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Home - Profile - Archives - Friends - Free RSS ReaderDEVELOPERS MOVING TOWARDS GHAZIABADPosted on Tuesday, October 26, 2010 at 08:15 in Indian Real Estate - 0 Comments - Post Comment - LinkAfter Noida,
Greater Noida and Gurgaon, it is the right time to invest in Ghaziabad, which is developing into a hot
destination and is also known as the gateway of Uttar Pradesh. The budding city
is slated to have multiple projects like a number of shopping malls,
multiplexes, and residential and commercial development. Keeping the pace of
development and rising demand, a lot of developers and builders are moving
towards Ghaziabad, which is 19km east of Delhi and 46km southwest of
Meerut. For more information about real estate, property, residential property, realty firm, commercial property, commercial real estate, real estate developers log on to http://www.zameen-zaidad.com
Paramount Group have recently unveiled their new project Floraville in NoidaPosted on Monday, April 5, 2010 at 15:22 in Indian Real Estate - 0 Comments - Post Comment - LinkParamount Group have
recently unveiled their new project Floraville, which is coming up at Sector 137, Expressway-Noida. The project aims
at providing luxury at affordable prices. Ashwini Prakash, executive director, Paramount Group, at the
launch function said, “The new era demands an amalgamation of mod- ern
amenities, luxurious living and
green environment at affordable prices.“ Courtesy:- HT Estates dt:- 03-April-2010 For more information about real estate, real estate india, Indian real estate, property, property in india, Indian property, property for rent, rented property, apartment for rent, rented apartment, flats for rent, rented flats in delhi, property for sale in delhi, apartments for sale in delhi, flats for sale in delhi homes for sale in noida, flats for sale in noida, real estate in noida, investment option in noida, real estate consultant in noida, realty firm houses in noida, residence in noida, residence in delhi, residence in gurgaon, flats for rent in gurgaon Log in to http://www.zameen-zaidad.com/ And http://www.propertycafeteria.comMumbai to lead office space take-upPosted on Tuesday, March 2, 2010 at 11:50 in Indian Real Estate - 0 Comments - Post Comment - LinkMumbai and Delhi NCR are expected to
absorb about 20-22 per cent of the projected demand for office space
during 2010-2012, says a report The year 2009 would be marked in Indian real
estate as one of the most difficult periods for the industry in recent times.
However, despite the turbulence and uncertainty, there are momentous
opportunities to learn through the turn. With signs in the global economy
that the worst may be behind us, commercial office space
in India has begun to consolidate, focusing on affordability, diversification
and delivery, says a report by realty consultant Jones Lang LaSalle Meghraj. The year witnessed a considerably
lower net absorption of 19.6 million sq ft against a robust net absorption of
33.1 million sq ft in 2008. Quarterly absorption rate was
recorded at 17 per cent in the fourth quarter of 2009, which has been
increasing steadily after hitting bottom in the first quarter of 2009. Indian real estate witnessed net
absorption of 8 million sq ft in quarter 4, 2009, nearly four times the lowest
witnessed in quarter 1, 2009. With lower rents in IT as well as non-IT spaces, the opportunistic demand is led by domestic occupiers, who
have expanded their real estate portfolios in various Indian cities. The sunshine
sectors telecom, pharmaceuticals, healthcare and manufacturing leased large
spaces in various cities. A larger share of transactions happened in
operational vacant stock rather than under-construction projects in 2009,
contrary to the trend observed during 2007 and 2008, when options in
operational office space weren't available to the tenants in the same measure. By end-2010, Mumbai is expected to
lead in terms of operational office stock in the country, pushing the leader,
Bangalore, to second position. About 85-90 per cent of the near
term supply of 68.3 million sq ft, which is expected to become operational in
2010, is in advanced stages of construction with more than 50 per cent of the
structure completed at end-2009. The pace of supply infusion is
expected to outgrow the demand in the medium, term thus creating a condition of
oversupply across the secondary and suburban micro markets. Net absorption of office space
is projected to grow at a compound annual growth rate (CAGR) of 29 per cent
during 2009-2012, increasing from 19.6 million sq ft registered in 2009 to 42.2
million sq ft in 2012. While Mumbai and NCR Delhi are
expected to absorb about 20-22 per cent of the projected demand during
2010-2012, Bangalore and Chennai are expected to absorb about 14-15 per cent of
the projected demand during the same period. Despite a projected growth of 10 per
cent for IT/ITES and the BPO sector in India during 2010, demand for real
estate space is only expected by end of 2010. Courtesy: HT Estates 27th Feb 2010 For more information regarding apartment in gurgaon, bedroom
