Anuj Puri – Page 52 – Indian Real Estate Redefined

Massive Investment Boost To Indian Residential Sector In 2017

Investments in Indian realty at $1990 million 1H2017; residential accounted for 54% ($1075 million) of total investments

Anuj Puri, Chairman – ANAROCK Property Consultants

In Indian real estate today, the untrained eye may see a dichotomy in the massive investments pouring into the Indian residential sector and the actual on-ground demand for housing.

A similar question mark was, in the past, also attached to the fact that developers kept churning out projects despite the visibly reduced uptake over the last couple of years. The fact is, there are always at least two storylines unfolding – the first and most obvious is the short-term story.

Currently, residential demand is still subdued due to the uncertainty brought on by many regulatory upheavals – all of which were necessary to make Indian real estate a better marketplace.

To begin with, the Government’s unexpected demonetization move late last year put a severe dampener on the resale market and also impacted the primary market to some extent.

Even as the markets were recovering, RERA and GST – both of which were predicted and expected –

by Anuj Puri

Anuj Puri, Chairman – Anarock Property Consultants

In the 71 years since India gained independence, the country’s real estate market has changed tremendously. While it has not always been consumer-favouring throughout this period, it is certainly so today.

The country’s cities have expanded, new economic drivers have come in and jobs are being created at all levels. Likewise, appropriate housing is now being created for all income levels.

The current Government has taken the needs of the people to heart and deployed various policy initiatives to ensure that homeownership becomes affordable and desirable.

by Anuj Puri

Anuj Puri, Chairman – Anarock Property Consultants

The repo rate has been reduced by 25 bps to 6.0 per cent, reflecting the slightly accommodative stance that the Monetary Policy Committee has taken as it agreed that headline inflation has come down significantly.

While many inflation upside risks have not manifested themselves as yet, the MPC feels that inflation may trend upwards going forward based on farm loan waivers, states passing on increased salaries / allowances and expected pressures on food inflation. The RBI remains more committed to keeping inflationary pressures under check.

by Anuj Puri

Anuj Puri, Chairman – ANAROCK Property Consultants

With the revival in Indian residential real estate well underway, it is pertinent to turn our attention to which formats have been in high demand at every given juncture.

Such awareness is primarily useful from an investor’s point of view, but anyone who tracks Indian real estate out of purely academic interest cannot fail to be interested, either.

The Value Chain

Despite a lot of ambiguity attached to the term, affordable housing rules the roost today.

With the Government having a taken a sharp-focus policy approach to boosting this segment and employment market opening up once again, mass-housing makes more sense today than ever before.

Mid-income housing, which comprises of the 2/3BHK formats in not-so-remote locations, is also seeing a pickup in interest from buyers, with ready-to-move options in RERA-compliant projects by reputed developers selling well.

Luxury housing was one of the major losers after the demonetization move and has now taken an extreme back seat. However, there is one niche segment which still holds its own to a great extent.

by Anuj Puri

Anuj Puri, Chairman – ANAROCK Property Consultants

By now, it has become quite clear that as a generation, Millennials have a very different take on home ownership than their parents and grandparents did.

This trend has been studied extensively in the West, but it has made itself quite obvious in India too. How do Millennials view home purchase differently in general, and in India in particular?

by Anuj Puri

Anuj Puri, Chairman – ANAROCK Property Consultants Pvt. Ltd.

The switchover to the GST regime is undoubtedly one of the biggest tax reforms in post-independence India. From July 1 2017, GST effectively cuts through a confounding Gordian knot of taxation complexity in the country.

In other words, it replaces the multiple taxes levied by the central and state governments and will become subsumed of all the indirect taxes, including central excise duty, commercial tax, octroi tax/charges, Value-Added Tax (VAT) and service tax.

by Anuj Puri

PRESS RELEASE

Anuj Puri Launches ANAROCK Property Consultants Residential Brokerage, Fund & Investment Platform

Fund will invest INR 300 crore in, Residential projects, targets USD 500 mn by 2020

Mumbai, 26 June 2017: Anuj Puri, former Chairman & Country Head of international property consultancy JLL India, today announced the launch of ANAROCK Property Consultants Pvt. Ltd., essentially rebranding JLL’s erstwhile residential brokerage business which he acquired earlier this year.

