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.
Despite buyers’ expectations of a likely fall in city property prices, this possibility seems limited as developers continue to hold on to their prices across sub-markets on the back of the DCR amendment. This policy, along with the increase in construction costs, has led to greater pressure on developers’ margins. Post the new DCR, the saleable areas are expected to reduce and carpet areas are likely to increase. It is interesting to note that while there have, in fact, been marginal price increases across many projects in MMR, registration data reflects that absorption levels have also increased.
Does it reflect a disconnect in the luxury housing where demand of high-end units is 16% but supply is as high as 80%? “Not Really.” says Anmol Haval DGM, Sales & Marketing of City Corporation Limited (CCL) which has launched ‘Sweet Water Villas’, an exclusive project of limited edition villas at ‘Amanora’, the first integrated township being developed under the special township policy of Government of Maharashtra.
Indian realty firm Synergy Property Development Services Ltd bagged, through international bidding, a $153-million township development project in the central African country of Rwanda.
Various issues plaguing the real estate sector will be discussed at a conclave to be organised here on Friday by Confederation of Indian Industries (CII). The Real Estate Conclave 2012 will be inaugurated by Maharashtra Minister for Housing Sachin Ahir, CII said in a statement.
Sahara India today announced it would develop a new city near Dhaka called Notun Dhaka and has signed agreement with the Bangladesh government to invest in housing sector of neighbouring nation.
The government has said “no specific instance” of flow of terror funds into the real estate sector has come to its notice. “As per the current assessment of revenue intelligence agencies…no specific instance of flow of terror funds into the real estate sector has been found,” Minister of State for Finance S S Palanimanickam said in a written reply in the Lok Sabha. However, he said, “investigations by the Income Tax Department reveal unaccounted or undisclosed income or assets in various sectors of the economy, including real estate.”
The world’s housing downturn is gathering momentum, according to the latest world-wide survey of house price indices prepared by the Global Property Guide.
When the Reserve bank of India was announcing the CRR rate cut by 50 base points, the house wife Sugnadha Dubey, glued to TV news channels, couldn’t resist the temptation to call up her husband to know whether the EMI burden on this middle class home owner is going to ease out from next month. With no background of the world of financial jargon, her husband could only assure her with a wishful thinking.
In the wake of large scale criticism and the realtors’ protest against repo rate hike, the Government raised the housing loan ceiling for availing one per cent interest subsidy to Rs.15 lakh from existing Rs.10 lakh.