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shail01
Member Since: 9/11/2008 4:09:45 AMLast Seen: 12/1/2008 2:44:24 AM
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Posted 12/1/2008 2:44:02 AM
If you've bought an apartment or plot in Gurgaon in the past three years, prepare to fork out lakhs in additional development charges. The Haryana government has decided to hike the external development charge (EDC) by almost 100 per cent for all projects developed after 2005. Developers say existing customers will have to pay between Rs 150-200 per sq feet extra for an apartment and Rs 1,500-1,750 sq yard for a plot. For a three-bedroom apartment of about 2,000 sq. ft for instance, the buyer would now have to pay between Rs 3 lakh to Rs 4 lakh extra. Senior Town and Country Planning officials maintain the government had to introduce the hike because of the steep appreciation in infrastructure costs. "The costs of laying infrastructure have gone up," Town and Country Planning Director SS Dhillon told Hindustan Times. H R Bangia, who bought a 300 sq yard house in 2006 said he would move court if he was asked for more EDC. "I don't understand why developers don't include it in the total cost of the property initially." Real estate developers, too, would have to pay hundreds of crores in arrears to the government. "The charges developing civic infrastructure for developers have been hiked from Rs 1.04 crore per acre to Rs. 2.27 crore for all projects that got licenses after 2005," said Raheja Group of companies CMD Navin Raheja. Said N K Sehgal, senior vice president Ansal API: "Since 1991, the EDC has seen a dizzy rise of 1,300 per cent as against a 200 per cent increase in the CPWD wholesale price index in the same period." Some developers have even threatened to withdraw applications for future projects. Haryana Chief Minister BS Hooda met DLF vice chairman Rajiv Singh, Unitech MD Sanjay Chandra and Parsavnath Developers' Pradeep Goyal on November 19. Courtesy:- HT dtd:- 27th Nov. 2008
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Posted 11/27/2008 3:34:11 AM
LIC Housing Finance (LICHFL) has emerged as a reliable source of fund for several cash-starved developers, even as banks tighten credit. The financial institution has lent small-ticket loans ranging from Rs 100-150 crore each to, at least, four NCR-based realty firms in the past three months, while banks were refusing to disburse even sanctioned loans. NCR-based BPTP, Uppal Group and listed developer Vipul received funds from LIC Housing Finance in the past three months, as credit situation worsened for the real estate sector, an LICHFL official told ET. LIC Housing Finance has also revived the earlier sanctioned loan for Delhi-based Omaxe. In each case, loan amount ranged from Rs 100-150 crore. Many developers, who have borrowed from LICHFL this year, are seeking a moratorium for one year, as they face fund crunch. Unitech, which borrowed in the first quarter of this calendar year, has been granted a moratorium for part of its total borrowing. With sources of funding drying up, top executives, including the promoters, of several realty firms are doing the rounds of LICHFL office these days. The LICHFL official said that several realty players, including DLF and Parsvnath, have also approached the institution for credit. The entire real estate sector is going through a difficult phase, as sales have diminished and credit tightened. Many developers still need large cash to continue construction and pay for the land they earlier bought, even as earnings have dramatically slowed down. Besides the availability of credit, it's the lending rate which is attracting all developers. LICHFL has lent to developers at an interest rate of around 16%, which is considered reasonably good today, given the fact that India's largest real estate company DLF, too, has recently borrowed at the same rate from a bank recently. Meanwhile, LICHFL has increased the collateral for loans from two times, the loan amount to two and-a-half times. LICHFL, in which 41% is owned by state-controlled insurance giant Life Insurance Corporation, lends to home buyers as well as developers. The company reported a 16% growth in September quarter net profit at Rs 135 crore, and a 35% growth in total income at Rs 708 crore. The net NPAs of the company stood at 0.87% as of September '08 compared with 1.65% a year ago. Courtesy: - ET dtd: - 26th Nov. 2008
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Posted 11/21/2008 1:33:53 AM
Just banks reducing interest rates will not help in reviving sentiments; builders will have to bring down prices for buyers," the chief of the Indian Banks' Association added. Bankers say demand for home loans has fallen because buyers are waiting for property prices to fall. "Banks have taken the initiative in cutting home loan rates, and prices of cement and steel too have fallen, but builders have not reduced property prices," said Union Bank of India CMD MV Nair. Although RBI relaxed some bank lending norms for the building sector last weekend, it remained quiet on the issue of restructured loans to builders. Analysts have expressed concerns about the financial health of the realty sector. India Infoline fears that the liquidity situation of developers could worsen further if banks refuse to refinance maturing debts of real estate companies and maintain the credit freeze on their accounts. "We reckon that debt maturing over the next 12 months for Unitech, Sobha and Puravankara is higher than our estimate of these companies' revenues over the corresponding period. The situation with Omaxe, Parsvanath and Ansals also remains precarious, owing to large land advances and high receivables," it said in a research note. The building sector has seen a raft of credit downgrades amid refinancing concerns, and bankers say the sector has little choice but to cut prices. "If a builder does not pay, banks would either initiate a recovery proceeding or restructure the loan. A recovery proceeding often results in lower realisation. This hopefully should indirectly put pressure on builders to bring down price and go for negotiated sales," says Indian Overseas Bank CMD SA Bhat. Courtesy:- ET dtd:- 20th Nov. 2008
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Posted 11/20/2008 3:09:25 AM
Gurgaon real estate , Gurgaon is a good and best area in Real estate. All types of projects are available in Gurgaon. Residential and commercial office space is also available in Gurgaon. Lots of commercial complex are also available in gurgaon. Lots of 2 bhk flats in gurgaon, ¾ bhk flats are also available in Gurgaon. Gurgaon is a big hub in real estate market. Lots of builder’s projects are also available in gurgaon. DLF, UNITECH, Parsvnathnath developers lots of projects in gurgaon. Residential space are available in gurgaon, commercial space are also available in gurgaon. Any further information visit portal www.zameen-zaidad.com .
