A 2017 Festive Season Primer For Homebuyers

Anuj Puri, Chairman – Anarock Property Consultants

The year 2017 has not exactly lived up to the expectations of the residential property sector. RERA has been deployed, but as of today, only 18 states and 7 Union territories have notified RERA, while 10 states are yet to notify it.

While RERA has certainly already made its expected effects felt in states like Maharashtra – which includes very important markets like Mumbai and Pune – it has not yet extended its full influence over parts of the country where RERA it is probably needed the most.

Though Haryana and UP have notified RERA, they are yet to set up the portal via which developers can upload their applications for registration of their projects. The web portal is also critical for buyers, as this is where they can check the details of projects. Also, these two states have come under heavy criticism for diluting the Centre’s RERA norms.

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The Enduring Pull Of The Southern Parts Of Cities

Anuj Puri, Chairman – Anarock Property Consultants

Be it South Delhi, South Mumbai, South Chennai, South Kolkata or South Bangalore – the Southern parts of any metro city have always ranked at the top of that city’s property pyramid.

These precincts are generally seen as the most prime and posh residential destinations and have historically housed the Who’s Who of the city.

If one wants to announce oneself or one’s business socially, buying a home or opening an office in these parts has always been seen as a pretty good bet.

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Focus On Safety Measures In High-Rise Buildings

Anuj Puri, Chairman – Anarock Property Consultants

With several property developers in Delhi-NCR and elsewhere developing skyscrapers of 150-250 metres and more, an increasingly pressing question being asked by property buyers is whether they safe.

This is obvious and natural, given the increasing incidence of fires, earthquakes and building collapses that the media throws at us fairly regularly. Let us take a closer look at this.

As opposed to the scenario seen in more developed countries, there are still various problems with implementing strict norms for the structural safety and fire safety for high-rise buildings in India. In fact, as we have seen in a recent case of a residential tower in London, this can present a challenge even in such global cities.

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10 Hot Residential Property Investment Destinations In India

Anuj Puri, Chairman – Anarock Property Consultants

As India’s urbanization picks up speed, the traditionally-preferred property investment locations in most of the main cities are getting saturated and increasingly expensive.

This is having a roll-on effect on many other residential sub-markets across leading Indian cities. Even as more and more locations go out of the reach of a certain cross-segment of buyers that preferred it in the preceding years, other emerging areas come to the rescue.

Moreover, with the expansion of business districts and different office space occupier categories preferring newer business precincts to older ones, certain residential sub-markets in the primary cities have been finding favour from an increasing number of buyers – and, consequently, property investors.

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Pune’s Residential Sales Stable; Mumbai Close To 1H16 Sales Numbers

  • Increased affordability, end-user market helped Pune’s residential market remain largely unaffected by demonetisation
  • Mumbai came close to 1H16 numbers thanks to good traction in the ‘compact homes’ category

Anuj Puri, Chairman – Anarock Property Consultants

Pune’s residential market seems to seems to have seen very little impact of demonetization if the 1H17 sales figures are anything to go by.

Although the city’s apartment sales had remained steady even in 2H16 when demonetization had affected most other markets, Pune’s sales showed a slight improvement as they rose by 4% (y-o-y) in 1H17.

With this development, Pune’s residential market has become India’s most dependable and established one.

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Rental Reforms Redefine The Indian Real Estate Sector

High time to fully explore and unbox its massive potential

Anuj Puri, Chairman – Anarock Property Consultants

Several breakthrough reforms with pertinence to the Indian real estate sector saw the light of the day over the last one year.

Be it demonetization – the Government’s ‘surgical strike’ against black money – the revolutionary RERA or the unified tax regime of GST – all bore the power of rendering the Indian real estate sector more transparent and professional.

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Residential Realty Poised For Revival In Festive Season 2017

Anuj Puri, Chairman – Anarock Property Consultants

Every year, the end of August ushers in the beginning of festive season in India.

Religious sentiments lead innumerable Indians to plan important purchases and investments – including real estate – during this period.

Naturally, developers also plan for these months well ahead of their arrival with a view to cash in on this positive sentiment.

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Affordable Housing Steals The Show In 2017

Anuj Puri, Chairman – Anarock Property Consultants

After recognizing a massive gap of housing in India, the Union government had announced ‘Housing for All’ by 2022 in July 2015 to achieve the staggering target of bridging a gap of more 1.9 crore houses. 96% out of these are required for the Lower Income Groups (LIG) and Economically Weaker Sections (EWS) groups.

