Indian Property News on 'March, 2007'

Construction Companies Being Bullish on Raising Capital Through IPO

Hindustan Construction Company Ltd. is planning an expansion through its newly formed real estate arm. It is raising Rs. 5000 crore for making investments in HCC Real Estates Ltd., through private equity participation, FCB issue and an IPO. The company is also looking forward to the prospects of establishing its own real estate fund for the country.

The company will use the proceedings to expand the real estate business in India and will take up the development of a land bank of about 5000 acres including the construction of exclusive IT parks and other office spaces and large townships. Read More »

FII Portfolio Under Lens

The finance ministry has decided that all pre-IPO placements to Foreign Institutional Investors (FII) by real estate players would be subject to three year lock-in, minimum capitalization of $5 million and development of at least 10 hectares of land. This is to be done according to the rules and regulations applicable to the sector.

The ministry has sent a detailed proposal for the review of the Cabinet Committee on Economic Affairs (CCEA). The move may slow down the pace of FII investment that the realty companies are boasting of. The FinMin does not seem to be agreeing with the stand of Department of Industrial Policy and Promotion (DIPP) and Securities and Exchange Board of India (Sebi) regarding consideration of pre-IPO placements as portfolio investment. Read More »

Delhi Development Authority Taking Delhi to New High

DDA is an acronym that stands for Delhi Development Authority, the agency developed to promote and look after the construction activities of Delhi, the Capital city. It is providing homes to a million Delhiites. The authority plays a significant role in the orderly yet rapidly development of the city.

Planning Department of DDA enjoys the status of being the largest town planners in any Development Authority in India. Preparing the plan, policies, proposals for undertaking the development of the city are some of the responsibilities that fall with the authority. Read More »

States to Follow Rules to Buy Farmland

The Nandigram episode has persuaded the Centre to bring amendments to the Land Acquisition Act, 1894 that will prevent state governments from acquiring the farmlands for private parties.

The day rehabilitation policy will come into effect; builders constructing special economic zones (SEZs) would be negotiating directly with the farmers holding the land.

There is a clause mentioned in the Rehabilitation and Resettlement Bill which does not allow the state government to acquire agricultural land on behalf of industrial promoters, says Raghuvansh Prasad, rural development minister. Read More »

Real Estate Market of Punjab on Development Track

Driven by ongoing construction activities, Punjab is witnessing constructive changes in its real estate market. This has attracted large interests from the Punjabis across the world, and is eager to add the state in their overall investment portfolio, but their potential has not been recognized by Indian builders for long.

However, few factors have come forward which are hampering the growth of the state. Earlier, urban planning was limited to Chandigarh, its satellite township Mohali, ad a handful of other cities. The remaining part was left in vain, and suffered from urban blight. In most cities including Amritsar and Ludhiana, infrastructure facilities are woefully not enough. Read More »

DLF, Nakheel Join Hands for Two Township Projects Worth $10 bn

Delhi based DLF Group has joined hands with UAE-based real estate firm Nakheel for two mega township projects which will see the firms pumping in a mammoth $10 billion in India. These ventures also mark the entry of Nakheel into Indian real estate.

A highly placed source said that, out of the $10 billion investment that the firms are planning to spend, 40 percent will go on buying the land. However, DLF has already acquired 70 percent of land. Read More »

‘Celebrity Craze’ Bringing 10-15% Hike in Property Prices

25% of the real estate buyers in the much-talked about residential complex, The Palm in Dubai and Britain, are British. Interestingly, appeal of the township is not what has grabbed their attention but the social milieu. The famous football player and heartthrob, David Beckham and his friends have bought some villas here.

The passion for such exclusive property is not limited to abroad. It can be seen among our very own Bollywood actors. Shahrukh Khan too has reportedly purchased property in manmade island, a reason why the project is evincing large interests in India. Read More »

SC Issues Notice to Property Developers

The Central and States Government have been given a notice by the Supreme Court, underlining the need of rules and regulations for property developers using mass media advertisements. The step will also bring protection for consumers.

A bench of Chief Justice K.G. Balakrishnan Justice P.K. Balasubramaniyam and Justice R.V. Raveendran issued a notice on the public interest litigation (PIL) filed by NGO Sanrakshak, bringing the use of disingenuous campaigns by the property developers, who claimed their projects to be approved by concerned authorities. Read More »

Govt. Likely to Impose 2 Percent Tax on Vacant Urban Land

The government is working on a policy that seeks to impose 2 percent tax on unused urban land and is likely to be announced by next week, said a highly placed source at Nirman Bhawan.

Once the vacant land tax will be announced, the tax factor will be calculated on the value of land registered with the development authority of respective areas.

The source said that it has been noticed that real estate builders use land to speculate the rates. They would buy land from the development authority and would leave the land vacant till they see a quantum jump in the land rates. Read More »

Real Estate to Provide Jobs to Two Million People in Next 5 Years

The success of Indian real estate sector has more to it than the soaring properties prices across the country. Employing 15 percent educated Indians; the market has displayed the potential to provide jobs to another two million people in the next five years.

Indian realty is such a vast field which has provided job opportunities to people from various other spheres like investment bankers, marketing managers, and visual merchandisers, says Sanyam Dudeja, VP-marketing, TDI Builders. Read More »