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DLF
Property bubble : wikipedia report
Posted by :
BhattTracked by: 0 Boarder
Indian property bubble
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This article does not cite any references or sources.
Please help improve this article by adding citations to reliable sources. Unverifiable material may be challenged and removed. (August 2007)
This article is written like a personal reflection or essay and may require cleanup.
Please help improve it by rewriting it in an encyclopedic style. (September 2008)
The origins of Indian Property Market Bubble can be traced to the interest rate reductions made by the NDA coalition government in the years following 2001. Home Loan Rates fell to a (then) historical lows of 7.5% in early 2004. This prepared the basis for the massive increase in real estate property prices across India. Low interest rates triggered huge interest in individuals to borrow to own their own homes and this triggered an increase in demand for real estate across India.
The Indian Property Market has been growing fast since March 2005, when the current UPA government decided to open FDI in Real Estate. The market has been growing at a dizzying rate of 100%+,and further[citation needed]
Real estate in Indian metropolises such as Mumbai, Delhi and Chennai has sky rocketed to levels comparable with international cities like London.
One remarkable point is the real-estate boom in Chennai and its suburbs, leading to high prices in decent housing and then finally prices dropped. For example, an apartment of 1500 square foot in a Chennai suburb will cost around USD 200,000, whereas in Europe similar size costs about USD 450,000. In a class A suburb of New York you can buy a large house for around same amount (450K). Per capita ratio is around 50:1 ($50,000 to $1100); this suggests the presence of a bubble.
However, speculations aside housing prices depend a lot on various factors such as the age of the property, facilities, surrounding area etc. Hence, the property bubble will burst for the places bought over priced with no stronghold value to it.
Some have suggested that given India`s population density is closer to that of Europe than that of America the real value of Indian Real Estate should be close to European levels rather than American levels. When looked at in that way Indian real estate is still cheap. This argument assumes the rapid economic growth in India will have brought per capita income in India to European levels within the next 5 years in urban areas.
Contra argument to this is US prices should ideally move with economy/inflation rate of 2-3% while Indian prices will gallop at the rate of 10% a year and probably more as the land distribution market is inefficient.
By its very definition a bubble is a short term phenomenon while Indian real estate market has continued on a secular upward trend, apart from periodic adjustments, in the last 10 years. Bear in mind that there are almost 400 million Indians waiting to hit the middle class group and they will exert additional pressure on the system. Affordability is the most important factor when it comes to housing prices and middle class housing is much levels of affordability in most of the major cities in India. People who compare India with developed European cities, forget the huge difference in affordability in both areas. Of course there is a huge demand for housing but they can only buy what they can afford.
One of the big problem of real-estate market is that supply lags behind demand by about 5 years (Plan-Approve-Finance-Construct time).
Lack of efficient signals to market participants means that there will be periods of mismatch between suppliers and buyers hence leading to cycles of booms and busts.
As of May 1st 2008, the Indian housing market has already started declining. Prices have started to drop to some extent in few major cities.
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DLF
Posted by :
chandu.bondTracked by: 0 Boarder
I feel DLF next target is 250 what is u r opionin GUYS...
NSE Announcements on DLF
Posted by : MMB MessengerTracked by: 0 Boarder
Dlf Limited, JM Financial Consultants Pvt. Ltd. and DSP Merrill Lynch Limited has informed the Exchange that Dlf Limited (the "Company") is buying back its own fully paid up equity shares of face value Rs.2/- each ("Shares") from the open market through the electronic trading facilities of the Bombay Stock Exchange Limited ("BSE") and National Stock Exchange of India Ltd. ("NSE") (together the "Stock Exchanges"). The Company has appointed JM Financial Services Pvt Ltd. and DSP Merrill Lynch Ltd. as its brokers ("Brokers") for placing orders on the Stock Exchanges. The details of the purchase orders that were executed on the Stock Exchanges on December 04, 2008, in connection to the above buyback are: 1) Date of Buyback: December 04, 2008; 2) Name of the Broker: JM Financial Services Pvt. Ltd.; a) No. of equity shares bought back on BSE: Nil; b) No. of equity shares bought back on NSE: Nil; c) Total no. of equity shares bought back: Nil; d) Average Price of Acquisition (Rs.):N.A.; 3) Name of the Broker: DSP Merrill Lynch Ltd.; a) No. of equity shares bought back on BSE: Nil; b) No. of equity shares bought back on NSE: Nil; c) Total no. of equity shares bought back: Nil; d) Average Price of Acquisition (Rs.): NA; 4) Cumulative Equity Shares bought as on December 03, 2008: 21,00,767; 5) Quantity Closed Out on December 04, 2008 - Nil; 6) Quantity Closed out as on December 03, 2008 - Nil; 7) Total Quantity Closed Out - Nil; 8) Total Equity Shares bought back as on December 04, 2008: 21,00,767....
Tracked by: 0 Boarder
gdnaidu, almost all people who could afford flats, have bought flats. NOw they will look for more & more consumer durables. Realty stocks for next 5 years will not yield much gain. Go for consumer durable stocks in market dips....
In reply to:
DLF
Posted by : gdnaidu
Hello investors.
I hold 400 DLF at 400 Average.
Anyway i am not worried.
I want to suggest investors to take position on real estate stocks.
Technical reason - The individual desire is increasing to have own house & we can see lot new foundations in the home sector especially(i am not talking about commercial)
When the whole real estate market was in peak & the home buyers ran around for loans to get high investments houses.
Imagine the interest now! when the valuation is already 30~40 % less, the sales bound to increase as the volume will build up, this is the only safe investment for the investors, who never own a house & for buyers of quality homes.
Not go by speculation, It will be a next good move for banks & real estate.
Watch out & dont forget to end with me a note!. 
Tracked by: 0 Boarder
Hello investors.
I hold 400 DLF at 400 Average.
Anyway i am not worried.
I want to suggest investors to take position on real estate stocks.
Technical reason - The individual desire is increasing to have own house & we can see lot new foundations in the home sector especially(i am not talking about commercial)
When the whole real estate market was in peak & the home buyers ran around for loans to get high investments houses.
Imagine the interest now! when the valuation is already 30~40 % less, the sales bound to increase as the volume will build up, this is the only safe investment for the investors, who never own a house & for buyers of quality homes.
Not go by speculation, It will be a next good move for banks & real estate.
Watch out & dont forget to end with me a note!....
In reply to:
DLF
Posted by : Guest
sell dlf buy hdil..............
Tracked by: 0 Boarder
sell dlf buy hdil.................
In reply to:
DLF
Posted by : jkt
I hold 500 DLF Shares @412 I Can hold it for next two years will it pullback
to this level by that time
Buy DLF above Rs 193: ICICIdirect.com
Posted by :
mishaTracked by: 0 Boarder
when deepak parekh, chairman of HDFC is telling that there will be further 40% crash in real estate in next six months all over india, one has to be careful in real estae stocks. ...
In reply to:
Buy DLF above Rs 193: ICICIdirect.com
Posted by : Guest
Real estate asset valuations have no steem and strength in them to support and sustain a robust growth over the next few years. All biggies have over exposed by buying land at exorbitant prices, which the future customer can neither afford nor support....
NSE Announcements on DLF
Posted by : MMB MessengerTracked by: 0 Boarder
Dlf Limited, JM Financial Consultants Pvt. Ltd. and DSP Merrill Lynch Limited has informed the Exchange that Dlf Limited (the "Company") is buying back its own fully paid up equity shares of face value Rs.2/- each ("Shares") from the open market through the electronic trading facilities of the Bombay Stock Exchange Limited ("BSE") and National Stock Exchange of India Ltd. ("NSE") (together the "Stock Exchanges"). The Company has appointed JM Financial Services Pvt Ltd. and DSP Merrill Lynch Ltd. as its brokers ("Brokers") for placing orders on the Stock Exchanges. The details of the purchase orders that were executed on the Stock Exchanges on December 03, 2008, in connection to the above buyback are: 1) Date of Buyback: December 03, 2008; 2) Name of the Broker: JM Financial Services Pvt. Ltd.; a) No. of equity shares bought back on BSE: Nil; b) No. of equity shares bought back on NSE: Nil; c) Total no. of equity shares bought back: Nil; d) Average Price of Acquisition (Rs.):N.A.; 3) Name of the Broker: DSP Merrill Lynch Ltd.; a) No. of equity shares bought back on BSE: Nil; b) No. of equity shares bought back on NSE: Nil; c) Total no. of equity shares bought back: Nil; d) Average Price of Acquisition (Rs.): NA; 4) Cumulative Equity Shares bought as on December 02, 2008: 21,00,767; 5) Quantity Closed Out on December 03, 2008 - Nil; 6) Quantity Closed out as on December 02, 2008 - Nil; 7) Total Quantity Closed Out - Nil; 8) Total Equity Shares bought back as on December 03, 2008: 21,00,767....
