Saturday, September 22, 2012

Realty turns more expensive

It’s becoming very difficult for the ‘Aam Aadmi’ to cop up with high price rise in Realty. Because of

increase in the rate of lands and increasing costs of land in the major cities of Madhya Pradesh, it’s
an issue of tension for the developers. Currently, cost of constructing per sq. ft. is Rs. 1000 which was
Rs. 850 per sq. ft. earlier. Within a year’s duration, the rates of raw material have increased by 20-25
percent. Henceforth, the demand has decreased in the market.
In both the cities Bhopal and Indore, there has been an unexpected increase in the rates of property
by 50 percent within a year. Experts say that expensive loans are also one more hindrance for the
developers. “Increasing rates of land and raw material is pressurizing on an increment of the cost. Along
with it, liquidity in the market has lessened. Also, the real estate developers have started withdrawing
the projects.” Last year, if a flat’s rate was 16 lacs have increased to 19-20 lacs in the Capital city of
India.
There has been an increment by 20-25 percent in terms of raw material used for construction when
compared to last year. Also, the concrete rate per sq. ft has increased to Rs. 19 from Rs. 16. Similarly,
the rate of a bag of cement has reached around Rs. 290 from Rs. 230.




Posted: 20 Sep 2012 05:35 AM PDT
By Accommodation Times Bureau



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Tuesday, September 11, 2012

Approval of new norm gets high revenue to GDA

The Ghaziabad Development Authority (GDA) will get a revenue of Rs.1,500 crore once the state government approves its new building laws. These laws allow construction beyond the FAR (floor area ratio) limit of some charge.
The amount will be collected by imposing fine on those who have already violated the construction norms. In a recent held meeting the authority proposed certain amendments, these amendments would definetely benefit group and plotted development. It will also provide flexibility in synthezize schedule for constructions completion.



Posted: 08 Sep 2012 06:23 AM PDT
By Accommodation Time


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FAR increase: property price decrease

The growing population is one of the reason of the increase in the property price as it leaves no space. Looking at the current scenario the Urban Development Department(UDD) has decided to increase the Floor Area Ratio(FAR). The ministry in master plan of 2021 has proposed this schemes. Cities like abroad have FAR of 15 wheares here in Delhi and Mumbai it somewhere 1.2.






Posted: 08 Sep 2012 06:27 AM PDT

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No room for price cut:Builders

Real estate developers are in no mood to follow finance minister call. Recently P.Chidambaram made point through bankers to developers to sell the unsold inventory at a lower price.

Arguing the point, builders do onot want to reduce the prices as they do not have margins, given the increasing input costs, high interest rates and taxes. Low margins is not leaving them with space. Giving the ample of reasons developers say that today input cost inflation, the margins is only about 10-15% down. There are lot of other factors like the price of cement has gone high, labour wages has also increased, steel prices have gone high contributing in for high price, interest rates are gone high.
Contrary to this analyst points out, that if developers want they could reduce prices atleast by 10%. According to report Mumbai alone has unsold 80,000 homes worth Rs. 70,000 crores. This shows that buyers are waiting for developers to reduce property prices which has risen 30% over last year.
Looking at all above aspects it can only stated that real estate market is very volatile.



Posted: 06 Sep 2012 11:21 PM PDT


Gakkuiwkmhi

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Friday, September 7, 2012

15 K Crore FDI Inflow in Real Estate last financial year

FDI inflow

Government is constantly making efforts to attract foreign investment and has taken various initiatives with respect to labour intensive sectors.

According to the UNCTAD’s World Investment Report, 2012, FDI inflows, amounting to US $ 684399 million, were received in developing economies of the world during 2011, of which India received 4.6%. Foreign Direct Investment (FDI) inflows, in respect of some of the developing economies, including India, during 2011, were as under:

DEVELOPING ECONOMIES 2011 US$ (million) Rank among Developing Countries
China 123985 1
Hong Kong, China 83156 2
Brazil 66660 3
Singapore 64003 4
British Virgin Islands 53717 5
India 31554 6
Mexico 19554 7
Indonesia 18906 8
Chile 17299 9

The FDI equity inflows, during the last three financial years, as per the data maintained by Department of Industrial Policy & Promotion, are as under:

SlNo Year (Apr-Mar) FDI (Rscrore) FDI (US$ million)
1 2009-10 123,119.65 25,834.41
2 2010-11 88,519.53 19,426.93
3 2011-12 173,946.39 36,504.28

A statement of FDI equity inflows, country wise and sector-wise, during the last three years, is at Annexure.

