VoteUpIndia » Real Estate http://voteupindia.com Top News of India... Wed, 14 Sep 2011 19:03:48 +0000 en hourly 1 http://wordpress.org/?v= Property prices to rise in next one year, then correct: NHB http://voteupindia.com/property-prices-to-rise-in-next-one-year-then-correct-nhb/ http://voteupindia.com/property-prices-to-rise-in-next-one-year-then-correct-nhb/#comments Wed, 05 Jan 2011 13:35:42 +0000 Mudit Agrawal http://voteupindia.com/?p=8910
NEW DELHI: Housing regulator, NHB, which is awaiting USD 500 million loan from the World Bank for low cost housing, today said property prices would rise in the next one year, but that would result in correction in these rates in all the metros subsequently.

“In the next one year, property prices would be moving northwards which will create a dampening impact on demand, resulting in correction of prices,” NHB Chairman R V Verma told reporters on the sidelines of Skoch summit.

He said correction would happen in the prices in all the metros.

Correction in property prices started happening in India, after global financial crisis deepened in the middle of September, 2008 with the collapse of US financial services icon Lehman Brothers.

But after the economy revived, property prices have moved up again in India.

Many experts also believe that rising loan rates as a result of RBI monetary tightening moves would lead to correction in housing prices.

Verma also said NHB expects USD 500 million loan from the World Bank for low income home.

“It is in the pipeline. We are expecting feedback from the World Bank soon. The funding is in the pipeline for 2011-12,” he said.

Verma also said NHB is entering into an agreement with Germany-based bank KFW for 50 million euro loans to fund energy efficient houses.

“We expect first tranche of funding in June,” he added. The NHB chairman said the bank has disbursed Rs 7,500 crore this fiscal so far.

“In March, we are expected to disburse another Rs 2,500 crore. In July- June 2010-11, we expects disbursal of Rs 11,000 crore of which Rs 2,000 crore will be for rural housing fund,” Verma said.

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]]> http://voteupindia.com/property-prices-to-rise-in-next-one-year-then-correct-nhb/feed/ 0 Retailers Focusing on Small Cities and Towns http://voteupindia.com/retailers-focusing-on-small-cities-and-towns/ http://voteupindia.com/retailers-focusing-on-small-cities-and-towns/#comments Mon, 20 Sep 2010 14:12:32 +0000 somya harsh http://voteupindia.com/?p=4431
Indian retail juggernaut, which began rolling towards smaller cities and towns a few years ago, has gathered momentum as retailers are now going whole hog to make a killing. Changing demographics, higher disposable income and improved agri-produce realisation have made smaller cities and rural areas the future hotbeds of growth. And Indian retailers are in no mood to miss out on this big, untapped growth opportunity.
So, from customising collections and keeping a wider entry-level merchandise mix to leveraging local franchisee know-how and opening more outlets, retailers such as Future Group, Shoppers Stop, ITC Wills Lifestyle and Spice Hotspot are trying every possible permutation and combination in their effort to rake in moolah.
“Disposable income in smaller towns has risen significantly in the recent past as they were largely unaffected by the slowdown,” said Kumar Rajagopalan, CEO, Retailers Association of India (RAI). The rush towards smaller towns is triggered mainly by the low availability of property at right prices in the big cities, feels Mr Rajagopalan.
Retail chain Shoppers Stop will open over 12 stores in smaller cities by year-end. The K Raheja-promoted company, which has positioned itself as a “bridge-to-luxury” brand, will open department stores in cities such as Ahmedabad, Aurangabad, Jalandhar, Ludhania, Mysore and Vijayawada with an investment of Rs 120 crore.
“Before we enter smaller cities like Amritsar, Bhopal and Aurangabad, we already have loyalty customers there, courtesy people from those locations who have shopped in nearby metros,” said Shoppers Stop vice-president (marketing & loyalty) Vinay Bhatia.
Shoppers Stop stocks a smaller assortment of bridge-to-luxury products in such smaller markets, at about 5-10% of the total merchandise as compared to big cities where it’s about 15-20%. “Our experience also tells us these cities have a lower working women population and less occasions to wear formalwear. So we have more casualwear and a bigger ethnic mix in these stores,” adds Mr Bhatia.
Future Group is planning to enter 10-12 towns every year. About 15-20% of the product mix in smaller stores of India’s largest retailer is customised to the regional requirements of the market. “This mostly happens in food, ethnic apparel, general merchandise and home products,” said Rakesh Biyani, CEO, retail, Future Group. ”It allows us to build a connect in smaller cities. Sales per sq ft may be lower than the cities, but then the costs are lower too. As we adopt a cluster approach for expansion, these cities will become more lucrative,” said Mr Biyani.

