In an interesting turn of events, Indian equity brokers are turning themselves into real estate brokers.
Not a day goes by, when one does not get an email from brokers hawking a real estate project.
Some of the equity brokers who have become very active realtors are ICICI Direct, Kotak, Karvy, SMC, Indiabulls etc
It would be interesting to see how much of their income comes from realty brokerage as opposed to equity brokerage
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….
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”]
Purchases of London’s prime property shows who’s got the money now (src: FT)