Foreign Direct Investment (FDI) policy is reviewed on an ongoing basis, with a view to making it more investor friendly. Government has put in place an investor-friendly policy on FDI, under which FDI, up to 100%, is permitted, under the automatic route, in most sectors/activities. Significant changes have been made in the FDI policy regime in the recent times, to ensure that India remains increasingly attractive and investor-friendly.

Government plays an active role in investment promotion, through dissemination of information on the investment climate and opportunities in India and by advising prospective investors about investment policies and procedures and opportunities. International Cooperation for industrial partnerships is solicited both through bilateral and multilateral arrangements. It also coordinates with apex industry associations, such as FICCI, CII and ASSOCHAM, in their activities relating to promotion of industrial cooperation, both through bilateral and multilateral initiatives intended to stimulate inflow of foreign direct investment into India.

The Government has also set up ‘Invest India’, a joint venture company between the Department of Industrial Policy & Promotion and FICCI, as a not-for-profit, single window facilitator, for prospective overseas investors and to act as a structured mechanism to attract investment.

No targets were fixed for FDI inflows.

ANNEXURE

STATEMENT REFERRED TO IN REPLY TO  PART (e) OF THE LOK SABHA UNSTARRED  QUESTION NO. 3672 FOR ANSWER ON 03.09.2012  REGARDING FDI INFLOW.

SECTOR-WISE FDI EQUITY INFLOWS
FROM APRIL 2009 TO MARCH 2012

(Amount in Rs crore & US$ million)

