Monthly Archives: March 2012

Buyers back in Realty Sector this Navaratra.

Buyers are back in the realty market this Navaratra, lending credence to this festive season’s reputation as a golden period for business in this sector.

There is flurry of activity in the offices of realty firms as buyers are coming out to seal deals. The mood is likely to remain upbeat till the end of summer vacation of schools.

“I am sure that this positive momentum in the market will continue till summer vacation when even more end users are likely to clinch deals,” Samir Jasuja, the chairman and managing director of Prop Equity, says.

“After Navaratra, summer vacation in schools is regarded a good time for realty, as people wait for the end of term of their children to shift houses or buy one. The summer is a time of transfers and relocation; a time of school admissions and hunting for a house near schools, so that children can have an easy commute,” Jasuja says.

Gaurav Mittal, the managing director of CHD Developers, says: “The mood is really upbeat in the market with people finalizing deals in property. While market warms up during Navaratras even during bad times, this Navaratra is different. The quantum of deals is unexpected, though a welcome development.”

Jasuja says, “Notwithstanding a slew of legal battles, buyers are taking a final call on their new purchases in Noida and Greater Noida.” A report of Prop Equity says that the current financial year has proved to be good for almost all the big cities of the NCR including, Noida, Gurgaon, Ghaziabad, Greater Noida and Faridabad.

Sanjay Khanna, the director of Kailash Nath Developers Pvt Ltd, says: “I hope the worst is over for realty market and transactions take place till the end of summer vacation in schools. This Navaratra is proving to be very auspicious for the realty world. I know that NRIs, too, find the summer months an ideal time to return to their roots in order to buy property. Their search for a property also starts during the summer. This is the time when they visit India in order to meet their relatives and, side by side, also look for nice properties. They do not mind paying slightly more for good properties.”

Realty watchers say that April-June period records a high quantum of property transactions. Realty market picks pace from Navaratras. This is a time when end users finalize their deals and those looking for new homes on rent, also shift. The summer is also a time when the resale market picks up nicely.

Vijay Jindal, the chairman and managing director of SVP group, says: “It is a hectic period from Navaratra and through the summer months. A lot of transactions take place at all levels.” He says that during the summer, buyers give priority to those projects which are close to good schools.

On Saturday i.e. 31-3-2012, Income Tax Offices will remain open.

The Financial Year 2011-12 is going to close on 31-3-2012 which is falling on Saturday. All the Income Tax Offices throughout India shall remain open on this day and the receipts counters shall also work during normal office hours.

This direction is issued for administrative convenience by the Central Board of Direct Taxes in exercise of powers conferred under section 119 of the Income Tax Act, 1961.

Income Tax offices will function from 9.30 am to 6 pm tomorrow to handle year-end rush.

Special arrangements such as opening additional receipt counters, wherever required on 30th and 31st March, 2012 to make it easier to the taxpayers in filing their returns of income conveniently. These instructions may be given wide publicity – ORDER [F.NO.225/138/2011/ITA.II], DATED 30-3-2012.

Chennai leads Indian Property Sector.

The Indian property market will see more investment from overseas this year as it still remains an attractive investment destination globally.

In a recent report, property broking and real estate consulting firm Jones Lang LaSalle said the Indian property market is poised to attract about US$3 billion, almost double last year’s US$1.6 billion, from overseas buyers this year.

Of this, one-third would be from home buyers and the balance from investors. This is despite the fact that property prices in India are at an all-time high.

According to a recent National Housing Bank (NHB) survey, property prices in big Indian cities have increased by as much as 43 per cent to 166 per cent in the last four years.

NHB, wholly owned by the Reserve Bank of India, lends to home-mortgage companies. It also regulates and refinances social housing programmes. In its report, the bank said Chennai had seen the highest rise in prices at 166 per cent. Bhopal was second with a hike of 117 per cent and Mumbai was ranked third with an increase of 87 per cent.

What then brings overseas investment to Indian property, when prices are skyrocketing? The answer is simple: Despite the global turmoil because of the financial crisis, the Indian economy has remained robust, largely due to domestic-driven demand.

According to Jones Lang LaSalle, India’s strong economic growth, rapid urbanisation, growing middle-class population, demographic advantage and increased thrust on infrastructure has worked in its favour. Buying property is especially popular among Indians living abroad, who all seem to want a piece of the homeland. That is why Indian property shows are burgeoning around the globe.

Dubai-based Sumansa Exhibitions has been holding Indian property shows across five countries. And every year the number of developers taking part in the shows and the attendees has grown rapidly.

Sumansa Exhibitions’ chief executive officer Sunil Jaiswal says: “We have held shows in the UK, South Africa, Hong Kong, Dubai and Singapore. They have been very well received by both exhibitors and visitors alike.”

