Grappling with a slowdown across segments, the Indian property market is heading towards the next phase of consolidation. Liquidity crunch in the real estate market is beginning to drive many mid-sized and small developers to scrounge for cover.
Many want to liquidate their land and incomplete projects by selling them to bigger developers or private equity players even at lower valuations. Whats forcing them to take this step is a stagnant market, with property rates undergoing major correction in some cities. Around 15 deals in real estate sector have fallen through in the past two months with investors developing a cold feet, said industry officials.
Consider a few cases. A mid-sized builder at Chembur in Mumbai has put its 14-floor commercial property in central Mumbai on the block. The developer wants to raise around Rs 150 crore which would help him complete his upcoming project.
More : economictimes.indiatimes.com
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A stagnant property market, tightening of lending by banks and failure to raise money through public equities are forcing real estate developers to look for alternative options to raise money.
Indias benchmark Realty Index lost more than half its value this year. With the heat being turned on, realtors of all sizes are pursuing different finance routes. Big players are looking at private equity funds to complete pending projects, while small developers are turning to the larger construction companies to sell theirs.
This is really a tough time for the realty industry, Naveen Raheja, chairman of the Delhi-based Raheja Developers told
Sobha Developers Ltd announced its joint development agreement with QVC Realty and Chintels India Ltd, the flagship company of the Chintels Group having large land banks in National Capital Region (NCR), to develop a 192-acre integrated township in Gurgaon, on Wednesday.
The total development will be 6.5 million sq ft, and the projected investment is expected to be about Rs 2,000 crore.
The township will offer a combination of modern infrastructure and ideal business/residential environment consisting of single-family homes, apartments and commercial retail/office in accordance with the HUDA guidelines. Sobha Developers will be the lead developer for this township located to
Worried that property prices may cool down? With India tipped to become the most sought after real estate market among emerging economies, you may not really have to fasten your safety belts just yet. In fact, just 10 land deals in India over the past 12 months were valued at over a whopping Rs 15,000 cr. Evidence enough to prove that reports citing office rentals in Delhi and Mumbai being costlier than more developed real estate markets such as New York City, Dubai and Singapore, are not off the mark.
While realty giants such as DLF, Unitech and Hiranandani Developers
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This sure is a double whammy for the plush South Delhi residents. With the insurance companies bringing in a free tariff regime from January 2007, residents of areas that see maximum car thefts will end up paying more for insurance.
The insurance will also go up if you own a car that is seen as theft-prone.
And going by the statistics, people living in the posh South Delhi colonies and owning a small car are set to pay the most.
The area that tops the chart when it comes to car thefts is Lajpat Nagar. A total of 170 cars
