Mumbai’s residential home sales dropped to a three-year low in the quarter ended December as record home prices and higher interest rates crimped demand, according to Liases Foras Real Estate Rating & Research Pvt.
The real estate sector has welcomed the CRR rate cut by the RBI and said it will help revive demand in the housing segment.
Global financial uncertainty, shrinking demand, liquidity crunch, repo hike and demand-supply mismatch…all is not well with the commercial real estate in India.
In a macro economic perspective booms and slumps in realty market predominantly affect active investors and traders in property who want to make money on every deal they make.
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One of the biggest problems afflicting the sector is its high level of debt. The debt load of 11 listed real estate companies stands at Rs.38,500 crore.
Market forces of demand and supply are the most potent determinants of price and the developments in the real estate industry during year 2011 is the latest example.
ArthVeda Fund Management (AVFM), a fund management arm of Dewan Housing Finance Corporation (DHFL), India’s 3rd largest mortgage finance company, has launched its second real estate fund – ArthVeda Star.
The year 2011 can best be described as a lackluster year for Indian real estate sector. There were several headwinds that prevented the sector from delivering to its full potential.
Though a depreciating rupee has its fall out on all other economic activity, it is rather helping the Indian property market.