The crisis in the international economic scene is bound to have its repercussions in the State economy as well. The NRIs, the export and import-based companies and the real estate sector may suffer if the global economic meltdown continues. The NRIs will have to share the burden of measures being implemented by their host countries to ward off the crisis. The result will be a slowdown in the remittances from abroad which is likely to affect a spectrum of activities in the State. The boom in the real estate sector was driven by the money supply in the market.

The soaring prices in the real estate and the rise in construction activity had been supported by the steady arrival of foreign remittances. The real estate sector grew to new heights as cities like Kochi started implementing infrastructure projects like the Vallarpadom transhipment terminal and LNG terminal. It was the NRI segment that sustained this growth. A meltdown in the real estate sector would mean that the sale of the building materials would decline, resulting in a fall in the tax revenues to the government.

The large number of migrant labourers currently employed by the construction sector would become redundant and they would be forced to return to their native States, according to real estate managers. The global crisis might affect the lives of Keralites too, said State Planning Board Vice-Chairman Prabhat Patnaik at a recent meeting in Kochi. The recession could affect the farmers of Wayanad if they do not get remunerative prices. The slowdown in the U.S. economy had hit several financial and IT companies with business links in the State.

Property developers are looking towards real estate funds as funds from banks and capital markets have become difficult to access. This year, only 42 companies have raised Rs 19,396 crore through initial public offerings - and more than half the amount was garnered by Reliance Power Ltd alone. As a result, realty funds are virtually the only source of raising large amounts of money for real estate companies. Consequently these funds are calling the shots and getting a better deal for themselves. "While the risk is entirely borne by the developer, the first returns come to the fund," said Mr. Ramesh T. Jogani, Managing Director and Chief Executive Officer of Indiareit Fund Advisors Pvt. Ltd, the real estate fund division of the Piramal Group that has $450 million (Rs 2,191.5 crore) under management across three funds. He added that the new deals also ensure the developer does not use the capital to 'cash out', or pay for the land that he has previously bought. Rather it's used to fund the development of the project. Besides Indiareit, other large domestic entities include HDFC Property Fund, ICICI Venture Funds Management Co. Ltd's realty fund and Kotak Realty Fund.

Film actor, Mr. Shah Rukh Khan has announced the launch of his real estate development, Shah Rukh Khan Boulevard, which is to be located in the emirate of Ras Al Khaimah in the United Arab Emirates (UAE). The 8-billion Dirham ($2.2-billion) development will come up on Dana Island off the Ras Al Khaimah coast and will comprise studio and one and two-bedroom apartments. "I have a strange fetish for home. It's close to my heart," Mr. Shah Rukh Khan said. The project will be designed by a well-known architect, Mr. Toni Ashai and it will also comprise an underwater discotheque, a public square on the beach and a theatre. The development will cover three million square feet. The film star has associated himself with the project through TSA International Investments, a leading real estate financial consultancy in the UAE.

Investment by NRIs in India can be broadly classified as investment on repatriation basis and on non repatriation basis. Repatriation basis means the income/dividend/ interest earned from the investment and the sale/maturity proceeds of investment can be repatriated outside India at any time or can be credited to NRE account of the investor subject to deduction/payment of Income Tax.

Non repatriation basis denotes that the amount invested and its capital appreciation will not be allowed to be repatriated. However, the interest/dividend/income earned may be permitted to be repatriated/credited to NRE account of the investor, subject to terms prescribed by RBI.

Investment on repatriation as well as non repatriation basis is permitted in the following categories.

Government dated securities (other than bearer securities) /treasury bills.

units of domestic mutual funds.

bonds issued by a public sector undertaking (PSU) in India.

shares in Public Sector Enterprises being dis-invested by the Government of India, provided the purchase is in accordance with the terms and conditions stipulated in the notice inviting bids.

shares and convertible debentures of Indian companies under FDI scheme (including automatic route & FIPB).

shares and convertible debentures of Indian companies through stock exchange under Portfolio Investment Scheme.

(1) Other Investments on non-repatriation basis:

units of Money Market Mutual Funds in India.

Deposits with Indian companies (including non-banking finance companies registered with RBI), or a body corporate created under an Act of Parliament or State Legislature or a proprietorship concern or a firm in India.

