Home buyers refuse to bite the bait despite developers offering a host of sops at the Maharashtra Chamber of Housing Industrys four-day property exhibition that began on Thursday.
Superficial discounts like stamp duty waivers, free car parks, no charge for floor rise and special offers on the equated monthly installments that is to be paid on home loans seem to be failing to change the buyers sentiments as they expect a crash in prices soon. Even as hundreds of enquiries poured in at the exhibition on Dussehra, it failed to translate into actual bookings.
Vinayak Prabhu, who stays in a hired accommodation in Kalina and has been looking to buy a house closer to his workplace at Tata Motors in Thane, feels that prices have stabilised over the last six month.
More : indianexpress.com
Property Exhibition 2008: A reality check for realtors
Property Exhibition 2008, a bi-annual event beginning from tomorrow, will be a testing stone for the efficacy of developers as property transactions across the country have dried up on account of high interest rates and a sharp escalation in prices.
The exhibition will be held from October 9 to 12 at the Bandra-Kurla Complex (BKC) in Mumbai. Organisers expect a turnout of nearly 85,000 people for the exhibition, with nearly 85 developers showcasing around 800 properties.
But analysts tracking the sector said changing the visiting crowd into potential buyers will be an uphill task, given the current market conditions. Home sales across the country have fallen over 40 per cent in the last nine months due to high interest rates.
More : business-standard.com
Boon for builders
FOUR months ago, Hindi film actor Vinod Khanna bought a 2,500-square-foot (1 sq ft is 0.09 sq metre) apartment in Mumbais Malabar Hill for Rs.30 crore. Khanna set a record of sorts in the city, whose real estate market had yet to recover from the Rs.34-crore sale of an apartment on Marine Drive. The sales of these apartments, say realty experts, are not unique cases. These are the prices luxury apartments in the city command. Regular-to-lower-segment residential and commercial space is not that far down the pricing ladder. Undoubtedly, the citys property value is among the highest in the world.
So, when the Supreme Court recently cleared the way for the redevelopment of 19,000 dilapidated cessed buildings in Mumbai, it was a bonanza for builders. Stating that the over two lakh people whose families have lived for generations in these cessed buildings deserve new and safer homes, the apex court relaxed the number of approvals builders were required to get and allowed an increase in the floor space index (FSI). The ruling is expected to have an impact on real estate prices. It is believed that the demolition of these buildings will open up land on the island, thus bringing a much-needed correction in the prices.
However, concerned citizens are stunned by the judgment, which, they believe, only builders will benefit from. In fact, the increase in construction will put a huge strain on the citys infrastructure. There have been instances in the past when cessed buildings were demolished, and even though the same resettlement rules for tenants applied, none of the original tenants was given what was promised. Furthermore, the ruling reduces the open space buildings are required to have. This is catastrophic for the environment, the citizens say.
More : flonnet.com
Realty investors take equity route to offset tax burden
Though the realty sector has been hit by the general economic slowdown, smart property investors, who raked in the moolah when the going was good, made use of the equity markets to reduce the tax they paid on those gains.
According to tax consultants, people whose income is derived from other sources, say a salaried employee, can and have in the past offset derivatives losses against short-term capital gains made in property transactions to reduce tax incidence on the property gains.
Gains from property are deemed short-term if they are held for less than three years. Once a derivatives loss is offset against the gain, the balance short-term capital gain is clubbed with the salary income and taxed at the normal rate.
More : economictimes.indiatimes.com
Amid grim outlook, realtors plan raft of launches during Diwali
Beset by falling sales, delivery delays and whittled liquidity this year, realtors are readying to launch a slew of projects in the festive season starting October, hoping that sentiment would turn buoyant and boost demand for homes.
Despite low sentiments, we are hoping that people will be in a mood to buy, said Pujit Agarwal, managing director of Mumbai-based Orbit Corp Ltd. Developers have been trying hard to offload existing stock in the past few months, postponing all launches till Diwali.
