Anuj Puri – Page 27

Gurgaon Real Estate – Steady Growth Ahead

Anuj Puri, Chairman – ANAROCK Property Consultants Pvt. Ltd.

The suburb of Gurgaon has been an essential contributor to the urban sprawl that comprises of prime Delhi NCR. The region has become synonymous with a viral-like growth in the past decade and has assumed a homogeneous nature being a well-established business, housing and leisure hub.

The new residential growth comprising of multistoried apartments initially started along its major arterial roads of MG Road, Golf Course Road and later spread down along the main highway connecting it to Delhi–NH-8.

Further along the way as the city started to grow its wings, newer areas were opened up along the Golf Course Extension Road and newer sectors opened up along the proposed Dwarka-Gurgaon Expressway and both sides of the NH-8, beyond the second toll plaza.

Each of these residential precincts has their own set of specifications, price points, and target segments. Gurgaon boasts of one of the highest white-collar workforces and with its homogeneous industry mix, it caters to all categories of home buyers – from affordable to ultra-luxury.

The city now has its own default CBD comprising DLF Cybercity and prime roads of MG Road and Golf Course Road.

by Anuj Puri

Anuj Puri, Chairman – ANAROCK Property Consultants Pvt. Ltd.

Affordable housing is not just about providing homes to the lower-income strata of society, though that is what the Modi government’s avowed intention behind the ‘Housing for All by 2022‘ doubtlessly is.

Affordable housing creation also has a direct and favourable correlation with the nation’s economy, as well as most other real estate segments. Housing for lower-income wage earners increases the economic strength of any city or region, as it attracts inward migration which creates a bigger manpower pool.

This, in turn, boosts the viability of opening up industries and businesses in the region, translating into more demand for commercial real estate spaces. Formal and informal retail is also attracted to residential catchments, translating into consummate demand for retail spaces in and around such catchments.

Finally, affordable housing in India coexists quite benevolently and beneficially with mid-income housing, as the middle class invariably depends on the services of lower-income earners to keep its show going, so to speak.

In cities like Mumbai, lower-income housing existing alongside the super-expensive abodes of ultra-HNIs is also not considered an anomaly.

by Anuj Puri

Anuj Puri, Chairman – ANAROCK Property Consultants Pvt. Ltd.

Luxury housing in India is the proverbial sitting duck for target practice in the shooting gallery that is the Indian residential property sector.

Market pundits and the media never get tired of taking potshots at it, and claiming that this segment has got run out – even though Indian luxury housing is actually something of a newbie on the pitch and still has very long innings ahead of it.

Maybe the fact that there are a lot of wealthy people in a country with so much poverty strikes some as an aberration, rather than a reason for pride.

by Anuj Puri

Anuj Puri, Chairman – ANAROCK Property Consultants Pvt. Ltd.

Real estate development remains a highly lucrative business line, which is why most builders retain skin in the game even in the face of strong market headwinds.

However, real estate development also remains a highly capital intensive business, and among the many new market truths that RERA has brought to the fore, the fact that only well-capitalized players will endure going forward stands out.

The ‘time-honoured’ practice of raising funds from the market via ‘pre-launches’ has now become untenable.

by Anuj Puri

Anuj Puri, Chairman – ANAROCK Property Consultants Pvt. Ltd.

The formation of Real Estate Investment Trusts (REITs) will help in the expansion of the quality real estate universe in India, besides giving developers another instrument to exit their projects.

REITs would own real estate, and most of them are expected to have their shares listed on the stock market. These listings will provide retail investors a good and an entirely new opportunity to participate in real estate’s growth story in India.

However, would an industry that has not been able to exploit its full investment potential so far be able to attract droves of retail investors? With REITs, the answer is yes.

This instrument has the potential to attract institutional and retail investors alike because of its inherent nature to provide regular dividends at relatively low-risk levels.

And why is that? One, because REITs in India will prefer to invest in commercial developments — specifically in the highest quality or Grade A properties — due to the higher rental yields in this asset class.

Two, because only 20% of an Indian REIT’s monies can be invested in development,

by Anuj Puri

Anuj Puri, Chairman – ANAROCK Property Consultants Pvt. Ltd.

