Real Estate Trends – Page 29

5 Years Of Modi: Is Indian Real Estate’s ‘House’ In Order?

Anuj Puri, Chairman – ANAROCK Property Consultants

Like it or lump it, but Modi’s victory in 2014 ushered a new era in Indian real estate – starkly marked by his vision to set the ‘house’ in order and alter the scarred face of an unorganized sector beset by unscrupulous activities.

He tightened the Centre’s grip on real estate – previously the largest dump-yard for black money hoarders – and introduced big-bang schemes to benefit consumers.

From major policy overhauls to amendments in old Acts, from a decisive impetus to infrastructure development, and from the arguably Utopian 100 Smart Cities and Housing for All by 2022, one thing is clear – the Modi government set the stage for Indian real estate to flourish in the long-term.

The measures he took to achieve this did have short-term negative impacts, but nobody can argue that this is a case where short-term pain is necessary for the sake of long-term gain.

That said, the on-ground implementation for most of these initiatives is far from what could have been achieved even in just five years.

Let’s examine the five major initiatives Modi undertook for the real estate sector –

by Anuj Puri

NCR and MMR account for 55% share of total 6 lakh affordable units launched across the top 7 cities; NCR saw maximum supply
Of the total 3.98 lakh units sold in sub INR 40 lakh category, NCR & MMR hold 57% share
Pune comes next with 1.13 lakh units launched and approx. 75K units sold in the affordable segment
Bengaluru, Chennai & Hyderabad saw the least activity in the affordable segment

Mumbai, 15 March 2019: It is the biggest shift that the Indian real estate market has seen so far. The previously ‘unaffordable’ real estate markets of NCR and MMR have led the thrust of affordable housing – in both new supply and housing sales – over the last five years.

ANAROCK Property Consultants‘ latest report ‘Affordable Housing: The Blue-Eyed Boy of Indian Real Estate‘ confirms that these two regions contributed a whopping 55% share of the overall new budget housing supply between 2014 and 2018.

The report, which knowledge partners ANAROCK unveiled at the CII Real Estate Confluence 2019 in Mumbai today,

by Anuj Puri

Anuj Puri, Chairman – ANAROCK Property Consultants

Properties within INR 40 lakh budget see 23% fall in average sizes – from 750 sq. ft. in 2014 to 580 sq. ft. in 2018
Avg. property sizes in the top 7 cities decline by 17% in 5 years; from 1,390 sq. ft. in 2014 to 1,100 sq. ft. in 2018
Bangalore sees the least size reduction at 12%, MMR tops with 27% average decrease

When it comes to housing, size matters for all kinds of reasons. The added floor space of larger homes definitely spells comfort, convenience and family scalability, every additional square foot either comes at a higher price or pushes available options further away from the central regions of a city.

Millennial homebuyers have already made it clear that they prefer affordability coupled with good location over larger-sized homes in the far-flung suburbs. Simultaneously, developers are intent on making their housing projects more pocket-friendly for a higher customer base.

As a result, the top 7 Indian cities collectively saw average apartment sizes shrink by nearly 17% between 2014 and 2018.

by Arun Chitnis

To market properties across India to Kenya’s populous & thriving ‘44^th tribe’ targeting investments in their homeland

Nairobi, 10 March 2019: India’s leading real estate agency ANAROCK has partnered with Satguru Group for an event to promote investment into Indian real estate by Kenya-based NRIs. This feature-rich event will be held on Sunday, 10th February 2019 in Nairobi.

During the event captioned as ‘Karmbhoomi Se Janambhoomi’, ANAROCK and Satguru Group will showcase attending NRIs with some of the best investment opportunities in India real estate.

The spread of options will encompass all housing formats from apartments and villas to townhouses in both the affordable and premium segments.

Shajai Jacob, CEO – GCC, ANAROCK Property Consultants says, “While there is a constant discussion revolving around NRIs from the Gulf, US, UK and Europe, Kenya-based Indians do not seem to appear on anyone’s radar. This is surprising, given that Kenya-based Indians – though only about 1% of the country’s population, are actually heavily involved in Kenya’s economy. In fact, Indians in Kenya contribute substantially in most of the sectors driving Kenya’s economy and operate countless small and large business enterprises in all of Kenya’s major geographies.

by Anuj Puri

Anuj Puri, Chairman – ANAROCK Property Consultants

Nearly 60% of women home seekers prefer a property within the budget-range of INR 80 lakh; 52% will opt for ready-to-move-in homes
Women homebuyers benefit from lower stamp duty charges, low home loan interest rates, and tax deductions
Women must now mandatory be either co-owners or sole owners of affordable homes.

There’s a famous saying – the hand that rocks the cradle rules the world. This is so apt today, as women are excelling across sectors and increasingly making their mark in a male-dominated world.

The 21st-century millennial woman is progressive and increasingly financially independent. This had led to a distinct shift in her investment preferences – where gold and fixed deposits were the primary choices for Indian women, real estate now rides high in her investment portfolio.

In fact, in ANAROCK’s consumer sentiment survey, nearly 20% of participants were women. Among the many highlights of this survey – nearly 42% of women respondents preferred real estate as an investment asset class, followed by 30% for FDs and a mere 17% for gold.

by Arun Chitnis

PRESS RELEASE

ANAROCK Completes 300 Exclusive Project Mandates Worth INR 22,000 Cr

100 exclusively mandated projects worth INR 9000 Crore currently ongoing
Sale rate of 1000 units/month unprecedented in the current market
The firm relies heavily on technology as the key differentiator

Mumbai, 27^th February 2019: ANAROCK today announced the successful closure of 300 exclusive mandates to market residential projects across India and in the Gulf. The cumulative market value of the inventory sold to date exceeds INR 22,000 Cr.

