Monday 30 September 2013

Contribution of Infrastructure for our Nation

CII’S 4th Regional conference on Infrastructure Project Management was inaugurated in Delhi by EM Sudarsana Natchiappan, the Minister of State for Commerce. The knowledge partner for the conference was CBRE.
In the Inauguration Dr. Natchiappan stated that for the development of infrastructure in India, the government has to focus on it and should give importance to infrastructure for the sustainment of economic development.
Over the years India’s economy is getting better and bigger. It is estimated that Asia’s 3rd largest economy will be the world’s 3rd largest economy by 2050. Dr Natchiappan says, that ports to airports, road ways to air ways, power production facility is the key for the development of the nation.

Dr Natchiappan spoke about the Act which was recently passed i.e. Land Acquisition Act, Food and safety law and Company Act and its importance. He says infrastructure should be in a continuous way in and around the globe.

He ensures that Government says there would not be any rapid growth due to high environmental cost and the infrastructure projects plays a key role for the success of the green growth.

Dr Natchiappan suggested for the smooth run of the process for both the managing teams of skilled resources and for the demanding customers. He says that there should be regular information about the project deliveries and communication, which gives better chance of success and the project deliver. He says Motivation and Empowerment is a key for effective leadership.

Dr Natchiappan came to conclusion saying that for the sustain growth, India should develop good infrastructure so that there would be a qualified and social labor. For the visible supply chains there should be clear information for decision making.

Therefore development of infrastructure has achieved a high gain over the last few years. In-fact the contribution of infrastructure and real estate industry always plays vital role in GDP (Gross Domestic Product) of the country.

Tuesday 24 September 2013

Marginal blow on rate hike being experienced by Bangalore Realty

Bangalore is one of the Top cities for attractive real estate investment when compared with New Delhi, NCR, Mumbai and Hyderabad.  People across the country prefer this city to be their home town for many reason like globally known IT hub, favorable climate condition, greener scenarios and multicultural environment. Many IT professionals and business class people are interested to invest on a property in Bangalore

Currently Reserve Bank of India (RBI) has hiked repo rate to control economic fluctuation in the country. It is badly impacted to the loan systems of many banks especially to home loans. The real estate market across many cities of India has affected by this hike. People lose interest on purchasing the properties. Many realtors and builders feel unsecure with their business in the coming days. Again the economic slowdown in the country has also impacted on real estate customers.

Despite all the difficulties in the Indian economy, Bangalore’s real estate market shows constant performance as before. According to Confederation of Real Estate Developers' Association of India (CREDAI) Bangalore President C N Govindaraju, RBI repo rate hike has no major impact on Bangalore real estate market.  He said that metro cities like Mumbai, New Delhi, NCR and Gurgaon have seen slowdown where normally real estate market is on overheat.

People believe in the quality of properties in Bangalore as it is a fast developing city. Industry officials say due to depreciation of Rupee value against dollar, NRIs are interested to invest in Bangalore.  They are pumping their money into the real estate sector in the country for a better return in the future.

Tuesday 3 September 2013

India to be 3rd Largest Construction Market on 2025

‘Global Construction Perspectives and Oxford Economics’ in a recent study envisaged India to occupy the 3rd position among world’s largest construction market by 2025, with 11.5 million homes being added per year to reach a $1 trillion a year market. IndiaMART Knowledge Services (IKS) through their survey among SMEs within the building and construction sector, attempted to analyze the current business scenario, tallying the parameters like employment, future sales scope and barriers to growth.

The study revealed that though economic conditions remained unstable, almost 60% of the SMEs in the sector have witnessed improvement in their business operations during the last year. With this growth pattern, over 46.9% of SMEs are looking forward to a bright future and expecting improved sales between 0-20% led by regular inflow of demand.

The key findings by IKS can be highlighted as:

Business Operations: Corporate growth saw an increased hiring of employees by 46.1%, while sales growth counted to 56.1% and 51.5% increase in production capacity.

Orders: Respondents accounting for 44.6% received orders exceeding the worth of Rs. 25 lakhs.

Export: Not much changes happened in the export front, which remained stagnant at 44.6% of SMEs for the year 2012. While little improvement was cited for 27.7% SMEs, same percentage experienced decline in demand too.

Challenges: For more than 40% SMEs limited availability of finance was a major challenge. Approximately 27.7% feel increase in steel and cement prices as an obstacle to their growth and 16.9% find lack of trained/skilled manpower as an area of concern. Only 12.3% found improper infrastructure as a bigger challenge that they faced in the past 1 year.

Again, India has to meet the demand of homes as per the population growth and this will influence the  investment in property businesses.