Indian property market

In 2015, festive season or special Diwali celebration session in Mumbai comes with many surprise gifts from PM Narendra Modi as he relaxed the norms and regulations for foreign investment in Indian real estate sector. This year home buyers are discouraged by the rumors that real estate builders are unlikely to run out of money.

Since the opening of the market, government restrictions was preventing the global investors from putting their money in small and mid size construction projects, whereas; for global investors it was also tuff to make the exits of their money, but this festive season Indian government settles all restrictions with a stroke of a pen. Now global investors can invest their money even in completed commercial property projects as earlier they were not allowed to do that. After new rules some imported brands will be able to set up their own stores and in that Indian shopping malls will be proved as more valuable assets in near future. If like this PM Modi is going to respond every time after losing elections, so investors will gladly wish him more defeats.

Cash strapping Indian real estate developers aren’t complaining about the investment policies and foreign investment regulation, which announced at the evening of Tuesday. Now Indian real estate developers can redevelop small projects with more luxury and facilities at the centre of the city with foreign equity. In past due to rumors that Indian real estate builders are unlikely to run out of money, many home buyers get discouraged from investing in the market. In present, purchasers have no idea that when they will get the possession, however in top six cities there are more than 70% of unsold homes which are getting delayed by east 18 to 24 months for completion due to lack of funds, as per the reports of Rising Straits Capital Management, a private equity firm located at Singapore and has invested $1 billion in focused Indian real estate and infrastructure sector.

However; it’s clear that access to foreign money will not repair the financial foundations of builders because intolerably high cost of capital is meaningless until the domestic banking system becomes more confident about lending money to Indian builders. But it is expected that this new investment policy will at least stem further rot. Liquid, income generating real estate sector is ready to attract new foreign investment because of family offices of wealthy NRIs. However; in India US and Australian property projects are offering return of 14 to 15 per cent, but still its hard to get real estate funds in less develop Indian market at least then when annual depreciation in of rupee is about 5 to 6 per cent. It is expected that in coming year’s Indian property market will emerge as a viable asset class for global investors. Whereas; real estate investment trusts can speed up the process of construction in India.

Chhota Rajan

In present ED and CBI both are focusing on the criminal cases of Chhota Rajan. Now it’s time when Enforcement Directorate (ED) and Central Bureau of Investigation (CBI) should investigate the assets and investment of Chhota Rajan in different parts of country.

According to reliable sources, investigating team of CBI would have a word with Mumbai Police about their findings and other data about the assets and investment of Chhota Rajan in Mumbai, abroad and other parts of country. However; according to sources Chhota Rajan owns property in Indonesia, China, Malaysia, Zimbabwe and India. According to one of the CBI officer, we would grill Chhota Rajan on his assets and investment once we will indentify his properties and after that we will contact the Enforcement Directorate to take appropriate action and initiate further proceedings in this regard. At that time CBI is expecting that Chhota Rajan will prove to be a mine of information about the underworld.

According to sources of Mumbai Police, apart from extorting builders, Chhota Rajan also had interest in the real estate properties and due to that he have invested in many properties in Mumbai and aboard. According to CBI officer, “it has come to our notice that from past few years, Chhota Rajan has been showing his interest in the real estate of Mumbai and due to that he have involvement in grabbing of land and settling land disputes in exchange of money and partnerships with builders in projects. In most of the cases he prefer to take 2o per cent partnership with real estate builders whereas; in some of the cases he had even financed the projects.