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A Real Estate firm Embassy Developers is expected to generate over 513 million US Dollars assaid by their Prospectus which was filed today. This will be done through an initial publicoffering of shares.

The draft is available on the Edelweiss website. The lead running managers for the issue are

Nomura, UBS, Local Investment Bank and Citi.

The prospectus included that Embassy property is looking at pre-IPO placement of around 57million shares for up to 11.75 billion rupees with certain investors. The retail investors may beoffered a 5% discount on the issue price.

Though the time line is not yet been set.

The Indian companies have raised a lot of money through share sales by mid-June of FY10 from56 issues which is higher than last year, as shown by the data collected by Thomson Reuters.

India has also asked bids to appoint 4 banks for managing a follow-on public offering in state-run Power grid Corp of India.

By Pakhi Kshitij | Posted in Property News | Tagged Banks , developers , Edelweiss , India , InitialPublic Offering , Investment Bank , IPO, Money , Nomura , Power Grid , Prospectus , Real EstateFirm, Retail Investors , Reuters , Rupees , Share Sales , Shares , Thomson , Time Line , Ubs |Comments (0)

Second Annual Convention Of NAR

July 11, 2010 ± 10:49 pm

Photo by respres The Real Estate Agents Association of Chennai is all set to host the annualconvention of the Indian National Association of Realtors. This will be the second year of themeet.

It will be a two day event that will take place on July 16 and 17 at the seaside Radisson Resorttemple bay at Mamallapuram. The town is situated 45 km from Chennai.

The participation of around 400 delegates from around the globe is anticipated.

They will discuss on matters related to the developments in real estate as well as theopportunities and the challenges. Some other topics of discussion will be legal aspects of transactions and case studies, retail, industrial and warehouse marketing.



Photo by bartmaguire In a recent development the local partner of Mondon Investment Ltd. went

bankrupt. Following the event Indian banks initiated a foreclosure proceeding against FishmanHolding¶s Indian development arm project.

They were to construct a mall in Ludhiana , Punjab.

The project company ended up in violation of their financial covenants to banks after Mondon¶s partner violated their covenants financially.

The loan was not repaid by the end of May through the joint venture as a result of which bank had to open up legal procedures.

Mondon plans to take legal action against its partner on the account of breach of contract for damage to the firm because of the joint venture.

They had bought 121-hectare site for the mall for NIS 26 million two years back.

By Pakhi Kshitij | Posted in Property News | Tagged Arm Project , Breach of Contract ,Development Arm , Financial Covenants , Fishman , Foreclosure , Hectare , Indian Banks , IndianPartner , Investment , Joint Venture , Ludhiana , Mondon , Proceeding , Punjab | Comments (0)

RBI Tighten Ropes On Real Estate

July 6, 2010 ± 9:10 am

sIn a recent development the Reserve Bank of India along with the Department of IndustrialPolicy and Promotion are working to streamline and regulate the access and use of Real EstateFirms regarding the External Commercial Borrowings (ECBs). This will be done through amonitoring mechanism which will ensure stricter norms from now on.



Real estate whether Residential, Commercial, Retail is being developed on full scale in manydifferent cities of the country.

The large number of people getting education in India will demand over 100 million sq feet of office and industrial spaces.

More so, India has been a host to Fortune 500 companies which in turn attract more companiesto make this country their operational base which will also require more office space in future.

Thus it is evident that the Real estate Industry in India will see a lot of work in the years to come.

By Pakhi Kshitij | Posted in Property Articles | Tagged Agriculture Industry , Business/Finance ,Economic Development , Economy Of India , Education in India , Fortune 500 Companies , India ,Industrial Spaces , Operational Base , Preferred Location , Real Estate , Real Estate Investment |Comments (0)

RICS Plans To Reform Indian Realty Sector July 2, 2010 ± 1:09 pm

anIndian Real Estate Developers have fastened their seatbelts to come at par with their counterparts in other parts of the world. This has been started

by the formation of new boards and committees which will include leaders from the Real Estateand Infrastructure sector of the country.

The move was initiated by RICS (Royal Institution of Chartered Surveyors) India.

The persons in the committee will mainly focus on developing standards and practices in theIndian Realty Market to increase the level of professionalism and transparency among

professionals as well as bring reforms in policies for the benefit of people at large and overcome barriers obstructing the growth of industry.

The various challenges that have to be met are the currently fragmented and old legal systemincluding the current laws on land acquisition, problems associated with Rent control laws,



By Pakhi Kshitij | Posted in Property News | Tagged Asian Economies , Asians , BedroomApartments , Central London , Current Fiscal Year , Exhibitions , Global Property , InternationalInvestment , Investment Demand , Investment Team , Knight Frank , Locals , Market Quality ,Property Consultancy , Quality Properties , Residential Investment , Residential Properties ,Sebastian , Singapore | Comments (0)

Real Estate Invesment Trusts In Asia To Rise

July 2, 2010 ± 1:00 pm

The number of Real Estate Investment Trusts (REITs) in the Asian Continent is going to swellover the coming 3 to 4 yrs according to HSBC. It will be because of increasing call for investments in more risk disinclined properties.

REITs invest in commercial properties mainly and pay rent collected from their properties toshareholders as dividend. This is why some investors see them as safer investments than propertystocks.Another advantage is that they usually offer returns that are higher than yields of government bonds.

The increased activity in the REIT IPO market this year especially in the Asian continent is dueto successful listing of Cache Logistics Trust in Singapore. Also Sunway City plans to list itsREIT in Malaysia come July.

Kern anticipates Singapore to witness most of the activity with more than 20 to be listed there inthe coming years from companies all across it¶s continent. It already has more than 20 listedREITs such as Fortune, Saizen from Hong Kong and Ascends from India.

This Trend is only to bring fortune to our Country as well.

By Pakhi Kshitij | Posted in Property News | Tagged Asia Pacific , Asian Continent , Dividend ,Global Real Estate , Government Bonds , Growth Patterns , HSBC , India Australia , Investments ,Ipo Market , Logistics , Managing Director , Proliferation , Property Stocks , Real EstateInvestment , Real Estate Investment Trusts , REITs , Reuters , Saizen , Shareholders | Comments (0)

Real Estate Collaborates With Education Industry

July 2, 2010 ± 9:41 am



nRealty and Infrastructure firms like GMR and Hindustan Construction Company, HCC haveannounced to set up university campuses and other educational institutes within India. Theymainly aim to ride high on the huge returning education industry.

The education industry in India is worth more than 10 bn US dollars with continuous growthrate. Because the Real Estate market is on a low these days developers are looking at alternateassets such as education.

Partnerships of such kind are increasing day by day in every other township or SEZ aseducational institutes bring more revenue.

Chintan Patel, Associate Director, Transaction Advisory Services, E&Y said, ³Access to socialinfrastructure such as schools and colleges serve as attractive features that make it easier for adeveloper to sell projects.´

Further he had to say that partnerships between a developer and international institution benefitssociety and develops retail, office and residential spaces around.

The tie ups usually work on build-and-rent business model. While a developer acquires the landand builds the infrastructure for the educational facility, the institute runs the school or college. Iteither pays rent or works on a revenue-share model.The companies which are laying out plans in education are HCC who have bought 500 acres for institutes at Lavasa, its hill city project close to Pune, Maharashtra.It has tied up with Symbiosis,Bangalore-based Christ University, Institute of International Business Relations of Germany,Switzerland-based hospitality Management Institute Ecole Hoteliere de Lausanne and Educomp,and more.

Global infrastructure player GMR, too, has collaborated with Canada-based Schulich School of Business to build a campus in Shamsabad, Andhra Pradesh, The Company will construct the

physical infrastructure for the institute, and in return, earn management fee on the maintenanceof residences and hostel facilities.

By Pakhi Kshitij | Posted in Property News | Tagged Ecole Hoteliere de Lausanne , EducationIndustry , Education Partnerships , Educomp , Global InfraStructure , Hospitality Management ,International Business Relations , Physical InfraStructure , Residential Spaces , Schulich School of Business , Social InfraStructure , Transaction Advisory Services , University Campuses |Comments (0)



Y atra Capital To Invest More In India

June 29, 2010 ± 9:11 am

Photo by thinkpanama

Euronext-listed company, Yatra Capital managed by Saffron Capital Advisors, an Indian RealEstate Private Equity fund has announced to invest around 20 million Euros in India in FY10.

The company plans to invest the Rs 115 cr in two deals in the domestic sector of real estate. Thecompany has as of now invested about Rs 916 cr in 13 projects which include 2 entity-leveldetails.

The weighted average Yatra Equity Fund covers 27 million square feet spread over nine cities.They have sold or pre let over 3 million square feet across various projects.

