India companies may dole out 12% salary hike this year: Study - The Times of India on Mobile

http://m.timesofindia.com/business/india-business/India-companies-may-dole-out-12-salary-hike-this-year-Study/articleshow/11982944.cms

India companies may dole out 12% salary hike this year: Study - The Times of India on Mobile

NEW DELHI/ MUMBAI: Despite talk of a slowing economy, improved sentiments of late have warmed India Inc to the prospects of another year of double digit salary hikes. Indian companies plan to dole out an average of 11.9% salary hike this year, compared to 12.6% last year, according to a survey conducted by human-resource consulting firm Aon Hewitt.

Despite the moderation in hikes, salary increments in India will remain the highest in the Asia-Pacific region. While salaries in China are expected to go up by 9.5%, in Philippines employees will get a 7% hike. Globally, India ranks among the top five countries with maximum salary hikes.

"The year 2012 will be a growth oriented year for most companies and salary increases are more probable this year. While the projections for the increase are marginally less, the situation is much better than it was during 2007-2008 crisis," said Sandeep Chaudhary, practice leader, Compensation Consulting for Asia Pacific, Aon Hewitt.

With the rupee appreciating considerably over the past one month and consumer spending on better lifestyle on the upside, the survey shows that companies are concentrating on allocating the surplus cash to reward employees, who contribute significantly to their organisations" growth.

Even as the average salary hike is expected to be in the 12% range, the survey pointed out that the hikes given to critical talents will be 2%-3% more than the overall increments in an organization, a trend which has been witnessed across organizations in the last three years.
The trend continues for 2012, with a projected increase of 15.1% for this employee group.

Moreover, the salary increase for employees rated as "far exceeding expectations" is almost two times the salary increase compared to those "meeting slots online spielen expectations".

B S Murthy, CEO Leadership Capital, a boutique executive search firm, said that while the IT industry may see muted growth this year, growth across industries like FMCG, real estate, finance and others will be relatively better leading to good salary hikes. "For IT industry, hike in salary will be around 7%-10%, slightly lower than last year. Other industries, however, will see increase in the range of 8%-12%."
As far as sectors go, this year"s salary increase will be the highest for the Indian pharmaceutical industry, with a projection of 13.3% hike. The engineering design/services ranked the second highest on the salary hike table with a projected increase of 13%, which is 1.1% higher than the India average. The lowest hikes are expected to come in for the telecom and financial services sectors with an11% and 10% increase respectively.

Another big trend across India Inc has been the increasing focus on variable pay as part of total compensation. Top and senior management see 23% of their total compensation as variable (up from 16% in 2001) and even the lowest-rung entry staff get approximately 13% of their total compensation (up from 10% in 2001) as variable pay, said Aon.

However, high attrition rates are expected to plague companies owing to high inflation rates. "Companies are adopting different strategies to boost growth and rationalizing manpower is an option they may look at," Chaudhary said. Overall attrition rate is projected to be at 19.8%, with financial sector to top the charts at 29.3%.
Arun Gupta

Realtors hope Budget to make business briskier

http://www.business-standard.com/india/news/realtors-hope-budget-to-make-business-briskier/465343/

Realtors hope Budget to make business briskier

Realtors hope Budget to make business briskier
Want green development, end to hardening of interest rates
Vikas Sharma / New Delhi/ Chandigarh 

Feb 22, 2012, 00:26 IST

The real estate players are all ears to the upcoming union budget, as all of them are anticipating measures that would trigger a growth in the sector.

They also foresee an end to hardening of interest rates, as the developers are looking for the union budget to feature measures that would help ease the monetary policy.

The players are also seeking incentives for the promotion of green development, which would help reduce carbon footprints.
The third quarterly result reflects the concerns on sales and profits, while retiring debts remain a significant challenge for the real estate players.

While the net profit for Parsvnath Developers Limited had declined by 28 per cent in the third quarter, DLF continues to struggle with a debt which is still above Rs 22,000 crore.

