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Dear ck.kislay,
You are subscribed to the thread "Real Estate Bubble Set to Burst Again in India" by MANOJa, there have been 10 post(s) to this thread, the last poster was ggnhomeowner.
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https://www.indianrealestateforum.com/forum/city-forums/ncr-real-estate/gurgaon-real-estate/13876-real-estate-bubble-set-to-burst-again-in-india
Posted by: ggnhomeowner
On: November 11 2017 11:50 PM
[h=2]India�s top 6 cities record 100% jump in realty investments at $2.87 billion in 1 year till June[/h] MUMBAI | BANGALORE: Strong economic drivers, acceleration in reforms, high yields and rapidly modernizing business base has helped India�s top six cities record 100% jump in real estate investments over one-year period ending in June. Top six property markets including Mumbai, Bengaluru, Pune, Delhi � NCR, Chennai and Hyderabad have attracted investments worth $2.87 billion during this period. Of this, 75% of money has come from overseas institutional investors, showed a Cushman & Wakefield report. Mumbai recorded real estate investments of $ 1.75 billion, placing it on 81st position in global survey ranking over 400 cities by their success at attracting capital. However, Mumbai was placed number one in terms of growth amongst the gateways cities with a 194% increase from the previous year. Only Pune outshines Mumbai in terms of investment growth at 285%. The survey places Bengaluru at 161st rank with total realty investment volume of $ 461 million. New York with $ 51 billion remained the top city in the survey followed by Los Angeles $ 39 billion and San Francisco $ 32 billion. In Asia, Hong Kong, with global rank of 8 received the highest volume of investment at $ 18.4 billion. �Current economic drivers are biased towards developed markets, but Indian cities are performing ahead of expectations and are clearly offering superior medium to long term growth potential in real estate. While established markets of Mumbai, Bengaluru and Delhi NCR have seen the larger share of capital investments, cities such as Chennai, Hyderabad and Pune are also key destinations due to their inherent strengths as crucibles for multi-sector manufacturing activities for automobiles, engineering goods, white goods, ************** products, etc,� said Anshul Jain, Country Head & Managing Director, India Cushman & Wakefield. Of the total real estate investment received by the various cities of India, the largest share of over 55% came in from the North America, while domestic and regional sources saw a decline in share of capital invested in India. Funds from Europe, which had not made its presence in the previous year, were seen contributing approximately 14%. India�s current economic position and stability in political scenario have been instrumental in creating an investment friendly country. Further with the positive changes in the legislative environment the invested capital is safeguarded. The global property investment market saw volumes rise 4% year-on-year to $1.5 trillion during the year period ending June 2017. The rise compared to the previous 12 months reflects improving sentiment in 2017. The Asia-Pacific region remained a viable investment target for global capital. The region�s diverse development backdrop and deepening property markets will allow investors to turn their attention to secondary and tertiary markets and alternative property and set the stage for next core strategies, the report added.
With warm regards,
Team IREF
https://www.indianrealestateforum.com/forum/city-forums/ncr-real-estate/gurgaon-real-estate/13876-real-estate-bubble-set-to-burst-again-in-india
Posted by: ggnhomeowner
On: November 11 2017 11:50 PM
[h=2]PE investments into real estate up a tad in first 9 months[/h] MUMBAI: Private equityinvestments in real estate for the first nine months of the year rose marginally to touch $3.16 billion across 40 deals as global and domestic institutional investors continue to infuse capital into Indian real estate, especially in the commercial segment. The average investment size has also increased as similar inflow was registered during the year-ago period across 66 transactions, data from Venture Intelligence showed. The latest quarterly figures take the total PE investments in real estate in the first nine months of 2017 to $3.16 billion across 40 deals, up marginally compared to $3.14 billion across 66 deals in the same period in 2016. In the third quarter, commercial space continued to dominate in terms of volume and value. Six deals worth $356 million were announced in the commercial space compared to five deals worth $340 million in the residential space in the September quarter. Real estate companies and projects attracted 11 investments worth $696 million. The quarter before saw 12 worth $1.23 billion, data showed. �The year 2017 will be steady in terms of institutional investment into real estate. More long term and patient capital from stronger entities such as pension and sovereign funds are entering into the sector. The platform transactions are driving the inflow. These are frontloaded commitments towards India and will have cascading effect going forward,� said Arun Natarajan, founder of Venture Intelligence, a data analytics firm Allianz Group, in its first-ever real estate related engagement in India, partnered with Shapoorji Pallonji Group to create an investment platform for office properties here. The Singaporedomiciled, rupee-denominated and closed-ended fund is aiming to raise $500 million in equity, of which $250 million will be infused by Allianz. �We are looking to deploy approximately 60% of our Asia-Pacific allocation to growth economies. The Indian economy has been consistently outperforming. Strong secular growth, stellar demographic trends, and improving transparency are supporting stable real estate occupiers as well as investor demand, in particular the office sector, which is ideal for long-term core investors like Allianz,� Rushabh Desai, Asia-Pacific CEO of Allianz Real Estate said while announcing the pact with Shapoorji Pallonji Investment Advisors.
