Your browser version is 8.0 and the minimum required version for this
website is 9.0 So please use IE 9+.
click here to upgrade IE
Forward Button
Great Place To Work Logo
Call:   +91 89 2854 1424

Gera in News

Mumbai property show trips on price front

Financial Express - 4 March, 2015

If the value of unsold under-construction real estate inventory in Mumbai is anything to go by — R53,400 crore for a clutch of listed firms — consumer confidence isn’t exactly soaring.

If the value of unsold under-construction real estate inventory in Mumbai is anything to go by  — R53,400 crore for a clutch of listed firms — consumer confidence isn’t exactly soaring. What’s worse, with an additional R36,800 crore of launches across 20.4 million sq ft expected — half of it in the south central part of the city — it is possible prices will be under pressure.

An analysis by Kotak Institutional Equities (KIE), from which the numbers have been taken, says land buying has dropped and prices are not going up as only four or five developers have the capacity to buy land worth more than $200 million.

Pricing still remains high in certain markets but is not increasing anymore,” the report notes.

Niranjan Hiranandani, co-founder of Hiranandani Developers, believes price points are now crucial since only relatively affordable projects are able to find takers. “The high-end properties in the central and southern parts of the metropolis aren’t seeing interest,” Hiranandani confirmed to FE.

Ghulam Zia, executive director, Knight Frank India, observed that first-time home buyers continued to sit on the fence. “In the absence of any incentives for home buyers in the Budget, the market will get revitalised only once the RBI (Reserve Bank of India) begins to cut interest rates,” Hiranandani observed.

KIE’s analysis shows HDIL, DB Realty, Oberoi Realty, Godrej Properties, Peninsula Land, Sunteck Realty and Indiabulls Real Estate are among those property developers that are sitting on high inventories, most of which is inthe  south and central pockets of Mumbai — Lower Parel, Worli and Prabhadevi.

Ambar Maheshwari, CEO, alternate investment funds, Indiabulls Group, also believes  there’s a glut at the premium and high ends of the market. “A recovery is unlikely in areas like Prabhadevi and Lower Parel unless developers build smaller apartments that result in  some kind of rationalisation in prices,” Maheshwari said.

Oberoi Realty has targeted selling its unsold inventory in the next 12 months by March 2016 but KIE expects the company will only be able to sell R8,500 crore worth of residences in the next 30 months. According to the latest data issued by the director general, registrations, Mumbai, in the first 11 months of 2014, property registrations fell 2.4%.

The report says developers are giving discounts after definitive interest from buyers. Channel checks suggest a large number of units are being sold in the 20:80 schemes (without a bank debt burden) and trip abroad for designing apartments. Discounts are becoming more evident as developers are also offering absolute discounts to buyers now, the report adds.

However, such measures are clearly failing to impress buyers. In certain markets developers are selling 20-30 units a month while in others they could be selling two to six a month, it stated. Amit Bhagat, CEO & MD, ASK Property, pointed out that demand was tepid in the luxury space so any developer who was leveraged might be under pressure.

News Archive


It has been a wonderful experience in owning a commercial space at Gera's latest offering in Goa GERA GRAND.

Read More

How has your experience been of owning a commercial space with Gera?

My experience has been excellent. I have purchased an office in Gera’s Imperium 2 and a s..

Having a commercial space in and around Panjim was our long desire and this could be possible with Gera’s.

Patto Plaza has ..

First of all I would like to thank  you  and the Gera team for organizing different workshops at our doorstep.
The best thing I have done to my kids is that I  took a right decision to buy a flat in Gera.
Because of this decision , Vishnu could attend  the development workshops that were conducted.
Vishnu was a shy child who didn't like to participate in any of the programmes.
As far as Dale Carnegie workshops is concerned   it  has given him a lot of confidence and was presenting things in a much better way and I can see a lot of improvement in him.In simple words u made a person(..

My son Tattva had been enrolled in the intermediate level and has been coached by the Vishwanathan Anand Chess Academy coach . Tattva has made remarkable strides and will be on his way to get his FIDE rating in November. A lot of credit goes to the mentor for his unique way of handling his students. He has been very patient while working with Tattva on his areas of improvement. In addition before the tournament the coach had voluntarily added additional classes and doubled his efforts to get a better performance out of Tattva. He has shown complete ownership which is commendable. I hope he continues to develop more and more chess players in the coming days.