Mumbai Reatly - Decline + Fall

The following chart [by Centrum Research] shows how Mumbai's Realty has faired over the past 16 years.
Centrum in the same report further makes a modest assumption of Realty prices correcting by 15% to 10% over the next 2 years while evaluating investment case for Mumbai focused realty companies like HDIL and Orbit.

We present Residential Realty prices for few areas with the best construction in INR / SFT for FY08, FY09 and FY10

• Cuffe Parade 40,000 - 36,000 - 34,000
• Worli 25,000 - 22,500 - 21,375
• Bandra 20,000 - 18,000 - 17,000
• Borivali 6,000 - 5,400 - 5,000
• Thane and Vashi 5,000 - 4,500 - 4,000

Commercial Realty Prices with the best construction in INR / SFT for FY08, FY09 and FY10

• Nariman Point 38,500 - 34,650 - 31,000
• Worli - 33,000 - 29,000 - 26,000
• Andheri 17,600 - 15,840 - 14,000
• Malad - 13,200 - 11,800 - 10,600
• Vashi - 5,500 - 4,950 - 4,450
• Thane - 6,600 - 5,940 - 5,400

Mumbai commercial rentals Fall

Commercial Property Rentals are spiraling south in Mumbai as the US sinks deep into financial crisis. Barclays Bank took space at Cee Jay House in Worli for Rs725/sq ft/month in May 2008, the adjacent building with 80,000 sq ft of space is now receiving enquiries for Rs300-350. Property brokers are currently getting queries for Rs200-225 for One Indiabulls Centre compared to Rs275-325 earlier while in BKC (Bandra Kurla Complex) where rentals peaked at Rs450, clients are now negotiating for rates below Rs300.

Deals for office space have slowed by 30% in the last three months. Leading property brokers and consultants in Mumbai say things will be worse with prospective tenants asking for a 50% cut in rates.

Sobha Developers + Mahindra Lifespace Forthcoming Projects

Sobha Developers and Mahindra Lifespaces have the following forthcoming residential projects coming in India to cater to the housing needs.

Sobha Developers:
Bangalore - Apartments - 7 projects at various locations
Bangalore - Row houses - 2 projects
Thrissur - Apartments - 1 project
Mysore - Apartments - 2 projects
Mysore - Villas (Plots) - 1 project
Pune - Apartments - 3 projects
Gurgaon - Apartments - 2 projects
Gurgaon - Integrated Township

Mahindra Lifespaces:
Mahindra Chloris Faridabad, Haryana
Project Palam Vihar, Delhi NCR
JV MIHAN, Nagpur
JV with Alaya MWC, Chennai 55 acres

Parsvnath + DLF New Launches - Residential

Proposed new launches by Parsvnath Developers Ltd and DLF in India are as follows.

Parsvnath Developers:
Parsvnath Royal Villas Panipat Aug-08
Parsvnath Royal Floors Lucknow Sep-08
Parsvnath Group Housing Indore Aug-08
Parsvnath IT Park Sohna Sep-08
Pasrvnath Prominence Bhiwadi Sep-08
Parsvnath Mall Goa Aug-08
Parsvnath King City Villas Rajpura Sep-08
Parsvnath Premium Housing Pune Aug-08
Parsvnath Pragati Group Housing Dharuhera Sep-08
Parsvnath residency Housing Moradabad Aug-08

DLF:
Kasauli Luxury
Panchkula Mid Income
Gurgaon Mid Income
Indore Mid Income
Hyderabad Mid Income
Goa Super Luxury
Bangalore Mid Income
Kakanad Mid Income

DLF + Unitech projects in trouble over Lehman Bankruptcy

It is really amazing to know that Lehman Brothers which itself was on the verge of bankruptcy continued to invest in troubled Real Estate sector in India. Lehman is the best example of - Once Bitten Twice Shy :-)

Lehman has already invested $200 million in DLF promoter group company DLF Assets last year and bought 50% stake in Unitech's Mumbai project for $175 million a few months ago. It had also invested $80 million in Bangalore-based SEZ Gandhi City and was likely to hike its share to $300 million. Lehman had commitments upto $500 million in the troubled real estate sector in India.

