Chronology of Events - No Recovery Yet

Excerpts from Morgan Stanley Indian Realty Research list the chronology of events in the Indian Real Estate space.

• Bad to Worse Market Conditions 20-Oct-08
• Sobha Blinks - First Official Price Cut in the Sector 23-Nov-08
• Price Softening Becomes More Widespread 7-Dec-08
• Price Cuts Accelerating, Land Bank Contraction Begins 19-Feb-09
• Price Cut Party Getting Bigger; New Launch Pickup 6-Mar-09
• Behold, Oversupply Coming In Mumbai, Gurgaon 8-Apr-09
• Price Correction Sets In Central Mumbai, Volumes Modest 10-May-09
• Vol Trends In New Launch look up 15-Jun-09
• Commercial/Retail Demand Remains Subdued 2-Jul-09
  

Importantly, several old pre-leases have been negotiated down 15-20% - and mgmt teams are guiding to 20-30% lower rental expectation (Lower Parel Rs225 psf, Kurla Rs80-85, Bangalore / Pune /Chennai/Hyderabad - Rs50-70 psf) for the un-leased portion (versus Jan'09). In addition, retailers want mall developers to share the business risks, and, therefore, revenue sharing (4-20%) is getting increasingly common.

Tags: India Real Esate, Commercial Realty, Retail Mall, Office Spaces