Anuj Puri – Page 20

Amended Bankruptcy Code Deals An Ace To Homebuyers

Anuj Puri, Chairman – ANAROCK Property Consultants

The Union Cabinet’s amendment to the Insolvency and Bankruptcy Code now effectively treats homebuyers as financial creditors and comes as a massive relief to them.

Residential property buyers are now effectively considered at par with banks and other institutional creditors when it comes to recovering dues from real estate developers who have gone bankrupt.

However, it needs to be seen how the resolution mechanism for claiming the dues actually falls in place for the concerned homebuyers. In fact, to be truly relevant, the entire implementation process needs to be clarified to homebuyers.

They need to know how exactly they will be represented in the creditors’ committee – in other words, whether the NCLT will appoint a resolution professional to represent their rights and interests.

That said, this amendment will certainly go a considerable way in bringing more transparency into the overall funding of projects across the country. With homebuyers now getting the opportunity to claim their dues from builders, there is an even stronger burden on developers to deliver on time.

We will now see builders become more cautious while taking funds from financial institutions and banks,

by Anuj Puri

Anuj Puri, Chairman – ANAROCK Property Consultants

Over 30 new shopping malls covering 14 million sq. ft. of the area expected across top 8 cities by 2020
Indian retail pegged to grow by 60% to reach US$ 1.1 trillion by 2020
Tier 2 cities fast catching up with the metros

Rapid urbanization and digitization, increasing disposable incomes and lifestyle changes of the middle-class are leading to a major revolution in the Indian retail sector, which is pegged to grow by 60% to reach US$ 1.1 trillion by 2020.

The Government has clearly hit the bullseye by easing the FDI norms in the retail sector over the past few years. Reacting to the immense opportunities and diminishing entry barriers into the Indian retail scene, overseas retailers are now expanding exuberantly.

And it’s not just the metros they’re targeting – even tier 2 cities like Ahmedabad, Chandigarh, Lucknow and Jaipur, to name a few, are opening up for organized retail in a big way. Malls are literally mushrooming across the Indian subcontinent.

Ready,

by Anuj Puri

ANB Capital Merges With Anuj Puri’s ANAROCK Property Consultants

Shobhit Agarwal to head new entity as MD & CEO – ANAROCK Capital

Mumbai, 8 May 2018: Anuj Puri, Chairman – ANAROCK Property Consultants and Shobhit Agarwal, MD & CEO – ANB Capital Advisors today announced the formal merger of ANB Capital with the ANAROCK Group to create ANAROCK Capital, which Shobhit Agarwal will head as MD & CEO.

The ANAROCK Group’s residential services division has already defined itself as India’s leading, fastest-growing and most disruptive consultancy in the industry. With the addition of the Capital Markets vertical, ANAROCK takes a major step forward towards its ambitious expansion plans.

“The Indian real estate market is in its next evolutionary stage, and perfectly primed for ANAROCK Capital,” says Anuj Puri. “The firm will fill the massive real estate investment banking advisory gap that exists in a market completely redefined by RERA in terms of how the market operates and who will operate it going forward. Among several other functions,

by Anuj Puri

The 14 spokes of RERA’s protective umbrella

Anuj Puri, Chairman – ANAROCK Property Consultants

The Indian real estate industry, particularly the residential sector, was in the past correctly characterized as being unregulated and unorganized with unreasonable project delays and poor quality of construction being definitive aspects.

The arrival of the Real Estate Regulatory Act (RERA) in March 2016 brought in a paradigm shift in the sector and metamorphosed it into a more mature, systematic and regulated one.

RERA came into force on May 1, 2017, and is meant to be a homebuyer-friendly regime which will address their grievances and promote transparency, efficiency, financial discipline and accountability in the sector.

Indeed, buying a home is not only the most cherished dream for many Indians but also one of the biggest long-term financial commitment in the buyers’ lifetime.

Considering this, there are 14 important guidelines incorporated in the RERA umbrella to prevent unscrupulous players from raining on consumers’ homebuying plans:

1. Enforcing timely delivery of projects

In case of project delays,

by Anuj Puri

Anuj Puri, Chairman – ANAROCK Property Consultants

Buying a house is an important milestone and a lifetime decision for most Indians. After years of saving and diligent planning, one decides to purchase a house.

In addition to the increased social stature and financial security implied in home-ownership, a home purchase also helps in big-time tax savings. Also, instead of paying fat rentals, one creates an asset which will appreciate over the long term.

A cursory look at average property prices reveals that overall across the top 7 cities, there isn’t too much variation in 2017 as compared to the previous year.

Also, property prices differ in each city and also vary as per the location and its inherent growth drivers. Generally, developers are not in favour of visibly reducing the prices as it transmits negative sentiments in the market.

However, a deep-dive assessment of the market conditions reveals that a pseudo-price correction has come in the form of freebies, discounts, offers, schemes, etc. Also, buyers who sit across the table in a developer’s office with a token amount cheque, discounts and reduced prices are surely offered.

by Anuj Puri

Anuj Puri, Chairman – ANAROCK Property Consultants

The Government’s approval on the long-pending Mumbai DP 2034 is a welcome move.

The DP is likely to spur real estate activity in the city and also pave the way for the development of much-needed affordable houses in Maximum City.

