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Wednesday, October 27, 2010
Wednesday, October 20, 2010
Realtors offer freebies to brokers to sell stocks
The property market , which is once again on fire, is being driven mainly by investors, raising fears within the industry that a meltdown may be just round the corner. The market is booming, but many are now asking how long will it be able to sustain the rates which have shot up by 60% to 100% since 2009.
As builders launch a slew of high-end residential projects with some offering enticing payment schemes to buyers, experts warned that it is more a sign of weakness to mop up demand, tie down purchasers and make it difficult for them to exit in case prices fall.
Despite the euphoria, builders are edgy and are suddenly offering not only brokerage but mega prizes to brokers to sell their stock.
A prominent south Mumbai developer has offered brokers 2% commission plus a Skoda-Fabia car if they get business worth Rs 5 crore, a Skoda-Octavia if they sell flats worth Rs 10 crore, a Mercedes C class if they get business worth Rs 20 crore, a Mercedes E class if they fetch Rs 30 crore, a top of the line Mercedes S class if the figure touches Rs 50 crore and a Rolls Royce if they manage Rs 100 crore business in some of his projects. This is a sign of desperation and a realization that the good times won't last forever,'' said an industry insider.
A recent innovative scheme that allows the buyers to pay just 10% upfront and the remaining 90% only on possession has received tremendous response'', said builders.
The trend started by Indiabulls Real Estate for two of its luxury skyscrapers in Lower Parel recently has now been adopted by several builders across the city. However, not many are aware of the fine print. Sources said there is a heavy exit load in case the buyer wants to get out.
Read more >>
As builders launch a slew of high-end residential projects with some offering enticing payment schemes to buyers, experts warned that it is more a sign of weakness to mop up demand, tie down purchasers and make it difficult for them to exit in case prices fall.
Despite the euphoria, builders are edgy and are suddenly offering not only brokerage but mega prizes to brokers to sell their stock.
A prominent south Mumbai developer has offered brokers 2% commission plus a Skoda-Fabia car if they get business worth Rs 5 crore, a Skoda-Octavia if they sell flats worth Rs 10 crore, a Mercedes C class if they get business worth Rs 20 crore, a Mercedes E class if they fetch Rs 30 crore, a top of the line Mercedes S class if the figure touches Rs 50 crore and a Rolls Royce if they manage Rs 100 crore business in some of his projects. This is a sign of desperation and a realization that the good times won't last forever,'' said an industry insider.
A recent innovative scheme that allows the buyers to pay just 10% upfront and the remaining 90% only on possession has received tremendous response'', said builders.
The trend started by Indiabulls Real Estate for two of its luxury skyscrapers in Lower Parel recently has now been adopted by several builders across the city. However, not many are aware of the fine print. Sources said there is a heavy exit load in case the buyer wants to get out.
Tuesday, October 19, 2010
NHB Set to Tighten Rules Governing Affordable Housing
The housing regulator plans to tighten the rules governing affordable housing as it looks to ensure that projects built on subsidised priority loans are actually delivered. The National Housing Bank is working on a proposal that seeks to make it mandatory for such projects to get rated by credit rating agencies such as Crisil and CARE . “We are yet to work out the details,” said RV Verma, chairman and managing director of National Housing Bank, a housing finance institution owned by the Reserve Bank, which also functions as the sector regulator.
“We will hold discussions with the real estate industry, financial institutions, government bodies and other stakeholders before finalising the guidelines,” he said. There are over 25 developers across seven states in urban India, which offer good-quality low-cost housing in the range of Rs 3-7 lakh.
The move to get ratings is aimed at bringing in transparency and discipline into the market and enhancing allround confidence. “Better and credible information will be available in the market, which will benefit all stakeholders,” Mr Verma said. If the proposal sails through, the financing institutions will be in a better position to provide lending to real estate projects, both directly and indirectly.
“Ratings will provide us with the comfort that loan to such groups or buyers in that project will not turn into non-performing assets,” said a senior official with the country’s largest lender, State Bank of India . The ratings will also be a useful indicator of the quality of the project and the developer. It will also provide information on the current standing of the project. The move has also found favour with other government arms. According to an official with the ministry of housing and urban poverty alleviation, credit rating will encourage builders as they’ll also be sure of credit being made available to them.
