RBI hikes repo rates again in less than couple of months

The Reserve Bank of India, or RBI, has moved yet again in its ongoing fight against rising inflation, reports CNBC-TV18. It has hiked the Cash Reserve Ratio, or CRR, which is the portion of deposits that banks need to keep as cash with the central bank, by a steep 50 basis points. This hike will take effect in two stages. First, a 25 basis point hike on July 5, and another 25 basis point hike on July 19. By July 19, CRR will stand at 8.75%.

It has also hiked the repo rate by 50 basis points, which will be effective immediately.The central bank said there has been a turnaround in production of durables. “Consumption demand seems to be reviving.” The rise in non-oil imports reflects domestic demand pressure, it said. “Aggregate demand pressures are strongly in evidence. The priority now is to eschew the build-up in inflation pressures.” Read More

Chinese real estate market may be starting to fade

We have heard and read a lot over the past year regarding the weakening U.S. real estate market, but what about the red hot Chinese market? Some evidence is starting to show that the Chinese real estate market is also starting to soften a bit.

For the past several years, the Chinese government has started to try to curb the rapidly surging housing market, which kick-started around the start of 2001. Now the first signs of a housing slowdown are starting to show themselves, as property brokers are scaling back their operations, or in some cases closing their doors altogether.

US Slow down good for Canadian Real Estate

The prospect of a U.S. recession has some homeowners and prospective buyers nervous about the impact on the real estate market in Canada, but one economist says a slowdown could actually boost activity in Canada’s housing sector.

It’s not surprising that economic uncertainty in the U.S. has been the focus of much discussion and speculation in recent days, since Canada has followed the American lead during four of the last six U.S. recessions.

But Gregory Klump, chief economist for the Canadian Real Estate Association, said it’s still an “open question” whether the U.S. slowdown will turn into a recession — as defined by two consecutive quarters of negative economic growth.

Kenya: Country Loses Shs 100b in Real Estate Alone

The highest loss reports following unrest in Kenya has been noted in the real estate sector where a whooping Sh100 billion could have been lost.

According to a fresh release last week, the losses accrued from looting and property destruction in residential, commercial and industrial areas.

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The loss is also attributed to the plummeting of the value of real estate properties like houses and offices following security fears around the country. According to figures released by the Institute of Surveyors of Kenya (ISK), the sector is headed for tough times ahead as loss of confidence takes its toll on the East African country.

ISK chairman Mwenda Makathimo said most of the losses could have been avoided if government had formulated a revised national land policy.

According to Makathimo ethnic hatred is as a result of glaring inequities in land allocations in the country that took effect immediately after the country attained independence. “As a sector, we are counting losses in excess of Sh100 billion in the skirmishes. We feel the election results were just the ignition point but most of this fighting has to do with the land inequities in the country,” he said.

Addressing a press conference at their, offices in Nairobi, a new land policy and far reaching constitutional changes could save the country from future turmoil and ensure economic stability.

“In a business dictated by the forces of demand and supply like ours, a minute of insecurity translates into massive losses in value,” said Makathimo. Players in the real estate industry have long adapted to using their properties as loan collaterals, however, the chairman said most loaning institutions will be reluctant to accept this.

He said the institutions were citing the plummeting property values as the reason for denying them loans. Also decried was the wide spread loss of employment opportunities for thousands in the construction and real estate sectors as a result of the insecurity in the country.

Real Estate Regulatory Agency (RERA) Team Reviews Projects And Plans At Dubai Property Group Meeting

Dubai Property Group (DPG), Dubai’s only real estate professional association, today hosted Dubai’s Real Estate Regulatory Agency (RERA) team, at its monthly networking even. The team of RERA presented the Agency’s plans and projects to over 250 DPG members and other high ranking real estate professionals, urging all developers, brokers or real estate firms to register themselves with RERA immediately. The team included: Khawla Al-Tamimi, real estate researcher at RERA, Hamda Al-Shamsi, real estate studies specialist at RERA, Sheikh Jumah Al-Maktoum, RERA’s trust account manager, Judy Hely, project manager for real estate brokers at RERA.

GIC to invest $336M in Russian Realty

GIC Real Estate is partnering with Russia’s PIK Group to develop a large township in the city of Mytischi in Russia.

The 114-hectare site is located in the Moscow region to the northeast of the capital.

GIC Real Estate will acquire a 25 per cent stake in the project for US$233 million (S$336 million).

A CB Richard Ellis appraisal carried out 12 months ago valued the site at over US$1.3 billion.

