Monday, January 04, 2010

Mall mania fades in Mumbai

Among the biggest developers to make this switch is realty firm Dynamix Balwas (DB Group), which shelved its ambitious retail venture to build the country’s largest shopping mall (over 10 lakh sq ft) in Dahisar after spending over a year planning and designing it.

The developer is now constructing low-income, budget homes on the land purchased for the Rs700-crore Dahisar mall, which was to be called Ozone Orchid. The group had earlier converted a mall project in Kandivli into a housing complex.

Orbit Corporation, a south Mumbai realtor, has also decided to convert a 2.5 lakh sq ft commercial development called Hafeez Contractor House in Lower Parel into a residential project. Ackruti City converted its more than 7 lakh sq ft mall space at Andheri into a residential and commercial complex. Dreams Mall, spread across

Mall mania fades in Mumbai

10 comments:

Anonymous said...

Many Malls would be empty all around India soon. Unlike the commercial RE slump in US:



* REAL ESTATE * JANUARY 4, 2010 * WSJ

Real estate faces a tough slog to recovery.
In the U.S., government aid to housing market is being phased out; commercial sector faces a glut of space.

Real estate, which sparked the global economic downturn in 2008, struggled to recover in 2009. But the path to a full return to health is littered with land mines that could send the sector spiraling downward again, possibly upending the nascent economic revival.

The past year’s progress in the housing market has relied on government programs that are scheduled to be phased out. The commercial real-estate market is faced with huge amounts of unoccupied space and a deluge of defaults and foreclosures that are putting new stresses on banks and other financial institutions already are on life support.

The outlook for 2010 is uncertain, at best.

On the bright side, U.S. housing markets stabilized in 2009 as the Federal Reserve’s policies drove mortgage rates to 50-year lows for much of the spring and autumn. Home prices posted six consecutive months of modest gains through October. The supply of foreclosed homes for sale has declined, in part the result of a program President Obama’s administration launched in February designed to keep at-risk borrowers in their homes.

But the underpinnings of the positive trends are fragile. The Fed brought down mortgage rates by committing to purchase as much as $1.25 trillion in mortgage-backed securities. That program, already extended once, is set to expire in March.

Rates could rise by a full percentage point after those purchases end, sapping any housing recovery, says Ronald Temple, portfolio manager at Lazard Asset Management. He predicts that prices could fall by 15% to 20% if the program ends as planned in March.

Home sales also have been supported by an $8,000 tax credit for first-time buyers. It, too, was set to expire in 2009 but was extended by Congress through the first half of 2010.

Anonymous said...

Bonuses are setting new records. There are very little regulatory changes. The zero-interest money continues to flow. Rather than decreasing the systemic risk, it is very much increasing vis a vis centralization.

As to the “slashing Wall Street’s debt” comment - LOL. Wrong.

Financial Sector debt:
Jan. 1995: $3.8 Trillion
Jan. 2000: $7.4 Trillion
Jan. 2005: $12.0 Trillion
Jan. 2009: $17.1 Trillion (peak)
Oct. 2009: $16.5 Trillion (latest data available)

Yeah, that’s a real “slashing”. To the bone. How will Wall Street survive?

Venkateswaran K Iyer said...

Ultimately, the Indian malls will be populated and will be used.

Ultimately, Indians will stop living like beggars.

USA has more malls than it needs. They will just deteriorate in the desert.

India's RE has a future.

US RE has a future if they sell everything to Indians, Chinese and Mexicans. Otherwise it is just a pyramid in the desert

Anonymous said...

Talk about super bubbles!!

shailesh said...

India's Puzzling Prices

Roses, footballs, and ice cream. These are a few of the goodies India's data gathers propose to include as they tweak how they measure inflation.

More inclusive? Sure, but that won't solve the problem of price measurement in India. In fact, some of the changes afoot could lead to a wider disconnect between price measurements and what Indian's pay for day-to-day living.

The wholesale price index -- India's most widely watched inflation gauge-- is currently measured on a basket of 400-odd goods against their prices in the 1993-94 fiscal year. The plan is to triple the size of this basket and update the base year to 2004-05.

Certainly, updating data measures that have outlived their usefulness makes sense. The problem, though, is that wholesale prices don't reflect the experience of India's average citizen.

Well as they say: Lies, damned lies, and statistics

shailesh said...

What drives real estate prices in India?

Anonymous said...

I am convinced that the only reason India has a slow growth and all kinds of problems is because of its number one problem - rampant corruption.

What is the way corruption can be bought down in India? Because people have been lamenting about corruption for the past 50 years and nothing has changed.

I think the one big thing which enables corruption is opaqueness. I wonder whether using the internet anything can be done to expose corrupt people/bureaucracy in India??

Thoughts, folks??

Anonymous said...

anon@ 12:00PM

The media has already been playing an active role against corruption.

One thing that needs to change is public apathy. Why do we criticize corruption and pay bribes when our work is delayed? Bombay-wallahs are quick to criticize corruption but how many of them showed up to vote in the recent elections? We are a chalta hai civilization and unless we change, there won't be an end to corruption.

Rushabh said...

a question
will corruption thrive in a paper less economy?
I mean when no one uses paper money for transactions, and only cards and electronic transfers are used

rajni sharma said...

Hey this is really very nice post...
Nd one of your best post...Thanks
Flats in kolkata