Market share of banks in individual housing loans up: NHB report

4/20/2021 10:39:00 AM

The market share of banks in individual housing loans has gone up from 62 per cent in 2017-18 to 67 per cent in 2019-20, while that of housing finance companies (HFCs) has come down from 38 per cent to 33 per cent. According to the National Housing Bank’s latest Trend and Progress of Housing in India report, the pace of growth of banks remained higher than that of HFCs, partly supported by portfolio buyouts, leading to increase in their market share in individual loans. In 2018-19, the market share of banks and HFCs in individual housing loans (IHLs) was at 64 per cent and 36 per cent, respectively. The overall growth in IHLs of banks and HFCs combined stood at 10 per cent in 2019-20 compared to 16 per cent in 2018-19. The report said: “The real estate and Housing Finance Sector in India began to witness a moderation in growth after the IL&FS crisis in September 2018. However, with proactive measures and various other initiatives of the Government, RBI and NHB, the sector started to gain momentum.” The total outstanding IHLs of HFCs and banks combined was around ₹20-lakh crore as at the end of March 2019-20 compared to around ₹18-lakh crore in 2018-19. Outstanding IHLs of Banks and HFCs registered year-on-year growth of 8.5 per cent and 3 per cent, respectively, NHB said. Slab-wise analysis Slab-wise analysis of total IHLs of scheduled commercial banks (SCBs) and HFCs combined shows that around 44 per cent of the total IHL as on March 31, 2020 (against 47 per cent as on March 31, 2019) was towards 124 lakh housing units (119 lakh as on March 31, 2019) within IHL slab of ₹25 lakh. Fifty six per cent of the total IHL (53 per cent as on March 31, 2019) was towards 30 lakh housing units in the IHL slab of over ₹25 lakh, the report said. Referring to growth in the number of housing units financed within IHL slab of ₹25 lakh, NBH observed that affordable housing continues to grow on account of robust demand and various support measures towards this segment. Source: Business Line India

PE inflows in India real estate up 19% in FY21, investors eye portfolio deals across cities

4/19/2021 12:18:00 PM

Despite the COVID-19 pandemic, Indian real estate witnessed over $6.27 billion being pumped into the sector in FY21, as against $5.8 bn in FY20 - an increase of 19 percent in one year, a report by Anarock titled Flux – FY20-21 Market Monitor for Capital Flows has said. Though FY21 was an unprecedented year due to the pandemic, foreign PE funds showed much optimism for India. As much as 93 percent of the total PE investments pumped into Indian real estate was by foreign investors. In actual terms, investments by foreign PE funds almost doubled from $3 billion to $5.8 billion in FY21. In contrast, domestic PE funds invested merely $300 million compared to $420 million in FY20, it said. FY21 saw private equity investors focus majorly on portfolio deals across multiple cities and assets, rather on specific projects or cities. Such portfolio deals constituted 73 percent of the overall share, with approximately $4,583 million invested via portfolio deals in multiple cities, the report said. The average ticket size of PE deals rose by 62 percent in the fiscal year – from $110 million in FY20 to $178 million in FY21. Both structured debt and equity witnessed strong growth during the year at 84 percent and 15 percent respectively. Structured debt was largely towards portfolio deals instead of project-level assets. "Foreign funds are evidently very upbeat about India. High-grade rental-generating assets have attracted foreign investors in a big way during the year. Moreover, India has a strong underlying demand for office space with quality workforce and average rentals available at less than a dollar per sq. ft. per month,” said Shobhit Agarwal, MD & CEO - ANAROCK Capital. "Alongside, the successful REIT listings have provided a good monetising option for PE investors, leading to a stronger demand for good quality rental earning office and retail assets," he said. "Good entry valuation coupled with the option to accumulate a healthy mix of portfolio assets have also driven this surge in foreign PE investments. During the year, PE funds like Blackstone and Brookfield have added a lot of assets to their existing portfolios, while others have takeover loan portfolios of NBFCs.” Among other significant trends, the share of asset classes like commercial, retail and hotel has been very good. While the asset class-wise bifurcation shows lower percentage, when considered along with portfolio deals (where bifurcation is not available), the share of these asset classes is strong. Nearly 66 percent of the total inflows ($6.27 bn) in FY21 was across portfolio deals in multiple asset classes. In contrast, in FY20, out of the total $5.28 billion total inflows, just 8 percent of the total comprised portfolio deals. The top 10 deals alone contributed nearly 78 percent of the total PE inflows in FY21 as against 67 percent in FY20. Also, among the foreign PE investors that remained major contributors for overall PE inflows in India, Canada and US-based investors pumped in more than 50 percent of the total foreign PE investments in FY21. The industrial and logistics sector had strong investor support. Key emerging trends in this sector - rise of automation, urban multi-level warehousing, de-centralization, increasing business consolidation, and high demand for Grade A assets. Data centres are becoming the new sunrise sector, gaining more attention from PE investors and strategic investors, the report said. Source: Money Control India

