Track2Realty: Across micro-markets, investor sentiment has been impacted due to inflationary pressures and rising interest rates through the course of 2012, which have only come down marginally with a few policy revisions by the apex bank in the second half of the year.
Track2Realty: Western suburbs of Mumbai are set for a facelift through redevelopment post the new Development Control Rule (DCR). Ravi Sinha speaks to Lalit Kumar Jain, CMD, Kumar Urban Development and CREDAI President to understand whether it would add more pressure on the existing crumbling infrastructure of the suburbs. Excerpts of the interview:
Track2Realty: In the annual report by global real estate consultants Cushman & Wakefield, “Main Streets across the world”, Mumbai witnessed the highest rental growth globally. Colaba Causeway in Mumbai recorded a rental increase of 75% over last year, on the back of strong retailer demand and continuous preference for prime high street properties in the city. Kolkata – Park Street (5th) at 53.8% and Chennai – Khader Niwaz Khan Road (10th) at 36.7% were among the global top ten cities to register highest annual rental growth.
Track2Realty Exclusive: Mumbai real estate is on its way to bounce back to normalcy this Diwali after a couple of years of turmoil where many economists were clueless as to how a demand-supply product can challenge the conventional wisdom of economics where prices are going northwards and transaction the other way.
Track2Realty Exclusive: Many believe the current level of housing inventory is limited and hence many of the companies are launching their projects in phases. The current spate of launches in Mumbai has opened up an inventory of 5,000 plus premium residential apartments aggregating Rs 7,200 crore at market average of Rs 12,000 per sq ft. A majority of the inventory on offer is for the premium residential segment.
Track2Realty Exclusive: The Mumbai property market seems to be determined to break the jinx this festive season with new launches, offers, changed marketing formats and even price correction. If the market trend so far is any indication, it is quite apparent that the developers have gone through the learning curve in the last 2-3 years and are now determined to break the jinx. In this endeavour to bounce back, buyers are smiling all their way to property search and in the process the city property market is defying the collective consciousness of being an over-heated realty market.
Track2Realty: The primary advantage of going in for a resale flat would lie in buying a home in a strategic location where no new supply is coming in. If one has personal cash resources at one’s disposal and is not reliant on a home loan (a home loan on a very old property cannot be taken for granted), buying a home in a project that is 20 years or more in age can be a good investment bet if the residential property is in a strategic, high demand location with low or no new supply. This would mean that the project would come up for redevelopment, ensuring a tidy profit to the owner.
Track2Realty: MCHI-CREDAI property expo kick started on Thursday, Nov 1, at BKC grounds, Mumbai, featuring over 15,000 properties with over 120 developers participating. Axis bank is the co-organiser of the exhibition.
Track2Realty: Real estate sentiment remains fragile, most notably in the occupier markets in Europe, as the global economy continues to face strong and persistent headwinds. The recession in Europe, coupled with only modest growth in the US and a slowdown in China has resulted in global economic prospects being no more certain than in the previous quarter. These are the findings of These are the findings of the latest RICS Global Commercial Property Survey.
Track2Realty-Agencies: Demand & supply mismatch is proving to be the burden for developers now, at least in the funding market. Most of the PE deals in the year so far has fallen into residential projects. PE players are investing in projects for shorter duration and with better cash flows.