Santhosh Kumar, Vice Chairman – ANAROCK Property Consultants

Chennai, the capital of Tamil Nadu, is one of the biggest cultural, economic and educational centres in South India.

Mercer’s Quality of Living Survey noted Chennai as the safest city in India and is exemplified by the fact that it has the third-largest expatriate population in the country.

Also justifiably called the ‘Detroit of India’, Chennai has over one-third of India’s automobile industry operating there.

Chennai has grown significantly in the last few years. Education prospects and employment opportunities, along with a decent lifestyle, are the key drivers that attract people to the city.

With increasing population, the city’s real estate landscape has also grown by leaps & bounds and is now spread across various zones of Chennai.

Whilst the real estate development paused momentarily due to massive floods of 2015, the fundamental demand drivers remain intact and the city is likely to continue on its growth trajectory in the future periods, reinforced by:

  • Diversified economic base

Chennai’s diversified economic base is anchored by the automobile,

Santhosh Kumar, Vice Chairman – ANAROCK Property Consultants

One of the interesting new trends in Kolkata’s residential real estate market has been the entry of new players. The capital values of residential realty have seen a price increase in Q4-2017 ranging from 2 to 3% as compared to Q3-2017.

A number of upscale multi-storied projects were launched in 2017 in the southern part of the city – for e.g. Tata 88 east, Mani Vista, Signum Victoria Vistas, Aspirations Elegance and Onex Privy. The capital values of these projects were in the range of INR 8,000 to 12,000/sf.

Effect of demonetization

As everywhere else in the country, demonetization had some effect on Kolkata’s residential sector. However, since Kolkata’s residential sector is largely end-user driven, the effect of demonetization was not very severe, as the buyers are willing to wait for the market to stabilize.

In the office asset class, there has been no major impact due to demonetization. However, leasing demand has certainly reduced post-demonetization.

Top-selling residential projects

Kolkata’s residential property market is seeing a splurge in supply – which,

Santhosh Kumar, Vice Chairman – ANAROCK Property Consultants

The Golf Course Extension Road has emerged as one of the most sought-after residential corridors of Gurugram.

While not being priced as high as the neighbouring Golf Course Road, it offers multiple apartment options for the upper-mid segment moving up the value chain to luxury housing options as well.

This residential corridor has seen more than 8,500 residential apartment units launched overall, and many of them are in advanced stages of construction. Around 2,500 residential units have been delivered here with another 2,600 slated for completion by 2019-end.

This residential market has a good mix of end-user as well as the investor segment who have in the past achieved healthy capital appreciation across their investment/purchases. The healthy completions pipeline had also resulted in a robust secondary sales market in this corridor.

The consistent price appreciation on Golf Course Extension Road caused sales to dampen slightly, and the overall slow market for high-ticket sized apartments has also impacted the sales velocity in this corridor.

Santhosh Kumar, Vice Chairman – ANAROCK Property Consultants

When the scion of one of the world’s most iconic real estate brands comes to India to help market yet another luxury homes project – this time in the Millennium City of Gurgaon – the market sits up and takes notice.

By all standards, the upcoming Trump Towers are a sizeable undertaking – the 47-storey towers will put 250 exclusive units on the market, with completion and possession slated for 2023.

As can be expected from such an iconic development by a brand that has already made a strong imprint in Mumbai, Pune and Kolkata, the price tags are astronomic, ranging from INR 55-110 million.

This gives rise to a logical question – at a time when the luxury housing market in India has yet to pull itself out of the doldrums, is there any appetite for such an offering? Let’s examine some facts.

In the Asia Pacific region, India ranks 4th in the list of countries with largest HNI population. The HNI stratum of the Indian population largely remains shielded from the macroeconomic risks,

Santhosh Kumar, Vice Chairman – ANAROCK Property Consultants

The built environment of any community is considered to be the reflection of regional architecture – and thereby a significant component of differentiation.

In the pre-Industrial Revolution phase, India’s built environment, as in the rest of the world, was shaped by certain values and cultural beliefs.

However, with tremendous urbanization and globalization after the Industrial Revolution, India’s rich cultural and architectural heritage is vanishing. This is primarily due to increased usage of industrially-produced and standardized materials.

With that, the dependency on locally-available materials has declined, transforming ‘vernacular architecture’ buildings to more standardized modern concrete structures.

Vernacular architecture refers to structures built indigenously to a specific time or place, taking into consideration the experience of centuries of community building. It depicts the characteristics of the local environment, technology and climatic conditions.

Importantly, buildings constructed through traditional techniques using natural, locally-sourced, non-toxic, renewable and biodegradable materials can also minimize negative ecological impacts.

Modern architecture, on the other hand, uses industrially-produced materials (such as steel and concrete) that possess a low thermal resistance and require high energy intensity,

Santhosh Kumar, Vice Chairman – ANAROCK Property Consultants

The Finance Minister’s fifth union budget on 1st February 2018 was probably one of the most closely-followed events for the Indian business community.

Not only was it the final budget before the 2019 general elections, but strong rumours of a populist Budget were sending all sorts of mixed signals to various industries.

In any case, all sectors – and specifically real estate – had harboured considerable hopes from this Budget. Battered and bruised after demonetization, RERA and GST, the sector looked forward to at least some major announcements that could re-inject the market into a growth trajectory.

Above all, real estate players fervently hoped for the long-awaited and long-elusive infrastructure status. The logistics sector and affordable housing had received it sometime back, but the market needs the benefits of infrastructure status on a much broader spectrum.

Expectations notwithstanding, the real estate industry got neither infrastructure status or, for that matter, any additional direct policy push from Union Budget 2018-19.

Why is infrastructure status so important for any sector?

How can this status impact the country’s economy at large?

Santhosh Kumar, Vice Chairman – ANAROCK Property Consultants

Exponential urbanization and tremendous employment opportunities have made NCR one of the fastest-growing regions in the country.

It is the largest urban agglomeration in India, with more than 28 million urban residents (around 7.5% of overall country’s urban population).

The accelerated urbanization and rampant migration of working population from different states have created a tremendous need for affordable housing in NCR – and the requirement keeps growing.

A recent ANAROCK report shows that NCR comes out on top in terms of the number of units added in the affordable housing segment (priced < INR 40 lakh) during the last two years, and accounted for around 26 to 30% of the overall affordable housing segment’s supply across the top Indian cities.

The region’s share of new launches in the affordable segment has grown from a mere 21% in 2012 to 71% in 2017 (up to Q3).

While the entire region possesses the opportunity to shine in this segment, ANAROCK’s report has identified some pockets which qualify as the key destinations for affordable housing projects in NCR.