Latest Property News on 'Real Estate India'

Domestic hotel chains increasing footprint

The continued growth of the tourism sector has led three of the leading domestic hotel chains — The Indian Hotels Co Ltd (which owns the Taj brand), ITC Ltd (with its Welcomgroup chain) and EIH Ltd (Trident brand) — to confidently increase their footprint.

These three companies are developing properties or have signed management contracts for hotels that will open in the next year or two. They are also refurbishing some of their existing hotels. Indian Hotels Company said that in 2007-08 it made commitments by way of acquiring properties on lease, entering into tie-ups for equipping hotels being built by partners and executing a number of management and technical services contracts. Read More »

Posco gets clearance for billion dollar steel plant

Posco, Asia’s top steel producer got clearance from India’s top court on Friday for a $12 billion plant in Orissa. The plant to be built by Posco, in the resource-rich eastern coastal state of Orissa would be the biggest foreign direct investment in India since it launched market reforms in 1991.

The case was seen as controversial as it pitted farmers’ interests against growing industrial development. The plant, which aims to create 18,000 jobs in a poverty-ridden part of the country over the next decade, had stirred violent protests by farmers objecting to loss of their land. Read More »

Posco gets clearance for billion dollar steel plant

Posco, Asia’s top steel producer got clearance from India’s top court on Friday for a $12 billion plant in Orissa. The plant to be built by Posco, in the resource-rich eastern coastal state of Orissa would be the biggest foreign direct investment in India since it launched market reforms in 1991.

The case was seen as controversial as it pitted farmers’ interests against growing industrial development. The plant, which aims to create 18,000 jobs in a poverty-ridden part of the country over the next decade, had stirred violent protests by farmers objecting to loss of their land. Read More »

IT boom boosts real estate and hospitality sectors in Pune

Ever since software developers and hardware experts made their presence felt in Pune in 2002, there has been no looking back for the Information Technology (IT) sector in this industrial city of Maharashtra.

The progressive trends in the IT industry have benefitted businesses like real estate, hospitality and consumer services to a great extent. The business ventures of real estate and hospitality have directly and indirectly gained the optimum from the IT boom in Pune. Read More »

India: Housing boom declines, hinting at slower economy

International banks expect real estate prices to fall 25 percent, and annual GDP growth to slow. Glistening marble floors, landscaped lawns, a golf course. This $1.5 million-a-pop housing development is one of the plushest yet in Gurgaon, a satellite city on New Delhi’s edge that has become an icon of booming India.

But, 18 months after they went on sale, half the houses in the first phase of construction stand empty and unsold, as India’s once-booming housing market slows down. A recent report by HSBC Bank predicted a “sharp slowdown” in residential demand in most Indian cities and a fall in home prices of between 25 and 30 percent. Read More »

Real estate market – is it heading south?

The real estate industry had a decent run during 2007 with market witnessing upbeat demand for products across all segments – office space, residential, retail, etc. Naturally, corporates managed to garner good realisations. Enthused by their success, a positive sentiment reflected in the IPO market, where major real estate companies raised around Rs 14,600 crore during the last year.

The scene was no different in the private equity space, where real estate (or realty) topped the list of all PE deals by value. But that was 2007. Year 2008 has begun on a subdued note. Buyers are waiting for prices to fall further as sellers are waiting for the downturn to be temporary. Home loans getting costlier hasn’t helped, neither has inflation. Property Plus talked to Mr Venu Gopal, Associate Director and Mr Ganapathiraman, Associate Vice President part of Transaction Advisory Services, Ernst & Young. Read More »

Indian real estate goes abroad

With a view to showcasing investment potential in India’s real estate, Cento International Investments, U K based real estate consultants have organised ‘Invest India Tour London 2008.’

Cento along with Baron Group International, a U K based property investment company and E 18, the marketing division of Network 18 have organised this tour which they say will provide a platform for real estate developers from India to interact with foreign investors and help promote the country as a lucrative investment hub. Read More »

Inflows into India’s realty firms dropped in the June quarter

Real estate firms in India have seen a slowdown this year as interest rates — at a decade-high — have combined with high property prices to turn away middle-class home buyers. The sector has also been hit by a cash crunch due to the IPO market drying up and restrictions on bank funding, triggering a fall in stock values.

The BSE Realty index is down nearly 60% since the start of the year. Shares in real-estate firms such as Parsvnath Developers Ltd and Indiabulls Real Estate Ltd have lost 72.2% and 59.7% respectively. Media and entertainment sector attracted Rs6.72 billion, up 41.5% over the preceding quarter. The sector has been able to attract investments with the promise of robust revenue growth driven by the emergence of a wealthy middle class. Research firm Media Partners Asia estimates annual revenue for television to more than double to $11.6 billion by 2012. Read More »

FDI in real estate to go up by US$21bn: ASSOCHAM

At present, the domestic real estate market is expected to be of US$15bn in which the FDI contribution is estimated around less than US$4bn. Despite real estate market confronting with a temporary depression with interest rates hovering between 12-16%, the Associated Chambers of Commerce and Industry of India (ASSOCHAM) has projected that FDI element in real estate market would increase by about US$21bn to touch US$25bn in next 10 years.

The ASSOCHAM forecast in this regard is based on the fact that since real estate in India would be a hot market, the foreign investors are constantly looking at India for parking their surpluses, as returns on such investments would be quite high in the near future. Read More »

Oman-India non-oil trade poised to hit $2 billion this year

MUSCAT — Non-oil trade between Oman and India, on an upswing in recent years, is poised to top $2 billion in 2008 following a 35-40 per cent spurt in the first quarter, Indian Ambassador Anil Wadhwa said.

In 2007, bilateral trade rose by a hefty 98 per cent to reach $1.8 billion, including Oman LNG exports. Wadhwa underlined the “amazing coincidence” that infrastructure, real estate and construction sectors had been a major engine of economic growth in both India and Oman. Read More »