The chairman and Co-Founder, Yatra Capital, Mr. Christopher Wright said, ³In India, one needsto be very careful on Real Estate investments as the market is volatile. After a drop in 2008-09,the realty sector is now moving up. The Indian economy is growing well making people moreconfident on future investments. We have invested 44% in residential projects, which would be

our focus area in future. We always look at investing in affordable residential projects in tier Iand II cities.´

Yatra has invested in 90 cr Residential Project and 97 cr Market City Retail Project at Pune, 115cr in Riverbank Holdings, 91 cr in forum IT parks and 23 cr in Taj gateway at Kolkata, 160 cr inmarket city at Bangalore and 57 cr at Nashik.

It has entered partnership with Phoenix Mills for 5 various projects across Bangalore, Pune andMumbai.

A presentation by Yatra to investors in March this year said, ³Most markets have seen positive

traction due to price cuts. However, developers have now started raising prices especially inMumbai and the National Capital Region which has led to a slowdown in sales. Projects where pricing is realistic continue to enjoy healthy absorptions. The monetary environment tighteningmay impact the fund raising environment for many real estate companies still out to raise money.Investor enthusiasm for participation in realty IPOs remains muted.´

By Pakhi Kshitij | Posted in Property News | Tagged Absorptions , Capital Advisors , DomesticSector , Euronext , Focus Area , Indian Economy , Investor Enthusiasm , Kolkata , Level Details ,



Nashik , Phoenix Mills , Private Equity Fund , Pune , Real Estate Investments , Real Estate PrivateEquity Fund , Residential project , Residential Projects , Retail Project , Riverbank , WeightedAverage | Comments (0)

IL&FS Increase Investments In Realty Sector

June 26, 2010 ± 11:05 pm

Photo by Photos8.com IL&FS private equity is planning to increase its investment ininfrastructure and Real Estate sector by the end of FY10.

They announced to increase their investment from 660 million US dollars to 1 billion US dollarsin the infrastructure sector. In the realty sector they already have investments of 1.6 billion USdollars. They are planning to take deals in both the sectors as well.

Mr Shahzad Dalal, Vice Chairman of IL&FS Investment Managers Ltd said, ³We will investclose to a billion dollars in infrastructure as well by about the end of this financial year.´

In the realty sector the firm has spent 1.2 billion US dollars from the total investment on over 30deals. It is said that they are now looking at 10 more. The left over amount is expected to bedeployed by the end of this year mainly in residential space along with commercial.The company recently bagged a deal in the real-estate segment through IL&FS Milestone Fundin HCC¶s Real-Estate project µ247 Park¶ for Rs 575 cr for a 74 per cent stake.

Mr Dalal further added, ³The outlook is fairly bullish on both Real Estate and infrastructure. We believe there are a lot of opportunities. There may not be many good projects, but because of our reach and reputation, we do see some really good projects.´

By Pakhi Kshitij | Posted in Property News | Tagged 1 Billion , Billion Dollars , Hcc,

Infrastructure Sector , Investment Managers , Investments , Milestone , Private Equity , Real Estate ,Real Estate Project , Real Estate Sector , Reputation , Residential Space , Sectors , Segment , Stake ,US Dollars , Vice Chairman | Comments (0)

Provogue India Enters Real Estate

June 26, 2010 ± 7:33 pm



One of the leading apparels brand in India Provogue India announced to enter Real Estate onFriday. Provogue India with it¶s joint venture Prozone enterprises has planned to build 300,000sq. feet of Real estate property in Aurangabad. The project is stated to go on floor in October 2010.

The Managing Director Mr. Nikhil Chaturvedi said that the mega project will be a mix of residential projects and malls.

Also they are planning to launch three residential projects in Coimbatore, Nagpur and Indore bythe end of this year.

Provogue also plans to construct 75 stores across the country in financial year 2011 with aninvestment of 35 cr.

Similarily Century textiles, Alok Industries and Bombay Dying are some other firms planning todevelop or sell Real Estate as land rates rise in the buoyant economy.

By Pakhi Kshitij | Posted in Property News | Tagged Bombay , Buoyant Economy , chaturvedi ,Cr , Indore , Joint Venture , Malls , Managing Director , Mega Project , Nagpur. , Nikhil , ProvogueIndia , Real Estate One , Real Estate Property , Residential Projects , sq feet , Textiles | Comments(0)

India¶s First BOP Studios

June 16, 2010 ± 9:49 pm



.The Southern Province of India has shown a demand in Real Estate properties over the last fewmonths which is a good news for the people in the realty.

The Realty sector in Hyderabad , Andhra Pradesh has shown sudden upsurge after the recent political turmoil it went through. The demand for both, commercial as well as residential properties have registered a rise.

The trend is more evident in Tier I and tier II areas specifically; making them a high demandmarket.

Even the prices of the realty sector have improved as the customers feel Hyderabad is the right place for investment which has contributed to increase in the sales.

Raj Kumar, Marketing Manager in a Real Estate firm puts forth, ³NRIs, Doctors and InformationTechnology (IT) people are coming forward for the investment and even some of the centralgovernment employees are also coming forward. As you know, now a days comparing with thefacilities what we are giving on what rates we are giving, people are seeing benefits and on this

basis they are coming forward for investments and showing interest.´

The sector is one of the biggest in terms of number of employees working in the country. It isanticipated that in the next decade the realty sector will grow at a rate of 30% every year. This is

bound to attract foreign investors with as many as 30 bn US dollars along with a number of IT parks as well as residential townships being constructed across our country.

Real Estate Investors have one more city to eye for.

By Pakhi Kshitij | Posted in Property Articles | Tagged Andhra Pradesh , Central Government ,Doctors , Foreign Investors , Government Employees , Information Technology , Investments ,Marketing Manager , Next Decade , outer ring road , Political Turmoil , Real Estate Firm , RealEstate Properties , Real Estate Sales , Residential Properties , Right Time , Southern India ,Southern Province , Tier Ii , Townships | Comments (0)

Bangalore- The Silicon Valley Of India

June 14, 2010 ± 10:40 pm



Bangaluru has over the years gained immense popularity as the hub for IT industries in India.With great opportunities like world class education, working environment, living standards it isnot wrong to mention it as the ³The Silicon Valley of India´.

Many non-Bangaloreans now call the city their home. It is interesting to note that over 10,000

dollar millionaires and about 60,000 super rich people are currently living in the city with hugeinvestments to make. All these have made Bangalore a hot spot for Real Estate Market, bothResidential and Commercial.

Residential market has seen some significant action with many developers like Prestige andSunil Mantri, Sobha, rolling out new projects in micro market segment. Some of the key areas inBangalore, where the residential demand has picked up, are Sarjapur Road and Whitefield,Doddakanenahalli and, Jayanagar.

The supply is growing in line with the revived commercial real estate demand. Latest report fromCushman & Wakefield implores that the total projected supply for the current year is 12.42

million square feet of office space, more than twice the supply delivered in the year 2009.

Photo by CarbonNYC Indian Market Research Bureau (IMRB) conducted a survey among 5cities, amongst individuals aged between 25-39 yrs, stated that Mumbai and Bangalore are the

most preferred places to live as the cities provide the best quality of life as well as the mostcourteous people. Bangalore is also identified as a city which is in the process of development on

multiple counters ± numerous projects have been initiated in areas of Infrastructure, Power,Water, and Sanitation.

All this indicates that this will be a good investment destination, hence attracting FDIs and NRIsfund flows as time goes.

By Pakhi Kshitij | Posted in Property Articles | Tagged Bangaluru , Commercial Real Estate ,Cushman , Fdis , Hot Spot , Immense Popularity , Investment Destination , Key Areas , Living inThe City , Mantri , Market Segment , Millionaires , New Projects , Power Water , Preferred Places ,Residential Market , Silicon Valley , Whitefield , Working Environment , World Class Education |Comments (0)

Times Property Hosts Home Affairs

June 13, 2010 ± 12:11 am



The Times of India brings a reason to rejoice for people looking to buy Real Estate properties asthe prices in the realty industry are beginning to rise.

Photo by nancyarora2020 Times property, an initiative by the Times of India has brought thefourth edition of its yearly mega property bonanza at Bangalore.

The expo titled HOME AFFAIRS is a 2 day event which kicks off on June 12 and is expected toshowcase more than 5,000 apartments, independent villas as well as gated communities over thetime. Over 50 developers are said to participate in the huge event including Confident Group,Artha Property, Sobha Developers, Sunil Mantri Realty, HM Group, LGCL, Shriram Properties,Salapuria & Sattva Group, Nitesh Estates, Century Real Estate, Hiranandani Upscale, Kumar Properties, S N Builders, Reddy Structures, Krishna Enterprises, Sowparnika Projects, RadiantStructures, J R Housing, Vaishnavi Group and D S Max.

The expo is organized in the light of guiding customers to get the best deals. Surely it¶s a onestop destination for Real Estate enthusiasts.

