Property rates at MCHI exhibition beyond the common man’s reach

Mumbai: The 19th MCHI Property exhibition started on MMRDA ground with the main objective to provide affordable housing to common-man with attracting slogan MCHI hai to bharosa hai.

Whereas, in MCHI’s advertisement it is clearly mentioned that houses are available for Rs. 10L, but it is nowhere mentioned that it is studio apartment located in Badlapur (East), nearly 3 km from the station.

In the media conclave held immediately after the ceremony of MCHI property exhibition, MCHI President Paras Gundecha said that “we are anticipating that this property exhibition will earn a huge profit to property industry”, so where are the affordable houses.

We need the strong support from government body for development, MCHI Secretary Boman Irani said. There are several projects are still pending, so if there were less supply in the market then prices will definitely rise, he added.

While talking with reporters Minister of State for Housing Sachin Bhau Ahir said that “when it comes to housing and development anything which deters development, we will not tolerate it.”

This newspaper has done the research and also contacted to several visitors and came to know that the large number of home seekers are not happy with the prices and disappointed with the housing finance schemes.

According to the Vivek Sharma owner of Shreyas estate agency located at Powai said that “exhibition is not for the common man except some parts otherwise the huge part is of this beyond the expectations of middle class person.” The locations which are available within the range of common man is far from the Mumbai located in the outskirts of city such Virar, Badlapur and Karjat etc, he added.                 

MCHI proposed Code of Conduct for realtors

“Every MCHI member has to follow new code of conduct otherwise ready to face dire consequences”, Bomani Irani MCHI Secretary says, MCHI also sets up Consumer Redresser Mechanism

Mumbai: Kick-starting a Consumer Redresser Mechanism, The Maharashtra Chamber of Housing Industry (MCHI), the representative body of real estate industry, has decided to enforce a “Code of Conduct.” among its developer members.

Announcing this, MCHI President, Mr. Paras Gundecha said that the code of conduct aims to promote the highest standards of quality and service in the industry, apart from ensuring transparency and fair dealing among the Developers, Promoters and Customers. Besides, the 1,000 member body has also put in place grievance redressal mechanism to address issues confronted by customers.

MCHI has formally adopted the Code of Conduct at its 29th Annual General Meeting (AGM) held on September 13, 2011 in Mumbai. Present at the meeting were Shri. Subodh Kumar, (IAS), Municipal Commissioner, Municipal Corporation of Greater Mumbai (MCGM) and Shri V K Sharma, Director and Chief Executive, LIC Housing Finance.

Shri. Kumar, who released the “Code of Conduct” document, underlined the importance of the civic body and MCHI working in co-operation to address various issues that impacts sector. In his address he explained various measures that he is working to put in place to expedite the pace of clearances.

He said that he is keen to ensure a transparent system of approvals and clearances, where by any scope for discretion is minimized. This, he hoped, will ensure improvement in transparency levels.

Mr. Paras Gundecha, President, called upon MCHI members to wholeheartedly adopt the Code of Conduct, so that relations with all stakeholders become smooth and cordial. In this context, he emphasized on the Consumer Grievance Cell as a progressive measure towards ensuring self-regulation.

MCHI code of conduct deals with the five major clauses – Full disclosure on property title, agreement for sale on carpet area basis, possession details, any additional charges details and arbitration & mediation – These are aimed at bringing in more transparency in customer interaction. The code which has come into force from 13th September, 2011, governs all the projects commenced after this date, will see effective implementation of redresser cell to handle grievances.

Mr. Boman Irani, Honorary Secretary, presented the Annual Report for the year 2010-11. He informed members that MCHI had pledged to fully support Maharashtra Government’s goal of “Homes for All”, and asked members to rededicate themselves to achieve this goal.

There is a three member redresser committee, constituted by MCHI managing committee, which will suggest remedial measures to overcome hurdles and ensure speedy disposition of the customer grievances.

Free Housing in Mill Land Deferred

“As per the survey reports there are over one lakh mill workers those are eligible for free housing, so it would be impossible to accommodate all mill workers, but state could provide only 30,000 at the most” CM, whereas supreme court has ordered to allot free housing to mill workers."

The Municipal Commissioner Subodh Kumar has introduced the several new guidelines such as 100 percent premium on extra FSI, restrictions over residential and commercial constructions and many more norms has been implemented. According to Kumar these new proposed guidelines has been introduced to control the violations in constructions. In the aftermath of civic body’s tightened grip over the real estate sector builders have increased the property rates and between this tug of war common has grilled.

