Rupee yesterday hit a 9 year high against the dollar at 40.28 and then closed the day at 40.51. Rupee hit its strongest levels since May 1998 and has been the best performing asian currency this year.
Rupee tested the 40.50 level all of last week before hitting this high. This while alarming for the Indian exporters may help control the inflation and make imported goods a little more affordable for the general public. The effect of this dollar appreciation is very visible in the ornamental gold price in India.
News indicates that TCS, Infosys and Wipro may be making plans to add a currency clause in their contracts to protect against the currency fluctuation.
In a series of steps, the finance ministry is clamping down on the flow or foreign funds into the Real Estate Sector. Government firmly believes that the overseas funds are contributing to the asset bubble in India.
Recently the finance ministry barred those setting up integrated townships from raising ECB ( external commercial borrowings ) and made it difficult for small players to raise such borrowings by lowering the ceiling on the interest rates to be paid on such debts.
Today’s Finmin is proposing to impose FDI status for foreign investments in realestate pre-ipo deals. Anything falling under the FDI guideline will have a 3 year lock in period and the investor cannot withdraw before 3 years. RBI is also trying to identify ways to curb the misuse of funds, by proposing new norms to monitor the use of the funds raised for real estate investments.
Technorati : finance, india, realestate
Business standard published the excerpts of a report by mckinsey on Indian Consumer and it predicts a great future for indian consumers and an explosive growth in indian consumer’s spending..
Now, experts say golden bird will fly again. A report on the Indian consumer market, prepared by the McKinsey Global Institute, points to explosive growth in consumer spending in the next two decades, taking the market to a jaw-dropping Rs 69.5 lakh crore ($1.5 trillion), four times the present size of Rs 16.9 lakh crore.
Mckinsey predicts that by 2025, there will be 9.5 million households with greater than 10 lakhs in income, 128 million households with 2 to 10 laks in income and 93.1 million households with 1 to 2 laks in income. With growth primarily in communication ( 13.4%) , healthcare ( 15.9%) , education ( 11%) , transport (8.3%), personal products (9.2%), housing ( 6%), food (4.5%), apparel (6.5%) etc.
Read more here
Technorati : finance, india
Hyderabad Real estate continues to spiral down in many areas due to low demand for apartments and rentals. Buyers are staying away which is attributed to general negative sentiment and sellers are not wanting to get rid of their properties at low prices. I know of a few cases where buyers have forfeited their hefty advances after sale agreements since they could not flip the land as planned.
DC Sunday Hyderabad Chronicle is gaining pounds everyweek with increased real estate advertising and iI see more and more people trying to use the red listings [ premium listing I guess ]. Too many apartments and houses for rent and sale. Looks like the NRI population is also booking profits in this market and moving to a more stable bank deposit or a conservative mutual fund investment. Reality bites the sellers that have high hopes on their properties as soon as they list their properties in DC or some where else. FM Radio and papers are filled with ads about “Buy xxx yds and get laptop free”, “Buy farm plot and get farm house free” and other interesting schemes.
Kondapur apartments are pretty close to breaking below the 3000 per sqft support level and its going to be a long journey for those who are trying to get 30k in rent for a 1800 sqft apartment. Villa projects in prime projects with large built up sqft are holding and growing in value [ 600 sqyd, 5500 sqft, 3.8 crores etc. ]. With the new hype around villas, I see many folks falling prey to developers who are selling triplex villas in 200 - 250 yds [ in remote undeveloped areas ] at more than 2 crores.. please do your home work before you jump into such projects..
Regal Broadway ( NEW ) : HUDA decided to create a new area called regal broadway near the international airport to host a dozen new start hotels to cater to international passengers. Huda invited private companies to construct a 7 star and six 5 star hotels along with five 3 star hotels in a 150-acre area.
Hyderabad Airport : According to GMR, the developer of Hyderabad International Airport, 70% of the work is complete and its on track to be done by March 2008. I really doubt that the work will be fully complete by then, but atleast test flights will be possible by that time. This seems to be the only project in Hyderabad that is showing some progress so far and will be delivered some time in 2008.
Most conservative investments in India today will yield you upto 11%, do you think that an overpriced 1 crore apartment will give you equivalent CAGR over the next 3 years ?
As always.. Its your money.. Spend it Wisely..
Technorati : hyderabad, realestate
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