Ban on registering the Unapproved plots in Tamil Nadu

The banning on the registration of plots which are still unapproved is back in Tamil Nadu with full force. The Madras Court on Friday clearly ordered to restrain all registrations of plots which are still not approved or those who apply for the re-registration with pending layout approvals. The law has been confirmed for the next three weeks and till no further notice comes.
Adding to the ban, the Justice M Sundar and the Chief Justice Indira Banerjee asked for all the details of the applicants of registration with unapproved plots in the violation of the court dated as on September 9, 2016, ban order.
The legal justice has stated that the decision for these issues will be taken after a special sitting which will be organised either on May 4 or on May 5.
The law has turned sour after the case that held on September 9, 2016, when the Chief Justice Kishan Kaul rapidly approved all the registrations of the plots which were still not approved or of those who tried to convert farmlands into housing plots without following the rules and regulations. Also, the bench held responsible all the officials who were personally liable for the violation of rules and regulations.

Why Attapur deserves your Investment

In the city of Hyderabad, Attapur is now developing as a new suburb which is an ideal location for the residential complexes now. The main reason behind this is the presence of several different colleges which makes it an ideal location for the students to live in. It is also really close to Jawahar Nagar, the educational hub of Hyderabad. Not only the students but the people who work in the IT Hub of Hitec City also prefer this place as it is in close proximity given the excellent transportation and the development of roads. The fact that Attapur provides people with a lot of housing options that too in affordably large sizes, make the residents travel 10km each day to and fro for their work.
Many people say that Attapur is the centre of their work and other public infrastructure needed by them. The location is in close proximity to their offices, their children’s schools, Airport, Koti and Secundrabad. The main purpose of each and every resident is solved because of this and people find no problem in travelling a few kms for every work present in equal distances.
When it comes to water and transport, the PVNR Expressway connected to the outer ring road makes it really easy for the people to commute.

Rates to take a step down alongside Noida expressway

In the NCR region, that is subtly attached to the capital region of India, Delhi there extends two expressways that are built to let the residents enjoy the great community and work from far off places while travelling through these roads. The eastern region has been accurately acquired by the 22km long through Noida and Greater Noida. The other one runs for 18km in the regions of Dwarka.

All these expressways are developed to join the regions of Delhi NCR in a better way providing the areas extending adjacent to them to the real estate developers to create more and more property in Noida and in Dwarka.

These lands were also supposed to be given to the developers who want to build commercial spaces and give away office for rent in Noida, Greater Noida, Dwarka, and Gurugram. This, however, made both the regions a large hub for the working class people who migrated here from all over the country. This gave a major boost to all the realty developers to build more and more residential complexes.

As soon as the areas were changing into residential complexes, the southern areas started to experience water and sewage problems. Developers were unable to provide their residents with the daily needs. However, the eastern region thoroughly enjoyed the regular facilities of water and sewage but could not gather proper funds. These developers tracked the funds from the farmers and this became a major reason to manage all the funds and thus fulfil the increasing demands of people. Also, after the demonetization process, those launched flats which were left in the middle of the construction period were unable to be delivered on the expected date of delivery. One Unitech project called Grande, located in Greater Noida was launched in 2007 and even after 10 years, it could not be completed due to inappropriate funds. Now as the government orders all the realty developers to increase the supply, these well-built flats would be sold at much lesser prices given its history of in accomplishment. These flats are built along with the Yamuna Expressway and were targeted towards those who wanted to have the luxury as they were built across an 18 hole golf course.

Due to these reasons and the post demonetisation effect where people just stopped thinking of following their dreams and the wish to buy a house vanished all of a sudden, lowering the rates seemed to be the only option. These low rates would fill the empty flats and would decrease the number of new flats that were to be constructed to meet the demands after the Union Budget of 2017.

