Indian Property News on 'March, 2008'

Home Loan Rates may go up Soon

Home loan rates have begun to harden. IDBI Bank has withdrawn the 0.5 per cent cut in rates of home loans and other debt it had announced on Wednesday. Many other banks, say industry experts, are likely to follow suit.

Inflation is at a 12-month high of 6.7 per cent, making it costly for banks to raise funds.This burden will have to be passed on to borrowers through higher interest charged on their loans. Read More »

Revised jantri may impact Gujarat`s Realty

Aimed at bringing the much-needed transparency in Gujarat’s real estate, the revised Jantri prices — a ready reckoner for stamp duty — may further put pressure on realty prices.

There is a mixed opinion on whether Gujarat’s real estate sector, which is showing signs of a slowdown, would see a price correction. However, a group of developers believe this may happen in the next three months. Read More »

Deutsche Bank picks up 40% stake in Ramprastha

Deutsche Bank has picked up close to 40% stake in Ramprastha Promoters and Developers, a group company owned by Delhi-based Ramprastha Group for $80 million. Ramprastha Promoters and Developers have been primarily engaged in developing housing projects in the national capital region (NCR).

Confirming the deal, Ramprastha group director Arvind Walia, “We signed the agreement with Deutsche Bank recently.” Mr Walia didn’t specify the stake Deutsche Bank has bought, but he said it was less than 40%. Ernst & Young advised Ramprastha on the deal. Read More »

Builders join Hands, Float National Association

In the first week of March, seven city real estate associations signed bilateral agreements with the newly formed National Association of Realtors - India (NAR- India), which in turn has forged an alliance with National Association of realtors, USA to give itself an international appeal.

NAR-India has also kick-started the process of training estate agents for transnational referrals. While Bangalore hosted the first workshop, come June Pune - which is the largest contingent in NAR-India at 193 members - will host a similar workshop and the next year’s national conference as well. Currently, Pune estate agent Kishen Milaney is the secretary of NAR-India. Read More »

DAMAC Properties Signs Up 60 Real Estate Agents Across India

DAMAC Properties - the largest real estate developers and luxury lifestyle provider in the Middle East signed up with 60 agents in India across metros and tier one cities. DAMAC Properties has taken this initiative to market and sell their regional properties to the Indian investors keeping in mind its philosophy of customer care.

Commenting on this initiative, Mr. Hussain Sajwani, Founder & Chairman, DAMAC Holding said, “We are proud to have signed on 60 agents in India; as the demand is high; we wanted to touch each corner of India through an experienced network of agents. We will regularly provide our agents all the necessary information and training to sell our properties. We have an agent’s relationship department who provides all the necessary support to the company’s agents.” Read More »

An Upside Down Club Coming to NCR

The NCR will soon boast of an upside down building. Looking at the building from outside, one could be forgiven for thinking the world has suddenly been inverted. The architectural marvel will be built by Meriton group at its up-market housing project, Orange County, in Indirapuram.

Director of Meriton Group, Avnish Agrawal, got the idea of constructing such a building when he went to the United States of America on a tour. Read More »

Realty Mutual Fund’s income to be out of Tax Net

The uncertainty over the tax-treatment of real estate mutual funds is set to end soon. The government will exempt from tax the income generated by mutual funds which float schemes which aim to invest mainly in the stocks of realty firms. According to a senior revenue department official, real estate MFs and other MFs that invest in shares of realty companies will be spared of paying tax on all income. The dividend income of unit holders who buy these products to reap the gains of a realty boom will also be tax-free.

“Sebi-registered real estate mutual funds will be given a tax pass-through status if they invest the money raised from investors in shares of real estate companies. So will be the case for all mutual funds investing in shares of realty companies,” said the official. Read More »

Connaught Place has the 8th Highest Rentals in the World

Till the other day Connaught Place epitomized the pride of the country. Today, this central Victorian market of New Delhi has climbed up global indices to become one of the most attractive and expensive markets in the world.

Synonymous with rising economy of the country, the market speaks volumes of India’s performance in the rapidly transforming global economic sphere. Read More »

Rahejas Challenge Goa Government’s Order to Scrap SEZ

Real estate major K Raheja has challenged the Goa government’s decision to scrap the approved SEZ before the Bombay High Court. “We have already made it clear that our SEZ was non-polluting and as such has no reason for the government to stop it. We have invested a lot of money on the project,” said a senior company official on condition of anonymity soon after filing the petition before Goa bench on the Bombay HC. “We need to know on what ground it was scrapped.”

The company wants the HC to declare the state government order null and void. “The government’s action is in breach of principle of natural justice. We were not given a hearing before taking the decision,” the company said.

The Next Real Estate Boom Town: Greater Noida

Greater Noida will soon dethrone the king of real estate “Gurgaon” in the NCR region and take the hot seat. The Greater Noida Authority is revamping the civic amenities and other infrastructural facilities. Much awaited projects like the international airport at Jewar and 160-km long Noida-Agra Taj Expressway will help in the fast-track growth of the twin cities.

The twin cities offer an entire range of property-options to choose from. The development of Greater Noida Phase-II, spread over 55,000 hectares (which includes 1890 villages), will further lead to an expansion of these cities. The said phase would have 41% area earmarked for greenery, 12% for recreational facilities, 13% for residential, 2.5% commercial, 3.9% institutional and 18.9% devoted for the airport. Also, after completion, the 1483 km long Delhi-Mumbai Industrial Corridor will mark a watershed in connectivity. Read More »