Rupee fall boosts luxury units sales in NCR real estate market

Ireo Gurgaon Hills

Ireo Gurgaon Hills

Despite the falling rupee and and because of a freeze in real estate prices for around six months, the luxury unit’s sales in Delhi-NCR have gone up by around 25 percent in the current fiscal. Both the NRIs and domestic consumers have played their respective roles in this sales escalation.

RK Arora, CMD, Supertech said, “Luxury projects are designed to cater to a very specific target group and affluent segment of the society, who can afford the exclusive offerings of the segment and are always seeking something better. India has the fastest growing number of high net worth individuals in the world and real estate comprises approximately 40 percent of their investment portfolio.”

Arora went on to add that the fall of the rupee by around 20 percent in the last six month has opened a window of opportunity for NRIs to buy a unit back home. “Falling rupees has given NRIs a right opportunity to invest in the Indian real estate market. NRIs will be keen in doing advance payments while the rupee is still weak. At the moment any NRI buying a property in India can save around 20-30 percent on its property value,” Arora said.

Mohit Goel, CEO, Omaxe said, “Increasing rate of HNIs, rapid urbanization and spurt in the NRI/PIO community has accelerated demand for luxury housing. The fall in rupee has only made property cheaper for NRIs looking to invest in India.”

Read more: The Economic Times

Gurgaon real estate: Can Sohna Road be the next MG Road?

Office spaces on MG Road and Cyber City are scarce so, corporate houses are looking at alternative locations and Sohna Road tops the chart. Can it, thus, be the next MG Road in Gurgaon?

“Sohna Road will undergo significant growth in the next five years,” says Ajay Bajpai of Homes2offices. The area enjoys several advantages.

Location: At one end, Sohna Road is seamlessly connected to Golf Course Road, a prime commercial as well as residential destination and at the other end it goes straight to NH-8, making all commercial destinations of new and old Gurgaon accessible. This includes Udyog Vihar, Signature Towers, MG Road and Cyber City.

The access to NH-8 ensures that it is linked to Manesar, Bhiwadi and Jaipur also.

Livability: Sohna Road has a mix of commercial and residential real estate. How does this matter? Because it promotes the ‘walk-to-work’ concept. People could buy or rent houses near their offices. Capital values of multi-storey apartments, in this area, are within a range of Rs 40-60 lakh. The rental values of 2BHK apartments start from Rs 10,000 per month.

Since a number of residential projects have already given possession in the area, several families have moved in.

The state of roads and water supply is average and the issue of power shortage is persistent as it prevails in the entire Gurgaon city. On a positive note, it has come up with a number of local markets and shopping malls.

Read more: Magic Bricks

Mumbai lags behind other Indian cities in infrastructure

Vinayak Thakur, a foreign exchange dealer with a UK-based investment bank, has lived in Delhi, Hyderabad, and Mumbai and currently resides in Bangalore. Looking back, he thinks the city of dreams, with its creaky infrastructure, is a nightmare.

With many cities such as Delhi, Hyderabad, Bangalore and even relatively sleepy Jaipur rapidly modernising and developing swanky metro lines to ferry people, Mumbaikars, barring the privileged few who live and work in South Mumbai or posh pockets of some suburbs, are beginning to feel left behind. “Mumbai was the city where careers were made earlier, so people were ready to struggle everyday in the trains or fight the traffic on roads. Now other cities offer growth opportunity and have better infrastructure, so why would I want to live in Mumbai,” Thakur says.

The metropolis that once dreamed of becoming a global financial hub and outshining Shanghai offers choked roads, multitudes living in slums, and people taking jam-packed trains to their office that may be in a shiny tower in the middle of a dirty, low-lying locality.

Read more: The Economic Times

Economy

Montek to revisit 8% growth estimate for 12th plan

The Planning Commission today said it will revisit annual average GDP growth target of 8 per cent for the 12th Plan (2012-17) in view of dismal performance in first two years of policy period, while saying the economy is likely to expand by over 5 per cent this fiscal.

“We have not made a short term estimate. We are relying on whatever Finance Ministry is saying. At the moment I don’t see any reason to disagree with what Finance Ministry is saying,” Commission’s Deputy Chairman Montek Singh Ahluwalia said on the growth projection for this fiscal. The Planning Commission today said it will revisit annual average GDP growth target of 8 per cent for the 12th Plan (2012-17) in view of dismal performance in first two years of policy period, while saying the economy is likely to expand by over 5 per cent this fiscal.

“We have not made a short term estimate. We are relying on whatever Finance Ministry is saying. At the moment I don’t see any reason to disagree with what Finance Ministry is saying,” Commission’s Deputy Chairman Montek Singh Ahluwalia said on the growth projection for this fiscal.

Read more: NDTV

Over $5 billion received through swap facility: Raghuram Rajan

Over five billion dollars have come in through the swap facility which was launched in September to combat rupee depreciation, RBI Governor Raghuram Rajan today said.

“We have got $ 5.6 billion through swap arrangements” till date, Rajan told reporters after a board meeting here.

He was replying to questions on initiatives taken by the RBI to combat the rupee depreciation.

Soon after taking over as RBI Governor on September 4, Rajan announced the opening of a swap window facility to encourage banks to lure NRI funds.

Under the facility, banks are permitted to swap fresh FCNR(B) dollar funds, mobilised for a minimum tenor of three years, at a fixed rate of 3.5 per cent per annum for the tenor of the deposit.

Read more: The Economic Times

NRIs

Indians get visa-free or visa-on-arrival access in 52 nations

British citizens enjoy the widest range of visa-free travel in the world, being able to visit 173 countries with just a passport, while Indians get visa-free or visa-on-arrival access in 52 countries.

The UK citizens are at par with those from Finland and Sweden for visa-free access, according to Henley & Partners Visa Restriction Index.

Nine out of the top ten in the index are European Union countries, with the tenth being the United States.

Read more: The Economic Times

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