India Faces Housing Slowdown

The withdrawal of an IPO by a big property developer in India earlier this month was just the latest sign of the growing difficulties companies world-wide are having tapping capital markets.

But the message for the sizzling Indian real-estate development business was worse: get ready for a slowdown.

Emaar MGF Land Pvt. Ltd. said it pulled its initial public offering of shares because of “prevailing adverse market sentiments, fueled by renewed indications of a U.S. recession and global meltdown.” Emaar MGF is a joint venture between the developers Emaar Properties PJSC of Dubai, United Arab Emirates, and MGF Development Ltd.

2 Comments

  1. Posted April 30, 2008 at 12:07 am | Permalink

    The turmoil in the global financial markets has cast its shadow on India’s largest real estate deal. India’s real estate developers, especially the mid-sized ones, have been facing a liquidity crunch since last year. Developers can no longer tap the external commercial borrowing route, while domestic borrowing costs have gone up on account of tight-fisted monetary policy, which is likely to harden further in days to come. In addition, the stock market has taken a beating with real estate stocks falling off their recent highs. Other sources of funding for instance, the London Stock Exchange’s Alternate Investment Market or listing real estate investment trusts abroad are also not feasible in current market conditions.
    The tender that BPTP won, beating bigger players like DLF and Omaxe, has an allowed the company to seek an extension to pay the first tranche.Failure to make the payment within the extended deadline would result in the award being scrapped and a fresh tender being announced.What impact will it have on the Indian economy in general and Indian real estate sector in particular???For more view- realtydigest.blogspot.com

  2. New Condos For Sale
    Posted April 20, 2009 at 6:42 am | Permalink

    Real estate price in India is facing slowdown especially in the metros. I have taken Delhi as an example in this In Delhi real estate price is going down though none of the real estate agencies would like to agree to this fact. stock market also downfall too has added more trouble to the real estate market as it is reducing the purchasing power

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