By Pakhi Kshitij | Posted in Property News | Tagged Amp, Best Deals , Bonanza , Century RealEstate , Confident Group , Enthusiasts , Expo , Gated Communities , Hm, Home Affairs ,Independent Villas , Krishna , Max, Nitesh Estates , Property Hosts , Realty Industry , Sattva ,

Shriram Properties , Times of India , Vaishnavi | Comments (0)

India Realty Expo¶10 in Dubai

June 12, 2010 ± 9:03 am

The 13 th India Realty Expo 2010 organized by the Maharashtra Chamber of HousingIndustry (MCHI) in Dubai was a great success. The exhibition held from June 3, 2010 to June 5,2010 saw a presence of total 2847 NRI¶s. The event¶s success can be contributed to the fact that



June 11, 2010 ± 8:21 am

One of the world¶s largest Real Estate franchising networks RE/MAX has formed an alliancewith a Bhopal based firm, Vision Advisory Services. RE/MAX proudly boasts off more thanseven thousand open offices in 74 countries. This is the first time a company as big as RE/MAX

has taken a step towards building a network of Real Estate community on a national level.

The director of Vision Advisory Service, Pradeep Karambelkar said, ³We look forward to beinga vibrant part of the RE/MAX community and playing an important role in the real estatetransactions in Bhopal.´

Vision Advisory Services focuses on ethical and transparent business practices, customer-first-attitude, research-based value investing, implementation of cutting-edge technology and respectfor professionalism which has enabled them to create an impact in over 40 cities till date.

Vision Advisory Bhopal has been awarded with many felicitations by almost all major bigwigsof the Investment Industry. Vision advisory well supported by top notch professionals havingexpertise in well diversified financial services in the areas of Life and General Insurance,Financial Education, Training Manpower, Stock Broking, Real Estate, Mutual Funds andResource Management.

It¶s a first of a kind initiative taken by RE/MAX India which aims to bring organizing and professionalism in the unorganized real estate market of the country. RE/MAX India is also planning to open Franchisees in major towns and regions of the country.

By Pakhi Kshitij | Posted in Property News | Tagged Advisory Service , Advisory Services ,Alliance One , Attitude Research , Bigwigs , Cutting Edge Technology , Diversified FinancialServices , Felicitations , Financial Education , Firm Vision , Forms Alliance , General Insurance ,Industry Vision , Investment industry , Kind Initiative , max india , Notch Professionals , Pradeep ,Real Estate Transactions , Stock Broking | Comments (0)

RBI Proposes Change

June 10, 2010 ± 8:21 am



The Reserve Bank of India on Wednesday clamped restrictions on Urban Co-operative Banks(UCBs) to exposure on realty sector up to 15% of their total deposits.

Photo by Telstar Logistics Specified in the circular issued by the Reserve Bank of India , it saidthe total exposure of UCBs to realty sector, including individual housing loans and commercialreal estate, should be restricted to 15% of total deposit resources of any bank.

It further mentioned that the loans granted against the security of any immovable property should be classified as Real Estate Loans. The source of repayment will determine whether the exposureis against commercial real estate. Moreover, the ceiling of 15% is to be reckoned on totaldeposits of a bank based on the audited balance sheet as on March 31 of the fiscal year 2009-10.

Only time will tell what this change has in store for the real estate industry.

By Pakhi Kshitij | Posted in Property News | Tagged Balance Sheet , Bank Of India , Banks , CoOperative , Commercial Real Estate , Fiscal Year , Housing Loans , Immovable Property , RealEstate Loans , Reserve Bank Of India , UCBS , Urban Co | Comments (0)

Tips To Make Property Buying Easy

June 8, 2010 ± 2:31 pm

Here are some tips that will make your dream of owning a property and the journey involvedeasier.

1. Choosing The Right Property

Try and get all the information about the builder and the price of the property you are willing to

buy in the market along with other general information.



2 . Buying a Pre-Launch Property

Many times developers build properties according to the need of the market within a limitedtime. This is called soft or pre-launch. This property is cheaper than others by 10-15%.

3. Broker¶s Fees

If you plan on buying a property through some broker then his fees will be decided by the property. His fee is to be paid, first, when giving the token money and second, at the time of registration.

4. Token Money

Once you have decided to buy a property, token money is to be paid at that time. According tothe price of property token money can vary from Rs.50, 000-5, 00,000. It can vary according tothe agreement.

5. Preparing The Budget

Actual price is often known as the Base rate. There are some other prices like car parking,society or club membership, electricity and water. Add all these up and then finalize your budget.Other than this you will have to pay for stamp duty and registration charges.

6. Down Payment

Under-construction or ready flats have different down payment schemes. After giving the tokenmoney this comprises of 10-20% of the actual property cost in case of under construction flatswhere as for ready made property down payment is all the money minus token money.

7. Bank Loan All procedures regarding bank loan must be completed before giving the token money. Bank decides the credit limit after checking property papers and your income details.

8. Property Registration



After giving down payment and receiving letter of approval from the bank, you must get your property registered.

9 . Flat Possession

After the work is finished developer gets a certificate and thus he hands over the property possession to the customer. Customer should check all the details and clear all payments at thistime.

10. Facilities Provided By The Builder

After the possession has been given to the customer, builder has the maintenance responsibilityof 18 months.

11. Housing Society

After the completion of maintenance period the developer makes the housing society. They get a bank account in the name of the society. This society chooses its representative¶s and continuethe maintenance work throughout.

Have a happy and safe property buying experience.

By Pakhi Kshitij | Posted in Property Articles | Tagged Bank Loan , Budget , Buying A Property ,Car Parking , Club Membership , Electricity , Income Details , Journey , Letter Of Approval ,Limited Time , Money Bank , Pre Launch , Property Broker , Property Developers , PropertyPossession , Property Registration , Registration Charges , Rs 50 , Stamp Duty , Token Money |Comments (0)

Beary¶s Group Wins Runner Up Award

June 4, 2010 ± 10:16 am

A Bangalore based residential project has won the runner up award by the International RealEstate Federation (FIABCI). µ Bearys Lakeside Habitat¶ , a twin tower residential project wasawarded the prestigious award on May 27 at Bali, Indonesia.

The ceremony was held in the presence of the President and the First lady of the Republic of



Indonesia along with many other renowned developers and dignitaries especially flown in fromaround the world.

The project promoted by the Bearys Group, µLakeside Habitat¶ that welcomes you to the city asyou drive into it from the airport is the only Indian project to win this award this year. This is not

the first time that Lakeside Habitat has won an award; it has been recognized on many previousoccasions also.

There were fifty-four projects chosen from across 11 countries to compete for the coveted Prix d¶Excellence award 2010.

The award was received by the Director of Beary¶s Group, Mr. Siddique Beary.

Indian Real Estate has once again a reason to rejoice.

By Pakhi Kshitij | Posted in Property News | Tagged Bali Indonesia , Bangalore , Beary ,

developers , Dignitaries , Excellence Award , First Lady , Habitat , Indian Real Estate , InternationalReal Estate , Occasions , Presence , Prestigious Award , Republic Of Indonesia , Residential project ,Siddique , Twin Tower , Wins | Comments (0)

Launch Of The Square In Sholapur

June 2, 2010 ± 7:24 pm

The textile capital of India Sholapur has a reason to rejoice. Sunil Mantri Group, a leading realestate development company with pan-India presence in association with Kumar Yashraj Group,a leading Sholapur-based developer, has announced its new project ³ The Square ´ with an aim toset new bench marks in the western zone.

The project will incorporate top of the line amenities, security and design aspects and is the firstof its type in Sholapur that will encompass residential, commercial and retail real estate segmentscreating a unique neighborhood in the center of the city where residents of the city can relax,shop, and enjoy fine dining in a modern setting. The Square will be spread across 27,000 sq.meters.

The Square, a juxtaposition of Residential & Retail, constitutes flats of 2 , 2.5 and 3 bedroomconfiguration and more than 180 shops, a major anchor retail outlet, and a hyper mart on a totalarea of 2,81,000 sq feet. Situated on the main road, it gives easy accessibility, luring consumers



Photo by tochis

The company spokesperson said ³³We have brought down prices of various products in the

range of Rs 1,000-1,500 a tone to align with the global trend´.An official from JSW steel said it was also likely to announce a price cut later on Tuesday.

The company¶s Joint Managing Director M.V.S Seshagiri Rao said.´Spot prices for long products are volatile and we change them several times a month. For flat products, there is likelyto be a reduction in prices this month because of a decline in international prices.´ Mr. Raofurther added, ³However, there are no signs of tapering in the domestic demand,´

Steel prices are likely to cool further in the coming months as demand from realty andconstruction sector usually slows down during monsoon.

Shares of SAIL closed at Rs 198.60 on the NSI, down 3.8% from previous close. JSW Steelclosed at Rs 1,054, down 4.9%.

