Residential Real Estate – Page 27

MMR’s Most Vibrant Housing Markets – Affordable To Ultra Luxury

Anuj Puri, Chairman – ANAROCK Property Consultants

Among the top 7 cities, MMR saw most new launches – nearly 13,600 units & highest sales at 15,200 units in Q2 2018
17,220 promoters and 15,550 agents under MahaRERA – highest RERA registration Pan India
Stamp duty increase may be a slight dampener in the short-term

On the back of critical policy reforms like DeMo, RERA and GST, 2018 is seeing both sales and new supply picking up across cities. Interestingly, the Mumbai Metropolitan Region (MMR) leads this trend.

ANAROCK data indicates that out of the total new housing supply of around 50,100 units in Q2 2018 across the top 7 cities, MMR saw the highest number of new launches with nearly 13,600 new units – a 59% increase against the preceding quarter.

In terms of sales too, MMR clocked the maximum housing sales with approximately 15,200 units being sold in Q2 2018 – an increase of 26% against Q1 2018.

MMR’s top 3 micro markets across budget ranges 2017 – Q2 2018:

Affordable Segment (<

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 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 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 Anuj Puri

Anuj Puri, Chairman – ANAROCK Property Consultants

Finance Minister, Piyush Goyal’s meeting with top industry stakeholders shows clear intent to salvage the sector

Despite the many interventions by the Government directly or indirectly benefiting the real estate sector in recent times, many pressing problems besetting this industry have remained unaddressed. A major one among these is the issue of stalled projects, which has been at the core of buyers’ discontent.

Taking cognizance of this and several other issues, officiating finance minister Piyush Goyal held a meeting with the top bankers and industry stakeholders to discuss measures that can be taken to bring the industry back on track.

After RERA, this was potentially the most direct and straightforward intervention move that the Government has taken on behalf of the struggling real estate sector.

The item of highest interest on the meeting agenda was the proposal to rope in the National Buildings Construction Corporation (NBCC) to complete stalled projects, a predominant burden of which is NCR.

What is at stake?

Even if 50% of the stalled projects are picked up by NBCC,

by Anuj Puri

Anuj Puri, Chairman – ANAROCK Property Consultants

In any discussion about affordable housing in India today, the fact that a lot of such housing is actually lying vacant is bound to crop up.

One may point out that, especially with the Government’s avowed intention of providing Housing for All by 2022, this supply should logically go towards bridging the affordable housing gap.

However, it is obviously not that simple or it would already have happened. A lot of this budget housing inventory is lying vacant for good reasons.

Before we get into the reason, let’s take a quick look at the numbers. Around 237,000 units across top 7 cities belonging to the affordable housing segment (units priced less than INR 40 lakh) were unsold as of Q2 CY 2018.

This number pertains only to the unsold units of organized private developers and does not include Government housing schemes, which essentially means that the number would go further northwards if those are included.

Given the unrelenting requirements for urban budget housing, inventory that has been created in the major cities by seasoned organized players who know what they’re doing will eventually get absorbed.

by Anuj Puri

Below ₹ 40 lakh budget category rules supply, followed by mid-segment (₹ 40-80 lakh)
Of all supply between 2013-Q1 2018, affordable housing contributed 64%, mid-segment 23%

ANAROCK Property Consultants’ latest report ‘Kolkata: The Shining Star of the East’ analyzes the city’s major real estate trends, and highlights that affordable housing has gained significant traction in Kolkata.

The state government has given a major push to this segment with its a new housing scheme ‘Nijoshree’, which provides homes under two categories to people whose monthly income is < ₹ 15,000 and < ₹ 30,000.

An important finding of this report is that a majority of the supply of housing units is in < ₹ 40 lakh budget. In terms of unsold inventory ageing pattern, only 9% of the units are ready-to-move-in, whereas more than 50% units are due to complete in the next 2 years.

Approximately 1,19,000 units launched in Kolkata between 2013 and Q1 2018, of which 68% were added between 2013 and 2015.
Kolkata accounted for 7% of the overall unsold inventory across the top 7 cities of India as of Q1 2018.

by Prashant Thakur

Prashant Thakur, Head – Research, ANAROCK Property Consultants

Despite new launches decline, property prices in Yelahanka did not correct significantly and actually appreciated by 9% in the past 2 years.

Existing since the 12th century, Yelahanka is closely linked with the origin of Bengaluru. The book ‘Bengaluru to Bangalore’ by T.V. Annaswamy mentions that the word ‘Yelahanka’ is derived from ‘Valipakka’, meaning ‘along the highway.’

Over a period of time, Valipakka (during Chola reign) transformed into Illaipakka (during Hoyasala reign) and finally into Yelahanka.

Rapid Development

The construction of the Kempegowda international airport was a game changer for the region and initiated Yelahanka’s metamorphosis from a sleepy little settlement on the outskirts of Bengaluru into a buzzing residential investment destination.

Yelahanka, which is divided into Old Yelahanka and Yelahanka New Town, is home to many defence establishments such as CRPF training school, Indian Air Force’s Air Force Station and BSF Training Centre.

This micro-market also houses the largest facility of Mother Dairy in Karnataka, as well as the rail wheel factory (India’s largest manufacturer of railway wheels and axles).

by Anuj Puri

Affordable Housing Keeps the Momentum Going

Anuj Puri, Chairman – ANAROCK Property Consultants

Unsold inventory down 2% from 7.11 lakh units in Q1 2018 to 7.0 lakh units in Q2 2018
Unsold inventory declined 10% from 7.7 lakh units in Q4 2017

There has been a whopping 50% jump in overall new housing launches in Q2 2018 over the preceding quarter, with the maximum supply in the affordable segment (< ₹ 40 lakh).

Interestingly, the affordable housing supply increased by 100% in Q2 2018 over Q1 2018, and this supply has led the overall growth.

On the sales front too, housing sales across the top 7 cities of India also rose by 24% compared to Q1 2018, indicating that hitherto abstaining home buyers are back on the market.

Developers are working hard on clearing unsold inventory with attractive schemes, freebies and discounts. Moreover, the positive impact of the policy reforms including RERA and GST have begun to bear fruit.

MMR’s Most Vibrant Housing Markets – Affordable To Ultra Luxury

Breaking the Myths Of ‘By Invitation Only’ Properties

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

How The Resale Property Market Has Benefited From Policy Interventions

Increased Property Purchase Costs – Hype Vs. Reality

Real Estate – FinMin To The Rescue?

Vacant Affordable Housing – Causes (and Solutions?)

Affordable Housing Dominates Kolkata Property Market – ANAROCK Report

At Bengaluru’s Yelahanka, Sound Planning Drives Real Estate Growth

New Housing Launches Up By 50% In Q2 2018