For the majority of Serbian citizens, buying an apartment is an elusive goal. With an average salary of 400 euros, customers are barely lying awake at night deciding which loan to choose. It is rather more often the case of which lender will even consider their application.

“They are not expensive housing loans due to high interest rates; [it is] because of the obscene price per square meter,” Association of Serbian Banks general secretary Veroljub Dugalic told SETimes.

Per square meter, the average cost of an apartment in Belgrade is 2,000 euros. For an apartment offering 70 square meters, a 20-year loan installments without interest — is over 500 euros per month.

“We need an apartment, but my wife and I do not dare take [a loan] because the euro is more expensive in Serbia,” Darko Lakitic of Belgrade told SETimes. He is a young doctor, with a monthly salary of 550 euros.

Interest rates on housing loans in the euro range are between 4% – 8% annually, while the banks argue that there are no conditions to lower them. Loans in local currency are available through the Societe Generale Bank, but the interest rate is 17.63%.

Serbia lacks 20,000 to 30,000 new apartments per year, but builds less than 10,000. Minister for Planning, Environment and Mining Oliver Dulic has described the situation as disastrous for the construction and building materials industry. He blames this lack of residential construction on the National Bank of Serbia, which has tightened lending, forcing buyers to put 20% down of the total amount of loan in cash, rather than 10% as before.

“The sale of apartments has been reduced by nearly 30%,” Dulic told SETimes.

Since the middle of last year, the number of commercial mortgage loans approved has plunged by 15.3%. Before this credit crunch, about 1,000 apartments were selling per year in small towns. In contrast, across all of Serbia last year, there were only about 2,000 contracts.

To help the construction industry, the government adopted a decree on relief for the purchase of subsidised housing, offering a lower interest rate to everyone, including couples over the age of 45. Before, only 20-year mortgages were available. Now, 30-year terms are available.

“While property prices in the world fell more than 50% because of the crisis, in Serbia, despite falling sales, vendors do not want to give up their profits,” economic analyst Radojka Nikolic told SETimes.

Comparisons show that in Zagreb and Ljubljana, the average salary requires a potential homeowner to work ten years to buy an apartment of 60 square meters. In Serbia, that same person would take 20 years.

Apartment sales are off in Croatia as well, but for a different reason, a glut of available homes. There are nearly 50,000 dwellings built, for which there are no customers. Croatia enjoyed a construction boom in recent years, but the economic crisis took a toll on customers’ savings. So in the last three years, prices have skidded more than 15%, and it is estimated that they will fall further over the next five years. In Zagreb, the price per square meter has dropped from 2,050 euros to 1,750.

EU membership in 2013 may attract some buyers, but not enough. “It will be interested foreigners, but they certainly will not buy all the apartments that are now empty and losing value,” Vjekoslav Dolac, a construction company owner from Dubrovnik, told SETimes.

In Montenegro, apartment sales are virtually flat. Prices are lower by up to 30%, compared to the “golden” year of 2007, when a wave of Russian buyers swooped in. Five years later, there are no more foreign buyers, and for locals, the prices are too high.

The government initiated a campaign “1.000 plus” to address the housing problems of young people, but interest has been low. The number of new apartments sold is down by more than 60%. Buyers simply don’t have the money, even for an average price of 1,200 euros per square meter.

“We’re selling an apartment of 68 square meters for 70,000 euros, but haven’t had a customer in nine months,” Podgorica resident Smiljana Dedic told SETimes. Her family bought their home four years ago for 83,000 euros, but is forced to sell it now because Dedic lost her job.

SPRINGFIELD, Ill. — According to the Illinois Association of Realtors’ (IAR) fourth-quarter 2011 report, Illinois home sales (single family and condominiums) totaled 25,394, up 14.8 percent from 22,114 home sales in the fourth quarter of 2010. The 4Q11 statewide median home sales price was $128,000, down 10.8 percent from $143,500 in 4Q10. The median is a typical market price where half the homes sold for more, half sold for less.

