Residential Market Revives After RBI Rate Cut

Posted on February 6, 2013 by designer

Real estate experts said that the residential market across India has revived after RBI cut its major rates. After the RBI rate cut; the home loans have become cheaper and this has improved the sentiments of home buyers.

Residential market started reviving after RBI cut rate.

RBI rate- cut have highly affected the sentiments of home buyers. With the RBI rate cut, the home loans have become cheaper. This has increased the housing demand that helped residential market to revive.

Praising the RBI rate cut, real estate developers and consultants have said that the act will improve the housing demand. As a result the residential market will see a growth. According to them, the rate cut will boost foreign investment as well.

Last week; in a much awaited decision enabling the subsidiary banks to offer loans at lower interest rates, RBI had cut short its key interest rates. The Central Bank lowered the repo rate by 0.25% and cash reserve ratio by 4%. Continue reading →

Top Property Investment And Home Destinations In India

Posted on February 6, 2013 by designer

Many cities are emerging as hot destinations for property investment in India. Here we have shortlisted a few property investment and home destinations which provide better returns to the investors.

Top destinations that provides better returns for your property investment .

Chembur, Ulwe and Wadala in Mumbai are three most-promising property investment and home destinations. These areas are noted for its improved infrastructure and job-generation capacity.

Noida-Greater Noida Expressway, Yamuna Expressway and Noida Extension are three top destinations in the National Capital Region. These areas offer better price appreciation to the investors. So they remain top destinations for property investment as well. Continue reading →

DLF to raise Rs.2100 Cr via institutional placement program

Posted on February 5, 2013 by designer

India’s largest real estate firm DLF plans to raise Rs.2,100 Cr through institutional placement program (IPP)- a system in the market in which the stakes are sold to qualified institutional buyers.

DLF to raise Rs.2100 Cr through IPP.

DLF, India’s largest real estate firm, by April 2013, will raise over Rs.2100 Cr via selling its shares to qualified institutional buyers. The real estate major will sell around 8.1 Cr shares of the firm to raise the fund.

Though the move is in line with the guidelines specifying 25% public shareholding, the main aim of the move is to help the firm reduce the debt. However the Rs.2100 Cr fund is one of the biggest ever- raised through IPP, in India.

An official said that they have already started discussions with the bankers. He added that the firm is likely to appoint around three or four merchant bankers soon for the purpose. Though the pricing is not yet done, the official said that the shares will be priced either at the current market price or there may be a 5% discount in the existing prices. However the prices will be as per the prescribed guidelines of IPP, he added. Continue reading →

Ahmedabad Authority (U.D) Halts Conversion Of Agri. Land

Posted on February 5, 2013 by designer

Ahmedabad Authority (Urban Development) froze the conversion of agricultural land. The move of AUDA will affect thousands of realty investors who have invested in lands. Many investors had invested on lands for constructing farmhouses.

Ahmedabad Authority bans conversion of agri land

Ahmedabad Authority bans conversion of agricultural land for construction purposes.

Thousands of realty investors have invested in 68 villages that fall under the limit of Ahmedabad Urban Development Authority. They will be trapped as AUDA halted conversion of agricultural land for other purposes. It seems that non-agricultural conversions will take place only in rare conditions.

Those who have invested in the agricultural land with the aim to covert them later and have not gained NA permissions already will be affected by the Ahmedabad Authority’s new plan. Under the new plan the conversion of agricultural land for other purposes will be banned entirely. Continue reading →

Vadodara’s Vacant Properties? RTI Reply Invites Mix-Up

Posted on February 4, 2013 by designer

An RTI reply stated that Vadodara has around 1 lakh of vacant properties. The RTI reply is considered as an alarm-bell for the real estate sector in Vadodara.

Sunset scene from Manjalpur Bridge in Vadodara: Confusion arises over the number of vacant properties.

According to an RTI reply, over 1 lakh of properties remain vacant in Vadodara. Meanwhile there appear no takers for the property, it added. The RTI reply which revealed that there are over 1 lakh vacant properties in Vadodara has been considered as a warning- sign for the real estate sector in the city.

