Thursday, July 30, 2009

Godrej Properties IPO in next ten months - Adi Godrej

Godrej Properties Ltd (GPL), the real estate arm of the Godrej group, has planned to come out with its initial public offering (IPO) in next the ten months, a top company official said.

The fund will go entirely into Godrej Properties and their will be no sale of shares by Godrej Industries. "It will be new capital going into Godrej Properties. We have permission to do 10 per cent to the public which is the minimum required and 3.5 per cent pre-IPO," Godrej said.

Godrej Industries currently holds an 80.3 per cent equity in Godrej Properties Ltd.
To read more, please, visit - The Economic Times

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Right time to start investing: Vishakha Mulye, ICICI Venture MD

Mulye banks on domestic investors to raise money before approaching international markets

Vishakha Mulye, 40, speaks in a measured tone, but with the quiet assurance of someone who knows her onions.

Just three months into her job as the managing director and chief executive officer of ICICI Venture, one of India’s largest private equity firms, Mulye’s biggest challenge is the burden of expectations – first, she replaced the high profile Renuka Ramnath who steered the firm for over eight years; second, the market condition for raising money is hugely challenging; and third, she has had to re-shape the organisation and, in the process, let some people move on.

In her first interview after taking charge, Mulye, a chartered accountant who joined the ICICI Group 16 years ago, shrugged off the so-called burden. “The external environment is coming back on track and we have strategies in place to take the firm forward,” she said, declining to comment on her predecessor’s projections of ICICI Venture managing a corpus of $10 billion by 2010.

On real estate, Mulye said she was more interested in the residential side of it – affordable and urban housing in Tier I cities and the firm was already in advanced stages of negotiations with several companies.

Commercial real estate, she said, would still take some time to come back on track due to oversupply and deceleration in demand.

The firm already has a well established real estate practice, which manages a three-year-old $550-million fund, which is yet to reach its maturity phase in terms of value.

She, however, felt that this was “the right time to start investing” as the stretched valuations of the past were becoming more realistic. “A few years ago, everything people touched turned into gold. Now, people have become more realistic. That gives us a lot of good opportunities to invest,” she said.
To read more, please, visit - business-standard.com

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Wednesday, July 29, 2009

10 must-do things while filing your income tax return

1) With the due date of July 31 fast approaching, it is that time of the year again when the nation’s tax payers scramble to file I-T returns. After all, filing of tax return is compulsory for everyone whose gross total income exceeds the basic exemption limit.

However, despite all the precautions taken by you, rush-hour filing may mean that you could inadvertently miss out on certain details and disclosures, and therefore be on the bad books of the taxman. If not that, you might just forget to make the most of the tax breaks available to you, thus paying more tax in the process and claiming no or less return. Here are 10 important things to do before filing your I-T return:

2) Five top security tips when filing taxes online this season:

It's that time of the year again when you need to file your end of year income tax return, but is the plethora of paperwork bogging you down? The Indian government has just made things easier by launching the facility of filing your income tax returns online.

The advantages of filing your income tax returns online are plentiful. For instance, you can file your returns anytime, anywhere, away from the prying eyes of others and within the confines of your own home.

However, you do need to ensure you protect your personal information online. It is no coincidence that identity theft rate related to tax return filing rises in keeping with the increasing popularity of online tax filing.

With thousands of Indian taxpayers heading online to file their returns in time for the Tax Day deadline, VeriSign, Inc., the trusted provider of Internet infrastructure services for the networked world, is offering five easy-to-follow tips for Indian tax payers to protect themselves.

3) All you wanted to know about filing tax returns

With just three days left to file tax returns, many
are spending sleepless nights trying to figure their way through financial jargon and endlesspaperwork. DNA gives you a low down on all that you need to know to successfully get through the ordeal:

4) File your tax returns in 3 easy steps:

From a legal standpoint, you are obligated to file a return of income, if your taxable income during the year (2008-09) has exceeded the exemption limit of Rs 1.5 L. (Rs 1.8 L in case of women and Rs 2.25 L in case of senior citizens).

