Anuj Puri – Page 48 – Indian Real Estate Redefined

Will Budget 2018-19 Boost Ready-To-Move Property Absorption?

Anuj Puri, Chairman – ANAROCK Property Consultants

With Union Budget 2018-19 just around the corner, the Indian real estate market waits with bated breath to see how it can potentially benefit.

In fact, it has never been a better time for aspiring homebuyers, as there is a more than generous stock of ready-to-move housing options across most Indian cities.

Ready properties are the pièce de résistance of 2018, not least of all because they are the most de-risked purchase proposition, do not attract GST and offer instant gratification. After all, owning a house is the culmination of almost every Indian’s lifetime efforts and aspirations.

The sense of security, achievement and social stature linked to home ownership is what has for long been driving the demand for – and supply of – residential developments across India. All major roads, railway stations and airports are flanked by hoarding advertising real estate projects.

With a massive urbanization rate of more than 30% (estimated to reach 40% by 2030), the demand for homes in India an assured long-term story in which chapters will continue to unfold.

However,

by Prashant Thakur

Prashant Thakur, Head – Research, ANAROCK Property Consultants

Pune, once known as a ‘pensioners paradise’, has transformed significantly over the past few years.

The booming IT/ITeS and manufacturing sectors led to a rapid makeover of the city, and working professionals from all parts of the country started flocking to Pune. The concentric development pattern of the city helped expansion in the suburbs and peripheral regions.

Undri and Ambegaon, located in South Pune, are in the process of becoming Pune’s next vibrant property boom areas over the next few years. More and more of Pune’s homebuyers now seek out residential destinations which still offer the unspoiled natural splendour and healthy environment which Pune was once famous for.

Such areas are increasingly hard to find in the face of the rampant real estate construction drive all over the city. The availability of large, contiguous land parcels for development in Undri and Ambegaon is another big advantage for the area, which for this reason lends itself particularly well to sizeable township projects.

This region’s history as far as real estate development is concerned is not very long.

by Anuj Puri

Commercial, warehousing the flavours of 2018; affordable housing’s continuing allure

Anuj Puri, Chairman – ANAROCK Property Consultants

Sluggish demand along with bleak returns on investment has dented the previously glowing charisma of Indian residential real estate in the preceding 2 to 3 years.

The cascading effect of demonetization, implementation of RERA and GST further dampened investment traction in this segment in 2017, leading to a decline in average prices between 5 to 7% during the period.

Although the tail-end of 2017 showed some signs of revival in the sector and there was an uptick in sales of ready-to-move-in properties, the multitude of existing challenges will continue to be felt in 2018.

The huge unsold inventory on the market and the possibility of distress sales in the offing will limit the possibilities of any significant price appreciation in near-term.

During the year 2017, PE investments into the residential asset class fell significantly and witnessed a loss of around 25% in overall share compared to the previous year. Also, for the first time in last three years, it lost its #1 position in PE investment share.

by Prashant Thakur

Prashant Thakur, Head – Research, ANAROCK Property Consultants

Once a small village located on the eastern periphery of Pune and defined by industrial developments, Wagholi has now transformed into a sought-after residential destination.

The housing boom in Wagholi kicked off primarily on account of vast availability of land parcels at affordable prices, low registration costs and easy legal procedures, as it falls under a Gram Panchayat area. Wagholi and its nearby areas have also witnessed a rapid growth of IT parks and other commercial centres.

Over a decade ago, Wagholi was seen as little more than an extension of the city. However, it has interesting historical antecedents – Wagholi was the centre of the ruling chiefs of Chhatrapati Shivaji, and it’s very ancient Wagheshar (lord of tigers) temple is a popular tourist attraction.

Located on the Pune-Nagar highway, Wagholi has been under transformation since 2007. The region began developing primarily due to the saturation of core areas in Pune. In addition, the advent of the IT-ITeS industry in the eastern parts of the city drove up real estate activity here.

The major growth drivers that contributed to the development of Wagholi include the presence of affordable projects,

by Santhosh Kumar

Santhosh Kumar, Vice Chairman – ANAROCK Property Consultants

Exponential urbanization and tremendous employment opportunities have made NCR one of the fastest-growing regions in the country.

It is the largest urban agglomeration in India, with more than 28 million urban residents (around 7.5% of overall country’s urban population).

The accelerated urbanization and rampant migration of working population from different states have created a tremendous need for affordable housing in NCR – and the requirement keeps growing.

A recent ANAROCK report shows that NCR comes out on top in terms of the number of units added in the affordable housing segment (priced < INR 40 lakh) during the last two years, and accounted for around 26 to 30% of the overall affordable housing segment’s supply across the top Indian cities.

The region’s share of new launches in the affordable segment has grown from a mere 21% in 2012 to 71% in 2017 (up to Q3).

While the entire region possesses the opportunity to shine in this segment, ANAROCK’s report has identified some pockets which qualify as the key destinations for affordable housing projects in NCR.

by Anuj Puri

Anuj Puri, Chairman – ANAROCK Property Consultants

Every year, the Union Budget presents the Government with an opportunity to tweak the direction that the Indian economy is taking. Sometimes, hard decisions are taken which, while necessary, do not necessarily go down well with Mr Everyman.

At other times, the Union Budget is clearly meant to be a crowd-pleaser. This invariably happens when an incumbent Government is finishing its term and general elections loom, for obvious reasons.

