Track2Realty-Agencies: Ironic it may sound, but the developers are getting hurt by allegations of corruption in the realty sector. Confederation of Real Estate Developers’ Association of India (CREDAI) has asked its about 10,000 members not to pay bribe to officials for getting project clearance.
The Karnataka Government is contemplating to introduce a single window clearance system for the construction of houses and complexes in the state, taking into consideration the demand raised by the Confederation of Real Estate Developers’ Association of India (CREDAI).
CREDAI has reacted sharply over the Finance Minister’s asking chiefs of public sector banks to put pressure on real estate developers to lower property prices and not hold invetory. CREDAI has said in a release that instead of asking realtors to download unsold stock at discounted prices, the Union Finance Minister P Chidambaram should take immediate steps to boost to housing stock supply through special incentives to the affordable segment.
After Track2Realty reported that how real estate developers are blatantly violating the ban on pre-launch schemes as advised by the Supreme Court, the Haryana Government has now decided to crack down against the erring realty companies. Many established realty companies and new players in the fray are illegally offering residential projects before acquiring the required license, and in some cases, even without a land in blatant violation of warnings by the authority.
Shares in DLF, India’s biggest real estate developer, traded higher in-line with the broader BSE realty index Tuesday, Aug 7, morning. At 11 a.m., the stock traded 1.3 per cent higher at Rs 214 on the BSE. The shares, up 15.4 per cent this year, are lagging a near-21 percent gain in the real estate index.
It is not just real estate developers and national & international hospitality majors, but several high net worth individuals and business groups from sectors like auto, petroleum and telecom have grabbed hospitality assets, marking a strategic trend shift. Track2Realty analyses how opportunities and roadblocks co-exist in the hospitality, thus making it an interesting sector where there is room for everyone to grow.
The recent announcement of a memorandum of understanding (MoU) between the Confederation of Real Estate Developers Association of India (CREDAI) and the Karnataka State Fire and Emergency Services (KSFES) Department on fire safety certification has raised quite a few eyebrows in the real estate industry.
While buying a house majority of the Indians have now matured to pay for ready-to-move property than a castle in the air. No wonder, despite the high appreciation potential, the new launched projects have few takers and there is hardly any market for a pre-launch offer. Thanks to the poor delivery of the real estate developers, unmet commitments and execution risk involved, at least the end users are not interested in new launches anymore.
Bangalore-based real estate developer Puravankara Projects net profit rose 173 per cent to Rs 46.05 crore during the fourth quarter of the last fiscal.
Last year, net profit stood at Rs 20.89 crore during the corresponding quarter.
India’s largest real estate developer DLF Ltd rose 3.2 percent to 188.10 rupees after Goldman Sachs upgraded its rating on the stock to “buy” from “neutral” and raised its 12-month target price to 264 rupees from 252 rupees.