Nearly five lakh houses currently under construction in NCR

Nearly 5,00,000 houses are under construction in the national capital market (NCR), the largest residential market in the country, and half of them are slated to be ready for possession by next year, according to property consultant Knight Frank.

In its market overview, the consultant said that NCR did not witness a steep decline in launches last fiscal despite global economic slowdown and high mortgage rates in India.

“Nearly 86,000 residential units entered the market in FY 2012… Nearly 40 per cent of the units launched, fall in the Rs 25-50 lakh ticket size,” Knight Frank said in a report.

Read more: The Economic Times

Homes become more affordable in last 10 years

Real estate prices in metros such as Mumbai may be at a record high. But, on an average, homes across the country are more affordable than they were five or even ten years ago. According to an analysis of HDFC data, the average cost of a house purchased by its borrowers was Rs 12 lakh in the year 2002. Over the years, the average amount paid for a house (by HDFC borrowers) rose to Rs 40 lakh in 2011. But salaries have risen faster. The same period saw the average borrower’s salary rise from Rs 2.45 lakh to Rs 8.3 lakh. As a result, affordability — measured by the home price as a multiple of annual salary — has improved. The borrower, who on an average needed 5.1 times his annual salary to buy a house in 2002, needed only 4.8 times his annual salary in 2011. The affordability figure is a national average and over the years HDFC’s borrower profile has also changed with more loans being disbursed in smaller cities.

However, the long-term trend in affordability holds true for most cities because of high levels of income growth in the first decade of the 21st century. The country’s per capita income has tripled from Rs 19,040 in 2002-03 to Rs 53,331 in 2010-11. The increase in affordability would mean that housing and housing loans would continue to grow in coming years. Considering that there is a housing shortage of 26 million housing units according to Jones Lang Lasalle, the potential will last for some time.

Read more:  The Times of India 

India and sustainable real estate

The real sector has emerged as one India’s largest drivers of economic growth. As a sector, it provides large scale employment and contributes significantly to the GDP. For decades, environmentalists have been warning that frenetic human economic activity associated with the breakneck speed of economic growth is placing a huge strain on the earth and its natural resources.

Of course, we keep pushing those limits back with clever new technologies; yet eco-systems are undeniably in decline. Since real estate is emphatically driving this growth, it is also directly impacting the environment. Sustainable development is all about minimizing this impact and ensuring we keep the planet green and alive.

Read more: Money Control

Economy News

‘US consumer confidence up; India tops’

U.S. consumer confidence surged in the first quarter to its highest in more than four years as the economy improved, contrasting with still very low morale among debt-laden euro zone countries, a survey showed on Monday.

Confidence remained highest in India and the Asia Pacific, according to the quarterly survey by global information company Nielsen.

Globally, consumer sentiment rose slightly from the fourth quarter of 2011, according to the Nielsen Global Consumer Confidence Index. The index gained 5 points in the first quarter of 2012 to 94, helped by a nine-point jump in the United States’ score over the previous three months.

Read more: Financial Express

India job outlook most optimistic, say experts

Whatever be the health of the global market, the hiring outlook in India is bright. So feel a number of recruitment companies, based on studies carried out by them. Recruitment company Manpower’s employment outlook survey for the April-June quarter shows Indian employers expect to hire at a vigorous pace, with 44 percent of them planning to recruit. In fact, Indian employers are the most optimistic of all the 41 countries and territories surveyed by Manpower. Namr Kishore, Manpower director said, “Worldwide employer hiring expectations are the strongest in India, Brazil, Taiwan, Peru and Turkey, and the weakest in Greece, Spain and the Czech Republic. A greater percentage of employers in th­ese last three plan to trim payrolls rather than hire.” Among industry sectors covered by Manpower, employers in finance, insurance and real estate sector (+51 percent), and services sector (+59 percent) are the most optimistic about hiring. IT hiring plans are also optimistic. Public sector banks are expected to hire thousands to support expansion plans.

Read more:  Financial Chronicle 

Markets cheer Bharti Airtel despite net drop

The markets on Wednesday gave a thumbs-up to Bharti Airtel, the country’s largest telecom service provider, despite it posting a decline of 28 per cent in its consolidated net income, the ninth straight quarterly drop, to Rs 1,006 crore during the fourth quarter ended March 31.

Nevertheless, the stock went up on Wednesday by 2.4 per cent to close at Rs 317.95. The reason was primarily because operations were on the upside. The company showed improvement in its Ebitda (earnings before interest, taxes, depreciation and amortization) margins and reduced losses in its African operations. Also, the increase in rates it has been able to undertake, especially after intense competition got muted in the mobile telephony segment, has helped it raise average revenue per user (Arpu) over two quarters without compromising on growth in minutes of usage, which went up for the first time after seven quarters.

Read more: Business Standard

IT companies step up hiring of engineering graduates

The information technology companies have hired maximum number of engineering graduates in campus placements this year.

Compared to last year, there has been improvement in number of people hired as well as the average compensation, as per the data from some of the leading private engineering colleges in the State capital.

“The IT companies were the major recruiters this year. About 89 per cent of jobs have been offered by IT majors,’’ Mr N L N Reddy, Placements Officer, Chaitanya Bharathi Institute of Technology told Business Line here.