Metro corridors led to a 15-20% rise in land prices in cities: JLL Report

4/15/2021 12:56:00 PM

NEW DELHI: Metro corridors led to a 15-20% rise in land prices, within 500 metres of such facilities, as per a report from JLL. A fall in cost of commute and improved job opportunities led to a 20-25% increase in commercial property prices, the report added. Over the past two decades, metro rail transport has seen tremendous growth covering a total of 760.62 km across the country, with another 578.34 km under construction. Cities including Kochi, Chennai, Bengaluru, Nagpur and Nashik have seen significant expansion of new metro lines. As per the report, prices of residential properties in south Delhi rose 15-20% in the past five to six years., while the micro-market of corridor-I and corridor-III in Hyderabad saw rates rise 15-20% from 2018 to first quarter of 2021. Many pockets of Chennai witnessed an increase in land prices closer to metro stations by 15-35%. The micro-market in Bengaluru of CBD along with few SBD locations like Indiranagar, CMH Road, Jayanagar, Malleswaram, Yeshwanthpur, Rajajinagar, etc. saw rates rise 8-10% as soon as the east-west and north-south corridors opened for public use. Depending upon the location, land use, and micro market’s overall use, the value of properties are expected to go up 10-15% from current values with the launch of a metro corridor. The deployment of the metro corridor directly impacts real estate sector as it increases land value, land use change and densification alongside the metro corridor. Also, mass transit systems such as metros and monorails significantly contribute towards solving traffic problems. Thus, projects which are planned around the vicinity witness an increased urban real estate value, since consumers are willing to pay more for convenience. A Shankar, head, strategic consulting and valuation advisory, India, JLL, said, “The real estate market has seen a steady growth along the metro corridors, owing to increase in developments alongside the routes. Furthermore, on an average, the land value within 500 m of metro corridors has increased by 15-20%, especially in residential and commercial areas. Additionally, it has been observed that appreciation in land value has been on a rise after the metro operation and increase by 2-5% annually over other locations, compared to the construction and planning phase." Source: Mint New Delhi

New Gurgaon: The new growth corridor of National Capital Region

4/14/2021 11:31:00 AM

New Gurgaon is characterized by a cosmopolitan population, state-of-the-art office spaces, integrated retail and entertainment spaces. Dotted by towering skyscrapers, plush malls, tech-enabled office spaces, top-notch entertainment and recreation options, Gurgaon has rightfully earned the distinction of the Millennium City. Over the years, it has emerged as the new business capital and the hub for next-generation startups. It indeed is looked upon as the epitome of commercial development, especially in the National Capital Region (NCR). Gurugram, as it has been rechristened for being the abode of Guru Dronacharya in Mahabharat, has witnessed a dramatic urban transformation in the past few decades, becoming one of the leading growth corridors on the world map. The success of Gurugram resulted in growth of adjoining areas, New Gurgaon in particular. New Gurgaon is characterized by a cosmopolitan population, state-of-the-art office spaces, integrated retail and entertainment spaces and much more. Riding on the twin waves of the strategic location and planned infrastructural development, New Gurgaon is the most promising commercial and industrial hub that will add a new dimension to the Indian realty sector. This area can be further divided into two main clusters along the Dwarka Expressway – Sectors 102 to 113 and Sectors 76 to 95 & 95A. With excellent connectivity to Delhi on the one side and Manesar (Haryana) and Neemrana (Rajasthan), major commercial hubs, on the other, it is also accessible to prominent landmarks such as Indira Gandhi International Airport, New Delhi Railway Station and the Huda City Center Metro Station. The Kundli- Manesar- Palwal (KMP) Expressway and the Southern Peripheral Road (SPR) have emerged as two major nerve centres of connectivity. The KMP Expressway has eased decongestion by serving as an alternative link between the northern and western as well as the southern parts of India. Meanwhile, SPR has bolstered connectivity in New Gurgaon by connecting to the Golf Course Extension Road, Gurgaon-Sohna Road, NH-4 and the Dwarka Expressway through National Peripheral Road (NPR). The large-scale projects such as the Delhi-Mumbai Industrial Corridor and Dedicated Freight Corridor will herald a dramatic transformation of the region and entail a multiplier effect in terms of enhanced connectivity, industrial development, employment generation, real estate development, thereby augmenting the contribution to Haryana’s GDP. New Gurgaon is also witnessing infrastructural developments at a very fast pace. The opening of the Dwarka Expressway will connect Dwarka with NH48 and ease traffic congestion on the Delhi-Gurgaon Expressway. Moreover, the proposed Greater SPR Road linking IMT Manesar to South Delhi will be a shot in the arm for connectivity and reduce the travel time by 30 minutes. Furthermore, GMDA’s plans to turn SPR into an arterial road under the New Gurgaon-Sohna Master Plan 2031 through metro connectivity and the link to the Gurgaon- Faridabad Road will open floodgates of economic opportunities and propel the region onto a higher growth trajectory. The development of a new industrial township and 6 sub-cities along the KMP Expressway will further fuel commercial development and accelerate real estate growth in the region. The government of Haryana is also undertaking infrastructural up-gradation and improvement at a rapid pace in New Gurgaon. These initiatives include the revamping of SPR, shifting of the Kherki Daula toll plaza and the opening of a cloverleaf interchange at the intersection of Central Peripheral Road (CPR) and Southern Peripheral Road. All these initiatives will play an instrumental role in facilitating a seamless movement of traffic in New Gurgaon, further enhancing its liveability and prospects as a real estate hub. The mobility landscape in New Gurgaon is also witnessing a rapid change. Proposed next-generation mobility systems such as Regional Rapid Transit System (RRTS), Gurgaon- Manesar-Bawal Mass Rapid Transit System (MRTS), the Orbital Rail alongside the Kundli-Manesar Expressway, Delhi-Faridabad Metro Rail Link and the ISBT will aid decongestion, reduce carbon footprints, make travel convenient and hassle-free and enrich the development story. These infrastructural developments are being accompanied by the strengthening of social infrastructure with the rising number of schools and higher educational institutions, banking and financial institutions, commercial and retail spaces, restaurants and food and beverage outlets, entertainment, and recreation spaces, among others. A robust social infrastructure combined with availability of huge open green spaces, and walking areas within residential projects, enable a holistic living. A lot of families living in different parts of Delhi NCR for generations are now considering New Gurugram as preferred choice to invest in for end usage. As a result, today, New Gurugram is home to some of the finest residential offerings in NCR with state-of-the-art facilities, amenities and experiences that a well-travelled millennial years for. With proximity to industrial hubs of Manesar, Neemrana, Bawal, Dharuhera and Bhiwadi on one hand and Cyber Hub, Sohna Road, Udyog Vihar on the other, New Gurgaon is home to burgeoning millennial population, including UHNIs, HNIs, expatriates and corporate professionals. It is a sought-after residential address owing to its strategic location, planned infrastructure and the presence of vast swathes of green and open spaces. Amid ‘the walk to work’ concept gaining currency, corporate professionals are increasingly choosing New Gurgaon for owing their dream home. Taking a cue from the buyers’ overwhelming response, real estate developers are increasingly vying on New Gurgaon and undertaking unique innovations to attract and build a loyal customer base. The COVID-19 has invariably refined the focus towards organized players with an excellent track record who embody customer- centricity as their core philosophy. With health and wellness becoming paramount concerns, integrated and gated townships in New Gurgaon characterized by customized residential offerings with state-of-art amenities, robust facility management and superior customer experience are witnessing increasing traction from buyers. These properties exemplify meticulous planning and are uniquely tailored to customers’ tastes and preferences. Best-in-class amenities, tranquil living amid verdant greenery and a blend of privacy and community are the hallmarks of these properties. A combination of robust infrastructure, the presence of commercial and retail spaces has positioned New Gurgaon as a prominent real estate hub. The prospects of economic growth due to proposed infrastructure projects and favorable policy landscape augur well for New Gurgaon to write a new chapter in the history of Indian real estate. Financial Express New Gurgaon

