Amidst predictions of a sustained price stagnation in Mumbai’s property market, a latest report by Jones Lang La Sang (JLL) holds that residential rates are bound to start appreciating in another six months. While analysts have been largely forecasting a price correction over the next one to two years, the JLL report states that price will be on the upswing in another six months. The analysis cites several reasons for the price rise. These include expectations of lower interest rates, infusion of fresh supply owing to the new Development Control Rules in Mumbai and a similar graph of a limited-period correction unfolded during the 2009 slowdown.
Read more: The Indian Express
Home Loans become competitive
With the soaring property prices aggravated further by the Union Budget’s hike in service tax from 10.3 percent to 12.36 percent, home buyers can now breathe easily. There is some consolation by way of reduction in home loan lending rates not only for the new borrowers but also for the existing borrowers. A few banks have reduced the home loan lending rates by 25 basis points to 75 basis points depending on the loan amount and repayment tenure.
Read more: The Economic Times
With the inventory levels going up across all micro markets, residential rentals are stable except in CBD and select other areas where high-end housing demand is predominantly driven by expatriates in the city. There are others who feel that rental market saw a hike by 20-30 percent in the last one year before stabilizing now. The demand for leasing from expatriates is particularly for gated community development projects in proximity to international schools, says Farook Mahmood, CMD of Silverline Realty Pvt Ltd. The location varies depending on the work spot and availability of international schools for children. High end apartments in CBD areas and villas in areas like Whitefield drive demand where the rentals range from Rs 1 lakh to Rs 5 lakh per month. According to Jones Lang LaSalle’s quarterly update, Bangalore market saw the absorption of 4,182 units in 1Q12 against 3,370 units in 4Q11, pushing the absorption rate up from 10.0 percent in 4Q11 to 11.0 percent in 1Q12. Unsold stock in the quarter totaled 32,978 units compared to 31,369 units in 4Q11, reflecting a vacancy rate of 51.1 percent down from 52.4 percent in 4Q11. This increase in demand was due to buyer sentiment shifting towards purchasing a property rather than paying high rents, as well as the entry of primarily investment buyers from other tier I and II cities.
Read more: The Economic Times
Metro sets out to ‘go places’ in Noida
Clogged roads and shared auto-rickshaws may soon be a thing of the past for Noida residents with the Uttar Pradesh government giving its nod to connect the Noida City Centre with Sector 62. The state government has given its go- ahead to the Delhi Metro’s detailed project report on the proposed Metro link between the two points. The proposed line, nearly 7- km long, will be an extension of the current Dwarka Sector 21— Noida City Centre line. The route, once completed, will connect the key industrial and residential areas of Noida with the rest of the network in the National Capital Region. Areas that the proposed line will pass through include Noida Sector 52, Electronic City, ending at Noida sector 62.
Rea more: Mail Today
Govt to invest $30-bn for airports expansion
Buoyed by the success of implementation of PPP model in airport development, the government plans to invest $30 billion in next 10 years with more existing airports being opened up for modernisation, a top official said today. “In 10th and 11th five—year plans, the government has invested $10 billion. The airports developed under the public—private—partnership model are presently handling 60 percent of the passenger traffic in the country. The government has planned to invest $30 billion in next 10 years,” said S.N.A Zaidi, Civil Aviation Secretary, while addressing the 3rd International Aviation Economics Conference here. In the first phase, connectivity to metro cities was established while in the second phase, the focus would be on connecting metros to tier—II and tier—III cities, he said.
Delhi airport fears shutdown as AI, Kingfisher dues mount
Bleeding airlines have started infecting airport operators, with the Delhi international airport staring at the prospect of downing shutters in two months over mounting dues from Air India and Kingfisher Airlines. Sidharath Kapur, chief financial officer (CFO) of Delhi International Airport Ltd (DIAL) said on Tuesday: “If payments are not made, there may be a situation after two months that we may not be able to operate and pay our employees.” Kingfisher and Air India jointly owe about Rs 525 crore to DIAL, promoted by airport developer GMR. The Delhi airport, which handled 35.9 million passengers in 2011-12, is India’s busiest airport. Kapur said the company is losing Rs 40 crore every month. DIAL has asked Air India to pay Rs 300 crore immediately out of its dues of Rs 450 crore. Kingfisher owes the rest Rs 75 crore. The DIAL management led by GMR chairman GM Rao met reporters on Tuesday to release an NCAER report titled “Economic impact study of Delhi airport”. The study claims the airport has contributed about 0.5 percent to the GDP of the country in 2010-11. Rao, however, steered clear of mentioning the financial crisis at Delhi airport, focusing instead on the findings of the study. According to Kapur, the losses have ballooned so much that banks have turned chary of extending loans to meet working capital needs. “We have already borrowed Rs 5,300 crore from foreign and domestic banks. No bank will give us more money considering our losses,” he said.
Changing face of the Delhi Airport
Delhi International Airport Ltd or DIAL, operated by GMR Infrastructure, launched its prestigious T3 terminal in July 2010. A company-mandated study of DIAL by NCAER on the economic benefits of airports brings out how the revenue mix of the airport has changed, moving from aeronautical revenue (airline landing fees and passenger fees) to non-aeronautical services. As part of the study, a survey of 4,747 passengers gives an indication of passenger profile in terms of income, expenditure, purpose of travel and frequency.
Read more: Business Standard
NRIs in US: Don’t panic; seek right advice about foreign account reporting
As the last date for filing US tax returns, 17th April, draws near, we come to the end of our series on the various implications of the IRS rules for Indian Americans. According to the IRS tax code, all US residents, green card holders and citizens must file their tax returns in the US on their global income.
While this has always been the case, in the last few years, the IRS has started to aggressively track offshore accounts with heavy penalties on those who fail to comply. In addition to the already existing FBAR (Foreign Bank and Foreign Account Report), this year, the IRS introduced Form 8938 to gather information from its taxpayers on their global financial accounts. The IRS has also reopened its Offshore Voluntary Disclosure Program (OVDP) which will give a chance to those who have failed to comply in the past to become current on their taxes.
Read more: The Economic Times