In India’s largest cities – namely Mumbai, Delhi NCR and Bangalore – luxury and ultra-luxury residential projects have witnessed ten-fold appreciation over their launch prices over the last decade, implying more than 100% annual returns on investment. Most of these projects saw encouraging pre-sale activity and were sold out completely very quickly. In fact, demand for luxury and ultra-luxury housing in cities like Gurgaon has always outpaced supply, which has encouraged developers to increasingly shift their focus on this segment.
Why Luxury Works For Developers
Because of the tendency of ultra-luxury projects to garner extremely good pre-sale volumes, their developers are generally able to secure significant fund flows to capitalize the completion of their projects. Luxury and ultra-luxury projects yield much higher returns to developers than projects geared towards the affordable and mid-income segments.
Read more: Daily Bhaskar
Haryana to tap e-commerce, real estate for taxes
Making a fast buck on investments in real estate and e-commerce in Haryana may become a tedious task. Haryana Excise and Taxation Minister Kiran Choudhry today said a survey was being done to bring e-commerce players and realty developers, promoters, builders and joint developers under the ambit of tax.
Talking to the media on the sidelines of the launch of an online grievance portal and toll-free service of the excise and taxation department, she said about 15 e-commerce companies have been registered with the department.
She said the Centre was also considering the claim of CST compensation lodged by the state. A part payment of Rs 1,400 crore is likely during this financial year. A total of Rs 3,000 crore she said was due.
It was informed the developers, promoters, builders and joint developers are liable to pay value added tax (VAT) and need to be registered under the Haryana Value Added Tax Act, 2003, with the concerned district sales tax office. Their liability to pay tax is on the taxable turnover relating to transfer of property in goods involved in construction of buildings. In case the plot/property owners collaborate with builders or developers by not charging for a part of that plot or constructed property, this construction amount would also be liable to VAT. They are required to file returns in Form VAT R1 or VAT R6 to avoid interest and penalties.
Read more: Business Standard
Banks seek higher cover on loans to realtors as prices fall
Banks, especially private ones, are asking for higher collateral from real estate companies while sanctioning loans, in view of softening property prices. Banks are now asking for three times the cover for their advances to developers, against two times earlier, executives in real estate companies said.
“I have heard they are asking for a cover of 2.5 times to three times in some cases,” said Lalit Kumar Jain, chairman, Confederation of Real Estate Developers Associations of India, and chairman of Pune-based Kumar Builders. “During these tough times, they should not have resorted to such a move.”
Axis Bank, for instance, has increased its cover on loans to developers from two times to 2.25 times this quarter. “It is just a safety margin,” said an Axis executive, who did not want to be named.
Such a move by lenders comes as developers are trying to boost absorption by giving discounts.
A senior executive in a Mumbai-based bank said developers have no option but to cut prices as sales are dipping. “In such a situation, we are better off asking them for higher collateral,” he said.
Read more: Business Standard
NRI remittances: Picking the right option
In an earlier article, we saw how the transfer fees and exchange rates both have an impact on your remittances. Today, we look at the various options available to you:
Option 1: Bank wires
You can make a wire transfer from your foreign bank account to an Indian bank account using the SWIFT mechanism. In this case, you must necessarily have a bank account with the bank through which you are sending the remittance.
Time taken and cost: These would depend on several factors. If you remit funds from your bank account in US which also has a branch in India, it would take you lesser time, as early as the next working day, and you may get a discount in fee or sometimes even a complete waiver.
If you remit funds from a bank that does not have a branch in India, it could take between 1 to 4 working days. This can also be an expensive affair. US banks for instance, charge anywhere between $15 to $ 45 for an outgoing wire transfer abroad.
For instance, if a Citibank customer is transferring funds from a Citibank account in the US to a Citibank account in India, they can use Citibank Global Transfer. “There is no fee, and the transfer occurs within minutes. There is a commission for foreign currency conversion.
Read more: The Times of India
Good news: Metro to run between Delhi and Alwar
Fast speed metro will run between Delhi and Alwar, covering 180 km distance in total. This route of Delhi-Alwar via Gurgaon-Rewari will be developed at a cost of Rs. 32 thousand 141 crores. Decision to this effect was taken in a meeting of NCR planning board held at India Habitat Centre in Delhi on Monday.
“It has been decided to include Bharatpur in NCR. State capital Jaipur has been awarded Magnet city status,” said Shanti Dhariwal, Urban Development Minister, Rajasthan government.
Now, Jaipur will be entitled to numerous benefits and grants from central government, said Shanti Dhariwal.
Source: Daily Bhaskar
Delhi Metro takes over operations of Airport Express Line
Delhi Metro on Monday took over operations of Airport Express Line even as Reliance Infra, which ran the line, blamed DMRC’s “persistent” failure to cure defects in the civil structure for termination of the concession agreement and claimed termination payment from it.
The takeover of the 22.7 km-line was completed three days after Reliance Infrastructure announced its pull out from the service.
The Board of Directors of DMRC had met to discuss the letter of Reliance (DAMEPL) dated June 27 intimating that they would stop operating the Airport Line from the night of June 30, and concluded that the notice was in violation of the Concession Agreement and the ongoing arbitration proceedings.
However, the Delhi Airport Metro Express Private Limited (DAMEPL), a Special Purpose Vehicle of Reliance Infrastructure Ltd (RInfra), has said that they terminated the Concession Agreement with DMRC for the airport metro line nearly 9 months back, vide its notice dated 8th October, 2012.
Read more: The Economic Times
Seven-and-a-Half Million Cars Trigger Parking Wars in Delhi
India’s capital, Delhi, has seen many a great war. But the latest one is being fought in the most unlikely of places – the residential colonies in the city. Roadside parking spots have become the battlefield as the number of cars in Delhi has surged over the years.
Behind the gates in Defence Colony, a posh south Delhi neighborhood, where plush residences loom large and the streets are lined with expensive sedans, the battle rages on between residents and the “outsiders.”
Residents have declared their right to every inch of parking space in the gated neighborhood, demanding that the curbs be protected from nonresidents and their cars at all times. Houses in the colony all have driveways that allow for one or two cars, but that’s not enough for households that may have as many as five cars.
The foot soldiers in these parking wars are the security guards charged with not just manning the gates, but guarding expensive cars and their almost equally cherished parking spots. Bishram Chowdhury is one such guard.
Read more: New York Times