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utkarsh amitabh
Feb 11, 2011, 8:57:08 AM2/11/11
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From: 99acres.com <property...@99acres.com>
Date: Fri, Feb 11, 2011 at 10:52 AM
Subject: Mumbai, Delhi Realty Prices To See Correction Of 10-15%
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From: 99acres.com <property...@99acres.com>
Date: Fri, Feb 11, 2011 at 10:52 AM
Subject: Mumbai, Delhi Realty Prices To See Correction Of 10-15%
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Property Headlines : February 01,'11�
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Mumbai, Delhi Realty Prices To See Correction Of 10-15% Increasing interest rates are likely to see customers defer purchases. Real estate prices in parts of Delhi and Mumbai may correct 10-15 per cent in the next few months, as rising interest rates could see customers defer their buying decisions, according to builders and real estate experts in these cities. Mr Rajesh Goyal, chairman, RG Group, a Noida-based builder, anticipates home prices in Delhi to correct 15-20 per cent in the next few months. Prices have gone up 40-50 per cent in the last 7-8 months. "When prices increase, people start deferring," he said. Mr Goyal says that though land prices have doubled in many areas in Delhi from Rs 1-1.5 lakh a metre to Rs 2.5-3 lakh a metre, there are hardly any transactions at these prices. In Mumbai, where primary sales have dried up, the situation is more acute, say experts. “Sales have gone down,” said Mr Pankaj Kapoor, CEO, Liases Foras, a non-brokerage real estate research firm. "In the last 3-4 quarters, builders indulged in artificial sales by transferring the ownership of 300-400 flats to investors, brokers or underwriters. We flag such projects," he said. 4 Feb 2011 Business Standard Realty Prices To See 10-12% Rise In '11 In Bangalore Realty prices in Bangalore are expected to witness a rise of 10-12 per cent in 2011 on the back of rise in input prices along with hardening of interest rates. However, demand will remain strong with sound volume growth for most of the realty developers in the current calender year despite a possible rise in home loan rates. "Demand will remain robust and there will be sound volume growth in Bangalore as the interest rate hike will not substantially increase home loan rates," Mr Sushil Mantri, president of Confederation of Real Estate Developers' Association of India (CREDAI)-Karnataka said. He also said that there was minimal inventory level in Bangalore market after encouraging absorption last year. Referring to South Indian market, he said there was no noticeable rise in property prices like Northern and Western part of the country in the last one year. "Price rise in last one year was around five to 10 per cent across properties last year," Mantri said. However, he said operating margin would be under pressure this year on the back of rising commodity prices. 31 Jan 2011 Business Standard Realty Boom In Ahmedabad Creates Problem For Its Residents Since the last few years, the construction business has become the most profitable trade even in the crowded walled city, Ahmedabad. A large number of new commercial and residential buildings have come up here with the support of powerful people of the area. Walled city localities like Manek Chowk, Raipur, Kalupur, Dariapur, Gandhi Road and Ratan Pol have become major business hubs in the last two decades. With realty prices in other parts of the city going through the roof in the last 4-5 years, the demand for residential property in walled city areas has increased immensely. The construction industry that has sprung up to meet this demand has created new problems which have made people living or doing business in the area for long, very vulnerable. It is also alleged that many commercial and residential complexes built in the area do not comply with government norms for safety. 31 Jan 2011 DNA Nitco Eyes Realty Nitco, a well-known player in ceramic tiles, has bought 100-acre land in Alibaug near Mumbai valued at around Rs 500 crore. It is planning to build luxurious villas in Alibaug. "We have bought 100 acres in Alibaug and now we have total land bank of over 120 acres in India," said Mr Vivek Talwar, managing director, Nitco. "We will be launching projects on Alibaug land within two years," he said. Of late, many builders have queued up for developing properties in Alibaug. Presently Samira Habitats is one of the biggest developers in Alibaug and is selling independent bungalows costing at least Rs 50 lakh and going up to a couple of crores. 