RTI reply was made by the Directorate of Census Operations, Gujarat, to a native of Vadodara. A copy has been sent to the Vadodara Municipal Corporation as well. The RTI reply clearly stated that over 1 lakh properties, precisely 1.02 lakh, were vacant in the city. Continue reading →

Blackstone To Gain Huge Profit From Its JV With Embassy

Posted on February 4, 2013 by designer

Blackstone, one of the leading global private equity and investment firm, is set to amass a huge profit from its Joint Venture in Bangalore.

Realty investment in Bangalore gives a good reap to Blackstone.

Blackstone has, joining hands with Bangalore– centered real estate firm Embassy Property Developments, planned to develop a luxury-oriented residential project. The Blackstone- Embassy group will jointly develop 467 housing units; each unit priced between Rs.3 to Rs. 10 Cr, in the project.

Blackstone expects to gain around Rs.210 Cr from their JV. This is their first big investment in Indian real estate market. In 2011 the global private equity major invested in Embassy Lakeside Terraces which is an ultra-luxury villa project. From their investment in the project, Blackstone is expected to gain around Rs.210 Cr which represents around 28% of the absolute profit. Continue reading →

Walmart Anxious Over States’ Veto Power On FDI

Posted on February 2, 2013 by designer

Walmart as well as US government seem concerned over States’ veto power the states have over the Foreign Direct Investment. They have conveyed their concerns, to the union government of India.

Walmart remain cautious to enter Indian Market as the states are given Veto Power.

Wal-Mart Stores, Inc.; generally branded as Walmart, an American multinational retail corporation, as well as the US government has revealed their concern over the veto power conferred to the states by the Union Government of India. Union Government’s decision to confer absolute power to the states; to decide on the matters related to the foreign retailers’ entry into their states, is seen as a barricade for the foreign investors.

Being concerned over the veto power of the States, many of the foreign retailers like Walmart, still not interested in the Indian Market. They, the world’s largest supermarket chain, still remain reluctant to enter the Indian Market. Continue reading →

Residential Market Likely To Grow Theme-Based

Posted on February 2, 2013 by designer

Theme-based housing has become the latest trend in the Indian residential market. According to the industry experts, the theme-based housing projects hold better potentials for growth in India.

Indian residential market becomes theme oriented.

Recent trend in the Indian residential market is that it has become theme-based. Indian realty market witnesses a steady increase in the demand for theme-based housing projects. Viewing this increased demand for theme-based homes; Tata Housing Development Co. Limited is up with many theme-oriented projects.

Speaking to media persons Mr. Rajeeb Dash, marketing head at Tata Housing Development Co. Limited; said that theme based projects are becoming more popular in India. In his opinion theme based projects have a very bright future in the residential market in the upcoming days.

The growing trend is seen as resulting from the people’s contact with the outer world. At present the people of India travel a lot; and they get acquainted with the housing trends in the world-cities like Paris, New York, Dubai and the-like. These cities influence them and moreover they become aware of the western culture and the residential markets there. Continue reading →

AUDA To Raise FSI; Ahmedabad To See Taller Buildings

Posted on February 1, 2013 by designer

Urban Development Authority of Ahmedabad (AUDA) may announce its new Development plan on February 1. The new development plan is expected to raise the floor space index (FSI) up by 30%.

AUDA to raise FSI in February.

Paving way for vertical residential development, the new development plan, likely to be announced by the Urban Development Authority of Ahmedabad, will raise the floor space index (FSI) by up to 30% in Ahmedabad. The New development plan will cover 68 villages. The new plan is expected to permit the builders to develop sky-reaching buildings. Continue reading →

Indian Realty Sees Private Equity Firms’ Faded Zeal

Posted on February 1, 2013 by designer

Private equity firms show low interest to invest in Indian Realty and infrastructure. India witnessed a deep fall in the Private equity investment in the last year.

Indian Realty loses its attracting charm.

According to a report by Grant Thornton, a leading global accounting firm, the Private equity firms have lost their interest in the Indian Realty and infrastructure. As per the Grant Thornton report $ 7.4 billion was invested in India by the private equity firms in 2012. Private equity investment of 2012 is comparatively very lower to the same of the previous year in which $8.8 billion was invested, the report adds. Continue reading →

Property Prices Will Remain Stable; No Chance For A Fall

Posted on January 31, 2013 by designer

The situation seems impossible for the property prices, especially in the metro cities, to fall downward in near future or ever. Will there be a price correction, sooner or ever?

