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Saturday, August 22, 2009
Tim Giethner cannot sell his house
if the US treasury secretary cannot price his house accurately to reflect the market, how can we expect any other seller to be realistic in this market.
Wednesday, August 19, 2009
Most property project delays in Ghaziabad, Gurgaon: Study
Ghaziabad and Gurgaon, the satellite towns in the National Capital Region (NCR), led in terms of the highest proportion of property projects delayed in the country, which were scheduled for completion in 2008 and onwards, a new study has found.
Both these suburbs have 71 per cent of projects delayed, as against the total number of projects scheduled for completion in 2008 and onwards, a study by real estate research firm PropEquity said.
In Bangalore, 309 of the 575 projects were delayed and the average delay in these projects was nine months. In Pune, 305 of 665 projects were delayed, with an average of eight months. Mumbai came third, with 233 of 501 projects, with an average delay of nine months, the study said.
“A lot of developers were diverting funds meant for a project to other projects, hence cash flow was an issue. Their order book was more than what they could actually execute. Many smaller developers jumped into the property sector and they could not complete the projects, resulting in delays,” said Samir Jasuja, founder and chief executive of PropEquity.
Thane, Mumbai and Gurgaon ranked first, second and third, respectively, in terms of percentage price drop in apartments in the country, as economic downturn and dwindling incomes of home buyers impacted property sales and led to a drop in prices. Between May of 2008 and 2009, Thane (a far eastern suburb of Mumbai), Mumbai and Gurgaon witnessed a drop of 22 per cent, 20 per cent and 19 per cent, respectively.
Most property project delays in Ghaziabad, Gurgaon: Study
Tuesday, August 18, 2009
Reality Expo-2009 gets good response
Deccan Herald reports. Does anyone think the Times of India article on saturday will be any different ?
The exhibition, that has stalls of around 30 developers and housing finance institutions, is expected to have more than 7,000 footfalls.
The rush to own homes in Bangalore was evident at the registration counter, as Karnataka Ownership Apartments Promoters Association (KOAPA) kicked off Reality-2009, its two-day real estate exhibition, on Saturday August 15th, 2009
The exhibition, that has stalls of around 30 developers and housing finance institutions, is expected to have more than 7,000 footfalls.
It will continue at the Grand Ashok on Sunday, between 10 am and 8 pm. The registration fee is Rs 50.
The exhibition features a huge project map of Bangalore City with the various properties of the participating builders marked on it. All the top-of-the-line industry players — including Total Environment, Golden Gate, Sobha Developers, Vaswani Estates, Mantri Developers, Gopalan Enterprises, Puravankara Projects, Brigade Group, Ranka Group, Vakil Housing Development Corporation and Kristal Group — have put up stalls at the venue.
Upcoming high-end projects, including Mantri’s Espana and Purvankara’s Venezia, had many enquiries on the first day. The stall put up by Total Environment — highlighting the use of natural materials like wire-cut bricks and exposed form-finish concrete — also got the visitors coming in. Some of the visitors found the prices steep, but were content with the choices on offer.
“The exhibition helps in keeping a tab on the actual property prices in Bangalore. The different finance options under one roof, also help the decision-making easier,” said Deepan, a chartered accountant.
Finance options
The developers are also offering financing options in association with many banks. That apart, LIC Housing Finance, ICICI Home Loans and HSBC have put up stalls at the expo. “We are offering a flat rate of Rs 5,000 as processing fee, and not the normal rate of one per cent of the loan amount taken. If the documents are pucca, we are also offering spot loan approvals,” said Sridhar, Area Manager, LIC Housing Finance, that also sponsors Reality 2009.
“The event offers a great opportunity for the buyers to avail competitive prices and special offers by builders and financial organisations,” said Mr Balakrishna Hegde, President, KOAPA. The expo was inaugurated Mr S K Mitter, Director and Chief Executive, LIC Housing Finance Ltd.
The rush to own homes in Bangalore was evident at the registration counter, as Karnataka Ownership Apartments Promoters Association (KOAPA) kicked off Reality-2009, its two-day real estate exhibition, on Saturday August 15th, 2009
The exhibition, that has stalls of around 30 developers and housing finance institutions, is expected to have more than 7,000 footfalls.
