Nov 21, 2008
The real state of real estate
Global economy recession and overall inflation in the rate if interest of housing loans has adversely affected the builders' community in the city, which was a couple of months ago the creamy layer for the investors.
Speaking to The Times of Navi Mumbai, the sub-registrar at AMPC complex, Gopinath Kolekar informed, "The statistics of documents registered in October 2007 had shown the figure fo 657. Comparatively, in October 2008, the total number of documents registered has drastically decreased to 526. The market rates of real estate is maximum in Vashi node and the minimum rate is that of Ghansoli node."
On further probe, he disclosed, "In October 2007, the rate of a flat in Vashi, sector 1 was Rs 36,000 per sq metre and that of an office and a shop was Rs 47,000 per sq metre. Whereas, in October 2008, the rate is Rs 40,000 per sq metre for a flat and Rs 50,000 per sq metre and Rs 60,000 per sq metre for an office and a shop respectively. In Ghansoli, in October 2007, the rates of a flat, an office and a shop were Rs 15,000 per sq metre, Rs 26,000 per sq metre respectively. Whereas, in October 2008, the statistics has revealed the rates of a flat, an office and a shop as Rs 27,600 per sq metre, Rs 34,500 per sq metre and Rs 41,400 per sq metre respectively."
Naresh Shah, a share market investor and property consultant revealed, "The present situation of slump in world economy has shaken the roots of almost economy has shaken the roots of almost all the sectors and the builders' community is no exception. The economy recession across the globe has affected the share market. Two years ago, the sensex was at 8k and went up till 21K and again dipped 8k and later stabilized at 10k. The rise in share market sensex was due to the investment by FII (Foreign Institutional Investors) and the down fall is also due to the withdrawal by FII. The stabilization of sensex between 8K and 10K is only due to the strength of the Indian market."
The real state of real estate
Global economy recession and overall inflation in the rate if interest of housing loans has adversely affected the builders' community in the city, which was a couple of months ago the creamy layer for the investors.
Speaking to The Times of Navi Mumbai, the sub-registrar at AMPC complex, Gopinath Kolekar informed, "The statistics of documents registered in October 2007 had shown the figure fo 657. Comparatively, in October 2008, the total number of documents registered has drastically decreased to 526. The market rates of real estate is maximum in Vashi node and the minimum rate is that of Ghansoli node."
On further probe, he disclosed, "In October 2007, the rate of a flat in Vashi, sector 1 was Rs 36,000 per sq metre and that of an office and a shop was Rs 47,000 per sq metre. Whereas, in October 2008, the rate is Rs 40,000 per sq metre for a flat and Rs 50,000 per sq metre and Rs 60,000 per sq metre for an office and a shop respectively. In Ghansoli, in October 2007, the rates of a flat, an office and a shop were Rs 15,000 per sq metre, Rs 26,000 per sq metre respectively. Whereas, in October 2008, the statistics has revealed the rates of a flat, an office and a shop as Rs 27,600 per sq metre, Rs 34,500 per sq metre and Rs 41,400 per sq metre respectively."
Naresh Shah, a share market investor and property consultant revealed, "The present situation of slump in world economy has shaken the roots of almost economy has shaken the roots of almost all the sectors and the builders' community is no exception. The economy recession across the globe has affected the share market. Two years ago, the sensex was at 8k and went up till 21K and again dipped 8k and later stabilized at 10k. The rise in share market sensex was due to the investment by FII (Foreign Institutional Investors) and the down fall is also due to the withdrawal by FII. The stabilization of sensex between 8K and 10K is only due to the strength of the Indian market."
Managing director of Haware Engineers and Builders, Suresh Engineers and Builders, Suresh haware said, "In real estate, there are two groups, an investor and a buyer. The buyer purchases property for his own use."
Haware father added, "The builders in the city have reduced the production. Presently, they are not investing in the new projects. They are undertaking projects only to finish the available stock in the market, which will be disposed off by the builders together. Eventually, the buyers will increase. Compared to mumbai, the city of Navi Mumabi, the city of Navi Mumbai is different since the latter is a representative place. The escalating hike in property rates, a few months ago, in some nodes of the city was an artificial hike. The residential rates along the Palm Beach Road is one such fine example of an artificial hike. That has reduced the buyers to 25-30 percent. But, the Palm Beach Road area is not a representative of Navi Mumbai."
Haware concluded, "People have offered SOPs (incentives) like the exemption from stampduty, reduction in rate of interest by at least 1percent and 10 percent interest on bank deposits. Once implemented, the buyers will come back in the active market."
Rajesh Prajapati, the managing director of Prajapati Builders said, "The global recession has had a direct impact on the realty market in the city. There is a shortage of customers. Most people are opting for ready possession flats instead of booking an Undset-construction flat. They claim that it is risky to invest in the latter since they fear that the project won't be completed in time and may delay the possession and deadlock their investment. Though some customers expect a reasonable rate for a ready possession flat, some are even ready to shell out extra money to get the possession of a ready flat rather than investing in an under-construction flat. Eventually, the builders are not undertaking new construction projects but are finishing the existing stock."
Haware father added, "The builders in the city have reduced the production. Presently, they are not investing in the new projects. They are undertaking projects only to finish the available stock in the market, which will be disposed off by the builders together. Eventually, the buyers will increase. Compared to mumbai, the city of Navi Mumabi, the city of Navi Mumbai is different since the latter is a representative place. The escalating hike in property rates, a few months ago, in some nodes of the city was an artificial hike. The residential rates along the Palm Beach Road is one such fine example of an artificial hike. That has reduced the buyers to 25-30 percent. But, the Palm Beach Road area is not a representative of Navi Mumbai."
Haware concluded, "People have offered SOPs (incentives) like the exemption from stampduty, reduction in rate of interest by at least 1percent and 10 percent interest on bank deposits. Once implemented, the buyers will come back in the active market."
Rajesh Prajapati, the managing director of Prajapati Builders said, "The global recession has had a direct impact on the realty market in the city. There is a shortage of customers. Most people are opting for ready possession flats instead of booking an Undset-construction flat. They claim that it is risky to invest in the latter since they fear that the project won't be completed in time and may delay the possession and deadlock their investment. Though some customers expect a reasonable rate for a ready possession flat, some are even ready to shell out extra money to get the possession of a ready flat rather than investing in an under-construction flat. Eventually, the builders are not undertaking new construction projects but are finishing the existing stock."
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