photo credit: woodleywonderworks

Indian developers are already switching to more mid-market schemes while pressing the government for a market capital injection, a research firm has said.

Cityscape Intelligence said many builders are

“beginning to change their business strategy”

as the real estate market slows.

Pressure is also growing for lower interest rates to benefit developers, property investment professionals and end users.

Cityscape questioned experts on the affordable housing issue ahead of the Cityscape India property exhibition, being held in Mumbai from December 8 to 10.

Graham Wood, exhibiiton director, said:

“It has been said many times before - the demand for low cost affordable housing in India is undeniable. However prices need to be realistic to begin with and mortgages affordable as well.

“Sentiment could be the only stumbling block, which if removed could energise India’s entire real estate sector.”

Although India’s property market has experienced a recent slump after several boom years, it is widely thought a revival is on the cards in future.

The country still has a huge new homes shortage, but a squeeze on lending and inflated prices have stalled transactions.

Cityscape India, held at the Bombay Exhibition Centre, will feature the world’s top property consultants and developers and will involve display stands and speeches.

Donald Trump junior will speak at the event, as will Kumari Selja, Indian minister of state for housing and urban poverty alleviation.

Investment opportunities can be found in the troubled US real estate market, a Donald Trump-backed expert has said.

David Lindahl, an American property guru, said buyers should not wait until the market is excelling again if they want to make a successful investment.

Mr Lindahl made the comments as he launched a new book which is part of a series endorsed by US entrepreneur Donald Trump.

Commercial Real Estate Investing 101 is part of the Trump University series, a range of books and online courses for budding investors.

Mr Lindahl said:

“Most investors buy once the market is on the rise. They buy after they’ve seen others succeed. By then it’s too late.”

He added buying at the right time “is the key to success” followed by learning how to increase the value of a real estate investment quickly.

Lindahl’s book also covers how to raise finance via building up a team of investors and examines how best to research and locate markets.

Having started out as a landscaper, Lindahl has gone on to invest in more than 560 properties and has taught investment tactics to budding entrepreneurs across the US.

photo credit: snotch

Middle eastern property investment experts could look to Libya after a report suggested the state is set for a huge growth period.

Research firm Frontier said 25 large-scale projects are either under construction or at the planning stages in the capital Tripoli.

The company has produced a unique study on the country, interviewing developers, officials, investors and estate agents.

The result is what Frontier says is the first “off the shelf” study of the Libyan real estate market.

Frontier said: ”

With Libya emerging from years of isolation into one of the most exciting prospects in the middle east-north Africa region, the country has already attracted interest from a number of regional developers.”

It lists Hydra Properties and Al Maabar as two UAE developers already looking to make a move in the country.

According to the report, demand for property in Lbya is outpacing supply in virtually all sectors of the market.

Local incomes are on the up and the private sector is experiencing a surge, driving up interest in new residential units.

Libya has also been on a drive to improve its relations, having been removed from America’s state sponsored terrorism list in 2006.

It is also a non-permanent member of the UN Security Council, having been voted on in 2007 in what was seen as a landmark moment for the state.

photo credit: Thompski

More must be done by the government to effectively boost the UK real estate market, property professionals have claimed.

The National Association of Estate Agents (NAEA) said a survey showed more than half of estate agents have “no confidence” in current government policies.

They called for a total suspension of stamp duty and a further cut in interest rates to help kick start the housing market.

Sellers have already started to cut the asking prices of homes for sale, the research also showed.

NAEA president Chris Brown said:

“Sellers are beginning to face up to the reality that their houses are not worth as much now as they were 12 months ago.

“They are ripping up last year’s price tags and beginning to come to terms with the new economic reality.

“That is a difficult thing to do - but the silver lining is that the market is now more transparent for buyers.”

He also said prices are now becoming “realistic” which could provide a much needed boost and spark sales.

Earlier this month The Bank of England cut interest rates by 1.5 per cent in a shock reduction.

In September the government also unveiled a 12-month holiday on stamp duty property tax, but only for homes worth up to £175,000.

photo credit: World Economic Forum

Indian property prices must fall further before transactions climb again, the head of a firm with investment property interests has claimed.

Adi Godrej, chief of the Godrej group of businesses, said the country had already seen a correction in prices.

He made the comments while at the World Economic Forum India Economic Summit in Delhi, which ended yesterday.

The Godrej group’s interests include construction, electronic goods and office equipment besides real estate.

According to Bloomberg, he said demand for consumer goods in India is still “reasonable” despite a decline in the demand for things like housing prompted by an economic slowdown.

At the high-profile summit finance experts also said India needed a reform of its monetary system if it was to take advantage of the global cash crisis and become a bigger economic player.

Vikram Akula, chairman of SKS Microfinance, noted the vast majority of India’s poorer people still have no access to bank lending.

He said a way would have to be found to give poorer people access to borrowing if the economy was to realise its full potential.

India also has the opportunity to become a financial hub, said Stuart Popham of UK firm Clifford Chance, as it is a country in which foreigners are looking to invest.

photo credit: woodleywonderworks

US government officials have unveiled one of the biggest shake-ups in home loan rules in 30 years which could see some property investment novices saving hundreds of dollars.

