Piramal Enterprises plans to invest $2 billion in real estate projects over the next two years. This will help developers complete commercial and residential projects that are stuck due to insufficient funds and credit cut by banks to the sector.
With the private equity (PE) players dictating the prices to be charged for real estate properties, many new real estate projects, especially those in which PE firms are investing, could see a substantial price correction across India. As banks tread the realty sector with caution and the capital market appears too volatile for raising funds, special purpose vehicles (SPVs) with private equity appear to be the only alternative.
Despite a sustained sluggishness in demand, property prices in Mumbai, India’s largest real estate market, do not seem to ease.A reason for this is the financing structure of real estate projects, where many developers, especially unlisted ones, resort to discounted selling to speculators during the soft launch of a project.
When the going gets tough, the tough strategise. Developers, contractors, cement and steel companies alike rely on sound business practices and a futuristic vision to stay in the game, discovers Charu Bahri.
A committee under the housing ministry has recommended a technology-enabled single-window portal for streamlining the process of approvals for real estate projects that may help developers bring down home prices.
The Union government is planning a single-window clearance for all real estate projects. Once it is realised, the government is expecting to significantly bring down costs of projects for developers. Developers will be able to bring down cost with faster approvals, as well as assured and timely delivery of the projects. For buyers, there will be at least five to 15 per cent downward correction in property prices, depending upon the location and cost of the land, Realistic Realtors, Managing Dire
The Haryana government is planning to impose value added tax (VAT) on the builders, developers and promoters of real estate projects in the state, keeping in view the spur in activity of this sector. The move is aimed to shore up revenues of the state. This tax could see most of the builders falling in its ambit as it is proposed to be levied on any person or entity with a turnover of Rs 5 lakh.
The Haryana Government is planning to impose VAT on builders, developers and promoters of real estate projects in the state, keeping in view the spur in activity of this sector. The move is aimed to shore up the state's revenues. This tax could see most of the builders falling in its ambit as it is proposed to be levied on any person or entity with a turnover of Rs 5 lakh.
The Confederation of Real Estate Developers' Associations of India (Credai) has urged the Union government to appoint a high power real estate committee to clear high-ticket real estate projects costing between Rs 2 billion and Rs 10 billion.