It will continue at the Grand Ashok on Sunday, between 10 am and 8 pm. The registration fee is Rs 50.
The exhibition features a huge project map of Bangalore City with the various properties of the participating builders marked on it. All the top-of-the-line industry players — including Total Environment, Golden Gate, Sobha Developers, Vaswani Estates, Mantri Developers, Gopalan Enterprises, Puravankara Projects, Brigade Group, Ranka Group, Vakil Housing Development Corporation and Kristal Group — have put up stalls at the venue.
Upcoming high-end projects, including Mantri’s Espana and Purvankara’s Venezia, had many enquiries on the first day. The stall put up by Total Environment — highlighting the use of natural materials like wire-cut bricks and exposed form-finish concrete — also got the visitors coming in. Some of the visitors found the prices steep, but were content with the choices on offer.
“The exhibition helps in keeping a tab on the actual property prices in Bangalore. The different finance options under one roof, also help the decision-making easier,” said Deepan, a chartered accountant.
Finance options
The developers are also offering financing options in association with many banks. That apart, LIC Housing Finance, ICICI Home Loans and HSBC have put up stalls at the expo. “We are offering a flat rate of Rs 5,000 as processing fee, and not the normal rate of one per cent of the loan amount taken. If the documents are pucca, we are also offering spot loan approvals,” said Sridhar, Area Manager, LIC Housing Finance, that also sponsors Reality 2009.
“The event offers a great opportunity for the buyers to avail competitive prices and special offers by builders and financial organisations,” said Mr Balakrishna Hegde, President, KOAPA. The expo was inaugurated Mr S K Mitter, Director and Chief Executive, LIC Housing Finance Ltd.
Sunday, August 16, 2009
Change of plans
I just came across this article on DNA India and I am really appalled by the justified two timing by the real estate developers and builders. Is this even legal?
"Residentials hot, commercial space not.
Many commercial property areas are supposed to be only commercial. Its a way to ensure that there is uniform distribution of activities and that there is equitable growth withing the city's numerous sub sections. Also these builders claim incentives like cheap electricity and water from the civic authorities for commercial projects.
India has none or non existent zoning rules, you can mix educational, shopping, recreation, residential, commercial and industrial units in any city block without any awareness of consequences. Does this mean that zoning only for demarcating and industrial land. Why should a builder that owns a piece of land intended for commercial use - that can generate thousands of jobs and provide nearby residents place to shop, be allowed to switch to residential plans. Such haphazard plans not only lead to uneven development, it gives rise to unnecessary skewing of prices.
The same article also quotes
On a Lighter note with the swine flu scare, I am hoping the rush of people to the city will at least pause :) and open some window of opportunity. :) FYI I genuinely think Pune will bottom post Diwali - at least in suburbs.
"Residentials hot, commercial space not.
With developers forced to return to the drawing board to make projects financially viable, the landscape is, indeed, changing."
Many commercial property areas are supposed to be only commercial. Its a way to ensure that there is uniform distribution of activities and that there is equitable growth withing the city's numerous sub sections. Also these builders claim incentives like cheap electricity and water from the civic authorities for commercial projects.
India has none or non existent zoning rules, you can mix educational, shopping, recreation, residential, commercial and industrial units in any city block without any awareness of consequences. Does this mean that zoning only for demarcating and industrial land. Why should a builder that owns a piece of land intended for commercial use - that can generate thousands of jobs and provide nearby residents place to shop, be allowed to switch to residential plans. Such haphazard plans not only lead to uneven development, it gives rise to unnecessary skewing of prices.
The same article also quotes
"Inventory days in the two cities have fallen back to early 2008 levels or better. However, the overhang in Bangalore, Chennai, Gurgaon and Hyderabad remains significant with at least 15 months of inventory in the pipeline," Goldman analysts Vishnu Gopal and Aditya Soman wrote.
Well, if GSachs is right, then I don't see how the over supply is going to be filled at current rates. In cities like Pune, there have been lot of shady dealings where builders have given huge discounts but have prolonged delivery of the house. This very similar to the years 1997-2000 where rates were decreasing but not collapsing.On a Lighter note with the swine flu scare, I am hoping the rush of people to the city will at least pause :) and open some window of opportunity. :) FYI I genuinely think Pune will bottom post Diwali - at least in suburbs.
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