Property prices will remain stable; despite no takers are around.

The situation in India shows that there will not be a fall of property prices, especially in the metros like Bangalore, Delhi, Mumbai or any other metros. Though everyone wishes a fall in the property prices, it is almost impossible to happen, neither in the near future nor in the longer- future.

Developers have taken loans from the banks and housing finance companies. Some of the builders have even taken loans from private equity firms which normally lend loans at 25 to 30 %. Still, builders are forced to cut down prices as many of the projects remain without any demand as buyers’ sentiment has been hurt by the sky rocketing property prices. Continue reading →

HDFC To Present ‘India Homes Fair’ In Muscat

Posted on January 31, 2013 by designer

Offering opportunity to the NRIs who wish to own a home in India, HDFC Ltd presents a property fair in Muscat. The two-day property fair will take place on January 31 and February 1.

Property exhibition, presented by HDFC, will act as a plaform for the NRIs in Musket to own Indian Properties.

India’s Premier housing finance company HDFC Ltd will host a two-day property fair in Muscat, enabling the NRIs to know more about the prime properties located across India. The two-day property event, which will have properties exhibited by 32 developers of good reputation, will be held at Hotel Muscat Holiday.

Mr. JS Mukul, Indian Ambassador to Oman, will inaugurate the property event in the presence of Mr. Ajay Sachdewa, HDFC Middle East Regional Head. This property exhibition titled ‘India Homes Fair’ will be opened to the visitors from morning 10 am to evening 8 pm. Continue reading →

AIG Global To Develop Housing Project; Gains RMZ’s Stake

Posted on January 30, 2013 by designer

New York-based private equity and realty firm AIG Global has purchased 50% stake in a mall project in Hyderabad from Bangalore-centered RMZ Corp.

AIG Global to develop residential project in Hyderabad

AIG Global, a New York-based private equity and realty firm, has bought 50% stake of RMZ in their shopping mall project in Hyderabad. The mall project is a joint venture which has been stalled due to many reasons. RMZ has divested its stakes worth Rs.53 Cr in the stalled mall-cum-office project.

AIG Global plans to turn the mall project into a residential project with some additional investment. The project, spreading over 11 acres, is expected to be launched by the first quarter of next financial year. However the launch will be subject to internal approvals, an official with direct knowledge revealed.

Mr. Bamasish Paul, MD at AIG Global Real Estate India refused to comment on the issue. On the other hand, while commenting on the development Mr. Raj Menda, managing director of RMZ, said that the dispute was cordially settled down. Continue reading →

Home Loans’ Interest To Fall As RBI Cuts Rates Finally

Posted on January 30, 2013 by designer

Finally, Reserve Bank of India (RBI) declared a cut in its main interest rate on Tuesday. As a result the banks will be pushed to provide home loans at lower interest rates.

Home loans will become cheaper as RBI cuts rates.

Home buyers finally heard the much-awaited good news when the Reserve Bank of India cut its main interest rate (Repo Rate) and cash reserve ratio (CRR). As the central bank cut the rates the impact will be on the subsidiary banks. They will be able to provide home loans at lower interest rates.

Home loans will become cheaper. The banks will remain capable of providing easier EMI loans (Equated Monthly Installments) to the home buyers. D Subbarao, Honorable Governor of RBI, said that the act of RBI will boost the investments. He added that the RBI rate – cut will keep inflation in a moderate level. Further, the rate cut will improve liquidity and credit flow. Continue reading →

English Cricketers Attracted To Indian Properties

Posted on January 29, 2013 by designer

The soaring property prices have really attracted some of the English Cricketers. They are very keen to have some investment on Indian properties.

English cricketers attracted to Indian properties

Some English cricketers are attracted to Indian properties.

Seeing property prices soaring in India, some top English Cricketers have expressed their interest in investing in Indian properties. Reliable sources close to the English Cricket Team reveal that around five top-cricketers are interested in Indian real estate market.

Available sources reveal that they have already entered into talks with the developers regarding their property purchase. These cricketers will purchase land parcels or properties in major Indian cities like Bangalore and Mumbai. Some of them prefer to purchase properties in Goa, one of the most favorite tourist destinations in India.

