REAL ESTATE CRISIS
Realty sector sees debt sanctions of Rs 9.63 lakh crore during 2018-23
Real estate sector witnessed debt sanctions of ₹9.63 lakh crore during 2018-23, with a potential of ₹14 lakh crore in the next three years, per JLL India and Propstack report.
Indian realty surge drives debt financing demand, to top Rs 14 lakh cr by 2026: Report
The real estate market in Mumbai is experiencing a resurgence driven by government policies, urbanization, and economic recovery, leading to increased demand for financing. The sector is expected to create debt financing opportunities worth over Rs 14 lakh crores by 2026, with lenders seeing opportunities for growth and innovation in funding structures.
How to invest in the real estate sector with a small amount of capital?
There are ways in which investors with even little capital can invest in the real estate sector which is booming. These methods offer rich dividends and individuals can manage their investment portfolio successfully.
Great opportunity for investors to build or reconstruct their portfolios: Sandeep Tandon
See, both manufacturing and defence in particular have been very expensive. If I have to say in any manufacturing space where is the biggest froth? Again, not in absolute terms but on relative basis, defence is the biggest froth which got built and is getting built for last many months now.
Icra revises domestic steel demand growth rate to 10 pc for FY25
ICRA revises FY2025 steel demand growth to 9-10% due to strong government spending and sector demand, leading to increased earnings and India remaining a net steel importer in the current fiscal.
IMF revises China's GDP to 5% this year; growth may decelerate to 3.3 per cent by 2029, says Gita Gopinath
The 5 per cent growth revision by the International Monetary Fund (IMF) is in line with the target set by the Chinese government for the world's second-largest economy which is grappling with a slowdown triggered by the crippling property sector crisis and industrial overcapacity.
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Shanghai lifts home-buying curbs to boost property sector
Shanghai eases property buying rules amidst a real estate crisis, reducing residency requirement to 3 years and minimum down payment to 20% for commercial housing mortgages.
'Made in China' housing crisis solution may not be enough
China grapples with a colossal housing crisis, with millions of unoccupied apartments and unfinished developments, threatening its economy. Beijing's plan involves massive state intervention, buying unsold properties and converting them into social housing. However, doubts still persist about its adequacy and efficacy, raising concerns about the broader economic impact on China
China allocates billions of dollars to bailout its crisis-hit property sector
China has taken decisive measures to tackle the crisis in its property sector, which has been a crucial driver of its economic growth. The People's Bank of China has announced a 300-billion-yuan relending facility to support government-subsidized housing projects. Local state-owned enterprises are encouraged to purchase completed commercial homes to provide affordable housing. Commercial banks have issued significant loans for real estate development and individual housing.
China lays out 'historic' plans to prop up its realty market
Investors hoped the measures marked the beginning of more decisive government intervention to compensate for waning demand for new and old apartments, to slow down falling prices and to reduce a growing stock of unsold homes. Since the property market began its steep downturn in 2021, a string of developers have defaulted, leaving scores of idle construction sites behind, and sapping confidence in what had been the preferred savings instrument for the Chinese population.
China unveils steps to stabilise crisis-hit property sector
China announced significant measures to stabilize the struggling property sector. The measures included allowing local governments to purchase apartments, easing mortgage rules, and committing to finishing incomplete homes. These efforts aim to address declining demand, falling prices, and a surplus of unsold properties, with the hope of reviving a sector that once contributed significantly to the economy.
China expected to announce new measures to fix property crisis, spur growth
China's housing prices dropped in the first four months of the year, while factory output increased by almost 7%. This has lead to officials planning new measures to boost the struggling property industry. The National Bureau of Statistics noted insufficient domestic demand. The State Council announced a news conference to address the property market challenges, including defaults by developers.
ASK Property Fund exits from Naiknavare’s Pune project with 21% IRR, 2x multiple
ASK Property Fund exits Rs 156 crore investment from Pune's Naiknavare Developers' Avon Vista project with 21% IRR and plans for more investments in Pune and Mumbai.
India's Kajaria Ceramics posts surprise Q4 profit drop on higher costs
India's Kajaria Ceramics reported a surprise drop in fourth-quarter profit on Tuesday, hurt by increased costs and weak demand.
Brick by brick, Pirojsha changed the realty game at Godrej
Pirojsha Godrej's strategic leadership at Godrej Properties during the global financial crisis led to innovative approaches like joint developments and a capital-lite model. His focus on efficiency and immediate project launches propels the company's growth.
Careful with long-term financial cycles
A long-term financial cycle has coincided with, and bolstered, the current investment cycle. That's good and bad news for India's growing economy. The outcome is a higher investment-to-GDP ratio. But there is need for caution. If the financial cycle runs ahead of the business cycle unchecked, eventual stresses could be severe, worsening the inevitable downturn.
'Golden visa' programs, once a boon, lose their luster
In an effort to close huge budget deficits, six eurozone nations granted the visas in 2012, during the height of Europe's fiscal crisis. Spain, Ireland, Portugal, and Greece were among the nations in need of international bailouts. These nations were in particular short of cash to pay back creditors and saw an opportunity to attract investors while reviving their stagnant real estate markets.