Looking ahead, most of the real estate players are anticipating a benign interest rate regime that would ease some pressure.
High costs of funds is one of reason that Pradeep Jain, as chairman of Parsvnath developers, says has put pressure on the margins for the company.

Jain, who also heads the Confederation of Real Estate Developers’ Association of India (Credai), says the palyers were anticipating the forthcoming Union Budget to leave room for the RBI to address the issue of easing the country’s monetary policy. “Besides a benign interest-rate regime,” he said, “the Credai has also sought an extension of tax holidays for housing projects under Section 80IB (10) of the I-T Act, enhancement of the benefit to individual home buyers and extending I-T benefit to affordable housing projects.”

As for DLF expectations from the budget, its executive director (north) Rahul Mehta notes that the construction sector is among the largest employers.

The growth in the sector has a direct impact on ancillary industries such as steel and cement, thus creating a ripple effect in the market. Hence, as the budget needs to provide the requisite stability to the economy, it now needs to focus on strengthening the real estate sector. Brotin Banerjee, managing director and CEO of Tata Housing Development Com-pany Ltd (THDCL) says it is time the government started announcing sops for green projects that could lead to increase in the green projects.

The sector contributes to 5 per cent of global carbon emission. Also, consumers opting for green developments should be incentivised by reducing stamp duty, Banjeree added.

In the case of houses raised under a budget of Rs 35 lakh from the current cap of Rs 20 lakh. This is considering the rising property prices, Banerjee said.

The realtors believe more customers could be incentivised by an upward revision in the interest on the deduction limit of home loans -- under Section 24 of the Income Tax Act: from Rs 1.5 lakh to Rs 2.5 lakh.

Lowering the I-T rate on rental income on residential units from current rates as per tax slabs to a special rate of flat 15 per cent or increasing the standard deduction from the rental income under Section 24 of the I-T Act from the currently 30 per cent to 50 per cent, he added, would “encourage rental housing and thereby help overcoming the situation of un-affordable housing”, he added.
Arun Gupta

NRIs seek stability in real estate

http://postnoon.com/2012/02/21/nris-seek-stability-in-real-estate/30814

NRIs seek stability in real estate
Om Ahuja

Recently an acquaintance – a fund manager by profession – relocated to India to set-up a domestic private equity (PE) fund here. He had invested in a Mumbai residential property strategically located close to the primary business district and an international school for his kid. This investment, done a few years back, helped him crystallize his plans for relocation to India and start his venture without spending time in finding the right location, house and school.

What I found most interesting was that he had not even considered eventually relocating to India when he bought this apartment. He had simply done it for investment five years previously.

To date, I have not met a single non-resident Indian (NRI) who is not keen to buy real estate in India. Home ownership in this country is one of the most satisfying means available to them to stay connected to their motherland. Very often, such investments in their country of origin help them to maintain their relationships back home while they make their fortunes abroad.

A few weeks back, I met another NRI businessman – earlier based out of Madrid and now relocating to NCR on the heels of the Euro crisis – who was seeking to build a local business base here. Achieving this while resettling family on all fronts has not been an easy task for him. He is on the lookout for the ‘best’ location for a residential property in NCR and naturally finds the cost of properties in the prime areas staggering and beyond belief.

He had not considered investing in a property earlier. Completely out of synch with the market dynamics back home, he blithely assumed that his foreign-earned savings would make finding a luxurious home a breeze. He was ill prepared for the astronomical ticket sizes that now prevail.

Own a home here

Over the past few years, we have noted that NRIs are investing into residential real estate specifically in large Indian cities to build a back-up base in the country. This particularly applies to NRIs with professional/entrepreneurial ambitions who intend to set up businesses in these cities in the future.

Post the 2008-2009 global financial crisis (GFC), India has stood out as a showcase example of financial stability, specifically in terms of its conservative banking sector. More than anything else in the past, the GFC caused NRIs to seriously contemplate owning homes in India as their rattled confidence in all things foreign gave way to a yearning for familiarity and stability on both on the personal and professional fronts.

