Real Estate Trends – Page 35

Mumbai’s Mithi River Rejuvenation Misses Deadline – Again

Anuj Puri, Chairman – ANAROCK Property Consultants

Seasonal swelling, eroded mangroves a major cause of flooding
Cleanup was supposed to start in June ’18

Despite the repeated claims of the Mithi River Development and Protection Authority (MRDPA) to make the river risk and stench-free within the next two years, the progress has been far from satisfactory.

The river continues to be the sewage disposal stream for Mumbaikars, and the clean-up act – promised to start from June 2018 onward – has yet to see the light of the day.

In what could be called a saving grace, the authorities have been successful in preventing 2005-like floods in the city, or else this laxity in the river clean-up would have been embarrassingly highlighted.

The authorities continue to pat themselves on the back for the deepening and widening of the river over the last decade at the cost of a whopping ₹1200 crore, which they claim has helped make the river ‘almost completely safe.’

The fact that it continues to be a toxic cesspool puts a big question mark on the ‘safety’

by Anuj Puri

Anuj Puri, Chairman – ANAROCK Property Consultants

When we reflect on India’s 71 year-long independence in context with real estate, one thought overshadows all others – affordable housing. No nation can call itself truly self-sufficient until there is a roof over every head.

We can talk about increased transparency and efficiency, but this has true relevance only if it is not just the industry that benefits but also the common man.

Embodying this very basic but profound premise, the Modi Government’s election manifesto of providing Housing for all by 2022 definitely rang all the right bells.

Obviously, it boils down to unleashing a massive number of affordable homes, and the Government has certainly gone the extra mile to make that happen. Unfortunately, what we have seen so far is more marketing hype than genuinely affordable housing.

Many developers have climbed on the ‘affordable housing’ bandwagon, but actually the term ‘affordable’ is in most cases just being misused to ostensibly show alignment to the ‘Housing for All’ mission.

Of course, builders have been generously applying terms like ‘affordable’ and ‘luxurious’

by Anuj Puri

Anuj Puri, Chairman – ANAROCK Property Consultants

In the 71 years since India gained independence, the country’s real estate market has changed tremendously.

While it has not always been consumer-favouring throughout this period, it is certainly so today. The country’s cities have expanded, new economic drivers have come in and jobs are being created at all levels.

Likewise, appropriate housing is now being created for all income levels. The current Government has taken the needs of the people to heart and deployed various policy initiatives to ensure that homeownership becomes affordable and desirable.

Like the real estate market itself, the market for housing loans has become very competitive, giving consumers the edge of choice. Moreover, property prices have also rationalized across the country after the Government’s demonetization move late last year.

While it was initially expected that only the resale homes and land markets would be affected, it quickly became evident that the lowered sentiment had percolated in primary sales as well.

Many of the most important changes to positively impact home buyers in India so far have been at the policy level,

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 Anuj Puri

Anuj Puri, Chairman – ANAROCK Property Consultants

The concept of ‘by invitation only’ (BIO) housing projects tends to make Indians’ antennae perk up, and not necessarily from a demand perspective. This is one of those ‘grey’ areas of real estate which carry with them very strong emotional markers.

We’re not taking gated communities here – the acquisition of a property in a gated community rarely depends on anything more than a buyer’s net worth. By invitation only projects clearly exclude a certain segment of buyers, often for reasons other than their lack of purchasing power.

What Is The Market Size for BIO Housing?

This is a very ill-defined segment of housing, which means it cannot be ‘tracked’ in the classical sense of the word. The overall ultra-luxury sector represents about 5-6% of India’s real estate pie.

Any luxury project could be marketed as ‘by invitation only’ – either as a sales gimmick or on the basis of actual selection criteria other than purchasing power. However, BIO projects may not necessarily refer to luxury at all – which makes it even harder to track.

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 Santhosh Kumar

Santhosh Kumar, Vice Chairman – ANAROCK Property Consultants

10-12% increase in the number of buyers in the secondary real estate since DeMo
Property values in secondary market reduced by as much as 5-10% over primary market

The issue of transparency in secondary or resale real estate transactions has indeed been on everyone’s minds ever since RERA stepped in to rescue the primary or first sale-by-developer market.

The question that looms large is – have the Government’s moves to clean up the sector benefited the resale (or secondary sales) market as well?

Overall, the Central Government has put in tremendous efforts towards creating a healthier and regulated real estate market environment.

Implementation of policies like DeMo, RERA, GST, REITs, the Benami Transactions (Prohibition) Amendment Act, 2016 and the Pradhan Mantri Awaas Yojana (PMAY), among others, have brought fresh hope.

At the same time, the Indian real estate market has also witnessed other interesting new trends – a prominent one being the increased demand for ready-to-move-in properties. Various factors were responsible for this rise.

by Anuj Puri

Anuj Puri, Chairman – ANAROCK Property Consultants

Miracles have been known to happen when a chequebook lies on the negotiation table

Stamp Duty Shocker

On the real estate market, upward revisions of any kind can doubtlessly hurt. Let’s take the Maharashtra Government’s proposal to levy a surcharge of 1% on stamp duty, effectively raising it to 6% from the existing 5%.

Such news, especially at a time when MMR’s real estate market was beginning to show some green shoots of revival with sales and new supply numbers rising, come as a shock.

This is a significant increase in the cost of real estate purchase that will hamper consumer sentiment – especially in the affordable housing segment.

On the one hand, the Government has rolled out multiple sops to boost affordable housing – and on the other, it is increasing the cost of properties. One can only hope that at least affordable housing is saved from this surcharge.

This is real and painful, and the impact is very hard to mitigate.

by Prashant Thakur

Prashant Thakur, Head – Research, ANAROCK Property Consultants

Conceptualized under the Gurugram Master Plan 2021, Dwarka Expressway or the Northern Peripheral Road (NPR) was initially planned to connect Dwarka in Delhi to Palam Vihar in Gurugram.

However, it was further extended to Kherki Dhaula toll plaza intercepting NH 48 as per the Master Plan 2025.

Stretching along 18 km, this 8-lane and 150-meter-wide expressway aims to provide seamless connectivity between Delhi, Gurugram and Manesar.

The expressway passes through sectors 109, 113, 37D, 88B, 105, 99 and many other sectors which saw an upsurge in residential real estate activity since its announcement.

With land acquisition issues over the years, the residential real estate market along the region suffered a major setback.

However, the recent clearance of all major hurdles here has given a new ray of hope to prospective buyers and investors focused on Dwarka Expressway’s many transit-oriented benefits.

The major attraction of Dwarka Expressway is its seamless connectivity between Gurugram and Delhi.

Road: Sectors along Dwarka Expressway will enjoy excellent connectivity to Delhi and the international airport.

Mumbai’s Mithi River Rejuvenation Misses Deadline – Again

71 Years of Independence – Housing for All by 2022?

How Independent Is Indian Real Estate Today?

Ambernath – From Industrial Suburb to MMR Affordable Housing Hotspot

Top Property Investment Hotspots 2018 – West And North India

Breaking the Myths Of ‘By Invitation Only’ Properties

RBI Monetary Policy Reaction

How The Resale Property Market Has Benefited From Policy Interventions

Increased Property Purchase Costs – Hype Vs. Reality

Dwarka Expressway, Gurugram – NCR’s Lifeline-in-waiting