The realty sector, which was hit by the slowdown in purchases, could well be at the cusp of a revival, highlight December 2009 earnings. Industry analysts reckon that signs of revival in property volumes are evident. The harbinger could well be price rises in certain locations in Mumbai, where developers have sought prices that match the March 2008 peak levels.
However, a Motilal Oswal Securities (MOSL) report suggests that volumes are unlikely to surge in the near term unless prices moderate by 5-8% from the current level. Several suburban projects in Mumbai have been delayed due to lack of approvals and developers have been faced with pressure from customers demanding refunds. Home buyers are shifting focus to ready-to-move-in projects or projects nearing completion, says the report.
Even with lower volumes, sales seem to be flowing at a steady pace in the National Capital Region (NCR), despite price increases. “Prices increased by 5-10% across key projects since August, 2009. Prices in some key areas in South Delhi have moved to new highs. Demand from non-resident Indians is a demand dr
More : financialexpress.com
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Cos with land bank turning realtors
The revival of fortunes in the real estate sector has encouraged textile companies with huge land banks to foray into property development. Among such companies are textiles major Bombay Dyeing and Century Textiles. To date, most of the textile firms sold their land to developers. Golden Tobacco, manufacturer of the Panama and Chancellor cigarette brands, is also mulling to have its real estate arm to utilise its land assets across the country. Earlier, groups like Tata, Mahindra and Godrej also entered the realty space. The Tata group has Tata Housing and Tata Realty while Mahindra’s venture is called Mahindra Lifespace