No one can exactly predict the fate of any currency, or the stability of any economy. Economies are notoriously ‘subject to market risk’ – for instance, no one had expected that west Asia would see political uncertainty a few years back. However, when it comes to personal and career stability, there must be no margin for error. The trends suggest that more NRIs are taking important decisions with regard to owning real estate in India.

Rules of engagement

NRIs have no restrictions limiting them with regards to how many commercial or residential properties they can own in India. However, there are restrictions on the repatriation of sale proceeds, which is limited to two units. Effectively, this means that NRI face no restriction while investing into commercial or residential real estate in India. However, when a NRI decides to sell and take the money back to the country of residence, he can do so with the sale proceeds of only two units.

NRIs can invest into real estate by remitting funds to India through normal banking channels, or by invest through funds in a Non-resident external (NRE)/ Foreign currency non resident (FCNR)/ Non- resident ordinary rupee (NRO) accounts maintained in India. They cannot make payment via travellers’ cheque or foreign currency notes. They are also restricted from making any payments outside India or settling payments through exchange of funds outside the country.

NRIs can avail home loan from Indian institution approved by the National Housing Bank (NHB), and loan repayment can be done either through inward remittances, debit to a NRE/FCNR/NRO account, via rental income earned in India or by borrowing from close relatives residing in India. NRIs can also avail of home loans from the employer in India, provided specific terms and conditions listed by RBI are met.

NRIs can mortgage residential property in India with an Indian financial institution without any approval from RBI. They can also mortgage it with a foreign financial institution with prior approval from RBI.

NRIs can rent out their residential property without the approval of the RBI in India. Rent received can be credited to NRO/NRE account or remitted abroad. Authorised dealers have been empowered to allow repatriation of current income like rent, dividend, pension, interest, etc. of NRIs/ a person of Indian origin (PIOs) who do not maintain an NRO account in India, based on appropriate certification by a chartered accountant confirming that the funds proposed are eligible for remittance and that applicable taxes have been paid or provided for.

RICS launches best practice standards for realty

RICS launches best practice standards for realty

by CW India Staff on Feb 20, 2012

In an effort to enhance professionalism in the industry, RICS has launched its Red Book of Valuation Standards and Global real estate agency and brokerage standards at the recently concluded real estate conference in Mumbai.

The RICS standards, which have already been adopted in a number of countries, look to provide an overarching international framework for all property brokers worldwide. Based on 12 high level principals towards fairness and transparency; the purpose of these standards is to ensure that clients receive objective advice, delivered in a professional manner that is consistent with internationally recognized standards. Four international property consulting firms– CBRE South Asia, DTZ India, Colliers International and Re-MAX– having their operations in India, have decided to adopt RICS real estate standards.

Sachin Sandhir, MD, RICS South Asia said, “RICS has been a strong advocate of change and professionalism, in an otherwise non transparent and fragmented Indian real estate market.

I am happy to note that leading IPC firms, which have been at the forefront of professionalism, have decided to adopt the RICS Global real estate agency and brokerage standards.”

RICS Red Book of Valuation Standards (India edition), which was also launched during the conference, set out six principle based IVS-compliant valuation standards that provide professional benchmark (or an effective ethical and practice framework) for Indian valuers to undertake reliable valuations.
“One of our guiding principles at CBRE has been to maintain the highest standards of service and ethical conduct while working with clients. It is the cornerstone of our business and what we believe sets us apart from the others. We are therefore happy to work with RICS to further adopt the RICS Real Estate and Agency brokerage standards for all our brokerage departments across India,” said casino netherlands Anshuman Magazine, Chairman & MD, CBRE South Asia.

Anuj Puri of Jones Lang LaSalle feels it’s a good move from RICS whose ‘contribution as a global standard setting professional by way of globally consistent yet locally relevant standards is significant. “RICS Real estate Agency and Brokerage standards, which provide the first ever international framework for best practice in execution and delivery of real estate agency services, are to be encouraged, as they demonstrate a culture of fairness and transparency, leading to higher investor and consumer confidence. JLL welcomes this important initiative,” he added.
The day-long conference saw some of the stalwarts of the real estate industry taking part in panel discussions on a number of key issues concerning the industry.

