Similarly, Pune-based ABIL Group bought into projects in Mumbai and also done 3 joint ventures in the recent past. Apart from the JV with DB Realty and Radius for Bandra Project, it has done JVs with Sumer Group in the Santacruz and Mazgaon areas of Mumbai.
@Pravakar, In the past 2 yrs, they have come across many such opportunities, where developers were not able to raise fund or do a JV with other developers. If the market does not improve, I think such opportunities will increase.
Right shantanu, As per Real estate experts, slowdown has opened new ways for these developers. While the property market here has been avoiding by affordability issues, in Delhi supply is far better than demand.
The slowdown has been particularly hard for developers because demand has dried not only from buyers but also from investors. Investors, who typically account for half of the market, have started cashing out as they see no benefit in staying invested in a market where prices are motionless.
Ceear Realty, set up by Cherag Ramakrishnan, former chief executive of Essar Group's realty arm, Equinox Realty, has taken over one such project in the Bhandup area of Mumbai, which has a salable area of 100000 sq-ft. But the company was currently ignoring 3-4 such deals in Bengaluru and Mumbai.
Hi Anthony, And such opportunities have definitely increased in the 2nd half of this year. The stress of 2 yrs. is showing now and developers want to get lighter. Earlier, they were thinking, but there was mismatch in valuations. Now, the bridge is happening slowly and slowly.
It is true Sashidharan, Developers after realizing stressed opportunities in slow property market are looking for joint venture over the projects of developers who are thirsted for cash. Recently, Godrej Properties and Tata Housing have been doing such JVs. But remembered these are big players in the real estate market. Now, it is turn of the newcomers.
Yes, inquiries from stressed developers had increased 50 to 60% this year compared to 2-3 yrs. ago. They can buy only in unfavorable times. In times of boom, they can not buy.