Punjab to Implement New Real Estate Policy: Says Badal

Sukhbir Singh Badal, Deputy C.M. of Punjab stated that the state government is about to introduce a new real estate policy by next month in Punjab.

Sukhbir Singh Badal said that Punjab government will launch a new real estate policy.  The new policy will direct the real estate to better development.

While addressing the real estate developers at a conference organized by CREDAI, Mr. Badal declared that the new policy will be implemented by 15th of December. Continue reading

Fire Capital Plans to Increase $ 100Million to Invest in Housing Projects

Fire Capital, the first private equity fund focused on the Indian real estate sector , plans to increase $100 million to capitalize in housing projects. The company will increase the money initially from its existing investors in the US to invest in tier-II and tier-III cities in states like Haryana, Punjab, Rajasthan, told the CEO Om Chaudhry.

“There is an intense scarcity of residential projects, as India would require at least another 30 million homes by 2012 to fulfil the existing housing need. We want to cut some bit of the demand and supply gap in small towns and accommodate to the middle income segment,” he said. Majorly homes are needed in the mid and lower income group. Fire Capital, established in 2004, raised its first fund worth $121 million in 2006, with an ability to invest around $250 million through the co-investment commitments of its investor base. All the funds are almost over. It is raising the additional amount to built 25-50 acres with each builder in small towns this financial year.

The real estate sector in the country was one of the biggest effected area of the global economic recession in 2008-09 as buyers kept away from the market and banks became panicky about giving loans. Although recovery in the sector is gaining speed, but the amount of debt in the industry is a big concern. According to industry estimates, real estate firms have built up a total debt of about 75,000 crore. Property developers are increasingly approaching private equity firms to complete both existing and new projects besides repaying a part of their debt.

IREO to invest 500 million dollars

Global real estate giant IREO will invest 500 million dollars in various infrastructure projects in India.
IREO is already one of the largest investors in the country’s real estate sector. The company currently has thirteen projects and is in the process of constructing an IT SEZ in Pune. The company has projects in many states including Haryana, Punjab, Tamil Nadu, Maharashtra and Delhi. The company said it would develop an eight million square feet housing project in the next one year.