As property markets fall world-wide, one of the few consolations for real-estate investors is that some governments have become more open to nonresident property owners. A growing number of them are considering loosening or temporarily suspending foreign property-ownership restrictions in a bid to stimulate their real-estate markets. In January, for example, Beijing issued a one-year suspension of a one-year residency requirement for foreign nationals buying a house. The Cayman Islands and Australia have also recently loosened their rules. Meanwhile, the issue is being discussed in numerous other countries, including the Philippines. Loosening foreign-investment restrictions isn't new. Governments have been attempting to stimulate foreign investment for years in response to swelling interest from international investors. In 2005, India began letting foreigners invest directly in Indian residential and commercial real-estate development. And in late 2006, the government lifted a required 10-year lock-in period on repatriating property sale proceeds, although it's limited to $1 million a year.
Slumping property sales has given the issue renewed urgency, as countries strive to find ways to stimulate local economies. Last month, the historically foreign-investment-friendly government of the Cayman Islands temporarily lowered rates on their real-estate transfer "stamp duty" taxes, including a reduction to 5% from 7.5% on waterfront property. At the same time, the country's real-estate brokers group, Cayman Islands Real Estate Brokers Association, announced a 20% rebate on commissions.
Ways to restrict foreign investment aside from outright bans include high transfer taxes and limits on when and how much money investors can repatriate. Rules can differ depending whether the purchase is a residence or an investment. To be sure, not all countries are choosing to loosen regulations. Some may crack down on foreign investment, blaming it for driving prices to unsustainable levels, says Danny Bance, managing partner of U.K.-based International Property Investment Network, a research and investment services provider for investors. But many governments believe that foreign investment spurs infrastructure development, which spurs economic opportunity, says Mr. Johnson, 59 years old, of Detroit, who got his start developing luxury property in Michigan, including a large Lake Michigan resort. He says he helped convince the British Virgin Islands government to loosen curbs on foreign investment partly through his willingness to hire local residents for senior management positions.

In a move to help the cash-strapped real estate sector, the commerce and industry ministry is likely to waive end-use restrictions and allow realty developers to divert surplus foreign direct investment to real estate projects where it was not allowed so far. According to the norms, FDI is allowed only in projects with a minimum investment of $10 mn (in wholly-owned subsidiaries) or $5 million in joint ventures, and which has a minimum area of 10 hectares.

As per the proposal, which will require a Cabinet approval before being implemented, a real estate company which has brought in FDI in a project meeting the mandated conditions can now use the surplus funds in another project which may not meet the prescribed conditions. For example, a realty company that has raised FDI for a township in Faridabad which meets the minimum capitalisation and minimum area norms may now use a part of the surplus funds for a project in Gurgaon which may not have got a clearance from Foreign Investment Promotion Board (FIPB). Put simply, while the new norm does away with the end-use restrictions, it also nullifies the mandatory meeting of conditions for using FDI.

In the last FIPB meeting, the board deliberated that in view of the difficulties being faced by the real estate sector, some leeway is required, even if for a temporary period. “We will soon issue the guidelines to be followed in case of requests for receiving FDI by realty companies engaged in various projects, not all of which are FDI-compliant as per Press Note 2 of 2005,” a senior official directly dealing with the new policy told ET. He asked not to be identified. The official added that the relief would be extended to the realty sector for a temporary period with an in-built sunset clause.

Interestingly, this comes even as the government had recently stepped up vigilance against companies channelling FDI money to projects that had not received FIPB clearance. While examining real estate company Keystone’s proposal in a meeting held in January, the board had asked the department of industrial policy and promotion (Dipp) to set up a monitoring cell to track FDI inflows into non-FDI compliant projects under the veil of FDI.

