Consultation India - Pune, Mumbai Real Estate/ Properties Investment, Property Management Services

Source:The Times of India New Delhi: Home loan rates alone do not affect activities in the real estate sector; the performance of the stock market also has a direct bearing on property prices. So, while high home loan rates have hit the real estate sector in the past one year, properties in tony areas like south Delhi and south Mumbai have appreciated by up to 85% during this period. In the last six months alone, rates here have gone up by 15 % to 47 %. Besides increased demand in the posh areas during the stock market boom, the limited supply also contributed to the high price. During the period of stock market boom till around two months ago, there was a rush of cash-rich investors willing to buy houses for over Rs 5 crore. Though the subsequent market crash has led to decreased demand for ul-tra-delux apartments, limited supplies and absence of distress sellers have meant that prices continue to rise. Said Amit Bhagat, head of ICICI Properties, in the past two months, hardly any dea

Source: Hindustan Times FINDING A perfect home to stay in is a priority for most of us. However, not everybody is certain about what they want in a home. If we look around us, we'll see some great projects coming up and which satisfy the dream home criteria for most of us. The real estate market in India has been in ascendancy over the last few years, and it has become much easier now to compare various options, and take an informed decision. To find a dream home, however, one needs to be clear on certain aspects like type of property, number of bedrooms, the budget, location and the expected appreciation from the property. Here are some tips that should be kept in mind when looking for a perfect place to stay: Make the right search: Individuals should evaluate all possible mediums like online real estate portals, newspapers, property agents etc. when short-listing properties. New technology like the Internet has drastically reduced the time that an individual spends in making prel

Source: The Economic Times Deepshikha Sikarwar & Rajat Guha new delhi T HE government is planning to liberalise foreign direct investment norms in real estate. The Department of Industrial Policy and Promotion (DIPP) has circulated a Cabinet note proposing waiver of two conditions, a three-year lock-in on foreign investment and the requirement that the investment be at least $ 5 million in case of a joint venture or $10 million in case of a wholly-owned venture. The waiver has been sought for real estate projects that include hotels, according to a government official. The proposal has been justified on the ground that it would boost tourism and hospitality, sectors identified by the government as vital job creators. At present, 100% FDI is permitted in hotels and tourism as well as in real estate. However, real estate FDI faces a three-year lock-in the investor cannot sell his stake for that period. If he wishes to repatriate the investment before the completion of three years, he

Source: The Hindu Business Line Mumbai, March 27 Yatra Capital Ltd, a Euronext quoted company investing in Indian real estate, has committed Rs 113 crore for a mixed use development to Palladium Constructions and Rs 65 crore to Platinum Hospitality Services for a 30 per cent stake in each of these joint venture companies. Yatra's partner in the two ventures is Phoenix Mills. Both the projects of about 3.5 million sq ft are to come up in Yeshwantpur, Bangalore. Palladium Constructions will develop 1.9 million sq ft -1.4 million sq ft of retail space and 0.5 million sq ft of residential space. Platinum Hospitality Services will develop a 0.5 million sq ft hotel property, including serviced apartments.

Source: The Asian Age DUBAI-BASED LIMITLESS Holdings, part of the Dubai World group, has acquired a 50 per cent stake in DLF's ambitious Bidadi Knowledge City project in Karnataka. Limitless Holdings is an real estate developer that handles activities including feasibility studies, conceptualisation, planning, execution and property management of development projects. The project is being positioned as New Bangalore, spread over an area of 9,178 acres. It will entail an investment of over Rs 60,000 crore, the largest ever by a private sector company in the world.

