Track2Realty-Agencies: Real estate industry and property consultants today hailed the RBI’s decision to cut key policy rates, saying that it is a positive step that would boost housing demand and encourage foreign investment in the sector.
Track2Realty Exclusive: The real estate clan in the NCR region has come a long way ahead particularly with the housing sector most likely to witness a notable recovery, by the second half of 2013. The rising prices and high interest rates of the RBI have caused a drastic slash in sales. Adverse market dynamics such as high debt, piled up inventory and depressed market conditions took the sector for a rather harsh toll.
Track2Realty Exclusive-Yearly Analysis: DLF is raising funds by selling non-core assets, Godrej Properties raised funds through a QIP and HDIL is generating funds by selling transfer of development rights (TDR) and floor space index (FSI) — all to lighten the debt burden. Earlier, companies were building land banks and were rewarded for it in the stock market. Now, they are conserving cash to payback creditors.
Track2Realty: Today there is no entry barrier in the sector for any fly-by-night operator with black money to back his initial pomp and show to lure customers. But for a serious start-up there are many perils that plague. Problem is all the voices are being raised to ease only a section of the developers with often myopic vision with regard to the future of the sector.
Track2Realty-Agencies: The Bombay High Court has cleared the way for construction major Shapoorji Pallonji and Co. to sue Qatar Airways for Rs 59 lakh with interest.
Track2Realty: The commercial property market has slowed down, considering it has a strong correlation with global and economic factors and performance. The office segment has seen a pronounced dip, with absorption levels in the two major markets of Mumbai and Delhi-NCR seeing a year-on-year slump of 47% and 26% respectively, as per industry sources.
Track2Realty-Agencies: The fate of the Real Estate Regulatory Bill hangs in balance even after PMO steps in to resolve differences between two ministries—Housing and Urban Poverty Alleviation and Urban Development— threatening to further delay the long pending Bill. The PMO has reportedly stepped in and directed the warring ministries to quickly resolve their issues over the bill which aims to protect property buyer’s interest from unscrupulous realtors.
Track2Realty Exclusive: The capital city is witnessing a face lift with various infrastructural initiatives, increasing prominence of satellite towns and emergence of new business districts. The Master Plan 2021 aims at making Delhi “a global metropolis and a world class city” for which necessary initiatives are being undertaken by both the Government and the private sector.
Track2Realty Exclusive-Yearly Analysis: To say that Indian real estate is standing on a shaky foundation would be like stating the obvious. Pressure is increasingly building on Indian developers. High mortgage rates and the slowest economic growth in nearly a decade are taking a toll on demand. Costs are rising, too. The Price of steel and concrete has jumped to double digit. The pipeline of cash has already dried up.
Track2Realty: Tata Housing has announced a non-binding MoU of Rs. 3500 crore with the Government of Gujarat at the Vibrant Gujarat Summit in Gandhinagar, yesterday. This agreement represents Tata Housing’s persistent efforts to create sustainable affordable townships and has been planned for the suburbs of Ahmedabad.