After lacklustre 2013, big ticket land deals make a comeback
Experts expect transactions worth Rs 6,000 crore in 2015
Jan 08, 2015
Source : Business Standard


Mumbai: Call it an expectation of revival in the real estate market or improving liquidity, bulge bracket deals have made a comeback in the country’s commercial capital. The year 2014 saw property deals worth over Rs 4,400 crore here compared to  Rs 910crore in the previous year.

In 2012, a big year, Rs 8,194 crore worth of property deals were transacted, according to data culled by property consultant Cushman & Wakefield and Liases Foras, a real estate research firm. While the 2012 tally was the highest in a row of three years, it was tilted in favour of a mill land sale by DLF. The Delhi-based developer sold its property in Lower Parel to the group for Rs 2,727 crore.

But last year had three deals each worth over Rs 1,000 crore while 2012 had only two such deals. bought 25 acres of Tata Steel’s land in the Kandivali area of Mumbai for Rs 1,155 crore. The Lodha group purchased 87 acres of land in Thane, on Mumbai’s outskirts, for Rs 1,154 crore. And Sai Ryden Realtors, bought land in Vasai, near Mumbai for Rs 1,111 crore.

were not happening in 2013 because people were not clear about development rules. Now, there is complete awareness on development control rules and future potential of a plot. Deals have started and I believe these will will go up,” said Gulam Zia, executive director at property consultancy Knight Frank.

According to Zia, since Mumbai sees office transactions of five million sq ft every year and that fuels a residential requirement of 40 million sq ft, the city needs to transact 25 million sq ft, or 573 acres of land, every year, assuming developers use an of two in building apartments. FSI or floor space index defines construction allowed on a given plot of land.

“If half that 25 million sq ft is historical land, 12-15 million sq ft has to be purchased. Many more deals should happen,” Zia said, adding that if the weighted average price in Mumbai was Rs 30-40 crore per acre, the city should see deals of Rs 6,000 crore this year.

According to Sanjay Dutt, managing director of Cushman & Wakefield, the year 2013 saw fewer deals because developers did not have money and investors had opportunities beyond buying real estate.

“With the new government and improving sentiment, we are seeing a lot of foreign capital flowing into the country. I believe 2015 and 2016 will see many deals,” Dutt said.

However, Sharad Mittal, head, real estate, Motilal Oswal Private Equity Advisors, said land acquisition in the Mumbai Metropolitan Region was happening largely on two counts: By large developers with strong balance sheets and on account of consolidation in a tough market. “But most developers are focusing on execution and sales of existing projects rather than on new acquisitions,” Mittal said.

Mittal could be right. According to PropEquity, the number of launches in the Mumbai Metropolitan Region has come down by 51 per cent in January-September 2014 from the corresponding period of the previous year. Of the committed supply of 1,23,859 units in January-June 2014, just 31,504 units were delivered.

Latest Realty News

BDA logs out of e-despatch
Jan 08, 2015
Bhubaneswar: The Bhubaneswar Development Authority (BDA) has stopped communicating through the e-despatch site of the state government following the discretionary quota allotment controversy
KKR, GIC partner for India realty lending platform
Jan 08, 2015
Mumbai: Global private equity firm Kohlberg Kravis Roberts and Co. LP (KKR) has established a NBFC in India along with GIC Pvt. Ltd, to provide structured credit solutions to the real estate sector in the country
Google Capital backs online real estate portal CommonFloor
Jan 08, 2015
BANGALORE: Online real estate portal CommonFloor has raised funding from Google Capital
Pune developers feel hike in ready reckoner will impact sales in 2015
Jan 08, 2015
Pune: Those planning to buy property in Pune this year will have to shell more as purchasing of property just got more expensive
DDA stumbles upon another 1500 acres of land, part of its 7000-acre vacant landholdings
Jan 08, 2015
NEW DELHI: Delhi Development Authority was sitting on undeveloped land more than what the survey revealed
DLF files fresh undertaking in Supreme Court, to submit fine in tranches
Jan 08, 2015
NEW DELHI: Real estate major DLF iled a fresh undertaking in the Supreme Court
Master plan favours real estate players: Vishwanath
Jan 08, 2015
Mysuru: The former MP A.H. Vishwanath has urged the State government not to notify the Mysore Master Plan 2031, alleging that it was beneficial to real estate players
Hyderabad realty lags, but looks set for revival
Jan 08, 2015
HYDERABAD: The real estate sector in Hyderabad, which continues to lag with tepid sales volumes, is set to transition to a growth phase
Online realty portals bank on builders to boost revenues
Jan 08, 2015
BENGALURU: Online realty portals that are competing in a fastgrowing market are banking on developers spending more on online marketing and new property sale
Bombay HC seeks Pimpri Chinchwad Municipal Corporation affidavit about demolition drive
Jan 07, 2015
PUNE: The Bombay high court has directed the city engineer of Pimpri Chinchwad Municipal Corporation (PCMC) to submit an affidavit before February 2 giving details about the demolition of unauthorized constructions

Latest Realty News Of State

Realty Talk's