Source: Economic Times. DUBAI: UAE Property major Emaar Properties has said that it will reconsider its initial public offering (IPO) in India "when the time is right" though the company is bullish about the Indian real estate market. In February, Emaar MGF withdrew its IPO for lack of adequate response. The company wanted to raise around Rs 6,500 crore on the initial price band of Rs 610-690. This was twice revised to Rs 530-630 and the closing date extended to February 11 from February 6. "India will be one of our largest operations and we have long-term plans there. The economy is doing well and we see a bullish story for the next 20 to 25 years," chairman Mohamed Ali Alabbar told the annual general meeting (AGM) of the company. "We would go to public at the right time. We are cash rich and we may even double our size," he was quoted as saying by the Emirates Business daily. Alabbar said the Indian and Morocco operations had contributed between Rs 1,64

Source: economictimes.indiatimes All the bad news about the meltdown in the US share markets has deflected the world’s attention from what is arguably an even more fundamental problem facing the US economy: the sharp deceleration in productivity growth since the middle of 2004. It is a stronger indicator of a slowing economy, reducing business and yes, lowering job prospects. Closer home, all of us are assured that the fundamentals of the Indian economy are strong. Yet, the recent fall in stock markets across the globe and the strengthening of the rupee against the dollar are events which continue the uncertainty in our minds. For India, the immediate implications of the US economy slowdown are not worrying, but this is getting organisations to look at productivity’ as the single most important determinant of long run prospects.India advantage The two fastest growing components of cost for any organisation in the country today are real estate and people. Business and HR professionals i

Source: Economic Times. Want to do up your house without spending big bucks? Fret not, a little bit of planning and loads of innovation can make the same articles in your house look really new, cheerful and absolutely fresh! Here are easy ways to a new looking home--- Move a little bit, here 'n' there Start by arranging the furniture. Decide the focal point of the room. Set furniture around the focal point. That should change the look of the room. Consider the traffic patterns through your living space. Make sure all pieces of furniture are accessible and uncluttered, but be careful not to make the room appear vacant. Use angles when placing furniture. Offsquare angles make the room warmer, and gives it a casual, lived-in elegance. Sofas or other large pieces of furniture need space away from the wall. Just pull the entire piece away from the wall 3/4 either evenly or at an angle. Decorative tables don't necessarily have to go on either end of the couch or love seat. Try us

Source: The Economic Times Rajesh Unnikrishnan MUMBAI CUSHMAN & Wakefield. one of the world's largest property consultancy firms, said the real estate downturn in the US could continue and that India, China and the Middle-East will become even more attractive as these markets offer huge opportunities for investment. The US-based property consultant also said that more financial institutions in the US and Europe are likely to face financial problems in the coming weeks. In an interview with ET, John C Cushman III, chainnan of the board, Cushman & Wakefield said: "More bad news could come. We are facing new challenges everyday. Though there is a debate on whether this is a recession or not, in the coming months more bad things are waiting to happen." He said, as a consequence, global attention will be on the real estate market in India and China as these markets are offering huge investment opportunities. "India, with a GDP growth rate of 8% compared to less th

Source: The Times of India Mumbai: The government will soon for builders to provide affordable housing in the city, revenue minister Narayan Rane told the legislative council on Tuesday. He was replying to a calling attention motion moved by the Shiv Sena's Madhukar Sarpotdar and other leaders. According to Rane, in the new housing policy the government will make it compulsory for all builders to keep 30% space for small flats ranging from 400 sq ft to 600 sq ft. Admitting that homes in the city have become very expensive and it was reflected in the increasing ready reckoner rates, the minister accused builders of inflating rates so that buyers could get higher loans from housing finance companies. Sarpotdar and other MLCs said stamp duty had also increased leading to further rise in prices of flats. The Maharashtra Housing and Area Development Authority (Mhada) has already proposed the construction of homes for the middle and lower-income groups. This, it proposed to do by impleme

Source: DNA Residential sales have declined in major cities, but prices are not falling yet Pooja Sarkar & Vivek Seal. Mumbai/New Delhi There is a slowdown in the sales of residential projects. But the house-hunter is still cribbing. His complaint is that the dip in sales is not reflecting in prices. The villain here's the office-space segment. Surging prices in this segment is putting the real-estate developer under no pressure to change the pricing matrix in the residential segment. Shailesh Kanani, research analyst, Angel Broking, acknowledges that sales in residential projects are going down. "There's definitely a fall in residential sales. It has gone down 60-70% in Mumbai," he said. In Delhi, it has fallen by 50-70% on a year-on-year basis. Sales are also declining in cities like Hyderabad, Chennai and Bangalore, but to a lower extent, two analysts told DNA Money. But real-estate developers are not worried. Says Amitabh Bhattacharya, senior vice-president, O