Central government is likely to extend CLSS benefit for MIG categories

4/13/2021 11:18:00 AM

NEW DELHI: The government of India is likely to extend the Credit Linked Subsidy Scheme (CLSS) for MIG categories as the deadline for CLSS had expired on March 31, 2021. In May 2020, the Finance Minister had announced the extension of the deadline for the affordable housing Credit Linked Subsidy Scheme (CLSS) till March 2021 for middle income families. Amrit Abhijat, joint secretary and mission director, Housing for All, Ministry of Housing and Urban Affairs (MoHUA), says, “The government is most likely to consider the extension of the CLSS benefit further as we have put in a requests based on our assessment from bankers and a large number beneficiaries which get benefit under the scheme.” He said that the government is monitoring the policy diligently and ensuring the benefit of the scheme goes to the eligible beneficiaries. “We have some cases where people have tried to tweak in but Aadhaar and biometric are very important to keep a track of all the discrepancies. In fact, we also have a strong MIS system in place for checking discrepancies,” said Abhijat. Over 10.75 lakh houses have been constructed under the Pradhan Mantri Awas Yojana (Urban) during the COVID-19 pandemic, and Uttar Pradesh tops the chart with more than 2.55 lakh such units. PMAY (U) is in its sixth year of implementation. So far, against the assessed demand of 112 lakh houses, the ministry has sanctioned 111 lakh houses; out of which, 73 lakh are grounded and over 43 lakh have been delivered. The Ministry of Housing and Urban Affairs seeks to provide ‘pucca houses’ to all eligible beneficiaries of urban India by 2022 when the Nation will celebrate 75th Independence. With the vision of ‘Housing for All’, the emphasis has been to accelerate construction, completion and delivery of houses across the country within stipulated time under PMAY(U). Source: ET Realty India