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real estate, sell property, shop, villas, Residential Apartment Visit www.zameen-zaidad.com RBI URGES BANKS TO PASS ON LOWER RATES TO OLD CUSTOMERSPosted on Tuesday, February 16, 2010 at 13:27 in Indian Real Estate - 0 Comments - Post Comment - LinkThe Reserve Bank of India is pushing commercial banks hard to pass on new loan rates to its existing customers, rather than restrict the benefit of lower rates just too new clients,Sources in the central bank said an advisory was sent to Indian Banks Association, the representative body of all commercial banks, on January 22, asking them to be more transparent in their dealings with existing customers. At present, many private and public sector banks have been offering home loans at rates as low as 8% while their benchmark lending rate, which is applicable to old customers, remains as high as 10%-12%. RBI CHANGES PRIME LENDING RATE SYSTEM TO BASE RATE In order to make the credit market more transparent and ensure that banks pass on the lower cost of fund automatically to existing customers, RBI on Wednesday replaced the existing system of prime lending rate (PLR) to a new base rate, which will be fixed on the basis of cost of funds. The new system will be effective from April 1, 2010, In a circular RBI said, ‘‘the actual lending rates charged to borrowers would be the base rate plus borrower-specific charges, which will include product-specific operating costs, credit risk premium and tenor premium." In the existing system, banks are free to fix their PLRs. Most of the variable rate loans, like home loan and some of the term loans are pegged against PLR. This means, if the PLR is not changed, the loan rates remain the same. Banks have taken advantage of existing PLR system at the cost of their borrowers. When interest rates increase, banks hike their PLRs immediately, leading to rise in the home loan rates. But, when interest rates fall, they don't reduce PLRs. Because of this, the existing customers are not benefited by the lowering of the interest rates. However, banks pass on the benefit to new customers by increasing the discount against PLRs. Under the new system, home loans and other variable loans will be pegged against a base rate. As the new base rate is fixed on the basis of cost of funds, any change in the interest rate will reflect in the base rate. And therefore, it will be automatically passed on to the existing customers also. At the same time, RBI has clearly said that the base rate will be minimum rate for all commercial loans and banks will not be permitted to resort to any rate below it. The circular said, base Rate shall include all those elements of lending rates that are common across all categories of borrowers. Courtesy:- TOI dt:- 11-02-2010 For more information regarding 4 bhk apartment, apartment in gurgaon, bedroom apartments, buy property in india, commercial complex in india, commercial real estate, commercial space in gurgaon, dealers, flats for sale, indian real estate investment, investment options in real estate, luxurious flats, malls, office space, office space in gurgaon, online real estate, penthouses gurgaon, plots, property consultants, property in gurgaon, property india, property investment, real estate company, real estate developer, real estate gurgaon, real estate in india, real estate investment strategies, real estate market, real estate news, real estate portals, realtors, realty, residence, residential real estate, sell property, shop, villas, Residential Apartment Visit www.zameen-zaidad.com 3 bedroom Multistory Apartments for sale Rs. 4228000 in Sector 70, Gurgaon,Posted on Tuesday, February 2, 2010 at 16:54 in Indian Real Estate - 0 Comments - Post Comment - LinkType- Multistory Apartments Sector 70, Gurgaon Price – Rs. 4228000* Description – in Sector 70, Gurgaon, 5 Km from Herohonda Chowk,7 Km from Rajiv Chowk, 10 Km from IFFCO Chowk and NH8, 2 Km from Haldiram Specifications
In sector 70, Gurgaon - Well connected from Sohna Road, Golf Course Road, Rajiv Chowk, IFFCO Chowk and NH8
- 2/3/4 bedroom apartments and luxurious Villas. - Earthquake resistant structure. - 24x7 power back up and Hi-tech Security. - All modern facilities including modular kitchens, swimming pool, health club and more. - Easy approach from Malls, Schools and Hospitals. - Convenience of shopping complex and play school. You can get more information about this 3 bedroom Multistory Apartments, real estate information, real estate investment options, real estate agents information and information about 2 bedrooms flats for sale, 3 bedrooms flats for sale, 4 bedrooms flats for sale in gurgaon and delhi /NCR and also we provides real estate services like property for sale, project for sale, property investment, buy houses, sale houses, homes buyers, homes sellers and many more On my web sites like http://www.zameen-zaidad.com/eden-heights.aspx and http://www.propertycafeteria.com/main.aspx MAPSKO CITY HOMES AT SONEPATPosted on Wednesday, January 20, 2010 at 12:52 in Indian Real Estate - 0 Comments - Post Comment - LinkMapsko Group has come up with `Mapsko City homes', which is going to be built over an area of 1,29,000 sq. ft, in Sector 27, Sonepat . According to Rajiv Singla, MD, Mapsko Group, "Today, Sonepat is coming up as one of the fastest growing residential township hub where investors are hurrying to own a property. We have decided to set a landmark through Mapsko City Homes in Sonepat. The project is providing independent floors to consumers." Courtesy:- HT Estates dt:- 16-jan-2010 2 Bedroom Independent floors for sale in gurgaon sector-81Posted on Saturday, January 16, 2010 at 15:33 in Indian Real Estate - 0 Comments - Post Comment - LinkType- Independent Floors NH.8, Sector-81, Gurgaon Price- Rs. 2636000 * Vatika Primrose Floors II, 2 Bedroom Independent floors for sale in
