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The year 2013 is something that the real estate industry might want to forget in a haste. There are reasons to it. The past year witnessed realtors not moving ahead with lifetime huge unsold inventories. Besides this, builders didn’t go ahead with launches, avoided and hesitated sharp price cuts and attached all their hopes on promotions and freebies.
This might be termed as a vicious cycle. However, the cash-striving developers state that they are not in a position to reduce the prices considering the present high course of inflation and borrowing costs. Whilst on the other hand, buyers have gone ahead and stated that they will not venture into the real estate till there is a marked correction in price. CNBC-TV18's special show Prime Property brought a recap of 2013.
It has been noted that the best mark for the Indians was nothing but the real estate market. However, last year didn’t go that well off. 2013 ended with numerous important turn of situations that altogether changed the property game. It all started with the dropping rupee against the dollar. This gave rise to a situation where in some foreign funds either hold their investment plans whilst others came out of Indian projects with lower returns.
What is being seen as the causes for India’s ostentatious malls losing their significance is the fact that there were inflated rentals, below average revenue models, low brand pull, unavailability of specialty outlets.
Presently, the vacancy levels are at an astonishingly great 14.51 percent, thus encouraging builders to comply mall openings.
According to Cushman & Wakefield, it stated that in 2013, opening of 18 malls were delayed. Amongst the 18 malls, 10 were placed in the National Capital Region (NCR). This fact comes as no surprise as figures indicate that NCR’s mall vacancy is the highest in the country with a figure of 55 percent. Mumbai ranks second with 52 percent vacancy. Ahmedabad and Chennai follow close by.
The question that is prying on the minds of the people is this whether now 2014 bring in some good news considering the fact that builders are slashing rates for home buyers waiting at the border.
This might be termed as a vicious cycle. However, the cash-striving developers state that they are not in a position to reduce the prices considering the present high course of inflation and borrowing costs. Whilst on the other hand, buyers have gone ahead and stated that they will not venture into the real estate till there is a marked correction in price. CNBC-TV18's special show Prime Property brought a recap of 2013.
It has been noted that the best mark for the Indians was nothing but the real estate market. However, last year didn’t go that well off. 2013 ended with numerous important turn of situations that altogether changed the property game. It all started with the dropping rupee against the dollar. This gave rise to a situation where in some foreign funds either hold their investment plans whilst others came out of Indian projects with lower returns.
What is being seen as the causes for India’s ostentatious malls losing their significance is the fact that there were inflated rentals, below average revenue models, low brand pull, unavailability of specialty outlets.
Presently, the vacancy levels are at an astonishingly great 14.51 percent, thus encouraging builders to comply mall openings.
According to Cushman & Wakefield, it stated that in 2013, opening of 18 malls were delayed. Amongst the 18 malls, 10 were placed in the National Capital Region (NCR). This fact comes as no surprise as figures indicate that NCR’s mall vacancy is the highest in the country with a figure of 55 percent. Mumbai ranks second with 52 percent vacancy. Ahmedabad and Chennai follow close by.
The question that is prying on the minds of the people is this whether now 2014 bring in some good news considering the fact that builders are slashing rates for home buyers waiting at the border.
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