Real Estate News – Page 22

Ready-to-move Vs. Under-construction – Caveat Emptor!

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.

by Arun Chitnis

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)

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 Puri,

by Arun Chitnis

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.”

Dinesh J.

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 Anuj Puri

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,

by Arun Chitnis

PRESS RELEASE

Mayank Saksena Quits JLL, Joins ANAROCK As MD – Land & Head Of South India

Will leverage immense land demand, address South India’s pent-up housing inventory

Bangalore, 1 August 2018: India’s leading real estate services provider ANAROCK Property Consultants have announced that industry veteran Mayank Saksena has joined the Firm as Managing Director – Land & Head – South India Residential Services.

Prior to this appointment, Mayank Saksena was Managing Director of Land Services international property consultants JLL India, where he was also part of the India Leadership Council (ILC).

During his tenure of over a decade there, he closed several high-ticket land deals and acquisition mandates. These include some of the largest land transactions on record across large cities in the country.

In his career spanning over 16 years, he has crafted transactions and acquisitions on behalf of prominent real estate developers, corporates and Government agencies. He is an acknowledged expert on land-related transactions knowledge leader for Pan India real estate markets.

by Anuj Puri

Anuj Puri, Chairman – ANAROCK Property Consultants

The housing ministry’s decision to tweak the eligibility criteria for MIG-I and MIG-II home buyers for houses eligible for interest benefit under PMAY is a phenomenal move to boost sales of large-sized apartments.

As per the revised norms, MIG-I category home buyers with household income between ₹ 6 lakh – ₹ 12 lakh are now eligible for a subsidy for homes up to carpet area of 160 sq. m. from the earlier 120 sq. m.

Similarly, MIG-II category home buyers with household income between ₹ 12 lakh – ₹ 18 lakh are also eligible for a subsidy for homes with a carpet area of up to 200 sq. m. from the earlier it was 150 sq. m.

This change will have a significant impact on home sales in tier II and tier III cities where the land costs and therefore capital values of properties are low and larger apartments are within the reach of such buyers.

The timing of this increase in carpet area eligibility norms is perfect, as the RBI recently decided to revise the housing loan limits for Priority Sector Lending (PSL).

by Anuj Puri

Anuj Puri, Chairman – ANAROCK Property Consultants

With the implementation of accounting standard – IND AS 115, real estate developers will have to do away with the existing percentage completion method and adopt project completion method.

This is not a mere accounting change as it will have a severe impact on the ways & means in which the real estate developers run business, raise funds, price and sell projects.

Under the percentage completion method (old accounting standard), advance payments received from a home buyer towards an under construction flat were considered as revenue and added to the company’s turnover and net income generated from such projects were treated as profits.

However, under the project completion method (new accounting standard), advance payments received from a home buyer towards an under construction flat will have to be treated as loans and not income from sales. This will bear the following impact:

Real estate stock prices may witness a significant correction – stock prices are a function of the company’s profitability and leverage. With changes in the accounting standards, the price-to-book value ratio will change and will bear an impact on the current stock prices.

by Anuj Puri

Anuj Puri, Chairman – ANAROCK Property Consultants

The Union Cabinet’s amendment to the Insolvency and Bankruptcy Code now effectively treats homebuyers as financial creditors and comes as a massive relief to them.

Residential property buyers are now effectively considered at par with banks and other institutional creditors when it comes to recovering dues from real estate developers who have gone bankrupt.

However, it needs to be seen how the resolution mechanism for claiming the dues actually falls in place for the concerned homebuyers. In fact, to be truly relevant, the entire implementation process needs to be clarified to homebuyers.

They need to know how exactly they will be represented in the creditors’ committee – in other words, whether the NCLT will appoint a resolution professional to represent their rights and interests.

That said, this amendment will certainly go a considerable way in bringing more transparency into the overall funding of projects across the country. With homebuyers now getting the opportunity to claim their dues from builders, there is an even stronger burden on developers to deliver on time.

We will now see builders become more cautious while taking funds from financial institutions and banks,

by Anuj Puri

ANB Capital Merges With Anuj Puri’s ANAROCK Property Consultants

Shobhit Agarwal to head new entity as MD & CEO – ANAROCK Capital

Mumbai, 8 May 2018: Anuj Puri, Chairman – ANAROCK Property Consultants and Shobhit Agarwal, MD & CEO – ANB Capital Advisors today announced the formal merger of ANB Capital with the ANAROCK Group to create ANAROCK Capital, which Shobhit Agarwal will head as MD & CEO.

The ANAROCK Group’s residential services division has already defined itself as India’s leading, fastest-growing and most disruptive consultancy in the industry. With the addition of the Capital Markets vertical, ANAROCK takes a major step forward towards its ambitious expansion plans.

“The Indian real estate market is in its next evolutionary stage, and perfectly primed for ANAROCK Capital,” says Anuj Puri. “The firm will fill the massive real estate investment banking advisory gap that exists in a market completely redefined by RERA in terms of how the market operates and who will operate it going forward. Among several other functions,

Ready-to-move Vs. Under-construction – Caveat Emptor!

Bengaluru Sheds Maximum Unsold Stock In A Year – ANAROCK Report

ANAROCK Report Underscores Gujarat’s Thriving Economy, Housing Opportunities

Real Estate Consumer Outlook – H2 2018

RBI Monetary Policy Reaction

Mayank Saksena Quits JLL, Joins ANAROCK As MD – Land & Head Of South India

Revised Flat Size Norms a Major Demand Boost for Larger Homes in Tier 2/3 Cities

Change In Accounting Standards – Impact On Real Estate

Amended Bankruptcy Code Deals An Ace To Homebuyers

ANB Capital Merges With Anuj Puri’s ANAROCK Property Consultants