January 2010

Pune Witnesses Return of Commercial Real Estate

by Paul Joseph January 31, 2010

A recent research conducted by consulting firms in the realty sector have shown that the return of the IT sector and IT-enabled services and an overall positive perception about economic recovery has had a benign impact on the city’s commercial real estate sector, including the retail space. The survey adds that that in spite of the lift in demand for office and other commercial spaces, the lease rentals have remained stable, helping occupiers plan their acquisition better. According to Jones Lang Le Salle Meghraj, leasing activity in the entire Asia-Pacific has gained momentum since the last quarter, as larger emerging markets such as India, China and Brazil are expected to recover from the downturn faster than the rest of the world. The comeback is, predictably, led by India’s IT sector, with many leading firms such as TCS wanting to hire people in large numbers. Talking to TOI, Mohammed Aslam, head of Jones Lang Le Salle Meghraj in Pune, said, “IT/ITeS sector has been a major occupier of office space in Pune. Over 80 per cent of office space absorption has been by IT, BPO and other knowledge-driven industries. About 10 million sq.ft. of commercial office space supply are under various stages of conception and construction, and are likely to be delivered over the next two years.” According to Cushman & Wakefield’s Pune Market Report for the last quarter 2009, the city is witnessing a marginal rise in absorption of commercial office space. The slower absorption in the earlier quarters has however resulted in increased availability and pressure on lease rentals, the report said. “With renewed interest from prospective tenants, rental values are expected to stabilise across most micro markets in the short-term,” the report said, adding that rentals will remain weak in the central business districts due to reduced demand and high vacancy levels. Satish Magar, president of Confederation of Real Estate Developers’ Associations of India (Credai), Pune, said, “As IT and ITeS players have regained confidence and hit the hiring trail again, the demand for office space has gone up. We, however, don’t expect this to mean that the rentals will rise. There is enough supply and choice available across the city and peripheral locations.” Developers have learnt their lessons from last year’s downturn and are bringing in additional stock very cautiously, Magar said, indicating that the lease rentals won’t reduce sharply due to oversupply either. The cascading effect of resumption of activity for office spaces has boosted the mood in the retail space as well. In Pune, retail transactions have picked up noticeably following a marked upsurge in shopper sentiments and a generalised correction in retail real estate rentals, Aslam said. He added that properties are more viable for retailers, and the current scenario is now considered far more amenable to their bottom-lines than it was before. “Moreover, an increasing number of retail landlords in Pune’s malls and high street locations have opened up to the minimum guarantee and revenue sharing models. The general stance now is that if a retailer is making money, landlords are willing to offer reductions on rentals if the retailer is willing to sharing his topline.” Though value retail rules the roost in a budget-conscious city like Pune, there is a surprisingly fast revival in terms of premium brands, and transactions for retail spaces in advantageous locations in malls and high streets are picking up, he added. Financial rating firm Fitch Ratings has also said that it expects greater stability in the ratings of Indian retailers in 2010, given improving economic and consumer sentiment, a scale-back in expansion, and improving margins. Fitch noted that sales across all formats have started to improve, stating that “Value retailers” have led the recovery trend, followed by department stores. Fitch notes that the recovery appears sharper for department stores, although this is partly because department stores faced a sharper decline during the downturn. Fitch expects that both “value” and “lifestyle” retailers will continue to report better performance in 2010.

Tagged as: across-the-city, brazil, china, city, india, indian, real estate, report

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Omaxe Ltd. Q3 cons net profit at Rs284.6mn

by Paul Joseph January 30, 2010

Omaxe Ltd., a premier real estate development company in India today reported Consolidated Net Sales of Rs. 280.20 crore for the quarter ended December 31st 2009 as compared to Rs. 1.8bn for the quarter ended December 31st 2008, registering a growth of 55%. Consolidated Net Profit for the quarter stood at Rs. 284.6mn, increased by 383% as compared to Rs. 58.8mn posted in the quarter ended December 31st 2008. Earnings per share (EPS) for the quarter stood at Rs. 1.64 as compared to Rs. 0.34 in the quarter ended December 31st 2008. The company registered growth of 25% in its Consolidated Net Sales of Rs. 2.80bn for the quarter ended December 31st 2009 as compared to Rs. 2.23bn for the quarter ended September 30th 2009. Consolidated Net Profit increased by 22% as compared to Rs. 23.31 crore posted in the quarter ended September 30th 2009. Earnings per share (EPS) for the quarter stood at Rs. 1.64 as compared to Rs.1.34 in the quarter ended September 30th 2009. For the nine months ended December 31st, 2009 Consolidated Net sales stood at Rs. 6.23bn with Consolidated PAT of Rs. 674.2mn and EPS stood at Rs. 3.88.The operating margin for the nine months ended December 31st, 2009 stood at 34.65% as against 32.06% in the corresponding nine months period of previous year. Rohtas Goel Chairman & Managing Director, Omaxe Limited said, “Demand has further improved and residential sales have picked up during the third quarter. Keeping in view the resurgent demand we are planning to launch various residential projects in Allahabad, Indore and Chandigarh. Our effort will also be to expedite execution and deliveries of scheduled residential projects. Going forward we expect the scenario to improve further.”