What will happen now ?
There will be parties interested to snap up Lehmans realty investments in India at rates far below prevailing market rates [which is already done since Lehman's investments]. This will put a lot of pressure on companies like DLF and Unitech who made money just by virtue of appreciating land prices.

Kindly note that Dow Jones has plunged the highest in Y'days trade, the highest since 9/11 attacks in 2001. The trouble is here to stay and wipe out speculation in realty, Thank God. Go with your cash and hold the realtor's collar for a brgain, he will budge :-)

Chennai + Kochi Property Prices

Here is another report about property prices by various well known developers in Chennai and Kochi.

Name of the Property, Developer, Location and price in INR / sft

• DLF Gardencity DLF OMR, Chennai 3,200
• Purva Swanlake Puravankara OMR, Chennai 3,600
• Purva Windmere Puravankara Pallikarni, South East 3,090
• DLF Riverside DLF near Chilavannoor River, Kochi 3,850
• Purva Moonreach Puravankara Seaport-Airport Road, Kochi . 3,100
• Purva Grandbay Puravankara Marine Drive, Kochi 3,800

Add if you know of any other good property here.

Greater Noida + Faridabad Property Prices

The field survey of property prices in Delhi NCR continued bu another team in Faridabad and Greater Noida. Here are the findings.

Name of the Property, Developer, Location and price in INR / sft

• Unitech Grande, Aqua and Terra Unitech Noida, Expressway 8,000
• Omaxe Grand Woods Omaxe Noida, Sector 93 5,000
• Omaxe palm Greens Omaxe Greater Noida 2,900
• Jaypee Moon Court Jaypee Paril Chawk, 5,400
• Mahindra Chloris Mahindra Lifespace Mathura Road, Faridabad 4,000
• Omaxe Spa Village Omaxe Faridabad 2,500
• Era Redwood residency Era Faridabad 1,900
• Castlewoods IndiaBulls Real Estate Ltd Tehkhand, Delhi 12,750

Kindly report any discrepancies to us.

New Gurgaon Property Prices

We have an exclusive survey of property prices at Gurgaon and New Gurgaon.

Name of the Property, Developer, Location and price in INR / sft

• DLF Park Place DLF Phase V, Gurgaon 6,750
• The Belaire DLF Phase V, Gurgaon 7,250
• Fresco Unitech Gurgaon 4,700
• The Palm Springs Emmar MGF Gurgaon 7,200
• Parsvnath Exotica Parsvnath Gurgaon 6,850
• Woodstalk Floors, Nirvana County Unitech Sector 50, Gurgaon 4,650
• Unitech Escape Unitech Gurgaon - Sohna Road 4,700
• Unitech Harmony Unitech Gurgaon - Sohna Road 4,700
• Independent Homes DLF New Gurgaon 2,550
• Twin Homes New Gurgaon 2,550
• DLF express Greens DLF New Gurgaon 2,350

Do let us know if there is any discrepancy in our field research.

Mumbai Redevelopment Booster

The recent Supreme Court (SC) ruling could balance the demand supply equation for Mumbai's property market, leading to considerable land supply and softening of high prices. SC ruled yesterday that a cessed building (constructed pre 1940) in Mumbai can be redeveloped under the provisions of section 33 (7) of Development Control Regulation (DCR) (as amended in 1999).

The ruling paves way for the redevelopment of 18,000 old (pre 1940) buildings in prime (South) Mumbai (including areas such as Girgaum, Grant Road, Bhuleshwar, Nagpada, Parel) as long as 70% of the tenants/landlord agree. Developers will need to provide at least 225 sq. ft. unit to each tenant free of cost, and in return will get additional FAR (50-70% of redeveloped area) to sell in the open market.

The existing two million tenants in these buildings (several are chawls) can get safer and better accommodation. However, inadequate civic infrastructure and low ground clearance could worsen quality of life & lead to unplanned development.