The real estate sector is back in news. Property prices have been on a sharp rise since the last three quarters as there has been an upswing in the economic growth of the country.
India's booming real estate sector might feel the pinch after RBI's decision to hike short-term interest rates, as a possible shift in bank lending away from the sector as well as an imminent hike in home loan rates could spoil the realty party.
The UAE property market will see a general decline in performance during 2010 and will experience greater differentiation as some locations will perform better than others, a new report has revealed.
Raghavendra Kamath reports on what ails India's real estate sector.
Affordable housing, the most neglected segment of the real estate sector, is now attracting large-scale investments from developers as well as private equity funds.
Ace investor Rakesh Jhunjhunwala on Thursday said real estate developers are afflicted with very low return on capital as compared to bluechip stocks. Jhunjhunwala, who runs RARE Enterprises and is set to be a major shareholder in an upcoming airliner, said only the affordable housing developers can look at listing because of the volumes which they can deliver. It can be noted that very few developers like Macrotech Developers formerly Lodha, and DLF are listed on the bourses. Jhunjhunwala cited the case of DLF, saying the stock price plummeted to Rs 80 from Rs 1,300 per piece to illustrate the risks associated.
Ajay Piramal bets highly on infrastructure, realty
Leading United Arab Emirates-based firms, especially in the real estate sector, have joined the list of global companies, targetting investments in India in hotels, malls, healthcare, housing, IT parks and integrated townships.
Macrotech Developers (Lodha), the country's second-largest listed real estate company, exceeded its 2024-25 (FY25) guidance, aided by a strong pre-sales performance in the January-March quarter (Q4), driven by launches. The company had guided for Rs 17,500 crore in pre-sales for FY25 and surpassed that with bookings of Rs 17,630 crore.
Real estate developers are banking high on ultra-luxury projects.
Urban development minister Jaipal Reddy said on Friday that he would also ask the finance minister to review his decision to bring the real estate sector under the service tax net. Real estate players were unanimous that the extra burden would be passed to the consumer if, indeed, the service tax is imposed.
'We need to be very vigilant as we are passing through some fraught times.'
The global funds are gung-ho about the prospects of India's real estate sector and have committed billions of dollars, but the Indian mutual funds are treading cautiously.
Provisions of long-term capitals gains tax is now applicable after only two years.
With the Budget just a little over a week away, the Indian realty sector has lined up its wish-list which include a tax holiday under Section 80-1B for affordable housing, promoting real estate mutual funds and clarity on introduction of a real estate regulator, among others.
The 26 sectors specified by the RBI include automobiles, power, tourism, cement, chemicals, gems and jewellery, logistic, mining, manufacturing, real estate, and shipping among others.
Industrial metals (ferrous and non-ferrous) suffered great volatility once the Ukraine War began in February 2022. First, there was a sharp price rise due to fears of supply disruption, followed by weak global demand. China's weakness and rolling lockdowns have hit production and demand.
In spite of ample liquidity, banks are treading cautiously as far as lending to the real estate sector is concerned, and are seeking collateral as high as 150 per cent of the loan amount as security deposit from them.
The net financial savings of the household sector has moderated to 5.1% of GDP in FY23 from 7.6 per cent in FY20, as households shifted their savings to physical assets amid low interest rates during the pandemic, according to State Bank of India's (SBI) Research report.
Dubai, Singapore, London are the top overseas markets for Indians
'Even if India is attractive, FPIs currently lack the funds to invest, as money is being redirected to the US.'
Realty developers' body, Credai, on Tuesday said the property prices will only go up from here on increased demand, though the pace of appreciation will be slow.
From real estate to metals, what Sitharaman's Budget has in store.
What could a mall in Ahmedabad, an office complex in Hyderabad and a residential township in Baroda have in common?
The key demand drivers -- such as low home loan rates and income tax sops, particularly for affordable housing -- that supported the recovery in H2 FY2021, remain in place and will spur recovery again, feel experts.
A day after his appointment as the 26th governor of the Reserve Bank of India (RBI), outgoing Revenue Secretary Sanjay Malhotra on Tuesday said one must understand the economic landscape and do what was best for the economy. "Let me first go, join, understand the turf ... Here it is a different role," Malhotra said, speaking to reporters in front of North Block.
"Real estate is facing a slowdown. So we should make an arrangement for giving loans at 6.5 per cent interest for houses in the below Rs 5 lakh (Rs 500,000) category to the poor," Urban Development Minister Jaipal Reddy said. He suggested an extension of housing loan at the rate of 7.5 per cent presently available for flats up to Rs 20 lakh to those priced at Rs 30 lakh in the cities. "The revival of real estate is key for generating employment," he said.
Index funds and exchange-traded funds (ETFs) have added a record number of investment accounts in 2024, buoyed by the sectoral and thematic investing euphoria that has spilled into the passive space.
Rising prices in the real estate sector in Bangalore, the IT capital of the country has turned the attention of several realtors to Chennai, a city which is slowly but surely set to beat Bangalore in the real estate space.
Securities and Exchange Board of India and the Association of Mutual Funds In India are working together towards forming guidelines and regulations for real estate funds.
Ever since the government announced that state-owned banks will provide home loans up to Rs 20 lakhs (Rs 2 million) at not more than 9.25 per cent for the first five years, real estate developers have started working their prices around the Rs 20-lakhz (Rs 2-million) figure. Dozens of real estate developers have announced homes at below Rs 25 lakhs (Rs 2.5 million) in the National Capital Region of Delhi.
Value mutual funds have witnessed robust investor interest, garnering Rs 22,757 crore in inflows in 2024, nearly double the amount seen in 2023, fueled by impressive returns generated by the segment. This surge reflects a shift in investor focus towards fundamentally strong yet undervalued stocks.
Bharti group's Sunil Mittal retained his fourth position, followed by Wipro's Azim Premji at the fifth slot.
S Nagnath, President and CIO of DSP ML Mutual Fund says that he is bullish on the real estate sector. He also explains his logic behind starting a micro-cap fund and why investors can put their money in the same.
Jones Lang LaSalle India says growth was skewed towards suburban and emerging locations as opposed to city sub-markets in 2013.
The downturn has drastically lowered valuations of Indian real estate firms but the promoters face virtually no threat of takeovers as they are sitting on stakes in excess of 70-80 per cent of equity.
