Real estate in india

Real estate services firm Jones Lang LaSalle expects its India business to led growth in Asia as demand for
office space continues from the still rapidly growing services sector, its chief executive said on Saturday.

“In India, demand for services is fairly robust as the It, BPO and KPO segments grow nicely, Perhaps, demand might grow even more steeply once the confidence comes back to the market,” Colin Dyer, also Jones Lang’s president, told Reuters in an interview.

Chicago-based Jones Lang LaSalle, with revenue of $2.7 billion in 2008, expects the India business to contribute 6-7 percent of worldwide revenue in three years, up from 3-4 percent currently.

Growth in India, Asia’s third-largest economy, is expected to slow down to 7 percent in 2008/09, hit by the global economic downturn. The services sector, despite recent hiccups, is however set to grow at nearly 10 percent in the period.

India’s Real estate sector has been hit by high property prices and lack of finance, leading to a slump in sales after five years of boom.

Parsvnath Developers Limited announced the launch of parsvnath Royale Floors, independent floors in parsvnath City, lucknow. It is located on the main faizabad Road, lucknow, which is a part of an integrated township - parsvnath City. The project offers four BHK units having saleable area of 1665 sq ft, three BHK units having a saleable area of 1435 sq ft 1135 sq ft and two BHK units having a saleable a mall of 900 sq ft. The offering of the independent floors comes in the price range starting from Rs 13.95 lakh to Rs. 27.50 lakh.

Courtesy:- HT dtd:- 07/03/09

Private sector

Yes Bank is planning to form an asset reconstruction company (ARC) in partnership

with a foreign lender and three public sector banks — Bank of Baroda, Union Bank of

India and Bank of India — in the next 6-9 months.

Sources close to the development said that the ARC would be capitalized at about Rs

110 crore. While Yes Bank will hold a 29.5 per cent stake in the venture, the three

local banks will have a combined 33 per cent stake and the balance 37.5 per cent being

offered to the foreign partner.

Yes Bank, which was earlier in talks with JP Morgan for its ARC foray is now scouting

for a new foreign partner.

“The foreign partner would be a US-based lender. The bank has received the first level

of RBI approval, but the foreign partner has not yet been finalized,” said the source.

According to the

foreign direct investment (FDI) norms, a foreign partner cannot hold more than 49

per cent stake in an Indian firm. For taking stake in the ARC, the foreign partner

will also have to seek an approval from the Foreign Investment Promotion Board (FIPB).

“With the stock of non-performing assets (NPAs) growing with Indian banks, there could

not be a better circumstance than now to enter the ARC business. Yes Bank expects to

acquire assets worth more than Rs 1,000 crore during the first year for the business,”

the source added.

However, unlike other established ARC players such as Arcil and IARC, the Yes Bank-led

ARC is not expected to look at acquiring retail NPAs from banks.

“To begin with, Yes Bank will look at acquiring long-term assets, mostly on the

corporate loan books,” the source said.

After closing

investments for the Global Environment Fund, Yes Bank is looking at launching

its second private equity fund — Distressed Assets Fund — in April. The bank has

partnered with a West Asian bank to launch this Rs 500-crore fund.

The bank plans to launch a Rs 300-crore Social Sectors Fund, a real estate fund, and

an infrastructure fund in the next two years

Courtesy:- BS dtd:- 05-03-09

With the current financial constraints of the developers and no support coming in from the interim budget, the builders will be better
off focusing on the core fundamentals of good real estate development
that concentrates on space efficient apartments with respectable
finishes and cost-effective amenities for the middle class buyers.

As for the buyers, they are better off starting their apartment search
today by negotiating hard with reputed developers to get the maximum
space with upgrades at the minimum price per square feet and ink the
deal, says Amit Ramani, President, Nelson India.

Long horizon

Yet another view is that the lack of sops will build up pressure that
will lubricate demand and supply in such a manner that down the line,
things are bound to fall in place. Simply put, the next six months will
be critical.

According to Harsh Vardhan Roongta, CEO of apnaloan.com, the revenue
deficit numbers tell the true story The money . markets are clearly
recognizing the stress. Obviously reducing interest rates to stimulate
demand is clearly not going to be easy in such a situation. In fact,
interest rates have reduced only marginally and have stubbornly held on
despite the massive dose of liquidity that has been injected in the
system over the last two-three months.

So what does it mean for the residential real estate sector? “I think
as the holding capacity of the developers reduces, we will start
seeing reduction in prices across the board sometime around May June
when the lean season anyway begins even in normal times. The consumer
should pick up the signals after a short time lag and we may see the
OND quarter to be a pretty good quarter in terms of consumer demand.
Of course, it all depends on how the economy rolls out and whether the
good show put up by the agricultural sector will continue this year as
well. The government (both current and to-be formed) can kick-start
this process by at least removing the regulatory cost (in fact it
should be called a tax) on land that adds up to anywhere up to 30-40
per cent of the land cost. Since this cost is mostly added at the
state government and local bodies' level this will require an
across-the-board consensus of the kind that has been achieved on VAT
and GST. A tough ask but in the extraordinary situation currently
prevailing, it is possible if guided with some degree of imagination
and fiscal incentives.”

Courtesy:- HT dtd:- 21-02-09

According to the Hindu Succession Act, a woman can inherit property...
But in case certain conditions are imposed, she cannot sell it off

One keeps getting disturbing news about the steep fall in the male to
female ratio in the northern states. As per the latest information
available, in some states like Haryana and Punjab, the ratio of male
to female is 1000:850. The Hindu personal law, right from the olden
days, is biased in favor of male children. It is believed that a male
child helps in the salvation of the souls of his ancestors by
performing the ‘shraddh karma’.

The above thinking is reflected in the distribution of property among
one’s children. Our traditional Hindu law treats sons and daughters
differently A father is duty . bound to provide good living standards
to his daughter till her marriage and get her married as per the
dictates of his lifestyle. However, he is not supposed to give her a
share in his property Our traditional Hindu law also recognizes a
male’s right to ancestral property even when he is in his mother’s
womb.
Major amendments were made to traditional Hindu law in the year 1956,
like introduction of ‘divorce’ and abolition of ‘bigamy’, etc. In 1984
only a statutory right was given to the female child in her father’s
property by way of succession in the state of Andhra Pradesh. The
Union government recognized this right and amended the Hindu
Succession Act in 2005.

The general perception is that the lot of Hindu women in India has
improved after the ‘Hindu Succession Act of 1956’, but, unfortunately,
this is not the case. As per the provisions of the Hindu Succession
Act (Sections 15 & 16), a woman no doubt inherits the property, but
it’s subject to certain conditions. If she gets it either through
gift, succession, or court decree, she can use the property subject to
conditions in the gift deed. Supposing a father gifts immovable
property to his daughter, her rights are subject to the conditions
laid down in the gift deed. If the father has allowed his daughter to
sell the land, then she can transfer the property by way of sale. If a
father imposes the condition that his daughter can enjoy the property
in her lifetime, but doesn’t have the rights to sell it, or that she
has to hand it to some society or the other, then she has to act
according to the deed.

In case of death of a woman intestate,
the property will initially
devolve upon her son, daughter and husband. The sons of her
predeceased son and predeceased daughter will also a get a share. In
case she dies without a successor; the property will devolve upon the
relatives of her husband, as per the law applicable. In case she dies
without successors or relatives of husband, the property will go to her
parents. In case she has neither of the above the property will go to
the relatives of her father and in their absence; to the relatives of
her mother.

Courtesy:- HT dtd:- 21-02-09