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]]> http://voteupindia.com/retailers-focusing-on-small-cities-and-towns/feed/ 0 Godrej Believes that RBI’s Rate Hike Won’t Affect Real Estate Sector http://voteupindia.com/godrej-believes-that-rbi%e2%80%99s-rate-hike-won%e2%80%99t-affect-real-estate-sector/ http://voteupindia.com/godrej-believes-that-rbi%e2%80%99s-rate-hike-won%e2%80%99t-affect-real-estate-sector/#comments Mon, 20 Sep 2010 13:59:33 +0000 somya harsh http://voteupindia.com/?p=4429
The Reserve Bank’s decision to raise its key short-term rates will not have any impact on the realty sector, a top industry player said. “Presently in the real estate sector, demand is exceeding supply, so I see no problem,” Godrej Group’s Chairman, Adi Godrej, told reporters at an event organised by the Gujarat Institute of Housing and Estate Developers (GIHED) here.
As a part of its first mid-quarterly review of monetary policy, the RBI had raised its key short-term lending (repo) rate by 25 basis points and borrowing (reverse repo) rate by 50 basis points to six and five per cent, respectively. The rate hikes are aimed at combating inflation now at a high 8.5 per cent, he said.
The rate hikes will also not impact credit flow adversely, the industrialist said. “Credit is available and I don’t see this RBI decision having any effect on credit availability,” he added. On the consumer durables segment, he said, the sector is growing by 25-30 per cent and will grow further during the festive season.
Asked if prices of some products were likely to rise going forward, Godrej said that prices of some products like soap could see a northward movement due to a rise in raw materials costs. “(Prices of) some products like soap may go up in the region of five per cent as cost of raw materials like vegetable oils have gone up,” he said.

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]]> http://voteupindia.com/godrej-believes-that-rbi%e2%80%99s-rate-hike-won%e2%80%99t-affect-real-estate-sector/feed/ 0 India can Face Housing Shortage by 2012- Ernst and Young http://voteupindia.com/india-can-face-housing-shortage-by-2012-ernst-and-young/ http://voteupindia.com/india-can-face-housing-shortage-by-2012-ernst-and-young/#comments Mon, 20 Sep 2010 13:52:24 +0000 somya harsh http://voteupindia.com/?p=4427
India will face shortage of over 26 million houses by 2012, which would lead to spurt in housing prices as demand-supply gap widens amid rising purchasing power of the middle class people, a consultancy firm has said. “With India back on a high growth trajectory, demand for commercial and residential space is likely to witness an upward trend,” consultancy firm Ernst and Young said in a report.
Demand for residential property is rising sharply because of growing young working population, increasing urbanisation, declining household size resulting in more nuclear families with growing household income and improved availability of loans. Co-chairman of FICCI Real Estate Committee Pranay Vakil said over $1.2 trillion investment was needed to meet the rising demand for urban development.
He said that the urban population in India would nearly double to 600 million in the next 15 years from nearly 350 million now, and this would put massive pressure on urban infrastructure, including roads, power and water supply. Dean Hodcroft, partner-head of real estate for Europe, Middle East, India and Africa at Ernst and Young, said India needed institutional reforms to attract more investments in infrastructure development projects.
He said the country’s macro-economic fundamentals were in great shape and it was poised to reap huge benefits of growth. “India needs to fix the institutions to attract more private investments, including foreign investments,” he said. Comparing the investment climates in India and China, Hodcroft said: “While it is easy for investors to get into China, it is extremely difficult to get out. In contrast, it took time for foreign companies to enter India, but exiting is comparatively much easier.” He noted that India was lower ranked in areas that were easy to fix.

