Rentals across NCR go up by nearly 25%

07_01_13-metro4For most people, owning a house in Delhi is beyond their means. Now even renting a house in the Capital has become an expensive proposition in the past two years.

Not only are the rentals in the preferred localities of south and central Delhi touching the sky, rents for houses in east and west Delhi and NCR areas have spiralled as well.

According to a recent survey by leading real estate portal 99acres.com, rentals for residential properties have seen an average rise of 25% in Delhi NCR with rentals in most areas appreciating by 10% annually.

Thanks to the advent of Metro, areas such as Vaishali (41%), Vasundhara (46%) and Indirapuram (34%) have also seen a spurt in rentals in the past two years.nak

Noida, which has been a preferred destination for the middle-class for many years, has seen a jump of 30-35% in rentals.

More preferred areas in south Delhi, such as Defence Colony, Green Park, Hauz Khas and Safdarjung Enclave, on the other hand, have not seen much appreciation, thanks to limited availability of houses and their already sky-high rentals.

In fact, according to the survey, areas such as Green Park and Lajpat Nagar have witnessed a slight lowering of rentals in 2012.

Read more: Hindustan Times

Reliability quotient: Home loans easier if woman is first applicant

If you are applying for a home loan, put your wife as first applicant to get preference in sanctions.

“Our data show that loans given to women or with them as first applicant are very regular and disciplined in repayment,’’ V. K. Sharma, Director and Chief Executive, LIC Housing Finance Ltd, told Business Line here on Saturday.

Of the eight lakh advances the third largest home-loan company in the country has made, about 1.47 lakh are to women. “We want to take this number higher,’’ he added.

‘Bhagya Lakshmi’ scheme

The company now plans to attract more women applicants through a special ‘Bhagya Lakshmi’ scheme that offers 25 basis lower interest than the usual rate.

Bankers see many factors that drive women to be prompt in home loans. “If she is a first applicant, she resists the idea of losing the house by defaulting,’’ said Sharma. According to Archana Bhargava, Executive Director, Canara Bank, women are generally ‘more committed’ when it comes to financials and hence the prompt repayment.

This could also be seen in generally high repayment rates in loans given to women of self-help froups, she said.

Read more: Business Line

Delhi government relaxes norms on construction of additional floors

In a major relief to lakhs of residents in Delhi, the government has relaxed norms for construction of additional floors in residential flats having multiple ownership with an aim to weed out corruption and help people get their building plans sanctioned without any hassle.

As per a new directive, people having right over third floor will no longer require to obtain a no-objection certificate (NOC) from the other floor owners for expansion of third floor.

Top officials in the Lt Governor’s office said a “very clear-cut” instruction was given to all the municipal bodies last month not to insist on production of NOC for giving approval for construction of third floor”. However, the occupants of the existing floors will have the option of expressing their views to the municipal bodies about expansion of the building.

The Lt Governor directed the municipal corporations to examine structural safety and compliance of building bye-laws while giving approval for construction of the third floor.

“It was decided that permission for construction of an additional floor may be granted by respective municipalities keeping with provision of building bye-laws,” the official note said.

It said the municipal corporation must look into aspects such as “structural safety, fire safety, non obstruction of passages and air and sunshine for neighbours and neighbouring buildings” before approving any building plans.

Read more: The Economic Times

Reforms in real estate key to GDP growth: Credai

Reforms in real estate sector hold the key to the Government achieving GDP growth targets, according to Pradeep Jain, Chairman, Confederation of Real Estate Developers Associations of India.

Tax reforms and measures to access low cost funds through external commercial borrowings are needed, he said.

He told mediapersons that the sector impacts more than 250 manufacturing and services industries including steel and cement.

A fillip to real estate development holds immense potential for boosting economic activity and job generation. Supporting the real estate sector is important for the Government to achieve growth targets of 7-8 per cent.

Also, residential development needs to be supported to address the housing needs of the public, he said.

In the coming Budget, Credai, the apex representative body of builders, hopes to be granted industry status, measures to bring down home loan rates and bank support for project development. Tax concessions for affordable housing and income tax relief will help, he said.

Prevailing policies are unfavourable to builders sourcing bank funds. They are now dependent on presales and internal generation. This does not help increase housing supply. Providing industry status to housing will help the builders access bank funds, he said.

External commercial borrowings have to be through the automatic route and not approval route, which is time consuming, he said.

Read more: Business Line

Investment

Delhi NCR, Maharashtra attract over 50 per cent of FDI in India

Maharashtra and National Capital Region have cornered over 50 per cent of the foreign direct investment inflows into the country since April 2000, according to the industry ministry data.

Maharashtra attracted maximum foreign inflows at $61.13 billion, about 33 per cent of total FDI inflows during April 2000 – October 2012.

Delhi’s National Capital Region (NCR) including parts of Uttar Pradesh and Haryana, received $35.4 billion foreign direct investment during the period.

