The rise and rise of Panchkula
Rising prices are a reality for Panchkula’s realty market. “A property available in 2009 for that was available in 2009 for Rs 50,000 per sq m in old(er) sectors like 7, 8, 9, 10, 15, and 16 is now available in the range of Rs 95,000-Rs 1.15 lakh per sq m. Supply is very limited in these sectors. In sctors 12, 12A and 21, prices hover around Rs 80,000 to Rs 1 lakh per sq m; and in comparatively newer sectors like 23, 25, 26, 27, and 28, residential properties are available for Rs 60,000 to Rs 70,000 per sq m. In older sectors, the supply is very limited, so, most of the trading is taking place in sectors like 21 and other new sectors where new construction is still taking place“, says Satish Mehndi Ratta, general secretary, Haryana Property Dealers Welfare Association.
Companies plan aggressive hiring in second quarter
Reflecting a bullish employment market, companies in India plan to recruit new personnel at a hectic pace over the next three months, with the manufacturing industry expected to offer the strongest hiring prospects, says a survey. Staffing services firm Manpower’s Employment Outlook Survey released here showed that employers in India had the strongest hiring intentions for the second quarter of calendar year 2011.
India’s net employment outlook ~ an indicator of recruitment intentions ~ rose to 51 percent on a seasonally-adjusted basis for the three-month period starting April. The same stood at just 43 percent for the first three months of this year. “Employers (in India) from manufacturing, finance, insurance, real estate, public administration and education and wholesale and retail trade report strongest hiring plans to date,” Manpower said.
Indian cos raise $8.3 bn through IPOs
The Financial Express
Indian Inc mopped up a whopping USD 8.3 billion through initial public offers in 2010, fourth largest in the world, according to Ernst & Young. Global consultancy E&Y’s data shows the amount is more than double the amount mopped up in 2009. In 2009, the figure stood at USD 4.1 billion. The entities were helped by a robust stock market.
“Driving industrial IPO activity is India’s investment plan to modernise its infrastructure worth USD 1 trillion. This programme has led to many new listings in the energy and power, natural resources, building and construction sectors,” E&Y noted.
Commercial Real Estate
Rising demand for outsourced offices
The Hindu Business Line
There is a ‘sensible’ demand for office space across the country with enquiries in most cities showing an upswing, says Madhusudan Thakur, Regional Vice President, Regus, multinational provider of outsourced office space. Well, the market is recovering from a slowdown, and the enquiries are at ‘credible’ levels, not overly optimistic and indicate plans to firm up deals in the coming months, he clarifies. Potential clients are planning for requirement of space in the next six months, and are not just ‘window shopping.’ Regus has over a million square feet of office space under management in 16 locations in nine cities and is in the process of expanding.
The drivers of the market, apart from financial sector in Chennai and Mumbai, are the telecom and IT sector in Bangalore, where IT is showing a strong revival and designing relating to the automotive industry is also picking up.
26 percent exports now come from SEZs
The Economic Times (Delhi edition)
The department of commerce has recently released statistics showcasing how 130 SEZs have commenced export. It also showed that as on December 31, 2010, an investment of Rs 1.9 lakh crore was made in SEZs resulting in direct employment of 6.4 lakh people. In FY10, exports worth Rs 2.2 lakh crore were made from the SEZs, which was 26 percent of total exports during FY10. Despite these successes, the policy must come under regular scrutiny to curb its possible misuse. The approval committees under the development commissioners constituted for each zone are mandated to closely monitor the performance of SEZ units. The question is whether the annual performance report and the quarterly performance report are being scrutinised properly. Developers must not forget that any failure to meet the requirements of the scheme or for that matter any violation attracts action under Foreign Trade (Development and Regulation) Act, 1992.
Enquires for commercial real estate property have picked up in the past couple of months following decent growth in the IT industry. “This year there are more number of enquiries for commercial space …compared to the last year. The trend has picked up because the IT and BPO industries are witnessing a decent growth,” Confederation of Real Estate Developers’ Associations Tamil Nadu unit President T. Chitty Babu said in Chennai recently.
Govt urged to reconsider tax proposals on SEZs, developers
The Hindu Business Line
Leading developers of special economic zones (SEZ) from across the country, including ONGC, Reliance, DLF, Mahindra World City and Unitech, have expressed concern over the budgetary proposal to impose Minimum Alternate Tax (MAT) and Dividend Distribution Tax (DDT) on SEZs. They have urged the Government to reconsider the proposal.
A high-powered delegation of SEZ developers is seeking appointment with Yashwant Sinha, chairman, Parliamentary Standing Committee on Finance, to highlight that the imposition of MAT and DDT on SEZs would not only affect exports from these enclaves and job creation but also discourage the inflow of foreign and domestic investments into them. They will point out to Sinha, a senior BJP leader and former Union Finance Minister, that SEZs contribute around 36 percent of the country’s exports, Ajay Nijhawan, Convenor, the Export Promotion Council for SEZs and export-oriented units Panel on SEZ Developers, said in a statement on Friday.
SEZ developers — including representatives of ONGC, Reliance Haryana SEZ (Gurgaon), DLF Ltd (New Delhi), Mahindra World City SEZ (Jaipur), Unitech Ltd (New Delhi), Gitanjali Group (Hyderabad), Phonenix Group (Hyderabad), Rajasthan State Industrial Development and Investment Corporation Ltd (Jaipur), K. Raheja (Mumbai) and Uppal Developers — held a meeting early this week here to discuss the implications of imposition of MAT and DDT on SEZs, the statement added.
The Government has formally approved 582 SEZs, of which 374 SEZs have been notified as on February 17, 2011 and 130 SEZs are operational as on December 31, 2010, he said.
HUDA, DLF to discuss cost sharing of Golf Course Road project
The Times of India
In the next two days, top brass of the DLF and Haryana Urban Development Authority (HUDA) will meet to resolve the controversial cost sharing issue relating to the Golf Course Road project in Gurgaon The crucial meeting is scheduled to take place on March 15 and will decide the fate of this ambitious project.
HSIIDC should not share expenses of new toll plaza, say industrialists
The Times of India
The industrial associations of Udyog Vihar has lashed out yet again at the HSIIDC and said that the state body should not consider accepting the proposal to share expenses of the new toll plaza on the link road in Udyog Vihar as it will go against the interests of industrialists.
On Friday, it was decided unanimously by the National Highways Authority of India (NHAI), the concessionaire DSC, and HSIIDC, that a new 8-lane toll plaza would be constructed at the exit point of the link road.
Beautification caused Delhi Rs100-cr loss
In the run-up to the October 2010 Commonwealth Games, the Delhi government, as part of its beautification drive, had dug up streets and pavements in the Capital. The drive not only caused much inconvenience to residents but had also become big “eyesores” marring the Delhi landscape. While the Delhi government had termed the drive as a huge success, the Comptroller and Auditor General (CAG), in its draft audit observations on the preparations for the Commonwealth Games (CWG), has noted that the drive before the CWG resulted in losses to the tune of Rs100 crore to the exchequer.
Experts say BRT plan not feasible for Delhi
Though the Delhi government has given approval for building half a dozen more Bus Rapid Transport System (BRTS) corridors, experts from the Delhi School of Planning and Architecture have stated that such corridors are not suitable for the capital city.