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Posted 11/19/2008 1:21:56 AM
Morgan Stanley has appointed Naresh Naik as an executive director and head of asset management for its Indian real estate unit. Naik, an architect who was earlier head of asset management for Lehman Brothers in India, starts in his new role later this month and will be based in Mumbai, Morgan Stanley said in a statement issued late on Monday. Morgan Stanley, which also has investment banking, wealth management and mutual fund operations in India, has invested more than $750 million in real estate , a sector which is cooling due to higher interest rates and tighter funding. Courtesy: 18-11- 2008 Indian Realty News
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Posted 11/17/2008 2:31:59 AM
The land-slide victory of Democratic Barack Hussein Obama over Republican McCain in the US presidential elections has created enthralling waves not in America but throughout the world. Mr.Barack Obama will assume the office of President of the most powerful democracy in the world under turmoiling environment when the US economy is braving great recession owing to their sub-prime lending which has cuased failure of more than a dozen banks there. The Lehman Brothers bankcruptcy has compelled the US govt. to inject $700 billions to save their crumbling economy. In spite of such a whopping package they have not come out of the recession. This has created a teasing slow down in their economy resulting in retrenchment in many sectors including real estate sector. The sub-prime lending has landed the American economy in such a dilapidated condition. Opening the Indian economy to globalization liberally has also affected us adversely in the recent times. Indian govt. has allowed the FIIs to invest in our country without much control over them. To garner foreign currency in US Dollars, we have given so many facilities to the FIIs in form of freedom in P-Notes, etc. Now being in financial problems back in their country in the USA, the FIIs have started de-investing in our markets and have started withdrawing the money from our markets. This has given jerks to our economy. For the time being the key authorities at the helm of affairs of our economy have controlled the ill-effects of the recession of US economy. If we succeed in keeping our economy impuned from ill-effects of the global recession it will be a great achievement of our govt. The difficult phase has not yet over. The govt. authorities are to be more vigilant. Let us hope that we will succeed in our venture. The government is taking the various steps to augment the economy. They have decreased the CRR Ratio, SLR Ratio and Repo Rate. This has increased the liquidity in the financial markets to fight the imminent recession in the market. To lure the FIIs the government has now extended more liberal attitude for P-Notes, etc. Though Mr Barack Obama has pronounced in his election speeches that outsourcing will be reviewed considering the employment environment in his country in US. There is a fear that if Obama restricts outsourcing it will affect our IT sector adversely. Because our IT Wizards have started diverting their activities in other parts of Europe, it is hoped that we will come over the problems, if any, of outsourcing. We hope tenets of globalization will prevail upon Mr. Obama and he will continue with the outsourcing though with some checks not blocking others’ economies. The slow down in our real estate sector is not because of ill-effects of sub-prime lending of the US but because of excess trading / constuction activities of leading builders and developers in our country. The govt. has imposed some checks over these builders and developers which we hope will give results in due course. The builders and developers have started approaching the govt. authorities to start extending them the loan facilities and also to allow them to raise funds through external borrowings. The release of funds to the builders and developers with government controls over the utilization of these funds will help to improve the slackness in the real estate sector. Our website viz www.zameen-zaidad.com is of the opinion that to overcome the imminent recession and job losses, our government should initiate the following immediate steps:- • To mobilize deposits in the form of Infrastructure Bonds through public sector banks with interest accruals free from tax to attract more and more investors. The Infrastructure Bonds should have maturity for five years and be extendable for another period of five years. • To invest the so-mobilsed funds in giving loans to big business and industrial houses for road construction, electricity generation, railway, airport & metro-networks in such a way that more and more new jobs are created to fight the job losses, if happened on a/c of imminent economic crisis. • Every effort needs to be made by business & industrial houses to cut costs and raise productivity. Retrenchment of existing staff should not be done with a view to boost profits. Employees on the rolls must be retained. • Our country has one billion consumers. Consumption-led stimulus is the need of the hour. • Excise duty be reduced and income tax be reduced to stimulate demand in the market. • The FIIs should not be given free hand to off-load their investments in our markets to create panic among other investors. The above measures will definitely create new jobs, increase liquidity in the market, make use the idle funds lying with the public and earn income in utilizing the funds by extending loans for infrastructural activities. In this way the govt. will be in a good position to control the recession and job-losses to a great extent.
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Posted 11/17/2008 2:29:20 AM
A NRI and PIO can invest in property here, and repatriate the rental income and sale proceeds abroad,Anon-resident Indian (NRI) and person of Indian origin (PIO) can acquire residential property in India . They can rent it out, transfer it, or sell it as well. They can take the rental income and their investments in the property out of the country, subject to the foreign exchange regulations. Under the present relaxed conditions, NRIs can invest in property in India easily. A NRI is an Indian citizen residing outside India. A PIO is an individual who at any time held an Indian passport, or whose father or grandfather was a citizen of India. However, a PIO who is a citizen of Pakistan, China or Bangladesh has restrictions in acquiring property. Also, NRIs and PIO cannot buy agricultural land, plantation property and farm house. A NRI/PIO may use his own funds to acquire immovable property. He can also avail a housing loan from a bank. Own funds is money received in India through an inward remittance from overseas out of income earned overseas, personal savings outside India, and funds held in non-resident external (NRE), non-resident ordinary (NRO), or a foreign currency - non-resident (FCNR) bank account. In addition to own funds, he may also avail a housing loan from a bank. The authorised banks have been permitted to provide housing loans to NRIs and PIO for acquisition of a residential property in India . It is to be noted that this is subject to certain conditions. However, the quantum of loan, margin money and the period of repayment are on par with the housing loans provided to residents in India. The loan amount cannot be credited to the NRE/FCNR account of the NRI/PIO. It has to be fully secured through an equitable mortgage of the property proposed to be acquired. If required, the bank may also have a lien on the other assets of the buyer in India. Further, the instalments of the loan, interest and other charges should be paid by the NRI/PIO through remittances from outside India through normal banking channels or out of funds in his NRE/FCNR/NRO account in India. The loan and interest can also be repaid out of the rental income of the property purchased. The NRI/PIO may transfer the property without any approval from the Reserve Bank of India (RBI) to anybody - either a resident of India or another NRI/PIO. In case the property is let-out, the rental income can be credited into the NRO/NRE account. In case of sale, the sale proceeds of upto two properties can be remitted outside India without any RBI approval. Remittance for third and subsequent properties requires an RBI approval. The remittance of the sale proceeds depends upon the mode of acquisition - whether it was acquired out of funds remitted from outside or out of rupee funds. A property can be acquired out of rupee funds by a NRI before leaving India, or acquired after leaving India but from his savings bank account here. It should be with income earned in India. The proceeds can be repatriated provided the amount does not exceed either the amount paid for acquiring the property in foreign exchange received from overseas, the amount paid from the FCNR account, or the foreign currency equivalent of the amount paid from the funds held in a NRE account. In case the property is acquired from rupee funds held in India, the remittance depends on the holding period of the property. In case the property has been held for more than 10 years, up to one million USD per calendar year can be repatriated without any RBI approval. If the property is sold after being held for less than 10 years, remittances can be made if the sale proceeds were held for the balance period in a NRO account or other eligible investments. For remittance of sale proceeds of assets acquired through inheritance or settlement, there is no lock-in-period. In all other cases, specific approval of the RBI is required. Wherever a specific approval of the RBI is not required, the sale proceeds of the property as well as the rental income may be remitted outside India through normal banking channels, after obtaining an appropriate certificate from a chartered accountant, certifying that applicable taxes have been paid or provided for. Courtesy:- TOI dtd:- 15th Nov. 2008
