HDFC Fund Takes Over 50% Of ACME Housing ProjectHDFC Property Fund's international wing has picked up a nearly 50 per cent stake in Mumbai-based developer, ACME Group’s housing project in Thane. The fund has bought the stake in a special purpose vehicle (SPV) to develop an eco-township but the exact financial details of the deal are not known. The township, ACME Ozone to be developed on 1.1 million sq ft, will have 760 residential apartments’ and a small commercial space based on the eco-living theme. 12 June 2008 Business Standard
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Rental Market Bullish In Ahmedabad A highly volatile stock market and higher inflation rate have adversely affected Ahmedabad real estate market. The city hasn't witnessed any big deal in the last four months apart from Videocon bagging a huge chunk of land. However, the lease-rent market is doing well, thanks to retail, banking and pharmaceutical business. Presently, only 10 per cent of 'A' grade commercial properties are available for rent, while close to 4 and 10 per cent are available in 'B' and 'C' grade respectively. This has increased the rental value of commercial properties by 16 to 20 per cent during the first quarter of calendar year 2008. 13 June 2008 Business Standard
Planning To Buy A House? Hold On…The Reserve Bank of India's India’s move to increase repo rates (the rate at which the RBI lends money to banks) might trigger a further slowdown in realty prices over the next few months. Property prices have been stagnating due to falling demand and high interest rates. Home loans will become more expensive as the hike in repo rates will push banks to go for an upward revision in interest rates. Small real estate developers, who are hit by falling sales and liquidity problems, are expected to reduce prices in an attempt to boost demand. "We are heading for a major crisis. Prices have already crashed by 20 percent. Nobody buys in a falling market expecting further correction. The repo rate will further aggravate the situation," said Mr. Arvind Goyal who heads Navi Mumbai real estate company Karnala Infra Projects. Big players like DLF, are not expecting further decline in prices. "The rise in repo rate will not have any impact on us. This is more to do with curbing inflation. Unless supply is improved, prices can't soften." said Mr. Rajiv Talwar, Executive Director, DLF.13 June 2008 Hindustan Times
30 Percent Growth Anticipated In Indian Real Estate Over The Next 10 YearsOver the next decade, the realty sector is projected to grow at the rate of 30 per cent annually. According to industry body, Assocham, currently, the domestic real estate market is expected to be worth $15 billion in which the FDI is estimated to about $6 billion. The foreign developers at present can undertake construction activities on a minimum space of 50,000 sq ft, Assocham President, Mr. Sajjan Jindal said. The ceiling of 50,000 sq ft would be increased by the government for more FDI and would go to 2 lakh sq ft in next 10 years, as per Assocham's estimate. The sector would grow more as the expected requirement by the IT sector will be about 200 million sq ft space across major and large townships. Assocham also estimated that in the residential sector, the housing shortage is around 20 million units. Commenting on the problem faced by the sector, the Assocham said that the involvement of Central government and a number of state agencies in setting up of townships is needed. 13 June 2008 Business Standard
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