Sept. 24 – The Indian government is currently working to set up a long-term infrastructure trust fund that would be open to both foreign and Indian investors – which would be similar to the real estate investment trusts in countries such as Singapore, Hong Kong and the US – by the end of this year in a move to boost further investments into the country’s wavering infrastructure sector.
Over the past years, India’s infrastructure sector has struggled to secure financing for projects since banks have been unwilling to lend because of policy constraints and since private investors have also been hesitant to provide funding due to the recent volatility within the country. This is where such a trust fund would come in. Continue reading
Jun. 7 – India’s Union Cabinet passed the Real Estate (Regulation and Development) Bill 2013 this week after congress agreed on changes to garner wider approval for the Bill. The Bill will put into effect a uniform regulatory system for real estate developers and will impose sanctions on any agent that misrepresents the scope and characteristics of their developments and properties.
The real estate market has been a hot bed for corruption in India due to the lack of an oversight entity. In the past, it has not been uncommon for contractors to demand under-the-table payments to finish a construction project or for agents to manipulate the prices of the estates they represent.
“The absence of a regulator is the root cause of corruption, anxiety and malpractice,” said Deepak Parekh, chairman of India’s largest real estate finance company. Continue reading
May 14 – Looking to further break into the Indian market, Hilton Hotels has committed to expand its mid-market and luxury brands in the country.
Hilton, which already has established various hotels in India, recently acquired an additional number of properties on which it looks to open up and develop hotels for its luxury brand, Conrad, and its mid-market brands Doubletree and Hilton Garden Inn. Hilton is also looking to introduce its world-renowned Waldorf Astoria brand to India in the near future.
“We are on equal footing with our competitors both from the perspective of the number of hotels trading and the number of hotels that are actually going to come up in the next one or two years. By the end of this year, we expect 17 hotels to be trading, and we have the second largest pipeline of hotels in the Asia Pacific region with 21 hotels in various stages of construction,” said Guy Hutchinson, Hilton Worldwide’s Vice-President of India Operations. Continue reading
Oct. 19 – The Indian economy has witnessed astounding growth over the past decade and is likely to be one of the fastest growing economies in the coming years. In particular, the real estate sector in India has assumed greater significance with the liberalization of the economy, as increasing business opportunities and labor migration have led to greater demand for commercial and housing space.
India’s financial capital of Mumbai is also known as the greatest real estate market in India, due partly to its large population of approximate 19 million people. Below, we summarize the city’s main business districts, costing concerns, and the key feature of the market. Continue reading
Jul. 13 – The Department of Industrial Policy and Promotion is studying a proposal to allow foreign real estate companies to repatriate all their profits except the minimum initial investment of US$5 million.
This will apply to foreign companies in a joint venture with a local developer and will effectively limit India’s lock-in period for real estate investment to only apply to the initial US$5 million. It will do away with a previous DIPP rule announced last year that forbade repatriating profits after less than three years of completing capitalization. Continue reading
Apr. 15 – The Mumbai and New Delhi realty markets hold a significant level of promise for potential investors, says Knight Frank’s The Wealth Report 2010.
The report forecasts trends and identifies areas of growth in global prime residential property and wealth. Moreover, it provides insight to the attitudes of the wealthy towards property and other investment types. The report, conducted in cooperation with Citi Private Bank, looks at the answers from three major surveys conducted on the “Prime International Residential Index (PIRI),” “World’s Most Influential Cities’ survey and a unique survey on the “HNWI Attitudes to Property and Wealth.” Continue reading
Mar. 9 – A proposal to implement a construction tax under the new services tax will invariably hike prices for real estate projects still under construction or pending approval from authorities.
The tax would apply to the construction of complex service or commercial or industrial construction services as well as services offering premium prices based on a flat’s location in a multi-storey building. Continue reading
Mar. 9 – The Confederation of Indian Industries has ranked New Delhi as having the best quality of life for its residents among all cities in the India based on their latest “Liveability Index.”
After New Delhi, the next best cities to live in are Mumbai, Chennai and Bangalore. The survey looked at 37 Indian cities in over a decade to compute for a quality of life index. It also used hard data collected from reliable sources to eliminate the possibility of personal bias or a sampling error obscuring the reality. Continue reading