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Mumbai property market paradox

Feb 27 2012 | 0 Comments | 3054 Views

Mumbai Property market Paradox: High prices low transactions

Property sales reached its lowest level in September 2011 (22% drop year over year) and have recovered slowly from the bottom. Developers still balk at reducing the price. Experts believe that the property markets have peaked there for the time being and a correction is expected in near term.

Read more at http://tinyurl.com/7sgwgq5

Indiareit to raise $500MM globally to invest in Indian real estate

Indiareit Fund Advisors ( a subsidiary of Piramal Healthcare) is planning to tap the global market for $500MM  in June 2012. It is smart move given the funding difficulty from lenders in the domestic markets. This will also provide a boost of confidence to other foreign investors to invest in Indian property market  in a time in which net outflow of foreign investment is expected.

Read more at http://tinyurl.com/79xanf2

India's GDP growth rate may fell below 6.9% in 2012

According to Federation of Indian Chambers of Commerce and Industry (FICCI), projected growth rate for 2012 is below 6.9% due to downside risk.
Key highlights:
1. The estimate is based on a downward revision of 2010-2011 GDP
Poor performance of manufacturing and mining sector is a contributing factor
2. Steep drop in Index of Industrial Production(IIP) in December 2011 (-5.1%) is worrisome
3. Rupee has recovered from the lowest level of Rs. 54.23 per dollar  in Mid December 2011 to around Rs. 48 now due to RBI intervention in Forex market
4. Liquidity withdrawal of Rs. 55,000 Crore in Nov-Dec 2011 alone due to foreign capital outflow
5. RBI is expected to neutralize it by reducing cash reserve ratio (CRR) in March 2012

  Read more at  http://tinyurl.com/7s2vfno

Office Space Demand is expected to reduce in next two years

Supreme Court cancellation of 122 licenses of telecom operator and the decision by several firms to exit the telecom sector may put downward pressure on office space leasing rate in the short run. In the long run the rates will rebound due to eventual consolidation in the telecom sector. Telecom sector absorbed around 10% of the total office space in 2011 with Bangalore being the leader followed by NCR and Pune.

Read more at http://tinyurl.com/83ka2ym

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