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Indian Real Estate News

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  • Indian Real Estate News

    Residential Property Prices Fall By 7% In Delhi, 15% In Kolkata
    The housing regulator said that even as residential property prices skyrocket, Delhi and Kolkata, are bucking the trend, reporting a decline of up to 15 per cent in the first quarter of this calendar year. As per the Residex for the period January-March 2010, a residential property index put together by the National Housing Bank (NHB) for the 15 biggest metros, the residential property rates in these two metros have come down sharply, signaling a correction in the market. While in Delhi property prices have crashed by 7 per cent as compared to July-December 2009, in Kolkata the decline has been sharper at 15 per cent. In Delhi, the prices have dipped by nearly 20 per cent from the peak levels during July-December 2008, a time when the economic slowdown was beginning to spread its tentacles. The index assumes 2007 to be the base year. "In Delhi, the market has seen a huge correction in residential property prices, which was much required. As state land development agency Delhi Development Authority's (DDA) plans to come up with DDA colonies around farm areas beyond Mehrauli fructify, there is no big pressure on demand. Supply is expected to grow," said National Housing Bank Executive Director Mr RV Verma.
    2 Sep 2010 Indian Express

    Buyers Can Choose To Opt Out Of Residential Project If Possession Is Delayed
    The National Consumer Commission has held that a buyer is now entitled to opt out of a housing project if there is a delay in delivery of possession of the house by the real estate developer. It said the buyer is also entitled to a full refund with reasonable interest and any deduc tion on the amount is unjustified. "The petitioner was fully justified in opting out of the [hire-purchase] scheme and demanding refund of the money that she had paid along with interest," the commission said. The order was passed after a petition was filed by Agra resident Ms Indira Gupta, who was seeking quashing of the Uttar Pradesh State Consumer Commission's direction to deduct 20% from the amount to be refunded to her by the Agra Development Authority.
    29 Aug 2010 DNA
    Last edited May 30 2020, 05:46 PM.
  • #2


    Re : Indian Real Estate News

    Nice piece of information , especially "Buyers Can Choose To Opt Out Of Residential Project If Possession Is Delayed"
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    • #3


      Re : Indian Real Estate News

      Issue is every news reporting company or RE company comes up with its own facts and figures based own research and its almost impossible to keep track on the actual scenario. Also much of it is paid and biased hence the authenticity is always under doubt.

      We badly need a national regulation agency which does unbiased research and also works to make this sector a bit organised.

      WIth so much of corruption and black money its always a challenge.


      • #4


        Re : Indian Real Estate News

        Great Thought!

        I agree in totality and second your view , MM!


        • sallymalika
          sallymalika commented
          Editing a comment
          I am also agreed with this post.
      • #5


        Re : Indian Real Estate News

        Home rentals zoom on high realty prices

        The industry norm of eight to 10 per cent rise in rentals is now passe. Ask Deepak Varma, a 38- year-old resident of Kandivili, in the western suburbs of Mumbai. He was shocked when his landlord demanded a 25 per cent hike in rentals to renew his housing lease.

        "The landlord gave me just two options - either pay up the increase or search for another property. After some research I found that rentals have zoomed up in Mumbai. As buying a house at these levels is just not possible, I would have to look for a smaller house where the rents are affordable for me," he said.

        The trend has been confirmed by real estate portal ************. According to a study conducted by the portal, residential rentals have continued to rise in sync with the increase in realty rates. The rentals have increased between 12 to 20 per cent. In places like south Mumbai and south west Mumbai, the appreciation has been the most, the study revealed. Khar, a western suburb of Mumbai has seen 47 per cent appreciation in rentals in the second quarter of this year compared to the previous year. It is closely followed by places like Mahalaxmi and Napean Sea Road, which saw 28 per cent and 13 per cent rise in rentals, respectively, over the same time period. Bandra West witnessed an 11 per cent rise in residential rentals. Similarly, Breach Candy and Lower Parel saw rental values move up by six per cent in the second quarter, the study pointed out.

        Yashwant *****, president of the Estate Agents Association of India said that high property prices are responsible for the rise in rentals in the city. "Property prices have gone up beyond the 2008 peak and are consistently going up since the last three quarters. So people are waiting for the prices to correct and have postponed their purchasing plans for some time. As preference is more towards leased property, the rentals have gone up in the city," he said.

