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
28 comments:
Diversion of funds leading to project delays
The prime reason behind project delays in Delhi-NCR has been the diversion of funds by all the major developers. During the boom time, they had over-booked their projects and then failed to deliver their commitments. In fact, the immediate impact of the global slowdown on the Indian residential real estate market was most visible during the second half of 2008. And then, many under construction projects got delayed due to a sudden and rapid contraction in demand. This was accompanied by a significant drop in the residential real estate supply statistics across India as many developers adopted the cautious approach and deferred their plans for any new launches for the rest of 2008.
Hiranandani to launch affordable hsg project by year end
Hiranandani Constructions, one of the largest property developers in the country, looks to launch its first mid-income housing project by the year end, to mark its foray into affordable housing sector, a top company official said.
Hiranandani is looking at cities such as Panvel, Nashik, Pune in Maharashtra and Ahmedabad in Gujarat to launch its affordable projects in the country, the official said. "We are working on the plans now. The launches depend on getting approvals from the government and authorities,'' said Niranjan Hiranandani, managing director Hiranandani Constructions.
The tier ii / iii real estate story - then and now
Moreover, developers today have woken up to the fact that there is only limited capital available to real estate players today – capital that is earmarked for residential projects, construction funding against achieved leases and signed contracts, or for cities displaying sufficient demand even in subdued market conditions.
Knight Frank puts off plan for India-focused property fund
According to a report by global research firm Preqin, private equity real estate funds are still struggling to raise capital in the current economic environment. In the April-June quarter, 21 real estate funds made aggregate commitments of $10.3 billion, down 72.16 per cent from the $37 billion in the year-ago period.
The interest from private equity funds has waned due to slowdown in the sector in the past nine months. Only three PE deals, worth Rs 600 crore (Rs 6 billion), have taken place in the realty sector in the past nine months, as against Rs 40,000 crore (Rs 400 billion) worth of deals during the same period in 2008, according to Venture Intelligence, which tracks venture capital and PE investments.
The future for urban India
The difficulty is compounded by the fact that there does not exist an institutional framework to approach the questions comprehensively. One institutional barrier is India’s Constitution; urban development is a state subject, and therefore the solutions, such as they are, remain piecemeal. The second major problem is the dearth of institutional capacity. India does not have trained urban professionals, the data that do exist are fragmented, rules are made on the fly, land transactions are opaque, and there is no strategy or vision, nor a way to get to one. If India is going to have any hope of handling an urban growth of at least 250 million people in the next two decades, it has to begin by creating institutional capacity. It is time to get serious about the coming urban age.
Double-dip recession fears are growing
By Paul R. La Monica, CNNMoney.com
On Tuesday August 18, 2009, 9:55 pm EDT
Even though the number of jobs lost in July came in far lower than economists' estimates, it's foolish to try and argue that the loss of 247,000 jobs in one month is a good thing.
What's more, the unemployment rate -- at 9.4% -- remains near a quarter-century high. So even if consumers do what they usually do in the second half of the year and spend a bit more due to the back to school and holiday seasons, a pickup may be temporary.
"We're in the camp that thinks the recession is over but with a big asterisk. The recovery won't feel like one for consumers and there is still a significant risk of a double dip," said Sal Guatieri, senior economist with BMO Capital Markets in Toronto.
The Greenback Effect .
By WARREN E. BUFFETT
Published: August 18, 2009
Unchecked carbon emissions will likely cause icebergs to melt. Unchecked greenback emissions will certainly cause the purchasing power of currency to melt. The dollar’s destiny lies with Congress.
A must watch, we need to gear up with the changes especially the art of unlearning and how best we can bring up our kids.
What we see as an investment today may not be an investment in times to come.
http://www.youtube.com/watch?v=sIFYPQjYhv8
http://www.youtube.com/watch?v=jpEnFwiqdx8
Alll the best!!
Bindas Bhai
exactly dear BB,
What you say today as good investment opportunity i.e, RE, will become big liability tomorrow.
Bindas Bai is a real estate agent and holds property , so he will always ask you to buy property. Just like a sweetshop owner will encourage you to eat sweets even when you are diabetic.
You apply your own brain. Bhindas Bai has got so many abuses on this website, but is still emailing here. So you should understand his purpose. This is a timepass forum and you should not take the advice seriously. thanks.
Arre!! Ignore Bindaas Bhai. When he was a child he fell on his head and since that time he has this habit of being delusional or lying...Mother tried to thrash him and improve him but its a bit difficult he is a mental case does not take his meds too..what to do?
