Monday, 30 November 2015
Sunday, 29 November 2015
by 2022 Ind-Ra - Housing for All may boost economy by 3.5%
MUMBAI:
Prime Minister Narendra Modi's ambitious project Housing For All has
the potential to push up the country's economy by 3.5 per cent by 2022
with sectors supplying crucial inputs to the construction industry being
the biggest beneficiaries, says India Ratings.
According to the report, sectors like cement, iron and steel, which supply crucial inputs to the construction industry, are expected to be the biggest beneficiaries of the Housing for All (HFA) programme.
The agenc ..
According to the report, sectors like cement, iron and steel, which supply crucial inputs to the construction industry, are expected to be the biggest beneficiaries of the Housing for All (HFA) programme.
The agenc ..
Saturday, 28 November 2015
INDIA-How to invest in commercial property
When times get tough, commercial property provides
the perfect backdrop. Abandoned office blocks, half-finished
developments surrounded by barbed wire and cranes standing idly on the
skyline: in an economic downturn, real estate is one of the first
sectors to suffer.
With this in mind, most investors approach commercial property with
caution. Memories of the crash of 2008-09, in which many office
development
Commercial property encompasses retail,
industrial estates and office blocks. “[It] can refer to anything from
the acquisition of a local Domino’s franchise to negotiating with the
Barclay brothers to acquire their prized Ritz hotel on London’s
Piccadilly,” says Edward Minter, a development consultant at Black
Brick, an independent property buying agency.
And while the majority of investors are unlikely
to be taking tea at the Ritz — let alone buying the hotel — Mr Minter’s
point is a good one. Properties — or lots, as they are known — bought in
the commercial sector tend to be much larger than purchases in the
residential market. Norway’s sovereign wealth fund, for example,
recently snapped up a 150-year lease on 25 per cent of Regent Street, one of London’s main shopping centres.
India's small towns adding to home loan growth by 19%
New Delhi: Home loan segment is one area where both the public and private sector bank are currently focussing a lot.
As per a report in the Times of India, small towns are the main engine behind the growth in home loan.
Host of freebies, offers and discounts are thrown by developers and promoters who also promise a quick sanction of loan with the banks they have tied up.
With increasing ambition to own a house, two tier cities and small towns, however, have changed the dynamics in loan business.
The focus has shifted to smaller banks. The paper said, Syndicate Bank's home loan portfolio has expanded 76 percent, Central Bank, Andhra Bank to 30 percent, ICICI Bank at 28 percent, HDFC at 23 percent. While largest public sector lender SBI was at 15 percent.
Bank credit growth continued to disappoint during first half of the current fiscal with an annual growth of just 8.4 percent at Rs 62.02 trillion (Rs 62.02 lakh crore), down 20 bps, as per Care Ratings.
However home loans were up 8.6 percent against 7.5 percent at Rs 6.83 trillion.
As per a report in the Times of India, small towns are the main engine behind the growth in home loan.
Host of freebies, offers and discounts are thrown by developers and promoters who also promise a quick sanction of loan with the banks they have tied up.
With increasing ambition to own a house, two tier cities and small towns, however, have changed the dynamics in loan business.
The focus has shifted to smaller banks. The paper said, Syndicate Bank's home loan portfolio has expanded 76 percent, Central Bank, Andhra Bank to 30 percent, ICICI Bank at 28 percent, HDFC at 23 percent. While largest public sector lender SBI was at 15 percent.
Bank credit growth continued to disappoint during first half of the current fiscal with an annual growth of just 8.4 percent at Rs 62.02 trillion (Rs 62.02 lakh crore), down 20 bps, as per Care Ratings.
However home loans were up 8.6 percent against 7.5 percent at Rs 6.83 trillion.
Rs 160 crore Biggest ever property deal in India! Mumbai duplex sold for whopping Rs 160 crore
New Delhi: On one hand you have India's debt-laden property market
struggling to sell billions of dollars worth of yet-to-be finished homes
while on the other you have news of luxury apartments being sold at
hundreds of lakhs.
A property deal worth Rs 160 crore has taken the entire realty market by storm in Mumbai.
As per a report in the Times of India, real estate developer Lodha Group has sold an under-construction luxury tower at Altamount Road in Mumbai for Rs 160 crore.\
The report further says that the duplex, spread accross 10,000 sq ft, is believed to have been brought by a pharma company. Touted as the biggest apartment deal in India, the rate per sq ft paid is Rs 1.60 lakh, reportedly.
In current property market scenario, developers are turning to deep discounts, free parking spots and even gimmicks like gifts of gold coins and motorbikes as they seek to turn property inventory into cash.
It may be recalled that in August, a sea-facing triplex penthouse in South Mumbai's Napean Sea Road locality was bought by an industrialist for a whopping Rs 202-crore deal.
Source
A property deal worth Rs 160 crore has taken the entire realty market by storm in Mumbai.
As per a report in the Times of India, real estate developer Lodha Group has sold an under-construction luxury tower at Altamount Road in Mumbai for Rs 160 crore.\
The report further says that the duplex, spread accross 10,000 sq ft, is believed to have been brought by a pharma company. Touted as the biggest apartment deal in India, the rate per sq ft paid is Rs 1.60 lakh, reportedly.
In current property market scenario, developers are turning to deep discounts, free parking spots and even gimmicks like gifts of gold coins and motorbikes as they seek to turn property inventory into cash.
It may be recalled that in August, a sea-facing triplex penthouse in South Mumbai's Napean Sea Road locality was bought by an industrialist for a whopping Rs 202-crore deal.
Source
in 2016 Property Prices in India to Remain Resilient : Fitch
According to Fitch Ratings' report titled '2016 Outlook: Indian Homebuilders', even as pre-sales in India's residential segment are likely to increase by nearly 5-10 per cent in 2016, developers will not be able to deleverage immediately as most of them have offered various schemes that would delay payment by buyers.
The pre-sales had, however, risen by 18 per cent in 2014-15 for the seven large home builders that the rating agency has tracked in the report. Four of these companies continued to report strong pre-sales in the six months to end-September 2015.
"Even if the pre-sales grow by 5-10 per cent, de-leveraging will be gradual because many companies introduced easy-payment schemes in the last 12-18 months that will delay cash payments from buyers," the report said.
Fitch also expects inventory turnover to improve on a sector-wide basis in 2016, driven by more sales, and developers limiting the launch of new projects to focus on selling and completing existing projects.
Inventory turnover for the companies surveyed improved to 2.9 years in September 2015 from 3.8 years in March 2015, and a peak of 4.6 years in March 2013.
"Developers have been reluctant to reduce prices, and have instead used easy-payment schemes to woo buyers. As a result, there has not been a major price correction in residential real estate since at least 2011, according to the residential price index published by the National Housing Bank of India," the report said.
According to the report, the average selling price during April-September 2015 was 13 per cent higher than in the corresponding period of FY15, but primarily because the sales mix shifted to higher-end units.
Source
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