Track2Realty Exclusive: Analysis of East Zone
The transaction activity registered in Kolkata in 2012 was down by 42% during Q1-Q3 2012 compared to the year ago period. The subdued demand is the result of the uncertainty prevailing in both the global as well as domestic markets. Most of the corporates have trimmed their expansion plans and instead looking at consolidation to optimize their real estate usage and bring down the costs.
Ravi Sinha: I have a question here, and I will be very frank with Mr Tripathi. Any journalist who writes on real estate finds it very amusing that the sector has always tried to put the ball in the government’s court. Since you have been part of the government, how far will you agree to this?
Track2Realty Exclusive: The Indian real sector has evoked mixed response to the Union Budget 2013-14, though by and large there is optimism within the sector. Here are some of the responses—
Track2Realty Exclusive: Wading in troubled water, when the Indian real sector was looking for direction through the Union Budget 2013-14, the Finance Minister seems to have given symbolic relief to the sector by encouraging the home buyers but at the same time has denied the sector some of the long pending substantive demands. To allow an additional tax deduction of Rs 1, 00,000 on interest rate for home loans up to Rs 25 lakh, the Union Budget has aimed to give more boost in low cost housing segment.
Track2Realty Exclusive: Analysis of South Zone
Bangalore is the only major metro in the country which saw a year-on-year increase in take-up of office space in 2012. The total take-up increased by 9% to 8.3 million sq ft in Q1-Q3 2012, from 7.7million sq ft in the year-ago period as a number of occupiers took-up space for their future requirement for consolidation and expansion.
Track2Realty Exclusive: These are the logical road to reforms and cutting time on approvals. Such a move will go well with the government and thus reinforce the confidence of the buyers also.
Track2Realty Exclusive: The Indian real estate today stands at a crossroad where it seems the government is confused, the developer is confused, the financer is confused and the buyer is confused. They all seem to be in a wait and watch mode but not sure as to waiting for what. While the government is sitting over two crucial bills that has far reaching implications on the future of Indian real estate, reforms and regulation means different things to different stake holders. With a tectonic shift expected this year, all the stake holders are evaluating their own cost-benefit.
Ravi Sinha: All said and done, land acquisition bill is going to be a reality. What are the issues that make you so critical of it? Is it just the fresh cost of acquisition?
Track2Realty Exclusive: West Zone Analysis–The cumulative take-up levels recorded between Q1-Q3 2012 in Mumbai and Pune were the lowest when measured up against transaction activity recorded during similar time frame since 2009. In Mumbai, the first three quarters of 2012 witnessed a total take-up of 2.4 million sq ft which was approximately 44% lower when compared to 2011. Similarly, transaction activity registered in Pune were in 2012 were down by 36% during the same time frame.
Ravi Sinha: The point here is how feasible are the wishful thoughts of the sector in 2013?
Sunil Dahiya: The commercial essence of our product has been taken out. Now the consumer is saying let me wait for something, and he is waiting in eternity for something better to come. What he is waiting for, we also don’t know. So, the consumer has been loaded with confusion, and we are loaded with a product which is dead.