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]]> http://voteupindia.com/india-can-face-housing-shortage-by-2012-ernst-and-young/feed/ 0 35% Hike in Ahmedabad Property Prices Post Recession http://voteupindia.com/35-hike-in-ahmedabad-property-prices-post-recession/ http://voteupindia.com/35-hike-in-ahmedabad-property-prices-post-recession/#comments Mon, 20 Sep 2010 13:46:58 +0000 somya harsh http://voteupindia.com/?p=4426
About a year and a half ago, recession in the city realty market had builders and buyers alike, worried. However, about a year since the first signs of recovery in June 2009, realty in Ahmedabad is back and booming. In fact, property prices in the city have inched up by nearly 35%.
The high economic growth and rate of urbanisation, along with the improvement in infrastructure in the state, have been catalysts in the growth of the real estate market. And the boom is not restricted to the western side of the city alone – properties across the city, irrespective of location, have witnessed a steep rise in prices.
However, Ahmedabad had been anything but spared by the global meltdown. The property market in the city had been considerably hit by the recent economic slowdown. But property prices started moving northwards in June 2009.
“If you compare the pre-slowdown prices with the present ones, there has been an increase of about 22-25%. However, if you consider the cumulative rise in prices since the worst phase of the downturn, the increase has been almost 35%,” said Suresh Patel, GIHED president.
He said that the property prices in the city went down by around 12-15% due to the recession, and it took around four-five months for the prices to get back to the pre-slowdown level. “After that, they have increased by around 22-25%,” said Patel.
Online real estate service provider company Makan.com’s property index shows that realty prices in Ahmedabad have grown by 36.8%, compared to the national average of around 18.6%, between June 2009 and June 2010.
Jaxay Shah, president of the Confederation of Real Estate Developers Association of India (CREDAI) – Gujarat, also acknowledged the same and said that the higher GDP rate in the state and the infrastructure available have lent a boost to the market. There still remains a lot of scope for the real estate industry in Ahmedabad, he said. Realtors believe that better living conditions could be making Ahmedabad a viable alternative to Mumbai.
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]]> http://voteupindia.com/35-hike-in-ahmedabad-property-prices-post-recession/feed/ 0 35% Hike in Ahmedabad Property Prices Post Recession http://voteupindia.com/india-properties-real-estate-india-indian-property-news-site-%c2%bb-35-hike-in-ahmedabad-property-prices-post-recession/ http://voteupindia.com/india-properties-real-estate-india-indian-property-news-site-%c2%bb-35-hike-in-ahmedabad-property-prices-post-recession/#comments Mon, 20 Sep 2010 13:45:19 +0000 somya harsh http://voteupindia.com/?p=4425
About a year and a half ago, recession in the city realty market had builders and buyers alike, worried. However, about a year since the first signs of recovery in June 2009, realty in Ahmedabad is back and booming. In fact, property prices in the city have inched up by nearly 35%.
The high economic growth and rate of urbanisation, along with the improvement in infrastructure in the state, have been catalysts in the growth of the real estate market. And the boom is not restricted to the western side of the city alone – properties across the city, irrespective of location, have witnessed a steep rise in prices.
However, Ahmedabad had been anything but spared by the global meltdown. The property market in the city had been considerably hit by the recent economic slowdown. But property prices started moving northwards in June 2009.
“If you compare the pre-slowdown prices with the present ones, there has been an increase of about 22-25%. However, if you consider the cumulative rise in prices since the worst phase of the downturn, the increase has been almost 35%,” said Suresh Patel, GIHED president.
He said that the property prices in the city went down by around 12-15% due to the recession, and it took around four-five months for the prices to get back to the pre-slowdown level. “After that, they have increased by around 22-25%,” said Patel.
Online real estate service provider company Makan.com’s property index shows that realty prices in Ahmedabad have grown by 36.8%, compared to the national average of around 18.6%, between June 2009 and June 2010.
Jaxay Shah, president of the Confederation of Real Estate Developers Association of India (CREDAI) – Gujarat, also acknowledged the same and said that the higher GDP rate in the state and the infrastructure available have lent a boost to the market. There still remains a lot of scope for the real estate industry in Ahmedabad, he said. Realtors believe that better living conditions could be making Ahmedabad a viable alternative to Mumbai.