By Pakhi Kshitij | Posted in Property News | Tagged atul, chaturvedi , company spokesperson ,Construction Sector , decline , Financial Crisis , global price , global steel , global trend , jsw steel ,Managing Director , nsi, rao, rs 1, several times , Signs , steel authority of india ltd , Steel Prices |Comments (0)

J aypee Greens New Project-Kasa Isles

May 16, 2010 ± 12:18 am

J aypee Greens recently launched ³ Kasa Isles ´. This is an anomalous project which has takeninspiration from the Mediterranean style architecture. This project will introduce high rise flatsand is located at Sector 129, Jaypee Greens, Wish Town, Noida.

There will be somewhere 2000 apartments in ³Kasa Isles´. These flats fill you with delight andmake your living worth. These luxurious flats are in the reach of common man and thus have the



potential of attracting individuals. Studio apartment, Duplex Penthouses and 2/3/4 BHK apartments in sizes ranging from 550-3100 sqft will be offered in this project.

This project is highly influenced by the Mediterranean style architecture, especially its ambienceand landscaping. The green parks guarantee hi-quality lifestyle for its residents with its large

range of recreational facilities like central club and with low-height stone fountains. Some morefacilities are Italian style swimming pool, sports facilities for Tennis, badminton court, joggingtracks, Card room, Mediterranean cuisine restaurant and many more.

The price list has a BSP of Rs 3390/- per sqft.

The most attractive feature of Kasa Isles is the club it is offering to the residents. In order to giveits members a warm welcome, it has soothing interiors created with terra cotta walls blendedwith stacked stones in the club. A complete home is offered with wide & low windows, archedentrance opening to wide sitting areas, a stone fireplace, and beautiful hardwood floors.

By Anchal | Posted in Property News | Tagged Arched Entrance , Attractive Feature , BadmintonCourt , Italian Style , Jaypee Greens , Kasa Isles , Mediterranean Cuisine , Mediterranean StyleArchitecture , noida , Penthouses , Quality Lifestyle , Rise flats , Sports Facilities , Stone Fireplace ,Stone Fountains , Studio Apartment , Wishtown | Comments (0)

Eco-friendly building concept catches up with housing boardJY OTSNA J ALALI

Posted: May 27, 2010 at 0007 hrs IST

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The approximate price of a three bedroom flat with an area of 1,424 square feet is Rs 39.57 lakh, if the payment is made upfront. The cost of a Category B house ² two-bedroom flats with an areaof 1,075 square feet² has been fixed at Rs 29.14 lakh at present. Meanwhile, it is Rs 17.2 lakhfor a one-bedroom flat and Rs 5 lakh unde

R eal estate giants will be roped in for green houses

fe BureausPosted: Friday, May 14, 2010 at 2319 hrs ISTUpdated: Friday, May 14, 2010 at 2319 hrs IST

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New Delhi: With a view to reduce carbon emissions, the government will soon rope in major real estate developers for voluntary adoption of a set of new guidelines on building low energy



consuming green housing complexes. The move is part of the government's national action planon climate change.

The ministry of new and renewable energy (MNRE) has asked an expert agency set up by it in partnership with The Energy & Resources Institute (Teri) to evolve a set of guidelines on how to

build large housing complexes in the most environment friendly and energy efficient way. Thenew guidelines would include requirements such as meeting about 5% of the energyrequirements through renewable sources.

While development of townships is the mandate of the ministry of urban development and partly,the housing ministry and urban poverty alleviation, the proposed green rating for housingcomplexes is an initiative of MNRE because it is an extension of the projects it is already doing.Officials from other ministries are part of a technical panel of MNRE dealing with greeninfrastructure for large development. The expert agency²the Association for Development andResearch of Sustainable Habitats or ADARSH²which now gives green ratings for individual

buildings, will evolve the new norms for large residential complexes. µµThe rating called Griha

would be voluntary for builders in the initial few years, after which it could be madecompulsory,¶¶ the rating agency¶s CEO Siva Kishan told FE.

The idea is to rope in top five real estate developers to voluntarily adopt the guidelines, whichwould then set the benchmark for others. The rating agency is now in talks with variousdevelopers and the first partnership with a real estate developer may be announced soon, he said.

The rating agency is also talking to various state governments for giving incentives to developersto adopt the new norms that would reduce energy consumption and the impact of construction onground water levels and the environment.

Shiva Kishan said the Maharashtra government is open to reducing property tax for green buildings as an incentive, while some other states are open to let builders construct more floors if they follow green building norms. This would allow them to recoup the rating fee as well as theextra initial cost of environment-friendly construction.

The ministry now allows some incentives for individual buildings to get green rated. Theseinclude reimbursement of 90% of the rating fee and rewards for the architect.

More from News

June inflation at 10.55%, to rise further on fuel price hikeNAC finalises suggestions on food security

BillInfra, retail make credit offtake grow 22.28%PNGRB will issue gas licencesDecision on free rail travelfor staff todayIndia, Oman in pact for $100-m investment fundRs 6k maximum charge for Ulip exitEffortson to get back to 9% growth trajectory, no spending cuts: Pranab

Mul ti P a ge Fo rma t




fe BureausPosted: Friday, May 14, 2010 at 2319 hrs IST

Updated: Friday, May 14, 2010 at 2319 hrs IST

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New Delhi: With a view to reduce carbon emissions, the government will soon rope in major real estate developers for voluntary adoption of a set of new guidelines on building low energyconsuming green housing complexes. The move is part of the government's national action planon climate change.

The ministry of new and renewable energy (MNRE) has asked an expert agency set up by it in partnership with The Energy & Resources Institute (Teri) to evolve a set of guidelines on how to build large housing complexes in the most environment friendly and energy efficient way. The



new guidelines would include requirements such as meeting about 5% of the energyrequirements through renewable sources.

While development of townships is the mandate of the ministry of urban development and partly,the housing ministry and urban poverty alleviation, the proposed green rating for housing

complexes is an initiative of MNRE because it is an extension of the projects it is already doing.Officials from other ministries are part of a technical panel of MNRE dealing with greeninfrastructure for large development. The expert agency²the Association for Development andResearch of Sustainable Habitats or ADARSH²which now gives green ratings for individual

buildings, will evolve the new norms for large residential complexes. µµThe rating called Grihawould be voluntary for builders in the initial few years, after which it could be madecompulsory,¶¶ the rating agency¶s CEO Siva Kishan told FE.



Shiva Kishan said the Maharashtra government is open to reducing property tax for green buildings as an incentive, while some other states are open to let builders construct more floors if they follow green building norms. This would allow them to recoup the rating fee as well as theextra initial cost of environment-friendly construction.

The ministry now allows some incentives for individual buildings to get green rated. These

include reimbursement of 90% of the rating fee and rewards for the architect.More from News

June inflation at 10.55%, to rise further on fuel price hikeNAC finalises suggestions on food securityBillInfra, retail make credit offtake grow 22.28%PNGRB will issue gas licencesDecision on free rail travelfor staff todayIndia, Oman in pact for $100-m investment fundRs 6k maximum charge for Ulip exitEffortson to get back to 9% growth trajectory, no spending cuts: Pranab






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The ministry of new and renewable energy (MNRE) has asked an expert agency set up by it in partnership with The Energy & Resources Institute (Teri) to evolve a set of guidelines on how to build large housing complexes in the most environment friendly and energy efficient way. Thenew guidelines would include requirements such as meeting about 5% of the energyrequirements through renewable sources.

While development of townships is the mandate of the ministry of urban development and partly,the housing ministry and urban poverty alleviation, the proposed green rating for housingcomplexes is an initiative of MNRE because it is an extension of the projects it is already doing.Officials from other ministries are part of a technical panel of MNRE dealing with greeninfrastructure for large development. The expert agency²the Association for Development and



Research of Sustainable Habitats or ADARSH²which now gives green ratings for individual buildings, will evolve the new norms for large residential complexes. µµThe rating called Grihawould be voluntary for builders in the initial few years, after which it could be madecompulsory,¶¶ the rating agency¶s CEO Siva Kishan told FE.



Shiva Kishan said the Maharashtra government is open to reducing property tax for green buildings as an incentive, while some other states are open to let builders construct more floors if they follow green building norms. This would allow them to recoup the rating fee as well as the

extra initial cost of environment-friendly construction.The ministry now allows some incentives for individual buildings to get green rated. Theseinclude reimbursement of 90% of the rating fee and rewards for the architect.

More from News

June inflation at 10.55%, to rise further on fuel price hikeNAC finalises suggestions on food securityBillInfra, retail make credit offtake grow 22.28%PNGRB will issue gas licencesDecision on free rail travelfor staff todayIndia, Oman in pact for $100-m investment fundRs 6k maximum charge for Ulip exitEffortson to get back to 9% growth trajectory, no spending cuts: Pranab




Font Size

Print



Feedback

Email

Discuss


y Remote Bike

y Exclusive Gifts


The ministry of new and renewable energy (MNRE) has asked an expert agency set up by it in partnership with The Energy & Resources Institute (Teri) to evolve a set of guidelines on how to build large housing complexes in the most environment friendly and energy efficient way. Thenew guidelines would include requirements such as meeting about 5% of the energyrequirements through renewable sources.