After these moves now civic body turned to mill lands, whereas mill land is not a new issue but still state government is tightening its grip over Mill land owners. As per the new imposed laws to deter the development permissions, for those developers who yet haven’t handed over the land which is suppose to allotted to the BMC and Mhada within the time frame of three months. According to the mentioned in DCR the allotted piece of land has divided into two parts from which Mhada is supposed to construct affordable houses for mill workers as well as economically weaker sections, whereas BMC is expected to use the part of allotted land for the purpose to upkeep the basic amenities.

Contrary to Supreme Court’s decision to provide free housing to mill workers on mill land, state government has denied to provide free housing to mill workers. While discussing with the Mill workers on Mill land issue, CM Prithviraj Chavan has said that “as per the survey reports there are over one lakh mill workers those are eligible for free housing, so it would be impossible to accommodate all mill workers but state could provide only 30,000 at the most. So at end of the meeting state government has cleared that “government will not allot these houses free of cost.”

However in 2001, the Vilasrao Deshmukh government, using a loophole in the Maharashtra Town and Planning Act, 1966, amended DCR 58 to DCR 58 (I), which stated: “Only land that is vacant on mill properties, that is, with no built-up structure, would be divided by the one-third formula.” This was a bonanza for mill owners who now had to part with only a minuscule percentage of the land. However, little activity was seen on the mill lands until 2003.

Apart from this if we observe this issue in the previous year state government had made promises that government will it provide free housing to mill workers. And percentage to be earmarked and handed over for development by MHADA for Public Housing / for mill worker’s housing as per guidelines approved by Government to be shared equally. So, “NTC has handed over about 1,70,000 sq ft of land to MHADA for mill workers’ housing that can be built for almost 2500 workers. Another 1,00,000 sq ft of land has been handed over by NTC to BMC for developing gardens and greener zones” for the betterment of the Mill workers living conditions. But all the promises are standstill there is no progress in those promises. 

Mumbai transport infrastructure projects are estimated to Rs.270,000Cr: CM

Mumbai: On Thursday addressing to gathering in media conclave conducted by the Indian Merchants’ Chamber, CM Prithviraj Chavan said that “MMRDA’s main objective to make Mumbai slum free and provide a smooth road infrastructure.” He added that “the estimated investment of $50 billion (Rs 2,70,000 crore) is based on a comprehensive transportation study conducted by MMRDA. The total cost of the infrastructure projects comprising Mumbai Trans Harbor Link (MTHL), Metrorail, Eastern Freeway Mumbai, Santacruz Chembur Link Road, Navi Mumbai Airport and Monorail, currently undertaken by MMRDA is over Rs 26,000 crore.”

However, 80percent of the undergoing MMRDA projects are based on transportation out of which 450 km in MMRDA region, 250 km in suburban Mumbai and 1700km on road networking.

Whereas, describing on the prominent infrastructure projects of the MMRDA commissioner Rhul Asthana put the light on the following projects;

Metro Line I, II & III: Metro Line is divided in to three phases and cost estimated is Rs. 47000crore. The first phase of the project in he Versova-Andheri-Ghatkopar corridor, is expected to be completed by the 3Q of 2012, at a cost of Rs 2,356 crore. The Metro Line 2, Charkop-Bandra-Mankhurd, which entails an investment of Rs 7,660 crore, has achieved financial closure on March 14. The civil work is expected to begin from October. Metro III is now extended upto airport from Colaba where the entire stretch will be underground and would cost Rs 18,000 crore.

Monorail: Once completed it will be world’s second longest Monorail corridor. Construction began in January 2009, and the first portion of the first line is scheduled to be operational by December 2011. It will cover approx 20km from Wadala to Chembur.

Though Asthan added that “ Railway crossing is the biggest reason behind delaying in both the projects i.e, Metro and Monorail.

MTHL: Mumbai Trans Harbor Link (MTHL) is proposed on 6lane Road Bridge and it will reduce time from 3hours to just 30minutes. And it estimated cost is Rs.10k crore.

Due to the expensive cost bidders MTHL project awarding is postponed to third quarter of 2012 and project will complete till 2017.

Eastern Freeway: The Rs 287-crore Sahar elevated road has received a boost with the MMRDA deciding to rehabilitate 700 persons living in hutments along its route. And it will be completed till December 2011.