Mauritius-based India Real Estate Infrastructure Fund’s first round of fund raising exercise will come to an end by June by which it plans to mop up $100 million. Launched in January, the fund targets a mop-up of $250 million from across the world for private placements in Indian real estate companies. Balance $150 million will be raised in the following closures. “We plan to invest the money in unlisted Indian real estate companies under the FDI guidelines. We prefer to have weightage of up to 50 per cent in every company so that we can have a ‘say’ in the management. It will help us to drive the policies in the right direction,” said Arun Goel, CEO of DHFL Venture Capital India Pvt. Ltd, which has been mandated to create an investment portfolio on behalf of the fund. The fund will invest in real estate companies pursuing projects in residential, commercial and hospitality domains which also encompass SEZ, IT parks, hotel. DHFL Venture has appointed Mumbai based Yen Management Consultants Pvt. Ltd as financial advisor. The fund will consider factors like the number of development projects in hand, FDI compliance, local presence and growth plans and execution in choosing the company. Explaining the investment rationale, Goel said, “an increasing population and flourishing services sector have resulted in a number of green field projects to build residential and office buildings. Further, rising cost of hotel accommodations across major cities in India has led to high demand for ones with reasonable rates.” Besides EU based countries, the fund is getting good response from Japan, the UK, UAE, said Goel, who expects the fund to give 25 per cent internal rate of return. “We are getting tremendous response from investors across the board but some of them are currently buying time. They are taking stock of the situation in India. However, they will soon get involved in a 2-3 months time,” revealed Sunil Shirole, managing director and CEO, Yen Management Consultants. “We strongly believe in the fundamentals of the Indian economy and its prospects. So we have no doubt about the success of the fund,” added Goel, who did not rule out the possibility of a mutual fund by DHFL in two years.

Bank of Baroda, a leading Indian public sector bank, has signed a memorandum of understanding (MoU) with Dubai-based real estate company Dubai Properties for financing buyers of the latter’s products in the United Arab Emirates (UAE).
The agreement was signed between Bank of Baroda chief executive for Gulf operations Ashok K. Gupta and Dubai Properties chief executive Mohamed S. Binbrek, according to a Dubai Properties statement.
Bank of Baroda is the only Indian bank offering full-fledged banking services in the UAE.
It has six branches, in Dubai, Deira, Sharjah, Abu Dhabi, Al Ain and Ras Al Khaimah and an electronic banking service Unit at Jebel Ali near here.
In Oman, the bank has three branches and in Bahrain one.

INDIA Real Estate Expo 2008 is showcasing residential and commercial properties in Dallas, TX & Seattle, WA. Expo begins on May 31st 2008, and ends on June 8th 2008.

Horizon Expo recently announced the debut of INDIA Real Estate Expo '08 in DALLAS & SEATTLE. India is reckoned as one of the fastest growing economies of the world and owing to its inherent advantages of a large consumer base, raw material resources, world class manufacturing capabilities, competitively priced talent base, a comprehensive legal & tax system and a strong operating financial system has become a preferred investment and business destination. Real estate, a "sunshine industry" in India, is flourishing rapidly, propelled by strong demand drivers and significant transformations such as deregulation of the sector, increasing transparency and professionalism, improved product quality and service standards etc.

Availability of housing loans to Non Resident Indians (NRIs) has impelled property investment in India. Reserve Bank of India (RBI) has reported that inward foreign remittance has grown 3 folds in last couple of years, and majority of these funds have been used to buy immoveable property in India.

In the midst of all the available property investment options in India, it becomes an extremely difficult task for an overseas investor to perform a due-diligence to find a reliable investment opportunity. Recognizing this particular issue, Horizon Expo LLC, a value-added licensed entity in USA, has announced its 3rd edition of INDIA - Real Estate Expo '08. This exhibition would bring home buyers and real estate developers under one roof, providing the necessary platform to perform a proper due-diligence before making a life-saving worth of investment. Real Estate Developers from Major Indian Cities like Delhi, Bangalore, Mumbai, Pune, Chennai, Hyderabad and Punjab would be showcasing residential, commercial & retail projects at the exhibition.

This would be the third Indian property exhibition that Horizon Expo would organize in United States. Its previous exhibitions held in year 2007 have helped numerous home buyers from San Jose, Los Angeles, New York and New Jersey. FIA has thrice awarded Horizon Expo LLC with Excellence in NRI Real Estate Services. Bangalore's top property developer, "MANTRI DEVELOPERS" is platinum sponsor of the exhibition, a Delhi based realty major, OMAXE is a Gold Sponsor, showcasing an upscale residential condominium project in Ludhiana, Punjab.........


