Reliance Mutual Fund new issue closes on 31st May
Reliance Mutual Fund has launched Reliance Fixed Horizon Fund-XIX-Series 5, a close-ended income scheme.
The investment objective of the scheme is to generate regular returns and growth of capital by investing in a diversified portfolio of central and state government securities and other fixed income/debt securities maturing on or before the date of maturity of the scheme with the objective of limiting interest rate volatility.
The new issue closes on 31st May. The minimum investment amount is Rs5,000.
Birla Sun Life Mutual Fund new issue closes on 6th June
Birla Sun Life Mutual Fund has launched Birla Sun Life Fixed Term Plan-Series DD, a close-ended income scheme.
The scheme seeks to generate income by investing in a portfolio of fixed income securities maturing on or before the duration of the scheme.
The new issue closes on 6th June. The minimum investment amount is Rs5,000.
Delegation meets Maharashtra chief minister. Experts back NGOs’ demand for concrete government initiatives
High real estate prices have led many home buyers to opt for rental accommodation over the past few months, perhaps in the hope that house prices would cool off. Now, it seems, that this is causing a rental housing shortage which is also heating up rental costs.
On Tuesday, a delegation of non-governmental organisations met Maharashtra chief minister Prithviraj Chavan and urged him to take steps to create housing stock on land occupied by the railways and the bus transport undertaking in Mumbai, with a special emphasis on rental housing.
Some experts concur with the view and have supported the petition, saying that the shortage of rental housing is climbing to a worrying stage.
"It is typical to focus only on the mega cities which have a lot of economic activity and therefore a large quantum of inbound workforce to drive rental demand. If we factor in the 30-plus cities in India, with populations of more than a million, that also generate considerable demand for rental accommodation, the problem increases in size," says Ashutosh Limaye, director-strategic consulting, Jones Lang LaSalle India.
The biggest segment in demand is the mid-end sector which caters to the average salaried class. The problem is that participation by the organised realty sector is low and only a handful of projects are taken up by the unorganised sector. And as the sector consolidates, there is a high chance that the shortage of rental accommodation will get more acute.
Data from the government stamp duty department shows a 35% rise in the number of lease agreements in Mumbai in 2010.
The delegation that met the chief minister has asked for the land locked away under the now repealed Urban Land Ceiling Regulation Act to be made available for rental housing. Incidentally, MMRDA declared in 2009 that it would start a rental housing scheme, but this has not materialised yet. However, a couple of weeks back, news came of environmental clearance granted for 25,000 rental housing units in the Thane and Raigad areas. These houses will be aimed mostly at the low-end segment.
"The MMRDA model is a good example of how government agencies can boost the rental housing sector. It is a workable and unique model than can be tried in all congested cities across the country," said Mr Limaye. "However, the government alone cannot service the whole bulk of demand for rental housing single-handedly. This means that the private sector has to become more involved."
An area that also deserves attention is the imbalance in the availability of rental accommodation for those who are single and for those with families, which exists in most cities.
Sanjay Chaudhary, business head of Indiabulls Housing Finance points out, "Mumbai is facing a huge-demand supply gap in the housing sector, with less than 50% of the demand being met." High prices have kept customers away from buying houses. But the shortage of rental accommodation that is building up will add to their worries.
Navi Mumbai, Worli and Andheri are said to be areas that offer rental accommodations at reasonable rates. It is estimated that rental value has gone up by 11% in the last one year. According to estimates on 99acres.com, an internet realty portal, in the Palm Beach area, in Navi Mumbai, rental rates have shot up by as much as 47% in the last one year.