India-Real-Estate.org

For investors interested in investing in Indian real estate, through real estate companies/developers, MarketStar Capital has launched their Indian Real Estate Portfolio

Following is an excerpt from the above page:

The Indian Real Estate industry contributes to between 5-10% of the GDP directly and indirectly, and is therefore a vital part of the Indian economy. Due to the economic downturn of 2008-2009, many Indian real estate companies have excess inventory with them, and some have properties acquired at much higher prices than today’s market prices.

However, the real estate prices are improving across the country and we expect 2010-2011 to consume a sizeable part of the current inventory, and thereby paving the way for good demand-supply competition in 2011-2012, which will be positive for the sector. By 2013, commercial real estate demand is also likely to reach new highs, adding further upside to real estate sector earnings.

Therefore, today in H1 2010, the stocks of many Indian real estate companies are available at attractive prices and real estate investors with 4 to 5 year time frame can benefit by subscribing to this portfolio. The portfolio includes profitable real estate stocks outside the Index, which have healthy balance sheets without excess debt and attractive P/E ratios.

If you can invest with 4 to 5 year timeframe, we believe that the MarketStar India Real Estate Portfolio will outperform the market Index by a big margin.

KK Sharma, ED of Bank of Rajasthan, explains the rationale behind its offer of 7.5 per cent home loan rate-which is one of the lowest home loan rates in India. So if you are looking to save money on home loans, check out the offer from Bank of Rajasthan, which is a 66 year old private sector bank. Their website is: http://www.bankofrajasthan.com

The global financial crisis and the resultant slowdown in the global economy during the year 2008-2009 have halted industrial and business expansion. The subsequent drying up of liquidity has led to an overall slowdown in the real estate sector in India.

There has been sales slowdown across all real estate asset classes: Residential, Commercial, SEZ/Industry Parks.

Demand in real estate has remained grim, primarily due to low consumer confidence. This can be attributed to a weak economic scenario. High levels of inflation led to the government increasing interest rates. This led to the drying up of liquidity available for businesses to expand, leading to a slowdown in the commercial real estate demand. The increase in the cost of finance also led to a drop in residential real estate demand.
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After the super response to Tata Nano, now the Tata group is coming up with Nano homes under the name Shubh Griha, priced between Rs 3.9 lakh and Rs 6.7 lakh.

When and Where? The first township comprising one bedroom-kitchen flats, to be built by Tata Housing Development Company (THDC) will be in the Mumbai suburb Boisar, in Thane district. This housing project is conveniently located within 5 minutes of Boisar railway station and MIDC. Here’s the location map.

This model will be replicated across several metros, tier II and III cities in the country. To learn more, please visit their site: http://www.shubhgriha.com

Various Players in the Low Cost Housing Market: Tata Housing Development Company joins other developers like Puravankara, Omaxe and Housing Development & Infrastructure Ltd (HDIL) that have moved to the affordable housing segment, because that still represents a big market with unmet need. India faces a shortage of 24.7 million dwelling units, with three-fourths of this deficit being in the middle and low-income groups.

The Trend is strong: Others entrepreneurs including Mphasis founder Jaithirth Rao, NGO Janaagraha founder Ramesh Ramanathan and Bangalore based CSC Constructions are also said to be interested into entering this segment and are drawing up their housing projects.