Real Estate Investments

58 percent of city residents like to invest in real estate
Bhopal
The Pioneer

About 58 percent of professionals from Bhopal prefer to invest their hard-earned money in the money-making industry of real estate for long term. The reason behind this is that on one hand the real estate guarantees them higher future returns, while on the other, it helps them stay off risky investment options like stock market, equity, mutual fund, gold etc. This is the finding of a survey carried to ascertain the ‘Latest Investment Trends in Urban Professionals’, as many as thousand people were surveyed in seven non-metro cities by the Associated Chambers of Commerce and Industry of India (ASSOCHAM) under the aegis of ASSOCHAM Social Development Foundation (ASDF).

Real Estate the Most Preferred Investment Avenue in Non- Metros
Indian Realty News

Real estate has emerged as the most preferred investment avenue for working professionals in non-metro centres vis-à-vis bullion and stock market. Realty has topped the preference chart as it is considered a safer investment option compared to other instruments and the booming real estate sector in Tier-II towns of the country.

Almost 60 per cent of respondents in a random survey conducted by Associated Chambers of Commerce and Industry of India (Assocham) in seven Indian non-metro cities preferred realty, followed by bullion and stock market at 20 per cent and 15 per cent, respectively. In the survey conducted in Lucknow, Jaipur, Ahmedabad, Surat, Patna, Ranchi and Bhopal during October 2010-February 2011, the respondents said Indian realty had huge prospects in sectors like commercial, housing, hospitality, retail, manufacturing and healthcare.

Big realtors catch fancy for Punjab
Business Standard

Considering the interest being generated by realtors like DLF, Emaar MGF and Tata Housing, Punjab is turning out to be a promising market from the realtor’s perspective.

The state better known for its green revolution and significant contribution towards agriculture is now catching fancy for realtors in a big way who are looking ahead of the northern capital territory (NCR) region.

Tata Housing Development Company Limited (THDC) CEO Brotin Bannerjee believes Punjab is turning out to be highly promising and is gradually emerging as an important investment hub for real estate in India.

Finance

RBI to Continue with its Rate Tightening Policy
Indian Realty News

The Reserve Bank of India is expected to continue its rate tightening cycle and raise policy rates by a quarter percentage point on Thursday, for the eighth time in about a year, to tame inflation amid strong growth momentum. Besides supply bottlenecks and the prospect that global oil prices could remain high, concerns over robust credit growth and elevated levels of non-food manufacturing inflation are likely to prompt central bank action to curb demand-led inflation.

The Reserve Bank of India (RBI) has raised its lending rate, known as the repo rate, seven times by a total of 175 basis points and its borrowing rate, or reverse repo rate, by 225 basis points since last March to contain inflationary pressures. India’s annual food inflation eased to a three-month low of 9.52 per cent in late February, as prices of vegetables, potatoes and rice declined, data showed on Thursday.

India outperforming Asia, emerging markets: Todd Martin, Societe Generale
Economic times
In an interview with ET Now, Todd Martin , Asia Equity Strategist, Societe Generale , talks about the hike in key policy rates and the affect of Japan crisis on India.

What have you made of the Reserve Bank of India hiking their repo and the reverse repo at this point in time?

That was as expected. SG Economics was looking for 25 basis points. We thought that there was the potential for 50 basis point hike, but we do expect three more in the coming 2 to 3 quarters.

The RBI has actually come out and said that there are potential risks to growth for the Indian economy going forward. How would you read into that comment from the central bank?

When you are in a tightening cycle, the actual conclusion of tightening is to slow things down so that you can bring inflation into control. So the fact that they are tightening and bringing real interest rates into a more positive area means that the cost of borrowing goes up and actual investment in economic activity should go down. It is not just onto India, the rest of Asia is tightening as well and we expect Asia as a whole there to be slowing down over the coming two quarters.

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