The Goods and Services Tax (GST) is, beyond doubt, the most revolutionary tax-related reform to be seen in India in several decades, since it will eliminate the conflicting and cascading taxation structures which have confounded several industries over the past few decades. It will most certainly have a profound effect on India’s economic prospects.

A single indirect tax which covers all goods and services will, in the long run, increase tax collection by making it easier for retailers and several other businesses to comply and also moderate overall taxation levels.

That said, it should be remembered that the favourable effects of this new taxation regime will become evident only within 2-3 years of its implementation.

by Anuj Puri

Anuj Puri, Chairman – ANAROCK Property Consultants Pvt. Ltd.

Did demonetisation erase black money in real estate?

Just a couple of months ago, demonetisation appeared to have taken all the remaining steam of our Indian real estate’s sails.

Sales in the significantly cash-driven resale homes market nosedived and prices in this segment declined by as much as 20-25%. They were already trailing primary sales prices by 25-30% in the investor-driven residential corridors before demonetisation.

by Anuj Puri

Anuj Puri, Chairman – ANAROCK Property Consultants Pvt. Ltd.

We keep talking of ethical real estate business. Is a ‘code of ethics’ just a fancy manifesto you put on your office wall? Does it mean that the company merely steers clear of illegal dealings?

If that was all there is to real estate ethics, it wouldn’t be saying much. After all, thanks to India’s rather unclear legal system, it is possible to follow the path of dishonesty and self-interest without actually doing something illegal.

I have always thought that in real estate, the legal way can often be the lowest standard.

The fact is, unethical practices in real estate are the product of a short-term, mercenary approach to the business. This phenomenon is most evident in smaller brokerages, which often have no more than a single dealing with many of their customers.

I’m not saying that all small brokerage houses are unethical (I personally know a number of small operators whose business methods are completely above reproach. They know that good ethics equals good business).

What I’m saying is that a professional real estate company that takes ethics seriously,

by Anuj Puri

Anuj Puri, Chairman – ANAROCK Property Consultants Pvt. Ltd.

While the man on the street continues to wonder when he will be able to buy a modest home of his own, India’s super-rich are raising palatial homes at truly astronomical expense.

Indeed, on the surface, India’s wealthiest appear to operate in an entirely separate dimension which has no overlap at all with the ‘real’ world.

There is certainly an element of truth in this – wealth tends to beget more wealth, and at some point, a perpetual motion machine grinds into motion; a cycle of money-generation which vibrates on a rather unique frequency.

The question is – does this frequency broadcast an ever-widening social divide? Not quite.

There are more elements to these super-homes than meets the eye. The trend of India’s extremely high net-worth individuals building palatial homes needs to be viewed from various angles.

Of course, it is to a great extent, a lifestyle statement that broadcasts the fact that the individual and his family have ‘arrived’ and should be numbered among the country’s wealthiest and most influential people.

by Anuj Puri

Anuj Puri, Chairman – ANAROCK Property Consultants Pvt. Ltd.

The real estate market in many countries offers very lucrative investment prospects, with various offers and options.

Apart from that, Indian citizens buying property abroad can often avail of citizenship in the host country. This factor has considerable aspirational value with many.

The aspiration factor aside, property in more and more locations within Indian metros has become enormously expensive. Moreover, interest rates for bank loans are already proving to be a stumbling block and may rise further with the future revision of RBI norms.

In comparison, an Indian citizen wishing to buy a property in New York, London or Singapore can avail of the considerably lower interest rates of local banks in those countries.

Also, many foreign property markets are more transparent than our own, so investors can get ‘clean’ deals much faster and easier.

Investment in property abroad makes sense for those who are employed or have business interests in the country of choice. Indians who have settled or are planning to settle abroad permanently are, of course, prime candidates.

Gurgaon Real Estate – Steady Growth Ahead

Housing For All By 2022 – The Clock Is Ticking

Decoding The Indian Luxury Housing Story

Understanding The Intricacies Of Real Estate Funding

Investors Gearing To Ride The REITs Wave

How Will GST Impact The Indian Real Estate Sector?

The RERA Effect: Indian Real Estate Waits To Inhale

Real-Time Ethics In The Real Estate Business

The Homes Of India’s Super-Rich

Guidelines For Indian Citizens Buying Property Abroad