Tagged as: india, quarter, real estate developers, rohtas-goel, sales

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Home, car, personal loan rates sure to rise

by Paul Joseph January 29, 2010

Home, car and personal loans are now certain to be more expensive with the Reserve Bank of India , under pressure to combat rising inflation, on Friday raising the mandatory cash reserves of banks to suck over Rs 36,000 crore (Rs 360 billion) out of the system. Bankers said that both lending and deposit rates are likely to go up by at least 1 per cent as a fall out of RBI announcing a hike in CRR. With the RBI deciding that banks now need to increase the amount of cash they have to keep with the central bank (the cash reserves), the problem is that banks will not earn any interest on this amount. So, banks will be left with little option but to hike interest rates to make up for that loss of interest they would normally have earned had CRR been lower. And even though RBI may have raised CRR by 0.75 per cent, the interest you may have to pay when you take a home, car or personal loan is likely to be much more than that. Floating rate home loans Floating rate home loan borrowers may have to brace up for another round of hike in their interest commitments. The CRR hike could lead to a general rise in interest rates in the economy, at times leading to resetting of equated monthly installments on flexible home and personal loans, say experts. Effect on EMIs Repayments may increase by over Rs 3.5-4 lakh (Rs 350,000-400,000) over a 20-year period on a Rs 20 lakh home loan, if the country’s banks hike interest rates by up to 1 per cent following the tight monetary measures announced by the Reserve Bank of India on Friday. Consumers may have to fork out up to Rs 1,500 more every month for a home loan of Rs 20 lakh, as bankers say that interest rates could go up by 0.75-1 per cent after RBI’s hawkish policy aimed at containing inflation. Personal loans The interest rates on personal loans too are likely to rise, for it is expected that banks will pass on the burden to the consumers. Car loans With RBI hiking rates, your dream car may have become more expensive. Car loan lenders have jacked up interest rates on loans by anything between 75 to 100 basis points, and as a double whammy to you, even car manufacturers are increasing prices due to heavy input costs. Following the announcement of the RBI credit policy, the market is trading volatile and has deepened its losses further. Sensex is trading at 16040, down 266 points from its previous close, and Nifty is at 4783, down 83 points. CNX Midcap index is down 2% and BSE Smallcap index is down 1.9%. The market breadth is negative with advances at 182 against declines of 1086 on the NSE. Source:http://business.rediff.com/report/2010/jan/29/budget-2010-home-car-personal-loan-rates-sure-to-rise.htm Filed under: Home loans Tagged: home loan , Home loan interest rates

Tagged as: country, home-loan, home-loans, india, reserve, reserve-bank

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Alila Hotels plans expansion in India

by Paul Joseph January 29, 2010

NEW DELHI: Singapore-based hospitality firm Alila Hotels and Resorts on Thursday said it will expand its portfolio in India to four properties by end of 2011 and is scouting for local partners to open more hotels. The company, which ventured into the Indian market last December with the first hotel in Goa, also said that India, along with China, will be the main focus markets for its global expansion. “After the property in Goa, we are now going to open another hotel in Bangalore during the last quarter of this year. Two more properties are signed and under construction in Kerala and will be operational by 2011,” Alila Diwa Goa’s General Manager, Mr S aji Joseph told PTI. He said the hotel in Goa, developed by shipping firm Parekh Group, has 114 rooms currently, with another 35 to be added by end of 2010. The Bangalore hotel will have an inventory of 116 rooms. Source:http://www.thehindubusinessline.com/blnus/02281860.htm Filed under: Builders/ Developers , Goa , Hotels/ resorts , New projects Tagged: Alila Hotels and Resorts , Goa

