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Posts Tagged ‘Housing Developement’

Ready-to-occupy homes will find favour with new homebuyers

Monday, January 4th, 2010

According to a Knight Frank report on affordable housing, affordable housing units are springing up in areas where there is a larger concentration of middle income end-user segment. Most builders in the city are concentrating on constructing one and two BHK apartments as affordable homes, with sizes varying from 500-900 sqft and cost varying from Rs 1200-2500 per sqft. The cost of an affordable unit would vary from Rs 15-30 lakh depending on the location.

With large land parcels on the outskirts of the city being cheaper, several developers have launched their affordable housing projects in the suburbs of Yelahanka, Doddaballapur, BTM Layout, Whitefield, Jigani, Sarjapur, and Kanakapura Road. Areas around Bellary Road leading to the airport have seen a spurt in the launch of residential units in the last one year alone with the road connectivity being a singular factor driving the demand here. Sarjapur Road continues to hold demand and the areas leading to Sarjapur Village and in the vicinity of the police station are seeing a spurt in an assortment of affordable housing units including compact villas.

According to the Knight Frank survey, the sentiments in the real estate industry are that although there is not much reduction in price, the absolute reduction in unit cost would be sufficient to drive affordable housing demand.Affordable housing projects are coming up along Doddaballapur Main Road, Hesaraghatta Road, Jakkur, Allasandra and Hennur ORR. Planned plotted layouts leading from Doddaballapur Main Road towards Nelamangala are finding takers in investors who prefer buying land to an apartment.BTM Layout, Kanakapura Road, Electronic City and Sarjapur ORR are where homes in the affordable range have been planned.  Several affordable projects have been announced around Whitefield in Hoodi and Kadugodi.

Estate South 2009 on 13- 14 November 2009

Friday, November 13th, 2009

Estate South 2009 – “South India Real Estate – The Way Ahead”

Estate South 2009 is one of the leading conferences on the real estate sector in South India.Estate South 2009 conference will focus on various critical issues like affordable housing and challenges faced in the current economic scenario and how to overcome from the global recession.

Estate South 2009 Starts on November 13, 2009 and ends on November 14, 2009 at Hotel Taj Coromandel, Chennai.

The fourth edition in the Estate South serie, organized by Confederation of Indian Industry (CII), will provide an outstanding platform for industry leaders to share their experiences and thoughts to develop the real estate industry.

Sessions @ Estate South

  • Who Moved My Lease?
  • Money Matters – The Investment Route
  • Sustainability – Green Way to Success
  • State Focus: Best Practices in Sanction Process
  • Alternate Revenue Generation from PPP Models: Is real estate the answer?
  • Taxation and Processes
  • Affordable Housing – Reactive Alterations Rather Than Proactive Decisions?

Confederation of Indian Industry invites you join at Estate South 2009 on 13- 14 November 2009 at Hotel Taj Coromandel, Chennai.

For Further Details, Contact

Ms Merin Devassia & Ms M Subha
Confederation of Indian Industry
No 98/1, Velacherry Main Road, Gunidy Chennai 600 032
Tel:91-44-42444555 fax:91-44-42444510
Email: merin@cii.in; subha.m@cii.in

Reference:
http://events.linkedin.com/Estate-South-2009-South-India-Real/pub/153702

Will the tax benefits reach the end user?

Monday, August 31st, 2009

Our Union Finance Minister recently announced that profits from housing projects, qualified under section 80IB(10) of the Income Tax Act and approved by a local authority between April 1, 2007 and March 31, 2008 will be tax free, if they are completed before March 31, 2012. The Minister has urged the builders to pass on the benefit to consumers.

As the profits made from residential projects depend on so many parameters which vary from one place to another.An expert committee comprising Valuers and Chartered Accountants should be appointed to arrive at the profit for each project. The cost of the committee report should be recovered from the builder/developer.

It is also to be observed that the profit range in constructing small houses is much less and hence the genuine builder, who is also helping the noble cause of providing affordable houses, should be compensated properly.It is suggested that instead of asking the builder to pass on the entire tax saving to the purchasers, the builder should be awarded 30 per cent of the tax saved and 70 per cent passed on the home purchaser. It is necessary to single out builders who might be pocketing the tax savings and encourage the genuine builders.

The Finance Ministry and all concerned should evolve a proper control mechanism to ensure that the incentive meant for home buyers reaches them and not the pockets of a few builders.Associations such as CREDAI (Confederation of Real Estate Developers Associations of India) and Builders Association of India (BAI) should help in this regard.