Read more: The Hindu Business Line


Metro floats tenders for Outer Ring Road tunnel

Delhi Metro has fast tracked the work to decongest one of the busiest stretches of the Capital, Outer Ring Road, as part of its ambitious phase III network. The preliminary work for the 36 km corridor connecting Janakpuri West to Noida, a major part of which will run along the Outer Ring Road, has already begun. With 25 Metro stations, the Corridor is pegged to be one of the busiest lines of the Delhi Metro’s network. According to Delhi Metro Rail Corporation (DMRC), the corridor will be extremely beneficial for the office-goers and daily commuters from Noida and is expected to attract a ridership of over four lakh, once this line is constructed by the end of the year 2016.

Read more:  The Pioneer 

Rupee may drop to 55 vs dollar: Manoj Rane, BNP Paribas

In an interview to ET Now, Manoj Rane, MD & Head Fixed Income & Treasury-India, BNP Paribas, talks about the rupee and the macroeconomic factors affecting its movement. Excerpts:
What do you make of the rupee testing the 53 levels versus the greenback, and where you see the rupee headed now?
Manoj Rane: Actually, it is not much of a surprise because after RBI initiated the measures to address rupee volatility three or four months ago, we have seen reduced volatility but really nothing has been done in terms of addressing the issue on inflows. We have not seen much inflows.
One of the significant moves was also to incentivize non-resident external deposits. Unfortunately, anecdotal evidences are not very supportive, as hardly about $3 billion of that inflows have come.

South Delhi has spoken: BRT must go

South Delhi residents have unanimously given the thumbs down to the Bus Rapid Transit (BRT) Corridor.

The findings have come to light during the door-to-door opinion poll conducted by the Central Road Research Institute (CRRI) as part of the six-week study on the Corridor mandated by the Delhi High Court.

Read more:  The Pioneer 

Metro construction picks up; slow traffic expected

Traffic on some of central Delhi’s major roads could be severely affected by diversions on Saturday, due to construction of the upcoming underground ITO metro station in central Delhi on Central Secretariat-Kashmere Gate line of phase 3, an official said.

Read more:  Hindustan Times 

Ghaziabad’s Loni may be next in Metro reach

Ghaziabad’s Loni could be the next with Metro connectivity with the local development authority agreeing to share a third of the cost of constructing a station at Johari Enclave. The fillip for expansion of the Delhi Metro came after the Ghaziabad Development Authority stressed the need for the transport system in the city.

Read more:  Hindustan Times  

Cities with over 20 lakh population to get metro rail

Cities with a population of 20 lakh or more are being considered for modern mass rapid metro rail and feasibility studies have been ordered in this regard.

“We have already asked the state governments to conduct feasibility studies for metro rail projects in the cities with a population of 20 lakh or more,” Urban Development Minister Kamal Nath said replying to the debate on the Demand for Grants of Ministry of Urban Development for 2012-13.

At present the cities where the metro rail projects are at various stages of implementation include Hyderabad, Jaipur, Chennai, Chandigarh, Kochi and Mumbai.

Read more: The Financial Express


Hyderabad airport adjudged India’s third best

The Rajiv Gandhi International Airport (RGIA) in Hyderabad has been adjudged India’s third best airport this year by airline customers at the Skytrax World Airport Awards held in Vienna. The World Airport Awards are given in recognition of quality for airports across the world, based on the annual Skytrax airport passenger satisfaction survey, covering 388 airports from over 160 countries.

Read more:  The Hindu Business Line 

Delhi airport: One of the biggest employers globally

Delhi airport is one of the biggest employers in the world providing jobs to more than five lakh people, a study by the National Council of Applied Economic Research (NCAER) has found. “The airport provides direct employment to about 5.16 lakh people, 18 percent more than next best Hartsfield-Jackson Atlanta International airport in the US. “The employment at Delhi airport is 0.11 percent of national employment and 8.47 percent of jobs in the state,” said the first of its kind study in India to assess the impact of IGI Airport on employment and economic development of Delhi and the country. If indirect jobs generated due to the operationalisation of Terminal 3 of the Delhi airport were added, the total employment comes to 15.77 lakh, which is 0.34 percent of national employment and 25.9 percent of Delhi’s jobs, the study found. The Indira Gandhi International airport has been developed and run by GMR-led consortium, the Delhi International Airport Limited (DIAL).

Read more:  The Hindu Business Line | Deccan Herald | The Financial Express 

Get ready to cough up more if you fly by IGI Airport

Passengers planning to fly in and out of Delhi “or even transiting through IGI Airport” after June 15 should brace themselves to shell out an extra amount anywhere between Rs 360 and Rs 1,400 as a new charge called user development fee (UDF). The Delhi International Airport Pvt Ltd (DIAL) has requested Airport Economic Regulatory Authority (AERA) to announce airport charge hike at IGI at the earliest and make the same applicable from June 15.

Read more:  The Times of India 

Global airlines deploy latest aircraft to woo Indian flyers

The Indian globe trotter is being wooed like never before. The world’s latest commercial aircraft are now being deployed here by foreign airlines. Japan Airlines (JAL) will use the new Boeing 787 Dreamliner on Delhi-Tokyo route from Tuesday. Lufthansa will fly the latest avatar of the jumbo jet Boeing 747-800 to Delhi and Bangalore this summer.

The deliveries of these two aircraft – that boast of features like large windows, ultra comfortable interiors and unmatched fuel efficiency – began to airlines around two months back. Request from many airlines, including Emirates, are pending with the government to fly the Airbus A-380 to Delhi for about two years.

Read more: The Times of India

Health Services

Apollo Hospitals to invest $394 million in 4 yrs

Apollo Hospitals Enterprise Ltd (AHEL) is planning to spend $394 million over four years for adding 2,900 beds to its hospitals network and equipment purchases for existing hospitals.

Read more:  Business Standard 

Ireo Uptown, Sector 66, Gurgaon

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