SlNo Country 2009-10
Apr-Mar
2010-11
Apr-Mar
2011-12
Apr-Mar


Rs US$ Rs US$ Rs US$
1 METALLURGICAL INDUSTRIES 1,999.30 419.88 5,023.34 1,098.14 8,348.49 1,786.14
2 MINING 829.92 174.40 357.42 79.51 644.73 142.65
3 POWER 6,138.32 1,271.79 5,796.22 1,271.77 7,677.74 1,652.38
4 NON-CONVENTIONAL ENERGY 2,872.41 622.52 977.71 214.40 2,197.50 452.17
5 PETROLEUM & NATURAL GAS 1,296.90 265.53 2,543.14 556.43 9,955.17 1,991.35
6 BOILERS AND STEAM GENERATING PLANTS 18.48 3.96 2.87 0.63 156.64 31.79
7 PRIME MOVER (OTHER THAN ELECTRICAL GENERATORS) 182.99 39.50 758.13 166.44 1,548.86 313.75
8 ELECTRICAL EQUIPMENTS 3,484.32 728.27 698.85 153.90 2,659.60 566.39
9 COMPUTER SOFTWARE & HARDWARE 4,126.76 871.86 3,551.24 779.81 3,803.77 796.35
10 ELECTRONICS 246.73 52.14 274.75 59.72 887.92 194.41
11 TELECOMMUNICATIONS 12,269.66 2,539.26 7,542.04 1,664.50 9,011.53 1,997.24
12 INFORMATION & BROADCASTING (INCLUDING PRINT MEDIA) 2,340.55 490.83 1,887.17 412.11 3,264.09 675.96
13 AUTOMOBILE INDUSTRY 5,892.61 1,236.27 5,864.18 1,299.41 4,346.77 922.99
14 AIR TRANSPORT (INCLUDING AIR FREIGHT) 111.47 23.73 620.83 136.60 145.71 31.22
15 SEA TRANSPORT 1,343.58 284.85 1,370.27 300.51 594.71 129.36
16 PORTS 304.61 65.41 49.84 10.92 0.02 0.00
17 RAILWAY RELATED COMPONENTS 160.27 34.43 318.50 70.66 199.01 42.27
18 INDUSTRIAL MACHINERY 1,594.83 341.88 2,109.07 467.92 2,934.87 620.66
19 MACHINE TOOLS 640.06 133.83 53.01 11.63 616.25 127.87
20 AGRICULTURAL MACHINERY 8.70 1.88 2.21 0.49 12.72 2.77
21 EARTH-MOVING MACHINERY 75.69 15.62 8.12 1.77 75.09 16.40
22 MISCELLANEOUS MECHANICAL & ENGINEERING INDUSTRIES 725.18 149.59 493.96 108.67 5,861.61 1,295.34
23 COMMERCIAL, OFFICE & HOUSEHOLD EQUIPMENTS 371.28 78.98 115.14 25.12 138.15 29.04
24 MEDICAL AND SURGICAL APPLIANCES 789.51 167.35 146.66 32.22 698.41 141.61
25 INDUSTRIAL INSTRUMENTS 36.85 7.61 115.55 25.48 17.79 3.99
26 SCIENTIFIC INSTRUMENTS 0.01 0.00 11.16 2.49 34.47 7.08
27 MATHEMATICAL,SURVEYING AND DRAWING INSTRUMENTS 0.01 0.00 0.00 0.00 0.00 0.00
28 FERTILIZERS 38.46 8.20 83.77 18.18 160.71 32.60
29 CHEMICALS (OTHER THAN FERTILIZERS) 1,726.24 365.94 1,811.53 398.28 27,222.80 5,462.82
30 PHOTOGRAPHIC RAW FILM AND PAPER 0.01 0.00 3.60 0.81 0.00 0.00
31 DYE-STUFFS 19.53 4.02 24.25 5.37 2.90 0.58
32 DRUGS & PHARMACEUTICALS 1,006.29 213.08 961.09 209.38 14,605.03 3,232.28
33 TEXTILES (INCLUDING DYED,PRINTED) 714.82 150.27 588.95 129.65 804.50 164.19
34 PAPER AND PULP (INCLUDING PAPER PRODUCTS) 76.39 16.42 30.15 6.53 2,055.28 407.35
35 SUGAR 0.48 0.10 0.79 0.17 19.95 4.44
36 FERMENTATION INDUSTRIES 536.70 112.02 262.28 57.71 335.50 69.70
37 FOOD PROCESSING INDUSTRIES 1,314.23 278.89 858.03 188.67 826.16 170.21
38 VEGETABLE OILS AND VANASPATI 338.09 69.74 267.35 58.07 318.26 65.02
39 SOAPS, COSMETICS & TOILET PREPARATIONS 117.27 24.58 463.98 102.90 1,113.76 222.08
40 RUBBER GOODS 114.62 24.12 78.71 17.21 899.76 187.37
41 LEATHER,LEATHER GOODS AND PICKERS 23.71 5.06 42.10 9.26 38.90 8.30
42 GLUE AND GELATIN 1.26 0.27 0.04 0.01 30.68 5.84
43 GLASS 13.28 2.83 35.48 7.60 155.65 32.22
44 CERAMICS 33.60 7.21 54.06 12.00 45.22 9.87
45 CEMENT AND GYPSUM PRODUCTS 159.07 33.80 2,911.03 637.68 1,294.90 267.90
46 TIMBER PRODUCTS 30.62 6.54 7.19 1.58 145.26 29.60
47 DEFENCE INDUSTRIES 0.00 0.00 0.00 0.00 17.44 3.66
48 CONSULTANCY SERVICES 1,623.57 341.31 1,257.69 274.84 1,348.14 289.89
49 SERVICES SECTOR* * 19,944.85 4,176.21 15,053.94 3,296.09 24,656.49 5,215.98
50 HOSPITAL & DIAGNOSTIC CENTRES 639.26 135.57 1,177.33 256.00 1,524.77 310.43
51 EDUCATION 300.50 63.35 173.24 37.94 510.95 105.62
52 HOTEL & TOURISM 3,566.32 753.02 1,405.15 308.05 4,753.89 992.86
53 TRADING 3,509.69 739.62 2,252.72 498.46 3,669.92 759.89
54 RETAIL TRADING (SINGLE BRAND) 47.52 10.28 116.53 25.84 11.49 2.57
55 AGRICULTURE SERVICES 5,922.29 1,222.22 202.60 43.90 226.41 49.02
56 DIAMOND,GOLD ORNAMENTS 145.59 31.08 89.36 19.59 172.61 36.30
57 TEA AND COFFEE (PROCESSING & WAREHOUSING COFFEE & RUBBER) 37.60 8.15 14.40 3.12 24.81 5.32
58 PRINTING OF BOOKS (INCLUDING LITHO PRINTING INDUSTRY) 337.65 70.51 168.42 36.63 225.03 47.39
59 COIR 1.19 0.25 0.46 0.10 2.89 0.55
60 CONSTRUCTION (INFRASTRUCTURE) ACTIVITIES 1,535.03 324.56 3,027.21 675.07 1,878.62 386.28
61 CONSTRUCTION DEVELOPMENT: Townships, housing, built-up infrastructure and construction-development projects 25,975.80 5,466.13 7,551.85 1,654.55 15,236.03 3,140.78
62 MISCELLANEOUS INDUSTRIES 5,407.13 1,147.66 6,852.85 1,484.45 3,780.06 814.17
Grand Total 123,119.65 25,834.41 88,519.53 19,426.93 173,946.39 36,504.28

