Articles 1 to 10 of 14
Gruh Finance: Serving the Underserved in the Housing Sector
Getting a housing loan in India is not easy for low-income consumers. Typically, mortgages require a lot of documentation, which this group is not able to provide. Gruh Finance, India’s first specialized rural mortgage entity for the underserved and informal sector, is trying to fill this gap. With more players entering both the low-cost housing and the housing finance space, there is now more opportunity as well as more competition for Gruh.
What's Holding Back Affordable Housing in India?
There is huge demand for affordable housing in India. But supply is constrained primarily because of government policies. The traditional business model is also geared more toward premium housing. Analysts say that the affordable housing segment needs a different approach and, if all stakeholders work together, it could be a viable business proposition.
Hirco Group's Aniruddha Joshi: 'The Recession Has Helped Real Estate in India'
The Indian economy is "like a car from 15 years ago," according to Aniruddha Joshi, executive director of U.K.-based Hirco Group, a developer of residential properties and mixed-use townships in India. Lacking the modern, highly complex asset securitizations that have sunk developed economies, its moving parts are still recognizable and easy to fix, he says. During an interview at the recent Knowledge@Wharton Real Estate Forum, Joshi discussed how the country's real estate market has fared over the past year, and what lies ahead for Hirco and real estate investors.
Risky Business: Are Teaser Rates for Home Loans Pushing Real Estate to the Edge?
Following the introduction of the State Bank of India's Easy Home Loan a year ago, more than 20 banks and housing finance companies have introduced so-called "teaser" loans. These offer borrowers low interest rates and monthly payments for an initial period of two years, later ballooning to higher amounts. The banks claim these marketing tactics are helping stimulate demand for mortgage loans. Meanwhile, the Reserve Bank is worried about the risk such loans pose to borrowers and the quality of banks' assets. Some banks are taking notice -- Canara Bank, Union Bank and Axis Bank have decided to end their teaser loan programs. India Knowledge@Wharton examines both sides of the debate.
Bumps in the Road: India's Industrial Growth Seeks Solid Ground
Indian business's voracious appetite for land to support rapid growth is running up against farmers determined to get top dollar for their acreage. One conflict recently got so messy in West Bengal that Tata Motors pulled up stakes for its planned Nano plant and will now relocate it in Gujarat. Behind the disputes lie outdated laws and the lack of any pragmatic negotiation structure that might give both sides more of what they want. Experts tell Knowledge@Wharton that a comprehensive set of ground rules may finally be on the way.
Indian Real Estate Firms Face a Reality Check
Real estate stocks have been hit hard during the current stock market meltdown. In addition, home prices have fallen by as much as 25% in certain urban markets. This is a new phenomenon in India, where boom and bust cycles in property markets have rarely occurred in the past. Rising interest rates and loss of jobs in the financial sector are squeezing demand, and home foreclosures have begun in some areas. Will the hard times continue? According to real estate experts interviewed by India Knowledge@Wharton, despite the present slowdown, sound reasons exist for optimism in the long run.
Indian Real Estate: Investors Are Shopping, but Are They Buying Hype?
Drive through any of India's major cities and it will be impossible to go a mile without encountering brightly colored cranes and hordes of construction workers. Commercial high rises, residential townships, industrial parks and shopping malls are exploding into existence, fueled by both long-term and speculative investors. But astute industry watchers are poking holes in that picture, pointing to the relatively small size of actual investments, sharply reduced expectations of returns and continuing concerns about the country's regulatory environment. India Knowledge@Wharton spoke with foreign and domestic private investors, property developers and brokerage firms about these issues.
For Surendra Hiranandani, the Future of Indian Real Estate is 'Definitely Bullish'
While foreign capital rushes into the Indian real estate market, the long-term future of the industry lies in the hands of Indians themselves, according to Surendra Hiranandani, founder of the Mumbai-based Hiranandani Group. He spoke with India Knowledge@Wharton following his appearance on a panel about "Global Hot Spots" during a meeting hosted by Wharton's Samuel Zell and Robert Lurie Real Estate Center.
Why U.S. Investors Are Building Their Hopes on Indian Real Estate
Government policy changes that allow 100% foreign investment in property development and the lure of double-digit returns have made Indian real estate an attractive opportunity for U.S. institutional and high-net-worth investors. What's a trickle now by global standards promises to increase in flow as firms such as Goldman Sachs, Morgan Stanley, Merrill Lynch and GE are either investing in Indian real estate or doing due diligence into potential ventures. Caution, however, tempers their optimism. Their worry list includes issues such as getting comfortable with local partners, exit options, realistic pricing, market intelligence and receding rates of return, say experts from Wharton and elsewhere.
Commercial Real Estate's Perfect Storm: What Lies Ahead?
The commercial real estate market has been on a tear in the last few years. Banks, insurance companies and institutional investors have funneled money into the market because its returns, in an environment of low interest rates, exceeded those of other asset classes. As interest rates begin to climb, how will that situation change? Experts discussed those issues at a recent conference on Innovation and Risk Management in Real Estate Markets organized by the Wharton Financial Institutions Center and Mercer Oliver Wyman.