gurgaon sector 81 @ Rs26,36,000, 25 KM from Ceramic tiles above counter / on non-counter walls upto 1500mm above floor Granite counter with twin bowl stainless steel sink drain board and CP fittings Flush Door with wooden frame, Window panes with glazed aluminium/durable wood. Living/Dining : Choice of shades of acrylic emulsion paint/ceiling in distemper Vatika Group launches primrose floors II “Iris and Emilia Floors” at Vatika India Next in Sec 82, Gurgaon. Offering residential apartments, The apartments provide all that you have desired for your dream home at affordable prices. The infrastructure conforms to international standards with lush landscapes and well planned street architecture. So catch your breath at fabulous price as your dream home unfolds at a dream location. The above price is inclusive of one dedicated surface car parking, EDC/IDC (existing) & provision of wiring for Inverter I.F.M.S (Interest free maintenance security) : As applicable, to be paid to the maintenance agency at the time of possession. For more info log on to http://zameen-zaidad.com/primrose-floors-II-vatika-gurgoan.aspx Property Prices to go up in this yearPosted on Friday, January 8, 2010 at 17:15 in Indian Real Estate - 0 Comments - Post Comment - LinkNew Year is going to provide a good opportunity to the investors in Indian real estate, since, Indian Economy is growing rapidly as well as the real estate market is also gaining its strength. The real estate experts are expecting that the prices of real estate is likely to go up in the current year due to the end of global slowdown and Indian Market is especially out of such nightmare. Buying Property in Indian cities is a foresight investment and will certainly provide a good return in form of rent or through lease. And on other hand the price of the property is also gaining a record increment. NRIs
& Indians who are willing to invest their money in Indian market may
consider the real estate as one of the best options available. They can get a
assured return through their investment in Indian Real Estate. Both residential
real estate and commercial real estate are available in various locations in
Delhi & DIRECT TAX CODE MAY SPARE HOME LOANSPosted on Sunday, December 27, 2009 at 14:59 in Indian Real Estate - 0 Comments - Post Comment - LinkTax Benefits Likely To Continue To Make Code Amenable To ‘Aam Aadmi’ Deepshikha Sikarwar NEW DELHI The government may modify the draft direct tax code to retain tax shelters on interest and principal repayments for home loans to make the proposed new code more attractive for the average Indian, a finance ministry official told ET. The proposed direct taxes code, which has been unveiled for public debate and is due to become operational from April 2011, does not provide tax incentives to loan-funded house purchases that are for personal use. At present, taxpayers are allowed to deduct from their income the interest paid on home loans to a maximum of Rs 1.5 lakh every year. In addition, the repayment of the principal amount is also allowed to be included within the rebate available under section 80C, which has a maximum limit of Rs 1 lakh. The draft code, billed as a comprehensive reform of the direct taxes regime, has suggested increasing the exemption limit under section 80C to Rs 3 lakh, but the list of eligible expenditure/savings does not include the principal payment. The code also restricts the interest deduction only to in respect houses rented out and where such income is included in the income of the assessee. At present, if a home buyer in the highest 30% tax slab were to avail the maximum tax exemption available on home loans then government loses over Rs 77,000 in tax. The planned move to discontinue tax benefits for housing has faced widespread criticism and the finance ministry official said “we are looking at provisions (in the direct taxes code) that concern common man directly, including tax incentives to housing.” Finance minister Pranab Mukherjee has already indicated his willingness to review the contentious provisions in the code, observing, “I have laid a certain proposal in the form of a direct tax code. But it is not the Bhagwad Gita and it cannot be said that it cannot be changed.” Mr Mukherjee has held discussions with senior officials of the apex direct tax body, the Central Board of Direct Taxes, on the changes to be carried out in the code to make it widely accepted. The UPA government has lined up reform of both the indirect and direct tax structures that are laden with a plethora of exemptions. It plans to implement a comprehensive Goods and Services tax on the indirect taxes side and replace the decades-old income tax law with the new direct taxes code. India has a tax-to-GDP ratio of 11% at the central government level and about 16% including state and municipal taxes. This is well below the average 35.8% for OECD countries in 2007. Tax reforms are aimed at increasing compliance and widening the tax base by lowering rates and removing exemptions. The government is hoping to redraft the new code quickly so that it can be placed in Parliament in the Budget session itself. At present, taxpayers are allowed to deduct from their income the interest paid on home loans to a maximum of Rs 1.5 lakh Repayment of principal amount is also allowed to be included within the rebate available under section 80C, which has a maximum limit of Rs 1 lakh The proposed direct taxes code has not provided tax incentives to loan-funded houses that are for personal use The draft direct taxes code has suggested increasing the exemption limit under section 80C to Rs 3 lakh but the list of eligible expenditure/ savings does not include the principal amount Finance minister Pranab Mukherjee has indicated that his ministry is open to reviewing the contentious provisions in new direct taxes code Courtesy:- ET dt:- 26/12/2009 Omaxe Limited Launches Premium Residential Township in indorePosted on Wednesday, December 16, 2009 at 16:24 in Indian Real Estate - 0 Comments - Post Comment - LinkWelcome to the 21st Century Lifestyle at OMAXE CITY- INDORE An Integrated Township of International Standards .Would you like to live in an ultra - modern township ? With everything from residential plots, expandable villas, hospitals, Commercial Complexes and schools. It's far ahead of everything you have seen before. A fine fusion of world-class infrastructure and rich tastes, Omaxe City, for a city like Indore, nothing else would be adequate. A humble effort to make it a reality With its new age design and world-class ambience, Omaxe City, Indore