Demands in Bangalore West take a major hike

The increasing commercial demand in the vicinity of West Bangalore is asking the residential sector to grow and lead the city to a better place.
The Mumbai-Bangalore Industrial Corridor, Greater Peenya Industrial Area, proposed Peripheral Ring Road (PRR) Metro Rail connectivity, Dabaspet Industrial Area, integrated townships along the NICE corridor, all these factors make the west of the city an investment destination. The plots in Bangalore in this region is owned by automotive parts, manufacturing, electrical, electroplating, pharmaceutical, chemical, electronics, building materials, aerospace components, garments, castings, forgings, foundries, and scientific instruments industries.
The whole area is well connected to the plunged road built over Peenya international airport, in the Mysore road. It is also connected to NICE corridor as well as the metro rail network.The well established and renowned market of Yeshwanthpur having a micro market with healthcare, retail and other public infrastructure gives a major push to people to come and live here.
Shrinivas Rao, CEO of APAC, Vestian Global services stated that the major factors that increase the rates of property in Bangalore are the presence of economic complexes and industrial sectors with the perfect physical infrastructure and amazing connectivity with all public convenience nearby. It has been noted that after 2008 this western area of Bangalore was influenced by a major hike in IT and ITeS companies which came and set up their base here. These industrial areas included Kumbalgodu and Bidadi which resulted in their nearby localities like Kengeri to become a popular residential choice for those who are employed in this area or the vicinity. According to reports and databases, Kumbalgodu Industrial Area, Bidadi Industrial Area and Global village IT park, together holds a total number of 80,000 employees. Also, after the rapid metro connectivity in this region, it has become very easy for people to travel and save their working hours. With all these factors in hand, the fact that region is well connected to the NICE Road, Outer Ring Road and Tumkur Road gives the place an additional advantage to grow more property in Bangalore west.
Currently, 79854604-lake_6the development that is being done in this region comprises of apartment projects and plots in Bangalore West. The Kengari residential sectors incorporate a large scale of apartment projects and townships in the mid segment value people. It is thus expected that the annual residential sale growth in this region is 6-8 percent while the rental yeild will be 4 percent.

Pune to set out new rules

The district consumer court has set out a new rule that an occupancy certificate will be issued by the municipal corporation in favour of an interested flat buyer, which will be sufficient to say that construction activity is successfully completed as per the sanctioned plan.
The court also ruled that a flat resident cannot seek his case to be treated as a “representative complaint” without first complying with the necessary requirements of such a plaint. Section 12 (1) (c) of the Consumer Protection Act needs a complete publication of a notice at the time of filing of the respective complaint about the complaint to be treated as a representative case.
A bench of O G Patil , V P Utpat, and Kshitija Kulkarni on Wednesday rejected the complaint by Kondhwa Khurd resident Anand Ranjalkar, who alleged that the builder of their housing scheme delivered him a 1bhk flat in Pune, which was of lesser area than it was originally agreed for, He also claimed that the builder had failed to secure a completion certificate. He also referred to common reliefs relating to the developer’s “failure” to form a society and execute a proper conveyance programme.
In July 2007, Ranjalkar had openly purchased a property in Pune under ‘Kumar Prithvi’ scheme, developed by Sukumar Township Development Private Limited in Bhavani Peth, Pune for Rs 28.7 lakh. The construction firm, as said and confirmed, delivered property to him on March 3, 2009.
In July 2011, after two years of getting possession, Ranjalkar filed a consumer complaint alleging the super built area of the flat was 39.87 sqft lesser than the area that was committed to him in the agreement. He said that he made the measurements done by an architect.
Lawyer Sunita Kinkar, representing the firm that supplied the possession, argued that Ranjalkar was bound by the agreement, to refer any further dispute to an arbitrator and that he did not comply with the norms for converting his complaint into a representative case for seeking common reliefs.
The bench, therefore, rejected Ranjalkar’s application, filed counter-arguments, for publishing a notice of a representative complaint first and held that the matter will then be treated as an individual complaint. “The complainant, in his individual capacity, cannot seek his justice as regards formation of society and execution of conveyance deed, etc. The after effects of the complainant will remain only as regards shortfall in area and completion certificate,” it held.

5 reason you should buy a property in Noida

After the utterly clumsy place of the capital region of India, Delhi and the densely overcrowded place for offices, Gurugram people are quite as well left with a choice of Noida. This is the reason that the residential sector of Noida Real estate is highly increasing since the past two decades. Noida is considered as a cheap and easy city to live in provided its easy connectivity to Delhi, Faridabad, Agra, and Haryana.
Noida has been considered as the most affordable place to live in given the high number of affordable flats here. There are many reasons that add to the fact but if we want to name a few we can easily do so by guiding the basic points.
The first one can be the extremely well maintained and thoughtfully built infrastructure. The infrastructure that has built the city is the basic reason for more and more citizens coming here. The excellent infrastructure makes it capable of being the next best thing in the world. The availability of lands for residential, commercial as well as infrastructural facilities is something that makes it top the list leaving Delhi and Mumbai behind.
Second reason is the reputed faces of developers who are eyeing in this place to make their new launches. Builders like Supertech, Unitech, Ansal, Emaar, MGF and now Godrej has made their new launches in Noida and Greater Noida. These flats suffice all the segments of the society and promise to be affordable with the availability of luxury.
Third and the most important reason that helps people to relax and invest in these lands is new rules against Forgery. New and quick rules have now been applied to the forgery cases of land. Earlier, the land disrupts were handled by the court’s jurisdiction which always tends to stretch such cases to a number of years, but now a sigh of relief has approached when all these cases are being handed over to the stamps jurisdiction.
The fourth best reason would be the easy connectivity of Noida to other regions like Delhi, Ghaziabad, Gurgaon, Agra. The major plus point Noida has is the rapid availability of Metro from Delhi to Noida. Also, the ongoing construction of Metro from Delhi till Greater Noida via Noida will add a golden point to all these and make it more convenient for those who travel till Greater Noida and will also decrease the traffic on roads.
The fifth point is for those who have a property in Noida or are living on rent flats in Noida. The major availability of marketplaces throughout Noida makes it very easy and accessible to live here.

