| | | Top News Date January 21, 2010 |
Real Estate Companies finding it Difficult to Handle IFRS
With the ministry of corporate affairs reiterating its commitment to converge Indian accounting norms with the international financial reporting standards (IFRS), the real estate companies are finding it tough to handle the effects of the implementation of the international standards as it will impact the basis for recognising revenues. Under IFRS, real-estate accounting is largely based on 'completed contract method' wherein revenue is recognised once the project is completed and sold. Under Indian generally accepted accounting principles (GAAP), there is no specific definition of investment property and there are varying practices of classifying such properties. Mostly, the real estate accounting is based on percentage of completion method wherein revenue is recognised as the project is being constructed.
Source: Indian Realty News |
Real Estate Major Unitech Withdraws Proposal to Raise Rs 3200cr via FCCBs
Unitech, India's second largest real estate company, has withdrawn its proposal to raise $700 million (Rs 3,200 crore) through foreign currency convertible bonds (FCCBs). The Indian realty segment was hit bad by the recent financial slowdown as demand for new homes dried up even as cost of finance went up. Feeling the pinch, Unitech had approached the Department of Industrial Policy and Planning (DIPP) and RBI seeking waiver of the three-year lock-in period to enable the transferability of the proposed FCCB. This was the first time a realty firm had sought to raise funds using this route in more than two years. The government had permitted realty companies to raise funds through external commercial borrowings route for specified projects in January as part of its stimulus measures, reversing an earlier blanket ban on such overseas borrowings by these firms imposed in May 2007.
Source: Indian Realty News |
India among Top Five Emerging Market that Lures Foreign Real Estate Investment
Foreign investors in real estate continue to repose their faith in US markets as they believe the country provides the best opportunity for capital appreciation, while India is among the top five emerging market in this space, a survey says. According to a survey conducted among the members of the Association of Foreign Investors in Real Estate (AFIRE) "In 2009, foreign investors in real estate say they remain committed to the US as their preferred real estate investment opportunity." The United Kingdom emerged as the second-best country for capital appreciation, receiving 30 per cent of respondents' votes followed by China which received 10 per cent. The survey further said the top five emerging markets are China, Brazil, India, Mexico and Turkey. China was considered as the top emerging market, followed by Brazil and India.
Source: Indian Realty News |
IBA Denies Communication with RBI on Home Loan Rates
Amidst media reports of guidelines for home loans that attempt to clamp down on teaser rates, the Indian Bank Association (IBA) has said that it has received no communication from the Reserve Bank of India (RBI), reports CNBC-TV18's Gopika Gopakumar. According to these speculative reports, customers will have to set aside 30-35% of their total home loan value. Senior officials at the IBA have affirmed that they have not received any communication from the RBI and that they would not dictate terms and conditions to banks.
Source: Indian Realty News |
Kolkata Sees Rise in Commercial Real Estate Segment
After a lull last year, demand for commercial property is steadily rising. Realtors and developers feel market conditions should return to normal, although no one knows how long it will take. "It is definitely en route to revival. There may not be many transactions, but enquiry levels have increased around 30 per cent compared with January. It is a good sign. There is more demand for commercial spaces in the non-IT sphere," said Abhijit Das, joint managing director of Lemongrass Advisors. Jitendra Khaitan, CEO, Pioneer Property Management, said, "Demand for commercial property is rising. There are large transactions. Prices for commercial property in central Kolkata have already appreciated," he said, adding that there used to be 10-20 transactions per month six months ago.
Source: Indian Realty News | | International News |
Real estate industry in Canada try to calm fears of property bubble
A heated debate about whether the property market in Canada is heating for a bubble has emerged as the latest official figures shows that real estate sales grew 72% in December compared with the same month a year before. The figures from the Canadian Real Estate Association (CREA) set a new record for the month. But it claims that investors should not read too much into the data as overall the 2009 market saw a decline of 10.7% from the record breaking pace set in 2007. It appears to be the government that is most worried about a property bubble rather than the real estate industry. The government has not ruled out tougher requirements for homebuyers to cool what it regards as a potentially hot market.
Source: Property Wire |
Last decade saw sharpest price increases in UK property market but research shows changing pattern
The average price of a residential property in the UK has increased by 273% since 1959 in real terms with the biggest rise in the last decade, according to new research. In the 2000s prices increased 62%, just ahead of the next biggest rise in the 1980s of 61%, the research into the housing market in the last 50 years from Halifax shows. The worst performing decade for property prices was the 1990s when prices fell 22% in real terms. Overall the analysis shows that pronounced cycles have been a key feature of the real estate market. It points to four distinct periods of rapid real house price growth; 1971 to 1973, 1977 to 1980, 1985 to 1989, and 1998 to 2007. Each was followed by a significant fall in real house prices.
Source: Property Wire |
Shanghai real estate 'currently overvalued'
Shanghai property is currently overpriced, but that could soon change, a high-profile investor has warned. Figures published by the National Development and Reform Commission showed that real estate prices in Shanghai rose by 7.4 per cent during 2009. They also showed that the rate of price growth, both in Shanghai and China as a whole, is accelerating. Jim Rogers, an American investor who specialises in Asian markets, told Bloomberg the rising value of real estate in Shanghai was being caused by speculative investors and predicted it would not continue. "Certainly, Shanghai real estate or Hong Kong real estate should decline. My goodness, if anything's in a bubble in the world, that and U.S. government bonds are certainly very overpriced," he said.
Source: Cityscape Intelligence | | About Artha Property |
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