** SERVICES SECTOR includes Financial, Banking, Insurance, Non-Financial / Business, Outsourcing, R&D, Courier, Tech. Testing and Analysis.
COUNTRY-WISE FDI EQUITY INFLOWS
FROM APRIL 2009 TO MARCH 2012

(Amount in Rs crore & US $ million)

SlNo Country 2009-10
Apr-Mar
2010-11
Apr-Mar
2011-12
Apr-Mar


Rs US$ Rs US$ Rs US$
1 Afghanistan 0.00 0.00 0.00 0.00 0.12 0.03
2 Australia 774.92 166.29 110.22 24.26 243.60 51.15
3 Austria 114.09 24.01 205.72 44.95 101.92 21.38
4 Bahamas 29.14 6.16 19.79 4.32 15.02 3.34
5 Baharain 8.09 1.72 0.85 0.19 0.94 0.19
6 Argentina 0.02 0.00 46.21 10.15 0.00 0.00
7 Belgium 177.89 37.56 168.40 37.28 494.99 104.19
8 Belarus 0.00 0.00 0.00 0.00 2.50 0.51
9 The Bermudas 53.31 11.07 8.87 1.97 1.19 0.26
10 Brazil 5.16 1.11 7.85 1.75 51.00 11.01
11 Bulgaria 0.00 0.00 0.67 0.14 0.38 0.08
12 Canada 293.27 61.64 154.66 33.66 200.21 39.78
13 CaymenIslands 321.63 69.05 258.80 55.94 353.67 74.64
14 Channel Islands 6.75 1.40 1.26 0.27 6.92 1.53
15 China 199.99 41.36 7.03 1.56 358.38 72.69
16 Croatia 0.45 0.09 0.00 0.00 0.00 0.00
17 Czech Republic 1.93 0.40 0.03 0.01 0.50 0.11
18 Cyprus 7,727.58 1,626.57 4,170.67 913.10 7,722.38 1,587.37
19 Denmark 180.22 38.20 289.72 64.08 141.14 29.44
20 Finland 241.19 50.28 101.59 22.39 412.52 86.20
21 Chile 337.22 71.25 129.99 28.64 165.82 36.28
22 France 1,436.83 302.53 3,348.63 734.22 3,110.22 662.62
23 Greece 4.29 0.91 1.18 0.26 1.25 0.27
24 Germany 2,980.04 626.14 907.88 199.74 7,451.69 1,621.95
25 HongKong 654.24 136.46 787.82 173.10 1,294.45 268.11
26 Hungary 40.75 8.75 4.07 0.92 1.86 0.38
27 Indonesia 2,637.05 570.25 4.67 1.03 2.38 0.50
28 Ireland 127.10 27.22 148.42 32.99 33.54 7.41
29 Isle of Man 0.00 0.00 11.40 2.51 0.91 0.20
30 Israel 130.83 28.45 6.46 1.41 4.72 1.01
31 Italy 1,064.17 225.33 510.95 112.75 734.84 155.52
32 Liechtenstein 3.51 0.76 3.50 0.78 0.25 0.05
33 Japan 5,670.40 1,183.40 7,062.98 1,562.00 14,089.09 2,971.70
34 Kazakhstan 0.00 0.00 0.00 0.00 0.00 0.00
35 Korea(North) 18.62 3.79 5.48 1.18 50.32 10.63
36 Lebanon 0.01 0.00 0.00 0.00 0.69 0.14
37 South Korea 778.68 166.88 600.89 131.35 1,183.84 244.79
38 Kuwait 40.73 8.46 5.91 1.30 5.29 1.04
39 Latvia 0.02 0.00 0.00 0.00 0.00 0.00
40 Luxembourg 198.28 42.17 806.22 179.02 429.11 89.30
41 Malaysia 183.85 38.21 183.26 40.39 85.37 18.20
42 Mauritius 49,633.37 10,375.56 31,854.78 6,987.15 46,710.28 9,941.89
43 Mexico 0.11 0.02 48.74 10.58 0.00 0.00
44 Maldives 1.85 0.40 9.18 2.02 0.00 0.00
45 Nepal 8.24 1.73 0.00 0.00 0.04 0.01
46 Netherlands 4,282.67 899.03 5,501.23 1,213.40 6,697.78 1,408.89
47 Saint Kitts & Nevis 0.00 0.00 2.11 0.45 0.00 0.00
48 NewZealand 61.06 13.18 6.85 1.53 4.59 0.94
49 Nigeria 4.95 1.02 0.51 0.11 15.74 3.37
50 Norway 66.47 14.20 63.55 13.93 158.67 33.39
51 Oman 11.73 2.45 1,246.49 267.82 43.55 9.27
52 Panama 53.37 11.12 41.71 9.12 11.50 2.39
53 Philippines 0.92 0.20 2.27 0.50 12.25 2.42
54 Poland 188.91 40.05 1.29 0.28 47.35 9.61
55 Portugal 9.95 2.12 6.04 1.33 11.04 2.37
56 Qatar 0.71 0.16 5.40 1.17 0.93 0.19
57 Romania 0.00 0.00 1.00 0.21 21.34 4.23
58 Russia 35.49 7.61 436.60 93.39 5.10 1.04
59 Saudi Arabia 64.06 13.29 17.70 3.84 3.51 0.70
60 Singapore 11,294.82 2,379.18 7,729.66 1,705.11 24,711.53 5,257.32
61 Scotland 0.00 0.00 0.01 0.00 0.76 0.15
62 South Africa 158.79 33.27 0.94 0.21 8.79 1.76
63 Slovakia 0.14 0.03 3.50 0.79 0.00 0.00
64 Spain 586.19 124.20 1,056.40 230.14 1,497.69 312.05
65 Sri Lanka 3.81 0.80 15.78 3.48 27.49 6.04
66 Sweden 1,171.18 242.51 176.70 39.05 290.46 60.24
67 Switzerland 489.26 102.49 4,103.95 895.08 1,105.49 230.73
68 Taiwan 78.32 16.16 30.07 6.55 63.05 13.85
69 Thailand 163.90 35.10 22.18 4.94 69.12 14.13
70 Turkey 31.51 6.78 158.38 34.90 46.81 10.00
71 UAE 3,016.82 628.93 1,569.18 340.54 1,728.24 352.82
72 United Kingdom 3,094.15 657.37 3,434.20 754.94 45,228.56 9,257.05
73 U.S.A 9,230.43 1,943.46 5,352.67 1,170.27 5,346.97 1,115.27
74 Ukraine 0.01 0.00 1.60 0.36 0.12 0.02
75 Venezuela 0.00 0.00 0.00 0.00 0.00 0.00

