There’s a popular saying in India – Athithi Devo Bhava –meaning the guest is God. Backed by this popular belief and the rising business prospects due to the significant growth of the Indian travel industry, homestays have today become a viable option for both travellers and its owners alike.
For the guest, it’s a home away from home that is nicely tucked into the greens or high up in the hills, in the remotest hinterlands. For the property owner, it’s a lucrative income source.
Numbers suggest that India’s travel market is projected to grow at an annual rate of 11-11.5% and will be worth $48 bn by 2020. Homestays are indisputably one of the means to cater to this growing demand. Rising disposable incomes, focused government measures to boost the travel industry and the growing appetite for travel is accelerating this growth.
In fact, India saw a 15.6% annual increase in foreign tourist arrivals in CY 2017 as against the previous year. Business tourism too is expected to grow three-fold by 2030 from $30 bn in 2015.
Panvel, previously seen as a destination on the outskirts of Navi Mumbai and far off from Mumbai, has now evolved into an integral part of Mumbai Metropolitan Region (MMR) and is, in fact, a buzzing real estate market.
Located on the eastern side of the Mumbai-Bangalore National Highway (NH-4) and the Mumbai-Pune Expressway, Panvel is well-connected to the rest of India by road and rail. Also, being located on the Mumbai-Pune Expressway, Panvel has garnered a huge amount of interest from end-users and investors of both Mumbai and Pune.
Excellent connectivity to workplace destinations of Navi Mumbai and Pune
Panvel is a 30 – 45 minutes’ drive from CBD Belapur and Vashi, which are prominent workplace destinations of Navi Mumbai, and a 2-hour drive from Pune’s thriving IT hub Hinjewadi. This makes Panvel a convenient destination for working IT professionals who shuttle between the two cities.
Infrastructure upgrades to take Panvel to the next level
Numerous infrastructure initiatives are planned to upgrade the connectivity and profile of this city.
The ancient Chinese curse ‘may you live in interesting times’ certainly has a lot of pertinence to Indian real estate today. These are doubtlessly ‘interesting’ times for the sector, which has transformed significantly over the last decade.
The pace of transformation has been accelerated further by the Central Government’s reformative steps aimed at ushering in ‘Acche Din’ to the realty sector.
Whether or not that has happened to the expected extent is debatable – but certainly, a new regulatory environment is being created with the implementation of several disruptive policies.
Driven largely by the end-users, the Bengaluru real estate market has remained resilient even during the worst phase of the property cycle in the country.
Realistic property prices, ‘real’ demand by end-users, developers’ strategy to keep the new launches under control along with their consistent efforts to minimize the demand-supply gap have worked in favour of the ‘Garden City.’
Since the end-users here are mostly professionals working across service sectors led by the IT/ITeS, developers have been conscientiously aligning their offerings to this demand.
For instance, to cater to the demands of a tech-savvy homebuyer, developers have launched ‘Smart Homes’ for their buyers with several features at the ‘click of a button.’ Additionally, builders here were among the first to offer an online payment system for a property.
One of the major positives of this city is that it has always adapted well to the changing market dynamics, and therefore remains well-positioned for future growth as well.
As per ANAROCK data, the city added 8,800 units in Q2 2018, a quarterly increase of 28% against the preceding quarter.
Hyderabad’s residential demand has witnessed a significant increase due to rising employment opportunities and positive market outlook, which were just marginally affected by policy changes including DeMo, RERA and GST.
ANAROCK Property Consultants’ report ‘Hyderabad: The Bright Spot in Indian Real Estate’ analyzes the city’s major real estate trends and highlights that the city has emerged as one of the most sought-after residential destinations in the country.
The city is experiencing a phenomenal spurt in residential real estate activity with appreciating capital values and increase in retail and office space absorption from 2014 to 2018.
Policy support from local government to strengthen the socio-economic indicators has largely attracted investments post-2014.
Absorption in Hyderabad increased by 21% in 2017 as against the previous year due to positive market sentiments coupled with growing IT workforce mainly in the western zone. The absorption in Q1 2018 is at par with the new supply being pumped into the market.
The unsold inventory in the city has been declining gradually since 2017.
Technology is disrupting different industries across the world, and real estate cannot be far behind.
Already, real estate consultants have moved beyond the traditional ways of prospecting, with the Internet opening up the market in unprecedented ways and taking a lot of the footwork out of finding property options.
As much as 70% of modern real estate consultancies’ prospects are today acquired through digitally-obtained leads.
As big data and analytics become more integrated with the property brokerage industry, such consultancies are now ‘cracking the code’ by in many innovative ways, including:
Obtaining and feeding deal and bid information into their company’s central repository at the tap of a few buttons
Instantly matching customers’ requirements with the available options
Tracking data on projects’ construction progress and regulatory compliances in real time as and sales figures information
If we look at the larger picture of technology use in the real estate business, various new avenues and means of doing business are going to open up. Let us, for example, take crowdfunding.
Crowdfunding in Real Estate
Crowdfunding could emerge as a new way for real estate consultancies to add value both to developers and their customers.
The report, which was released at the India Retail Forum (IRF) in Mumbai today, mentions that India’s tier-II / tier-III cities will also be key contributors to the country’sretail growth going forward. The organized retail market is growing at CAGR of 20-25%.
“Nearly 100 million people out of India’s 300-400 million-strong middle class currently live in tier-II and tier-III cities,” says Anuj Kejriwal, MD & CEO – ANAROCK Retail. “This indicates that a significant portion of Indian retailers’ target clientele lives in the non-metro cities. In cities such as Jaipur and Surat,
Piramal Capital & Housing Finance Announces the Launch of its Housing Finance Business in Nashik
25+ start-ups and 6,000 angel investors sharp-focusing on the city
726 MahaRERA registered projects in Nashik city out of 904 new and ongoing projects in Nashik
₹2,200 Crore as an estimated cost to turn Nashik into a Smart City
Nashik, 31st August 2018:CREDAI Nashik Metro & ANAROCK Property Consultants released a research report on Nashik: Land of Opportunities at the Capital Connect event held today in collaboration with Piramal Capital & Housing Finance. The report findings state that Nashik is emerging as a favoured investment destination.
The report focuses on Nashik’s immense potential as an exciting new destination for domestic and global businesses. In addition, Mr Jijina formally announced the launch of the housing finance business of Piramal Capital & Housing Finance in Nashik.
Mr Khushru Jijina, Managing Director – Piramal Capital & Housing Finance Ltd. Said, “Nashik exhibits tremendous potential as a promising new investment destination in North Maharashtra. We are delighted to announce the launch of our housing finance offering in Nashik – which marks our strategic foray into selective non-metro markets.
Highly-delayed units in MMR and NCR are worth a whopping ₹3,60,000 crore
Hyderabad has least project delays with around 8,900 units worth ₹5,500 crores delayed
Dilutions in RERA make it ineffective in some states
Incessant project delays, dodgy activities of some developers and land litigation issues have plagued the Indian real estate sector over the last several decades, not helping its domestic and international image.
Realizing the significance of real estate on the economy of the country, the Government has, over the last few years, been taking active measures to bring in greater transparency and efficiency.
However, despite the implementation of game-changing policies like RERA and GST, the issue of stalled or delayed projects that has primarily been at the core of buyers’ discontent is yet to be addressed satisfactorily.
If we add up the numbers for the top 7 cities, it emerges that the residential real estate launched in or before 2013 that is stuck in various stages of (non) completion is collectively worth a whopping ₹4,64,300 crore for a total of 5,75,900 units that are yet to be delivered to their respective homebuyers.
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: