While the real estate sector has always shied with the need to have a regulatory body, Maharashtra CM Prithviraj Chavan talking of constituting a regulatory authority to control high property prices seems to have sent alarm bells ringing among major players. Some of the real estate companies are now talking about the need to check pricing rather than just setting up a body.
Om Chaudhary, CEO or Fire Capital Fund has a word of caution for Indian realty market and he believes that while there’s a huge hunger line for the realty, FII’s inflow can be a matter of concern since China is going to control the GDP.
The Associated Chambers of Commerce and Industry of India (ASSOCHAM) has suggested the government to introduce Real Estate Investment Trust and Real Estate Mutual Fund to enable investors to own a diversified portfolio of professionally managed assets in the real estate sector. In a note submitted to the government, the Chamber said that the Indian Real estate sector currently lacks any monetization vehicle for capital intensive verticals such as commercial offices and retail malls.
Kumari Selja, Union Minister of Housing and Urban Poverty Alleviation & Minister of Tourism, has categorically blamed the banks for not facilitating the affordable housing. Inaugurating the 10th National Convention of National Real Estate Development Council (NAREDCO) at New Delhi the minister said the housing finance sector has witnessed a boom in the recent past due to favorable government policies.
Pune is virtually unrecognizable from the sleepy, laid-back city it was a few decades ago. There were no signs of any significant real estate action in the erstwhile Punyanagari before that. Today, however, Pune numbers in the Top Seven property hotspots within the country.
There has never been a real decline in the popularity of second homes in India. It certainly is a full-fledged real estate market segment in its own right. However, just as on the first home market, the demand for second homes is driven by the general economic climate. When the economy declines, all real estate segments decline with it. By the same coin, the demand for second homes always rises when people’s spending power increases.
India has been ranked as the most preferred real estate destination among the Asia Pacific region as foreign investors still consider the country to be extremely viable, according to a report released by ULI-PwC. “India, and particularly Mumbai and New Delhi, are ranked the foremost real estate market destinations as the residential properties have maintain the growth momentum, and foreign investors still consider this market to be extremely viable,” the report titled ‘Emerging trends in Real Estate in Asia Pacific 2011′, said.
After the Convention of confederation of real estate developers’ association of India (CREDAI) where the Finance Minister Pranab Mukherjee urged the realty sector to be poor sensitive, it seems the affordable housing is the buzz word now. National Real Estate Development Council (NAREDCO), the apex body for real estate and housing sectors under the aegis of Ministry of Housing & Urban Poverty Alleviation, Government of India, also announced that its convention is aimed at realizing the “Housing for All” call of Prime Minister of India, Dr. Manmohan Singh.
While the foreign direct investment flows (FDI) dependent Indian realty market is awaiting a good fortune, a World Bank report brings cheer to the industry. It says the FDI into developing countries including India is expected to recover over the next couple of years and is projected to increase by 17 per cent in 2010.
Noida, once projected as the largest industrial town in Asia, is today one of the best location for residential purpose too in the Delhi-NCR region. It is also emerged as the gateway to the investors in Uttar Pradesh. New Okhla Industrial Development Authority, or better known as Noida only, was developed in the 1970s as a modern industrial city under the UP Industrial Area Development Act, 1976.