The township will contain 50 high-rise apartment buildings and 13 low-rise commercial buildings.

There will also be five schools, seven kindergartens, two polyclinics and over 17,000 parking lots.

When completed in 2013, the development can house about 50,000 residents.

Bulgaria’s real estate to appreciate 10%-15% in 2008

Bulgarian house prices are expected to increase by 10 to 15 percent in 2008, according to a forecast Monday by local Real Estate agency Address.    The sharp price movements which characterized 2007 are expected to level off in 2008, Katya Tsenova, managing partner of Address, told a news conference here.

    The agency’s experts predicted growing prices for suburban property and property with good characteristics.

    Prices will level off or grow slower for flats in blocks with prefabricated panels, it said.

    The growth of land prices will continue to influence housing prices, and the real estate market in towns with a population below 50,000 will become more active.

    House prices in 2007 in terms of actual deals were up 18.6 percent from 2006, Tsenova said, noting that the average price per square meter in 2007 was 737 euros (1083 U.S. dollars) while the figure in 2006 was 624 euros (917 dollars).

    Real estate in Rousse (on the Danube) appreciated the greatest in 2007 with a jump of 41 percent.

    The most expensive house sold by Address in 2007 was in the suburb of the capital and fetched 1.3 million euros (1.911 million dollars).

GE might bid for Spanish Real Estate Company

General Electric Co. may bid for Inmobiliaria Colonial SA, the Spanish real estate company that’s lost about 60 percent of its market value in six months.GE’s plan, disclosed by the Fairfield, Connecticut-based company in a regulatory filing today, would be the second potential offer in a week for Colonial. The developer rose 1.3 percent, valuing the company at 2.5 billion euros ($3.6 billion). The shares have climbed 17 percent in the last three trading sessions.

By acquiring Colonial, GE would gain 12 billion euros of assets including offices and malls in Madrid, Barcelona and Paris. Luis Manuel Portillo last month quit as Colonial’s chairman after a slowdown in the property market caused shares of developers to slump.

Good time for Mexico’s real estate market

“It’s a time of hope,” claims Ana Laura Pulido, a real estate broker in Mexico. While its northern neighbor remains in the depths of a housing meltdown, the Mexican real estate market has been booming.

Mexico has long found its economy overly sensitive to the happenings in the United States, so to see the country’s real estate market thriving despite the turmoil in America is a very encouraging sign for our southern neighbor.

And don’t think that American investors haven’t started to notice this new trend.

According to Clark McKinley, the spokesman for the nation’s largest pension fund, the California Public Employees Retirement System, his fund sees greater returns for its money in Mexico and has already decided to pump over $300 million into Mexican real estate funds.

Commercial real estate market holding strong

Whether you tried to buy or sell a home in 2007, homeowners across the country felt the housing bust.  But the other side of the real estate market, commercial real estate, didn’t feel the punch. Locally, commercial projects continue to pop-up. Trease Walden of Myrtle Beach believes in the Grand Strand and is putting her money up to prove it.Walden is thrilled about her new investment. She’s banking on the success of the new Surf’s Up Family Fun Center. It’s a 20-thousand square foot facility opening in mid-march in the middle of Carolina Forrest. Carolina Forrest is one of the fastest growing areas in the region. Walden says the state-of-the art project will top off at 4.2 million dollars, a sizeable investment in the community. “This is where my family is. I love it and this is where we’re going to stay. I want to put out money where we’re going to be,” said Walden.The project started on paper when the housing market was spiraling downward. Walden said they closely followed the ever-rising prices of materials and labor. So they worked hard to stay on budget. But they believe in their dream.“We just have to work with it. That’s the way the economy is going, we know that there’s going to be increases,” said Walden.  “You just have to feel the market out and do the best that you can.”Scott McNew, a commercial real estate agent, said continued growth and tourism helped keep the Grand Strand prosperous during the housing market crash.“The commercial market is strong today and doing well. It’s stabilized. I’m not seeing dips in the commercial pricing,” said McNew. “What we’re seeing is more moderate growth. Residential, we’ve seen a decline in prices. They’re off from what they were a year or two ago. Commercial has stabilized and is holding its own. Investor’s are a little more cautious now.”McNew said builders overbuilt nearly 30 percent above demand. So now, the area is playing catch-up with the more than a year’s worth of housing oversupply.However, the commercial side of the market must keep up with the population growth and build new structures like medical buildings and office space. McNew also said tourism should continue to push the commercial industry to build restaurants and retails stores