Real Estate
Developers plans to add nearly 25 mn sq ft mall space across top seven Indian cities
Buoyed by the growth, developers now plan to add nearly 25 million square feet of new mall space across the top seven cities over the next 4-5 years, said the report. It said that NCR and Hyderabad account for nearly 46 per cent of the total new upcoming supply, closely followed by Bengaluru at 19 per cent.
Repo rate hike as expected, may further impact affordable housing demand
Given that interest rates may breach the 9.5 per cent mark with the hike, the affordable housing segment may see some pressure on sales volumes. Anuj Puri, Chairman, ANAROCK Group said that the 25 bps rate hike is much along the expected lines. With repo rates now at 6.5 per cent, there could be some repercussions on housing uptake as home loan interest rates will head further north.
Realty sector seeks boost to affordable housing, tax and policy relief
Realtors said that with interest rates rising, a lot depends on the upcoming budget to support and sustain the housing demand. Manoj Gaur, President, CREDAI NCR and CMD Gaurs Group, said that real estate contributes 6-8 per cent to the GDP and employs more than 5 crore people. "It (real estate sector) has high hopes from the forthcoming budget. To begin with, there should be a separate deduction for principal repayment as currently clubbed under Section 80(C). It should be raised from the existing Rs 1,50,000 limit.
Two promoter exits - shakeout in housing finance sector?
The two exits -- small and the big ones -- were announced in quick succession. The Pune-based Poonawalla Fincorp Ltd announced the proposed sale of its stakes in the housing finance subsidiary Poonawalla Housing Finance Limited (formerly Magma Housing Finance Limited) to Perseus SG Pte. Ltd affiliated to TPG Global LLC for Rs 3,900 crore.
Financial assistance for homebuyers needed to enable smoother home-buying experience
"The rate hike of 35bps to 6.25 per cent by the Reserve Bank of India was on the expected lines. Although it will push the interest rates on home loans, and overall strong talent driven job markets, the coming quarter of 2022-23 remains the best time to invest in all segments of real estate. India's GDP growth forecast from 6.5 per cent to 6.9 per cent, shows a higher elasticity to global shocks and the continued buying power and investments made in the real estate sector, despite the possibility of more repo rate hikes in the coming months," he said.
Repeated rate hikes may impact housing Sector in the short term
The real estate sector had started seeing gradual recovery across key property markets, driven primarily by end-users, however, the repeated rate hikes may impact the interest rate-sensitive sector. Industry experts claimed that low interest rates have been one of the major factors in the resurgence of real estate demand in the last few years and hence the rate hike would mean a hurdle in affordability.
China's real estate crisis could be over
Key measures include allowing banks to extend maturing loans to developers, supporting property sales by reducing the size of down payments and cutting mortgage rates, boosting other funding channels such as bond issues, and ensuring the delivery of pre-sold homes to buyers.
Asia's richest woman loses more than half her fortune as China's property crisis escalates
The 41-year-old controls Country Garden Holdings, China's largest real estate developer by sales. Her stake was largely transferred from her father Yang Guoqiang, who founded the company in Foshan, Guangdong province, in 1992, CNN reported. Country Garden's stock has lost more than half its value this year, as the country's real estate sector has struggled with falling home prices, weakening buyer demand, and a debt default crisis that has engulfed some of its largest developers since last year, CNN reported.
Big Shanghai developer defaults, deals new blow to ailing Chinese real estate
Shanghai-based Shimao Group failed to pay the interest and principal on a $1 billion bond due Sunday, according to a company filing to the Hong Kong stock exchange, CNN reported. The bond had no grace period for the principal, according to its offering document. It is the first missed debt repayment on a dollar bond by Shimao, which has been grappling with mounting financial stress for months.
Real estate investor pool in Dubai shifting to a Russian-speaking set
The report further showed the share of real estate investments in Dubai by Russian and CIS individuals is 10 per cent to date this year. Most investors are looking for ready units and waterfront properties, Al Arabiya reported. Tamara Getigezheva, CEO & Partner, Mira Estate, said: "The real estate investor pool in Dubai is shifting to a Russian-speaking set.
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