Property prices firm across cities despite high interest rates

Housing prices remained firm following limited supply, despite the slowdown and high interest rates, according to a report by Nomura. House prices remained on an uptrend despite weak transaction in volumes, high interest rates and slowing economic growth, as supply has been limited with fewer projects being added, especially in key markets such as Mumbai and Delhi due to delays in the government approvals, Nomura said in a report. According to the Reserve Bank of India’s latest housing price index, house prices remained on an uptrend, up 24.1 percent in Q1, compared with an average of 20 percent over the past two years, it said. The markets of Delhi, Mumbai, Kolkata and Chennai saw the sharpest price increases of 21-42 percent, said the Nomura report.

The steady rise in house prices is one of the many reasons why consumption has remained well supported and inflation expectations have remained elevated, despite the stress in other segments of the economy, it pointed out. The report further said steady gains in physical assets have also encouraged households to divert savings away from financial assets. RBI’s national house price index takes into account price situations in the nine cities – Mumbai, Delhi, Bangalore, Ahmedabad, Lucknow, Kolkata, Chennai, Jaipur and Kanpur, it said. According to a report by property consultant Jones Lang LaSalle, seven major metros including Bangalore, Chennai, Delhi, Hyderabad, Kolkata, Mumbai and Pune, capital values rose marginally or remained more or less stable in September.

Read more:  Financial Chronicle | The Economic Times | The Financial Express | The Hindu Business Line | Business Standard | The Hindu 

Ireo Gurgaon Hills

Residential realty market sees 30% rise in sales

The Reserve Bank of India may not have reduced the interest rates, but residential property sales seem to have caught momentum with increased new launches at lower rates and incentives offered by developers.

The revival in the property market, however, is not certain yet as inventory levels continue to be high. Housing sales volume in top six cities of the country saw an average growth of 30% year-on-year in the three months to September, according to a report by Liases Foras Real Estate Rating and Research. Surprisingly, housing prices in these markets also saw an average 20% jump from a year ago.

In Mumbai, the most expensive property market, the sales volume growth has been the slowest at 7%, while Bangalore and Chennai have witnessed a 70% jump. The National Capital Region of Delhi and Pune have also managed an over 40% year-on-year growth, with the exception of Hyderabad where sales plunged 48%.

Read more: The Economic Times

House price index up 24.1%: RBI report

Housing prices in all cities have increased on a year-on-year basis during the first quarter of 2012-13 fiscal, according to the Reserve Bank of India’s (RBI) quarterly House Price Index (HPI) published in the macroeconomic report of RBI, on Monday.

The all-India house price index saw an increase of 24.1%, while the increase from fourth quarter of fiscal ended 2012 was 6.7%. The annual increase in house prices show a marginal moderation in Q1, while the transaction volume grew by 9.3%.

Delhi saw the highest increase in housing prices on a y-o-y basis by 42.2%, followed by Kolkata (30.1%). Compared with the previous quarter, housing prices show a marginal decline in Bangalore, Ahmedabad and Kanpur.

Read more: The Indian Express

Can housing societies refuse tenants?

Sumanta Layak, 25, is used to rejection. Whenever he has to look for a house on lease in the NCR, he goes through a harrowing time. Layak is well-qualified and has no criminal history, yet, he is refused rental accommodation by most owners of housing societies. The reason? He is single. According to real estate experts, being single is not the only reason that people find it difficult to rent a house in the top cities, though it is the most common one. The other reasons for refusal include keeping pets, such as dogs and cats, for fear that they will dirty the society or harm the children. Can housing societies frame their own laws? If legal experts are to be believed, the housing societies can indeed frame their own laws. Can the housing society overrule a flat owner? Om Ahuja, CEO, residential services, Jones Lang LaSalle India, explains that though it is the legal right of the owner to lease his property, the housing society in which the flat is situated, too, has a say in it. “Individual societies are legally empowered to deny tenancy based on their bye-laws. In many cases, such bye-laws are interpreted in a certain manner in order to achieve this. However, they have no constitutional right to do so,” says Ahuja.

Read more:  The Economic Times (Mumbai edition)  

The uneven growth in NCR

In terms of planned urban growth, the evidence for real estate development being backed by the creation of associated physical infrastructure is higher in Noida and Greater Noida. Gurgaon and Faridabad are at the opposite spectrum, where infrastructure is developed after the real estate potential of an area has been nearly fully exploited. In other words, infrastructure projects in these areas is largely taken up only after an area is already primed for real estate growth. Even so, Gurgaon has seen the maximum capital appreciation for investors and end users. The upcoming areas of Dwarka Expressway and new sectors on both sides of NH-8 up to Manesar are part of the Master Plan 2021.