Santacruz Chembur Link Road: Santacruz Chembur Link Road is an important arterial road connecting Western Express Highway(WEH) and Eastern Express Highway(EEH). Total length of Santacruz Chembur Link Road is 6.45 km starting from Dr. Hans Bhugra junction on WEH in Santacruz East and running to the East skirting Vidyanagari Campus (Mumbai University at Kalina) on its south and meeting Lal Bahadur Shastri (LBS) Marg after crossing Meethi River Bridge. It will reduce the 10km and 40minutes. This project will 2885 residential and 377 commercial will be resettled. According to officials it will be completed in the 4th Q of 2012.

Navi Mumbai Airport: Navi Mumbai International Airport will support the rapidly growing air travel needs of Mumbai Metropolitan Region. It is expected to absorb annually 10 million passengers in its first operational year 2012, doubling to 20 million by 2020 followed by 30million passengers in 2025 and ultimately 40 million by 2030. The site of airport is located in an area of 2042hectares.

Speaking with reporters CM said “the projects are delaying due to the high density in Mumbai region, and poor transportation is happening due to potholes across the city.” He added that we knows that road contractors are cheating to government and using cheap materials we are seriously looking into this matter and soon will take action against these crooks.    

Civic body v/s builders lobby

State government tightening its grip over realty sector and realtors are hiking prices and it is directly affecting to the common man

State government tightening its grip over realty sector and realtors are hiking prices and it is directly affecting to the common man

This is not any epic story or fairy tales but the real story of the Mumbai’s real estate sector. As from the last several months real estate sector is facing slowdown, on the other hand property prices are increasing day by day and rising housing loan rates are also severely affecting to the property deals. So due to all these reasons property market is falling down and due to high prices affordable housing remains a dream for Aam Admi and government is nowadays adding fuel to it by applying new harsh guidelines for constructing buildings.

So when Subodh Kumar has joined the office as Municipal Commissioner he has delayed the several projects for approval in the aftermath of this, builders turned furious over the state government.
According to builders state govt accountable for delayed projects:

In a media conclave conducted by the Confederation of Indian Industry (CII) builders blamed to the civic-body for delaying approvals of pending projects. “As in current scenario real estate market is facing slowdown from last couple of years and on the other hand government is delaying for approvals” senior official said. He added that ‘we are not in planning to hike prices of properties but the major hurdle is pending projects and reason behind is government even if one is following rules.”

Whereas, several developers said that “if delay in approval continues then in near future may property prices will increase.” Talking about the process of clearances, Lalit Kumar Jain, president of Confederation of Real Estate Developers Association of India said the process involved connecting with more than 150 people in about 40 departments of central and state governments and municipal corporations.

In the conference speakers have raised the several issues which realtors are facing from the government such as pending approvals, FSI hike and many more.

So after this blame when story move forwards and results into the harsh action from the state government it increases the premium rate to 100percent on extra floor space index.

BMC to levy 100% premium on extra FSI:

The Brihan Mumbai Municipal Corporation (BMC) commissioner Subodh kumar has proposed to charge 100 percent premium on realtors who wants extra permissible floor space index (FSI) and will mop up approx Rs. 3000cr per year by charging heavy premium.
Municipal commissioner has said to Chief Minister the proposed norms are for the construction industry. Kumar explained that “developers will be charged 100 percent premium if they required 25% extra FSI more than the approved for residential projects.”

Similarly, when it comes to commercial projects the BMC will permit 15percent extra built-up area whereas it will charge the same heavy premium to it. These additional areas include flower beds, lily ponds, voids, staircases, balconies, car decks and terraces, which at present are not counted in the FSI.

On the other hand developers sell all theses space to the home-buyers illegitimately and surge them to mix-up into their living area.

In the aftermath of this municipal commissioner’s proposal builders have said that by charging 100percent premium will cause to property prices it may go up by approx 30% to 40%. However, senior civic sources debunked the claim, saying there was no correlation between the proposed premium and property prices.

And the battle is not yet over Municipal commissioner has proposed the new guidelines for the building constructions according to him the new norms would be helpful for the realtors as well as home-buyers too.

New guidelines for construction industry to deter irregularities:

Nowadays civic body is tightening its grip over construction industry as recently Municipal commissioner Subodh Kumar has proposed several new norms for constructions of building, such as if developers want additional Floor Space Index(FSI) apart from the permissible FSI so they have to pay 100percent hefty premium. Adding fuel to this Kumar has proposed the new guidelines for the developers, he said that these norms may be anxious for developers but rules will reduce the irregularities in building constructions.