Simultaneously, Puri announced the Firm’s real estate investment and fund platform, which will invest INR 300 crore in Residential real estate projects.

“We have chosen the brand ANAROCK with the motto ‘Values Over Value’ to reflect a business model and philosophy founded on the bedrock of Trust and Reliability,” says Anuj Puri, Chairman – ANAROCK Property Consultants Pvt. Ltd. “ANAROCK is the Group Brand, which will house multiple real estate services verticals. We will provide our regular residential advisory services which charges zero brokerage from our customers. Additionally, the Firm will operate a revolutionary business model of bulk-purchasing residential apartment inventory through a proprietary investment fund. ANAROCK will also provide debt, equity and mezzanine funding to residential developers. And this is just the beginning.”

by Anuj Puri

Anuj Puri, Chairman – ANAROCK Property Consultants Pvt. Ltd.

The suburb of Gurgaon has been an essential contributor to the urban sprawl that comprises of prime Delhi NCR. The region has become synonymous with a viral-like growth in the past decade and has assumed a homogeneous nature being a well-established business, housing and leisure hub.

The new residential growth comprising of multistoried apartments initially started along its major arterial roads of MG Road, Golf Course Road and later spread down along the main highway connecting it to Delhi–NH-8.

Further along the way as the city started to grow its wings, newer areas were opened up along the Golf Course Extension Road and newer sectors opened up along the proposed Dwarka-Gurgaon Expressway and both sides of the NH-8, beyond the second toll plaza.

Each of these residential precincts has their own set of specifications, price points, and target segments. Gurgaon boasts of one of the highest white-collar workforces and with its homogeneous industry mix, it caters to all categories of home buyers – from affordable to ultra-luxury.

The city now has its own default CBD comprising DLF Cybercity and prime roads of MG Road and Golf Course Road.

by Anuj Puri

Anuj Puri, Chairman – ANAROCK Property Consultants Pvt. Ltd.

Affordable housing is not just about providing homes to the lower-income strata of society, though that is what the Modi government’s avowed intention behind the ‘Housing for All by 2022‘ doubtlessly is.

Affordable housing creation also has a direct and favourable correlation with the nation’s economy, as well as most other real estate segments. Housing for lower-income wage earners increases the economic strength of any city or region, as it attracts inward migration which creates a bigger manpower pool.

This, in turn, boosts the viability of opening up industries and businesses in the region, translating into more demand for commercial real estate spaces. Formal and informal retail is also attracted to residential catchments, translating into consummate demand for retail spaces in and around such catchments.

Finally, affordable housing in India coexists quite benevolently and beneficially with mid-income housing, as the middle class invariably depends on the services of lower-income earners to keep its show going, so to speak.

In cities like Mumbai, lower-income housing existing alongside the super-expensive abodes of ultra-HNIs is also not considered an anomaly.

by Anuj Puri

Anuj Puri, Chairman – ANAROCK Property Consultants Pvt. Ltd.

Luxury housing in India is the proverbial sitting duck for target practice in the shooting gallery that is the Indian residential property sector.

Market pundits and the media never get tired of taking potshots at it, and claiming that this segment has got run out – even though Indian luxury housing is actually something of a newbie on the pitch and still has very long innings ahead of it.

Maybe the fact that there are a lot of wealthy people in a country with so much poverty strikes some as an aberration, rather than a reason for pride.

Massive Investment Boost To Indian Residential Sector In 2017

Independent India – A Real Estate Perspective

Reaction To RBI’s Monetary Policy – August 2017

A Closer Look At Boutique Luxury Homes

How Millennials Have Redefined The Indian Residential Market

The Impact Of GST On Residential Real Estate

Anuj Puri Launches ANAROCK Property Consultants Residential Brokerage, Fund & Investment Platform

Gurgaon Real Estate – Steady Growth Ahead

Housing For All By 2022 – The Clock Is Ticking

Decoding The Indian Luxury Housing Story