Kaishu

In my opinion, it won't. The margins will come down on onsite billing. However, in IT, the margins on very high when the work is delivered fromoffshore and typically companies push for 70:30 (offshore : onsite) ratio. Some companies go to the extent of 80:20.

Also when you look at the figures in absolute terms, we are talking about 2000$ in select categories of H1 and L1 visas. When you compare this with the billing that IT companies charge (60-120 USD varies from skill set and company brand name etc), it will have very minimal dent.

However, pure bodyshopping companies could take a hit.. Again..it is only 2000 USD..in over all scheme of things..

roop78

It will effect the number of H1 and L1 visas being processed by large IT companies. Large IT companies are the usual suspects since they process these US immigrant visas for almost any employee who meets the visa criteria irrespective of any immediate need for onsite work. Thus creating a large bench of visa ready employees for future requirements. This was also a very good game plan to fight employee attrition for these companies as they can retain these employees for long time promising a pipeline of onsite work opportunities.

Now with visa fee hike, large IT companies will stop bulk processing US immigrant visas, which means only a few visas will be processed based on immediate and absolute onsite requirement for which another visa ready employee is not available.

This will actually have a big benefit to offshore India based employees. Since attrition will further rise among offshore India based employees thus increasing the salaries at offshore.

roop78

Another important issue to be discussed is the salary hike given to MPs in parliament.

Currently an MP actually gets a take home of Rs 45 Lakhs per annum (adding free benefits provided like business class air travel, first class ac train travel, government bungalows at posh locations etc). With the increase in salaries, according to Times of India MPs take home will increase to 67 Lakhs per annum. In an IT employee's language this is MP's CTC.

Now when MPs get a hike, Bureaucrats & other Government Employees will not keep quiet, they will also soon strike asking for hikes.

Finally it will come down to private sector employees (IT employees ) who will also strike asking for hikes.

Thanks to Laloo and Mulayam Singh Yadavs, hope whole India gets good salary hikes.

REUser

http://www.equitymaster.com/detail.a...4/2010&story=4

The FDI in India's real estate and housing market jumped almost 80 times or 8000% between 2005 and 2010. In FY05, the FDI in this sector was a mere Rs 1.7 bn. This has however increased exponentially to Rs 136 bn in FY10. In the past 10 years, cumulative FDI inflows into this sector totaled Rs 381 bn or US $8.5 bn. This makes it fourth on the list of FDI inflows in the past decade. What is surprising is that this sector did not even feature in the top ten list in the 15 year period post liberalisation from 1991-2006.

Metros are where the money is. According to a leading business daily, the largest number of building projects where FDI is in action is in our very own financial capital, Mumbai. Of the 1,614 projects in which foreign investors have put in cash since 2005, 422 were cleared by the RBI's Mumbai office, followed by 316 in Delhi. Other large cities including Bangalore with 225 projects, Hyderabad with 105 projects and Chennai with 68 projects, also received foreign capital.

In Mumbai over the past four years, according to data from Times Property, average real estate prices have shot up significantly. Cuffe Parade, Ghatkopar, Andheri (W), Vashi and Bandra (W) have seen hikes of 72%, 95%, 96%, 87% and 79% respectively. The largest FDI in the last five years however has been in the construction of a technology park at Bandra Kurla Complex (BKC) in Mumbai, totaling US$ 372 m. Rates of Bandra (E), where BKC is located have incidentally increased by 162% since August 2006.

But, due to the huge boom in the property market across the country, FDIs are not confined to metros and big cities. Since 2005, real estate projects have been approved by RBI offices in Bhopal, Kanpur, Kochi, Jaipur and Panaji, amongst others.

Offshore banking zone, Mauritius has contributed the maximum to FDI fund inflow to India, totaling 42% of total funds in the past decade.

With new iconic structures such as World One by Lodha Developers and the planned hill city Lavasa, by HCC coming up, India's property market is expected to see more money from foreign investors. Initial public offerings by the developers are also an easy exit route for the foreign investors to cash in on their investments.

