www.arundevelopers.com

2012/02/18

Realty sector holds many options to suit every investor segment - The Economic Times


http://economictimes.indiatimes.com/markets/real-estate/realty-trends/realty-sector-holds-many-options-to-suit-every-investor-segment/articleshow/11930649.cms

Realty sector holds many options to suit every investor segment - The Economic T
imes

The population of cities in India will increase to 590 million by 2030. The scale and speed of urban transformation here over the next 18 years will beat any development that has happened anywhere in the world, except in China, according to a McKinsey Global Institute survey.
Urbanisation will spread out across the country, impacting almost every State. Five large States, Tamil Nadu, Gujarat, Maharashtra, Karnataka and Punjab, will have more of their population living in cities than in villages.

In a nutshell, 700-900 million sq mts of commercial and residential space needs to be built, or in other words, a Chicago has to be added on every year. The ensuing investment opportunities in different areas, particularly in real estate, need not be stressed any further.
The capacity to invest and the need vary depending on the individual, but there is an opportunity for every investor in real estate. For small investors who do not need housing immediately, investments in plotted developments are suggested, as land appreciates much faster than built spaces.

This is because of the simultaneous development in transport, connectivity and other infrastructure around. Areas close to industrial corridors, housing colonies and proposed transport corridors will be good for such investors in the long run, say industry experts monitoring investment trends in real estate.

Plot loans are now available from a number of housing finance companies and banks though at a higher lending rate than home loans. But it is still beneficial for investors parking money in plotted development projects to source funds through site loans as the due diligence process will also be done by the financial institution.

A number of layouts in north Bangalore in the price range of Rs 2,000-3,000 per sqft with a online casinos no download site loan option can be considered for a medium to long-term investment, according to property consultants. Further, improved connectivity to Electronic City and Bidadi along Mysore Road offers potential avenues for investments in plotted developments. Yet another belt is Hosur Road where industrial development is picking up and a number of plotted developments are under various stages of implementation.

Investment options in residential property in and around the city abound. The yield begins at four percent and depending on the location, specification, type of development and amenities offered in the project, goes up. The capital appreciation and fiscal sops add to the investment value.

There are row houses and villas coming up in the suburban and peripheral areas of the city. A distinct advantage of such options is they come with larger site areas that enhance the returns from the investment. There are pre-launch offers made during soft launches by some developers for investments in residential projects. The average yield can range between 18 and 25 percent during the project implementation stage.
Arun Gupta

2012/02/15

KfW earmarks 800 mn euros for India renewable energy projects


MUMBAI: German government-owned development bank KfW plans to lend 800 million euros in the 2011-12 calender year to finance various renewable energy projects in India.

"We have already financed around 1.5 billion euros in the energy secto
r in India. In addition to this, we plan to earmark another 800 million euros to fund the green initiatives of India this year (CY"11)," KfW Director Oskar von Maltzan told PTI on the sidelines of the "Renewtech India Summit" here.

The German government is keen to promote investment in energy-efficiency and renewable energy projects in India by providing sustainable financing through various agencies, he said.

"We finance those government agencies which either implement renewable energy projects or lend funds to private or public investors," he said.

KfW has provided funds to state-run power online casino reviews generating companies such as North Eastern Electric Power Corporation (NEEPCO) and NTPC for undertaking hydro and solar-based projects.

Power Finance Corp, SIDBI, the Indian Renewable Energy Development Agency (IREDA), REC and India Infrastructure Finance Company (IIFCL) are some of the entities being funded by the German bank.

KfW recently signed a loan agreement of around 52 million euros with National Housing Bank (NHB) to promote energy efficiency projects in the residential space, Maltzan said.

The foreign lender has also funded Energy Efficiency Services Ltd (EESL), which provides consultancy services on energy-saving appliances, buildings and turnkey projects.

KfW Bank is in the process of signing a 200 million euro line of credit with IREDA next month, Maltzan said, adding that so far, it has provided 140 million euros to the state-run lender.

KfW will also sign a loan agreement worth 100 million euros with NTPC for a 15-MW solar plant in Rajasthan in the next few months, he said.
In addition, it plans to lend 100 million euros to REC to enable the company to invest in various energy-efficiency and renewable energy projects, Maltzan said.

