| | | Top News Date January 18, 2010 |
DLF to exit MF biz, sell stake to US partner
REALTY major DLF has decided to exit from its mutual fund venture DLF Pramerica Mutual Fund by selling its entire stake to the overseas partner in the venture, the US-based Prudential Financial, as the company seeks to focus on its core business. Prudential Financial (PFI) is expected to buy DLFs entire 39% stake in the asset management company that is yet to start operations. The exit from the venture is in keeping with DLFs decision to focus on its core assets and move out of its non-core business , a source close to the development told ET. Both DLF and PFI refused to comment on the development. In an e-mail response to ET, PFI offered no comments on whether it will acquire the rest of the stake in the JV. A spokesperson for DLF said they dont comment on market speculations.
Source: Economic Times |
Residential property to play a major role in revival of real estate sector
As the year 2010 begins , it is heartening to note that homebuyers are taking the lead in reviving the realty market. Looking forward, it is almost certain that the residential sector will continue to play a major role in shaping future growth in the sector. For homebuyers, this also means that developers are going out of their way to woo customers , with projects to suit different tastes and budgets. Talking about the phenomenon , Kaustuv Roy, executive director, India, Cushman and Wakefield, the international property consultants says, "Post meltdown, the residential sector has been the fastest to recover with stabilisation of prices being the major factor. The oversupply percentage was lower compared to other sectors, where estimates were much higher than the actual demand."
Source: Economic Times |
Home buyers prefer Tier II and Tier III cities now
NEW DELHI: With real estate in metropolitan cities becoming prohibitive, many buyers with limited budgets are turning to Tier II and Tier III cities to buy their long cherished dream houses. Usually , these towns are located close to their native places. Even though they may not be able to live in these apartments now, these city workers feel secure in the knowledge that they have a place that they can turn to once they retire from their professional careers. In addition to this factor, growing industrialization and rising opportunities in the service sector are driving demand for housing in Tier II and Tier III cities.
Source: Economic Times |
Major Banks Reject RBIs Proposal of Uniform Home Loan Rates
Driven by angry mortgage borrowers, RBI has once again nudged top banks to charge lower home loan rates to old customers instead of just using the lower interest rates to pull new borrowers. But lenders continued to resist the proposal, citing cost mismatch. The contentious issue cropped up when CEOs of large banks met senior RBI officials on Thursday to suggest possible measures that the central bank could consider for the January 29 monetary policy. At the meeting, RBI deputy governor KC Chakrabarty reminded bank chiefs that the regulator had earlier voiced its concern over banks' inability to pass on the benefit of lower interest rates uniformly to all customers. It has been a common refrain among home loan borrowers that while banks are slow to pass on a rate cut, they are quick to hike either the loan term or the EMI (or equated monthly instalments) when rates go up.
Source: Indian Realty News |
SBI Chairman Defends 8% Home Loan scheme
The latest 'teaser' from the Reserve Bank of India hasn't amused Om Prakash Bhatt, chairman of State Bank of India, the bank that pioneered limited-period soft terms for home loans. "I don't know what the RBI means by teaser loans," Bhatt retorted minutes after deputy governor Usha Thorat expressed concerns over ultra-low rates offered by banks to attract home loan takers. It is not right to refer to the 8% home loan scheme as 'teaser', Bhatt said. Ironically, it is for the third time in the recent past that SBI is finding itself on the opposite side of the table with the RBI, technically its former owner. Bhatt also defended his scheme and said "there are no hidden costs in these loans or any add-backs." SBI, the country's largest lender, apparently is not happy with the stance the central bank has taken on the provision coverage ratio and expansion of the held-to-maturity category for accounting banks' investments. Bhatt justifies the bank's provision coverage ratio of about 40% as being safe enough, even as the RBI wants all banks to have a minimum provision cover of 70% to make banks financially more sound.
Source: Indian Realty News | | International News |
Property more affordable in the UK than at any time for more than five years, figures show
Property buyers in the UK need to use less of their income to cover their mortgage interest than at any time for more than five years, according to new figures. In particular, home movers are experiencing a low debt burden by historical standards, says the Council of Mortgage Lenders. They typically needed only 10.6% of gross income in November 2009 to cover mortgage interest payments, down from 11.1% in October.
Source: Property Wire |
US real estate market reaching new records, report shows
Real estate markets in most parts of the US are showing mixed results, according to the latest report from the Federal Reserve. In all seven of its districts, sales of lower priced property outpaced those of higher priced homes by a wide margin, the Fed reported. It credited the government homebuyer tax credit for boosting interest in less-expensive properties. And the extension of the tax credit could boost transactions. 'The extension of the credit into 2010 could give an added impetus to the expected seasonal sales upturn this spring,' the report says.
Source: Property Wire |
Thailand's property developers 'more optimistic'
Thailand's real estate developers are becoming more confident about their prospects for 2010, according to a new report. The combination of the global economic downturn and uncertainty about the political situation in Thailand prompted many property companies to halt work on developments during 2009. However, the latest report from the Real Estate Information Centre (REIC) suggests that attitudes are changing. Its property developer confidence index for the fourth quarter of 2009 climbed to 57.8 - up from 36.6 in the first quarter. The improved mood within the industry is a reflection of the easing conditions in Thailand's property sector.
Source: Cityscape Intelligence | | About Artha Property |
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