tough economic times hit indian property firms
Last Updated : GMT 05:17:37
Emiratesvoice, emirates voice
Emiratesvoice, emirates voice
Last Updated : GMT 05:17:37
Emiratesvoice, emirates voice

Tough economic times hit Indian property firms

Emiratesvoice, emirates voice

Emiratesvoice, emirates voice Tough economic times hit Indian property firms

Mumbai - AFP

India\'s real estate sector, which soared as the country\'s economy took off and higher incomes led to increased demand, is facing turbulent times as interest rates push up the cost of home loans.A succession of rate hikes has prompted prospective buyers to delay purchases, with the situation having a knock-on effect on the country\'s top property firms.Stocks of leading firms like DLF, Unitech and DB Realty hit year-lows this month, on weak earnings and amid growing concerns over the global economic recovery after the US credit downgrade and ongoing eurozone debt crisis. The realty index on the Bombay Stock Exchange has halved in value from a year ago and many firms have seen their share price plunge after details emerged of an alleged loans-for-bribes scandal last October.Analysts say that the immediate outlook does not look rosy for property firms, with another rate hike expected before the end of the year, spiralling fuel, labour and raw material costs, and a slowdown in economic activity.\"(Home) sales are not moving at the expected pace. On the other hand, debt and costs burdens have increased for some developers,\" said Neeraj Bansal, director at global consultants KPMG in India.\"The outlook for the sector looks tight,\" he told AFP. On Friday, Mumbai-based DB Realty gave the latest indication of the health of the sector, reporting a 33 percent fall in profit year-on-year to 411 million rupees ($9.03 million) for the three months to the end of June.\"Rising interest rates and input costs coupled with delayed approvals have resulted in a slowdown in the sector,\" group director N. Shridhar said. DB Realty has seen its share price nosedive from a high of 474.9 rupees in September last year to a low of 66.00 in May after boss Shahid Balwa was arrested in connection with a high-level corruption probe. It is now trading just above its lows at 68 rupees. New-Delhi-based DLF has shown a fall in quarterly net profit for four straight quarters, hit by a sharp rise in interest payments on loans and increased expenditure which outweighed gains from property sales.The company has called the current environment \"difficult\", reflecting wider concerns among business leaders that government and central bank efforts to rein in spiralling inflation are hitting investment and growth.In Mumbai, India\'s most expensive market, residential sales dropped to a 30-month low in the first quarter of the current financial year to June, according to Liases Foras Real Estate Rating and Research.Experts predict that the cost of prime real estate could match prices in London, but with demand outstripping supply in the residential sector that makes up 80 percent of the Indian property market, something will have to give. \"Developers will have to start reducing unrealistically high prices to boost sales,\" said Pramod Gubbi, of brokerage Ambit Capital.The Mumbai Mirror newspaper said on Saturday that not a single sale has been made at one luxury apartment block in south Mumbai, despite the 3.5-billion-rupee development being available to buyers for five years.Developer Ravi Vaswamni was quoted as saying: \"There is often trouble in the sale of high-end properties... People are making an investment of a lifetime to buy a house here and it can take some time.\"DLF says it is repositioning to focus on so-called \"plotted developments\" -- parcels of land in gated communities that can be sold without being fully developed -- instead of group housing projects, to improve growth.With less construction activity for the developer, sales of plotted developments can be completed quickly, improving cash flows. DLF said it had 52 million square feet (4.83 million square metres) of land under development and sold 1.9 million square feet in the April-June period. It plans to sell 12 million square feet of residential land in the current financial year\"DLF may book these levels but we expect flat growth in volumes in fiscal year 2013,\" said Sharan Lillaney, of Angel Broking.

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

tough economic times hit indian property firms tough economic times hit indian property firms

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

tough economic times hit indian property firms tough economic times hit indian property firms

 



GMT 09:54 2018 Wednesday ,24 January

'Friendly and kind' N. Korean skaters

GMT 09:36 2017 Thursday ,07 December

Heidy Karam’s contract to present talk show close

GMT 10:50 2012 Friday ,20 January

Dusty weather expected in UAE on Friday

GMT 09:35 2018 Saturday ,13 January

New Zealand bat first in third ODI against Pakistan

GMT 10:48 2017 Saturday ,23 December

Meryl Streep's brand under threat

GMT 06:53 2017 Thursday ,11 May

17th Doha Forum To Begin Sunday

GMT 10:30 2017 Thursday ,23 November

Reports underline proliferation of weapons in Arab world

GMT 07:46 2017 Monday ,30 October

Catch it early, treat it early and move on

GMT 08:05 2015 Tuesday ,17 February

Conan O'Brien is first late night host to film in Cuba

GMT 16:17 2018 Thursday ,30 August

Five Saudi women pilots granted GACA licences
 
 Emirates Voice Facebook,emirates voice facebook  Emirates Voice Twitter,emirates voice twitter Emirates Voice Rss,emirates voice rss  Emirates Voice Youtube,emirates voice youtube  Emirates Voice Youtube,emirates voice youtube

Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2021 ©

Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2021 ©

emiratesvoieen emiratesvoiceen emiratesvoiceen emiratesvoiceen
emiratesvoice emiratesvoice emiratesvoice
emiratesvoice
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
emiratesvoice, Emiratesvoice, Emiratesvoice