Home prices have appreciated by an average 66% in Mumbai, 52% in Gurgaon and 46% in Bangalore over the past four years, with some pockets growing nearly 100%, say property consultants, belying hopes of fall in property prices.
A limited supply of clear land, demandsupply mismatch and rising cost of inputs like steel, cement and labour have contributed to the rise in prices in most locations. “On the demand side, affordability is getting better as salaries have increased by at least 10-12% per annum in this period helping home buyers take a decision,” says Niranjan Hiranandani, co-founder & chairman of Mumbai-based Hiranandani Group.
In addition, corporate investments have turned uncertain, and therefore, investors have moved to real asset classes like real estate and gold, which have became more attractive and offered better returns.
After the Lehman crisis in late 2008, property markets started to recover by 2010, but at that point, there was a huge demand-supply mismatch as many earlier projects got stalled due to the slowdown. This pushed up prices in the ensuing period, says Ajay Chandra, managing director of Unitech.
Read more: The Economic Times
Gurgaon’s master stroke for 2031 to drive realty
After the recent notification of the final development plan of Gurgaon-Manesar Complex 2031, the property markets of Gurgaon and its emerging satellite cities like Manesar, Dharuhera, Sohna, etc are expected to go northward. Additionally, the reserved Special Economic Zone (SEZ) too has opened itself to attract investment opportunities through upcoming residential projects. The plan is aimed at catering to the needs of an estimated 42.50 lakh populace by the year 2031 and is likely to create opportunities for realtors operating in the region.
Hailing the plan, some realty experts have already started opining that the National Capital Region (NCR) could soon be redefined as NCT (National Capital Territory). The think tank behind the final development plan of Gurgaon-Manesar Complex 2031 has estimated that more than 12 group housing projects and two townships would come up in the above mentioned residential sectors. This will create as many as 8,000 residential units and plots in these sectors. The initial work has begun as Haryana Urban Development Authority (HUDA) and some private builders have already developed a residential area of about 8,000 hectares in the various residential sectors.
Read more: The Economic Times
China, India to be largest investors among developing nations: Report
India and China are expected to be the largest investors among developing countries by 2030, with the two Asian giants accounting for 38 per cent of global gross investment, a World Bank report said today.
“Among the developing countries, China and India are expected to be the largest investors, with the two countries together accounting for 38 per cent of the global gross investment in 2030. All this will change the landscape of the global economy, and GDH analyses how,” said Kaushik Basu, World Bank’s Senior Vice-President and Chief Economist.
According to the latest edition of the World Bank’s Global Development Horizons (GDH) report, by 2030 half the global stock of capital, totalling $158 trillion, will reside in the developing world, compared to less than one-third today, with countries in East Asia and Latin America accounting for the largest shares of this stock.
The developing countries’ share in global investment is projected to triple by 2030 to three-fifths, from one-fifth in 2000, says the report titled ‘Capital for the Future: Saving and Investment in an Interdependent World’.
Read more: Business Line
India offers unlimited investment opportunities in infra: P Chidambaram
Finance Minister P Chidambaram has said that India offers “unlimited” opportunities for investment in infrastructure sector as the country needs more roads, airports and seaports.
“What I am telling the investors here and the government here is that there is a huge opportunity in India, especially in infrastructure,” said Chidambaram.
“There is no other country in the world which requires so many thousand kilometres of road, so many airports, so many seaports, so much more capacity of steel, mining, power. So I think the opportunities are unlimited,” he said.
Referring to rate of price rise, he said, “inflation has come down sharply in the last two months and I think numbers for April is doing better. In fact, we are talking about core inflation having reached a zero level.”
Inflation, based on the Wholesale Price Index, fell to 41-month low of 4.89 per cent in April on account of decline in prices of food items, including fruits and vegetables. It stood at 5.96 per cent in March. In April, 2012, it was 7.50 per cent.
Read more: The Economic Times
NRI guide to property investment in India
NRIs have always been opportunistic in terms of investment avenues and returns. The government regularly comes up with new schemes to attract more and more investments from abroad. Real estate is one of the sectors which always grabs the attention of non-residents.
The Reserve Bank of India has also given permission to all non-residents who possess Indian passports as well as people of Indian origin to put their money in the real estate sector (residential as well as commercial property). The number of NRIs investing in real estate is increasing fast as the value of the rupee is depreciating and real estate offers better returns. A place in the homeland usually gives a sentimental support and sense of security, which is the other reason of investment in real estate by NRIs.
The RBI along with the Foreign Exchange Management Act (FEMA) has become lenient in terms of rules and regulations for non-residents who are looking for an investment in real estate. They are not only simplifying the rules but also providing the benefit of repatriation of the capital involved. The government is planning some investment growth activities through their investment promotional council, to create an environment appropriate for non-residents to put money.
Read more: NDTV
India to deploy Rs.17,500 crore to boost local telecom products
India has proposed to set up three funds with a combined corpus of Rs.17,500 crore to boost local research and manufacturing of telecom products as it seeks to cut dependence on imports at a time when the current-account deficit has widened to a record and also to reduce security concerns posed by such imports, particularly from China.
The government will initially allot Rs.5,000 crore to the Telecom Research and Development Fund, Rs.2,500 crore to the Telecom Entrepreneurship Promotion Fund and Rs.10,000 crore to the Telecom Manufacturing Promotion Fund during the 12th Five-year Plan ending March 2017, according to an internal document of the department of telecommunications (DoT) that has been reviewed by Mint.
Widening trade and current-account deficits and security concerns about cheap equipment imports from countries such as China have prompted the government to look for local alternatives. Indian companies that import telecom network equipment from China’s Huawei Technologies Co. Ltd and ZTE Corp. require security clearances from the government.
Read more: Mint