Source: The Economic Times Land Owners To Be Authorised To Raise Rent At Regular Intervals; Forceful Occupation & Sub-Letting Not To Be Allowed Rajat Guha NEW DELHI THE Centre is planning to amend the archaic rent control rules in a way the property owners also have a reson to smile. In the new revised rent control ACT, the land owners would be authorised to increase rent at certain intervals. A forceful occupation of the property will not be allowed. Tenants who have been sub-letting the property also will not be allowed to do so under the new law. Urban development minister Jaipal Reddy recently said the ministry would soon bring out a new regulation. "The rent control laws are very tricky and sensitive issues. They have to be sensibly dealt with. We are finalising the modalities for the revised law. for which we are in active dis-cussions with all concerned parties," a source in the Nirman Bhawan said. According to sources, the new revised Rent Control Bill is likely t

Source: Economic Times Spirituality may seek to wean people away from material desires but it has emerged as a major factor driving India's $15 billion realty industry that is growing at 35 percent per annum, say industry experts.Religious tourism is pushing the realty industry's growth in destinations like Vrindavan, Mathura, Haridwar, Ajmer, Amritsar, Tirupati and Nasik - cities on the fast track and emerging hot spots for real estate developers."Religious towns have good growth prospects. They are witnessing more than 45 percent annual rise in property prices against the average 25-35 percent in Tier II cities," says Vipin Agarwal, executive director, Omaxe Developers. Spirituality may seek to wean people away from material desires but it has emerged as a major factor driving India's $15 billion realty industry that is growing at 35 percent per annum, say industry experts.Religious tourism is pushing the realty industry's growth in destinations like Vrindav

Source: Economic Times SINGAPORE: The Securities and Exchange Board of India (SEBI) said on Monday that it was looking at the introduction of real estate investment trusts (REITs), but this will come only after other financial market liberalisation moves. "We have received comments from market players. I would say that in the timetable, that will be later than the stock lending scheme and currency futures," the stock market regulator's chairman C B Bhave told an investment conference in Singapore via teleconference. SEBI in December released draft guidelines on setting up REITs in India, which would pave the way for wider participation by retail investors in the country's booming real estate sector. Regulators are also mulling over the introduction of currency futures to help investors hedge foreign exchange risks, and a new system for the borrowing and lending of securities.

Source: The Hindu Business Line To develop business district; payment to be made over 8 years New Delhi, March 11 In what is being billed as one of the largest land deals in the country, real estate company BPTP Group on Tuesday snapped up 95 acres of prime commercial land at Noida for Rs 5,006 crore. The land was auctioned by the Noida Authority. BPTP, which outbid three well-known developers DLF, Omaxe, and Ansal Properties and Infrastructure Ltd, to clinch the land along the Noida and Greater Noida expressway, plans to build a commercial destination that will have offices, hotel and retail space. BPTP quoted Rs 1.30 lakh per sq. m against the reserve price of Rs 77,000 per sqm. "We are very excited. This is an ambitious project. India lacks large, planned commercial district with modern concepts and quality facilities. Delhi does not have a proper business district. We will make this commercial complex a world-class destination," Mr Kabul Chawla, Managing Director and prom

Source: Business Standard CITIES Property developers are going for eco-friendly buildings that help slash energy costs REUTERS I n a sizzling property market, architect Manit Rastogi at MD Morphogenesis has created some of India's coolest buildings, using recycled water, wells, wind tunnels and sun screens to chill work places and slash energy costs. Thanks to his designs, students in a Jaipur fashion school mill around classrooms cooled to around 25 degrees Celsius (77 F) without air conditioners, while the desert bakes at nearly double that temperature outside. And guests at the Swab-humi Hotel in Kolkata feel a breeze as they step out of a building resembling sliced mushrooms fused together, and inspired by the way trees trap wind. But although developers and investors arc coming under the environmental spotlight because buildings account for half the world's carbon dioxide emissions, Rastogi says few in India are going green. "In India s booming real estate market, the

Source: The Free Press Journal MUMBAI: Indiabulls Wholesale Services today said its open offer for acquiring 20 per cent stake in Piramyd Retail will start from tomorrow. Indiabulls Real Estate, a person acting in concert to the acquirer, today informed the Bombay Stock Exchange that its open offer for the acquisition of 40.32 lakh equity shares of Piramyd Retail would now start on March 12 instead of February 2 as announced earlier. The offer would now close on March 31, as per the revised schedule instead of Feb 21, it said. The company had announced the open offer on Dec 9 last year.

