Real Estate at a Glance

I came across this on net and was ashamed that our current frustration is not because of some happenings but designed due to our attitudes Sir Winston Churchill predicted it. I wish to resolve that we will reverse it in coming decades.

Power will go to Rascals, Rogues - How True what Sir Winston Churchill wrote about us 64 years ago?

I am an Indian. I read the Churchill’s speech. I wondered. HOW TRUE WHAT SIR WINSTON CHURCHILL WROTE ABOUT INDIANS. Please read:

HOW TRUE WHAT SIR WINSTON CHURCHILL WROTE ABOUT INDIANS 64 YEARS AGO HAVEN'T WE INDIANS WORKED SO VERY HARD TO ACHIEVE THIS END!!!

Power will go to the hands of Rascals, Rogues, Freebooters; all Indian leaders will be of low caliber and men of straw. They will have sweet tongues and silly hearts. They will fight amongst themselves for power and India will be lost in political squabbles. A day would come when even air & water would be taxed in India." Lalit Kumar Jain, President, CREDAI.

TODAY’S REALTY NEWS

• "Approximately 83% drop in prime retail space supply in 2012": The Times Of India

Despite an 83% drop in supply of organised retail space across key cities in the country, 2012 continued to witness an increase in transaction activity and retailer expansion. According to the findings of CBRE’s latest report "Indian Retail Market View H2, 2012", around 2.5 million sq.ft. of fresh retail space entered the market in 2012, mainly concentrated in Bangalore, Kolkata and Pune, as against over 15 million sq.ft. in 2011. Though this is a significant drop in prime retail supply, the market witnessed leading brands and retailers pursuing expansion plans aggressively and increasing their presence in the Tier I as well as Tier II and III cities of the country. Developers remained focused on attracting tenants in completed properties and reducing existing vacancy levels, rather than focusing on launching new projects. Most of the supply pipeline is scheduled for completion in 2013; by when the existing vacancy levels might reduce. Commenting on the findings of the report, Mr. Anshuman Magazine, Chairman and Managing Director of CBRE, South Asia Pvt. Ltd said, "Despite the large dip in prime retail space supply across key cities last year, the good news is that retailers continued with their expansion plans. This positive sentiment is indicative of retailers taking a long term view of the Indian economy despite the short term struggle. The Government’s bold and welcome move of allowing FDI in retail has further contributed to this positive sentiment."


• "Realty players upbeat as sales begin to pick up": The Hindu Business Line

Improved sales and customer inquiries are helping listed realty players get back on track. Most players have reported growth in net profit in the third quarter ended December 2012, prompting industry watchers to claim that the slowdown in the real estate segment is bottoming out. Both Unitech and DLF have reported growth in profits after almost nine straight quarters. The two largest listed players said they were ramping up construction activity in the coming quarters. DLF said it had reduced its debt by Rs 1,870 Crore by selling its non-core assets. Unitech’s consolidated net debt stood at Rs 5,421 crore as on December 31, 2012, with the net debt to equity ratio at 0.45, which the company said was one of the lowest in the industry. Godrej Properties, another listed entity, also cited improved sales from new projects as a main reason for improved profits. “The sales numbers have improved mainly on the back of new projects which we launched during the quarter. Despite flat sentiment in the overall real estate market, we received good response for our launches,” Pirojsha Godrej, Managing Director and Chief Executive, said. The company had launched four projects across key markets of Mumbai, NCR and Bangalore. Unitech meanwhile said finance costs too had declined in the October-December quarter to Rs 8.4 Crore from Rs 27 Crore in the same year-ago period.

SCALING UP

"There has been a significant scale up in construction activity in recent months and the worker strength at sites has reached an all-time high," Sanjay Chandra, Managing Director of Unitech, said, adding that the company is focused on ramping up the construction activity in the coming months, particularly to clear the delivery backlog. According to a Knight and Frank estimates, in Mumbai alone as many as 83,000 units, that is, three-quarters of the inventory, remained unsold at the end of 2012. The increase in inventories, stagnating absorption levels, rise in interest costs for the realty sector, and decline in net profits during 2012 is likely to compel developers to lighten unsold inventory levels and de-leverage their balance-sheets, Knight and Frank said its outlook.


