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.
Track2Realty: Today there is no entry barrier in the sector for any fly-by-night operator with black money to back his initial pomp and show to lure customers. But for a serious start-up there are many perils that plague. Problem is all the voices are being raised to ease only a section of the developers with often myopic vision with regard to the future of the sector.
Track2Realty: India Ratings has revised its outlook for the Indian real estate sector to negative to stable for 2013, from negative in 2012. Demand remains subdued and EBITDA margins low, leading to weak credit metrics for companies in the sector. The agency however sees signs of improvement, in terms of stability of margins and the easing of liquidity pressures, with free cash flows turning positive since H2FY12.
Track2Realty-Agencies: The government is likely to come up with a Bill in the forthcoming Budget Session of the Parliament to regulate the real estate sector, Housing Minister Ajay Maken said on Wednesday, Dec 9.
Track2Realty: New real estate launches in 2012 declined by 30% in 2012, versus a 7% decline seen in 2011. Slowdown in bank credit to real estate amid economic slowdown was attributed to the stagnancy in new ventures, a Knight Frank report said.
Track2Realty: The government is working on a proposal to allow Real Estate Investment Trusts (REITs) to participate in the country’s rental housing market.
Track2Realty-Agencies: The Reserve Bank of India has allowed real estate developers and housing finance companies to raise funds overseas for low-cost housing projects.
Track2Realty: Uncertainties prevailing in the real estate market since the past few years have resulted in the country no longer being an attractive investment destination for international investors, says a recent survey.
Track2Realty: India’s top 25 real estate companies have reported 4% year-on-year decline in cumulative revenues of Rs 67.44 billion in the second quarter ended September 30, another quarter highlighting the slump in the sector, a Knight Frank India report said.
Track2Realty: The finance ministry is reportedly working on the modalities to revive the real estate sector. According to ministry sources, the move is aimed to ensure that stalled projects get bank sector financing. The move, which is expected to help revive growth, is likely to be decided over the coming weeks.