While some of them prefer to own land parcels, others prefer to own apartments in partnership with the Indians. Sources told the Times of India that they have been searching for properties for a quite long while. Sources revealed that the English Cricketers have shortlisted three cities now. Continue reading →

TVS Steps Into Realty Business, Launches First Project

Posted on January 29, 2013 by designer

TVS Motors, a leading auto and two-wheeler developers, has entered into the real estate business by launching their first residential project in Chennai.

TVS Motors has entered into real estate business.

TVS group, the auto-major, has stepped into the real estate business with their new residential project in Chennai. This is the first major expansion of the group since it was established nearly four decades back. Emerald Haven Realty, promoted by the auto major, has already launched a residential project in Chennai.

Their initial project- Green Hills is launched at Perungalathur in South Chennai. Each housing unit, the project has total 448 housing units, is priced between Rs.25 lakh to Rs.45 lakh. However, TVS Motor’s CMD Mr. Venu Srinivasan could not be contacted for any comment on the group’s entry into the real estate sector. Continue reading →

Residential Market Will See Price-Correction Soon

Posted on January 28, 2013 by designer

Pointing to the falling property prices, global property consultancy firm CBRE reports that the residential market is on the verge of a price-correction. The property consultancy firm added that the builders are pressured to cut down the prices by the weak home-sales.

Residential Market will soon experience a price correction.

Mr. Anshuman Magazine, CBRE’s chairman & MD for South Asia, pointing the fallen property prices in Mumbai and other major cities of India, said that the housing segment will soon experience a price-correction. He said that if the lower sentiment remains the same in the residential market, it can be sure that there is a bigger flow of black money.

Compared to the second – quarter prices, prices for the newly launched homes in the third quarter are down by 2 to 5% in Mumbai, reported CBRE. Substantiating their report, another property consultancy reported that the property prices in Mumbai have fallen. According to the report of Liases Foras, the prices in Mumbai have fallen by 1%. Continue reading →

Indian Realty Market To Have Vast Foreign Investment: JLL

Posted on January 28, 2013 by designer

Jones Lang LaSalle, global real estate consultancy firm, reported that foreign investors will invest nearly $4-5 billion in the Indian realty market. JLL added that Bangalore, Delhi and Mumbai remain the favorites of foreign investors.

Indian realty Market attracts more foreigners.

According to the real estate consultants Jones Lang LaSalle foreign investors are planning to invest around $4-5 billion in the Realty market of India. While speaking in an interview, Mr. Alastair Hughes, CEO at JLL Asia Pacific, said that the foreign investors are keen now to interest in realty market of India.

He added that Indian realty market offers better returns to the investors. He was visiting India to participate in the World Economic Forum Annual Meeting. According to him the foreign investors will invest mainly in Bangalore, Delhi and Mumbai as these cities assure higher returns to the investors. Continue reading →

Housing Segment Needs Infrastructure Status: NAREDCO Demands

Posted on January 25, 2013 by designer

NAREDCO, the National Real Estate Development Council, demanded that the housing segment should be given infrastructure status as it will enable them to gain tax benefits.

NAREDCO demands industry status for housing segment.

National Real Estate Development Council has recently demanded infrastructure status for the housing segment. The Housing ministry expressed that infrastructure status can be given to the affordable housing segment.

Housing and Poverty Alleviation Ministry (MHUPA) gestured that this time special focus will be on affordable housing segment. Housing Ministry revealed that they are hopeful of bringing some changes in the affordable housing segment. Continue reading →

RBI Can Let Realty Firms Run Banks; Finance Ministry

Posted on January 25, 2013 by designer

Favoring the real estate sector, Finance Ministry expressed its view that the realty firms should be permitted to run banks by the Reserve Bank of India (RBI).

Will RBI permit realty builders to run banks as Finance Ministry suggests?

Finance Ministry, favoring the realty sector and broking firms said that they should be permitted to run banks. The ministry said that the RBI should permit the real estate firms and broking firms to run banks. Finance Ministry was commenting on the RBI’s plan over giving new bank licenses.

Though Finance Ministry supported and favored the real estate sector and broking firms, it added that there should be absolute ban on gaining exposure in the group companies or entities related to any of the promoters. Continue reading →

Koramangala In Bangalore Turns Better Home Destination

Posted on January 24, 2013 by designer

Koramangala, lying in the South eastern parts of Bangalore, is expected to offer higher returns to the investors. It has become one of the most sought after residential areas in the Bangalore Metropolitan Region (BMR).

