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Royal Indian Raj On the Move
Low rates stoke housing bubble
Peter Foster, National Post · Jun. 4, 2011 | Last Updated: Jun. 4, 2011 4:14 AM ET
Should Canadians be more concerned with inflated real estate prices or inflated real estate brokerage fees? This question springs to mind because of two aspects of Ottawa's current involvement with Canadian housing. On the one hand, the Competition Bureau is claiming to stand on guard for Canadians by breaking the real estate brokerage cartel and its 5% commissions. On the other, despite some marginal tightening of mortgage rules over the past 18 months, and repeated stern warnings from Mark Carney and Jim Flaherty not to use your home as an ATM, their artificially low interest rate policy is still promoting overheating.
According to a report in Friday's Post, the Office of the Superintendant of Financial Institutions is looking into the impact of foreign investment on Canadian real estate -which has reportedly been a factor in Vancouver, and recently featured a $28-million condo purchase in Toronto. However, any foreign investment impact is dwarfed by the influence of government policy.
Messrs. Flaherty and Carney claim that they have no choice but to hold rates down as long as the United States is still attempting -unsuccessfully -to flood the market with money. Otherwise the loonie might be goosed to uncompetitive levels. However, the irony is that U.S. interest rates are being held down to counter the consequences of a Washington-stoked, Wall Street-facilitated housing bubble. Unfortunately, but perhaps inevitably, this seems to be reflating everything but U.S. house prices.
Benjamin Tal, deputy chief economist at CIBC World Markets, was quoted in the Post this week as suggesting that: "Ironically, the misery of homeowners in the United States is actually benefiting homeowners in Canada." We should be wary of such "benefits." While the Canadian market never saw the insanities of U.S. subprime mortgages, and does not suffer from the continuing shadow of overbuilding and foreclosures, the desire of U.S. policymakers to compensate for their real estate mess may indirectly be stoking a mess -albeit of less epic proportions -here.
There is an almost startling difference between the state of housing markets north and south of the 49th parallel. The latest Standard & Poor's/Case-Shiller housing survey showed that U.S. home prices fell 4.2% in the first quarter, extending the fall in house prices to eight months. By contrast, the latest Canadian figures suggest that while the volume of sales was down in the early months of this year, average prices in April were 8% up on last year. The average price of a house in Canada in April was $372,544, more than $100,000 above the U.S. figure.
For the moment, therefore, those thinking of buying or selling should perhaps be more concerned about the future of price levels than commission rates, although the latter are certainly also an issue.
Last week, the Competition Bureau launched a suit against the Toronto Real Estate Board at the Competition Tribunal for trying to squash competitive innovation. It claimed that TREB was preventing the flow of information from its Multiple Listing Service, MLS, to potential buyers via so-called "virtual office websites," VOWs, which would enable buyers to cruise relevant market details on the Internet.
This action follows a fight last year by the bureau with the Canadian Real Estate Association forcing CREA to allow its members (real estate boards such as TREB) to post flat-fee listings on the MLS for sellers who do not want the full hand-holding service package.
The Competition Bureau case against TREB raises the issue of why a buyer would need intense hand-holding, either, when relevant material could easily be made available online. Certainly, both real estate information and brokerage services are valuable. The problem is that they are overpriced. The evidence lies in the surplus of agents.
Bill Johnston, the president of TREB, reacted with outrage to the Competition Bureau's further assault on his members' ethics and livelihoods. He lashed out at bureau head Melanie Aitken for alleged "curveballs," "low blows," "career building" and "bad faith." He claimed that TREB was well on the way to rolling out its VOW strategy. Ms. Aitken, by contrast, suggested that TREB was dragging its feet.
One can understand TREB's reluctance to get with the innovation program. Although VOWs would be operated by TREB members, once you let prospective buyers start letting their fingers do the walking, everybody might start asking more questions about why those commission rates are still so high. Still, sending a complaint to the Competition Tribunal hardly guarantees a speedy resolution of the issue, which could drag on for years.
