Real Estate 2013 : Top 10

The year 2012 hasn’t been great for the real estate sector, and things won’t be much next year either, says a report by PropEquity.
While the residential sector witnessed the maximum deals this year, private equity investment in the sector dried up, an indication of the overall negative sentiment plaguing the economy.
According to the report, the negative sentiment of 2012 may get carried forward into the first quarter of the next financial year, though the Real Estate Regulation Bill and the Land Acquisition Bill may help the sector revive thereafter.
The report takes a look at 10 markets that are likely to do well:

Read full :  Find out the top 10

Real Estate In India Is On Boom

Every year there is some kind of development taking place in India whether that development is in science and technology, economic growth and even in real estate. There is a certain boom in India housing market and this is the reason why many people are going for real estate in India. According to market experts, India housing market has got a lot of potential and in few years it will be riding high. That's why anyone who looks for safe financial commitment simply selects real estate in India.
The main reason for rising property in India is that it hosts the transparent legal and accounting system which ensures that you are investing your money in the right direction and also in the lucrative option. To attract more and more investors especially foreign investors' government has also liberalized the foreign direct policy. By this more and more investors are coming and investing their money into real estate India. In a recent survey it was revealed that, India stands on the fourth position among the top four Asian destinations for foreign direct financial commitment.
Seeing this current fad you can say that India is going in a right direction and soon more and more people will be coming forward to go for real estate in India. Above all, India is one such country that provides the perfect environment offering maximum benefits to the investors. People are more attracted towards India for the exact real estate is only due to the fact that India is the largest democracy with excellent democratic governance equally supported by strong and transparent legal and accounting system. Furthermore, it also has legal protection for ip rights. This means going for real estate in India is the wisest step.
Nowadays, apart from real estate in India no other business is lucrative and revenue generating, investing in commercial land, agricultural land, land for schools, hospitals or resorts, land for houses and shopping malls is the wisest choice. This current boom in real estate in India is equally teamed with the development taking place in various small India cities such as Indore, Jaipur, Ahmedabad or Coimbatore. Thus, you can say that investing money in property will safeguard your future.

The scenario

Despite inhibitors such as euro zone crisis, policy paralysis and dampening investor sentiments, the Indian economy has showed resilience given strong fundamentals like urbanization, a rich demographic dividend, rising disposable incomes, propensity to consume and propensity to save.

Our recent research paper Indian Realty Through the Looking Glass discusses the real estate industry's placement in the current scenario. The report throws light on what can unlock the logjams to fast track real estate development in India, alongside a detailed analysis of the performance of office, retail and residential asset types.

Highlights

Commercial: The period from 2Q12-4Q12 could provide a fast closing window of opportunity for both buyers and tenants of office space, when rental and capital values are moderately above their cyclical low.

Retail: Quality of retail space should be elevated to meet the standards demanded by international brands.

Residential: The residential market is full of demand, provided price is aligned to move towards affordability. Timely execution is a must to maintain healthy sales volumes as buyers' preference to buy is closely linked to the certainty of possession by the promised date.

Home / Vehicle loans to be costlier / Pre-payment penalty to go / Subsidy up to 15L on home loans

With the Reserve Bank of India (RBI) hiking the repo rate by 25 basis points, the home loans and vehicle loans are set to attract higher interest rates. The measure was taken by RBI to counter rising prices. The impact of a 25 basis points increase on EMIs for home and auto loans will be Rs 16 per lakh. So if you take a loan for Rs 10 lakh for 15 years tenure at 11.5% interest you were paying an E....
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Eighth India Aero Show (Intro Video)

The 8th Aero India air show kicks off with some of biggest, fastest and deadliest aircraft on display. Once again, it's the Indian air force's multi-billion dollar fighter deal that's the focus of the show.

DRDO test flies Rustom unmanned aircraft

The DRDO successfully flown in "RUSTOM", the medium altitude long endurance Unmanned Arial Vehicle (UAV) maiden flight here on Saturday.

The aircraft flown exactly as planned, up to a height of 3000 feet and remained airborne for 30 minutes and completed all mission requirements. It took off and landed (among the most challenging maneuvers for a UAV), using a runway at an air field owned by Taneja Aerospace, Bangalore, like a normal aircraft with the ground based pilot in full control monitoring every maneuver of the aircraft and auto mode remaining on.