“For homebuyers who are feeling confident enough to re-enter the housing market, this data shows there is great opportunity for them,” said Loretta Alonzo, CRB, GRI, president of the IAR and broker-owner of Century 21 Alonzo & Associates in La Grange Park. “Growing optimism about the economy and low interest rates generated a lot of interest in real estate in the final part of the year.”

The 4Q11 interest rate for 30-year, fixed-rate mortgages averaged 4 percent in the North Central Region, according to the Federal Home Loan Mortgage Corporation. It was down from 4.31 percent in the third quarter and also down from 4.44 percent a year ago in 4Q10.

“Looking forward, there is the likelihood that there will be year-over-year sales gains in the state through the first quarter of 2012,” said Dr. Geoffrey J.D. Hewings, director of the Regional Economics Applications Laboratory (REAL) of the University of Illinois. “While we are seeing the time on market for homes decline to less than 10 months, the large foreclosure inventory could create some challenges in the housing market this year.”

In the Chicagoland Primary Metropolitan Statistical Area (PMSA) total home sales (single-family and condominiums) were up 20.4 percent in 4Q11 to 17,321 homes sold compared to 14,392 home sales in 4Q10. The region’s 4Q11 median price was $148,300, down 14 percent from $172,500 in 4Q10.

In the city of Chicago, total home sales (single-family and condominiums) in 4Q11 were up 11.1 percent to 4,225 sales compared to 3,804 sales in 4Q10. The city of Chicago median price was $159,999, down 8.6 percent from $175,000 in 4Q10.

“Chicago continues to show an absorption of properties in the market by aggressive buyers seeking great opportunities to purchase now,” said Realtor Bob Floss, president of the Chicago Association of Realtors and broker-owner of Bob Floss and Son Realty. “The decrease in median price and increase in units sold continues to show the downward pressure distressed sales still have on property values across the city. With interest rates at historic lows, and sellers and buyers looking to make real deals close, 2012 remains an excellent time for first-time, right-size buyers, or investors to get off the fence and make long-term investments in real estate.”

Sixty-one of 98 Illinois counties reporting showed year-over-year home sales increases in 4Q11. Forty-five of 98 counties reported median price increases during the period, including Coles, up 32.6 percent to $90,200; Kankakee, up 8.6 percent to $115,000; Madison, up 1.4 percent to $106,500; Menard, up 39.3 percent to $139,300; Monroe, up 2.1 percent to $165,000; and Whiteside, up 12.5 percent to $85,500.

Sales and price information is generated from a survey of Multiple Listing Service sales reported by 31 participating Illinois Realtor local boards and associations, including Midwest Real Estate Data LLC data as of Jan. 7, 2012, reported for the period Oct. 1-Dec. 31, 2011. The Chicagoland PMSA, as defined by the U.S. Census Bureau, includes the counties of Cook, DeKalb, DuPage, Grundy, Kane, Kendall, Lake, McHenry and Will.

Aldar Properties said on Monday its board will meet this week to talk about asset sales as the Abu Dhabi-developer, bailed out once by the government in 2011, struggles with a property downturn.

Aldar, part owned by the government, said the board will meet Wednesday to consider the sale by the company of certain of its assets as well as other operational matters.

The developer has already sold assets to the Abu Dhabi government, including its Ferrari World theme park and the Yas Marina Formula One circuit.
Abu Dhabi bailed Aldar out in January with a $5.2 billion rescue package in exchange for 2.8 billion dirham ($762 million) in convertible bonds to Mubadala and the sale of properties. Mubadala converted a portion of its bonds earlier this month.

In January, Aldar said it would sell assets worth $1.49 billion to the government to meet debt obligations.

It did not name any specific assets allow for sale but analysts have said these could include properties such as the ‘Yas Hotel’ and some commercial and retail developments under construction.

Aldar shares were down 1.18 % on the Abu Dhabi exchange.

Because of the rupee continues to fight a losing battle against the greenbuck, realty-sector is bucking up on a new trend.

