Pranay Vakil: As a developer if someone wants to come and tell you Atul that instead of borrowing at 11.5 per cent or 12 per cent, whatever the rate lender gives you, you will get this money at 3 per cent, how do you react?
Ravi Sinha: But if we go by that yardstick, my question is that in the major real estate markets across India do we have that kind of projects where ECB would be viable?
Track2Realty Exclusive: For quite some time the developers in Mumbai were making pitch for the review of FSI in the city which they termed as archaic. Their grouse has not been lacking the merit also. Facts speak for themselves. In 1964, FSI was introduced and set at 4.5 in Mumbai.
Ravi Sinha: Even in the Indian context, if you look at the places like Gurgaon. Had there been no infrastructure no one would be living over there and that is how NCR has evolved as a case study in satellite towns. But the disconnect is with the funding.
Track2Relty-Agencies: Dubai-based private developer DAMAC Properties has said it is launching phase two of a $1 billion project of luxury hotel and serviced residences to Indian investors, following a sell-out event in Dubai.
Track2Realty-Agencies: Indian expatriates are among the top investors in Dubai’s property market, which is expected to grow 10-12 percent this year, company officials and analysts say.
Pranay Vakil: Good afternoon everyone. We are indeed sitting in one of the most interesting market of real estate when I feel the developer is confused, the buyer is confused and the government is confused.
Jhumur Ghosh: The most confused.
Pranay Vakil: You said it, I didn’t. The buyer is confused because every day he is reading in the newspapers that prices are going down, but when he goes out to buy a house he finds that prices have actually gone up. I think the lender is confused because he is lending money and the developer is making all kinds of commitment and things are not working out the way it was promised and he is unable to understand why it is not happening.
Track2Realty-Agencies: The Union Cabinet today deferred considering a draft law to set up a regulator for the real estate sector with provisions for jail term for the developer for putting out misleading advertisements about projects.
Track2Realty Exclusive: Direct investment in case of leveraged returns has to take into account carrying cost (interest cost) and in case of non leveraged returns should consider opportunity cost.
Track2Realty-Agencies: The proposed bill to regulate the real estate sector seeks to establish a transparent system of delivery and would not hamper the growth of the sector, a top government official has said.