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HOUSING
HOUSING
NEWS
New housing projects Simplified FDI norms to take out more money from
slashes cost up to 20% in real estate
3 metros Real estate companies are expected to Taking an average investment cycle of
raise more money from private equity eight years, these funds will have to be
The report by property consultant funds in 2016 than last year after gov- deployed in next four years, which
Cushman & Wakefield had stated ernment simplified foreign direct in- means at least $1 billion will have to
that developers in certain micro vestment norms for the sec-
markets of metros like Delhi-NCR, tor last year. be invested in 2016," said
Mumbai and Bengaluru witnessed a Rajashri Datta, asset man-
drop of 4-20 per cent in launch prices Experts say PE investments in agement lead, Acquisory
of residential projects in 2015 over real estate could even surpass Consulting, an M&A advisory
the previous two years. the $4.8-billion fund infusion and asset management firm.
seen in 2015. While the way PE invest-
As per the study the metropolitan cit- ments are structured could see a Experts say the additional $1 billion
ies of Delhi-NCR, Mumbai and change, the money is set to be invested that could be invested in the sector is
Bengaluru recorded a drop in launch in selected cities and projects, they say. over and above investments made by
prices in high development activity PE firms which are already sitting on
markets of these cities and new residen- "Anywhere between $3 billion and $4 funds. However, the way investments
tial projects in select micro markets are billion are either raised or close to be would be carried out in 2016 is likely
cheaper by 4-20 per cent on average. raised by funds that are real estate to be different from what has been
focussed. happening in past few years.
The report tracks the development
activities in locations of Dwarka Ex- Federal Bank's special housing loan for Chennai
pressway, New Gurgaon Southern Pe-
ripheral Road Sohna, Noida Express- affected
way and Noida Extension in NCR,
Thane, Goregaon and Malad in Federal Bank has launched a special housing loan 'top-up facility' in Chennai for
Greater Mumbai, and south-west and houses that have been damaged in the floods
southern sub-markets in Bengaluru. of December.
The suburban location of Mumbai's The existing home loan borrowers of the bank
Gurgaon registered the biggest decline in Chennai region can avail themselves of top-
in average weighted basic sale price at up loans up to 50 per cent of their housing loan limits subject to a maximum of
20 per cent, where the per square feet Rs. 25 lakh. Other bank customers can get the top-up facility if they shift their
rate averaged at Rs 10,500 per feet housing loans to Federal Bank. Apart from a processing fee waiver for this loan,
rate in 2015, followed by Thane which other features of the scheme include faster processing, attractive rate of inter-
saw an 18 per cent decline. est, and longer repayment tenure of 10 years.
16 | 2016 | FEBRUARY | BANKING FINANCE
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