Real estate players with high-recall brands have upped their game and accounted for a whopping 56% share of the total housing supply in 2018.
Author: Prashant Thakur
Kolkata’s new launches recorded a massive drop of 85% during the period with merely 1,000 units being launched in Q1 2019.
Prashant Thakur, Head – Research, ANAROCK Property Consultants
Developed by the Bangalore Development Authority (BDA) decades ago, HSR Layout – home to upper-crust residents and even some ministers – is strategically located between major IT hubs including Electronic City, Outer Ring Road and Sarjapur Road.
Not surprisingly given these excellent location antecedents, HSR Layout has transformed into a major residential-cum-commercial hotspot of Bangalore.
This micro-market is largely defined by sizeable bungalows, small builder-floor apartments, wide roads, several small parks and well-established retail options. It is also one of the most self-sustained localities in the city.
A Unique Lifestyle Quotient
Its proximity and easy connectivity with major IT hubs make HSR Layout a preferred residential destination for IT professionals working in nearby Infotech hubs.
There is no dearth of rental options here which are more affordable than in HSR Layout’s neighbouring IT/ITeS-dominated markets.
Its well-planned layout includes parks, schools and hospitals at a convenient distance in every corner of the locality.
HSR Layout’s well-developed social and physical infrastructure also makes it a desirable residential option, both from a purchase and rental point of view.
- Luxury supply increased by 29% since 2017
- Of 12,090 units new luxury supply in 2018, MMR launched nearly 6,310
- NCR – 2,650, Hyderabad – 1,585, Kolkata – 160; Pune saw least supply with less than 100 units
Prashant Thakur, Head – Research, ANAROCK Property Consultants
Catering to a very niche clientele and not the masses, luxury housing has evolved at a rapid pace in India. The nouveau riche (newly rich) prefer discreet opulence over the commonplace, and look for experiential luxury, both at a unit and project level.
From start-up founders to high-salaried professionals, high net-worth individuals are prompting developers who understand the luxury segment to think increasingly out of the box and deliver something unique and aspirational.
On the ‘other side of the fence’, affordable housing has taken centre-stage in India over the past 3-4 years, not only because of the massive demand for it but also due to the concerted efforts by the Government to cater to it. Against such a backdrop, there are rising speculations that luxury housing is losing its sheen to the affordable segment.
Two lateral views from the revolving door
Prashant Thakur, Head – Research, ANAROCK Property Consultants
NRIs Eyeing Indian Properties
Ever since the Indian rupee began nosediving, more and more NRIs (non-resident Indians) have turned their focus to the Indian real estate market. There are good reasons for this.
Other than the favourable exchange rate, the new regulatory environment driven by RERA, DeMo and GST have served to clear up a lot of the misgivings that kept many NRIs from investing in property in India. However, that’s not all there is to it.
Most NRIs, regardless of whether they are permanently stationed or well-settled abroad, at some point entertain a fond wish to buy a home in India – if not for themselves, then for their families back home.
Buying a property is still a mark of prestige and accomplishment for any Indian, regardless of where they are in the world. Nor will most NRIs ever entirely shed a feeling of responsibility towards their families back home.
As per ANAROCK’s recent Consumer Sentiment Outlook survey,
Prashant Thakur, Head – Research, ANAROCK Property Consultants
Panvel, previously seen as a destination on the outskirts of Navi Mumbai and far off from Mumbai, has now evolved into an integral part of Mumbai Metropolitan Region (MMR) and is, in fact, a buzzing real estate market.
Strategic Location
- Located on the eastern side of the Mumbai-Bangalore National Highway (NH-4) and the Mumbai-Pune Expressway, Panvel is well-connected to the rest of India by road and rail. Also, being located on the Mumbai-Pune Expressway, Panvel has garnered a huge amount of interest from end-users and investors of both Mumbai and Pune.
- Excellent connectivity to workplace destinations of Navi Mumbai and Pune
- Panvel is a 30 – 45 minutes’ drive from CBD Belapur and Vashi, which are prominent workplace destinations of Navi Mumbai, and a 2-hour drive from Pune’s thriving IT hub Hinjewadi. This makes Panvel a convenient destination for working IT professionals who shuttle between the two cities.
Infrastructure upgrades to take Panvel to the next level
Numerous infrastructure initiatives are planned to upgrade the connectivity and profile of this city.
