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The booming real estate market that received a jolt during the slowdown last October-November seems to be recovering. People are slowly purchasing, but only for personal use. Not for investment purposes.
“In the last few months the real estate market has undergone major changes. The slowdown that migrated from the US has got corrected in India now. The prices have got corrected. And whatever pent up demand was there in the market has started getting converted into business,” Santosh Rungta, president Confederation of Real Estate Developer’s Associations of India (CREDAI), said.
With 4,000 members, CREDAI is the apex body of the organised real estate developers and builders across India, representing pan-India associations of real estate and housing developers. People were virtually not buying during...Read more
3 August 2009 indianrealtynews.com
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In a few months from now, a uniform real estate valuing method will be put in place across the country. For that, the National Housing Bank (NHB) has prepared a draft of real estate uniform valuing methods. Speaking at a Banking Conclave organised by Federation of Indian Chamber of Commerce and Industries (FICCI) on Wednesday, Sridhar said, “Like uniform accounting standard, we also need a uniform valuation standard for real estate properties. We have already prepared a draft and are now discussing with valuers and bankers. Once, it is finalised, a uniformity will emerge in real estate valuation.” Sridhar said NHB was scouting for a partner for the proposed Indian Mortgage Guarantee Company, where NHB owns 43 per cent stake. “AIG, which had proposed to take 41 per cent stake in the company, withdrew itself due to financial difficulties in October 2008. We are now searching for an alternative partner,” he added. Asian Development Bank (ADB) and International Finance Corporation (IFC) are the other partners of the company with eight per cent stakes each. Sridhar, chairman and managing director (CMD), said that some stakeholders/partners of Housing Finance Company had expressed interest in it. If they finally leave, Central Bank is willing to pick up their stakes, which would in turn strengthen Central Bank’s exposure in housing finance, he said. Hudco, UTI, NHB are the other partners in Central Bank’s housing finance company
30 July 2009 indianrealtynews.com
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Rs 13 cr Decline in Sobha Developers Q1 Profit
Realty major Sobha Developers has seen its net profit nosedive for the first quarter ended June 30, 2009, at Rs 12.7 crore, against Rs 50.5 crore for the same period in FY09. Income from operations stood at Rs 177.1 crore (Rs 346.8 crore). Sobha, which bore the aftershocks of the global economic slowdown, has seen a revival in fortunes in the first quarter compared with the fourth quarter ended March 31, 2009. Net profit in the first quarter increased 76.4% to Rs 12.7 crore from the fourth quarter, while total income was sequentially up 15.6% at Rs 178.6 crore.
“The real estate industry has seen clear signals of revival in demand during the first quarter. With the Indian economy growing at 6-7% and expected to achieve a higher growth rate in the next couple of years, real estate infrastructure industries are poised to play a more significant role. It will be a domestic-driven industry, growing at a much faster pace,” a company filing made with the bourses added. On its part, Sobha Developers has realigned debt, brought on board a private equity partner, besides successfully completing a qualified institutional placement (QIP) raising Rs 500 crore. Read More »
30 July 2009 indianrealtynews.com
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Interest Rate Subsidy for Mid-Segment Housing- FM
Finance minister Pranab Mukherjee said that the interest rate subsidy for mid-segment housing would be routed to customers through commercial banks and housing companies registered with the National Housing Bank. He said to further provide stimulus to the housing sector, it will be allowed a tax holiday in respect of profits derived from projects approved between April 1, 2007 and March 31, 2008, if such projects are completed on or before March 31, 2012. ‘‘I expect the developers to pass on the benefit of tax holiday to home buyers by appropriately reducing their prices. I am sure that both the expenditure and tax-foregone initiatives would provide relief to a large segment of prospective home owners and help revive the real estate sector,’’ he added.
The interest subsidy is aimed at mid-segment housing loan borrowers from the lower middle to middle-income groups. Even on Monday, Congress MP from Mumbai (North) Sanjay Nirupam, while speaking on the finance bill, said 42.4% of Maharashtra’s population was urbanized and trends pointed to increasing migration to cities. With home loan rates climbing steeply, there was a case for providing relief to borrowers. Providing an interest subsidy and a targeted tax break also answers in part the demand that the becalmed real estate sector needs a leg up. The government’s message to the real estate developers is to lower prices and make housing more affordable for the aam aadmi. Read More »
29 July 2009 indianrealtynews.com
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