The Housing Market was the First to Recover in the Real Estate Market After 2008 Recession

Ireo Uptown, Gurgaon

Do you know that after the 2008–09 global financial crisis, the housing market was the first to recover in the real estate market? Currently, prices have risen in several cities in India and any price gain in these markets will be inflation-driven. See charts for average price of residential properties in India in Rs/Sq.ft.

In other news, CNBC-TV18 Sonia Shenoy reported that the borrowing costs for real estate companies are declining with improving liquidity, thereby strengthening their balance sheet. The physical market has not been able to show too much of a pickup but market such as Bangalore has reported some growth with decent demand for the new releases. In markets like Gurgaon, a lack of releases and a construction ban has been seen because of the water shortage while 40 projects are still pending to get final approval.

Turning to Chautauqua County real estate segment, three firms have announced a merger. The merger, according to the Jamestown Post-Journal, includes ERA Team VP Real Estate, Coldwell Banker Phil Mathyer Real Estate and ERA Larson Real Estate. The consolidated firm will operate using the name of ERA Team VP Real Estate, and its offices will be in Fredonia and Lakewood, as well as the Pennsylvania cities of Bradford and Warren.

Read more: Property Mentor Group

A Close Look: Business Today

No NOC needed to register land smaller than 1k sq metre

The Municipal Corporation of Gurgaon (MCG) and district administration have decided that a no-objection certificate (NOC) will no longer be mandatory for purchase or sale of properties smaller than 1,000 square metres. This will bring relief to small plot owners.

Out of the 39 approved colonies under the MCG, this ruling is already applicable in nine colonies. “A survey is being carried out in the remaining 30 colonies. This ruling will be applicable in all the colonies in the coming months,” said an official.

In case of vacant plots above 1,000 sq meters in the nine approved colonies, NOC will be needed from both the MCG and district town planner (DTP). These nine colonies are: Rajendra Park, Laxman Vihar, Daultabad Road, Ashok Vihar, Krishna Colony, Shanti Nagar, Bhim Garh Kheri, Dayanand Colony and Prem Nagar.

Read more: The Times of India

Ground Rules: Govt considers land pooling policy to replace acquisition

A new land pooling policy that will encourage active involvement of the private sector is being considered as alternative to land acquisition by the Delhi Development Authority (DDA).

“The National Council of Applied Economic Research (NCAER) was asked to look into the policy to see if it made economic sense. Their report has been submitted and they have suggested certain models for land pooling, which are viable. The report will be tabled at the DDA meeting for approval and will be circulated to different departments for their comments before it is finalised,” an official said.

DDA spokesperson Neemo Dhar confirmed that the policy was being considered. This will ensure involvement of private players in land assembling and development.

Union Urban Development Minister Kamal Nath, too, had said the policy would replace existing large-scale acquisition of land and help make farmers partners in the development process.

Read more: The Indian Express

Banks want NPA norms to be relaxed for housing project loans

Following the finance ministry asking banks to boost up lending to the residential housing projects, the lenders now want the central bank to relax norms pertaining to asset classification to facilitate credit flow.

In a meeting held last week with bankers and real estate developers body Confederation of Real Estate Developer’s Associations of India (CREDAI), DK Mittal, secretary, financial services had reviewed the issues pertaining to credit flow to the housing sector and discussed measures to boost the loan flow.

CREDAI representatives have informed the ministry that many projects could not be completed due to lack of funds. Most of these unfinished projects are in tier-II and tier-III cities.“We have noted that a developer starts the project by availing finance from non-banking sources, mainly non-banking housing companies, at a high interest. But later they have realized that it servicing such loans become unviable,” said a top executive from a public sector bank.

Read more: Business Standard

Realty bites, for a good address

Attempts by civic agencies and developers towards the equitable development of the City have not met with much success. The demand in the realty market is driven more by proximity to workplace and access to amenities.

The unparalleled growth of Bangalore has spurted a drastic change in the skyline of the City. Once known for its calm and quiet streets, the City has grown to become a bustling metropolis, housing many information technology and ancillary industries.

To cater to this, Bangalore has expanded at an exponential rate. With the presence of software giants coupled with cosmopolitanism, Bangalore has attracted citizens from across the world who have chosen to make it their home.

Read more: Deccan Herald

What international buyers want and buy

More and more real estate professionals are dealing with international clients, and interviews with some of the most active agents in the city indicate a clear trend.

Victoria Rong Kennedy, Senior VP of Investment and Relocation at Citi Habitats, talks excitedly about her newest client: “He is one of the top seven contemporary artists in China, his paintings sell from $350,000 to over one million dollars and he’s looking for a two-bedroom condo in Chelsea.”

No, she can’t reveal his name, but she can say that when he arrives in the city on the weekend, she’ll have a list of

Photo credit: Wei Min Tan, President of Castle Avenue Partner/Linda Rosier

properties for him and it will be ready-set-go for a whirlwind search.

Buyers are flying in from Europe, the UK and the BRIC countries — Brazil, Russia, India and China — bringing their money with them, attracted by a stable real estate market and what many of them consider to be bargain prices.

Read more: AM New York

The Property Show: High-end homes in Gurgaon, Pune

In the latest episode of the Property Show, we review high end homes in Gurgaon and Pune and smart homes in Kolkata and Chandigarh. We also discuss best budget homes in Chennai. Also, we get you an exclusive interview of Australian infrastructure major – UGL Services. The company has forecasted huge capital inflows into Indian real estate in the next decade.

