Realty stocks edge higher as SBI, HDFC cut home loan rates
Dec 21, 2013
Source : Business Standard


MUMBAI: Ten realty stocks were up 0.6% to 20% at 15:19 IST on BSE after State Bank of India and HDFC on Thursday, 19 December 2013, cut home loan rates.

Anant Raj was locked at 20% upper circuit at Rs 65.30, HDIL (up 5.93% at Rs 50.90), Peninsula Land (up 4.55% at Rs 40.20), Indiabulls Real Estate (up 3.21% at Rs 67.45), Phoenix Mills (up 3.02% at Rs 227), DLF (up 2.74% at Rs 163), Unitech (up 2.68% at Rs 15.30), Oberoi Realty (up 1.79% at Rs 225), Sobha Developers (up 0.83% at Rs 305) and Godrej Properties (up 0.6% at Rs 166.50) edged higher.

The S&P BSE Realty index was up 2.77% at 1,406.48. The realty sector index outperformed the Sensex, which was up 1.83% at 21,091.04.

The BSE Realty index had outperformed the market over the past one month till 19 December 2013, advancing 0.92% compared with the Sensex's 0.87% fall. The index had, however, underperformed the market in past one quarter, declining 0.62% as against Sensex's 0.3% rise.

A day after RBI governor Raghuram Rajan decided to hold rates, SBI on Thursday, 19 December 2013, slashed home loan rates by up to 35 basis points for new borrowers and has unveiled a further discount of 5 basis points for women customers. Loans of up to Rs 75 lakh would be available to fresh borrowers at 10.15% against the existing rate of 10.50%. For women borrowers, the rate of interest after an additional concession of 0.05% would be 10.10% for home loans of up to Rs 75 lakh. With regard to loans of above Rs 75 lakh, the new rate would be 10.30%. For women borrowers it is 10.25%.

HDFC, meanwhile, said that it has launched a "Winter Bonanza" for home loan customers effective Friday under which loans up to Rs 75 lakh will be available at 10.25% as against 10.75%. The mortgage company said that the new rates are valid for all new applications submitted before 31 January 2014.

The reduction in home loan rates by these two major lenders could lead to a revival of interest in the real estate sector, which has been hit by high prices amid a sluggish economy. Purchases of both residential and commercial property are largely driven by finance.

Latest Realty News

BDA: 146 unauthorized layouts have sprung up at TG Halli
Dec 21, 2013
BANGALORE: The BDA on December 17 informed the Karnataka high court that 146 unauthorized layouts have come up in 23 villages in Tippagondanahalli reservoir zone – III area, 1km on either side of the Arkavathy river.
Panel to monitor action on TG Halli encroachments in Bangalore
Dec 21, 2013
BANGALORE: The Karnataka high court on December 18 constituted a seven-member special committee headed by V Umesh, additional chief secretary, to monitor action on encroachments in Zone-III of Tippagondanahalli reservoir (TGR) catchment area.
Mid-range and budget homes market expands in Bangalore North
Dec 21, 2013
BANGALORE: In the early 2000s, Bangalore north beyond Anandnagar was still largely unexplored. Vast tracts of barren land laden with trees lined the highway leading towards Andhra Pradesh, and the only known landmark in the area was the Devanahalli fort. The relocation of the airport brought the north into focus and over the last five years, residential property development has taken off, with a host of housing options coming up in this region.
Developers’ goodwill connects well in redevelopment of Mumbai
Dec 21, 2013
MUMBAI: A look at the changing face of the redevelopment segment in Mumbai suggests that it is the developers’ goodwill that connects better in this segment rather than any clout whatsoever. Analysts maintain that redevelopment is an inevitable reality in the city’s development and its perception is definitely seeing considerable improvement. People have also started realising that it is the only efficient method to transform the city’s graph. Planned redevelopment enables the maintenance of ass
Residences in posh areas turn business houses in Hyderabad
Dec 21, 2013
HYDERABAD: Though unauthorized conversion of residential properties for commercial exploitation and illegal constructions are unabated in up-market areas like Jubilee Hills and Banjara Hills, the Greater Hyderabad Municipal Corporation (GHMC) seems to be turning a blind eye.
Office space absorption down 25% in 2013: Cushman & Wakefield
Dec 21, 2013
MUMBAI: The total net office space absorption recorded a 25 per cent decline across top eight cities over the last year at 23 million square feet (msf), according to the annual estimations by global real estate consultancy Cushman & Wakefield.
Vedic Realty to invest Rs 2,500 cr
Dec 21, 2013
KOLKATA: Kolkata-based Vedic Realty Pvt Ltd plans to invest nearly Rs 2,500 crore for setting up an 18-hole golf course, with an integrated IT township. The investment will be through 25 per cent debt and 75 per cent equity.
Public Private Partnership: Bridging the gap
Dec 21, 2013
DELHI: Public Private Partnership (PPP) broadly refers to long-term, contractual partnership between the public and private sector agencies, specifically targeted towards financing, designing, implementing and operating infrastructure facilities and services that were traditionally provided by the public sector. PPPs are therefore “cooperative venture between the public and private sectors, built on the expertise of each partner that best meets clearly defined public needs through the appropriat
‘Walk Score’ gaining importance in Pune real estate
Dec 21, 2013
PUNE: Abroad, a new trend of evaluating neighbourhoods by their ‘walk score’ is being seen among home buyers. The idea behind this is simple and in fact is the very basis of that favourite real estate mantra ‘location, location, location.’ And it has great pertinence for the Pune real estate market as well.
Where to look for affordable homes around Mumbai
Dec 21, 2013
MUMBAI: Mumbai, India’s commercial capital and one of the most thriving city, pulls in hundreds of people from all over the world with education and professional opportunities. Everyone comes here with a dream of owning a small space and feel one with the surroundings. But the reality is that owning a home in Mumbai is a distant dream for many looking for property within Rs 20-35 lakh, thanks to the skyrocketing property values.

Latest Realty News Of State

Realty Talk's