Ghaziabad Growing its Infrastructure

Ghaziabad is popular for serving to the mid-segment and affordable housing segments. The very known housing clusters such as Kaushambi, Vaishali and Indirapuram are now a major part of Ghaziabad property in terms of increasing the real estate. Apart from this, the new upcoming residential locations include Raj Nagar Extension, and other areas along NH-24 which are beyond Indirapuram, and incorporates Crossing Republic Township.
The only thing bothering the developed locations is the lack of space for further high-level development. These places majorly include Kaushambi and Vaishali. The 1BHK Flats in Ghaziabad are now available to meet all the residents and is expected to have a healthy capital appreciation. The recent projects mostly kept its focus on upper-mid and premium segments offering them new upgradations which were beyond anybody’s expectations. The affordable residential clusters which are mostly 1BHK Flats and located in Raj Nagar, Shahibabad are in the average price range of INR 2,200-3,500 per sq ft. The upper end of the range is commanded by projects which are fully completed or nearly ending its construction in Crossings Republic, whereas the newly passed projects in NH-24 are in the lower price band of INR 2,200-2,600 per sq ft. The Raj Nagar Extension corridor on NH-58 is has a price range in between INR 2,600-3,000 per sq ft range.

Regular efforts for affordable housing for all

Metropolises such as Noida are under scrutiny and major comprehensive plans are being drawn to build better infrastructure. The Centre is facilitating adequate amount of funds for urban local bodies in states to make cities more liveable by providing them more and more properties in Noida. “We are taking into account the, roads, water supply etc. and creating a major five-year development plan,” Naidu said while talking about Bengaluru, Pune and Noida cities. He stated that more and more 1bhk flats in Noida will be created so as to provide the urban localities the desired liveable surroundings.

State participation is the major key to achieving adequate infrastructure and it is therefore the essence of realising the ‘Housing for All 2022’ dream. Affordable housing will be a success only when these type of states perform. Around 23,000 houses still lie vacant in Delhi alone because of lack of infrastructure and therefore their buyers. “Where there are people there is a shortage of houses and now there are houses but nobody interested to reside in them. It is proving to be a grave problem,” said Naidu. The main infrastructure concerns that needs to be seriously looked after are drainage, sewage, main roads, byroads, rain water drainage, maintenance of water bodies, etc.
It is now supposed to be joint effort by the Centre, states and local bodies. People only set their keen eyes on better quality and good services. If the states can figure out a method to provide the correct measurements then there’s no going back. “They should try and study the development patterns of several states. Learn from other’s mistakes,” suggested Naidu.

Hyderabad to promise a positive realty sector

The last quarter of 2016 struck all of India with major impacts on real estate sector. In terms of Hyderabad city, the real estate sector have been really promising this quarter. The initiatives taken by the government have been fairly positive towards the residential sector. After demonetisation settled down, the GHMC recieved a total of 154 crore as it begun its decision to accept the banned currency from property tax payers. This meant that the currency accepted from the defaulters could be used in a constructive manner.

Hyderabad’s realty experts have expected that Hyderabad commercial market will soon become the leading market all over India, latest by 2018. The main reason behind this is the healthy accomplishment of affordable housing which therefore boosts the residential market as well. As the newly reputed companies are starting to set their base in the city, the residential supply in Gachibowli, Hitec City and Raidurg will increase. These residential sector are expected to be consumed by the expected increase of employees from 4.3 to 4.7 lakhs within the next 12 months.

Bangalore: Girish Karnad Reflects

Few decades ago, people came to Bangalore essentially for the horse races. Once the racing season was over, the city emptied out. Bangalore had little else to offer.

Today the racecourse has been moved out of the city—a former chief minister’s dream of erecting a 100-story commercial tower à la Singapore in the course’s place was foiled by public outcry—and Bangalore throbs through the year with no concern for the seasons. Its roads are chock block with traffic, and its hotels crammed.

Bangalore started its life as a cantonment built by the British to keep a watchful eye on the nearby princely city of Mysore. It was European in its orientation, with wide roads, bungalows with pillared porticoes, and spired churches where everyone spoke English. And nearby was its “native twin,” Bengaluru, congested and cowed, where the lingua franca was the South Indian language of Kannada.

