Property prices down

Housing Development Infrastructure on Monday said countries real estate sector is going to witness a 20-25 per cent price fall but the financial capital would be insulated and would see a 10-15 per cent correction.

"There is still supply constraint in Mumbai. Hence, the fall will be in the range of 10-15 per cent, if there is further reduction in demand. But, the remaining part of the country is like to see a 20-25 per cent correction," HDIL's Managing Director Sarang Wadhawan told reporters on the sidelines of the company's Annual General Meeting here.

Wadhawan said that since the industry is cyclic in nature, the current phase of demand recession may be there for two years and then the boom period starts to stay for another five years or vice versa.

The company recorded over 56 per cent rise in net profit for the quarter ended June 30 at Rs 317.93 crore as against Rs 202.68 crore in the corresponding quarter previous fiscal.

It would not be impacted much by the slowdown in realty sector as its operations is mainly confined into the Mumbai metropolitan area.

"The company is confident of executing all the projects on time and continues to register positive growth in the remaining part of the fiscal," Wadhawan said.

HDIL's turnover increased by 28.6 per cent during the first quarter of the current fiscal at Rs 570 crore over the same quarter last fiscal.

The company, he said, is likely to develop projects on 10-12 million square feet area in the city including the Mumbai Airport Slum Rehabilitation Project (MASRP) and is set to spread it wings to Hyderabad and Kochi.

Wadhawan said the first phase of the MASRP has already been kicked off and would be completed in the next one and a half year-two year time. The company has started construction on around 15 mn sq feet of area for rehabilitating around 20,000 families in the first phase.

HDIL also plans to set up a multi-product SEZ at Virar in Thane district.

"We have acquired 2,300 acre of land and are in the process of acquiring additional 200 acre. After that, we will approach to the Government for approval," Wadhwan said.