• "Housing property helps save on taxes, multiply gains": The Financial Express

Timing is significant in financial planning especially when you are looking to earn a profit as you need to know when to take advantage of the increase in value. However, it’s equally important to be careful to avoid paying a huge amount as tax. Amit learned this lesson when he sold his house in Delhi in 2012 within 2 years of purchasing. According to him the property was raking him 60% profits, an offer he could not resist. However, he was not aware of the tax implications of his rushed decision. Not only he had to pay a considerable amount of tax on the profit, but also had to let go of the tax exemptions he was availing on his home loan. If you sell your house within three years of purchase, the tax benefits you are enjoying on your home loan get reversed and are included in your income when you file your income return. After presenting its compassionate side, the Income Tax Act eyes all properties owned by you for taxation. This includes property from which you are earning that is let out property as well as any other property which it is vacant and not rented out (known as Deemed to be Let Out Property or DLOP) as the annual value of the property after standard deductions is taxable under Sec 24B under the head income from house property. However, if you own a farm house, it is considered an agriculture income and does not fall under the tax net.


• "US reality major The Trump Organisation counts India among its top-5 revenue contributors": The Economic Times

The US-based property major The Trump Organisation, in its renewed effort to tap growth in the burgeoning Indian luxury real estate market, is aiming to make the country one of its top five revenue contributing markets in the next 10 years. India is the first country among its global markets portfolio where the US billionaire has roped in an exclusive representative for Trump's branded residential, hotel, mixed-use and Golf course projects. "It's a unique market requiring a customized and hands-on approach. We needed local expertise in identifying and executing deals," executive vice-president Donald Trump Jr, told ET in a telephonic interaction from New York. The Group has appointed Mumbai-based Tribeca Developers as its exclusive India representative that will be responsible for supporting Trump in all aspects of building India business, including identifying and selecting the sites and local developers for the various Trump-branded projects here.

CREDAI's Recommendation to Ministry of Finance on Section 80-IA (4) (iii) and 80 IA: Extension in time limit for notification up to 31 March 2015. All Pending Applications applied under the original Industrial Parks Scheme of 2002 should be cleared both under the Automatic and Non Automatic Route. There should not be any restriction on the number of units. Benefit u/s 80IA be allowed on part completion of project Suitable amendment to treat township as 'infrastructure facility'; and hence tax deduction under section 80IA.

MARKET SNAPSHOT (Monday, 18th February, 2013)

EXCHANGE	INDEX	CHANGE	PERCENTAGE
INDIAN MARKET
BSE	19497.84	29.69	0.15%
NSE	5898.20	10.80	0.18%
REALTY-INDEX	267.35	4.95	1.89
USD/RUPEE	54.26	0.04	0.07%
EURO/RUPEE	72.52	0.03	0.03%
CRR			4.25%
BANK RATE			8.75
REPO RATE			7.75%
REVERSE REPO			6.75%
USA & ASIAN MARKET
DOW JONES	13,981.80	8.37	0.06%
S & P 500	1,519.79	-1.59	-0.10%
NASDAQ	3,192.03	-6.63	-0.21%
NIKKEI	11,407.90	234.04	2.09%
HANG SENG	23,381.90	-62.62	-0.27%
COMMODITY
CRUDE OIL(USD)	117.78	0.12	0.10%
GOLD ($)/OUNCE	1,616.10	6.60	0.41%
Disclaimer: "This is intended only for our CREDAI Members."

Reality Index	Today's Close	Rs. Gain /Loss
ANANTRAJ	70.55	2.00
IBREALTYST	70.85	-0.05
GODREJPROP	598.00	2.80
SOBHA DEV	428.00	-14.80
OBEROI RLTY	290.80	0.90
PARSVNATH	43.05	0.35
HDIL	69.55	2.70
DLF	261.00	12.30
UNITECH	30.10	-0.30
DB REALTY	87.20	-0.95
BRIGADE ENTERPRISE	79.70	-0.25
JAYPEE INFRA	47.80	3.05
PRESTIGE ESTATE	182.30	1.55
ASHOK BUILDCON	219.00	7.75
NITESH ESTATE	13.30	0.40
ORBIT CORP	40.25	0.80
OMAXE LTD	154.30	-0.80
IVRCL	30.35	1.35
SIMPLEX PROJECT	33.90	0.00
PURVANKAR PROP	88.40	-1.30
DS KULKARNI DEV	68.90	0.30
ARSS INFRA	40.30	1.25
ANSAL HOUSING	61.50	2.40
ANSAL PROPERTY	30.30	0.80
MAHINDRA LIFESPACE	412.00	1.70
PHOENIX MILLS	260.00	-7.90
KOLTE-PATIL	103.20	1.70
MARATHON NEXTGEN	130.30	-0.35