India Inc. at Digital Inspiration

Real estate sector scenario in India – slowdown is the buzz word

Posted: 02 Apr 2008 12:31 PM CDT

The unending euphoria of real estate sector in India witnessed during the last few years is finally starting showing signs of ebbing. The talks of new malls, complexes, residential projects being built are all now being kept under bags.

There is an overall slowdown in demand across India as has been experienced by industry players. Property prices and rentals are correcting which have led to the erosion in market capitalisation of many listed players like DLF and Unitech.

The slowdown is aided by the fall in stock markets as wealth creation does not happen and there is lack of capital among investors to invest in real estate projects. Also, to adjust their share market losses, many investors are forced to sell off their real estate properties.

Other factors that have led to the slowdown is the increase in interest rates leading to higher costs. Also income levels have not risen in proportion to the increase in property prices thus forcing many potential buyers out of the market.

Also with rising input costs of steel, iron and building material, it has become unviable for builders to construct properties at agreed prices. As a result, there may be a delay in project completion leading to financial constraints.

Many residential buyers are waiting a price correction before buying a property, which can affect development plans of builders.

Also with IT industry continuously experiencing a slowdown, there may be further constraints on residential as well as commercial demand since IT/ITES segment accounts for 70% of the total commercial demand.

So real estate players may continue to face liquidity concerns in future due to rising costs and unfavourable stock market conditions for further capital raising.

Only those players who have achieved substantial revenues from past deals could expect to rise against the tide. But the scenario may get worsen if the upcoming properties are not sold off as it may lead to a financial crisis in the property market.

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Another business news channel coming to dethrone CNBC-TV18

Posted: 02 Apr 2008 11:32 AM CDT

UTV ABC UTV has announced the launch of its new business channel UTVi which is expected to hit the air in a month.

And continuing its partnership with Disney, UTV has also tied up with Disney-ABC International Television (Asia Pacific), the international TV distribution arm of The Walt Disney Company, for programming and services.

Till date CNBC-TV18 holds 80% market share in English business news space with the rest being shared by NDTV Profit. So there is lot of potential for new entrants due to lack of healthy competition.

UTVi claims to report in simple business terms and cover all business areas much more than shares and stocks.

This gives us an excellent opportunity to provide our reporting to the people of South Asia as well as to enhance our coverage of news in the region.

The collaboration with ABC News offers UTVi audiences a global perspective and international programming.

The partnership with ABC will help it to get international perspective as well as get hold of quality content. UTVi will also air ABC's shows such as 'World News' and 'Good Morning America'.

ABC will provide news from US and it would get news and analysis from Indian markets. It will also get its presence felt in South Asian markets to widen its reach.

The deal marks entry of another global news channel into the market. Earlier TV18 was the first to partner CNBC while NDTV has inked a deal with NBC.

Another business news channel coming to dethrone CNBC-TV18 - Digital Inspiration | FAQ | RSS