Comments for India Investment Property

Comment on Mumbai To Get Its First Rental Housing Project by riathareja

riathareja — Tue, 30 Sep 2008 07:57:11 +0000

The Maharashtra Housing and Area Development Authority (Mhada) plans to sell 600 so-called budget flats in Mumbai around Diwali and expects at least 200,000 applications for this, an indication of the demand for affordable housing in one of India’s most expensive real estate markets.The flats, which will be 225 sq. ft and 600 sq. ft in size, are located in Sion and Vikhroli in the city. Property prices in Sion range between Rs6,000 and Rs12,000 a sq. ft. Mhada’s flats will be priced at Rs2,000-2,200 a sq. ft. Buyers will be picked from applicants through a lottery.“There is a huge demand for such affordable housing in Mumbai where real estate prices have become unaffordable… We got overwhelming response from our sale earlier this year and have decided to sell some more flats this year,” said Honaji K. Jawle, chief operating officer, Mumbai Board, Mhada.For more view- realtydigest.blogspot.com

Comment on Tier III Cities Emerge As Next Promising Investment Option by riathareja

riathareja — Tue, 30 Sep 2008 07:53:21 +0000

With the coming of a Rs 5,000-crore hi-tech city project, Kochi will soon attain a global city status. Bangalore-based Sobha Developers have signed an MoU with the state government for developing this hi-tech city. Sobha Hi-Tech City will be an integrated city with focus on research and development, knowledge dissemination, information technology and pure and applied sciences. The city is located close to the National Highway 47 bypass near Maradu in Kochi. It will have seven million sq. ft. of knowledge park, commercial space to provide business-friendly ambience, hospitality and leisure projects, entertainment and amusement facilities, a marina and residential complexes. The project will be completed in eight years and would generate 75,000 direct jobs.For more view- realtydigest.blogspot.com

Comment on Government In A Fix Over Lehman Realty Assets by riathareja

riathareja — Tue, 30 Sep 2008 07:51:40 +0000

Developers such as Unitech, Peninsula Land, HDIL and Future Capital, the financial services arm of the Future Group, are in talks with investors including some leading private equity funds for raising investments for their projects, after the collapse of Lehman Brothers, whose third party fund, Lehman Brothers Real Estate Partners had committed an investment of over $ 1 billion to these companies. Even the private equity players are equally upbeat about property investments. Mr. Bharath Banka, Chief Executive of Aditya Birla group’s private equity division, “The current credit crisis, which is expected to continue for a few more months, opens up avenue for private equity firms to make large investments in the real estate sector. Long term returns will be higher in real estate for investments made during this point of economic cycle.”For more view- realtydigest.blogspot.com

Comment on Akruti Looks For Bus Terminals And Warehouses by riathareja

riathareja — Tue, 30 Sep 2008 07:50:23 +0000

Investing in immovable property in India is no more a tough task with difficulties due to a combination of factors. A meticulous planning at the initial investment stage can make the whole process lucid. While on the road way of making investment in this growing market, people are advised to do research online on the real estate market. Extensive research ensures that the investment has been right and in time to come and will allow a good return. Foreign resident of Indian Origin can also invest in this sector. Such investors are advised to discuss the conditions governing purchase and sale of immovable property by Non-Resident Indians and persons of Indian origin before they start their investment venture.RBI grants permission to foreign citizens of Indian origin to invest in local funds in real estate on submission of necessary applications provided such investments are for use of residence.For more view- realtydigest.blogspot.com

Comment on Professionals Prefer To Live In Gurgaon by riathareja

riathareja — Tue, 30 Sep 2008 07:48:42 +0000

DLF CITY, one of the most posh colonies of Gurgaon, has been going through its worst nightmare for the past three years, due to the nearby garbage dumping site. The Haryana Urban Development Authority (HUDA) dumps more than 300 tonnes of the city’s garbage into the Aravalis everyday within 500 metres of DLF Phase I and DLF Phase IV.The DLF residents have already staged a number of demonstrations against the illegal dumping of garbage on Gurgaon-Faridabad road.“Residents are already suffering from various skin allergies and cases of dengue are also being reported frequently from the area,” informed Harish Capoor, who is a resident of DLF Phase I and has been fighting against this menace for more than two years now.For more view- realtydigest.blogspot.com