is a humble attempt from Omaxe to lay a strong foundation for a Developed India. Located on NH-3, Agra-Bombay bypass, makes it an ideal location to make such a dream into a concrete reality. Perfection in every structure. Unparalleled elegance for your own home Omaxe City, Indore is an integrated township comprising plots, independent floors and villas in a sprawling expanse of 89 acres. With all facilities and amenities such as schools, hospital, theme parks, state-of-the-art club, local shopping centre, grocery store and more....all within the township. * Township duly approved by Town & Country Planning, MP * Manned security at entry points * Most luxurious and privileged township for people who have their business and professional interests in Indore and adjoining industrial areas. Features QUALITY EDUCATION & HEALthCARE TO KEEP MIND & BODY FIT Provision for: * Commercial Complex * Dispensary / Nursing Home * Primary Schools * High School * Nursery school with crčche All facilities for your day-to-day needs at your doorstep A city inside a city * Provision for need based essential services like banks, sub-post office, * taxi stand, grocery store, super market, etc. * Provision for gas pipeline * Hi-tech security system * Underground cables for telephone, electricity distribution, storm water drains * & sewer system * Fibre optic network and e-connectivity * Efficient power distribution network * Regulated underground/overhead water supply * Township maintenance and upkeep by a reputed maintenance agency * Community Centre All the facilities for you and your growing child A Royal Retreat * Children's play facilities * Integrated landscaping including theme parks, water bodies * & water features * Wide roads with planted pathways & jogging track Living in complete harmony with Nature * Afforestation by increasing green cover * Rainwater harvesting for replenishing ground water * Environment-friendly waste disposal * Sewage treatment and incinerators Provision for exclusive club and community centres with : * State-of-the-art club with facilities like swimming pool, sauna, steam, * jacuzzi, etc. * Shopping Complex * Food Court and banquet hall * Recreational facilities including card room & multi-purpose room * Arrangement for indoor games like squash, cards, billiards, snooker, etc. * Hi-tech Gymnasium For more info log on to http://www.zameen-zaidad.com/omaxe-city-indore.aspx SOBHA DEVELOPERS LAUNCHES NEW SUPER LUXURY APARTMENT SOBHA CARNATION IN PUNEPosted on Thursday, November 26, 2009 at 15:46 in Indian Real Estate - 0 Comments - Post Comment - LinkProject Name Sobha Carnation Name of Builder Sobha Developers Project Type Super Luxury Apartments Price As Below Location NIBM Kondwa, Pune Agents Shri Aditya Estates 42470622, 9810445860 Structure * Basement+ Ground + 9 storeyed RCC framed structure with concrete block masonry walls. * Covered/semi-covered car park in Basement/ Ground level. Foyer/Living/Dining * Superior quality vitrified tile flooring and skirting. * Plastic emulsion paint for walls and ceiling. * Superior quality vitrified tile flooring and skirting. * Plastic emulsion paint for walls and ceiling. Toiletes * Superior quality ceramic tile flooring. * Superior quality ceramic wall tiling upto false ceiling/ceiling. * False ceiling with grid panels. * Plastic emulsion paint for ceiling for apartments on the top most floor. * Granite vanity counter in master bedroom toilet. * Superior quality ceramic tile flooring. * Superior quality ceramic tiling upto ceiling. * Plastic emulsion paint for ceiling. Staircase Open Staircase * Granite treads & risers. * MS handrail. * Textured paint for walls. * Plastic emulsion paint for ceiling. Fire Exit Staircase (enclosed with fire rated doors) * Cement concrete for treads & risers * Parapet wall with granite coping * Textured paint for walls. * Plastic emulsion paint for ceiling. Common Areas * Granite/Vitrified tile flooring. * Superior quality ceramic tile cladding upto ceiling. * Plastic emulsion for ceiling. * Granite coping for parapet/MS handrail as per design. Balconies/Utilities * Superior quality ceramic tile flooring and skirting. * Granite coping for parapet/MS handrail as per design. * Plastic emulsion paint for ceiling. * All walls painted in textured paint. * Superior quality ceramic tile flooring. * Plastic emulsion paint for walls & ceiling. Servant's Toilete * Ceramic tile flooring. * Superior quality ceramic tile cladding for walls upto false ceiling. * Plastic emulsion paint for ceiling for apartments on the top most floor. Joinery o Frame - Timber o Architrave - Timber o Shutters - with both side masonite skin * All other external doors to be manufactured in specially designed heavy-duty powder coated aluminium extruded frames. * Windows / Ventilators o Heavy duty powder coated aluminium glazed windows made from specially designed and manufactured sections. Lifts * Total no. of 8 lifts of reputed make. * Capacity - 4 nos. of 8 passengers and 4 nos. of 16 passengers. Landscape * Designer landscaping. Common facilities (Common to all projects in campus) * Well-equipped clubhouse. * Swimming pool. For more info log on to http://www.zameen-zaidad.com/sobha-carnation-pune.aspx GOOD NEWS FOR THE ELDERLYPosted on Monday, November 2, 2009 at 14:54 in Indian Real Estate - 0 Comments - Post Comment - LinkReverse
mortgage is a blessing for the elderly as it allows them to generate good
income from their homes after
retirement. What’s more, they can still continue to live in the same house
till past the tenure of the reverse mortgage. Read on to know how this concept
works Reverse
mortgage was introduced in 2007 here. The concept is aimed at senior citizens
who can generate income from their homes in their retirement years. HOW IT WORKS
If a senior
citizen owns a house, he can avail a loan from a bank by mortgaging his house.
