Realty Buyers Are Back In The South Indian Market

News Posted - 2010-04-23

Developers Look Abroad For Low-cost Housing Solutions

Property developers of India such as Unitech, Puravankara and Ansal, among others, are looking at emerging countries such as Mexico, China and Brazil for low-cost housing solutions. This is in continuation to their plans to penetrate deeper into the lower end of the affordable segment, especially in the price range of Rs 5 lakh to Rs 12 lakh, where developers from China, Brazil and Mexico have an edge. Sometime back, Bangalore-based Puravankara Projects (PPL) said it had formed a joint venture with the Indian arm of Mexico’s Desarrolladora Homex, called Homex India, to build entry-level affordable housing projects, in the range of Rs 5-12 lakh. Unitech is in talks with builders in China, Brazil and Mexico to adapt their know-how to develop affordable housing projects quicker. With the knowledge to roll out affordable housing projects faster, developers can save 10-25 per cent time and develop more projects. Besides getting to know low-cost housing solution, developers can also reap monetary benefits.

Source: 16 April 2010 Business Standard

Realty Buyers Are Back In The South Indian Market

Thanks to the recent revival in IT and stable prices, the realty markets of Bangalore, Ahmedabad, Chennai and Hyderabad have now begun clocking in stellar sales growth. These markets have seen a number of new launches in the last quarter after a slowdown of almost a year-and-a-half. For instance, Godrej Properties came up with the Garden City project in Ahmedabad, selling 800 apartments within 10 days. Bangalore-based Sobha Developers clocked in sales of 345 apartments as against 431 in the preceding quarter, which also included a new launch. Unitech launched 83% of its fresh launches in markets besides Mumbai and NCR that includes Chennai, Kochin and Kolkata. The Prestige Group too has received encouraging response from its launch of White Meadow project in Bangalore. Analysts assert the spurt in sales have been triggered by the recovery in the IT sector. Besides this, attractive pricing is the key for the spurt in sales. According to experts, prices in these markets are almost 20% below their peaks, a stark difference from Mumbai, which is now reeling under low inventory, low sales and pricing pressure.

Source:13 April 2010 moneycontrol.com

Good News For Affordable Home Seekers In Delhi

Here is some good news for those seeking affordable housing options near the Capital. The National Building Construction Corporation Limited (NBCC) is developing 8,000 one, two, three and four-bedroom flats, priced between Rs 7 lakh and Rs 45 lakh, in Khekra, Uttar Pradesh. Khekra is just 22 kilometres far from the ISBT on the Delhi-Saharanpur Highway. The prices of the apartments are 30 per cent lower than current market rates. While draw of lots for the first phase, where 1100 flats were up for grabs, was conducted in March, the lottery for the second phase for remaining 6900 flats would be held later this year. The Khekra township is being built on 100 acres. This would be the PSU's second housing project in the National Capital Region.15 April 2010 Business Standard

Mumbai Home Prices Jump, Home Sales Plunge

The prices of residential properties in Mumbai have jumped about 30 percent over the past six months, leading to a fall in home sales in India's financial capital as higher prices deter buyers, Knight Frank LLP said. "Residential property prices have risen too much too fast," Mr Pranay Vakil, chairman of Knight Frank (India) Pvt. Ltd, said. "We are seeing resistance at higher prices and as a result volumes have declined." The average sale price of homes between 1,000 square feet (93 square meters) and 2,000 square feet has climbed 11 percent to 20,000 ($450) a square foot in North Mumbai in the fourth quarter from the three months to Sept. 30, data from property consultant Cushman & Wakefield revealed.

Source:14 April 2010 businessweek.com

13-City Data May Be Basis Of Realty Price IndexThe real estate price index, to be concluded by the Reserve Bank of India (RBI), should be based on property prices in 13 cities, a committee has suggested. The committee, which has submitted its report to RBI, has said the house price data can be collected from Greater Mumbai, Chennai, the National Capital Region of Delhi, Bangalore, Hyderabad, Kolkata, Pune, Jaipur, Greater Chandigarh, Ahmedabad, Lucknow, Bhopal and Bhubaneswar. The expert group, formed by the central bank in December 2008 for developing the information system on asset pricing, said the central bank needed to track both sale/resale price index and the rent index of real estate prices on a regular basis.

Source: 10 April 2010 Business Standard