IRONICALLY

Ironically, this time round, panic is playing havoc in the market. fear is after all,
an emotion that stifles talent. of course, the real cause of fear is not the event that threatens
us, but more of what we talk to ourselves about these event these drivers a sensible man to be have stupidy.

india- riding high

There may be uncertainty across the globe due to the economic slowdown but the PE Deal environment in India is looking promising. India’s burgeoning middle class population flash with growing disposable income has generated investor interest in Indian market. The surge in PE investment is the results of whose returns of over 25% to 30% which Indian firms provided to investors Thomson Financial a leading information provider on companies markets and industries world wide, revealed that India has immerge as the hottest PE investment destination in 2007, second only to Japan in Asia Pacific region. 

FINANCIAL REQUIREMENT

Financial resources required for real estate development of all sorts annually for the next 10 years is about $100 bn-Rs 4 lakh cr per year and Rs 40 lakh cr in a decade. While investment of this magnitude is expectede. To solve gaps in housing and commercial space a sizeable share should come from; Equity through Public Issue: Foreign Direct Investement RealEstate investment Mutual fund; Venture Capital; and Bank Loan

Reality Bites in Indian real estate

In recent times no other sector has generated the kind and amount of interest, nationally as well as internationally as the booming realty sector in India has. A surge in demand for 
Resident as well as commercial property has been seen the domestic realty sector record a “super” growth of over 3o% during the past couple of years – a rate hardly any other sector could rival. It is expected to growth at a robust rate of over 8% during the last two years. Countinued growth of I T and ITES industry, a happening retail sector, thrust on infrastructure development and special Economic Zone (SEZs), rising disposable incomes a change in the midest of traditional India middle class towards owning a house and last but not the last, a slew of reform measures that include 100% FDI in construction and serviced land development. No doubt they all have played a vital role in te revival of what was once almost a moribund sector. Against this backdeop, The analysted invited experts to share there perspectives on the sector and related issues.

HEADLINE

The Blyrealstate sector has never had it so good. Indeed, the sector grew up by leaps and bounds in the last few years. Compare with Indian realstate Billions of dollars worth of inv estment were pumped into the sector as investors, local as well as foreigners, chased the :build India story However of late the odds are only adding up against the sector. The mortgage crisis in the us and the subsequent global liquidity crunch and now the growing inflationary to its highest level in decade combined with hardening interest rates, threaten to make the going tough for the domestic real state sector in the days to come amongst the positive are the facts the India need more cities more power plant bridge flyover and roads a lot of infrastructure . What is the ground reality for Indian realty.

BLY Real state - Boom or Bust?

So, is there any bubble in the Bareilly real estate sector ? It is yet to be seen. Every boom, irrespective of the nature of the sector, is grounded on a strong economic sense of demand and supply conditions As the market will remain on a high platform over next few year. Future prognosis take physical appearance and the recuperation is continued further. In this stage, the price rise would be sudden and it draws several speculators who don’t have the staying capability. This improvement takes the shape of a full – blown bubble that breaks at some point, bringing down even genuine players.

Investment opportunities

CHALLENGES AND BOTTLENECKS IN REAL ESTATE SECTOR

Despite the announcements of large-bud-get ambitious projects, the deployment level remained low. Building efficiency was lacking and no attention was paid on creating housing infrastructure for the deprived. Moreover, the sector was encountering big issues

Like tenancy laws, high transaction cost, unclear ownership of titles archaic legislation

And high stamp duty. FDIs (foreign Direct Investment) in real estate have only a small share in the total investment, as there are limitations like a lock period of minimum three years a minimum of 25 acres of land to be developed and conditional exit. These risk factor would probably remain as such in the coming year and should be considered before

Investing in real estate. However the Indian real estate sector does offer immense investment opportunities. Well this is not for opportunistic investor but for core players and those who are trying to boost the returns on their investments. The Indian realstate market lacks transparency. The new players are trying hard to mend the transparency

Quotient, but it’s still difficult to extract consistent and reliable information from the BLYrealestate market.

Bareilly Real State

BAREILLY real estate sector,as we all known, is booming.The influx of number of villege people that players to set up their businesses in Bareilly is further raising the valueof BAREILLYrealestate.So, do speculators and investors inthe BAREILLYrealestate sector have any reason to worry over apprehensions of how a thriving business is going to collapse in the near future?

Currently in BAREILLY, real estate is the most remunerative sector as far as investments are concerned.Two factors are countributing to this boom.The first factor is that investors are staking on the consumption-fueled groth of the BAREILLY economy, which is encompassing glamorous shopping malls,multiplexes,luxury hotels and entertainment centers.BAREILLY may soon open the doors of its retail industry to foreign players and retail giants ljke Wal-mart will give a thurst to the demand for commercial space.

The second, and may be more crucial factor, is India's emergence as a center of global outsourcing.Facilitationof restriction imposed on direct investment in property market in February 2006 is drawing the attraction of theforeigners.Foreign firms can establish their subsidiaries or go far JVs to develop property,provided that they are ready to lock their money for three years and that the land area should be of at least minimum stipulated size.

The BAREILLY property market was always taken as a disorganized sector with a non uniform groth.However, in the past three years, a big chance has been seen in ground rules that drive growth. Property prices are surging, and big cities are not only victims of this huge hike.With the tech boom swamping the nation-more housing requirements andthe growth of economy at the rate of more then 8%-the real estate market is attracting the atttention of private equity players and other real estate gaints from foreign lands to invest in this sector. Moreover, existing andnew entrants in the development business are looking to grab viable and beneficial projects.

Sector leading to Growth:-

The outsourcing boom compelled the service sector to seek more space to cater to growing demands. This, intern, has called the real sector to prosper and flourish. The inventories of corporate expenditure and pay packets in this service sector become heavy, which aided other sector to grow, and led to increasing Housing demands in city. The housing sector got and added fillip and the boom engulfed smaller town and city as well.

In recent years, Housing finance has acquired the shape of a big growth area for commercial bank. Today, as a disposable income of middle class is growing, they are not hesitating to take large loans to finance their houses and apartments.

New financial scheme "Reverse mortgage" have also been introduced to tap the full market potential.