A survey was conducted by RICS Global Commercial Property called GCPS, according to which performance of real estate in emerging markets like South America and Asia is much higher than that in more developed countries.
As per the survey, in quarter II, occupiers markets picked up, with increased lease demand as compared to first quarter as indicated by countries. However, the rents continue falling in thirty countries out of 46 countries covered under the survey. On the other hand, in 8 out of 10 countries, there is a continuous increase in available spaces.
Also, the expectations from the third quarter 2010 are much higher. India ranked 6th highest amongst 46 countries on the basis of commercial rents while in case of lettings, it ranked at 13th position. India was able to secure 10th position in field of capital values but still as compared to other countries, investment activity in India was relatively lower. This indicates that investment returns are better in other countries.
Tag Archives: first quarter
June quarter not good for Realty Firms
Since the sales of residential realty are diminishing gradually these days, it is expected that the real estate companies will experience decline in the first quarter of financial year 2010-11. However, it cannot be ignored that the office market is picking up with the economy.
As per the data collected by leading stock brokerages show, it is expected that in the June quarter, the realty companies will undergo around a 20% growth in the net profit and a growth of 38-40% in net sales. As per the data of last year, there had been a net profit of over 80% which certainly brings the conclusion that market has experienced a decline in sales and profit.
A stock analyst with a Mumbai-based brokerage said that as compared to the June quarter of financial year 2010, the numbers look somewhat flat in this financial year.
For instance, the gross margins of DLF were 49% and had a growth of only 4%. Similarly, Unitech’s net profits had a growth of just 1%.