Real Estate Trends – Page 39

Sector 150, Noida – Infrastructure Development Driving NCR’s Greenest Sector

Prashant Thakur, Head – Research, ANAROCK Property Consultants

Conceptualized as an industrial town, Sector 150 falls in the peripheral area of New Okhla Industrial Development Authority (NOIDA).

During the mid-2000s, Sector 150 evolved as an IT hub and subsequently attracted real estate developments primarily due to effectively-planned layouts.

Situated at the confluence of Yamuna and Hindon rivers along the bustling Noida-Greater Noida Expressway, Sector 150 is now one of the preferred residential destinations of Noida. The key factor which differentiates Sector 150 from other regions is the presence of massive green spaces.

The land use planning of Sector 150 has been undertaken in a pattern that ensures 80% of the 600-acre land parcel remains under greenery and only the remaining 20% is allocated for construction activities. Nearly 42 acres of land are dedicated specifically for parks and recreational facilities.

This micro-market is equipped with good social infrastructure including reputed educational institutions, hospitals and shopping complexes. Sector 150 is currently flourishing with real estate activity, and there is a visible rise in residential developments, integrated townships, commercial spaces and mixed-use developments.

Located strategically,

by Anuj Puri

Anuj Puri, Chairman, ANAROCK Property Consultants

I had the honour of being featured on the cover of Construction Week magazine this month. It was an incredibly interesting interview with the magazine’s dynamic editor, Jayashree Kini-Mendez.

Here are some excerpts:

What the Indian real estate sector requires today

In my opinion, only disruption can save the day for the Indian real estate sector. Both because of the groundbreaking policy reforms now in place and the changing mindset of real estate consumers, the old ways of doing business simply cannot prevail any longer.

What is required are new ideas, new ways of conducting business, and a far greater focus on accountability and transparency than has been evidenced by the industry so far. ANAROCK Property Consultants is a new benchmark for impeccable values, corporate governance and customer-focus in the Indian real estate space.

On my entrepreneurial streak

If one has it, the entrepreneurial streak is not something that will be denied for very long. I had to fulfil my obligations to my previous firm in the manner which the role required of me,

by Anuj Puri

But is it enough? ANAROCK’S latest real estate research report provides critical data and insights

Anuj Puri, Chairman – ANAROCK Property Consultants

Although sustainable real estate is still in a nascent stage in the country, India is actually one of the leading counties when it comes to green buildings development.

In fact, India ranks only second after the U.S. in terms of the number of green technology projects and built-up area.

As of September 2017, more than 4,300 projects utilizing green technology, accounting for approximately 4.7 billion sq.ft. of built-up area, are registered in India as per data shared by IGBC.

True, this is only 5% of the total buildings in India. However, the country’s market for green buildings is expected to double in the next few years and may reach up to 10 billion sq.ft. by as early as 2022 – at a valuation of between US$ 35 billion to US$ 50 billion.

Why India needs green buildings

ANAROCK’s latest real estate research report, Go Green – The Mantra for Sustainable Living,

by Sukhdeep Aurora

Sukhdeep Aurora, Chief People Officer – ANAROCK Property Consultants

When it comes to the factors influencing recruitment trends in Indian real estate in 2018, a lot comes to mind.

However, there are three interesting developments which can be considered predominant among them:

Technology adoption

Adeptness in digital technology and upskilling to Digitech skills are definitely prime watchwords for selecting the right candidates. To be sure, technology is the change driver around which more and more real estate recruitment decisions will be taken.

This is because, whether an industry which tends to hang stubbornly on to the traditional ways of doing its business likes it or not, technology will replace – and in fact is already replacing – at least 75% of the traditional methods of sourcing real estate opportunities at both the buyers’ and sellers’ end.

In this highly opportunistic market, operational speed is of the greater essence than ever before, and the use of technology to achieve this speed is indispensable.

Nor is this increasing focus on technological skills limited to just consultancies –

by Anuj Puri

Anuj Puri, Chairman – ANAROCK Property Consultants

Gurugram is home to around 1,500 start-ups and is the 4th largest start-up hub in India. As the city hosts the behemoths of the start-up industry, it makes sense to delve a little deeper into this fascinating new office space sector in Millennium City.

Emerging commercial office locations in Gurugram, as also in Bangalore, Navi Mumbai and Hyderabad, have benefited significantly from the Indian start-up euphoria. This trend is likely to continue for some time given the availability of large talent pool and availability of real estate spaces.

The start-up eco-system in India has been a key contributor to the rise in investments and job creation. Many start-ups that commenced operations in later part of the previous decade have already become medium-sized or large companies, particularly if we look at some of the popular e-commerce companies in India today.

From zero contribution to office space take-up, the e-commerce sector today contributes over 3% of the total office space absorption on an annual basis. We expect the growth in this sector to increase over time.

The government initiatives,

by Anuj Puri

Anuj Puri, Chairman – ANAROCK Property Consultants

A quick look at the numbers of the first month of 2018 reveals that the market is changing for good. With new launch sales of 500 units across the top 7 cities of India in January 2018, new launch sales have doubled from December 2017.

This uptick is a major motivational boost to stakeholders who had been grappling with subdued demand for the past few years. Although a couple of months into 2018 are not a major indicator of how the markets will behave during the ensuing months of the year, they surely provide guiding cues.