This year Sumansa will hold the Indian Property Show in Singapore on April 14 and 15. It will be held at the Suntec Exhibition Centre’s hall 401 and nearly 40 developers from across India will be part of the show.

More than 200 properties will be showcased during the two-day exhibition. Sumansa expects the number of footfalls at the event to be much larger than the 4,000 that turned up at its last year’s event.

Blue Mountain Real Estate Advisors, Preferred Bidder for 42 Marriott Hotels in UK .

Indian property investor Blue Mountain Real Estate Advisors has been selected as the preferred bidder for 42 Marriott hotels throughout Britain after it offered almost 750 million pounds, a media report has said.

The holding company for the portfolio of hotels collapsed under the weight of about 900 million pounds of debt, most of it held by Royal Bank of Scotland (RBS).

Blue Mountain Real Estate Advisors, a part of the Mumbai-based India Blue Mountain group, is understood to have been granted a period of exclusivity by RBS to put together funding for a deal, The Times said in a report.

The proposed sale to Blue Mountain comes as a surprise as, according to the report, the front-runners in the latter stages of the auction had been RB Capital and Sahara, the Indian group that bought the Grosvenor House on Park Lane just over a year ago for 470 million pounds.

Realty Developer Brigade Group opens Orion Mall in Bangalore.

Real estate developer Brigade Group has opened its flagship retail venture Orion mall in Brigade Gateway Enclave, Bangalore. Spread over 8.2 lakh sq. ft., the mall houses a mix of global and national brands.

Brigade Group has completed over 100 projects, developing over 20 million sq. ft. of area since 1986.
Orion mall is developed and managed by Brigade Group and located in the Brigade Gateway Enclave that also includes the World Trade Centre, Sheraton Bangalore hotel, 1,200+ residences, Columbia Asia Hospital, The Brigade School, and Galaxy Club. The mall overlooks a two-acre manmade lake and has open-air children’s play area and amphitheatre.

Foley Designs and DSP Design are the interior designers, while HOK from New York has developed the main design of the mall. The mall has LED lighting solutions, automatic sensor controlled car parking, over 225 closed-circuit security cameras apart from 42 lifts and escalators.

Speaking on the occasion, Jaishankar, CMD, Brigade Group, said: “Orion mall will undoubtedly be the most sought-after destination amongst discerning shoppers and for brands of repute as well. With the launch of Orion, it truly transforms the Brigade Gateway Enclave into an exclusive integrated lifestyle enclave and marks the Brigade Group’s foray into the highly competitive retail segment.”

Orion has a hypermarket (Star Bazaar). Its food court (Sauce Pan) spreads over 55,000 sq. ft. Housing brands like Mc Donald’s, Subway, Sbarro, Rajdhani, Kailash Parbat, Empire, Empire Fresh Fruit Juice Centre, Indian Tadka, Mad about China, Mad over Donuts, Tiger bay, and Up south. The mall also houses a Reliance Digital store for electronics need.
For entertainment, Orion will house the largest PVR multiplex of the country – with 11 screens and over 2,800 seats. BluO, a 27-lane bowling centre will also open its first centre in the city. The lounge will offer entertainment options like Karaoke bar. The mall will also house Time Zone, an 8,000 sq. ft. gaming centre.

EWS 20% Reservation will take time, Says Realty Sector.

The realty sector is at loggerheads with the state government after a directive by the Urban Development Department to private developers that they reserve 20 per cent of plots and tenements for the economically weaker sections (EWS). The move is being opposed not only by individual developers but also by the Confederation of Real Estate Developers Association of India (CREDAI) who is tagging the proposed policy as unworkable and not contemplated in totality. CREDAI has filed an objection with the Town Planning Department (TPD) arguing that Rajeev Awaas Iona gave thought to all aspects of such housing creation.

“The department is at present hearing people with stake in real-estate industry and have filed objections. The hearing report will be submitted to the government for approval,” said Avinash Patil, deputy director, TPD. The government notice, issued in January, specifies that out of development on plots measuring 2,000 square metre and above, the developers should reserve 20 per cent of the area for the EWS category in the plot size of 30 to 50 square meters. In case the developer is building apartments on the same area, it has been directed that minimum of a 20 per cent of built-up area be reserved in the apartment size of 27.88 to 45 square meters.

The real estate industry feels that implementation of such a policy should only happen after adequate thoughts as the notice can affect the industry adversely. “The notice lacks clarity. In the present form the move will hit us badly,” said Hemant Naiknavare, vice-president, CREDAI, Pune Metro.

