Real estate sector cheers reforms in the Budget.
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.
"We are not slowing down on any of our projects. Jaipur is rocking, Chennai is doing well, city-based projects such as Faridabad are also doing well," Mahindra and Mahindra Ltd Executive Arun Nanda told reporters in New Delhi on the sidelines of India Economic Summit. Fundamentals of real estate have not changed. Nanda said, there were no funding issues for its projects and the company's affordable housing projects are not going to disappear.
The total demand has remained subdued mainly due to high interest rates and property prices.
After cautioning over an asset bubble in the real estate sector, the Reserve Bank of India has cracked the whip. The apex bank has sought clarification from six real estate companies on their proposal to raise external commercial borrowings.
The JD-U flayed the ruling United Progressive Alliance government for its policy on special economic zones calling it "the biggest real estate scam in India" and sought immediate suspension of implementation of the "anti-farmer act".
The sale of fresh residential units (in square foot) by listed real estate companies has seen a downward trend in the first half of 2013-14.
The clampdown will be part of a package from the central bank to make end-use norms for external commercial borrowing (ECB) funds more stringent for various sectors.
With real estate development in India becoming increasingly organised, foreign investors are vying for a piece of the pie, expecting 20 to 25 per cent project return and and between 9 per cent to 11 per cent annual yield on investment.
Govt should take steps to monetise real estate investment schemes.
While Lehman will invest Rs 500 crore and hold 75 per cent in the JV, Peninsula Land will subscribe to the remaining equity at an investment of Rs 200 crore, according to sources.
Given its risky profile, the realty sector could collapse if the bull run fails to take off
The government proposes to treat the investments by foreign institutional investors in pre initial public offers (IPOs) of real estate companies at par with foreign direct investment.
Greaves Cotton, for instance, has converted half its holding into commercial real estate (a multiplex) while Elpro plans to follow suit by developing half its 37-acre land at Chinchwad.
Finance Minister Arun Jaitley's Budget 2014 allows retail investors in India to have an affordable, liquid and convenient way to invest in real estate.
The ongoing West Asia conflict is expected to severely impact the supply of affordable housing in India, as rising input costs further erode already thin developer margins. Fluctuations in crude oil and gas prices, coupled with higher freight costs, are driving up prices of essential construction materials like cement and steel, making new projects increasingly unviable for developers.
Among the international companies that are increasing their investments is the Japanese paint major, Nippon, which is putting in about Rs 80 crore (Rs 800 million) for manufacturing facilities in Gurgaon and a 25-acre unit in Chennai.
With experts concurring that India and China are lucrative markets for real estate, a comparison between the two countries is inevitable, writes Ravi Teja Sharma.
Real estate has much further to fall and you should govern yourself accordingly
The new real estate hubs could typically take between 5 and 10 years to develop depending on the state of economy of the city and the state.
After years of living with his family in a poky 110 sq. ft. 'house', textile worker Sambhaji Surve dreams of moving into a home four times the size once the Maharashtra government starts its ambitious redevelopment of the 39-acre Kamathipura shanty town in south-central Mumbai. Sharing his dream are about 8,000 other families hoping for a better life when the redevelopment project, part of the government's effort to redevelop old settlements and make life more livable for some residents, gets underway. The Shiv Sena-Nationalist Congress Party aims to redevelop BDD Chawl and Dharavi but for Surve all the matters is Kamathipura where he arrived in the 1970s from Nasik to work in a textile mill. Kamathipura was originally built 150 years ago following construction of a causeway to connect the seven islands of Mumbai. From the British Raj to post-independence, it became infamous for slums and brothels.
The prices started escalating three years back and went through the roof.
We must not allow another cycle of crazy price rises to set in. Or land banking to become the next new hot industry.
Leasing activities of office and retail spaces would not be affected much.
A career in real estate was till now limited to brokers, masons and labourers. Not anymore as the industry opens up limitless scope for investment bankers, marketing managers, visual merchandisers and supply chain distributors.
After a long time, real estate companies could hit the fund-raising trail. The reason is improvement in investor sentiment.
Real estate regulation Bill is consumer-friendly and promotes transparency but does not address the issue of inefficiencies in the approval process and other delays by government bodies.
Outsourcing of information technology jobs, which is likely to continue to countries like India, has had an unexpected resul
GE Commercial Finance will invest $63 million in the Indian IT Parks Fund, sponsored by Ascendas Pte Ltd.
A man in Hanumakonda district is under investigation for allegedly murdering his pregnant wife and two young daughters by pushing them into a swimming pool. Police are investigating the motives behind the alleged crime.
Real estate major CB Richard Ellis has been named the 'Top commercial real estate brand' by the internationally recognised consulting firm Lipsey company.
'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.
Non-resident Indians with wealth stuck in real estate in India have reason to rejoice.
Your children may always love you but should you expect them to to finance your retirement in today's economy?
If you are already invested in real estate stocks, you've made your money, exit
The company is close to buying 1-million square foot office space for Rs 700 crore in Bengaluru.
You would be a fool to expect 200 per cent returns every time you invest in real estate. More so, when you don't count the risks engaged in such an adventure
"As I begin the next chapter of my life, I am looking for ways to pursue a career in business, specifically in real estate," Agassi, 36, said in a statement.