NCR accounted for 19 per cent of the country’s total FDI. During the period, India received $185.7 billion foreign inflows, according to the data.

According to experts, the main reason for the maximum inflows into Maharashtra and NCR is substantial improvement in the infrastructure and pro-active approach of the respective governments.

“Infrastructure in these areas have improved considerably and that is making them attractive destination for foreign investment,” an official said.

Read more: The Economic Times

Ireo Victory Valley, Gurgaon

Ireo Victory Valley, Gurgaon

Private Equity investments in India aggregates over $8bn in 2012, Four-S reports

The year 2012 saw 475 PE/VC deals worth $8.13bn, a decline of 27% compared to investments worth $11.18bn across 423 deals in 2011, according to data with research and financial consulting firm, Four-S Services. Fund managers continued to be cautious amid challenging environment, taking longer period to deploy their funds. New fund raising was also slow, contributing to the investment slowdown.

The year was largely marked by smaller value deals leading to a decline in average deal size to $27mn from $33mn a year ago. There were only 22 deals above $100mn in value (worth $3.68bn) compared 30 deals (worth $5.91bn) in 2011. This was due to fall in high value infrastructure deals – 2 $100 plus deals in 2012 compared to 11 such deals in 2011

The largest PE investment during the year was wherein Bain Capital agreed to buy 30% in BPO firm Genpact for $1bn. This was followed by $210mn investment by Morgan Stanley Infrastructure Partners to buy majority stake in Continuum Wind Energy, a wind energy firm. In another mega deal, Blackstone acquired 50% stake in Embassy Property Developments owned portfolio of three business parks for $200mn.

Real Estate: The Economic Times

Logistics

Delhi-NCR logistics industry performs well despite temporary slump in economy

The logistics industry is in for good times. In spite of the temporary slump in the economy, huge investments in infrastructure, rise in domestic consumption and retail markets, and the potential growth offered by the manufacturing sector promises huge opportunities for the logistics industry in the NCR.

The size of this industry in the country has been estimated to be worth US $80- $100 billion. And players say that it has shown a growth at around 15 per cent CAGR in the last few years. The players in the areas, in and around Delhi and the rest of NCR are trying their best to gain the maximum out of this opportunity.

“The industries in Gurgaon, Noida and Faridabad have opened new opportunities for us. Out of the 460 offices we have across the nation, 10 are in Delhi,” said Akash Bansal, country head of Om Logistics, which has its headquarters in Delhi.

The company, founded in 1983, started operations by carrying completely built units (CBUs) for vehicle manufacturers of the NCR, Maruti Suzuki being one of them. It still provides services to NCR-based vehicle manufacturers, such as Honda Siel Cars India (Honda Cars).

Read more: The Economic Times

Policy

Land to Get Top Billing in Parliament

Having failed to get its pet legislation, the land acquisition Bill, passed in the Winter session of Parliament, the government is leaving no stone unturned to ensure its safe passage during the Budget session after building a broad political consensus. Union rural development minister Jairam Ramesh, who is piloting the Bill, remains optimistic about its fate. “We will present it soon after the railway budget and the (general) Budget. The Bill will be our top priority in the Budget session,” he said. To mobilise support for the Bill, Ramesh has prepared a list of frequently asked questions about the legislation, whose answers have initially been sent to about 90 members of Parliament cutting across party lines. The government might reach out to more MPs after the feedback comes in from the first set of lawmakers. The FAQs address a number of doubts about the Bill, such as the relevance of the title ‘ The Right To Fair Compensation And Transparency In Land Acquisition, Rehabilitation And Resettlement Bill 2012’, why a need arose for a new land acquisition Bill, the role of the government in acquiring land for private firms and PPP projects.

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Business

India Inc Set to Declare Spring in a Gloomy Winter

India’s top 50 firms are likely to report a 12.2% rise in net profit in the quarter to December, compared with the year-ago period, reflecting lower cost of funds and improving operating profits.

According to an analysis by the ET Intelligence Group, the companies in the 50-share Nifty index may report a 17.6% yearon-year growth in operating profit for the third quarter — the best in six quarters.

This growth will be driven largely by a better operating performance from drug makers Cipla, Lupin and Sun Pharmaceuticals, utilities such as NTPC and Tata Power, and cement makers ACC, Ambuja Cements and UltraTech.

Revenue, or sales, growth for these firms, however, is likely to be 9.3%, the lowest in 13 quarters, as companies across sectors struggle to maintain volume growth due to sluggishness in industry and bearish sentiment among retail consumers. “Volume growth doesn’t look encouraging for major sectors, including fast-moving consumer goods, metals, mining and oil & gas,” said Ambit Capital’s equity head Saurabh Mukherjea. “Apart from select sectors such as IT, the margins story will not be compelling either for the December quarter.”

Read more: The Times of India

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