“Sales on under-construction projects have been weak and therefore new launches are very slowâ€, says Samar Sarda, Senior Analyst at Kotak Securities.
Godrej Properties hopes to post even better H2FY14 on the back of new project launches in the pipeline. Its management is also confident of no impact on the RoE due to its Rs 700 crore rights issue.
Cash-rich companies will take advantage of the stagnating capital values and rents to buy and lease out office space, respectively. A decrease in both sub-market vacancy rates and new office space supply will leave occupiers with limited office space options. Developers can demand a premium on quality office spaces.