The current Government has done a lot for the Indian real estate industry, even when it was in the form of hard decisions like demonetization and the disruptive but very necessary RERA.

With the hard decisions now taken, the Indian real estate sector fervently hopes that it is at the receiving end of the benevolence implied in a populist budget. This benevolence needs to go beyond improving personal finances and the implied boost to real estate investment appetite.

Despite the Government’s very proactive stance towards cleaning up and regulating the sector, there are still several policy-related pain points where the coming Union Budget can make a decisive difference:

1.

by Anuj Puri

Press Release

Santhosh Kumar Quits JLL, Joins Anuj Puri’s ANAROCK As Group Vice Chairman

New Delhi, 11 January 2018: Real estate industry veteran, Santhosh Kumar, today joined Anuj Puri’s new age real estate firm ANAROCK Property Consultants as Group Vice-Chairman, after more than a decade with international real estate consultancy JLL India as CEO – Operations.

He will be based out of ANAROCK’s Gurgaon office, with ANAROCK’s nine India offices, Dubai office and Finance reporting directly to him.

A long-standing associate of Anuj Puri, Santhosh Kumar was closely involved in the merger of Jones Lang LaSalle and Trammell Crow Meghraj (TCM) which created the largest international real estate consultancy in India.

As CEO of Operations, he had P&L responsibility of JLL India’s 11 offices, ensuring their seamless business operations and growth. He has over 20 years of hands-on experience in Indian real estate.

“Santhosh’s domain expertise, experience and impeccable relationships with the leading real estate players are invaluable assets for the Firm”,

by Prashant Thakur

Prashant Thakur, Head – Research, ANAROCK Property Consultants

Once a quaint settlement known for its scenic beauty with lush green trees and inhabited by Eurasians and Anglo-Indians during the late 1880s, Whitefield has witnessed a shift from being a settler’s haven to one of the sought-after real estate destination of Bengaluru.

Whitefield is one of the key tech hubs in Asia and has evolved as a preferred residential real estate destination.

Falling in the eastern periphery of the Greater Bengaluru region, Whitefield is a burgeoning micro-market with a rich history of over 200 years. However, the spurt of real estate developments in Whitefield dates back to early 2000s when the IT-ITeS sector began to boom.

The establishment of Export Promotion Industrial Park (EPIP) and International Technology Park of Bengaluru (ITPB) shaped Whitefield into a buzzing suburb. Today, more than four lakh ‘techies’ work in various multi-national companies located here.

Over the last few years, Whitefield’s skyline has metamorphosed into tall skyscrapers and big residential communities. The housing demand in this region is primarily driven by the IT professionals working in nearby office complexes.

by Anuj Puri

Anuj Puri, Chairman – ANAROCK Property Consultants

With the advancement of the Internet and e-commerce, the ‘human touch’ and ‘face-to-face’ interactions are on the decline.

Hand-written letters and postcards have gone the way of the dinosaurs, and even e-mails are rapidly becoming passé as the world shrinks into smartphones and messaging apps replace almost all other modes of communication.

The way we shop has definitely undergone a massive sea-change over the past few years. Less than five years ago, ordering food, groceries, clothes, furniture and a whole lot of other commodities and services with the click of a button would have seemed like far-fetched science fiction, but it is a reality today. And it’s not only in shopping where the human touch faces obsoletion, but almost all forms business.

The Internet was not the only factor involved in the ‘dehumanizing’ process. As an asset class, real estate had become increasingly commoditized and home purchase became more of an investment play done purely for financial gains.

Thankfully, the slowdown in the Indian property market put paid to the extremely damaging speculative activity that drove up prices and created a staggering burden of unoccupied homes held solely for capital appreciation.

by Anuj Puri

Matching shopping options with local purchasing power

Anuj Puri, Chairman – ANAROCK Property Consultants

Whenever I’m asked how real estate is performing in India, I have to ask the questioner to be a bit more specific. Real estate is not a single industry but consists of various categories/asset classes, and each behaves differently at the same time and at different times.

Residential, commercial and retail real estate each serve a very separate and distinct purpose, respond to a different type of demand and attract different types of investors.

However, it is equally true that all three categories are inter-related because they all depend on each other to drive growth. Residential projects tend to crop up around commercial office catchments, because that is where jobs are created, and employment drives the financial ability and appetite for homeownership.

Likewise, retail real estate developments are only feasible in and around residential and commercial catchments, since retail needs customers. What differs in these three asset classes are the ticket sizes, investment rationale, and investment horizon.

To invest in either,

Will Budget 2018-19 Boost Ready-To-Move Property Absorption?

Undri-Ambegaon – Major Growth Areas With Pune’s Historic Charm

Why Residential Real Estate Is A Fading Blip On Private Equity Radars

Pune’s Wagholi – From Industrial Area To Hot Residential Destination

Emerging Affordable Housing Corridors In NCR

6 Ways The Union Budget 2018-19 Can Bolster India Real Estate

Santhosh Kumar Quits JLL, Joins Anuj Puri’s ANAROCK As Group Vice Chairman

Bangalore’s Whitefield: From Anglo-Indian Village To Vibrant IT-ITeS Hub

Is The ‘Human Touch’ In The Real Estate Business Now Obsolete?

How Residential And Retail Real Estate Sync Up In India