In 1956 the administrative map of India was redrawn on a linguistic basis with each of its nearly 20 languages defining a separate state. And Bangalore found itself the capital of a new Kannada state, at the mercy of political and economic forces it was unprepared for. The first to pour in were bureaucrats who needed offices, houses, and roads to run the new state, their numbers swelled by the philosophy of a socialist economy that led to the setting-up of government-sponsored enterprises, like the telephone and the aeronautical industries. Ancillary enterprises followed, leading to an influx of migrant workers.

DLF gains profit much after Goldman Sachs upgrade

Reuters Market Eye – India’s biggest real estate developer DLF (DLF.NS) rose 3.2 percent to 188.10 rupees after Goldman Sachs upgraded its rating on the stock to “buy” from “neutral” and raised its 12-month target price to 264 rupees from 252 rupees.

Goldman cited a pickup in residential launches, a recovery in commercial property, easing interest rates, and improved outlooks for asset sales as well as for operating/financial leverage as reasons for upgrade.

DLF’s share price is down 0.5 percent for 2012 while the BSE Sensex is up about 11 percent in the same period.

The upgrade has come close on the heels of DLF’s removal from the Sensex, which will come into effect from June 11.

India: ICICI Bank eyes growth after strong Q4

ICICI Bank, India’s No. 2 lender, posted on Friday a larger-than-expected 31 percent rise in quarterly profit and forecast a higher growth rate for domestic loans and stable asset quality for the coming year.

Loan demand in India is expected to pick up after the central bank last week cut its benchmark lending rate for the first time in three years to help revive sagging economic growth. The Reserve Bank of India has projected loan growth for Indian banks for fiscal year 2013 at 17 percent against 16 percent in the previous year.

ICICI expects its domestic loans to grow 20 percent in the year that began in April from 17 percent last year, driven by demand from companies for working capital, home and car loans, Chief Executive Chanda Kochhar told reporters.

“These numbers may give us comfort to keep what we have (but) we don’t have any particular plans to increase our stakes. We have concerns about the India story in general,” said Olsson Jan-Olov, portfolio manager of Carnegie Emerging Markets at Sweden, which owns ICICI shares.

“We have been a little hesitant towards increasing positions in India due to the overriding political and macro economic situation.” Earlier this week, Standard & Poor’s cut India’s credit rating outlook to negative from stable on hefty fiscal and current account deficits and political paralysis in Asia’s third-largest economy.

The negative outlook jeopardises India’s long-term rating of BBB-, the lowest investment grade rating. Indian banks are actively easing terms on loans for companies, as high interest rates and an economic slowdown has hurt the ability of some to repay loans on time. Power, textile, aviation, construction and real estate are the hardest hit sectors.

ICICI, which is also listed in New York and competes with State Bank of India and HDFC Bank, sees a “very small” and “minimal” pipeline for corporate debt restructurings, Kochhar said.

Indian Real Estate Market Among the Most Lucrative Sectors for NRIs

Indian real estate market is one of the most lucrative sectors for Non-Resident Indians to invest their foreign money. Moreover, this trend will continue for more 4-5 years as the consumption story of Indian real Estate market is not going to get over in near future leading to immense commercial growth prospects that in turn increase the demand for real estate. Although Indian Realty market is facing downfall, it is not correct to say that all cities are experiencing the same situation. It has been observed that some of the cities in India always have good chances of investment and these cities even in worst circumstances would be able to provide good investment returns. One more factor that attracts NRI’s to invest in India is the bigger geographical area. Unfortunately, NRI’s put their money into property prevailing in big cities and metros, but they should be informed appropriately about the outskirts of the big cities and even about the tier-2 cities that offer a great deal of real estate investment in present scenario.
Not only this, but the recent significant depreciation in the value of rupees in respect of dollar/pound/euro has given a profitable chance to the NRI’s to clandestine their foreign earned money into some good  investment plans. However, quite a few times NRI investors face some issues with liaison services in real estate industry, but once these intermediary services will improve more and more foreign investors would be lured to purchase property in India in lieu of high returns.
Foreign investment is also a good sign of growth for Indian Real Estate market as well. In this current state of affairs when the Indian Realty market is experiencing a huge downfall, the foreign investors seem to be the ray of hope. With more and more NRI’s investing in small and even big commercial properties in India, the Real estate market will soon see a huge intensification. It has been observed from past trends that around 70% of foreign investment has been done in residential sector, but according to the Indian developers there are various commercial investment opportunities also existing for the foreign investors who wish to set up a business in India.
However, it has been told by the real estate experts that present time when foreign currency is in appreciation, it is the encouraging time for NRI’s to make some good investment in realty market in India. Office plots, residential spaces and even apartments are easily available for NRI’s.
Indian property developers also have a notion that the downfall of realty market in India is the result of the global meltdown and depreciation of rupee. Their belief is not vague, but they also consider that ambiguities in western economies led to the build-up confidence of NRI’s into Indian market and they are keen on purchasing property here. Their investment is a huge support for Indian Realty market and soon with the rupee appreciation these investments will strengthen the economic situation as well.