These deposits shall be only by debit to NRO Accounts and shall not represent inward remittances or transfer from NRE/FCNR(B) Accounts into the NRO account.

the capital of a firm or proprietary concern in India, not engaged in any agricultural / plantation activity or real estate business.

Exchange Trade Derivative Contracts approved by SEBI

(2) Immovable Property

NRIs and PIO can acquire immovable property in India other than agricultural/plantation property or a farmhouse.

NRIs and PIOs can repatriate sale proceeds of immovable property acquired in India –

(Immovable property acquired out repatriable foreign funds) to the extent of repatriable funds paid for acquiring the property, without any lock-in period. In case of residential property, the repatriation is restricted to two residential properties. (Immovable property acquired out of rupee funds) to the extent of USD 1 million per calendar year out of balances held in their NRO account, with a lock-in period of 10 years.

NRIs/ PIOs can also repatriate-

1. refund of application/earnest money/purchase consideration made by house-building agencies/seller on account of non-allotment of flats/plots/cancellation of booking/deals for purchase of residential/commercial properties, together with interest, net of taxes, provided original payment is made out of NRE/FCNR(B) account/inward remittances.

In all the cases of direct investment the concerned investor company has to take the necessary permission from Reserve Bank of India wherever required and in view of this the investor need not seek RBI approval.

As per a recent survey, the Middle-East real estate market could outperform all other regions over the next two years. The study, conducted in conjunction with the ongoing Cityscape Dubai property event, pooled the views of more than 350 developers and property investment businesses. Jones Lang LaSalle’s ‘Investor Sentiment Survey’ is the first of its kind for the region and was hailed as a 'critical benchmark' by analysts. Key findings from the report showed more than 50 per cent of respondents thought the real estate market in the Middle East will see the strongest performance of any global region in the next 12 to 24 months. The Asia Pacific area, including India and China, also got strong backing with more than 20 per cent of professionals saying it will be the best performing region. Investors were less enthusiastic when it came to Western European property investment potential, with only three per cent of those polled expecting this to be the strongest performing region.

Real estate firm, Tata Housing Development Company, has signed Kapil Dev for endorsing its residential project 'Raisina' in Haryana. The project is being developed by Tata Housing in partnership with Raheja Developers in Gurgaon. The construction of the 11.73 acres high-end residential project is going on with an estimated investment of about Rs 500 crore. Speaking about his association with the project, Mr. Dev said: "I am very privileged to be associated with Raisina Residency and Tata Housing. I am glad that they have announced this project in my homeland Haryana and would like to lend my complete support to their premium and luxurious offering."

Realty has seen a sharp slump and this has sent the world economy into a dizzying cycle, the question on everybody`s mind is . Is it time yet to invest in Real Estate? The simple rule across all investment markets is `Buy low; Sell high`, it holds good even in the Real Estate market. But what one waits for is the cycle to bottom out which will enable us to buy at the lowest point, this could be crucial as one could often miss the same. Especially in case of Real Estate where the trend reversal would happen in leaps and bounds and the cycle is long term, the trend reversal could mean significant opportunity loss.

Current Market Scenario

According to a survey made by The Associated Chambers of Commerce and Industry of India (ASSOCHAM), real estate boom will further roll down in 2008 and it is only the beginning of a mega fall which is awaited. In the year 2007, this sector was key in contributing to the phenomenal growth the GDP, the sector alone notched between 40-45% growth. The Chamber is also of the view that India has already emerged as the 5th world`s largest investment destinations globally because of its market and potential which is made up of India`s population base. These facts are contradictory by nature and hence could be misleading, but one needs to understand the Real Estate as an investment needs to be looked at with a 5 - 15 years perspective

This is simply indicative of the fact that not all is over as yet, and the current slump could well be a silver-lining for a person who is contemplating an investment. However, it could well be a bad news for one who has already made the investment right at the peak and could end up sitting on a pile of book losses; this would be a bad situation especially in the real estate market, given that the market cycle in this case is relatively of a longer period.

Trend over the years

The era of Nineties witnessed frenzied boom in residential property on the back of a booming stock market and a liberalization process that was kicked off in 1991. The stock market and real estate market crashed in quick succession between 1994 and 1995, real estate cycle inherently prone to the longest market cycle, it took a whooping 8 years of little or no appreciation in real estate. Biggies like Donald Trump saw major wealth being eroded, this was an era where the myth that real estate never slumps was shattered. There are many analysts drawing stark similarities in the current scenario. In fact globally realty has led the way in sending the other key economic indicators into a whirlpool of turmoil.

