Track2Realty Exclusive: Analysts believe most capital in Indian real estate was invested at the exchange rate of around Rs 40-45 to a dollar with the expectation of 25 per cent returns. The currency depreciation has impacted the sector adversely as foreign investors would wait for the full cycle to play out and exchange rate to settle down before taking any fresh investment calls. Even if rupee comes down to below Rs. 60 an exit would mean a loss of around 30 per cent.
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Track2Realty: The multinational companies are increasingly investing through purchasing offices in India with INR 2,470 crores worth office transactions in the last 2 years. There is a seismic shift in the traditional approach of leasing space that such companies have had for years while considering overseas investment. MNCs in the BFSI, ITeS, FMCG & Pharmaceutical sectors are among the lead commercial office buyers in these markets. These are the findings of a report by Cushman & Wakefield.
Track2Realty Exclusive: Tapping NRI money is a wish that kept the developers driving throughout the year with the depreciation in Indian rupee. However, any wishful thought of fall in the currency would be suicidal for the sector in the year ahead as this rupee depreciation would not benefit them as much with NRIs investment as it would affect the foreign private equity (PE) funds which have been the project rider for many of the developers.
Track2Realty Exclusive: The rupee fall may be an opportunity for new investors in property but is also a problem for those already invested. NRI investors who had put in money in Indian real estate due to the high returns are suddenly finding the returns eroded. NRIs who hold premium properties are getting jittery and many have started selling.
Track2Realty: In Mumbai, the residential property prices per square foot have seen a minor increase in Q2-14 as compared to Q1-14. Annual comparison (Q2-14 with Q2-13) shows a 7% increase in capital prices. Rentals of a 3 BHK house have also witnessed northward movement with yearly comparison showing a 3% growth in Q2-14 as compared to Q2-13.
Track2Realty Exclusive: It may sound like a paradox but the rental market of Gujarat city is showing bias in two directions when it comes to the property acquisition on rent. While the housing market is showing rental bias in the negative direction, the same property index is going northwards in the commercial vertical of property.
Track2Realty: The National Green a Tribunal has ordered Resilience Realty Pvt Ltd, a subsidiary of Rustomjee Realty to give notice to prospective purchasers before creating new third party rights in respect of the Rustomjee Oriana project at the MHADA Gandhi Nagar Layout, at Kala Nagar at Bandra East, Mumbai.
Track2Realty Exclusive: The NRI enquiries are unlikely to materialise as sales because Indian real estate has lost its credibility. Moreover, given that general elections are around the corner, real estate is in doldrums as all the black money that has been pumped into realty, is slowly being drained out to fund elections.
Track2Realty-Agencies: The Supreme Court on Wednesday, Aug 27, ordered DLF to deposit Rs 630 crore in 3 months as a pre-condition for entertaining its appeal against the Competition Appellate Tribunal (COMPAT) decision upholding a Competition Commission’s order imposing the hefty penalty.
Track2Realty: Mumbai International Airport Pvt. Ltd. (MIAL), a GVK Led Consortium announced kick starting of monetisation of commercial real estate by finalising lease of one of the parcel, to Oasis Realty Pvt. Ltd. This parcel will have a potential for commercial development of 1.166 million square feet.