Track2Realty Exclusive: The property rates and cost of living in the metros like Delhi, Mumbai and Bangalore have been soaring drastically over the years and owing to this, these cities have reached a kind of stagnation in terms of real estate and retail growth. This scenario has shifted the focus of investors as well as the customers towards the tier II & tier III cities.
Track2Realty Exclusive: A Crisil Research report maintains that absorption of new residential units across six key cities is likely to increase at a compounded annual growth rate of 7 per cent in the next two years, with Mumbai registering the highest CAGR of 14 per cent in the next two years due to huge pent-up demand. Meanwhile, the Bangalore realty market is likely to see a stable rise in sales with firms such as Sobha Developers Ltd and Prestige Estates Ltd benefiting.
Track2Realty: Mumbai witnessed the launch of approximately 18,000 real estate units during the first half of 2013; representing an increase of 30% compared to the first half of 2012. Of the total launches, 30% were witnessed in the western suburbs of Mumbai which had the highest share in new launches at locations like Andheri, Bandra, Malad and Goregaon. Navi Mumbai contributed 24% of the overall launches with the second phase of a large township project launched in Panvel.
Track2Realty Exclusive: The RBI needs to put its act together before its next monetary policy review on July 30. In the wake of sluggish pace of economy, the Reserve Bank’s status quo on key policy rates in its last monetary policy sent a wave of disappointment in the industry.
Track2Realty: The much debated Land Acquisition, Rehabilitation and Resettlement Bill, 2012 (LARR Bill) was cleared by the lower house of parliament in the first half of the Budget session. This crucial Bill that seeks to replace the antediluvian Land Acquisition Act, 1894 with a fresh legislation wherein the component of compensation for resettlement and rehabilitation of the project affected families is added.The Bill covers land acquisition including for infrastructure and industrial developments bringing in government, quasi- government and other.
Track2Realty Exclusive: The opening up of retail in multi-brand and single brand is likely to push up the demand for more space throughout the country. On a rough estimate, this sub-segment needs, over the next few years, close to 20 million sq feet of space, which have to be built in accordance with the international standards.
Track2Realty: SARE Homes has launched ready-to-move-in apartments called “Dewy Terraces” in its residential township called SARE Crescent ParC located on the OMR road in Chennai.
Track2Realty-Agencies: With real estate in East Africa fast emerging as a big opportunity, Reliance Industries, in a joint venture with Delta Corp, has purchased land worth Rs 200 crore in Kenya for development of housing and office properties and is already making good profits.
Track2Realty Exclusive: The TINA factor also poses the biggest risk for investors in real estate at current level. The fact that real estate prices are all time high at a time when the economy is faltering with GDP growth coming off from a 8.4 per cent in 2010-11 to level of 6.5 per cent and below forecast ahead should ring a warning bell for investors.
Track2Realty Exclusive: Data for the past few years show that real estate has been a rewarding asset class. For example, in 2011, one of the worst years for equities when the Sensex fell nearly 25 per cent, prices of homes in most Indian cities remained firm despite the overall economic uncertainty, both in global and domestic markets.