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Posted 11/15/2008 1:44:28 AM
DLF vice chairman Rajiv Singh says the company would try and fill the gap in its portfolio by acquiring suitable assets which come up for distress sale in a depressed real estate market. "We will be prepared to look at opportunities but won't pick up something just because it's cheap. However, there are some gaps in our portfolio, which we would like to fill. If there are some significant assets which are hard to replace in a market like NCR or Mumbai, we will certainly look at it, "said Mr. Singh. He said a challenging external environment had forced his company not to move "at a pace we would have like to" and asked the government to bring down interest rate for home buyer as well as developers. Courtesy: - ET dtd: - 14th Nov. 2008
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Posted 11/14/2008 3:44:50 AM
DLF , the largest builders of India, has planned to set up the country's largest mall in Gurgaon with nearly 40 lakh square feet lettable area. Slated to be India's largest mall- The Mall of India - will come up on 32.87 acres of land. The mall has been designed by Jerde, an international firm of architects. The land-scaped views around the high-rise edifices in Gurgaon has given this town a look of New Japan. It will add to the beauty of Gurgaon. This largest mall will attract more visitors to the town. It will give a boost to real estate sector in the area. It will increase the business activities of Gurgaon. Though some slow down has been observed in real estate sector, it is hoped that the government will extend its helping hand to the builder to complete the project of this largest mall in the schedule time to create confidence in the market. It will give encouragement to other builders and developers to complete their projects of different malls. We at Zameen-zaidad.com look forward to the successful construction of India’s largest mall at Gurgaon.
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Posted 11/12/2008 1:38:43 AM
International hotel chains hotel chains have tied up with real estate developers like DLF, Emaar MGF, Unitech and Parsvanath to set up five-star hotels. However, fund-starved developers, who are trying to raise money for their core activities like residential and commercial property projects, are understood to have put the hotel ventures on the back burner. A drop in occupancy and room rates, inflow of business travellers and tourists to India have also raised concerns on the viability of these projects, industry sources say.“Out of a total of 1.14 lakh proposed room supply, only 58% or about 66,000 rooms, will actually be developed over the next few years. So, we feel many announced projects may not take off as planned,” said Manav Thadani, MD, HVS International, a hospitality consulting firm. “Now, debt raising is a difficult process,” says Homi Aibara of Aibara Consultants. Lemon Tree Hotels CMD Petu Keswani said: “Only developer-led hotel projects will face a problem as their priorities are different.” However, when contacted by ET, real estate developers insisted that projects were on track. According to the latest HVS report, cities like Bangalore, Chennai, Delhi-NCR, Hyderabad, Mumbai and Pune, where massive new room capacities are planned with real estate operators, are seeing trouble. In Bangalore not more than 60% of the new capacity is likely to come up. The same goes with Chennai, Delhi, Hyderabad, Mumbai and Pune. However, cities like Agra, Hyderabad, Jaipur and Mumbai saw a negative growth in room supply in 2007-08 as compared to 2006-07. The last few months have seen a demand-supply mismatch in tier II cities like Bangalore, Pune, Hyderabad and Chennai. Room rates too have fallen steeply in these markets, making it unviable for real estate developers to go ahead with the planned hotel projects. This is happening at a time when there is a severe shortage of branded hotel rooms. Unitech MD Sanjay Chandra said: “We have management tie-up with the Marriott Group for three projects, and one of them will be commissioned in January. Other two projects are very much on.” Recent media reports had suggested that DLF’s hotel JV with Hilton had hit a rough patch. However, DLF clarified to the stock exchanges that “DLF’s JV with Hilton is on a firm footing and all plans for the development of hotels stand as originally envisaged”. However, industry sources said DLF has put the hotel project on the back burner for at least a year. An Emaar-MGF spokesperson said there were no change in the hotel plans of the real estate firm and its tie-up with Accor. Says Uttam Dave, president and CEO, Interglobe Hotels and head of development, Accor Hotels India (Accor has tied up with Emaar MGF to launch Formule 1, a budget hotel): “Most of our projects are on track, and so far at least none of our projects have been either cancelled or put on hold, and this includes both managed and investment projects. There have been some delays in the actual development and commissioning of projects, and this has been on account of obtaining development approvals from municipal authorities and not due to real estate values.” Courtesy November 11, 2008 Indian realty Newa
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Posted 11/11/2008 1:51:17 AM
Gurgaon is a very well and good area in residential and commercial and all types’ facilities available in Gurgaon. Builders are give good facilities and good opportunity to every person.The Real estate market of Gurgaon has shown incredible boom in the period between 1998 and 2008, a period in which the city pioneered real estate developers like DLF.Having property in Gurgaon is beneficial in respect to prices, rental income and security. The prices of residential as well as commercial real estate has been increased at a fast pace. It’s been over 60 years, since the DLF Group has been providing us its exceptional real estate services. DLF has over 224 million sq.ft. of existing development and 748 million sq. ft. of planned projects. The company is thoroughly committed to quality, trust and customer sensitivity, and delivers on promises with agility, financial prudence and in tune with the highest global standards. Not only this, the real estate major has also entered into various strategic alliances with global industry leaders. Nowadays, the trend of having elite dwelling has increased the demand of real estate in Gurgaon. For accomplishing the increasing demand of Gurgaon properties, a number of real estate developers have come with some new high end projects for middle and upper class people at Dlf Phase Gurgaon. Real Estate/Plots Gurgaon is best opportunity for property, It is located close to Delhi and is emerging one of the hottest destination as far as for real estate is concerned. Gurgaon can be the best choice for buy residential property, commercial property, plots property. There are many ongoing projects. DLF has launched a new residential/plots project in DLF Phase 1 to phase 5.Besides modern offices and expensive houses, Gurgaon is also very popular for its residential properties for middle class people. Nowadays, a lot of constructions are ongoing keeping in mind requirements of middle class segment. Due to easy accessibly from South Delhi, the city has become world’s finest real state destination either for Indian or investors from abroad. With the connectivity from international airport gives Gurgaon special attention over other cities in the NCR. Gurgaon Real Estate has become first choice among investors as the quality construction and innovative additions. The real estates in Gurgaon offer lucrative profit for investors who are investing money either for commercial or residential properties. The city is renowned as a one of the finest choices for investment in India.