Furthermore, the bank is looking at funding different programmes that are being implemented by NABARD and the Maharashtra State Electricity Generation Company (MAHAGENCO), he added.

2012/02/14

NDTV Profit launches a new real estate show


http://www.afaqs.com/media/media_newslets/?id=53009_NDTV+Profit+launches+a+new+real+estate+show

NDTV Profit launches a new real estate show

View other Media Briefs

Section: TV Briefs Category: Media

Media News
New Delhi, February 14, 2012

NDTV Profit will broadcast a new real estate show called The Property Show, which will offer expert advice to viewers on all property related matters. The show will explain the intricacies of buying, selling and investing in property through live call-ins, debates and discussion.
Anchored by Manisha Natarajan, the show will also have a segment featuring legal, financial and construction advice from architects and designers on how to upgrade homes and offices.

For the first time in India, NDTV Profit and PropEquity, a premier Business Intelligence product, will guide viewers where to buy, when to sell and how to invest in property.

Backed by a scientifically researched database, NDTV Profit, together with their Knowledge Partner, PropEquity, will provide research transparency and intelligence in the opaque and fragmented real estate market to the consumer, casino spiele online to make the most informed decisions on their investments in property. This data and analytics platform was earlier only available through PropEquity to large institutions and banks to make multi-million dollar decisions. PropEquity, has a real estate data and analytics platform covering over 39,000 projects of 7,500 developers in over 40 cities in India.

Tune-in to NDTV Profit Monday to Friday at 7:00pm for everything you need to know about your property.

For further information, please contact:
PR Pundit
Parul Suri
Mobile: 919899973280
E-mail: parul.b@prpundit.com
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Arun Gupta

India’s Housing Loan Tax Ceiling May Go Up


http://www.loansafe.org/indias-housing-loan-tax-ceiling-may-go-up

India’s Housing Loan Tax Ceiling May Go Up

(Source: The Statesman/ANN) - In a bid to boost housing sector credit, the Indian government is contemplating to enhance t
he income-tax exemption for up to Rs 3 lakh(US$6,071) paid as interest on housing loans in a year, from the existing limit of Rs 1.5 lakh.

The government is considering to raise the tax deduction limit for housing loan in the coming Budget, sources said.
The Budget is scheduled to be tabled on March 16.

At present, a deduction of up to Rs 1.5 lakh is available from taxable income towards interest on loan taken for house. Besides, borrowers can enjoy exemption on payment of principal amount. However, it is part of exemption to savings capped at Rs 1 lakh per annum.

With the property prices and interest rates rising with each passing year, there is need to revise the limit, sources said.

In order to arrest the declining growth rate, the industry associations have demanded raising the tax limit ceiling for the housing loan. According to Ficci Secretary General Rajiv Kumar the exemption should be harmonised with the rising interest rates and increased to at least Rs 2.5 lakh. “We recommended that the existing tax deduction limit on income tax of an individual should be increased from the current level of Rs 2.5 lakh to at least Rs 5 lakh,” said CII Director General Chandrajit Banerjee. Of this, Rs 3 lakh should be towards interest payment to offset the impact of high interest rates, he said, adding the remaining Rs 2 lakh should be exclusively towards principal loan repayment as the present limit of Rs 1 lakh is already overcrowded with several other items.

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Echoing views, Assocham and PHD chamber said that exemption limit need to be raised both for interest and principal.
As per the Direct Taxes Code, which would replace the decades old Income Tax Act, there is income tax exemption for up to Rs 1.5 lakh paid as interest on housing loans in a year.
___
©2012 the Asia News Network (Hamburg, Germany)
Visit the Asia News Network (Hamburg, Germany) at www.asianewsnet.net/home/
Distributed by MCT Information Services
Arun Gupta

2012/02/13

Global real-estate markets continue promising trend


Global real-estate markets continue promising trend

The Nation February 13, 2012 1:00 am

While economic uncertainty still affects the main commercial real-estate centres around the world, global real-estate

markets are showing steady improvements, according to Jones Lang LaSalle"s new suite of global forecasting reports.

The firm"s Global Office Index reveals the fourth quarter of 2011 marked the eighth consecutive quarter where prime office rents have risen, up a further 0.8 per cent over the previous quarter and representing 6-per-cent growth over the fourth quarter of 2010. Global vacancy is edging down to the lowest point for the past two years at 13.6 per cent.