With warm regards,
Team IREF
https://www.indianrealestateforum.com/forum/city-forums/ncr-real-estate/gurgaon-real-estate/13876-real-estate-bubble-set-to-burst-again-in-india
Posted by: ggnhomeowner
On: November 11 2017 11:51 PM
[h=2]Indian realty attracts $1.99 billion investments in first half of 2017: Report[/h] Residential real estate remained the most preferred asset class in Indian real estate during the first half of 2017. While overall investments in Indian realty touched $ 1.99 billion during this period, the residential sector accounted 54% or $ 1.07 billion of total investments, showed data from Anarock Property Consultants. During this period, investments into commercial real estate accounted for 40% or $796 million and retail received 6% or $119 million of total real estate investments. �With the implementation of and implementation of Real Estate (Regulation and Development) Act, 2016 and Goods & Services Tax, the Indian real estate is witnessing greater transparency, which institutional investors have for long been waiting for. While end-user sentiment is beginning to revive now as clarity about the new regulatory changes emerges, the pent-up demand for homes is India is beyond question,� said Anuj Puri, Chairman � Anarock Property Consultants. According to Puri, RERA will now ensure that only strong, credible developers with transparent business practices and ability to complete projects on time remain. Simultaneously, the supply pipeline has moderated - partly because non-credible players are forced to withdraw from the market, and partly because developers are being more cautious with their project launches. All indicators are pointing towards a decisive return of buyer interest over the next 18-24 months. Institutional investors, who are almost by definition in it for the long haul, are squarely focused on the positive signals for the future now emanating from the Indian residential property market, he said. India still has a massive shortfall of housing, and the Government is displaying serious intent on fulfilling its promise to deliver Housing for All by 2022. It has deployed several important policy-level initiatives to make housing more affordable for first-time buyers - and affordable housing a more attractive proposition for developers. RERA is effecting a major clean-up of the industry, leaving only strong and credible players in its wake, while GST has ensured a uniform and transparent taxation regime. A large-scale revival of the residential sector, induced by rapid-fire regulatory reforms backing a massive pent-up housing demand of around 19 million homes, is now more than possible in the next 18-24 months. Unsurprisingly, institutional investors have picked this as the right time to deploy their capital into the Indian housing sector, Anarock said in a report. While affordable and mid-income housing are attracting the lion's share of investments, institutional investors are also making calculated plays into select integrated townships, which they have correctly identified as the next stage of housing evolution in a country where infrastructure development is not keeping up with housing development. Simultaneously, buyer sentiment has begun reviving on the back of rationalized property prices, reduced home loan interest rates and the fact that RERA now offers a viable level of protection to consumers. Already, market indicators now point towards increased sales during the coming festive season because of improved buyer confidence post RERA. The RBI's recent reduction in bank rates will also encourage buyers to expedite their buying decision to take the advantage of lower home loan rates. During this festive season, tier 1 developers are likely to become most active with launching new projects which had been kept on hold to meet the RERA norms. On the investments side, all eyes are now on the opportunities that present themselves in a market which is poised for a full-fledged revival in the foreseeable future, Puri added.
