Friday, July 24, 2009

Mumbai most preferred for investing in properties: Assetventures

Mumbai most preferred for investing in properties:

The country's financial capital Mumbai ranked as the most preferred destination for investing in properties, while Chennai has displaced Bangalore in the South, a survey conducted by an online portal said here on Tuesday.
The survey, "Trend in residential space across top cities in the current scenario" ranked Mumbai as the most preferred destination to invest in property while in south, Chennai was the first place for property investments, overtaking Bangalore.
Cities like Patna, Nashik, Tiruchirapalli and Madurai have also become favourite destinations for property investments, the survey said.
It said 60 per cent of respondents felt interest rates for home loan would come down further in the coming months, while 40 per cent evinced interests on properties with an area between 500 to 1,000 square feet.
Over 3,000 people from the metros and other cities, including Pune, Thane, Coimbatore, Ahmedabad and Vadodara participated in the survey.
"Market sentiments are reviving and people are willing to invest. Based on our survey, more than 60 per cent of customers are looking at buying residential properties in the next six months. They also are expecting a lowering of interest rates on home loans", Consim Info Founder and CEO Murugavel Janakiraman said.

Seizure notices yield Rs 1.33 cr property tax dues in Pune : Assetventures

Property tax defaulters in the Pimpri-Chinchwad Municipal Corporation (PCMC) areas coughed up Rs 1.33 crore after the corporation's property tax department sent seizure notices to 109 defaulters.
Speaking to TOI, Shahaji Pawar, assistant commissioner, PCMC said that the 109 property tax defaulters owed Rs 2.16 crore as dues.
"The property tax department has intensified its drive to recover the dues from defaulters. Seizure notices are being issued to defaulters who owed large sums. Each divisional office was given the target to send 15 seizure notices to recover the dues. The defaulters have partly paid their dues after receiving the notices. If they do not clear their dues, their properties will be auctioned to recover the balance."
He said that property tax bills are being sent to the property holders for 2009-10. The department has collected Rs 10.36 crore as property tax till now, while it had collected Rs 6.56 crore till end of June in 2008-09.
The property tax department has announced a special scheme of Free Singapore trip' to 15 property tax-payers who have cleared their property tax dues and also paid the tax for the current year. as per the scheme, two members of the taxpayer's family or his two nominees will get a free trip to Singapore.
Pawar said, "Property tax bills for 2009-10 are being sent to the taxpayers. There are a total of 2.71 lakh properties in the municipal limits and we have still to distribute around 60,000 bills. Property taxpayers have to pay their pending dues if any and this year's tax before August 30 to be eligible for the Singapore trip."
He added that a list of such eligible taxpayers will be compiled after August 31. "We will select 15 property holders through a lottery system for the Singapore trip," he stated.
The property tax department has collected a record tax revenue of Rs 88.88 crore in 2008-09. Pawar said, "The department hopes to collect property tax of around Rs 30 crore till the end of August this year. We will start a drive to create awareness among the people to pay tax on time. The department will use loudspeakers mounted on vehicles to make an appeal to the people to pay tax on time and be eligible for the Singapore trip."

A cell for NRIs' property issues in Chandigarh Assetventures

This happened after a incident in Chandigarh.

A day after an NRI alleged connivance of estate office employees in the sale of his shop-cum-flat (SCF) in Sector-20 Chandigarh without power of attorney, UT administration has decided to set up a grievance redressal cell for NRIs, which would deal with property disputes.
The instance of cheating and fraudulent sale of property of a London-based NRI Tara Singh is being probed by vigilance department, home secretary Ram Niwas said.
Complainant Tara Singh had alleged that the SCF was in his father’s name and to transfer it to his name, he got in touch with a company that provides services to NRIs in matters relating to property.
Administrator Gen (retd) SF Rodrigues has reportedly taken a serious view of this and has directed that a special cell headed by additional deputy commissioner, having prominent citizens.

Return of NRI interest in Indian real estate

"The right sized product, at the right price will surely be a sell-out," says Sukhraj Nahar, chairman of the Nahar Group. At the MCHI's India Realty Expo, 2009, in Dubai, the Nahar Group offered NRIs homes in a new segment - a two BHK flat that cost INR 55 lakh onwards, which received good response. "The NRI customer needs the security of being able to walk up to the chairman of the company and ask just about any question related to the project," says Nahar, on the product's success.
MCHI CEO, Zubin Mehta, substantiates the return of NRIs' interest in Indian realty with figures from the exhibition: a turnout of 1,096 NRI families; 106 flats worth Rs 65.33 crore ($13 million) booked and around 86 flats worth Rs 80.18 crore ($16 million) in the pipeline; site visits fixed for July-August, when the NRIs come to India on their annual vacation.
"We tweaked the format and offered products that were nearing completion, with a budget limit of INR 75 lakh, mostly in the suburban areas and these were perceived by the NRIs as having scope for further value appreciation," he says. "The softening of real estate prices and home loan interest rates in India, were the key factors for attracting a large number of NRIs," says Mehta.
HDFC's branch manager (Dubai), Vikram Goel, reveals that innovative schemes, like the '20:80' home finance scheme offered by HDFC and the Nahar Group, play a big part when it comes to garnering bookings. "The average NRI is worried about the economic challenges, across the next year or so. Hence, they find schemes like these, which provide for 20 per cent payment at the time of booking and the remaining 80 per cent at possession, attractive," he added.
"NRIs are facing a unique situation," says JS Augustine of Everest Developers. "There is a certain amount of job uncertainty, due to the global economic situation. At the same time, Indian real estate offers lower entry-level prices, with potential for good returns on investment (ROI). So, NRIs who are sure of their job for the next few years, are buying Indian real estate. The INR/USD rate differential also makes it more attractive for NRIs to buy now," he says, adding that it is necessary for Indian developers to meet NRIs more often, to create confidence and give them more comfort.
What works for the NRI buyer? It has to be innovation and a different product, from what has been on offer so far and at a price level that seems attractive to the NRI buyer who has the global property market to choose from, concludes Rajnish Oswal, MD of Dubai-based real estate firm, Home Back Home.