Weak rupee draws NRIs to Indian realty

Rupee depreciation may be bad news for the Indian economy, but not so for the non-resident Indians (NRIs) scouting for  property back home. Cashing in on the opportunity to buy residential units cheaper by up to 20%, NRIs are queueing up big time.

“The enquiries from NRIs for buying property in India have risen by at least 15-20% following the rupee depreciation. The enquiries may go up further once it touches the 60 mark,” Harinder Singh, managing director, Realistic Realtors, said. Eager to hardsell the Indian real estate story, Singh said “it is the most advisable time for NRIs to invest in India”.

The number of calls from NRIs have gone up to 800 per month from 200 earlier at Investors Clinic, a real estate portal, as the property prices for them has come down by 20-25%, according to Nishant Singhal, Director – Strategy & Alliances, Investors Clinic. Even before the rupee depreciation had begun, the NRI community had begun stepping up their enquiries in anticipation, according to analysts.  Read more:  Business Standard 

GA-Duplex-blog

Property sales hold strong in Mumbai, says brokerage

While the property market here is almost stagnant, growth in registration of properties is showing a rise. Registration for April and May saw year-on-year increases of 24 and 15 per cent, respectively, show data.

In March, sales registrations hit a 31-month high — registrations rose 20 per cent year-on-year.

On a monthly basis, however, April and May saw declines of eight and six per cent, respectively, according to data collated by stock brokerage Prabhudas Lilladher from the Director General of Registrations, Mumbai. Registration data comes with a lag effect of three to four months, as buyers usually register properties a couple of months after the purchases. Data collated by the brokerage included that for homes and offices.

Read more: Livemint

Policy

New real estate bill is a bitter pill the industry needs for long-term cure

The proposed real estate bill, if implemented, will hamper cash flows and escalate the cost of capital of realty firms, besides limiting overall growth of the industry.

Of all the proposals, the most negative for the developer is the one that says the builder will have to set aside 70% of the payment from the buyer to be used only for that project. This means, most of the builder’s money will get blocked till the project is complete and cannot be used to buy additional land for future projects or service earlier debt.

If the builder wants to invest in additional land, he will have to borrow money. The consequence of this could be fewer project launches and lesser projects in the pipeline, limiting growth.

Another proposal says the builder will not be allowed to sell or even advertise the projects until all the requisite clearances are received, which means there would be no pre-launches. This will delay the recovery of land cost, which was earlier 1-1.5 years. In other words, return on investments will be lower.

Read more: Economic Times

How new real estate bill could reshape the realty ecosystem?

1) Project Registration

When the Real Estate (Regulation and Development) Bill 2013 comes into effect, all projects will have to be registered with a real estate regulatory authority.

Promoters will have to disclose details about the project (name, type, plans, partnership companies, names of persons involved with construction etc). Will have to specify what kind of area is for sale (based on standardised markers).

All brokers and agents will have to be registered with the regulator before they can practise. Builder will have to provide a list of agents who will represent each project.

Once the project is registered, all details will have to be put on the website and updated every quarter. This includes disclosing the extent of project completion.

Read more: Economic Times

Economy

High Net Worth Individuals: India next to only HK in growth

via Economic Times

The world is home to 1.2 crore millionaires with collective net worth reaching a record high of USD 46.2 trillion, with India clocking the second highest growth of 22.2 percent in its High Net Worth Individuals (HNWIs) population last year after Hong Kong, a report said today. According to the World Wealth Report 2013, released by Capgemini and RBC Wealth Management, the investable wealth of the world’s High Net Worth Individuals (HNWIs) rebounded in 2012, growing by 10 percent to reach a record high of USD 46.2 trillion, after declining 1.7 percent in 2011. Among the Asia Pacific countries, Hong Kong experienced a 35.7 percent increase in its HNWIs population, followed by India, with 22.2 percent growth. The growth in number of HNWIs in India was attributed to positive trends in equity market capitalisation, gross national income, consumption and real estate.

Read more:  The Financial Express  | The Economic Times  

Rupee plunge knee-jerk reaction, recovery on way: Economists

The rupee’s plunging to record level and a sharp fall in the equity market are knee-jerk investor reactions to the US Federal Reserve’s saying the it will slow down bond-buying programme in view of improving American economy, economists said today.

The recovery of the world’s largest economy, they said, will boost Indian exports.

The rupee, which has touched all-time low of 60 against the US dollar in intra-day trade today, is also likely to appreciate from these levels, they added. Yesterday, the rupee had closed at 58.70, gaining 7 paise.

Read more: Economic Times

US welcomes India as a rising power: John Kerry

The US welcomes India as a rising power and backs its inclusion as a permanent member of a reformed and expanded UN Security Council, Secretary of State John Kerry has said ahead of his maiden visit to New Delhi.

In a video message for Indians ahead of the next week’s Indo-US strategic dialogue, Kerry said that this is a critical ongoing conversation between the two countries.

“It’s one that demonstrates our firm belief that a strong India is in America’s national interest. The United States not only welcomes India as a rising power; we fervently support it,” Kerry said in his nearly five minute video message, which he starts with Namaskar.

Read more: Economic Times

Infrastructure

DDA to give Rs. 1,500 crore to Metro

The Delhi Development Authority (DDA) has extended financial support for the Delhi Metro Rail Corporation’s (DMRC) Phase III and IV expansion plans in Delhi NCR. The land development agency is providing Rs 1,500 crore. The Ministry of Urban Development wants to lower the dependency on Japan for providing soft loans for Delhi Metro’s expansion. Two years ago, the central government had decided that a new finance model was required to eventually replace the Japan International Cooperation Agency. Union Urban Development Minister Kamal Nath had earlier asked DDA to take a sizeable financial burden of DMRC.”DDA is going to provide Rs 1,500 crore in phases and an amount of R310 crore has already been provided to DMRC,” said a senior DDA official, requesting anonymity.

Read more:  Hindustan Times 

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