over-the-past

Mumbai Real Estate Sector can witness Oversupply in 2012-13: Jones Lang LaSalle

by Paul Joseph March 29, 2011 Uncategorized

Mumbai’s residential market is predicted to witness a glut in 2012-13 owing to steady new launches at a time when sales are extremely slow, according to real estate consultancy Jones Lang LaSalle. “The overall sentiments of the market and the consistent rate of new project launches in Mumbai give a clear indication of an impending oversupply by 2012. A lot of developers in the most severely affected locations are currently open to closing sales at lower rates,” said a note by JLL. It points out that bouncing back from the economic slowdown-induced realty slump in Mumbai in early 2009, the rates started rising swiftly until the end of 2010. During this period, a total of Rs 20,000 crore was pumped into land acquisition by developers in Mumbai, Delhi and Bangalore. Of this, Rs 12,000 crore was spent in Mumbai alone, leading to high land valuations and inflated rates. Also, due to the prolonged slump in the commercial realty market, developers focused on the residential market. “Over the past 12 to 14 months, developers from Mumbai and Delhi started focusing on their home markets and launching a substantial number of residential projects. Land was bought at expensive rates and if sales continue to remain dull for longer, there would be a 15-25 per correction,” said Sanjay Dutt, CEO (business) at JLL India. Dutt added that of the total recent residential sales about 65 per cent flats in Delhi and 35 per cent in Mumbai have gone to speculators. These flats are also expected to roll back into the market. According to JLL, real estate prices have already dipped in Parel, Lower Parel, Mahalaxmi, Bandra east, Andheri east, Goregaon east, Kurla and Mulund. The agency points out that after surpassing the peak values of 2008 by 20 per cent by way of correction, the property rates have now slumped back to peak 2008 levels.

Tagged as: commercial, consistent, lower-parel, mumbai, over-the-past, prolonged, property prices, pune, real estate, real estate developers, real estate trends, sanjay-dutt, the-residential, until-the-end

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Slowdown Hits Mumbai Residential Real Estate Market

by Paul Joseph March 25, 2011 Uncategorized

After a one-year period starting in the third quarter of 2009, which saw a strong recovery with a record 40%-plus increase in prices, the Mumbai residential real estate market has been seeing a slowdown over the past two quarters across various micro markets. The past six months have seen the return of negotiability in asking prices, and saw the return from a sellers’ to a buyers’ market . Both registration data and home loan disbursals are indicating a distinct slowdown. The number of apartments being sold in the first quarter of 2011 is considerably lower than in the corresponding period of 2010. Developers who were selling their entire projects in a few weeks are now taking months to sell their unsold stock. Many home buyers are playing the waiting game, anticipating a further correction. The key reasons behind this slowdown are higher prices, higher interest rates impacting affordability, lack of liquidity, scams diluting investor sentiment – and, to a lesser extent, excess supply in a few micro markets. Any slowdown in the economy has not been a key criterion. Many developers and agents admit that sales have slowed down. Gone are the days when large numbers of apartments were sold during the launch itself . The trend of short term speculators booking apartments at pre-launch or launch prices and selling them a few months later at higher prices (as witnessed in early 2010) has reduced considerably. Some of the other trends witnessed over the past six months include developers offering significantly lower rates to customers willing to cough up a 30-40 % down payment.

Tagged as: apartments-were, correction, entire-projects, higher-interest, higher-prices, over-the-past, prices, pune, rates-impacting, real estate, seen-the-return

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Increasing debt load appears to haunt realtors on street

by Paul Joseph February 26, 2011 Uncategorized

India’s large size real estate firm Unitech and its competitor DB real estate, which are being searched by investigating agencies on the portion of telecom licences, have shed approximately two-fifth of their worth over the past three months. Since December 10, the 29-stock ET real estate index has contracted 24% in relation to the 10% decline in Sensex, even if the financial piece of property firms has picked up because of better requirement. DB real estate went community by elevating Rs 1,500 crore in February 2010 to fund its continuing developments and refund its debt. At the occasion of public matter, the firm did not have any profits from its center business of construction housing properties and derived a bulk of its profits by selling transfer development rights (TDRs) which is a piece of terra firma which can be sold by a business undertaking regrowth projects. Although, it placed above a 50% revenues development for the precedent two quarters of the existing financial year by selling TDRs, the firm is yet to evidence sensible sales from its continuing plans. The firm has cut its sum combined debt from Rs 594 crore starting March 2010 to Rs 387 crore as on December 31, that has fetched down its debt-to-equity ratio to a reserved 0.12. But the company had opened a massive dependent accountability of Rs 1,500 crore as on March 31, 2010, which poses an income risk. Unitech Group is improved situated because of improved scheme execution history, as well a burly pipeline of plans to be finished in the close to term. The firm has also decreased its debt burden to a number of extents after lifting a total of Rs 4,400 crore throughout the year broken March, 2010 through skilled institutional assignment. But it is still exceedingly leveraged with a debt-to-equity ratio of 0.40 as of December, 2010, which is moderately high compared to the business average for large-sized real estate firms even though it has abridged debt by Rs 555 crore to Rs 4,617 crore for the quarter ended December, 2010.

