Real estate prices declined further due to slowdown

Economic Timess: MUMBAI: The failure of retailers to exploit the fall in real estate prices triggered by the economic slowdown, has led to a further correction in

property prices across major metros of India, real estate consultant, Cushman & Wakefield (C&W), has said in a report.

"Most retail micro-markets, both malls as well as main streets saw a further correction in rental values. Mumbai saw the sharpest decline in rental values for both malls (Goregaon -42 per cent) and main streets (Colaba Causeway38 per cent)," C&W said.

Mumbai witnessed the second-highest mall supply with an addition of 3,05,000 sq ft in Q1 09. However, it also recorded the highest mall rental correction, the report said. 

Delhi's National Capital Region (NCR) witnessed an up to 25 per cent decline in rental values, the report said.

While the main streets of Bangalore saw much wider corrections in the range of 6-28 per cent, Hyderabad recorded one of the highest mall rental corrections between 25 per cent to 29 per cent.

Finance

Real estate sector grew 61 per cent : RBI

According to RBI data, loans to the real estate sector grew 61 per cent on a year-on-year basis, with Rs 90,765 crore outstanding as on February 27, 2009. During the corresponding period in the previous year, the growth was 26.7 per cent.

During the year up to February 2009, the growth for public sector banks was a 79.1 per cent. Credit deployment by foreign banks to real estate companies registered a 41 per cent growth for the 12 months up to February 27, 2009, compared with a 36 per cent decline last year.

At the same time, growth in loans from the banking system fell from 12 per cent to 7.5 per cent. But bank executives said the growth in real estate loan flows was based on sanctions before October and growth had slowed down in the second half.

A State Bank of India executive said a majority of lending to the real estate sector took place before October 2008, the time when global financial crisis assumed menacing proportions and sapped liquidity from the system, making banks risk averse.

“During the last two years (2006-07 and 2007-08), real estate developers had launched a large number of projects which were initially funded by customers’ pre-sale contribution, with bank credit utilised over the last six months of construction,” said Amit Jain, managing director, strategic clients coverage group at Standard Chartered Bank. Without giving specific figures, Jain said his bank’s exposure to the real estate sector had increased in the fourth quarter of financial year 2009 and he expected the trend to continue as the bank met the requirements of a few of its core clients.

Real estate sector rose to about Rs 18,400 crore at end of March 2009 from Rs 15,600 crore a year ago. It has restructured real estate portfolio worth Rs 250 crore, while total restructured loans stood at Rs 4,800 crore.

Finance

Future of Real Estate : India

1. The entire country has a little more than 70-million-square feet of A-grade office space, less than Shanghai and Beijing put together.

2. Technology services account for as much as 85 percent of India's office space demand, says Anshuman Magazine, India managing director of real estate broker CB Richard Ellis Group Inc.

Authority:

real estate investment trusts, or REITs.

Securities and Exchange Board of India, or Sebi,

Real Estate Investors in India:

GE Commercial Finance Real Estate

Singapore-based commercial and industrial developer, Ascendas Pte.

Retail : Wal-Mart Stores Inc. and Carrefour SA

HDFC India Real Estate Fund

Housing Development Finance Corp., India's No. 1 mortgage financier

Source:

http://neweconomist.blogs.com/
new_economist/2006/01/india_try_real_.html

For Real Estate in US See:

http://www.plunkettresearch.com/
Industries/RealEstateConstruction/tabid/208/Default.aspx

Real Estate India

The real estate market breadth has been increased during the past few years and has resulted in prices of land and buildings rising by multiples. As India's economy grows and the information technology, outsourcing, manufacturing industries, retailing, are all combining into a strong demand for urban real estate.

The interest of Indians to invest and develop homes, farm houses, weekend homes and real estate investments are all driving the real estate market. India allowing foreign investors to
investment in real estate.

The growth has touched almost all the leading cities of India. Quality real estate in prime locations of Indian cities better quality apartments and homes are the reasons of growth. Real estate purchases, pushing prices up rapidly across the Indian cityscape.