Watch video: NDTV Profit

Economy

Trade with Malaysia set to top $15 bn

Commerce & Industry Minister Anand Sharma said today trade with Malaysia is likely to cross the US $15 billion mark by next year, adding bilateral trade stood at nearly $13 billion last year, a growth of 34% over the previous year.

Addressing members of India-Malaysia CEO Forum, Sharma said Khazanah Nasional Berhad (the Malaysian government’s strategic investment fund) and IDFC have set up an SPV with an equity base of Rs 830 crore for financing national highway construction projects.

Sharma said priority sectors of engagement include roads & highways, railways, airports, infotech and ITES, biotechnology, tourism, health services and joint venture projects in third countries.

The two countries entered into a comprehensive economic cooperation agreement in February 2011.

See article: Tribune India

IDFC ties up with Malaysian fund to help infra projects

Union Commerce, Industry and Textiles Minister Anand Sharma addresses at the Tex-Trends India, in New Delhi on July 16, 2012. Photo: Sandeep Saxena

With bilateral trade between India and Malaysia progressing on a robust path, Union Commerce and Industry Minister Anand Sharma, on Wednesday, announced that the target for $15 billion turnover is likely to be achieved by 2013, prompting both nations to revise the target.

Mr. Sharma also announced that  Khazanah Nasional Berhad (Government of Malaysia’s strategic investment fund) and IDFC have joined hands to form a special purpose vehicle (SPV) with an equity base of Rs.830 crore for taking up infrastructure projects in India. “India’s bilateral trade with Malaysia stood at nearly $13 billion last year, registering a growth of 34 per cent over the previous year. While we had set a trade target of $15 billion by 2015, I am confident that we will be able to achieve this target definitely by 2013, if not this year. I will be proposing to my Malaysian counterpart Mustapa Mohamed that we revise this target upwards,” he said while addressing the India-Malaysia CEO Forum meeting here.

Read more: The Hindu

Infrastructure/Transportation

Plan panel not happy with trust plan for Delhi-Mumbai industrial corridor project

The proposal for a trust to be at the helm of the Delhi-Mumbai industrial corridor project is being viewed with scepticism by the Planning Commission. Even though the cabinet cleared the $90-billion project in September last year, the commission is concerned that the trust being not under strict regulatory gaze as companies, the proposed model for managing finances of the project could become less than transparent in practice.

As per the cabinet decision, the funds (contributed by Japanese financial institutions as debt) will be held by a trust which will then make further investments in special purpose vehicles (SPVs) created for each state where the corridor pass through.

The SPVs will be directly responsible for building the trunk infrastructure for the project.

A senior planning commission official told FE, “Our issues are very simple. We do not endorse the trust format and we want a more transparent set-up for public projects.”

Read more: The Financial Express

Suggestion to buy back Delhi-Gurgaon expressway

Should the Delhi-Gurgaon expressway be bought back by the government and nationalized? With indications that the 32-lane toll plaza will not be able to handle the rise in traffic flow in the coming years, demands for such a course of action are getting louder. The private concessionaire has the right to collect toll till 2023, according to the contract agreement.

A study by National Highways Authority of India (NHAI) last year had projected traffic flow at the toll plaza to touch 3.97 lakh passenger car units (PCU) every day by 2023. This is almost double the present traffic volume at this plaza. Cars and private vehicles would have the lion’s share of 3.29 lakh PCU.

Read more: The Times of India

Water

City heaves a sigh of relief, treated water reaches taps

In  good news for the parched Millennium City, water from the Chandu Budhera treatment plant reached the households through canal water pipelines on Sunday.

The Haryana Urban Development Authority (Huda) had on Saturday supplied 36MGD treated water through its pipelines to thecity. The 36MGD included 3MGD treated at the new plant.

“It was the first day when water from the new plant was pressed into the pipelines connected with every household water tap in the city.

As the demand is likely to grow to 42-45MGD on Sunday, we hope to supply 5MGD from the new plant,” said a Huda official.

With a capacity of 110MGD, the plant’s one unit of 22MGD was made operational for the trial run on September 2. A fortnight later, the Haryana Irrigation department released 50 cusecs (22MGD) of Yamuna water from its Kakroi branch, Sonepat in the NCR channel that feeds the plant. Huda has laid a pipeline that connects the Chandu Budhera with the old plant at Basai — a distance of approximately seven kilometres.

Read more: Hindustan Times

India News

Gurgaon to get first cyber police station

If somebody has hacked into your e-mail account, or defaced your website or stolen proprietary data then you may approach a unique police station exclusively dealing in cyber crime. The Millennium City will soon have a dedicated cyber crime police station and a new post of DCP, cybercrime, will also be created for the purpose.

The department of home, Haryana, has also decided to construct new swanky police stations on the lines of the one at Madhuban in Karnal district of Haryana. The triple-storey building overlooking the Delhi-Chandigarh highway has an underground parking facility and a fully-furnished visiting hall.

“We have decided to set up two dedicated cyber crime police stations headed by the DCP, cyber crime, in the state. One of these will come up in Gurgaon and another in Chandigarh. The DCP will be conversant in information technology such as master of computer applications (MCA) or from a similar background,” said Samir Mathur, home secretary, Haryana.

Read more: Hindustan Times

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