Real Estate Investment Archives

Q3 2018 – 3% Rise In New Housing Launches, 9% Jump In Buys: ANAROCK

MMR, Pune, Bengaluru & Chennai accounted for 76% of the new supply
MMR saw max. jump in buys with 16% increase, NCR & Hyderabad lowest with 2% increase
Overall unsold housing inventory reduced by 2%

As anticipated, the real estate market across the top 7 cities in Q3 2018 stayed subdued. The quarter saw a meagre 3% increase in the overall fresh housing supply as against the preceding quarter.

These new launches were largely dominated by the lower-budget segment (< Rs. 40 lakh) with nearly 42% of the total new supply. 33% launches were in the mid segment (Rs. 40-80 lakh) and the remaining 25% in the luxury and ultra-luxury segments.

The third quarter of the year is usually a lull period due to the 15-day shraddh period, which is considered inauspicious for buying property. Consequently, builders keep new projects on hold for the ensuing festive season beginning early October.

In terms of purchases, there was a slight increase of 9% during the Q3 as compared to Q2 2018 across the top 7 cities of India.

by Arun Chitnis

PRESS RELEASE

80% Of Navi Mumbai Launches Affordable-To-Mid-Segment – ANAROCK-CREDAI Report

Housing sales have exceeded launches in the past two years
At 36,400 units, Navi Mumbai has only 15% of MMR’s overall unsold supply
Navi Mumbai ranks 2nd in Ease of Living out of 111 cities, surpassing Greater Mumbai & Thane

Navi Mumbai, 5 October 2018: Nearly 80% of the overall residential project launches in Navi Mumbai from 2013 to H1 2018 are in the affordable (< INR 40 Lakh) and mid-segment (INR 40 Lakh – INR 80 Lakh) budget range, states a report by ANAROCK Property Consultants and CREDAI.

The report ‘Navi Mumbai – City of Possibilities‘ was released at the Capital Connect event organized by CREDAI BANM in Vashi, Navi Mumbai today.

Anuj Puri, Chairman – ANAROCK Property Consultants says, “If we focus on the unsold inventory, it emerges that Navi Mumbai has a mere 15% of the overall pent-up housing stock in MMR.

by Prashant Thakur

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 –

by Santhosh Kumar

Santhosh Kumar, Vice Chairman – ANAROCK Property Consultants

Real estate is a dynamic industry where things can change from year to year and even from quarter to quarter. The Indian real estate market has certainly been in flux after the recent policy upheavals. As such, investment decisions must necessarily move with the times.

Here are 2018’s top-ranking real estate investment hotspots in West and North India.

West India

Beyond a doubt, the Mumbai Metropolitan Region (MMR) and Pune have remained West India’s most favourable cities for real estate investment in 2018. The MMR realty market has regained a lot of momentum over the last few quarters, with both sales and new supply increasing q-o-q.

MMR: As per ANAROCK data, out of the total new supply of approximately 50,100 units across the top 7 cities (NCR, MMR, Chennai, Bengaluru, Pune, Kolkata and Hyderabad) in Q2 2018, MMR saw maximum new launches with nearly 13,600 new units entering the market. There was a 59% increase in this new supply as against Q1 2018. On the sales front too,

by Prashant Thakur

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).

by Anuj Puri

Anuj Puri, Chairman – ANAROCK Property Consultants

The landmark reform of Goods & Services Tax (GST) was, in many ways, the final bullet shot to the Indian real estate sector in July 2017. The industry was already reeling under the immediate impact of DeMo and RERA.

GST was touted to be a gamechanger for all sectors including real estate. It was largely anticipated that GST will provide a much-needed respite to homebuyers by way of reduced property prices. Unfortunately, with GST completing one year, it emerges that these expectations were unrealistic.

While the tax-on-tax has been eliminated with the advent of GST, the overall outgo from homebuyers’ pockets seems to have increased by as much as 8% across cities. This ultimately reduces the demand in real estate.

Also, the higher tax rate on purchasing a home – an already staggering expense for most Indians – has kept many home buyers and investors off the market.

Let’s understand this better.

In real time, the cost of raw materials under the GST regime underwent minor changes – cement, paints and plasters were taxed at 28%,

by Anuj Puri

Anuj Puri, Chairman – ANAROCK Property Consultants

Home loans are paid in instalments which are commonly known as Equated Monthly Instalments (EMI). These are fixed amount which is expected to be paid by the borrower to the bank every month as a part of loan repayment.

