Wednesday, April 25, 2012

Cut in RBI repo rate will boost NRI investment in Indian realty

We do not see any downturn in the market; in fact we are quite bullish. Primarily catering to the mid-housing segment, we feel that the scenario for Indian realty is rather positive. Following the current trends, the rising growth in the middle class segment in India brings with itself a
rising demand for homes. Currently this segment is growing at a rate of 9% every year and is expected to grow at least for the next 20 years.
This will lead to a major increase in purchasing power which will eventually lead to more demand for mid segment homes.
While this poses as an excellent opportunity for developers, it also serves as a great opportunity for investors in the real estate sector as developers will direct their efforts towards bridging the gap between demand and supply.
In fact, we feel that right now it is the best time for NRI’s to get a good return on their property in India as the recent repo rate cut of 50 basis points by RBI has made home loans cheaper and therefore it’s a good time to invest in property right now. In the NRI community, a maximum
demand is observed for residential apartments as they are looking for an investment in property as a second home rather than from an investment perspective. Most NRI’s have started purchasing apartments in India even without concrete plans of shifting back just in order to keep a base ready incase they decide to relocate a few years from now. Also, factors like commercial prominence, proximity to Delhi, increased net profitability, good connectivity are some of the reasons what makes Delhi NCR favorable for NRI investments.
In the last few years, Gurgaon has witnessed tremendous growth in terms of appreciating real estate value due to the NH8 expressway, recent metro rail link and the upcoming Dwarka expressway or National Periphery road (NPR). All of this plus the growth of commercial sectors near Gurgaon has given a boost to development of the real estate properties which in return has increased NRI investments in this sector.
Since August last year, the NRI investment in this region has cumulatively increased by 40%. The steady growth in the mid housing segment is further expected to increase NRI investments in India. Keeping these points in mind, it is positive that this scenario is definitely favorable
for investment opportunities, not only for local investors but also for NRI’s looking to invest in real estate in India.




Posted: 23 Apr 2012 05:42 AM PDT
By Accommodation Times Bureau
Mr. Ravi Saund, COO,CHD Developers

Loans & Property Curry
116-B, 1st Floor, Shahpur Jat, Khelgaon Marg | New Delhi | 110049 | India |

Work: +91-11-4175 2512 | Mob: +91- 9873 3333 48 | www.lpcurry.com |

Private Finance | Project Finance | Corporate Finance | Debt Syndication |

Get Social!!
Linkedin
LinkedIn
Twitter
Twitter
Facebookpage
Facebook Page
Facebook
Facebook
Blogger
Blogger
Pixel

Tuesday, April 17, 2012

Housing finance will be cheaper in Q1 as RBI cuts rate

Mumbai:

In the first quarter of 2012 home loans are likely to come down as Reserve Bank of India on Tuesday cuts its benchmark rates, this move is widely expected by banks. Majority of banks is expecting the RBI to cut its repo rate for the first time in three years to improve business sentiment. On the other hand money lenders is also expecting that through cut in cash reserve ratio (CRR) central will infuse liquidity to make up for the rupees it drains out while selling dollars to banks.
The current repo rate is 8.5percent is the rate that banks pay for borrowing overnight money from apex bank. However, banks have been consistently borrowing around Rs 80,000 crore to Rs 1 lakh crore, several money lender anticipates the overnight facility is becoming prime source of funds. If the repo rate is reduced by 0.25%, the banking system will save around Rs 250 crore.




Posted: 16 Apr 2012 05:40 AM PDT
By Accommodation Times Bureau

Loans & Property Curry
116-B, 1st Floor, Shahpur Jat, Khelgaon Marg | New Delhi | 110049 | India |

Work: +91-11-4175 2512 | Mob: +91- 9873 3333 48 | www.lpcurry.com |

Private Finance | Project Finance | Corporate Finance | Debt Syndication |

Get Social!!
Linkedin
LinkedIn
Twitter
Twitter
Facebookpage
Facebook Page
Facebook
Facebook
Blogger
Blogger
Pixel

Wednesday, April 11, 2012

India have just 20 Lakh homeless

The Minister for Housing and Urban Poverty Alleviation Kumari Selja has said that the Census of India, 2001 had estimated that 19,43,766 people are homeless out of 1,02,87,37,436 people in the country which is 0.2% of the total population. In a written reply in the Rajya Sabha on 21st March 2012 she said, out of 19,43,766 homeless people, 11,65,167 are rural homeless people (60% of the total homeless people in the country) and 7,78,599 are urban homeless people (40% of the total homeless people in the country).

She said, Government of India provides financial support for land and houses in the rural areas through ‘Indira Awas Yojana’ which is run by the Ministry of Rural Development. Similarly, under Basic Services to the Urban Poor (BSUP) and Integrated Housing & Slum Development Programme (IHSDP) schemes, financial support for construction of houses is provided by the Ministry of Housing & Urban Poverty Alleviation under the Jawaharlal Nehru National Urban Renewal Mission (JNNURM) scheme.




Posted: 10 Apr 2012 12:56 AM PDT
By Accommodation Times Bureau


Vijay Rana | CMD & Co-Founder | vijay@lpcurry.com|

Loans & Property Curry
116-B, 1st Floor, Shahpur Jat, Khelgaon Marg | New Delhi | 110049 | India |

Work: +91-11-4175 2512 | Mob: +91- 9873 3333 48 | www.lpcurry.com |

Private Finance | Project Finance | Corporate Finance | Debt Syndication |

Get Social!!
Linkedin
LinkedIn
Twitter
Twitter
Facebookpage
Facebook Page
Facebook
Facebook
Blogger
Blogger
Pixel

Tuesday, April 3, 2012

Right time to invest in commercial property and reap benefits five years later

“There is a tide in the affairs of men. Which, taken at the flood, leads on to fortune.’