With warm regards,
Team IREF
https://www.indianrealestateforum.com/forum/city-forums/ncr-real-estate/gurgaon-real-estate/13876-real-estate-bubble-set-to-burst-again-in-india
Posted by: ggnhomeowner
On: November 11 2017 11:51 PM
[h=2]IKEA buys 10-acre HUDA plot in Gurugram for Rs 842 crore[/h] The Haryana Urban Development Authority (HUDA) today said it sold approximately 10-acre plot to Swedish furniture maker IKEAfor around Rs 842 crore in its single largest property auction till date. HUDA sold an approximately 10 acres of commercial land for a whopping Rs 842 crore in Sector 47 of Estate-II of HUDA Gurugram, an official said. The site was put for e-auction on October 6 this year and was bidded on October 31. "The site was successfully auctioned to IKEA, a multinational group, that designs and sells ready-to-assemble furniture..," J Ganesan, Chief Administrator HUDA, said here today. "It will augment our efforts in ensuring steady revenue stream for HUDA. This is not a one-off deal as we have planned out auctions of other institutional and commercial properties across the city in the next few months. Gurugram has seen a reduced demand mainly due to rapidly changing investments scenario in real estate, especially in commercial sector. However, we are hopeful to sell more properties and gather handsome revenue for HUDA from the Estates of Gurugram," an official release quoted Ganesan as saying here today. With IKEA marking its arrival in Gurugram, it very well highlights the importance of this city and its position in the global marketplace as a business and investor friendly destination, he said. The site was put for e-auction three times earlier but had no takers until October 31 when the multinational finally participated and emerged successful.
With warm regards,
Team IREF
https://www.indianrealestateforum.com/forum/city-forums/ncr-real-estate/gurgaon-real-estate/13876-real-estate-bubble-set-to-burst-again-in-india
Posted by: ggnhomeowner
On: November 11 2017 11:52 PM
[h=2]Only Gurgaon, Mumbai buck dip in housing sales pan-India[/h] NEW DELHI: At a time when housing sales dropped 18% year on year to 44,755 units in nine major cities during the September quarter on continued slowdown in the property market, sales in Gurgaon rose by 60% to 3,342 units, according to a report by realty portal Prop Tiger.com. The report said Mumbai also saw a 6% rise in sales to 12,101 units during the second quarter of this fiscal. In other cities, new launches of homes fell by 53% to 22,115 units in the second quarter of the current fiscal owing to the implementation of new real estate law Rera, said the report. It also said seven cities � Pune, Noida, Bengaluru, Chennai, Hyderabad, Kolkata and Ahmedabad � witnessed decline in sales as well as launches, while only two cities Mumbai and Gurgaon saw rise in demand and supply. "The new Rera and GST regime impacted launches as well as sales in the second quarter of FY '18. However, sales showed a marked improvement in September over July and August, driven by festival offers launched by most developers," said Ankur Dhawan, chief investment officer, **************. Ahmedabad saw the maximum fall in sales of 46% to 2,222 units in the July-September quarter of 2017-18, over the year-ago period. The decline in sales in Pune was 32% to 7,214 units, followed by Noida 29% to 3,606 units, Bengaluru 27% to 6,976 units, Chennai 23% to 2,945 units, Kolkata 21% to 2,993 units and Hyderabad 18% to 3,356 units. "Due to improved buyer confidence, Mumbai and Gurgaon recorded an increase in sales by 6% and 60% respectively over Q2 FY'17."
With warm regards,
Team IREF
https://www.indianrealestateforum.com/forum/city-forums/ncr-real-estate/gurgaon-real-estate/13876-real-estate-bubble-set-to-burst-again-in-india
Posted by: ggnhomeowner
On: November 11 2017 11:54 PM
[h=2]Noida witnesses meagre property sales, mostly in ready-to-move category[/h] Diwali offers like waivers on GST and other benefits have seen a conservative number of apartment sales in Noida and Greater Noida, but only in the ready-to-move categories. According to the real estate body, Credai, the sale figures have been under pressure, and a modest number of sales have taken place in the pre-Diwali week. �Most people who have considered buying real estate this season, have held back for the next GST Council meeting where a proposal of reduction of GST on properties under construction is expected be considered. At present the GST on property under construction is 12%. We expect this to drop to 5%. So many are expected to make buying decisions after this correction once this comes through,� Pankaj Bajaj, president, Credai NCR said. While modest numbers of sales by all builders who have ready-to=move properties have been made, the numbers have shown a downward trend. �If any builder sold 100 flats around Diwali last year, he may have only sold 50 this year. The buying sentiment is low. However most people choose to book or buy houses at this time of the year as it is considered an auspicious time. Most builders have offered festival discounts, so some ready to move flats have gone off the shelf during this period,� Amit Modi, vice-president, Credai Western UP, said. �The buying sentiment has not picked up and though there is a curiosity among people about available real estate offerings in the market both the situation of the real estate industry itself and the general situation of the economy has created a disinterest among people to invest in property at the moment. Not too many people are booking their first house and there is certainly no trend in buying a second flat at the moment,� Abhishek Kumar, president Noida Extension Flat Owners Welfare Association, a home buyers� group.