Consumer protection is usually misguided or ineffective. Adam Smith pointed out that tradesmen might be inclined to conspire, but solving this problem was best left to competition. Real estate brokerage is unusual in that it seems to be a successful long-term "conspiracy." CREA and its real estate boards have a tight grip on market information, which they obtain from sellers and hoard for their own benefit.
However, we can rarely rely on government to "protect" us. It is worth remembering that the Competition Bureau announced a "victory" over the real estate industry in 1988. Meanwhile, any good that this piece of consumer protection may achieve could be swamped by the impact of government policy elsewhere. While the Competition Bureau purports to protect the Canadian consumer, other parts of the Ottawa octopus, by encouraging home purcPublish Posthase via statebacked mortgage insurance and artificially low interest rates, are a much bigger threat to her welfare.
Saturday, April 30, 2011
28 APR, 2011, 10.09PM IST, POOJA THAKUR,ET BUREAU Realty stocks will rebound in two years: Macquarie
MUMBAI: India's real estate stocks have attractive valuations after plunging 83% from their peak and are likely to rebound within two years, according to Macquarie Group.
India's real estate industry is grappling with rising borrowing costs, shrinking access to credit and a decline in demand as record prices make homes unaffordable. The Bombay Stock Exchange's 14-stock Realty Index has dropped from its peak in January 2008, while the benchmark Sensitive Index surged to a record last November.
"This is one of the most bombed out, neglected and despised spaces in Asia," Mark Matthews, a Singapore-based strategist at Macquarie Group , Australia's biggest investment bank, said in a phone interview. "It's in a distressed environment like this that one can find value."
India's property index is trading at 1.4 times book value, less than half of the benchmark measure's 3.4 multiple, according to data compiled by Bloomberg. The country's developers are expected to face "large-scale distress" amid rising borrowing costs and shrinking access to credit that may force them into fire sales of assets, Knight Frank said.
Indian developers will have to repay Rs 1.8 trillion ($40.4 billion) of debt to state-run banks, private-equity funds and other lenders over the next two to three years, Amit Goenka, national director of capital transactions at the Indian unit of Londonbased Knight Frank, said on April 21.
Shares of developers that survive will surge several fold over the next few years from where they are, Matthews said. He's focusing on companies with low debt, high free cash flow, and a good product, he said. The Realty Index is up 20% from this year's low on February 24. It fell 0.3% on Tuesday.
Prestige Estates Projects is the brokerage's top pick in the industry. The Bangalore-based developer, which is in a retail property venture with Singapore's CapitaMalls Asia, has a low debt-to-equity ratio of 0.3, Matthews said.
India's property industry is going through a similar phase as Thailand almost two decades ago, when the industry was hit by oversupply Matthews said.
India's real estate industry is grappling with rising borrowing costs, shrinking access to credit and a decline in demand as record prices make homes unaffordable. The Bombay Stock Exchange's 14-stock Realty Index has dropped from its peak in January 2008, while the benchmark Sensitive Index surged to a record last November.
"This is one of the most bombed out, neglected and despised spaces in Asia," Mark Matthews, a Singapore-based strategist at Macquarie Group , Australia's biggest investment bank, said in a phone interview. "It's in a distressed environment like this that one can find value."
India's property index is trading at 1.4 times book value, less than half of the benchmark measure's 3.4 multiple, according to data compiled by Bloomberg. The country's developers are expected to face "large-scale distress" amid rising borrowing costs and shrinking access to credit that may force them into fire sales of assets, Knight Frank said.
Indian developers will have to repay Rs 1.8 trillion ($40.4 billion) of debt to state-run banks, private-equity funds and other lenders over the next two to three years, Amit Goenka, national director of capital transactions at the Indian unit of Londonbased Knight Frank, said on April 21.