Top eight property markets Q1 sales grow 44%, launches rise 38%: Report

4/9/2021 10:40:00 AM

Residential property markets across top 8 cities in India have witnessed a steady rise in both sales and launches in the first quarter ending March led by lower interest rates, discounts offered by developers and government sops including stamp duty reduction in key markets. While launches rose 38% on year to 76,006 units, sales grew 44% to t 71,963 units in these markets including Mumbai Metropolitan Region (MMR), Delhi-NCR, Bangalore, Pune, Chennai and Hyderabad, showed a Knight Frank India report. The healthy growth in sales has encouraged developers to launch new projects which is reflected in the growth. Property markets of Mumbai and Pune have led the table in both launches as well as sales on account of significant regulatory impetus in the form of discounts in stamp duty charges that led to significant improvement in sales velocity. While end users were keen on taking advantage of the reduced stamp duty regime, developers also thought it right to take advantage of the said growth to launch new projects. In the last few weeks of the first quarter, Karnataka also doled out stamp duty sops to home buyers for residences costing up to Rs 45 lakh. However, the impact of this may only be seen in the subsequent quarters. “The first quarter of 2021 saw a significant rise in sales across the key markets, led by Mumbai and Pune – the two markets that received substantial backing from the state government in the form of reduced stamp duty. Other cities also recorded a rise in sales of homes due to a shift in attitude in homebuyers that has now started to prefer ownership,” said Shishir Baijal, Chairman & Managing Director, Knight Frank India. “That coupled with home loan interest rates at multi-decade lows of sub 7%, a substantial correction in apartment prices, as well as increase in household savings, seems to have convinced homebuyers that this was an opportune time to purchase their properties.” The increasing sales volumes have also arrested the intensity of the on-year fall in residential prices of most markets while Hyderabad and the NCR have seen a marginal growth in prices compared to a year ago. The incidence of developers giving indirect discounts or freebies has been a key factor in spurring sales in 2020 but this has been observed to have reduced significantly in Q1 2021. According to Knight Frank, on a sequential basis, housing prices have remained stable in most cities and recorded an increase in the case of the southern cities of Chennai and Hyderabad. Homebuyers were inclined to acquire ready or near-ready inventory to minimise completion risk. This is reflected in the average age of inventory which stayed at 16.7 quarters in Q1 2021 compared to 15.9 quarters in the year ago period. This is also in line with developers focusing on liquidating older inventory before launching new products which has consistently helped reduce unsold inventory levels to 0.44 million units in Q4 2020, 2% less than a year ago. Source: Economic Times India

Fractional ownership giving a boost to Commercial Real Estate

4/7/2021 1:05:00 PM

Fractional ownership in commercial property has given an opportunity to retail investors to invest smaller sums in India’s booming commercial real estate market. If this pandemic has accomplished anything, it has forced us to reconsider how we make financial decisions, especially how we save and invest. As if wage cuts and layoffs weren’t bad enough, many people lost their stock market savings in 2020, and some had to split their fixed deposits or sell property to meet their requirements. The question is: How to make a pandemic-proof and reliable investment that offers daily and liquid returns that could go straight to our pockets, as well as provide long-term capital appreciation? In the past year, one form of investment stood out on all these counts: fractional ownership of commercial real estate. Fractional real estate is a unicorn investment because it offers a rare combination of high returns and low risk. It makes the attractive returns of commercial real estate (CRE) available to the average citizen. “Making investment in commercial real estate is gaining traction because of increased volatility in the stock market and reduced returns in bonds and fixed deposits. Fractional ownership in commercial properties has given an opportunity to retail investors to invest smaller sums in India’s booming commercial real estate market, thereby helping them open an alternate source of income flow. The future of fractional investment looks bright and sustainable and therefore retail investors have jumped on this bandwagon to ride the wave of safe and healthy returns and also as a means to diversify their investment portfolio,” says Mohit Goel, CEO, Omaxe Ltd. Fractional ownership is predicted to be the real estate market’s future because it addresses one of the most significant issues with commercial property: the high entry barrier or necessary capital investment. “Consider a luxury office space worth Rs 90 crore. Normally, such a large investment will only be accessible to those with a high net worth (HNI). However, with fractional ownership, an individual can now invest as little as Rs 10 lakh to become a part-owner of a piece of property and can earn rental returns of up to 6%-10% per annum. In comparison, a similar investment in residential property would have yielded just 1.5 per cent to 3 per cent,” says Ashish Bhutani, MD, Bhutani Infra. Unlike the rest of the financial market, commercial real estate only endured a modest recession in the early months of last year’s lockdown and rapidly recovered in Q3. As compared to the previous quarter, net absorption of CRE has increased by 63 per cent, while new completions have increased by 59 per cent. “Though real estate in other countries suffered due to the Covid-19 outbreak, office leasing in India grew during the same time due to the country’s strong outsourcing industry. This should serve as a good reminder to Indian investors, both residents and non-residents, that it’s time for them to get a piece of the real estate pie, too. In reality, now is the best time to invest, as CRE prices are expected to skyrocket in the future,” says Achal Raina, COO, Raheja Developers. Tenants of residential property tend to vacate the property regularly, resulting in a loss of rental income before a new occupant can be found. The rental lease on commercial property is usually three-year long, although it can be longer in some cases. The tenants of Grade A property are usually multinational corporations, banks, or information technology firms with deep pockets; such tenants do not default on rent but pay on time. They often like to decorate the space themselves, according to their tastes. Furthermore, because of the time, resources, and effort they put in converting the property into their offices, such tenants are more likely to extend their rental lease. For better returns, it’s best to invest in a property that has already been rented. The rental returns will be credited to your bank account every month. Unlike bank deposits or bonds, where you must wait for the investment to mature and the lock-in period to end before you can access your earnings, you can access your earnings immediately. “Fractional ownership guarantees a rising rate of return — rental yield and capital appreciation. In India, commercial property has grown at a 16 per cent compound annual growth rate (CAGR) over the last five years. Apart from the increase in capital appreciation, you can also expect a rise in rental returns if you invest in a reputable real estate firm. This increase is built into the rental agreement to protect your investment from potential inflation and keep it steady over time,” says Sagar Saxena, Project Head, Spectrum Metro. Investors, however, must perform due diligence on the property in terms of venue, rental yield, capital appreciation potential, and the types of tenants it would attract. Source: Financial Express India

India’s Tier-2 Cities: What is the Appeal for Foreign Businesses?

