The Reserve Bank of India has asked banks to put in place an escrow mechanism that can ring fence their loans to real estate firms and keep a closer tab on the end use of funds. The RBI has been looking to tighten the lending norms for the real estate sector after last year’s bribery-for-loan scam. The scandal also exposed several unethical practices, such as diversion of funds.
While the Indian realtors have often cribbed on the issue of under representation of the sector in respective budget, they have seldom admitted the fact that the real estate has been a divided house over their wants and needs. Navin M Raheja, MD, Raheja Developers suggests a way out and asserts that tax sops given to real estate will actually increase the government revenue.
While some reports have predicted correction in Mumbai realty market, Babulal Varma, Managing Director of Omkar Realtors & Developers assert that rising demand and low availability of ready-inventory will make Mumbai the most sought-after property market in 2011.
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.
Baring Private Equity Partners India (BPEP), along with some of its international investors, is likely to invest about $75 million, or approximately Rs 350 crore, in the Bangalore-based Century Real Estate. Baring’s individual commitment to the deal is around $53 million, while overseas investors who are backing the fund may bring in a little over $20 million in additional investment.
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.
Real Estate Development, Investment and Advisory firm Netz Realty is launching townships near Mumbai and Bangalore. The Singapore based Netz Capital backed firm Netz Realty is launching Green Township projects on the model of self sustainable living for the 100 acres plus projects being planned near Mumbai and Bangalore.
Jones Lang LaSalle today announced it has launched a website – Lease Accounting Changes, to deliver leading-edge strategies, tools, and information to help corporations worldwide navigate the upcoming changes in global lease accounting treatment.
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.
If 2008 was the year of shock, 2009 the year of discovery & introspection and 2010 the follow-up experiment; the year 2011 promises to be the year of comfort level for the Indian real estate sector. It seems the turmoil of the last couple of years has made everybody come out intelligent–investors, developers, bankers and end users.