Track2Realty Exclusive: 100 days of governance may be too short a time to evaluate or judge the performance of a government or its impact on any given business. But the Gujarat real estate is so euphoric with the new government at the Centre that it seems they have not only regained some of the lost ground but also carry 100 new hopes ahead.
Track2Realty Exclusive: There are very few property markets across the country where the developments have been holistic. Some have grown as the residential zones, while others have developed as commercial zones. Even in commercial segment certain markets are known as retail markets while the rest of the markets have more office spaces. The locations close to the Central Business Districts (CBDs) get to see a few hospitality projects. Navi Mumbai, however, defies this growth pattern of the property market.
Track2Realty Exclusive: In 2010 when Le Meridien Coimbatore, a Rs. 300 crore project of Appu Hotels, announced to open a nine-storeyed hotel with a total built-up area of seven lakh sq ft, spread across a 6.75 acre plot, there were not many takers. The critics either termed it as an over ambitious project or a venture that was ahead of time.
Track2Realty Exclusive: Analysts believe most capital in Indian real estate was invested at the exchange rate of around Rs 40-45 to a dollar with the expectation of 25 per cent returns. The currency depreciation has impacted the sector adversely as foreign investors would wait for the full cycle to play out and exchange rate to settle down before taking any fresh investment calls. Even if rupee comes down to below Rs. 60 an exit would mean a loss of around 30 per cent.
Track2Realty: Ever since the new government’s announcement of its intent to build a hundred smart cities in India, the nation has been abuzz with definitions of, fund allocations for, and city identification of such development. With good reason too, since the implementation of such ambitions would ultimately result in national wealth creation—to help our cities become sustainable and livable urban centers of growth.
Track2Realty: It is commonly believed that the Indian festive season induces property purchase solely because religious sentiments are high during this period. Likewise, it is a commonly accepted notion that the attractive schemes and freebies that Indian developers offer during the festive season have something to do with the increased sales. Apart from and creating an unduly negative impression in the eyes of global observers of Indian markets, such an assumption does not give Indians the benefit of intelligence.
Track2Realty: Indian real estate market witnessed a significant change in the last decade mainly backed by opening up of FDI in the sector and shift in preference to high-rises over traditional low-rise structures, according to a report.
Track2Realty: India’s economy grew 5.7% y-o-y in Q1 2014 (April–June) beating market consensus forecasts of 5.3%, and showing signs of recovery following annual growth numbers of between 4.4% and 5.2% in each quarter between Q1 2012 and Q4 2013.
Track2Realty Exclusive: It may sound like a paradox but the rental market of Gujarat city is showing bias in two directions when it comes to the property acquisition on rent. While the housing market is showing rental bias in the negative direction, the same property index is going northwards in the commercial vertical of property.
Track2Realty: The residential real estate market across leading cities of the country is unlikely to see any traction before the upcoming festive season, when demand is expected to improve. While buyers have held off purchase decisions in anticipation of lowering interest rates, developers have been waiting for the festive season before launching special schemes and discounts to boost housing sales.