Credai to shove for change in proposed real estate bill


cThe Confederation of Real Estate Developers’ Associations of India (Credai) will ask the Central Government for the adjustments to the proposed Real Estate Bill. If the present norms are implemented it could lead to big problems for big boys and will also hike the user-end housing cost in the market.

The Realtor governing body said a regulatory body is must to punish offender but some provisions in the bill are unfairly lodged against the developers and would also scare away small time developers for the market.

The body wanted these major issues to be discussed when the Bill is passed in the Parliament in the winter session.

The Centre should engage the developers in the roll out of affordable housing policies.  The body is keen to take part and contribute measures for the implementation of affordable houses in the country.

The major issue with some guidelines, the developers could end up being punished for a projects time period over which they have no control.

Credai suggested the ‘Residex’, a housing price pointer by the National Housing Bank, to get better parameters in order to be a more realistic reflection of the market.

The next meeting will open its doors to non-members and professionals such as real-estate consultants. The two-day event will also focus on sharing best practices with participants from Tier-II and Tier-III cities in the country.

Real Estate Sector to Get a Boost from Finance Ministry

Real estate sector is about to gain a small boost from the Finance Ministry. Finance Ministry plans to support the real estate sector by helping the real estate builders to secure bank loans.
Residential sector to thrive again

Residential Sector Thrives Again

Real estate sector will be boosted as the Finance Ministry plans to offer bank loans to the builders who have stalled projects at hand. The decision is expected to be made within a couple of weeks.

Latest RBI data show that the bank credit to the residential sector has grown by mere 12.1 % on year on year basis. This, in fact, is lower than the 15.9 % aggregate growth rate of bank credit. Continue reading

Chennai leads Indian Realty Sector.

In a recent report, property broking and real estate consulting firm Jones Lang LaSalle said the Indian property market is poised to attract about US$3 billion, almost double last year’s US$1.6 billion, from overseas buyers this year.

The Indian property market will see more investment from overseas this year as it still remains an attractive investment destination globally.

Of this, one-third would be from home buyers and the balance from investors. This is despite the fact that property prices in India are at an all-time high.

According to a recent National Housing Bank (NHB) survey, property prices in big Indian cities have increased by as much as 43 per cent to 166 per cent in the last four years.

NHB, wholly owned by the Reserve Bank of India, lends to home-mortgage companies. It also regulates and refinances social housing programmes. In its report, the bank said Chennai had seen the highest rise in prices at 166 per cent. Bhopal was second with a hike of 117 per cent and Mumbai was ranked third with an increase of 87 per cent.

What then brings overseas investment to Indian property, when prices are skyrocketing? The answer is simple: Despite the global turmoil because of the financial crisis, the Indian economy has remained robust, largely due to domestic-driven demand.

According to Jones Lang LaSalle, India’s strong economic growth, rapid urbanisation, growing middle-class population, demographic advantage and increased thrust on infrastructure has worked in its favour. Buying property is especially popular among Indians living abroad, who all seem to want a piece of the homeland. That is why Indian property shows are burgeoning around the globe.

Dubai-based Sumansa Exhibitions has been holding Indian property shows across five countries. And every year the number of developers taking part in the shows and the attendees has grown rapidly.

Sumansa Exhibitions’ chief executive officer Sunil Jaiswal says: “We have held shows in the UK, South Africa, Hong Kong, Dubai and Singapore. They have been very well received by both exhibitors and visitors alike.”

This year Sumansa will hold the Indian Property Show in Singapore on April 14 and 15. It will be held at the Suntec Exhibition Centre’s hall 401 and nearly 40 developers from across India will be part of the show.

More than 200 properties will be showcased during the two-day exhibition. Sumansa expects the number of footfalls at the event to be much larger than the 4,000 that turned up at its last year’s event.

NHB Residex to cover cities with over 1 million population

National Housing Bank (NHB) aims to cover all cities with population of over one million under its NHB Residex, which is the country’s first official residential property price index.
Currently, the NHB Residex gives relative movement of residential property prices in different localities in fifteen cities.
According to Mr S. Sridhar, Chairman of NHB, “By the end of next year, we want to cover sixty-three cities — all cities with over one million population”.
He also said that NHB Residex will be available on a half-yearly basis from now. The values for the index are derived from the market, and not from Government data.