Guesstimates Of The Value Of The Rupee
July 23, 2013 1 Comment
If you are looking for some guidance on where the Rupee/Dollar exchange rate is likely to stabilize,here are the best guesstimates from various financial institutions:
An Interesting Business
July 9, 2013 13 Comments
This is an interesting case I came across in today’s ET.I have no inside information’s, so no comments.The developments should interest would-be real estate developers in India.
A Canadian businessman of Indian origin, Alnoor Jamal, has accused both the sons of Maharashtra industries minister Narayan Rane and Mumbai-based builder Shobhit Rajan, among others, of ‘cheating’ him in a property-related issue.
In a petition filed at a metropolitan court in Mumbai, Jamal alleged that 13 acres of land he bought from Parke Davis in 1999 have been misused and a part of it was sold by his business associates to Nilesh Rane and Nitesh Rane without his knowledge at much-below market rates. The petition, which was reviewed by ET, alleges that the NRI businessman and Rajan had initially agreed to develop the property — located at the Sakinaka area, near the international airport — by investing . 2.5 crore each. They formed a company named Pantheon Infrastructure, formerly A-Class Builders, for the purpose. Read more of this post
Rising Popularity Of Resale Flats
June 28, 2013 Leave a comment
New home sales may be few and far between, but resale of properties is booming. Sale of such properties is up 40% across the country in the last 6-8 months as buyers become more risk averse, looking at the enormous construction delays, say property brokers and financial institutions. According to Punjab National Bank and Indiabulls Housing Finance, 35-40% of home loans being taken today are for resale properties, which include both apartments that are ready to move in and those that are in the late stages of completion. Primary sales have slowed down and prices have stagnated or dropped. Resale of properties, however, has been strong in the last few quarters.
Time over-runs in real estate projects have become a sore point with buyers. According to property research firm PropEquity, nearly half of the 900,000 under-construction residential units are likely to be delayed by up to 18 months. Slowing of the economy to a 5% GDP growth level too has put doubts in the minds of home buyers. Property sales across the country have dipped in the last year and a half because of rising property prices.
According to PropEquity, in the first quarter of the current fiscal, 13,797 residential units was sold in Bangalore compared with 9, 742 units absorbed in the first quarter of FY13. Other bigger markets such as the Mumbai Metropolitan Region absorbed 15,501 units, down 21%; National Capital region (NCR) absorbed 26, 798, up 31% and Chennai saw 5953 units absorbed down 21% in January to March 2103 compared to same period last year. Read more of this post
State Of The Rental Home Market
June 27, 2013 12 Comments
Demand for rented homes has halved and rents are down by 25% in several popular residential localities in Mumbai, Delhi and Bangalore, as India Inc tightens housing budgets in its battle against economic slowdown. In Mumbai, rentals in marquee buildings like the sea-facing Haveli on Malabar Hill, NCPA Apartments at Nariman Point and Maker Towers at Cuffe Parade, where rentals range between 5.5 lakh and 12 lakh a month, are down by up to 30%. In Delhi’s Vasant Vihar, West End, Chanakyapuri, Shanti Niketan and farmhouses in Chattarpur and West End Greens,rentals have dropped 25% in the last one year. Rentals in apartment buildings in Bangalore neighbourhoods like Epsilon in Yemlur and Prestige Exotica on Cunningham Road are also down by 35% this year.Rents in Epsilon range between 7 lakh and 10 lakh. Corporate earnings have been subdued and no new expansions have been announced in the recent past. Companies are hiring less and also cutting down on perks such as rentals. Read more of this post
5,00,000 Crores?
June 25, 2013 Leave a comment
In Lutyen’s Delhi alone ,there’re potentially a thousand acres of land occupied by bungalows,MP residences,various offices and quasi-government entities.
An acre-sized bungalow in Lutyens Delhi sells for around Rs 100-150 crore.A thousand acres,even at the low end of the range,is Rs 1,00,000 crore.Slap on a big FSI and the number can go up by ten times.Even conservatively,at half the amount,we arrive at Rs 5,00,ooo crore.
-The back of envelope calculations are by Chetan Bhagat
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