Bangalore Realty may see 25 per cent growth.

The real estate sector in Bangalore has grown to a large extent in the past one year. In the year ahead, the city’s realty is expected to grow by 25 per cent as per the CREDAI estimation.

“We are expecting the realty to grow by 25 per cent in the coming year. Last year too we have witnessed a similar growth,” said Sushil Mantri, president, CREDAI Karnataka.

The city is likely to absorb about 7.1 million sq. ft. of office space against a supply of 7 million sq. ft as per the studies conducted last year while demand for office and commercial sales in the city saw a rise, residential sales remained slow.

Experts said that the city witnessed a great strength in high street leasing and rent, and capital value has increased nominally in a few sub-markets. Also, there was a rise in rental value as demand by retailers remained strong.

With commercial office space developers offering favourable options, predictions for 2012 are that several IT companies in the city will look at pre-leasing office space.

However, analysts opine that office space supply will outweigh demand.

“FDI in multibrand real estate is expected to catalyse a lot of demand from international retailers. International luxury brands will restrict their growth plans to Mumbai, Delhi and Bangalore,” states a projected report by Jones Lang LaSalle India, Realty Intelligence firm.


Indian Realty Sector may gain due to Gudi Padwa.

Gudi Padwa, a festival which earmarks new beginnings and new hopes to everybody’s life. Hence many builders announce their new projects at this point of time taking into consideration the sentiments of the local market.

The festival is widely celebrated in the state of Maharashtra and as for common people in India, a home is a priced possession and they do not sell and buy residential properties often. They wait for an auspicious date to such transactions.

Keeping this in mind, realtors at Pune has organized Sakal Pune Property Show named as Sakal Gudi Padwa Grihotsav 2012. Across the just concluded quarter, residential prices in the outskirts of Mumbai have seen a positive slide.

With the Union Budget 2012 giving due consideration to the loans of affordable housing projects coupled with the positive feeling related to the festival, buyers and sellers expect to strike a great deal during this year’s Gudi Padwa.

The buyers mainly constitute the New Urban Family Sector. Moreover, during this festive season, realtors juxtapose the properties with attractive discounts and freebies. But with these factors only, nobody can lure customers today. They are more oriented towards the location of the property, the pricing and the quality of construction.

The recent years were not so good for real estate sector. The ever rising inflation rates and interest rates kept the buyers at the bay. But the recent decision of the RBI to cut CRR rates gives little bit of hope to the sector.

However real estate experts suggest that the sentiments related to a festival only cannot trigger the sector. But it is decisive in getting the real estate market on the right track after a gloom. Moreover, traditionally Gudi Padwa means birth of bhoomi and bhoomi is everybody’s shelter. We can hope and look forward for bright days for real estate sector ahead with this auspicious festival.

DLF Garden City Lucknow gets the ‘Integrated Township of the Year Award’.

Garden city, the first ever residential project in Lucknow by DLF has bagged the “Integrated Township of the Year – North India” award at the Realty plus Excellence Awards 2012, instituted by real estate monthly magazine Realty Plus. Cheered by a galaxy of realty stars, luminaries and other stakeholders present from all over the country at a glittering award ceremony held in national capital at The Metropolitan Hotel, Bangla Sahib road, Garden city, Lucknow was chosen for setting new benchmarks for excellence in the Indian Real Estate industry in 2012′, their immaculate town planning and their outstanding contributions and efforts towards bringing about massive and positive changes in the real estate skyline of this region.

This is the fourth award in the last two years conferred upon DLF India:

* Marketer of the Year For Hyde Park Estate at DLF New Chandigarh – Estate World Awards in Association with KPMG & Bloomberg-2011

* Developer of the year – North India – Estate World Awards in association with KPMG & Bloomberg-2011

* Integrated Township of the Year For DLF Valley, Panchkula – Realty Plus Excellence Awards-2010,

Receiving the award, Ananta Singh Raghuvanshi, director sales and marketing at DLF India Ltd said, “It is extremely encouraging to enter new markets and recreate the success and magic of the past. As a group we are extremely excited and committed to our developments in Lucknow, New Chandigarh, Hyderabad, Chennai, Bengaluru, etc. For each market, we are trying our best to think globally and act locally.”

Garden city is DLF’s first residential project, in the city of Nawabs- Lucknow. With almost 40 per cent of the area as open spaces and plot sizes starting from 250 sq. yards and above, the township conforms to very high standards of low density population norms. The facilities at Garden city match the international living standards and give the people of Lucknow their first real taste of an exquisite lifestyle. It boasts of meticulous town planning, eco-friendly infrastructure, wide open roads, its own smart sewage disposal plant, underground cabling and massive green belts running across the township.