Reference:

Tax benefits must reach the buyer

Model Bill for Regulating Real Estate Sector

Wednesday, July 8th, 2009

The minister for housing and urban poverty alleviation has announced a model bill for regulating the real estate sector by August-September timeframe.

The Model Bill would propose a regulator and aim to address the concerns of consumers as well as the real estate industry. The minister for housing and urban poverty alleviation, Kumari Selja said, “We have initiated a dialogue with all key stakeholders including private sector, NGOs, and various States to prepare the model Bill for regulating the real estate sector.”

Bangalore-based realtor Ozonegroup has announced the launch of its maiden township project — ‘The Metrozone’ — in Chennai. The project will be a joint venture between Ozonegroup, HDFC India Real Estate Fund and Urban Infrastructure Opportunities Fund and would involve an overall investment of Rs 2,500 crore and is likely to be completed in about 52 months. Spread over an area of 42.5 acres, the township offers apartments, penthouses and commercial space for hospitality, retail and offices.Sudarshan KS, COO of Ozonegroup said that the first phase of the township is scheduled to be delivered by November 2010

Links to Refer:

Govt Announces Bill to Regulate Real Estate Sector by Aug-sep

Real Estate Looks Union Budget With Expectation

Friday, June 26th, 2009

Global slowdown had led all industries to look towards government for help and packages to regain the market situation. Real estate sector is one of the industries which look Union Budget with hopes and expectation. Real estate industry expects some tax concession and packages to boost the industry.

Developers and builders expect reintroduction of section 80-IB (10) of income tax Act. The section was lapsed on March 31, 2007. If the provision reintroduced, builders will be encouraged to build small sized apartments. As per this section there was exemption from income tax on profit made by developers in constructing houses of less than 1000 sqft in Mumbai and Delhi, and less than 1500 sqft in other cities.

There is huge demand for small sized apartment. There is urgent need to boost the industry by restoring fiscal concession or restoration of section 80-IB (10). Developers and builders feel this measure will encourage builders towards construction of small sized housing or apartment and lowering the price of small residential units.

Stable government has played vital role in getting hopes and confidence of property buyers, investors and Realtors. Industry experts feel government is on right track by considering the hiking of income-tax exemption available for interest payment on home loans. Home buyers and investors expect the government will increase the income tax exemption slab for interest payment on home loans from Rs 1.5 lakh to Rs 3 lakh. The Budget should free the rental income yielded by commercial premises from service tax.

Every industry is expecting government for help and stimulus packages to regain the market situation and come out from the current situation. Real estate sector looks union budget as an opportunity where government will offer packages to boost the industry.

Shobha Developers Received Approval to Raise its Share Capital

Saturday, June 20th, 2009

Shobha Developers Bangalore received approval to raise its share capital to Rs 1500 Crore. The company got approval from shareholders at its shareholders meeting hike Foreign Institutional Investors limit to around 100% of company’s equity share capital.

Shobha Developers said that on shareholders meeting company received approval from shareholders to raise Rs 1500 crore from domestic and international market. Company will also hike Foreign Institutional Investors (FII) limit to 100%. The company said in a filing to the Bombay Stock Exchange (BSE).

The company would raise capital to Rs 1500 crore from International market by issuing shares through American Depository Receipts, Global Depository Receipts and from domestic routes through warrants and debentures.

Further, the company will increase the FII investment limit in the company to 100% of the paid-up capital, provided the equity shareholding of each FII shall not exceed 10% of the total paid-up equity share capital of the company.

Reference:

sobha developers gets shareholders nod to raise rs1500 crore

Property Price in India Are Set To Rise

Friday, June 19th, 2009

Real estate market in India has seen decline in property price for several month which attracted home buyers and investors towards real estate industry. In last few months there was a rise in demand for property and market trend favored buyers by cut down in registration cost, lowering rate of interest for home loans, builders offering property at attractive price.

That is stage is over and now property buyers can see rise in price of property. For builders liquidity position has eased, the cash flows have improved and they have cleared off existing inventories. The rise in property price depends on market trend and builders. If there is more demand for property, builders will increase the price of property. When checking the market trend and builders history, there was no increase in price for last 15-18 months. Builders had lowered prices when they were in trouble, now there is a good possibility of rise in price.

Builders regained confidence and enthusiasm that stable government will lead to improvement in economic condition. Builders can raise fund either by loans or through equity or QIP. The housing companies have seen growth pick up from the end of February. The growth for LIC housing Finance is mostly from retail finance.