2 Feb 2011 Hindustan Times DLF Trims Its Expenses The December quarter performance did not negate concerns on the outlook for DLF Ltd. However, the country’s largest realty firm fared in line with expectations if one were to look only at revenue and profit growth. The realty major posted a 22.4% year-on-year (y-o-y) and 4.7% quarter-on-quarter (q-o-q) growth to Rs2,479.9 crore. Operating profit also jumped 39.7% y-o-y and 26.8% q-o-q to Rs1,178 crore as a result of relatively lower expenses. Raw material costs as a percentage of sales fell by 440 basis points (bps) q-o-q and 90 bps y-o-y to 38.4%. On the whole, DLF’s total expenses as a percentage of sales were lower by 60 bps y-o-y and and 850 bps q-o-q at 61%. One basis point is one-hundredth of a percentage point. With this, operating profit margin (OPM) for the quarter at 47.5% was higher by 590 bps y-o-y and 830 bps q-o-q. DLF's management reiterated that the focus on margin protection shall continue with "due moderation in volumes", if required. With just one more quarter to close fiscal 2011, the realtor’s sales could fall short of its sales guidance. In the nine months till date, the firm sold 6.5 million sq. ft, a little over half the guided target for the year. Analysts feel that when extrapolated annually to nine million sq. ft, there will be a shortfall of 25% from the lower end of the targeted 12 million sq. ft. This will hamper investor sentiment, given that higher interest rates could also keep demand subdued. 1 Feb 2011 livemint.com HDFC Increases Lending Rates By 0.25% Housing mortgage lender HDFC has hiked the retail prime lending rate for both existing and new customers by 0.25 per cent with effect from 1st Feb, 2011. "HDFC has increased its Retail Prime Lending Rate (RPLR) on which its Adjustable Rate Home Loans (ARHL) is benchmarked, by 25 per cent with effect from February 1, 2011," it said. HDFC said the rate hike has been done in line with hardening of interest rates in the economy. Last week, the Reserve Bank had hiked its key policy rates by 0.25 basis points each to check rising inflation. Following the hike many lenders said they would hike interest rates. 2 Feb 2011 profit.ndtiv.com Realty Exposure Of Banks Grows 20.4% In Dec 2010 The Reserve Bank of India has revealed that the credit off-take by the realty sector grew by 20.4 % on a y-o-y basis in December 2010 as compared with a growth of 14.5% in the previous year. On a financial year basis, it grew 14.4% against a decline of 5.3 % a year ago. 1 Feb 2011 news.in.msn.com DLF To Come Up With Six Realty Projects DLF Ltd., India's largest property developer by sales, plans to begin six housing and commercial projects this quarter to raise cash to reduce its large debt. The four residential and two commercial projects total 8.4 million square feet, the company said. The largest of the proposed projects will be in plotted townships covering five million square feet, while it will also introduce two luxury housing projects, the company said. 1 Feb 2011 The Wall Street Journal Cheaper Rates Encourage Realty Developers To Move To Small Cities With realty developers heading towards smaller towns and cities in north for development, the realty prices are expected to surge this year. Market experts feel that the development of infrastructure and availability of land at cheaper rates are attracting the developers to set up projects in these cities. Realty major Emaar MGF that is coming up with a 3,000 acre integrated township in Mohali (outskirts of Chandigarh) plans to invest close to Rs 2,500 crore into the project. Construction work is on for about 100 villas that have all been sold out, around 70 bungalows and pent houses at the site. An official from Taneja developers and Infrastructure (TDI), coming up with a 300 acre township - TDI City in Mohali reiterated, "The prices in the outskirts of Mohali are almost one-fifth the prices prevailing the Chandigarh city. The plots in our project are currently priced at Rs 20,000-22,000 per sq yard, which is expected to go up by Rs 10,000 per sq yard this year. Whereas in Chandigarh the prices range between Rs 1 lakh to 1.5 lakh/sq yard. We have just revised the prices for our apartments at Rs 2,200/sq ft and it is expected to go upto Rs 2,800/sq ft this year. We have already handed over the possession of 400 plots and 15-20 villas, that have been priced at Rs 50 lakh. The group housing work is on at full swing and it will be ready within the next eighteen months for possession." 