On an average Real Estate sector is instrumental to the development of 269 other industries and hence, could have an impact on the overall economy as well. This in turn leads to lower demand for real estate compounding the impact.

Final word

Real Estate can be viewed in multi facets; one can buy real estate (Residential) for staying or from a mere investment perspective. The downtrend is very likely and on an average the turnaround could take a couple of years`. This simply means that there is about 12%-15% correction well within the lap of current real estate scenario, this is indicative that there is time left for the cycle to bottom out. The impact in India is not expected to be as significant as it has been in the rest of the world where prices have corrected up to 50%.

Real Estate from a residential property (for self-stay) perspective, need not categorically be timed. One can go ahead with the stipulated plans over the next few months, considering the tax benefits that one also has and the real need that one has. However, real estate from a purely investment perspective can be stalled for next couple of months, and invest if the market falls. Considering the turmoil, a fall if any could happen over the next 3 months.

If one is considering Real Estate from an Investment perspective .We suggest a Wait `n Watch approach! The period could be about 6-12 months since even if the Realty market does not fall; one does not expect returns to be high over the next 12-24 months.

The prices of up-market residential localities in big metros have witnessed a 20-25% rise in the last four months. Markets such as Greater Kailash I & II, Jorbagh, Golf Links, Amrita Shergil Marg, Sunder Nagar, Vasant Vihar and Shanti Niketan in Delhi, Napean Sea Road, Peddar Road, Breach Candy, Malabar Hills in Mumbai and Richmond Town, Lavelle Road, Cunningham Road in Bangalore have a witnessed a spurt in prices. In Mumbai, the prices in posh areas such as Altamount Road, Napean Sea Road, Nariman Point and Churchgate have gone up by 20-25%. But South Delhi is leading, the market quoted prices as high as Rs 5 lakh to Rs 10 lakh per sq yard. Mr.Vikram Sabharwal, MD of SABH Infrastructure, said, "The prime localities in South Delhi are commanding a huge premium as there is virtually no land available in these posh areas. There is hardly any construction activity taking place. The only activity seen is in large villas being converted into luxury apartments. This has further jacked up demand and the corresponding prices."

Bollywood superstar Shah Rukh Khan has announced the launch of his signature real estate development, Shah Rukh Khan Boulevard, to be located in the emirate of Ras Al Khaimah in the United Arab Emirates (UAE).

Stars shine for realty brands!

The 8-billion dirham ($2.2-billion) development will come up on Dana Island off the Ras Al Khaimah coast and will comprise studio and one and two-bedroom apartments.

New breed of brand ambassadors!

In an interaction with reporters here ahead of the Cityscape 2008 real estate exhibition, which started Monday, Shah Rukh said he had a fetish for houses and that was what led him to this project.

"I have a strange fetish for home. It's close to my heart," he was quoted as saying.

"Bit by bit, I have built my home where the future of my children lies. While I have done so much for my home, why can't I extend this to others?" he asked.

The development will be designed by well-known architect Toni Ashai and will also comprise an underwater discotheque, a public square on the beach and a theatre.

The project will cover three million square feet.

The film star has associated himself with the project through TSA International Investments, a leading real estate financial consultancy in the UAE.

Khan already is associated with the UAE's leading real estate developer Nakheel and owns a house on the posh Palm Jumeirah manmade island off the coast of the Dubai.

The financial crisis in the US is expected to have a cascading effect on the Indian commercial real estate sector that has already slowed down considerably over the past one year. According to industry sources, there could be a softening in the values of commercial property to the tune of 10% to 15% post the US meltdown. As a result, vacancy levels in commercial space across the country are expected to touch 10% by the end of this year from 6% last June. Market analysts can see prices cooling and projects being held up because of the drying up of cheap funds. In fact, raising funds from US and Western European investors, who accounted for a bulk of FDI in the sector, will now be difficult. Mr. Anuj Puri chairman, Jones Lang LaSalle Meghraj says, "Flow of funds from the US will definitely come down, at least in the short term. Funds to both private and public equities of developers are likely to fall. They will have to look at new avenues like Middle-East and Korea. Although this development will have no direct impact on the real estate sector, there may be indirect ramifications. Foreign capital for private equity investments in Indian real estate may be affected, and the stock of listed companies invested in these portfolios could take a beating due to negative sentiments."