In a conventional home loan, the borrower receives a lump sum at the beginning
of the loan tenure. He has to repay the loan through monthly EMIs where a portion
goes towards the interest component and the remaining towards principal
repayment. The house is pledged with the lender during the debt tenure. In the
case of reverse mortgage, a senior citizen pledges a property he owns for
which the lender gives a series of cash flows for a fixed tenure. THE
ADVANTAGES Consider the
case of Prakash, a retired person. Prakash purchased a two bedroom house in the
heart of the city with his life's savings. With no pension and any other
regular sources of income, he is finding it difficult to meet his regular
monthly expenses after retirement. The thought of selling his property and
moving into a smaller rented accommodation seemed to be the only alternative to
free him from financial distress. Reverse mortgage is a product designed for
senior citizens like Prakash. Here, the property owned is pledged and for a
fixed tenure (say 15 years) the senior citizen gets periodic payments. Senior
citizens don't have to sell their assets to meet their living expenses. They
can continue to live in the
house till past the tenure of the reverse mortgage. QUANTUM OF
INCOME Loan-to-value
ratio means the percentage of loan that one will get for the value of the
property that is pledged. The typical loan-to-value ratio is in the range of 60
to 80 percent. If one pledges a property worth Rs 40 lakhs, the loan amount
that he can get is Rs 32 lakhs, if the loan-to value ratio is 80 percent. The
income generated from reverse mortgage can be in the range of 12 to 15 percent.
REPAYMENT In the event
of demise of the senior citizen, his spouse is allowed to live in the house.
After the demise of both, the banker will provide the legal heirs the
opportunity to clear the outstanding loan and take possession of the
property. If the heirs are not interested, the bank sells the house, and
settles the outstanding loan. Any excess amount from the sale of the property
is duly remitted to the borrower's heirs. POPULAR
ABROAD Reverse
mortgage is a popular in the West among senior citizens who want to tap their
property for cash. Ashish Gupta outlines some legal aspects of reverse
mortgage: In the
present day circumstances of cash crunch, property can be a valuable source of
getting funds, without physically disposing off the property. As a concept,
reverse mortgage is of immense use in unlocking the otherwise illiquid asset of
property. Hitherto immovable property has been treated as one of the most
illiquid assets. Reverse mortgage unlocks the liquidity potential of this
asset. It helps the owner get a return from his immovable property, without
having to part with it. The owner can continue with the possession of the
property during his lifetime. WHAT HAPPENS
TO TITLE? In case of a
reverse mortgage, the property owner surrenders the title of the property to a
financial entity. The financial entity doesn't pay the entire amount to the
owner upfront. On the contrary, it pays out a regular sum each month for the
agreed time. HOW IS IT
DIFFERENT FROM MORTGAGE? Reverse
mortgage is different from mortgage. Mortgage is a form of hypothecation of the
property to a bank,
as a security for a loan. A common form of security which a bank insists on is
the mortgage of the house for which the loan is being availed of by the
borrower. Mortgage refers to the transfer of interest in a specific property
for the purpose of securing either the payment of money advanced or to be
advanced by way of loan, or an existing or future debt. The transferor is
called a mortgagor, the transferee is called a mortgagee, the principal money and
interest that are secured by the mortgage are called the mortgage money, and
the instrument by which the transfer is affected is called a mortgage deed. A
reverse mortgage is available to those above a specific age. The aim is to use
the property and make it generate a return while in use by the owner. The
amount is paid out each month is for a specific period of time. RISK OF
FINANCIAL INSTITUTION The
financing institution has to bear the risk of the individual outliving the
agreement. At the expiry of the agreement period, the monthly payments to the
owner stop. The monthly payout depends on the value of the property, the term
of the agreement and the rate of payment. The valuation of the property is to
be done by experts. The entire payout mechanism calculation and computation
depends on the law of probability. Courtesy:-
ET dt:- 30-10-2009 DEBT’S GOOD, FOR SOMEPosted on Monday, November 2, 2009 at 14:53 in Indian Real Estate - 0 Comments - Post Comment - LinkBuyers, it
is time to rejoice as affordable
housing projects are here to stay. While recession had developers reducing
prices of their housing units, their rising debts are forcing them to continue
with it The market
may witness an oversupply like condition in the affordable segment of
residential real estate making prices range bound in times to come. Though the
global financial crisis affected developers badly, it brought cheer to the
middleclass end users as builders were forced to bring down their units prices
to the affordable range of Rs 5 lakh to Rs 30 lakh. In fact, the
crisis led to emergence of a new segment of affordable housing in residential
real estate in the country. This helped revive realty market and instilled
a new confidence among developers and end users, according to Samir Jasuja,
founder CEO of PropEquity Research. In order to
bring down prices to drive sales, developers cut the rate by lowering