Let’s look at the major highlights and likely impacts of this Development Plan:

Highlights of DP 2034

Overall NDZ is 16,700 hectares of which around 12,900 have now been classified as Natural Area (NA), which includes parts of Sanjay Gandhi National Park, Mangroves, salt pans and parts of Film City and Aarey milk colony, along with a few regions under CRZ.
DP 2034 proposes to unlock 3,700 hectares of public and private land currently tagged as No Development Zones (NDZ) – this massive land unlocking will open new avenues for real estate development
There is a target to construct 10 lakh affordable homes through unlocking of NDZ – this is a major push for the affordable housing segment, and much needed to accommodate the ever-increasing population in the city
The largest additions to the city’s developable land banks in recent history
FSI levels in the Island City are raised up to 3,

by Anuj Puri

Addition of nearly 6,800 new units marks 127% increase over previous quarter

Emerging as the front-runner in the major South Indian markets in terms of new housing supply infusion, Bengaluru saw significant growth in new housing launches as well as absorption in Q1 2018.

In fact, Bengaluru saw highest launches among these markets with nearly 6,800 new units supply in comparison to Hyderabad and Chennai, which saw the launch of 2,600 and 2,100 units respectively. Bengaluru also leads on the absorption front, with a total of 11,500 units sold in Q1 2018.

“Increased commercial activity, positive buyer sentiments, infrastructure upgrades and improved job opportunities in the city have given a major fillip to Bengaluru’s housing market,” says Anuj Puri, Chairman – ANAROCK Property Consultants. “This market is largely driven by the end-users who were in a wait-and-watch mode so far. These buyers have now actively returned to the market on the back of the overall sentiment upsurge resulting from the Bengaluru’s rapidly improving market fundamentals.”

Supply & absorption trends – Bengaluru, Hyderabad & Chennai

Bengaluru realty on an upswing

“Even at a pan-India level,

by Anuj Puri

Anuj Puri, Chairman – ANAROCK Property Consultants

In the past, the ROI on housing assets had been quite satisfactory and in some cases even spectacular, depending on the aptness of choice in terms of specific location, configuration, amenities and builder’s brand.

While rental yields for residential assets in India have historically been low, capital appreciation alone was a sufficiently dynamic prospect for most real estate investors.

However, the hype around residential property investment has fizzled out over the last 2-3 years, with a prolonged slowdown severely impacting capital appreciation. As of now, investors with the financial wherewithal and requisite understanding of the commercial real estate space find office assets far more attractive, and for good reason.

In the first place, office properties in the right location and project attract quality corporate tenants and can, therefore, yield very good rental returns over prolonged periods.

The average rental yield of a good commercial property falls in the range of 6%-10%, whereas the rental yield of a residential property is dismally low in the range of 1.5% – 3.5%. Simultaneously, capital appreciation can also be more than satisfactory for the right office assets.

by Anuj Puri

Anuj Puri, Chairman – ANAROCK Property Consultants

Why RERA is still not a nation-wide market force

Many state governments have been lax in implementing RERA. There are various forces at play – the primary one being an aversion to change.

RERA was conceived to change the entire status quo of how real estate is designed, developed and sold in India. It intends to put paid to fly-by-night players – both developers and brokers – who have held the real estate market to ransom all these years.

While the larger organized developers and consultancies have welcomed and embraced RERA for the transparency and regulation it brings to the market, the unorganized segment – players who are not happy with RERA because it seriously impacts their questionable business models – far outnumber the organized one.

In a democracy, the ‘majority vote’, whether spoken out loud or implied by lack of cooperation, wields weight. This majority vote is slowing down the process of RERA’s nation-wide deployment in the shape and to the extent which the Centre intends. Moreover, individual states also have always had the right come up with their own set of rules.

by Anuj Puri

Unsold inventory decreased by 2% from 7.27 lakh units in Q4 2017 to 7.11 lakh units by Q1 2018

According to ANAROCK Property Consultants’ latest research, 2018 has started on a positive note with residential unit launches making a comeback and recording a 27% increase in Q1 2018 from the previous quarter across top 7 cities of India.

With policy reforms and structural changes now in place, developers are intent on making up for the lost ground.

In Q1 2018, sales across top 7 cities of India also rose by 12% compared to Q4 2017, indicating that serious homebuyers are back, attracted by the new environment of transparency, accountability and financial discipline.

“The series of policy reforms and structural changes have transformed the way Indian real estate business is conducted. This has been a definite blessing. The sector is by no means out of the woods yet, but we are now seeing some green shoots of recovery,” says Anuj Puri, Chairman – ANAROCK Property Consultants. “The market has turned end-user friendly and 2018 is bringing new launches that match demand.

Amended Bankruptcy Code Deals An Ace To Homebuyers

The Rise And Rise Of Indian Malls

ANB Capital Merges With Anuj Puri’s ANAROCK Property Consultants

How RERA Is Revolutionizing Indian Real Estate

The Logical Way of Seeing Real Estate Price Corrections

Mumbai DP 2034 Receives the Government’s Nod

Bengaluru Housing Sector Outstrips Hyderabad, Chennai In Q1 2018

Now Trending – Commercial Real Estate

RERA In Real Time – Nowhere Close To The Finish Line

27% Increase In New Housing Launches In Q1 2018 Over Previous Quarter