With warm regards,
Team IREF
https://www.indianrealestateforum.com/forum/city-forums/ncr-real-estate/gurgaon-real-estate/13876-real-estate-bubble-set-to-burst-again-in-india
Posted by: ggnhomeowner
On: November 11 2017 11:54 PM
[h=2]Avg home prices up 8.7% in Apr-Jun across 10 cities: RBI[/h] NEW DELHI: The average housing prices rose by 8.7 per cent in April-June quarter across ten major cities of the country over the year-ago period, according to RBI. However, the growth in prices has moderated over the previous quarter when the annual growth was 10.4 %. The Reserve Bank of India today released the Housing Price Index (HPI) for the first quarter of this fiscal. It is based on transaction data received from housing registration authorities in 10 cities- Mumbai, Delhi, Chennai, Kochi, Kolkata, Bengaluru, Lucknow, Ahmedabad, Jaipur and Kanpur. "The all-India HPI recorded growth of 8.7 per cent on annual basis (i.e Q1:2017-18 over Q1:2016-17) as against 10.4 per cent observed in the previous quarter and 7.3 per cent a year ago," RBI said in a statement. Barring Chennai and Kochi, the RBI said all other cities recorded a rise in housing price. Housing prices rose maximum by 18.2 per cent in Kanpur, while the maximum fall of 11.2 per cent was witnessed in Chennai, indicating large divergences in city-wise housing price movements. On quarter-on quarter basis, the all-India housing index recorded an increase of 3.8 per cent, with eight of the ten cities recording a rise in the latest quarter, the statement said.
With warm regards,
Team IREF
https://www.indianrealestateforum.com/forum/city-forums/ncr-real-estate/gurgaon-real-estate/13876-real-estate-bubble-set-to-burst-again-in-india
Posted by: ggnhomeowner
On: November 11 2017 11:55 PM
[h=2]Can't give water to 1 lakh new flats under landpooling policy: Delhi Jal Board[/h] The ambitious landpooling policy, which aims at planned development and additional housing in the capital, has hit another roadblock. This time, Delhi Jal Board has said that it can�t provide water in the areas to be developed under the new policy. With a supply of 900 million gallons per day and no near possibility of getting additional water, DJB says that it can�t cater to any increase in water demand. DJB had raised this at a meeting chaired by LG Anil Baijal almost two months ago. �With a shortfall of 300 MGD, we don�t have water to meet the existing requirement of the city,� said a senior DJB official. DJB officials said Delhi could have had more water if the Renuka dam had been constructed. �There is no progress in the dam project, though Delhi has paid its share for it. The groundwater level has depleted. There is no possibility of getting additional water in the near future,� said a DJB official. Landpooling policy would be implemented on vacant agricultural land in 95 villages. �DDA can only plan development of the area, it is DJB�s responsibility to provide water,� said a DDA official. The LG has directed DDA and DJB to hire a consultant to find a solution. Without adequate water, DDA�s plan to build 1 lakh housing units by 2022 under Pradhan Mantri Awas Yojana (PMAY) would go bust. DDA has been struggling to provide water in areas that were developed in the last decade. In Loknayakpuram in Bakkarwala (near Najafgarh), Rohini Sectors 34 and 35, and Narela Sector G2, DDA supplies drinking water through tankers. Flats in these localities were sold between 2006 and 2014. �Till date, there is no direct DJB water supply,� said Vaibhav Puggal, former president of Pocket 5 RWA, Sector 35. A large number of flats put up for sale in the recent housing scheme are located in Rohini Sectors 34 and 35. DDA officials say that DJB has assured that by October 31 they would start supplying 2 MGD of water. Delhi government has also started laying pipelines in over 300 unauthorised colonies. In 2016, DJB had decided not to accept work in new areas being developed. That�s why it hasn�t approved schemes to lay peripheral and internal water lines in Sectors G2-G6 and G7-G8 in Narela. DDA officials claim they had got the schemes approved from DJB in 2010 and 2013, but DJB officials say DDA increased the number of housing units without taking permission. �They came to us for approval after starting work,� said a DJB official. Nearly 15,000 flats are at an advanced stage of construction in these two sectors. Sources say lack of coordination between DDA and DJB is the main reason why several DDA areas are facing serious water crisis. DDA says efforts are being made to improve coordination after thousands of flats were returned by the allottees of the 2014 housing scheme. Those who bought the flats have been complaining of water shortage. �Though the situation has become slightly better in the last few months, even today there is no permanent solution to the water problem. Till recently, we didn�t get drinking water supply in our houses. Now, we get it once a day,� said Amitabh Ranjan, a resident of Pocket A of Loknayakpuram. J P Agarwal, principal commissioner housing and in-charge of PMAY in Delhi, said, �We are doing advanced planning for sufficient water for all the projects. DJB has been informed about our plan and will have to find a solution to meet the water requirement of all housing projects of DDA, both ongoing and future ones that will come up under the landpooling policy.� Experts say that provision for essential services like water should be made before starting construction. �Otherwise, we are creating a situation like Dwarka. DDA and DJB have been callous towards ensuring water supply in new developments. It could have been easily done by preserving small waterbodies,� said Shashank Shekhar, assistant professor of geology, Delhi University.
