Monday, March 29, 2010
Friday, March 19, 2010
Assocham Ask Govt. to with draw Tax on Real Estate Sector
Industry body Assocham has asked the government to roll back the service tax proposed on real estate developers at the time of construction, as it would increase the tax burden on home buyers and impact the recovery of the sector. The government, in the Budget, said that real estate complexes will attract service tax, unless the entire consideration for the property is paid after the construction is complete.
In its post Budget memorandum to the Finance Ministry, Assocham had said that the real estate sector was gradually returning to normalcy and imposition of service tax on immovable property would increase the cost of housing by four per cent. “In addition, it would also make the entire housing facility costlier to end-consumer and will be contrary to government’s aim of providing affordable housing,”.
In its post Budget memorandum to the Finance Ministry, Assocham had said that the real estate sector was gradually returning to normalcy and imposition of service tax on immovable property would increase the cost of housing by four per cent. “In addition, it would also make the entire housing facility costlier to end-consumer and will be contrary to government’s aim of providing affordable housing,”.
gurgaon mumbai emerge as top residential destination
Gurgaon and Mumbai have emerged as the top destinations for residential investment in the country. Both have seen a massive infusion of commercial and retail space owing to residential demand, which in turn was spurred by a growth in employment opportunities, according to the fourth quarter Asia Pacific Property Digest by global real estate consultant Jones Lang LaSelle. The residential market in both the regions witnessed a price correction of 25-30% from their peak values which presented opportunities to end-users and investors alike.
Despite being hit hard by the recent turmoil, the residential sector of the crisis-torn Indian real estate industry has emerged as the sole bright spot for individual investors, the digest ranked Noida, Pune, Bangalore, Chennai, Hyderabad and Kolkata behind Gurgaon and Mumbai. The six cities, which are witnessing an influx of IT/ ITeS employees, also provide residential units at affordable prices. However, infrastructure continues to remain a concern across most of these cities as it is unable to keep pace with the growth in population. With the exception of Bangalore, oversupply will be a concern in the short term due to large number of projects launched over the past 3-4 quarters. Read More »
In its post Budget memorandum to the Finance Ministry, Assocham had said that the real estate sector was gradually returning to normalcy and imposition of service tax on immovable property would increase the cost of housing by four per cent. “In addition, it would also make the entire housing facility costlier to end-consumer and will be contrary to government’s aim of providing affordable housing,” it said.
Despite being hit hard by the recent turmoil, the residential sector of the crisis-torn Indian real estate industry has emerged as the sole bright spot for individual investors, the digest ranked Noida, Pune, Bangalore, Chennai, Hyderabad and Kolkata behind Gurgaon and Mumbai. The six cities, which are witnessing an influx of IT/ ITeS employees, also provide residential units at affordable prices. However, infrastructure continues to remain a concern across most of these cities as it is unable to keep pace with the growth in population. With the exception of Bangalore, oversupply will be a concern in the short term due to large number of projects launched over the past 3-4 quarters. Read More »
Assocham Asks Govt to Withdraw Service Tax on Real Estate Sector | March 19, 2010
Industry body Assocham has asked the government to roll back the service tax proposed on real estate developers at the time of construction, as it would increase the tax burden on home buyers and impact the recovery of the sector. The government, in the Budget, said that real estate complexes will attract service tax, unless the entire consideration for the property is paid after the construction is complete.In its post Budget memorandum to the Finance Ministry, Assocham had said that the real estate sector was gradually returning to normalcy and imposition of service tax on immovable property would increase the cost of housing by four per cent. “In addition, it would also make the entire housing facility costlier to end-consumer and will be contrary to government’s aim of providing affordable housing,” it said.
Big developers Partner with local Developers to Complete projects Quickly
Hyderabad-based PBEL Property Development (India) Ltd has a new strategy to break into unfamiliar markets: partner with local developers to complete projects quickly. The realty firm wants to divide its 42 acres on Old Mahabalipuram Road off Chennai into four or five portions, each of which will be handed over to local developers for building residential apartments. “We don’t know much about the Chennai market and think it’s a good idea to bring in people who have the knowledge,” said Anand Reddy, director of PBEL Property, which has a project pipeline mostly in southern India. “Of course, we will keep a portion of the land which we’ll develop ourselves.”
A number of large developers are similarly forming joint ventures (JVs) or special purpose vehicles with smaller, local developers for specific projects on a revenue-sharing model. “We will see more developers getting into such JVs depending on what the local partner brings to the table,” said a senior research analyst at First Global Securities Ltd, who didn’t want to be named. “It could be land, local domain knowledge or even good building capacity.” Mumbai-based developer Sunil Mantri Realty Ltd, for instance, prefers local partners with the potential to speed up projects by procuring building approvals and helping in the conversion of land status quickly—often, the most time-consuming aspects of development.
A number of large developers are similarly forming joint ventures (JVs) or special purpose vehicles with smaller, local developers for specific projects on a revenue-sharing model. “We will see more developers getting into such JVs depending on what the local partner brings to the table,” said a senior research analyst at First Global Securities Ltd, who didn’t want to be named. “It could be land, local domain knowledge or even good building capacity.” Mumbai-based developer Sunil Mantri Realty Ltd, for instance, prefers local partners with the potential to speed up projects by procuring building approvals and helping in the conversion of land status quickly—often, the most time-consuming aspects of development.
MUMBAI BUILDERS FUCUSING ON LUXURY FLATS TARGETING N.R.I.COSTUMERS
Mumbai developers seem to have given up on housing for the middle-class. If you thought the realty revival in the city would come through middle-level affordable housing, you cannot be more off the mark. Most new launches are looking at the Rs1-crore residential houses project.
Take Kalpataru developers — it is building a 750-unit project — Kalpataru Aura — in Ghatkopar. The project launched a couple of months ago has properties in the price range of Rsl.25 crore to Rsl.50 crore. Its Malad project, Kalpataru Pinnacle, will have 80 exclusive apartments, each priced at around Rs3 crore. Lodha Developers has launched a 42-storey apartment building, Lodha Imperia, at Bhandup, with flat prices inching towards the Rs1-crore mark. The target audience of these builders is apparently NRIs from Europe and the US.
Take Kalpataru developers — it is building a 750-unit project — Kalpataru Aura — in Ghatkopar. The project launched a couple of months ago has properties in the price range of Rsl.25 crore to Rsl.50 crore. Its Malad project, Kalpataru Pinnacle, will have 80 exclusive apartments, each priced at around Rs3 crore. Lodha Developers has launched a 42-storey apartment building, Lodha Imperia, at Bhandup, with flat prices inching towards the Rs1-crore mark. The target audience of these builders is apparently NRIs from Europe and the US.
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