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.”
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),
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Open offices have their detractors – and, in many individual cases, some of the objections do have merit.
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.
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.
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.
80% Of Navi Mumbai Launches Affordable-To-Mid-Segment – ANAROCK-CREDAI Report
Housing sales have exceeded launches in the past two years
At 36,400 units, Navi Mumbai has only 15% of MMR’s overall unsold supply
Navi Mumbai ranks 2nd in Ease of Living out of 111 cities, surpassing Greater Mumbai & Thane
Navi Mumbai, 5 October 2018: Nearly 80% of the overall residential project launches in Navi Mumbai from 2013 to H1 2018 are in the affordable (< INR 40 Lakh) and mid-segment (INR 40 Lakh – INR 80 Lakh) budget range, states a report by ANAROCK PropertyConsultants and CREDAI.
Online retail is projected to grow to US$ 73 billion by 2022
Retail sector attracted US$ 147.40 million investments in FY18
Organised retail penetration expected to reach 10% in 2020 against current 7%
Amazon & Alibaba are investing in offline stores – brick-and-mortar retail will survive the ‘online assault’
The Changing Dynamics of Indian Retail
The Indian retail sector is on a faster roll than ever before. Rapid urbanization and digitization, rising disposable incomes and lifestyle changes – particularly of the middle-class – are acting as booster rockets for the Indian retail sector, which is projected to grow from US$ 672 billion in 2017 to US$ 1.3 trillion in 2020.
Over the last two decades, the Indian retail market has witnessed phenomenal changes, evolving rapidly from traditional shops to large multi-format stores in malls offering a global experience, and on to the highly tech-driven e-commerce model.
These changes have resulted in unprecedented growth in overall consumption with numbers suggesting that consumer expenditure in India will rise to US$ 3,600 billion by 2020 from US$ 1,824 billion in 2017.
Technology has disrupted almost every facet of the real estate business today. However, the creation of the core product is and will remain the most important aspect of this business, and advanced technologies are certainly playing a major role there.
By adopting innovative technologies like automation in construction, innovative designs, sustainability, use of prefabricated material and online marketing, developers can value-engineer their product.
Let’s look at some of the existing and upcoming technology disruptions in real estate construction.
Among the many new technologies already adopted by the construction sector, 3D Printing (large-scale printing of homes) is anticipated to change the way real estate is built over the next decade.
Though still very nascent, 3D Printing can potentially replace a substantial amount of construction across major segments, including residential, commercial or even retail.
This will be a massive paradigm shift in real estate development. Apart from seriously reducing waste, cost and labour requirements, 3D printing will help builders penetrate the hitherto inaccessible areas of dense urban centres,