India: Affordable Housing in demand

The Indian real estate sector, had till recently been focusing on catering to the high demand for luxury living. Small house segment was ignored completely. High consumer confidence, low interest rates and a belief that the prices will only one-way, led to this euphoria. Several construction companies raised large sums of money through IPOs. After the January 2008 crash, the real estate stocks are among the worst affected. Whereas, the stocks were down, the prices of houses and real estate have not seen any appreciable corrections. Business World reports that in Mumbai recently, Bandra Kurla complex, a piece of commercial estate got only Rs 15,000 per square feet against Rs. 40,000 for a similar property in 2007.

With rising prices and interest rates, the demand for luxury flats (Above Rs 50 lakh per apartment) has dramatically come down. In India, housing if priced correctly has an enormous demand and given the huge housing shortage, it is unlikely that there will be any saturation in the market for a long time to come. This is a win-win situation for both, the buyer and developer. The attraction for developers in the affordable housing segment is assured sales and upfront cash flows. While margins may be lower compared to high-end projects, they make up in terms of volumes.

Cheers!

43 Comments 3.10.08 04:36, comment

Spanish investors to benefit from tourism boom

Property investors in Spain could be set to benefit from an increase in the number of tourists visiting the country.

Estanislao Perez, director of Jerez Airport, told the Typically Spanish website that the planned expansion of the facility would result in more flights arriving in the area.

As a result, he said that the number of people passing through the airport could increase to as much as four million by 2012.

This would be twice the amount recorded last year.

A series of improvements have been planned for Jerez Airport, including the creation of new check-in desks and an extension on one of its runways.

In addition, the operating hours will also be changed, allowing it to stay open for longer and handle more flights and passengers.

This could have a direct impact on investment prospects in the region, as the enhancements could improve its accessibility and profile.

According to NatWest, Spain is the most popular country among Britons who own foreign property as wonderful flats or houses.

Cheers!

28 Comments 25.9.08 22:04, comment

Spanish tourist officials report increased visitor numbers

The number of people choosing to visit Spain for their holidays has increased, according to new figures.

Statistics from the country's ministry of industry, commerce and tourism showed that 6.1 million visitors arrived in the country last month.

This is 1.8 per cent higher than during September 2006.

Meanwhile, an increase in tourist numbers was also recorded for the whole of 2007 to date.

Figures showed that 47.6 million people took a holiday in Spain between January and September this year - 2.2 per cent more than during the same period of 2006.

These figures are likely to be welcomed by investors in the Spanish property market, especially those who own rental accommodation (flats & houses) to let out to tourists.

Earlier this month, Clickair announced that it would launch new flights between Edinburgh and Barcelona, further highlighting the continuing popularity of Spain as a holiday destination.

Cheers mates! Choose Spain!

20 Comments 23.9.08 20:17, comment

Canadian Properties

Hi guys, now Im living in Canada 4 a while and I wanna comment you about properties here.

 Cheap flats and cheapest houses, nice condos, wonderful stuff!

 Weather here (BC) is very good these days, 15 days here, and only 1 were showers and clouds.

But if you really wanna invest go to Spain, good prices and sun all over the year!

Cheers buddies take care!

17 Comments 13.9.08 04:46, comment

Australia: Home buyers lose out in tax change

Ironically new home buyers are constituents the Rudd Government has championed since its election.

Property Council of Australia director Trevor Cooke said certain housing developers would now pay a greater proportion of their income in GST and would pass on that cost to buyers.

"In its present form, this change will add to the cost of new housing," Mr Cooke said. "It's hard to imagine developers will be able to absorb the full cost."

The Treasury estimates the changes will reap $620 million in revenue over four years. "That money will have to come from someone," Mr Cooke said.

Under the old scheme, developers would pay GST on the difference between the sale price and the price paid for occupied land that is a "going concern". Under the new scheme, they would pay GST on the difference between the sale price and the price paid to the original land owner.

For example, apartments sell for $10.5 million. A developer bought the flats site from a factory owner for $5 million. The factory owner bought it from a farmer for $500,000. Under the old scheme, the developer would pay GST on $5.5 million. Under the new scheme, they would pay GST on $10 million.

Prosper Australia director Karl Fitzgerald said the former system was preferable, particularly when houses were demolished to make way for apartments.

The margin scheme was fair. It was designed to stop GST being applied to the non-GST part of land and dwellings used as exempt housing but later taken over by a developer," Mr Fitzgerald said. "Without the margin scheme . . . GST is being clawed out on the way through as housing goes from a family to a unit dweller via a developer.

Cheers!

16 Comments 8.9.08 17:31, comment

Baby boomers retiring to the sun

Many of the baby boomer generation are choosing to flats to retire abroad, usually somewhere with sunny weather.

Were surveyed said that they regret not travelling more earlier in life.

It appears many over-55s do have something they regret, but in most cases it is not too late to do something about it.

Putting money aside and making it work for them means they are one step closer to realising their dreams.

Some 37 per cent of the over-55s who took part in the survey say that they wish they had started saving earlier on in life.

A baby boomer is generally considered as somebody born between 1945 and 1965.

Cheerio!

24 Comments 5.9.08 16:16, comment

Carlson not to renew contract with Sarovar Hotels

Carlson’s contract with Sarovar Hotels as master franchisee of Carlson’s Park Plaza and Park Inn brands in India is not likely to be renewed, according to reports. Minneapolis headquartered Carlson remains unlikely to renew the arrangement as the company feels it has gained enough insight into the Indian hotel and hospitality market and prefers to manage its own brands in the country directly. It has been leaning more towards the management contract model of late, which yields higher revenues. Global hospitality group Carlson owns the Radisson, Regent and Country Inn & Suites brands besides interest in restaurants and cruises. It manages the Radisson brand on its own but Sarovar Hotels and Resorts which runs properties like Hotel Marine Plaza, a sea-facing property on Marine Drive in Mumbai and Hotel Park Plaza in Gurgaon, has been given the master franchisee for its Park Plaza and the Park Inn hotel brands.

It is highly unlikely that the arrangement would see a renewal, a source disclosed according to a report. When contacted, K B Kachru, Vice president for South Asia for Carlson refused to comment on the development, but did not deny the report either. The change in relationship between Indian hoteliers and foreign players should not be seen as a problem but as a sign of a maturing market, according to an industry consultant. Similar changes have already been taking flats in the hotel industry. For instance, only recently ITC Hotels and Starwood Hotels changed the terms of their collaboration after 30 years of alliance. Oberoi Hotels owned by East India Hotels broke their ties with Hilton which has since joined hands with DLF.

Cheers mates, keep going!

12 Comments 3.9.08 03:07, comment