Residential realty reflects sluggish growth
Aug 07, 2012
Source : Business Standard
Residential Development

 

The news is still not rosy for real estate developers as residential realty in the region continues to follow a weak trajectory.
 
Brokers in the region say that not much of sales are happening as of nowas weak sentiments standing as a stumbling block.
 
Also, perception is floating that property rates should fall before buyers enter the market.
 
Vikas Gupta, Punjab region vice-president for real estate developer Ansal-API group, terms the sluggishness in real estate market as a cyclical trend.
 
“Every year we see residential sales normally gather momentum during festive period and moths from June till August are generally lean from sales perspective.”
 
Manoj kashyap, regional director, Jones Lang LaSalle, a property management firm, says growth in residential realty is sluggish since last 3-4 months.
 
While buyers are expecting some reprieve in costs (softening of property prices), builders continue to hold prices.
 
Explaining the rationale behind prices not coming down as per expectations, Gupta says the input cost for developers has gone up. According to Gupta’s estimates, in the last one year the input prices have moved up by 30-40 per cent.
 
This probably could be one of the factors for builders not being able to soften the prices.
 
Real estate channel partners also blame the weakening sentiments for residential market not picking up.
 
Tarundeep Singh Thakkar, Director Investment –KBK Infra, another real estate advisory form, says transactions in residential sector have slowed down.
 
“Though it is difficult to put an estimate, but residential market is sluggish now.”
 
The only silver lining for developers now remains the investors from overseas.
 
With the weakening rupee, investors overseas are finding it lucrative to invest in properties here.
 
Tarundeep adds they were observing increase in interest from investors overseas and NRI investors could be one category which could invest in properties back at home.
 

Latest Realty News

Credai NCR Would Help Habitat For Humanity India !
Aug 07, 2012
Realtors' body CREDAI has said it will fund construction of houses for families of about 30 differently abled persons in the Delhi NCR (national capital region). As part of its CSR (corporate social responsibility), CREDAI NCR would help Habitat for Humanity India (HFHI) and Madok Foundation in developing these houses at Mundka & Bahadurgarh area. CREDAI-NCR said in a statement, "The pro
Bhubaneswar Municipal Corporation officials to learn from Gujarat model
Aug 07, 2012
BHUBANESWAR: The Bhubaneswar Municipal Corporation (BMC) would send a 10-member delegation of corporators to Gujarat on August 16 to help them learn the civic delivery system of Ahmedabad Municipal Corporation (AMC). It followed the invitation by AMC commissioner and senior Odia IAS officer of Gujarat cadre Guruprasad Mohapatra, who presented an audio-visual demonstration of AMC works here on Mon
Cuttack housing set for a big leap
Aug 07, 2012
BHUBANESWAR: The comprehensive development plan (CDP) for Cuttack development plan area (CDPA) was finally notified on Sunday. The plan envisages around two-and-a-half times increase in land used for residential purpose from 9.92 per cent at present to 23 per cent by 2030. The CDP suggested creation of 12,000 houses for economically weaker sections (EWS) category to rehabilitate the existing s
Realty check for new service tax regime
Aug 06, 2012
The service tax regime has been overhauled vide Budget 2012 — the 18-year-old classification-based service tax law has been replaced with ‘negative list’ based levy. This has widened the scope of services manifold. The shift to a negative list-based taxation is aimed at aligning the service tax system to the proposed Goods and Services Tax regime. It is hoped that the GST will help unify the
Real estate, election campaigns routing black money
Aug 06, 2012
NEW DELHI: Money generated through illegal means is laundered through various means, including real estate and election campaigns, in India, a report of the US State Department has said. "High-level corruption both generates and conceals criminal proceeds. Illicit funds are often laundered through real estate, educational programs, charities, and election campaigns. Companies use trade-based m
Cities should be made hubs of economic growth: official
Aug 06, 2012
Secretary in the Union Urban Development Department Sudhir Krishna on Friday said urbanisation could not be prevented and the solution lay in creating planned cities making them hubs of economic growth. Delivering the keynote address at the South India Real Estate Conference 2012 organised by Federation of Indian Chambers of Commerce and Industry (FICCI) here, Mr. Krishna said at a time when
Corporators up in arms against Berhampur MP
Aug 05, 2012
BERHAMPUR: Cutting across party lines, several corporators of Berhampur Municipal Corporation (BMC) on Friday engaged in a heated exchange with BJD MP from Berhampur Siddhant Mohapatra, holding him responsible for lack of development of the town. "The MP is not interested in the town's development. He has never attended any council meeting to discuss issues related to this, even though he has
Crime branch arrests 2 in Balangir land scam
Aug 05, 2012
BALANGIR: Crime branch sleuths on Friday arrested the Agra-based Taj Gas company manager and supervisor, who were allegedly involved in grabbing the land of around 100 farmers in Patnagarh subdivision in Balangir district. The two accused, Debendra Tyagi (manager) and Ajaya Sharma (supervisor), were caught by a special team from Patnagarh a day after the officials began a probe into the scam.
Risky rides for school kids
Aug 05, 2012
BHUBANESWAR: Chaotic traffic outside school gates, overloaded auto-rickshaws ferrying children and unruly guardians waiting to pick up their wards after end of classes have turned the spotlight on safety of students while commuting in the city. A problem peculiar to the city is that several schools are located on busy main roads. Given the low level of people's awareness and lack of adherence
Swinging times back at park-Cuttack
Aug 04, 2012
Cuttack, Aug. 3: Swing times are back at Sarangadhar Das Children’s Park in Jhola Sahi and children living nearby couldn’t be happier. New swings and joyrides that were lying defunct have been fixed and the smiles are back on the faces of kids. The Cuttack Municipal Corporation’s move to repair the park’s infrastructure has come after a long time. Not too long ago, damaged rides and swings

Latest Realty News Of State

Realty Talk's