Real estate in India saw dip in sales in 2012
Many Indian real estate developers had to witness low sale rate and high debt in 2012 due to prolonged approval procedure.
Due to high pressure from banks and financial institutions, the developers have come to the term that they need to pay their debts in time.
The repayment of these standing debts has made many developers including one of India’s biggest developers, DLF Ltd to sell some of its assets.
The reason for such high debts is the new norms for classification of restructured loans to real estate which have let the developers to take monetary help from NBFCs (non-banking financial companies), which is available at a high interest.
According to property consultancy Cushman and Wakefield India, prices went up in the real estate market in India. The mid segment residential properties saw a rise of 10% and high end properties witnessed a hike of 12%.
The hike in prices of properties in India witnessed are as follows:
|
Categories |
Chennai |
Delhi NCR |
Mumbai |
Pune |
Bangalore |
|
Mid segment properties |
16% |
15% |
14% |
12% |
12% |
|
High end properties |
15% |
22% |
13% |
20% |
11% |
As per the property advisory Jones Lang La Salle India, prices are forecasted to drop in 2013 in large township projects in extended suburbs. Also, this year saw minimal land or asset acquisitions as developers concentrated more on execution and consolidation of their operations as sales remained slow.
Lodha Developers Ltd was one among the group which acquired Washington House in South Mumbai from the US consulate for Rs.341.82 crore in June.
Apart from drop in home sales, there was a drop in sale of office space as well by 23% in 2012- the lowest since 2010.
How would 2013 be for real estate?
Office space absorption decline in 8 cities by 23 percent
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