Defying any ears of a market slowdown, liquidity crunch and rising inventories, the April-June period saw a 65% growth in retail mall space supply across India over the previous quarter
Oberoi Realty plans to expand its land holdings in key cities as debt-laden rivals struggling with rising costs and slowing sales look to cut assets.
On 11 March, a major earthquake and tsunami hit Eastern Japan. According to official statistics, the number of deceased had surpassed 13,000 as at 14 April.
A growing number of investors from India are showing interest in Dubai as they look to capitalize on 60 per cent savings per square foot in the Dubai property market, a Dubai-based real estate company has said.
Mumbai saw a steep rise in property prices during the boom period of 2008. However, the economic slowdown in 2009 led to a property market crash which made itself very tangible in Mumbai in the first quarter of 2009, stabilizing by the middle of year and rising again between the 3rd and 4th quarters.
While some reports have predicted correction in Mumbai realty market, Babulal Varma, Managing Director of Omkar Realtors & Developers assert that rising demand and low availability of ready-inventory will make Mumbai the most sought-after property market in 2011.
The economists and the real estate analysts are unanimous over the inevitability of the real estate recovery in India. What is nevertheless being debated is when will the sector revive to its normal course of business. What is even more important is to assess what would be the shape of the recovery. In classical economic definition, three of the commonly used recovery shapes are V, U & L shapes. V-Shaped is a strong recovery after the debacle, U-Shaped is a slower and long-drawn recovery, while an L-Shaped aftermath is where the previous peak is not recovered.
There is no restriction on the number of properties that NRIs can own in India. However, NRIs obviously need to make informed decisions on such acquisitions. The most important consideration is that of whether the property purchase is for their own or their family’s actual use, or as an investment for rental income and potential capital appreciation.
What has been an interesting finding during this fiscal year is the fact that a number of relatively smaller developers but with impeccable track record of delivery and consumer satisfaction are breaking the myth that it is the sheer volume and premium that elevates a company at the Brand Leadership Chart.
Till a decade back such was the mad rush for raising money in the capital market that even the real estate companies with limited presence in select micro markets started launching projects across the country to showcase a pan-India presence. Significant increase in housing demand, organized retailing and liquidity boom from 2003 to 2008, led to huge increase in land prices and real estate values and most real estate companies had a great run.