Century Real Estate Holdings, the realty development arm of three-decade old Bangalore-based Century Group, is looking to raise Rs 700 crore through private equity players in three tranches. The company during the past four years have been focusing on development of projects, is understood to be effecting this deal at the holding company level.
Through a hailstorm of bouquets, brickbats, controversies and triumphs, the Indian real estate sector has always been one of the mainstays of the country’s economy. At some level, every Indian is connected with it; in some way or the other, it affects every citizen of this country.
The housing and real estate sector in India witnessed foreign direct investment (FDI) of $2.8 billion in the fiscal year (April-March) 2009-10, according to Indian Department of Industrial Policy and Promotion. The statistics made available to the media at the India Home property exhibition, which concluded in Dubai on Sunday, revealed that total NRI FDI inflows through the period April-December 2009-10 stood at $320.05 million.
An increase in lending rates is almost inevitable, considering the high need to curb inflation. On its own, an increase in lending rates would probably not have a very significant effect on the market. However, the fact is that there are already a number of negatives such as overpricing at play in the residential real estate sectors of large cities like Mumbai and Delhi.
Shares in Indiabulls Real Estate rose as much as 4 per cent on Tuesday morning, while those of group firm Indiabulls Power rose more than 3.5 per cent, after the real estate firm said it received board approval to restructure its businesses.
CB Richard Ellis, the US-listed property services firm, has emerged as favourite to acquire the majority of ING’s real estate group in deal worth one billion euro (USD 1.35 billion) to create the world’s largest property funds business, says a media report.
Pune is virtually unrecognizable from the sleepy, laid-back city it was a few decades ago. There were no signs of any significant real estate action in the erstwhile Punyanagari before that. Today, however, Pune numbers in the Top Seven property hotspots within the country.
It is an established fact that scheduled infrastructure projects tend to increase the value of properties in the adjoining areas. This occurs because the infrastructure project becomes a part of USP for the developers or property owners. There have been instances where property prices have increased 50-70% from the announcement of an infrastructure initiative until the operational phase.
Demand for mid-segment residential units in Mumbai is far greater than available and future supply, therefore growth is expected in 2011. In the industrial sector, cities such as Ahmedabad, Vadodara and other port cities in Gujarat are seeing the highest growth.
Finance Minister Pranab Mukherjee has urged the real estate sector to be sensitive to the purchasing power of the poor while pricing their housing units. Speaking at the 10th national convention of the Confederation of Real Estate developers” Association of India (CREDAI) in New Delhi on Dec 16, Mukherjee also called for greater integrity in development, construction and marketing or real estate business.