It was February 2010. The Indian real estate community had congregated at The Atlantis in Dubai for the annual meet of the Confederation of Real Estate Developers’ Association of India (CREDAI). The champagne flowed, people partied, dinners followed at the Burj Khalifa. It was just two years after the global financial crisis and developers thought they were back with a bang. They went on to raise prices, offer fancy loan schemes and build massive malls and commercial buildings. But over the last decade, the sector has crumbled and now the Covid-19 outbreak has left them gasping for air.
One look at promotional text messages from residential real estate developers reveals how prices are moving in the sector across the country. A developer who was offering its 1 BHK at a starting price of ₹63 lakh in the central suburbs of Mumbai in January had repriced it to ₹51 lakh in the last week of April. In the times to come, residential prices will fall further, say industry experts.
“We see weakness in new bookings for FY21 due to deferral in purchases, and we also see a higher risk of cancellations in the near term for bookings done in the near past,” says Mohit Agrawal, research analyst, IIFL Institutional Equity Research. He adds, “Our base-case assumptions have seen a 40-60 percent decline in new bookings, including a nearly 10 percent reduction in property prices over FY21, with a gradual recovery over FY23 and beyond.”
Denne historien er fra June 5, 2020-utgaven av Forbes India.
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Denne historien er fra June 5, 2020-utgaven av Forbes India.
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Home-Cooked Meal Is Now Greatly Valued
The pandemic has also brought with it an improved focus on hygiene, use of technology in dining, rise of cloud kitchens and resurgence in popularity of Indian ingredients
Paytm 3.0 - Reaching Near Breakeven In Two Years
As of 2020, Vijay Shekhar Sharma’s super app for financial services had run up losses in thousands of crores. Now, as digital payments gets yet another boost courtesy Covid-19, he’s hopeful of reaching near breakeven in two years
THE PANDEMIC HAS CAUSED WOMEN GREATER LABOUR PAIN
Covid-19 has shown that women are more likely to face the brunt of job losses than men, and find fewer opportunities when they want to resume. That apart, several have to deal with increased hours of unpaid work at home and even domestic abuse
LEADERSHIP WILL BE ABOUT SEEING THE BIGGER PICTURE
Leaders must not only guard their teams first during a crisis, but also deal with stakeholders with respect and dignity. And apart from pursuing business goals, they should remain committed to our planet and the environment
PHILANTHROPY SHOULD BE HUMBLE, BUT NOT MODEST
Apart from building a flexible and resilient framework for the future, philanthropists, civil society and the government must work in tandem so that every rupee is absorbed on the ground
INTEGRATED HEALTH CARE, TECH WILL DISRUPT SECTOR
While clinical research will get a boost, having a skilled workforce and public spending on health care will be challenges in the near term
DIGITALISATION WILL HELP IN VALUE CREATION
As the pandemic brings technology and innovation to the core of business and daily life, the next decade will see about 150 million digital-first families in India
Industry 4.0: Climate Revolution?
Augmenting sustainability alongside digital capabilities is an economic, competitive and global opportunity for India’s businesses, but regulations need to reflect intent
EV Dream Still Miles Away
Electric vehicles have remained a buzzword in India for years. But not much has moved on ground due to high upfront costs, range anxiety and charging infrastructure
Living Waters
A virus has caused us to scramble for oxygen but our chokehold on the environment is slowly strangling the very waters that breathe life into us. The virus is a timely reminder: We are merely consumers, not producers of life’s breath on this planet