Read more:  The Indian Express 

Housing sales set to improve

Housing sales are expected to improve by about 20 percent in major cities during the festival season with marginal fall in interest rate on home loans, developers’ body CREDAI said recently. “Enquiries from customers have gone up in the past one month. Buyers waiting for last two years to buy homes are expected to purchase properties as interest rates on home loans have come down and there is a positive signal that it would reduce further,” Confederation of Real Estate Developers’ Association of India President Lalit Jain said in New Delhi recently. Asked about the expected increase in housing sales during the festival season compared with last year, Jain said: “It should be at least 20 percent in the major 26 cities of the country.”

Read more:  The Tribune 

Policy

Circle rates set to rise by 250 percent

If you are planning to buy property in Delhi, seal the deal soon. The sale and purchase of properties in posh residential colonies in the national Capital is likely to become nearly three times costlier with the Delhi Government preparing to revise the circle rates. For colonies falling in the categories A, B and C, the circle rate of properties may go up by 200 to 250 percent, while in other areas the rate is expected to go up by 25 to 30 percent.  In other words, Property registration could soon burn a substantially bigger hole in your pocket, with what the Delhi Government has in mind.  A proposal to this effect is likely to be put up before the Cabinet within the next 15 days.

Read more:  The Pioneer  

Economy

Modest growth revival in Indian economy from H1-13

Indian economy is not likely to see a quick turnaround and growth rate is expected to revive modestly from the first half of next year, says a report by Goldman Sachs. According to the research report by the investment banking major, economic activity levels remain weak in the country, particularly investment demand, as demonstrated by still “anemic” order inflows and project starts. “Activity is likely at a trough, as easing financial conditions and liquidity suggest a modest upturn in 1H2013,” Goldman Sachs said. The next session of Parliament is scheduled to begin on November 22 and would take into consideration a number of important reform bills like — the Land Bill, the Pension and Insurance Reform Bills, and the new Companies Act.

Read more:  The Pioneer 

Indian construction industry second to none

The Indian construction industry has shown significant development over the years with eminent and efficient engineers at the helm and is second to none, a top official of Schwing Stetter (India) said here today. Inaugurating a conference on “Latest Trends in Construction industry”, Anand Sundaresan, Managing Director, Schwing Stetter (India) Pvt Ltd said the industry, among the best in the world, has eminent and efficient civil engineers, whose work has been lauded the world over. The industry still needed to develop, as civil engineers of late were struggling to construct buildings as a result of minimum profit due to hike in raw material cost. “Labour shortage and daily increase in price of raw materials has hit the industry,” Sundaresan, who is the past president of CII, said. He also urged Government to take steps to reduce the cement price.

Read more:  The Economic Times 

Infrastructure

Booming With World-Class Infrastructure

Greater Noida have drastically seen a transition in its infrastructure ever since F1 was planned to take a pit stop in this city. Coming out from a notion of providing bad roads and transportation facilities, Noida and Greater Noida have set up benchmarks as they now offer world class facilities in terms of transport, connectivity through roads, expressways, flyovers and includes some of the most posh hotels, companies, entertainment and educational facilities.

Offering a state-of-the-art technology, there are a plethora of facilities that the city now offers to its residents as well as travelers. Here’s an insight on some of the infrastructural development that has taken these regions to a new platform: Gone are the days when travelling to Noida was a painful task. Today the city has some of the best roads and provides connectivity to various destinations. Many flyovers and expressways have been constructed to offer a smooth connectivity and breaking away from long and snail-speed traffic. A major development in this sector is Yamuna Expressway. Within the city, to ensure a smooth access to Greater Noida, the 165 km long Yamuna Expressway was recently launched. Formerly known as Taj Expressway, this six-lane (extendable to eight lanes), controlled-access expressway, connects Greater Noida with Agra. Implemented by Jaypee Group, it connects the main townships / commercial centres on the eastern side of Yamuna.

Read more: Hindustan Times

Haryana govt set to take over Delhi-Gurgaon e-way

The Haryana government is mulling buying out operational rights of the 27.7-km Delhi-Gurgaon Expressway to ensure hassle-free commuting between Delhi and Gurgaon.

Haryana CM Bhupinder Singh Hooda announced the plan on Saturday. “We are going to talk to the surface transport and highways ministry and NHAI because we want to manage the toll plazas. Commuters have been suffering for a long time,” Hooda said.

Read more:  Hindustan Times | The Times of India 

Gurgaon master plan a gold mine for realtors

In a three-part series, Business Standard has explored how agricultural land has been commercially tapped and exploited over the years by developers, often with ample help from the government, and its impact on the stakeholders.

Read more:  Business Standard 

Hospitality

With global events, hotels hope biz boom

A series of big-ticket international events is breathing new life into the sagging business of hospitality industry in the Millennium City. Recently, the city hostel 18-nation Indian Ocean Rim-Association for Regional Cooperation. Next in the line-up is the World Economic Forum meet starting Wednesday. The factors such as proximity to Delhi and airport and excellent connectivity to other cities and space make Gurgaon the sought-after destination in the NCR. And it’s not just the MICE business (meeting, incentives, conferences and exhibitions) that’s keeping the hotels busy but a host of national and international musical and cultural events are pushing their business a few notches up.

Read more: Hindustan Times

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