Orbit is gearing up for an October launch of a gated beachfront property in Alibaug, a holiday destination on the coast close to Mumbai. The luxury project, which has US-based Turner Construction Co. as consultant, will cost between Rs2.5 crore and Rs20 crore for a villa.
More : livemint.com
Home rentals take Sensex route in Mumbai
At Lokhandwala Complex in Andheri (West), owners have not been able to lease out their plush 3-bedroom hall kitchen (BHK) flats for the last four months despite revising the monthly rent downwards to Rs 65,000 from Rs 85,000.
At Matunga, a one-BHK flat was recently leased out at Rs 32,000, while the market rental rate is set at Rs 38,000-40,000 a month
At Carter road in Bandra (West), lessees are quoting Rs 90,000 for a 3BHK, which earlier commanded a rent of Rs 1.5 lakh a month
At Powai, rents are in the range of Rs 30,000 to Rs 1.10 lakh a month, down from the Rs 40,000 to Rs 1.5 lakh band quoted earlier.
More : sify.com
Mumbai commercial property feels the pinch of the US financial crisis
London-based banking major Barclays Bank created history in May when it took space at Cee Jay House, a landmark office complex in Worli, for Rs 725 a square foot (sq ft) per month. The building owned by Civil Aviation Minister Praful Patel is fully occupied with the likes of the now-bankrupt Lehman Brothers, Credit Suisse and Societe Generale, among others. The developers are building 80,000 sq ft of space next to Cee Jay House, and leading brokers said they are getting enquiries for Rs 300-350 per sq ft.
Though property developer Indiabulls Real Estate is leasing office space at One Indiabulls Centre, an upcoming commercial complex at Lower Parel, at Rs 325 per sq ft per month and closed deals with big companies for Rs 275 per sq ft as anchor tenants, property brokers said they are now getting queries for Rs 200-225 a sq ft, 40 per cent less than the quoted price.
Commercial rentals in Mumbai are beginning to crack and deals for office space have slowed over 30 per cent in the last three months. Leading property brokers and consultants in Mumbai say things will be worse with prospective tenants asking for a 50 per cent cut in rates.
More : business-standard.com
Slum dwellers stage protest for land in Mumbai
Residents demanding 400-sq-ft tenements in Dharavi, often described as Asias biggest slum, took to the streets on Tuesday against a decision to restrict their dwellings to a space of 300-sq-ft.
The slum is the focus of a looming showdown as municipal authorities and developers seek to raze it to the ground and replace it with office towers, luxury apartments and shopping malls.
Families that can prove they have lived in Dharavi since 1995 would be entitled to a free apartment in the same area, but the new dwellings would be tiny, just 300 square feet, about the size of a living room.
More : newspostonline.com
Real estate firms shun leasing, prefer to sell
Reputed real estate developers in Mumbai and many parts of the country have started selling their commercial real estate which includes office, retail and hotels, rather than leasing them out. The developers are ready to sell properties at a rate which is seen attractive by the buyers today. The appetite is to purchase, build and sell off projects, with the prospect of gaining immediate returns, according to experts.
Raheja Corporation, which has huge office spaces in multiple projects spread across Pune, Hyderabad and Navi Mumbai, have started selling their office spaces. Not only that, various other subsidiaries of the Raheja Group have actually started the process of selling their office spaces across the country, including Mumbai, according to a company source.
Indiabulls Real Estate has recently started selling their office spaces based in Tulsi Pipe Road, Jupiter Mills and Elphinstone Mills. According to sources, Indiabulls Center, which was leasing out office spaces, has now started the process of selling the office space completely.
More : financialexpress.com
Property discounts offered by developers in India to boost real estate market
Developers in India are starting to offer discounts in a bid to boost a slowing property market.
Falling sales over the last 18 months have prompted them to start offering incentives to property investors, especially at the luxury end of the market.