Source: Economic Times NEW DELHI: Global financial firms Citigroup, Merrill Lynch and DE Shaw are likely to invest Rs 2,000 crore or $500 million in the DLF Assets’(DAL) real estate investment trust(REIT), according to sources. The transaction is likely to be completed by early next week. Part of DLF Group, the largest real estate developer in the country, DAL is focused on buying and managing office space. Currently, DAL is a owned by DLF promoters and the listed firm has no equity stake in this firm. However, as per the plan, DLF will also invest $750 million or Rs 3,000 crore in the REIT. DAL had earlier planned to list the REIT, but now is going for a private placement. DLF spokesperson declined to comment saying that the Singapore market regulation didn’t allow company to make any comment on the issue as its application for listing of REIT was still being scrutinised by the authorities. DLF Assets originally planned to raise $2 billion through its REIT called DLF Office Trust. Giv

French Bank's Subsidiary Atisreal To Buy Majority Stake In Bangalore Co's Consultancy Business Boby Kurian & Rajesh Unnikrishnan ------------ E UROPEAN financial powerhouse BNP Paribas is foraying into Indian real estate brokerage and consultancy space, making it probably the first international banking group to offer such services in the country. The French bank's real estate services subsidiary, Atisreal, is acquiring more than 50% stake in the consultancy business of Bangalore-based Redwoods Projects. Redwoods is a two-year-old real estate development and services start-up floated by a team led by former Jones Lang LaSalle senior executive Anuj Nautiyal. The domestic partner will keep a minority stake in the joint venture company, which will be renamed Atisreal Redwoods. The financial details of the transaction were not available immediately. The new entity is expected to offer consultancy services in real estate investment and related fields, including debt and equi

Source: DNA The President of India has recently approved several amendments in the Maharashtra Ownership of Flats Act Vinod Sampat. Mumbai On 25th February, 2008, the President of India approved several amendments in the Maharashtra Ownership of Flats (Regulation of the promotion of construction, sale, management and transfer) Act, 2005. The highlights of the amendments along with the specific section are as follows: • Builder/s will have to execute the conveyance. • Power is given to the District Deputy Registrar to act as Competent Authority: Section 5A • Power is given to Competent Authority for registration of Co-operative Society under the provisions of Maharashtra Co-operative Societies Act, 1960: Section 10(1) • It is the duty of the promoter (builder) to file with the competent authority within the prescribed period, a copy of the conveyance executed by him: Section 11(2) • If the promoter fails to execute the conveyance in favour of the co-operative society, company or as

Source: The Hindu Home they say is where the heart is, but if one goes by all the activity in the real estate market it would be hard to keep one's heart in one place. A few years back, buying a house, flat or even a plot would simply mean that one was getting a roof over ones head. This was satisfying a very basic need, that of housing. Fast-forward to today and housing is no longer just about a roof, it's everything to do with lifestyle, building com-munities, being socially connected, making good investments etc. The real estate market has become many things and today it is a prime source of investment. The recent economic boom and the growth in the IT and BPO sectors have seen a rise in affluence levels across the board. The return of the Indian Diaspora from greener pastures has resulted in the quality of homes going up. Gated communities, villas and large format flats have now become the norm. It wouldn't be right to assume that real estate has become only about luxur

Source: Economic Times PUNE: The building sector in Pune and neighbouring areas is in dire straits. The mass exodus of migrant workers from UP and Bihar, following alleged threats from Raj Thackeray’s Maharashtra Navnirman Sena, has forced builders to invoke the force majeure clause to escape liabilities of delays and cost overruns. With the labour rates in the building industry almost trebling due to insufficient workers and absence of skilled employees, buyers will have to shell out more for their flats. “We have informed our customers that there will be a delay in the delivery of flats due to this force majeure situation,” said Gera Developers chairman Kumar Gera. “We can’t say when the sub-contractor’s labour will be back, when normalcy will return or when flats will be ready,” added Mr Gera, who is also the founder chairman of the Confederation of Real Estate Developers Association of India. “The number of labourers on our project sites has come down from 2,300 to 1,400 now. This