4/6/2021 10:48:00 AM

India’s Tier-2 cities are often well-connected to major metropolitan centers and have a higher quality of life. Indian cities are classified into tiers on the basis of population density and not levels of development. Increasingly, younger Indians are choosing to relocate to Tier-2 cities due to congestion and pollution in Tier-1 locations, thereby spreading out the talent market. India Briefing briefly spotlights Tier-2 cities in the country and the opportunities available to foreign investors in these areas. India’s Tier-2 cities are steadily becoming the preferred destination for businesses, both in the manufacturing and services sectors. The drivers for this shift include the availability of larger and more open spaces in comparison to the metropolitan Tier-1 cities, besides lower costs of operation. Moreover, the COVID-19 pandemic has accelerated concerns regarding overpopulation in Tier-1 cities, rising levels of pollution, and thereby deteriorating standards of living despite the high costs. Health and wellness will become major considerations for where younger Indians live and work – both, unmarried and with young families, as remote work, flexible working hours, and rapid inter-city and inter-state mobility become the norm. The availability of cost-effective infrastructure, affordable real estate, better transport connectivity, presence of education hubs, and opportunities in various industrial sectors are among key advantages that several Tier-2 cities in India can offer. Advantages of Tier-2 cities in India Labor pool The pandemic accelerated changes to the working culture across various industries where remote work is possible. This in turn motivated many Indian professionals to positively consider shifting to smaller cities, often located in the hometown or close to the hometown. The trend to move out of Tier-1 cities has also been building up for awhile due to rising air pollution concerns and high costs of living. Foreign companies looking to set up in India should therefore consider Tier-2 locations more seriously as prospective hires can be sourced relatively easily – both from within these cities and from Tier-1 cities. Advanced infrastructure India’s 2021 Union Budget announced a boost for infrastructural development in the country to develop office buildings that will match global standards and be equipped with all necessary facilities that will enable a comfortable work environment. Since Tier-1 cities are densely populated and have higher living expenses, foreign investors can expect growth in economic activities in turn leading to more infrastructural development in lesser populated cities like Meerut (Uttar Pradesh), Karnal (Haryana), Amritsar (Punjab), Jaipur (Rajasthan), among others. The 2021 Budget has also given impetus to improving the transport connectivity of Tier-2 cities, by building and upgrading metro/subway lines as found in Tier-1 cities, but at a lesser cost. A key motivation here is to provide more premium housing in these areas. Education Several industrial sectors located in Tier-2 cities across manufacturing, automotive, pharmaceuticals, and information technology (IT) are skills-based or have legacy experience, resulting in the organic growth of informal enterprises and increasingly, corporate enterprises. Many of these cities have traditionally grown their economic and industrial base supported by the presence of education and research hubs, or turnkey foreign investments, which lower costs of hiring and talent sourcing. Prominent Tier-2 cities in India Haryana – largest producer of passenger vehicles and motorcycles Quick facts Haryana ranks #3 in the ease of doing business in India. The state government has a single roof clearances system set up through the Haryana Enterprise Promotion Board. Haryana’s focus sectors include auto and auto components, agro and food processing, textile and apparels, footwear and accessories, electronics, IT/ITeS, defense and aerospace, renewables, pharmaceuticals, and chemicals. Major investment opportunities are available at the KMP Global Corridor, Global City at Gurugram, Integrated Multi Modal Logistics Hub, MRTS between Gurugram Manesar Bawal, Industrial Model Townships, and the Integrated Aviation Hub. Overall, the state is a mature base for automobile manufacturing, IT, and biotechnology. Haryana state comes under the influence zone of two industrial corridors – Delhi Mumbai Industrial Corridor (DMIC) and Amritsar Kolkata Industrial Corridor (AKIC). Thirteen districts from the state are part of Delhi’s National Capital Region (NCR), a major trade and consumption center. Prominent Tier-2 cities in the state are: Chandigarh Chandigarh is a union territory and is directly controlled by the federal government. It is renowned for being one of India’s earliest planned cities, the master plan for which was prepared by Swiss-French architect Le Corbusier. Its quality of social infrastructure and many green spaces make it an ideal destination to do business. The city has one of the highest per capita incomes in the country and is among the cleanest in India. The neighboring cities of Panchkula and Mohali along with Chandigarh make up the prominent Tricity area. Chandigarh is home to over 56,000 micro, medium, and small-scale units, 40 percent of which are involved in manufacturing components for tractors. Its well-connected airport was responsible for handling over 4,500 tons of freight in 2015-16. Chandigarh has an emerging IT industry – its infrastructure, proximity to Delhi, Haryana, Punjab, and Himachal Pradesh, and the resultant IT talent pool has attracted leading MNCs. Major IT multinational companies that have set up here include Quark, Infosys, EVRY, Dell, IBM, TechMahindra, Airtel, Amadeus IT Group, and DLF. Industries Manufacture of tractor components IT/ITeS Electronics Pharmaceuticals Machine tools Key economic zone Chandigarh IT Park (also known as Rajiv Gandhi Chandigarh Technology Park) Educational institutions Panjab University Punjab Engineering College Postgraduate Institute of Medical Education and Research Connectivity National highways Chandigarh Transport Undertaking (CTU) – buses Chandigarh International Airport Chandigarh Junction Railway Station Greater Noida The Greater Noida Industrial Development Authority (GNIDA), which is responsible for the overall development of the city, has taken the steps to provide it with a quality urban environment and developed metro system that now attracts economic activities towards it. The establishment of quality infrastructure and the EcoTech industrial area, that ensures an effective single window system to provide clearances to projects, has now made Greater Noida a favored location for MNC investments. Industries Automotive parts Electronics Special economic zones Moser Baer SEZ NIIT Technologies Limited SEZ Wipro Limited Educational institutions Tata Institute of Social Sciences Skyline Institute of Engineering & Technology Indraprastha Law College Connectivity Cab aggregators Metro system Source: India Briefing India

