Real estate NPAs worth Rs 7,000 cr up for sale: Report

Written by fe Bureau | Mumbai | Updated: Jan 1 2014, 23:40pm hrs
Real estateThe real estate market has been reeling under the economic downturn.
An estimated R7,700-crore worth of residential and commercial properties as non-performing assets (NPAs) with banks and financial institutions are up for sale. Maharashtra largely due to Mumbai tops the list on both commercial and residential properties NPAs, according to data compiled by The online portal has total NPA properties worth around R27,500 crore registered from 27,626 units, of which, 2,200 are in the commercial category and nearly 11,000 in the residential segment, it said.

The biggest chunk of NPA properties fall under the industrial land & building category, with a 65% plus share in value terms. State-wise, Maharashtra tops the list of most number of NPAs, with 563 units worth R842 crore in commercial properties and 2,492 units worth R838 crore in residential properties, said. Delhi comes next with R686-crore worth of NPA commercial and NPA residential properties worth R500 crore.

Andhra Pradesh comes at number three in the residential properties ranking with R497 crore worth of space up for sale under NPA properties to be auctioned by banks and financial institutions. Tamil Nadu, West Bengal and Uttar Pradesh are the next three states, with highest value of commercial and residential NPA properties, said DK Jain, CMD of Atishya Technologies, which owns

The real estate market has been reeling under the economic downturn and according to a report by property consultant Cushman and Wakefield, the number of residential launches dropped by about 12% this year from 2012. An estimated 1,72,500 apartment units were launched this year in eight major cities Mumbai, NCR, Bangalore, Chennai, Hyderabad, Kolkata, Ahmedabad and Pune compared with about 1,96,846 units in 2012.

Large commercial space that were leased out dipped sharply in the September quarter; while Delhi saw a drop of 91% sequentially and 66% over the March quarter. The trend in Mumbai was only slightly better the fall was 50% sequentially and 62% over the January-March period, the report noted.