Prashant Thakur, Head – Research, ANAROCK Property Consultants
Ambernath, a well-developed industrial micro market of Thane district, is famous for the wealth of medium-to-large scale industries in its purview.
The locality is bisected into east and west sections by the central suburb railway line that starts from Chhatrapati Shivaji Maharaj Terminus (CSMT) and passes via Thane, Kalyan and ends at Khopoli.
Ambernath’s growth took off when the Government established a large Ordinance factory (OFA) and a Machine Prototype Factory (MPF) here. These industries prompted residential real estate developments and also encouraged other medium-to-large scale industries to establish their manufacturing base in the city.
With the rapid industrialization of Ambernath-Badlapur MIDC area and the excellent central railway line connectivity between Thane, Kalyan and Ulhasnagar, working professionals of these micro markets see Ambernath as an affordable option to meet their housing needs. Thus, Ambernath is transforming into one of the major affordable housing destinations of MMR.
Connectivity
- Road: Ambernath has an excellent connectivity to Kalyan via Maharashtra SH 80 and Thane via NH 160. It is connected to Pune via Bengaluru –
Prashant Thakur, Head – Research, ANAROCK Property Consultants
Conceptualized under the Gurugram Master Plan 2021, Dwarka Expressway or the Northern Peripheral Road (NPR) was initially planned to connect Dwarka in Delhi to Palam Vihar in Gurugram.
However, it was further extended to Kherki Dhaula toll plaza intercepting NH 48 as per the Master Plan 2025.
Stretching along 18 km, this 8-lane and 150-meter-wide expressway aims to provide seamless connectivity between Delhi, Gurugram and Manesar.
The expressway passes through sectors 109, 113, 37D, 88B, 105, 99 and many other sectors which saw an upsurge in residential real estate activity since its announcement.
With land acquisition issues over the years, the residential real estate market along the region suffered a major setback.
However, the recent clearance of all major hurdles here has given a new ray of hope to prospective buyers and investors focused on Dwarka Expressway’s many transit-oriented benefits.
The major attraction of Dwarka Expressway is its seamless connectivity between Gurugram and Delhi.
- Road: Sectors along Dwarka Expressway will enjoy excellent connectivity to Delhi and the international airport.
Prashant Thakur, Head – Research, ANAROCK Property Consultants
Despite new launches decline, property prices in Yelahanka did not correct significantly and actually appreciated by 9% in the past 2 years.
Existing since the 12th century, Yelahanka is closely linked with the origin of Bengaluru. The book ‘Bengaluru to Bangalore’ by T.V. Annaswamy mentions that the word ‘Yelahanka’ is derived from ‘Valipakka’, meaning ‘along the highway.’
Over a period of time, Valipakka (during Chola reign) transformed into Illaipakka (during Hoyasala reign) and finally into Yelahanka.
Rapid Development
The construction of the Kempegowda international airport was a game changer for the region and initiated Yelahanka’s metamorphosis from a sleepy little settlement on the outskirts of Bengaluru into a buzzing residential investment destination.
Yelahanka, which is divided into Old Yelahanka and Yelahanka New Town, is home to many defence establishments such as CRPF training school, Indian Air Force’s Air Force Station and BSF Training Centre.
This micro-market also houses the largest facility of Mother Dairy in Karnataka, as well as the rail wheel factory (India’s largest manufacturer of railway wheels and axles).
Prashant Thakur, Head – Research, ANAROCK Property Consultants
Project delays are one of the most alarming issues historically dogging the Indian real estate sector.
The dearth of effective planning and execution of construction activities, escalating construction costs, approval delays, diversion of allocated funds to other projects and tepid sales are some of the predominant factors resulting in project delays. The homebuyer is, of course, at the losing end.
To put it in numbers, during 2017, out of the total 5.8 lakh residential units slated to be completed across the top 7 cities in India, only 1.5 lakh units were actually delivered until December 2017. This indicates that around 4.3 lakh units actually missed their stipulated completion deadlines.
The National Capital Region (NCR), one of the country’s largest residential markets, was seriously wounded by sudden policy changes, structural reforms – and the dubious practices of unscrupulous developers.
As a result, it topped the list of cities with maximum project delays. Around 1.5 lakh units in NCR missed the 2017 deadline. The story in Mumbai Metropolitan Region (MMR) was no different with nearly 1.1 lakh units missing the said deadline.