Monday, September 3, 2012

Realty prices set to fall as Govt. willing to reduce cost of funding

· CREDAI initiative with Finance Ministry evokes positive response

· Banking Sec. Ministry of Finance asks realtors to work on price cut, sets the ball rolling

Mumbai, August 30, 2012: The Secretary, Banking, Ministry of Finance has agreed to look into the problems being faced by the real estate industry and work towards reducing the cost of funding through banks and financial institutions, claims CREDAI Press Release today.

The release says : this follows the meeting that developers apex body CREDAI Chairman Mr. Pradeep Jain had with Mr. D.K. Mittal, Secretary – Ministry of Finance (Banking & Insurance), Government of India, in New Delhi, yesterday.

Expressing happiness at the positive response from the Banking Secretary Ministry of Finance, Mr. Pradeep Jain said: “We had a very cordial and fruitful discussion as we raised the various issues being faced by developers across the country in terms of high cost funding and escalating cost of material which adversely affect the cost of housing.”

“Mr. Mittal promised that the Government will look into the problems of the Real Estate Developers and work towards reducing the cost of financing through the Banks and Financial Institutions,” he said.

With these positive developments, CREDAI is hopeful that a lasting solution to the vexed issue high cost of realty will be worked out and the common man will be able to own his dream house.

The Banking Secretary assured to have a detailed discussion on these matters in next couple of weeks to work out on detailed roadmap on how the Real Estate Industry can be benefited to provide the affordable housing on an affordable price to Aam Aadmi.

Calling for launching a mission to make India Housing Surplus from the current status of a housing deficit nation by 2020, CREDAI said revival of the real estate industry will rejuvenate the entire economy since realty supports 250 industries, generates employment and contributes 11% to GDP.

CREDAI also has written an open letter to the Prime Minister and set a 10-point agenda of action for taking the nation on an accelerated growth path while solving the housing problem faced by millions of people across the country and suggesting comprehensive reforms in the real estate industry covering land, administration, banking and tax.

CREDAI for long has been campaigning for a single window system of clearances to down the time lost in granting approvals and thus help speed of execution which could ultimately lead to saving money and time.

“We the developer community is always ready to work with the government as a partner in progress and play a meaningful role,” Mr Jain added.





Posted:
31 Aug 2012 02:11 AM PDT
By Accommodation Time


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