Real Estate News

Devesh Chandra Srivastava

There has been a flurry of launches in the premium category in recent months. However, the pace is likely to slacken in the near future, indicates a Mint survey.

A joint report by property consultants Jones Lang LaSalle (JLL) and consultancy firm KPMG India corroborates the findings. Between July and September, the share of launches in the premium category went up compared with that in the period between April and June, the JLL-KPMG report says. “Banking on the tremendous response over residential sales in the lower capital value segment, several developers began launching premium residential projects by the end of 2010. This was accompanied by a rise in property rates across cities. Due to the impact of rising prices, absorption rates have eventually wilted,” says the report. Mint Money along with property portal and brokerage firm conducted a nationwide survey around eight cities (Delhi, Mumbai, Chennai, Bangalore, Hyderabad, Pune, Ahmedabad and Kolkata) and incorporated responses from 4,597 participants. The maximum number of respondents are between 25 and 45 years of age; the survey spans across the age group of 18 to 55 years and above.

Demand still high in affordable category
Even though builders have been focusing on the premium category, the demand is still predominant in the affordable category, indicates the survey. City-wise, only Mumbai has the highest number of people who would buy property that is priced above Rs. 1 crore. Says Aditya Verma, chief operating officer, “It is probably because the Mumbai market is costliest in India and comprises genuine end-user demand.”

A look at the city-wise data shows that except in Delhi (63 percent) and Mumbai (48 percent), a majority of respondents in tier II metro cities such as Bangalore (83 percent), Chennai (71 percent) and Hyderabad (79 percent) prefer to buy apartments under Rs. 40 lakh.

Naresh Kamath, Mumbai
Hindustan Times

The proposed hike of the ready reckoner rates by approximately 20% from the next annual year will impact to the real estate industry. It would increase the cost of new flats substantially. “The ready reckoner is the base value and hence the hike would have a cascading effect on all other factors,” said Vinod Sampat, president, Cooperative Societies Residents Users and Welfare Association.

The ready reckoner is a guide published annually by the state government, which determines the rate of the property in a particular area on which the stamp duty and registration charges are levied. Now, even the developmental charges, cost of premium charged on exemption of floor space index (FSI) like staircases and lifts, and even the new property tax structure are linked to the ready reckoner.


The Indian Express

Haryana Chief Minister Bhupinder Singh Hooda on Tuesday made an aerial survey of the Kundli-Manesar-Palwal (KMP) Expressway and reviewed the progress of its construction near Gurgaon and Rai.

The 135-km expressway is being constructed in the fast-track mode at a cost of Rs 1,830 crore. According to the construction company, DSC Limited, the 53-km stretch from Manesar to Palwal — connecting NH-8 and NH-2 — will be completed by March 2011 and opened to traffic. The stretch between Kundli and Manesar is expected to be completed by August.

Neha Lalchandani, New Delhi
The Times of India

As a new year’s gift to passengers, the airport Metro services may finally be started in the first week of January. In a meeting held between the directorate general of civil aviation (DGCA), the civil aviation ministry, Delhi Airport Metro Express (P) Ltd (DAMEPL) and airlines on Tuesday, Metro also reportedly conceded to starting operations without check-in services though negotiations for commercial operations would be started by the end of this month.

World Economy

The Economic Times

LONDON: Investors are entering 2011 in a relatively bullish mood, raising equity holdings to a 10-month high, increasing exposure to high-yield credit and cutting back on government debt, Reuters polls showed on Wednesday.

Surveys of 55 leading investment houses in the United States , Europe ex UK, Japan and Britain showed investors holding 54.1 percent of a typical mixed-asset portfolio in stocks in December.

A combination of improving economic data and a belief in future, robust, corporate earnings has lifted investor appetite for equities over the past few months. The MSCI all-country world stock index was flirting with levels last seen in September 2008 on Wednesday.

The Economic Times

WASHINGTON – Expectations for economic growth next year are turning more optimistic now that Americans will have a little more cash in their pockets. A cut in workers’ Social Security taxes and rising consumer spending have led economists to predict a strong start for 2011.

Still, most people won’t feel much better until employers ramp up hiring and people buy more homes. Analysts are predicting economic growth next year will come in next year close to 4 per cent. It would mark an improvement from the 2.8 per cent growth expected for this year and would be the strongest showing since 2000.

“Looking ahead, circumstances are ripe for the economy to develop additional traction,” said Joshua Shapiro, chief US economist at MFR Inc. in New York. He is estimating growth for 2011 to be above 3.5 per cent. The economy grew at a moderate pace last summer, reflecting stronger spending by businesses to replenish stockpiles, the Commerce Department reported on Wednesday. Gross domestic product increased at a 2.6 per cent annual rate in the July-September quarter. That’s up from the 2.5 per cent pace estimated a month ago. While businesses spent more to build inventories, consumers spent a bit less.

Information Technology

The Economic Times

NEW DELHI: The year 2010 marked a period of revival for the $60 billion Indian IT industry, with the global economy assuming some semblance of normalcy after a period of prolonged turbulence and demand for software technology products on the rise again.

According to industry body Nasscom, the Indian IT-BPO industry is well-poised to reach the $70 billion-mark by the end of the current fiscal.

The year started on a positive note, with software majors like Tata Consultancy Services (TCS) and Infosys posting good profits, contrary to early indications of a drop in revenues.

Related Articles: Tata consultancy, Hilton worldwide tie up for information technology services, IT to continue to outperform for next 6-12 months: Nilesh Shah

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