Anuj Puri, Chairman – ANAROCK Property Consultants

The applicability of GST in the Indian taxation system was a move aimed towards ‘one nation, one tax’.

Post land abetment, the applicable GST for under-construction properties was 12% while ready-to-move-in flats were kept out of the GST ambit.

Even for under-construction properties, there was a ruling of Input Tax Credit (ITC) pass-over to the buyer to ensure that it becomes a tax neutral proposition.

While calculations and ITC pass-over still remain a challenge after 1.5 years of GST regime, a recent announcement stated that there is no GST applicable only on ready-to-move-in flats wherein sales took place after the issue of completion certificate.

This is likely to add woes to buyers as well as developers.

Impact on Buyers

Until now, all properties that were treated as ready-to-move-in were out of GST ambit, so buyers had significant choices.

As per ANAROCK data, more than 90,000 units out of total unsold inventory of 6.87 lakh units (as of Q3 2018) across the top 7 cities were ready-to-move-in – a massive 14% of the overall unsold stock.

Anuj Puri, Chairman – ANAROCK Property Consultants

The recent stand-off between the government and the RBI owing to the NBFC crisis and the apex bank’s endeavour to maintain its autonomy and reserves had caused the industry to watch closely whether the repo rate will increase or remain unchanged.

That said, today’s move by the RBI to keep the repo rate unchanged at 6.5% was more or less expected. This was not solely because inflation targets are still under control.

Politically, an upward revision would not have served the current Government well as the 2019 elections are around the corner.  From the economic standpoint, a hike in repo rates would have had a direct impact on home loan rates.

High housing loan interest rates are known deterrents to many buyers, especially in the affordable segment where higher interest rates can and do weaken sentiment.

Any move to further discourage customers from availing of bank credit would ultimately exacerbate the liquidity crunch and adversely impact the economy.

From that perspective, the unchanged repo rate will at least keep the demand for housing loans at status quo.

The RBI obviously needs to maintain an adequate buffer for the economy – especially in light of the massive changes that are likely to come about in the next few months in form of REITs and SPVs.

To expand ANAROCK’s UAE presence with new offices in Oman, Bahrain, Kuwait & Saudi Arabia by 2019 end

Mumbai / Dubai, 5 December 2018: ANAROCK Property Consultants today announced that sales & marketing veteran Shajai Jacob, previously Executive Director & Head – Marketing (West Asia) at international property consultancy JLL India, has been appointed as Chief Executive Officer – GCC (Middle East).

He will be based out of ANAROCK’s Dubai office and will have complete oversight of the Firm’s brokerage operations across the Middle East & North African countries.

Anuj PuriAnuj Puri, Chairman – ANAROCK Property Consultants says, “We are excited to have Shajai on board to spearhead our rapidly growing Middle Eastern business. Shajai is perfectly aligned with our vision of becoming the most preferred, one-stop, technology-powered residential real estate services firm in the GCC region. He will expand our presence beyond our existing Dubai operations with 4 new offices in Oman, Bahrain, Saudi Arabia and Kuwait over the next 3 quarters. Having worked closely with him for nearly a decade, I have complete confidence in Shajai’s ability to implement our ambitious plans for the Middle East”.

PRESS RELEASE

ANAROCK Launches Consulting Services Headed By Ashutosh Limaye

Gaurav Wahi joins as Head of Operations, ANAROCK Consulting

Mumbai, 19 November 2018: Leading full-stack real estate services providers ANAROCK Property Consultants have announced the formal launch of ANAROCK Consulting Services.

The division will be led by industry veteran and thought-leader Ashutosh Limaye as Director & Head – ANAROCK Consulting Services.

Limaye was previously National Director & Head of Research at a leading international property consultancy. His long-standing senior associate Gaurav Wahi comes on board as Head of Operations for the new Consulting vertical.

Ashutosh Limaye“It is exciting to be a part of ANAROCK, India’s most disruptive and tech-driven real estate services firm,” says Ashutosh Limaye. “We look forward to amplifying its scope with our consulting expertise. This division will provide expert advisory services to major real estate stakeholders across the board, starting with developers. We service Government agencies, banks, NBFCs, institutional investors and retailers as well as HNIs and end users on the perfect entry,

At Economic Times-powered ACETECH event on 15th November 2018 in Mumbai, knowledge partners ANAROCK Property Consultants will release their latest and most incisive report on MMR – ‘The Peripheries – Greater Mumbai’s Future Suburbs‘.