Indians living overseas are now looking back home for some moneymaking gains as the currency market throws up good investment options. 28-year old Kabir Batra is living the great Indian dream in America, a secure job at Siemens, sufficient savings and now it is time for making future investing. And during his holiday trip to Delhi he spotted the right chance in Dwarka.

“I wanted to make a good investment in reality sector but last year I didn’t have enough funds, and this time it is a blessing in disguise as because of depreciating rupee, I am getting deals which are 20 per cent cheaper from last year,” said Kabeer Batra, a NRI.

And as the rupee continues to fight a losing battle against the greenbuck, realty sector is bucking up on a new trend.

“The main demand is coming from Dubai and interestingly new markets like South Africa are also witnessing a new change. Of course traditional markets like US and UK continue to generate demand front the NRI community,” said Anuj Puri, chairman of JLL.

Given that the rupee dollar price equality has resulted in at least 20-25 per cent discount on the project, developers are willing to extend further discount of 10-15 per cent to boost their sales. Many are participating in abroad road shows and have their bets on rupee-weakening further.

“We are looking at Dubai road show to get more sales from the NRI community which is abruptly in action owing to weakening rupee,” said Bandish Ajmera, chairman property exhibition at MCHI.

And while investors like Kabir continue to look for future investments here there is no-denying that for these developers weakening rupee is actually a gaining-strength.

HARRISON COUNTY – Drive anyplace on Highway 90 in Harrison County and you’re bound to see them. Sale-signs are posted on vacant lots up and down the beach-front highway.

A still dull economy and the high cost of post-Katrina insurance have both contributed to an copiousness of beach front property now on the market.

“With the taxes and the insurance, on top of the construction expenses to build up or set back, it’s made it almost infeasible to be able to build back on residential lots on Highway 90. It’s really, very costly. You’re going to have to have deep-pockets to do it,” said Windy Swetman.

Harrison County Supervisor Windy Swetman is also a residential-developer who keeps close tabs on the real estate industry. He says such lots have always been premium property, but elements like the storm and recession are having a detectable impact.

“They’ve always been high-dollar. The difference right at the present is that you have a higher premium on insurance that you’re paying and the recession. So, you’re in a recession, you have higher insurance, the taxes are even there at a high rate for them,” said Swetman.

“What I anticipate happening is the property along Highway 90, for the majority part, is going to become commercial over the next few years,” says Jerry Creel, the community development director for the City of Biloxi.

He says projects like the new McElroy’s will draw other development along the waterfront.

“Right now, we’re in discussions with eight hotels, six restaurants that all desire to situate along the beach. Just the discussion stage right now, but we’ll make some proclamation as those come to fruition,” said Creel.

He says tax credit programs that pardon property taxes for up to seven years are also an incentive for new development.

Needs to realise roughly Rs 3,000 crore to keep to debt decrease target for current financial year.

India’s largest developer by market capitalization, DLF Ltd, is banking on at least two to three big ticket sales in early 2012, to stay to its debt reduction target for the current financial year. The developer needs to realise Rs 3,000 crore to Rs 3,500 crore from noncore asset sales, to attain its 2011-12 goals.

Although the company is still far from the divestment figure it had set, Rajeev Talwar, executive director sounded sure about making it on time. He told Business Standard the developer was expecting a couple of big ticket sales before the current financial year closes.

Besides the much talked Aman-Resorts deal, DLF is looking at a transaction to offload stake in its Pune IT Special Economic Zone (SEZ), sometime early next calendar year, Talwar said. Another deal to sell stake in the Noida IT-SEZ is also in the offing. According to analysts, these three deals could fetch DLF Rs 3,300 crore.

“The Aman hotel sale is only at arm’s-length, but would not conclude this calendar-year. Early next year looks more likely,” said Talwar. The stake sale in Aman will exclude the Delhi hotel (earlier named Lodhi). Analysts said the Aman Resorts sale could be a projected Rs 2,000 crore deal. The Pune-SEZ deal could be worth Rs 900 crore and the stake sale in Noida SEZ could fetch the company between Rs 400 crore and Rs 450 crore.

