8/10/2019 Articles on Real Estate

1/4

1. NCR developers see impetus under new stable government. (July 12,

2004, ECONOMIC TIMES)

NCR developers are very optimistic with the formation of a stable government t the centre as

they believe that resurgence of property business will happen soon. As stated by Manishagarwal ,secretary CREDAI-NCR and managing director , satya group with such a decisive

mandate for stability , the real estate market looks at it positively and expects this mood to

convert into growth. He also added that the stability brings sanity of thoughts and clear vision

for future which benefits the business in particular.

He also said that the policy paralysis during the last regime had struck the market causing a

major dent to the growth of real estate sector. The central government can work in tandem

with the state government in removing bottlenecks ,weed outlethargy on implementationfront and quick approvals to plans submitted by the state government to the board.

The industry players say that the central government can help the market greatly by initiating

the process and make the funds available for up gradation of the road infrastructure in order

to make them congestion free via the route of NCR planning board.

http://articles.economictimes.indiatimes.com/2014-07-12/news/51392208_1_new-gurgaon-

real-estate-market-road-infrastructure

2.Middle path (October 30, 2005, ECONOMIC TIMES)

The real estate market which has been steadily surging forward over the past two years in

kolkatta stands witness to yet another interesting trend. Builders , banks and property

managers alike are now agreeing to the fact that number of customers in the MIG sector has

almost doubled over the past one year. More importantly , it seems that the average age of

customers have dropped to around 35 years of age. As quoted by the senior officer at the

home loan department of a private bank The market for home loans in the country

continues to grow at the rate of 30 percent per annum in the year. Most banks are now

financing upto 90 percent of the total cost of the home. Banks are offering top up loans,

where another loan at the same time is given to the customer over and above the existing the

home loan. Market experts predict that even though Reserve Bank of India has recently

hiked the reverse repo rate at which banks park their shorter surplus with the RBI by 25 basic

http://articles.economictimes.indiatimes.com/2014-07-12/news/51392208_1_new-gurgaon-real-estate-market-road-infrastructurehttp://articles.economictimes.indiatimes.com/2014-07-12/news/51392208_1_new-gurgaon-real-estate-market-road-infrastructurehttp://articles.economictimes.indiatimes.com/2014-07-12/news/51392208_1_new-gurgaon-real-estate-market-road-infrastructurehttp://articles.economictimes.indiatimes.com/2014-07-12/news/51392208_1_new-gurgaon-real-estate-market-road-infrastructurehttp://articles.economictimes.indiatimes.com/2014-07-12/news/51392208_1_new-gurgaon-real-estate-market-road-infrastructure

8/10/2019 Articles on Real Estate

2/4

points, it will not have a overtly detrimental impact on the home loan market.

http://articles.economictimes.indiatimes.com/2005-10-30/news/27500187_1_home-loan-

market-real-estate-market-market-experts

3.

Is the real estate bubble big enough to naturally burst in 2014?

(JANUARY 02, 2014, FORBES INDIA MAGAZINE)

One of the major concerns for the real estate in the coming several years is very clear. Will

the much awaited talked about asset bubble inflate further or will it burst?

2013 was mired in existing challenges such as subdued sales , piles of unsold inventory and

builders going bankrupt. These problems will continue in 2014 as well, and given economic

instability, matters could become worse. However it is very difficult to forecast degree ofpolitical uncertainity , liquidity issues ,higher interest rates and cautious sentiments are

expected to underpin the real estate sector in 2014 too. The only positive energy in the

sluggish sector springs from the fact that the sales, though slow, are not stagnant.

Indias real estate market has been faltering for quite some time as the economy remains

under stress. Realty prices have been surging in an unprecedented manner unlike income

levels which are not rising. The price increase is mostly speculative and can be attributed to

the predominantly capital- driven nature of the sector.

NCR (National Capital Region) is an entirely investor- driven market. A lot of property is

being sold which may remain uninhabitable for a long time, the price rise post FY- 2010-11

continued to be sharp and persists even today. After touching the threshold of 27 per cent

year on year in the second quarter of FY 2012-2013 , the growth rate has started to peter out.