"The majority of global leasing markets are holding firm, and many are showing remarkable resilience, especially among the BRIC countries [Brazil, Russia, India and China], as well as robust showings from Canada, Australia, Germany and the Nordics," said Jeremy Kelly, director of Jones Lang LaSalle"s Global Research team and author of the firm"s Global Market Perspective. "While leasing markets in the major financial centres are softening, the limited supply pipeline should ensure that they do not move significantly out of balance."

Jones Lang LaSalle"s Global Office Index tracks the rental performance of prime office space across 81 major markets in the Americas, Asia Pacific and Europe. Key findings of the Jones Lang LaSalle"s Fourth Quarter 2011 Global Office Index include:

_ Rental growth rose the most in the Americas at 1.2 per cent in the fourth quarter over the third quarter of 2011, as landlord leverage gradually increased in the majority of markets.

_ Asia-Pacific markets saw rental growth decelerate from 2.5 per cent in the third quarter to just 0.9 per cent in the fourth quarter as corporate demand began to slow.

_ Despite the negative economic backdrop, Europe"s office markets showed some improvement over the fourth quarter with growth picking up to 0.4 per cent from a virtual halt in third quarter 2011.

_ Leasing volumes will be steady in 2012 with positive rental growth expected in most major office markets. Beijing, Toronto and San Francisco are expected to top the charts with potential double-digit increases.

Investors, already wise to the resilient fundamentals in the commercial real-estate sector,

continue to choose real estate given its attractive investment status compared with alternative investments.

The Global Market Perspective shows robust capital market investment volumes in the fourth quarter 2011. A total of US$411 billion (Bt12.68 trillion) was transacted in full-year 2011, up 28 per cent on 2010. 2012 transaction levels are set to match 2011, with upside potential in the Americas.

Arthur de Haast, lead director of the International Capital Group at Jones Lang LaSalle, added that the markets are witnessing a "flight-to-quality", traditional in times of uncertainty, as investors pivot towards core assets in those major cities with strong economic fundamentals and/or with "safe-haven" characteristics. While there is capital available for commercial real estate, debt financing around the global will be more constrained in 2012. We"re seeing capital appreciation slowing as yields flatten, and spreads between core and secondary assets widen.
While commercial real-estate expectations for 2012 have been tempered, barring significant financial system shocks, commercial real estate investment and leasing volumes are likely to be maintained at 2011 levels.

2012/02/08

High Street back with a vengeance


http://www.dnaindia.com/money/report_high-street-back-with-a-vengeance_1647217

High Street back with a vengeance

As consumers grab shopping carts and fill store aisles after a long recession, mall building is back.
About 15 million square feet (msf) of retail space was added last year, which, according to some estimates, is 130% of what was added in 2009 and 2010 put together.

Of these, about nine msf were added in the last six months. And more than 90% came up in bigger cities like Mumbai, Pune, Bangalore and Chennai, finds a study by real estate consultant CB Richards Ellis (CBRE).

Anshuman Magazine, chairman and managing director, CBRE South Asia, said, “On the back of growing urbanisation and an increase in the acceptance of organised retail, retailers have been expanding their operations across the country.”

All is, however, not hunky dory. While rentals are stable in most top cities, they have fallen at a few developments in Pune, Chennai and Hyderabad. Analysts say a huge supply pipeline is depressing rentals.

The recently launched Phoenix Market City at Kurla faced challenges in leasing out multiplex space. Sources said that film exhibitor PVR which turned down the offer citing high rentals, later settled for lower rentals.

With pressure on, the industry feels rental renegotiations are inevitable from the first quarter of the next fiscal. Pankaj Ahuja, proprietor, Rapid Deals, a real estate consultancy, said rate negotiations are not happening in the roulette established malls of Mumbai. “But some developments that are not fully operational are facing challenges. I wouldn’t be surprised if some of them cut rentals.”

The quality of malls is another concern worrying retailers. A recent report by Jones Lang LaSalle India said half of the upcoming malls are not worth a second glance as they are built in wrong locations and would not draw enough footfalls and high spenders.
Ashutosh Limaye, head-research and real estate intelligence service, Jones Lang LaSalle India, said, “We are stuck with the mistakes we made 3-4 years ago — creating too many malls. Few understood that building and running malls is a science, and that factors like catchment viability, location, supply benchmarking and mall management matter in their success.”