Tagged as: builders/ developers, general-manager, hotels, hotels/ resorts

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Rush of integrated townships into Pune

by Paul Joseph January 29, 2010

The Pune’s boundaries are growing in all directions. Adding another totally new dimension to the city is the rush of integrated townships into Pune. The city is ready to reap a rich harvest for those having the capacity to invest and develop large tracts of land and put in the physical and social infrastructure. This is what the new Special Township Policy Act of the Maharashtra government stipulates. A minimum area of 100 acre, investment in public infrastructure, such as roads, water, sewage-an integrated approach to development of townships to decongest municipal corporation areas and encourage new settlements in the periphery though higher FSI (floor space index) than what is normally allowed in the municipal limits. City Development Corporation’s Amanora Park Town took off first with its 400-acre Rs 10,000-crore township, followed by Paranjape Schemes Construction’s 138-acre Rs 3,200 crore Blue Ridge and Megapolis, a Rs 1,500-crore 150-acre project by Pegasus Properties Pvt Ltd, a joint venture between Kumar Properties and the Avinash Bhosale Group. Lalit Kumar Jain, promoter of Kumar Builders, said his company had received clearance from the state government for three townships in Pune. The first one coming up at Hinjewadi phase II will be spread over 124 acre. Another Kumar township coming up spreads across 120 acre. The third township of 110 acre is slated to come up in Kharadi. The recently listed Kolte Patil Developers has a 450-acre township at Hinjewadi with ICICI Ventures investing in this venture with a 50% share in this project. According to state government officials, there are a total of 34 projects that applied for township status and are under consideration. Almost all these project are being designed by overseas architects, have high rises and well-designed and well-defined spaces for living, recreation, commercial space and promise of a much better standard of living. “The Megapolis will include a total of 58 high-rises with over 5,800 apartments. Our landscaping will be the USP of our project,” says Manish Jain, joint MD, Kumar Properties. Amanora is talking of setting up its own railway station, apart from creating a totally intelligent city with use of hi-tech in the entire township of 16,000 apartments. All this is set to completely change Pune’s landscape and would mean a new lifestyle for lakhs of people who can afford to buy these living spaces. Pune is expected to add an estimated 16million sq ft of commercial space over the next five years. IT/ITES sector would be the major growth driver and would account for over 80 per cent of this supply. These are the findings of KPMG in their report, `Indian Real Estate- changing scenario’. The report also points out that based on this commercial real estate supply, it is estimated that new employment for about 1,70,000 would be created. It also noted that an increase in employment would give way for a three-fold derived demand for residential space, approximately 48 million sq ft. Jai Mavani, Executive Director, Head Real Estate, KPMG India Pvt. Ltd., noted that in the residential property, there is the emergence of a new trend of integrated township promoting the walk-to-work culture. He noted that the residential property continues to remain stable both in terms of rentals and capital value. He noted that Wanowrie is emerging as a new mid-range residential location due to factors such as accessibility to commercial hubs and easy access to social amentities. Areas such as Koregaon Park, Kalyani Nagar continue to be the most expensive location. Within a township you have all your needs taken care of, like schools are close by, banking facilities, shopping markets, recreational facilities and hospitals too are in the vicinity. There is also very less pollution, the working environment is good and the most important thing that there is safety and security. “Nanded City is a 700-acre township situated on the Pune-Sinhagad Road, to be built at a cost of Rs 9-10,000 crores. The township will boast an animation and gaming park spread over 40 acres. It will consist of four zones – a commercial district, residential district, amenity district and destination center,” said Satish Magar , MD Magarpatta. “This township too has been conceptualized on the lines of Magarpatta and 250 families with 1,000 beneficiaries have been made stakeholders in the township in lieu of their land. Our company will manage the township and we have put in together all the things that we experimented in Magarpatta. This time we are also concentrating on the other side of IT, and giving more importance to Gaming and animation industry about 40 acres since the entire industry is going to go very far with this stream and India is becoming a big hub for gaming and animation,” says Magar. Nanded city will also boast of commercial office space, shops, malls and a multiplex. The residential district will have one, two, three and four-bedroom houses, studio apartments, villas, penthouses, pre-designed bungalows and event lawns. “The houses will be affordable for middle-class citizens. Keeping in mind the shortage of new 1 BHK apartments in the city, we will be constructing between 4,500 and 5,000 such apartments. The first phase will look at one, two and three bhk while commercial district will be launched in December.” The amenity district in Nanded City will house educational institutes, hotels, gymnasiums, a recreation and a sports centre, food-courts and other lifestyle facilities. The destination district will cater to the daily needs of the people residing in the township and will consist of a hospital, petrol pump and service station, transit terminus and the data storage centre for township management. Another feature that Nanded city boasts of is that it will have a river frontage of five kilometres. The riversides will be scientifically developed for recreational purposes, which the people can use as a retreat. Permission will be taken from the irrigation department to maintain the riverbed. Flood line of one-lakh cusecs of water will be maintained instead of the mandatory sixty five thousand cusecs. 140 acres will be used for recreational purposes. Natural streams, which flow through the land earmarked for the project, will be developed as eco-parks. The project will have ample green cover as 30 per cent area is reserved for maintaining greenery and tree plantation. “There are 5,500 trees already on the land on which Nanded City will be built. An additional 28,000 trees will be planted as the township shapes up,” Magar said. Even HCC Real Estate, the 100 per cent subsidiary of Hindustan Construction Co Ltd has plans to get into a township project in Pune. The company is in the process of acquiring land and is planning a 500-acre township. It has indicated to analysts that it is in the process of acquiring 230 acre to create five million sq ft of development. Kolte Patil Developers has a 450-acre township at Hinjewadi with ICICI Ventures investing in this venture with a 50 per cent share in this project. Source:http://economictimes.indiatimes.com/markets/real-estate/realty-trends/Rush-of-integrated-townships-into-Pune/articleshow/5511189.cms Filed under: Builders/ Developers , New projects , Pune Tagged: integrated townships , Kolte Patil Developers , KPMG India Pvt. Ltd. , pune

