|
Quit India
Movement in 2007
By Sanjay Chaturvedi
When Mahatma Gandhi decided to
announce Quit India Movement in 1942, he would have not realised that it may
again be repeated in 2007.
When Mumbai offered a minimum
average rate of property at Rs.7000/- per sq.ft. in suburbs and Rs.5000/-
per sq.ft. in extended suburbs, NRIs and MNCs were weighing the option of
investing in Pune and two tier cities. Mohali sold an acre agriculture land
for Rs.5 crore, Delhi and NCR have witnessed highest historic land rates
followed by Pune, Ahmedabad, Bangalore and Hyderabad, the situation was
dismal for individual investors who wanted to just save taxes by paying
housing finance installments and at the same time have a second home.
Housing finance rates have
capitalised on the inflation in the country and realty funds wanted to
invest in primary market like funding builders at an early stage. Since huge
funds are at stack, investors do not want a correction in the property
prices. It will kill their depositors faith and hence they want it to be a
rising trend.
Buyers are helpless and there
were a big slid on the sale though the rates were reportedly constant or
touching new heights. Individual investors, now since liberalisation in
investing abroad to the tune of US$ 1 lakh in a year is allowed, are looking
for oversea opportunities.
Dubai is the most famous
destination to park the funds in real estate. Many projects are offering
free life time visa to the region if one buys an apartment there. For a mere
Rs.40 lakh one can have an two bed room apartment in an future international
city. Taxation is relaxed because of free trade zone hence rentals yields
and appreciations are not liable for any tax in the region. It is only when
you repatriate, Indian Income Tax is applicable.
Exhibitors from Australia, UAE
and US have been participating in various Indian Property Exhibitions,
offering huge returns for small investments. While UK developers stay in
hotels and luring individual investors for investing in farm land with a
promise of future town planning which will include the plots on sale within
the boundary of the city limit of London.
A huge amount of funds and
High Net-worth Individuals have been investing with these overseas
opportunities. When a two bedroom apartment at Mira Road is compared with
high tech city of Dubai, investors opt for Dubai because for same amount of
investment he is getting world class constructions and infrastructure with
potential appreciations.
Builders are not left behind
to capitalise on liberalisation. Hiranandanis have been constructing in
Dubai, so is the case with many leading developers are developing in UAE.
Oman, Mascat, Behrin and other part of region is witnessing huge
construction projects from India Developers. Since there is no land
available in India, builders are looking to tap the opportunities overseas.
In the process, almost every big brand in India have projects in Middle
East, Europe and Far East. Land being a esstential commodity to produce
accommodation, and is now captured by leading corporate like DLF, Reliance
and others, prices have gone beyond imagination. If the situation persists,
there will be only ten developers in India who will be constructing on their
land banks for next two decades with full situation of monopolizing and
cartelling on real estate prices.
Under the circumstances, there
is huge movement to quit India in 2007, after one gets open permission to
invest outside India. We were witnessing for 60 years, our trained
professionals like MBAs, Architects, scientists, academicians and
businessmen have been quitting India for want of opportunities. This year
they are allowed to do so with the permission.
|