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Posted 11/10/2008 5:45:01 AM
The total covered area is 15 lac sq. ft. three level underground car parking with ample surface parking world class amenities such as health club, library, medical facilities, cafes, computer expendables convenience shops covering huge area on the ground level.Landmark Cyber Park is a state-of-the-art IT hub that caters to the fast paced IT work culture that operates on a 24x7 schedule. This new age structure is technologically advanced featuring 100% Wi Fi support backed by fiber optic connectivity. Further 100% power back-up is provided to ensure uninterrupted working needs of IT Industry. The design provides seamless movement right from basement parking, to ground level drop-offs through grand sky courts and garden terraces, and through high-speed vertical movement systems. The latest fire detection and security facilities back up the comfortable work areas. The design addresses today’s fast paced work culture that has entered into 24x7 x 365 days work schedule. Break-out areas have been designed to compliment intense work spaces and executive areas that all integrate within the building fabric. There are terrace gardens that give a view. The ground floor is a system of gardens, courts, amenities and walkways shaded by pergolas within the sky courts. LEASE OPTIONS PLAN A:- Investor can enter in a lease agreement with the company for 9 years after possession with assured lease of Rs. 60 / sq. ft. With a 15% appreciation after every three years. After completion of 9 years the lease will shift to plan b. FOR EXAMPLE Lease @ Rs.60 per sq. Ft. And 15 % increase every 3 years. Lease tenure for 1-3 years Rs.6000.00 per month Lease tenure for 3-6 years Rs.6900.00 per month Lease tenure for 6-9 years Rs.7935.00 per month PLAN B:- Investor can wait till the possession and can avail the actual lease rates which company will lease to the tenant. In this case company management will charge 20% fee on the total lease value every month. Company will not be responsible for the lull period in this case. Allocation of the lease will happen on priority of booking dates and first come first serve basis. FOR EXAMPLE Lease @ Rs.100 per sq. ft. and 15 % increase every 3 years. Customer will get after deducting the management charges Lease tenure for 1-3 years Rs.8000.00 per month Lease tenure for 3-6 years Rs.9200.00 per month Lease tenure for 6-9 years Rs.10,580.00 per month * As per the market value ascertain by market trend and nearby market rates.
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Posted 11/10/2008 5:42:17 AM
As interest rates of home loans are all set to come down with major PSU banks lowering there prime lending rates, demand for real estate will get a boost again. And rising demand will not lead to any price increase, according to developers and consultants. Developers feel that the construction activities and demand will get a real push once the main home loan disbursing institutions like ICICI Bank and HDFC Ltd, which together control more than 50% of the market, will slash their rates. Rise in demand will also depend on willingness to give loans by the banks at the ground level. Uintah MD Sanjay Chandra said that cut in interest rate will increase activities as it will prompt end-users to buy houses as EMIs will decline for same amount and tenure of loans. As many builders have started developing affordable houses in the range of Rs 20 lakh to Rs 50 lakh, lower interest rates will push purchases. After the cut, home loan rate has come down to around 10.25% to 11% on amount up to Rs 30 lakh. But, the rate for above Rs 30 lakh loan will still continue to be around 11.5 to 12%. This is mainly because of RBI's provisioning norms, which increase the cost of fund. Developers feel that to give a boost to the realty sector, the RBI should remove the norms, which were framed to discourage home loans to contain price rise in the sector. Now the situation has changed. Manu Garg of Landcraft Developer said the present rate cut will not lead to increase in prices. He said developers are keener to increase the turnover at present. So, lower rate will lead to increase in building activities only, he said. Because of rise in interest rates in the last one year, the real estate sector witnessed a slowdown. This has forced realtors to launch affordable houses to increase sale. They also reduced the average size of an apartment by almost 30% and cut prices per sq ft by 10-15%. This led to availability of two-bed room flats at Rs 25 lakh, from Rs 35 lakh to Rs 40 lakh a few months earlier. But, the continuous rise in interest rates to over 12% made home loan unaffordable to most of the people. Some developers feel present rate cuts will not make much of difference. CMD of developer Assotech, Sanjiv Srivastava, said as the cost of funds for the banks still remained high because of high deposits rate of 9% to 10%, it is doubtful that present announcement of rate cut will translate into disbursal of loans at the ground level. He argued that unless banks find lending home loans profitable, they would avoid lending. Courtesy:- TOI dtd:- 07th Nov 2008
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Posted 11/8/2008 4:41:18 AM
India needs to see greater developer focus on balancing supply and demand to correct a current market slowdown, according to experts. Speaking on the matter, Kumar Gera, chairman of the Confederation of Real Estate Developers' Associations of India (Credai) said "We should focus on a balance between supply and demand. On the one hand, there is latent demand, and on the other, a negative sentiment is being created. "Moreover, a conducive environment should be created by the people who are in power." He also said he expects liquidity problems for Indian developers to ease over the next six months, following a series of measures introduced by the Reserve Bank of India. "We have approached the government. We have even submitted a paper on special residential zones. The government should take a proactive role and must fuel the real estate sector." India's real estate sector is still expected to grow thanks to an ongoing shortage of 21 million homes and an impending migration of workers from rural to urban centres. Courtesy: November 7, 2008 Indian realty news
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Posted 11/7/2008 5:57:36 AM
The need to have strong equity on their balance sheets in these trying times is pushing large institutions such as AIG, Morgan Stanley and Wachovia to liquidate a number of Indian real estate assets in which they had invested proprietary capital.Investment banking sources and PE funds have confirmed that a number of such deals have surfaced in the market for the past few weeks. While there are few income-yielding and advance-stage assets, which would be easier to sell, a majority of the assets will be at an early stage which would find few takers or see a loss. “15-20 % of the deals in the market today are of this kind,” says an investment banker. “Some of these institutions are highly leveraged and their mortgage-related assets in the US are getting marked down. There is a need to liquidate some of these assets they bought with their proprietary capital to get cash and strengthen their balance sheet,” says a source at an India-focussed real estate fund. In the last one week, the fund has already received a few calls for large-ticket deals where some of the institutions have invested from their proprietary books. “The pressure to sell is also because many PE deals might have been sold down by these institutions as structured products and now those buyers want an exit given these buyers’ potential exposure to sub-prime assets,” says Infinite India Investment Management MD Jagdeep Pahwa. “We have reviewed a few structured deals with proprietary investments of large institutions in the past 3 weeks,” says South Asian Real Estate chief development and acquisition officer Sunil Agarwal. A Mumbai-based investment