specifications and also by reducing the size of units. The combined effect of
cutting the rate and reducing the size led to a steep fall in prices of two and
three-bedroom apartments, by as much as 30% to 40% from their peak level of
early 2008. The fall in
prices spurred demand. Many developers even sold their entire projects in only
a couple of days. This is mainly because developers could successfully convey
the impression to buyers that
availability of apartments at prices at which they off e re d would not
last long. This made the buyers queue up to buy these apartments. But as
demand rose sharply in this category, more and more developers launched
apartments in the affordable segments and supply increased manifold. According
to Jasuja, this category is now beginning to get overcrowded with a rapid
increase in supply, which is outstripping absorption and leading to an
inventory pile up. According to the accompanying chart, absorption rate or
sold-out rate in the last one year in apartments in the price range of Rs 5 to
Rs 15 lakh is much better than that in the Rs 15 to Rs 30 lakh range. This is
also because of the number of apartments launched in the Rs 5 to Rs 15 lakh
price range is much smaller than that in the Rs 15 to Rs 30 lakh range in the
National Capital Region (NCR). Gurgaon saw
the launch of maximum number
of apartments in the affordable range. But the sold-out rate here is the
second worst at 37%, next only after Greater Noida, where it is only 25%. As
sales in affordable range of apartments picked up, many developers jumped onto
the affordable housing bandwagon to bail themselves out of the global economic
crisis. Many of them treated affordable housing category as the new mantra in
marketing and launched several projects in this category resulting in an
oversupply in the market, Jasuja says. Interestingly,
as demand picked up and number of transactions increased, many developers’
revised prices upwards, by around 10%. However, consultants feel price hike is
more cosmetic in nature as developers are giving discounts over quoted prices.
Some developers increased the quote prices, but the discount was also suitably
hiked. Data collected by PropEquity from 13 cities suggests that rate of sales
(absorption) of affordable units have slowed down in the September 2009
quarter. In the early phase, the euphoria was mainly due to a huge pent up
demand in the category. Falling
absorption velocity coupled with an oversupply in this category has now
resulted in an inventory pile up. As cost of carrying inventory in real estate sector
is very high, developers will resort to price correction at the cost of
profits. But
developers argue the prices are at rock bottom. In most of the areas of NCR,
developers are selling apartments at 30% to 50% discount to the average price
of apartments in the area. In most of the cases, they are working on a very
thin profit margin. Therefore, a further cut in prices will be a big
disincentive to launch the project itself. However, bankers and consultants
feel that most developers are under a huge debt. As they are not able to raise
funds through equity-sell, they have no choice but to launch projects for the
purpose. Courtesy:-
ET dt:- 30-10-2009 Home loan approvals become tougherPosted on Thursday, October 29, 2009 at 10:57 in Indian Real Estate - 0 Comments - Post Comment - LinkThe emergence of ‘affordable’ housing has revived the real estate market, but prospective buyers have found out that getting a home loan approved has just got a little more difficult. For one, banks, wiser from the meltdown, are rechecking the installment to income rations(the figure that determines the EMI). Earlier, bank extended EMI(equated monthly installment) on the loan up to 50% of the monthly salary. Now this installment to income ratio stands between 30% and 50%. “It’s not advisible to have a single number,” says Renu Sud Karnad, joint MD, HDFC. Moreover, many banks are taking into account only the recurring income of the potential buyer to compute the monthly EMI. “Banks are no longer benevolently at other sources of income such as performance bonus, variable pay, while computing the installment to income ratio,” says Praveen Kutty, executive V-P and head (retail banking), Development Credit Bank. “Our focus is on income sources that are consistent while arriving at the ratio,” says Karnad. Kotak Mahindra Bank takes into consideration only the monthly income to calculate the EMI. “We don’t look at other incomes such as bonus because it may not be there every year,” says Kamlesh Rao, executive V-P , Kotak Mahindra Bank. Some banks are assigning sector-wise ‘installment to income’ ratios so that there is consistency in loan disbursals. Such ratios are determined on the performance and the credit rating of the industry. Analysts say banks are taking the cautious route to improve their risk management. “Some time back, capital was hard to come by. Banks did not want to set aside huge amounts towards lending because if delinquencies arose, they would have had to make provisions for those,” says Clyton Fernandes of AnandRathi Financial Services. Even when it comes to documentation, banks are some stringent before disbursing home loans. Apart from the pre-requisite documents like IT returns of three years, PAN card copy and bank statements of the last six months, banks are also scrutinizing details such as passbook entries to check withdrawal patterns. “Banks like us are actively tapping the Cibil(Credit Information Bureau) list to check the credit card payment history. Such checking is now integral to the credit buying process,” says Rao. In case of professionals who have shifted from