According to the reports Practicing Engineers’, Architects’ Town-planners’ Association (PEATA) former President Manoj Daisaria explained the proposed updates as a “robust move” which would bring about a level-playing field for Realtors. He added that “the proposed guidelines would be the helpful for the developers in the constructions of the modernized buildings.
Sector watchers said that “the proposed guidelines were good, but should not lead to concessions in the mandatory open spaces around a building.”

So municipal commissioner has explained the importance of the norms to chief minister Prithviraj Chavan and he has approved his proposal.

Green signal from CM to BMC for new proposed guidelines

As CM Prithviraj Chavan on fast track has given the green signal for the new proposed guidelines for the constructions of the building by the BMC commissioner Subodh Kumar it may result in the strong opposition from the builders lobby.

According to the proposed guideline by the municipal commissioner developers have to pay the hefty 100percent premium whoever wants to utilize the additional Floor Space Index (FSI) 25percent for residential projects.

As per the senior officials that “the municipal commissioner the new proposed guidelines will help to deter the violations in the constructions of the modern buildings.” So in this Brihan Mumbai Municipal Corporation’s (BMC) robust move CM Prithviraj Chavan said go-ahead in this new introduced norms by BMC commissioner.

Green Buildings need of the hour

From last more than half decade Green Building Process has an upsurge, realtors are taking interest in this process as concern authorities are awarding to the builders with LEED (Leadership in Energy and Environmental Design) Gold Certification. So, this could one of the reasons that attracting to developers towards Green Building Process.
As Green buildings use resources (energy, water, materials, and land) more efficiently and effectively than buildings that are simply built to code. These create healthier working, learning and living environments with more natural light, cleaner air and improvement in occupant health, comfort, and productivity. It also helps in saving money for the owners by reducing operation and maintenance costs and lowering utility bills for instance. Green projects primarily work towards energy saving, water conservation and optimum utilization of natural light. Such structures help combat challenges such as energy costs, water shortage, global warming, etc.
Green Buildings have recently gained prominence amongst developers as well as policy makers. The market potential for green building materials, equipment and services in India is estimated to be $100 billion by 2015. Government authorities are even considering incentives such as granting extra floor space index (FSI), to green projects. In spite of this, not all realtors have adopted green initiatives. This is because they increase the overall cost of the structure by 2-5%; however it must be realized that this cost can almost always be recovered within first year of construction because of the reduction in operational costs incurred by such homes. “At Omkar, it’s our duty to provide healthy living and contribute to the society in the best way possible, we ensure that our constructions are designed as per LEED Green Building specifications” Mr. Amar Tendulkar, Senior V.P. Planning & Design said.
Recently several companies have got the LEED award such as the Pune Marriott Hotel and Convention Centre has been awarded the LEED (Leadership in Energy and Environmental Design) Gold Certification from the Indian Green Building Council (IGBC). The hotel, with its various green initiatives, is the only hotel in Pune and the first Marriott in India to receive the honour. While accepting the award the General Manager of the Pune Marriott Hotel and Convention Centre, Mr Balan Paravantavida quoted “The Pune Marriott Hotel and Convention Centre is truly honoured to have received the LEED Gold Certification. We at the hotel have always gone that extra step to ensure that we are responsible citizens. We look forward to continuing our efforts and contributing towards a greener world.”
On the other hand the U.S. Green Building Council (USGBC) has certified a corporate office building, ‘Godrej Bhavan’ in Mumbai, as a high-performance green building that maximizes operational efficiencies while minimizing environmental impact. The upgraded facility, which is owned by Godrej, one of India’s largest industrial conglomerates, now offers a significantly reduced environmental impact as well as lower energy and operating costs. “We believe it is important to create a LEED-certified workspace because it benefits the environment and the bottom line,” said H N Daruwalla, vice president and business head, Godrej Electricals & Electronics.
This all is an indication that green structures are the need of the hour particularly in metros.

"Realtors are struggling to get the approvals for affordable housing"

 

As Real estate market is facing downturn due to high property prices and increasing interest rates. So due to this crisis affordable housing remains dream for Aam Aadmi. In an exclusive interview with Mr. Lakshman Bhagtani is Joint-Treasurer of Maharashtra Chamber of Housing Industry (MCHI) shares his views on real estate crisis.