Koramangala in Bangalore has recently become a hot home -destination.

Guaranteeing higher returns to the investors, Koramangala has become one of the hotter real estate destinations in India. The large number of upcoming ultra-luxury residential projects, commercial malls and posh villas show how fast the area develops and becomes a better home- destination.

While speaking to Shweta Rao of Economic Times, Mr. Gaurav Pandey, Vice-President of PropEquity Research & Consulting, told that “having close proximity to many established commercial hubs in the Central, East and Southern regions of Bangalore, Koramangala has evolved as a premium residential market.” Continue reading →

Embassy Group To Raise Rs.500 Cr Along With JP Morgan

Posted on January 24, 2013 by designer

Bangalore-centered Embassy Group has entered into talks with JP Morgan, a global financial services group, for raising a real estate fund of Rs.500 Cr.

Embassy Group will invest Rs.500 Cr in Bangalore realty along with JP Morgan.

Embassy Group has entered into talks with the global financial services group for raising a fund for real estate development. The Indian firm plans to invest the fund of Rs.500 Cr into two real estate projects in Bangalore.

Embassy Property Developments plans to develop a top-end villa project and another residential project with IT campus. They have the plan to develop the projects on the Bangalore – Bellary Road.

Embassy Group had recently sealed a real estate transaction with Blackstone, a global private equity firm. This real estate transaction is considered as the biggest commercial transaction of India.

However the CMD of Embassy Group Mr. Jitu Virwani kept his lips closed when asked about their talks with the financial services firm. Mr. Yesh Nadkarni of JP Morgan too declined to comment on the ongoing talks. He told the media persons that as a matter of policy he could not comment on the issue. Continue reading →

Hyderabad Emerges As The Most Affordable Realty Market

Posted on January 23, 2013 by designer

Hyderabad witnesses a steady improvement in the sales of affordable housing units. With the increased demand for affordable housing units, the city has become one of the most affordable realty markets in India.

Hyderabad city offer homes of affordability

With large number of affordable housing projects launched, Hyderabad has become one of the most affordable real estate markets in India. Due to the IT and ITeS development in the city, Hyderabad is more demanded and has become a favorite home destination.

Global real estate consultancy firm Knight Frank reported that Hyderabad has become one of the most affordable real estate markets. The city achieved greater popularity as builders are up with their new affordable housing projects. Continue reading →

Spice Global Steps Into Hospital & Realty Businesses

Posted on January 23, 2013 by designer

Bhupendra Kumar Modi- led Spice Global has plans to enter into the most booming hospital and realty businesses in India. Spice Global will develop Saket City Hospital, a super specialty hospital in Saket, as the first venture.

Spice Global enters hospital sector with Saket City Hospital

Spice Global has stepped into hospital and realty businesses with their new super specialty hospital in Saket. The 1000- Bedded Saket City Hospital, the first super specialty hospital of Spice Global, will be completed by 2014. The estimated investment of this hospital is Rs.1,400 Cr.

Spice Global’s Chairman Mr. Modi said that the group has already invested Rs.250 Cr for the development of its first phase. The first phase of Saket City Hospital will be completed by June 2013 with an estimated amount of Rs.400 Cr. The first phase will have 230 beds. Mr. Modi said that the group will raise the fund from internal turnover. Continue reading →

Real Estate Advisory Firm Maxxed Realtor Goes Online

Posted on January 22, 2013 by designer

Gurgaon based Maxxed Realtor, a real estate advisory firm, goes online as it launched new website Maxxed.in. The firm expects to widen its services to the NRIs as well.

Real estate advisory firm plans to launch new website.

Aiming the NRIs, real estate advisory firm launches new website.

With the aim to reach out the Non- Resident Indians (NRIs), Gurgaon based real estate advisory company has launched a new website. The real estate advisory firm also aims to create awareness about the brand among them.

Maxxed Realtor believes that they will be able to widen their services to the NRIs by using the online systems. While launching the new website, Mr. Sandeep Singh, Chairman of Maxxed Realtors, said that website has become essential for all sorts of businesses. He added that his firm never wanted to get behind others in this case. Continue reading →