Tagged as: builders/ developers, city, india, residential, time, township

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MHADA steps in to fulfill dreams of poor

by Paul Joseph January 29, 2010

The Maharashtra Housing and Area Development Authority (Mhada) is selling 3,394 homes in central and suburban Mumbai in areas such as Sion and Malad. At least 70 per cent of these are reserved for the poor. The sale of the forms ended yesterday. Many of the homes in this year’s sale are one- or two-bedroom apartments or just a room with a kitchen, priced up to Rs10 lakh. A small number of homes, set aside for higher-income buyers, are priced at Rs40-45 lakh each. The buyers are selected through a lottery. “By the kind of reaction it has got, there would be about 80-100 families applying for each home on sale,” said Gautam Chatterjee, Vice-President, Mhada. Source:http://www.pwindia.in/News/Real_Estate/10-01-28/MHADA_steps_in_to_fulfill_dreams_of_poor.aspx Filed under: Builders/ Developers , Mumbai , New projects Tagged: Mhada , Mumbai , New projects

Tagged as: builders/ developers, developers, homes, maharashtra, mumbai, new-projects

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Convention Hotels India to launch its first property by Quarter One of 2011 in North Goa

by Paul Joseph January 29, 2010

Convention Hotels India (CHI) plans to foray into the hospitality segment by launching its first property at Calangute in North Goa by Quarter One of 2011. The company plans to operate in ‘built out’ model in the hospitality space. For the upcoming property CHI has tied up with Holiday Inn for management of the hotel, which will have a room inventory of 136. CHI also has properties under construction in Goa, Bengaluru and Coimbatore. The approximate amount of investment for these projects as of now is Rs 480 crore, and the company has outlined a total investment of Rs 800 crore for these projects. Hyatt Place Hotel with 220 rooms at Outer Ring Road in Bengaluru will be operational by Quarter Four of 2011; Holiday Inn at Panjim in Goa with 200 keys will be operational by Quarter One of 2012, as well as the Hilton Garden Inn at Coimbatore with 200 keys will be operational by Quarter One of 2012. Depending upon the location and market these properties will cater to MICE, business and leisure clientele. Source:http://www.hospitalitybizindia.com/detailNews.aspx?aid=7306&sid=1 Filed under: Builders/ Developers , Goa , Hotels/ resorts , New projects Tagged: Convention Hotels India , Goa , hotel , Hotel in Goa

Tagged as: builders/ developers, city-trends, hotels, hotels/ resorts, north, quarter, the-hospitality

