It’s Morning in India

Thomas L. Friedman
The New York Times

What is most striking to me being in India this week, though, is how many Indians, young and old, expressed their concerns that America also seems at times to be running away from the world it invented and that India is adopting.

With President Obama scheduled to come here next week, at a time when more than a few U.S. politicians are loudly denouncing immigration reforms, free trade expansion and outsourcing, more than a few Indian business leaders want to ask the president: “What’s up with that?” Didn’t America export to the world all the technologies and free market dogmas that created this increasingly flat, global economic playing field — and now you’re turning against them?

Gurgaon: Truly, a new Millenium city

TRULY, A NEW MILLENNIUM CITY
Hindustan Times (Chandigarh edition)

Infrastructure initiatives planned as per the new approved Master Plan 2021 are prompting developers to explore new locations in Gurgaon for residential development. According to realty consultancy Knight Frank, approximately 26,500 units, equating to 58.23 mn.sq.ft. of fresh supply will be infused into the market till 2011.

Gurgaon will have the maximum share of about 29 per cent of supply across the NCR by 2011. A major portion of its fresh supply is in locations like Golf Course Road, Extended Golf Course Road, Sohna Road, newly planned sectors on NH 8, Pataudi Road and sectors 37 C and D, 108 and 109. Projects from prominent Grade A developers like DLF, Unitech, Ramprastha Group, Raheja Group, Ambience Developer and Infrastructure Pvt. Ltd., Tulip, Parsvnath, Emaar MGF, Bestech Group, ERA Group and BPTP are part of the new supply. This new supply will contain a mix of both high-end premium and low-cost affordable homes.

THE UMBILICAL CORD
Vandana Ramnani
Hindustan Times (Delhi edition)

According to a recent Cushman & Wakefield India Real Estate Investment report titled `Riding the Wave ­ Re-emergence of Indian realty sector’, after NCR and Mumbai, Pune is set to witness the highest demand in the residential sector of 270,000 units during 2010-2014. This growth in Pune can be attributed not only to the rapidly growing city population but also improvements in the economic environment ­ growth in both IT and other manufacturing sectors in the city.

“Noida may still take time as the commercial and corporate movement is yet to achieve critical mass. Besides, Noida is close to Delhi and connectivity is (better). The residential uptake also depends on the distance from the main city, infrastructure and easy connectivity,“ points out Roy. “In Gurgaon, there is a huge critical mass of office goers and with the area becoming commutable, there are enough offices and enough takers for residential spaces. However, if Gurgaon becomes unaffordable in the long run, Noida is likely to do well,“ says Abhishek Kiran Gupta, head of research and REIS, Jones Lang LaSalle.

According to data from real estate adviser DTZ, the occupied office stock in Gurgaon will grow at the rate of 66% in the next three years and residential stock at the rate of 75% ­ though residential growth is slightly higher than that for office space. In Noida, however, occupied office space will grow at the rate of 70% and residential at 180%. The residential segment will far exceed the supply of office space and there could be excessive supply by 2013.

TAX REVENUE PERKS UP IN HARYANA
Navneet Sharma, Chandigarh, November 1, 2010
Hindustan Times (Chandigarh edition)

Tax revenues have started looking up in Haryana again with the Value Added Tax (VAT) mop-up growing at over 25 percent in the April-August period of the current financial year. The government seems optimistic about achieving its tax collection target of Rs 16,469 crore for the fiscal. The revenue collections had remained lackluster in the previous two financial years due to downturn in the economy. While there was a deceleration in the growth of VAT, collections from duty on stamps and registration had slumped on account of stagnation in demand in the realty sector.

Reflecting revival in the manufacturing sector, VAT and Central Sales Tax collections, which account for roughly 40 percent of the state’s total revenue receipts, increased to Rs 4,602 crore in the first five months of the current fiscal as against Rs 3,698 crore during the same period last year. In September, the sales tax numbers are even better.
(Page 5)

Real Estate Sector

DELHI NCR RESIDENTIAL MARKET PERKS UP
Moumita Bakshi Chatterjee, October 31, 2010
The Hindu Business Line

The capital values in Delhi NCR’s high-end and mid-segment residential market continued to move up during the third quarter of 2010, aided by enhanced metro connectivity, the infrastructure facelift coinciding with the recent Commonwealth Games, and strengthening of overall business sentiment. The latest residential market report of global property consultant Cushman and Wakefield (C&W) reveals that capital values in the two categories, the high end and the mid range, appreciated in the 2-9 percent range compared with three months ago.

Vineet Singh, Business Head of 99acres.com, a property portal for buying, renting and selling of residential and commercial properties, points out that there has been a clear upward price trend on a quarterly basis in the Delhi and NCR region. “South Delhi, in particular, has been on a upward trend for last 15 months, given the limited supply there and the fact that housing stock is available only by the way of redevelopment or resale,” he says.