Shares of developers that survive will surge several fold over the next few years from where they are, Matthews said. He's focusing on companies with low debt, high free cash flow, and a good product, he said. The Realty Index is up 20% from this year's low on February 24. It fell 0.3% on Tuesday.
Prestige Estates Projects is the brokerage's top pick in the industry. The Bangalore-based developer, which is in a retail property venture with Singapore's CapitaMalls Asia, has a low debt-to-equity ratio of 0.3, Matthews said.
India's property industry is going through a similar phase as Thailand almost two decades ago, when the industry was hit by oversupply Matthews said.
Thursday, March 17, 2011
Saturday, March 12, 2011
Canadian housing market outlokk Jan 2011
New home prices across Canada increased by 1.9 per cent from January 2010 to January 2011, but in Metro Vancouver the increase was just 0.2 per cent and in Victoria prices fell by one per cent, Statistics Canada reported today.
The data gathering agency reported that prices increased the most in the metropolitan regions of Toronto and Oshawa, Montréal and Ottawa–Gatineau.
In Western Canada, Regina, Calgary and Edmonton price increases all exceeded Vancouver's increase.
Nationally, prices were up 0.2 per cent during the month, compared to a 0.1 per cent advance in December, the federal agency said, with no change during the month in Vancouver and Victoria. Year-on-year, prices rose 1.9 per cent in January. Both readings were roughly in line with economists' forecasts.
Recent data have pointed to a slowdown in Canada's housing market. On Tuesday, Canada Mortgage and Housing Corp. said new home construction rose 6.6 per cent in February, but economists have cautioned that those gains are unlikely to be matched in the coming months.
"Land prices have gone nowhere in the past three years after big gains in the previous three, suggesting speculators are largely absent from the market," said BMO Capital Markets economist Sal Guatieri. Ravi benjamin
Along with tighter mortgage rules — including shorter amortizations — that come into effect March 18, higher interest rates, lower affordability and elevated household debt, "should keep house prices on a tight leash," BMO said in a report last week.
This week, Statistics Canada reported that the value of building permits unexpectedly fell 5.1 per cent to $5.4 billion in January, following a gain of 2.6 per cent in December, due to weaker residential and non-residential activity.
As well, a Canada Mortgage and Housing Corp. report released this week concluded that housing starts in B.C. were down in February, although they rose in Metro Vancouver.
Still, a Royal Bank of Canada survey released Wednesday showed 90 per cent of Canadians are confident in the country's real estate market. Almost three-quarters of respondents in the RBC poll said they are well positioned to withstand a decline in the housing market.
Read more: http://www.vancouversun.com/business/home+prices+Canada+Metro+Vancouver+rise+slightly+January/4412567/story.html#ixzz1GSNwZYED
Royal Indian Raj International Corporation Pens Estimated $4 Billion Deal With Choice Hotels for at Least 12,000 Budget Hotel Rooms Throughout India
http://newsblaze.com/story/2007041123340200001.cc/topstory.html
VANCOUVER, BRITISH COLUMBIA and NEW DELHI, INDIA - (CCNMatthews - April 12, 2007) - The Royal Indian Raj International Corporation (RIRIC) today announced that it has entered into a contract with Choice Hotels India to build at least 12,000 budget-style hotel rooms under the Comfort Inn, Quality, Sleep Inn and Clarion Brands. "This transaction increases RIRIC's current proposed foreign direct investment in the real estate sector under the Integrated Township program and in the Hospitality and Resort sector to over $6B USD" including its Royal Garden Villas & Resorts projects in Bangalore & Hyderabad. RIRIC's hotel initiatives are set to commence over the next 12 months throughout India.
Hotel vacancies in India are rare -- and costly
"India is reaching a new level of demand for hotel rooms. As the economy continues to grow, travelers are paying for pricey hotel rooms -- that's if they're able to find a vacancy. In all of India, there are only about 110,000 hotel rooms, not much more than the number of hotel rooms in New York City," according to the International Herald Tribune.