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Khivraj Estates to promote Rs 4 lakh apartment

by Paul Joseph January 29, 2010

Owning a dream home for many a poor Chennaiite could soon become a reality with a leading builder, Khivraj Estates, all set to promote a low-cost residential project at Thiruvottriyur, 10 km from the city centre, at Rs 4 lakh per 269 sq ft studio apartment. The project will come up in an area where a 650 sq ft apartment costs at least Rs 15 lakh at present. Khivraj MD Ajit Chordia says he embarked on the project drawing inspiration from Tata’s Nano Homes and Patrimonio Hoy, a cooperative initiative of Cemex, world’s leading building material supplier and the third largest cement manufacturer, started in Mexico in 1998 to provide shelter to 20 million homeless people in that country. In the 11 years of its existence, Patrimonio Hoy has spread to more than 100 centres in Colombia, Costa Rica, Nicaragua and Venezuela providing quality shelters to more than 2.08 lakh families. Chordia has acquired a 1.1 acre plot close to Thiruvottriyur railway station, where he plans to promote 100 such dwelling units in the first phase. The bigger apartments, each measuring 485 sq ft, would cost Rs 8.7 lakh though. “Based on its success, we propose to expand it to another four acres abutting the first phase,” said Chordia. Chordia has engaged a team to bring down the cost of construction. “As of now, the overall cost works out to Rs 1,800 per sq ft. But we will bring it down to Rs 1,500 per sq ft at least for our own employees, who buy from us,” said Chordia. Hoping that at least 10 per cent of them would opt for the project, Chordia added, “We know about their skills and many of them can do works like interior painting and electrical wiring. By adopting high levels of standardisation and using pre-fabricated material, the cost can be reduced further.” If the state and central governments could extend relief on infrastructure and metrowater charges, stamp duty and sales tax for such low-cost housing projects, the benefits would reach a wider section of the bottom of the pyramid, noted Chordia. Source:http://www.realtyplusmag.com/rpnewsletter/fullstory.asp?news_id=7060&cat_id=1 Filed under: Builders/ Developers , Chennai , New projects Tagged: Chennai , Khivraj Estates , Studio Apartment

Tagged as: builders/ developers, chennai, city, homes, mexico, new-projects

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Unity Infraprojects to develop two housing projects for Rs 500 crore

by Paul Joseph January 29, 2010

Construction firm Unity Infraprojects will develop two mixed-use housing projects aimed at middle-to-high income segments in Kolkata and Bangalore with an investment of around Rs 500 crore. “We have already acquired 37 acres of land in these two cities. Work on the projects will kick off next quarter,” said Yogen Lal, chief operating officer, Unity Infraprojects. The total cost of developing the projects would be around Rs 500 crore, including Rs 90 crore for acquisition of land. Unity Infraprojects has two wholly-owned subsidiaries — Unity Realty & Developers and Unity Infrastructure Assets. While the former is into real estate development, in the later the company takes up cash contracts on Build-Operate-Transfer (BOT) basis in various segments of the infrastructure sector. Although the promoters of the company had earlier did some residential projects, none is comparable with the planned two projects in Kolkata and Bangalore, in terms of size. Meanwhile, Lal said that Unity Infraprojects is on track to achieve its targetted Rs 4,500 crore orderbook before the end of the current fiscal. “Our orderbook stood at Rs 4,040 crore as on October 31, 2009. We are also the L1 bidder for around Rs 500 crore worth of projects and as such, very much on track to achieve the targetted orderbook,” said Lal. Source:http://www.realtyplusmag.com/rpnewsletter/fullstory.asp?news_id=7058&cat_id=1 Filed under: Bangalore , Builders/ Developers , New projects Tagged: Bangalore , Kolkata , Unity Infraproject

Tagged as: bangalore, bot, builders/ developers, city-trends, kolkata

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NRI home loans on the upswing

