The shortage of labour, a fund crunch, high interest rates and steep input costs have hammered the net profits of major real estate developers in the second quarter.
NRI demand would help offset the liquidity problem, which is presently affecting realty sales.
Investors ICICI Venture and PremjiInvest as well as a lender of Subhiksha Trading Services have objected to the cash-strapped retailer's merger plan with Chennai-based Blue Green Constructions and Investments, in which it acquired a 40 per cent stake in June last year.
The time is opportune for realty firms to switch over to building affordable houses.
Asks lenders to make sure that end use of advances to commercial real estate.
With the global meltdown badly affecting the real estate industry in the state, especially in Chennai, builders and potential consumers are adopting a 'wait and watch' strategy before purchasing property, according to industry experts. Chief marketing officer of www.indiaproperty.com a portal which gives a platform for builders and customers), K Gopalakrishnan said, "the meltdown has made potential customers postpone purchases."
Mumbai, India's financial capital, is set for a mega transformation with a massive patch of land opening up for redevelopment; a new metro railway ready to start services by the year-end; and the country's oldest railway station, the Chhatrapati Shivaji Terminus, going for modernisation with private sector participation. Work on Mumbai's second airport will start from next month, while construction of the sea link connecting central Mumbai to Navi Mumbai has already moved into a fast lane despite Covid-induced lockdowns. Also, a coastal road project, connecting Nariman Point to Worli, is under way and will help decongest the city to quite an extent. Of all these mega infrastructure projects, the one that has a huge potential to change the city's skyline is the Eastern Waterfront project - to be built on the Mumbai Port Trust (MbPT) land.
With their home markets in turmoil, large global investors such as Blackstone, Carlyle, Morgan Stanley, JP Morgan and the Government of Singapore Investment Corporation are actively scouting for and signing deals in the Indian property sector.
.jpg)
The existing shareholders will get one RPL share for each RCom share (of Rs 130 market price) held.
On Wednesday, rupee depreciated to an all time low of 60.72 against dollar.
The party's CM choice came as a surprise for many as the low-profile, first-time legislator was not seen to be among the top contenders for the post.
The fact is evident from the conspicuous absence of advertisments on attractive offers by property developers in the print media here, which is relatively high during the current festive season. Developers Prakramsinh Jadeja and Pravin Patel admit to having fewer number of queries for buying as well as selling of both residential as well as commercial properties.
Axis Bank was the top gainer in the Sensex pack, surging around 4 per cent, followed by M&M, HDFC Bank, ITC, SBI, ICICI Bank, Maruti, Kotak Bank and Sun Pharma. On the other hand, HDFC, Titan, Nestle India, Bharti Airtel, ONGC and Infosys were among the laggards.
Auctioned properties are 10-20 per cent cheaper than the market prices.
Experts attribute this to economy slowdown and political uncertainty with the general elections round the corner.
In 2011-12, the state attracted new investment commitments in the real estate sector worth over Rs 1,200 crore (Rs 12 billion).
UK's leading department store chain Debenhams has so far opened two stores in India alongwith its franchisee partner, Planet Retail.
Sensing a correction in the real estate sector, commercial banks have become selective in lending to new residential and commercial real estate projects.
At Rs 340 a square feet a month, the nine-year pact is among the costliest.
"Clearly there is a slowdown in the number of deals. . . interest rates have gone up from eight per cent in the past to now 12 per cent and prices too have gone up but an asset bubble is not there," ICICI Bank Joint Managing Director Chanda Kochhar told PTI. She said that a correction was expected as the present slowdown was in number of deals and not so much in prices.
The marginal increase in absorption is expected to be accompanied by a drop in the number of new launches by 8 per cent to 72,113 units during 2014.
If you invested in property for capital appreciation, it may better to get out now than later as prices are not showing signs of turning up soon
It isn't everyday that Donald Trump comes to Mumbai. Today is that day.
Pawar said he was upset that his three sisters were dragged into this.
The turmoil in the global financial markets has cast its shadow on India's largest real estate deal. Delhi-based developer BPTP Ltd, which was banking on overseas institutions to fund the acquisition of 94 acres of prime land at Noida for Rs 5,006 crore, has sought an extension to pay the first instalment of the money.
The Delhi-based Parsvnath Developers received $47 million (Rs 186 crore) from twoSaffron Group funds to develop a residential and shopping complex on a now-defunct bus depot at Kurla in central Mumbai. The Mumbai-based Lodha Group got $54 million from a HDFC-sponsored, Mauritius-based fund. The fund will take a 45 per cent stake in a special purpose vehicle, which will develop projects in Hyderabad, Lodha said in Mumbai on Thursday.
The tables have turned. Organised retail, which used to cite real estate as its first constraint, is being wooed by developers as there is a sudden surplus created by completion of pending projects and new construction. According to an industry analyst, the rental for a retailer used to constitute 4-5 per cent of its total revenue in the years 2001 and 2002, rising to 7-7.5 per cent in the later years. Industry analysts believe a retailer's profit would get eroded
The real estate industry is witnessing a slowdown. In anticipation of rates to fall, consumers are postponing their purchase plans. Developers, for their part, are finding it difficult to access cheap credit with banks reluctant to lend to them. Both residential and retail demand has moderated though the demand for office space remains strong. Inspite of this, most property cos are expected to post reasonably good Q4 results. Builders are banking on mid-income projects.
Sun Pharma was the top gainer in the Sensex pack, rising over 5 per cent, followed by IndusInd Bank, Tech Mahindra, ONGC, Bharti Airtel, Infosys, ICICI Bank and Bajaj Auto. On the other hand, Kotak Bank, Nestle India, Titan, Bajaj Finance, HDFC Bank and NTPC were among the laggards.
Real estate market in the national capital region is likely to be hit by the steep rise in steel & cement prices. Caught between oversupply of sales of residential properties and rising steel & cement prices, property developers may be forced to review property prices. But realty developers will not pass on the burden to buyers and will try to absorb the shock of the rise in steel & cement prices. Pushing up real estate prices may hinder potent buyer from buying properties.
L&T Infra is undertaking a public issue of 'Long Term Infrastructure Bonds 2011 A-series'.
Property sales have been sluggish and the sector has been facing headwinds. So, firms are in wait-and-watch mode.
RBI's move to keep interest rates unchanged may hit the real estate sector. With rising home loan rates, home sales in metros are likely to be affected.
The sell-off in the equity markets, especially by foreign institutional investors, could have a ripple effect across asset classes and adversely impact consumer spending.
"Gone are the days of euphoric buying. Today, people are doing calculated buying. They are doing thorough due diligence, checking out the location," said Kunal Banerji, president, M3M India.
Rising prices in the real estate sector in Bangalore, the IT capital of the country has turned the attention of several realtors to Chennai, a city which is slowly but surely set to beat Bangalore in the real estate space.
The report estimates that direct commercial real estate transactional market will exceed $1 trillion per annum by 2030, compared with nearly $450 billion in 2012.
The report estimates that direct commercial real estate transactional market will exceed $1 trillion per annum by 2030, compared with nearly $450 billion in 2012.
© 2026 Rediff.com - Investor Information - Advertise with us - Disclaimer - Privacy Policy - Sitemap - Feedback - About us - Terms of use - Grievances