With real estate prices moving southwards, several banks and financial institutions are buying their own properties and shifting from rented and leased premises.
While the country’s largest financial institution, Life Insurance Corporation of India (LIC), has already bought land and built-up properties during this financial year, the country’s thrid largest private lender Axis Bank is scouting for up to 5,00,000 square feet of space in areas such as Bandra-Kurla Complex (BKC), Worli and Parel.
“Property prices have fallen to attractive levels now. As we intend to expand our network, we will buy our own properties instead of taking commercial spaces on rent or lease. During the first half of this year, we have bought properties worth over Rs 511 crore across different cities,” said LIC Managing Director Thomas Mathew T.
More : business-standard.com
Send an E-Mail for India Property Enquiry!
Related News from India Properties
Old loans for new projects?
The RBI has by its word and rules dissuaded banks from loaning for real estate projects. But the developers are taking advantage of poor surveillance by banks to recycle old loans for new real estate projects reports CNBC-TV18. The RBI has repeatedly warned banks to be strict with their real estate loans, but developers seem to be finding new ways to access banks loans. Although new loans have gotten scarce, developers have devised a new mechanism to keep the old funds rolling for new projects. This is how it works: A developer borrows money from a bank for 18 to
Step carefully while buying a property
With correction in real estate prices and fall in interest rates, action in realty market has picked up substantially. While this has given end users good opportunity to buy a house, they must tread with caution as many developers may not honour delivery schedules. According to real estate consultancy firm DTZ, almost all new project launches of major developers in the past 6-9 months have been in the affordable housing segment in Tier 1 cities like national capital region, Mumbai, Bangalore, and Pune, among others. These new launches recorded high sales with residential project developers collecting 15%- 20% of the
Double-digit home loan rates are back
The year 2006 pulled interest rates on housing loans back to double digits, after low single digit rates for since 2003. The banking sectors weighted average lending rate on home loans is set to touch 11 per cent in early 2007, a level last seen four years ago. Banks raised their benchmark prime lending rates (BPLRs) by 150-200 basis points in three-four rounds in 2006, thats expected to take the weighted average lending rate of banks on home loans past March 2004 level of 10.66 per cent. Interest rates on home loans have shot up to double
Banks to soon hike lending rates on comm realty loans
Bankers said Reserve Bank's decision to up commercial real estate property loan provision of lenders may force them to hike lending rates to the sector in the near term. Banks are contemplating a rate hike of anywhere between 0.5-1 per cent in commercial real estate loans in the near future to pass on the burden of high provision to customers, a senior official of state-run, Union Bank told PTI here. This (high provisioning) will really impact the credit flow to the real estate sector and will leave no option to banks but to increase their lending rates on commercial real
Rating cos may help banks crack the realty code
With real estate financing gaining momentum and becoming more organised, banks are increasingly tapping doors of rating agencies with a request to offer rating services on shopping malls and restaurants. Even rating agencies have begun to look at this sector with greater focus and have added newer verticals such as real estate, retailing infrastructure and IT-enabled services. Considering that the hotel industry is also showing signs of a boom, it is inevitable that banks look at rating agencies as a source by which they can take conscious decisions while evaluating risks, said industry sources. While larger players like ICICI Bank