by Paul Joseph January 29, 2010

Most Non-Resident Indians think a lot before investing in property in India and most of the time put off the plan due to the effort, the research and the planning involved. In some instances, it is put off as they do not have enough funds. For such individuals there is always the NRI home loan. The Reserve Bank of India [ Get Quote ] defines NRI as ‘an Indian citizen who holds a valid Indian passport and who stays abroad for employment or for carrying on business or vocation outside India or stays abroad under circumstances indicating an intention for an uncertain duration of stay abroad is a NRI’. Purpose of the NRI home loan The NRI loans are made available for the following purposes: * Self-construction of a property on a plot of land. * Finance the purchase of a plot of land allotted by a society/development authority. * Renovate/improve an existing property in India. * Purchase of a house either under construction or on a resale. Non-Resident Indians are also permitted to purchase an existing house or flat. RBI has not prohibited banks from providing financing to NRIs for the purchase of a second house, but the loan on the house is for the self-occupation of the NRI upon their return to India. Loans are also offered to NRIs against NRE (Non-Resident External) deposits. These loans can be repaid out of NRE funds but the interest would be charged at a commercial rate. Loans to NRIs are also provided against FCNR (Foreign Currency Non-Resident) deposits. Difference between a normal and NRI Loan NRI home loans can be availed by any NRI with as much ease and convince as any Resident Indian would avail a home loan. However, some difference exists between the two kinds of loans, in terms of tenure, documents, repayment, etc. Interest rate is little costlier for NRIs than Indian residents, it is 0.25 per cent to 0.50 per cent more for NRIs. The NRI gets the only 85 per cent cost of the property as a loan amount. The tenure of loan is also short: it ranges from 7 years to 15 years. The size of the loan depends upon the borrower’s repayment capacity. Up to 36 times of the gross monthly earnings of the applicant may be issued as loan. However, there is a maximum limit. Calculation of eligibility is same as that of Indians living in the country. The repayment can be done in equated monthly instalments (EMIs) from the Non-Resident Ordinary (NRO) account or the NRE account. For security, most banks insist that the first mortgage of the property should be in their name. If the property is under construction then adequate additional security is required such as guarantee of third party (either resident or another NRI). Tax benefits NRIs cannot claim tax benefits on home loans in India as they have to pay tax in the nation where they work and earn. However, they need to file tax returns to become eligible for home loans. But if they pay tax in India for income earned in India, they can claim tax rebate for the home loan. The current scenario An estimated 25 million NRIs living in 130 countries have remitted $52 billion so far this year (December 2009). In fact India topped the list of countries in remittance flow followed by China and Mexico, according to World Bank report on Migration and Development Brief. The impact of global slowdown, job losses and unviable job offers has necessitated a section of NRIs to return to Indian shores. According to housing finance companies and banks disbursing home loans to NRIs/PIOs in Dubai [ Images ], there has been a sudden surge in demand for residential property across Indian cities and particularly for Tier-II cities in the wake of the economic slowdown in the emirate. Southern cities, particularly Bengaluru [ Images ], Chennai and Hyderabad, are driving the demand though minimal level demand exists for other cities as well. Most of the NRIs keen to invest in real estate back home are looking for home loans as they are unable to get loans locally due to the current tight liquidity situation across the United States. What experts say? Experts agree that despite turbulence in mature markets, the ‘emotional appeal’ of buying a property in India may be stronger now. However, this in turn has created a price increase in the last six months. Popular property portals claim that the number of queries from NRIs has surged nearly 15-20 per cent over the last two-three months. However, just how many of these ‘queries’ translate into actual sales remains to be seen, say people behind the business. The focus on NRIs for these portals is stronger now as many are looking to come back to India apart from those who wish to invest in properties. Another factor that seems to favour NRIs is the foreign direct investment policy that permits up to 100% FDI from foreign/NRI investors under the automatic route has boosted NRI confidence. Banks have attractive NRI housing schemes to accommodate the housing needs of NRIs. From the stables of housing finance companies, NRI housing finance plans with suitable repayment options are available. Easy interest rates on housing finance and the improved lifestyle that developers have created have enabled NRIs to acquire property not only for investment, but also for personal use. Access to NRI loans: At the door step The response to the real estate market has been so encouraging from the overseas community that it has prompted housing finance companies to set up branches in countries where there is a high NRI concentration, as in the case of ICICI Bank [ Get Quote ]. The bank has representative offices in Dubai, New York, Bahrain, Singapore and the United Kingdom to tap potential property investors there. ICICI Bank, Sundaram Home Finance Limited, LIC Housing Finance [ Get Quote ], HDFC [ Get Quote ], CanFin Homes, Citibank and a host of other scheduled banks are vying for lending opportunities to NRIs. However, the final decision on whether the time is right to buy a house, whether to use one’s own funds or to take a loan, whether to go for an independent house or an apartment, and which home loan provider to use must be made by the NRI himself/herself after careful analysis. What this means for the realty market Builders are looking to make up for the huge losses in the past year or so. With growing NRI interest in Indian properties, reports suggest that the realty prices have rebounded to 2007-2008 levels, which however cannot be good news for people scouting for homes with toned down prices. This is again an example of how a reaction in one corner of the globe can affect another. Sometime back the same scenario happened with rentals, which shot up with a lot of NRIs returning home to take up jobs in India. Source:http://business.rediff.com/report/2010/jan/27/perfin-nri-home-loans-on-the-upswing.htm Filed under: Home loans , NRI Center Tagged: home loan , NRI Home Loan

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