Residential Real Estate – Page 29

27% Increase In New Housing Launches In Q1 2018 Over Previous Quarter

Unsold inventory decreased by 2% from 7.27 lakh units in Q4 2017 to 7.11 lakh units by Q1 2018

According to ANAROCK Property Consultants’ latest research, 2018 has started on a positive note with residential unit launches making a comeback and recording a 27% increase in Q1 2018 from the previous quarter across top 7 cities of India.

With policy reforms and structural changes now in place, developers are intent on making up for the lost ground.

In Q1 2018, sales across top 7 cities of India also rose by 12% compared to Q4 2017, indicating that serious homebuyers are back, attracted by the new environment of transparency, accountability and financial discipline.

“The series of policy reforms and structural changes have transformed the way Indian real estate business is conducted. This has been a definite blessing. The sector is by no means out of the woods yet, but we are now seeing some green shoots of recovery,” says Anuj Puri, Chairman – ANAROCK Property Consultants. “The market has turned end-user friendly and 2018 is bringing new launches that match demand.

by Prashant Thakur

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

ANAROCK Property Consultants are exclusive marketing partners

5 typologies of apartments from 1BHK to 3 BHK, only four flats per floor
Attractive prices starting from Rs 18 lakh (inclusive of stamp duty, registration and other taxes)

Peninsula Land Limited, a leading corporate real estate developer which is part of the Ashok Piramal Group, today announced its foray into the affordable housing segment with the launch of its new project `addressOne` at a press conference.

Located at Gahunje, Pune, addressOne is spread across 50 acres and is strategically located on the Mumbai-Pune expressway, next to the MCA cricket stadium.

addressOne will be exclusively marketed by ANAROCK Property Consultants, who also launched an exclusive report on Gahunje’s growth from fringe area to growth precinct.

Download the report here: https://bit.ly/2Hbyqes

addressOne‘s strategic location just off the Mumbai Pune Expressway connects the project to Hinjawadi, which is less than 10 km away. In its first phase,

by Anuj Puri

Anuj Puri, Chairman – ANAROCK Property Consultants

Since Mumbai is the commercial and financial capital of India, almost all major Indian corporates, as well as leading Indian PSUs and MNCs, have their offices set up in the city.

Traditionally, Nariman Point in South Mumbai (the traditional Central Business District) was the preferred location for high-grade office occupiers, and therefore commercial office space investors.

However, today Bandra-Kurla Complex (BKC) has emerged as an alternative location to the traditional CBD. It has become more acceptable to MNCs as it offers a better-built environment. The Suburban Business District (SBD) in the North of Mumbai is also a major commercial office market.

Geographically, this micro-market contains all areas in Andheri, Jogeshwari and Juhu. However, a lot of the Grade A office buildings are to be found in the Andheri East area.

In the past, Andheri was known as a ‘suburban district’ which was absorbed by Mumbai city as Greater Bombay. It emerged as one of the prime residential and commercial real estate destinations.

Andheri East is a mixed land use precinct with some of the most prominent hospitality and industrial developments in its vicinity.

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 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,

by Anuj Puri

Anuj Puri, Chairman – ANAROCK Property Consultants

Ready Reckoner (RR) rates indicate the value of land or residential and commercial properties of an area determined by the state government and are published annually.

RR rates vary as per the area under consideration and the available infrastructure facilities. They have an impact on the stamp duty on property transactions, and concurrently on the revenue mop-up of the state government.

They also directly impact the market value of the properties. Change in the RR rates also influences the real estate construction cost and additional charges towards any transaction.

Pune’s RR Rates

The RR rates of Pune are proposed to be hiked by 3% this year, and the final announcement is expected to come by April 1, 2018.

The proposed hike is marginal compared to the previous years – the rates were increased by 13% in 2010, in 2011 by 27%, in 2012 by 17%, in 2013 by 12%, in 2014 by 13%, in 2015 by 15% and in 2016-17 by 7%.

As per the governing authority, the hike was based on detailed surveys undertaken by the town planning department.

by Anuj Puri

Anuj Puri, Chairman – ANAROCK Property Consultants

Traditionally, the Gudi Padwa festival season is an auspicious time to invest in real estate. Considered a time of renewal, it coincides with Punjab’s Baisakhi, Tamil Nadu’s Puthandu, Andhra Pradesh’s Yugadi and Kerala’s Vishu.

Since a large cross-section of Indians tends to link property acquisition with auspicious dates, activity levels on the property market tended to increase visibly in this period.

However, Gudi Padwa 2018 is not likely to bring the accustomed uptick, which – though almost non-existent even in the last 2 to 3 years – arrived in the backdrop of a more complex set of challenges than ever before. This year, this festive season will be juxtaposed with some interesting market dynamics.

The residential real estate market in many cities has been slowing down, and developers are hoping that Gudi Padwa will prove to be a turning point for many developers who have been struggling with slow sales as well as policy-induced compliance pressures and generally negative market sentiment.

Indian developers tend to look at the tradition-fuelled appetite for housing purchases during festivals like Gudi Padwa so as to mitigate slow sales during the rest of the year and offer lower prices under the guise of festival discounts.

27% Increase In New Housing Launches In Q1 2018 Over Previous Quarter

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

Peninsula Land Announces Affordable Luxury Project ‘addressOne’ at Gahunje, Pune

5 typologies of apartments from 1BHK to 3 BHK, only four flats per floor

Attractive prices starting from Rs 18 lakh (inclusive of stamp duty, registration and other taxes)

Homing In On Andheri – East

Is 2018 the Turnaround Year for Indian Real Estate?

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

Declining Housing Sales – The Devil in the Data

Chennai’s Hottest Property Investment Hotspots

Why Pune Can’t Afford Hiked Ready Reckoner Rates

Housing Sales Herald A Tepid Gudi Padwa 2018 For Real Estate