Source: Economic Times DUBAI: A Bahraini real estate firm has acquired 49 per cent stake in an information technology park in Noida at a cost of $69 million. Acacia Real Estate, a company spearheaded by Bahrain-based TAIB Bank, has acquired 49 per cent of Logix TechnoPark located at Noida in Uttar Pradesh. "We are proud to be able to offer our clients this unique opportunity to invest in India's real estate market," said Acacia executive committee board member and TAIB Bank chief executive and vice-chairman Iqbal Mamdani. With a projected internal rate of return of over 24 per cent per annum, the deal was structured to provide investors with downside protection and an average cash coupon of 8 per cent per annum over a three-year holding period, he said. TAIB Bank is the exclusive placement agent for the project. The property, along the Greater Noida Expressway, consists of four newly built 100 per cent occupied office towers with a total gross leasable area of 461,120 sq-

Source: Business Standard BS REPORTER Bangalore, 4 March T he National Association of Realtors-India (NAR-I) has signed a bilateral agreement with the National Association of Realtors-US (NAR-US) to facilitate realtors from both countries to source properties for buying and rentals. NAR-I, a New Delhi-based non-profit society registered in Bangalore, aims to streamline and promote professionalism in real estate brokerage in India to achieve transparency, accountability, fair dealing and ethical practices. Addressing a press conference on Tuesday, Farook Mah-mood, president NAR-I said, "In addition to sourcing properties, a bilateral agreement between both organisations has also been signed to provide skills, education and to share best practices." "Now local realtors in India can now extend their operations by transacting on a global level," he added. Earlier in the day, Banga-lore Realtors' Association - India (BRA-I) along with its counterparts from Chennai, P

Source: The Times of India There are no indications that investor activity has overtaken genuine buyer activity in the market, says Anuj Puri MYTH 1: There is a 'bubble' in the Indian real estate market, and it will burst soon. Fact: There is no evidence of a 'bubble'. When a bubble develops in any market, it is because prices for that particular commodity or asset have gone through the roof and beyond affordability. This is far from the case in Indian real estate. The residen�tial sector is led by endusers and it is they who dic�tate the state of the market. Neither is there a sig�nificant correlation between the state of the stock market and that of the property market. There are no indications that investor activity has overtaken genuine buyer activity. In residential, the propor�tion is approximately 80% end users and 20% in�vestors. In the commercial sector, the proportion is almost 100% end users who are taking property on lease. There are instances of overheating

Source: Economic Times NEW DELHI: The Indian real estate sector has welcomed the overall impact of budget while saying that it could have done more for the industry. "The budget will boost the socio-economic infrastructure of the country by giving due emphasis to education, health and hospitality sector. The budget has, however, not fully addressed the demands of real estate industry", said Pradeep Jain, chairman of Parsvnath Developers Ltd. "While we welcome the emphasis on education and health given by the finance minister, the long-awaited demand for industry status for real estate would have gone a long way in providing the desired impetus to the growth of the sector, which is highly capital intensive. "The sops given to infrastructure and housing sector in rural areas are welcome. However, a reduction in duties and service tax benefits directly to consumers would have propelled the demand for realty across the country. "The reduction in input cost of cemen

Source: The Hindu Business Line Real estate industry is the second largest provider of employment after agriculture. We urge the Finance Minister to recognise this and accord the same consideration and treatment as other industries like software. Service tax should be reduced along with the modification of entire income tax structure for real estate industry. The real estate industry has matured significantly in the last few years. Hence, the Government should consider introduction of sectoral concepts such as rental housing, and real estate investment trusts (REITs) to allow housing more easy and affordable for common man along with raising more funds. Such developments proved their worth in number of other industries. M.A. Vakil, CMD, Vakil Housing Development Corporation, Bangalore

MUMBAI: Real estate firm Anant Raj Industries Ltd said on Friday it has priced its global depositary receipts (GDRs) at $7.494 each. Each GDR represents one equity share of the company. It said the company has received commitments for $151 million. The GDRs will be listed on Luxembourg Stock Exchange.

