The New Benami Transaction Act

The government is in the process of amending the Benami Transaction Act, which will give it the power to confiscate any property that is declared benami. Under the new Benami Transaction Act, women will be able to acquire assets in the name of their husbands without running the risk of the property being declared benami. Under the existing law, property acquired in the name of the husband by his wife from undisclosed income is considered benami, although the husband could hold a property in his wife’s name. The law defines a benami transaction as a deal in which a property is transferred to one person while the consideration is paid or provided by another person. The new law will set up an authority and empower it to confiscate an asset deemed to be benami if the owner fails to provide proven source of earning. But assets of family members declared benami will not be confiscated. Such a property, however, will remain benami and cannot be claimed as a genuine purchase later by the person who holds it in his name. (Indian Realty News, May 26, 2011)

Indian Real Estate Show

Indian Property show, its eighth edition is scheduled from June 16 to 18 at Dubai World Trade Centre. About 250 Indian Projects worth $2200 million will be featured in the show. Show is organized by Sumansa Exhibitions, and is expected to generate business worth $58 million. Visitors can look at a spectrum of properties available, different investment options, financing sources, Vaastu consultations and sort out legal queries. The show will definitely meet potential customers and we may witness rise in property prices in the near future. Hence, this is the right time for the investors to buy the property. (Indian Realty News June 6, 2011)

Builders Association to Upgrade Technology

Builders Association of India (BAI) at a recent meeting discussed issues related to make living safer and comfortable. Recent tragic events in Japan was a clear indication of the technology they used to build up that nation as it has withstood such a huge calamity. BAI will work towards upgrading technology and it will be achieved through workshops, symposium and seminars. The meet also mentioned about an exhibition of alternative construction materials and designs to cut down cost to help common man achieve his dream of owning a house. The BAI said it would continue training fresh civil engineers and diploma holders. (The Hindu, April 30, 2011)

Rise in Home Loans

RBI’s announcement about interest rates in home loans may create a negative impact on real estate developers. This will be a bad news for those people who are looking to buy house as loan. Banks like ICICI, SBI and IDBI indicated that they would also increase interest rates in near future. With high construction cost, sure this is a blow to real estate sector.

Why so expensive?

Dream home and land has always been valuable to Indians. Land is still considered as a sign of  tradition, an asset that is precious and an investment as secure as gold. Factors which contribute to the cost of real estate in India includes NRI interest in India, the IT boom, various Government initiatives and the demand for housing. According to India business directory, real estate investment is the most successful investment phenomenon especially in Cochin, Kerala. Real estate prices shows money invested in real estate never goes down; there has always been an upward movement and the same will continue in the future.

Demand for loan highest from real estate: RBI

Banks have experienced strong demand for loans from non-banking finance companies (NBFCs) and from the real estate sector during the year till February, shows the latest data released by the Reserve Bank of India. “Credit growth to NBFCs at 46.4 per cent on a year-on-year basis in February was significantly higher than the growth of 19.8 per cent during the corresponding period of the previous year,” RBI said. During the first 11 months of the financial year, loans to NBFCs increased by 39.9 per cent as compared with 9.7 per cent during the corresponding period last year.

                            Bank credit to commercial real estate (CRE) grew by 17.8 per cent for the year till February, as compared with 0.9 per cent growth during the same period last year. On a financial year basis, credit to CRE grew 17.1 per cent as against a decline of 0.9 per cent during the corresponding previous period. Overall credit growth till February was 22.8 per cent in 2010-11, compared to 15.9 per cent of the previous year. This was higher than RBI’s projection of 20 per cent. During April-February, non-food gross bank credit growth was 16.8 per cent as compared with 11.1 per cent during the corresponding period. (Indian Realty News)

Why Kochi?

Kochi city ranks first among cities in Kerala in population density. Why people prefer to live in Kochi? Think about the facilities. The city offers an unique mixture of small city comforts with mega city infrastructure. With an International Airport and a State Government that is pro-acitve, city has become an ideal destination for trade and industry. City provides excellent facilities in residential, commercial, hotels, schools, hospitals, transportation and its excellent work culture makes it a very ideal place to live. It is also the much sought-after destination for IT companies.