India Real Estate – Page 24

Co-Living: The New Star of Indian Rental Housing

Anuj Puri, Chairman – ANAROCK Property Consultants

Co-living, like car-pooling and co-working, is the result of demand for more evolved rental housing solutions coming from millennials, students and young working professionals whose choices differ vastly from those of previous generations.

Currently, this new accommodation option is most popular with young and unmarried millennials aged anywhere between 20-30 years. Professionals who don’t live with their families in the city of work are also considering this option.

Co-living provides such individuals with a way to circumvent the isolation and loneliness that is often integral to a hectic, driven urban experience.

While the primary demand for co-living spaces currently comes from such tenants, the concept itself is a lot more ‘accommodating’. In fact, the future may very possibly see demand for co-living solutions coming single seniors, as well.

Cities such as Pune, Bengaluru, Gurgaon, and Mumbai first saw this new concept emerge in force, and it is now also taking root in smaller cities such as Lucknow and Jaipur – basically, in cities with a large student and millennial workforce population.

So, How Is Co-Living Different?

by Shajai Jacob

Shajai Jacob, CEO – GCC (Middle East) – ANAROCK Property Consultants

NRI investments into Indian real estate are led Indian expatriates from UAE, USA, UK, and Canada
Bengaluru, Mumbai, Pune, Hyderabad, Chennai and Delhi-NCR currently attract the lion’s share of NRI investments
Equities score higher than real estate on capital appreciation, but residential property comes with the benefit of rental yield, relatively lower risk and considerable tax benefits

Riding on a wave of economic reforms, improving transparency and better governance, foreign investments in Indian real estate are set to scale new heights.

With laws now allowing 100% FDI (foreign direct investment) in construction development and REITs now in place for commercial real estate, the Indian real estate industry will see increasing investment infusions from NRIs (non-resident Indians).

According to a World Bank report, India received USD 79 billion in remittances in 2018 – with a sizeable portion going into real estate.

NRI investments into Indian real estate are led Indian expatriates from UAE, USA, UK, and Canada. In terms of Indian cities,

by Santhosh Kumar

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.

by Anuj Puri

Anuj Puri, Chairman – ANAROCK Property Consultants

Inarguably, the Indian real estate vertical that in the direst need of funding is the residential sector. In a perfect world, the private equity that is now pouring into the country’s realty sector would focus on where it is needed the most.

However, PE firms have their own investment rationale, and Indian residential real estate has been far from attractive to them.

There are sound reasons for this. The Indian residential sector has been hounded by multiple problems for the last 3 to 4 years. These include the issue of stalled/delayed projects, liquidity crunch, and high property values despite weakened demand and slow sales.

The country’s housing market has also seen the highest impact of policy-induced disruptions. Given the fact that the housing market was tainted by malpractices and lack of customer-centricity by developers, the Government had to step in with policy interventions squarely aimed at cleaning up the sector.

The inevitable fallout of demonetization (DeMo) on an industry which was ‘thriving’ on black money aside:

The long-pending enactment of the Real Estate Regulation Act (RERA) drew clear regulatory lines for the housing market –

by Anuj Puri

Anuj Puri, Chairman – ANAROCK Property Consultants

Maharashtra still leads with 20,718 projects & about 19,699 RERA-registered real estate agents
Gujarat comes second – 5,317 RERA-registered projects & 899 registered agents and agencies
Karnataka – 2530 projects & about 1342 RERA-registered real estate agents; Andhra Pradesh – 307 RERA-registered projects
West Bengal the only state with its own real estate law WBHIRA

It’s been two years since the deployment of the Real Estate Regulatory Authority (RERA) across the country and the Centre’s aim to enforce it in each state is gathering visible momentum.

Even the north-eastern states including Manipur, Meghalaya, Mizoram, Nagaland, and Sikkim – which earlier shied away from it – have agreed to officially notify RERA rules soon.

West Bengal is the only state which notified its own real estate law under West Bengal Housing Industry Regulatory Authority (WBHIRA).

It may be recalled that RERA intended to cover developers as well as real estate agents seamlessly across the country.

As it stands now,

by Arun Chitnis

PRESS RELEASE

18% Homebuyers Prefer New Launch Homes Against Previous 5%: ANAROCK Consumer Sentiment Survey

RERA implementation & lower GST revive consumer faith in new launches; 36% of buyers still prefer ready-to-move-in units
Lower prices influenced >50% homebuyers to purchase homes in 2018; nearly 52% would buy again with the same developer
End-user-driven Bangalore saw 44% of respondents buy homes for investment
70% of prospective buyers prefer properties under INR 80 lakh
Tier 2 & 3 cities new investment hotspots; Bangalore favourite investment destination for NRIs

Mumbai, 24 April 2019: While ready-to-move-in homes remained the preferred choice for several homebuyers, new launches (which drew the least consumer interest in the previous survey) saw a decent revival according to ANAROCK’s Consumer Sentiment Survey H1 2019.