hometown, banks are asking for title deeds of house in the native place even if it is registered in the name of the parents, to determine repayment capacity of the executive. Courtesy:- BS dated 24th Octber 09 UP announces incentives for IT/BPO, realtyPosted on Thursday, October 29, 2009 at 10:56 in Indian Real Estate - 0 Comments - Post Comment - LinkTo lure the Business Process Outsourcing and IT/ITeS industry, the Mayawati Government in Uttar Pradesh has showerd various sops. The realty sector , too, has been given many relaxations. It majors and BPOs setting up units in UP will get full waiver on stamp duty. Those setting up call centres can now get a land-lot in UP on easier terms. In a meeting of the state cabinet chaired by the CM on Friday, all development authorities in the state have been directed accordingly. IT companies have been given big relaxations in the lease rent on land allotted to them. IT and BPO industries can now complete construction on the land allotted to them in five years instead of three years. The government has decided to reduce the lease rent on commercial land by more than 60 per cent. The cabinet also decided that those getting a commercial plot through open bidding by March 31, 2010, will have to pay just one per cent lease rent instead of the earlier rate of 2.5 per cent. In case the allottee is making a one-time payment, the lease rent payable will be 11 per cent instead of the existing 27.5 per cent. Those realty companies which have failed to pay the cost of the land allotted to them have been given the option to reschedule their payment mode. Defaulter realty companies can now pay the cost of land over 10 years. This facility will be available till the end of this financial year only. Courtesy:- BS dated 24th Octber 09 UNITECH SALES TOUCH RS 3,913 CR IN 6 MTHSPosted on Wednesday, October 21, 2009 at 17:07 in Indian Real Estate - 0 Comments - Post Comment - LinkUnitech Ltd, India’s
second-biggest real estate player by revenue, on Tuesday reported it has
booked sales worth Rs 3,913 cr in the first six months of fiscal 2010, selling
10.11 million sq ft, which is almost the same space sold by it in each of
fiscal 2007 and 2008—the boom years for real estate. Out of 10.11
million sq ft, 8.16 million sq ft was booked in the residential segment, the
company said in a presentation dated September 30, which was made public on
Tuesday. It said that these figures did not cover PLC, parking and club
charges. In the last
fiscal, Unitech had
sold only about 3 million sq ft in 2008-09, as buyers shied away from the
real estate sector in the face of global slowdown. “The target
is to sell 20 million sq ft this year,” said a Unitech spokesperson. The
average basic sale price of its projects though has dropped to Rs 3,234 per sq
ft during March-September 2009 compared to an average of over Rs 4,000 per sq
ft for its projects before September 2008, indicating that the company’s
strategy to sell smaller units at lower prices drew response from buyers. Yet,
the company has been able to sell less than 50% of the total space it launched
between March-September 2009. It had launched a total of 21.3 million sq ft of
space (residential and non-residential combined) of which it claims to have
sold 10.11 million sq ft during the period. In its
presentation, Unitech
said it has sold 6,788 units in its recent projects across nine cities
which has generated Rs 2,639 cr. It has close to 60 projects under various
stages of development and will be delivering close to 32 million sq ft over the
next 3 years. It has launched over 30 new projects in the last 7 months. The
company has increased its workforce on project sites in last six months, from
3,500 on April 1, 2009 to 15,600 on October 1, 2009, to deliver existing
projects by March 2011. Courtesy:- ET dt:- 14-10-09 MAYTAS PROPERTIES TIES UP WITH BANGALORE’S SHRIRAMPosted on Thursday, October 15, 2009 at 16:27 in Indian Real Estate - 0 Comments - Post Comment - LinkPlans To Develop Prime Property in Chennai
Maytas Properties, a closely-held firm run by the son of disgraced Satyam founder B Ramalinga Raju, has tied up with Bangalore-based Shriram Properties to develop a prime property in Chennai.
It hopes to get loans from banks by pledging the
sale proceeds of the developed property
as collateral and raise money from banks to complete the up market
“The deal will ensure that funds flow into the
company in small amounts now with the major portion starting in six months when
sales begin at the Chennai project. We have also discussed with banks to let
them have rights over those funds which will give them confidence to provide
immediate funds as additional loans,” said Ramalinga Raju’s younger son Rama
Raju in a letter to the customers of
Shriram Properties is an arm of the Shriram Group
and has projects
in Bangalore, Kolkata, Chennai,
The
Rama Raju Jr has been facing the ire of several customers who have not been given possession of the property. A criminal complaint has been launched against him for defrauding customers.
Besides, the promoters are under pressure to sell their stakes in projects or even exit the business as they have failed to honors commitments made to customers. The company has also denitrified one of its three Special Economic Zones in the city outskirts.
Two other projects — Jubilee Hills Landmark and Jubilee Hills Park View — have also been halted due to the credit crunch.
While Maytas Properties hopes to win customers’ confidence, the move has seemingly irked many of them. According to a few customers, the deal means they will have to wait till the company reaps profits from the project.
