, the impact on real estate has also been felt. Even a cosmo city like Bangalore, which was most happening in terms of real estate, has suffered a 10 per cent drop", M R Jaishankar, chairman & managing director of the group told reporters.
Here's a formula that helps you understand how much money you will need to retire early in India and simple steps to achieve it.
For those looking for more affordable options, purchasing an under-construction property could be a smart move, as these generally cost less than ready-to-move-in properties.
'Even if India is attractive, FPIs currently lack the funds to invest, as money is being redirected to the US.'
'War is never a solution. It's nothing but real estate business I am against any kind of violence.'
Real estate companies appear to be the worst hit by the ongoing global uncertainties, coupled with the new norms for primary market issuances.
'The government has to stop trying to fix things for lenders, projects, homeowners and developers and think instead about how to fix the market for houses,' says Mihir S Sharma.
For promoting a planned and healthy real estate development of colonies and apartments in big cities, union housing and urban poverty alleviation ministry has drafted a bill and invited suggestions from experts.
Investor confidence in value mutual funds remains robust, with the category witnessing an inflow of Rs 1,556 crore in January, indicating a shift in their focus towards fundamentally strong yet undervalued stocks.
At a time when capital allocations to real estate are growing globally, investors are expecting transparency standards in real estate to be at par with other asset classes, says Anuj Puri.
Ask rediffGURU and PF expert Nitin Narkhede your mutual fund and personal finance-related questions.
Cash-strapped real estate firms are resorting to short-term borrowings of funds to complete ongoing projects as the economic slowdown has virtually halted demand for properties, freezing cash flows.
Buoyed by regulatory overhaul and infrastructure boom, engineering conglomerate Larsen & Toubro (L&T) has identified realty business as one of its growth engines for the next 10 years and plans to acquire land parcels while expanding pre-sales, said a senior company executive. L&T Realty has started looking out to acquire land parcels and grab partnership development opportunities across markets to scale up its business. "We are making some strides in that direction, albeit cautiously.
The Union Budget 2013-14 has been largely neutral as far as Real Estate industry as most of its specific demands/wishes ignored especially that of infrastructure status, allowing ECB for all segments against current affordable housing alone.
Four years after delisting its shares from the Delhi Stock Exchange, real estate behemoth DLF is knocking at the capital market again selling shares at - hold your breath - 837 times the valuation at which it exited the stock market. Should you buy?
India's economic growth rate decelerated to 6.2 per cent in the October-December quarter this fiscal, mainly due to poor performance by mining, manufacturing and all other sectors, with the exception of agriculture. However, on a sequential basis, the economic growth rate in the third quarter showed improvement over 5.6 per cent recorded in the second quarter.
LIC has proposed a consolidation of its real estate portfolio and is inviting bids from consultancy organisations.
The affected lawyers, once considered an 'elite group' among their peers across courts in the state during the peak period of the real estate boom are no longer the envy of their fraternity. Noted civil advocate C Ravindran said four years back, a lawyer used to charge clients who wished to register land, about one per cent of the total land value.
During the past 30 days, prices of medium residential apartments rose by Rs 300-500 per square feet across various nodes in the city. The present prices range at Rs 2,500-3,000 per square foot across nodes like Kamothe, Panvel, Kharghar, Khandeshwar and CDB Belapur, said Srikanth Puduval, a real estate agent.
You should invest in real estate, if it is fitting well within your overall investment strategy to reach your financial goals. However it is recommended to consider certain aspects before jumping into it.
If you are a service provider, especially a real estate agent or a tour operator and not registered with the tax authorities, the service tax department has begun compiling data of such entities and will soon crack down on tax evaders.
'Understand your financial goals. Next, categorise them by size. Then evaluate your investment options.'
The real estate business thrives on creating excess spaces beyond the permitted building codes, short-changing the buyer, and even opting for poorer quality of material. This finds an enthusiastic resonance among the officialdom. Flouting rules is part of the business model, says Mahesh Vijapurkar.
The Indian market remains an attractive place to do business for the nation's entrepreneurs, with 75 per cent of them operating domestically.
Traditionally, real estate has been the major investment avenue across the world. The trend is not due for a change as the capital appreciation is good. However there are some points to be thought about.
Credai is the apex body for real estate developers in the country and represents over 9,000 developers through 128 chapters in 20 states
Puneet Wadhwa and Debashish Pachal locate real estate stocks to watch out for.
The real estate sector has underperformed the Sensex in the past 2 years.
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