16 Sep, 2010, 06.40PM IST
NEW DELHI: India is ranked as the fifth most attractive destination for future real estate investments in a list topped by China, according to a latest report of FCCI and Ernst and Young.
In the list of top nine attractive destination for real estate investments, China is followed by the US, UK and Singapore.
“India ranks fifth on the overall index, as it scores better on the country economy development index and the real estate market index, but fairly low on the regulatory index,” the report released here said.
As per the report, there is no single clearance system for approval of investment in real estate sector in India. “In addition, the approval system is not time-bound and take up to two years,” it said. Read more.
ORGANISED SECTOR SET TO CREATE OVER 3 LAKH JOBS IN JULY-SEP
Bangalore | The Economic Times
With optimism across sectors and services, the organised sector is set to create about 3,20,400 jobs between July and September, revealed the latest results of human resource service provider Ma Foi Randstad’s Employment Trends Survey, 2010. Sectors such as healthcare, hospitality, real estate and construction, IT&ITES, education, training and consultancy put together are expected to contribute to the tune of 2,27,000 of these jobs.
For the period July to September, Delhi and NCR are projected to add 19,620 jobs, followed by Mumbai, Chennai, Bangalore, Kolkata and Hyderabad. Expected salary increase for the period was seen to be at its highest in Bangalore at 4.9 percent, followed by 3.5 percent in both Delhi and Pune and 3.2 percent in Hyderabad, Chennai and Ahmedabad. Read more.
Relax FDI norms to allow investors to exit early: FICCI, E&Y
New Delhi | The Economic Times
The creation of a regulatory body for real estate, granting of infrastructure status to housing, liberal policies for real estate mutual funds and investment trusts, change in foreign direct investment (FDI) norms and easier approval process are key requirements to spur growth in India’s realty sector, said a joint study by industry body Ficci and consulting firm Ernst & Young.
The study said of nine countries – India, China, USA, UK, Germany, Singapore, UAE, Brazil and Russia – the most economically proactive and politically stable nations are those likely to hold the most significant potential for future investment in real estate. It also advocated the cause for a regulatory body for the real estate sector in the country. Read more.
MUMBAI TO GET INDIA’S FIRST MONORAIL IN TWO WEEKS
Mumbai | The Economic Times
Indicating that the prestigious Mumbai monorail project is on schedule, a top official said here on Wednesday that six trains would ply in the first phase from later this month. Six trains, each with four air-conditioned cars, will be deployed on the nine-km-long Chembur-Wadala sector in eastern Mumbai, which is around 60 percent complete, said Mumbai Metropolitan Region Development Authority (MMRDA) Joint Commissioner Ashwini Bhide. “The civil work and most of the system including communications and signalling for phase one will be in place by December,” Bhide said here Wednesday evening. Read more.
‘India may face shortage of 26 mn houses by 2012’
16 Sep, 2010, 06.31PM IST
NEW DELHI: India will face shortage of over 26 million houses by 2012, which would lead to spurt in housing prices as demand-supply gap widens amid rising purchasing power of the middle class people, a consultancy firm has said.
“With India back on a high growth trajectory, demand for commercial and residential space is likely to witness an upward trend,” consultancy firm Ernst and Young said in a report.
Demand for residential property is rising sharply because of growing young working population, increasing urbanisation, declining household size resulting in more nuclear families with growing household income and improved availability of loans. Read more.
NRI Real Estate Investment
Real estate investment has always been a favorite asset class for Indians, and that love does not wane even when he becomes a non-resident Indian (NRI). The reasons are not too far to seek: the NRI understands the lay of the land, and at the back of his mind, the desire to own property back home, if he needs to retrace his steps to his homeland, remains strong.
Of course, attractive growth rates in property prices and the seeming invincibility of this asset class (you rarely seem to make a loss, since you are willing to hold for long periods of time) are a couple of other strong reasons for this kind of investment. The investment in an apartment starts depreciating virtually the moment it is completed, including cement and steel that are subject to wear and tear. Read more.