The Department of Housing and Urban Development (HUD) said lenders and mortgage brokers would have to provide buyers with a ‘Good Faith Estimate’ (GFE) identifying loan terms and costs.

The reform is part of a final set of changes to the Real Estate Settlement Procedures Act (RESPA).

HUD said this move alone could save some property buyers as much as $700 in the closing costs of mortgages.

HUD secretary Steve Preston said:

“It has been a long road but today we can finally announce a better way to buy homes in America.

“Consumers need and deserve to know what they’re getting themselves into before they sign on the dotted line.”

Officials also said millions of Americans “simply don’t understand” the small print of their own mortgage agreements and this was at the heart of the current home loan crisis.

However, the power of the new rule has come into question, with the Wall Street Journal reporting officials admitted they do not have legal power to crack down on lenders who ignore it.

New laws would be needed to give HUD these powers, but the Journal also said officials believe state and federal regulators and the threat of being sued could make mortgage providers obey the changes.

photo credit: Jay Tamboli

Dubai’s real estate market could see a price correction followed by a rise in transactions, property developers have said.

The emirate has seen a wobble in market confidence following reports values have stabilised and demand has slowed.

Last week one of the biggest builders in the middle east, Emaar, introduced a new payment plan for buyers of its property in order to spark fresh demand.

Ryan Mahoney, managing director of real estate firm Better Homes, has said prices could fall followed by a bounce back period.

Quoted by Gulf News, he said:

“I’m doubtful whether transactions will rise to previous levels in the next six months. But people will have a sense of prices falling.

“Then they will stop falling and start to grow again. It may take more than a year.”

According to the site, Mr Mahoney said the number of deals completed in November is similar to the number which went through in January, before the collapse of financial markets and the arrival of a global lending squeeze.

Gulf News also reported a survey of more than 170 Dubai estate agents, with around 77 of those questioned believing the current problems faced by the Dubai real estate market would be solved in six months.

photo credit: DeepBluC

A record number of UK property owners are entering the rental market and becoming landlords, according to new figures.

Some property investment professionals began renting property as the market stalled and brought down the value of their assets.

The Royal Institution of Chartered Surveyors (RICS) said 68 per cent more of its members were reporting a rise as opposed to a fall in the number of new instructions to let houses.

Fifty per cent are also recording a rise as opposed to a fall in the number of flat owners looking to rent out their properties.

RICS spokesman James Scott-Lee said:

“The lettings sector has witnessed a boom in 2008 as sales in the housing market continued to slow.

“Many have been able to take advantage of rising rents to secure good returns.”

However RICS added the rental market has become more competitive as a result of the increase in stock.

As a result there is an “inevitable downward pressure” on rents where supply has grown to match demand.

However, Mr Scott-Lee said yields may increase for landlords providing they had the right product for the right market place.

London and the Southeast are the areas where rents appear to be falling in the greatest numbers, RICS figures show.

photo credit: Swami Stream

Opposition is growing to a plan to re-jig the way some Indian properties are assessed for tax, with owners rounding on local government officials.

A row has broken out over a proposed location-based classification of homes in Bangalore, which residents say is too similar to a scheme previously held back due to unpopularity.

A number of activists are opposed to the change, saying it is too similar to the Capital Value System (CVS) which would have imposed a duty on homes based on their values.

The Citizens Action Forum (CAF) says the new criteria would see an increase of 20 per cent on property tax in the area.

The Times of India said critics claim the new plans are “old CV’ wine poured into a revised SAS (Self Assessment Scheme) bottle”.

Real estate market players and end users are calling for a public hearing and consultation on the issue, proposed by the Bruhath Bangalore Mahanagara Palike (BBMP), which organises property tax in the area.

The proposed legislation reads:

“The property tax shall be levied by the by resolution

passed as specified in section 106 at such percentage not being less than 20 percent and not more than 25 percent of the taxable annual value of a building, vacant land or both.”

The law would come into force from “such date as the State Government may, by notification, appoint”.

CVS rules for property tax have been applied in some regions but were held back from Bangalore after stiff opposition earlier this year.

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Dozens of property investment apartments are to form a section of an ambitious planned addition for the skyline of a US city.

The 53-storey project in Atlanta, Georgia will be part hotel, part residence, and will become one of the tallest buildings in the state.

Developed by Tivoli Properties, the scheme will be managed by the Mandarin Hotel Group when complete in 2009.

Sales opportunities will be open to the public from Spring of that year, Tivoli added.

Scott Leventhal, chief executive of the company, said:

“This development promises to become a new city icon. It will not only play an important role in the continuing renaissance of the midtown area, but will also be the crown jewel of the ‘Midtown Mile’.”

A total of 71 units will be up for grabs in the project’s top floors, and residents will be able to take advantage of services offered by the hotel, including concierge and room service.

A deal is also being offered to the first 30 people to reserve a property in the building, allowing them to select finishes in the apartments – the firm says 19 of these have already gone.

Atlanta is one of America’s fastest-growing cities, with its metropolitan area growing by 20.5 per cent between 2000 and 2006.