Tagged as: financial, over-the-past

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The role of state Government in India property

by Paul Joseph February 22, 2011 Uncategorized

The India property souk is on the step of a colossal change. Property prices in India have increasing over the past three years as builders paid most important arithmetic for terra firma to construct developments of lavishness accommodation, with early prices risings of $250,000 per unit. India is a best ever mounting financial system; industrial development is the back bone of some state. A great number of investments by abroad corporate are taking form. a quantity of the corporate have attendance in India real estate , and plan for most important developments in other states, even as the others are incoming the Indian property market while innovative players. The state governments present an extensive range of incentives to industrial terra firma buyers, to stay their interest breathing. The incentives and promotions begin with discounts on business property price, state tax and infrastructure profits. Companies obtaining immensity property in India, staying prospective development plans, they have a periphery over the other purchasers in phrases of inexpensive terra firma price. Some state governments are almost competing adjacent to each other to impress these money-spinning investments into their states in India properties .

Tagged as: india, india real estate, indian, over-the-past, property prices, property-market

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DLF’s Chennai Mall-Cum-Multiplex Project in Trouble

by Paul Joseph December 15, 2010 Uncategorized

DLF has hit a roadblock yet again in its plans to develop a mall-cum-multiplex in Chennai. The company had entered into an agreement with Madras Race Club (MRC) on December 20, 2006 to take over 5.56 acre on a 66-year lease to promote a mall-cum-multiplex in Velachery, south of Chennai. DLF, which outclassed several other bidders including Unitech, Taj GVK and Rahejas among others to bag the deal, had at that time agreed to pay an interest-free deposit of Rs 60 crore for lease period and Rs 3 crore per month as lease rental from the time of signing the deal. Even almost after four years, the project is yet to take off. “The company was regularly paying the lease rental over these years. But, it has stopped doing so over the past six months,” a person privy to the development was quoted as saying in Financial Chronicle. According to him, with a couple of malls already under construction in that region, DLF thought it would not be feasible to develop another mall. “Hence, it wanted MRC to sell the land, since it had the first right of refusal. However, MRC authorities insisted that DLF develop the mall,” he said. Soon after, DLF stopped paying the lease rentals. MRC is reportedly contemplating a legal recourse. “Things have changed a little in that market. But, we are in talks with them,” said Rajeev Talwar, group executive director, DLF.

Tagged as: chennai, development, over-the-past, property prices, rajeev-talwar, real estate developers, the-development

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ADB Grants $300 million Pack to Bihar

by Paul Joseph December 10, 2010

Asian Development Bank has agreed to channel another 300 million dollars loan to Bihar for the development of state roads.  This is the 2 nd loan from ADB for Bihar’s road development. In this phase, the state government has decided to construct 4 state highways covering 354 kms with an estimated cost of $368.26 million (Rs 1,653.5 crore). In 2008, ADB had provided the state $420 million to build nine state highways covering 820 kms. The state’s road construction department secretary Pratyaya Amrit told that their mission is to develop state highways so that anyone can travel to Patna from any part of Bihar within 6 hrs. Over the past 5 years around 3,300 km of state highways and major district roads has been developed in Bihar.  To carry this development forward, Bihar government is slated to sign a pact with ADB for the new loan in the 3 rd week of December this year. Typically these development loans are given by ADB to the Centre, which, in turn, extends it to state governments in local currency.

Tagged as: over-the-past, state

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Property prices get a 40% elevation

by Paul Joseph December 1, 2010 Uncategorized

NEW DELHI: Over the past six months, Faridabad has been witnessing a quiet revolution. Real estate prices, which had plummeted post 2008 and then plateaued at Rs 20,000-25,000 per square yard last year, have suddenly shot up by 30-40%. Reason — the coming up of the Badarpur flyover. Faridabad Property Pradeep Mishra, a real estate analyst, said, ”The realty market reflects the

