23% of flats in Navi Mumbai lying vacant The newest destination for property investors in the Mumbai Metropolitan Region is the Navi Mumbai-Panvel-Raigad zone. Experts have concluded this based on Census 2011 findings , according to which 23% of houses here are lying vacant. They say that while investors are buying most vacant homes expecting rate appreciations ; genuine buyers are deferring purchase in the hope of a correction in prices. But some experts feel that low occupancy of houses does not necessarily imply a flourishing investor presence. Now a days Times of India too has been reporting on the sorry state of Mumbai real estate. The ads by the builders are down significantly from the huge booklets to just a few pages.
Sunday, 29 July 2012
Thursday, 5 July 2012
Mumbai home sales growth stagnates in June
Posted on 10:30 by Unknown
Article Link
A situation of plenty continues to plague the Mumbai real estate market with unsold inventory amounting to 80,000 units which forms 37 per cent of the total residential supply under construction.
The market stagnated in June due to high prices and most buyers having stayed away expecting an imminent drop in prices in the near future.
The report indicates prices have been moving in a narrow range in the past four quarters as a virtual stoppage of new launches over the past year has constrained supply and cushioned prices from dropping in spite of absorption levels steadily trending downward.
Absorption numbers in FY2012 are estimated to have dropped more than 60 per cent from its 2007 heydays and 35 per cent from FY2011, to an estimated 45,000 units. This steep drop in absorption levels should have resulted in a similar correction in prices.
Sunday, 1 July 2012
FSI for slum schemes hiked to 4 from 2.5
Posted on 19:45 by Unknown
Times of India has the scoop on all this. More good news for builders as they get to build more floors. Bad news for prices as supply increases. Anybody care to comment on the fact that increasing FSI will cause prices to increase ?
MUMBAI: The state government has formally increased the floor space index (FSI) for slum rehabilitation projects from 2.5 to a maximum of 4.
The state urban development department issued a notification on Friday after it got an approval from chief minister Prithviraj Chavan, who also heads the department.
As per the notification, projects involving all high-density slums-those having over 650 tenements per hectare-are entitled to an FSI of 4, whereas those with lower tenement density are entitled to 3.
Senior officials from the urban development department said that the notification highlights that all procedural formalities concerning the higher FSI move are now complete.
After the move to increase size of each rehabilitation tenement for slum dwellers from 225 sq ft to 269 sq ft in 2009, slum redevelopment projects were allowed higher FSI.
A notification under section 154 of the Maharashtra Regional and Town Planning Act ( MRTP), 1966, was issued at that time to allow it to implement the provision pending completion of procedural formalities, including invitation of suggestions and objections from citizens.
These procedural formalities have now been completed and a formal notification issued, a senior state official said.
FSI is a development tool that determines the extent of construction permitted on a plot. It is a ratio of permissible built-up to the total area of the plot. A higher FSI would allow developers additional construction on slum land.
Sunday, 24 June 2012
Lux is up: realtors confident that housing prices will not dip
Posted on 11:31 by Unknown
Another feeble attempt by the paid news media to sucker buyers into their trap
If the Indian economy is booming Mumbai property goes up.
If the Indian economy is slowing Mumbai property goes up.
These morons think that Mumbaikars are lemmings. What is constant in Mumbai is the generation of black money. This could be responsible for the rise in property till now during boom times. However when everything is slow, black money generation too has to be slow.
If existing investors have their black money stuck with builders, how can they take profits and invest in the next venture. I spoke to a broker who said, "Investor ka paisa atka hain, he is ready to discount the price" however the project is delayed so which person in the right mind will buy from the investor when the builder is running out of money. This is in Vile Parle.
I forsee this situation all over Mumbai. Its best to buy I keep repeating ready to move in or resales. This market is stuck in the muck for many years to come. Demand for housing will remain, the smart investor will bring cash to the table and take a discount. Anyone going for too good to be true deals will be slaughtered mercilessly by the brokers
Hindustan Times report
As the Indian economy slows down, the real estate sector, with its back to the wall, remain gung-ho that prices will not dip any time soon.
In a recent realty event in Mumbai organised by CII, top property developers aired confidence that prices in residential realty would remain high. “There is pressure on developers, but that is because of the delays by the state government,” said Sandeep Runwal, director, Runwal Group, a Mumbai-based developer. “The delays are affecting the prices as it would only increase the cost for developers.” And the costs are likely to be passed on to customers.
According to data compiled by international real estate consultants, about 60% of projects launched in metros fall in the luxury category. However, private investors seem to be taking a cautious approach, and are only going in for smaller projects with smaller tenure of investment. “We are treading cautiously and want that the project we invest in is priced conservatively,” said Ramesh Jogani, managing director, Indiareit, a private equity arm of the Piramal Group.
“We are giving preference to smaller projects over bigger ones.” Commercial realty, however, is a different story, with rentals under pressure. “The situation has improved (recently) as the demand and supply currently match, but if supply increases, there would be a pressure on rentals in commercial real estate,” said Cherag Ramakrishnan, CEO, Equinox Realty, the real estate arm of Essar Group.
