India Real Estate – Page 30

India Real Estate – The 2018 Story So Far

Anuj Puri, Chairman – ANAROCK Property Consultants

Housing sales jumped by nearly 8% in the first 3 quarters of 2018
NBFC crisis hijacks Indian real estate’s growth story, fallout into 2019
General elections will play a role in the sector’s fate in 2019

As we embark on the final lap of this calendar year, it is appropriate to take a quick glimpse of what has happened in the Indian real estate sector during a highly tumultuous 2018.

Given the RBI’s alternating cautious and proactive stance towards managing the overall economy, it remains to be seen if 2018 will bring any further surprises for the real estate sector. If not, we can expect fairly steady sailing until the end of the year.

2018 So Far

Residential Real Estate

The year 2018 brought with it a new ray of hope for the residential sector, with both sales and new supply gradually picking up across the top 7 Indian cities – Bengaluru, National Capital Region (NCR),

by Anuj Puri

Anuj Puri, Chairman – ANAROCK Property Consultants

The festive season is considered auspicious for property purchase and Indians across many states prefer to make informed property buying decisions during this period.

To encash on the increased demand during the festive season, builders, on their part, leave no stone unturned to lure customers with freebies and discounts.

Over the last few years, mounting unsold stock across cities prompted developers to clear their stock and focus more on project completion rather than launch new ones.

Festive Season Offers

This year, launches have increased, and many builders have, in fact, been offering schemes, freebies and discounts all year long to attract home buyers.

Some of the prominent offers include cash discounts, flexi-payment plans, no registration or stamp duty fees, no EMIs till possession, free home appliances or gold coins, etc.

A lot is up for grabs and it is interesting to note the variations in festive discounts. Cash-starved developers are also coming up with some very innovative and attractive schemes.

If we analyse the trends during the year and previous festive season,

by Arun Chitnis

51% home buyers seek rental income, 39% prefer affordable housing

39% prefer to invest in housing priced below ₹40 Lakh
68% seek property for end-use; 52% favour compact 2BHKs
51% of investors focused on rental returns

As many as 81% of polled aspiring homebuyers acknowledge Indian real estate’s improved and improving transparency, discipline and accountability post implementation of regulatory policies, reveals ANAROCK Property Consultants’ ‘Real Estate Consumer Outlook: H2 2018’.

Commenting on the survey, Anuj Puri, Chairman – ANAROCK Property Consultants says, “With the now discernible impact of RERA, DeMo and GST, housing sales are seeing an upward trajectory in 2018 q-o-q. New launches have also gone up this year with affordable housing witnessing significant growth. NRIs see India’s rebooted real estate market environment conducive enough to justify property investments, especially on the back of the depreciating rupee.”

Nearly 69% of prospective buyers are looking to buy property for end-use
84% are looking for homes which are either ready-to-move-in or slated to complete in the next 6 months.

by Prashant Thakur

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.

by Mayank Saksena

Mayank Saksena, MD – Land & Head – South India, ANAROCK Property Consultants

Driven largely by the end-users, the Bengaluru real estate market has remained resilient even during the worst phase of the property cycle in the country.

Realistic property prices, ‘real’ demand by end-users, developers’ strategy to keep the new launches under control along with their consistent efforts to minimize the demand-supply gap have worked in favour of the ‘Garden City.’

Since the end-users here are mostly professionals working across service sectors led by the IT/ITeS, developers have been conscientiously aligning their offerings to this demand.

For instance, to cater to the demands of a tech-savvy homebuyer, developers have launched ‘Smart Homes’ for their buyers with several features at the ‘click of a button.’ Additionally, builders here were among the first to offer an online payment system for a property.

One of the major positives of this city is that it has always adapted well to the changing market dynamics, and therefore remains well-positioned for future growth as well.

As per ANAROCK data, the city added 8,800 units in Q2 2018, a quarterly increase of 28% against the preceding quarter.

by Anuj Puri

Anuj Puri, Chairman – ANAROCK Property Consultants

Hyderabad’s residential demand has witnessed a significant increase due to rising employment opportunities and positive market outlook, which were just marginally affected by policy changes including DeMo, RERA and GST.

ANAROCK Property Consultants’ report ‘Hyderabad: The Bright Spot in Indian Real Estate’ analyzes the city’s major real estate trends and highlights that the city has emerged as one of the most sought-after residential destinations in the country.

The city is experiencing a phenomenal spurt in residential real estate activity with appreciating capital values and increase in retail and office space absorption from 2014 to 2018.

Policy support from local government to strengthen the socio-economic indicators has largely attracted investments post-2014.

Hyderabad Real Estate Supply-Absorption Trends

Absorption in Hyderabad increased by 21% in 2017 as against the previous year due to positive market sentiments coupled with growing IT workforce mainly in the western zone. The absorption in Q1 2018 is at par with the new supply being pumped into the market.
The unsold inventory in the city has been declining gradually since 2017.

by Anuj Puri

Anuj Puri, Chairman – ANAROCK Property Consultants

Technology is disrupting different industries across the world, and real estate cannot be far behind.