He has no property and no job. Just goes around boasting and talking big. He is just trying to fool people. Like I said before ignore him and also stay away from the lies of his friends/property agents you will be a happy person.
-Samajhdar Behan
Ekta bullied on her own land
Says Ekta, “The police’s attitude is shocking. I’m going to create a huge uproar about this. RNA builders are using all kinds of muscle power to get us out of our own land. If this can happen to Balaji, can you imagine what happens to ordinary people?” Says Balaji lawyer Sandeep Singh Sidhu, “There is a status quo order by Mumbai High Court. Without honoring that particular order, RNA played quite dirty. All their papers are forged. Their claims have been thrown out of Thana court and Mumbai High court. I think RNA approached the local police and they tried to dispossess us forcibly at around 5 pm on Tuesday. The way they’ve gone about it anything could have happen.”
Heavy retail demand in realty: Builders
Hiranandani: The good news is that, in the last 60 days, we have seen sales of almost 7,000 apartments in the Mumbai region alone, spread in all sectors of the real estate market, but specially focused on the lower segment.
Can you provide proof Mr. Hiranandani? Or should we just trust your words? How may of these properties were registered?
Hiranandani: I think the price point from January 2008 to today would be 30-35% lower.
Well I can't be like BB, you know.
Come Sep, data on frauds to aid lenders
Mumbai: Lenders in India will soon be able to look up in a database, the names of people who have defrauded banks and finance companies here, even study their modus operandi.
The Credit Information Bureau (India) Ltd (Cibil), which tracks the credit history of commercial and consumer borrowers, will launch in September the first national, centralized database of fraudulent financial activities.
Mortgage delinquencies hit record high in Q2
By ALAN ZIBEL , Associated Press
Last update: August 20, 2009 - 4:34 PM
WASHINGTON - With the recession throwing thousands of people out of work daily, more than 13 percent of American homeowners with a mortgage have fallen behind on their payments or are in foreclosure.
The record-high numbers released Thursday by the Mortgage Bankers Association are being driven by borrowers with traditional fixed-rate mortgages, rather than the shady subprime loans with adjustable rates that kicked off the mortgage crisis. As of June, more than 4 percent of all borrowers were in foreclosure, while about 9 percent had missed at least one payment.
"Their confidence has been shattered," said Brian Bethune, chief U.S. financial economist at IHS Global Insight. "They are going to be very conservative. They don't want to be blind-sided by a false dawn economy."
Prime Mortgages Are Also Going Sour
August 20, 2009 |
Once upon a time, people liked to think that the mortgage problems were contained to the subprime market. It was just a problem of irresponsible people on the wrong side of the tracks. That is clearly no longer the case.
While as a percentage, subprime mortgages are still much more likely to be delinquent or in foreclosure than are prime mortgages, there are far fewer subprime mortgages than prime mortgages. In absolute numbers, there are far more bad prime mortgages than bad subprime mortgages.
Even the Anti-Virus - McAfee is not immune from Real Estate Virus....
Rise of the Super-Rich Hits a Sobering Wall
Air India Slashes Salary
http://business.rediff.com/slide-show/2009/aug/21/slide-show-1-air-india-to-slash-staff-salary.htm
BB Eats $hit
Accenture Lay Offs
http://business.rediff.com/report/2009/aug/21/tech-accenture-to-lay-off-senior-execs-by-7-pc.htm
BB Eats $hit
Anon @ 2:32 AM
This post is not by retired old man or retarted old man as he used to write in different construct.
moreover it does not have "....." multiple dots .
Jhasi ki Rani Vanadana mohan - can you please find out the IP of this post? You have gone into sleep mode.
don't believe what most people claim to be on internet. with that postulate ,I don't believe that vanadana mohan is a computer expert and can track an ip. Neither she knows anyone who can do it for her. So stop requesting her for these things. Neither it is possible for her to track IPs.
With all due respects vanadana mohan ji, I can trust you if you can tell me the ip of this comment. Its a fixed IP which are easiest to track of all. If you can post that, I will make you my Guru in IP technology.
Mantralaya makeover is India's costliest
This is ridiculous. All folks of Mumbai should protest and ask Govt to move out this prime space. They can work in same manner anywhere else in state. Why occupy prime land? In US all state capitals are second or even third tier cities. Why prime area of Nariman point be developed on public expenses for selected few.
