MARG has selected some interesting real estate news from around the virtual world and brought it to you.

Realty Prices To Further Shoot Up

It is very likely that the Real Estate prices in the country will shoot up further with the Finance Ministry’s decision of not withdrawing 2.5% service tax. This move was proposed by the Urban Development Ministry in the budget of FY10-11.

The budget had earlier proposed this tax on all under-construction projects. And it is common knowledge that eventually the customers will have to bear the burden and not the developers. The declination came as no less than a shock to the Urban Development Ministry…… Read More>>

Indian Realty Sector And Overview

Indian Real Estate Market has grown with time. The main reason for the accelerated growth can be contributed to the fact that the industry is very flexible in nature.The development has caused higher aspirations for better standards of living and a good quality of life.
The rapid increase has been because of the relaxed policies of our government regarding Foreign Direct Investment which favors economic development of the country as well as easy Home Loan terms and conditions with an increase in the income of people, degree of urbanization, and their purchasing power. All this has helped shape up the Indian realty sector…… Read More>>

Real Estate Invesment Trusts In Asia To Rise

The number of Real Estate Investment Trusts (REITs) in the Asian Continent is going to swell over the coming 3 to 4 yrs according to HSBC. It will be because of increasing call for investments in more risk disinclined properties.
REITs invest in commercial properties mainly and pay rent collected from their properties to shareholders as dividend. This is why some investors see them as safer investments than property stocks.Another advantage is that they usually offer returns that are higher than yields of government bonds….. Read More>>

Real Estate Collaborates With Education Industry

Realty and Infrastructure firms like GMR and Hindustan Construction Company, HCC have announced to set up university campuses and other educational institutes within India. They mainly aim to ride high on the huge returning education industry.

The education industry in India is worth more than 10 bn US dollars with continuous growth rate. Because the Real Estate market is on a low these days developers are looking at alternate assets such as education….. Read More>>

Fear of Recession in Europe Draws NRI Investment in India

Indian expatriates have started investing in their home country in a big way. Increasing job security in Gulf countries, coupled with fears of recession in Europe and North America, are prompting NRIs (non-resident Indians) to repatriate their savings to Indian assets, the most favoured being real estate, closely followed by equities and high-coupon debt.

Several Gulf-based investors had redeemed or sold their investments during the Dubai credit crisis last year. The current flow of money to Indian shares can be seen as Gulf-based investors reversing those transactions, according to investment experts. While Gulf-based NRIs are trying to benefit from investing in home markets, the Indians in Europe and North America are sending back their savings to preserve it in Indian assets….. Read More>>

India’s Real Estate Boom Is on Shaky Ground

The Indian version of Forbes magazine lists the 100 richest Indians. Apart from the usual suspects, what intrigued us was that most of the new entrants in it were from the real estate industry. Full article here.

Indian Property Investment – Some Reasons to Rejoice

For those who are interested in properties in India to buy, Indian property investment have some reasons to rejoice. Full article here.

Betting on Budget’s infrastructure thrust

With a range of projects in the offing and the Budget expected to give renewed thrust to infrastructure, companies with a focus on
the road construction have started gaining traction on the bourses. Full article here.

Finance Ministry Rules Out Rolling Back of Service Tax on Real Estate Sector

The Finance Ministry on Thursday ruled out rolling back of service tax on real estate developers at the time of construction, a move which the industry says will jack up housing and commercial property prices. Full article here.

Real estate: Concerns priced in?

The real estate sector showed strong revenue growth in the December 2009 quarter with aggregate revenues up 39 per cent over the lows seen in the third quarter of the previous year. Full article here.

Real estate pins hope on IT recovery

Reports suggesting revival of the Information Technology (IT) have started to translate into increased enquries from property seekers and thus offering some respite to a beleaguered real estate sector in and around the city. Full article here.