Bengal Urban Land Policy: Seeks 30% Reservation for Low-Cost Housing

The promise of Ma, Mati, and Manush governance by Mamata Banerjee may fall short of the second M-word, meaning land — at least for real estate developers in the state’s capital city. For, the West Bengal government has now decided to bring in an amendment to the Urban Land (Ceiling and Regulation) Act (ULCA), 1976, an eyesore of developers for quite some time. The proposed alteration will stipulate the developers to reserve 30 per cent apartments in big housing projects for the low-income group (LIG). Industrialists have been seeking a total repeal of the Act, introduced in 1976 to prevent hoarding or excessive holding of land in urban centres.

According to the Act, the ceiling limit on vacant land in a category ‘A’ city like Kolkata is 7.5 cottah or about 500 square meters. The demand for repealing the ULCA was raised for the first time by Godrej Properties chairman Adi Godrej, at an industry meet within the first month of Banerjee taking over the chief minister’s office.

Much to the disappointment of the developers, urban development minister Firhad Hakim has now totally ruled out the possibility of repealing the Act. “We are not going to abolish the Land Ceiling Act,” he said. “Instead, we will give permission to developers for purchase of land beyond ceiling, provided they reserve 30 per cent housing for low-income housing segment.”

As for the Trinamool dispensation, it has also decided to do away with the concept of public-private partnership (PPP) — an idea pioneered by the earlier Left Front government under Buddhadeb Bhattacharjee. Instead, “the government will allocate land to the highest bidder and for the rest of the big projects the state will build on its own,” according to Hakim. Notably, in spite of the Land Ceiling Act, the earlier government had windfall gains by allotting land in prime areas of city.

For example, three prominent government agencies involved in land deals in and around Kolkata — the Kolkata Metropolitan Development Authority (KMDA), Kolkata Municipal Corporation and West Bengal Housing Board— signed deals worth more than Rs 18,000 crore, for over 5,250 acres of land during the period in little over two years. In fact, KMDA was credited with signing deals, worth more thanRs 800 crore with real estate developers on a single day. “The process of land allotment slowed substantially over the last two years. First, it was due to elections,” said a city-based real estate developer. “Second, it was due to lack of vision and policy of the new government.”

2012 is a Tougher Year for Fund Raising

Due to global issues, liquidity is becoming a problem. Though the phase is temporarily, the concern cannot be ruled out. Indian real estate sector is banking on the fact that change will take place and market will come out of the situation. The fact of the matter is that next 12 months and in fact 2012, does not look too bright for the sector.

The global debt worries have led to more and more uncertainty. In the last few months, the sector has been plagued by a potential liquidity squeeze. The situation is very unsettling and the fear is that we might end up looking at the year 2008 situation. It is certain that banks will get into selective lending with more strict verifications. In 2012, we are expecting that interest rates might get stabilized but disbursal of home loans will come down.

As RBI has been steadily increasing interest rates, debt for developers is becoming expensive. Also many banks are right now not keen to lend to real estate projects. Due to global uncertainty even private equity is cautious of investing in India. In fact, companies have started looking at alternative routes of fund raising. And many a deals are being done as structured debt deals hiding behind the facade of an equity structure.

In structured debt deals, the companies—investor and investee—sign two agreements. In the publicly announced agreement the investor—a PE or a VC fund—buys an equity stake in the company; and in the second contract they have buyback clause, which allows investee company to buy back its shares from the PE/VC fund at a price that will give the fund a return of about 20% per annum over the duration of the investment.

All signs currently suggest that 2012 would not be an easy year. As debt becomes more expensive and PE funds find it difficult to deploy cash due to global economic conditions, we would see higher number of structured deals taking place in 2012. Though these structured deals are being done, they have their share of problems. The problem is when the side-contracts are not honoured.

Indian Realty Sector growing very Fast

The real estate industry is expected to reach US $180 billion by 2020, said analysts and industry experts at a seminar organised in the city.

As part of the Management Development programme, the students of the Acharya Bangalore B School attended a three-day seminar on Real Estate Management that started on Thursday.

Realtors and analysts from the field also attended the seminar to provide the students with future prospects and various professional options.

Presenting a paper on ‘Internet and Real Estate’, Business Head of 99Acres.com, Vineet Singh said, “As per reports by real estate intelligence firms, India is ranked as the fifth most attractive destination for future real estate investments in a list topped by China. The Indian real estate industry is expected to reach US $180 billion by 2020. This is a good platform to involve both academia and industry to facilitate dual growth and understanding. We get to know what the emerging new talent holds and they learn about the industry perspective.”