With warm regards,
Team IREF
https://www.indianrealestateforum.com/forum/city-forums/ncr-real-estate/gurgaon-real-estate/13876-real-estate-bubble-set-to-burst-again-in-india
Posted by: ggnhomeowner
On: November 12 2017 12:00 AM
[h=1][SIZE=18px]DLF expects to close GIC deal by December, Rs 13k crore infusion by February[/SIZE][/h] Realty major DLF expects the sale of its promoters' stake in its rental arm to GIC for Rs 8,900 crore to be concluded by December and infusion of proceeds into the company by February 2018, a top company official said on Saturday. DLF expects an infusion of over Rs 13,000 crore into the company, including Rs 10,500 crore from promoters and another Rs 3,000 crore from institutional investors to maintain the minimum public shareholding norm. The country's largest realty firm will use this fund to significantly reduce its debt which stands at over Rs 25,000 crore. "DLF's public shareholders have approved the GIC deal. GIC Singapore has also received the CCI approval. The final order is awaited after which the closing process will begin. "We are hopeful of concluding this deal and subsequent infusion of funds into DLF within this fiscal year," DLF's Senior Executive Director (Finance) Saurabh Chawla told analysts. Promoters will receive the proceeds in this calendar year and will infuse funds into DLF by February 2018, he added. In late August, DLF promoters decided to sell their entire 40 percent stake in DLF Cyber City Developers Ltd (DCCDL) for Rs 11,900 crore. This deal included the sale of 33.34 stake in the DCCDL to Singapore's sovereign wealth fund GIC for Rs 8,900 crore and a buyback of the remaining shares worth Rs 3,000 crore by DCCDL. Post this deal, DLF will have 66.66 percent stake in DCCDL. DLF's CFO Ashok Tyagi said the company has started selling its flats from November 1 which was stopped since May because of implementation of the real estate regulatory law RERA. The company has an unsold inventory of about Rs 15,000 crore, he added. "Out of 15 million sq ft under construction in our residential business, 13 million sq ft will be completed by March next year. Around 8 million sq ft is ready to be handed over to customers shortly," Tyagi said. DLF's CFO said that the company would explore the option of developing its land bank in partnership with local builders in locations like Bengaluru, Chennai and Hyderabad but not in Delhi-Gurgaon. Chawla also said the company would not enter the affordable housing segment. Yesterday, the company reported a 91 percent fall in consolidated profit at Rs 17.88 crore for the quarter ended September against Rs 198.53 crore in the year-ago period. Total income dropped 21 percen to Rs 1,751.34 crore in the second quarter of this fiscal from Rs 2,225.66 crore in the corresponding period of the previous year.
With warm regards,
Team IREF
https://www.indianrealestateforum.com/forum/city-forums/ncr-real-estate/gurgaon-real-estate/13876-real-estate-bubble-set-to-burst-again-in-india
Posted by: ggnhomeowner
On: November 12 2017 12:08 AM
Had been out of town for a few days and missed quite a bit of reports/news. Seems the various stories are contradicting quite a bit. For some its doom and gloom, and in other places/reports there are strong growth areas. Should the RBI housing price data be believed or not? Should the home loan books growth be taken into account that sales are actually happening or not? Unless there has been a growth in the sales, difficult to comprehend how the home loan portfolios of various banks have grown.
With warm regards,
Team IREF
With warm regards,
Team IREF
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