The real estate sector in India has grown leaps and bounds in last decade. A strong economy in emerging India has fuelled the growth of Indian real estate industry.
Growing professionalism, improvement in the delivery of services compared to previous decade and ingenuity in the sector has led real estate companies to voluntarily adhere to international building standards including adopting green building codes and even made them venture into new horizons including integrated townships and campus towns.
Real estate has the unique distinction of being the driver of the overall economy as well as the greatest source of individual wealth. Real estate is no longer just a home to live in, it has also turned into an attractive investment avenue.
Real estate also carries a unique advantage of being a store house of value and an effective inflation hedge. Large industries, small and medium enterprises and individuals alike often carry real estate in their books as a means of wealth preservation and value appreciation, notwithstanding as an effective hedge against inflation.
Read more: Money Guru India
NRIs eye real estate to get bigger bang for weaker buck
Rupee depreciation has been a matter of concern for most segments. But there is one section, the non-resident Indian community, which is keen to make the most of this development to make investments in the real estate.
“The rupee has depreciated nearly 18-20 per cent in the last two years. Enquiries from NRIs have gone up lately as they are keen to make the most of this situation,” Anuj Puri, Chairman and Country Head, Jones Lang Lasalle, said.
Inputs from markets across the country show that NRIs are keen to invest in real estate now as they see more value for their investments.
While they gain due to the low rupee value versus, say, the dollar, property prices have still not reached the peak rates of 2008, making it more attractive to buy now, he explained.
In the past five years since the 2008 peak, prices have gone up about 18 per cent in Hyderabad, 74 per cent in Bombay, 46 per cent in Bangalore, 38 per cent in Chennai, 54 per cent in Kolkata and 43 per cent in Pune. The most preferred range of homes is in the Rs 40-60 lakh category. However, there seems to be oversupply in the luxury market in cities such as Mumbai and other metros.
During an interaction here, Puri said the regulatory environment is still a matter of concern, hampering investments.
Read more: Business Line
Real estate body hails new green guidelines by govt
New guidelines issued by the Union environment ministry will give more flexibility to state governments in taking decisions about high-rise buildings, the National Real Estate Development Council (NAREDCO) has said.
The new norms allow local administrations to decide on high-rise buildings based on issues such as population density and pressure on land, said Sunil Mantri, vice president of NAREDCO.
He said the new guidelines will help in clearing many stalled projects and also encourage slum rehabilitation plans.
The Union ministry of environment and forest has issued guidelines after taking suggestions from various state governments and experts from real estate industry.
The ministry also examined the representations and recommendations of the committee constituted under the chairmanship of Dr. K Kasturirangan, member of planning commission.
“We are glad that the anomalies within earlier guidelines have been removed. The new guidelines will help more than 100 projects to complete construction. Our estimate is that nearly Rs. 10,000 crore has been blocked in such projects,” Mantri said. He said that authorities in congested cities such as Mumbai had been facing major challenge in implementing the norms related to road width and height of buildings.
Read more: Hindustan Times
Drop in inflation can pave way for rate cut:India Inc
Inflation easing to three and a half year low levels in May paves the way for the Reserve Bank to cut interest rate on June 17, India Inc today said.
Industry chamber Ficci asked the RBI to consider a rate cut and persuade banks to pass on benefits to borrowers.
“With the downward trend in the prices holding on, RBI can consider a cut in the policy rate in the forthcoming Monetary Policy Review,” it said.
Echoing similar views, CII Director General Chandrajit Banerjee said, “As non-food manufacturing inflation, which is widely used by RBI as an indicator to track the demand side pressures on the economy, has been showing a secular downward trend, it should encourage RBI to cut interest rates in its forthcoming Monetary Policy review slated for June 17.
ALSO READ: RBI can consider low inflation while deciding key rate: Montek
While the Reserve Bank has lowered interest rates by 1.30% since January 2012, the banks have cut lending rates by only 0.30%.
Macroeconomic signals continue to remain unimpressive with industrial output grew at a meagre 2.3% in April.
Read more: Business Standard
India’s navigation satellite set for July 1 launch
The Indian Space Research Organisation (ISRO) has now scheduled the launch of the country’s first navigation satellite for July one after rectifying an anomaly.
“Review is on. It’s scheduled to be launched at 11.43 PM on July one,” ISRO sources said here today. The Indian Regional Navigation Satellite System-1A (IRNSS-1A) was scheduled for launch on board Polar Satellite Launch Vehicle (PSLV-C22) on June 12, 2013, from Satish Dhawan Space Centre, Sriharikota.
The spacecraft had gone through all electrical checks and was ready for propellant filling. The PSLV-C22 was fully integrated and was undergoing electrical checks.
But during the electrical checks of the launch vehicle early this month, an anomaly was observed in one of the electro-hydraulic control actuators in the second stage, forcing the space agency to postpone the launch. Bangalore -headquartered Indian Space Research Organisation (ISRO) has since replaced this actuator.
Read more: Business Standard
Air-Evac on Call
Though three bullets ripped apart his chest, abdomen and left thigh, senior Congress leader VC Shukla, 84, survived the Maoists ambush in Chhattisgarh’s Bastar district, which left 27 dead and 32 injured last fortnight.
Apart from his indomitable will, what helped him live was air evacuation, which made him reach specialists at Medanta in Gurgaon, more than 900 km away from Raipur, within hours of being shot.
Some others could not make it. Delhi’s brutalised gangrape rape victim was hanging on to her life by a thread when Medanta’s critical care team airlifted her to Singapore in the early hours of December 27 in 2012.
“I looked at her and decided we had to do even better for our patients. We had air-ambulances, but what we needed was an ICU (intensive care unit) in the sky,” said Dr Naresh Trehan, chairman, Medanta.
Read more: Hindustan Times