        The study by 99acres. com also shows a similar trend in Delhi and NCR. Saket in South Delhi witnessed a 31 per cent rise in rentals in the second quarter of 2010 as compared to the same period last year. South Extension, Safdarjung and Malviya Nagar followed at 24 per cent, 22 per cent and 21 per cent respectively. Vasant Kunj saw a 17 per cent rise in rentals while Dwarka witnessed an increase of 12 per cent in the second quarter of this year compared to last year. Vasant Kunj and Dwarka have emerged as the most affordable rental destinations in Delhi, the study revealed.

        Connaught Place has seen an eight per cent rise in rentals while Pitampura and Rohini saw 35 per cent and 37 per cent rise in prices respectively, over the same time period. Key localities of Noida like Sector 93, Sector 53, Sector 61 and Sector 82 saw rentals escalating in the range of 18 per cent to 25 per cent. Prime areas in Gurgaon like Sohna Road and Sushant Lok saw 16 per cent appreciation in rental values.

        Pankaj Kapoor, managing director of real estate research firm Liases Foras, said that he does not believe that residential rentals in the country could rise so steeply. "There are lots of properties lying vacant in many of the new residential projects. So, it is quite unlikely that the rentals at this stage could increase," he said.

        Link -
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        • #6


          Re : Indian Real Estate News

          Commercial real estate witnesses rise in demand

          Commercial real estate projects, including office and retail space, have started seeing increased demand after suffering poor sales during the economic slowdown, as firms and retailers revive expansion plans. In eight cities, including Delhi-National Capital Region (NCR) and Mumbai, firms leased out or sold 9.2 million sq. ft of commercial space in the three months ended 30 June, up 58% from 5.8 million sq. ft in April-June 2009, said Ravi Ahuja, executive director for development services at consultants Cushman and Wakefield India.
          Some 16.4 million sq. ft of retail space is expected to be available in 2010, against 6.3 million sq. ft last year. Consultant Jones Lang LaSalle Inc. has predicted 8.9 million sq. ft will be absorbed this year, compared with 4 million sq. ft in 2009. “The commercial real estate space is again active with inquiries and transactions,” said Supreet Suri, director, The Three C Universal Developers Pvt. Ltd. The company is planning to launch a 12.5-acre commercial project in Noida, on the outskirts of New Delhi, by October. “We are getting inquiries for our Noida project, which is still in the planning stage,” Suri said.
          Developers such as BPTP India Ltd, Assotech Ltd, Anant Raj Industries Ltd and Wave Inc. have also reported improving property demand. Metros have witnessed a large number of investment deals in office space development at information technology (IT) and corporate parks during April-June, according to a report by the Royal Institute of Chartered Surveyors. “While improved corporate profits seem to be the demand driver for office property, retail property has also seen an upswing, as a result of improved economic climate within the country, making it an attractive market for global retailers as well,” says the report.
          Leasing and sale of office space in Mumbai and Delhi-NCR rose 69% and 18%, respectively, according to another consultancy, DTZ International Property Advisors. The report says 70% of transactions in Delhi-NCR have been recorded in Gurgaon, Noida and Delhi’s south business district. In Mumbai, most commercial realty projects are coming up in peripheral areas. Noida has attracted large multinational corporations from IT and the banking, financial services and insurance (BFSI) sectors who want to set up back offices, says an office market report from BNP Paribas Real Estate.
          Mumbai’s Bandra Kurla Complex adjoining Santacruz, Andheri, Powai, Vikhroli and Vile Parle has also attracted buyers, says the BNP report. Consultancies say capital and rental values will remain stable in the near term as new projects inundate the market in the next few quarters. “Rental and capital values will remain stable as the markets will witness huge supply in coming months,” said Priyankar Bhikshu, head of research for India at DTZ International Property Advisors. “Increased absorption and reduced vacancy are likely to take place in most Indian cities by the end of this year. However, a complete revival of the rental market is unlikely until mid-2011,” Bhikshu added.
          But deal sizes are getting smaller. “Multinational firms are looking for central locations in big metro cities. Since rental cost in these areas is still higher, the space occupied is smaller in comparison to the ones that were occupied during 2008,” said Rajesh Goyal, chairman and managing director of the Delhi-based developer RG Group. “In doing so, the occupiers have the dual advantages of cost saving and central location.”

          See link -

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          • #7


            Re : Indian Real Estate News

            Basically Residential growth is directly proportionate to Commercial.

            If u make more houses, u need to create more jobs and vice versa
            Last edited October 22 2015, 06:05 PM. Reason: Text formatting.


            • #8


              Re : Indian Real Estate News

              Traffic jams. Delayed flights. Crowded trains. That is the reality of any big city in India. The future could be much worse. The country's cities are expected to grow by an additional 250 million, mostly young people, over the next two decades. Without massive investment and thoughtful planning, chaos will ensue.

