Track2Realty Exclusive: NCR and Mumbai account for 60-70 per cent of the total deals, along with some top tier I cities. Some tier II cities are also witness to sizeable land deals. Most of the land purchases will be done by regional smaller players instead of big developers, Cushman & Wakefield (C&W) Executive Managing Director (South Asia) Sanjay Dutt says.
Track2Realty-Agencies: After fashion weeks and wedding exhibitions, India is now set to welcome a first-of-its-kind Real Estate Luxury Show (RLS India 2013), which will serve as a platform for showcasing the properties of the country’s real estate giants.
Track2Realty Exclusive-Yearly Analysis: DLF is raising funds by selling non-core assets, Godrej Properties raised funds through a QIP and HDIL is generating funds by selling transfer of development rights (TDR) and floor space index (FSI) — all to lighten the debt burden. Earlier, companies were building land banks and were rewarded for it in the stock market. Now, they are conserving cash to payback creditors.
Track2Realty-Agencies: The Finance Ministry has expressed the view that the Reserve Bank should allow real estate companies and broking firms to set up banks as adequate safeguards will be there to prevent exposure of promoters to related entities.
Track2Realty: The commercial property market has slowed down, considering it has a strong correlation with global and economic factors and performance. The office segment has seen a pronounced dip, with absorption levels in the two major markets of Mumbai and Delhi-NCR seeing a year-on-year slump of 47% and 26% respectively, as per industry sources.
Track2Realty: India Ratings has revised its outlook for the Indian real estate sector to negative to stable for 2013, from negative in 2012. Demand remains subdued and EBITDA margins low, leading to weak credit metrics for companies in the sector. The agency however sees signs of improvement, in terms of stability of margins and the easing of liquidity pressures, with free cash flows turning positive since H2FY12.
Track2Realty Exclusive Yearly Analysis: Some analysts believe the economy of the scale in the business is helping the developers to hold the stock. They maintain the developer does not put in his own money in financing a project. Even though the cost of land in cities like Mumbai and Delhi accounts for 70-80 percent of the construction cost, at least 50 per cent of the projects are in joint venture with the land owner.
Track2Realty: Amidst a global economic slowdown as a consequence of the US fiscal cliff and Eurozone debt crisis, India’s growth forecasts too have been revised downward over the last three quarters of the year. Even in 2013, it is unlikely that we will see a spurt in growth given the existing inflationary pressures and large fiscal deficit which could adversely impact the scope for policy stimulus in the country.
Track2Realty-Agencies: The government is likely to come up with a Bill in the forthcoming Budget Session of the Parliament to regulate the real estate sector, Housing Minister Ajay Maken said on Wednesday, Dec 9.
Track2Realty-Agencies: CCI’s decision to modify realty major DLF’s apartment buyers agreement in relation to a case involving Rs 630 crore penalty on the firm has sparked a debate about the fair-trade regulator’s jurisdiction and other matters concerning the real estate sector.