SBI Eyes Big
Surge in Home Loans
State Bank of India
(SBI), India’s largest lender, is neck and
neck with mortgage leader and pioneer HDFC in terms of home loans
outstanding, according to data from Icra, the rating agency. The bank is
aiming to increase its home loan portfolio (opening balance of loans
plus loans disbursed less repaid in a year) by 31% this year, the same
as last fiscal, but the pie will be bigger because of a larger base or
compounding. “We have a client base of more than 15 lakh individuals and
we are aiming to add another 4 lakh this year,” said a top bank
official. “We added about 2.92 lakh last year,” the official said,
requesting anonymity.
The person did not say if more teaser-rate type plans are on the
anvil.Such loans were primarily behind the Rs 17,000 crore burgeoning of
the bank’s portfolio last fiscal. Last fiscal, HDFC clocked a 15% in
outstanding loans (new disbursals less repayments) on a 27% growth in
disbursements. HDFC’s outstanding loans have grown by 30% only in fiscal
2008, while it has remained around 15-16% in the next two years. The
pace of sanctions continues to be frenetic. “We have sanctioned loans
worth Rs 3,650 crore spread across 31,400 accounts in April and May this
year,” said the official. That, annualised, comes to more than Rs
22,000 crore —exactly the amount of outstanding the bank hopes to have
for the year.
Mantri Developers
Plans Launch of New Real Estate Ventures in Chennai, Hyderabad and
Bangalore
antri Developers has outlined their plans to launch new real
estate ventures in Bangalore (six), Chennai (two) and Hyderabad (two)
during the course of this year. The company, which has set up one of the
country’s largest malls in Bangalore, Mantri Square, is looking at
launching two more of them in Hyderabad and Chennai. “We are finalising
plans for these two malls. Typically, each mall will entail an
investment of about Rs 600-700 crore,” said Snehal Mantri, director
(marketing), Mantri Developers, Bangalore.
“Even during downturn, we have not stopped investing in projects.
Every project we start is announced only after securing all necessary
clearances,” Mantri added. The Hyderabad project, Mantri Celestia, which
entails an investment of about Rs 350 crore, will have six towers of 24
floors each with 1,152 apartments. The project located in a 11-acre
site, will serve as a new residential landmark for employees in the
Financial District with a large catchment area. They now can buy a
property which will enable them to walk to their work place.
Bangalore Based Century Real Estate
Plans to launch Seven Projects this Year
Bangalore-based Century Real Estate is planning to launch seven
projects this year involving an investment of about Rs 800 crore. Of the
proposed projects, five will be in the affordable housing segment, one
will be a villa project and the last a mixed-use development that will
comprise commercial building and high-end residential apartments. The
company plans to fund the projects through pre-sales and bank finance.
P Ravindra Pai, managing director, Century Real
Estate, said, “Our rich heritage in land bank and historical
purchase price gives us an edge when it comes to lower costs. Together
with our design efficiency and superior planning, we are able to offer
homes that exceed customers’ expectations. With a vast land bank, we are
able to give our customers houses with a perfect mix of location and
price.”
The
Impact of New Tax Code on Real Estate
The revised draft for the Direct Tax Code released on June 15,
is currently a hot topic of discussion among people. The code is an
attempt by the government to simplify the existing income tax laws in
the country. Assuming there are no further roadblocks, the government
expects to implement DTC on April 1, 2011, after it is passed by the
Parliament.
Here is a list of some of the noteworthy changes proposed in the
draft code that will impact the real estate segment. The government has
revised the criteria for computing short-term capital gains. According
to the proposals, any loss or gain made on the sale of an asset within a
year of purchase will be taxed.