The company may seem at selling the un-built land of DLF Hotels and Hospitality Ltd (DHHL), again as part of its noncore divestment strategy. “We will try to get the maximum valuation of the sale,” he said.

Earlier this week, DLF acquired an additional 26 per cent stake in its joint venture DLF Hotel Holdings Ltd (DHHL), from Aro Participation Ltd and Splendid Property Company, affiliates of Hilton International, for Rs 120 crore. The joint venture has one Hilton hotel, in Delhi.

Another divestment DLF has initiated is in Galaxy-Mercantile, a JV between DLF Home Developers Ltd and Infrastructure Development Finance Company. Four days ago, DLF announced signing an agreement to divest its entire stake in Galaxy-Mercantile. Galaxy will buy the entire DLF stake in the project for Rs 450 crore over the next 12 to 18 months. DLF has already received the first share of Rs 200 crore from this deal. The balance payment has been linked to various leasing milestones.

As for the SEZ-projects in Pune and Noida, DLF holds 70 per cent in both. The Pune SEZ is a joint venture with Ackruti City. According to Talwar, the company is in talks with Indian and foreign companies to sell its stake in the Pune SEZ. The industry buzz is that international private equity Major Blackstone will buy into DLF’s Pune SEZ. The Noida SEZ asset is a JV with another real estate company, 3C.

In the case of Aman hotels, DLF has got the final-bids from four or five companies. Khazanah, Malaysian government’s wealth fund, is being seen as the most possible buyer. Other prominent bidders include Kingdom Holdings, the company which owns the Four Seasons Hotel, and a Chinese hospitality group, it is learnt.

DLF’s net debt stood at Rs 22,519 crore as the half end of September. It aims to bring down debt to Rs 19,000 crore to Rs 19,500 crore by the end of this financial year, and to Rs 10,000 crore by 2013, through sale of noncore assets.

New home sales rose a bit in October, but the level of demand is historically very weak because of high-unemployment in the U.S. and competition from cheaper existing homes.

Sales increased by 1.3% to a seasonally adjusted annual-rate of 307,000 from a downwardly revised speed of 303,000 in September, the Commerce Department said.

Economists surveyed by Dow Jones Newswires had estimate sales would slip by 0.3% to an annual-rate of 312,000.

The average price in October for a new home was $212,300, higher than the level of $204,200 a year earlier and as yet down from the month earlier.

Uncertainty in the direction of home prices can give would-be buyers second thoughts, with some of them waiting for a better deal. Owners who want to sell, on the other hand, tend to take their property off the market until prices steady a trend that adds to inventory in the future and depresses-prices further.

New homes are, generally, more expensive than previously owned property. People have been particularly attracted to foreclosed homes because of the low-price tags.

New-home sales amount to about a quarter of their peak before the bubble began deflating around five years ago. Sales are way below healthy levels, considered to be an annual rate of around 750,000.

Year over year, new-home-sales were 8.9% above the October 2010 level.

Because many people have much of their net worth tied up in their homes, the bursting of the price bubble made consumers feel less wealthy and discouraged spending. The economy slouches from late 2007 to mid 2009. It has been trying to retrieve strongly but unemployment stays high.

For the housing sector to recover, the economy needs to create more jobs and housing prices must steady. But economists think prices will keep falling because the foreclosure-pipeline is long. Falling prices pull more homes “underwater,” which mean the owners owe more on their mortgages than the property is worth. That leads to more foreclosures and lower prices.

With builders pessimistic, the no of new-homes listed for sale at the end of October was 162,000, which is historically low. That supply would take 6.3 months to reduce at the current sales speed and is around a healthy-level. The supply in September was 6.4 months.

The Commerce statement said October new home sales were mixed. New home Sales rose 14.9% in the West and 22.2% in the Midwest. Sales were flat in the Northeast and fell 9.5% in the South.

Washington is getting ready to sell off state assets to increase painfully required revenue, a yard sale of sorts favored by both Democrats and Republicans.

Items up for tender contain an island, an airstrip, vehicles, roads, buildings, land even the airwaves used to broadcast television, the New York Times reports.