banking firm confirmed they are working on a few deals that involve investments from the proprietary books, but declined to reveal any names. The firm is working on such deals with a large Indian institutional investor which is fairly active in the market. “With a rupee fund, an Indian institutional investor can structure the deal more effectively,” says the investment banker. “At the moment, such deals will be looked at by the opportunistic and value funds. However I expect that in 6 months time, as valuations go down another 15-20 %, these deals will also be attractive to buyout funds who are keeping a keen eye on this space,” says real estate expert Anckur Srivasttava. Most of these large institutions have been investing in real estate in India through both managed and proprietary capital. Wachovia does not have a fund and has been investing from its proprietary books for the last two years, though at the moment they are looking at investing selectively from their proprietary books in India, confirmed Sandeep Kundu, director, Real Estate Capital Markets at Wachovia. “We are long-term investors in India and that is why we are investing from our proprietary books. We don’t have an exit strategy as yet,” adds Mr Kundu. Market sources though confirm that there are a few of Wachovia’s real estate deals that are being looked at closely. Interestingly, Merrill Lynch had merged its proprietary book with its third party fund early this year they safe that front after the recent events. DSP Merrill Lynch has made proprietary investments of $500 million in the real estate segment. Courtesy 6th November: Indian realty News
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Posted 11/7/2008 5:55:23 AM
The real estate sector in India is set to grow by 30% and be worth $16 billion by 2010 despite the global economic downturn, it is claimed.Middle East property investors and developers are likely to be the saviours of the property industry which is currently facing financial problems due to high interest rates and tight lending conditions. They recognise that the economic climate may be difficult but they also recognise that they can benfit from lower land prices, lower material and labour costs and a market where demand is unlikely to disappear. ‘The internal demand for commercial and residential real estate in India is undeniable. But providing finance is in place many developments are likely to be approaching completion after the downturn has bottomed out,’ said Graham Wood, exhibition director for next month’s Cityscape India. His company’s latest research predicts a 30% growth rate for India. It is also estimated that India is currently facing a shortage of 21 million homes. Wood also points out that more and more Gulf developers are interested in India. ‘The demand for affordable housing is immense and potentially the long term returns for investors and developers are colossal,’ he added. Dubai-based Limitless is confident about the long term prospects of India’s real estate sector and will be showcasing key Indian projects including a 4,000 hectare mixed use development near Bangalore with accommodation for 750,000. Dubai Properties recently confirmed that the company hopes to expand its development projects into India. And Dubai-based real estate developer Majid Al Futtaim has also announced it is investigating India as a possible region for investment and development. Younis Al Mulla, MAL business development officer, said that the company was looking to enter a joint venture with a local firm to help it build a mixture of residential and commercial real estate in the country. The investment arm of Ras al-Khaimah also plans a $5 billion business centre at Hyderabad. This year’s three day Cityscape India conference which starts at the Bombay Exhibition Centre on December 8 is expecting 7,000 participants from around the world. ‘Cityscape India will reach out to over 350,000 senior decision makers seeking to invest in one of the world’s fastest growing economies,’ added Wood. Courtesy 6th November: Indian realty News
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Posted 11/5/2008 11:32:40 PM
Fearing a crash in local real estate prices, many well-heeled Indians are buying properties in Singapore. While such purchases could be pure investments, the lure of permanent residentship offered to certain investors under the Singapore law may have also influenced the decision. Many are drawn by the sheer ease in buying a house in Singapore. The Far East Organization, one of Asia’s largest real estate groups, is among the real estate developers looking to pull in Indians to invest in the Southeast Asian country. The group will soon complete the development of Silversea, a premium residential seafront property, aimed at foreign buyers. “People from across Asia are looking to buy properties in Singapore attracted by its urban infrastructure. The number from India has only been increasing,” says Far East’s chief operating officer, Mr Chia Boon Kuah. Along with a stunning sea view of the east coast, Silversea also promises a window to the country’s rapidly rising financial district, which houses properties like the New Downtown, Marina Bay Financial Centre and Gardens by the Bay. The apartments are priced at about $1.5 million each. While Far East will have a Silversea exhibition in Kuala Lumpur soon, it is targeting other markets, such as Indonesia, India, China, and the Middle East. Mr Kuah expects to sell around a half of Silversea apartments to foreign buyers. Singapore has attracted real estate investors for many years now. Thanks to a stable, business-friendly administration and a safe and multicultural environment, most buyers believe that prices would appreciate from hereon. However, Mr Kuah admits that the global financial market turmoil has caused a small price dip. Officials from Far East Organization said the Singaporean government will provide various facilities for prospective property buyers; for instance, exempting them from the sales profit tax and providing them with permanent resident permits. The government is expected to grant permanent resident permits to 40,000-50,000 expatriate residents every year. Around 14% of non-local property buyers in Singapore are Indians, according to government data. The Singapore government has targeted a population of 6 million, from 4.6 million at present, in the next three years. November 4, 2008 indian realty news
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Posted 11/5/2008 11:27:57 PM
With the ongoing slowdown in real estate industry and correction in secondary markets, some of the country’s major cities have witnessed up to 5 per cent fall in capital values in residential properties, a Cushman & Wakefield (C&W) report said. According to the global realty consultant C&W, the high -end residential market of Pune has seen a decrease of 5 per cent in capital values during July-September period, while it fell by 1 per cent in the mid-range category. Other prominent markets, like Mumbai and Bangalore, witnessed a fall of 4 and 3 per cent respectively in the mid-range housing sector, it added.However, few locations in Chennai witnessed appreciation in capital values up to 8 per cent. “Most markets are predicted to continue to have stable capital values with a softening bias in the last quarter of 2008, with the exception of Chennai which may see some further strengthening in key micro markets. A lacklustre festive season, along with sharp drop in the stock markets have further aggravated the situation for the developers, who are also battling conditions such as high rates of servicing debt and liquidity issues,” C&W India Director (Residential Services) Aditi Vijayakar said. Such conditions have led many developers to re-align their strategies and several developers may be now looking at targeting the middle-income groups, where the demand is high and mostly driven by end-users, she said. “Correction in value in the secondary sales market has impacted the overall values of residential properties in certain micro-markets and is expected to further affect the capital values in the next quarter,” the report stated. November 4, 2008 indian realty news