Q1. According to the realty experts there are less chances of reducing property prices, what do you say?
A1. There are no chances of getting property rates reduced due to the following reasons:
More than 65% of the existing buildings in the island city and suburbs are under redevelopment.
The unfortunate part in the case of redevelopment is that after the agreements are signed, about 10% of the members/tenants back out in spite of having signed the resolution unanimously of the society in respect of redevelopment.
Now these 10% flats are occupied by them on different floors as such the existing building cannot be demolished in spite of 90 percent members of society and/or tenants having signed the resolution, having signed the agreement with the developer. The plans having been approved, due to such reasons the supply of the land in the market becomes scarcity, therefore I see no changes of reduction in the property prices.

Q2. As per the reports property rates are high and home loan rates too, so it means affordable housing remains a dream for Aam Aadmi in Metros particularly in Mumbai, isn’t it?
A2. It is due to scarcity of land and the scarcity is due to the owners of the property often changes the price looking to the appreciation of the property. The tenants suddenly back out and ask for larger accommodation, free of cost in the vicinity as such the cost of land in the hands of developers is too high. Due to such speedy escalation in the rates of land and the flats which are final product of the land the Aam Aadmi does not think of the affordable housing. It is no more a secret that graduates are staying in slum on rent. The Developers are struggling to get the approvals for affordable housing presuming the developer has land then to there are great amount of hassles, which could be resolved only by the Competent Authority.

Q3. Will real estate market go down as new norms are introduced by state government such as, it essential to produce a building sanction plan and structural safety certificate as a prerequisite to any form of registry? Average of registration of property 100 per day but now 7 to 8 registrations only per day.
A3. With regard to the lesser registration per day, reasons are (i) there are lesser properties available with approvals, (ii) the stamp duty ready reckoner gets revised every year, unfortunately. (iii) The Customer co-relate his purchase timing with the share market, presuming when the share market will go down the rates of real estate will also come down, but he over looks that the share market being speculative, it jumps heavily and suddenly due to the purchase by local and international financial institutions, (iv) The Customer co-relates his buying expecting that the rate of interest of financial institution shall one day come down, which has been a dream, (v) The Customer looks at the eye-catching news that the prices will crash as such is stamp duty, which is 5% shall also come down,

Q4. Will slowdown in International real estate market affect to Indian Real Estate Market?
A4. There is different logic to the demand and supply of respective country. For instance, Dubai has over residential supply but the visa rules are stringent as such hardly anybody is able to settle there forever. For instance USA due to the subprime lending i.e. security of the premises was sold by one institution to another institution and bankruptcy declared by top most financial institution. The mega metro city like Mumbai is facing genuine problem of infrastructure. I shall give you simple example, I have sold building near Worli Sea Face at the rate of Rs.125 per sq. Ft. (carpet area) in the year 1973-74 and the rate today in that building is commanded as high as Rs.45000/- per sq. Ft (built up area).

“CIBIL is defaulters list the very common misconception”

 

The establishment of CIBIL is an effort made by the Government of India and the Reserve Bank of India to improve the functionality and stability of the Indian financial system by containing NPAs while improving credit grantors’ portfolio quality.

“It is very important to understand that CIBIL is not a defaulters list. This is a very common misconception. CIBIL is an information repository of both positive and negative information about the borrower. This includes information pertaining to individuals who are making their payments on time as well as those who are in default” Mr Arun Thukral- Managing Director CIBIL said while talking with this newspaper.

Q1. Once CIBIL (Credit Information Bureau India Limited) added someone into defaulters list then he/she has been banned for life time or for specific period?

It is very important to understand that CIBIL is not a defaulters list. This is a very common misconception. CIBIL is an information repository of both positive and negative information about the borrower. This includes information pertaining to individuals who are making their payments on time as well as those who are in default.

CIBIL does not ban any borrower, neither does it provide any opinion, indication or comment pertaining to whether credit should or should not be granted. The credit grantors who have received an application for credit will make their own credit decision depending on their risk management policies.

Q2. What is the procedure to remove name from defaulters list?

As mentioned earlier CIBIL does not maintain any defaulters list. However, if a borrower is showing negative credit behaviour in the CIR, there are ways to improve his financial standing going forward which would be reflected in his credit history available with lenders on request –

• Always pay your dues on time. Late payments are viewed negatively by lenders

• Keep your balances low. Most lenders review the total outstanding debt of a potential borrower (across all types of accounts) and the amount of debt used in proportion to the amount of debt sanctioned to the borrower by the lender

• Maintain a healthy mix of credit. Your CIBIL CIR should contain a mix of a home loan, auto loan and a couple of credit cards. The more the number of credit cards with high utilization, the larger are the payments resulting from the high interest rate resulting in your ability to service additional debt obligations

• Apply for new credit in moderation. Your ‘Credit Hungry’ behaviour indicates your increasing debt burden

Q3. Where does CIBIL get the information from?