Good time to fulfil a Sweet Dream.

For all those who thought Hyderabad was a costly city to live in, the latest statistics signify otherwise.

The city is ranked second in India, among 15 considered, for declining real estate prices in the year 2011, with the Economic Survey 2011-12 report tabling a decline by 14% in residential property cost in the twin cities, while a separate survey by the National Housing Bank has put the reduction rate at 8% for the quarter Oct-Dec 2011, as compared to 2010.

“Yes, there has definitely been a drop in prices by 5-8% in Hyderabad.

But if one asks for the drop in real estate prices in Hyderabad for the year 2011, one has to look at it more as a necessity of investors to postpone their purchases due to the unstable political situation prevalent last year and absence of any major infrastructural developments, rather than just lack of demand.

Such factors did lead to a 20 per cent decline in volume of sales, which ultimately affected the pricing,” said P Prem Kumar, managing director of Doyen Constructions and president of the Andhra Pradesh Real Estate Developer Association (APREDA), who added that even projects for commercial purposes have found less takers, with only half of the available 5 million sq ft of space in 2011, being actually sold off.

“Prices in main areas like Banjara Hills, Kondapur and Jubilee Hills etc. haven’t risen majorly over the past 10 years.

Instead, if one notices, it is outer areas like Shamshabad, Patencheruvu etc. where prices were inflated earlier, have suffered now due to lowered demand.” Statistics provided by the National Housing Bank report supports this claim, with prices declining by at least 10% in the North Zone region (Serilingampally, Patanncheruvu, Ramachandrapuram, Kukatpally) in Oct-Dec 2011, as compared with July- September 2011.

Prices in other zones, including the Old City, have come down only by 3-5%, as compared to the previous year.


Maharashtra stamp-duty hike: What it means for realty companies.

In a recent development, cash strapped Maharashtra government proposed to hike stamp duty on leave-license to 0.1% on market value or 1% of the average annual rent or deposit paid, whichever is higher, for residential properties. For commercial properties, the duty proposed is 0.4% for lease agreements over 60 months.

This is a whopping 160 times hike from the previous fixed amount of Rs 25,000 for residential and Rs 50,000 for commercial properties for 60 months.

Fortunes of real estate companies in India’s financial capital could take a turn for the worse if the Maharashtra government accepts the proposal to hike stamp duty on leave-licenses.

The government’s aim behind this move is to mobilize over Rs 1,000 crore and restore Mumbai to its previous glory.

Most realtors had stomached the 2% service tax hike (from 10% to 12%) announced in Budget 2012-13 and instead opted to see the silver lining , which is the introduction of external commercial borrowings (ECBs) in the low-cost housing segment and the reduction of withholding tax on ECB interest from 20% to 5%.

However, if the hike comes into effect, it will increase prices of leave-and-licence properties, both residential and commercial, by a huge margin which in turn will deal a sharp blow to an already-sluggish Mumbai real estate demand. India Bulls, Oberoi, HDIL, Phoenix Mills, Bombay Dyeing and Raymond are among the realty companies that will bear the brunt of the proposed stamp-duty hike.


Gulshan Ikebana at Sector 143B, Noida Expressway by Gulshan Homz.

Gulshan Homz, part of the GC Group of companies has launched its new residential project: Gulshan Ikebana at Sector 143B, Noida Expressway that is designed by keeping all the modern needs, indulgences and luxuries in mind and offers a sleek, infinitely flexible, multi-dimensional and open life and is well conceptualised for quintessential living.  One would enjoy excellent location advantage with lust green surrounding and seamless connectivity at Ikebana located right on the Noida-Greater Noida expressway which offer natural retreat as well as excellent metropolitan convenience and vibrance with Apartment sizes 1400 sqft  to 2300 sqft. The project is spread over 12.5 acres land.


  • Club
  • Internet Connectivity, 24 x 7 Security
  • Intercom Connectivity
  • Swimming pool, Steam/Sauna/Massage Rooms
  • Yoga Centre, Indoor Game
  • Jogging Track, Badminton
  • Basketball Court( Half Court), AC Gymnasium
  • Aerobic Dance Floor, Coffee Shop
  • AC Unisex Beauty Salon, AC Banquet / Party Hall / Guest Lounge
  • Kids Lounge
  • Doctor and Ambulance on Call
  • Stretcher Lifts, Wheel chair for Elderly and sick


About the Developer:

Gulshan Homz has created a mark of excellence in luxury Real Estate Development for themselves with sound business ethics, honest morale, integrity, transparency and invaluable experience. They have developed many luxurious living spaces  and have improvised skills over the years to launch a number of premium projects and are looking forward to develop luxurious home with a vision to gift a green environment and prosperous cities to the future generations.