Tracked by: 0 Boarder
A short term investors or traders can take risk on DLF at Rs.175- Rs.180 and He hope for target Rs. 245...
Buy DLF above Rs 193: ICICIdirect.com
Posted by : GuestTracked by: 0 Boarder
Real estate asset valuations have no steem and strength in them to support and sustain a robust growth over the next few years. All biggies have over exposed by buying land at exorbitant prices, which the future customer can neither afford nor support.......
In reply to:
Buy DLF above Rs 193: ICICIdirect.com
Posted by : MMB Messenger
ICICIdirect.com has recommended to buy DLF above Rs 193 with a stoploss of Rs 192 and targets of Rs 199/210/higher.
Buy DLF above Rs 193: ICICIdirect.com
Posted by : MMB MessengerTracked by: 0 Boarder
ICICIdirect.com has recommended to buy DLF above Rs 193 with a stoploss of Rs 192 and targets of Rs 199/210/higher....
DLF down target =99....
Posted by : sattmarketTracked by: 0 Boarder
It will decline ,Property price will down more then 50-77 percent,in NCR in Delhi ,RealEstate will be decline for next 5-7 years ,
DLF,UNITECH BOTH R DOWNGRADED my USA bank
Expert said al realestate will be very very PANIC for next 5-7 years
Lossein projects inside and outside ,Bailout is just a waste of money for this sector ,...
In reply to:
DLF down target =99....
Posted by : sambala
Bailout package for real estate units
New Delhi, Dec 2 (PTI) Cut in home loan rates, easing of norms for overseas loan and rescheduling of total debt are among the measures proposed by the Union Urban Development Ministry in a a bailout package for the real estate industry hit by ripple effects of the global economic meltdown.
"We have drafted a package for the real estate industry which is passing through a bad phase. The draft would be sent to the Finance Ministry for approval," M Ramachandran, Urban Development Secretary, told PTI.
About the measures in the package, he said "we have suggested relaxation in norms for foreign loans so that real estate companies can tide over the liquidity crunch." The UD Ministry has also suggested certain other sops including rescheduling of total debt of real estate units and reduction in home loan rates for affordable houses.
"We need for a significant number of affordable houses in the country as there is a shortage of these houses", he said.
National Real Estate Development Council (Nardeco) has demanded certain sops from the Finance Ministry for the real estate sector and "we have included some of their demands in our package", he said.
Once the Finance Ministry clears the package, it would go for cabinet approval.
DLF down target =99....
Posted by : sambalaTracked by: 0 Boarder
Bailout package for real estate units
New Delhi, Dec 2 (PTI) Cut in home loan rates, easing of norms for overseas loan and rescheduling of total debt are among the measures proposed by the Union Urban Development Ministry in a a bailout package for the real estate industry hit by ripple effects of the global economic meltdown.
"We have drafted a package for the real estate industry which is passing through a bad phase. The draft would be sent to the Finance Ministry for approval," M Ramachandran, Urban Development Secretary, told PTI.
About the measures in the package, he said "we have suggested relaxation in norms for foreign loans so that real estate companies can tide over the liquidity crunch." The UD Ministry has also suggested certain other sops including rescheduling of total debt of real estate units and reduction in home loan rates for affordable houses.
"We need for a significant number of affordable houses in the country as there is a shortage of these houses", he said.
National Real Estate Development Council (Nardeco) has demanded certain sops from the Finance Ministry for the real estate sector and "we have included some of their demands in our package", he said.