CIBIL collects and maintains records of an individual’s payments pertaining to loans and credit cards. These records are submitted to CIBIL by banks and other lenders, which are members of CIBIL, on a monthly basis. This information is then used to create Credit Information Reports (CIR) which are provided to lenders in order to help evaluate and approve loan applications.

Q4. Is there any individual credit rating possible if and what is the procedure?

Yes. This is called as a Credit Score and it is one of the most common tools for credit lending around the world. It is generated basis the individual’s credit history and is used to determine the specific level of risk associated with the individual.

In India, the CIBIL TransUnion Score is the only implemented generic scoring model, which through advanced analytics assigns a number between 300 and 900 to a borrower, based on his/her credit history. The higher the numerical value of the score, the lower is the risk profile of the individual.

The CIBIL TransUnion scoring model uses various attributes based on credit behaviour information for determining the credit score. And while many of them are proprietary in nature, the majority of the score is made up of the following elements:

• Credit Utilization: how much credit is this consumer using?

• Defaulting: how many accounts are past due – by how many days and by how much?

• Number of inquiries: has this consumer applied for additional credit lines?

• Trade Attributes: How old are this consumer’s lines of credit? What type of credit does he have? Does the consumer have a good mix of credit or is it all credit cards?

Q5. How can an individual consumer access his/her CIBIL Trans-Union Score?

Consumers can now access their CIBIL Trans-Union Score directly from CIBIL.

Consumers can purchase their CIBIL Trans-Union Score along with their CIBIL Credit Information Report (CIR) for Rs.450. The payment can be made by following an online payment procedure or through a Demand Draft. They will have to submit their own identity proof and address proof documents along with the application form and online payment receipt or Demand Draft. Further details on the CIBIL Trans-Union Score for consumers are available on the CIBIL website https://www.cibil.com/d2c

Q6. Individual corporate or non members of CIBIL could access the database of CIBIL?

Individuals and corporates can access their own Credit Information Reports (CIR) from CIBIL.

Credit institutions, which are members of CIBIL, can access credit reports of loan applicants for risk management. CIBIL works on the principle of reciprocity, which means that it will only share the information with its members who share their data with CIBIL, for credit risk management.

Global Real Estate Market is falling

Is Indian Real Estate going to sustain the jolt?

The real estate market has witnessed of global slowdown from last couple of years. Due to Recession, less supply and high interest rate of home loan, homebuyers have lost their faith in real estate market and affordable housing remains a dream for Aam Aadmi.

According to the several sector watchers report, prices of property have fallen down on worldwide level. As per reports US real estate market fell by 3% in the first quarter comparatively previous quarter 1.1%. Property prices are frequently falling from last 57months. Whereas several analysts have showed signs of improving market as prices are down but in some market prices remains stable and market may hit the bottom by the end of the year 2011 and then begin to recover. Though despite all the predictions of analyst Chief Economist Mr. Stan Humpshires believes that prices won’t hit bottom before next year and will fall by another 7% to 9%.

On the other hand in Southwest Florida property market closes with the largest drop and sales dropped to 8,800 units. As far as new listing trends concerns it indicates a 24% decline in the last April 2010.

Downturn in real estate market has affected severely to UK also, as announced projects in 2008-2009 is still languishing. Though according to the fresh reports that prices of units have increased to some extent but yet UK Property market subdued. As there was a minute recovery but sales remains standstill. According to the RICS report that there is 29% fall recorded in house prices and in the month of April house prices declined by 1.4%.

When matter comes to Dubai, if one can’t afford home in Mumbai buy in Dubai. As Dubai’s real estate market is comparatively cheaper than Mumbai. According to the fresh reports prices in Dubai will decrease in the Q1 of FY2012. Dubai is facing downturn in property business due to the massive new supply in the market. As per the survey reports the percentage of supply share of homes in Dubai was about 79 percent apartments and 21 percent villas.          

Approx 25,500 units are likely to be completed by the end of the 2011, so new supply of residential properties in Dubai is expected to slow down by 30% comparatively 2010.

Apart from all these reports or worldwide downturn in property market but Indian real estate market has different story as Indian real estate is booming particularly in North and South India it’s a highly lucrative business. And from last three years Indian Real estate market has grown to 100%. But India is not located on other planet it has to face the downturn sooner or later as the recent reports showing indications of slowdown is ahead like “FDI (Foreign Direct Investment) in India has down by 25 percent in April-February 2011.”