Rustom is a Medium Altitude Long Endurance Unmanned Aerial Vehicle (UAV) being developed by DRDO for the three services, Indian Army, Indian Navy and the Indian Air Force of the Indian Armed Forces. Rustom is derived from the NAL's LCRA (Light Canard Research Aircraft) developed by a team under the leadership of late Prof. Rustom B. Damania in the 1980s. The UAV will have structural changes and a new engine.Rustom will replace/supplement the Heron UAVs in service with the Indian armed forces. Rustom UAV will be able to execute surveillance of the enemy territory up to a distance of 250 kilometers and carry a variety of cameras and radar for surveillance.

According to the ADE, the Rustom UAV will be better in its capabilities than the imported Israeli UAV Heron used by the Indian Army and will eventually supplement it. It will also be different from other Indian indigenous UAVs like “Lakshya” and “Nishant” and have many structural changes and a better customized engine.

12% Hike in Delhi and NCR Housing Rentals

House rentals on an average in Delhi and NCR have gone up by 12 per cent in the April-June period this year in comparison to the same period last year as per the real estate portal 99 acres.com on Tuesday said in a report. The report, which took 3 BHK flats into consideration, said the highest appreciation during the period in South Delhi was seen in the Saket area, where rentals increased by 31 per cent followed by South Extension, Safdarjung and Malviya Nagar by 24 per cent, 22 per cent and 21 per cent, respectively.

Home & Auto loans to be costlier

Many of the banks have raised their lending rate by 75 basis points. This makes the home and auto loans for the existing borrowers dearer. This increase is due to the RBI policy following which the lenders hiked interest rates. The RBI, had in its monetary review on July 27, raised the short-term borrowing (reverse repo) rate by 50 basis points and lending (repo) rate by 25 basis points.

Punjab National Bank (PNB), raised its benchmark prime lending rate (BPLR) by 75 basis points to 11.75 per cent.

Bank of Baroda, Corporation Bank and Oriental Bank of Commerce increased it by 50 basis points each to 12.50 per cent.

Union Bank upped their BPLR by 50 basis points to 12.25 per cent.

IDBI upped their BPLR by 50 basis points to 13.25 per cent.

SBI, has so far not hiked its BPLR .

Home and Auto Loans to get Dearer – RBI Hikes Interest Rates to Tame Inflation!

Winding the coil and unwind it! – thats what RBI seems to have done better than most other Central banks world over since the start of the global recession. In fact, RBI has gone one step further and announced that it will come out with more frequent mid-quarterly monetary reviews, on the lines of the major central banks abroad, for swifter monetary actions in sync with changing economic conditions.

In its first quarterly review of the monetary policy, RBI today increased both the short-term lending to 5.75% and borrowing rates to 4.50% from the immediate effect. However, the apex bank has kept the Cash Reserve Ratio unchanged at 6% on account of tightness of liquidity in the system.

At the same time, the RBI’s move to up short-term rates may also hinder industrial growth – particularly the manufacturing sector – as interest rates move northwards. The RBI has also revised growth forecast at 8.5% for 2010-11.

The RBI has raised its key policy rates for the fourth time this year, in its effort to unwind the stimulus measures offered during the global slowdown, by relaxing the interest rate burden and providing boost to the consumption in the economy. This forceful hike also comes on the back of stubbornly-held double-digit inflation (10.55% in June).

The RBI has hiked the repo rate – the rate at which banks borrow from the RBI – by 25 basis points. However, an up-tick of 50 basis points in the reverse repo rate – the rate at which banks lend to the RBI – has been above analyst’s expectations who had expected a 25 basis point increase in this key policy rate.

The central bank has raised its projection for the headline inflation for March end to 6% from 5.5% as forecasted earlier. With robust rebound in the real economy, the RBI has felt the need to sync the policy rates with the current market conditions and ensure price stability necessary to support this much-needed high growth.

With as many as four hikes in this year, aimed at taming inflation, the fears about bank funds getting costlier could well trickle down into the real economy in the form of costlier as well as reduced lending opportunities to the industry.

THE RISE OF AFFORDABLE HOMES

The concept of affordable homes came into existence after the recession that hit real estate industry in 2008. From the beginning of 2000, a house meant stretching resources to the maximum due to the IT driven property boom. Since many people could not afford the sky-rocketing prices, they were left out of league.

