This extract from The $10 Trillion Prize demonstrates how property developers have profited from the rising affluence in India and China.
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.
Since 2004, licences have been given to develop as much land in the area as in the entire state during the earlier 25-odd years.
They want FSI to be in line with export benefits for the sale of residential properties to NRIs and foreigners.
The festival season holds out hope for the real estate industry as demand from end users increases in many markets.
After a long hiatus, home sales are finally back on track. Sales of major real estate developers have more than trebled in the June quarter compared to the preceding three months, amid growing expectations that the good times will continue to roll.
Real estate developers said on Tuesday that RBI's decision to cut cash reserve ratio will help improve the liquidity position of various sectors, including realty, but felt that interest rates should be brought down to boost housing demand.
Developers, big or small, faced huge liquidity crunch as both end-users and investors shied away from the market.
The government said on Sunday that public sector banks would shortly launch a package for home buyers. The government expects lower interest rates offered by the public sector banks to trigger similar moves by the private banks and housing financing companies, thereby spurring the demand for homes.
Spencer's Retail, the retail arm of RPG Group, says it has seen a 30-40 per cent decline in the rentals in Tier-II and -III cities. In Tier-I and metropolitan cities, the correction is in the range of 15-20 per cent, and a further correction and its impact is likely to come in the next few months.
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RBI on Wednesday surprised the markets by leaving key policy rates unchanged, notwithstanding persistent high inflationary pressure.
Parsvnath Developers is expected to sack its non-performing staff post Diwali as part of its cost cutting measures. "Non performers have to go. Cost cutting measures will start in 15 to 20 days,'' said Pradeep Jain, chairman of Parsvnath, told reporters on the sidelines of a conference in New Delhi on Friday.
A group of realty players have urged the government to reduce various taxes saying that governments should play the role of facilitator to push affordable housing in the country.
Real estate companies such as Unitech, Peninsula Land, HDIL and Future Capital, the financial services arm of Future Group, are in talks with investors including some leading private equity funds for raising investments for their projects, after the collapse of Lehman Brothers, whose third party fund had promised investments in these property companies' projects, according to industry sources.
India's residential market is expected to sustain demand momentum despite rise in mortgage and property rates as sales this year across the top 7 cities are likely to breach pre-pandemic level of 2.62 lakh units, industry players said. After braving four back-to-back disruptions in form of demonetisation, RERA, GST and COVID-19 in the last 6 years, industry experts feel the housing market is going through a lot of structural changes and is now at the start of a long-term upcycle. Homebuyers body FPCE gives credit to the Real Estate Regulatory Authority (RERA) under the Real Estate (Regulation & Development) Act, 2016 for this improved buying sentiment.
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.
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Some major property companies based in South India, such as Puravankara and Sobha Developers, are spreading their wings in the high-growth National Capital Region market.
Industry players have sought clarity on the proposed move from the state government.
A steady demand environment, prudent debt management and faster absorption of office space gave them an edge over others.
The Delhi police special cell has arrested three persons, including two shooters, in connection with the killing of popular Punjabi singer Sidhu Moosewala, officials said on Monday.
60 per cent of home buyers are shying away from pre-launches.
Amar Ghosh, a real estate broker, is negotiating a deal with a Mumbai-based company for 65 acres around Singur, 40 km from Kolkata, at Rs 22.5 lakh (Rs 2.25 million) per acre.
However, leading real estate players like DLF and Unitech denied being in talks with any foreign brands.
Property consultants also feel that the hike in policy rates would not have any significant impact on the housing sector, which has witnessed a revival in demand for the last one year.
The meeting is likely to be attended by a number of leading developers, including realty firms DLF and Unitech.
Last week, banks were asked to factor in the loans extended to a group -- comprising subsidiaries, special purpose vehicles and related parties of a real estate company -- 'as a matter of prudence'.
Real estate companies are now going to the other extreme and falling over each other to offer affordable housing at a price range of Rs 500,000 to Rs 50 lakhs (Rs 5 million). The varied pricing is a function of affordability being a relative term, depending on the location. For instance, a Rs 50- lakh (Rs 5-million) apartment in Mumbai is considered affordable housing. In a city like Nagpur, the same price will qualify for premium housing.
Plan to lay off excess staff, trim salaries of top executives.
Out of the proposed 74 malls in key eight cities at the beginning of 2008, only 34 were delivered through the year, the study showed. Developers in the National Capital Region lagged the most with a supply of 4.7 million sq ft compared with the earlier target of 7.1 million sq ft. Developers may continue to restrict their supply, or go slow on retail space by a similar amount in 2009 across key major cities, the study showed.
The drive to cut costs is becoming critical as key input costs - steel, cement and labour - that account for 40 per cent of project costs have escalated 50 per cent over the past year.
On July 23, the apex court had cracked its whip on errant builders for breaching the trust reposed by homebuyers and ordered cancellation of the registration of Amrapali Group under the real estate law RERA, and ousted it from its prime properties in the NCR by nixing the land leases.
Real estate companies in South India are increasing the focus on premium launches to offset any fall in the operating margins as sales volumes drop due to the hardening interest rate regime.
After launching mid-income houses, real estate companies are now targeting low-priced homes in the sub-Rs 10 lakh (Rs 1 million) category to improve cash flows and beat the slump in the property market that has been driven by high borrowing rates.
NRI demand would help offset the liquidity problem, which is presently affecting realty sales.
The ED, which is probing the DHFL promoters' role in financing funds to gangster Iqbal Memon (alias Iqbal Mirchi), said Kapil Wadhawan, former chairman and managing director of the debt-laden company, played a very crucial role in these "nefarious transactions" by way of money laundering.
Union Minister of State for Defence Pallam Raju's maternal aunt Susheela Devi was found dead in mysterious circumstances in her apartment in Hyderabad on Tuesday. Suspecting foul play, the city police have booked a murder case. Hyderabad Police Commissioner A K Khan said that Susheela Devi's jewellery was found missing. Susheela Devi used to live alone. A realtor had visited her at approximately 2 pm today. The police suspect that her murder took place after the realtor left
In a novel offering, a realtor in the US state of Florida is giving a Rolls Royce car for 'free' with a nearly $13 million mansion.
Land prices have gone up by 10-15 per cent in the last year at Sector V and Rajarhat, as realtors expect price further appreciation over the next one year.
For developers who came out of a prolonged slowdown of 2008-09, the fund raising spree could be dangerous, say consultants.
Your high expectations and attachment to certain property can make you buy property which is not financially suitable.
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