The 100 new airports in India proposed by FY2024 under the UDAN scheme will boost real estate – particularly tourism & hospitality - in Tier 2 & 3 Cities.
Author: Santhosh Kumar
Santhosh Kumar is Vice Chairman of the ANAROCK Group, India's leading real estate services group in India with diversified interests across the real estate value chain. He is based out of ANAROCK’s Gurgaon office, with all the Group's India city leads and its Dubai office reporting to him.
The residential real estate market in Gujarat’s top city Ahmedabad has been riding high on affordable housing projects over the last five years.
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Real estate developers, urban planners, architects, Government bodies, and homebuyers need to work together for a better environment for future generations.
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Santhosh Kumar, Vice Chairman – ANAROCK Property Consultants
By what seems like a cruel twist of fate, the grounding of the country’s largest airline coincided with provisional construction approval for India’s largest (by surface area) airport at Jewar in Noida.
It may be recalled that the Allahabad court dismissed petitions filed by farmers and gave in-principle approval to commence the construction of Jewar International Airport, which is estimated to be built at a cost of USD 3.1 bn.
Naturally, the expectation is that just like any mega infrastructure project, this greenfield airport will give a major boost to the overall economic activity around Noida and Greater Noida region. Let’s take a closer look.
Economic Impact Of Jewar International Airport
Once completed, Jewar International Airport will not only ease traffic at Delhi’s IGI Airport but also create multiple job opportunities and give decent impetus to the property market in Noida, Greater Noida and Yamuna Expressway.
These markets have been reeling under tremendous pressure over the last three to four years, and require a fresh injection of opportunity and intent to overcome this slump.
Santhosh Kumar, Vice Chairman – ANAROCK Property Consultants
- Bangalore, Hyderabad & Chennai saw a 77% increase in new residential supply in 2018; NCR 16%, MMR & Pune 17%
- Chennai led new launch supply with a 98% increase, Bangalore 91%, Hyderabad 43%
- Bangalore, Hyderabad & Chennai saw a 20% increase in housing sales; 18% in North, 15% in West
The year 2018 was a mixed bag of highs and lows for the Indian real estate sector. The initial pangs of policy alterations seemed to fade away with each region seeing visible signs of recovery across segments.
Even as the liquidity crunch and stalled/delayed projects continue to plague the sector, the main southern cities of Bangalore, Chennai and Hyderabad actually saw faster growth momentum than their northern counterpart NCR.
Retail, commercial and residential real estate saw a lot more activity in Southern cities than in the North.
Residential
As per ANAROCK data, the southern cities raced far ahead of those in the North,
Santhosh Kumar, Vice Chairman – ANAROCK Property Consultants
- Just 63,000 ready units currently benefit out of total 6.73 lakh units across top 7 cities
- Nearly 22,000 ready unsold units completed before 2017 don’t benefit from new rule
- 33% of 5.88 lakh unsold under-construction units in the luxury segment – 49% in MMR – will not benefit immediately
Just when the real estate industry was preparing to give the budget a complete thumbs down, the finance minister sprung a surprise ‘bonanza’ for the sector in the last 10 minutes of his speech. Or so it seemed.
Without a doubt, affordable housing gained amidst what was essentially a mass-appeal budget. However, it was the extension of tax relaxation on notional rent for unsold inventory for another year that cheered developers.
However, under closer scrutiny, it is unlikely to benefit a majority of them as on date.
Anti-climax for developers
Basically,
Santhosh Kumar, Vice Chairman – ANAROCK Property Consultants
- Don’t expect all available options to be available online
- The ‘hidden’ costs of renting a home
- The elements of a sound rental agreement
The Government’s much-touted aim to deliver Housing for All by 2022 may not have met with spectacular success in terms of on-ground deployment, but it was certainly a very effective electoral promise. Housing is a sensitive subject in India, precisely because so many people don’t have it. Such an electoral promise was bound to draw attention – and hope.
Providing a self-owned home to every Indian household in the promised timeline seems unlikely. Building enough dedicated rental housing and backing it with a sound rental housing policy could have brought this electoral promise closer to its goal. However, there has been little progress on this front beyond the discussion stage, either.
While a large number of Indians do hope to live in self-owned homes someday, renting homes is still the default option for many. For some, rental housing is seen as a temporary measure until the dream of homeownership is fulfilled.