Real Estate on the Donfall in 2007

Jack · 03-12-2007

Real Estate Investments are likely to fall in the year of 2007 as compared to the previous 2 years. This is predicted because of the 12.36% tax on commercial rentals. According to CNBC Report:

Quote:

Private equity players investing in the real estate market may not be a happy lot, ith abundant commercial and residential supply likely to hit the market in 2007, as returns on real estate investments are likely to fall, reports CNBC-TV18.

The lucrative real estate market may not remain as profitable for private equity investors or developers as it has been in the past to years. The higher dividend distribution tax and the 12.36% service tax on commercial rents imposed by the Budget ill eat into returns of investors. This comes on top of surging land prices, hich have sharply reduced the margins of developers.

"There is too much liquidity foreign funds chasing the limited land supply so automatically the prices of land are very high and as a result of high land prices returns or margins of developers, investors, private equity players have fallen drastically" says Subodh Runal, Managing Director, Runal Group.

On the other hand a sle of developed projects are likely to flood the market this year. Realty consultants Cushman and akefield projects that business hubs like Bangalore ill add 16 million sq feet of developed office space, Chennai ill another 12 million sq feet, Delhi and the NCR region ill see 10.5 million square feet of ne office space and the commercial capital Mumbai ill see 9.1 million square feet entering the market. Though nearly 40% of this office space is estimated to have been already pre leased to tenant, developers expect prices to fall ith so much supply entering the market.

Rupee returns is expected to be 15 to 20%, hich is lot more than hat is expected from markets like Australia or Europe. So people ill get returns of 15 to 20% not euphoric returns of 30% about hich e have talked earlier,” adds Pranay Vakil, Chairman, Knight Frank

The other factors that are likely to impact investor returns are raising construction costs for developers and also higher interest rates for genuine homebuyers, hich may dampen buying sentiment. These ill also contribute to the correction in real estate prices

Experts say that though private equity investors are unlikely to flee the Indian real estate market they ill certainly re-examine their investments in India. Nearly USD 17 billion is aiting to enter the market, but all of it may not come in.

So Can anybody tell me at this point, investments in the Real Estate ill be Beneficial or Not? ill they payback in the same ay this year too as the previous to years?

Hyderabad International A · 03-14-2007

e are developing mega tonship ith DTCP approved layout, like upcoming international airport, Textile Park, Fab City, Golf Course, etc plus educational institutions like N G Ranga Agricultural University and engineering colleges, gives it an added lInvestment Hot Spots near Ne International Airport, Hyderabad
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Exclusive Ventures, hich specializes in research and analysis of emerging real estate opportunities, announced release of three ne projects, close to the Ne International Airport at Hyderabad.

The projects ere brought for international booking prior to the release of Semi- Conductor Policy by the Union Govt. hich is expected to drive US$10 Billion investment into the vicinity of the Ne Airport at Shamshabad. In a recent analysis, Mr. Pramod Kiron, CEO of Exclusive Ventures, averred. “For the layman, otherise busy ith his on ork, its impossible to visualize the future, along the stretch of land from Airport to Thummalur. But if you sit don and look at the upcoming investments and the resultant employment generation possibilities, its easy to figure out here e ould be, after 3 to 4 years”

Apart from the Ne International Airport and its ancillary facilities, the locality ould brim ith high profile projects each pulling in, thousands of employees. The major projects are Fabcity, Hardare Park, SEZs by Stargaze, JT Holding, Indu Tech, Infosys, ipro, TCS, Brahmani Info. Fabcity ith US$ 3.6 Billion investment by Semindia / NTSI ould take the lead in poerful groth of the location, into a Tech City. The recent Semiconductor Policy may trigger installation of Foundries in India by leaders in this area, like Intel, STM, TI, TSMC. The 1200 Acres orld class industrial park for setting up Fab Units near Hyderabad Airport could attract many of these companies, due to the excellent infrastructure, dry hether and offer of lo cost poer and ater, by the State Govt.

“By 2015, A million jobseekers are expected to move into this area, creating a mega city of unimaginable proportions. The empty roads sides ould spring into vibrant commercial activity. The transformation ould be rapid and ould put in shade, the recent emergence of Hitec City at Hyderabad, in size and magnificence.”

“Exclusive Ventures is continually analyzing information on upcoming commercial and IT projects and Advisory Notes are prepared to help in lo cost, but absolutely safe investments. in this emerging location. The identification of HUDA / HADA Approved layout apart from the best DTCP layouts, in future hot spots should help our members from across the orld to make strategic early investments.”

Manoj Toshniwal · 12-11-2008

hich investment ill be beneficial right no ?

03-14-2007	#2
Hyderabad International A New Member Join Date: Mar 2007 Location: india Posts: 2	Right time no investments in real estate near International Airport Hyderabad....A.P e are developing mega tonship ith DTCP approved layout, like upcoming international airport, Textile Park, Fab City, Golf Course, etc plus educational institutions like N G Ranga Agricultural University and engineering colleges, gives it an added lInvestment Hot Spots near Ne International Airport, Hyderabad ________________________________________ Exclusive Ventures, hich specializes in research and analysis of emerging real estate opportunities, announced release of three ne projects, close to the Ne International Airport at Hyderabad. The projects ere brought for international booking prior to the release of Semi- Conductor Policy by the Union Govt. hich is expected to drive US$10 Billion investment into the vicinity of the Ne Airport at Shamshabad. In a recent analysis, Mr. Pramod Kiron, CEO of Exclusive Ventures, averred. “For the layman, otherise busy ith his on ork, its impossible to visualize the future, along the stretch of land from Airport to Thummalur. But if you sit don and look at the upcoming investments and the resultant employment generation possibilities, its easy to figure out here e ould be, after 3 to 4 years” Apart from the Ne International Airport and its ancillary facilities, the locality ould brim ith high profile projects each pulling in, thousands of employees. The major projects are Fabcity, Hardare Park, SEZs by Stargaze, JT Holding, Indu Tech, Infosys, ipro, TCS, Brahmani Info. Fabcity ith US$ 3.6 Billion investment by Semindia / NTSI ould take the lead in poerful groth of the location, into a Tech City. The recent Semiconductor Policy may trigger installation of Foundries in India by leaders in this area, like Intel, STM, TI, TSMC. The 1200 Acres orld class industrial park for setting up Fab Units near Hyderabad Airport could attract many of these companies, due to the excellent infrastructure, dry hether and offer of lo cost poer and ater, by the State Govt. “By 2015, A million jobseekers are expected to move into this area, creating a mega city of unimaginable proportions. The empty roads sides ould spring into vibrant commercial activity. The transformation ould be rapid and ould put in shade, the recent emergence of Hitec City at Hyderabad, in size and magnificence.” “Exclusive Ventures is continually analyzing information on upcoming commercial and IT projects and Advisory Notes are prepared to help in lo cost, but absolutely safe investments. in this emerging location. The identification of HUDA / HADA Approved layout apart from the best DTCP layouts, in future hot spots should help our members from across the orld to make strategic early investments.”

12-11-2008	#3
Manoj Toshniwal New Member Join Date: Jan 2008 Posts: 2	hich investment ill be beneficial right no ?