Real estate is one of the most preferred investment avenues in India today, and Delhi NCR is second only to Mumbai on the list of most favoured real estate destinations in the country. This is largely owing to the high return on investments investors have received from the city. In a recent survey by MagicBricks.com a whopping 91 per cent respondents had revealed that they would be investing in real estate this year and out of this nearly 22 per cent wanted to invest in Delhi NCR.
So which areas would see a high demand this year? “In 2013, the outlook remains promising for Dwarka Expressway because of its infrastructure advantages and the location benefits it enjoys. The stretch has witnessed an appreciation of nearly 50 per cent in the past one year and is expected to remain the favourite for investors keen on gaining high return on investments,” says Sanjay Sharma, managing director, Qubrex.
Other important areas to watch out for in 2013 for residential realty will be New Gurgaon and Manesar. “The increase in commercial developments, its developing infrastructure, continuing affordability and the proposed connectivity via Metro and the Expressway will put this region on radar in 2013,” informs Santhosh Kumar, CEO, Operations, Jones Lang LaSalle India.
Read more: Magic Bricks
Express hot tips: Realty hotspots abroad
While investing in property, the thinking earlier was to invest in the city one settled in. With growth in the real estate sector taking off, investors began looking at other promising realty destinations in the country. As needs evolve, and with incomes rising, property investors have began to look at opportunities abroad.
According to the Foreign Exchange Management Act (FEMA) a person resident in India can acquire property abroad by way of gift or inheritance from a person residing outside India. The Indian resident can also buy immovable property outside India during the duration of his employment in that country.
FEMA also allows the Indian resident the liberty to remit up to $200,000 per financial year, which also helps the person with cash much needed to buy the dream property outside India. That means a couple can invest $400,000 abroad. Let us examine three popular cities where Indians are buying property: Dubai, London and Singapore.
Read more: Indian Express
Demand for Realty Set To Rise In Coming FY
The coming financial year (FY) will see renewed activity in the retail sector. Industry experts are hoping for a new lease of life. “Given the current economic trends and the recent Union Budget proposals, an economic revival is expected from the second half of 2013, which in turn will give a boost to the real estate sector as well. With many companies contemplating expansion in the city and revving up the hiring process, the realty sector is likely to gain momentum as the year progresses,” says Sanjay Dutt, Executive Managing Director – South Asia, Cushman and Wakefield.
“While residential real estate will see revival in execution, office space will witness an increase in demand from occupiers and investors,” says Sachin Sandhir, Managing Director, RICS – South Asia. The overall commercial office real estate demand growth is expected to be stable in 2013, due to the numerous headwinds.
Read more: The Times of India
Rentals hit the roof in the Delhi-NCR
Piyush Sharma is cursing himself for not taking a DDA flat in Mayur Vihar on rent last June, as he had to go back to his native place to attend a family function.
One thing led to another and he was held back there for a few months. He is back in Delhi and as he resumed his hunt for a rental flat in Mayur Vihar , he is shocked at the rates being quoted by property dealers. The rates are nearly 20% higher than when he made the rounds here last year.
Well, rentals are going up everywhere in the capital, as well as in the whole of the NCR. As if this were not enough, relations between landlords and tenants have also changed in a big way.
“I am simply dazed that a DDA flat on third floor which was offered to me at Rs 18,000 per month only six months ago is now available for not less than Rs 20,000. I have no idea why rents have gone up,” Piyush says in exasperation.
Read more: Magic Bricks
Yamuna Expressway in Delhi/NCR is poised to be the growth engine
Yamuna Expressway is India’s longest access controlled expressway with six-lane concrete pavement. The 165km-long expressway connecting Noida with Agra is poised to be the growth engine for all-round economic and industrial growth in western UP. It covers around 30 lakh people under its sphere of influence.
The Yamuna Expressway Industrial Development Authority (YEIDA; Yamuna Expressway Authority or YEA in short) has laid down a ribbon development model along the Yamuna Expressway to promote special economic zones in core activities like IT, industry, and commercial enterprise.
Why Yamuna Expressway
The Yamuna Zone, spread over more than 2,30,000 hectares (from Greater Noida to Agra) along the 165kmlong Yamuna Expressway, is being developed as one of the preferred zones for residential, industrial, institutional, sports, recreational and service sectors.
Read more: Magic Bricks
US shale gas export to desperate India to could be game changer: Experts
If America allows shale gas exports to India, it will not only help address the Asian nation’s energy needs and strengthen bilateral relationship, but also end up being a game changer for the US interests in the Asia-Pacific region, say experts.
“The US has this great leverage, in terms of energy exports. So, I think, that reinforces my view that we need to get this big thing going where there are much more 2-way trade -offs possible,” former IMF economist, Arvind Subramanian, Senior Fellow at the Peterson Institute for International Economics, told a Congressional hearing on Wednesday.
Dan Twining, a Senior Fellow for Asia at the German Marshall Fund of the United States, also supported the move at the hearing and argued that this would help the US build its security architecture in the Asia Pacific region.
He said: “We should also particularly build in that dimension to our key security partnerships in Asia. In Asia our top most important, most capable security partnerships are with Japan and India in different ways
“…say to them, look, part of this package could be preferential access or some facilitated agreement to US energy exports, because in fact, we have a national security interest in helping you develop your economy and helping you develop your military capacity, help us police this tough region in the world, create some ballast in Asia other than around China.”
Read more: Indian Express
Equity has begun to outperform gold
A year ago, Gold, at Rs 27,385 per 10 grams was not only expensive but a lucrative investment bet given the kind of run-up seen in its prices ever since the financial meltdown of 2008. Taking cue from its historic run-up, many investors had thronged to buy gold then that eventually crossed Rs 32,000 per grams in September ’12, prompting investors to buy even more of the yellow metal anticipating even better returns.
Today, a year down the line, these investors have nothing much to cheer about. The consistent correction in the prices of the yellow metal over the past six months has resulted in mediocre 6% returns for those who invested in the yellow metal a year ago. BSE Sensex, on the other hand, has risen by over 9.2% during this period while mutual funds investing in large and mid cap stocks, generated 8.36% on an average, during this period.
To put it simply, after having emerged as a strong hedge against inflation and a contra investment option to equity markets over past five years, gold has begun to mellow down sending strong signal to those obsessed with the yellow metal that is probably is the time to look beyond. It probably is time, once again, to consider equities for a larger part of one’s investment portfolio after providing for risk-free investment options like bank fixed deposits, PPF and other similar products.
Read more: The Economic Times
The Insurance Bill: An opportunity to attract FDI and support growth?
The amended Insurance Bill due to be tabled before Parliament in the Budget Session aims to increase the Foreign Direct Investment (FDI) limit from 26% (set in 1999) to 49%. It was expected that this limitwould have been increased in a conscionable period of time. FDI limits in other financial serviceswere lifted after five years; but for insurance it remains 26% even after 13 years.
In January, Indicus Analytics, released a study on ‘The Case for Increasing the FDI Cap in Insurance’. In setting a contextual background its prominent (economist)authorspoint out that India’s economic history is replete with missed opportunities. Growth and investment have invariably been impeded by misguided notions of self-reliance that – though argued for loudly by politicians to protect the national interest — end up achieving the opposite.They add that the debateabout increasing FDI in insurance is similar towhen private domestic banks were opened up to FII. Such banks are now at the 74% FII limit(e.g. HDFC and ICICI). Thesebanks seem to be playing a much more prominent and useful role than they did before the limit was raised. But these banks were never set up with foreign joint-venture partners, as was the case in insurance.
Read more: Business Standard