All properties in Haryana to have unique ID

4/2/2021 10:56:00 AM

CHANDIGARH: Now, every property in Haryana including private, government and even the controversial properties would have a unique ID. It has been planned to ensure that in future no dispute is created over such property. An information in this regard was providing by Haryana chief minister, Manohar Lal Khattar while presiding over the review meeting of Haryana Large Scale Mapping Project and SVAMITVA scheme held at Chandigarh on Thursday. Khattar said that the consolidation work should be done again after every 50 years and a separate cadre should be made for the consolidation work. He further directed that the land should be assessed on the basis of acreage rather than village. He said that a digital platform e-Bhoomi portal has been provided for people voluntarily giving land for government projects. The CM directed Panchkula deputy commissioner to complete the drone mapping work in Morni block of the district within a month. For this, if any kind of assistance is required, then it will be provided immediately by the concerned department. He further directed the officials that 10 more drones should be provided for this work so that atleast one drone is available in every district. During the meeting, the CM was apprised that out of total 7187 villages in the state, drone based imaging work of 5554 villages has been completed. Drone imaging of all Lal Dora villages in district Rewari has been completed. Bhiwani and Mahendragarh districts have also performed well. Besides this, 11 districts of Haryana will soon be free of Lal Dora, while the remaining districts will be free of Lal Dora in around six months. In addition, 345 villages have been declared Lal Dora free and 43166 title deeds have been registered till March 30 for Lal Dora areas. Registration through web portal is now available for the sale and purchase of these properties. Passport for registration of properties of NRIs The Aadhaar number has been made mandatory for taking appointment for new deed appointment and registration. Since the NRIs were facing difficulty in booking the appointment because they did not have the Aadhaar number, therefore passport number has been made mandatory in their case. If the seller is an NRI, then he has to fill the details of his passport number while booking his appointment. Source: ET Realty Chandigarh

How Delhi-Dehradun Expressway will give a boost to real estate

3/31/2021 12:18:00 PM

The real estate sector on the stretch is going to benefit from the development, and realtors are upbeat about the development. The new economic corridor between Delhi and Dehradun was announced by the Union Minister of Road Transport and Highways Nitin Gadkari in February. The 210-kilometer, six- lane express highway project, which is expected to be awarded by August 2021, will be completed by 2023. The Delhi-Dehradun Expressway will reduce travel time from the national capital to Dehradun from five to two hours. A new six-lane road will be built from the Sahranpur bypass to connect with Haridwar in the new economic corridor. This route would cut the existing six-hour journey time between the national capital and Haridwar to just two hours. The real estate sector on the stretch is going to benefit from the development, and realtors are upbeat about the development. “Delhi-Dehradun Expressway is going to benefit real estate on the stretch; it will make more reputed developers come up with projects in tier II cities falling on this stretch as many buyers would love to have homes at places where prices are little less than Delhi. The travel time matters these days, and only 2.5 hours to Dehradun will help people buy second homes or holiday homes in this Hill city,” says Harvinder Singh Sikka, MD, Sikka Group. Real estate development along corridors has become a trend and offers a lot of potential across India. Transport corridors like National Highways and State Highways across India have witnessed significant realty development during the real estate boom. The government has also helped in boosting and promoting industrialization in these areas. A combination of production units, public utilities, logistics, environmental protection facilities, residential areas, social infrastructure, administrative services and few industrial areas has been systematically planned along the corridors. These have further helped and accelerated economic growth. Haridwar is one of the popular destinations, which will benefit from the Expressway. The city is already on the radar of people looking for holiday homes, and now more people will invest there. “People have always been worried about the time taken to move from Delhi to Haridwar, but with this Expressway, the frequency of travel will increase. The serene atmosphere of Haridwar helps people rejuvenate and get charged up for the hectic professional life. We hope that work completes on time, and with this real estate around this Expressway will prosper, which will add value to people’s lives,” says Nagaraju Routhu, CEO, Hero Realty. Talking about the development, Abhishek Bansal, Executive Director, Pacific Group, says, “Weekend travels to Dehradun mean that retail sector, especially, malls will benefit from it. People love to shop and enjoy at places that are away from their work cities, and with only 2.5 hours of travel, people would throng Dehradun for the perfect getaway that it promises. We foresee a new wave of mall culture in the city as there would be a huge increase in footfalls, especially on weekends.” Another boost for the real estate in Uttarakhand is the Metro rail corridor planned from Nepali Farm to Vidhan Sabha in Dehradun district. The 73-kilometer Deharadun–Haridwar– Rishikesh Metro Rail corridor in Uttarakhand was authorized by the Unified Metropolitan Transportation Authority (UMTA) in June 2020. Source: Financial Express Delhi