Source: 18 Feb 2008 The Financial Express ‘Budget Homes’ are gaining popularity among builders and middle class has finally begun to dream. India’s urban population is growing at the rate of 2.5% annually. By 2011, close to 41% of India’s total population will be living in the urban areas. This has lead to increasing demand for budget homes. The country is witnessing an average addition of 2.3 billion sq ft of residential area each year, which means that 2 million houses of 1,175 sq ft each will be built every year. Industry experts believe that builders should plan keeping a certain clientele in mind. For such houses, they need to concentrate on volumes rather than ‘limited editions’ and price homes in a manner so that the lower or middle income segments can afford them, depending on target clientele. According to Mr. Anuj Puri, Chairman and Country Head of Hoems LaSalle Meghraj, ‘All major cities have a ‘budget home’ segment. Most of the activity would be in the sub

Source: DNA Analysts say the move makes sense as it is already fairly diversified Mithun Roy. Mumbai Textile major KSL and Industries Ltd (KSL), promoted by Saurabh Kumar Tay-al, is betting big on its realty business. A banker close to the development said the Rs 800 crore company plans to demerge its realty business into a separate company and list it on the bourses. The rising rupee, which has hit exporters hard, seems to have taken a toll on its core business - textiles. Hence the focus on realty play in the next few years, said the banker. Analysts say the demerger makes sense considering the company has diversified into the realty business in a big way Tayal told DNA Money, "We are analysing all possible growth areas including hiving off and thereafter listing on bourses, but not immediately A separate team is looking into it and once the internal report comes, we will take the final call and subsequently inform the exchanges." Going by industry sources, KSL has started

Source: Business Standard RAGHAVENDRA KAMATH Mumbai, 26 February A fter Biyani's Future Group. BSE-listed stationery maker Today's Writing Products is entering into the retail of office supplies and stationery products. Today's is planning to open 500 stores under the brand name OFFIX in the next three years. The company has earmarked nearly Rs 160 crore for the venture and plans a mix of company-owned and franchises for the same. The company has floated a subsidiary Today's Stationery Mart for the venture. Today's is also setting up six warehouses, in the range of 70,000 to 80,000 sq feet, to cater to the operations of the company across the country. Last year, Future Office, the office products venture of Future group, entered into a joint venture with $16 billion US company Staples to form Staples Future Office Products in the country's $ 10 billion office products' market, which is dominated by city-specific unorganised players. According to estimates, t

Source: The Asian Age By MAYUR SHEKHAR JHA New Delhi, Feb. 26: Indian Railways is getting real about estate. Lalu Yadav wants to put up for commercial use his department's surplus land assets. In 2008-09, the department plans to invest about Rs 4,000 crore in public private partnerships (PPP) for commercial development. A staggering 43,000 hectares of land, no less, across the country has already been identified for the purpose. "It makes good business sense for both the Railways, as well as the private developer. Often, this surplus land is around the main stations, bang in the heart of a city, and thus, commands huge value," says DLF group executive director Rajeev Talwar. India's largest real estate developer plans to bid for PPP projects mainly on the Delhi-Mumbai freight corridor. "At present, we are bidding for the land around New Delhi railway station. We would make use of opportunities as and when they arise," Mr Talwar said. The other real estate gi

Source: The Economic Times Our Bureau MUmbaI BOOMING Islamic finance is likely to acquire assets in India through Islamic Real Estate Investment Trusts. According to a report by Moody's although IREITs are not in existence in India, the draft IREIT guidelines issued by Sebi may pave the way for these funds into the Indian property market. With high oil prices funnelling billions of dollars to the Middle East, there is an increased demands for Sharia-compliant finance products. According to Moody's, Islamic finance is now estimated to be worth around $700 billion globally while Sukuk, or Islamic bonds, are the fastest-growing segment, with volumes worldwide reaching $97.3 billion till 2007. Moody's pointed out that the property boom in the Middle East makes IREITs a much-needed product and a useful investment tool, given the existing favourable investment and regulation environment. Moreover, there has been a growing appetite for the real estate asset class among regional in