While development of townships is the mandate of the ministry of urban development and partly,the housing ministry and urban poverty alleviation, the proposed green rating for housingcomplexes is an initiative of MNRE because it is an extension of the projects it is already doing.Officials from other ministries are part of a technical panel of MNRE dealing with greeninfrastructure for large development. The expert agency²the Association for Development andResearch of Sustainable Habitats or ADARSH²which now gives green ratings for individual

buildings, will evolve the new norms for large residential complexes. µµThe rating called Grihawould be voluntary for builders in the initial few years, after which it could be madecompulsory,¶¶ the rating agency¶s CEO Siva Kishan told FE.





Shiva Kishan said the Maharashtra government is open to reducing property tax for green

buildings as an incentive, while some other states are open to let builders construct more floors if they follow green building norms. This would allow them to recoup the rating fee as well as theextra initial cost of environment-friendly construction.

The ministry now allows some incentives for individual buildings to get green rated. Theseinclude reimbursement of 90% of the rating fee and rewards for the architect.

More from News

June inflation at 10.55%, to rise further on fuel price hikeNAC finalises suggestions on food securityBillInfra, retail make credit offtake grow 22.28%PNGRB will issue gas licencesDecision on free rail travel

for staff todayIndia, Oman in pact for $100-m investment fundRs 6k maximum charge for Ulip exitEffortson to get back to 9% growth trajectory, no spending cuts: Pranab


The present paper entitled ³Prospects & Problems of Real Estate in India´ is anattempt to reveal the issues concerned with real estate investment sector in India. This

paper is concerned with the investment on real estate in India and the trends in theconcerned industry. The paper has been divided into three sections. Section one deals withthe fundamental factors affecting the real value like demand, supply, property, restrictionsto use and site characteristics. Section two and three explains the causes and the constraints

to the present real estate boom respectively in India. The paper also presents thesuggestions and future prospects of real estate in the country

Independent VariablesPrices, features of flat, material used and advertising.Dependent VariablesCustomer awareness, presences and their perception about property.IntrodectionReal estate or immovable property is a legal term (in some jurisdictions) that encompasses landalongwith anything permanently affixed to the land, such as buildings. Real estate is often considered

synonymous with real property (also sometimes called reality), in contrast with personal property(alsocalled personality). However, in technical terms, real estate refers to the land and fixturesthemselvesand real property are used primarily in over real estate. The term real estate and real property areused

primarily in common law, while civil law jurisdiction refers instead to immovable property. Inlaw, the



word real means relating to a thing as distinguished from a person. Thus the law broadlydistinguishes

between real property (land and anything affixed to it) and personal property (everything elsee.g.clothing, furniture, money).

Real Estate Business Includes: With the development of private property ownership, real estatehas become a major area of business. Purchasing real estate requires a significant investment andeach

parcel of land has unique characteristics, so real estate industry has evolved into several distinctfields.Some kind of real estate businesses include- Appraisal ± Professional valuation services Brokerage ± Assisting buyers and sellers in transactions Development ± Improving land for use by adding or replacing buildings Property Management ± Managing a property for its owner(s)

Real Estate Marketing ± Managing the sale side of the property business Relocation Services ± Relocating people or business to difficult countryTypes of Ownership Interests: Real property (immovable property) can refer to the real estateitself or to various types of ownership interests in real estate, including: Freehold: Provides the owner the right to use the real estate for any lawful purpose and sell

when and to whom the owner wishes. Life estate: An interest in real estate which is granted to a life tenant until that person dies. The

interest terminates upon the death of the life tenant. Estate for years: Similar to life estate but term are a specified number of years. Leasehold: The right to posses and use real estate pursuant to the terms of a use. Reversion: The right to posses the free interest in real estate after the expiration of a life estate,

estate for years or leasehold. Concurrent or co-tenancy: The ownership of an interest in real property by more than one party. Rights of any single party may be limited in various ways depending on the jurisdictionand type of concurrency.Participants of Real Estate Market: The main participants in the real estate markets are

International Research Journal of Finance and EconomicsISSN 1450-2887 Issue 24 (2009)© EuroJournals Publishing, Inc. 2009http://www.eurojournals.com/finance.htm

Prospects & Problems of Real Estate in IndiaVandna Singh Head-MBA Department Seth Jai Prakash Mukand Lal Institute of Engeenring &Technology (JMIT)

Radaur, Yamunanagar Komal

Lecturer, Institute of Technology & Management (ITM), GurgaonE-mail: [email protected]



someone else.Renter: These people are pure consumers.Developers: These people prepare raw land for building which results in new product or themarket.Renovators: These people supply refurbished buildings to the market.

Facilitators: This includes banks, real estate grocers, lawyers and others that facilitate the purchaseand sale of real estate.The owner/user, owner and renter comprise the demand side of the market, while thedevelopers and renovators constitute the supply side. In order to apply the simple demand andsupplyanalysis to real estate markets a number of modifications need to be made to standardmicroeconomicassumptions and procedures.Real estate can divided into three categories: These are Commercial

Residential AgriculturalWe can invest into all the given areas and can make return by capital appreciation, rentalincome, agricultural produce, lease and commercial use.The following factors influence the price and cost of the real estate:1. The physical characteristics of the property2. The property rights3. The time horizon of holding the property4. Geographical area5. The development rateFeatures of Real Estate Markets: In particular, the unique features of the real estate marketmust beaccommodated. These include: Durability Heterogeneous High transaction costs Long time delays Both an investment good and consumption good Immobility

PART-1: Fundamental factors determining the value of real estateThese factors includesDemand

Demand refers to people¶s willingness and ability to buy or rent a given property. In part demandstemsfrom a market area¶s base. In most real estate markets, the source of buying power comes from

jobs.Property values follow an upward path when employment is increasing. The real estate market inIndiahas seen remarkable changes in the past few years. The rapid expansions of informationtechnology,



especially BPOs, spurt in the middle class income and 8% growth in GDP are the potential keyfactorsfor the growth.India is the 4 th largest economy in the world, and has the 2 nd highest GDP among thedeveloping countries based on purchasing power parity. IT and IT enable services sector in India

is stillin its growing stage due to increasing demand for business processing units in India and isestimated togrow by 107% to $583 million in revenue. This could lead to a space requirement of 20-25million sq.

International Research Journal of Finance and Economics - Issue 24 (2009) 245ft. per annum, according to a Merrill Lynch report. Taking this factor into consideration, theTotalvalue of real estate created by the IT and ITES sector in the next three years will be Rs.132000.Supply AnalysisSupply analysis means sizing up the competition. Nobody wants to pay more for a property than

the price they can pay for competing property. An integral part of value analysis requires identifyingsources of potential competition and then inventorying them by price and features. An analysisof supply should not limit potential competitors to geographically and physically similar properties.Insome markets, for example, low priced single family houses might compete with condominiumunits,manufactured homes and even with rental apartments.The PropertyIn real estate the property itself is also a key ingredient. The price that people will pay isgoverned bytheir needs and the relative prices of the properties available to meet those needs. To try todevelop a

property¶s competitive edge, an investor should consider five things:1. Restrictions on use2. Location3. Site characteristics4. Improvements5. Property managementThe Property Transfer ProcessIn efficient markets, information flows so quickly among buyers and sellers that it is virtuallyimpossible for an investor to outperform the average systematically. As soon as something goodor badoccurs, the prices of the affected company¶s stock adjust to reflect its current potential for earnings or losses. Real estate markets are no as efficient as stock markets.Rental Trends in IndiaRecent trends of rental properties in India are conspicuous by the immense potential that is being



realized today. Rental values in cities like Delhi and outskirts are witnessing an increase of 20-25%.Real estate agents are devoting themselves to negotiations for rented homes than ever. Thoughtheinterest rates on home loans, continued tax exemptions on such prompts people to buy property,

thosewith the ability to buy a flat among the middle-class are thinking twice.In residential segment , the capital value or cost of flats has almost doubled in cities likeGurgaon where prices went up to Rs. 45 lakhs from Rs. 15 lakhs a couple of years back. Thedemandfor more capital appreciation in the wake of rising prices coupled with home loan rate hike hasdampened the buying spirit. This has in ways propelled demand for rental property in India.Increaseddemand for independent houses or paying guests occurs mainly in the metros like Delhi,Gurgaon, andMumbai etc. where the corporate sectors rent independent houses for their senior executives. A

payingguest or PG accommodation in India is a convenient arrangement. Even PG hostels and workingwomen¶s hostels, are considered safe and can be availed of on an individual or sharing basismean big

business.The real estate rental trends in commercial sector are momentous as the key tendency amongthe investors is to rent a commercial space instead of buying. It will facilitate low risk and lessworryon maintenance. Commercial rentals including corporate office space, BPO spaces, mall space,shopsand showrooms are an integral part of the commercial rentals in India. Buying good space inhighqualitydevelopment and leasing it to a good brand is a wise investment decision. Usually, commerciallease agreements specify a 15% escalation in the real estate rental in every three years which is agoodenough yield. For those considering regular rental returns rather than capital appreciation, mallspace246 International Research Journal of Finance and Economics - Issue 24 (2009)has the distinction to be an excellent option. It gives returns higher than that received with officespaceand much higher than the rental returns from residential space.PART- 2 : Causes for Present Real Estate Boom

