Track2Realty-Agencies: The Federation of Indian Chambers of Commerce and Industry (FICCI) has demanded industry status to be granted to real estate sector in the upcoming Budget 2013-14.
Track2Realty: The past decade has witnessed a period of economic transformation of the Indian real estate industry. After the global financial crisis, the pace at which the industry has bounced back is magnificent. Our real estate ecosystem typically comprises of architects, developers, Government & regulatory authorities, financial institutions, private equity players, other funding agencies, brokers, property consultants and of course most importantly the buyers.
Track2Realty Exclusive: Slow economic growth affecting housing market
The recent Indian economic growth has been hampered by several domestic and global factors, resulting in the GDP growth plunging to 3 years low at 5.3% in 2QFY13[1]. Factors such as weak global economy, high interest rates, high inflation, high fiscal deficit, and lack of reforms were the primary reason affecting the GDP growth.
Track2Realty Exclusive: Come budget and the real estate in the last few years seems to have been repeating the rhetoric of industry status. As a result, year after year it has been a case of realty proposes and the Finance Minister disposes. However, the sector on the eve of 2013-14 makes a strategic shift to be more realistic with its causes and concerns.
Track2Realty: Omaxe Ltd. has launched a Fixed Deposit (FD) Scheme that pays an annualized yield of 15.07% over three years. The company expects to raise Rs 250 crore through this scheme by the end of next financial year.
Track2Realty Exclusive: The real estate clan in the NCR region has come a long way ahead particularly with the housing sector most likely to witness a notable recovery, by the second half of 2013. The rising prices and high interest rates of the RBI have caused a drastic slash in sales. Adverse market dynamics such as high debt, piled up inventory and depressed market conditions took the sector for a rather harsh toll.
Track2Realty-Agencies: After fashion weeks and wedding exhibitions, India is now set to welcome a first-of-its-kind Real Estate Luxury Show (RLS India 2013), which will serve as a platform for showcasing the properties of the country’s real estate giants.
Track2Realty Exclusive: Land as the major input of real estate business is still attracting a premium though land assembling at the cost of project execution has backfired on the fortunes of many realty companies in India.
Track2Realty Exclusive-Yearly Analysis: DLF is raising funds by selling non-core assets, Godrej Properties raised funds through a QIP and HDIL is generating funds by selling transfer of development rights (TDR) and floor space index (FSI) — all to lighten the debt burden. Earlier, companies were building land banks and were rewarded for it in the stock market. Now, they are conserving cash to payback creditors.
Track2Realty-Agencies: The Finance Ministry has expressed the view that the Reserve Bank should allow real estate companies and broking firms to set up banks as adequate safeguards will be there to prevent exposure of promoters to related entities.