Real Estate Trends – Page 33

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 Prashant Thakur

Two lateral views from the revolving door

Prashant Thakur, Head – Research, ANAROCK Property Consultants

NRIs Eyeing Indian Properties

Ever since the Indian rupee began nosediving, more and more NRIs (non-resident Indians) have turned their focus to the Indian real estate market. There are good reasons for this.

Other than the favourable exchange rate, the new regulatory environment driven by RERA, DeMo and GST have served to clear up a lot of the misgivings that kept many NRIs from investing in property in India. However, that’s not all there is to it.

Most NRIs, regardless of whether they are permanently stationed or well-settled abroad, at some point entertain a fond wish to buy a home in India – if not for themselves, then for their families back home.

Buying a property is still a mark of prestige and accomplishment for any Indian, regardless of where they are in the world. Nor will most NRIs ever entirely shed a feeling of responsibility towards their families back home.

As per ANAROCK’s recent Consumer Sentiment Outlook survey,

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 Anuj Puri

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 Sukhdeep Aurora

Sukhdeep Aurora, Chief People Officer – ANAROCK Property Consultants

The best companies attract the best talent, but the best talent also knows its value and will always have its sights on even better opportunities. This is why a top-ranking company will focus on employee retention at least as much as on acquiring right talent.

The fact that the best talent will be the most productive is more or less a given – that’s why they are the best. A company’s most productive employees will bring personal accountability and ownership to their work, so they know that their productivity is closely interlinked with their own career growth within the firm.

However, it goes without saying that an organization must also do everything it can to foster not only employee productivity but also satisfaction and a sense of being valued, and ‘belonging’. One of the primary means of doing this is by providing an enabling workplace environment. Adopting an open office plan can be one of the best ways of achieving this.

Open offices have their detractors – and, in many individual cases, some of the objections do have merit.

by Anuj Puri

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 Soumendu Chatterjee

Soumendu Chatterjee, City Lead – Kolkata, ANAROCK Property Consultants

Commissioned in the late 1970s, EM (Eastern Metropolitan) Bypass in Kolkata was previously a long stretch of road abutting undeveloped land.

EM Bypass stretches from Bidhannagar to Kamalgazi and was built to create a high-speed link between the northern and southern fringes, and also to reduce the perennial traffic congestion on Gariahat Road.

EM Bypass connects some of Kolkata’s prominent localities such as Salt Lake, Maniktala, Park Circus area, Gariahat, Sealdah Railway Station, Jodhpur Park, Selimpur, Lake Gardens, Jadavpur and Garia. EM Bypass also provides excellent connectivity to distant parts of Kolkata and other cities.

Located close to Kolkata’s CBD (central business district), the EM Bypass region is today witnessing a surge in housing demand from thousands of employees working in the IT-ITeS companies, industries and public offices in and around it.

In addition to the continuous physical infrastructure upgrades such as ongoing metro and BRTS network, EM Bypass is adequately endowed with social infrastructure. There are a number of retail malls/shopping complexes, high-end hotels and restaurants, hospitals and educational institutions on both sides of the Bypass.

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.

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

NRIs Buying Indian Property, And Indians Buying Property Abroad

Bengaluru Sheds Maximum Unsold Stock In A Year – ANAROCK Report

ANAROCK Report Underscores Gujarat’s Thriving Economy, Housing Opportunities

India Real Estate – The 2018 Story So Far

Residential Real Estate

How To Make The Open Office Plan Work

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

Kolkata’s EM Bypass: Rapid IT-ITe-Fueled Development

Should You Buy a Home this Festive Season?

Real Estate Consumer Outlook – H2 2018