A veritable Who’s Who of Mumbai’s real estate industry is participating in a panel discussion on Mumbai: Resurgence and Preparation for The Big Leap

Panellists:

  • Dr Niranjan Hiranandani, Managing Director – Hiranandani Group
  • Venkatesh Gopalkrishnan – CEO, Shapoorji Pallonji
  • Parag Munot, Managing Director – Kalpataru
  • Vikas Oberoi, Chairman & Managing Director – Oberoi Realty
  • Sandeep Runwal, Chairman – Runwal Constructions
  • Shrikant Joshi,  CEO – L&T Realty
  • Sangeeta Prasad, Managing Director & CEO – Mahindra Lifespaces Developers
  • Ashish Raheja, Managing Director – Raheja Universal
  • Hafeez Contractor – Architect Hafeez Contractor
  • Neel Chandra Raheja, President –

 Anuj Puri, Chairman – ANAROCK Property Consultants

  • 4.25 lakh housing units ready-to-move-in in top & cities
  • Only 5% buyers will consider under-construction projects

RERA was supposed to save the day for homebuyers, but that doesn’t seem to have happened – at least not yet. In many states RERA, in its present form, is currently either non-existent or a pale shade of what it was intended to be. It is a fact that RERA has been diluted in some states to favour developers while in a few others it hasn’t even been deployed yet.

RERA’s primary area of focus is under-construction properties. After all, this is the area where buyers had been facing the most challenges on account of project delays, project plan deviations and various other issues.

As things stand now, states like Maharashtra, Uttar Pradesh, Gujarat, Karnataka, Punjab, Madhya Pradesh and Rajasthan have the benefit of operational RERA, but even in these states, the registration numbers are far from motivating.

While Maharashtra comes out on top with over 18,300 projects registered under it, other states where RERA has been implemented are lagging far behind.

  • Housing sales increase by 32% in a year, highest amongst the top cities
  • Unsold housing stock declined by 32%
  • Maximum new supply in the Rs. 40 – 80 lakh budget range

Bengaluru, 29 October 2018: Bengaluru’s real estate market has out-performed all other cities in terms of shedding unsold housing inventory, says the latest report by ANAROCK Property Consultants.

The report, released at ACETCH 2018 in Bengaluru last Friday, confirms that Bengaluru saw a remarkable decline of 25% in the total unsold stock across the top cities.

City-wise Unsold Inventory (in Units)

City-wise unsold inventory

The report studies Bengaluru’s residential real estate trends since 2013, factoring in the city’s evolution in terms of infrastructure development, transport and connectivity.

Given the ever-escalating challenges the city faces on these fronts, a marked preference for walk-to-work options by homebuyers has become evident. That said, Bengaluru’s overall market profile retains most of its sheen thanks to its highly favourable confluence of market drivers.

Anuj PuriAnuj Puri,

  • Compact homes (area less than 646 sq. ft)see maximum traction in Vadodara
  • Surat’s residential market set to boom on the back of DREAM City

Ahmedabad, 26 October 2018: Gujarat’s real estate market presents a mixed bag of highs and lows, according to ANAROCK Property Consultants’ report ‘Gujarat – Land of Innumerable Possibilities.

As knowledge partner for the event, ANAROCK launched the report at the CII Realty & Infrastructure Conclave 2018 in Ahmedabad today.

Shobhit Agarwal, MD & CEO – ANAROCK Capital said, “Gujarat has attracted over ₹65,432 crores of FDI over the last 5 years, accounting for 5% of the total investments in the country. The state’s major real estate markets are largely stable, barring a minor price correction in early 2017 due to demonetisation. Smaller-sized housing units appear to attract the maximum demand overall, though Surat is a notable exception. While there has been fairly constant housing price growth in all segments since 2016, the maximum price rise in major cities of the state has been in the mid-segment.”

Housing Price Trends

Dinesh J.

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.

Anuj PuriCommenting 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.

Home loans

Anuj Puri, Chairman – ANAROCK Property Consultants

The 25 bps increase in the repo rate announced in today’s third bi-monthly monetary policy was in line with our expectations. Amidst rising inflation, depreciating rupee and other global macroeconomic risks, this increase is fairly justified.

While this may lead to a hike in home loan rates as well, the overall real estate sector now rests on a strong footing and buying decisions may not be altered by these marginal changes.

As per ANAROCK research, nearly 60,800 units were sold in Q2 2018 across the top 7 cities of India, which is a 24% rise over the previous quarter. Amidst a 50% quarterly rise in new launches in Q2 2018 too, unsold inventory reduced by 2% from 7.11 lakh units in Q1 2018 to 7.0 lakh units in Q2 2018.

These numbers clearly indicate that the markets are now recovering from the shocks of structural changes and policy reforms. In fact, genuine home buyers have welcomed these actions which have imbibed the much needed financial discipline, accountability and transparency in the sector.

With lucrative deals on the table,