The potential of commercial property in India’s near future is summed up aptly by these lines from Shakespeare. An investor’s view of commercial property in India should be pro-active and optimistic. We often hear people say, ‘I missed out there! That property was one-tenth in value five years ago.’ Now is the right time to invest in commercial property and reap the benefits five years later.
It is ironic that in the future the one single drag on India’s growth, its population, will become the means to economic stardom. China is regretting already the one child policy. It will soon lack a new generation of youngsters to fuel its economic growth. India’s large population is its big resource. It is a resource richer than oil. The coming generations will be the biggest buyers of Indian real estate and retail products. The present work force is already pushing the Indian economy into steady progress.
This is the time to ignore the skeptics. The evidence is already there in the growing projects in commercial property and infrastructure. India is moving ahead with a relentless though sometimes imperceptible speed akin to the revolving of the earth. You can only feel this speed once you look at the stars and the Sun. India’s economy is reaching for the sky.
The figures are there to prove it. Commercial property will be soon touching new heights at 45 million square feet. This figure is more than double that of a few years ago. The demand for retail space is one fourth of this phenomenon. Incomes are rising and spending will boost the retail business further. This is a lifestyle change. Suddenly the malls, the airports, the roads and cars are getting an international touch. The theme restaurants are blooming. Laptops, mobile phones, cosmetics are selling like hot cakes.
Further evidence, if required is available in the hospitality sector. We are getting an increasing number of business and leisure tourists than before. Conferences, seminars and meetings in the metro and technology cities are giving great business to hotels. In ten years the value of tourism in India will be more than 400 billion dollars. Last year alone the foreign direct investment (FDI) in commercial hubs, multiplexes and technology linked townships was more than a billion dollars. Big consulting firms like PricewaterhouseCoopers have given the thumbs up to India as a great investment destination for commercial and residential property.
India is the sleeping giant which is now beginning to wake up and is realizing that the future is bright. India has so many interlinked projects which are giving employment, investment opportunities and economic fillip. New Metro rail projects, Information Technology growth, modern farming, improving roads and rails together with a modern air and shipping transport system are all contributing to the prosperity of India.
Analysts forecast zooming industrial growth. The warehousing sector will also grow by leaps and bounds. A surprising winner on India’s story is that of healthcare especially medical tourism. India attracts a hundred thousand medical tourists each year. In the next five years more than a hundred modern hospitals will spring up to cater to this increasing demand. Education is another sector which is giving a boost to the economy. In a few years time the value of education related projects will touch the 70 billion dollar mark. The figures related to commercial space required by both these sectors are mind boggling.
Commercial property will continue to grow because investors and builders are now heading to Tier 2 and 3 cities. New industrial projects near these smaller cities will feed this growth. India is on a roll and the economy will snowball in size to the third largest in the world after the US and China.
On such a full sea are we now afloat And we must take the current when it serves—Shakespeare-(Julius Caesar

Posted: 02 Apr 2012 06:15 AM PDT
By Abhay Kumar, M.D. Reddvise
By Accommodation Times


Loans & Property Curry
116-B, 1st Floor, Shahpur Jat, Khelgaon Marg | New Delhi | 110049 | India |

Work: +91-11-4175 2512 | Mob: +91- 9873 3333 48 | www.lpcurry.com |

Private Finance | Project Finance | Corporate Finance | Debt Syndication |

Get Social!!
Linkedin
LinkedIn
Twitter
Twitter
Facebookpage
Facebook Page
Facebook
Facebook
Blogger
Blogger
Pixel

Monday, April 2, 2012

Interest on Home Loan likely to come down

After much awaited rally in home loan interest rate, banks and NBFC are all set to reduce the interest on home loan. Due to Financial year closing today, next week major banks are likely to announce the reduction. Teaser rates are likely to come again to lure the customers and new mix breed of fixed and floating interest rates products are likely to hit the market. Announcement for innovative products are most likely. National Housing Bank have mooted various refinance products hence NBFC are likely to go aggressive.

To start the rally, IDBI Bank has decided to reduce its floating Home Loan rates on new loans, across loan slabs up to a maximum of 75 basis points (bps). The revised rates will come into effect from April 2, 2012. While the floating interest rates in respect of loans up to Rs. 25 lakh have been reduced by 25 bps, the extent of reduction is progressively higher for larger loan amounts: by 50 bps on loans ranging from Rs. 25 lakh to less than Rs. 75 lakh and 75 bps on loans of Rs. 75 lakh and above. The Bank had revised its home loan interest rates in August 2011, following a rise in Bank Base Rate (BBR). Subsequently, the Bank had effected certain changes in these card rates for a limited period coinciding with the festive season.




Posted: 30 Mar 2012 10:12 PM PDT

Accommodation Times




Loans & Property Curry
116-B, 1st Floor, Shahpur Jat, Khelgaon Marg | New Delhi | 110049 | India |

Work: +91-11-4175 2512 | Mob: +91- 9873 3333 48 | www.lpcurry.com |

Private Finance | Project Finance | Corporate Finance | Debt Syndication |

Get Social!!
Linkedin
LinkedIn
Twitter
Twitter
Facebookpage
Facebook Page
Facebook
Facebook
Blogger
Blogger
Pixel