Delhi NCR - Property prices - Rental values

Here are the latest Property prices in various parts of Delhi NCR. We have also covered the Rentals in these areas. The following chart shows the latest residential property prices and rental yields on the same.

Delhi Gate Kashmere Gate Darya Ganj Model Town Pitampura Civil Lines

Vasant Vihar Anand Niketan Golf Links Chanakyapuri Panchsheel GK I Jorbagh
Safdarjung South Extension Lajpat Nagar

Preet Vihar Mayur Vihar Gandhi Nagar Vivek Vihar Shahadara

Patel Nagar Rajouri Garden Punjabi Bagh

Gurgaon Faridabad NOIDA Greater NOIDA Ghaziabad

Also check out India Property Forum for the latest trends.

Mumbai Property Prices + Rental Values

We would like to present the Property Prices in Various Parts of Mumbai Metro Region along with the Rentals as captured at the end of July-2011. The following Chart Shows the Same,

Mumbai - Mahim, Prabhadevi Worli Lower Mahalaxmi Mumbai Mazgaon Byculla Colaba Peddar Altamont Road Walkeshwar Malabar Napean SEa Road Wadala Sewri Sion

Navi Mumbai:
Palm Beach Road Kharghar Koparkhairane Panvel

Western Suburbs
Bandra Khar Santacruz Vile Parle Andheri Goregaon Malad Kandivali Borivali Dahisar
Mira Road

Central Suburbs:
Ghatkopar Kurla Mulund Bhandup Chembur Vikhroli

Thane:
Ghodbunder Road Panchpakhadi Eastern Expressway Teen Haath Naka Vasant Vihar.

2006 vs 2011 - What has Changed ?

2006 - India Real estate sector was in a sweet spot in 2006/07. With buyers coming in hordes to book apartments, land available at throwaway prices and regulators providing incentives, developers started making supernormal profits. Availability of capital was never a problem with foreign investors eager to invest and banks clearing loans at a rapid pace. All the above Can be summed up in the Chart as shown Below.
In 2001, the shift from time-linked payment to construction-linked payments and buyers becoming selective is having a far-reaching impact on developer’s cash flows. Land acquisition has become troublesome with land owners demanding a share in conversion gains while construction costs have seen continuous upward pressures and shortages on emerging bottlenecks. Regulators have increased surveillance on the sector with multiple monitoring tools. Equity capital is scarce with foreign investors disappointed with poor corporate governance and lack of cash flows. Debt and Private Equity funding has become expensive and scarce. We believe 2011 has provided enough empirical data confirming that it is a structural shift rather than mere cyclicality at play.

Impact of Land Acquisition Bill 2011 on Developers

Ashutosh Limaye, Head of Research at Jones Lang LaSalle India, discussed the proposed Land Acquisition and Rehabilitation & Resettlement Bill (LARR) 2011.

Residential Real Estate Development:
Mr. Limaye said that Land acquisition cost may not go up, since most transactions are done at market price, which is higher than the prescribed formula (using guidance rate, which could be a lot lower than market price).

According to JLL, there appears to be ambiguity regarding developers' ability to buy land parcels >50/100 acres in urban/rural areas without invoking difficult RR [Rehabilitation & Resettlement] provisions.

This appears contrary to general belief that larger land parcels will invoke RR provisions, making longer-term value creation difficult. If RR provisions are invoked, the Bill will be non-conforming to the township policies of the state government, which provides incentives for 100+ acre land developments.

Infrastructure / Industrial Development:
The land required for these projects will most likely become expensive. Most of these projects will require large tracts of land and government help in land acquisition, invoking both LA and RR provisions.

Developers + Politicains Controlled Sector in Blood Bath

The Indian Real Estate sector directly under the control of Developer & Politician Nexus is the Worst Performing in India and across Asia. The lack of determination by successive Governments to handover the sector to a STRONG regulator like RBI makes the Government Self Witness in CRIME.

Check out on how the Stocks have Halved over the last 6 months destroying Investors Wealth. Check out Today's Prices [Below] and this reflects the state of Indian Real estate. Do we have to say more ?

Mumbai Property Sales Fall 30% in June

As per the Maharashtra state stamps and registration department, in June'11, 4,272 property sale agreements were registered within the city of Mumbai (excluding Thane and Navi Mumbai), a fall of 30% YoY.

This is the lowest figure in the past six months. Between Jan'11-Jun'11, 29,684 property purchase agreements were registered, a fall of 20% YoY. While this does point towards a slowdown in the Mumbai property market, should this 20% fall be a big worry for investors and developers?

Overall, even though the fall in registration volumes till now may not signal a very worrying situation in the Mumbai property market for developers, the demand slowdown may have intensified further in the interim pressurising developers to cut prices when the festive season starts in Oct'11. For this to happen though, the authorities will have to release approvals for the new projects so that supply in the city increases.

You Start checking the official Real Estate Index of India which reflect the TRUE rates rather than the Lobby of Developers and Back Money Goons.

Challenges - Delayed Approvals or Funding ?

In a Conclave of Real Estate Developers, Banks, Architects, Government representatives the question of Challenges faced by the Indian Realty sector was discussed. So what do you think is the hurdle in executing the projects timely ? Developers opine that delayed approvals and cumbersome processes are the core issues facing the sector [and not to forget the corruption] - regulatory bodies have barely cleared any applications in the last 9-months in Mumbai. This is in line with the developer concerns in other cities.

Funding for Real Estate:Funding for under construction projects is relatively tough. However, loans against lease rentals are available at relatively lower rates. Overall while funding is tight, developers opine that high interest cost is the real challenge.

Premium housing is seeing a slowdown but mid-income/value housing volumes are robust. However, developers suggest that softening of prices is unlikely given the latent demand.

Mumbai - Development + Policy Clarity - But Prices & Interest Rates Spoil

After a 6-month lull during which very few building plans were approved, municipal authorities in Mumbai recently approved a number of building plans. None of these approved plans deviated from the development control regulations and did not seek any "concessions" that would allow developers to sell more than the applicable FSI on the plot.

New approvals hold promise of new supply. However, the liquidity environment for developers remains extremely tough, with many mid-sized developers resorting to expensive new debt to re-finance maturing ones. Combined with their unwillingness to cut prices to improve volumes, we feel many developers will delay launches, as the demand environment is weak (for which they have only themselves to blame!).

Mumbai Redevelopment FSI 3.0:The government also approved the proposal to increase FSI for redevelopment of cessed buildings from 2.5x to 3x. This increase can be availed by existing projects where construction has not gone beyond the plinth level. Also, the cap on flat size (earlier at 753sq ft) has been removed. However, the new rules require a side space of 6m against 1.5m earlier and require the developers to take permission from the high-rise committee of the BMC in case the height of the building is more than 9 times the breadth of the plot.