Sunday, 17 June 2012
Home sales slump by more than 50% in Delhi, Mumbai areas
Posted on 04:11 by Unknown
Article Link
While MMR reported the sharpest drop of around 58%, NCR slumped 57% from the year earlier. Bangalore witnessed a drop of 18% in sales, the report added.
Sales in NCR dropped to 15,104 units from 35,420 units and it fell to 11,473 units from 27,676 units in MMR.
The two regions saw a residential supply of 107,731 and 89,461, respectively, in the first quarter.
Samir Jasuja, founder and chief executive officer, PropEquity Analytics, said, “In the coming quarters, there would be strong pressure on many micro markets and we expect inventory overhang to increase and absorption could continue to slow down. Mumbai in MMR and Gurgaon in NCR have seen the sharpest falls in absorption.”
“If this trend continues, there could be a price correction of 5-20%, especially in the micro markets of NCR, MMR and Hyderabad,” he added.
Bangalore hasn’t been as badly hit because of demand from genuine homebuyers and end-users, apart from the fewer unsold properties.
Sales in the southern city fell 18% to 7,704 units from 9,410 units.
The other two markets are largely investor driven.
“Generally, investor-driven markets would see downward risks than end-user driven markets,” added Jasuja.
While MMR reported the sharpest drop of around 58%, NCR slumped 57% from the year earlier. Bangalore witnessed a drop of 18% in sales, the report added.
Sales in NCR dropped to 15,104 units from 35,420 units and it fell to 11,473 units from 27,676 units in MMR.
The two regions saw a residential supply of 107,731 and 89,461, respectively, in the first quarter.
Samir Jasuja, founder and chief executive officer, PropEquity Analytics, said, “In the coming quarters, there would be strong pressure on many micro markets and we expect inventory overhang to increase and absorption could continue to slow down. Mumbai in MMR and Gurgaon in NCR have seen the sharpest falls in absorption.”
“If this trend continues, there could be a price correction of 5-20%, especially in the micro markets of NCR, MMR and Hyderabad,” he added.
Bangalore hasn’t been as badly hit because of demand from genuine homebuyers and end-users, apart from the fewer unsold properties.
Sales in the southern city fell 18% to 7,704 units from 9,410 units.
The other two markets are largely investor driven.
“Generally, investor-driven markets would see downward risks than end-user driven markets,” added Jasuja.
Thursday, 14 June 2012
Jokers are appalled at the S&P downgrade threat
Posted on 21:29 by Unknown
The jokers at the planning commission install 35L toilets while projecting a 50 cents a day as survival metric for Indian. Scum of the earth can be better then these guys
Minister of State for Planning Ashwani Kumar defended India on Thursday, saying its expected growth rates and projects to boost internal trade and development do not warrant a junk status credit rating. On Monday, Standard & Poor's warned that India could become the first so-called BRIC economy to lose its investment-grade credit rating citing slowing economic growth and policy inaction for instituting economic reforms.
The rating agency cut India's BBB-minus rating outlook to negative in April, meaning it expects to make a decision within a 6-24 month time frame.
The news knocked the rupee and stocks lower. "People are entitled to ask what are you going to do about delayed decisions, what are you going to do about second generation reforms," said Kumar. "But
I am appalled by the suggestion of S&P that India is compared with junk status," Kumar told Reuters. India reported its worst economic growth rate in nine years for the first quarter of 2012, marking a dramatic slide in world's second fastest growing economy.
Gross domestic product growth slowed to 5.3 percent, from 9.2 percent in the same period a year ago. "I recognize that our last-quarter GDP growth figures at 5.3 percent have not given us any comfort," Kumar said during a visit to the United States.
He reiterated a government growth forecast of 7 percent in 2012, and said that despite the difficulties of the global economic situation, India expected an average annual growth rate of 8.5 percent between 2012 and 2017.
Thursday, 7 June 2012
Salman Khan 'overpays' for flat, lands in trouble
Posted on 20:17 by Unknown
I've seen some flats which have a parking lot on each floors. Most brokers say the buyers will convert it to the living space in the future. Salman's case will cause immense grief to these buyers as BMC will slap big fines on these flats.
By Sudhir Suryavanshi | Agency: DNA
Bollywood actor Salman Khan has once again landed in trouble for paying a higher amount than the actual market value of a house in ‘The Address’ building at Bandstand in Bandra (West). Khan has bought a 1,079-square metre carpet area on the 11th floor of the 28-storey building. The building is being developed by Samudra Developers Pvt Ltd of the Dheeraj Group. Besides paying Rs1. 64 crore towards stamp duty, Khan has paid almost Rs20 crore for the said area. “It comes to almost Rs1.80 lakh per square feet, against the market rate of Rs25,000 to Rs30,000. The amount is six times more when compared to the existing market rate. It is quite high. It must be a case of money laundering,” said YP Singh, an activist who played a major role in exposing the controversial Adarsh Housing scam.
Subscribe to:
Posts (Atom)