Real Estate Sector: Waiting for the long pending Industry Status.

The Union budget has no real measure for the real estate sector as most of the industry expectations have not been met. The most important demand across all real estate companies is that of an industry status being assigned to the sector has been still pending.

Extension of the 1 per cent interest subvention scheme for affordable housing will help the buyers to avail a loan limit of Rs 25 lakh. Also the measures to increase funding for highways and other infrastructure will help put more territories on the real estate map.

Though the overall expectations haven’t been met, the announcement with respect to external commercial borrowing now being permitted opens up a huge opportunity for developers want to cater to the bottom of the pyramid with housing units targetted at the lower income classes.

This move will ensure better capital availability for developers of low-cost housing. Better capital availability will result in timely project execution, which will boost volumes and since low margins are typical of this sector, only higher volume growth will make it attractive to developers.

The Union Budget 2012-13 throws up a mixed bag for the real estate sector. The government’s initiative to make affordable housing available to a larger section of the society has only been met partially. Initiatives such as external commercial borrowing (ECBs) for the affordable and low-cost housing segment will help the sector to tap long-term funds and help ease the liquidity in the sector.




Unitech Seeks Arbitration in order to Resolve JV Dispute.

Indian real-estate developer Unitech Ltd on Friday sought the Company Law Board’s approval to resolve through arbitration a dispute with Telenor ASA over their telecom joint venture, but the Norwegian company is set to oppose the move.

Unitech applied to the board–a quasi-judicial body–seeking arbitration after the two companies failed to make any headway in resolving their dispute over who will control the joint venture Unitech Wireless Ltd. The board said it will hear Unitech’s application on Monday.

The dispute between the two parties, which had been simmering for some time, boiled over after India’s Supreme Court on Feb. 2 ordered the scrapping of 122 mobile-phone licenses–including 22 of Unitech Wireless–issued without auction since January 2008 to several companies, saying the allocations were rigged and under-priced.

Late Wednesday, a person with knowledge of the matter had said that Unitech was open to selling its 32.7% stake in Unitech Wireless to Telenor but only if the valuation was right. The person said that while Unitech valued the joint venture at 100 billion rupees ($1.96 billion) to 120 billion rupees, Telenor valued it at 4.00 billion rupees-8.00 billion rupees.

Telenor holds Unitech liable for breach of warranties related to the license cancellation and has said that it will seek compensation for all investments, guarantees and damages caused by the court’s decision.

Unitech has denied Telenor’s claims. Both companies have since approached the Company Law Board. Telenor wants its partnership to be voided and Unitech to be prevented from obstructing its attempt to run its Indian operations from a new venture in which it could hold 74%. But Unitech is trying to prevent Telenor from assuming full control over the business, including its assets. Unitech Wireless offers mobile-phone services under the Uninor brand and has about 40 million subscribers.

Coal Scandal gives a loss of $210 billion to India.

According to the report, leaked to the Times of India newspaper, the primary beneficiaries were about 100 private and state companies that were handed contracts for 155 coal fields between 2004 and 2009 without going through a competitive bidding process. The report said that $210 billion — five times India’s annual defence budget — was a conservative estimate given that it relied on prices for low-grade rather than medium-grade coal.

The Indian Parliament erupted in hoots and jeers Thursday after a draft report by government auditors estimated that the national treasury lost $210 billion by selling coal fields to private excavation companies in sweetheart deals.

The report represents the latest in a string of corruption scandals to hit the ruling Congress Party — others have involved the telecommunications, real estate and sports industries — that has left India’s leadership weak and bereft of policy initiatives. Opposition leaders called the latest revelation the “mother of all scams,” accusing the government of looting the country.

But auditors with the comptroller/auditor general’s office countered that the leaked draft is misleading, adding in a letter to the prime minister’s office that the figures publicized were the product of discussions held at a “very preliminary stage.”

“We are examining the news report and I have called for records,” Coal Minister Sriprakash Jaiswal told journalists, adding that he wasn’t in office at the time of the suspect deals. “After that I will reply.”

India, the world’s third-largest coal producer after China and the United States, has seen a series of mining scandals. In August, the top elected official in south western Karnataka state resigned after being implicated in a mining scandal that a watchdog said involved $400 million. Three months later, a report claimed that almost 50% of the iron ore exported from western Goa state was illegally mined.

India is hungry for energy to fuel its fast-growing economy, and coal accounts for 70% of the mix, a percentage expected to grow, given limitations on the further development of power from nuclear reactors and renewable sources. Environmentalists, however, say increased production is ecologically unsustainable.