In short, people cannot expect a further fall in property price. Builders will raise property price depending or market trend and demand for property. Buyers can get best from current market price where banks offer loans at affordable rates.

Reference:

The Hindu Business Line

Shobha Developers Gets Rs 225 Crore Investment

Thursday, June 18th, 2009

Shobha Developers Bangalore is raising Rs 225 crore from Purna Partners Bangalore, a private equity fund. The investment will be made at the Special Purpose Vehicle (SPV) level.

The raised fund will be used towards development of projects in Bangalore and other cities. For this purpose company will identify certain land parcels in Bangalore and other cities for development of residential and commercial projects. It will also undertake mixed development projects in Bangalore and other cities.

Shobha developers will execute the project as the principal contractor and each of projects will be valued separately. The company has also informed that they have received Rs 25 core from the private equity fund. Shobha will be shareholder along with Purna partners and other investors. The number of project will be decided by the investors.

Shobha developers are also looking to raise Rs 1000 crores through Qualified Institutional Placement (QIPs). The company’s board has also called an extra ordinary general meeting to increase share capital of company up to Rs 1500 crores. It is also considering increasing the limit of Foreign Institutional Investors (FII) in equity shares up to 100% of the share capital of company.

The company is also looking to at raising money by diluting stakes in its non-core assets or non-realty business. The fund raised will be used primarily to pay its debts and to fund it realty projects. The realtor is also looking to raise fund by selling 200 acres from its 3000 acres land bank.

Reference:

Related Keywords:

Sobha Developers, Sobha Developers Bangalore, Shoba Developers, Shobha Developers

Development of Rural Housing in India

Wednesday, May 13th, 2009

Rural Housing in India

“Rural Housing in India: Challenges and Opportunity” is report generated by Holcim and NCAER (National Council of Applied Economic Research). The report states that in 17 years rural housing stock is expected to rise by 42-44 million i.e., during the period of 2008-2005.

In this report it draws attention to the need for continued expansion of rural housing. The estimate relates to total housing stock and distinction between Kucha and more durable construction is made. For the improving the quality of housing, there need changes in space, design, number of rooms and amenities in the house. Theses changes may also continue in the up gradation of house. Pressure on building material supplies would be significant if conversion house is faster than projected i.e., conversion of housing stock into pucca.

Demand for rural housing in the next two decades will continue and expected to strengthen more. The challenge to find enabling factors such as land, finance and infrastructure services to meet the demands opens a way or opportunity for public policy and private enterprises.

The challenge to find enabling factors such as land, finance and infrastructure services to meet the demands opens a way or opportunity for public policy and private enterprises.

The study based on primary data collected from a sample of rural household spread over different states and the housing data collected during various decennial censuses and NSSOs, there is exactly same rise in housing stock during last 17 years for the period of 1991 to 2008.

Suman Bery, Director General, NCAER, comments that the transformation of the rural housing scenario is still a challenge in India. When comparing rural housing with urban housing, the concept is not well understood. It distinct from urban housing in terms of cost associated with construction. The regional dimension is far more significant in the context of rural housing than for urban housing. “Most importantly, the focus in the policy discussion so far has been on housing for the poor which is an important area. There is also the large non-poor population which requires housing and efficient cost-effective supply of materials, technology and finance”.

The report called for the promotion of rural housing. This, the analysis found, generates considerable employment, and hence income of rural households contributing to better health and productivity of the rural labour force. The report found continued poor quality of the rural housing stock in the country. However, considerable improvements have been made over the period. While there has been continuous growth in the rural housing stock, its pace has been lower than urban housing stock.

The survey also attempted to assess the status of physical infrastructure and housing environment. Almost 50 per cent of households reported having closed drainage systems, with hardly any inter-quintile variation. About 30 per cent of sample households perceived their environment as clean, with the remaining either average or dirty. Those who termed it dirty belonged mainly to the bottom two quintiles. A little over half the household are reported to be connected to pucca/paved roads. Around 10 per cent are without any approach road. The remaining households were connected by some kind of kutcha road.

The promotion of rural housing generates considerable employment, and hence income of rural households, while also contributing to better health and productivity of the rural labour force

The rural areas in India are characterized by small and highly dispersed habitations. They also have a rather poor village or community-level infrastructure. The principal occupation of most rural households is agriculture (or its related activities). Hence, the space requirements of these households, apart from for residential uses, are for livestock and safe storage of grains and agricultural implements. However, there has been some increase in non-agricultural employment.

Links to follow:

Rural Housing in India