One can already see the correction in the secondary market in the NCR. The situation

indicates that the existing bubble in tier I markets like NCR and MMR are at the threshold

of bursting. Owing to the high level of unsold stock in these markets , the prices might soon

begin to tip off.

http://forbesindia.com/article/the-big-questions-for-2014/is-the-real-estate-

bubble-big-enough-to-naturally-burst-in-2014/36797/1

http://articles.economictimes.indiatimes.com/2005-10-30/news/27500187_1_home-loan-market-real-estate-market-market-expertshttp://articles.economictimes.indiatimes.com/2005-10-30/news/27500187_1_home-loan-market-real-estate-market-market-expertshttp://articles.economictimes.indiatimes.com/2005-10-30/news/27500187_1_home-loan-market-real-estate-market-market-expertshttp://forbesindia.com/article/the-big-questions-for-2014/is-the-real-estate-bubble-big-enough-to-naturally-burst-in-2014/36797/1http://forbesindia.com/article/the-big-questions-for-2014/is-the-real-estate-bubble-big-enough-to-naturally-burst-in-2014/36797/1http://forbesindia.com/article/the-big-questions-for-2014/is-the-real-estate-bubble-big-enough-to-naturally-burst-in-2014/36797/1http://forbesindia.com/article/the-big-questions-for-2014/is-the-real-estate-bubble-big-enough-to-naturally-burst-in-2014/36797/1http://forbesindia.com/article/the-big-questions-for-2014/is-the-real-estate-bubble-big-enough-to-naturally-burst-in-2014/36797/1http://articles.economictimes.indiatimes.com/2005-10-30/news/27500187_1_home-loan-market-real-estate-market-market-expertshttp://articles.economictimes.indiatimes.com/2005-10-30/news/27500187_1_home-loan-market-real-estate-market-market-experts

8/10/2019 Articles on Real Estate

3/4

4.Global investors take a fresh angle in india.(DECEMBER,04,2012 ,THE

WALL STREET JOURNAL)

Global investors got burned badly in Indian real estate a few years ago. Now, a handful are

trying a new but with a different strategy. In the largest commercial real estate deal in

India this year, private equity firm Blackstone made an equity investment of $170 million in

a portfolio of three office space complexes. That followed a $200 million investment a year

earlier into a joint venture that operates an office park. In march, Morgan Stanleys real

estate investment fund invested $90 million in a joint venture developing a Mumbai

apartment complex , the firms first investment in Indian real estate in four years.

As quoted by David Green Morgan , head of capital markets research for Jones Lang LaSalle

, a real estate services company Investors are often almost obsessed with due diligence.

People want to have a greater line of sight into exactly what theyre investing in.

But now, investors are structuring deals for more protection. For example, Kotak Realty , an

India based fund manager that raises money both from local and foreign investors, co-

invests with the developers into so-called special- purpose vehicles that fund construction

projects.

http://online.wsj.com/news/articles/SB10001424127887324355904578157350230019718

5.Budget 2014: REITs regime will facilitate investment in real

estate.(JULY07,2014,INDIAN REALTY NEWS)

A Real Estate investment trust (REIT) is a trust that offers units to the public . generally speaking

REITS are vehicles which raise funds from investors, acquire rent yielding real estate and

distribute the income to investors. REITs typically own and manage income producing

properties and are required to distribute most (90%) of the profits earned as dividend to unit-

holders.

REITs have the ability to attract and effectively manage investments in the real estate sector.

There is a case to incentivize investments in real estate through a REIT for the following reasons.

http://online.wsj.com/news/articles/SB10001424127887324355904578157350230019718http://online.wsj.com/news/articles/SB10001424127887324355904578157350230019718http://online.wsj.com/news/articles/SB10001424127887324355904578157350230019718

8/10/2019 Articles on Real Estate

4/4

To make REITs attractive for investors from various classes (i.ecorporate , individuals etc). it is

essential that REIT format is tax efficient. Therefore, relevant changes would be required in tax

laws and foreign exchange laws to ensure that REITs practically take-off in the intended

manner. Some of the alterations made by REIT ARE:

(i) PROPERTY OWNED BY SPV:No income tax and minimum alternate tax (MAT)

on income received by the SPV from the property. No withholding tax or distribution

tax when SPV distributes income to the REIT. No income tax and MAT on income

received by REIT from its SPVs. No income tax andMAT on income received by

the unit holders from REIT.

(ii) PROPERTY OWNED BY REIT :No income tax and MAT on income received by

REIT from the property . No income tax and MAT on income received by the unit

holders from REIT. http://www.indianrealtynews.com/real-estate-india/budget-2014-

reits-regime-will-facilitate-investment-in-real-estate.html

http://www.indianrealtynews.com/real-estate-india/budget-2014-reits-regime-will-facilitate-investment-in-real-estate.htmlhttp://www.indianrealtynews.com/real-estate-india/budget-2014-reits-regime-will-facilitate-investment-in-real-estate.htmlhttp://www.indianrealtynews.com/real-estate-india/budget-2014-reits-regime-will-facilitate-investment-in-real-estate.htmlhttp://www.indianrealtynews.com/real-estate-india/budget-2014-reits-regime-will-facilitate-investment-in-real-estate.htmlhttp://www.indianrealtynews.com/real-estate-india/budget-2014-reits-regime-will-facilitate-investment-in-real-estate.html