Real estate market looking positive: Sobha Developers
The Hindu Business Line, February 22, 2009, Page 2
Signs of improvement in sales seen.
Anjana Chandramouly, Bangalore, Feb 21
With interest rates falling and market sentiments getting better, Sobha Developers claims the real estate market is looking positive with its sales now showing signs of improvement.
“Our December-January sales have been far better than October and November,” said Mr J.C. Sharma, Managing Director, Sobha Developers.
According to him, out of 10 million sq ft of ongoing projects across the country, only less than 1 per cent is unsold property.
“With interest rates falling and market sentiments improving, we have been able to increase our market share,” he added. What more, the company plans to “launch a couple of residential projects in Bangalore in the next two quarters. That shows our optimism,” said Mr Sharma. Though refusing to give further details, he said the launch would be “much before 2009-end”.
Looking for partners
There have been a few lessons learnt in these bad times, he said. According to him, the company has stopped buying land, “instead we sold some of our lands”, he added. The company’s land-bank now stands at about 3,000 acres. “We are looking for partners for some of our lands, while for some we are looking at outright sales,” said Mr Sharma.
“We have also improved on efficiency at the project and fixed cost levels, and have started looking at volume benefits. Our operating margins this year would be 30 per cent,” he added.
Mr Sharma said that the company’s cash flows have improved now, but declined to divulge further details. The company is in talks with institutions to re-align its Rs 1,800-crore debt. “In view of our revised cash flow position. If that happens, we hope this issue will not have any adverse impact on our operations,” said Mr Sharma.
Showcasing projects
To cash in on changing consumer sentiments, the company is organising ‘Sobha Home Mela’ on February 21 and 22 showcasing about 18 exclusive company projects. “About 1,500 apartments are on display,” said Mr Sharma.
The projects include villas, row houses, luxury apartments, semi-luxury apartments and plots. Company officials at the mela said first-time customers can book a flat by paying Rs 50,000 through a credit card.
The Hindu Business Line, February 22, 2009, Page 2
Signs of improvement in sales seen.
Anjana Chandramouly, Bangalore, Feb 21
With interest rates falling and market sentiments getting better, Sobha Developers claims the real estate market is looking positive with its sales now showing signs of improvement.
“Our December-January sales have been far better than October and November,” said Mr J.C. Sharma, Managing Director, Sobha Developers.
According to him, out of 10 million sq ft of ongoing projects across the country, only less than 1 per cent is unsold property.
“With interest rates falling and market sentiments improving, we have been able to increase our market share,” he added. What more, the company plans to “launch a couple of residential projects in Bangalore in the next two quarters. That shows our optimism,” said Mr Sharma. Though refusing to give further details, he said the launch would be “much before 2009-end”.
Looking for partners
There have been a few lessons learnt in these bad times, he said. According to him, the company has stopped buying land, “instead we sold some of our lands”, he added. The company’s land-bank now stands at about 3,000 acres. “We are looking for partners for some of our lands, while for some we are looking at outright sales,” said Mr Sharma.
“We have also improved on efficiency at the project and fixed cost levels, and have started looking at volume benefits. Our operating margins this year would be 30 per cent,” he added.
Mr Sharma said that the company’s cash flows have improved now, but declined to divulge further details. The company is in talks with institutions to re-align its Rs 1,800-crore debt. “In view of our revised cash flow position. If that happens, we hope this issue will not have any adverse impact on our operations,” said Mr Sharma.
Showcasing projects
To cash in on changing consumer sentiments, the company is organising ‘Sobha Home Mela’ on February 21 and 22 showcasing about 18 exclusive company projects. “About 1,500 apartments are on display,” said Mr Sharma.
The projects include villas, row houses, luxury apartments, semi-luxury apartments and plots. Company officials at the mela said first-time customers can book a flat by paying Rs 50,000 through a credit card.
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2 comments:
we hope it is true
Transparency in India's Real Estate.
Today i saw a SMS to contact a dealer for booking a flat in Unitech's project. On contacting him on his mobile, i was told that it is a soft launch and they are just collecting cheques without any information on specifications of this residential project on Sohna Road.
I have been attending various conclaves and seminar's recently, where every one is talking about consolidation, introspection, regulatory body and grievance cell.
We have been told that Govt. is working on this , which we have been listening from last many years. I believe we are waiting for SATYAM like scam in real estate industry before any concrete takes place.
Labels: real estate draft by r. aggarwal
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