Indian Property News on 'July, 2007'

Residential Rentals in DU Areas go Through the Roof

Rents for residential property in areas inhabited by outstation population especially DU students are going through the roof. A two room accommodation in locations like Hudson Lines and Outram Lines is available at no less than Rs 10,000-Rs 12,000 per month. The rent is even much higher in nearby locations.

Surprisingly, the rents in these locations have exceeded what the amount being fetched by landlords in the posh colonies of Delhi. For example: A two-bedroom accommodation in South Extension comes at a monthly rental ranging from Rs 9,000 – Rs 10,000 per month. Read More »

It’s Time for a Realty Check in Delhi – NCR, say Hoteliers

With the land auctions for hotel sites in Delhi-NCR getting expensive, hoteliers demand a transparency in the bidding process. It should also be more effective.

The Delhi Development Authority is receiving prohibitive amount for land sites. This in return is pushing the property prices. Further, some sites are again and again put for auctions if they don’t attract a prospective buyer. This is completely unjustified, says Rajendera Kumar, president of Hotel & Restaurant Association of Northern India (HIRANI). Read More »

Delhi Govt. Brings Down the Rate of Stamp Duty

The Delhi Government, on Friday announced a cut in stamp duty on property prices by 2%. The move has been decided to access funds under the Jawaharlal Nehru National Urban Renewal Mission (JNNURM) as the programs need states not to exceed the stamp duty than 5%.

The stamp duty on properties registered in the name of men will now stand at 6% whereas it would be 4% for women. Read More »

Promising Times Ahead For Kolkata Real Estate

Kolkata property market has been growing by leaps and bounds and is today one of the most lucrative investment destinations in the state. The city has attracted around 25,000 crore in real estate over the past two years.

Gujarat real estate wins the second position with investments worth Rs 30,000 crore whereas Maharashtra comes third after West Bengal. Read More »

Property Buyers Beware! No Tactics before Income Tax Deptt.

New tax rules in Indian property market may have persuaded most property buyers to work out the ways to escape paying the tax.  However, the Income Tax Department will now keep a close scrutiny on those who are trying to evade the tax net despite high levels of income.

Under the scanner, especially will be commodity brokers and those buying property at the cost exceeding their annual income. Read More »

NRI Investments in Real Estate Stocks

NRIs are being bullish on parking funds they inherit in India into stocks and are least interested in taking money out of the country.

For the past few years, NRIs have been seen selling their ancestral land or any other property acquired in India followed by bringing the money abroad. Also, they preferred to save the money in banks.  However, the trend has been changing now.

Contrary to earlier scenario, NRIs are largely investing in IPOs and buying shares from the secondary market. Such investments are believed to have increased from $362 million in 2000-01 to $6.3 billion in March 2007. Read More »

Property Prices in NCR May Soar

Capital values of land in NCR have undergone a price correction. However, residential property prices will remain under pressure and are likely to soar a little, says a real estate report compiled by Knight Frank, a leading real estate consultancy firm.

Growing urbanization is another emerging factor pushing the demand for accommodation units in suburban localities of urban areas. This is why, there are plans being drawn to develop 530.50 million sq ft. of residential space in the grade A and B+ categories in NCR, Mumbai, Pune, Hyderabad, Bangalore, Chennai, and Kolkata. Read More »

No Takers for Service Tax

Imposition of service tax on commercial property rentals in Budget 2007-08 envisages widening the service tax net and imposing extra taxes on real estate, even as the real estate developers and tenants believe it is uncalled for. The only silver lining that can be seen is the possible increased transparency in buying and selling properties.

A multitude of developers own a large portfolio of assets, and investors buy property on a fixed return basis. Their returns will drop. Property developers and tenants enter into an agreement wherein any future tax liability will have to borne by the tenant. Most agreements do not include any clause regarding such additional taxes which can lead to disputes and litigation. Read More »

21 Railway Stations to Undergo Modernization

The Railway Board has given its nod to bring commercial development on the spaces available at 21 railways stations in major cities. A number of real estate companies are likely to make a beeline to upgrade, redevelop, and maintain the stations - creating space for the development of commercial ventures in the process.

Reconstruction of the Delhi Railway Station would see the investment of whopping Rs 7,000 crore. The proposed project will fall under the public-private-partnership (PPP). Railways will give a presentation for the same on Saturday at chief secretaries’ conference, which is to be inaugurated by finance minister P Chidambaram. Read More »

Apeejay Surrendra Group to Raise $55 mn Equity

Apeejay Surrendra Park Hotels Ltd, which owns the Park Hotels, is planning to raise $55 million through a private equity deal with Credit Suisse.

The proceedings will help the company to work on its expansion plans, said Priya Paul, Chairperson, Apeejay Surrendra Park Hotels’.

The Park Hotels is regarded to have pioneered the concept of contemporary luxury boutique hotels in India and enjoy a significant presence in the cities including Chennai, Bangalore, Kolkata, Navi Mumbai, Chennai, and Visakhapatnam. Read More »