3 Feb 2011 The Financial Express Milestone To Make Investments Of Rs 160 Cr In Housing Projects Milestone Capital Advisors, the private equity firm with focus on real estate investments, is about to close two deals worth Rs 160 crore. The firm which is in final stages of negotiations with real estate developers in Mumbai and Delhi will buy a minority stake in two residential projects by this month. The investment will be made through its third fund, Milestone Domestic Scheme III, a Rs 500-crore domestic fund, which will be deployed fully in real estate projects in metros. Milestone, which is in fund-raising mode, has raised about Rs 160 crore for the third fund so far. It is learnt that Milestone is close to making another big ticket investment from their fund jointly set up with IL&FS. Among one of the top deals in last year, IL&FS Milestone Realty Advisors Ltd, had picked up 74 per cent stake in 247 HCC Park, a 1.8 million square feet commercial property located in Vikhroli in Mumbai for $122 million. 4 Feb 2011 sify.com Property Tax Hike Proposal In Karnataka Dumped The BBMP Council has dumped the idea of executing the proposed 15 per cent hike in property tax as suggested by Commissioner, Mr Siddaiah. The assurance came from Mayor Mr S K Nataraj, when the Opposition members protested against the move during the Council meeting, saying that the Palike had no right to do so when development work was not visible in the City. The Palike Commissioner had suggested that as per the Karnataka Municipal Corporation (KMC) Act, a hike of at least 15 per cent could be affected every three years. Since the Self Assessment Scheme (SAS) was introduced in 2008, it was now time to effect a hike of at least 15 per cent. 1 Feb 2011 Deccan Herald 12 Lakh Sq Ft Of Land On Sale In BKC This year, those looking to buy commercial space in Bandra Kurla Complex will get more options. At least 12lakh sq ft of land may be put up for sale after the Mumbai Metropolitan Region Development Authority (MMRDA) sells of this space as additional Floor Space Index to buyers. MMRDA is expected to make Rs1,400 crore from this deal. "We are selling nearly 12 lakh sq ft of FSI to these builders. This will mean there will be more space to build commercial areas in BKC," a senior MMRDA official revealed. The FSI of a plot of land determines how much a builder can build on that plot. The FSI that has been sold is in G Block, the most lucrative commercial destination in the Bandra Kurla Complex. It houses offices of major banks and the Bharat Diamond Bourse. The state’s urban development ministry in May 2008 had doubled the FSI for G Block from 2 to 4. At least 178 hectares of land were affected by this order. Anyone who had 100 sq ft of land and was earlier allowed to build an area of 200 sq ft would now be allowed to build up to 400 sq ft on this land. However, builders and owners such as the National Stock Exchange, ICICI, IL&FS and UTI, who had constructed before the notification came, did not get the benefit of the increased FSI. 1 Feb 2011 Hindustan Times New Property Tax To Affect 2.27 lakh Owners In Mumbai The new taxation system, if introduced by the Brihanmumbai Municipal Corporation (BMC), will significantly increase the property tax, which will be evaluated on the new capital value. This new taxation system will affect owners of 2.27 lakh properties in the city. The civic body, which had planned to introduce the new taxation system from April 1, 2010, is already behind schedule in implementing it. Determined to ensure that the new system is implemented at least partly, the BMC has now planned to send new property tax bills to those 2.27 lakh property owners whose data is ready with the civic body. Mr Rajiv Jalota, additional municipal commissioner, said, "Out of total 3.5 lakh properties in the city, we aren't yet ready with the records of about 1.2 lakh properties. Hence, rather than waiting to get the complete data ready, we will start sending out bills to those whose records we possess." 2 Feb 2011 Hindustan Times
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