Archive for January 2007
Source Business Standard:
- Indian real estate market is expected grow from the current level of $14 billion to $102 billion in the next 10 years, according to Shyam Prasad Reddy, managing director and chief executive officer of Indu Projects Limited.
- Reddy said that reforms initiated by the government, favourable demographics, increasing purchasing power, emergence of customer friendly banks and housing finance companies would fuel the growth rate of the real estate sector in the country.
- Reddy said that the shortage of 19.4 million housing units, including 6.7 million units in urban India, and mushrooming of retail projects would provide a huge opportunity for domestic as well as global infrastructure players in the country.
- He, however, pointed out that Indian real estate industry was ailed by lack of transparency and credibility, an acute shortage of data and academic research and a lack of uniform laws and regulatory systems.
- Emphasised the need for more clarity and professionalism, particularly in the light of foreign funds and investors eyeing the Indian real estate market.
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Are 1 billion USD investments in Indian real estate on it’s way? Seems so, based on the news by Economic Times.
I reckon real estate investments in India is outgrowing the investment happening in the IT sector.
Boom period for builders, investors and real estate agents.
So if you have a more than 3 million INR to invest in real-estate, you fill find yourself with a host of options to choose from. Something similar to what the automobile sector is these days, if you have a million bucks (INR) to spend on a car, you will have loads of options very unlike what it is used to be 10-15+ years ago.
And for those who don’t have that kind of a money to invest in a property, things aren’t going to get any cheaper in the near future either. So better grab one today, or settle for something more expensive, small or remote tomorrow.
One of Australia’s biggest banks, the Commonwealth Bank, has used the latest version of Apple’s music player—the slimline Nano—to compare global currencies and purchasing power in 26 countries.
Along the lines of the Big Mac index launched 20 years ago by The Economist magazine, the survey prices the 2GB Nano in U.S. dollars and found Brazilians pay the most for an iPod, shelling out $327.71, well above second-placed India at $222.27.
Canada was the cheapest place to buy a Nano at $144.20, while Australia ranked 19th at $172.36, cheaper than Germany ($192.46), France ($205.80), South Korea ($176.17) and China where the machine is manufactured. The U.S. was fourth cheapest at $149.
Prices of iPod globally (sorted in descending order of price):
- Brazil $327.71
- India $222.27
- Sweden $213.03
- Denmark $208.25
- Belgium $205.81
- France $205.80
- Finland $205.80
- Ireland $205.79
- UK $195.04
- Austria $192.86
- Netherlands $192.86
- Spain $192.86
- Italy $192.86
- Germany $192.46
- China $179.84
- South Korea $176.17
- Switzerland $175.59
- New Zealand $172.53
- Australia $172.36
- Taiwan $164.88
- Singapore $161.25
- Mexico $154.46
- U.S. $149.00
- Japan $147.63
- Hong Kong $147.35
- Canada $144.20
Why is China ranked 15th? If iPods are made out China, shouldn’t they be priced lowest in China. If this is an Apple pricing policy, then I reckon it would really pay off being an iPod dealer or retailer in China. Don’t you think so! One would assume that things in Hong Kong will be very reasonably priced due to its proximity with China, but that is not true either for quite a few items. In fact same is the case in Japan for global electronic models. To many it is a shock to find out electronics (other than Cameras I believe) is expensive in Japan.
I believe digital cameras too are comparatively more expensive in India. Nice to know Hong Kong is the second best place to buy an iPod from :). So plan your trip accordingly guys, visit Hong Kong (unless Canada is closer 😉 ) and take a trip to the Peak.
Wonder what the price of an iPod would be in places like the Gulf. Dubai and Kuwait have always been famous for reasonably priced electronics, in fact many more things in that matter.
Source Times of India:
- In the single largest FDI in the country’s booming real estate sector, Morgan Stanley has invested $152 million (Rs 675 crore) in a city-based firm, Oberoi Construction.
- The world’s largest private equity realty fund, which manages $100 billion (one-seventh of India’s GDP), will in return get a 10% stake in the three-decade-old unlisted company which has a land bank of 15 million sq/ft, most of it in western suburbs of the city. The deal has valued Oberoi at Rs 6,750 crore.
- Anand B Madduri, an ED at Morgan Stanley, said the three drivers that attracted the fund were the property developer’s execution of projects, entrepreneurial vision of promoter and delivering housing and commercial establishments to a community.
- Oberoi said the money can be leveraged to raise around Rs 2,500 crore of debt for speedy execution of projects that will give him a cash flow of $1b in 3-4 years.
- The scramble for buying assets was evident recently when three prominent real estate companies-Hirandani Constructions, Rahejas and Unitech raised close to $2.3 bilion from the London market.
- Last year, US’s Farallon Investments along with LN Mittal had invested close to Rs 1,429 crore in four real estate companies of IndianBulls, a financial services firm which diversified into property development.
- Ten Indian real estate companies have raised money by selling shares to the public, which eagerly lapped up the issues.
- Industry sources say around 150 foreign PE have lined up nearly $10 billion to invest in real estate in the next two years as government relaxes norms to ramp up the country’s inadequate infrastructure. Indian and multinational institutions such as J P Morgan, Falcon, 3i, Blackstone, Carlyle, Kotak Real Estate, IL&FS, ICICI and HDFC are some of them who are waiting to storm the sector.
- ICICI Realty fund is learnt to be raising $1 billion and Kotak Mahindra $500 million.
Seems like more investment is on its way. This will lead to price hikes and beyond reach to even think of buying a house for a normal person. Are these price hikes justified? Is this organic growth or hyped? Is it in any way benefiting the common man of India?