Delhi NCR has been the region for immense growth and expansion of real estate assets across its subsectors. This growth has been an outcome of the advance in the service sector and rapid urbanization in the outreaches of this region. The sprawl of urbanization has considerably transformed the preferential trends in the residential and commercial real estate market. The buyers in the present day prefer to stay in the proximity of business districts where the residential units are facilitated with all the contemporary amenities of daily use.
Out of the different specifications of homes in demand, the serviced apartments have come-up as the highly sought after accommodations in Delhi NCR. Being fully furnished, the serviced apartments are the most economical substitute to expensive stay in hotels. Not only for the short-term and holiday stays, the serviced apartments have gained a significant demand in the corporate sector as well. The professionals traveling to different states for business deputations/transfers also prefer these apartments where they have their privacy, advantageous location and a home-like comfort that is available at reasonable expenses.
The contemporary serviced apartments have been ideally converted into destinations of accommodation with all the facilities of upscale hotels yet priced much less than the extravagant lodging in these hotels. With reception and a concierge service to compact kitchens and gardens, these serviced apartments offer the comfort and convenience that one seeks from an expensive motel. These apartments have also become one of the most preferred options for the corporate lodging where the outsourcing agencies are offering stays ranging from short-terms to annual contract packages. These corporate serviced apartments are fully loaded with amenities like access to Wi-Fi, television, styled wardrobes, finest of fixtures in the kitchens and washrooms.
Read more: Silicon India
Rupee Slide: Is Property A Good Investment For NRIs Right Now?
A weak rupee is not deterring Non-resident Indians (NRIs) from buying properties back home. The decline in rupee might not be a good sign for Indian economy but for non-resident Indians, this is the time when they scout for properties back in India. But with the country’s real estate scenario looking a little bleak, is investing in a property will be good right now? The answer is positive.
“There has been price correction in India to a certain extent and developers are sitting on huge inventory. So NRIs must be particular in their investments and pick and choose after due research,” said Pankaj Kapoor, Founder and Managing Director at Liases Foras Real Estate Rating & Research, reports Deepa Venkatraghvan of Economic Times.
However, to buy a property, location plays a very important role. “In the last few months, we have witnessed good closures specifically emerging from NRIs in cities where value deals are available – namely cities like Bangalore, Hyderabad, Chennai and Pune. Demand in the mid-income and budget segments is robust across cities where job creation is the key driver,” stated Om Ahuja – CEO – Residential Services, Jones Lang LaSalle India.
Read more: Silicon India
July GDP growth at 4.4%: ZyFin
Giving a glimmer of hope to the struggling economy, India’s Gross Domestic Product (GDP) grew at 4.4 per cent in July year-on-year, compared to 2.9 per cent in the previous month, according to the first estimates by ZyFin Research, a research and analytics company.
ZyFin estimates GDP growth and inflation on year-on-year basis (comparing the present month with the same month last year) and also on month-on-month basis (comparing present month with the previous month the same year).
In July, the economy grew 4.6 per cent compared to June this year, that is on a month-on-month (MoM) basis. This sequential growth in June was three per cent.
“After declining for five straight months, the MoM growth estimates are pointing towards a moderate improvement in growth for July 2013,” said Surjit S Bhalla, Senior Advisor at ZyFin Research. “However, the GDP average growth of 4.3 percent for the first four months of this fiscal year as estimated by ZyFin Research still suggests a struggling economy.”
The GDP deflator, a measure of inflation, was estimated to be 5.8 per cent in July against 4.9 per cent in June. This falls in line with the official estimates for that month. However, just as retail or wholesale inflation are computed on specific basket of goods, the GDP deflator is calculated upon goods that vary according to consumption in that particular period of time in which the data is computed.
Read more: Business Standard
FDI norms for construction sector likely to be eased
The Government has started work on easing Foreign Direct Investment norms in the construction industry in order to help attract more foreign capital into the cash-strapped sector.
The Industry Department is finalising a draft note (that will soon be submitted to the Cabinet) proposing to relax conditions related to entry guidelines , minimum-area requirement and minimum lock-in period for investments, an official in the Department of Industrial Policy and Promotion told Business Line. The note has been prepared based on inputs given by the Ministry of Housing and Urban Poverty Alleviation.
“We will soon finalise the note and circulate it to other Departments and Ministries concerned for their comments. We will then place it before the Cabinet for clearance,” the official said.
At present, the FDI policy permits 100 per cent foreign investment, including in housing, townships and construction infrastructure, but several restrictions apply .
These include a three-year lock-in period for investments in housing and townships, a minimum built-up area of 50,000 square metres and minimum capitalisation of $10 million for wholly-owned subsidiaries.
To make the sector more attractive, the Housing Ministry has proposed that the minimum lock-in period be reduced, the built-up area required be brought down to 20,000 sq m and minimum capitalisation reduced to $5 million.
Read more: Business Line