IMf Chief commented that the Global Economic Crisis has presented many lessons.

Addressing at a New Delhi conference on sustaining high-quality growth in India and China, Lagarde billed the financial and real estate sectors as the prime causes of the global financial crisis.

The International Monetary Fund (IMF) Managing Director Christine Lagarde on Tuesday said the global economic slowdown has presented many lessons, and added that the financial sector, which has been identified as a ‘high contagion’ agent for the crisis must aid growth, not threaten it.

Also Lagarde said that “We’ve also identified that the financial sector and financial institutions were high-contagion agents for the crisis, and that tells us, I think, a lot about where reforms have to focus going forward, both in the advanced economies and the emerging markets.”

“Whether it is China or India, the financial sectors and the financial institutions have to be strong, have to be agents for growth and not a threat to growth,” she added.

Referring to the financial crisis in the Euro zone, the IMF chief said concerted efforts by some European nations and the European Central Bank (ECB) had pulled the continent further away from the brink, though several challenges still remained to be tackled.

“Thanks to the ECB, thanks to the European partners really addressing the issue of governance and thanks to the European partners and the IMF really focusing on what needs to be improved, we are further away from the abyss than we were three months ago, but there are still some really significant vulnerabilities and fragile areas that need to be tackled, that need to be addressed with rigour and vigour in the months to come,” Lagarde said.

Positive effect of Budget 2012 for Mumbai’s Real Estates.

The increased allocation for highways and other infrastructure projects will help boost development of Mumbai’s outskirts and increase the supply of housing units there. This will result in price stability and affordability over the long term. The investment-linked deduction of capital expenditure in affordable housing, proposed to be raised to 150% from 100%, will also encourage more supply of low-cost housing in the city.

Allowing external commercial borrowings (ECBs) in the low-cost housing segment, the supply of affordable housing projects will increase in the outskirts of Mumbai in areas such as Karjat, Boisar, Nalasopara, Virar, Dombivili etc. on the heels of increased liquidity for budget home projects.

The reduction of the withholding tax on ECB interest from 20% to 5% will help Mumbai’s affordable housing segment by creating much-needed liquidity for budget home developers. End users will have more money available for home loans with the setting up of a credit guarantee trust fund to ensure better flow of institutional credit for housing loans.

The announcement of central assistance and Japanese participation in the Delhi-Mumbai Industrial Corridor project is a big plus. Areas on Mumbai’s outskirts that lie along the corridor will see increased land values.

The extension of 1% interest subvention scheme on housing loans up to Rs 15 lakh wherein the cost of the house does not exceed Rs 25 lakh, for another year will also help sustain demand for affordable housing in Mumbai.

By reinforcing the tax pass-through status for all types of Venture Capital Fund (VCFs), there will be renewed confidence levels of real estate private equity investors to invest in cities such as Mumbai (which has seen most of the PE investments post the Global Financial crisis.)

Gurgaon to be safe as an Investment Bet.

Capital values rose  in Gurgaon’s residential sector over the last one year. Developers are now going slow on execution of real estate projects, resulting in a drop in supply of residential apartments in most prime markets. Emerging residential areas are still not able to meet the huge housing demand.

Due to rampant construction delays, the expected supply of residential properties announced in early 2009 has not been able to reach the market. Around 500,000 units that were scheduled for possession in key markets by end of 2011 are delayed by another year.

There has been an increase in lateral hiring by corporates. With job scenario improving all over the country, people have more to spend. This has resulted in good investment opportunities, and investor sentiments in the affordable and mid-income segment of Gurgaon’s residential market have improved.

Gurgaon remains promising for office space, and there are good prospects for more major global players setting up operations here in near future. On the whole, this augurs well for the residential property market, more or less assuring relatively healthy absorption of residential space in the times to come. The new infrastructure initiatives being undertaken by the government will also play a crucial role for Gurgaon’s residential and commercial property sectors.

Residential property prices on the upcoming southern peripheral road connecting to National Highway 8 have seen considerable appreciation over the past few months. This location holds great investment potential thanks to enhanced connectivity that NH8 provides to Manesar and Dwarka.

In particular, residential properties along the Dwarka Expressway have attracted interest from the mid-income buyer group. As prices soar in upcoming locations of Gurgaon such as Golf Course Extension, Sectors 70 and Sector 78, buyers have been looking at these alternate locations.

Union Budget 2012-13: It will cost more to Buy or Build a House.

As per the budget proposal, the threshold will be over Rs 50 lakh an urban areas and Rs 20 lakh elsewhere. Also the TDS at the rate of 1 per cent on transfer of immovable property (other than agricultural land) above a specified threshold will also add to the cost of buying a house.