              Or not. McKinsey, in an unprecedented nearly two-year study of Indian cities, envisions a way for India over the next 20 years to turn that influx of young population into a quadrupling of per-capita income. This growth hinges on adequate investment in cities so they can handle the surge in people and the simultaneous increased demand on services. The urban migration, if properly handled, could generate 70% of net new jobs and produce 70% of India's GDP.

              To meet their needs, McKinsey suggests that India must build--every year for the next 20 years--between 7 billion and 9 billion square feet of real estate (the equivalent of one Chicago) a year; 220 to 250 miles of metros and subways (more than 20 times what it has built in the past decade); and between 12,000 and 15,000 miles of road lanes (nearly equal to all the road lanes constructed in the past decade).

              That's a pretty ambitious task, given India's infamous bureaucracy, corruption and a sketchy track record on accomplishing large-scale projects. Ajit Mohan, the lead author on the McKinsey report, says for the first time there's some recognition in India that urban development has to become a priority. It could take one success in a single city to create the momentum for a national push, he says, comparing the current lack of infrastructure investment to the way the IT sector was developed in India. "When Bangalore became successful, other cities started to emulate it," he says.

              The major changes will happen, adds Chetan Vaidya, head of the National Institute of Urban Affairs in New Delhi. "We can already see bits and pieces of that falling into place," he says.

              Multiple infrastructure investment programs have launched in the last handful of years. One is the Jawaharlal Nehru National Urban Renewal Mission, which is putting $28 billion into 65 cities over a seven-year period starting in December 2005. Once it runs its course, it could be replaced by a similar program. The government of India is also in talks with the World Bank for a $3 billion infrastructure loan.

              India's federal treasury is increasing its grants to cities and states from the $960 million they received annually for the past five years to $5 billion each year over the next five years as long as they meet a nine-point agenda. The conditions attached to receiving funds in both programs are similar and focused on land and tax reforms, among other mandates. The idea is to improve governance and creditworthiness of cities, says Vaidya, and lead to commercial or market-based financing in urban investment.

              Multinationals like Aecom, Veolias and Bombardier are in the process of bidding for various projects, including building portions of metro rails in Chennai and Kolkatta and supplying rail cars to Delhi's expanding metro network. Aecom was recently awarded a contract to do the master plan for two of the six satellite industrial cities India plans to build along the 1,700-mile Delhi-to-Mumbai corridor. Each city will house 5 million people.

              "This is a huge investment opportunity, but you need to cherry-pick your cities," says Vaidya. He recommends focusing on tier-2 cities like Pune in Maharashtra and Surat in Gujarat and investing in projects like ports and special economic zones (which typically build sector specific manufacturing or research hubs), and in affordable housing, as 90% of the demand is for those. He expects an average investment period to range from three to five years before investors can exit and move on to the next batch of cities.

              Mohan, the author of the McKinsey report, too sees opportunity for the private sector (and multinationals, to boot) to provide services like water supply and waste management. "But," he admits, "the question is will we do it fast enough--and that's a political choice. That will determine how dramatic the pace of the change will be and up until now no one has stepped up to champion that."
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              • #9


                Re : Indian Real Estate News

                India may face shortage of 26 mn houses by 2012

                New Delhi, Sep 16, (IANS):

                India will face shortage of over 26 million houses by 2012, which would lead to spurt in housing prices as demand-supply gap widens amid rising purchasing power of the middle class people, a consultancy firm has said.

                "With India back on a high growth trajectory, demand for commercial and residential space is likely to witness an upward trend," consultancy firm Ernst and Young said in a report.

                Demand for residential property is rising sharply because of growing young working population, increasing urbanisation, declining household size resulting in more nuclear families with growing household income and improved availability of loans.

                Co-chairman of FICCI Real Estate Committee Pranay Vakil said over $1.2 trillion investment was needed to meet the rising demand for urban development. He said that the urban population in India would nearly double to 600 million in the next 15 years from nearly 350 million now, and this would put massive pressure on urban infrastructure, including roads, power and water supply.

                Dean Hodcroft, partner-head of real estate for Europe, Middle East, India and Africa at Ernst and Young, said India needed institutional reforms to attract more investments in infrastructure development projects.

                He said the country’s macro-economic fundamentals were in great shape and it was poised to reap huge benefits of growth. "India needs to fix the institutions to attract more private investments, including foreign investments," he said.