How Vietnam's real estate tycoon got caught in a 'Blazing Furnace' in country's biggest $12.5-billion corruption scam
Truong My Lan, chairwoman of Van Thinh Phat Holdings Group, has been sentenced to death for her role in a $12.5 billion financial fraud, the largest in Vietnam's history. The verdict is part of Vietnam's crackdown on corruption led by General Secretary Nguyen Phu Trong, with 84 defendants receiving sentences ranging from probation to life imprisonment. Lan's case highlights the pervasive nature of corruption in Vietnam's state and economy, with the "Blazing Furnace" campaign targeting senior officials and business executives.
Spain to scupper 'golden visas' for foreign real estate investors
Spain and Portugal are revising visa schemes for real estate investors, focusing on housing rights. Neighbouring Portugal has recently revamped its own "golden visa" scheme and excluded real estate investment to tackle a housing crisis.
Here's how Bengaluru's water crisis has affected real estate sales as per Knight Frank report
Housing sales in Bengaluru have slightly decreased by 2% to 13,133 units compared to 13,390 units last year, mainly due to reduced sales in the affordable housing category. The office space demand in the IT city remained steady at 3.5 million square feet, according to a report by Knight Frank. Sales in the less than ₹50 lakh housing segment dropped by almost 65% to 70%, while sales in the ₹50 lakh-₹1 crore segment dipped by 7%. However, sales of houses in the more than ₹1 crore segment increased by almost 50%.
Make for India momentum clearly building, throwing up new investment opportunities: Blackstone COO Jonathan Gray
Fund plans to annually deploy at least $2 billion for next 5 years. But Gray feels taking companies private in India is a big challenge, as is dispute resolution mechanism and M&A completion timelines.
Greece lifts price of popular Golden Visa to fight housing crisis
The finance ministry announced that from Sunday, the threshold would climb to 800,000 euros in attractive regions, such as Attica, around Athens, Thessaloniki, Mykonos, Santorini and the islands with a population of over 3,100.
As valuations run ahead, time to be selective? 4 real estate stocks with upside potential of up to 20%
Like business and economic cycles, stock markets also have cycles where they will take a liking to a particular sector in such a manner that valuations will go through the roof. Then comes a phase, where the same sector is thrown down the dumps. Real estate sector is one sector where in 2008, valuations were at their peak. then come and fall and by the start of 2020 valuations were in the dumps. Thanks to many factors, including sudden spurt in demand in covid and post, sector being cleaned both due to pressure from the banks and the impact of new laws like RERA, there was an upswing in the industry. This happened at a time when liquidity was high and we have seen a resurgence of select real estate stocks. If one looks at the announcements coming from the industry about projects getting sold, it indicates that demand is high. Whether the stock prices are already reflecting the rosy picture?
Residential real estate could see another peak in 2024
Residential real estate in India is expected to reach a peak in 2024, despite the General Elections, due to existing regulatory reforms and strong GDP growth predictions. Previous election years in 2014 and 2019 saw growth in housing sales. Developers are venturing into new territories, with positive market trends indicating a potential peak in 2024.
Noida housing project pulled back from insolvency now offers possession to buyers
RG Luxury Homes project in Gautam Buddh Nagar district, Greater Noida West, has received the occupancy certificate after facing insolvency and a fund crisis. The project, delayed since 2010, is now offering possession to buyers of 800 flats. The project serves as a beacon of hope and an example for other stuck projects in Karnal, Ghaziabad, and Noida.
Canada's extension of ban on foreign real estate buyers labelled political, not practical
Canada's ban on foreigners in the property market won't solve housing shortages. The extension is seen as a political move by Prime Minister Justin Trudeau to address housing affordability concerns before the election. Conservative Party leader Pierre Poilievre blames the government for the crisis.
Tailwinds continue to favour them; 5 Southern and Western India focussed real-estate stocks with upside potential of up to 30%
This week, two real estate companies announced that they have sold out their real estate projects. What was worth noting, the overall size of the project, time in which they were sold and the price point at which they were lapped up. Both, real estate prices and stocks of real estate have seen a revival for last three years, if above events are anything to go by than probably, it appears that the demand continues to be strong in some pockets. Given the fact that the operating matrix of the real estate industry is such that debt element will present, it would be worthwhile to stay with large players who have either strong parent group or have track record where they have survived the slowdown without piling on much debt on the balance sheet. Also stay focussed on pockets where income profile of consumer is better.
Budget 2024 ammo for India to win real estate battle over injured China
Interim budget: India's budget plays a big role in strengthening the property market and supporting the Bharat Moment. The budget should focus on affordable housing and streamline clearance processes to promote growth in the residential real estate sector. It is crucial to grant industry status to the real estate sector and facilitate easier credit access. Increasing the tax rebate on home loan interest rates from Rs 2 lakh to Rs 5 lakh and providing incentives for developers and homebuyers will stimulate the affordable housing market. These measures will contribute to achieving 'housing for all' and invigorate the housing sector.
Over 230 home developers filed for bankruptcy in China last year: Report
An estimated 233 home developers in China filed for bankruptcy last year amid the economic crisis, according to the China Real Estate Association. The highest number of applications came from Zhejiang province, followed by Hunan and Guangdong provinces. The number of bankruptcies in 2023 was the lowest since 2020, but the impact on the housing market is expected to be limited.
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