Published & Updated as on - 2010-03-30
Mumbai Civic
Body Asks Builders To Provide Guarantee For Flat's Life
The civic body of Mumbai has asked builders and developers to give a
guarantee for the life of the flat they sell. The Brihanmumbai Municipal
Corporation (BMC) will recommend to the state housing department to make
essential amendments in the Maharashtra Ownership Flat Act so that
builders/developers provide a guarantee of the structure or building in their
agreement with the buyers. This move is aimed at ensuring that builders do not
resort to poor quality construction and defraud the buyers. This move was
initiated by Advocate Manmohan Chonkar, a Shiv Sena corporator, and approved
collectively by the civic general body in June 2008.
25 March 2010 Hindustan Times
Hike In Repo
Rate May Not Impact Realty Sector Now
Reserve Bank of India (RBI) has hiked key policy rates but the move is
unlikely to have an immediate impact on demand for homes unless loan rates
rise, say industry officials and analysts. The bank has hiked the repo rate by
25 basis points (4.75 to 5 per cent) and the reverse repo rate by a similar
margin (3.25 to 3.5 per cent) in a bid to control inflation. If inflation is
not tempered, real estate companies fear interest rates can rise sharply, which
will erode the demand for homes. "We have to wait and see if interest
rates harden. As of now, there have been no announcements and so presently I
would say that it will not have a major impact on the housing sector,"
said Mr Rajiv Talwar, executive director of DLF, the country's largest real estate
developer. Industry analysts feel that the real concern is inflation.
"This increase of 25 basis points in repo and reverse repo rates will not
impact the housing sector a lot. We may witness a nominal increase in interest
rates by banks by March-end. The concern, though, is that if inflation doesn't
come down, RBI will be forced to increase rates again by 50-100 basis points,
and that will have a major impact on housing loan rates," said Mr Ravi
Ahuja, executive director, project marketing development services, Cushman
& Wakefield.
21 March 2010 Business Standard
HSBC Looks At Major Share Of
Indian Home Loan Business
HSBC India is looking at a bigger share of the Indian mortgage business.
Mr Stuart A Davis, CEO (India) HSBC, said that the bank has a home loan
portfolio of about Rs 5,000 crore. "We are strongly growing our mortgage
business in the country and want to be seen as one of the prominent
players," Mr Davis said. The move could bring some good news for the job
market as well, as the bank would also need to increase its staff strength to
support the move.
21 March 2010 Hindustan Times
Home Prices In India Witnessed A
Major Hike In Second Half Of 2009
Residential realty prices across India witnessed a major hike in the
second half of calendar year 2009, as healthy absorption rates and buoyant
buyer and investor attitudes kept the demand growing. According to a 13-city
study conducted by property consultants Property Equity, Mumbai, Thane and Navi
Mumbai experienced the maximum price hikes in the affordable, mid- and
premium-housing segment. Mumbai saw a 30% price hike in the affordable housing
segment, followed by premium segment with 15% hike and about 11% hike in the
mid-income segment. The average price hike in the area was over 20%, as there
was a strong revival in volumes in the first half. Overall in India, affordable
housing witnessed the highest price appreciation, followed by premium housing and
mid-segment housing. However, in the national capital region (NCR), the prices
remained stable due to the large number of launches in the region as heavy
competition among developers pushed the prices down.
22 March 2010 DNA
Europe Real
Estate Eyes Tie-up In Calcutta
Europe has come up with investment proposals for Calcutta’s realty
sector in a move deemed "a first" by realty experts. Organisers of
Expo Real, the largest European B-to-B trade fair for the international
property and investment market, an annual event in Munich, met senior members
of Credai's in the city and offered a match-making forum with international
investors and tech titans at the October event in the south German city.
"The world's gaze is on India now, and we would like to take this
opportunity to build a bridge between Indian real estate projects and European
resources at Expo Real, and Calcutta is a good kick-off point for us," Mr
Eugen Egetenmeir, the managing director of Messe München GmbH, the organisers
of the trade show, told city realtors. The three-day business-driven event
focuses on commercial real estate, infrastructural real estate and residential
portfolios. The 13th edition is going to be held at the New Munich Trade Fair
Centre from October 4 to 6 this year, and the organizers of the event hope to
host an exploratory delegation from India for the first time.