Industry experts from Brigade Group, Sobha Developers and other leading real estate organisations attended the event to train the students. “I’ve always had an interest in this industry as my family deals with real estate. But at this seminar I could ask a few basic questions and get industry relevant answers,” said Niharika Singh, a student.

In March,India Inc. invested $2.7 bn overseas.

Overseas investments by Indian companies stood at USD 2.77 billion in March, up 37.6 percent over the previous month, with Binani Industries, Mercator Lines, HCL Technologies, Varun Shipping, Hexaware Technologies, and Tata Steel emerging as major investors.

As many as 489 overseas investment transactions were carried out by various companies in March, as per the Reserve Bank data released Wednesday. Binani Industries invested a total of USD 323.34 million in its two wholly-owned subsidiaries based in Luxembourg and the US that are involved in financial, real estate and manufacturing services.

Mercator Lines, which is into agriculture and mining, through its joint venture-Mercator Offshore PTE- invested USD 150.15 million in Singapore during the month, it said. ABG Shipyard, through its wholly-owned subsidiary invested USD 80 million in Singapore.

HCL Technologies, India’s fourth largest software exporter, invested USD 60 million in Bermuda through its wholly owned subsidiary for providing financial, insurance and real estate solutions.
Likewise, Varun Shipping which is into transport, storage and communication business invested USD 60 million via its JV in Cyprus.

Hexaware Technologies invested USD 38.7 million through its wholly-owned subsidiary in Germany to provide financial, insurance, real estate solutions, it said. Tata Steel invested USD 35.5 million in Singapore through its wholly-owned unit, it said.

Dhanlaxmi Bank says will cut costs, not shutting branches.

Indian private lender Dhanlaxmi Bank said it does not plan to shut down branches or shrink operations, but has initiated steps, including salary cuts, to control costs as it grapples with pressured margins.

“We have no plans to shut down any of our branches. We want to grow,” PG Jayakumar, the bank’s chief executive, told reporters.

The small-sized bank also plans to surrender excess real estate in metros and major cities.

Last week, the Economic Times newspaper reported that the bank plans to shut 30 branches in major cities as part of a revival plan.

The bank swung to a net loss of about 370 million rupees ($7.2 million) in the December quarter as costs soared and revenues shrank.

Consumers and businesses have rushed to park their money in long-term deposits, burdening banks with high costs, while lenders have been struggling to grow their loan books to boost profits.

“Strain on profits in one or two quarters is not going to affect us badly,” Dhanlaxmi said in a statement on Monday.

It plans to focus on loans against gold, small and medium enterprises and retail businesses for growth and expects a net interest margin of 2.5-3 per cent in the current financial year that ends in March.

The bank said it plans to raise 2 billion rupees each of tier 2 and tier 1 capital in the fiscal first and second quarter, respectively.

Shares of the bank, which has a market capitalisation of $126.3 million, ended down nearly 2 per cent in a weak Mumbai market on Monday.

Piramal Realty Acquires Gulita For 452 Cr From HUL.

Piramal Realty has acquired Gulita – property in south Mumbai from Hindustan Unilever for R452Cr. Piramal Realty is planning to develop high-end luxury apartments on the one-acre land and Ajay Piramal might keep a part of it for his personal use, given the premium location, according to ET.

Gulita is a one-acre property in Worli Seaface, which used to house a training centre and private residences of senior executives of Unilever’s Indian arm.

Gulita was built in 1968 and the land was taken on a perpetual lease from the Brihanmumbai Municipal Corporation–the Mumbai civic authority. The property was put on the block after the company set up a new campus in the suburbs of Andheri and shifted its training facilities there.

Since HUL put the building on block, it has attracted several buyers which included Anil Ambani, Gautam Adani, Oberoi Realty and Sahara.

Last year, Piramal Realty acquired a plot of land in Mumbai from Mafatlal Industries Ltd for about R760Cr. Khushru Jijina – MD of piramal Realty said that the company plans to develop five residential projects in Mumbai at an estimated investment of about R1500Cr. The company will develop about 30 million sq. ft. through land acquisitions funded from its own sources.

Recently in real estate space, Housing Development and Infrastructure Ltd sold 2 acre plot in Mumbai to Adani Enterprises for R900Cr to repay its debt. Ascendas Property Fund Trustee Private Limited, the Trustee-Manager of Ascendas India Trust (a-iTrust) has acquired two operating Buildings in Hitec City 2 Special Economic Zone in Hyderabad, India, from Phoenix Infocity Pvt Ltd for R176.5Cr; while IL&FS Investment Managers bought Logix Group’s four office buildings in Noida for R600Cr.

 

 

JLL: Residential Realty Market is set to appreciate in 6 months.