India Real Estate Facing An Estimated 4 Year Depression
Despite a growing economy, the Indian real estate market faces a long list of challenges. A lack of mortgage financing, low rental yields, and stalled development projects are just some of the reasons India is looking at an estimated 4 year depression in housing.
india real estate
House prices in big Indian cities continued to fall during the first quarter of 2009, having begun to slide in 2008. Households are deferring purchases in anticipation of further price falls. Property developers are trying to entice buyers through price cuts and other incentives – usually to no avail.
Yet although house price increases were supported by these strong fundamentals, speculation also played a role. From 2000 to 2006, residential property became significantly less affordable. By 2002, a residential property in Mumbai cost around 85 times the average annual average income. By 2006, residential properties in Mumbai cost 100 times the average annual income.
Affordable houses, unaffordable locations
The affordable housing segment may be fraught with challenges, but it surely offers developers an opportunity to tap a huge realty market that is estimated to cross over Rs 300,000 crore by 2011. One can gauge how mammoth the scope in this sector is from the fact that more than 2 million housing units would be required by 2011.
Mumbai, with a market size of Rs 647,00 crore, has a housing requirement of 404,673 units, which would need 324 million sq ft. Similarly, NCR requires 547,434 units that would be spread over 438 million sq ft. It market size is expected to grow to Rs 876,00 crore. On the other hand, Bangalore’s 327,694 units would come up over 262 million sq ft and its market size would reach Rs 524,00 crore by 2011.
Experts say that the size and value of units varies from city to city. “In larger cities such as Mumbai, units measuring 1,000-500 square feet can by no yardstick be considered 'affordable',” says Anuj Puri, chairman & country head, Jones Lang LaSalle Meghraj, a property consultancy.
On the outskirts of Kolkata, however, housing units of 450-600 sq ft can be had for Rs 5.5 lakh. Same is the case with Pune, where a small-sized, 2BHK house on the peripherals can come at Rs 6 lakh.
According to the report, while those earning between Rs 3 and 10 lakh would drive demand, the largest contributor to this market size is expected to be the group with an annual income of Rs 3-6 lakh. Interestingly, buyers in the Rs 8-10 lakh income group quoted a more conservative budget for a house than those in the Rs 3-6 lakh group.
This reflects the extremes on which higher income group consumers operate during boom and recession periods. The report also throws up interesting facts about the expected timelines of deals. Over 32 per cent of these middle-class, potential buyers plan to purchase a residential property in 6-12 months while 7 per cent of them would like to own a dwelling unit in the next 6 months.
Other factors that brings property down
A noteworthy point is while all new projects
are being launched at realistic (corrected) prices, many of the existing projects have also corrected their pricing. A broker cites some examples of projects in Gurgaon and Noida, "In Gurgaon, various projects under DLF, Unitech, and Vatika, which were available in and around Sector Road and Sohna Road, near NH-8, in the range of Rs 4,000-8,000 per sq ft almost 7-8 months ago, are now available in the range of Rs 3,500 to Rs 4,500 per sq ft on basic selling price." In Noida, the broker adds that projects on the expressway under Jaypee, Omaxe, Unitech, and Eldeco, were available in the range of Rs 5,000 to Rs 7,000 per sq ft, 7-8 months ago. But new projects
of Jaypee, 3C, Unitech, Amrapali are available in the range of Rs 2,500 to Rs 3,500 per sq ft on basic selling price within the same vicinity.
What home-buyers want
What is heartening, say sellers, is investors seem to be back in the market and so are IT employees, as first-home buyers or investors. But all are cost conscious and choosy.
Mr Ramkumar, an executive with an international logistics company, picks up a product brochure at a stall by a developer with a national presence showcasing a project on the IT corridor. He asks just one question: How far is the project from Adyar? 20 km, comes the reply.
He drops the brochure and walks away. Why? At close to Rs 4,000 a sq.ft, I can buy a five-year-old apartment in Adyar.
That is another point says Mr V. Raajes, GM Marketing and Corporate Strategy, Prince Foundations, “people are choosy and drive a hard bargain.” They call every two weeks to find out if there is a new offer, if the prices or interest rates have dropped. Sales are happening but it is not easy to convince a buyer.
The whole of the indian real estate sector is facing a four year depression (not recession, depression !)
http://www.nuwireinvestor.com/articles/india-real-estate-53534.aspx
Housing in India will go down by 60%. No force can stop the downfall.
Indians are out of their minds to gamble their hard earned money. ANd investors are Infestprs and realtors are realt-whores and builders are bloody mother fuckers.
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