Where do you start?

5) Why you should e-file

So, when we took an office poll, we expected some people to have filed their taxes online. But no hands went up!

The successful tax filing portals can claim high volumes largely due to corporate tie-ups and not because individuals sign up with them. Clearly, even among the aware who have access to the Net, the online route is not preferred. Why?

6) Remember, incomes that are not taxed

You must be busy these days in filing your annual income tax returns. In case, you have already filed it, you must be feeling very relaxed. Anyway, it is important for you to understand that although the tax man has been vested with the task of collecting taxes on the incomes of the citizens, he has deemed certain kinds of incomes as "not included in total income"

Thus if any earning that you receive which falls under these incomes you don''t have to treat it as income or pay tax on it! Let's take a look at the different incomes that are not incomes.

7) Can't file returns by July 31? Don't worry

The last date to file your income is just three days away - July 31 - and you are anxious because you are not in a position to file your returns by then. Relax, there is no need to be unduly worried.

8) Want to save more tax? Here's help!

Union Finance Minister Pranab Mukherjee [ Images ] marginally raised the Income Tax exemption limit, abolished Fringe Benefit Tax and Commodity Transaction Tax and announced some schemes to benefit the aam aadmi.

What exactly does the Budget hold for the common man? Will you benefit from the Budget proposals? Or do you really don't care? How does it affect you?

What are the best investment oportunities open to you? How best can you save taxes?

In an hour-long chat on Thursday, direct tax expert Vikas Gandhi offered some valuable tips. Here is the transcript

9) Tax Return Filing Tips for NRIs

Taking up a job abroad or settling overseas may not absolve an individual from filing an income-tax return in India.

Filing of a tax return in India depends on the taxability of income earned by the individual.

This in turn depends on his/her residential status as per domestic tax laws.

This article provides guidance to Non Resident Indians (NRI) for filing income-tax return in India.

10) Tips on Filing and Saving Income Tax in India for NRIs.!

Yes filing tax returns on Indian taxes have always been confusing, but thanks to the new changes and tax rules that Indian income tax department has brought. They have brought some new tax exemptions for NRIs, some great tax rates on India’s service tax, wealth tax, property tax, gift tax, income tax, capital gains tax, dividend taxes, India taxation on investments, real estate sale taxes, thus making the tax calculation easy for income tax return filing.

Although NRIs are living abroad and away from India, most of them still pay taxes in India. We have put together so tips for you to use on filing Income Tax in India.

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Tuesday, July 28, 2009

Banks lend more to real estate companies than to individuals!

Which sectors have banks been lending to in recent months?

The Reserve Bank of India’s macroeconomic and monetary developments review has data up to 22 May on lending to various sectors.

Consider housing first. Year-on-year growth in housing loans slumped to 5% on 22 May, compared with a year-on-year growth rate of 7.5% on 27 February.

Loans to the real estate sector, or loans to the commercial housing sector, grew by a strong 52% year-on-year, albeit on a much lower base.

On 27 February, loans to the real estate sector grew by 61.4% year-on-year.

Between 28 February and 22 May, housing loans increased by Rs3,138 crore, while bank loans to real estate companies went up by Rs3,734 crore.

In short, loans to real estate companies were more than loans for individual housing.

To read more, please, visit - Real estate, infrastructure loans show strong growth - Money Matters - livemint.com

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Fresh real estate sops to spur revival

The move, expected to further boost housing demand in the economy especially in tier II cities:

Eyeing fresh signs of a revival in the economy, which should nudge growth back to 9% level by end-2010, finance minister Pranab Mukherjee announced fresh tax giveaways for housing and renewed the government’s commitment to more economic reforms and introduction of a single goods and services tax (GST) by 1 April.

Boosting real estate through budgetary support and tax changes:

The budgetary support in the form of a 1% subsidy on the interest rates paid by people with a home loan of up to Rs10 lakh would cost the exchequer Rs1,000 crore in the current fiscal year, Mukherjee said.