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Posted 11/4/2008 4:52:58 AM
TDI Infrastructure Limited has taken the first step in constructing its landmark hotel 'Fortune Select TDI Hotel' by performing the auspicious Bhoomi Pujan and ground breaking ceremony recently at the site. The hotel will be strategically located at the Sonepat district on NH I. 'Fortune Select TDI Hotel' will be operational by 2010 and will cater to the business and leisure travelers of the growing Kundli-Sonepat belt and Delhi NCR region. Fortune Select Hotel of approx 100 keys will be aesthetically designed to offer luxurious suites and rooms with exquisite interiors, tastefully designed banquet halls, meeting rooms, Wi-Fi system etc. The hotel will complement the hospitals, schools, clubs, malls, residential complexes, villas that are planned for TDI's mega integrated township 'TDI City Kundli'.Courtesy:- HT dtd:- 1st Nov 2008
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Posted 11/3/2008 3:48:05 AM
As the slowdown hits the realty sector, even though premium and luxury segment developers are offering freebies, mid-segment developers offer no such perks.As a slowdown in the realty sector stares developers in the face, many builders said that they are concentrating on the middle segment. However, unlike premium segment, mid-segment buyers shouldn't expect any freebies as developers said their margins were getting hit. In fact, CMD of Parsvnath Developers, Pradeep Jain, who has also launched a mid-segment project in the NCR, said prices are not likely to drop much. "The present conditions will lead to a slowdown in implementation of projects. Instead of selling at losses, developers would delay projects," he said. In the premium segment, things are a little different because of an oversupply situation. The NCR-based Jaypee group has offered luxury cars like Mercedes C200K, Toyota Land Cruiser and BMW 320i on the purchase of houses in the prices range of Rs 3 crore to Rs 8.25 crore in its upmarket project on Noida-Greater Noida Expressway. Even on the lower range of houses of Rs 85 lakh to Rs 1.50 crore, the group is offering cars like Maruti Zen, Honda City and Toyota Camry. The value of the freebies depends on the price of the house that is bought. MD of Jaypee Greens, Rita Dikshit, said that to celebrate one year of the launch of these projects, the company was giving these items as a gift to customers who buy houses by November 11. She said this was a goodwill gesture and not a sign of distress. "The company has no plan to reduce prices of its houses and apartments after the gift scheme ends on November 11," she added. For premium buyers looking for attractive deals, there are plenty of choices. In Mumbai, realtor Cosmos group is offering a one bedroom-hall-kitchen apartment in Thane free on the purchase of a bungalow in Lonawala near Pune. The group is also upgrading a two-bedroom apartment into three bedroom apartment for free in Thane and Lonawala. In the NCR region, SVP group is offering freebies like a 50-gram gold coin on the purchase of an apartment in Ghaziabad. Besides, most of the developers are doing away with charges for club membership and parking. Courtesy ET dtd:- 31st Oct. 2008
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Posted 11/3/2008 3:47:53 AM
As the slowdown hits the realty sector, even though premium and luxury segment developers are offering freebies, mid-segment developers offer no such perks.As a slowdown in the realty sector stares developers in the face, many builders said that they are concentrating on the middle segment. However, unlike premium segment, mid-segment buyers shouldn't expect any freebies as developers said their margins were getting hit. In fact, CMD of Parsvnath Developers, Pradeep Jain, who has also launched a mid-segment project in the NCR, said prices are not likely to drop much. "The present conditions will lead to a slowdown in implementation of projects. Instead of selling at losses, developers would delay projects," he said. In the premium segment, things are a little different because of an oversupply situation. The NCR-based Jaypee group has offered luxury cars like Mercedes C200K, Toyota Land Cruiser and BMW 320i on the purchase of houses in the prices range of Rs 3 crore to Rs 8.25 crore in its upmarket project on Noida-Greater Noida Expressway. Even on the lower range of houses of Rs 85 lakh to Rs 1.50 crore, the group is offering cars like Maruti Zen, Honda City and Toyota Camry. The value of the freebies depends on the price of the house that is bought. MD of Jaypee Greens, Rita Dikshit, said that to celebrate one year of the launch of these projects, the company was giving these items as a gift to customers who buy houses by November 11. She said this was a goodwill gesture and not a sign of distress. "The company has no plan to reduce prices of its houses and apartments after the gift scheme ends on November 11," she added. For premium buyers looking for attractive deals, there are plenty of choices. In Mumbai, realtor Cosmos group is offering a one bedroom-hall-kitchen apartment in Thane free on the purchase of a bungalow in Lonawala near Pune. The group is also upgrading a two-bedroom apartment into three bedroom apartment for free in Thane and Lonawala. In the NCR region, SVP group is offering freebies like a 50-gram gold coin on the purchase of an apartment in Ghaziabad. Besides, most of the developers are doing away with charges for club membership and parking. Courtesy ET dtd:- 31st Oct. 2008
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Posted 11/3/2008 3:44:36 AM
Buyers in the market are still undeterred by the recent downturn and continue looking for properties.Even as the buzz today is that home buyers are adopting a wait and watch approach looking for a price correction, this is not true for all the category of buyers. There is a segment which is looking at buying a home dictated by their own personal needs as much as the fact that builders are now in a mood to negotiate. These are buyers across all segments starting from a budget of Rs 35 lakh to go up to any level. "Despite the current scenario of the stock market crash and the general downturn, there are a lot of buyers in the Rs 50 lakh to one and a half crore segment who are actively looking to buy a house," says developer Abhinandan Lodha, director Lodha Group. Most of them have a family home which may be smaller, and as families grow, they want to shift to a larger 2 BHK or 3 BHK, as per their needs. There are also NRIs who are seeing the dollar appreciating and with the on-going US crisis, see more sense buying a home back here. Agrees developer Rajesh Prajapati, Director, Prajapati Constructions, in the kind of recession that Europe and US are facing, NRIs feel good to have something at home. Rs. 40 a dollar has now become Rs. 50 a dollar, and hence, what they were getting at 1 lakh dollars, they can now get in only 80,000 dollars. On the domestic front there are those who have sold their flats and are looking at urgent relocations, or are driven by other personal needs. Suraj Prabhakaran working for an MNC recently bought a flat in Neptune Group's Living Point project at Bhandup (W). Suraj is getting transferred from Bangalore and bought the flat for personal use and not as an investment. He says Bhandup is a central location with connectivity both on the western and eastern line. This would help my working wife and me. He further adds, builders today are negotiating where earlier their attitude was 'take it or leave it.' I could have waited and rented a house but chose not to do so. The stock market crash means values of portfolios have come down and there could be a price correction in real estate but I wanted a ready possession flat without any risks involved. I have found a suitable flat on the 15th floor with a good view