CCI Enters into Real Estate Plans to
invest Rs 1,000 crore
Cable Corporation of India on Wednesday said that it has forayed
into the real estate sector with an investment plan of Rs 1,000 crore
for its first project. The company will be developing the project
through its associate company, CCI Projects Private Ltd (CCP), in which
CCI holds 15 per cent stake.The project, spread over 22 acres, will be
called Rivali Park and is
located at Borivali, Mumbai.The project is conceived as a mixed-use
development with various retail, commercial, hospitality, entertainment
and cultural elements. The project is expected to be completed within
five – seven years in phases. The first phase is part of the residential
development and is expected to be completed in the next two-to-three
years.
Mahindra Holidays and Resorts Plans to
Triple Rooms
Capacity
Mahindra Homestays, a brand of Mahindra Holidays and Resorts,
plans to almost triple its rooms capacity to 2,000 during this fiscal
with a view to capitalise on the expected high tourist influx on account
of the Commonwealth Games.
“The concept of homestay is still new in the country. Currently,
Mahindra Homestays has about 270 homes with 650-700 rooms listed under
it in 15 states and 50 locations,” the company’s business head, Vimla
Dorairaju said.
SEZs migrating to other zones may face
tax hurdles
The Commerce Ministry may have allowed SEZ units to migrate from
one SEZ to another, but such units may face tax difficulties in the
absence of specific guidance from tax authorities to cover such
situations, say tax experts.
There is no specific provision in the income tax law to deal with the
migration situation and hence the tax authorities at the ground level
could take any view — either allow the migrated unit to enjoy tax
holiday for the unexpired period or deny the tax holiday for the
remaining period, sources in the Finance Ministry said.
REDCO Institute of Real Estate
Management to
Train Gurgaon Realtors
Around 40 realtors in Gurgaon have joined a training programme
to improve their understanding of legal and professional issues related
to property. The pilot training project, a public-private partnership,
commenced on Monday by the REDCO Institute of Real Estate Management —
the 40 realtors form the first batch of this six-day training course.
According to the administration, around 500 professionals, including
builders, brokers, property dealers and agents, have registered for the
training since it was announced three months ago.
The specially designed 44-hour programme will focus on the real
estate industry’s markets and practices, urban and environment planning,
laws and regulation, property management, planning and development,
finance and investment, among others. Municipal Corporation of Gurgaon’s
Deputy Commissioner Rajender Kataria said: “After completing the
programme, participants will have a good understanding of diverse issues
like urban infrastructure, finance, urban law, planning, various Acts,
renting and tenancy checks and even Vaastu Shastra among others.”
CREDAI Strengthens Presence in South
Indian States
The state chapter of the Confederation of Real Estate
Developers’ Associations of India (CREDAI), Tamil Nadu, the apex body
for real estate developers in the country, recently announced the launch
of its Coimbatore, Madurai and Tiruchy chapters. Realty organisations
from across Coimbatore, Madurai and Tiruchy would now be a part of
CREDAI Tamil Nadu for strengthening the association’s presence in the
southern part of the country.
The launch of CREDAI is significant for both the developer community
and consumers, when the growth of real estate in the region is moving
northward with more and more projects being conceptualised and taken up
for execution in order to meet the upsurge in demand both in the
residential and commercial segments.
Abu Dhabi firm plans to build “space
city” near Bangalore
Abu Dhabi-based Marib Holdings LLC plans to build a “space city”
in Chikkaballapur district, about 90 km from Bangalore, at an
investment of Rs 18,400 crore ($4 billion). The project, which received
in-principle approval of the state government Saturday, includes setting
up of an entertainment theme park on the lines of Disneyland in an
integrated recreation, business and residential township spread over
1,600 acres of land.“The space city will be a state-of-the-art high-tech
multi-functional
educational entertainment project, with a view to boosting real estate,
hotels and hospitality and leisure and tourism sectors,” Marib said in a
statement. Sheikh Sultan Bin Mohd Bin Khalid Al Nahyan, a member of the
Abu Dhabi’s royal family and main promoter of Marib, will visit
Bangalore in July to submit a master plan for final approval.
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