Although property prices were comparatively lower at the outskirts but buying there was not considered wise since the connectivity was inadequate.

After some years came the 2008 recession. The lapse of the IT sector which resulted in job uncertainty all around hit the realty sector, in the very similar manner as it did to many others.

Then the realty market which was much affected by the IT sector went under a price correction. With this correction came the new concept of Affordable Homes.

Home prices to go up by 2.5pc as service tax kicks in . . .

   Home prices will increase by about 2.5 percent with the  implementation of service tax on the residential segment with  effect from today, a leading property consultant said.

   “The implementation of service tax on residential properties  will result in an increase in the price of homes for end-consumers. Developers will justifiably be unwilling to  absorb this new tax burden and naturally pass it onto the  buyers,” Jones Lang LaSalle Meghraj senior vice-president for  capital markets Gautam Hora said.

   “The increase would be to the tune of 2.58 percent. Following this, overall demand and sales of residentialproperties will take a significant hit in all cities,” Hora  added.

   In the budget 2010-11, Finance Minister Pranab Mukherjee had  brought in real estate complexes under the ambit of service tax,  unless the entire consideration for the property is paid after  completion of construction.

Overview on Indian Real Estate Scenario

The flexible nature of the Indian real estate has earned its appreciated value over time. In fact, the rapid growth of the Indian realty market has enhanced aspirations for good standard of living. The present scenario of India has changed the way we live, from working style to recreation.

The major factors behind the rapid growth of the real estate are the relaxed policies taken up by the Indian Government on Foreign Direct Investment. The reform measures initiating strong economic development and the easy home loan terms and conditions, followed by increase in income levels, purchasing capacity and urbanization have expanded and shaped the current Indian Real Estate Scenario. Let us take a look at the factors in detail that has boosted the growth of the property market.

Factors behind the Growth of Indian Real Estate

• The FDI policies of the government encourage increasing number of foreign countries to invest in Indian properties. India has replaced US and ranks second most preferred location for real estate investment. During the period of 2004-05 US$ India attracted over 2.38 billion while in the first half of 2005-06 fiscal the nation had over 3 times of the foreign direct investment at US$ 7.96 billion. In has now become one of the dominant host countries for FDI in Asia and Pacific (APAC).

• The positive reforms implemented by the government has also initiated the growth. The real estate has grown so vast that the industry has turned out to be the second most employer after agriculture. Real estate of all forms ranging from residential, retail to commercial are being developed in full scale in cities like Mumbai, Delhi NCR, Kolkata, Chennai and many others.

• It is estimated that India would be producing about 2 million graduates in the ensuing years that would cause demand for 100 million square feet of office and industrial space.

• The presence of world renowned Fortune 500 companies further attract other major companies to establish their operational base in the country, hence generating demand for corporate spaces.

Real estate sector picking up: Industry body

he real estate sector is picking up after the slump witnessed during the global economic meltdown, an industry body said on Monday.
"In Chennai alone, in the whole of last year the total occupancy level was 2.6 million square feet. But in the last six months, we had crossed 2 million square feet of occupancy, which shows a rapid growth," National Association of Realtors Committee's media head Ramesh Nair said.
Demand has been growing at a decent rate and the property consultancy industry has tremendously evolved in the last 15 years, said Nair, who is also the managing director of the city-based real estate developer Jones Lang La Salle.
In view of this, the association, which represents over 1.2 million real estate agents spread across the country, will conduct its second edition of two-day seminar on 'NAR-India 2010' here from July 16, he said.
"The objective of the seminar is to educate the members of association on the latest trends in the real estate sector and to streamline the sector that is largely unorganised... This seminar will also help us to network with each other,"
NAR India 2010 chairman C Suresh Reddy said. He said over 500 delegates, including some from overseas, are expected to participate in the two-day seminar.

