Mixed development is the key

Aerial view of Ireo Waterfront, Ludhiana.
This is a complete town planned along the lines of the best in the world. With a glittering lake at its centre, its sound planning reflected in beautiful layouts, green environs, clean water and air, while cutting edge technology assures efficient functioning of all systems. Designed to take the hard work out of urban living, this is a town that works for you. Day after day.

Mixed-use land development is the way forward for a sustainable commercial real estate business in India, panellists said at the Mint Conclave on Commercial Real Estate: Strategies Shaping the Future held on 22 August.

Panellists emphasized the need for better designs, newer business models such as revenue sharing and having the right tenant mix. The panellists were Samir Jasuja, founder and chief executive officer, PropEquity Analytics; Anil Sharma, chairman and managing director, Amrapali Developers; Mudassir Zaidi, regional director, north, Knight Frank India Ltd; Ravi Saund, chief operating officer, CHD Developers; Chintan Patel, director, real estate practice, Ernst and Young; Sunil Dahiya, managing director, V Corp.; Rohit Raj Modi, secretary general, Confederation of Real Estate Developers’ Associations of India (CREDAI), and director, Ashiana Homes Pvt. Ltd. Saurabh Kumar of Mint moderated the discussion.

Read more: Mint

Second homes remain on the to-buy list

Real estate remains at the top of the buy list for Indian investors. After the first home is bought and paid for, the search for the second one begins. Capital appreciation, rent, inflation protection —all remain the reasons why real estate continues to be popular.

Mint Money along with property portal Makaan.com conducted a nationwide survey across 12 cities (Delhi/NCR, Mumbai, Bangalore, Hyderabad, Chennai, Ahmedabad, Kolkata, Pune, Chandigarh, Kochi, Coimbatore and Jaipur) and incorporated responses from 1,430 participants. The aim of the survey was to find the mood and appitite of the second homebuyers.

The survey spans age group between 18 and 55 years and above. But the maximum number of respondents are between 25 and 45 years of age.

Read more: Mint

Ambiguity over capital gains reinvestment

It was a tough decision for Mrs Dalal (name changed on request). But she finally decided to sell the old ancestral home as her elder son was already married, and the other two were close to doing so. The house, for one, was too small for three families. And in the absence of her husband, the property had little attraction for her.

So, the property was sold and proceeds were divided between her three sons to purchase three separate properties. This arrangement was fine so far as practical life was concerned. However, wherever there is money, there is taxation.

Like, it is in the case of Dalal’s sons’ purchase of three properties from the sale of one. The question: Is the exemption available when a person sells one residential house and reinvests the long-term capital gain in more than one house?

Read more: Business Standard

Spring in the Step
Investing in real estate? Choose carefully for steady returns

Are the rising real estate prices sowing seeds of doubt in your mind about the future of your proposed investment in residential property? Do you wonder whether the bubble is set to burst and if it is better to wait for prices to fall a little before taking the plunge?

Given the trend of rising property prices over the last few years, the price of the property you have shortlisted will most likely keep going up as you wait.

Read more: Business Today

Cost of cement set to cause house price increases of 15 percent in India

In summary:

-Cement prices have risen by 35%

-Real estate prices will rise by 15%

-Labour costs have risen by 155-180%

The Gujarat Institute of Housing and Estate Developers (GIHED) said that it is possible that the price of property in the state will rise by 15 percent. The institute, which represents the construction fraternity, gave indication as to why the prices will increase highlighting that the cost of materials needed, such as cement have risen by around 35 percent between June & September alone so prices are set to continue to rise if these rising costs are not dealt with.

Read more: Select Property

Plan to enforce building curbs near Gurgaon defence depot

Gurgaon officials Saturday reviewed the process of keeping a check on construction activities in unauthorised colonies that have mushroomed within the restricted zone of 900 metre from a defence ammunition depot here, an official said.

Deputy Commissioner P.C. Meena said that as per the directions of the Supreme Court, delivered nearly an year ago, a status quo was to be maintained within 900 metres from the outer boundary of the ammunition facility near Sector 14.

There are several illegal residential colonies and government offices in the prohibited zone. The court has banned any new construction in the zone.

Read more: Daily News

Hyderabad sees an uptick in office space absorption

Hyderabad is expected to see a 48% increase in pre- commitments of office space over last year at 2 million sq.ft by the end of 2012,indicating a positive demand trend for the city, mentioned Cushman & Wakefield, a global real estate consultancy firm in a report.

“The demand for commercial office space in the city is expected to increase moderately from the next year onwards as the economic conditions improve. Most of the demand is still expected to be driven by the existing corporate within the city through consolidation and relocations,” says Sanjay Dutt, executive managing director, South Asia, Cushman & Wakefield.

Read more: The Economic Times

London’s Berkeley group woos Indian for housing project

London’s leading real estate firm Berkeley group is wooing Indian investors to buy homes in its luxury housing project adjacent to iconic ‘Tower Bridge’ on the banks of river Thames.

The top management of Berkeley Homes, part of the group, is currently in the national capital to showcase its project to home buyers and investors in India. According to Knight Frank, 3.6 percent of Indian invest in prime central London.