Union Budget 2010 turned everybody’s attention towards it even before the actual budget was announced. India needs to review public spending and improve its fiscal position, Finance Minister Pranab Mukherjee said on Friday, kicking-off the presentation of his budget for the fiscal year that starts on April 1. Many industries saw raise and downfall in this union budget 2010 and it’s a fortune that real estate sector has fairly gained a good raise in this union budget. India’s troubled real estate sector is in desperate need of sop’s which could help boost demand for housing. The real estate sector received a shot in the arm on Friday after the 2010-11 budget proposed a slew of tax concessions and measures that could boost demand for the sector, sending their shares soaring. Real estate sector is expected to benefit the most from a move to raise tax slabs for personal income tax that will boost disposable incomes and could add to demand that has been steadily improving in recent months.

Photo sourced: http://static.uslnn.com/

Construction and real estate are the two major sectors which will likely win in the new union budget 2010.

* Construction and engineering companies are on proposal to invest 1.73 trillion rupees ($7.4 billion) on infrastructure in 2010/11.

* The capital good index was up 1.8 per cent by 0804 GMT, in line with the rise in the broader market.

* Few real estate firms after the budget proposed to give developers tax deductions on existing projects and relaxed norms for built-up area. The sector index was up 4.8 per cent. The BSE Realty index rose as much as 5.6 per cent in day trades, and the sectored index closed up 1.3 per cent.

* The Budget has decided to levy a service tax on the differential part of the pricing of an apartment of preferential location. So, the premium a builder charges for a preferred apartment is now under the service tax ambit. ‘‘This will lead to an increase in prices as builder will pass on this burden to the buyer,”

There are lots of analysts warning that the measures would translate into gains for the sector only if developers resisted a fresh round of price hikes.

Hence this union budget 2010 has marked up the real estate industry through various tax deductions and benefits to the builders and the buyers hoping that the up-coming year turns out to be flourishing for both the builders and buyers.

But from your perspective what do you think of this budget?” or “do you think that the budget has been influential enough to make people pre-pone their home buying decision?” Spell out your opinion and ideas on this topic which is always encouraged.

Realty sector builds hopes  on tax sops, industry status

It’s a given fact that India will be facing a shortage of about 26.53 million houses by 2012, there appears to be a consensus that the sector needs to be given some special attention in order to make it capable to cater to the demand. Pitching for the industry tag, real estate experts are talking about the increase and decrease in GDP rates, income tax exemptions, and say this is the recognition of the real estate industry.

To read the detailed article click here.

Low rates on home loans may end soon

The government has issued a special invitation to give 2% hike in the existing low interest rate home loans provided by the bankers. Indian Bank Association (IBA) had a review meeting with RBI regarding the hike in home loan given to their customers at a lower rate of interest – as low as 8%, which is much below their prime lending rates (PLR).

To read the detailed article click here.

Real estate: From survival to revival

Indian real estate may be geared up for the better times in 2010, recessionary condition of 2008-2009 has helped highlight problems/loopholes  marring the industry that remained hidden in the buoyant market.

To read the detailed article click here.

Homes on lower loan rates on offer

Addressing a media conference on “Fairpro 2010″ the third in the series of annual property fair of CREDAI-Tamil Nadu, Chairman of Fairpro 2010 Sandeep Metha said; “The interest subvention scheme will help home buyers to acquire properties at lower home loan rates starting from 5.99 per cent”.

To read the detailed article click here.

‘Demand-starved realty sector to get boost in 2010’

The year 2010 appears to have brought cheers to the demand-starved realty sector. With signs of economic recovery emerging in the country, the real estate sector has been predicted to see increased business activities. According to global real estate consultant Cushman & Wakefield, India cities would witness a strong-end user demand for commercial real estate in 2010.

To read the detailed article click here.

2010 to be a good year for realty, says CREDAI

Confederation of Real Estate Developers’ Associations of India (CREDAI) is hopeful of a positive year for the India real estate industry in 2010 and the market is expected to return to the 2007-08 level.

To read the detailed article click here.