Tagged as: coming, estate-prices, over-the-past, property

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Banks hike home, car loan EMIs

by Paul Joseph August 18, 2010

State Bank of India (SBI) announced a similar 50 basis point rise in its BPLR, taking it to 12.25 per cent, effective Tuesday. This means the EMI an ICICI or SBI customer is paying on his loan will also increase. The hike will vary depending on the interest rate you are being charged now and the tenure of your loan, as well as the bank from which you took it. Several other banks too have already increased their BPLR over the past 10 days, including Bank of Baroda, Punjab National Bank, Bank of India and IDBI Bank. But SBI and ICICI – along with HDFC and HDFC Bank – are the biggest of the lenders. “Lending rates of the banks are linked to BPLR, which swings in proportion to changes in the latter,” said R R Nair, CEO, LIC Housing Finance. Bankers, however, offered some consolation. “There will not be an unreasonable hike in the lending rates of the bank, but we should expect a measured increase in the lending rates,” said the executive director of a public sector bank, who refused to be identified. The hike in the BPLR was triggered by the Reserve Bank of India increasing its key policy rates on July 27. The RBI was compelled to do so in an effort to control inflation, which had hit double figures. The central bank is expected to increase its policy rates once again on September 16, by 50 basis points. Source: http://www.hindustantimes.com/Banks-hike-home-car-loan-EMIs/Article1-587837.aspx Filed under: Home loans Tagged: Banks , Home loans , Icici Bank , SBI

Tagged as: executive, home-loans, housing, lending, over-the-past, punjab-national, reserve-bank, sbi, state-bank

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Only 35 percent of all Karnataka Real Estate Projects Under Implementation- Assocham

by Paul Joseph August 9, 2010

Only 35 percent of the Rs.7.33 trillion (Rs.7.33 lakh crore) investment projects in the public and private sectors have been commissioned in Karnataka or are at various stages of implementation, the Associated Chambers of Commerce and Industry of India (Assocham) said Sunday. ‘Though pro-active Karnataka attracted a whopping Rs.7.33 trillion investments till March this year, only 35 percent of them are under implementation, while 65 percent of projects are yet to take off,’ Assocham secretary general D.S. Rawat told reporters here. An assessment by the chambers on ‘Growth Performance in Karnataka’, found that the state attracted 1,346 investment projects over the past decade, with the manufacturing sector accounting for the lion’s share (42.5 percent) of total investments, followed by power (22.3 percent), services (16.2 percent) and real estate (13.2 percent). ‘Global recessionary trends and slow down in the Indian economy last fiscal (2009-10), however, resulted in the poor take-off of investment projects in the state,’ Rawat noted. In the core sector, investment in mining was a mere 1.7 percent, while irrigation witnessed 0.8 percent deceleration last fiscal compared to previous fiscal (2008-09). Similarly, share of investment in real estate declined 6.5 percent during the last two years compared to other sectors though growth year-on-year basis was 0.3 percent in last fiscal. ‘Growth of construction industry is crucial to economy, social and human development which should be sustained by adoption of energy efficient housing sector,’ Rawat pointed out. Out of total investments of Rs.105 trillion the country had in last fiscal from public and private sectors, Karnataka’s share was 7.4 trillion or 7.1 percent. Two-thirds of total investments in the state were by private sector while government sources accounted for remaining one third, the study said. ‘We have laid out multi-pronged strategy for the state’s economic development so that it becomes a lead investment destination. Power sector projects needs to be implemented without delay as it remains a key sector for ensuring economic development,’ Assocham’s southern regional council chairman Ravi Sannareddy said. ‘Karnataka has established a lead in IT related services along with modernisation of ports especially, airports. The state needs to pursue its metro projects with vigour so that steel and cement and other allied sectors grow simultaneously,’ Rawat added.

Tagged as: country, over-the-past, property prices, real estate, real estate developers

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Flat sales drop 30-50%

by Paul Joseph August 3, 2010

The city’s builders seem to have priced themselves out of the market. Sales of apartments, on an average, have dropped between 30% to 50% over the past four months as the end users, discouraged by the high rates, are staying away or postponing their decision to buy their dream house. But developers are not perturbed. Except in 2008, at the height of the global economic meltdown, they have been riding high on the real estate boom that started seven years ago. According to sources, most builders have a good staying capacity and can afford to hold on to their prices despite the drop in sales. A property expert said sales in the suburbs had fallen by more than 40%. “Investors from certain financially rich communities have formed a cartel and are driving up prices.They are trading in real estate by buying flats in bulk and selling in retail. On the other hand, the genuine purchasers are not buying flats at these inflated rates.’’ It is learned that developers artificially jack up rates by, say, more than Rs 1,000 a sq ft, and then act as if they are giving a discount of Rs 1,000 a sq ft to a potential buyer. And in many residential projects, the difference between the built-up area and the carpet area is now almost 50%. Source :http://content.magicbricks.com/flat-sales-drop?utm_source=feedburner&utm_medium=email&utm_campaign=Feed%3A+india-real-estate+%28Magicbricks+Property+Pulse%29 Filed under: Builders/ Developers , Mumbai Tagged: Real Estate in Mumbai

Tagged as: builders/ developers, city-trends, decision, mumbai, over-the-past, real estate, real estate in mumbai

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