Berkeley Homes is developing about 400 units in this project ‘One Tower Bridge’ located on the river Thames between Tower Bridge and City hall on the south bank.

Read more: Zee News

Economy

Power debt restructuring won’t hit India’s sovereign rating – S&P

Pigeons sit on overhead electric power cables in Kolkata August 2, 2012. Credit: Reuters/Rupak De Chowdhuri

India plans to restructure part of the debt that state-owned power distribution companies owe to financial institutions, in a bid to reform the power sector and improve capacity.

According to S&P, Indian banks have a total exposure to the overall power sector of 3.3 trillion rupees, which equals 7.2 percent of all their loans.

The restructuring could provide the loss-making distribution companies temporary relief and help them to cover costs in the short-term, S&P said, though it warned that India needs to provide more lasting solutions to its power problems.

Read more: Reuters

Infrastructure

India sees ‘big role for Qatari firms in infrastructure sector’

India sees a “much heightened” role or presence of Qatari companies in the country as Asia’s third largest economy embarks on a major infrastructure upgrade that calls for an investment in excess of $1tn over the next seven to 10 years.

This was emphasised by Indian ambassador-designate Sanjiv Arora while addressing a reception hosted in honour of a visiting Federation of Indian Chamber of Commerce and Industry (FICCI) delegation at the Radisson Blu last night.

Read more: Gulf Times

Haryana chief secy visits Gurgaon, orders repair of roads

The Haryana government has directed the city administration to get rid of all potholes, repair pavements and make streetlights functional in the next 30 days. Haryana chief secretary P K Chaudhery, who held a series of meetings in Gurgaon on Friday, told TOI that all work plans with deadlines would be uploaded on the HUDA and MCG websites so that the government gets people’s feedback.

“We have also set a three-month deadline for re-carpeting of all internal roads. I will hold a review meeting next month on the progress and meet RWA representatives and municipal councillors. There has to be accountability in meeting deadlines,” Chaudhery said.

Read more: The Times of India

Notices issued to Delhi-Gurgaon toll collection firm officials

Huge jams of vehicles at Delhi-Gurgaon Expressway toll plaza have disappeared as toll collection has been stopped for 15 days following courtorders. Here’s the scene at the plaza on Friday. Photo: Shanker Chakravarty

The Delhi High Court on Friday issued notices to Manoj Aggarwal, chairman-cum-managing director of Delhi-Gurgaon Super Connectivity Limited, and its managing director M. S. Narula on a contempt of court petition by the South Delhi Municipal Corporation over toll collection on the Delhi-Gurgaon expressway.

The local body through its counsel Gaurang Kanth accused the two of wilfully disobeying two orders of the High Court passed on July 4 last year and on April 25 this year restraining the local body from interfering with the contemnor’s company in collection of toll tax on behalf of it at Rajoukri border with Haryana.

The contemnor’s company was collecting toll for the local body under an agreement following the opening of the Delhi-Gurgaon expressway.

Read more: The Hindu

Industrial Goods/Services

Power Ministry plans fuel blending option for domestic coal projects

The Power Ministry plans to allow upcoming domestic plants to blend fuel from alternate sources if there is shortage in assured supply from Coal India.

The proposal, which is likely to be part of the revised Standard Bidding Documents (SBDs) for upcoming power projects, would be applicable for plants having domestic coal linkages.

According to a Power Ministry document, fuel blending option can be given to projects having domestic coal linkages in case of shortage in Coal India supplies.

“The developers have to quote the bids on the basis of heat rate, capacity charge and the first year price of imported coal with blending option on the bus bar of the procurers,” it said.

Read more: The Economic Times

Power

Power generation to grow by 10.4% in 2012-13

In 2012-13, power generation is expected to grow by 10.4% as per a report by Centre for Monitoring Indian Economy(CMIE). This includes a slight downward revision from its earlier estimate of 10.8%. Total power generation grew by 8.8% in June 2012, mainly driven by strong growth in thermal generation.

The coal-based generation is expected to grow by 14.8% in 2012-13. Increase in generation capacity is likely to fuel the growth in coal-based generation. In 2012-13, the coal-based generation capacity is expected to increase by around 18,500 MW.

Read more: The Times of India

Retail

Foreign Retail Chains: Will they be able to deal with the Indian reality?

FDI in retail is one issue being dealt with since long. Our government has missed the chance once again. Indian retail giants are as large as foreign hypermarkets, but, do they do as well on the price and quality front?

With the entire monsoon session of parliament virtually washed out because of the Bharatiya Janata Party’s (BJP) protests, several key Bills that the United Progressive Alliance (UPA) hoped to push through, including 49% foreign direct investment (FDI) in aviation and multi-brand retail, are back in cold storage. This has triggered the inevitable intellectual debate over whether the entry of big retail, such as Wal+Mart, would spell the demise of mom & pop stores. The arguments were also predictable. Small retailers understand local needs, rituals and customs and can provide better service, extend credit and provide home delivery.

Read more: Money Life

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