In India, while the population is growing at more than 2.1% every year and may touch 1.51 billion by 2030, growth in housing has been unable to keep the same pace. The Central and States governments are now contemplating many ways and means to provide access to housing for all.

Affordable housing will not only fill the housing gap but be the next major economic growth driver by creating more than 2 million jobs during the period till 2022. To fill the massive gap of affordable housing in India, the government has come up with a spate of many initiatives:

  • To encourage the PPP (Public Private Partnerships) module which can amplify affordable housing, the Union Budget 2016-17 announced that developers would be exempt from paying tax on profits in this segment for five years starting 2016
  • The Government has increased the time limit to complete affordable housing projects from 3 to 5 years. Now, developers will have more time to complete affordable projects
  • The Central Government has raised the budget allocation under Pradhan Mantri Awaas Yojana from INR 15,000 crore in 2016-17 to INR 23,000 crore in 2017-18
  • The National Housing Bank, which is a subsidiary of RBI, has announced that it will refinance individual housing loans worth INR 20,000 crore in 2017-18
  • Affordable housing was given the vital infrastructure status in the union Budget 2017-18. Now, developers will have diverse and cheaper sources of funding, including External Commercial Borrowings (ECBs)

Financial Support and Subsidies

To promote affordable housing, the Government has announced several financial schemes to make housing loans in this segment cheaper:

  • A 6.5% subsidy on interest on housing loans up to INR 6 lakh can be availed for 15 years
  • Government assistance of INR 1.5 lakh is extended for each beneficiary under EWS & LIG
  • A 4% and 3% subsidy on interest for loan amounts of INR 9 lakh and INR 12 lakh respectively
  • The Government is mulling the waiving Stamp Duty charges and reducing their impact
  • The middle-income group (MIG) of buyers with annual incomes above INR 6 lakh to INR 18 lakh is also included in the interest subsidy

Affordable Housing Price Segment Dominated Residential Supply in H1 2017

Source: Anarock Research

The affordable price segment dominated the residential units supply in H1 2017. The recent new launches trend shows that demand for affordable housing with ticket sizes in the range from INR 5 lakh to INR 40 lakh is continuously growing.

During the 1st half of 2017, the top cities (Bangalore, Chennai, Hyderabad, Mumbai, Delhi-NCR, Pune and Kolkata) recorded more than 60% of total residential units supply in the affordable segment.

The majority of projects in the affordable housing segment were launched in the peripheral boundaries of the top cities, largely due to non-availability of contiguous land parcels for large-scale mass housing developments and skyrocketing property prices in the central locations of our cities.

In H1 2017, the share of the affordable housing segment in new launch supply increased by 16% over the 2nd half of Year 2016. On the other hand, the mid and luxury segments witnessed a decrease of 4% and 9% percent respectively in the same duration.

A ‘Crash’ Course On Building Collapses

Anuj Puri, Chairman – ANAROCK Property Consultants

Over the last few years, there have been continuous incidents of collapsing old constructions in India.

As per data shared by the National Crime Record Bureau (NCRB), more than 14,000 people have died from 2010 to 2015 due to dilapidated building collapses. At an average, 2,700 people lose their lives in different structural breakdowns every year.

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ANAROCK Property Consultants Acquires LJ Hooker’s Indian Operations – Redwoods

PRESS RELEASE

ANAROCK Property Consultants Acquires LJ Hooker’s Indian Operations – Redwoods

Strategic acquisition to boost ANAROCK’s capability in integrated real estate solutions, dedicated design center in Bangalore

Bangalore, August 30, 2017 – Consistent with its focus on becoming India’s leading residential real estate solutions company, ANAROCK Property Consultants Pvt. Ltd. has announced the acquisition of Redwoods, the Indian arm of LJ Hooker, based out of Bangalore. The acquisition was closed today, with ANAROCK absorbing all Redwoods employees.

Anuj Puri, Chairman – ANAROCK Property Consultants says, “The acquisition of LJ Hooker’s Redwoods is in line to our overall business strategy and will help us augment our operations across key southern markets. It will give us unparalleled competitive advantage in offering customized real estate solutions. With its strong presence and unique multi-pronged approach, ANAROCK is decoding unmatched value for both B2B and B2C clients.”

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