NEW DELHI: Real estate developers across the country are unlikely to witness higher sales this festive season even as the Reserve Bank has slashed interest rate by 0.25 per cent, according to a report.
“Buried under high debt and inability of developers to complete and hand over pending projects well beyond commitments to hard-pressed consumers, the troubled housing sector is not witnessing any festive activity this year despite the latest cut in the policy interest rate by the Reserve Bank,” the Assocham survey revealed.
Based on information collected from 250 builders in Delhi-NCR, Mumbai, Bengaluru, Chennai, Kolkata, Ahmedabad, Hyderabad, Pune, Chandigarh and Dehradun, the poll found that the demand for new projects is low while new launches have come to a trickle, marked by lack of consumer confidence and cash deficit of the builders.
As per the survey, nearly 8-10 million workers engaged in building and other construction activities face uncertain future if the sector does not revive.
The demand for new launches has come down by over 50-60 per cent in Delhi-NCR and Mumbai while it is lesser by about 40-45 per cent in Hyderabad and Chennai. In Bengaluru, the activity has come to a total standstill, first by the demolition drive and then by Cauvery dispute agitation, the survey noted.
“Customers are preferably looking for ready to move in property rather than going for under construction property but not many properties fall in this category,” Assocham Secretary General D S Rawat said.
The unsold inventory pressure in NCR is the highest in comparison to other cities. The region’s residential market still has an estimated 1,70,000 units of unsold inventory which is approximately 30 per cent of the units under construction, adds the survey.
The ticket price for 3-bedroom, 2 BHK and single room flats has seen a correction by 30 per cent in Noida, 25 per cent in Gurgaon and 15 per cent in some key areas of Delhi, yet the demand stays subdued.
To evoke interest in real estate, all approvals of real estate projects must be accorded in a time bound, accountable and simplified manner, Assocham said, adding that the process and status of all approvals be made online so as to bring transparency. (AGENCIES)
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UAE-FORUM
UAE-India economic forum to
be held this month in Dubai
DUBAI, Oct 9:
The second edition of the annual UAE- India economic forum to explore investment opportunities in sectors like infrastructure, ports, railways and tourism in India will be held here this month.
The two-day UAE-India Economic Forum (UIEF) is set to be inaugurated by Union Minister Nitin Gadkari on October 19-20 while Minister of State for External Affairs M J Akbar will deliver a keynote speech on the second day of the gathering.
The focus of this year’s forum will be investment opportunities in India’s infrastructural projects with the event’s sessions shedding light on sectors that offer attractive investment opportunities, including infrastructure, ports and railways, tourism and hospitality, healthcare, agriculture and food security.
The line-up of speakers include top leaders from the industry from both the countries, with UIEF emerging as a definitive networking and knowledge-sharing platform for major investors and government leaders.
The first edition of the forum last year was inaugurated by Finance Minister Arun Jaitley.
The 2016 edition is supported by the UAE’s Ministry of Economy, UAE International Investors Council, Federation of UAE Chambers of Commerce and Industry, Invest India and Abu Dhabi Global Market. The event is hosted by the Consulate General of India, Dubai along with Bloomberg Businessweek Middle East, and produced by UMS Conferences. (AGENCIES)
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RADIOCITY
Marketers preferring local
advertising: Radio City
MUMBAI, Oct 9:
Private FM operator Radio City expects the share of local advertising in revenues to rise further to 60 per cent in next two years on the back of growing preference of marketers to the medium.
“There is a growth in the local advertising side. A few years ago probably it was 70 per cent of national advertisers and 30 per cent of local advertisers. Now it’s almost 50:50 in terms of national to local advertisers, but in some markets local is higher.
“In next two years, it should be probably 60 per cent for local advertisers,” Radio City CEO Abraham Thomas said.
He added that categories like real estate, education and wellness are using the local advertising effectively.
“Interestingly, even national advertisers are realising that one common message across the country may not be the best thing to do, so they are now using radio like a local medium,” he said.
He pointed out that this year during the first half the e-commerce players shied away from advertising on radio.
“There have been some changes, some categories like e-commerce have gone down but there are other categories which have come up. Last year e-commerce was a very big category on radio but this year, the first half, they weren’t as active but we have had other categories like retail, government, real estate, FMCG,” Thomas said.
The Jagran Group-firm Radio City, which operates in 28 cities, picked up 11 stations in the recent phase III auctions that it plans to launch in the next two to three months.
It acquired frequencies in Kanpur, Patiala, Patna, Jamshedpur, Ajmer, Kota, Bikaner, Nasik, Kolhapur, Udaipur and Madurai during the phase III radio auctions.
“We are launching our phase III stations and we picked up 11 frequencies. The first launch is scheduled on October 10, which is Kanpur. Over the next 2-3 months we should be launching the other 10 stations as well,” he said.
With digital gaining momentum, Thomas said the company is in the process of launching apps for some of its popular shows.
“We don’t see digital as a threat. We see digital as another platform where our content can get consumed. We have been the first to invest in digital and created Planetradiocity, which has both music and non-music content. Planetradiocity will now be available as an app. Babbar sher is another one which is in the pipeline. Lot of our properties are moving in the app ecosystem,” he said. (AGENCIES)
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