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“We will hold discussions with the real estate industry, financial institutions, government bodies and other stakeholders before finalising the guidelines,” he said. There are over 25 developers across seven states in urban India, which offer good-quality low-cost housing in the range of Rs 3-7 lakh.
The move to get ratings is aimed at bringing in transparency and discipline into the market and enhancing allround confidence. “Better and credible information will be available in the market, which will benefit all stakeholders,” Mr Verma said. If the proposal sails through, the financing institutions will be in a better position to provide lending to real estate projects, both directly and indirectly.
“Ratings will provide us with the comfort that loan to such groups or buyers in that project will not turn into non-performing assets,” said a senior official with the country’s largest lender, State Bank of India . The ratings will also be a useful indicator of the quality of the project and the developer. It will also provide information on the current standing of the project. The move has also found favour with other government arms. According to an official with the ministry of housing and urban poverty alleviation, credit rating will encourage builders as they’ll also be sure of credit being made available to them.
Monday, October 4, 2010
Sunteck Realty to focus on premium luxury residential segment
MUMBAI: Riding on the high demand for premium residential space, realty major, Sunteck Realty , on Friday said as a part of its growth plans, it would focus on the premium luxury space in Mumbai.
The company is developing a range of landmark residential projects with apartments ranging from Rs 1 crore to Rs 40 crore, which offers exemplary designs and superior quality by adapting to highest standards of international living.
The company has 27 projects in pipeline out of which it has already successfully launched nine projects, it said in a statement here.
Of the nine, six are premium residential and three commercial projects with the remaining projects proposed for launches in the current fiscal, it said.
"Sunteck Realty is focused on catering to the aspirational business professionals by providing them their dream house," Sunteck Realty's Chairman and Managing Director, Kamal Khetan, said.
The company has already launched its high-end residential landmark projects--Signature Island at BKC with duplex apartments with an area of around 7,000 square feet to 11,000 square feet. Owing to the huge potential at BKC, the company plans to launch another two luxury residential projects--Signia Isles and Signia Pearl--in the near future, it said.
Sunteck has tapped key areas of Mumbai such as Andheri, Borivali, Vile Parle, Goregaon, Airoli, Mulund and Thane for further development.
Read more >>
The company is developing a range of landmark residential projects with apartments ranging from Rs 1 crore to Rs 40 crore, which offers exemplary designs and superior quality by adapting to highest standards of international living.
The company has 27 projects in pipeline out of which it has already successfully launched nine projects, it said in a statement here.
Of the nine, six are premium residential and three commercial projects with the remaining projects proposed for launches in the current fiscal, it said.
"Sunteck Realty is focused on catering to the aspirational business professionals by providing them their dream house," Sunteck Realty's Chairman and Managing Director, Kamal Khetan, said.
The company has already launched its high-end residential landmark projects--Signature Island at BKC with duplex apartments with an area of around 7,000 square feet to 11,000 square feet. Owing to the huge potential at BKC, the company plans to launch another two luxury residential projects--Signia Isles and Signia Pearl--in the near future, it said.
Sunteck has tapped key areas of Mumbai such as Andheri, Borivali, Vile Parle, Goregaon, Airoli, Mulund and Thane for further development.
Time for NRIs to buy a house
After a rollercoaster ride, the residential property market has stabilised now and a number of developers are gearing up to launch new housing projects. Developers are gaining confidence and pricing the products in a realistic manner. Realty funds are coming back to identify strategic partners for investments in residential projects.
With the corporates gearing up to expand operations, commercial space movement is also reviving with smaller spaces getting absorbed at frequent intervals unlike earlier. For homebuyers, the time is just right to strike bargain deals.
For NRIs who have been waiting in the wings, the situation is just appropriate to enter the market. Home loan rates are competitive and linked to the base rates after the initial period of three years. There are banks who have waived processing and documentation charges
Read more >>
With the corporates gearing up to expand operations, commercial space movement is also reviving with smaller spaces getting absorbed at frequent intervals unlike earlier. For homebuyers, the time is just right to strike bargain deals.
For NRIs who have been waiting in the wings, the situation is just appropriate to enter the market. Home loan rates are competitive and linked to the base rates after the initial period of three years. There are banks who have waived processing and documentation charges
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