Category: Realty
Had an opportunity over the last few days to check out a few realty projects in Mumbai
One project I checked out was L&T Realty at Parel.This project was launched in Oct 2012 and was sold out in a couple of days.The launch price was 16000 Rs psf and is now currently quoting at 19000 Rs psf.Of course, this does not include many other charges such as floor rise (Rs 100 psf per floor) etc.They have one 2BHK available on the 37th floor which has a ticket price of 3.8 Crores !!
The area around this project used to be where the textile mill workers used to stay.Wonder how they feel about the gentrification of their neighborhood.Am reminded of this song from Shanghai which aptly captures what is going on
Now funny thing is possession of these hugely expensive flats is in 2017 !!When I asked the sales person what price does he expect the prices to be on possession, he replied that he expected the prices to double !So will a 2BHK of around 700 sq feet carpet in Central Mumbai cost 8 Crores in 2017?The mind boggles.
The next project which is creating waves in the Mumbai realty market is Lodha at Worli.The presentation is enclosed below:
[gview file=”https://alphaideas.in/wp-content/uploads/2013/01/Codename-Lodha-Blue-Moon.pdf”]
Now, the interesting part of this project is that buyers will not be able to do the site visit during the pre launch phase.There are no layout plans nor any site plans shared with the buyers.So effectively, buyers are booking flats like cinema tickets.You don’t know whats in the movie but you are hoping something good will happen.
Also, there is a lockin clause till possession ie buyers can’t sell the flat during the construction phase.And finally, the expected possession is 2017.
Despite these onerous conditions, this project is expected to be a grand success.Some realtors have told their clients to book blindly saying there will be atleast a 25% appreciation by April 2013.
And the party continues….
Categories
Off to the races with realty stocks
I had commented on realty stocks earlier.Crisil had conducted a webinar on realty stocks.For those who missed it, the presentation is enclosed below:
[gview file=”https://alphaideas.in/wp-content/uploads/2013/01/CRISIL-Research_Real-Estate-Webinar-Article.pdf”]
Categories
Who’s got the money now?
Purchases of London’s prime property shows who’s got the money now (src: FT)
As per Moneylife,
August was a terrible month for the mutual fund industry. Equity funds suffered massive redemptions amounting to Rs5,671 crore and with sales of just Rs3,385 crore, the net outflow of as high as Rs2,286 crore. This has been the highest outflow since February 2012 which saw an exodus of Rs2,809 crore.
In a recent article in BS, the national sales head of a large fund house bemoaned “Understanding investors’ sentiments is not easy. It has now become an every-month phenomenon, despite making all possible efforts to retain clients.”
So we have the retail investors deserting stocks and mutual funds in droves.
Now consider the recent press release of Godrej Properties dated Sep 12, 2012,
In a single day, the Mumbai-based real estate developer sold over 1 million sq. ft. of space in its residential project in Sector 104, Gurgaon.
Godrej Properties Ltd. (GPL) (BSE scrip id: GODREJPRP), the real estate development arm of the Godrej Group, today announced that it has sold the entire 1st phase of its residential project, Godrej Summit, in Sector 104, Gurgaon. The first phase of this project had 695 apartments across 1 million sq. ft. of space.
As can be seen from the pictures, there is a queue of investors waiting in line to give their cheques.With the current prices of around 5500 psf, Godrej Properties has booked sales of 550 Crores in one day !!
So I guess the retail investor is alive and kicking.
He prefers to stand in line for realty rather than call his broker for equity !!