Premium housing prices may fall soon on inventory pile up
Nov 05, 2013
Source : The Economic Times

 

MUMBAI: Investors can look forward to premium housing units getting cheaper by up to 20 per cent and gold prices rising significantly this festive season, says a financial advisory firm.

“We are expecting premium housing projects to get cheaper by up to 20 per cent… Potential buyers will not have to negotiate discounts, since realty companies are in all probability going to make such announcements,” a Delhi-based financial advisory firm InvestCare said in a statement.

The high inventories can soon impact cash-flow for realtors, adding that depending on the project, a cut up to 20 per cent could be possible.

“A cut in prices is definitely possible for premium housing units. If companies can cut prices, it will help bring back buyers to the market despite the weak environment”, its Managing Director Ajit Mishra said.

Company’s director Samar Vijay said sales of premium housing units have fallen sharply and companies are sitting on huge inventories. Since premium units fetch huge margins to builders they can afford to offer discounts to get rid of the inventories, he adds.

The situation is very different from mass market units, he said, adding since builders have a lot more financial muscle they can hold on to the prevailing high prices. They are open to negotiated deals with potential buyers, which can help cut down price for the buyer, InvestCare said.

On gold prices, it said: “Gold prices could inch up after the compromise announced on the US government shutdown and the continuing uncertainty there. In the event of the debt ceiling being raised, the US Fed will have to print more dollars, pushing gold prices up further.”

Since the US debt is rising and is likely to tread up further, we are confident that gold prices will go up substantially from current levels to around Rs 35,000 mark, he added.

 

Latest Realty News

Large office spaces see few takers as slowdown bites
Nov 05, 2013
MUMBAI: The quantum of large commercial space leased out dipped sharply last quarter. While Delhi saw a drop of 91% sequentially and 66% over the March quarter, the trend in Mumbai was only slightly better — the fall was 50% sequentially and 62% over the January-March period. Indeed, there seem to be few takers for office space of more than 1 lakh square feet — just 1.2 lakh sq ft was rented in Delhi in the September quarter while in Mumbai the area was 2.5 lakh sq ft.
Equity, gold, real estate: Tips to make your first investments
Nov 05, 2013
MUMBAI: It is not an easy time to be an investor. Even though you may be spoilt for choice, there is a high degree of volatility across asset classes. This means that one has to be extra cautious while choosing investments. Whether you are opting for equity, fixed income, property or gold, the current environment will punish you for rash or untimely decisions. For those who have just started saving, taking the initial steps into the world of investing is even more daunting. It's the same for any
Festive season brings relief to real estate, automobile market
Nov 04, 2013
NASHIK: At a time when the industrial and real estate sectors have been facing economic slowdown since the last two years, the festive season from Dussehra to Diwali brought relief to real estate and automobile sectors. From October 5 to November 3, these sectors generated business worth over Rs 300 crore in the city.
Land surveyor held for taking Rs 3,000 bribe
Nov 04, 2013
NASHIK: Even as the anti-corruption bureau's (ACB) Vigilance Awareness Week was underway, the ACB sleuths last Thursday arrested a land surveyor in Yaval tehsil of Jalgaon while accepting a bribe of Rs 3,000 from a woman.
Kolhapur Municipal Corporation to provide property cards to rehabilitated slum dwellers
Nov 04, 2013
KOLHAPUR: The civic administration has decided to issue property cards to rehabilitated slum dwellers to help them enjoy the benefits of slum rehabilitation programmes.
What to do in case of theft or misplacement of property documents
Nov 04, 2013
MUMBAI: The loss, theft or misplacement of property documents is a cause of concern for property owners since no transaction can be completed without checking the original sale deed.
Cementing the future of REIT
Nov 03, 2013
MUMBAI: In a major step to fuel the growth of the country’s real estate sector, SEBI recently released a consultation paper together with the draft Real Estate Investment Trust 2013 (REIT) regulations. Issued after discussions with stakeholders, the draft regulations have been widely seen as robust and along the lines of regulations in other countries. It is critical that the initial REITs prove successful for investors so that they can become a stable platform for providing developers exits fro
SEBI cracks down on an illicit real estate scheme
Nov 02, 2013
MUMBAI: Market regulator SEBI on Friday barred Servehit Housing & Infrastructure India and its directors from raising money from public after a probe into mobilisation of funds by the company through alleged illicit real estate scheme.
'Premium housing prices may fall soon on inventory pile-up'
Nov 02, 2013
MUMBAI: Investorscan look forward to premium housing units getting cheaper by up to 20 per cent and gold prices rising significantly this festive season, says a financial advisory firm.
Large office spaces see few takers as slowdown bites
Nov 01, 2013
MUMBAI: The quantum of large commercial space leased out dipped sharply last quarter. While Delhi saw a drop of 91% sequentially and 66% over the March quarter, the trend in Mumbai was only slightly better — the fall was 50% sequentially and 62% over the January-March period. Indeed, there seem to be few takers for office space of more than 1 lakh square feet — just 1.2 lakh sq ft was rented in Delhi in the September quarter while in Mumbai the area was 2.5 lakh sq ft.

Latest Realty News Of State

Realty Talk's