Property Headlines in January 2010

News Posted - 2010-01-20

Property Headlines in January 2010

The Ease In Slowdown May Turn Out To Be Bad For Tenants:-
The improvement in the market will be good for employees but bad for them if they are tenants. The reason that employees may get a good bonus and annual increment in April is the reason why landlords are delaying letting out their properties to them. Take Mr Bharat Mehta, for instance. He owns a 1,500 sqft 3BHK semi-furnished apartment at Worli. Despite getting offers of Rs1.2 lakh per month with Rs 12-15 lakh as deposit, he is not renting out the apartment. "I am told rentals will increase mid-2010 onwards. I would rather let it out than lock in it at current rates," says Mr Mehta. "I would have easily got Rs1.8-2 lakh per month and a deposit of Rs25 lakh in 2007," he added. But realtors say that landlords are being more optimistic than they should. Morgan Stanley analysts Mr Sameer Baisiwala and Mr Arunabh Chaudhari say the rental accommodation market will not be the same as 2007. 12 Jan 2010 DNA
Decline In The Number Of Homebuyers In Mumbai:-
There has been a steady drop in the number of homebuyers in Mumbai over the last two quarters. Blame it on builders who are constantly raising prices. Liases Foras, a real estate research firm, said there were approximately 20,500 buyers for new flats in March-June 2009, and only 17,000 in July-October. Builders justified the hike. "All materials - cement, steel, etc - have become very expensive. We have to pass the cost on to buyers to guard our profits," said Mr Sukhraj Nahar, chairman of the Nahar Group. But this argument did not convince analysts. They warned against getting carried away by the rise in number of bookings after the real estate slowdown. 13 Jan 2010 Hindustan Times (Mumbai)