Poor GDP projections, reduced liquidity for end users, a rising consumer inflation index and a plethora of other reasons may have their impact on the country’s real estate, but that will not be the case with the NCR — the market which is witnessing a renewed interest in residential development.
The inhibitions that end-users had earlier, due to irregularities in land acquisition and approvals, are also a thing of the past.
NCR’s residential market is expected to see renewed momentum in terms of fresh supply with several large projects including townships expected to be launched in 2013 concentrated on emerging locations of Gurgaon and Noida such as Dwarka Expressway, Southern Peripheral Road, Noida Extension, Greater Noida and along the Noida-Greater Noida Expressway. There would also be a very wide variety in product offering ranging from affordable to luxury, with the majority expected to cater to the affordable and mid-priced segment.
Of the two locations, Noida is expected to outdo Gurgaon with an estimated 68,700 units expected to get completed. More than 85 per cent of these units have already been sold to buyers/investors in the primary market. Given the huge influx of supply and steady demand, a moderate price appreciation is expected in the coming year.
Read more: Indian Express
Housing Sector Will Grow In Spite Of the Budget
The Union Budget 2013-14 may have announced certain measures to boost affordable housing and rural development but it failed to meet expectations of the real estate industry by not offering anything on key demands for a real estate regulator and the enactment of the Land Acquisition Act. B Sridhar, the national director of Jones Lang LaSalle NCR, said: “Though there was no hike in service tax, the implementation of 1 percent TDS (to be charged on the transfer of immovable property) is going to be a nightmare for the industry!” He also said that valuation will not go up or down with this Budget and that “there will be hardly any change in the discounting rates”. Anil Sharma, the CMD of Amrapali Group, agreed with Sridhar’s assertion and said: “Maximum properties that are being developed today cost more than Rs 30 lakh. Thus, the additional deduction of Rs 1 lakh for housing up to Rs 25 lakh will not be of much help. A buyer wanting to invest in a property worth Rs 50 lakh will have the additional burden of paying TDS of 1 percent.”
Read more: The Times of India
World Bank sees 6% plus growth for India in 2013-14
Sharing the Government’s optimism, the World Bank has estimated that India’s economy may grow over six per cent during 2013-14.
Addressing reporters after his meeting with Finance Minister P. Chidambaram, the World Bank Chief Jim Young Kim said, “We think India is going to grow by six per cent next year and we hope for more increase in future.”
Giving reasons for this optimism, he said the Indian economy, like any other economy, was impacted by the global slowdown. At the same time, the export market had started doing better. “We think India will do better as well,” he added.
Kim is on three-day visit to India, his first after assuming charge last July. His visit coincides with India’s growth touching a decadal low of five per cent. However, the Economic Survey has projected a growth rate of 6.1-6.7 per cent during 2013-14.
Expressing disappointment over the current growth rate, he said India had made an extraordinary contribution to the global economy, with its share in the global economy almost doubling in five years (2005-2010).
Read more: Business Line
FIPB to Consider 26 FDI Proposals on Wednesday
The Finance Ministry on Wednesday will consider 26 proposals of foreign direct investment (FDI), including that of Punj Lloyd and Pipavav Defence and Offshore Engineering Company. The proposals are listed on the agenda of the 189th meeting of Foreign Investment Promotion Board (FIPB). The meeting will be headed by Department of Economic Affairs Secretary Arvind Mayaram, an official said. Six of the FDI applications, including that of Tamil Nadu based SIDD Life Sciences and Mumbai-based Sanofi-Synthelabo (India), to be taken up the Board this week are related with pharma sector, an official said. India allows FDI in most of the sectors through automatic route, but FIPB clearance is required in certain sensitive sectors. For the April-December period of 2012-13, the inflows have declined by about 42% to $16.94 billion.
Let’s Crank Up Investments
The Indian economy has been performing well below its potential for the last two years. In 2012-13, GDP growth fell to its lowest in the last decade and new investments have moderated to a trickle.
While this can partly be attributed to the downturn in the global economy, domestic issues have also acted as a constraint. In particular, the downturn in investments was caused by high domestic interest rates on the one hand, and bottlenecks in clearance of projects on the other. The government has already started taking various steps to reverse the situation, and one can hope that some correction will take place over the next few months.
Fast Track for Projects
Once it became clear that projects were getting delayed due to various issues, ranging from land acquisition to environmental clearances, the government set up the Cabinet Committee on Investments (CCI) to look into these issues for projects exceeding Rs 1,000 crore in size. The CCI, which is chaired by the Prime Minister, has already had several meetings in which it has set timelines for reviving stalled projects. This will certainly have a positive impact on fast-tracking large projects, especially those related to infrastructure.
Read more: Business Line
Global biggies rush to invest in roads
Several global funds and equity investors are making a beeline for investing in the highway sector, a move that will free up thousands of crores for Indian developers – funds that were held up in the absence of a government decision to allow existing players to exit immediately after completing the project.
Sources said Uniquest Infra Ventures, the joint venture between Malaysian government sovereign wealth fund Khazanah Nasional Berhad and IDFC, alone has expressed interest in buying stake in nearly a dozen road projects.
Similarly, SBI Macquarie Infrastructure Fund has discussed the possibility of investing up to Rs 20,000 crore in projects that are nearing completion. Tata Realty is eying four projects, while Morgan Stanley is entering the space too. Sources said Morgan Stanley is in talks for buying into KMC Constructions, which is getting all its road projects under one company. Morgan Stanley is also buying a 15% stake in the Surat Hazira project.
Source: The Times of India
To overcome commuter’s difficulties, now permit for auto in Delhi-NCR area
Now the commuting from auto in the NCR area is going to be easy for the passengers, as government has decided to issue permits to auto driver to ply in the NCR area. Earlier traveling by auto in the NCR area was difficult as there is a lack of common permit in the different parts of Delhi-NCR.
Keeping in view the problems of commuters, now Delhi government has decided to issue permits to auto driver to drive in the Delhi and NCR area. Delhi Transport Department has decided to issue permits to 8000 Autos for plying between Delhi & NCR towns in Haryana and UP.
Delhi Transport Minister Ramakant Goswami stated that the permits are being released in accordance with the Reciprocal Common Transport Agreement among the Governments of Delhi, Haryana and UP signed on 14th October, 2008.
The 8000 permits are being released out of the number of 45,000 autos being added in the Capital City as per instructions of the Hon?ble Supreme Court.
Source: News Track India
Rishad Premji, Anant Gupta among 56 in race to join Nasscom council
Rishad Premji , son of Wipro Ltd chairman Azim Premji , and Anant Gupta , the new chief executive of HCL Technologies Ltd , are among 56 candidates running for election to join the executive council of Nasscom.
The lobby representing India’s $108 billion information technology (IT) industry is undergoing its biggest makeover after years of representing large software outsourcing firms such as Tata Consultancy Services Ltd and Infosys Ltd.
Nasscom, faced with criticism by small software product firms that it tended to favour the interests of the larger software services companies, last year appointed a seven-member committee led Infosys founder N.R. Narayana Murthy to recommend ways to restructure the association.
Earlier this month, the panel said the trade body will restructure its executive council to ensure adequate representation for the newer areas of Internet and start-ups. This, Murthy said, will help the Indian IT industry achieve $300 billion (around Rs.16 trillion today) in revenue by 2020.
Som Mittal, president of Nasscom and a member of the panel led by Murthy, said 18 executive council members will be elected by 1,400 members of the association by 19 March.
Nasscom has put up the list of candidates on its website.
Read more: Mint