Under Section 80 IB (10), income-tax deduction was given to real estate developers for housing projects approved before 31 March 2007. This has now been extended to projects approved between 1 April 2007 and 31 March 2008, provided these projects are completed on or before 31 March 2012.

Kumar Gera, chairman of the Confederation of Real Estate Developers’ Association of India:

"We have been asking for an extension for a long time and I am happy that this step has been taken.

The extension will benefit only those projects that were approved during this period, so it may not have an impact on all housing projects in all markets. It could have an impact on certain micro markets."
To read more, please, visit - livemint.com

Related Story:

"Ab tera kya hoga Kaalia of Hinjewadi?"

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Monday, July 27, 2009

NHAI, REC bonds hit by realty slump

With real estate valuations falling, the rush at the few remaining counters selling capital gains tax-exempt bonds is tapering off.

The National Highways Authority of India (NHAI and Rural Electrification Corporation Limited (REC), the two remaining issuers of such bonds, have mopped Rs 820 crore so far in the current financial year. NHAI has raised Rs 150 crore against the Rs 4,000-crore target for this fiscal, while REC, which opened the issue in April, has raised Rs 670 crore against a target of Rs 2,500 crore.

Under the income tax law, one can save on payment of capital gains tax if the amount is used for repurchase of property within a 12-month period.

Alternatively, capital gains tax can be avoided by investing in bonds issued by NHAI and REC.

The bonds are popularly known as 54 EC bonds (after Section 54EC of the Income Tax Act, 1961).

Earlier, entities such as the National Housing Bank were also allowed to issue these bonds. But a few years ago, the government reduced the number of isuuers.

In addition, it capped the maximum amount that could be invested in these bonds in order to limit the benefit to individuals.

Further, the amount of bond issuance was lowered to allow the government to raise revenue during the real estate boom.
To read more, please, visit - Business Standard

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Tuesday, July 21, 2009

Do you give more importance to water, security, public transport, parking space over gym, indoor game facilities or swimming pool?

Trend in residential space across top cities in the current scenario:


IndiaProperty.com, India’s No.1 property portal from Consim Info (formerly known as BharatMatrimony Group) today released their online survey report, which showcases the ‘Trend in residential space across top cities in the current scenario’.

The survey received over 3,000 respondents and most of them showed interested in buying residential property now. One of the key findings of the survey is: people aspired to services like water, security, connectivity by public transport, parking space over other lifestyle features that include gym, indoor game facilities, and swimming pool.
To read about more key findings derived from the survey, please, visit - Mumbai tops in property investment in India

Isn't it strange to look for which is not offered?

New projects are launched in undeveloped areas where infrastructural services like water, security, connectivity by public transport, are not available today. Because of the less or no development, property rates are lower in these areas like Wakad and Kharadi than the developed neighborhoods like Aundh and Koregaon Park.

You know very well that builder has no control or interest and Pune or Pimpri Chinchwad Municipal Corporation don't have enough funds to provide these services.

To attract you to buy a property in these less developed areas, builders offer amenities like club house and swimming pool which are in their control to develop. However, every real estate salesman talks about the grand development plan and promises completely developed area in the next couple of years! Isn't it strange to take a decision to buy a property based on these day dreams? What say you?

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Thursday, July 9, 2009

Pune real estate market leads the recovery

Analysts say smaller property markets will take longer to revive

Another 8-9 months!

As sales of residential properties start to pick up in the metros and other large cities, smaller cities such as Pune, Nagpur, Jaipur and Mysore are far from showing any signs of recovery.

Analysts say the smaller markets, where real estate prices have crashed 30-40% since mid-2008, will need another eight-nine months for demand to start reviving.

Oversupply:

“There is a huge problem of oversupply in these cities because developers constructed more than what was required in the boom time,” said Sunil Mantri, founder of Sunil Mantri Realty Ltd. “These are investor-driven markets and they took a beating when investors exited. Real buyers are still waiting for further price correction.”

