REAL ESTATE TURBULENCE AT HOME AND ABROAD
Goa realtors in deep trouble
Preetu Nair | TNN
Panaji: Property prices in Goa are expected to crash by 20% to 25%, even as markets elsewhere have taken a dive. Real estate developers in the state forecast a slump after a phenomenal rise in rates over the past three years.
Michael Lobo, director of Goa’s property and building trade magazine, Homes and Estates, said, “Apartment rates are on the decline as there are no buyers.”
“The market has been stagnant for the last three months. Goa has seen an increase in construction and now the supply far exceeds the demand,” said Robin Alexander from Goa Property Consultancy, Panaji.
“Small time builders are already facing the heat with investors and speculators doing the vanishing act. They are trying to sell their projects to big builders,” said Victor Albuquerque, chairman of Alcon Victor Group.
Sources said a few banks have turned down loans to builders. “Safety is paramount for any financial investment, but with the agitational atmosphere everyone is concerned. A builder who has borrowings or one reaching the completion stage will find it difficult as there is a fund squeeze. The interest rate is increasing and lenders are looking at quality borrowers and real estate is not a priority,” said Dinar Tarcar managing director of Groupé Landscape and executive member Confederation of Real Estate Development Association of India.
October 3, 2008, The Times of India, Goa edition (FP)
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Goa government has recently stated that no lands within the industrial estates owned by Goa Industrial Development Corporation (GIDC) should be allotted or leased for establishing special economic zones (SEZs). In a written reply tabled on the floor of the house, chief minister Digamber Kamat said that if any land has been leased, the lease should be immediately revoked or cancelled. The state-government run GIDC had earlier issued show cause notice to revoke lands to seven SEZ promoters, which were later revoked forcing the state developers to approach the High Court.For more view- realtydigest.blogspot.com
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