More than 7 crore sq.ft. will come soon in res­i­den­tial seg­ment

Accommodation Times - - News - By Staff Re­porter

Lisas Foras, a Mumbai based re­search firm un­der the head­ship of Pankaj Kapoor has pre­dicted fur­ther fall of 15% in res­i­den­tial rates. He fur­ther said that more than 7 crore sq.ft. of res­i­den­tial space will hit the mar­ket soon in the Mumbai re­gion alone. He was speak­ing at a press meet called by Press Club Mumbai on 19th March 2009. Now that after 5 years in 2014, th­ese projects should be ready and hit­ting the mar­ket. The rates are likely to fall if such huge sup­ply go­ing to come in the mar­ket. "What Ails Real Es­tate" was the topic for dis­cus­sion while the pan­el­list like Pari­mal Shroff, Vinod Sam­pat, Vi­mal Pu­namiya and Suresh Menon were in­vited to speak on the sub­ject. Ac­cord­ing to Pari­mal Shroff, the last re­ces­sion lasted for nine years ( 1995- 2004), the present sce­nario must be looked at se­ri­ously. Ad­vo­cate Vinod Sam­pat cited some of the stats of reg­is­tra­tion fig­ures which say that there is a fall recorded by the depart­ment for the loss of rev­enue of stamps upto 9% as com­pared with last year. Pranav Vakil of Knight Frank as­serted that short sup­ply will be rea­son for fu­ture price rise. He said that faulty val­u­a­tion of land bank is the main rea­son for fall of share prices of realty com­pa­nies on the stack ex­changes. Vi­mal Pu­namiya said that val­u­a­tion of prop­erty must be seen in its truly value rather than its no­tional value. He has cited many cases of In­come Tax and Stamp Duty. Pankaj Kapoor's pre­sen­ta­tion gave the breakup of projects which are com­ing in ma­jor cit- ies and a huge pile up of un­der con­struc­tion projects which are in pipe­line, will soon hit the res­i­den­tial seg­ment in the real es­tate mar­ket. Though there were no an­swers to some of the ques­tion asked by me­dia like re­duc­ing the profit mar­gins by builders and cheap home loans, cost­ing of real es­tate de­vel­op­ment re­vealed that land cost in the project touches almost 85% in south Mumbai. Su­nil Mantri, pres­i­dent elect, MCHI, said that there is a need for builders to ad­dress two is­sues. One is whether builders will com­plete the project and sec­ond the min­i­mum price dis­cov­ery. He em­pha­sised on schemes of buy back at cer­tain price to re­tain the cus­tomers' con­fi­dence. Vi­jay Wad­hwa of Wad­hawa group said be­sides the real es­tate in re­ces­sion­ary trend, they are the first to cor­rect the prices at a lower level for some of their projects. He said there will be loss of jobs be­cause of such trend in the realty sec­tor. Now after six years of the press con­fer­ence, the real es­tate mar­ket hap­pens to be the same as in 2009 and all the state­ments made looks very rel­e­vant to to­day’s sce­nario ex­cept we ex­pect the es­ti­ma­tion of Pankaj Kapoor that we are soon go­ing to have 7 crore sq ft fin­ished stock in MMR. Pune is the worst case where almost 50000 units ready ly­ing va­cant and there are no tak­ers.

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