Rate cuts, low prices spur demand in realty market
The Financial Express, C&M, February 05, 2009, Page VIII
Mona Mehta
MumbaiSeveral builders in the metros are witnessing a revival in demand since January 2009. Demand has been spurred by the 30-40% reduction in real estate prices, along with the recent cut in interest rates by banks. Builders, incidentally, had to resort to price cuts in the face of a slowdown in the real estate sector; the liquidity crunch had taken a heavy toll demand for houses in metros.
Hemant Shah, chairman, Akruti City, told FE, “Since January 2009, we have sold 250 flats at Akruti Greenwoods in Thane and Akruti Galleria in Mira Road. By March-end 2009, we hope to sell 1,000 flats.” He informed that 1 BHK and 2 BHK apartments at Akruti Greenwoods in Thane are available at Rs 20 lakh and Rs 25 lakh respectively, post the price cut.
The Lodha Group has also seen a rise in demand. 50% of the apartments at its CASA Royale project in Thane have already been booked; 1 BHK flats at the site are available Rs 19.98 lakh onwards, and 2 BHK apartments have been priced Rs 27.63 lakh onwards.
Abhisheck Lodha, director, Lodha Group, said, “We expected a successful launch of our project for the mid-segment and are glad Royale was accepted so well, with over 1,200 visits in a span of just 7 days.”
Competitor Ajmera Group of Companies has sold 10-15 apartments each in its Ajmera Infinity project in Bangalore, Hasti Park in Wadala, Mumbai and Yogidham in Kalyan.
Dhaval Ajmera, managing director, Ajmera Group of Companies, said, “By March-end, we hope to sell 50 apartments in each of the projects in the metros. is despite the fact that we have not cut prices of either 1 BHK or 2 BHK apartments.”
Mayfair Housing Private Ltd, on the other hand, has sold about 27 apartments in its affordable housing project in Virar; ot has also sold 9-10 premium apartments at its high-end residential projects in Andheri, Khar and Bandra, according to Nayan Shah, CEO, Mayfair Housing.
“We hope to sell another 50 affordable apartments in Virar, and 20 apartments in Andheri, Khar and Bandra, by March-end 2009,” said Shah. He added that the recent softening of home loan rates will boost demand further.
The State Bank of India (SBI) recently cut its home loan rates to 8%. LIC Housing Finance Ltd also announced a special rate of interest for customers opting for floating rate loans; the new floating rate of interest for loans up to Rs 30 lakh will be 8.75%.
Anuj Puri, chairman and country head, Jones Lang LaSalle Meghraj (JLLM), said, “There has been a marginal improvement of around 5-6% in demand for residential real estate, on the heels of the recent softening in home loan interest rates.” He said that there is “reason to believe that by March 2009, there will be a further 3-4% rise in demand.”
Ravi Ramu, director of Bangalore-based Puravankara Projects said, “January 2009 has not been a good month for us as we have witnessed no improvement in apartment sales compared to October, November and December 2008.”
The rise in demand, however, has not touched all builders. Ravi Ramu, director of Bangalore-based Puravankara Projects, said, “January has not been a good month for us. We have witnessed no improvement in apartment sales compared to October, November and December 2008.”
The Financial Express, C&M, February 05, 2009, Page VIII
Mona Mehta
MumbaiSeveral builders in the metros are witnessing a revival in demand since January 2009. Demand has been spurred by the 30-40% reduction in real estate prices, along with the recent cut in interest rates by banks. Builders, incidentally, had to resort to price cuts in the face of a slowdown in the real estate sector; the liquidity crunch had taken a heavy toll demand for houses in metros.
Hemant Shah, chairman, Akruti City, told FE, “Since January 2009, we have sold 250 flats at Akruti Greenwoods in Thane and Akruti Galleria in Mira Road. By March-end 2009, we hope to sell 1,000 flats.” He informed that 1 BHK and 2 BHK apartments at Akruti Greenwoods in Thane are available at Rs 20 lakh and Rs 25 lakh respectively, post the price cut.
The Lodha Group has also seen a rise in demand. 50% of the apartments at its CASA Royale project in Thane have already been booked; 1 BHK flats at the site are available Rs 19.98 lakh onwards, and 2 BHK apartments have been priced Rs 27.63 lakh onwards.
Abhisheck Lodha, director, Lodha Group, said, “We expected a successful launch of our project for the mid-segment and are glad Royale was accepted so well, with over 1,200 visits in a span of just 7 days.”
Competitor Ajmera Group of Companies has sold 10-15 apartments each in its Ajmera Infinity project in Bangalore, Hasti Park in Wadala, Mumbai and Yogidham in Kalyan.
Dhaval Ajmera, managing director, Ajmera Group of Companies, said, “By March-end, we hope to sell 50 apartments in each of the projects in the metros. is despite the fact that we have not cut prices of either 1 BHK or 2 BHK apartments.”
Mayfair Housing Private Ltd, on the other hand, has sold about 27 apartments in its affordable housing project in Virar; ot has also sold 9-10 premium apartments at its high-end residential projects in Andheri, Khar and Bandra, according to Nayan Shah, CEO, Mayfair Housing.
“We hope to sell another 50 affordable apartments in Virar, and 20 apartments in Andheri, Khar and Bandra, by March-end 2009,” said Shah. He added that the recent softening of home loan rates will boost demand further.
The State Bank of India (SBI) recently cut its home loan rates to 8%. LIC Housing Finance Ltd also announced a special rate of interest for customers opting for floating rate loans; the new floating rate of interest for loans up to Rs 30 lakh will be 8.75%.
Anuj Puri, chairman and country head, Jones Lang LaSalle Meghraj (JLLM), said, “There has been a marginal improvement of around 5-6% in demand for residential real estate, on the heels of the recent softening in home loan interest rates.” He said that there is “reason to believe that by March 2009, there will be a further 3-4% rise in demand.”
Ravi Ramu, director of Bangalore-based Puravankara Projects said, “January 2009 has not been a good month for us as we have witnessed no improvement in apartment sales compared to October, November and December 2008.”
The rise in demand, however, has not touched all builders. Ravi Ramu, director of Bangalore-based Puravankara Projects, said, “January has not been a good month for us. We have witnessed no improvement in apartment sales compared to October, November and December 2008.”
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