As ANAROCK’s Annual Residential Report 2017 illustrates, there are certain teething troubles in the sector that is adjusting to the new ways of doing business, and a few trends are likely to stick around in 2018:

A continuing buyers’ market

With the crackdown on black money and benami transactions, stringent norms and compliances under the RERA regime, investors – and, more importantly, speculators – have been pushed out of the market.

The Indian real estate sector was extremely buyer-friendly in 2017 and presented an opportune time to ‘seal the deal.’ This trend is likely to continue in 2018 as well and may,

by Anuj Puri

PRESS RELEASE

Chennai Saw Highest Housing Sales Dip In 2017, Bengaluru Lowest – ANAROCK Report

Unsold inventory decreased by 10% from 8.04 lakh units in Q4 2016 to 7.27 lakh units by Q4 2017

Mumbai, 22 March 2018: Fewer launches, subdued sales and muted property prices defined 2017 for the Indian residential real estate sector, according to a detailed report by ANAROCK Property Consultants.

With an annual decline of almost 50% in new launches and 15% decline in sales across top 7 cities in India, the sector was effectively shattered in 2017.

“A spate of policy reforms and structural changes literally crippled the sector,” says Anuj Puri, Chairman – ANAROCK Property Consultants. “Simultaneously and consequentially, it transitioned rapidly into a transparent and buyer-friendly one. With only end-users left to drive the market and investors more or less evaporating completely, developers throttled back severely on new launches to allow the market more scope to absorb the already staggering unsold inventory.”

2017’s Depressed New Launch Readings

The top 7 cities recorded new unit launches of around 26 lakh in 2017 as opposed to 2.50 lakh in 2016.

by Prashant Thakur

Prashant Thakur, Head – Research, ANAROCK Property Consultants

Gachibowli in Hyderabad is a market comprising of a 15 km stretch from Nallagandla-Tellapur along the Financial District, Nanakramguda, Kokapet, Narsingi, Raidurg up to Manikonda.

Recognized as one of the popular IT-ITeS and BFSI hubs of Hyderabad, Gachibowli has emerged as a sought-after destination for commercial office spaces as well as residential developments.

Gachibowli falls in the western periphery of Hyderabad and was once a far-flung region with minimal development and almost negligible residential activity.

However, it has witnessed a tremendous transformation in terms of commercial and residential real estate activity driven primarily by the many major IT-ITeS companies now operating there.

Only 6 km from HITEC City, Gachibowli has ICICI, CMC, Franklin Templeton, UBS, Cognizant, IBM, Microsoft, Infosys and many other large firms driving multi-faceted real estate demand. As a result, it has emerged as a top employment destination in Hyderabad and attracts working professionals from various parts of India.

These commercial office developments have attracted residential developers to come up with projects in the nearby micro-markets, and now the region is booming with massive real estate activity.

by Anuj Puri

Speculator-driven NCR & MMR saw sales drop by 68% and 27% since 2013-14

Anuj Puri, Chairman – ANAROCK Property Consultants

From observing residential market trends over the past five years, it clearly emerges that 2013-14 was the last year where things still looked vibrant for the sector. Housing sales began plummeting after that, and there is no clear revival in sight as yet.

A quick trends assessment for the past 5 years reveals that during 2013-2014, an average of 3.3 lakh units was sold annually. Thereafter, with too many project launches facing off with decreasing demand, unsold inventory began piling up across the top 7 cities of India.

Housing sales dropped significantly in the 2015-2016 period. On an average, only 2.7 lakh units were sold across top 7 cities of India during 2015-16, recording a significant drop of 17% from the average sales of 2013-14.

When demonetization hit the nation during the 4th quarter of 2016, the situation turned from grave to savage. Immediately after the demonetization impact, the real estate sector was battered with RERA and GST which severely shook up the sector.

by Santhosh Kumar

Santhosh Kumar, Vice Chairman – ANAROCK Property Consultants

Chennai, the capital of Tamil Nadu, is one of the biggest cultural, economic and educational centres in South India.

Mercer’s Quality of Living Survey noted Chennai as the safest city in India and is exemplified by the fact that it has the third-largest expatriate population in the country.

Also justifiably called the ‘Detroit of India’, Chennai has over one-third of India’s automobile industry operating there.

Chennai has grown significantly in the last few years. Education prospects and employment opportunities, along with a decent lifestyle, are the key drivers that attract people to the city.

With increasing population, the city’s real estate landscape has also grown by leaps & bounds and is now spread across various zones of Chennai.

Whilst the real estate development paused momentarily due to massive floods of 2015, the fundamental demand drivers remain intact and the city is likely to continue on its growth trajectory in the future periods, reinforced by:

Diversified economic base

Chennai’s diversified economic base is anchored by the automobile,

Sector 150, Noida – Infrastructure Development Driving NCR’s Greenest Sector

The Quiet Iconoclast – A Cover Story In Construction Week (April 2018)

Green Buildings – India 2nd After US In Sustainable Real Estate Projects

Three Major India Real Estate Hiring Trends in 2018

Technology adoption

Gurugram – The Start-up City

Is 2018 the Turnaround Year for Indian Real Estate?

Chennai Saw Highest Housing Sales Dip In 2017, Bengaluru Lowest – ANAROCK Report

Hyderabad’s Gachibowli – from Anonymity to IT-ITeS / BFSI Hotspot

Declining Housing Sales – The Devil in the Data

Chennai’s Hottest Property Investment Hotspots