Overpricing:

Analysts also blame overpricing of properties in tier II cities while not matching the facilities available in larger cities.

Recovery Pattern!

There is a pattern in any housing market recovery, said Anuj Puri, chairman and country head, Jones Lang LaSalle Meghraj, a property advisory firm.
"Demand first comes back in the central business district in tier I cities and then in suburban districts, and then later in tier II and tier III cities," he said.
Among the smaller cities, Pune real estate market is leading the recovery followed by Ahmedabad along with Kochi and Coimbatore, he added.

Pune retail real estate market:

The retail property segment, too, has been hit hard in the smaller cities. In Pune, 15 shopping malls were announced in the past year but only three are coming up.
To read more, please, visit - livemint.com

Pune real estate market has revived!

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Wednesday, July 8, 2009

Union Budget 2009-10 - No immediate impact on Indian real estate

"Though there is no immediate impact on the real estate industry in the Budget, the finance minister has incorporated measures that have a mid- to long-term impact on urbanisation and hence on the real estate industry," says Anurag Mathur, managing director of real estate research company Cushman & Wakefield India.
"While the budget is good under the circumstances, what has been left out is a policy level pronouncement for the sector. These announcements could have gone a long way not merely in standardisation, but also in bringing transparency for the real estate sector," he felt.

Indirect boon to the real estate industry:

Anuj Puri, chairman and country head for real estate management company Jones Lang LaSalle Meghraj, said the fact that India Infrastructure Finance Company will be given more flexibility and has been authorised to raise Rs 1,00,000 crore for the development of the infrastructure sector is an indirect boon to the real estate industry.

"Of late, an increasing number of infrastructure projects have a real estate component by virtue of a cross-subsidisation principle. Therefore, boosting infrastructure projects gives an impetus to real estate as well," he said.

The fact that allocation for highway construction has been increased will mean improved and accelerated connectivity, raising the value of existing real estate along these routes and also opening up new areas for development, Puri said. According to him, the allocation increase to the Rajiv Awas Yojna will help urban slum-dwellers get better houses.
To read more, please, visit - The Times of India

Related Story:

Union Budget 2009-10 - CREDAI Pune is extremely disappointed with the government for ignoring the home and shelter aspirations of the middle classes

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Tuesday, July 7, 2009

Ackruti Countrywoods, on Katraj Kondhwa link road - last hope for Ackruti City?

Ackruti City's Q4 results worst amongst listed realty companies:

No Sales!

Mumbai-based real estate developer Ackruti City’s fourth quarter results were the worst amongst the pack of listed realty companies.

Due to negative sales, its net profit for the quarter ended March ‘09 took a big hit. Despite a slight improvement in the sentiment for the sector, Ackruti could not register any sales.

In fact, it had to write off close to Rs 105 crore worth of FSI sold in the previous year.

The company reported a 300% drop in net sales in its fourth quarter and its net profit turned red.

It fell to a negative Rs 123 crore from Rs 22 crore earned in the December ‘08 quarter.

10.5% decline in profit after tax:

Despite a dismal quarterly performance, the annual numbers do not look as bad.

For the full year ended March ‘09, the company reported a 1% decrease in its topline to close the year at Rs 437.2 crore as against Rs 440 crore in the year ending March ‘08. This led to a 10.5% decline in its profit after tax (PAT).

Employee cost almost doubled..!?:

On a year-on-year (y-o-y ) basis its employee cost almost doubled from Rs 7 crore to Rs 15 crore.

Due to a high leverage position, Ackruti’s interest cost also jumped multi-fold. It rose from Rs 61 crore in the year ended March ‘08 to Rs 140 crore in the current year.

Ackruti Countrywoods - last hope?

This gloomy financial performance forced the company to tweak its sales strategy.

Realising the growth potential in the affordable housing segment, the company has launched new projects in Mumbai and Pune.