Courtesy:- ET
dt:- Parsvnath raises Rs 225 crore through stake sale in projectsPosted on Thursday, October 8, 2009 at 17:00 in Indian Real Estate - 0 Comments - Post Comment - LinkRealty major Parsvnath Developers is understood to have raised Rs 225 crore through equity sale of two of its projects to private equity investors and plans to utilize the funds to reduce its Rs 1,600 crore debt and meet construction costs. Sources said the company had closed two transactions – one worth Rs 150 crore and another Rs 75 crore – with private equity firms. The company has sold stakes in its two projects located in the national capital region (NCR). The company’s spokeperson declined comment. With these two deals, Parsvnath has raised over Rs 500 crore in the last four months through private placement of shares and stake sales at project level. The fund-raising exercise is meant to cut its debt amounting to Rs 1,600 crore by at least half by the end of this fiscal. The company also intends to strengthen its balance sheet by improving cash flow, which has taken a hit due to slow-down in the property market and the global financial crisis. During this week, Parsvnath raised $35 million(nearly Rs 170 crore) through the qualified institutional placements (QIP) route by issuing shares at Rs 121.25 a share. The company yesterday announced selling an additional 4
percent stake in a The company might raise more funds as it has obtained approval from its board to raise up to Rs 2,500 crore through QIP and other instruments. After the QIP, the company’s share prices have gone up by 17 percent. Its share prices have risen to Rs 147.55, as of yesterday, on the BSE. Courtesy:- BS dt:- EMAAR MGF TO USE HALF OF RS 3.8K CR IPO TO REPAY DEBTPosted on Monday, October 5, 2009 at 11:58 in Indian Real Estate - 0 Comments - Post Comment - LinkRealty firm Emaar MGF, which plans to raise Rs 3,850 cr through an initial public offer, will utilize over half of this fund to repay its debt alone to strengthen its balance sheet. Emaar MGF, a joint venture between Dubai-based Emaar Properties and domestic firm MGF, has a debt of Rs 5,807.79 cr as on August 31 and plans to utilize Rs 1,972.1 cr raised from the public in part repayment. The repayment will also include the debt of special purpose vehicle (SPV) created by the company for developing the Commonwealth Games Villages — Emaar MGF Construction. The realty major had filed its draft prospectus with market regulator SEBI to raise Rs 3,850 cr through an IPO on September 29. “In order to deleverage its balance sheet, the company intends to repay Rs 1,772.6 cr of its outstanding debt from the proceeds of the fresh issue,” the Draft Red Herring Prospectus (DRHP) of the company said. Some of the lenders to the company include Unit Trust of India Mutual, HDFC, L&T Infrastructure Finance Company, Axis Bank, LIC, Citibank, ABN Amro Bank, HSBC and SBI. “The company proposes to utilize a part of the proceeds of the fresh issue to the extent of Rs 199.5 cr for funding Emaar MGF Construction (the SPV), which proposes to utilize for the repayment and prepayment of loan facilities availed by it,” the DRHP of Emaar MGF said. Besides, the realty firm would pump in Rs 820 cr for redemption of certain redeemable preference shares. It would also invest Rs 276.8 cr in paying development and license renewal charges. The remaining part of the proceeds is proposed for general corporate purposes, including acquisition and brand building exercise. Emaar MGF had filed its DRHP for the second time with SEBI to rise up to Rs 3,850 cr, much lower than what it had planned to mop up last year. Courtesy:- ET dt:-03-10-09 ECONOMY TO GROW, BUT JOB MKT SHAKY: OBAMAPosted on Saturday, September 26, 2009 at 14:05 in Indian Real Estate - 0 Comments - Post Comment - LinkUS President Barack Obama in an interview aired on Sunday said all signs point to the US economy starting to grow again but there may not be enough new jobs created until next year.
“I want to be clear, that probably the jobs picture
is not going to improve considerably — and it could even get a little bit worse
— over the next couple of months,” he said in an interview taped on Friday with
CNN’s “State of the
“And we’re probably not going to start seeing enough job creation to deal with the rising population until sometime next year,” Obama said, adding that 150,000 additional jobs must be added each month just to keep pace with population growth.
Federal Reserve chairman Ben Bernanke said on Sept.
15 that the worst
Obama has sought in recent weeks to highlight the signs of an improving economy in an effort to boost his popularity, which has suffered amid a heated debate over his plan to overhaul the nation’s healthcare system.
In the interview, Obama said he will leave it up to Bernanke to pronounce whether or not the recession was officially over. But he said the financial markets were working again and manufacturing had even ticked up, in terms of production, last month. “So all the signs are that the economy’s going to start growing again,” he said.
Obama said jobs figures tend to be the last to catch up in an economic recovery. “The other problem is, we lost so many jobs that making up for those that have already been lost is going to require really high growth rates,” he said.
Obama is going to
“That’s part of what the G-20 meeting in
“We can’t go back to the era where the Chinese or the Germans or other countries just are selling everything to us, we’re taking out a bunch of credit card debt or home equity loans, but we’re not selling anything to them,” he said.
Courtesy:- Et
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