Published by Newsroom August 31st, 2009
in Newsbytes.
FDI in retail must be allowed, insists Anshuman Magazine, CMD of CB Richard Ellis South Asia Pvt Ltd. "India's retail trade is around $180 billion, which is almost 10 per cent of the GDP, employing more then 21 million persons. Policies should be more transparent and smooth, in order to attract foreign investors," he justifies. "Like any other person who invests money, we need to understand that foreign investors will also expect returns. Perhaps the challenge lies in reassuring these investors," he wonders aloud.
According to Dubai-based real estate consultant, Rajesh Bijlani, the news of retail chain IKEA putting its India entry plans on hold, indicates the prevalent scenario. "There is something in India's policies and implementation that is keeping such major brands from entering right now, despite the fact that the economic indices are attractive to MNC brands," he feels.
"Many retail brands that have outlets in the UAE have shown interest in setting up operations in India, but little is actually working out in the near future, as compared to the potential. I guess we need to work out red-tapism and other issues that seem to be delaying the entry of these retail players at present," he adds.
Published by Newsroom August 31st, 2009
in Newsbytes.
Hotel-cum-tourism PSU, Indian Tourism Development Corporation (ITDC) plans to make private hotel companies and real estate players its franchisee partners. It launched the Ashok Alliance Scheme on Thursday, under which member hotels will be able to use the Ashok brand and benefit from the operational management expertise, marketing inputs and other resources of the ITDC Group. ITDC, in turn, would get 3% of the gross room revenues earned by these hotels.
The company has roped in two developers in Surat and Chandigarh, who will get to use the Ashok brand for properties developed by them. This will take the total number of hotels under the Ashok brand to 18. "We are in talks with a number of other real estate players and hoteliers to bring more hotels under the Ashok Alliance scheme," ITDC vice-president Kuldip Verma said.
Published by Newsroom August 31st, 2009
in Newsbytes.
Mumbai: Ansal Properties & Infrastructure Ltd said that it plans to issue shares and warrants to foreign investors and founders for about Rs 203 crore. The real estate developer plans to make a preferential issue of 1.26 crore shares to Mauritius-based foreign institutional investor IPRO Funds.
The shares work out to 10.95 per cent of the company's equity. It also plans to issue 16.51 million warrants to its promoters as part of a long-term funding process and will seek the approval of shareholders for its fund raising plan. The Ansal Properties stock closed 1.32 per cent higher at Rs 80.80 on the NSE.
Source: The Hindu Business Line
Published by Newsroom August 31st, 2009
in Home Loans and Newsbytes.
The Reserve Bank of India (RBI) has extended the terms and conditions for banks to provide funds to housing /development projects following a recent judgment of the Bombay High Court.
As per the revised norm, the terms and conditions on which a loan for a housing project may be sanctioned should include the name of the bank to which the property is mortgaged. The developer should also indicate in their brochures that a no objection certificate/ permission of the mortgagee bank for sale of flats/ property could be furnished to the bank if required.
The RBI has also directed that money should not be released by banks unless these terms and conditions were met by the developer.
Source: Business Standard
Published by Newsroom August 31st, 2009
in Newsbytes and Real Estate Report.
The annual monsoons have always been perceived both as a rural blessing and an urban curse they are good news for the agrarian sector and the bane of water-logging prone cities. However, this caricatured mindset is breaking. After the swine flu epidemic, the next threat looming both over villages and cities of two-thirds of the nation's districts is a drought-like situation. Cities and towns are reeling under water shortages that threaten to get worse, and the economies of agrarian rural areas are held hostage.
These adverse effects of a failed monsoon are self-evident - what is less obvious is the impact it can and probably will have on the already compromised real estate sector. After all, the fate of India's property markets is not directly linked to the availability of water or rainfall… or is it?
It is important to understand that the health of the real estate market is directly connected to the nation's larger economic framework. Therefore, it is subject to any changes in the Macro environment.
