Tuesday, July 24, 2012
Real estate prices in Mumbai unlikely to fall: Oberoi
MUMBAI: Real estate prices in Mumbai are unlikely to fall due to limited supply, a leading real estate developer said today.
"All input costs and raw material costs are going up and supply is constrained due to lack of approvals. Unless supply increases, the real estate prices in the city are unlikely to fall," chairman and managing director of Oberoi Realty, Vikas Oberoi told reporters here.
The company has a portfolio of 35 completed projects across Mumbai with about 20 mn sq ft to be developed in the near future, he said.
The company is confident of launching its Worli and Mulund projects in Mumbai in FY13.
Oberoi pointed out that following the court order, the company is now 100 percent owner of the Worli property and it is awaiting Commissioner's approval. The company is also developing 3 million sq ft project at Mulund, he said.
The company has recorded consolidated revenue of Rs 230.79 crore for Q1FY13 as against Rs 215.07 crore for Q1FY12, a growth of 7.31 percent.
The consolidated profit after tax for Q1FY13 declined by 4.90 percent at Rs 100.80 crore as against Rs 105.77 crore for Q1FY12.
The company said that Oberoi Mall contributed Rs 19.85 crore to the revenue for the Q1FY13, its commercial project Commerz contributed Rs 11.26 crore while the Westin Mumbai Garden City accounted for Rs 22 crore of revenue.
"Our results for the first quarter of this fiscal have been satisfactory in the light of the challenging global environment and the domestic macroeconomic headwinds. Our business continues to generate healthy cash flows from operations and we have managed to maintain strong order book," he said.
Courtesy: Economic Times