Latest Property News on 'Real Estate Developers'

Sobha Developers Reports Whopping 170 per cent Hike in Q1 Net Profit

Real estate firm Sobha Developers has reported a whopping 170 per cent jump in net profit for the first quarter of the current fiscal at Rs 34.3 crore, on the back of a 78 per cent increase in total income.

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Property Market in Developing Economies Outperform Europe, UK and US

Property markets in the more dynamic economies of South America, Asia and Eastern Europe are outperforming those in the United Kingdom and Eurozone, according to the RICS Global Commercial Property Survey for the second quarter. The Survey suggests that real estate performance in the United States has shown a marked improvement while in Latin America the commercial property market continues its bull run.

Respondents in Peru and Brazil were most upbeat, topping all in the Americas for both rental and capital value expectations. Survey respondents in Canada currently view the market as stable. “The real estate world continues to be split, broadly speaking, between the emerging and developed economies,” said RICS chief economist Simon Rubinsohn. “Strong growth in many of the former, including the likes of Brazil, Hong Kong and India, is continuing to boost demand for new space from occupiers as well as encouraging investment activity. Meanwhile in many of the latter, fiscal retrenchment allied to bank deleveraging continues to place significant obstacles in the way of a meaningful recovery in the commercial property market.” Read More »

DLF Records 3.78% Rise in Consolidated Net Profit

Aided by higher sales realisation, India’s largest real estate company DLF Ltd on Wednesday recorded a 3.78 per cent increase in its consolidated net profit for first quarter of the current fiscal at Rs 411 crore. The net profit was Rs 396 crore in the year ago period. According to a DLF statement, the sales and other receipts were up nearly 23 per cent Rs 2,028.53 crore.

The DLF board has also approved issue of equity shares by its wholly owned subsidiary DLF Brands to a promoter group company, subject to shareholders’ approval. Following the approval, DBL will cease to be a subsidiary of DLF. “The move is in line with the strategic objective of DLF to exit the non-core business,” it said, but did not give further details of the transaction. Read More »

RBI to Consider Prudential Provisioning in November

Subir Gokarn, deputy governor of the Reserve Bank of India, spoke with DNA on the state of monetary affairs. He said he doesn’t see a realty bubble now, but the central bank will consider prudential provisioning in November - though it does not rule out an early clampdown if the situation rises. We are back to, if not above, the 2007 peak in real estate prices. What’s the RBI’s position on realty prices? We haven’t seen you beginning to stamp down using provisioning.

Just two aspects on that — one is that from a monetary perspective, the only way to deal with real estate prices is to reign in liquidity, to raise interest rates, to make borrowings more expensive - in short, make money less attractive. We have started doing that. Now we have broken up the cycle — into half-yearly ones where we take monetary and policy-related actions, and the quarterly cycles where we take only monetary actions. So, the provisioning issue would typically be done in either the April or the October-November policy. Read More »

Mid-Cap Real Estate Firms Expected to Post Mixed Trend in June quarter

Mid-cap real estate firms are expected to post a mixed trend as spiraling prices hit affordability and new launches tapered in the April-June quarter. A Reuters’ poll of brokerages estimates Anant Raj Industries to post a 47.79 percent fall in net profit, Housing Development and Infrastructure a 49.26 percent rise and IndiaBulls Real Estate a 114.44 percent rise.

“There would be a year-on-year growth, because of the low base (of previous year). Secondly, margins will go down as product mix has changed, with lot of sales happening in mid-income sector, where margins are lower…,” Param Desai, analyst at Angel Broking, told Reuters. Read More »

DLF, Unitech, Emaar & Ansal Gearing up to Launch Plush Homes

Yet another piece of the real estate market appears to be getting back in shape. After realtors focused on the affordable housing space, where demand remained reasonable when market prices crashed two years ago, they are now launching luxury homes as the segment is witnessing early signals of an upswing in demand. Sensing this turnaround, a host of property developers including DLF, Unitech, Emaar MGF and Ansal API are gearing up to launch plush housing projects, where a single unit costs upwards of Rs 2 crore, over the next six months.

“Now that the job market is looking up, consumers are once again regaining the confidence to put money in swank projects,” said Shravan Gupta, executive vice-chairman and managing director at Emaar MGF. The Delhi-based property developer plans to launch around 2,000 upscale units over the next six months across cities such as Gurgaon, Hyderabad, Punjab, Bangalore and Kerala. Read More »

Real Estate Regulation Act can Increase Housing Prices by Rs 300 per sq ft- CREDAI

The Confederation of Real Estate Developers’ Associations of India has expressed reservations about the proposed Model Real Estate (Regulation of Development) Act in its present form, saying it could lead to an escalation of prices of housing stock in the country by Rs 300 per sq ft. The bill would be placed before Parliament soon.

Terming it a draconian bill aimed at strangulating developers alone, CREDAI vice-president Prakash Challa told reporters on Tuesday, “We are not opposed to having a legislation to regulate the real estate sector. But the proposed legislation, in its present form, would be detrimental for the industry. If the cost of projects go up, the sufferers will be the end customers. Real estate is already an overly regulated sector. The best way to make housing affordable to all is to liberalise the sector by introducing a single window clearance system for projects, clubbed with a rationalized tax system. The very concept of affordable housing will be a failure if cost escalates by roughly Rs 300 per sq ft on account of introduction of the regulatory bill.” Read More »

Mahindra and Mahindra’s Real Estate Arm Clocks 39 Pc Rise in Net Profit

Mahindra and Mahindra’s real estate development arm, Mahindra Lifespaces, clocked a 39 per cent rise in net profits to Rs 14.48-crore in Q1 of FY 11, driven largely by good performance in the residential segment. The company’s net profit in the corresponding period last year was Rs 10.42-crore. The operating income of the company also registered a 44 per cent increase, rising to Rs 67.93-crore as compared to Rs 47.26-crore the year before.

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Credai Plans Action against Proposed Goods and Services Tax

Real estate developers apex body Confederation of Real Estate Developers’ Association of India (Credai) plans to file a case against the proposed Goods and Services Tax (GST).

“Currently we are collecting it from our customers which we don’t want to. Soon we will file a case at the national level,’’ the Credai National Vice-President, Mr Prakash Challa, told reporters on Tuesday.

He said the service tax would only escalate cost (to customers). Developers collect money either by charging 4.12 per cent of the construction cost or by collecting 10.3 per cent from the overall saleable value. Read More »

Upswing seen in Demand of Luxury Homes Signals

Yet another piece of the real estate market appears to be getting back in shape. After realtors focused on the affordable housing space, where demand remained reasonable when market prices crashed two years ago, they are now launching luxury homes as the segment is witnessing early signals of an upswing in demand. Sensing this turnaround, a host of property developers including DLF, Unitech, Emaar MGF and Ansal API are gearing up to launch plush housing projects, where a single unit costs upwards of 2 crore, over the next six months.

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