Foreign FundsThe Government has allowed FDI in the real estate sector with certain caveats. Recently theCabinetCommittee on Economic affairs has decided to permit 100% FDI in forms of housing, hotels,resorts,commercial premises, educational institutions, recreational facilities, hospitals and city andregional



level infrastructure in order to attract higher investments. Earlier, restrictive norms were imposedonforeign investments with their presence permitted only in the integrated townships. They investinurban infrastructure like hotels, shopping malls, large scale residential complexes in new

townships,InfoTech parks and special economic zones. Over a half a dozen domestic realty funds have beensetupso far with a corpus of over Rs. 3,500 crore.Figure 1: FDI in Indian Real Estate4.5% 10 .6% 16. 0% 26.5% 0% 5% 10% 15%

20% 25% 30% 2003-0 4 200 4 -05 200 5 -06 200 6 -07Real Estate Exposure of BanksCommercial banks exposure to the real estate sector almost doubled in the first 10 months of 2005-06over the March 31, 2005 level. In real estate, banks advances for 2005 were Rs. 26,600 croreagainstRs. 17,355 crore the year before. The total outstanding loans to real estate rose by 84.4% as onJanuary20, 2006, according to RBI¶s report on macroeconomic and economic developments in 2005-06

released. In the meantime, the housing finance industry started to expand rapidly, making homeloanseasily available to everyone. The supply increased enormously and the demand remained steady,as

prices had gone beyond the realistic levels. International Research Journal of Finance and Economics - Issue 24 (2009) 247Figure 2 : Loan Disbursement45 00 5 700 7 5 00 9821 12 6 26 265 00397 5 005 00010000

15 0002000025 0003000035 0004 000045 000199 6 -19971997-19981998-1999



1999-20002000-20012001-20022002-2003Loans (Rs . in crore)

Shortage of Land for Special Economic ZoneIn the great rush to developing special economic zones a schism have emerged between thecompaniesthat posses land for the projects and those that don¶t. As many as 125 projects for over 2,13,023acres(86,208 hectares, which is more than half the area of the national capital) were considered at ameetingto a massive 1,48,290 acres or 70% of the projected land size these SEZs. For instance MahindraRealty does not have the 2,500 acres land for it s proposed SEZ as yet. Out of the 23 multi

productSEZ projects for which the data is available, only three were in possession of a total of 30,250acres of land a month ago. Of this, Reliance Industries accounted for 25,000 acres. Another seven

projects hadmanaged to get a portion of the 27,510 acres of the total land they sought. The remaining thirteen

projects did not have land totaling 1,35,000 acres available. Of this Adani Exports Limited didnothave the 75,000 acres if land available at that stage. The companies are not having the requiredland for their projects making the prices of land very high.Investment by IDFCThe Infrastructure Development Finance Company (IDFC) plans to invest Rs.1,000 crore everyover five years on township projects, InfoTech parks, hotels, retail and transport sectors.Commercial BoomAccording to an expert to a real estate consultancy, there are currently 18 malls in New Delhi,Gurgaon, Nodia and Faridabad, with approximately built up space of 3 million sq. ft. While 66newmall projects have been announced, the crush in the meantime is on the existing space. AbhijitDas,head, Ansalplaza Mall Management Company, confirms the rental increase. Shops on the firstandsecond floors of the mall, he says which were being leased at rates between Rs. 175 and Rs. 225

per sq.ft. two months ago are now being out at a minimum of Rs. 250 per sq. ft.10- Y ear Tax HolidayThe finance Ministry has announced a 10-year tax holiday for developers of Industrial parks setupfrom April 1, 2006 to March 31, 2009. According to the Industrial Park Scheme 2008 notified bythe



Central Board of Direct Taxed (CBDT), the industrial park developers will be eligible for 100%taxdeduction which is to be provided for 10 consecutive assessment years out of 15 years after thecommencement of operations of such units. The developers will be free to choose the 10consecutive

years for the purpose of availing themselves of the tax holiday.248 International Research Journal of Finance and Economics - Issue 24 (2009)Price Variations in IndiaThere are unbelievable variations in the prices of real estate sector in the past. Mainly there aretwocauses for the same:Per Capita IncomeFigure 3: Per Capita Income19 5 92 21 54 3232 4 0 2 5 00005 0001000015 0002000025 0002002-03 2003-0 4 200 4 -0 5 200 5 -06 Income (in Rs .)As depicted by fig. 2 per capita income is increasing in India, which has increased the

purchasing power of the people. Due to this over the last year (2006-07) houses prices haveraised by10-90% and commercial property prices by 10-30% in different area of India. Correlation .996 isfound

between PCI and real estate prices. Thus there is a positive correlation between per capitaincome and

real estate prices.GDP at Market PriceFigure 4: GDP246 332 4 276 022 4 3121 4 14 35 292 4 005 00000100000015 00000200000025 00000300000035 000004 0000002002-03 2003-0 4 200 4 -05 200 5 -06 GDP at Market Price (in Crore Rs .)

GDP, the indicator of the national growth, from the past 2-3 years is increasing by 6.5%to7.5%. Every rupee spend on the construction add to nearly 60% of GDP. As shown by the fig.3 theGDP has increased from the 2463324 crore to 3529240 crore from 2002-03 to 2005-06, so itindicatesthat how the spending on the construction sector helps the real estate prices to increase.

International Research Journal of Finance and Economics - Issue 24 (2009) 249Price Variations in Different cities



Figure 5a: Price variations in MumbaiMumbai (in Rs. Per Sq. Ft.)Mar-04 Mar-05 Mar-06 Mar-07 Mar-08Cuffe Parade 11500 18000 25000 35000 42000Malabar Hill 15000 22000 28000 38000 46000Worli 8500 12000 18000 26000 32500

Bandra (W) 8500 10000 13500 21500 26500Navi Mumbai 1800 2300 2800 3500 5500Figure 5b: Price variations in MumbaiDelhi/NCR (in Rs. Per Sq. Ft.)Mar-04 Mar-05 Mar-06 Mar-07 Mar-08Shanti Niketan 11500 15000 18000 22500 27000Vasant Vihar 11000 14500 17000 21000 26500Friends Colony 6000 8000 10000 13500 18000Gurgaon 2000 2500 3700 4850 6100Nodia 2000 2800 3700 4900 6850Figure 5c: Price variations in ChennaiChennai (in Rs. Per Sq. Ft.)Mar-04 Mar-05 Mar-06 Mar-07 Mar-08Baoat Club Road 7750 8500 10000 12500 16000Poes Garden 6200 7500 8500 11000 14800Mylapore 3000 4500 6000 8500 11200Tnagar, Adyar 2000 3000 4000 5800 7500Anna Nagar 2300 2800 3500 6500 8500Vadapalani 1900 2000 2250 3800 5200Figure 5d: Price variations in BangloreBangalore (in Rs. Per Sq. Ft.)Mar-04 Mar-05 Mar-06 Mar-07 Mar-08White Field 1000 2000 5000 8900 12500Richmond Town 5000 6000 7200 11000 15500Palace Orchards 5300 6000 7500 11000 13500Indira Nagar 3200 3700 4200 6500 9200Kanamangala 3100 3500 4000 6500 8500Figure 5e: Price variations in HyderabadHyderabad (in Rs. Per Sq. Ft.)Mar-04 Mar-05 Mar-06 Mar-07 Mar-08Banjara Hills 2000 2500 3000 4800 6500J ublee Hills 2000 2500 3000 4600 7500Himayatnagar 1500 1700 2000 3200 4800West & East Marredpally 1500 1700 2000 2800 4200Secunderabad 1500 1700 2000 3100 4500250 International Research Journal of Finance and Economics - Issue 24 (2009)Figure 5f: Price variations in KolkataKolkata (in Rs. Per Sq. Ft.)Mar-04 Mar-05 Mar-06 Mar-07 Mar-08Allipur 2850 3000 3400 5400 7800Allygunj 3000 3200 3575 6200 8500London Street 2975 3100 3575 6250 8000Rajarhat 1100 1200 1550 2800 4200Salt Lake 1875 1950 2075 3600 5250Figure 5g: Price variations in PunePune (in Rs. Per Sq. Ft.)Mar-04 Mar-05 Mar-06 Mar-07 Mar-08Karegaon Park 3000 3500 4000 5800 7250Aungh 2000 2500 3200 5500 7000