A bank considers a home loan to be in default when the borrower fails to make a payment and is behind by 90 days. In such a case, the borrower would have missed 3 payments of EMI.

When the home loan is in default, banks do not seize the assets of the borrowers immediately. They send a notice to the borrower stating that the EMI payment has been missed and strict action will be taken in this regard.

Banks are ready to understand the various reasons behind non-payment of the EMIs, which might include financial crisis, accident, etc. if the borrower approaches the bank with an explanation.

Once the reason is conveyed by the borrower or is otherwise evident to the lender, the bank restructures the EMI and extends the loan tenure on the request of the borrower.

by Anuj Puri

Anuj Puri, Chairman – ANAROCK Property Consultants

When it comes to Indian real estate, the topic of NRI investments is pretty much an evergreen one. The fact that Indian developers had, in the past, launched and marketed projects with an almost exclusive eye on NRI customers is certainly no secret.

There were many reasons for this, but the primary one was that NRIs – especially NRIs based in the Gulf and the US – were seen as cash cows with more money than sense.

Time has proved this theory erroneous. NRIs are among the savviest property investors on the Indian market today. This is amply demonstrated by how adroitly they have gauged the new investment trends on the Indian real estate market.

For a long time, the returns on investments that NRIs could get on residential assets were extremely rewarding, considering the significant capital appreciation whilst the rental yields have always been low.

However, during the last couple of years, the market slowdown resulted in capital appreciation on residential assets no longer being as per NRI investors’ expectations.

In the current market conditions,

by Shobhit Agarwal

Shobhit Agarwal, MD & CEO – ANAROCK Capital

As India rises to greater prominence on the world map, global corporates are more eager than ever to participate in the country’s growth story.

A GDP growth rate of 7% plus, a population base of over 1.2 billion and an urbanization rate northward of 30% are irresistible investment magnets, and real estate development remains a key focus area.

India opened its doors to FDI way back in the 2000s, and since then not only much-needed capital but also critical expertise has flowed in. No doubt, the subprime crisis of 2008 led to a decline in foreign fund inflows; however, today the situation has turned and certainly looks upbeat.

The real estate sector was among the main beneficiaries of the opening up of FDI into the country and has transformed significantly as a result. In the past few decades, it has metamorphosed from an unorganized, closely-held business to an increasingly organized and a corporatized one.

The recent structural changes including demonetization, the crackdown of Benami transactions, RERA and GST may have had short-term negative impacts, but they also encouraged the inflow of foreign funding which always reacts favourably to signs of increasing transparency,

by Anuj Puri

The 14 spokes of RERA’s protective umbrella

Anuj Puri, Chairman – ANAROCK Property Consultants

The Indian real estate industry, particularly the residential sector, was in the past correctly characterized as being unregulated and unorganized with unreasonable project delays and poor quality of construction being definitive aspects.

The arrival of the Real Estate Regulatory Act (RERA) in March 2016 brought in a paradigm shift in the sector and metamorphosed it into a more mature, systematic and regulated one.

RERA came into force on May 1, 2017, and is meant to be a homebuyer-friendly regime which will address their grievances and promote transparency, efficiency, financial discipline and accountability in the sector.

Indeed, buying a home is not only the most cherished dream for many Indians but also one of the biggest long-term financial commitment in the buyers’ lifetime.

Considering this, there are 14 important guidelines incorporated in the RERA umbrella to prevent unscrupulous players from raining on consumers’ homebuying plans:

1. Enforcing timely delivery of projects

In case of project delays,

Q3 2018 – 3% Rise In New Housing Launches, 9% Jump In Buys: ANAROCK

80% Of Navi Mumbai Launches Affordable-To-Mid-Segment – ANAROCK-CREDAI Report

Ambernath – From Industrial Suburb to MMR Affordable Housing Hotspot

Top Property Investment Hotspots 2018 – West And North India

At Bengaluru’s Yelahanka, Sound Planning Drives Real Estate Growth

GST Enters Year 2 – Real Estate Still Flummoxed

How To Avoid Defaulting On A Home Loan

The Changing NRI Real Estate Investor Landscape

Returning FDI Equity Scripting India’s Real Estate Revival?

How RERA Is Revolutionizing Indian Real Estate