Bye Bye to Mumbai
CREDAI is dissatisfied with the existing Mumbai real estate conditions. This unfriendly atmosphere of Mumbai leads CREDAI to shift their investment plan to Gujarat. Continue reading
Ahmedabad happens to be one of the 11 countries for which the reserve bank of India would prepare one index for commercial and one for residential properties. This is done to curtail speculations and expected realty bubble burst in the coming years. The RBI report on asset price monitoring system (ASMS) advised to formulate these indices two months back.
Many different countries such as Canada, France, us refer to these indices for realty prices.
The report says, RBI should start compiling a realty index and update it every quarter. To begin with, the report has proposed Mumbai and Delhi where property prices have skyrocketed to record levels. After these cities RBI would add 10 other cities which include Greater Chandigarh, Hyderabad, Chennai, Bhubaneswar, Pune, Jaipur, Kolkata, Lucknow, Bangalore and Bhopal.
The real estate price index once devised would become the primary index that could be perused by investors to gauge the performance of companies that are listed in the realty sector. The index can also help the investor analyze how real estate is performed in comparison to stocks and bonds. It can also provide information on the risk involved in a particular investment and returns that can be achieved from it.
The ASMS report has defined the deficiencies this indices would help overcome.
April 23, 2010
The real estate buyers are in big trouble in how to buy a dream home with these increasing costs of realty day by day. Since more than eight months, a 30-year-old professional, Nisha Parekh, has been searching for a proper and affordable residential space in Ahmadabad for her family but has not yet succeeded despite of aggrandizing her budget by Rs. 10 lakh, i.e, from Rs 25 lakh to Rs 35 lakh.
This is not the story of just one Nisha. It is about all the young buyers who failed to buy their dream home since the prices of realty shoot up by 30 percent in August 2009. Ms Pakekh, who till recently was working as a researcher with ISRO also added that due to these price hikes, she failed to buy her a dream home aven after increasing the budget with a decent amount.
One more witness of this price hike is Mr. Dutta, who noticed that in 2008 prices in Mumbai touched the sky. He added that after this hike, on recognizing lower volumes of transactions, the developers use inducements as goodies to attract home buyers. A price correction of around 15% could bring back buoyancy into the market, based on various indications. According to him, if this price rise continues, it will force the developers to finally come up with certain schemes and discounts that were done away with.
Also according to him, the realtors are majorly focusing on high profile projects which fall in the category of above Rs. 40 lakh costing but if seen from buyer point of you, they are totally unaffordable,
even with the economy stabilising and improved job security.
Leading interracial supply chain and logistics solutions provider firm Transport Corporation of India Ltd declared this week that its board advisory have approved the consolidation of its real estate & warehousing undertaking into a new company named TCI Developers Limited (TDL).
The company sent a press statement via email saying that the demerged entity would have properties and investments with a book value of Rs 50 crore. The company presently has realty properties in major cities including Delhi, Pune, Chennai, Bangalore, Ahmadabad, Nagpur and many more.
The management conceives that the company’s Real Estate & Warehousing undertaking has the capability to expand the company’s existing real estate into commercial ventures and create a focused entity to develop large scale logistics infrastructure projects like truck terminals,multi-modal logistics parks, free trade warehousing zones and a lot others.
By developing a separate entity like this, the management determines to provide strategic direction and raise adequate funds for its development plans on the strength of its future profitability and growth plans in the Real Estate and warehouse construction sector.
The company’s Executive Director Vineet Agarwal said in the press statement, “Investment in realty & warehousing is more capital intensive and yields return over a longer period of time in comparison to the services model of the logistics business. Going forward, on a long term basis we would look at raising funds from strategic investors and financial institution”.