22 March 2010 The Telegraph
PEBs Can Be A Boon For Realty
These days, manufacturing companies in the country are using
pre-engineered buildings (PEBs), which is made from putting together readymade
blocks, to quick-start operations at costs that could be 20-25 per cent lower
than conventional concrete buildings. These companies are driving demand in the
Rs 5,000-crore PEB industry, which uses steel as a major element. If the
residential sector also takes to PEBs, which offer time and cost advantages,
the demand growth would be exponential, as per industry officials. At present,
the demand for PEBs is driven largely by the growth in manufacturing, retail
and the logistics sector.
25 March 2010 Business Standard
Rentals In Mumbai Rise 30 Pc In A Year
With real estate prices reaching the sky, even rentals across Mumbai
have been looking skywards, causing heavy strain on those looking for homes. In
the last one-year, rentals have increased in the range of 10-30 per cent in
Mumbai, directly affecting almost one fourth of city's population that lives in
rented houses, mostly in the suburbs. The reason for this hike is large-scale
demand along with a huge shortage of rental homes. Presently, the rent of a
one-bedroom hall (1BHK) flat measuring 550 square feet at Powai is being quoted
in the range of Rs 20,000 and Rs 25,000 for a month. A year back, rent for the
same apartment was Rs 16,000-20,000 a month. In the same way, monthly rent for
a 1BHK flat at Malad is now Rs 18,000, while the same flat was being rented at
Rs 15,000 last year. In the Bandra-Santacruz belt, rents being collected are in
the range of Rs 30,000 and Rs 45,000 for a 1 BHK, which was previously between
Rs 25,000 and Rs 35,000. Mr Ram Prasad Padhi, CEO, Mumbai Propertys, a leading
real estate brokerage firm, said that rents correspond inversely to the limited
supply. "Many buyers deferred their decision to buy due to the rising
property prices. But their number is very large while the houses are limited
which led to the hike," said Mr Padhi.
24 March 2010 Hindustan Times
Property Rates May Plunge In Haryana
Good news for all those who bought apartments, plots or built-up houses
in Gurgaon and other Haryana towns in 2006 and later. These buyers are likely
to get some refunds from their respective developers as the Haryana government
might lessen the rate of external development charges (EDC) it charged from
developers during this time. The decision could also benefit prospective
property buyers who could see lighter price tags on property options. The EDC
is charged from developers by the Town and Country Planning Department and
given to the Haryana Urban Development Authority (HUDA) for providing public
welfare services. In turn, the developers charge the same EDC from buyers and
include it in the price of the property.
22 March 2010 Hindustan Times
The Realty Market Of Chandigarh Faces Severe Downturn
Deluxe apartments and luxury villas offered by India's biggest realtors
in Chandigarh are not just seeing a flight by investors, but have also failed
to entice new buyers. With downturn hitting these realtors hard and most of
these projects yet to take off, many a Punjabi's dream of a luxurious house,
seems to be crashing. A lot of investors are now pulling out of projects, even
at the risk of losing their earnest money, in absence of desired returns and
resale market. According to realtors and property consultants, around 10 per
cent of investors in and around Chandigarh and Ludhiana have given up their
stakes. It may not be a huge number, but considering that an average of only
40-50 per cent of each of these projects has so far been sold out, the
percentage of those surrendering their share is significant. Mr Guranchal
Sethi, a leading property consultant in Chandigarh said, "People here do
not have the spending power to buy expensive apartments. Most of these projects
were launched in 2006-07, when the realty sector was booming. Majority of
investors in these projects were NRIs, who were looking at quick returns for
their investments. But when the projects failed to take off and they failed to
attract premium because of initial high pricing, many investors started backing
out."
24 March 2010 Indianrealtynews.com |