Though margins will be lower in this segment, large volumes would help the company.

A lower interest rate and affordable prices would thus help Ackruti revive its sales numbers.
The Economic Times

Related Stories:

1) Akruti Countrywoods, on Katraj Kondhwa link road, offers property rate of Rs. 2,250 per sq.ft. for the first 50 bookings of 1 and 2 bhk terrace flats:

1 bhk terrace flat - Rs. 12.60 lakhs

2 bhk terrace flat - Rs. 16.65 lakhs

2) Ackruti Countrywoods on Katraj Kondhwa link road increases the property rates by 50 rupees!
Now, Rs. 2,300 per sq.ft.!

1 bhk terrace flat - Rs. 12.88 lakhs

2 bhk terrace flat - Rs. 17.02 lakhs

3) Developers are now reworking their strategy to target middle-class clients looking for smaller houses outside BMC limits

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Kumar Builders earmarks Rs 450 crore to develop 45 Nirvana Hills at Paud Phata in Pune

Was funds for construction of 45 Nirvana Hills an issue?

Pune-based Kumar Builders has earmarked Rs 450 crore to launch a 30-storey project, 45 Nirvana Hills, spread over 79 acres, in Pune.

According to Lalit Kumar Jain, chairman and managing director, Kumar Builders, construction for the first building of the project has already begun. There would be five to six residential projects that will also be 30 storeyed.

The entire project is estimated to cost Rs 450 crore. It is a self-funded project, finances for which are being raised through internal accruals.

For decades, Pune’s buildings were limited to a maximum of 36 metres. It was only last year that construction of residential projects up to 100 metres high was permitted.
express estates

Do you have any doubts about the completion of Kumar Builder's 45 Nirvana Hills?

One journalist asked Mr. Lalit Kumar Jain about funding in the press conference for launch of 45 Nirvana Hills and reasons behind the rumors circulating in the market about Kumar Builders. Mr. Jain's answer was, "There are lot of people who like to talk about me. I have released a press note answering all questions!"

What about you? Do you think? Is funding an issue? Are you concerned about the completion of 45 Nirvana Hills? Please, share your views.

Related Stories:

1) Kumar Builders open booking of the first 30 stories skyscraper in Pune, 45 Nirvana Hills, first phase of 79 acre township at Paud phata on Karve road

2) Kumar Builders' 45 Nirvana Hills at Paud phata on Karve road in Kothrud Pune

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Govt plans real estate model bill to be firmed up by Aug-Sept

Bill for regulating the real estate sector:

The minister for housing and urban poverty alleviation, Kumari Selja has announced a model bill for regulating the real estate sector by August-September time frame.

Talking about the 100 day agenda for her ministry, Selja said that the Model Bill would propose a regulator and aim to address the concerns of consumers as well as the real estate industry.

The finer details of the Model Bill could not be ascertained.

She said, “We have initiated a dialogue with all key stakeholders including private sector, NGOs, and various States to prepare the model Bill for regulating the real estate sector.”
Express Estates

How about regulating property prices?

Do you think that there should be some regulatory body which controls the property rates? Please, share your views in the comments.

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Union Budget 2009-10 - CREDAI Pune is extremely disappointed with the government for ignoring the home and shelter aspirations of the middle classes

Satish Magar, President, CREDAI Pune:

"Our expectations to boost affordable housing, provide greater tax deduction for interest paid for home purchases were not met.

While the FM talks about a slum free India in 5 years, he seems to have completely missed the opportunity to offer some relief and incentive to middle class home buyers.

It is well established that housing/construction is an engine that can help in propelling growth in the economy – the linkages to hundreds of industries as well as employment to millions of workers seems to have not found any priority of place in the FM’s budget.

Overall, the budget doesn’t address the needs of the housing industry at all."

Why Rahulbaba is ignoring urban middle class?

Is it because rural poor is a major source of power while urban middle class is a minority which can be easily managed? What is your take on the Union Budget 2009-10? Please, share your views in the comments.

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