An ambience of a resort, refreshing landscaping, inspiring architecture, in a land where time slows down for you to enjoy the good life!

Gera’s Astoria is a premium project consisting of 2 and 3 bedroom apartments in Caranzalem, which is only minutes away from Panjim, the capital of Goa. The T shaped complex consists of resort styled residences, offer a panoramic sea view.

With your vacation home done in the resort style, whether you invite friends and family to join you or use your home without you, your stock is certain to rise amongst friends, family and colleagues. Even if you decide to rent your home from an investment perspective, the fact that you have a Resort Style Residence at Goa is certain to stir up a wow.

the resort style touch outside your home

* Landscaped gardens
* Lit swimming pool with swim up bar
* Jacuzzi
* Landscaped roof top with walking path
* Club house with party hall
* Cardio gymnasium
* Children's activity centre
* Barbeque area



* Grand entrance gate
* Hotel style lobby
* Piped music
* All floors with lobbies
* Concierge room
* Service elevator
* Outdoor solar lighting

Real estate developers and agents in India are now offering more solutions to market properties to Non-Resident Indians (NRIs) and international property investors. Their focus is geared to target the burgeoning and lucrative market of prospective Western buyers.

As an increasing number of businesses are outsourcing their IT functions to India, property in commercial hubs such as Mumbai, is in high demand but it comes at a cost. Renting office space in Mumbai is even more expensive than in Manhattan.

It seems then that there is good business sense to invest in emerging markets rather than expensive, established areas such as Mumbai. Rudrapur is reported as one place that is taking off in terms of investment in business. The government has made the area a tax free zone and there are over 450 global corporations planning to set up businesses there in 2008.

According to Liam Bailey, Head of International Research for David Stanley Redfern Ltd, India is becoming increasingly attractive. 'We are seeing businesses flocking to the area since the government designated it as a Special Economic Zone (SEZ). This means businesses pay no income tax for the first five years and receive a 30% discount over the following five years.

Bollywood superstar, Mr. Shah Rukh Khan is entering the property market of UAE with a new role of property developer. He is conceptualizing a series of buildings in the emirate of Ras Al Khaimah in the United Arab Emirates (UAE). His first project is called Shah Rukh Khan Boulevard and is located on the island of Al Dana in Ras Al Khaimah. Covering an area of 1,700 sq km, Ras Al Khaimah is among the five emirates that form the northern emirates of the UAE and lies along the border of Oman. Though Bollywood actors have endorsed real estate projects in the UAE, this is the first time that a celebrity is developing a property himself.

Delhi-based Real Estate Developer Unitech had received about $175 million (Rs 740 crore) from Lehman and is very confident of surviving the Lehman crisis. A Unitech spokesman said, "Unitech has already received the money and closed the deal with Lehman Brothers' managed real estate fund. We are not affected by the Lehman bankruptcy. The Lehman real estate fund is third party capital managed by the Lehman asset management business." In June this year, the Lehman managed real estate fund bought a 50 per cent stake in the Mumbai project. Lehman picked up stake in one million sq ft of space in a project jointly developed by Unitech and its local partner, Western Expressway JV, at Santa Cruz. The project involves 18 million sq ft of development estimated at Rs 26,000 crore.

At the Indian School of Business, 15 per cent of last year's class had offers from financial services companies. Lehman Brothers was one of the largest recruiter in the past.

ISB is planning to extend Day Zero to Week Zero. This is to enable international firms to be among the first to come on campus and get first crack at all students.

At Indian Institute of Management-Bangalore, Lehman Brothers and Merrill Lynch have made five pre-placement offers each. The two companies were expected to hire 10 more students during final placements.

They have not been withdrawn their pre-placement offers yet.

Investment banks account for 50 per cent of total placements every year but experts expect offers to dry up this season.

Management students are also nervous about this 'traumatic' turn of events.

At IIM-Ahmedabad possibility of pre-placement offers from Lehman Brothers and Merrill Lynch will not come through and summer placements start mid-November and final placements take place in March.