The busy home buying season normally starts in October and goes on to March. This season developers say they will be offering price cuts of between 5 and 15%.
Developers DLF, Puravankara, Unitech and Omaxe confirmed they are considering making offers and also moving into more middle priced properties.
More : propertywire.com
Polarisation of office markets
The office property markets have continued to post growth over the past few years. However, the last few quarters have witnessed a polarisation of office markets in terms of growth in demand across the country, according to a recent report by Jones Lang LaSalle Meghraj.
The office markets across six cities including Bangalore, Mumbai, Delhi NCR, Chennai, Hyderabad and Kolkata, can be categorised into three broad segments. The first segment includes markets which are likely to be susceptible in terms of retarded demand growth for the remaining half year of 2008.
The second segment includes micro markets which are strong in terms of maintaining demand growth for the next two quarters.
More : economictimes.indiatimes.com
Mandarin Oriental to open new property in Boston
Mandarin Oriental Hotel Group will open its new property in Boston in October 2008. Mandarin Oriental, Boston will consist of 148 guest rooms, including 12 suites, a 2,600-square-foot Presidential “Dynasty” Suite, a signature restaurant, Asana, a spa, a fitness centre and a 4,200-square-foot ballroom .
Asana will serve American and Asian cuisine and will offer all day dining from a menu designed by Executive Chef Nicolas Boutin. The 16,000-square-foot spa will offer holistic treatments blending Eastern traditions with modern techniques from its nine private treatment rooms, including a Hydrotherapy suite, a spacious couples suite, and a deluxe VIP Mandarin suite.
Source : hospitalitybizindia.com
First Marks & Spencer Reliance store to open in Jan 2009
Marks and Spencer Reliance, the joint venture between the Mukesh Ambani-promoted retail chain and the British departmental store major, will roll out its first store here early next year, a top company official said on Thursday.
We are opening our first Marks and Spencer Reliance store in Mumbai by January next year. The store, spread over an area of 18,000 sq ft, would be set up at an investment of half-a-million sterling, Marks and Spencer India CEO Mark Ashman told PTI.
The second and the third store will come up by September 2009 and April 2010 in metros, he said. The first store will have around 40 employees and offer mens, womens and childrens garments besides various household items, Ashman said.
More : livemint.com
200,000 applicants expected for 600 budget flats in Mumbai
The Maharashtra Housing and Area Development Authority (Mhada) plans to sell 600 so-called budget flats in Mumbai around Diwali and expects at least 200,000 applications for this, an indication of the demand for affordable housing in one of Indias most expensive real estate markets.
The flats, which will be 225 sq. ft and 600 sq. ft in size, are located in Sion and Vikhroli in the city. Property prices in Sion range between Rs6,000 and Rs12,000 a sq. ft. Mhadas flats will be priced at Rs2,000-2,200 a sq. ft. Buyers will be picked from applicants through a lottery.
There is a huge demand for such affordable housing in Mumbai where real estate prices have become unaffordable… We got overwhelming response from our sale earlier this year and have decided to sell some more flats this year, said Honaji K. Jawle, chief operating officer, Mumbai Board, Mhada.
More : livemint.com
Referendum on SEZ stumps RIL
Reliance Industries, which is developing the countrys largest special economic zone (SEZ) near Navi Mumbai on 10,000 hectares, has been caught on the wrong foot by the state governments decision to carry out a referendum in 22 villages covered under the SEZ. This is for the first time in the country that project-affected farmers opinion was being sought whether they were ready to part with their land.
State Chief Secretary Johnny Joseph told Business Standard that the referendum will not be extended to other projects in the state, where land acquisition is an issue. This is a special case as the 22 villages can get irrigation facility after the work on distribution channels was completed.
However, thats small consolation for Reliance, which expressed surprise over the state governments sudden decision. Though Mumbai SEZ Pvt Ltds spokesperson declined to comment, sources close to the company said the state government should have informed the company before taking such a decision.