Cement and steel manufacturers have already hinted at a price hike after the Budget proposed raising the excise duty to 12 per cent.

Realty players said that purchase or construction of a house would now cost more due to expected rise in prices of key raw materials cement and steel and a hike in service tax by 2 per cent.Barring low-cost housing, property prices are expected to rise in the coming days after the proposed hike in service tax from 10 per cent to 12 per cent.

Jones Lang LaSalle India Chairman and Country Head Anuj Puri said that “the increase in the service tax rate from 10 per cent to 12 per cent will increase the cost of production for developers, who are already reeling under high input costs. It follows that this increased burden will be passed on to end users”.

Commenting on the budget proposals, Confederation of Real Estate Developers’ Association of India (CREDAI) Chairman Pradeep Jain said, “Application of TDS on the purchase and sale of property and increasing Service Tax by 2 per cent will further add on to the overall cost of property and are bound to make property more costly in coming days.”

DTZ, a Realty consultant said that increase in the service tax is going to further increase marginally the overall burden on the home buyers of mid and high segment (dwellings costing more than 25 lakh). The impact of service tax would be about Rs 40,000 on a Rs 75 lakh home.

However, DTZ said that affordable housing, being part of negative list, is exempted from service tax and the move would give a boost to the affordable housing segment.

Union Budget 2012-13: Ground Realty ignored by Pranab Mukherjee.

The top players in the realty sector said they had been ignored by the finance minister.

Gaurav Gupta, director, Omkar Realtors & Developers commented that the realty sector had got nothing to boost market and customer sentiments. “There are no indications of this sector being granted the status of an industry, which it much deserves. On the contrary, the increase in service tax will push up realty prices as the additional cost will be passed on to the buyers.”

There were some who welcomed the proposals. Sachin Sandhir, MD, RICS South Asia felt it “exceeded expectations” given the pressures on the fiscal situation.

Tata Housing MD and CEO Brotin Banerjee added, “Initiatives to make affordable housing available to a larger section of the society have only been met partially.”

Chief of the Confederation of Real Estate Developers’ Association of India (CREDAI), Lalit Kumar Jain, said the announcement on external commercial borrowings (ECB) for affordable housing was a minor respite but still meaningless. Jain, who is also chairman and managing director of Kumar Urban Development Ltd, added, “We contribute 6.5% to the GDP and expected a big boost from the budget for affordable housing through special schemes, an interest subvention of 5-7 % for LIG (low income group) and EWS (economically weaker section) housing and promotion of rental housing through tax exemption.”�
Jain also pointed out that the interest subsidy on home loans was too low. The Budget has extended the scheme of interest subvention of 1% on housing loan up to Rs 15 lakh where the cost of the house does not exceed Rs 25 lakh for another year.

Pros and Cons of the Union Budget 2012-13.

Beginning with the Budget 2012, it is difficult to see the raising of the personal income tax exemption limit from Rs 1.8 lakh to Rs. 2 lakh as anything more than tokenism. It is certainly not relevant for the aspiring Indian middle-class home buyer. The expected exemption limit of Rs. 3 lakh would have had some significance. Although, the 1% tax rebate for home loans of up to Rs.15 lakh on homes costing up to Rs. 25 lakh will prove beneficial for developers in this segment.

Aunj Puri, Chairman & Country Head, Jones Lang LaSalle India has no significant reaction to Union Budget 2012-13 as he says that the Indian real estate sector does not have much to cheer about.


Exempting proceeds from the sale of a residential property from Capital Gains tax if they are invested in equity or equipment of an SME definitely provides home owners with more reinvestment options. Previously, the only route for exemption was purchase of another property or tax saving bonds and at the same time, this move could also result in a lowering of sales volumes on the secondary sale market.

Also the postponement of a firm decision on FDI in multi-brand retail gave disappointment. We seem to have missed yet another opportunity to boost the Indian economy by ways of significant foreign capital inflows.  On the other hand, the increased spend on warehousing will certainly help the retail real estate sector, since more storage capabilities will help retailers to expand into more cities and towns.

Even the increased service tax rate from 10% to 12% will increase the cost of production for developers, who are already reeling under high input costs which means that this increased burden will be passed on to end users.

Real Estate Industry demands, Home Loan Rate should Be Restructured.

As the speculations about the Union Budget 2012-13 already doing the rounds, city’s real estate industry also has expressed its expectations. Mainly revolving around increased subsidy on interest rate for loans towards affordable housing and industry status for taxation and construction and relaxation of FDI up to 51 per cent into multi-branding, the industry is hopeful of a favourable budget.