Banger 1600 2000 2500 4500 6200Wakad 1300 1800 2000 3500 5800Kalyani Nagar 1800 2500 3500 5400 7500It is clear from the above tables that in real estate prices are touching heights. In some areas the

prices are increased by 90-100%. In Gurgaon and Noida prices has jumped by as much as 200%.Thecheapest DLF apartment in Gurgaon costs Rs. 1 crore.PART-3: Constraints in the Real Estate InvestmentThe various constraints are as under-Urban Land Ceiling Regulation Act (ULCRA)The central government has replaced this archaic law in 1999-2000, but the state government hasnotfollowed the lead. Some states like Punjab, UP, MP, Rajasthan, Gujrat and Orissa are yet to acton it.This law has been failed and this is the right time to act on it and to release more land into themarket.This will definitely lower the price of land, which accounts for about 50% of the price of realestate

property in India, unlike the developed countries, where it is much less. Distribution of cost of Housingin India and USA:Figure 6: Housing Cost in India & US4 9% 24% 28 % 30 % 18 % 3% 5% 37 % 0% 5% 10 %

15% 20 % 25% 30 % 35% 4 0% 45% 5 0% LandCostsMaterialCostsLabor CostsProf itIndiaUS

International Research Journal of Finance and Economics - Issue 24 (2009) 251Clear Title90% of the lands in India do not have clear title. The ownership is unclear, thereby creating ascarcityof land. This is due to poor record keeping and outdated complaint processes. All updatedrecords must

be computerized to increase transparency in land ownership. And special fast track courts must be set



up to clear all legal land disputes in a short period of time.Stamp Duty & RegistrationThe cost of transferring land titles must be reduced from rates of 10% stamp duties to reasonablelevelsof 3 to 5%; similar to prevailing rates in developed countries. This will encourage sellers to pay

stampduties, instead of trying to cheat the government, thus increasing the revenue for the country. Thehighduties have also encouraged unaccounted money being used in most real estate transactions inIndia.The registration procedure should also be made transparent and simple so that corruption can beminimized.Rental LawsObsolete tenancy and rental control laws keep a large part of the urban properties off the market.Therental laws must be revised to protect the owner and his/her property from the tenant. The tax

lawsmust be revised to make renting of properties a financially viable option. Some states likeMaharashtra,Goa, Bengal and Karnataka have already made amendments to the rent act.Foreclosure LawsThough the level of foreclosure for the housing finance companies are relatively low at around1.5 to2%, these must be revised and made up-to-date to suit the current context. The laws for non-

paymentof Equated Monthly Installments (EMIs) and consequent foreclosure and repossession of the

propertylaw must be revised so that the financing companies have the final rights on the property, whichiscollateral for the housing loan.Building Codes, Standards & PermissionsThere are several building guidelines and standards in various cities and states, however they areneither followed by the developers nor implemented by the authorities.Development and PlanningIn India development and planning concerned with real estate sector is not up to the mark. Thecity or state authorities must use professionals to plan and execute all development plans for cities andtowns,with future development in mind. This must be done without political compulsions. This willallow

proper zoning within cities and towns, green areas and other infrastructure systems to fall into place asthe development plans unfold.Present Scenario in IndiaUp to the end of 2007 real estate sector in India was growing at a very high rate. There was asituation



of boom in this sector. The home loans were easily available and RBI was following very liberal policies regarding the interest rates. But in 2008 the things are changing due to the high rate of inflation in the Indian economy. There is uncertainty in the market as share market is showingdepression and the RBI is also increasing the Bank rate leading to the increase in the interestrates. So

the buying power is reducing. The major reasons for this downfall are inflation and the low rateof GDP. Inflation rate is touching the heights as shown by the figure given below:252 International Research Journal of Finance and Economics - Issue 24 (2009)Inflation rate in IndiaFigure 7: Inflation rateDate Inflation rateFeb 5, 08 3%Mar 22, 08 6.68%April 4, 08 7%April 26, 08 7.61%May 10, 08 7.82%May 24, 08 8.24%June 7, 08 11.05%June 14, 08 11.43%Inflation rate is increasing continuously in India making the market unstable.Barriers in GDP GrowthThe present contribution of the housing construction industry in India is small when compared todeveloping and developed countries. This sector contributes only 1% of the GDP in India, ascomparedto 3 to 6% in other developing countries. If the above issues are addressed and the economy wastogrow at 10% a year, the housing sector would grow at 14% a year and create over new3.2 million

jobs

over the next 10 years. The problems are numerous, the solutions are obvious and clear, but thechoicesare difficult and few. The advantages of implementing these changes will overcome all thenegativeand political issues, which have kept the problems dormant for so long. India does not haveoption, butto act strongly and immediately. This will provide the impetus to get Indian economy back onthe track for a double digit growth. Figure 8 shows the various barriers, keeping the GDP growth in Indiaat5.5% in 2000, and the resulting GDP growth of 10.1% with the complete reforms by 2010.

Figure 8: Barriers in GDPStatus QuoGrowth, 5.5 0% Product M ktBarriers, 2 .30 % Land M ktBarriers, 1 .30 % Privatizatio n,0.70% Labor M ktBarriers, 0 .20 % Lack of Infrastructure,0.10%



FindingsFindings of the paper are as under- As the GDP increases the real estate prices also increases because there is a high degree of

positive correlation between the real estate prices and GDP. Real estate prices also increases with increase in the per capita income as there is high degree

of positive correlation between these two also. International Research Journal of Finance and Economics - Issue 24 (2009) 253

The infrastructure of India is also growing day by day so it adds to the better facility todifferentsectors which affect the real estate prices. The FDI into the country affects the real estate FDI and real estate having a positive correlation

leads to the boom in this sector. Increase in FDI from 2006 to march 2007 is 10%. Earlier it was16% and now in 2008 it is 25%. The interest rate also affects the real estate prices because it affects the lending and borrowing

by

the investors. The growth in the real estate sector is between 25-30% in a residential sector, 10-15% incommercial sector and agriculture sector. Housing sector constitute 80% of real estate in terms of value and 20% by commercial sector. In residential segment, availability of easy home finance and rising purchasing power has

driventhe growth. Builders are launching high-end, life style residential products to cater to thegrowing

bunch of high net worth individuals. In 2008 the growth of real estate sector is going down due to high inflation and hike in home

loan

rates by the banks following the increase in bank rate and SLR by the RBI. The outsourcing and IT/ITES industry have contributed to the demand for quality office-space.The estimated demand from IT/ITES sector alone is expected to be 150mm sq. ft. of space acrossthe major cities by 2010.SuggestionsThe following recommendations are made by this paper- Due to high prices the lower income group is not able to purchase the land, so govt. should take

measures to protect the lower income group. The agriculture land covered into the commercial and residential purpose. But the population is

also increasing day by day. So govt. should steps for the same. The investors should analyze the type of land in which they are going to invest and the

potentialreturns from it. Privatization of Airports and ports needs to be speed up. There is a lack of proper data and management of the real estate sector so govt. should take the

corrective steps in this regard so that the proper estimation and management of the real estatecan be made possible. Commonwealth is scheduled for 2010. Hotels, sport stadiums and other infrastructure to have

successful games need to be expedited. This is another great opportunity for foreign developers



and investors to step in India. Thus more and more encouragement should be given to foreigninvestors. Stamp duty is extremely high and must be rationalized and brought down to 2-3% as per global

practice, which is now in India varies from 13-14%. Due to lot of investment avenues in real estate in India, fraud cases are also increasing day by

day like in Delhi deconstruction of buildings. Thus careful measures and laws should beenacted to deal with these types of situations.254 International Research Journal of Finance and Economics - Issue 24 (2009)ConclusionAfter studying all the factors of the real estate it can be concluded that the Real Estate is a verywideconcept and it is highly affected by the macro-economic factors like GDP, FDI, per capitalincome,Interest rates and employment in the nation. The most important factor in the case of Real Estateislocation which affects the value and returns from the Real Estate.

India needs a stronger capital market base for property financing. The debate on the potentialintroduction of REITs and real estate funds points in the right direction. The introduction of REIT s in2007, will give international investors in particular a familiar investment vehicle. Privateinvestorscould also enter into indirect investment in real estate. Although interest in new projects is mostlikelyto come primarily from institutional investors, the rising middle class is likely to seek newinstrumentsaside from direct property investments in the medium term.So, in the end we can say that the investment in Real Estate in India is a very good investment

opportunity. But one should be very careful while taking decision in this direction due to risinginflation and interest rates. Legal issues should also be kept in mind while choosing a property.References[1] Seiler, J. Michael (1999), ³Diversification Issues in Real Estate Investment´, Journal of RealEstate Literature, Vol. No. 07, Page 163 to 179.[2] Jackson, O. Thomas (2001), ³The Effects of Environmental Contamination on Real Estate´,Journal of Real Estate Literature, Vol. No. 09, Page 91 to 116.[3] Benjamin, D. John (2003), ³The Environment and Performance of Real Estate´, Journal of RealEstate Literature, Vol. No. 11, Page 279 to 324.[4] Malpezzi, Stephen, ````The role of Speculation in Real Estate Cycles´, Journal of Real Estate

Literature, Vol. No. 13, Page 141 to 164.[5] Focke, Christian, ³The Development of German Open-Ended Estate Funds´, Journal of RealEstate Literature, Vol. No. 14, Page 39 to 56.