Anuj Puri, Chairman – ANAROCK says, “ANAROCK has strategically partnered with over 150 top developers across 13 Indian cities and in the Gulf. The market value of the overall mandated inventory we have sold since our launch in 2017 exceeds INR 22,000 Cr across the 300 residential projects. Interestingly, 11,000 units of these, with a value of INR 10,000 Cr, were sold in the current financial year (FY18-19) itself. The combination of focused experienced brokerage and our bespoke technology has been a winning combination.”

by Arun Chitnis

Three-fold jump of mall supply this year – from 3.2 mn. sq. ft. in 2018 to nearly 10 mn. sq. ft. – following supply rollover from the previous year
Online players plan survival tactics post new E-commerce policy; eye brick-and-mortar spaces
E-commerce pegged to grow at 27% CAGR, offline retail at 16% between 2017 & 2021
Nearly US $1.42 bn FDI infused in Indian market between April 2000 to June 2018

Mumbai, 25 February 2019: Responding to burgeoning consumerism in India, mall developers are rapidly infusing new retail developments across the top 7 cities, with nearly 10 mn. sq. ft. new mall supply in 2019.

Factoring in the rollover of some supply from 2018, there will be a three-fold jump in 2019 against the preceding year.

These and other critical insights are outlined in the research report ‘Customer Experience (CX): The Epicentre of Retailing’ by ANAROCK Property Consultants, released at the Retail Leadership Summit (RLS) 2019 in Mumbai today.

Customer experience and built environment are completely metamorphosing the retail business in the country,

by Anuj Puri

Anuj Puri, Chairman – ANAROCK Property Consultants

The slash in GST rates to 5% without ITC from the previous 12% with ITC for premium homes, and to 1% minus ITC for affordable homes from the earlier 8%, gives the beleaguered realty sector the much-needed breathing room and will certainly help it maintain some forward momentum in 2019.

Another booster shot given by the government is changing the very definition of the budget-range of affordable housing.

Extending the definition to housing priced within INR 45 lakh is credible. It will make more properties from the premium budget fall into the affordable segment category, and thus benefit buyers in cities like MMR where property prices are exorbitant.

Yet again, the affordable segment has got a major push today and buyers of this segment will benefit immensely. This will certainly cause sales of housing units within this segment to rise to a significant extent. Most players currently have considerable unsold stock within this segment.

ANAROCK data confirms that there are as many as 5.88 lakh under-construction homes lying unsold in the top 7 cities. Of these, 34% are priced below INR 40 lakh alone.

by Arun Chitnis

Indian façade industry worth INR 15,000 Cr, growing 20% annually; global façade market to reach USD 340 billion by 2024
Fenestration and curtain wall industry pegged at INR 10,000 Cr – 65% share by fenestration, 35% by curtain walls
Sustainable, eco-friendly façade products now an industry imperative

New Delhi, 22 February 2019: Sustainable and eco-friendly façade developments focused on energy conservation and reduced dependency on fossil fuels are the new imperative of the rapidly-growing façade and fenestration industry, states ANAROCK’s Fenestration Industry Report.

The report, in association with World of Fenestration, was released at the World of Fenestration 2019 event in New Delhi today.

Santhosh Kumar, Vice Chairman – ANAROCK Property Consultants says, “Rapid real estate and infrastructure development in India directly impact the demand for façade and fenestration products, particularly in office spaces. Our cities are going increasingly vertical, and vertical development created heat islands which environmentally unfriendly products exacerbate. Moreover, eco-friendly façade and fenestration products promote officegoers’ wellbeing and productivity.”

“The quest for creating iconic office structures plays heavily on façades and fenestration to evoke a modern aesthetic ethos.

by Anuj Puri

Anuj Puri, Chairman – ANAROCK Property Consultants

The keenly-awaited meeting of the Goods and Services Tax (GST) Council, which was supposed to deliver a final decision on the differential tax rates on real estate yesterday, hopes to reach a consensus on the 24th.

This is a critical matter and the outcome will have a notable impact on real estate market sentiment.

The levying of 5% GST (without the benefit of input tax credit or ITC) can help boost homebuyers’ favourable disposition towards making a purchase decision.

While it may not trigger the kind of massive housing sales which the industry sorely needs, it can make a difference.

The crux of the matter is the relative merits and demerits of two propositions – a flat 5% GST without ITC or a higher GST with ITC.

If the Government decides on 5% GST without ITC, here are the impacts on different industry stakeholders:

GST Impact On Home Buyers

Lowering the GST rate can definitely provide a short-term boost for fence-sitting homebuyers to make purchase decisions.

5 Years Of Modi: Is Indian Real Estate’s ‘House’ In Order?

NCR and MMR Lead Affordable Housing in Last 5 Years – CII-ANAROCK Report

Honey, I Shrunk the Flat! Budget Housing Sizes See Most Decline in 5 Years

ANAROCK Partners With Satguru Group For India Real Estate Investments By NRIs In Nairobi, Kenya

Millennial Women: Riding High On Home Ownership

ANAROCK Completes 300 Exclusive Project Mandates Worth INR 22,000 Cr

New Mall Supply To Touch 10 Mn. Sq. Ft. In Top 7 Indian Cities In 2019: ANAROCK Report

GST Rates Cut, Affordable Housing Redefined

Sustainability A Prerogative For Indian Façade And Fenestration Industry – ANAROCK Report

5% GST Without ITC: Impact On Buyers, Builders And The Exchequer