INDIAN REAL ESTATE POSTS FASTEST PICKUP IN Q3: SURVEY
The Financial Express
According to the latest RICS Global Commercial Property Survey (GCPS), property markets in emerging economies continued to outperform those in developed economies during the third quarter. Emerging markets that were relatively unscathed by the financial crisis are experiencing faster growth than developed economies such as the UK, Eurozone and US.
Property markets in China, Hong Kong, Singapore and Brazil are performing strongly with India witnessing the fastest pick up in investment transaction activity of any of the major economies during Q3. Indeed, this is the first time in 6 years that India has topped the global ranking tables for investment transaction activity across major world property markets.
Leading provider of innovative workplace solutions Regus and Frasers Hospitality Pte and Oakwood Asia Pacific have inked an agreement, which will home-in on the flexible needs of business travellers and expatriate staff. According to a press release, the agreement will give anyone overseas on a project or on secondment the flexibility to live and work when, where and how they want.
BLACK MONEY BECAME A REALITY IN REALTY SECTOR
The Economic Times
MUMBAI: We are a cash-rich company run by professionals,” says a smarmy 30-something Mumbai-based head of a leading real estate company. His company’s exponential growth in the span of just five years has raised eyebrows in industry and banking circles. The reasons are clear.
The company is known to have tremendous clout in the corridors of power and with the builders’ lobby. It is backed by several important politicians in Mumbai and Delhi.
Related Articles: PROPERTY MARKET: BIGGEST SINK OF BLACK MONEY
LEADING RETAIL CHAINS COMING UP AT MOHALI JUNCTION
Nitin Jain, Mohali
The Indian Express
Leading retail brands are coming up at the Mohali Junction in Sector 57, adjoining the Verka Chowk on the National Highway-21 here. Part of the Rs 500 crore mega project that envisages first-of-its-kind 18-storeyed air-conditioned Inter-State Bus Terminal (ISBT)-cum-commercial complex, 10 screen Cineplex, 4-star luxury hotel and a mall, the total space covered under the project is a whopping 10 lakh square feet. Of this, 3 lakh square feet is demarcated as the office space and 5.5 lakh square feet as the retail space.
The response to the launch of the retail spaces was so good that it got sold out in barely two days at the recently concluded property exhibition in Chandigarh, said Col Charanveer Singh Sehgal, General Manager (Commercial) with a Delhi-based C&C Constructions Limited, which is undertaking the project.
RBI MAY PAUSE ON RATE HIKES TILL MAR
The Financial Express
HDFC chairman Deepak Parekh has said there are enough signs from RBI that it would not increase rates until March 2011. Speaking about the impact on the cost of funds after the latest hike in policy rates by the RBI, Parekh said the cost might have go up but it would not impact HDFC as the bank is maintaining its net interest margin at 2.2 percent. On RBI’s measures to tighten the provisioning of housing loans above Rs 70 lakh, Parekh said it was a stiff measure.
“They (RBI) have increased the risk weightage for housing loans above Rs 70 lakh, which comprise only 10 percent of our loan book. Our average ticket size of loan was Rs 18 lakh. We have done adequate provisioning.”
Housing Development Finance Corporation will take a call on the continuation of its ‘teaser’ loan scheme depending on whether other banks decide to continue with their fixed rate schemes. HDFC’s fixed rate scheme, Dual Advantage 5, is open till November 30. Dual advantage 5 offers a fixed rate of interest of 8.5 percent till March 2011. The rate of 9.25 percent is prevalent for the subsequent year after which the floating rate is applicable.
With the National Housing Bank also likely to ask housing finance companies to make increased provisions on such schemes, in line with RBI’s directive to banks, these companies may have to make an additional provisioning of 1.6 percent from their profits. This is likely to impact their bottom line.
METRO MAY START BADARPUR RUN ON NOV 11
Megha Suri Singh, New Delhi
The Times of India
The Commissioner of Metro Rail Safety (CMRS) inspected the extension of the Badarpur line from Sarita Vihar to Badarpur on Tuesday. Even as the inspection was completed, the safety certification has not been issued. Sources said the five-km section would open in a few days, most likely by Thursday. The opening of the section will mark the completion of the Central Secretariat to Badarpur line, which was opened for public use on October 3.
GMR AIRPORTS, JET AIR PLANS CLEARED BY FIPB
Ashish Sinha, New Delhi
The Financial Express
The Foreign Investment Promotion Board (FIPB) is understood to have given its nod to foreign investment proposals of GMR Airports ($200 million or Rs 960 crore), and Jet Airways ($400 million or Rs 1,920 crore), among others last week. This will pave way for Jet Airways to not only fund its expansion but also help to reduce debt burden, which is estimated, to be around Rs 15,000 crore. The move will also help GMR Airport Holdings fund its expansion plans.