Souce: Economic Times MUMBAI: Real estate firm Housing Development & Infrastructure (HDIL) on Wednesday said the private equity firm DE Shaw is investing $250 million in Mack Star Marketing, an HDIL group company. Mack Star Marketing holds development rights for a 54,000-metre commercial complex being constructed in Andheri. Last week, HDIL had transferred its development rights to this complex to Mack Star for Rs 900 crore. DE Shaw’s investment is in the form of equity and debt. HDIL managing director Sarang Wadhawan said DE Shaw will hold a minority stake, but declined to give details. The investment comes at a turbulent time for India’s capital and real estate markets. The steep meltdown in January and the withdrawal of Emaar MGF’s IPO in February rattled real estate firms who rely on equity to fund their expansion projects. PE money, which was always sought after, has become attractive now, but funds are being very selective and managements are also being forced to offer realis

Source: Economic Times MUMBAI: Realty sector hopes that Finance Minister P Chidambaram will provide tax breaks on REITs in line with the Mutual Funds while he unveils the Union Budget on February 29. Market regulator SEBI has already come out with a draft guideline to allow Real Estate Investment Trusts (REITs), but there was no mention on the tax breaks that is imperative to popularise the REIT market to start with like any other global market. "I believe that income of the investors under REIT should not be taxed, like in the US. This will attract investors to further invest in REITs," Ansal API Chairman Sushil Ansal told PTI. The country needs to introduce REITs as soon as possible, he said adding that this would help to bring in funds to the sector. "All the benefits that the Mutual Fund industry enjoys should be made available to REITs as well. Long-term capital gains on sale of REIT units could be made tax exempt and short-term capital gains could be taxed at 10 pe

Source: The Economic Times MUMBAI: The booming realty sector wants a status equal to telecom and aviation with amendments in the foreign direct investment guidelines to boost construction and infrastructure development in the country. "The realty sector is growing at a dizzying pace of almost 30 per cent each year. The bulk of construction activity - 80 per cent - is dedicated to housing, while the rest is commercial, including offices, malls, hotels and hospitals," said Akruti City Ltd Managing Director Vimal Shah. The double-digit growth in this sector is mainly on account of offshoring of business including high-end technology consulting, and improved techniques employed here. "In order to give a further boost to this sunrise sector and make mass urban housing affordable, tax exemptions are necessary in the next union budget. Then, property prices can come down by up to 20 per cent, bringing more people into the self-owned housing net, and enable the industry grow in

Source: The Economic Times KOLKATA: Singapore’s largest private property developer, the $4-billion Far East Organization, is keen to get a toehold in India. The Singapore conglomerate is talking to prospective Indian partners for its proposed foray in the booming realty market, especially in major metros like Delhi, Mumbai, Kolkata and Chennai. “We are talking to partners who will complement our property development expertise. Big realty players who know the four markets don’t need a partner, but regional ones who have the land and are in the business may find partnering with us beneficial,” Far East Organization executive director Chia Boon Kuah told ET. But discussions are at a preliminary stage, Mr Kuah added and declined to name realtors who are in talks with them. The Singapore firm has developed a string of high-end residential and commercial properties, including the iconic Fullerton Hotel in Singapore. It is also building Orchard Central as part of $1.6-billion makeover of Orch

Source: The New Indian Express New Delhi, Feb 25: The government today approved 10 more proposals for Special Economic Zones, including those by Videocon Realty and Mahindra Worldcity. The Board of . Approval, chaired by Commerce Secretary Gopal Pillai, met here and took up 14 SEZ proposals, including three in-principle conversions to formal approval. Formal approval was granted to 103-hectare transport engineering goods zone by State Industries Promotion Corporation of Tamil Nadu Ltd (SIP; COT) in Tamil Nadu as well as to a mineral-based products SEZ in Madhya Pradesh by Madhya Pradesh Audyogik Kendra Vikas Ltd. Wardha Power Company's 102-hectare SEZ in Maharashtra and Anant Raj Industries IT/ITES zone in Haryana was also given formal approval. Mahindra Worldcity' s (Jaipur) 103-hectare handicraft and 104-hectare light engineering zones in Rajasthan were also approved. The in-principle nod to SIP-COT's 103-hectare automobile/automobile parts zone in Tamil Nadu and Videocon