Also, retailers have started scouting standalone properties like old mansions, mixed-use buildings and small office blocks in established and emerging locations. “Big-format chains are mandating realty firms to broker deals for them,” said Limaye.

2012/02/07

Expats flock to India !


http://india.blogs.nytimes.com/2012/02/08/expats-flock-to-india-seeking-jobs-opportunity/

Expats Flock to India Seeking Jobs, Excitement

Sruthi Gottipati/The New York TimesA L’Opéra’s outlet in Khan Market, Delhi, one of the prefer
red hangout spots for expatriates living in the capital.

It’s movie night at Thomas Mehwald’s house in the Indian capital of Delhi and he’s showing a Rainer Werner Fassbinder flick to his eclectic group of friends. The film is perhaps the only German import at his Gulmohar Park house – besides Mr. Mehwald and his family. The 33-year-old economist, who’s been living in India for the last two years with his wife and son, has embraced the country since he first set eyes on it.


‘‘You discover in this chaos there’s order, which I still haven’t understood,’’ said Mr. Mehwald, 33, with a laugh and a swig of his Kingfisher beer, a ubiquitous brand in India. Although the chaos contrasts starkly to his life in Germany, he’s been able to find his footing here; he recently negotiated with wily brokers to rent a new apartment without getting ripped off — a surefire sign he’s acclimatized.
Mr. Mehwald is an advisor at Sa-Dhan, a nonprofit that works to build community development finance, which is at a critical stage in India. He said his job is a terrific learning opportunity he didn’t want to miss.

‘‘The future is here,’’ said Mr. Mehwald, who talks with a strong Indian cadence in his voice when he speaks in English. ‘‘I know they’ll be many innovations coming out of this country.’’

Mr. Mehwald is part of a growing number of expats flocking to India in the last few years eager to tap into the opportunities the country has to offer, witness its rich transformation and sample a way of life often very different from their native countries. Foreigners, of course, have flocked to India for centuries, as colonizers, missionaries, volunteers and escapees from persecution in other countries. This new wave is made up mostly of well-educated migrants from wealthier, more developed countries, leaving behind slow economies in search of job prospects and opportunities they can’t find at home.

‘‘I thought it would be a good adventure,’’ said Shannon Lee Zirkle-Prabhakar, 27, an American photojournalist who moved to Chennai last April with her husband. She said she had visited India once before, in 2005, but doesn’t remember seeing as many expats then. ‘‘I notice more now.’’
Although government agencies weren’t able to provide figures for the total number of foreigners in India, the Ministry of Home Affairs offered numbers that paint a stark portrait.

At the Indian consulate in San Francisco alone, the number of visas granted to Americans to work in India almost doubled, from 23,085 in 2009 to 47,929 in 2010. And those numbers don’t include Americans of Indian origin who have applied for special visas. In the same period in Beijing, there was a 51 percent jump to 32,932 Indian work visas granted. In the southern Chinese city of Guangzhou, that increase was 27 percent to 20,550; in Shanghai, a 30 percent rise to 24,382.

Other countries across the globe reflected the same trend. The number of Indian work visas issued in Singapore soared by 33 percent from 21588 in 2009 to 28650 in 2010. In Europe, the Indian visa office in Paris doled out 41 percent more work authorizations in the same period, while Berlin saw 48 percent more Germans clamor to work in India, granting 49,104 visas.

Analysts attribute the relative strength of India’s economy and foreign companies continued interest in India, for some of this rise.
‘‘There’s been a lot of development in the last three years. India was one of the very few countries insulated from the economic crisis,’’ said Dr. Soumya Kanti Ghosh, director, economics and research, at the Federation of Indian Chambers of Commerce and Industry, the nation’s premier business lobbying group. He credits strong external demand and robust growth for investors to see potential in the market.
Not all who come to India intend to stay for long periods of time. For instance, in Seoul, where the number of visas granted to South Koreans to work in India tripled from 10,030 in 2009 to 31,440 in 2010, officials say that many only make short trips just to manage their business interests.