Arun Nanda of Mahindra and Mahindra spoke about the significance of instilling trust as well as the importance of timely project delivery to win trust and confidence of consumers.

Speaking about policy reforms for urban growth and mission transparency, Lalit Kumar Jain, president, CREDAI voiced his concerns for proposed real estate regulatory authority as well as long delays in the project approval processes and advocated the need for a single window clearance process to avoid delays in execution.

Talking about his vision for Indian Real Estate 2020, Niranjan Hiranandani, CMD, Hiranandani Constructions gave examples of the rapid transformation India has undergone over the last few years. Given this, he shared encouraging words about the potential of the sector to build enormous quantum of housing required to meet housing shortfall in the country.

Cement prices in India up by 15pct in 11 months - CRISIL - 25096

http://www.steelguru.com/indian_news/Cement_prices_in_India_up_by_15pct_in_11_months_CRISIL/250965.html

Cement prices in India up by 15pct in 11 months - CRISIL - 25096

CRISIL Research said that lower demand for residential real estate and slower pace of execution of infrastructure projects weighed down demand for cement in the April 2011 to January 2012 period. Demand for cement grew at a subdued pace of 6.3% YoY.

With huge capacity additions during casino pokies games the same period, operating rates declined to 73% as compared to 77% in the previous year. Despite this fall in operating rates, cement prices rose by 15% YoY. This was mainly due to production cuts by cement manufacturers in the South, the region which witnessed the maximum price increase.

In January 2012, the average pan-India retail cement price marginally corrected by around 1 per cent on a month on month basis to INR 283 per bag. Mr Ajay D"Souza head of CRISIL Research said that “We believe that the pan-India cement price is likely to remain firm in February 2012, despite the rollback of the hike in coal price by Coal India.”

Arun Gupta

Brace for 10-30% price rise, delivery delays: real estate players

http://www.thehindubusinessline.com/industry-and-economy/article2907505.ece?homepage=true

Brace for 10-30% price rise, delivery delays: real estate players

Real estate players have said housing customers should brace for a 10-30 per cent rise in property prices in 2012-13. Also, delivery delays and speculative price spirals could further pinch the customers" pocket in the forthcoming fiscal, they warn.

Mr Navin M. Raheja, Chairman, Raheja Developers, said, “In all likelihood, prices will rise in the medium-term. The cost of land is going up. Funds are restrictive and material cost is also steadily rising. Speculative prices have slowed sales. People with disposable income are also driving up the prices so there is a huge demand-supply issue.”

Residential property

Residential property accounts for 80 per cent of real estate market in terms of volume, growing at about 35 per cent annually.

Mr R. R. Singh, Director-General, National Real Estate Development Council (NAREDCO), said that the Government needs to unlock land value to help end consumers. “There is a huge land bank. Government should sell it at cost price to bidders. This will help ease the demand supply issue.”
Also, he said the Reserve Bank of India"s latest notification to banks to exclude stamp duty, registration and like charges while calculating the value of a property they intend to finance, will lead to defaults and also higher price at the consumer end.

“The notification effectively means home buyers would have to arrange for more funds on their own, as banks will not lend for these charges any more. This could lead to a further decline in home sales in the lower and medium segments and also put additional burden on consumers,” he said.

Asked whether the draft Real Estate (Regulation & Development) Bill, 2011 would help in making the sector transparent, Mr Raheja said the draft was highly disappointing and against developers. “We believe that the regulator could be just another authority apart from local and State authorities, which could lead to delay in sanctioning of projects and be a source of corruption.”

Projects delayed

Meanwhile, Mr Santhosh Kumar, CEO – Operations, Jones Lang LaSalle India, said, as many as 63 large residential projects in NCR (accounting for almost 40,000 units) are delayed by over four years.

“Out of these, around 10 projects with 9,000 units have been delayed by over six years. This includes projects wherein possession of a small percentage of units has been handed over, while most of the whole project remains incomplete,” he added.

Keywords: Real estate, housing customers, Residential property

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Arun Gupta

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

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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