At Maa Properties, we have in-depth knowledge of property markets, extensive experience, specialized skills and resources necessary to provide an entire range of reliable and responsive property management services. No matter how far away you are currently located, our online services enable you to take charge of things and efficiently handle all property-related transactions back home.

We would like to take the opportunity to welcome all the community members living world wide to our real estate portal.(NRI)

Pune-based real estate companies, the Avinash Bhosale group and Kumar Properties, have joined hands to set up a Rs 1,400-crore township in the third phase of Rajiv Gandhi Infotech Park in Hinjewadi here. The project - Megapolis - comprises 5,800 flats, studio apartments and an IT special economic zone.

Pegasus Properties, a 50:50 joint venture floated by the two firms, would develop the project over the next five years. Spread over 150 acres, the township will have all 21-storied buildings.

“Of the total 150 acres, only 20 per cent of the space would be used for construction. We will develop gardens and various other amenities on the remaining land,” Kumar Properties director Manish Jain told reporters. The township will also have special towers for old-age homes.

The first phase of the project would be ready by April 2010 while the entire project is expected to be completed by 2013. The project is coming up under the new township policy enacted by the Maharashtra government.

“We want to promote the walk-to-work culture as most of the prominent IT firms like Wipro, TCS, Infosys, Tech Mahindra are close to this project. We have also created vehicle-free zones within the township,” said Amit Bhosale, director, Pegasus Properties.

Singapore-based RSP architects and Belt Collins International is the architect and landscape designer respectively for this project.

India is about to make a "triumphant return to the centre of the global economic stage" according to Assetz.

As the country celebrates 60 years of independence from British rule, the property investor group has launched real estate investment opportunities through a series of real estate funds and individual properties.

Nick Booker, Assetz India managing director, commented: "Property investment and property prices in India are booming."

Mr Booker noted that the Indian economy is currently growing annually at nine to ten per cent. Consequently, an increasing number of property investors are looking to plough money into the country. Fast growing IT and retail sectors are set to drive up the demand for housing in a number of India’s cities.

According to Assetz, investment in Indian property is currently only available to non-resident Indians and people of Indian origin. It is launching real estate funds in September that are accessible to all investors.

American Real Estate tycoon A Alfred Taubman, who made billions setting up shopping malls across the US, is now eyeing Indian shores.

With organised Retail Market hotting up in the country, NYSE-listed Taubman Centers Inc has initiated talks with private equity funds, including the Reliance Industries-backed Urban Infrastructure Opportunities Fund (UIOF), and Real Estate Developers.

Sources said a Taubman team working in India is exploring opportunities for developing as well as managing Commercial Space in India. The talks centre around forging either a pan-India joint venture with a big fund such as the Anand Jain managed UIOF, or forging multiple regional alliances with prominent developers across leading cities.

It is believed Taubman has been in talks with UIOF for 3-4 months now even though the progress of these parleys could not be ascertained at this point. An email query to UIOF did not elicit a response. In context, it must be mentioned that Taubman Asia was set up recently, with Hong Kong as its headquarters, for expanding in the Asian markets.

Two prominent south-based developers — Prestige Group, which is credited with building arguably one of the most successful Mall Space in India, and Shriram Properties, part of a diversified Chennai-based group — have held early parleys with Taubman. Shriram Properties declined to comment.

Prestige Group V-P (mall development) Neeraj Duggal said: “We have had initial talks with Taubman, but it is too early to comment. They will think of doing much more in India than just bringing in the money.”

Taubman is credited with running some of the popular malls in the US. In 2006, the average annual sales per sq ft in its malls was pegged at $539, making it possibly the most successful firms with respect to turning footprints into revenue. Taubman properties reported an occupancy rate of over 91% during 2006.

Al Fajer Properties, one of the reknowned developers of Dubai said it is in talks with two unidentified Indian developers to form a joint venture for an investment of up to $1 billion (Rs4,100 crore) in Indian real estate. Many developers from UAE are intersted in joint ventures with Indian developers in Indian Real Estate. After US now the prominent developers of UAE and Singapore are showing considerable interest towards Indian Realty Sector.