WILL RATINGS WORK FOR REAL ESTATE?
Sachin Sandhir
Hindustan Times (Delhi edition)

CRISIL star ratings’ for realty projects have been launched as an initiative to introduce an objective benchmarking and transparency mechanism to an unregulated and fragmented sector. In a market where customers have to base their purchase decisions on gut-feel or broker advice, these ratings will act as an analytical tool in helping us make informed decisions while investing in a particular project. Since the ratings are based on important parameters such as structural/construction quality, legal documentation, financial planning, project innovation, developer’s background etc., they are likely to serve as an overall performance indicator for projects.

INVESTORS BACK IN REAL ESTATE
Prabhakar Sinha
The Times of India (Delhi edition)

The real estate market is back in the reckoning as an investment asset and investors have started booking into new projects. As India’s growth story is becoming more and more entrenched, expectations are up for an increase in future real estate demand. Predictably, all this has enticed investors and they are ready to take risks to invest in the sector.

“Like gold, real estate tends to retain its intrinsic value. On the positive side, unlike gold, it is possible to earn a regular income on it. Depending upon various economic factors, a property owner can increase rent in times of high inflation. Also, real estate is always a good investment option because of the possibility of capital appreciation,” says Shobhit Agarwal, joint MD (capital markets), Jones Lang LaSalle Meghraj.

Economy: Jobs in Q4 and an Optimistic future lies ahead

INDIA MAY CREATE 230,000 JOBS IN Q4
New Delhi, November 1, 2010
Mint

Six sectors, including healthcare and realty, are expected to create a whopping 230,000 jobs in India in the last three months of 2010, according to global consultancy Ernst & Young. Boosted by strong domestic economic recovery and improved global sentiment, most local industries are expected to increase their headcount in the coming months, E&Y said.

As many as 230,000 jobs are estimated to be created in India in the fourth quarter of 2010 by six sectors, Ernst & Young’s Partner, said national head and Emeia Leader (People & Organisation) N S Rajan. The six sectors are healthcare, real estate, IT/ITeS, education & training, manufacturing and Banking, Financial Services and Insurance (BFSI). Among them, healthcare industry alone is projected to generate 60,000 jobs in fourth quarter of 2010, Rajan said. Real estate and IT/ITes sector, each are expected to create 50,000 jobs.

Infrastructure: Airport Express and Metro Expansion

AIRPORT EXPRESS LINE LIKELY TO START SOON
Subhendu Ray, New Delhi, November 1, 2010
Hindustan Times

The much-awaited Airport Express line, which failed to meet the Commonwealth Games deadline due to technical shortcomings, may soon become operational. A team of technical staff of Delhi Metro Rail Corporation (DMRC) inspected the line on Thursday and found it fit for operation. Mangu Singh, director (works), DMRC, said: “We have examined all aspects of the service and found it fit to start. Reliance Infrastructure just needs to acquire fire safety clearance. Immediately after this we will invite Commissioner of Metro Railway Safety to inspect and give safety clearance.” Reliance Infrastructure was responsible for getting the line ready.

The commissioner, who had inspected this line on September 27 and 28, had found certain technical deficiencies such as a signalling problem and had therefore, not given the safety clearance.

DMRC SUGGESTS SIX NEW LINES, GOVT 2 MORE
Sweta Dutta, New Delhi, November 1, 2010
The Indian Express

Delhi is expected to get additional 108 km of Metro lines in Phase III with the government suggesting two more lines to the six already planned. While the six new lines will be around 69 km long, the two lines suggested by Delhi government will be 39 km long. The Delhi Metro will now start preparing detailed projects on the two new suggested lines.

The government has suggested an Outer Ring Road route connecting Badli with Sector 18 in Noida through Uttam Nagar, Dhaula Kuan and GK II. Since this line is a completely new proposal, the DMRC will have to prepare a detailed project report of the route.

Health Care Sector

NOVA TO INVEST RS 1,000 CRORE TO SET UP 100 CENTRES BY 2014
New Delhi, November 1, 2010
The Economic Times

Nova Medical Centres, a specialised day care surgery centre chain, plans to invest nearly Rs 1,000 crore for setting up 100 centers across the country by 2014. In the first phase, the company plans to open 25 day care centres across the country at an investment of Rs 250 crore, in the next two years.

“We have plans to set up nearly 100 day care centres in the next four years. It will entail a total investment of up to Rs 1,000 crore. Twenty five centres, with an investment of Rs 250 crore will be set up in the next two years,” said Nova Medical Centres Chairman Suresh Soni.

The company, which has tied up with Max Healthcare Institute in the national capital region (NCR), plans to go solo in other parts of the country.

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