Students at IIM-A are exploring non-banking options in marketing and real estate even as the institute says it is too early to comment on placement trends.

Hindujas-promoted IndusInd Bank has said it is looking to float a $1 billion fund (about Rs4,500 crore) for investments in India.
“We are going to partner with Indian firms that are known in the capital market space and are in the process of floating funds of their own. It is going to be the Hinduja brand name alongside local firms,” promoter of the bank and Group Chairman S P Hinduja told PTI.
“One of the things we are planning to do in Dubai is to offer an offshore fund for investment into India,” he said after the 15th Annual General Meeting of the IndusInd International Holdings Ltd (Mauritius).
“The offshore fund would investment primarily in two specific sectors, real estate and infrastructure, for which investors in Dubai are very keen,” he added.
On the expansion plan of the bank, he stated that after 14 years of the launch, it was time to diversify and look at other sectors such as capital markets, stock broking, wealth management and asset reconstruction.
Praising the non-resident Indian community for their support since its inception, he said that the bank is now reviving a lot of NRI initiatives.

When we hear of the news of Lehman brother is going to file for bankruptcy the first thing that comes to our mind is the day when bear and sterns sold all its holding in Indian company ,So same thing might happen to the holding that Lehman brother has in Indian company , they might just sell the stock in the market at whatever price they can to cover losses , so please see if you hold any of these company and make a wise decision .For info Lehman Brothers are considered as FII for indian market , so they do hold lot of company in its portfolio.

List of Indian Company that Lehman Brothers Hold
Amtek Auto
Amtek India
Anant Raj Inds.
Ansal Housing
Asian Electronic
Aztecsoft
Champagne Indage
Consolidated Con
Cranes Software
Develop.Cr.Bank
Dhampur Sugar
Edelweiss Cap
Emkay Global
Era Infra
Fedders Lloyd
Genus Power
Geometric Ltd
Godawari Power and ispat
Golden Tobacco
Gremach Infra
IFCI
Indo Asian
IOL Netcom
IVRCL Infrastruce
Kalpana Inds.
Karuturi Global
KPIT Cummins Info
Logix Microsys.
Lumax Inds.
Madras Cement
Mangalore Chem.
Mastek
Nava Bharat Ventured
Northgate Technologies
Orbit Corporation
Pioneer Embroideries
Prajay Enggineering
Prithvi Info
PSL
Rolta India
S Kumars Nation
Spice Communication
Spice Mobiles
Triveni Engg Ind
Tulip Telecom
Vijay Shanthi Builders
Voltamp Transformers
West Coast Paper

A United Arab Emirates real estate developer will develop houses for the homeless in India and three other countries during the Islamic holy month of Ramadan. For this purpose, the Dubai-based ETA Star signed an agreement with US-based not-for-profit organisation, Habitat for Humanity International (HFHI). The company is being partnered by its new development Dubai Lifestyle City, home furnishing chain Homes and cement manufacturer Star Cement. It will donate one percent of its total earnings during Ramadan towards building homes for the destitute in India, Pakistan, Bangladesh and Ethiopia, according to the agreement.

Construction firm Gammon India Ltd has decided to consolidate its real estate projects under Gammon Realty, which it plans to list on the bourses. Though the realty arm was floated two years ago, it has announced only one venture in Bhopal, Madhya Pradesh-a Rs800 crore mixed-use project that would host a five-star hotel, and residential and office space. Gammon Realty plans to develop different properties across India—both high-end residential and commercial space-in Mumbai, Bangalore, Mysore and Bhopal, and has already acquired sizeable land. It is planning an IT park on 10 acres in Dombivli, a Mumbai suburb. Besides this, it has plans to develop another high-end residential and commercial complex spread over seven acres, near the Andheri Sports Complex in Mumbai. The company has also acquired some 200 acres in Mysore and another 200 acres near the new Devanahalli airport in Bangalore.

Bangalore will soon have a 47-floor residential tower on Residency Road targeted at India's uber-rich , with each condominium priced at anywhere between Rs 23 crore and Rs 40 crore. The residential tower, Bangalore 47, is being developed by Asipac Projects Ltd, and property developer, S.S. Kumar at an estimated price of Rs 559.75 crore. The project will have a built-up area of around 287, 000 sq ft and is expected to be ready by 2011.