Sushil Mantri, president of CREDAI, Bangalore, says that “The Indian real estate industry was riding through highs and lows in 2011. Last year, one per cent interest rate subsidy was offered for loans towards affordable housing. If the subsidy can be broadened, home buyers especially in mid and lower income groups will benefit.”

“Indian real estate, especially housing needs the government’s support for further growth. The government should consider restructuring interest rates on home loans to attract larger base of lower and middle income group to benefit. For loan amounts lesser than Rs 25 lakh, the interest rate should be lower and should scale up as the loan amount goes higher,” said Sankey Prasad, chairman and MD of Synergy Property Developments Services.


“The real estate industry will be looking forward to RBI’s intervention to control inflation which has adversely affected the industry. If FDI is relaxed up to 51 per cent in multi-branding, this will boost the growth path for the Indian retail industry,” Sushil Mantri added.

Further the Experts demanded that the glaring concerns of the real estate industry be addressed.

Whereas the CEO of Vakil Housing Development Corporation Limited, H R Girish  said that “Low demand and liquidity remain the nemesis of the real estate industry. It is battered by repeated rate hikes which has resulted in fall in sales, higher cost of funds and slowing of economy. These are the key concerns that need to be looked into.”

Abu Dhabi to invest in Indian Property.

This week Abu Dhabi Investment Authority (ADIA) made an announcement that it is about to make direct investments in the Indian real estate sector.

ADIA has invested money in India’s international property market through a variety of real estate and private equity funds, and its total holdings in India are estimated to be worth between $400 million and $500 million.

To look for direct real estate opportunities in India, the sovereign fund is looking to hire a fund manager from a private equity firm.

The news comes as many developers in India are seeking funds to begin new projects and to reduce their debts, which currently stand at 1.8 trillion rupees approx.

Although, being Asia’s third largest economy, residential property developers in India is facing a major funding gap as home prices stay low and the country’s banks go on playing it safe when it comes to lending to the real estate sector.

An India-centric private equity fund, Red Fort Capital has recently accepted a $50 million investment from ADIA and has already raised $80 million of its planned $500 million for its second India dedicated property fund. Property accounts for 5% to 10% of ADIA’S global portfolio, whilst North America and Europe account for 60% to 85% and the emerging markets 15%.

Realty Funds faces Cold Shoulder by High Networth Individuals (HNIs).

Not-so-attractive returns on offer and an opportunity, dismal performance of most players to tap the market directly are keeping HNIs away from the real estate funds, which are trawling the money market for investors.

Now, Real estate funds are finding it difficult to raise fresh funds as their mainstay investors, the high net worth individuals (HNIs), are turning their back on them.

Realty has historically been a favourite of HNIs, who have invested even in tough times.

Senior vice-president and head (private banking, India), Sutapa Banerjee, ABN Amro Bank commented that, “The interest in real estate has not dried up. Property continues to be a significant part of an HNI’s portfolio.” In addition, there seems to be some discomfort with funds investing in realty.

During the first major fundraising in 2006-07, funds were highly optimistic on the sector. But after the crash in 2008-09, exit with decent returns became a major issue for them.

HNI advisor, Jayant Pai said, “Investors generally have a recent bias and the recent happening isn’t very good. The existing funds have promised good returns, but they are still on paper; these exits have not come through. A good amount of funds have extended their exit time period, this affects the internal rate of return.”

Pai also said that banks, are turning bullish on mutual funds now which earlier helped market such sector-focused PE funds.

BIG CBS Networks add Two New Shows ‘Made to Order’ and ‘Big Style Icon’.

BIG CBS PRIME of BIG CBS Networks has got two new shows added to their list of shows. The two new shows called Made to Order and BIG Style Icon are made keeping in mind the interests of the people who live in style, the shows mainly focusing on the hottest properties in the Indian Real Estate market and an exclusive peek into the world of the elite, respectively.

Both properties will offer an excellent and appropriate platform for marketers from the real estate, high end fashion brands and premium products.

Also, BIG CBS Networks will be launching a multi-faceted promotional campaign for these shows. The properties will be extensively promoted and marketed across multi-media platforms of television, radio, OOH, print and social media platforms ensuring excellent reach for marketers associating with the properties.

Made to Order is more like a journey into the best real-estate properties. Everyone dreams of owning a house so luxurious, so splendid that stands out amongst the others, but for most, these remain a dream. But this show will help the upper crest of society to fulfil their dream.

BIG Style Icons as the name suggests will feature the people who are well known for their style quotient with hand-picked style icons which will see the likes of Vijay Mallya, Shah Rukh Khan, MS Dhoni, Yash Birla and Atul Kasbekar to name a few with their favourite brands, preferred machines, style statement, workout den and much more.