anup.thakare

Seems this forum deleted some objectionable words from my post!

razer

Those are snap-bait figures. Regardless, the maintenance fees on any of these properties would be at least Rs 40,000/month. Probably the single most important aspect that many investors who are now stuck with their properties didn't realise while buying. Properties in Dubai chew you down in ways you can't predict.

kamesh

Most importantly, the holding capacity of buyers is greater than builders. Builders have taken loans from various finance sources with interest rates as high as 20-35%. These are turning defaulters & if they want the finance institutions not to put an attachment to their properties, they will have no other option but to sell off current inventory a very low rates.

Who blinks first was the question late last year. Today we have the answer:- Builders.

Like it or not, the current Pune RE scenario is similar to that of a ship heading inside the ‘Bermuda triangle’. What is visible today is just a deflection of ‘Compass’. Once it reaches the epicenter of the ‘Bermuda Triangle’, no one can help it from sinking.

I agree with all the myths and facts. But I am a commonman waiting for prices to drop in Pune. It never happened, maybe a bit, but no way matched to price drop in other cities - blame it on rogue builder lobby. My question is how long one should wait? ARe there any technical charts/analysis that measure price trends and they drop or rise in such and such time frame?

realacres

And it is only IE which exposes the scams like Bofors, Mayawati Statues, Petrol pump, Telgi etc. & continues to follow it, be it of any party whether in Govt. or opposition. How many scams have been exposed by TOI & later followed the news except for illicit relationships?

realacres

No substantial hike in realty prices, says the leading developer
Nilanjana Ghosh Choudhury
Dec 01, 2009,Tue

Leading real estate developer and managing director of Hiranandani Constructions Private Limited Niranjan Hiranandani said that the Indian construction industry has not picked up as much as it should have been post-economic slowdown.
Speaking to DNA on the sidelines of an event of the International Sindhu Chamber of Commerce on Sunday, Hiranandani said, "India has already seen a correction and in all probability we will reach up to 8-9% of the growth rate next year. However, it will take some time for the industry to witness a complete revival."

Explaining the slow growth, Hiranandani said "Last year when recession was at its peak, around 20 lakh people lost their jobs in India, of which only about 2 lakh have been restored so far. Hence, it is too pre-mature to call it a complete revival."

He, however, said that sales have started picking up in the last few months. "Things have improved since this March. In Mumbai, close to 20,000 apartments have been sold," he said.
On the likely increase in realty prices in the near future, Hiranandani said "Sales have taken place but not on a big scale. Therefore even in a market like Mumbai, prices are not likely to go up drastically and in case of smaller cities like Pune, the situation would be more conservative."

With speculations about the Dubai debacle posing a threat to the Indian economy, especially the real estate sector, Hiranandani said, "Those investors who have borrowed money and have invested in Dubai are likely to face a problem. However, the matter is not going to be very serious as in all likelihood the USD 80-billion debts are likely to be settled soon."
Dubai World, an investment company that manages and supervises a portfolio of businesses and projects for the Dubai government, with USD 60-billion liabilities has sought a six-month "standstill" on its debts with all lenders. Dubai accumulated USD 80 billion debts by expanding in banking, real estate and transportation sectors.

"But it is going to affect India the most as 40% of its population working abroad is based in Dubai and other West Asian countries. Moreover, in Kerala 30% of the population is working in Dubai. In fact, 2/3rd of their remittance comes from Dubai," the developer said.

Not pressing a panic button yet, Hiranandani said "Though there would be initial hiccups of about six months to one year, it would not be a long-lasting problem as we expect a solution soon." Hiranandani Constructions is building a 90-storey residential complex '23 Marina' in Dubai, which will be the second tallest building in the world.

puser

What is meaning of this sentence with respect to Pune (i.e. in case of smaller cities like Pune, the situation would be more conservative)?.

realacres

Minimum guarantee and revenue sharing model is one such mode
NG Choudhury
Dec 01, 2009

Hit hard by the drop in sales during the slowdown and an over supply of readymade space, retailers across cities are finding new ways of survival.
From sharing part of the profits to providing minimum guarantee, both builders and retailers today are looking at alternative strategies to sail through difficult times.
"Commercial retail was one of the worst-affected sectors during recession. Even now when the market has shown signs of recovery, the situation remains the same, thereby forcing retailers and builders to arrive at formulas which can help them maintain a foothold," said president of National Realtors' Association (NAR) Ravi Varma.
He said one such model is the minimum guarantee and revenue-sharing model.
According to an estimation drawn by NAR, Pune alone has over 3.3 million square feet of vacant retail space with no takers over the past one year.
A minimum guarantee model refers to an agreement between the two parties wherein instead of paying the entire rental, the retailers agree to pay only a percentage of the rent while the balance amount is collected from a percentage deducted from the monthly revenue of the malls or retail space. What percentage of the monthly revenue is to be collected is decided by both the parties.
With this model, even if there is no sale the entire month, the builder can be assured of a minimum amount every month.
"Exorbitant rentals were the prime reason why the Pune retail scene suffered. More people are today agreeing on this mode so that both can survive," Varma said.
Some recent projects in Pune which have gone for this module include the Jewel Square at Koregaon Park, Market City at Vimannagar, GCorp Mall and In-Orbit Mall on the Pune-Ahmednagar Road.
"The general stance now is that if a retailer is making money, landlords are willing to offer reductions on the rental amount, provided the retailer is willing to sharing his topline. As a result, a number of retailers in Pune are now once again looking at expansion," said an official.
The number of retail space deals has gone up significantly after the Dassera-Diwali period, which many players agree was better this year than in the previous year.
"Retailers are understandably displaying a predilection for ready properties," said consultancy firm Jones Lang LaSalle Meghraj, head (retail) Pune, Anand Dutta.
"With land prices remaining unchanged and rentals high, this will be the only way left for the retailers to sustain," Varma added.
This trend has, however, revived interests not only in malls, but also on Pune's prominent high streets of MG Road, JM Road, Parihar Chowk in Aundh and Karve Road.
"The highest activity levels in terms of expansion are currently being witnessed among vanilla retailers in the apparel, accessories, hypermarkets and jewellery categories," Dutta said.
Chief executive officer of Tommy Hilfiger Shailesh Chaturvedi said, "More than a survival strategy for retailers, real estate developers have now agreed to share the risks and retailers have agreed to share the upside. In this case, real estate developers are willing to reduce the rent because if sales pick up they too will get a share of the profit."
He said the minimum guarantee and revenue sharing model is one of the most popular strategies used by retailers worldwide. Tommy Hilfiger is planning to open a showroom at Jewel Square soon.
"Retailers all over are looking at alternative ways to survive. The minimum guarantee and revenue sharing model is one such way. Even in several of our projects across the country, we have gone in for this model," said head (corporate communications) of Pantaloon Retail Atul Takle.

RAJESHP

Right, people will get the feel of what bankruptcy is, which most of us think is just a word in dictionary and something that always happens to others and not me!!

realacres

]http://ibnlive.in.com/news/ed-raids-realty-major-emaar-mgfs-offices/106387-7.html[/URL]

realacres

]http://www.realtyplusmag.com/rpnewsletter/fullstory.asp?news_id=6218&cat_id=3[/url]

Hey, why is the link being shown with url tag most of the time I post?