For investors in real estate and home buyers, however, this may means paying a heavy premium. While buying a house to reside in may not be postponed, investments could certainly be more value driven.

sridharchennai

Hi REUser,

I ;ive in a upcoming city called coimbatore in Tamil Nadu. Even here I see lots of apartments that have either slowed down the speed of construction or have completed construction without any takers.

Same way there is mall called FUN CITY being developed by ZEE Group. After 2.5 years of construction (they haven't even constructed 50%) I hear that they are planning to sell the property and move out. Seems the companies are slowly getting the real situation.

Thanks,
Sridhar

Siddhu

Chennai alone Tamil Nadu ?

May be my plot (near Chennai) price may increase and my flat price also... But Chennai alone Tamil Nadu ??

Metro Rail - RS 14,000 Crores
Coovum Cleaing - RS 1200 Crores (Joke of this Century).
Adyar Park - RS 100 Crores
Koturpuram Library - Rs 100 Crores
Chennai Airport expansion - Rs 2200 Crores
Bridges
Guindy Kathipara
Airport bridge
Padi
Koyambedu
Perambur
Pallavaram
Mogappair
VyasarPadi.... etc etc.
Greenfield Sriperumbuthur Airport - Multi Crore


If the TN govt spends atleast Rs 1000 crores each for infrastructure development in Kovai, Madurai, Trichy, Nellai and Salem.... the migration to Chennai can be controlled.

And the state govt is not willing to allot a Re for the Chennai Kanyakumari double line (Rail track).

What a pity .......what a partiality ?

Siddhu

Dear Sridhar,

The RE price will not fall. And you know that the tax payers money is going to tax heaven countries (Swiss, Le) and the remaining money is in India Real Estate.

Defence
Telecom
Spectrum
Commen Wealth
etc
etc

Long live Indian Netas !!!!

sridharchennai

Siddhu,

As far as I know all over tamil nadu everybody knows the land prices have not come down due to some powerful families investing all their money in real estate all over tamil nadu. I see no Deja vu with small business in tamil nadu. Except very few people most of them are seeing negative growth.

I strongly link the real estate prices of tamil nadu to results of coming state assemble election. A single jolt its all gone.

Thanks,
Sridhar

abk

99% of all businesses(non corporate) are doing great,on what basis are you saying they are seeing negative growth,
try acquiring a shop in prime commercial area(i am not refering to Tnagar,puraswalkam,etc) and you will know the demand.

what jolt are you expecting,its either DMK or AIADMK. how will it affect RE,any party comes ,they make more(huge) money. where will the money go..... RE!

Economist

To me Chennai RE price was always looking too high (from 80's as far back as i can remember) The family you are mentioning was not in power.

So you think when the powerful Thiruvarur family looses the election, The new powerful Manarkudi Mafia adopted family will not invest in RE?

Yes there will be a portion of RE will be always bought by Politicians but politicians are not the only reason price goes up.

Look at :

1.the population growth, mass rural migration in to chennai.

2. new factories & Infra like (Nissan,Hyundai,Ford,BMW,Dell,,Foxconn, Flextronic,New Ennore Port, New LNG Power Plant, Saint Gobin, JK, Apollo Tyres,etc,etc)

3. KPO Industries.

4. Medical/Health Industry

Chennai is the only city that I have come across which has a population of 9 Million people living in a small area of 450 Sqkm (Corporation limit only 175Sq mts)


There is lack of supply to meet the demand.

More and more graduates and non Graduates from rural TN will continue there move in to Chennai.

Inflation will also push wage cost that in turn will keep up the high RE price.

No matter witch family or Friend is ruling they will also continue there share of acquiring RE (all over the country), Shares, companies (T.V, Airlines, Cement, Movie production)

In fact news for you mate - for the last10 years the trend for TN politicians buy more than 50% of there property acquisition interstate (Mainly B’lore, Hydrabad, Delhi & Pune) where their Binami acquisition is not under scrutiny.

So look at the real factors instead of dwelling on “urban myths” and “folk tales”.