Comment on Mahindra Lifespaces Mulls Entering Affordable Housing Segment by riathareja

riathareja — Tue, 30 Sep 2008 07:47:36 +0000

For all those who are dreaming to own a house despite the high home loan rates, there is some good news. The costs of residential properties across four major markets of the country have stabilized during the April-June period. According to the report by global realty consultant, Cushman & Wakefield (C&W) on India’s residential sector, the availability of new supply, shrinking demand from investors and increasing rates have led to the stabilization of capital values in both high-end and mid-range residential segments across the National Capital Region (NCR), Bangalore, Mumbai and Pune in the second quarter of 2008.For more view- realtydigest.blogspot.com

Comment on Markets On Backfoot by riathareja

riathareja — Tue, 30 Sep 2008 07:45:57 +0000

Realtors are now taking a more efficient and cost cutting route in the development of their projects. They are trying out new strategies to improve margins. While some are procuring expensive capital goods directly from manufacturers, others are going to China to get high quality yet cheaper material. In the last one year, developers have seen their margins shrink progressively with input costs going up tremendously. Margins for developers were high in the 60-70% range for most projects (and over 100% in some) a couple of years back. Today, they are down to about 30-40% across India, says Mr. Anuj Puri, chairman and country head, Jones Lang LaSalle Meghraj (JLLM).For more view- realtydigest.blogspot.com

Comment on Overbuilding Promises A Kick In The Gut For Realtors by riathareja

riathareja — Tue, 30 Sep 2008 07:44:42 +0000

The current scenario of the Indian real estate market has made buyers hesitant with regard to the purchase of residential property. This has forced developers to go out of the way to sell their properties. Just three months ago, no developer was willing to go on record that they were offering cash discounts to home buyers. Reason being, they did not want to give it away that property prices were under pressure. However, falling sales and rising inventory over the last 18 months have forced them to offer cash discounts, besides other measures in this buying season.For more view- realtydigest.blogspot.com

Comment on Golden Peacock Award To DLF by riathareja

riathareja — Tue, 30 Sep 2008 07:42:54 +0000

Real estate developer, DLF has threatened to withdraw the thirty three thousand crore rupees Dankuni township project, as no progress has been made in the case for months and the company is yet to get ownership of the land. State urban development minister, Mr. Asok Bhattacharya confirmed that DLF had increased pressure on the government. “The project is not making any headway and DLF is telling us that they’ll pull out if the situation continues,” he said, pointing out that with the entire district administration in Hoogly focusing on Singur, hardly any other work is getting done.For more view- realtydigest.blogspot.com

Comment on FII Stake Not Outside FDI Limit by riathareja

riathareja — Tue, 30 Sep 2008 07:15:51 +0000

Even before the globally-popular real estate mutual funds (REMF) take off here, RBI has raised a red flag. It has argued that the funds would lead to circumvention of foreign direct investment (FDI) in real estate that places restrictions on foreign investors. Although 100% FDI is allowed in realty projects on the automatic route, the conditions have to be adhered to. The banking regulator has said it amounted to indirect flow of FDI in violation of the spirit of the conditions laid down by the government. RBI now wants the government to take up the issue with market regulator Sebi which had issued the guidelines on REMFs about two months ago. As per the Sebi guidelines, REMFs can directly invest in real estate, in mortgage-backed securities, securities of companies engaged in dealing in real estate assets or in undertaking real estate development projects and other securities. However, it has mandated that at least 35% of net assets of the scheme should be invested directly in realty assets. The much-awaited scheme has not found takers but some fund houses are working on the scheme. RBI’s concerns about flow of foreign investment in realty are not new. It had earlier written to the government to make Foreign Investment Promotion Board’s clearance mandatory for FDI into the sector.For more view- realtydigest.blogspot.com