Real Estate Scenario in India

In spite with the recent ebb inside the authentic estate scenario, the Indian realty market place holds the 9th position among the retail markets of the world having a consistent development of 30% per annum. The favorable policies in the Indian government would be the significant initiator with the realty boom. In reality, the true estate industry Property In India is recorded to become second largest employer following agriculture. Concentrate is specifically on the numerous metros like Delhi and NCR, Mumbai, Kolkata for developing projects ranging from residential, retail to industrial complexes. Why Investing in Indian Realty Current market The boom in Indian economic system. Inside last financial year the economic system witnessed a considerable 8.1% boost. Due towards development, the purchasing energy from the investors has greater creating a rise within the request for realty properties. It’s got been estimated that there could be close to 2 million graduates from a variety of universities. Therefore, producing demand for offices and industrial Property In India room of above 100 million square feet. The new policies adopted by the Federal government of India concerning FDI (foreign direct investments) encouraging various nations to invest in Indian properties. The asset investments in India yields significant dividends. Being a result of which, about 70% on the investors are churning profit. Indian Actual Estate - Appealing Destination for FDI As currently mentioned, the positive approach on the Indian Federal government is the key element behind the growth on the Indian actual estate. The following may be the checklist of the FDI groups which have currently produced their mark inside Indian realty current market. List of FDI: Emaar MGF - The developer has invested a mammoth quantity of US$1 billion. It has the objective of developing pan-India projects ranging from residential, industrial, hospitality in integrated township and SEZ. Keppel Land - The Singapore based group in association which has a Bangalore Property In India based group has signed an agreement for creating residential and industrial buildings from the Indian Silicon City. DSP Merrill Lynch, Barclays Bank and Mauritius-based TH Holdings and Team have so far invested Rs.11, 460 crore inside the construction and realty sector. The record of foreign direct investors also contains AEA Holdings, RREEF (genuine estate purchase wing of Deutsche Asset Management), Capital Land, Royal RaJ Indian, Morgan Stanley True Estate Fund, IREO Investment Holding, Carrefour, Cayman Islands and several others. Some of the locations are frequently termed as “temples of new or modern India”, as a result reflecting the extent of property advancement in India.

Property prices in India see a marginal drop of 2% in April 2010

Property prices in India see a marginal drop of 2% in April 2010 says Makaan.com Property Index (MPI).

REALTY SECTOR REVIVES IN SOUTH INDIAN STATE OF AP

Realty sector in Hyderabad city of India's southern Andhra Pradesh state bounces back after the recent political crisis, as demand for residential and commercial properties grows.

The trend is growing evidently in Tier I and Tier II areas, as these are high-demand markets.

Hyderabad, is one of the ten districts of the Telangana region, affected by the agitation for a separate Telegana state.

Prices of the real estate sector have improved a lot with so many buyers coming in for the purchase.

"Market is improving as of now because of these developments happening in the Hyderabad areas like outer ring road area, Infosys campus and many other areas, so this is the right time to invest and to buy a customer," said Prabhakar, Sales Officer in Real Estate Company.

Some customers feel that Hyderabad city is the right place for investing money in the realty sector.

"NRIs, doctors and Information Technology (IT) people are coming forward for the investment and even some of the central government employees are also coming forward. As you know, now a days comparing with the facilities what we are giving on what rates we are giving, people are seeing benefits and on these bases they are coming forward for investments and showing interest," said Raj Kumar, Marketing Manager in Real Estate Company.

The realty sector is anticipated to grow at the rate of 30 percent annually over the next decade, which will attract foreign investment worth $30 billion, with a number of IT parks and residential townships being constructed across India.

The sector is one of the largest employers in the country, and has backward and forward linkages with about 250 industries, such as cement, brick, steel, building material and many more.

India 3rd Most Popular Real Estate Destination among Emerging Countries

Being heads and shoulders above the other countries, India has emerged as the 3rd most preferred real estate destinations. Real estate in India serves as an engine of the nation’s growth and presently it is one of the most lucrative grounds for investors who want to generate profit. The major boom in the real estate sector has been fueled by the industrial sector growth and liberalization policies of the government.

What has made India, the 3rd most popular real estate destination?

Budding economy: India’s growing emergence as a leader in the global economy is one of the major reasons of India becoming the 3rd most preferable real estate destinations. It has been found that the profit from construction especially IT sectors in India is 18% and 5% of India’s GDP is contributed by the housing sector. There is a demand for commercial real estate and the lease rentals have also been picking up. India has emerged as a fastest growing economy providing the best opportunity for capital appreciation.

Foreign investment: Investment made by the foreign investors in the townships, housing, construction projects etc. has enabled a high growth curve in the real estate sector. More than 18% foreign investors have shown interest in the real estate of India.

Market potential: As the 5th largest economy in the world, India offers high prospects for growth and earning potential. It offers unlimited opportunities for overseas trade.