Some properties might require some tender loving concern, but with a little love and some strong chemicals a house once belonging to the Animal Disease Center can become a loving home.

Republicans like privatization because it shrinks the government.

Democrats wish it for raise income painlessly.

“This is something that we can have two-way contract on,” says Representative Jeff Denham, R-Cal.

Close to $20 billion could come from vacant airwaves, and $4 billion from disembarrassing government entities of belongingness they don’t necessitate and help narrow deficits.

A congressional super committee is musing ways to shave $1.2 trillion off U.S. deficits over 10 years.

President Barack Obama, at the same time, is calling for $1.5 trillion in new incomes that accompanies his $447 billion jobs creation plan, which trusts heavily on slashing payroll taxes.

An unemployment rate stays high, and some say the country wants to get used to high joblessness, which won’t come down much for another two years.

“Growth stays sluggish and deficient to cut down the unemployment rate,” Ryan Sweet, an economist at Moody’s Analytics, says in a message to clients, the Associated Press reports.

CEOs at big companies are more unenthusiastic than they were just three months ago, according to a survey by the Business Roundtable, a trade group.

About one third of the CEOs say they plan to take on or improve spending in the next six months, down from half in June, the survey finds, the AP adds.

Real Estate Company Sobha Developers today tell it will invest Rs 250 crore to develop its property in Chennai.

“We will be launching in new areas. We will be launching in Chennai, whereas the property will be spread over 1 millionsq ft. The investment cost for this is Rs 250 crore,” Sobha Developers Managing Director J C Sharma told the media on the sidelines of the Real Estate Investment Forum and Business Spaces 2011.

On the company’s income, he said, “We are expecting Rs 1,500 crore values of new space sales (in the current fiscal) from Rs 1,100 crore last year.”

The firm registered a net profit of Rs 182 crore in FY’11, a raise of 32.85%from Rs 137 crore posted in the year ago period of time.

Sobha sold 2.78 million square feet in FY’11 as against 2.08 million square feet in the year since period of time.

The Bangalore based company said its whole debt stood at Rs 1,300 crore and it will repay close to 35% of the same this year. “Our total debt is Rs 1,300 crore. In FY’ 12, we have to repay Rs 450 crore.”

The debt to equity ratio of the company is 0.65:1, the greatest it has ever had, Sharma said.

Asked how the company will finance the debt repayment, Sharma said all the needed requirements were made to fulfill its obligations.

DLF surged 8.23% to Rs. 216.90 on BSE on information that the company has sold 10.8 acres in Gurgaon as part of its efforts to reduce the debt burden.

In the meantime, the BSE Sensex was temporarily up 472.80 points, or 2.95%, to 16,523.90.

On BSE, 17.36 lakh shares were traded the counter as against average volume of 12.43 lakh shares above the past one quarter.

The stock hit a high of Rs. 218.45 and a low of Rs. 205 so far throughout the day. The stock hit a 52-week high of Rs. 397.35 on 4 October 2010. The stock strike a 52-week low of Rs. 173.40 on 17 August 2011.

The large-cap stock had outperformed the market above the past one month till 26 September 2011, gaining 13.96% compared with the Sensex’s return of 1.28%. The scrip had also outperformed the market in past one quarter, going down 7.44% as against 12% decline in the Sensex.

The country’s biggest real estate solid in terms of market capitalization has equity capital of Rs. 339.60 crore. Face value per share is Rs. 2.

DLF has allegedly sold 10.8 acres in Gurgaon to a Dubai-based Indian investor for Rs. 280 crore.

The company is also in talks with other investors to sell another 20 acres in Gurgaon, which is projected to fetch around Rs. 400 crore.

DLF’s debt stood at Rs. 21524 crore as on 30 June 2011. The company plans to decrease this by Rs. 7000 crore this fiscal, reports added.

On an amalgamated basis, DLF’s net profit fell 12.8% to Rs. 358.36 crore on 20.6% raise in net sales to Rs. 2445.82 crore in Q1 June 2011 over Q1 June 2010.

Tags: DlF land sale, real estate, Real Estate Market, share investment