Jones Lang LaSalle India, a global research firm in the real estate sector, says that prices of residential units in India in the next six months should witness marginal appreciation. JLL says: “Over 60% of residential launches in the Top 7 cities (mostly in cities other than the NCR and Mumbai) are priced in the range of Rs 2,000-4, 000 per sq. ft., which meets the demand of middle-income buyers.”

At the same time, the RBI has given sufficient indications of probable cuts in key rates during second half of 2012, which will improve affordability for homebuyers and provide lower interest costs for developers. This will help in increasing the demand for residential units in the country. JLL also argues that even in the present bad condition, prevailing absorption rates are at nearly 10-12 %, which translate into an average absorption period of 8-10 quarters for a residential project. “This implies that at average prices, any average residential project should be sold out before construction is completed in around three years from the launch.”

JLL says that new project launches, which were slow in Mumbai and the NCR in the first half of 2011 due to approval and land acquisition issues, have now started to pick up. This should improve cash flows for developers having large land banks during 2012. A number of builders have acquired huge land banks on borrowed fund. As the builders pay huge interest rates, nearly 15-18 % on the borrowed fund, the servicing of debts has put huge strain on their finances. Any improvement in off-take is likely to release them from the financing pressure.

In the present slowdown condition, despite bad financial conditions, builders are not cutting the prices as in most parts of the country; they have priced their projects at nearly cost prices. “With rising input costs, developers do not want to sell below a threshold, which does not justify their minimum replacement returns,” JLL says. “This leaves home buyers with a small window of opportunity – the next six months – when home prices should witness marginal appreciation. After six months, a second wave of high appreciation is predicted.

However, in some of the micro markets in Mumbai and the NCR, the appreciation in prices was even sharper. In the last two years, in some of the markets like Gurgaon’s Dwarka Expressway, prices have almost doubled.

Overall, the Indian real estate market went through a slowdown in the last one year. But, all the predictions of a hard landing for the residential property market in 2011 and 2012 have failed to come true, so far.

Two Indian Real Estate Deals in Asian Top Ten list.

Two real estate deals in India — the sale of Leela Kempinski Kovalam and Noida’s deal with Wave Mega City Centre – have been ranked among the top ten in their categories across Asia according to a recently published study by Real Capital. Both deals took place in August 2011.

Real Capital tracks and analyses real estate deals worth over $10 million across apartments, hotels, retail, industrial, office and development projects over the world. The Purchase of Leela Kovalam by Saudi Arabia-based industrialist Ravi Pillai, which was pegged at about Rs 500 crore ranked 10th in Asia-list of largest hotel sellers.

Bangalore and Mumbai have been named among the most active Asian markets in the office space.

Delhi was ranked sixth and Mumbai eighth in the most active Asian apartment markets. Tokyo tops the list followed by Singapore, Hong Kong, Osaka and Beijing. While Chennai comes in at eighth position among active hotel markets, India did not rank in the big league when it comes to retail deals.

Lemon Tree: To open 100 hotels in India by 2020.

“By 2020 we plan to open 100 hotels in India with an inventory of around 10,000 rooms,” Lemon Tree Hotels Chairman and Managing Director Patu Keswani told reporters on the sidelines of the Hero Mind mine Summit 2012.

Lemon Tree Hotels is planing to open 100 hotels in India by 2020, with a total room capacity of 10,000.

The company also said it has put on hold plans to foray into real estate in partnership with US-based investment firm Warburg Pincus.

This year the company is opening two more hotels, he said without sharing details on the investment that would be required for the expansion.

Keswani, however, said the company plans to raise money from financial institutions or may even go public in the next two-three years. “In the next 2-3 years, we might look at public listing,” Keswani said.

At present, the company’s total room capacity is around 2,000. On the company’s proposed real estate foray, he said: “We have put that housing project in cold storage. It is not the good time to start a project like that.”

In April last year, the company had announced that it will foray into real estate with plans to invest over Rs 1,400 crore to launch housing projects in India in partnership with US-based investment firm Warburg Pincus. “We will wait for the Indian economy to become better and interest rates to come down…I do not see the situation improving in another 2 years,” he added.


Indians on top of the first time property buyers list in Dubai.

While Dubai remains a hot and one of the favourite destinations of Bollywood. It has definitely fascinated other strata of India as well.
As per the Dubai real estate data, No other national has purchased property to the tune Indians have in 2011.

Indians have topped the list of first-time property buyers in Dubai in 2011, having bought properties worth 2.1 billion dirhams (Rs 292 crore), Dubai Land Department data has revealed.

 

The Indians topped the list of new investors in Dubai properties and conducted 927 transactions worth 2.1 billion dirhams. This represents 16 per cent of the overall value of transactions carried out by new investors,” the department said.