Source: DNA Ficci panel seeks clarification on draft guidelines for such trusts Sanat Vallikappen. Mumbai The new Securities and Exchange Board of India (Sebi) dispensation under chairman C B Bhave looks all set to carry on from where M Damodaran left off. On Thursday, senior officials at Sebi met with a team from the real estate committee of the Federation of Indian Chambers of Commerce and Industry (Ficci). The latter made about 15 recommendations, meant to clarify certain aspects relating to the draft guidelines for real estate investment trusts (REITs) put out by the regulator on December 28, 2007, when Damodaran was chairman. One of the key recommendations was to make the tax structure on REITs favourable to investors. With REITs mandated to distribute 90% of the income they generate as dividends, the thinking is that there should only be a dividend distribution tax, to be paid by the real estate investment management company, and not the investors. REITs are essentially instrumen

Source: The Economic Times Lynn Adler NEW YORK THE distressed US housing market should get a lift this spring as bargain prices lure prospective buyers out of hibernation, but tighter lending means no one should expect the boom days to return any time soon. Spring is a pivotal season in the housing market. Potential buyers typically emerge from a winter hiatus and shop in earnest for a new home or an investment. The strength of the market in March, April and May usually sets the tone for the entire year. This year, spring has assumed even greater importance as it coincides with a sharp US economic slowdown, triggered largely by a dysfunctional real-estate market. After sales of existing homes sank almost 13% last year, a housing revival could put the economy back on solid ground. When the housing asector is thriving, so does the economy as buyers spend heavfly on new appliances and furniture while owners pump cash into remodelling or additions. Even in Arizona and Florida, which are am

Source: livemint.com Education Is The Next Move Of Real Estate DevelopersThe latest concern of home-buyers is the quality and proximity to their children’s educational institutions. Developers such as Delhi-based Emaar MGF Ltd and Mumbai-based Hindustan Construction Co. Ltd (HCC) have teamed up with different schools for the township projects they have announced. While Emaar tied up with Singapore-based Raffles Group, HCC has teamed up with the Girl’s Day School Trust, UK, for its new hill station project in Lavasa, near Pune. Several players are looking at educational infrastructure as a possible investment opportunity. For instance, Trikona Capital, a Delhi-based realty fund plans to dedicate around 10% of its new $1 billion (Rs3, 970 crore) fund Trident to investments in this sector. Mr. Mahesh Gandhi, president of Trikona Capital, says: "We see a lot of opportunity in the social infrastructure sector in the coming years. We have already invested in hospitals, now we are lo

Source: Hindustan Times COMPARED WITH developed countries, India's real estate sector still lacks sophistication and transparency However, it is now the cynosure of international investors, thanks to the gradual opening up of certain sub-sectors like townships and retail to foreign direct investment. This has naturally brought on the need for better, more capable human resources. Though real estate is not rocket science, there is a fair degree of complexity involved in the business. As in any other business, real estate businesses operate either by responding to existing market trends or opportunities, or on the basis of an in-depth understanding of the market, keeping an eye on both emerging possibilities and long-term integrity of the market. The first method is reactive and often opportunistic. The latter is based on information rather than gut feeling, and results in assured growth rather than short-term gains that only involve calculated risks. India's economy is growing a

Source: Deccan Chronicle M ore people in their 30s are buying houses these days, thanks to income tax concessions and loan schemes with affordable equal monthly installments. Two decades ago, the average age of people who bought houses was between 55 and 58. Other factors responsible for this 'youthful' change are exponential increase in incomes of young professionals and high rents charged by property owners on apartments and houses. Loans are also easily available now, which was not the case 20 years ago. The trend of more young professionals purchasing houses was noted in an analysis conducted by industry chambers on data obtained from major real estate developers such as DLF, Prasanth, Omaxe and Unitech. There is also a change in the 'renovation' pattern. Earlier, renovations were carried out when house owners were around 60. But now people carry out large-scale renovations when they are between 45 and 48. "The biggest house buyers nowadays are younger people,&