Published by Newsroom November 20th, 2009
in Newsbytes.
Over the next five years, the country needs 26.5 million additional housing units, investment requirements of over Rs 360,000 crore and re-housing of 62 million persons who live in urban slums, according to Renu Sud Karnad, Jt managing director, HDFC.
"In the last year alone, through one of the toughest periods in economic history, the real estate industry in India managed to grow at over 16 per cent y-o-y. As a contributor to GDP growth, current estimates place the real estate sector at 8.86 per cent of GDP. At the same time, over Rs 23,000 core is being proposed to be raised across 8-10 real estate IPOs within the next 6-12 months," she said while launching RESSEX, a new index for the real estate sector.
"We have to seriously question ourselves about our commitment to housing. We are indeed faced with a series of great opportunities brilliantly disguised as impossible situations, but we should not give up," she said.
Published by Newsroom November 20th, 2009
in Newsbytes.
The Bombay Stock Exchange (BSE) Realty index, which consists of 14 real estate stocks, has risen a whopping 207% since touching a low on March 9,2009.
During the same period, the 30-share BSE Sensex has given a return of 108%, which seems rather low in comparison. The interesting point is the way the price to earnings (PE) ratio has shot Up, from 6.6 on March 9 to over 60 at present. In comparison, the Sensex PE is at 21.62.
PE ratio is calculated by dividing the share price of a stock by the earnings per share of the company over the last one year. The high PE of the Realty index tells us that the stock prices of real estate companies have gone up much faster than their earnings over the last one year.
The total net profit of the 14 companies that constitute the index stood at Rs 669.22 crore for the quarter ended September 30, down around 65% year on year.So, more than fundamentals, it is the spurt of liquidity that has hit the market since March, which is driving the stock prices.
Published by Newsroom November 20th, 2009
in Newsbytes.
New Delhi: RICS recently submitted its recommendations on the 'Model Real Estate (Regulation of Development) Act' to the Ministry of Housing and Urban Poverty Alleviation (HUPA).
The response was based on the collective views and suggestions of the RICS working committee on real estate and housing, which constitutes of the top management of real estate development firms, private equity firms and international property consulting firms.
All committee members agree that there should be some form of regulation for developers as well as individual brokers and a majority feels that developers should be required to obtain a registration certificate for every project, from the regulatory authority.
The suggestion of an online portal where developers would be mandated to update important project details has been welcomed, as it would automatically help India build a database which is most required in the not so transparent real estate sector.
Published by Newsroom November 20th, 2009
in Newsbytes.
New Delhi:
Mumbai-based realty firm Lodha Developers, which plans to hit the capital market with its IPO early next year, will invest Rs 6,000 crore in the next three years on construction of its existing projects. "We are currently developing about 30 million sqft comprising 38 projects. The average cost of construction to develop the projects is Rs 2,000 a sqft," managing director Abhisheck Lodha told PTI.
At an average construction cost, the total investment to develop the existing projects works out to be Rs 6,000 crore. The company's current land bank stands at 260 million sqft, which is enough to keep it busy for the next 10-12 years. About 80 per cent of the company's total business is housing and the rest is office space, he said.
Source: The Financial Express
Published by Newsroom November 20th, 2009
in Newsbytes.
Mumbai:
Pune-based Kumar Builders plans to raise Rs 450 crore through an initial public offering. It has filed its draft red herring prospectus with SEBI.
With over three decades in real estate development, the company has developed 11 million sq ft. Over 5.5 million sq ft has also been developed by its group companies. Currently, it has about eight lakh sq ft under development, with a land bank of 1,600 acres spread across
Mumbai,
Pune,
Bangalore, Nagpur and
Hyderabad of which 1,360 acres is fully paid up.
The company is developing a special economic zone in Hinjewadi through its subsidiary and an IT/ITES, also an SEZ, close to Rajiv Gandhi IT Park there. Two townships of 100 acres each are in the process of being launched in Kharade and Hinjewadi.
