Realty prices in India rise dramatically

Real estate prices in India are increasing dramatically, growing at the rate of 40% per year in some cities. The National Housing Bank ascribes the boom to shortage of land and rising incomes; however it expects a dip in rates in some regions in the medium term.

The Dubai-based real estate giant, Emaar Properties PJSC is planning to invest over $4 billion in India’s thriving property sector. It has floated Emaar MGF Land Private Ltd with the Indian firm, MGF Developments Ltd to oversee real estate projects in the country. In December, 2005, Emaar MGF launched India’s largest FDI in real estate amounting to half a billion dollars for projects across India.

Source: http://www.gowealthy.com/realestate/news/1478/detail.asp

Real estate transparency in India better

Real estate markets around the world have become increasingly transparent over the past two years, driven by the rise of cross-border investment opportunities and multinational occupiers. And India together with Japan has emerged as a significant mover in transparency, Jones Lang LaSalle points out in its 2006 Real Estate Transparency Index, a study of real estate market transparency in 56 countries and territories worldwide.

India's improvement from low transparency to semi-transparent on the index was helped by the availability of market information, improved general accounting and reporting processes, and substantial improvement among market participants about the legal process that relate to contract enforcement and legal relief.

Source: http://www.thehindubusinessline.com/2006/08/18/stories/2006081803170900.htm

RBI on mode of payment for NRIs buying property in India

The Reserve Bank of India (RBI) on Wednesday clarified that non-resident Indians (NRIs) and Persons of Indian Origin (PIO), purchasing immovable property in India should pay for the acquisition by funds received in India through normal banking channels by way of inward remittance from outside the country.

Also, they can pay through the funds held in any non-resident account maintained in accordance with the provisions of the Foreign Exchange Management Act, 1999, and the regulations made by Reserve Bank of India (RBI) from time to time, the apex bank said.

Notably, the NRIs and PIO can acquire immovable property in India other than agricultural property, plantation or a farm house.

Source: http://www.zeenews.com/znnew/articles.asp?aid=315965&ssid=52&sid=BUS

Homing on high-end apartments in Greater Noida

Following the record-breaking land deal for group housing projects in Greater Noida, leading property developers have come up with their strategy to develop housing infrastructure.

Unitech, which bagged the largest pie in the auction (100 acres), plans to develop one of the largest group housing projects in the country. And with a total built-up area of about 8 million sq ft, involving a capital outlay of around Rs 556.44 crore, it does not seem like an impossible target.

Wary Indian banks open doors to property firms

India's banks are starting to open their doors to developers but remain wary about the risks of a fast-growing but young property market, making loans expensive and difficult to come by.

India eased rules on inward investment in the construction industry early last year, unleashing a wave of activity and a flurry of deals involving foreign funds.

The property industry is shedding a shady image of self-financed wheeler dealer developers. Young businessmen are eager for bank borrowing to help lure foreign partners and turn plots of family land into offices, shopping centres and housing befitting an economy growing at more than 8 percent a year.

But industry professionals complain banks have been slow to adapt.Prospective foreign investors, such as U.S. shopping mall developer Taubman Centers Inc., are also keen to borrow locally but balk at the personal and corporate guarantees on loans often required by Indian banks.

Source: http://www.ndtvprofit.com/homepage/news.asp?id=261921