Indian Property News on 'February, 2007'

Property Evaluation & Investment Made Easy

There have been many misconceptions regarding realty valuation and market rates.

But now a handy and reliable tool to evaluate a property and location for property investment is at hand in the form of RESSEX ( Real Estate Sensitivity index). Read More »

Next to Come - Hotels Offering Self Service Options to Guests

The current economic growth and an increase in number of business travelers, there is a scarcity of hotel rooms. This rendered a chance to most hotels to increase their tariffs by as much as 100% over the past one year. Developers are coming with a new trend to give a start to another niche in the hospitality sector.

The demand for hotel rooms is going through the roof. Most business individuals find it irksome to find a comfortable room at rates that don’t cost the moon. Two such hotels are leading in this trend that analysts say could spread quite rapidly in Pune. Read More »

Assotech Bullish on Building Townships

Assotech is on its way to make a mark in Indian residential segment with the development of a mega project like India’s first global city on the proposed Delhi-NCR Ring Road, connected with expressways like NH 24, and Noida-Greater Noida Expressway.

The group envisages to come up with an exclusive township featuring an array of top notch facilities. This plan boasts of building a vibrant new community of mixed uses for families and young professionals, says Sanjeev Srivastav, marketing head, Assotech Group. Read More »

RBI Restricts NBFCs from Investing in Real Estate

The Reserve Bank of India (RBI) tightened the norms for the banks to lend to real estate. Now, it targets the finance institutions investing in real estate by releasing stringent rules for them as well.

The new policy will enable RBI to monitor the market exposure of finance companies on a monthly basis. The central bank has redrafted the rules for such institutions and come out with deposits and another for those not availing of public deposits. Read More »

Raised Excise Duty Hurting Cement Makers

The government has proposed to raise the excise duty on cement to limit increasing inflation. It would be done by bringing a differential duty structure on the commodity. From now onwards, it would cost Rs 600 per tonne if the retail price exceeds Rs 190 per bag whereas it is Rs 408 per tonne irrespective of the retail price.

Cement manufacturers are looking upon the move as an unnecessary step. They want the taxes to be simplified. The compliance cost of administering such a difficult framework will defeat the purpose, says Ajit Rande, chief economist, AV Birla Group. Imposing such a heavy excise duty on selling price will make it hard to monitor and will raise too many litigation issues, say industry experts further. Cement prices are already around Rs 200 per bag. This clearly underlines the reason for industry being anxious over the government’s decision. Read More »

Govt. to Set ‘Authority’ to Examine Land Claims for SEZs

With more and more real estate developers investing in special economic zones (SEZs), there is a widespread fear of these innovative development activities to turn into real estate ventures.

This encouraged the government to think about setting up an authority to inspect claims of land sought doer development of SEZs. The team will comprise of bureaucrats and experts to decide the authencity of claims for land by SEZ applicants. Read More »

IT Sector Expanding Horizons in Tier III Cities

Tier III cities are in realty race and are attracting large interests from real estate developers as well as potential investors. IT/ITes companies and upcoming retailers are jostling hard to make profits on the first mover advantage in these markets. They are counting on the factors like low property rates, availability of vast land, a great workforce, and improving living standards.

The growth of Indian rich and consuming class coupled with dropping rates and other fiscal investments on home loans has been major reasons increasing appetite of the average Indian consumer. This has been further fuelled by growing working population in the age group of 25-55. Read More »

Merlin to Build Rs 200 Crore Office, Sports Complex

Real estate developer Merlin Projects Ltd would shortly start construction of Rajdanga Sports cum Commercial Complex in the eastern fringes of the city.

The total cost of the project is estimated to be Rs 200 crore. Apart from the multiplex, the complex would have a stadium of 5,000 seats, state urban development minister Ashok Bhattacharya said.

The project would have a gym, club and sports facilities for football, cricket and athletes, Bhattacharya said. Read More »

Government to Remove Stamp Duty on Property Deals

The stamp duty on property transactions will soon be removed thereby bringing a joyous time for home owners.

Stamp duty would only be imposed on the first transaction of land, as per the 2006 National Urban Housing Policy. The provision is waiting for the final nod from Cabinet.

According to today’s scenario, societies and housing co-operatives require to encourage the group housing. Stamp duty in such cases at the stage of raw land and first sale thereafter would be imposed on value added basis. This will help the property rates to get stable to the first purchaser and housing land remains a liquid asset. Read More »

Westend Greens’ Farmhouse Fetched Rs. 18 Crore an acre

The highest priced farmhouse deal has just taken place in India. A UK based property developer has purchased a 2.5 acre farmhouse in south Delhi’s tony Westend Greens for Rs. 45 crore.

The farmhouse was actually the property of renowned Khanna Jewellers. Such a property at Westend Greens was sold out for Rs. 28 crore, in step with the going rates of Rs. 8-11 crore an acre then.

The deal has certainly taken many people by surprise who opine it to be the most expensive deal in India for a 2.5 acre farmhouse. The Khanna Jewellers’ deal implies a going rate 70% higher than last year’s. Read More »