Still, most expats are here to stay – at least for a while.

Those who plan to live in India for more than six months need to register themselves in the country with the Foreigners Regional Registration Officers. While 35,973 U.S. citizens (not including those eligible for special visas available for Americans of Indian origin) registered in 2008, 41,938 did so the following year, according to the latest figures available with the Ministry of Home Affairs. Expats from Britain, France, Germany and Korea contributed to a similar rise.

‘‘There’s a definite change,’’ said Francis Wacziarg, 69, a Frenchman who moved to India in 1970 and has been living here since, and who’s seen a surge of foreigners over the last few years who aren’t all tourists. ‘‘Now it’s more people who want to settle down and work either for a company or set up their own business.’’

When Mr. Wacziarg first came to India as the commercial attaché of the French embassy, he said there were hardly any foreigners living here. When he tried to set up a consultancy firm advising foreign companies on buying exports from India in 1978, he approached government officials in Mumbai and Delhi to make a case for himself because foreigners weren’t allowed to work in many fields or set up business in the country at that time. That changed with the liberalization of the Indian economy in 1991 and India gradually warmed up to foreigners.

Mr. Wacziarg today owns an export agency, a nonprofit music foundation and is co-chairman of the Neemrana hotel chain.

One of the other areas that has seen an influx of expats is the media world. In journalism schools in the US, graduates are encouraged to come to India because of mushrooming media organizations, vigorous newspaper circulations and a relatively free press. Many professionals with a nose for adventure looking to leave saturated Western markets are attracted to India.

‘‘There’s really been a sense of limitless horizons. There’s very little to restrain you. People’s ambitions are set very high and rightly so,’’ said Rodrigo Davies, 29, who moved to Mumbai two years ago to work as GQ’s online editor after seven years as a journalist in London.
‘‘In terms of opportunities, London is always innovating. But the number of businesses, publications opening there is a fraction of what’s opening here. A lot of companies here are going digital straight away.’’

With the soaring number of foreigners, Mr. Davies describes what seems almost like a thriving expat subculture in India. He said there’s a new restaurant or high-end boutique opening every other week in Mumbai and once a group of expats start talking about it, word spreads through the community quickly.

Belgian chain Le Pain Quotidien, The Table, which serves international cuisine, and French crêperie Suzette, are some of the eateries in Mumbai that are familiar to expats, said Mr. Davies.

‘‘You would see a disproportionate number of expats in these places.’’
Last year, French Tuesdays, an international club, reportedly drew scores of expats when it held its first event in Mumbai.
Meanwhile in Delhi, a moderated Yahoo group used by expats called Yuni-Net is rife with postings on topics ranging from available apartments to pleas to figure out India’s notorious bureaucracy.

It has yet to be seen whether the number of expats pouring into India will continue. The slowing economic expansion in the country this year, as well as new rules introduced by the government could serve as dampeners.
Foreigners must now earn the equivalent of $25,000 per year in order to be considered for employment visas, which they say is often an unrealistic figure, particularly if they don’t have much work experience or have a job in low-paying fields like India’s huge non-profit “industry.” Some, as a result, have to work for free, which limits their ability to stay in India.

The earning requirement is perhaps also a reason why recent immigration to the country has been mostly from the educated, higher economic bracket. India also has poorer immigrants, mostly undocumented, from countries that border it such as Bangladesh and Myanmar.
Expats might stick on though, irrespective of the new regulations. Real estate prices have shot up in Delhi neighborhoods widely considered magnets for expats. In Defence Colony, a South Delhi locality, multi-storey apartments cost 26,884 rupees per square foot in 2010, compared to 19,222 rupees in the same period in 2009, according to the property Web site magicbricks.com.

In the more exclusive area of Jor Bagh, that number rose from 37,541 rupees to 48,561. And apartments which cost 22,978 rupees per square foot commanded a 20 percent higher price tag in Vasant Vihar in just the span of a year.

This may be because there are still many factors that keep India an attractive destination including the prevalence of English and a culture where most people on the streets are willing to be helpful to the bumbling expat.

Mr. Mehwald, the German economist, said he’s even found himself becoming more gregarious than he was back in Berlin.
The trick to live in India, he said, is to ‘‘take things as they are.’’ That and not to trust brokers too quickly.