In 81 cities and ten metropolitan cities, real estate sales have picked up in third quarter. Private equity people who have exited in the quarter had great IRR. This paper reported the exit of private equity which funds 90% of real estate development in India has data more accurate and well validated.
The sale in Mumbai in last quarter witnessed a spurt and rise since many premium and mid segment housing projects like of Wadhwas, Oberoi and other bif launches seen 300 to 400 flats been booked within one day. In Pune, stamp Duty and registration date shows that the sales have gone up by 51% on average of last quarter of the financial year 2015-16. In Delhi and NCR, projects at Amrapali, NOIDA, and some sectors in Gurgaon have seen good demand from overseas and local market. Ahmedabad, Bangalore, Bhuvneshwar, Lucknow, Jamnagar, Rajkot, Ludhiana, Chandigarh and Nashik have seen double the sale as compared to last year. The data collected by Accommodation Times Education and Research Foundation for 81 cities through RTI shows a great market as not only agreements are registered but total 3202 projects were launched in last quarter ended in Dec 2014. Registration authorities in Maharashtra show on their website that 234818 documents already registered till Dec 2014 in Maharashtra alone.
Talking to this paper, Niranjan Hiranandani, MD Hiranandani Group said ” We are bullish in 2015 and we are launching 5 mega projects other than our existing projects”. Private equity firms are flooded with the proposal from builders since huge land bank waiting to be developed across the country.
Gulf based NRIs are searching investment destinations so do London and Hong Kong hedge funds wants investment proposals. Almost all banks are having property service divisions which has huge staff strength to cater the need of housing. Sq Feet, a Borivali based broker headed by Vinod Thakkar have opened eight branches in MMR with almost 100 people working to cater the retail demand. Sq Yrds, a Foriegn Chain of brokers and ReMax, US based retail chain of real estate brokers are most active 24 hrs busy showing and giving inspection to probable clients.
The sales are high as compared to last year but rates still stagnated and in correction phase. Good bargains and good prices are available in real estate market. Its buyers market.