                Comparing the investment climates in India and China, Hodcroft said: "While it is easy for investors to get into China, it is extremely difficult to get out. In contrast, it took time for foreign companies to enter India, but exiting is comparatively much easier." He noted that India was lower ranked in areas that were easy to fix.


                • #10


                  Re : Indian Real Estate News

                  Top 10 residential hotspots

                  Many cities in the country, after the slowdown, are once again in the spotlight for the good investment potential they offer in the mid to long term

                  1 GURGAON Massive infusion of commercial office and retail space Currently at 22 million sq ft and likely to grow to 40 million sq ft by 2012 Substantial rationalisation of prices Correction of over 25 per cent to 30 per cent across micro-markets Wide breadth of projects across price ranges and geographies The downturn has opened new geographies at rationalised prices Shortening absorption period Increased absorption rates has led to fewer unsold housing units Quality developers and developments Tier I developers and good quality developments Water, power and connectivity continue to be areas of concern The Delhi Metro is expected to improve connectivity

                  2 MUMBAI High-income demographics High investment activity levels across price bands Massive infusion of commercial office and retail space Relative affordability in suburban markets Most of the markets within the city are unaffordable. Affordability in eastern suburbs, Thane and Navi Mumbai Infrastructure can't keep pace with growth of city Infrastructure development to boost residential demand in suburbs

                  3 NOIDA Affordable micro-markets Reasonable price range has led to increased absorption momentum Excellent connectivity Connectivity through existing road infrastructure and the Delhi Metro Commercial office space Addition of another 12 million sq ft of office space in the next three years Residential demand primarily linked to IT/ITES sector

                  4 PUNE Huge supply of office space Addition of 19 million sq ft of office space over the next three years Affordable micro markets close to the city Oversupply in select micro markets only Proximity to Mumbai

                  5 BANGALORE Shifting geographies of commercial office development Most of the micro markets highly affordable Residential demand linked to growth of IT/ITES sector City has attained a critical mass of IT occupiers, which will help attract even more IT occupiers Infrastructure hasn't kept pace with the growth of the city

                  6 CHENNAI Diversified migrant population working in industrial, logistics and IT and ITES sector Prices have rationalised across micromarkets Properties along OMR benefit from excellent connectivity and proximity to IT hubs Absorption rate yet to pick up

                  7 HYDERABAD High affordability in Hitec City and Gachibowli Oversupply in Hitec City and Gachibowli Other markets having low activity Residential demand linked to growth of IT/ITES sector

                  8 KOLKATA Absorption rate has picked up in Rajarhat Highly affordable micro markets Growth in office take up projected to be low

                  9 AHMEDABAD Newest metropolitan city with population of more than 4 million Absorption rate has picked up in affordable markets closer to the city Highly affordable micro-markets s, logistics and automotive sector to drive population growth in the suburban markets Poor IT/ITES presence

                  10 KOCHI Diversified economy with growing IT/ITES presence Highly affordable micro-markets Huge non-resident Keralite demand drives residential real estate Micro-markets of Edapally and Kakkanad highly dependent on IT/ITES sector The only segment to emerge almost unscathed from the turmoil that the real estate sector underwent during the slowdown was the residential sector. Its resilience in the face of negative global cues was as much a result of the latent demand for affordable housing in India as the large share of the Indian real estate pie that the residential sector holds.

                  As with office space and retail malls, residential property did, to a lesser degree, suffer the effects of the global downturn in 2008 and 2009. However, unlike its counterparts, the residential sector has begun to show signs of stability in many markets, and even recovery in certain cities. Whether this trend will continue depends in large part on economic factors (mortgage rates, GDP growth, labour market stability) and on prudent decisions by developers on issues relating to pricing and quality of products being offered.
                  Jones Lang LaSalle Meghraj Research conducted an analysis of residential markets across India to help identify investment hotspots for retail investors. While abnormally large returns can be found in specific projects throughout the country, the analysis was limited to India's seven largest cities due to high residential demand from their large populations, relatively higher transparency levels and presence of premium regional and national developers.
                  The top ten cities were Gurgaon, Mumbai, Noida, Pune, Bangalore, Chennai, Hyderabad, Kolkata, Ahmedabad and Kochi.
                  Based on proprietary data from the Real Estate Intelligence Service (REIS), each cities' potential was examined across a variety of parameters, including affordability, investment yield, absorption momentum, supply overhang etc “Residential property is very definitely the flavour of the year in 2010. While the primary metros continue to command the highest demand and appreciation potential, many other cities are once again in the spotlight for their mid-to-long term investment potential,“ says Abhishek Kiran Gupta, head research and REIS, Jones Lang LaSalle India.


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