where I can live comfortably for the next 25 years. Elaborates Devang Trivedi, MD, Progressive Group, the segment buying today includes people belonging to the shipping industry, those living in the Middle East or people who have sold their property at good rates and are now looking at buying a slightly bigger one. Then there are those who have to buy property from a tax perspective. There are also those who are quite well to do, and are not bothered even if the prices go down marginally, so long as they are getting a strategic location or a vastu compliant home. This customer feels that if he lets go of this, he will not get the strategic opportunity. Trivedi continues, there is also a segment looking at opportunity buy. They are ready for a down payment and will strike a good bargain by approaching five to ten developers asking for a particular price. The deal will be done with the builder who, depending on his financials will give them the best price. Opportunity buyers are like investors looking at profit money. They have made money in the stock market, they see that the gold market will eventually correct, since it is a commodity. They will have to finally put their money in real estate or fixed deposits. Fixed deposits would not give that kind of money or appreciation, so they will invest in real estate. They will do value buying and rent it out for some time. There are also certain long-term investors who are looking at five years down the line. They are looking at a lower price today and getting something unique like say a sea-facing flat or garden facing flat, two apartments combined. These would not be easily available when the market goes up. When the market goes up, he can sell higher. These are buyers with an enterprising outlook. There are also some properties, which are easily liquidable. For instance flats where there is a ready buyer in the same or adjacent building. The customer only has to find another flat to move into. Suppose he has bought his flat at Rs 60 lakh and is selling at Rs 53 lakh, he can somewhere down the line, put that money in a project that is worth much more for an attractive price. According to Gulam Zia, national director advisory services, Knight Frank India, the buyer finalising a purchase today may be looking at getting something ideal, say a super luxury apartment at Cuffe Parade or else is looking at buying for his personal use. There are also those who believe that a home loan now would make sense with interest rates peaking and reduced EMIs. Ramesh Bijlani, director, Ekta Supreme Housing says there are buyers who are actively looking at buying a house for their personal use, since the prices are not going down as they had anticipated. Home buyer S Ramadorai, running an IT company has booked a 3BHK apartment in the Lake Homes Project of Ekta Supreme at Powai says, he has been shopping around for the last one year and has seen prices only rising. The last one month however has seen some freebies being offered. He went in for this project as it offers good value in terms of open spaces, amenities besides being close to his place of work. Confesses Ramadorai, I have in the past lost money in stocks and in commodities but never in real estate. Price corrections may be there but there would not be a rundown. Hence customers feel they might as well talk to a builder and negotiate the rates. At the same time, they know that a good builder will deliver his promise, says Bijlani. Courtesy ET dtd:- 31st Oct. 2008
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Posted 11/1/2008 5:32:20 AM
With property prices and rents spiralling in the Gulf and the rupee depreciating, Indian real estate developers are actively promoting their products among expatriate Indians in the Gulf. "Because of spiralling rentals in Dubai and elsewhere in the region, Indians working here prefer to keep their families back home," Haseeb Ahamed, chairman of the Calicut chapter of the Kerala Builders' Forum (KBF), told IANS here Wednesday.Courtesy ET dtd:- 31th Oct. 2008
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Posted 11/1/2008 5:31:23 AM
Given the current turmoil in the market and subsequent impact on real estate, Hindustan Construction Company has decided to put on hold its planned townships in Pune, Nasik and Thane. Land acquisitions for these projects have been deferred for now given the high interest rates and low liquidity in the market. HCC will focus more on government projects in power and water sectors and will look to bid for PPP projects with caution. Courtesy ET dtd:- 31th Oct. 2008
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Posted 10/31/2008 3:52:40 AM
While real estate calculators have been around for a while, they've become a lot more advanced (and useful) in recent years. These days, there is a calculator to help you with every aspect of buying a house from setting your budget to figuring out mortgage payments. Better still, you can use most of the calculators online for free. We have a few here on our website, and the finance section of Yahoo.com has many available.
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Posted 10/31/2008 3:51:41 AM
These days, there are a lot of websites that can help you when buying a house and seeking a mortgage loan. In fact, almost every aspect of the real estate transaction can be done online today (aside from the actual transfer of property). You can look at homes online, research neighborhoods, get mortgage quotes from lenders, find an agent, you name it. With all modesty aside, there has also been an increase in the number of helpful, informative and objective house buying websites ... just like this one! Being able to do so much research online saves you a lot of time when buying a house in today's market. For one thing, you can use the Internet to narrow down the area in which you would like to live. By focusing on certain neighborhoods like this, you will greatly reduce your house hunting and driving time. There are also certain mortgage websites you can use to get quotes from multiple lenders at once. Again, this is a big time saver.
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Posted 10/30/2008 4:00:53 AM
Property dealers in Noida are the professionals who simplify the entire process of buy, sell or rent of a property in the city. Being a prime NCR location, Noida is a hub of major real estate developments. Some of the most opulent residential and commercial properties are present for sale in Noida. Thus, the Noida property dealers or real estate agents are in a favorable position of making big deals on these properties. You can get all kinds of property listings in buy, sell or rent of properties with the Noida property dealers. Along with this they also provide you services as real estate brokers for buying or selling of your property on a nominal fee. The real estate agents in Noida will help you complete all the legal formalities like house registration or rent agreement for rental property, property taxes, property management etc. Some property dealers in Noida deal in only the bigger real estate properties like residential plots for housing societies, industrial land, commercial shopping malls and It parks. Noida being a major MNC hub and upcoming metro city demands many such properties. As one of the most favorite destinations for IT and BPO related companies, Noida attracts professionals of all kinds from across the country. This necessitates the existence of such property dealers who deal exclusively in residential houses for sale and also for rent. Thus, there are smaller property dealers who deal in houses, apartments and flats in Noida and retail shops, offices and warehouses in every sector of Noida. Most of the housing accommodations available in the city command very high capital and rental values, and hence are accessible to only a selected category of home seekers. Nevertheless, the extensive knowledge of Noida real estate agents about each and every sector of the city can help you find an affordable home here.