More : business-standard.com
Plan to dispose of, auction the last remaining vestiges of Partition in city
At a time when the simmering dispute over Jinnah House in Malabar Hill still awaits the courts verdict, the state government has decided to dispose of six properties that are the remaining vestiges of Partition in Mumbai.
The property once belonged to the Currimbhoy Ebrahim family, leading mill-owners of Mumbai in the pre-Independence days. In the 1950s it was declared as evacuee property and passed over to the Custodian of Evacuee Property. Several years and court petitions down the line it was transferred to its current landlord, the state government.
For almost three decades now, the state government has been maintaining these properties. The Maharashtra Housing and Area Development Authority was asked to attend to the repairs of these structures, said an official from the state revenue department. He added that following the repeal of the Displaced Persons Act in 2005, the state government has now mooted a proposal to auction the properties on as is where is basis. The proposal will soon be placed before the cabinet.
More : expressindia.com
Made in America, Trump(ed) in India
Its a sweet seduction for prime property, and to stay afloat.
US-based billionaire realtor-turned-socialite Donald Trump is wooing potential buyers from India for his 45-storey Trump International building coming up in Manhattan.
Trump International CEO Donald Trump rebuilt his fortunes after going bust in the late 1980s recession and accumulating a personal debt of around $900 million. This time around, the US giant seems to be eager to find buyers from across the world to ward-off a relapse of fate.
Trump International officials are in Mumbai meeting potential buyers for the 480-foot glass-façade Trump SoHo Hotel condominium at 246 Spring Street, New York facing the Hudson river and the Statue of Liberty. The 386,000 sqft building will house 407 guest rooms, five penthouses and one presidential suite.
More : hindustantimes.com
Mumbai could soon become the next Shanghai
The old buildings and chawls in Mumbai may soon give way to skyscraper after a Supreme Court order allowed redevelopment of all cessed buildings in the island city and chawl residents are happy with the order that grants increased floor space index.
We will be able to now go in for redevelopment and we will have more space. Earlier the restriction was 3.6 metres now its come down to five feet, says a chawl resident, Hiten Gharat.
According to the Supreme court order which affects over 16, 000 cessed buildings in the city, builders can now avail 3 to 7 times FSI for redevelopment and tenants will be rehabilitated in minimum 225 sq ft tenements. The order is expected to free around 200 acres of land for housing in the next 10 years.
More : ibnlive.com
SC’s redevelopment move may change Mumbai forever
The Supreme Court has given the green light for the redevelopment of old residential buildings in Mumbai. The SCs move could change the face of Mumbai.
With about 19,000 buildings to be redeveloped and a floor space index or FSI of 2.5 and more, about 200 million square feet of residential space is expected to be created in Mumbai, over the next few years.
And on the face of it, more supply may mean lower property prices. But lets not get too excited, considering the time taken to redevelop all these buildings, an impact on property prices will be visible only in the long run, especially in South Mumbai, where most of these buildings are situated.
More : moneycontrol.com
SC clears way for Mumbai rebuild
The Supreme Court on Thursday set aside a November-2006 Bombay High Court directive restricting redevelopment of cessed properties in Mumbai. The SC order will open up 225 acres in the island city and see redevelopment of over 18,000 dilapidated buildings. Real estate prices could drop 30% in some parts of the city, say experts. Over two million people living in chawls would gain from Thursdays judgment, according to Mumbai-based Property Redevelopers Association (PRA).
A two-member bench of Justice Pasayat and Justice Sadashivan of the apex court set aside the earlier order of Justice Gokhale of the HC. The court waived all HC-imposed restrictions, which include compulsory open space, MHADA certification and approvals from new committees.
Cessed properties are those constructed prior to 1960. The government collects cess from residents of these buildings for the repair of these buildings.
More : financialexpress.com