There is a clear disconnect between what home buyers want and what they get. And it is here that the home buyers are ready to pay more to get what they see to believe. While the frequency of launching new residential projects have declined in the last year or so, there is also sizeable inventory building up that is available for buyers who are willing to make that investment.
While buying a house majority of the Indians have now matured to pay for ready-to-move property than a castle in the air. No wonder, despite the high appreciation potential, the new launched projects have few takers and there is hardly any market for a pre-launch offer. Thanks to the poor delivery of the real estate developers, unmet commitments and execution risk involved, at least the end users are not interested in new launches anymore.
Bandra Kurla Complex was created by MMRDA as an alternate CBD to Mumbai, with the express purpose of halting the further growth of offices and commercial activities in South Mumbai. Currently, BKC has a total stock of 8 million square feet of office space. An additional supply of 2.5 million square feet is expected in 2012 with the completion of The Capital, FIFC and TCG Finance Centres.
If you look the FDI side of the story over the years, initially there was an influx of a lot of foreign funds and in 2007, it was driven by the US. But the 3-4 years that investors have been here, we have seen a lot of selling. So a lot of investors withdrew or reduced their portfolio and even though being a fund, we found ourselves putting our hands into the acquisitions, marketing etc. It was not our comfort zone and we have been playing the role of a developer instead.
While buying a house majority of the Indians have now matured to pay for ready-to-move property than a castle in the air. No wonder, despite the high appreciation potential, the new launched projects have few takers and there is hardly any market for a pre-launch offer. Thanks to the poor delivery of the real estate developers, unmet commitments and execution risk involved, at least the end users are not interested in new launches anymore.
Housing demand is expected to remain subdued in short-to-medium term…
First influencers, then catalysts and now storming into what can be conveniently called last male bastion—Real Estate. Indian Mothers have indeed come a long way to prove that a challenging job of realty business can be managed along with the family responsibilities and upbringing of the children. Track2Realty salutes a few of such Case Studies on the eve of Mother’s Day.
When the Finance minister Pranab Mukherjee proposed home buyers to withhold 1% of the sale consideration as Tax Deducted at Source (TDS), it became a free-for-all kind of football match with developers and property consultants alleging that it could encourage black money component in real estate, while tax consultants believed otherwise and pointed out that the reach of the banking sector in rural area makes it easier to detect unsavoury deals.
By: Sameer Gholve, Manager – Capital Markets, Jones Lang LaSalle…
The Competition Appellate Tribunal (Compat) has said a new Bench will decide the DLF case wherein the realty major has challenged CCI’s Rs 630 crore penalty on it and the final hearing has been adjourned to July 18.