Growth in the property business in Asia Pacific this year will be driven by many countries and not just China as in the recent past, according to DTZ survey. The region’s solid performance will be supported by strong growth in the use of equity for investment as opposed to debt, intra-regional investment, and increasing willingness of banks to lend, the company says in its research report Money into Property 2012.
Lanco Infratech Ltd, the power producer, is reportedly seeking buyers for a real estate business it values at 27 billion rupees ($483 million). According to the sources close to the development the company has asked investment banks to submit proposals to manage the sale.
The annual monsoons have always been perceived both as a rural blessing and an urban curse – they are good news for the agrarian sector and the bane of water-logging prone cities. However, this caricatured mind-set is breaking.
More than 30% of retail mall space against the projected supply for the first half of the year were deferred, says Cushman & Wakefield report on the retail real estate market. A fresh mall supply for H1 2012 stood at 2.27 million sq. ft. (msf). Approximately one million sq.ft. of expected mall supply was deferred to second half of the year or next year. The overall vacancy rate for the major cities as of H1 2012 stood at 19.6% marginally higher than the previous quarter.
Realty sector may appear to be bullish and project that downside is over with rosy forecast ahead, yet the decline in fortune is far from being over. As a matter of fact, the learning in the last four years has made most of the leading players to restructure their project portfolio and shed the flab.
Does it reflect a disconnect in the luxury housing where demand of high-end units is 16% but supply is as high as 80%? “Not Really.” says Anmol Haval DGM, Sales & Marketing of City Corporation Limited (CCL) which has launched ‘Sweet Water Villas’, an exclusive project of limited edition villas at ‘Amanora’, the first integrated township being developed under the special township policy of Government of Maharashtra.
It is a latter-day fact that project development on the outskirts of Indian metros begins before the necessary infrastructure has been put down. This happens because demand for developed spaces in cities like Mumbai, Delhi, Bangalore and Chennai is high enough to make even hastily established projects financially feasible for developers.
Real estate-focused Private Equity Funds are looking at investing in pre-leased commercial projects, including IT Parks and Special Economic Zones (SEZs), as they look for assured returns from their investments.
Various issues plaguing the real estate sector will be discussed at a conclave to be organised here on Friday by Confederation of Indian Industries (CII). The Real Estate Conclave 2012 will be inaugurated by Maharashtra Minister for Housing Sachin Ahir, CII said in a statement.
Over the last year, there has been an unequivocal crystallization of Indian cities that continue to attract serious investment into real estate. This is directly correlated to the economic dynamics now working in the country. If India is to achieve even a conservative GDP growth of 6% per year, it emerges that only three cities – Mumbai, Delhi and Bangalore – have the potential to deliver. The reason for this is that close to 2/3rd of the overall development of office space in the country is now taking place in Mumbai, Delhi and Bangalore.