Once the Finance Ministry clears the package, it would go for cabinet approval.
...
In reply to:
DLF down target =99....
Posted by : sambala
FIPB bars land resale by realtors with foreign joint ventures
The Foreign Investment Promotion Board (FIPB) has clarified that foreign joint ventures in the construction and development business will not be allowed to sell undeveloped land they acquire for projects.
The ambit of this clarification includes foreign joint ventures in housing, commercial premises, townships, resorts, educational institutions, and city and regional townships.
The decision was taken by the FIPB last month when it rejected a proposal by Keppel-Puravankara Development Pvt Ltd (KPDL) — in which Singapore-based Keppel Land Ltd holds 51 per cent — wanted to sell 1.5 acres out of a 62-acre plot it had acquired to develop an integrated township in Bangalore.
Keppel Land is the property arm of the Keppel Group, which has its core business in offshore and marine infrastructure and property development.
KPDL had proposed that since the entire project did not materialise, the company would sell “undeveloped land” of 1.5 acres at the market price at which it had acquired it from Purvankara Projects Ltd.
KPDL had contended that there were no restrictions on such sales under Karnataka’s land laws. The company also argued that since it had offered Purvankara Projects the option of buying the land at the same price, it was not driven by profit motive.
Bangalore-based Purvankara group is one of south India’s leading real estate developers and is developing over 18.78 million square feet of space and has operations in Kochi, Chennai, Coimbatore and Colombo.
The move is significant because several large Indian retail developers have tied up with international housing development companies to execute projects in the country. Apart from Dubai-based Emaar Properties, which has a venture with Delhi-based MGF, DLF has set up a joint venture with the UAE-based Nakheel group to build two townships for $10 billion.
Pegasus Realty, based in West Asia, has tied up with Indian partners at various locations and Citigroup Property Investors had tied up with Pune-based Gera Developers for city-based projects.
In its deliberations at the FIPB meeting, the Department of Industrial Policy and Promotion (DIPP) said the proposal could not be supported because guidelines under Press Note 2 of 2005 say joint ventures in housing and development do not entail sale of undeveloped land.
The ministry of urban development observed that foreign direct investment in retail is prohibited, so any sale of land may be categorised as real estate activity.
NSE Announcements on DLF
Posted by : MMB MessengerTracked by: 0 Boarder
Dlf Limited, JM Financial Consultants Pvt. Ltd. and DSP Merrill Lynch Limited has informed the Exchange that Dlf Limited (the "Company") is buying back its own fully paid up equity shares of face value Rs.2/- each ("Shares") from the open market through the electronic trading facilities of the Bombay Stock Exchange Limited ("BSE") and National Stock Exchange of India Ltd. ("NSE") (together the "Stock Exchanges"). The Company has appointed JM Financial Services Pvt Ltd. and DSP Merrill Lynch Ltd. as its brokers ("Brokers") for placing orders on the Stock Exchanges. The details of the purchase orders that were executed on the Stock Exchanges on December 02, 2008, in connection to the above buyback are: 1) Date of Buyback: December 02, 2008; 2) Name of the Broker: JM Financial Services Pvt. Ltd.; a) No. of equity shares bought back on BSE: Nil; b) No. of equity shares bought back on NSE: Nil; c) Total no. of equity shares bought back: Nil; d) Average Price of Acquisition (Rs.):N.A.; 3) Name of the Broker: DSP Merrill Lynch Ltd.; a) No. of equity shares bought back on BSE: Nil; b) No. of equity shares bought back on NSE: Nil; c) Total no. of equity shares bought back: Nil; d) Average Price of Acquisition (Rs.): NA; 4) Cumulative Equity Shares bought as on December 01, 2008: 21,00,767; 5) Quantity Closed Out on December 02, 2008 - Nil; 6) Quantity Closed out as on December 01, 2008 - Nil; 7) Total Quantity Closed Out - Nil; 8) Total Equity Shares bought back as on December 02, 2008: 21,00,767....
DLF may come in to two digit: Sukhani
Posted by : MMB MessengerTracked by: 0 Boarder
Sudarshan Sukhani of Technical Trends is of the view that DLF may come in to two digit and at that point, it will become a very good buying opportunity."
...
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