Foreign Direct Investment:

Investing in Real Estate in India Indian real estate has huge potential demand in almost everysector especially commercial, residential, retail, industrial,hospitality, healthcare etc .

Commercial office space requirement is led by the burgeoningoutsourcing and Information Technology Industry . The leaders of the IT/ITES world have set up or are setting up their centers inIndia . Estimated demand from IT/ITES sector alone is expectedto be 1 5 0mn sq .ft. of space across the major cities by 2010 .

In residential sector there is housing shortage of 19 .4 million unitsout of which 6. 7 million are in urban India .

The increase in purchasing power and exposure to organized retail formats has redefined theconsumption pattern . As a result the country has experienced mushrooming of retail projectsacross the cities .

The main growth thrust is coming due to favorable demographics, increasing purchasingpower, existence of customer friendly banks & housing finance companies, professionalism inreal estate and favorable reforms initiated by the government to attract global investors .

Foreign Investment (FDI) in Real Estate Sectorsin India

F oreign Direct Investment is encouraged and permitted, subject to certainconditions, in the following real estate sectors in India:

y Hotel Development y Tourism y Hospitality y Township development y Developing Commercial Real Estate y Built-up infrastructure y Housing and construction projects y Building Resorts y Building Hospitals

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Indian Transfer of Property Act

The Transfer of Property Act governs the transfer of property by various

means . Sales, mortgages (other than by way of deposit of title deeds) andexchanges of immovable property are required to be registered by virtue of theTransfer of Property Act . Therefore, all the above documents must be in writingand registered .

Indian Registration Act, 1908

The purpose of this Act is the conservation of evidence, assurances, title,publication of documents and prevention of fraud . It details the formalities for registering an instrument . Instruments which require mandatory registration

include:

(a) Instruments of gift of immovable property;(b) other non-testamentary instruments which purport or operate to create,declare, assign, limit or extinguish, whether in present or in future, any right,title or interest, whether vested or contingent, to or in immovable property;(c) non-testamentary instruments which acknowledge the receipt or payment of any consideration on account of instruments in (2) above . (d) leases of immovable property from year to year, or for any term exceedingone year, or reserving a yearly rent

Sales, mortgages (other than by way of deposit of title deeds) and exchangesof immovable property are required to be registered by virtue of the Transfer of Property Act . Evidently, therefore, all the above documents have to be inwriting.

Section 17 of the Act provides for optional registration . An unregistereddocument will not affect the property comprised in it, nor be received asevidence of any transaction affecting such property (except as evidence of acontract in a suit for specific performance or as evidence of part-performanceunder the Transfer of Property Act or as collateral), unless it has been

registered . Thus the doctrine of part performance dealt with under Section 5 3 A of the Transfer of Property Act and the provision of Section 4 9 of theRegistration Act (which provide that an unregistered document cannot beadmissible as evidence in a court of law except as secondary evidence under the Indian Evidence Act) together protect the buyer in possession of anunregistered sale deed and cannot be dispossessed . The net effect has been



that a large number of property transactions have been accomplished withoutproper registration . F urther other instruments such as Agreement to Sell,General Power of Attorney and Will have been indiscriminately used to effect

change of ownership . Therefore, investors in real estate have to be careful intheir due diligence .

Indian Urban Land ( C eiling And Reg u lation) Act, 1976

This legislation fixed a ceiling on the vacant urban land that a 'person' in urbanagglomerations can acquire and hold . A person is defined to include anindividual, a family, a firm, a company, or an association or body of individuals,

whether incorporated or not . This ceiling limit ranges from 5 00-2,000 squaremeters . Excess vacant land is either to be surrendered to the Competent Authority appointed under the Act for a small compensation, or to bedeveloped by its holder only for specified purposes . The Act provides for appropriate documents to show that the provisions of this Act are not attractedor should be produced to the Registering officer before registering instrumentscompulsorily registrable under the Registration Act .

This legislation was repealed by the federal government in 1999 . The Repeal Act, however, shall not affect the vesting of the vacant land, which has alreadybeen taken possession by the State Government or any person duly

authorized by the State Government in this regard under the provisions of Urban Land Act . The repeal of the Act, it is believed, has eliminated the largeamount of litigation and released huge chunks of land into the market . However the repeal of the Act has not been carried out in all states . Initially therepeal Act was applicable in Haryana, Punjab and all the Union Territories . Subsequently, it has been adopted by the State Governments of Uttar Pradesh, Gujarat, Karnataka, Madhya Pradesh and Rajasthan . AndhraPradesh, Assam, Bihar, Maharashtra, Orissa and West Bengal have notadopted the Repeal Act so far .

Stamp Du

ty

Stamp duty is required to be paid on all documents which are registered andthe rate varies from state to state . With stamp duty rates of 13 per cent inDelhi, 1 4.5 per cent in Uttar Pradesh and 12 .5 per cent in Haryana, India has



perhaps one of the highest levels of stamp duty . Some states even havedouble stamp incidence, first on land and then on its development .

Rent C ontrol Acts

Rent legislation in India has been in existence for a very long time . Rentcontrol by the government initially came as a temporary measure to protect theexploitation of tenants by landlords after the Second World War . However these rent control acts became almost a permanent feature . Rent legislationprovides payment of fair rent to landlords and protection of tenants againsteviction . Besides, it effectively allows the tenant to alienate rented property .

Property Tax

Property tax is a levy charged by the municipal authorities for the upkeep of basic civic services in the city . In India it is the owners of property who areliable for the payment of municipal taxes . Generally, the property tax is leviedon the basis of reasonable rent at which the property might be let from year toyear . The reasonable rent can be actual rent if it is found to be fair andreasonable . In the case of properties not rented, the rental value is to be

estimated on the basis of letting rates in the locality .

Foreign F u nds Investors in India: RBI p u ts c u rbson FII entry in real estate IPOs

The foreign portfolio investment in real estate in India has come under

regulatory glare . The Reserve Bank of India (RBI) has thrown in a caveat onF II subscription to public equity offerings by real estate companies . The RBI isof the opinion that such firms can sell their initial or follow-on public stockofferings to F IIs, only if the real estate projects being developed fulfill theconditions for foreign direct investment . The central bank, which has the lastword on cross-border fund inflow, has indicated this to investment bankers and



advisors of real estate firms planning to tap the capital market . One of thecompanies planning an issuance has already dropped the idea of marketingshares of its forthcoming equity issue to F IIs; while another firm has positioned

itself as a construction company (one which doesn't own the land as distinctfrom a real estate company) to sidestep the restriction . The issue has boileddown to subtle differences between F II and F DI.

The facts are: real estate projects canattract F DI up to 100 percent, subject tocertain conditions which were spelt outby the government in April '0 5. Theseconditions include minimum area to bedeveloped, minimum capitalization, norepatriation of original investment

before 3 years and ban on sell of under-developed plots . If a projectmeets these conditions, the concernedcompany can attract F II subscription upto 2 4 percent equity, and later revise itto the sectoral F DI cap, which is 100percent in this case .

However, for a company not willing to meet the stringent project conditions, theF II route could be used to overcome the rules and bring in foreign investment .

All the company needs to do is get F IIs that are registered with SEBI to invest

in the IPO.

This is what the RBI is possibly objecting to.

Interestingly, theregulator is not averse to F IIs buying shares in the secondary market . In other words, even though F IIs cannot subscribe to a real estate firm's IPO (if theproject concerned is non- F DI compliant), they can buy shares through aregistered broker once the company gets listed .

Madaan & Co . believes that further clarifications are required by the RBI inorder to clear the contradictions in various policies of the Government of India .

The foreign Investors sho u ld also be caref u l in investing in real estate inIndia. A proper legal advice is highly recommended before investing inthis sector. In a n u tshell: INVESTORS BE WISE

For More details see FDI in India Sector wise Guide

A proper legal adviseregarding corporate planning andtax planning should be sought by

foreign investors the real estatesector in India . _____****_____



SEBI Norms for Real Estate M u tu al F u nds

Securities and Exchange Board of India (SEBI) has issued guidelines on realestate mutual funds (REM F s) . Once these investment vehicles see the light of the day, small investors will be able to participate in, and profit from, the realestate growth story .

The way the policy is evolving in India, initially REM F s will be allowed to investin listed entities only . The next step will be to set up real estate investmenttrusts (REITs), which will be allowed to invest directly in real estate assets . This graduated approach is being followed to allow time for the market tomature, and so that public money is not put to undue risk ..

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