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Call it flavor of the season or overt holier-than-thou or just plain Anna Hazare effect, major real estate developers of Punjab have announced not to pay bribes to government officials in future for getting their projects approved.
The ruling of Competition Commission of India (CCI) against the market leader DLF seems to have not only sparked a debate within the real sector, but has also united them.
It is not slowdown for some of the realtors, while others are feeling the heat. If the signature projects of some of the developers are any indication, market is still good if you don’t have crisis of credibility.
The debt load of 11 listed real estate companies in the country has risen 15%, or by Rs.5,000 crore, to Rs.38,500 crore in the last 12 months.
India’s ASK Property Investment Advisors aims to raise a Rs.10-billion ($219 million) fund by December in a bet on the long-term case for property in Asia’s third-largest economy, said a top official.
Shriram Properties, which wants to refinance projects under development and acquire distressed real estate assets may get $125 million PE fund by private equity arms of JP Morgan, IL&FS and Morgan Stanley.
Confederation of Real Estate Developers’ Associations of India (CREDAI) Pune has opened e-PROFEST 2011, Pune’s Virtual Realty Fair.
DLF plans to reduce its debt by Rs.2,500-3,000 crore by the end of this financial year, according to Group Executive Director Rajeev Talwar.
In Mumbai sales registrations for July 2011 are down 31% to 5,047 as against 6,500 in July 2010, pointing to the continuing downtrend, said real estate analysts for Prabhudas Lilladher.
Pune real estate is poised for growth both in residential and retail segment. While the demand-supply gap indicates that residential prices may go up, the retail segment of the city is also showing strong signs of revival.