Mumbai Proprty Fair Update
Sunday, April 20, 2008
This is an update by Goldman Sachs from MCHI Property 2008 at Bandra Kurla Complex, Mumbai on April 18th.
Property rates being quoted for Mumbai suburbs were high and likely to be beyond the reach of many upper middle income families. Given the upcoming supply, we believe risks are on the downside for property prices. We believe developers will struggle to achieve volume growth if they do not offer lower ticket sizes.On Goldman's interaction with Investors,
Feedback on the sector based on our interaction with Asia based investors over the past month has generally been bearish.In the absence of a correction in property prices and interest rate cuts, GS believes end user demand will likely continue to languish. Property stocks may struggle to perform in the near future.We are currently fetching the rates of various projects in Mumbai and shall update them soon.
posted by Webmaster @ 12:06 PM
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If city developers harboured any hope of the property fair organised by the Maharashtra Chamber of Housing Industry (MCHI) boosting flat sales, it appears to have been dashed.
The fair from March 17 to 21 at the Bandra Kurla Complex proved to be a dud, say realty experts. While developers claimed to have got many enquiries, most have failed to translate into sales. Acme Developers, which sold three flats, termed the deals as incidental because they had been in talks with the customers before the fair.
The reason? High prices quoted by developers, which were beyond the reach of even the upper middle class. Even Goldman Sachs in its report has said most flats were overpriced.
According to Vishnu Gopal and Shruti Gandhi, the two Goldman Sachs analysts who visited the fair, the affordability ratio (loan repayment versus household income) appeared to be high.
The third property expo held in the city of Coimbatore provided the property developers with excellent prospects. It also offered a chance to common man to be abreast with energy efficient and environment friendly buildings.
This recently concluded fair was jointly organized by Association on Consulting Civil Engineers India (ACCE), builder’s Association of India (BAI), and Coimbatore District Small Industries Association (CODISSIA). The fair is believed to have generated around Rs. 100, 00,000 business.
T.R Baalu, Union Minister for Shipping Road Transport and Highways, inaugurated the fair. Many famous personalities who graced the fair with their presence include the prominent names of Pongalur N. Palani, Minister for Rural Development, Government of Tamil Nadu and Professor M. Naganathan, Deputy Chairman, State Planning Commission. The fair was attended by around 1, 25, 000 visitors who passed through the portals of this Fair that concluded on 29th January with a valedictory function presided over by Coimbatore Mayor, R. Venkatachalam.
I have also attended that property fair.There are lot of companies which was there a great participating for over all propertylevel of the different-2 states.
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