In the residential sector, prices are stagnating at Rs2,500-3,000, while resale prices are down 15-20%; volumes are end-user-driven and are down 30-40% and the pace of pre-sales slowed sharply in Aug-Sep 08. Most projects are running 6-12 months behind schedule, and Phase-II time-lines are being pushed back on demand slowdown.
Demand for IT and non-IT space has cooled off over the past 2-3mnts, following the Singur episode and downturn in global markets. Rentals are holding at Rs32-38/sqft for IT Parks and Rs38-42/sqft for IT SEZs, but absorption has fallen significantly. Most retail malls have been put on the slow track.
Land Prices Correct Sharply: Post the exit of the Tatas from Singur, land prices in peripheral areas have corrected sharply from 10-20 mn/acre to less than 3mn / acre. But prices in key development zones like Rajarhat are holding at Rs120m/acre, though transactions are down.
DLF Residential project of ~800 units was sold-out shortly after launch at Rs3200/sqft; construction started in Jun 08, exploring more launches but nothing immediately in the pipeline.
Unitech's Uniworld City, the company's flagship project of ~3500 units, has seen sales of ~2200 at an average of Rs3,000 - resale prices are down 12-15%; fresh sales have, however, slowed to mere 25 units vs. ~60 units 6 months back. Additionally, cash starved Unitech has delayed construction by 6-8 months. Kona Gateway project launched a year back has seen significant delays, sales and prices have stagnated; management expect s construction to commence shortly. Phase-I construction of row house at houses at Kolkatta West International City, Howrah is underway.
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