"Our association with a world leading hotel chain the caliber of Choice Hotels represents an ongoing commitment to excellence for Royal Indian Raj International Corporation. There is a huge demand in the Hotel & Hospitality sector in the Indian Nation primarily in the under represented 3, 4 and 5 star categories. This strategic partnership was forged to address these issues and to establish RIRIC's presence in the hotel and hospitality sector in India. The hotel developments under these Choice brands will be focused on providing quality accommodations and falls within RIRIC's corporate mandate of being "Leaders in Building a New India." - Manoj C. Benjamin, Chairman and CEO, Royal Indian Raj International Corporation.
"We are very proud of our association with the Royal Indian Raj International Corporation (RIRIC). In association with RIRIC, Choice Hotels India will develop, brand and manage and additional 15,000 rooms in the country, in all the key destinations across the brands of Comfort, Quality, Clarion and Sleep Inn. Choice Hotels has one of the largest hotel franchising networks in the country and worldwide with presence of over 5000 hotels across the globe. With this significant partnership, we envisage an exponential increase in our existing room base. This would further add to presence of our hotel brands across the country within India. This would also meet the much needed additional room requirement in the country, especially in the mid market segment.
This will define a new era for the burgeoning hotel industry in India.
With our joint expertise in real estate and hospitality business, this relationship would offer the best hotel value for the growing inbound, outbound and domestic travel sectors across the country. We are very excited about this relationship and look forward to mutually beneficial association." - Vilas Pawar, Chief Executive Officer, Choice Hospitality India.
About Choice Hotels
Choice Hotels International is one of the largest and most successful lodging franchisors in the world with over 5000 hotels worldwide. Built on the foundation of the venerable Quality Inn(R) brand a pioneer in consistent mid-priced lodging, Choice Hotels(R) today is the worldwide franchisor of Cambria Suites(TM), Comfort Inn(R), Comfort Suites(R), Quality(R), Sleep Inn(R), Clarion(R), MainStay Suites(R), Suburban Extended Stay Hotel(R), Econo Lodge(R), and Rodeway Inn(R) brand hotels. Publicly traded since 1996 (NYSE:CHH), Choice Hotels continues to lead the lodging industry as an innovative and growing company.
Choice Hotels India is a master franchisor of Choice Hotels International, offers economy to luxury accommodation under the international brands of Comfort, Quality, Clarion and Sleep Inn. Choice Hotels India has consolidated its position as India's leading chain of value for money hotels in the mid-market hotel segment. It is one of the fastest and finest growing hotel chains with 30 properties over 22 destinations in India with a presence in all metros and major business cities and leisure destinations. Our presence in all the gateways proves that the chain is widely accepted by business as well as leisure travelers who recognize and trust the brand. These hotels are in various destinations including New Delhi, Mumbai, Chennai, Ahmedabad, Aurangabad, Hyderabad, Lucknow, Trivandrum, Shimla, Manali, Mussoorie, Corbett, and Pune, Nashik, Chiplun, Vijayawada.
For more information, please visit our website address Ravi Benjamin
VANCOUVER, BRITISH COLUMBIA and NEW DELHI, INDIA - (CCNMatthews - April 12, 2007) - The Royal Indian Raj International Corporation (RIRIC) today announced that it has entered into a contract with Choice Hotels India to build at least 12,000 budget-style hotel rooms under the Comfort Inn, Quality, Sleep Inn and Clarion Brands. "This transaction increases RIRIC's current proposed foreign direct investment in the real estate sector under the Integrated Township program and in the Hospitality and Resort sector to over $6B USD" including its Royal Garden Villas & Resorts projects in Bangalore & Hyderabad. RIRIC's hotel initiatives are set to commence over the next 12 months throughout India.
Hotel vacancies in India are rare -- and costly
"India is reaching a new level of demand for hotel rooms. As the economy continues to grow, travelers are paying for pricey hotel rooms -- that's if they're able to find a vacancy. In all of India, there are only about 110,000 hotel rooms, not much more than the number of hotel rooms in New York City," according to the International Herald Tribune.
