Indian realty updates at a glance
It is recorded that the Index of Industrial Production (IIP) fell 3.5% in March-2012. The market is surprised by this broad slowdown across industry groups as the IIP had expanded by 4.1% in February.
The Union government of India has withdrawn the 1% TDS on transfer of immovable property that was proposed in the Union Budget 2012.
SEBI has replaced the SEBI (Venture Capital Funds) Regulations, 1996. by SEBI- Alternative Investment Fund (Regulation) 2012 to govern the Real Estate private equity funds investment in Indian real estate business.
The new AIF guidelines also restrict the size of the investment to a minimum of Rs.1 cr. from an investor in comparison to Rs.5 lacs earlier.
Realty developer’s holding capacity has strained as funding avenues witness a drastic decline.
The BSE Realty Index has fallen by 14% since the Budget for FY13 was announced while the broader market (BSE- Sensex) fell by 7%
2011 has witnessed a situation of high property prices, high interest rate and low sales. Dismal corporate earnings growth coupled with a weak employment scenario impacted the realty sector in India.
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Source: Money Control
Index of Industrial Production, realty sector in india, SEBI, TDS on transfer of immovable property