Initiatives taken by the government: The initiatives taken by the government of India has offered a boost to the real estate sector making it the 3rd most preferred destinations. As a part of initiatives taken by the government, RBI (Reserve Bank of India) has declared concessional schemes for real estate sector. Steps have been taken to reduce the time taken for development of SEZ’s (special economic zones).

India’s real estate sector is extremely promising. An unhindered growth in the real estate sector for the next twenty years is expected. The above stated points clearly provide you with all the reasons that make India the 3rd most popular destinations among other emerging countries.

Selecting Real Estate Developers

eal estate developers are the visionaries who have insight to look at an empty space and determine its future. They have the potential to turn this empty space into marvelous buildings. Their job is very challenging, as they work on big scale projects that includes building multiple units altogether. But, these days, even small companies have joined the bandwagon of the real estate developers, thereby, making it difficult for the customers to choose reliable real estate builder & developer.

The major functions of real estate developers:

• Assessment of a particular site or property for construction
• Developing buildings and spaces
• Remodeling or renovating the decaying pieces of properties

Selecting Real Estate Developers:

It is vital to conduct a thorough research of the real estate developer with whom you are going to work in future. You can follow the underneath mentioned steps while selecting a trustworthy real estate developer:

• Market reputation: Go through the background of the real estate developer and determine his reputation in the market. Don’t take any decision in haste as it can prove disadvantageous for you.

• Ask the previous buyers: The best and sure shot way to ensure that you are dealing with the right real estate developer is to ask for the experiences of those who have already availed the services of the same developer. They can let you know about their experience in dealing with the particular real estate developer. You can know about the various aspects related to the construction process like timeliness, quality, behavior, delay in completion of the project etc.

• Know about the projects undertaken by the real estate developer: Get the information about the projects already undertaken by the developer and try to know about his position. Make sure to personally visit the project’s location, which has been built by the real estate developer. When you visit the site of the project undertaken, carefully examine the features of the building like furnishing, carpeting, architecture etc.

• Analyze the price quoted: Try and scrutinize that whatever you are paying for is worth it.

Therefore, experience acts as a major determinant while choosing an efficient real estate developer. So, a customer should ensure the above mentioned points, before hiring a real estate developer for building spaces.

ANALYSIS OF INDIAN HOUSING SECTOR

The realty market in India is flourishing these days. Not just the domestic real estate developers but also the investors from all across the world; especially the NRIs are attracted to this Indian real estate market. If this continues, it is then expected that very soon the realty market will overtake the other industrial sectors in terms of contribution to GDP growth.

Currently, the major constituents of the Indian housing industry are the affordable houses which target especially the low income groups and economically weaker class. In the field of medium and luxury housing, in next few years, it is expected to see a remarkable growth since this segment has huge prospects for further developments. The hiring of expat employees by the MNCs and then providing them with luxury housing benefits is one of the reasons for the development of this sector. Also, the demand for luxury housing by NRIs is acting as a catalyst in the growth of this sector in India.

RNCOS presented a report called “Indian Housing Sector Analysis” in which it gave exhaustive information and objective analysis about the growth of Indian housing industry. The current and past market performance, market structure and factors critical to the success of the Indian housing industry are also covered in this report.

Based on the relation between the past market growth and growth in base drivers, such as government support, long-term interest rates, disposable personal income, household size, contribution by housing finance industry, GDP growth, growing industrialization and competitive structure, a forecast is been made in this report about the Indian realty market.

India Real Estate Report Q3 2010

India Real Estate Report Q3 2010 ; Of all the countries whose real estate sectors are reviewed , few are experiencing economic conditions quite as promising for real estate companies as India. We forecast that overall GDP growth will accelerate from 7.0% to 7.8% over the coming year. The increase will be driven by domestic demand. Lending by India's banks is increasing again. Massive investment in infrastructure will, or at least should, facilitate urban development. After a poor monsoon and harvest in 2009, the fortunes of India's rural sector should also improve this year.
Nevertheless, India's developers still face difficulties. Across the five cities where we interviewed incountry sources - Mumbai, Gurgaon, Chennai, Hyderabad and Bangalore - rentals slumped in 2009. In some cases this was because of the perceived risk of a recession in India (or, in the case of Bangalore, a real recession in the export markets served by businesses in that city). In other cases, contradictory government policies posed additional problems.