Over 18% of respondents now prefer new launch properties as against mere 5% in the previous survey.

Interestingly, 44% NRIs would now consider new launch properties over under-construction (to be completed in 1 year) or ready-to-move-in homes (obviously a welcome development for developers facing funding issues due to previously negligible advance sales).

by Mandeep Lamba

Mandeep Lamba, President – South Asia, HVS ANAROCK

The best matches may be made in heaven, but the most memorable weddings happen in picturesque locales back on terra firma. Destination weddings are redefining India’s wedding culture (already famous for opulence, customs and traditions spread over several days).

While the trend of destination weddings is not exactly an Indian concept, its percolation into the globe-trotting Indian millennial milieu was inevitable. Wedding halls are passé – perfect, fairy-tale settings for one of life’s most momentous events are increasingly ‘in’.

It has been reported that the Indian destination wedding industry is expected to reach a market size of INR 45,000 Cr by 2020, with a projected annual growth rate of 25-30%.

Factors such as the rise of the middle class, a booming economy and celebrity endorsements – amply stirred by social media-induced aspiration – have contributed to this growth.

Destination weddings have also given a major shot in the arm to wedding planners, banquet organisers and wedding apparel designers – who, in any case, had little to complain about in a country where all stops are pulled out for weddings.

by Anuj Puri

The commercial segment saw a total PE inflow of nearly USD 2.8 bn in 2018 – up from USD 2.20 bn in 2017
Office yields are 12-14% PA, rental yields for housing 2.5-3.5%
Residential revival depends on returning investor interest

Anuj Puri, Chairman – ANAROCK Property Consultants

If the prolonged slowdown in the residential was not bad enough, to begin with, major policy overhauls over the last five years – DeMo, RERA, GST, amendments in the Benami Transactions Act etc. – literally paralysed the residential segment.

While any policy change brings with it some amount of teething pains, the residential segment took a prolonged hit because it had attracted the bulk of black money in the sector. Commercial real estate was far less affected, if at all.

Residential was also far less organized than the commercial office segment. Largely driven by IT/ITeS and BFSI sectors, the commercial real estate segment has been quite transparent and predictable – the primary criteria for foreign investors’ confidence.

Commercial Vs.

by Arun Chitnis

Approx. 8,574 keys to hit the market in 2019; nearly 19% increase over the last 2 years
Revenue per available room (RevPAR) sees 17% growth between 2016 and 2018
Average daily rates saw a 6.25% rise in 2018, faster than 4.5% long-term inflation rate
Goa saw the largest signing of keys in 2018 at nearly 2,209 keys, eclipsing Bengaluru by just 192 keys
Hotel transaction volume hit an all-time low in 2018 at INR 5,354 mn since 2007; 2019 likely to witness the sale of high-value hotel assets valued USD 800 mn across key markets

Mumbai, 10 April 2019: With demand finally outpacing supply, the Indian hospitality industry is on an upswing. The ‘India Hospitality Industry Review 2018’ report by HVS ANAROCK predicts RevPAR to grow by 9.5% in 2019.

Interestingly, Q1 2019 itself saw unexpected growth in the India hotel industry. The successful transaction of the Leela Hotels & Keys portfolio in Q1 2019 set a healthy tone for the start to the year, and trends indicating that 2019 could see transaction volumes reach around USD 800 mn.

by Anuj Puri

Anuj Puri, Chairman – ANAROCK Property Consultants

₹4,51,750 Cr worth housing currently stuck in various stages of non-completion across top 7 cities
MMR and NCR together hold 72% share of delayed projects worth INR 3,49,010, Cr; South cities collectively hold a mere 10% overall share
Chennai has the least stuck stock with 8,650 units worth INR 5,620 Cr
Bengaluru far better off than Pune with less than half of the delayed stock of 86,700 units

If there is one ‘inheritance’ that the Government in power post the upcoming elections will not look forward to, it is tackling the issue of the massive burden of stuck housing across the top Indian cities.

Despite the setting up of a regulatory mechanism, countless homebuyers have been left in the lurch by their builders. Sadly, most of these stuck projects do not fall within the RERA ambit as they were launched years before it was implemented.

Also, with many states having diluted the Centre’s original RERA rules, homebuyers have only the courts to approach – a notoriously tedious task in India.

Co-Living: The New Star of Indian Rental Housing

NRI Investors Zero In On Indian Real Estate’s Revival Signals

Jewar International Airport: Revival For Noida And Greater Noida?

Will India Housing Sector Return To Favour With PE Firms?

2 Years of RERA – Project and Broker Registrations Rise Across States

18% Home Buyers In India Prefer New Launch Homes Against Previous 5%: ANAROCK Consumer Sentiment Survey

Indian Hospitality Woos Destination Weddings

Private Equity Still Votes For Commercial Real Estate

Indian Hotel Industry’s RevPAR to see 9.5% Growth in 2019 – HVS ANAROCK Report

Post-Election Inheritance Of 5.6 Lakh Stuck Housing In Top 7 Cities