"Our association with a world leading hotel chain the caliber of Choice Hotels represents an ongoing commitment to excellence for Royal Indian Raj International Corporation. There is a huge demand in the Hotel & Hospitality sector in the Indian Nation primarily in the under represented 3, 4 and 5 star categories. This strategic partnership was forged to address these issues and to establish RIRIC's presence in the hotel and hospitality sector in India. The hotel developments under these Choice brands will be focused on providing quality accommodations and falls within RIRIC's corporate mandate of being "Leaders in Building a New India." - Manoj C. Benjamin, Chairman and CEO, Royal Indian Raj International Corporation.
"We are very proud of our association with the Royal Indian Raj International Corporation (RIRIC). In association with RIRIC, Choice Hotels India will develop, brand and manage and additional 15,000 rooms in the country, in all the key destinations across the brands of Comfort, Quality, Clarion and Sleep Inn. Choice Hotels has one of the largest hotel franchising networks in the country and worldwide with presence of over 5000 hotels across the globe. With this significant partnership, we envisage an exponential increase in our existing room base. This would further add to presence of our hotel brands across the country within India. This would also meet the much needed additional room requirement in the country, especially in the mid market segment.
This will define a new era for the burgeoning hotel industry in India.
With our joint expertise in real estate and hospitality business, this relationship would offer the best hotel value for the growing inbound, outbound and domestic travel sectors across the country. We are very excited about this relationship and look forward to mutually beneficial association." - Vilas Pawar, Chief Executive Officer, Choice Hospitality India.
About Choice Hotels
Choice Hotels International is one of the largest and most successful lodging franchisors in the world with over 5000 hotels worldwide. Built on the foundation of the venerable Quality Inn(R) brand a pioneer in consistent mid-priced lodging, Choice Hotels(R) today is the worldwide franchisor of Cambria Suites(TM), Comfort Inn(R), Comfort Suites(R), Quality(R), Sleep Inn(R), Clarion(R), MainStay Suites(R), Suburban Extended Stay Hotel(R), Econo Lodge(R), and Rodeway Inn(R) brand hotels. Publicly traded since 1996 (NYSE:CHH), Choice Hotels continues to lead the lodging industry as an innovative and growing company.
Choice Hotels India is a master franchisor of Choice Hotels International, offers economy to luxury accommodation under the international brands of Comfort, Quality, Clarion and Sleep Inn. Choice Hotels India has consolidated its position as India's leading chain of value for money hotels in the mid-market hotel segment. It is one of the fastest and finest growing hotel chains with 30 properties over 22 destinations in India with a presence in all metros and major business cities and leisure destinations. Our presence in all the gateways proves that the chain is widely accepted by business as well as leisure travelers who recognize and trust the brand. These hotels are in various destinations including New Delhi, Mumbai, Chennai, Ahmedabad, Aurangabad, Hyderabad, Lucknow, Trivandrum, Shimla, Manali, Mussoorie, Corbett, and Pune, Nashik, Chiplun, Vijayawada.
For more information, please visit our website address Ravi Benjamin
Wednesday, February 2, 2011
Ravi Benjamin.
The Indian real esate Market is really taking off in ia big way. it is perhps the only market in the world worth investing in. the other would be china. However there are tight regulations about investors of foreign ownership actually getting in on the action. India on the other hand is beginning to allow this is a big way. which will be a win-win situation for the both the country and the potential buyer. We shall see how things progress. ravi benjamin
Thursday, January 27, 2011
Ravi Benjmamin Into Post
Ravi Benjamin here...I will be posting any stats on upcoming marketplace in a quarterly fashion. After 10 years of studying the marketplace i am interested in sharing any info that i have gleaned. should be fun..
Bye for now Ravi Benjmamin
Bye for now Ravi Benjmamin
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