Track2Realty Exclusive: A McKinsey report to the Government of India on cost of approval had clearly pointed out that the costs incurred on account of various approvals could constitute anything up to 40 per cent of the sale value. Such is the enormity of the problem of approvals and that the challenge of negativity that we suffer from.
Track2Realty Exclusive: At a time when the critics of Mumbai real estate were busy with the conspiracy theory and prophets of doomsday were writing the obituary, with the report suggesting the city market sitting over 48 months of inventory lending credence to such conspiracy theory, there has been an under-current in the Mumbai property market where some of the smart developers were devising new strategies to beat the slowdown.
Track2Realty Exclusive: When it comes to the esteemed idea of real estate, industry stalwarts can boast that in this country, real estate can match up to any investment. As an investor though, you would require a little more convincing. So what should you look at? The answer stems to a more personal equation between liquidity, appreciation, other income, and probable growth.
Track2Realty: Real estate has expressed disappointment over the decision to hike key policy rate by the Reserve Bank of India (RBI). The developers and analysts say this would lead to increase in finance cost and also affect housing demand during the festive season.
Track2Realty Exclusive: An affordable housing project should be located within reasonable distances from workplaces and should be connected adequately through public transport.
Track2Realty: Citing the inordinate delay in obtaining approvals for projects that is stalling growth of the real estate sector and also the economy of the country, Lalit Kumar Jain, Chairman CREDAI and CMD, Kumar Urban development Ltd, urged the Union Government to form a high power realty committee to accelerate big ticket realty projects worth between Rs.200 Cr and Rs.1000 Cr.
Track2Realty: The real estate sector has been hoping against hope that the rates will be marginally cut in order to keep the sentiments bullish. Reports of foreign funds warming up and the substantial contribution of the sector, 6 plus to the Indian GDP was also being seen as an indication of why the policies would be eased.
Track2Realty Exclusive: The multiplier effect of real estate sector and its capacity for generating employment is well recognized. It is estimated that the sector contributes close to 6 per cent to the gross domestic product (GDP) of India and is estimated to be growing at 20 per cent per annum.
Track2Realty Exclusive: The TINA factor also poses the biggest risk for investors in real estate at current level. The fact that real estate prices are all time high at a time when the economy is faltering with GDP growth coming off from a 8.4 per cent in 2010-11 to level of 6.5 per cent and below forecast ahead should ring a warning bell for investors.
Track2Realty: DTZ has expanded its full service real estate operations in India by investing in the upcoming hub of real estate in the south of the country, Chennai. The announcement came with the inauguration of a new client service office in the city. This office will be a part of DTZ’s Southern operations and will also serve the peripheral markets of Kochi and Coimbatore.