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This post was submitted by somya harsh.

]]> http://voteupindia.com/india-properties-real-estate-india-indian-property-news-site-%c2%bb-35-hike-in-ahmedabad-property-prices-post-recession/feed/ 0 I-T raid on Amprapali, Paras yields Rs 26.5 cr http://voteupindia.com/i-t-raid-on-amprapali-paras-yields-rs-26-5-cr/ http://voteupindia.com/i-t-raid-on-amprapali-paras-yields-rs-26-5-cr/#comments Sun, 12 Sep 2010 04:20:50 +0000 Mudit Agrawal http://voteupindia.com/?p=3547
New Delhi: The income tax department on Thursday conducted raids on two real estate firms—Paras and Amrapali group—seizing over Rs 26.5 crore cash. The unaccounted cash could turn out to be higher as some lockers of the companies are yet to be opertated.

With search and survey operations conducted at 44 locations all across the country, it took Central Board of Direct Taxes (CBDT) about 240 tax officials to conduct the searches. The premises of both the companies in Delhi and NCR and three locations in Uttar Pradesh were searched, senior tax officials said.

While, income tax department sleuths recovered Rs 22.38 crore from residential premises of Paras, it recovered Rs 4.17 crore from the premises of Amrapali Group. The Amrapali group’s seizure includes unaccounted Fixed Deposit Reciepts worth Rs 2 crore.

Paras group’s 12 and 9 premises were searched by the tax department and Amrapali’s 14 and 9 premises were raided.Paras group is mainly involved in dairy business but has also diversified in reality, retail and hospitals. The reality business is carried out by Pras Buildtech and the group’s hospital business is managed by Pras Health Care.

Amrapali group is in the reality business with many residential projects under way.

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This post was submitted by Mudit Agrawal.

]]> http://voteupindia.com/i-t-raid-on-amprapali-paras-yields-rs-26-5-cr/feed/ 0 Sign the right agreement, while buying a home http://voteupindia.com/sign-the-right-agreement-while-buying-a-home/ http://voteupindia.com/sign-the-right-agreement-while-buying-a-home/#comments Fri, 16 Jul 2010 17:12:33 +0000 Harshit Agrawal http://voteupindia.com/?p=556

Home seekers are always advised to make sure that the sale/purchase agreement is in the prescribed form, while entering into an accord with a builder.

Otherwise, home buyers may find that the agreement provided by the builders has additions and alterations, working to the benefit of the developer.

The agreements drafted by builders may feature terms and conditions that are contrary to the provisions of the Maharashtra Ownership of Flats Act and Rules, as well as the Maharashtra Cooperative Societies Act.
To combat this, the authorities have brought out a prescribed agreement form, to protect the interests of the buyers.

Here are some particulars of that prescribed form:

The agreement should specify the date, by which the possession of the flat is to be handed over to the purchaser .

It should clearly mention the carpet area of the flat, including the area of the balconies, which should be shown separately.

It should specify the price of the flat, plus other costs, including the proportionate price of the common areas and facilities, which are to be paid by a purchaser and the intervals at which the instalments should be made.
The agreement should inform the purchaser of the nature of the organisation that is to be constituted by the persons, who have taken or will take the remaining flats in the building.

It should include the nature, extent and description of the common area and facilities. The agreement should clearly state the use for which the flat is intended and also impose restrictions, if any.

The agreement should also have a certificate by an attorney-at-law or advocate , under clause (a) of sub-section 2 of section 3.

It should also have attachments of the property card or extract of village forms VI, VII and XII or any other relevant revenue record, showing the nature of the title of the promoter to the land, on which the flats are constructed or are to be constructed.

The agreement should also have the plans and specifications of the flat, as approved by the concerned local authorities .

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