The government’s decision to operationalise FDI in multi-brand retail would help the realty sector as the move would create demand for retail space and boost mall development in the country, real estate developers and property consultants said.
After a sharp recovery in the first one-and-a-half months of the calendar year — the Bombay Stock Exchange (BSE) Realty Index gained over 50 per cent, real estate stocks seem to have lost steam.
Indian developers will borrow about $1 billion from private equity funds this fiscal year at rates higher than banks, which are cutting loans to builders, Knight Frank assessment suggests.
One of the biggest problems afflicting the sector is its high level of debt. The debt load of 11 listed real estate companies stands at Rs.38,500 crore.
A Knight Frank report suggests revenues of real estate companies have dropped by 19 per cent and profits have declined by 70 per cent, over the past four financial years, since 2007-08.
Even as global economic slowdown and uncertainty in financial markets have battered the real estate industry countrywide, properties in Kolkata and Chennai bucked the trend with steady demand in affordable and mid-segment housing.
Housing Development Finance Corp, India’s largest mortgage lender, plans to raise its fourth property fund from overseas investors, said two people close to the development.
Integrated township, 5-star hotel, shopping malls, multiplexes, and luxury apartments… backed by the NRI investment Nagpur is fast catching up on the real estate map of India to emerge as the tier I city.
Residential prices in Asia continue to increase, contrary to the pattern elsewhere, according to the Global House Price Index for the second quarter of 2011 by property consultant Knight Frank.
A report by real estate firm Knight Frank says worldwide mainstream house prices marginally avoided falling into negative territory with prices rising on average by 0.1% in the three months to June 2011 and by 1.7% over a 12-month period.