Unique ID for all land parcels by March 2022: Centre

3/30/2021 12:58:00 PM

The Centre plans to issue a 14-digit identification number to every plot of land in the country within a year’s time. It will subsequently integrate its land records database with revenue court records and bank records, as well as Aadhaar numbers on a voluntary basis, according to a Parliamentary standing committee report submitted to the Lok Sabha last week. The Unique Land Parcel Identification Number (ULPIN) scheme has been launched in ten States this year and will be rolled out across the country by March 2022, the Department of Land Resources told the Standing Committee on Rural Development. One Department official, who did not wish to be named, described it as “the Aadhaar for land”, a number that would uniquely identify every surveyed parcel of land and prevent land fraud, especially in the hinterlands of rural India, where land records are outdated and often disputed. The identification will be based on the longitude and latitude coordinates of the land parcel, and is dependent on detailed surveys and geo-referenced cadastral maps, according to a presentation the Department made to States in September 2020. This is the next step in the Digital India Land Records Modernisation Programme (DILRMP), which began in 2008 and has been extended several times as its scope grew. It’s due to come to an end next week, but the Department has proposed a further extension to 2023-24, to complete its original targets as well as expand its ambit with a slew of new schemes. “This Department has taken new initiatives under the programme like NGDRS [or the National Generic Document Registration System], ULPIN, linking of court to land records, integration [of] consent based Aadhaar number with land records etc. which necessitated its further extension beyond 2020-21 till 2023-24,” the Department told the parliamentary panel. “Unique Land Parcel Identification Number (ULPIN) is proposed to be rolled out in 10 States during FY 2020-21 and by 2021-22 in the entire country,” it added. The Department’s presentation to the parliamentary panel listed the proposed cost for some of the new initiatives. Linking Aadhaar with land records through ULPIN would cost ₹3 per record, it said, while seeding and authentication of landowner Aadhaar data would cost ₹5 each. It added that the integration of the Aadhaar numbers with the land record database would be done on a voluntary basis. Creating a modern land record room in every district would cost ₹50 lakh per district, while the integration of land records with the Revenue Court Management System would cost ₹270 crore. It also added that DILRMP’s next phase would include “linkage of land record database with banks”. “These components will enhance the service deliveries to the citizen of the country and will also function as inputs to the schemes of the other sectors like Agriculture, Finance Disaster Management etc,” the Department told the panel, adding that ULPIN has been recommended by the Sectoral Group of Secretaries. Source: The Hindu India

Airport Road is the latest investment hub

3/26/2021 12:40:00 PM

When it comes to buying or investing in a property, people look for the best of places. Just like highways remain in demand for commercial properties, airport roads also come in the same league. With an attraction of getting a different class of travelers the properties on airport roads offer lucrative returns. The same holds for PR7 Airport Road near Zirakpur where people are investing in large numbers. The PR 7 Road is nearly 310 feet wide that makes it capable enough to handle high traffic. It is undergoing a widening of internal roads that will connect it with the main city and Chandigarh International Airport. The newly built road offers connectivity to Chandigarh, Zirakpur, Mohali, and in some time with Panchkula; this is going to be attracting investments from NRI, Punjab and Himachal residents. The commercial developments built in large numbers are currently an attractive destination for the people living nearby but will also provide an opportunity for Chandigarh residents to venture into the newly built part of the city more frequently than ever. With Chandigarh being on the map of NRIs, the opening up of properties here has given them an option to expect bumper returns on investment. Moreover, it has fabulous connectivity to key locations, nearby tourist destinations, and quality of life make it a much-desired place to buy/invest. Moreover, investment in property is safe as the returns are guaranteed on your capital either through rental returns or investment return. In the short term, capital appreciation is expected to be anywhere around 10-12 per cent. With Chandigarh International Airport providing operations round the clock and also introducing new international flight routes, the rentals will be good enough to make the property worth leasing. The catchment area of 1 million people guarantees a fruitful venture. The scope for retail spaces, especially those that have restaurants and entertainment zones, is the winning combination. Many international brands are showing interest to have their presence here as they see an extensive footfall of mid-segment to high-end strata across all ages. As more developers and investors are enticed to enter this upcoming business center, real estate in this area is seeing a substantial increase. The opportunities are vivid and will open doors for new brands and stores to enter the Tricity market. It will also be providing already established brands in Chandigarh and Mohali region to multiply their presence and reach a wider consumer base. With increasing migration, the developers are coming in with a mixed bag of projects; this further increases the need for more commercial complexes. The Airport Road is providing the best model to the buyers/investors within the budget. Currently, the area, being in a rapidly flourishing state, has just rental and possession prices. It is also in need of multiple and diverse real estate projects to meet the residents’ needs. Investing in this region promises quick and long term returns, with the added advantage of establishing a monopoly by being the pioneer real estate players. PR 7 Airport Ring Road is changing the socio-economic situation of investors and buyers, deviating the crowd towards the periphery, and promising them easy entry and exit from Delhi, J&K and Himachal Pradesh. Market mapping for this area has clearly shown the best results for every commercial player. Therefore, investing in this location will bring prosperity to real estate investors. Source: APN News Chandigarh

