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, 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.

Brokers Hunt for Jobs as Slump Hits Realty Sales

NEW DELHI | BANGALORE: Broker in Bangalore bylane has just opened a stationery shop. He has named it ‘Smart Shop’, borrowing the name from the realty brokerage firm that he ran from the same premises until about two months ago. He switched to retail after his property business hit a rough patch following a slump in home sales. About 03-quarters of his revenues came from sale of apartments, the remaining from renting.

“With home sales dropping, it doesn’t make business sense anymore,” he says. It’s the same story in other big cities. In Mumbai, a mid-size broker has set up a small fast food joint to make ends meet. In Nagpur, a real estater has quit the real estate business and set up an ice-cream parlour. Their worries are not unfounded. While the large and established players in the property business have managed to stay, even during the slump, thousands of smaller players like brokers and agents are being forced to look for other jobs.

It also hit lakhs of people employed with such small outfits – each of which hires 5-15 people.With many brokers closing shops or reducing size, these people are out in the market, looking for jobs in sectors such as retail, banking, insurance and call centres. The real estate industry employs about 10 lakh people across the country, the majority in the unorganised sector.

In the first quarter of 2011, home sales dropped 17 per cent in Mumbai, 14 percent in Bangalore and 15 percent in Hyderabad. According to consultant Jones Lang La-Salle, unsold residential units in projects that are complete or are nearing completion in 6-12 months in Mumbai and Delhi-NCR are as high as 25 percent and 16 percent, respectively. In other big cities, including Bangalore, Chennai and Kolkata, the numbers range between 12 percent and 19 percent. Sales in tier-II and tier-III cities are steady, though there is some panic due to the increase in interest rates, which have climbed to about 11 percent from 8.25 percent a year ago.

“For smaller brokers, the impact of the current market factors is a lot more compared to the larger brokers,” says the president of the National Association of Realtors India . “Even for our members – who are fairly well-off – business is down 40 percent compared to 2009-10. But the smaller guys are in trouble and are setting up businesses that move on a daily basis. Many I know have asked their employees to look out” Ravindra Bramhe, chairman of the Maharashtra Property Brokers’ Association, says.

For whatever business is left in the market, there are hundreds of agents in queue. For instance, there are pockets on the Noida Expressway, near large projects, where real estate brokers can be seen sitting inside small tents, under the sweltering sun, waiting for business. Those who can’t afford to set up these tents can be seen on the roadside, running after every car that passes by, with brochures and flyers of projects in hand. Industry refers to them as the broker mandi. “All my friends and colleagues are now looking outside real estate before things get worse,” says Chaudhary. Many have returned to the insurance industry and others have found jobs with small call centres. A few have found employment with retail stores.

City Realtors used Brokers to Grab Lands from Farmers

AHMEDABAD: With each unaccounted income disclosures in the recent income-tax raids on four city-based groups, I-T detectives are disclosing newer shady froth of real estate business in the city. I-T officials have found that the raided real estate groups had given so much of freedom to brokers to grab lands from farmers. The property consultants would strike the deal with farmers, mainly to adjust the cash transaction, and realtor would appear only at the time of documentation.

Around 200 I-T detectives had on April 28 carried out a search and survey operation on 60 premises of four city-based groups, three of which are popular realtors, while the fourth group has one of city’s well-known jewelers as key promoter. The I-T officials searched many land brokers attached with the realtors and has got Rs 6 crore black money disclosure from one such broker from whom Rs 20 lakh cash was also captured. The total disclosures in the operation have already touched Rs 66 crore. Still more such disclosures are to come while premises of the fourth group are still sealed as the promoters are out on a trip to Singapore.

I-T officials have already struck gold in the first raid this financial year and have captured Rs 8.3 crore cash from realtors and property consultants. During the search at the jeweler’s premises, the officials found a difference of Rs 60 lakh in the stock officially declared and displayed at the shop. The department is now closing in on different ways evolved by realtors to avoid tax and ground black money. However, city realtors said that employing brokers while dealing with farmers is no new thing, but now these brokers are used to do foggy deals.

“A builder would book a land at the prevailing rate with token money given through brokers. The brokers would keep the farmers hanging and depending on the cash flow of the builder he would go ahead with the deal on his will,” the official said.

The department has earlier already found that the realtors searched used cheque transaction to record cash payments by the buyer against a property.