Wednesday, April 2, 2008

Pune real estate slowdown - ‘‘There May Be Short-term Slowdown In Real Estate,’’ Shamsu and Hussain Lalani, Directors, Lalani Group

Having carved a niche in Mumbai’s high-end and middle-income residential segment with over 20 projects since 1985, the Lalani Group of Developers and Builders has now set its sights on the fast developing Thane and Pune markets.

Projects on the anvil here include a premium residential project at Thane’s Ghodbunder road and a state-of-the-art IT Park at Bavdhan, close to Pune’s IT hub of Hinjewadi.

In an exclusive interview, the company’s young directors, Shamsu and Hussain Lalani, sons of founder Shaukat Lalani, shed light on their future plans and their views on the current turbulent real estate market scenario. Excerpt:

Q. RK: On the downside, real estate growth is said to have slowed down considerably due to negative factors like increasing home loan rates, overheated market scenario, indifferent budget, hike in input costs and rising property prices.
How do you assess the impact of these key factors on real estate growth and its pricing mechanism in the near future?

HL: With home loan rates climbing from around 7.5 per cent to the current 10.5 percent, it’s definitely going to pinch the customer thereby impacting the market. But this will slow down demand only in the short term, simply because at the end of the day if somebody wants to buy a house he will still go ahead and buy one, irrespective of the home loan rates.

Transactions might slow down in the short term and there might be a slight price correction to the extent of 10-15 per cent in areas where realty prices have doubled and even trebled in the last two years, but the market is not going to fall. I don’t think there will be a repeat of the 1995 scenario when the property market really crashed and created a huge turmoil. Even if there is a minor price correction in overheated areas, the market will still climb eventually, though it might not be at the same pace as in the past two years. However there will still be moderate growth.
Indian Real Estate Research Property India Real Estate

Related stories:

1. Pune Real Estate Slowdown - with fewer transactions happening and values holding, the real estate action has shifted to the rental front (?)

2. Pune real estate slowdown - HDFC says correction will not be as drastic as 1996, simply because Pune real estate market is driven by the end user

3. Pune real estate slowdown: school exams may be the reason says Sachin Bora, director of Samrat Constructions

4. Property prices at Hingewadi, Wakad and Chakan in Pune are still seeing appreciation - observes Sanjay Dutt, Joint MD of Cushman & Wakefield

5. Is real estate market slowing down?

6. Congrats Pune real estate investors, for thinking irrationally and paying illogically high price for the newly launched property

1 comment:

  1. Real Estate Pune has been doing really well over the last few years and looks all set for a bright and promising future ahead. The developmental activities in Pune infrastructure are signs of Pune's growing economy.With the boom in the Indian economy, the major Indian cities have witnessed a tremendous surge in real estate and Pune, which is one of India's most sophisticated cities, is no exception. Pune, situated in Maharashtra, is one of the major industrial and commercial centers in India. That makes Pune one the best places for investment in the real estate sector. Along with this, the helpful policies of Foreign Direct Investment by the Government of India have made it very easy for prospective investors to invest in the Indian real estate sector.Pune is the second most important city of Maharashtra, next to Mumbai. It is also called as the cultural capital of Maharashtra and the educational capital of the country. It is a cosmopolitan city, where different cultures have blended seamlessly. The city of Pune is dotted with a number of transnational companies such as IBM, Dell, and Accenture, as well as Indian companies like Bajaj Auto, Wipro, and Infosys. Evidently, Pune is becoming a hub of the Information Technology sector, along the lines of Bangalore. It has emerged as one of the most important Business Process Outsourcing (BPO) centers in India. All these factors make the real estate in Pune extremely popular and sought after.For more view-