Housing sector is expected to face a shortage of supply this year as most of the under construction projects have gone only a halfway through.
The prospective buyers will have to wait for one or two years more for getting their new homes. Though the year 2013 was predicted to see completion of more projects, it won’t happen this year, leading housing sector to face shortage of supply. Continue reading
Godrej Properties, the real estate wing of Godrej Group, has announced its plan to raise Rs.700 Cr. The fund will be raised through rights issue.
MUMBAI: The real estate wing of Godrej Group, Godrej Properties, has announced its plan to raise a fund worth Rs.700 Cr. The fund will be fully utilized for developing its new projects. Godrej Properties plans to raise the fund through rights issue.
Aiming growth and for developing more number of realty projects, Godrej Properties plans to raise Rs.700 Cr through rights issue. Continue reading
Affected by the weak home sales, some top Mumbai Developers have cut down the prices for their new launches.
A few days after the news came out that the property prices have shot up in many of the cities including Delhi, Bangalore, etc., some Mumbai developers said that they have cut down the prices for new launches. Continue reading
In the first quarter of 2013, the new project launches are fewer compared to the last quarter of 2012. New project launches were more in the last quarter of 2012.
New launches fall in Mumbai.
MUMBAI: The first quarter of 2013 witnessed a sharp fall in the number of new launches in Mumbai. The new figure however is compared to the number of new launches in the last quarter of 2012.
The last quarter which is the season of festivals like Diwali, usually have larger number of new launches. Liases Foras reported that the number of new launches were the maximum in this quarter across the country.
Managing Director of Liases Foras Pankaj Kapoor said that Mumbai has only a fewer new launches compared to the last quarter of 2012. The developers are postponing the new launches due to the weak home sales.
Home sales are yet to pick up in the city. The demand for housing units is still not so impressive. This negative market sentiment has been considered as the reason which forced the developers to postpone their new project launches. Continue reading
Delayed projects have hit the NCR residential market. Due to the delay of projects the home sales have dipped in the NCR.
NCR residential market is affected by construction delay.
DELHI-NCR: The prospective buyers are nailed by delay in projects. As per a recent report by Knight Frank states that new launches in the Delhi-NCR has fallen by 31%. It has adversely affected the NCR residential market.
As per the report, NCR residential market has nearly 1,40,000 unsold inventories. Out of this, over 27% is under construction.
As per the Knight Frank India report the 33,500 units were launched in the second half of 2012-13. This shows a fall of 31%. Global property consultant firm warns that the launches will see slowdown in the coming months too, affecting the largest residential market.
Developers are finding it really hard to complete the projects. The escalating prices of raw materials make construction costlier. This prompts the developers to invest more. Difficulty in finding sufficient fund is thus another reason for delayed projects. Continue reading
Home sales, especially of new launches, improved during the period from January to March. The discounts offered by the builders have improved the sentiments of the buyers.
Bangalore and Mumbai witness improved home sales.
US financial major Merrill Lynch’s report stated that the sales of new launches improved. The real estate developers have offered various discounts to woo the buyers. According to the financial major the discounts do have an impact in the home sales.
New projects are launched at attractive prices. Besides they are offered with discounts. Attractive schemes by the developers do woo buyers and investors. New launches by renowned developers picked up sales during the first quarter of 2013.
Though the sale of new launches improved this year, Gurgaon saw a fall of sales. This slowdown is mainly because the builders have been focusing on completion of their ongoing projects. Besides they also focus on clearing the unsold inventories. Rising property prices also impacted the demand for new launches in Gurgaon.
Merrill Lynch said that there will be price correction in Mumbai in the upcoming years. Property prices in Mumbai have appreciated at 14% over the last decade. Continue reading
PropEquity reported that the home sales in NCR have jumped by 46%. The property research firm has tracked home sales over 40 cities.
Home sales pick up in NCR.
Tracking over 45,000 housing projects of 8200 builders, Property research firm PropEquity has reported that home sales in the National Capital Region (NCR) has picked up.
Now NCR sees a revival of home sales. In January, it added, nearly 9000 housing units were sold in the region.
As against the 6032 home sales in January 2012, 8,812 housing units were sold in January this year. With this improved home sales, NCR sees a revival in the region.
Housing demand picked up along with the clarity in land acquisition issues in Greater Noida. Home sales have picked up highly in Faridabad, Greater Noida and Noida Extension. Besides these areas Yamuna Expressway was another area which saw an increased demand for housing units. Continue reading
Delayed clearances for new buildings are one of the key factors that shoot up property prices in India. The Economic Survey 2013 blamed the government for delayed clearances which result in the hike of property prices.
Property prices shoot up as a result of delayed clearances.
According to the Economic Survey 2013 report the property prices shot up in India by 40% due to the undesirable delay in clearances. As the builders are to gain around 34 clearances for starting any project, it takes at least six months’ time for beginning. By the time the property prices rise highly.
Economic Survey for 2012-13 in its report submitted in the parliament pointed that the housing and realty sector faces many challenges in India. One of the main challenges is undesirable delay in clearances.
The Survey adds that the average time taken for all clearances is 196 days. This delayed period alone shoots the property prices up to 40%.
Citing the World Bank’s the latest report by, the survey said that India ranks 182nd in construction clearance processes. Meanwhile the Subcontinent is one of the top countries in terms of housing and work-space demands. Continue reading
Blooming real estate sector makes property investment probably the best investment option. However the returns are more when they are invested in pre-launch properties.
Property investment in pre-launch projects is better as it offers faster returns.
The booming nature of real estate market is one of the main reasons which attract the investors to property investment. There are many who have invested in much number of properties. Other forms of investment are incapable of providing better returns as quickly as property investment does.
For them property investment is a faster means to earn better and higher returns and financial benefits. Bank deposits and other financial schemes are only secondary to the property investment.
The most sought after location for property investment is Gurgaon. In fact the city is more or less has become an investor-driven market. However according to many experts the property prices are rocketing in the city mainly due to the presence of vast number of investors. Continue reading
Real estate sector signaled the bouncing back. Real estate sector has been undergoing a sluggish momentum which the sector has overcome now.
Real estate majors like Supertech and Ansal API have announced their new real estate launches worth Rs.8,000 Cr. The realty majors plan to invest the amount for a period of 4 years.
Meanwhile some real estate builders are looking for options to cut the debts off by divesting their properties. Yet this is not the case for the coming years. Real estate experts opine that the coming years will be booming years for real estate sector. Continue reading