 

While it did not mention the nationality of the second largest investors, the department said the UAE nationals came third, having invested 1.575 billion dirhams (Rs 219 crore).
According to the department the new money flowing into the Dubai property market last year totalled 13.13 billion dirhams (Rs 1,825 crore).

 

Meanwhile, Asian investors formed 68 per cent of the overall number of investors in the sector, with the UAE nationals topping the list with 35 per cent representation of the overall number of Asian landlords, followed by Indians at 20 per cent.

 

If one can’t afford a home, then they should not buy one!

Journalists are misleading the home buyers, said the savvy second-generation developer, reclining on the deck of his corporate yacht, anchored off the Gateway of India, sounding truly concerned about the fate of middle-class Mumbaikars. With all sincerity, he explained how the prices of land have gone through the roof, how the cost of material has shot up and how even the labour cost has nearly doubled. Of course, he didn’t talk about increasing profit margins. “When all input costs are going up, how can the price of real estate go down? By writing reports that realty rates could go down, you are only delaying their decision. And finally, they will have to pay an even higher price for the delay,” the young turk clad in designer suit said, adding as an afterthought, “Do they have a choice?”

I think they do. The choice of not buying a home at all; the choice of renting it out! What does rising input cost and galloping interest rate mean to someone who opts out of the realty acquisition spree? Like this friend, who owns a 1BHK apartment in Seawoods, New Mumbai, and has for long been planning to move into a bigger home. A 2BHK apartment in the nearby Seawoods Estate costs upward of Rs1.4 crore and even after selling the existing flat, he would have to take a loan of Rs1 crore to move into his dream house — with a monthly instalment of at least Rs1 lakh dangling on top of his head like a sword. The monthly rent for the same apartment is just Rs20, 000 — a saving of Rs80, 000 every month, not to mention the pressure of servicing a gigantic loan. It would be a pity to buy your dream home, and lose your sleep over it.

In these days of fluctuating fortunes and unstable jobs, locking into a lofty home loan may not be the best idea and living on rent may well be a smart move. Leave aside complicated calculations and the conventional wisdom that realty prices only go up, and living on rent makes better economic sense too. Imagine paying a fat instalment for five years, and finding that the price of your flat has remained the same, or even worse, gone down by 30%. Live on rent and not only do you get to keep all that money which would largely make the interest component of your home loan, but you also have the flexibility of moving to a new address, or a new city.
Not that we are new to the concept of living on rent. A good percentage of the population in the west lives on rent, as did a good percentage of Mumbaikars too, till just 25 years ago. Very few people had the resources to buy a house, and one’s own home was a result of a lifetime of hard work. The rest rented it out, and home loan companies did not even exist.
Should every Mumbaikar make the choice of living on rent, the young Turk on the yacht has a lot to worry about  not only about repaying his creditors, but also the fat installment for that anchored yacht!

 

“India is a top focus for Realty Moghul” says Trump Scion.

Trump’s eponymous real estate group expects to sign multiple deals for Indian residential projects and hotel contracts over the next five years, despite a market riddled by regulatory uncertainty and bureaucratic red tape.

“India, among other emerging markets, is the biggest push for our organisation,” Donald Trump Jr, an executive vice president of The Trump Organization, said on Wednesday.

Trump, whose portfolio includes projects in South Korea and Turkey, in addition to hotels and skyscrapers in the United States, is close to signing a couple of deals with Indian developers, the younger Trump said without providing details.

“Equity investment will depend on individual projects and partnerships but first we would like to form relationships which allow us to understand the processes and spectrum better,” the 34-year-old said on the side-lines of a hotel conference.

The developer entered India last year with a joint venture partnership with Rohan Lifescapes to build a 45-storey luxury residential tower in Mumbai.

However, work on the tower, which will bear the Trump name but involves no equity from the U.S. developer, has been halted for about nine months since authorities said it lacked the necessary permits, a common problem in an industry wrapped in red tape.

Indian developers are often hit by changing regulations. In Mumbai, for example, the scrapping of a rule granting extra floor space in exchange for providing public parking facilities has meant many projects must reapply for clearances.

But Trump, whose father is worth an estimated $2.9 billion, according to Forbes, says the lure of an emerging India outweighs the regulatory headaches.

“The Indian market is starved for a good luxury product and it needs a brand like ours,” he said.

“I like the regulatory changes I am seeing. It may slow things down a bit but will create a level playing field and will help in eliminating the unknown for an outside investor coming in,” he said.

The company plans to focus expansion in the country on luxury residences and hotels, and would look at cities including Mumbai, Delhi, Bangalore and the state of Goa.

Some local players such as privately held Lodha Developers and Godrej Properties are emerging as strong brands in India’s luxury housing space, but the market remains fragmented.

And despite a slew of interest rate hikes that have cooled India’s overall property market and hit luxury developers particularly hard, Trump is bullish.