Already, real estate consultants have moved beyond the traditional ways of prospecting, with the Internet opening up the market in unprecedented ways and taking a lot of the footwork out of finding property options.

As much as 70% of modern real estate consultancies’ prospects are today acquired through digitally-obtained leads.

As big data and analytics become more integrated with the property brokerage industry, such consultancies are now ‘cracking the code’ by in many innovative ways, including:

Obtaining and feeding deal and bid information into their company’s central repository at the tap of a few buttons
Instantly matching customers’ requirements with the available options
Tracking data on projects’ construction progress and regulatory compliances in real time as and sales figures information

If we look at the larger picture of technology use in the real estate business, various new avenues and means of doing business are going to open up. Let us, for example, take crowdfunding.

Crowdfunding in Real Estate

Crowdfunding could emerge as a new way for real estate consultancies to add value both to developers and their customers.

by Arun Chitnis

91% of Indian retail sales driven by brick-and-mortar stores, but smaller cities remain underserved
Good quality mall stock to increase by 10-15%; mediocre-to-weak stock to decline by 5-10%

While e-commerce and brick-and-mortar stores will continue to co-exist in India, e-commerce currently has a definite edge over physical retail in India’s tier II and tier III cities warns ANAROCK Retail’s report ‘Rebirth of Retail Malls: New, Improved and Revitalized’.

The report, which was released at the India Retail Forum (IRF) in Mumbai today, mentions that India’s tier-II / tier-III cities will also be key contributors to the country’s retail growth going forward. The organized retail market is growing at CAGR of 20-25%.

“Nearly 100 million people out of India’s 300-400 million-strong middle class currently live in tier-II and tier-III cities,” says Anuj Kejriwal, MD & CEO – ANAROCK Retail. “This indicates that a significant portion of Indian retailers’ target clientele lives in the non-metro cities. In cities such as Jaipur and Surat,

by Arun Chitnis

Piramal Capital & Housing Finance Announces the Launch of its Housing Finance Business in Nashik

25+ start-ups and 6,000 angel investors sharp-focusing on the city
726 MahaRERA registered projects in Nashik city out of 904 new and ongoing projects in Nashik
₹2,200 Crore as an estimated cost to turn Nashik into a Smart City

Nashik, 31st August 2018: CREDAI Nashik Metro & ANAROCK Property Consultants released a research report on Nashik: Land of Opportunities at the Capital Connect event held today in collaboration with Piramal Capital & Housing Finance. The report findings state that Nashik is emerging as a favoured investment destination.

The report focuses on Nashik’s immense potential as an exciting new destination for domestic and global businesses. In addition, Mr Jijina formally announced the launch of the housing finance business of Piramal Capital & Housing Finance in Nashik.

Mr Khushru Jijina, Managing Director – Piramal Capital & Housing Finance Ltd. Said, “Nashik exhibits tremendous potential as a promising new investment destination in North Maharashtra. We are delighted to announce the launch of our housing finance offering in Nashik – which marks our strategic foray into selective non-metro markets.

by Anuj Puri

Anuj Puri, Chairman – ANAROCK Property Consultants

Highly-delayed units in MMR and NCR are worth a whopping ₹3,60,000 crore
Hyderabad has least project delays with around 8,900 units worth ₹5,500 crores delayed
Dilutions in RERA make it ineffective in some states

Incessant project delays, dodgy activities of some developers and land litigation issues have plagued the Indian real estate sector over the last several decades, not helping its domestic and international image.

Realizing the significance of real estate on the economy of the country, the Government has, over the last few years, been taking active measures to bring in greater transparency and efficiency.

However, despite the implementation of game-changing policies like RERA and GST, the issue of stalled or delayed projects that has primarily been at the core of buyers’ discontent is yet to be addressed satisfactorily.

If we add up the numbers for the top 7 cities, it emerges that the residential real estate launched in or before 2013 that is stuck in various stages of (non) completion is collectively worth a whopping ₹4,64,300 crore for a total of 5,75,900 units that are yet to be delivered to their respective homebuyers.

India Real Estate – The 2018 Story So Far

Residential Real Estate

Should You Buy a Home this Festive Season?

Real Estate Consumer Outlook – H2 2018

Panvel: Strategic Location + Excellent Connectivity = Growth

Bengaluru’s Hottest Residential Property Destinations

Hyderabad: The Bright Spot in Indian Real Estate

Technology In India Real Estate – From Crowdfunding To Blockchain

Indian Malls Resurge, But E-Commerce a Threat in Tier-II, Tier-III Cities – ANAROCK Report

91% of Indian retail sales driven by brick-and-mortar stores, but smaller cities remain underserved

Good quality mall stock to increase by 10-15%; mediocre-to-weak stock to decline by 5-10%

CREDAI, ANAROCK, Piramal Capital & Housing Finance Release Research Report on Nashik – Land of Opportunities

Can RERA Rescue ₹4,64,330 Cr of Stuck Housing?