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

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
UP to hardsell Noida at Pravasi Divas
Jan 07, 2015
NOIDA: The UP government is planning a branding exercise for the twin cities of Noida and Greater Noida to draw investment
Citizens may benefit as BJP against 20% hike in property tax
Jan 07, 2015
MUMBAI: The rift between the Shiv Sena and BJP is likely to benefit property owners in the city
Land fiat for bio-waste
Jan 07, 2015
Ranchi: Jharkhand High Court directed the state government and all municipal corporations to demarcate land for disposal of bio-medical waste
Cabinet nod to alter lease properties
Jan 07, 2015
Patna: The cabinet on Tuesday approved conversion of Bihar State Housing Board's "lease-hold properties" into "free-hold properties" with a one-time conversion fee
CBI arrest drives TMC opposition to land ordinance, GST: Rahul
Jan 07, 2015
Kolkata: Trinamool Congress's opposition to Centre's land ordinance and GST is dictated by its anger at the CBI's arrest of top leaders of the party

Latest Realty News Of State

Realty Talk's