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Posted 10/29/2008 4:23:41 AM
Gurgaon is a very well and good locality and all types’ facilities are present in gurgaon. Many builders are also come and lots of projects are present in Gurgaon real estate. And lots of commercial and residential project in gurgaon. DLF lots of projects in gurgaon and give good facility in all sectors.The Real estate market of Gurgaon has shown incredible boom in the period between 1998 and 2008, a period in which the city pioneered real estate developers like DLF.Having property in Gurgaon is beneficial in respect to prices, rental income and security. The prices of residential as well as commercial real estate has been increased at a fast pace. It’s been over 60 years, since the DLF Group has been providing us its exceptional real estate services. DLF has over 224 million sq.ft. of existing development and 748 million sq. ft. of planned projects. The company is thoroughly committed to quality, trust and customer sensitivity, and delivers on promises with agility, financial prudence and in tune with the highest global standards. Not only this, the real estate major has also entered into various strategic alliances with global industry leaders. Nowadays, the trend of having elite dwelling has increased the demand of real estate in Gurgaon. For accomplishing the increasing demand of Gurgaon properties, a number of real estate developers have come with some new high end projects for middle and upper class people at Dlf Phase Gurgaon. Real Estate/Plots Gurgaon is best opportunity for property, It is located close to Delhi and is emerging one of the hottest destination as far as for real estate is concerned. Gurgaon can be the best choice for buy residential property, commercial property, plots property. There are many ongoing projects. DLF has launched a new residential/plots project in DLF Phase 1 to phase 5.Besides modern offices and expensive houses, Gurgaon is also very popular for its residential properties for middle class people. Nowadays, a lot of constructions are ongoing keeping in mind requirements of middle class segment. Due to easy accessibly from South Delhi, the city has become world’s finest real state destination either for Indian or investors from abroad. With the connectivity from international airport gives Gurgaon special attention over other cities in the NCR. Gurgaon Real Estate has become first choice among investors as the quality construction and innovative additions. The real estates in Gurgaon offer lucrative profit for investors who are investing money either for commercial or residential properties. The city is renowned as a one of the finest choices for investment in India.
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Posted 10/27/2008 4:29:24 AM
Land Prices Will Eventually Correct To Make Affordable Housing A Possibility For Developers To Invest In The Near FutureWith the slowdown in real estate sector over the last one year, the real estate prices have shown some signs of correction. As there is oversupply in the premium segment of housing sector, builders are now focusing in the middle-income group-housing sector. But, the biggest hurdle in this enterprise is the land prices, which have gone through the roof in the last couple of years. According to a report prepared by , real estate consultancy firm DTZ, affordable housing for the middle-income group in the country range between Rs 2,500 per sq ft and Rs 3,000 per sq ft. But as the prevailing land cost of floor surface area of apartments in suburbs like Gurgaon, Noida, Ghaziabad and Faridabad are over Rs 2,000 per sq ft, developers are finding it difficult to build affordable houses for the middle class group. In fact, the cost of land in Delhi is around Rs 6,000 per sq ft. According to an industry source, the cost of construction for an average quality house is in the range between Rs 1,100 per sq ft and Rs 1,500 per sq ft. Besides that, marketing cost is in the range of Rs 150 to Rs 300 per sq ft. Therefore, the minimum cost of an apartment in suburbs of NCR is Rs 3,200 to Rs 3,500 per sq ft. Thus, the report points out that the high land prices in cities are main hurdle to develop affordable house in cities. This has led to a sharp drop in the transactions of land in cities like NCR, Mumbai and Bangalore. The report says that the steep fall in the number of transactions indicates that prices are likely to moderate in near future. Anshul Jain, CEO of DTZ India, says: "Land prices usually lag the real estate cycle. The trend is visible in that while built up property prices have softened over the last few months, land prices have held. However, we anticipate a general softening of land prices in the range of 15% over the next six months." A survey conducted by DTZ among the realty brokers revealed that more and more land owners, who were earlier willing to negotiate on price points are now willing to talk to prospective buyers. The report says that in the next 6-12 months the expectations of both sides would start to converge, thereby resulting in pick up of transactions across major cities. It says these transactions are likely to be executed at price points lower than those observed in 2007. The report says that because of the slowdown in the residential sector in the last one year, developers have shifted their focus to affordable houses. The economics of these projects, driven by the end-use pricing of their apartment units, dictates the pricing of other inputs including land. It says keeping a fixed final-price band in mind, the developer/investor works backwards taking into account the construction, marketing and overhead costs and acceptable profit margins. The cost of land is worked — then worked backward, which defines the acceptable land price for the buyer. Anything significantly higher than that is not finding many takers in the present market. Even in the commercial land market, the developers are not ready to invest in the costly land. The report said that with the dampening of the expansion plans of many companies, the demand for land for office segment has fallen. A large number of developers who had land designed for IT/ITES use are willing to sell their holdings, while those who had started development on their land parcels are protracting the construction period. This situation is expected to persist, unless the global environment improves in the near future. The current situation in the commercial land market is such that there is a huge demand but the buyers are not being able to meet the overheated prices. Because of this, in many micro markets, large developers are keeping away from the auctions as they believe that this leads to unrealistic prices. As developers are finding it difficult to execute a project within the affordable range for the middle class, they are delaying the launch of projects. At the same time, the cost of holding a land is also high. This has led to consolidation of land banks among the developers. Developers with strong execution capabilities are expected to reap the maximum benefits. This class of market players can not only maximize their returns from the existing land banks but also capitalize on reasonable land prices to expand the value of their land holdings. This could result in a market shakeout, with the players having strong development capability and land holding emerging winners. But, in the long run, it is the end users who will be the real winners. The consolidation will ultimately lead to increase in the supply of affordable houses. Courtesy: - TOI dtd: - 25th Oct. 2008
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Posted 10/25/2008 2:46:53 AM
The Finance Minister, Mr. P Chidambaram on Wednesday called upon States to reduce tax rates on transfer of property to enhance their tax revenue from this sector. “I think we must look at taxes on transfer of property in India, reduce the tax rates, reduce the transaction cost and therefore that is a big source of revenue,'’ Mr. Chidambaram said at a USAID function here. He said a large number of transactions in pr operty go UN taxed since the tax rates and the transaction costs are so high. And Mr. P Chidambaram announces the information in real estate sector. Care of decrease down in Tax in Indian real estate sector. So lots of person benefit in facilities and profit these facilities. “As my friend just said there will never be a real estate asset bubble in India because the (revenue from) taxes are so depressed to the real price,'’ he added. However, tax on property is the one area where States have put some efforts, though not enti rely satisfactory, he said. He said effectively states’ taxing powers are limited. “There are two kinds of taxes (at the states levels) — one the sales tax and the other taxes on liquor and related products. Although the other tax, that is tax on agricultural income is available to states… it is hardly likely that any state will tax the agricultural income,'’ he said. He asked states to look at alternative tax policies, make revenue choices and enhance the revenue mobilisation.
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