NEW DELHI, FEB. 18:

Real estate players have said housing customers should brace for a 10-30 per cent rise in property prices in 2012-13. Also, delivery delays and speculative price spirals could further pinch the customers' pocket in the forthcoming fiscal, they warn.

Mr Navin M. Raheja, Chairman, Raheja Developers, said, “In all likelihood, prices will rise in the medium-term. The cost of land is going up. Funds are restrictive and material cost is also steadily rising. Speculative prices have slowed sales. People with disposable income are also driving up the prices so there is a huge demand-supply issue.”

RESIDENTIAL PROPERTY

Residential property accounts for 80 per cent of real estate market in terms of volume, growing at about 35 per cent annually.

Mr R. R. Singh, Director-General, National Real Estate Development Council (NAREDCO), said that the Government needs to unlock land value to help end consumers. “There is a huge land bank. Government should sell it at cost price to bidders. This will help ease the demand supply issue.”

Also, he said the Reserve Bank of India's latest notification to banks to exclude stamp duty, registration and like charges while calculating the value of a property they intend to finance, will lead to defaults and also higher price at the consumer end.

“The notification effectively means home buyers would have to arrange for more funds on their own, as banks will not lend for these charges any more. This could lead to a further decline in home sales in the lower and medium segments and also put additional burden on consumers,” he said.

Asked whether the draft Real Estate (Regulation & Development) Bill, 2011 would help in making the sector transparent, Mr Raheja said the draft was highly disappointing and against developers. “We believe that the regulator could be just another authority apart from local and State authorities, which could lead to delay in sanctioning of projects and be a source of corruption.”

PROJECTS DELAYED

Meanwhile, Mr Santhosh Kumar, CEO – Operations, Jones Lang LaSalle India, said, as many as 63 large residential projects in NCR (accounting for almost 40,000 units) are delayed by over four years.

“Out of these, around 10 projects with 9,000 units have been delayed by over six years. This includes projects wherein possession of a small percentage of units has been handed over, while most of the whole project remains incomplete,” he added.





Business Line : Industry & Economy News : Brace for 10-30% price rise, delivery delays: real estate players
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  • Irony of RE

    Builders predicet price rise in near future and buyers are looking for fall in prices.This is Irony of RE
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  • Originally Posted by Krazy Yuppie
    Builders predicet price rise in near future and buyers are looking for fall in prices.This is Irony of RE

    Builders had been on the drivers seat for long, and buyers were taken for a ride. Strange that few smart fools had taken a bunch of intellectuals for a ride. Buyers are trying hard to get a grip of steering, and would soon control it.
    CommentQuote
  • Originally Posted by Meghna
    Builders had been on the drivers seat for long, and buyers were taken for a ride. Strange that few smart fools had taken a bunch of intellectuals for a ride. Buyers are trying hard to get a grip of steering, and would soon control it.

    This was anticipated, with most projects filled with investors who were looking to flip flats for money, now stuck and more payment cannot be made, it is clear that the projects would not go forward. Pity the end users who made the mistake of investing in RE.
    End users get your lawyers ready, this is just the beginning.. Courts are the only saviour if things get worse.
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  • Yes, agree to what u & Meghna said .

    Things could turn real pretty ugly .


    Originally Posted by matrix_55
    This was anticipated, with most projects filled with investors who were looking to flip flats for money, now stuck and more payment cannot be made, it is clear that the projects would not go forward. Pity the end users who made the mistake of investing in RE.
    End users get your lawyers ready, this is just the beginning.. Courts are the only saviour if things get worse.
    CommentQuote
  • Look at the dichotomy. RE index (BSE & NSE) fell 88% in 2 years while RE prices went up approximately 100%. Somebody has made a blasting blunder- the sellers of RE stocks or the investors in RE . In this forum we are singing songs of the same companies .

    Anybody with a balanced unbiased mind can easily come to conclusion that RE prices are absolutely overpriced. Why RE prices have not fallen so far also has very clear and vivid reasons, but the equilibrium will be established by a huge slump in RE prices - not 10 years from now - just in 6-8 months
    CommentQuote
  • id se to nayi devi lagti hai - magar writing se kisi kisi aur devi ke yaad aati hai ;)

    rohit
    CommentQuote
  • Originally Posted by Meghna
    Look at the dichotomy. RE index (BSE & NSE) fell 88% in 2 years while RE prices went up approximately 100%. Somebody has made a blasting blunder- the sellers of RE stocks or the investors in RE . In this forum we are singing songs of the same companies .

    Anybody with a balanced unbiased mind can easily come to conclusion that RE prices are absolutely overpriced. Why RE prices have not fallen so far also has very clear and vivid reasons, but the equilibrium will be established by a huge slump in RE prices - not 10 years from now - just in 6-8 months


    With all due respect meghna, if the reasons are clear and vivid it should be clear who has made the "blasting blunder". It seems that you are a firm believer that prices will fall in 6-8 months given the vivid reasons known to you.
    Would be useful if you could share the same with the wider group.
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  • Just to add Stock market is pure speculation market where usually stock price is based upon assumed earnings in future by the company which never happens for most of the time and it fell flat for the companies with high P/E ratio where as in RE market clearly user is seeing what he is getting so if you want to guess of disconnect blunder then I bet it is in Stock market which I sometimes feel is just a mirage and a legalized way/type of casinos operated by the world govts....

    Lehman brothers kee tarah many companies can evaporate in a day or two while investors keep wondering aakhir hua kya but your property be it from any builder will not evaporate and will give you solid return in term of rents because people can use it ...

    Originally Posted by Meghna
    Look at the dichotomy. RE index (BSE & NSE) fell 88% in 2 years while RE prices went up approximately 100%. Somebody has made a blasting blunder- the sellers of RE stocks or the investors in RE . In this forum we are singing songs of the same companies .

    Anybody with a balanced unbiased mind can easily come to conclusion that RE prices are absolutely overpriced. Why RE prices have not fallen so far also has very clear and vivid reasons, but the equilibrium will be established by a huge slump in RE prices - not 10 years from now - just in 6-8 months
    CommentQuote
  • Just posting what i wrote on price trend on some other thread opened by Mr Manoja, where people are ready to actually bash him saying that prices have not fallen..so he should close the thread :)

    Your views are solicited..

    Just Posting some more facts for people to digest...



    People should just read this unbiased report, it has some good analysis and safety factors built into Indian RE market....however, the report also says that Indian RE CAGR growth has been calculated on numbers reported by the Govt through the Sub-Registrar's.

    I think all us know very well that reported figures in Indian market have no significance, as in most of the cities, the actual price is never registered...and what is funny is that in places like Bangalore, even the banks finance the total cost IRRESPECTIVE of the cost as shown in the registry....

    Now think how much is the Indian RE in bubble?
    CommentQuote