Al Fazer said it has plans to develop commercial projects, gated residential communities and townships and has been considering locations in Gurgaon, Hyderabad, Gujarat, Mumbai and Chandigarh. It also wants to create a fund for small investors in India to invest in Dubai properties. This is something every indian realtor will be looking forward.

Al Fajer is one of a growing number of Dubai companies showing interest in Indian real estate. It is moving into India despite signs that the real-estate market is softening. Though there is a sort of saturation in the Tier 1 cities but the good news for indian real estate is that Tier II cities started growing with the IT Sector and the industrial sector investing in such places.

“We have been monitoring the Indian real estate and investment scenario for over two years now,” Shahram Abdullah Zadeh, Al Fajer Properties’ chief executive officer, said in an email. “Despite the current fluctuations in the real estate and property prices, our decision to enter this growth market is driven by our confidence in the strong economic fundamentals of India.”

The company did not offer any additional details including funding. Al Fajer currently has a portfolio of more than $1.5 billion worth of projects in Dubai.

Indian and United Arab Emirates firms signed major real estate deals on Monday worth more than $20 billion during a visit by the ruler of Dubai, including plans to build two massive townships in India.

Largest Indian real estate developer DLF said it inked a $20 billion deal with UAE’s Al Nakheel to build two townships in India, with an initial investment of five billion dollars each in the next three years.

A 50:50 joint venture has been signed by the two; DLF and Al Nakheel to develop integrated townships. Construction will begin by the end of 2007, As per an official.

Source: thenews.com

Rising demand for space, strict deadlines, the best possible prices, and a booming industry, this is what anyone will find after stepping in the arena of Indian real estate. This encouraged Indian construction companies and prominent real estate developers to take on software solutions. However, adoption of any modern technology by the real players of the sector at this crucial stage should not come as a surprise for most.

And that in turn has suddenly paved the way for a plethora of opportunities for the software industry. Most pioneering realty firms have taken the assistance of IT in some form or other to strike a difference. Technologies like ERP (Enterprise Resource Planning), CRM (customer relationship management), SCM (supply chain management) and BI (business intelligence) have been helping companies for long. Now, it is a turn of Indian real estate sector to leverage the advantages of same.

Here, it does not mean getting a computer to enter mere entries or managing leg work buy to develop breakthrough technical solutions for project, all by the click of a button. Such software brings a number of benefits, the fact which is wholly accepted by Mfar Holdings, a Bangalore based real estate company, which bought Rs. 15 lakh for realty software jointly developed by Sonata Software and Microsoft. The software SonnetConstruct, helped the company to successfully complete two projects over $1.2 million sq. ft. on time.

Nitesh Estates is in process to finalize a combination of software from Oracle, Wipro, and SAP. The renowned group is to enter new segments like hotels and newer geographies. The existing basic software is inadequate to integrate growing diversity, or to handle the upcoming complexities, says the company’s MD Nitesh Shetty.

Software that is widely used to draft the solutions for such projects. But, a number of real estate players are stepping in realty IT space, including those like Sonata and US-based Aurigo Software. When Sonata pondered over the possibilities of a boom in this sector two years back, it immediately at Microsoft ERP solution Dynamics Axapta and developed on its base line to come up with a solution for the real estate vertical.

Australian real estate consultancy major LJ Hooker, with significant presence in South East Asia through 700 odd franchisees, is foraying into India’s red hot realty market. The Australian company will open its account here with the first franchisee in Bangalore followed by Mumbai.

The entry comes at a time when the increasing participation of foreign investors and multi-national occupiers is driving the demand for expert-advise in the domestic real estate industry. Further, the developers, lenders and investors have also been demanding better transparency in effecting transactions.

The basket of services that the company has in the offering, apart from consultancy, includes a rent-management program and a portfolio management scheme. “Apart from finding a tenant for vacant commercial/residential space, we undertake property management activities like collecting rent on behalf of a landlord, paying his taxes for him, renewing leases, carrying out maintenance work on the property among others”.

So lets see how all this work out