IDBI Bank has cut interest rate on floating rate home loan scheme by 25 to 50 basis points for all existing customers. The bank has also introduced a fixed-cum-floating rate home loan product for new customers. Further, the bank has also decided to offer concession of 100 basis points (1 per cent change is equal to 100 basis points) in rate of interest for all segments of auto loans, the bank said in a statement. The bank said it reviewed its home loan rates in view of the market scenario, competition offerings and provide benefits to customers during the festival season.

All new borrowers would be given an option of either fully floating rate or a combination of fixed and floating rates. The bank has waived the processing fee for loan amounts upto Rs 25 lakh. Under the composite fixed-cum-floating home loan scheme, the bank will charge fixed interest rate for one to two years. Thereafter, the interest rate would be linked to the bank’s base rate, which is currently at 10.75 per cent. Depending on the loan amount, the interest rate on the composite fixed-cum-floating home loan scheme, which has fixed interest rate for one year, ranges from 10.75 per cent to 11.75 per cent. In the case of a loan on which interest rate is fixed for two years, the interest rate ranges from 11 to 12 per cent. The bank has decided to waive the processing fee for auto loans. All the offers are applicable to the new loans sanctioned between October 15 and December 31, 2011.

At a macro level, though the real estate sector is facing challenging times, there are firms exploring niche areas to drive business growth. A nascent trend gaining ground in the real estate landscape is developing homes for senior citizens. According to the 2011 Census , there are more than 10 crore Indians above 60 years of age in India. Steadily increasing life expectancy, lack of safety and security in urban areas, rising number of financially independent senior citizens and trend of nuclear family life have made senior citizens an ideal target customer for niche offerings by real estate firms. Retirement homes offer services such as facilities management, easy access to healthcare services, security systems, recreation facilities and spiritual enclaves, among others. The concept of retirement homes in India still has a social stigma of abandonment attached to it, says Mr Saumyajit Roy, vice president, social infrastructure practice at Jones Lang LaSalle India. However, he said, the mindset is slowly changing. Contemporary retirement homes or resorts have replaced the earlier concept of old age homes, which symbolized the last option for the needy and abandoned elderly.

by - Reliancepropertysolutions, 26th October 2011

Housing prices are set to go up as real estate developers today said they will pass on the increase in cost of funds to home buyers following the Reserve Bank of India's decision to hike key policy rates. "RBI has put us in a sorry situation. It is a vicious circle of higher input cost, higher borrowing cost and higher property prices. We are bound to pass on the increased cost of funds to our customers," Confederation of Real Estate Developers' Association of India (CREDAI) Chairman Mr Pradeep Jain said. The rate hikes will further tighten the source of funding required for running the business, he added. Mr Jain, however, said increase in interest rate is unlikely to impact demand as there is a shortage of housing in the country.

by - propertyday.com

Ajmera Group, which has primarily operated in the mid- and affordable housing segment, is now expanding into premium and luxury residences space. The company has embarked upon I-Lands, a 100-acre premium project at Wadala in Mumbai. Construction of Aeon, the first tower, a 45-storey building housing 200 units, is currently underway, and work on ‘Willows', another luxury project at Bangalore, is set to begin. The Group's first luxury project in Pune is at Koregaon Park. Christened ‘Aria', the 14-storey tower has 25 apartments of 5,000-6,000 square feet, costing Rs 9-10 crore apiece.

by - The hindubusinessline

Purchasing a property will now be simpler. Home buyers will soon be able to pay fees for registration of a property document online. The state cabinet will discuss a proposal for amendment in the Maharashtra Stamp Act, 1958, to permit e-payment of registration fee. Officials said that the move was aimed at simplifying property registration, making it more efficient and transparent. Officials said this would reduce the documentation involved in the registration process, which is often a source of inconvenience for citizens. The move comes after epayment of stamp duty, which was permitted previously, was well received. Officials clarified that the facility will be optional. Mr Anand Narayanan, National Director, (residential), Knight Frank, a real estate consultancy firm, welcomed the initiative.