Mumbai: Realtors want reduced property stamp duty rate to be extended

3/25/2021 11:16:00 AM

Following a surge in the sale of houses recorded in the last one year due to the stamp duty cut offered by the state government, now developers want the existing offer to be extended for some more time, so that homebuyers remain encouraged. Dr. Niranjan Hiranandani, National President, NAREDCO said, "The positive impact of the concession has been very apparent in terms of uptick in sales and property registration momentum in past few months. The industry stakeholders in the state expect the extension of these booster doses in order to sustain the drive that yields more volumes of transaction. Given that the move has been a game-changer, it will further incentivise the fence sitters to convert into the actual home buyers and see more traction with augmented consumption demand. Currently homebuyers pay three per cent stamp duty fees which was five percent earlier. The concessional stamp duty charges will remain effective only till March 31st as announced by the Mahavikas Aghadi government. The reduction in stamp duty besides other incentives was announced to revive the realty sector especially in Pandemic time. Hiranandani added, "In the post-Covid-19 world, owning a house has gained significance in the ‘new normal’. Real estate also offers the buyer/ investor a safe and steady yield generating asset, and favourable market factors will positively impact sales across the next few months. Not just in Mumbai and the MMR but across the state, the pent-up demand coupled with proactive government measures will fuel the scenario of home seekers bringing their dream home to reality. This will foster revival of the sector benefitting all stakeholders in a win-win scenario." Similarly another developer Chintan Sheth, Director, Ashwin Sheth Group expressed, "The real estate sector has been witnessing recovery due to timely reforms introduced by the government, amongst which stamp duty reduction has worked out positively, to regain confidence of potential homebuyers, resulting in increased sales growth. We hope the government extends the timeline so that it will further benefit the recovery of the sector." While Ashok Mohanani, President - NAREDCO Maharashtra has urged the state government to extend the reduced three percent stamp duty charges for another two quarters so that home buyers continue to invest in their dream homes. Meanwhile the reduction in stamp duty has resulted in monthly sales of nearly 10,000 units for Mumbai consistently. According to the stamp duty registration office records, over 11,666 houses have been sold out in Mumbai alone till March 23rd, 2021 generating revenue of Rs 490.55 crore approximately. Similarly, in state over 1,47,533 houses have been sold out and revenue made is of Rs 8,100.85 crore. Source: freepressjournal India

Indian PE/VC investments close at all-time high of $47.6 billion in 2020: Report

3/24/2021 10:35:00 AM

Indian private equity (PE) and venture capital (VC) investments touched a record $47.6 billion last year on the back of a spate of deals closed by Jio Platforms and Reliance Retail, showed a joint report published by Indian Private Equity & Venture Capital Association (IVCA) and EY on Friday. However, excluding the PE investments worth $17.3 billion bagged by the Reliance Group entities, the total PE/VC funding garnered by companies in 2020 stands nearly 36% lower compared to 2019. In fact, investments in the first two months of the year have been rather sluggish. Funding in the January-February period stood 11% lower year-on-year at $3.72 billion. “The pandemic has led to the rapid adoption of technology. Sectors like edtech, life sciences, technology and some sub-sectors of financial services have demonstrated resilience to the disruptions caused by the pandemic and ensuing lockdowns and thus gained prominence over the traditionally favourite sectors for PE/VC investors like infrastructure, real estate,” analysts said in the report. Infrastructure sector investments dipped to as much as $4.9 billion last year from $13.8 billion in 2019. Consequently, there has been a sharp decline in buyout activity, which recorded a decline of 28% in terms of value and 30% in terms of volume. Although there were merely 66 (excluding Reliance) deals of over $100 million as against 108 in 2019, given that investor sentiment remained subdued for almost a third of the year, sectors like technology, pharmaceuticals, edtech and enterprise SaaS fared well. Going forward into the new decade, analysts expect “these new favourites to continue attracting higher than before PE/VC investments”. “Based on recent trends, early movers in technology-enabled business are expected to corner a disproportionate share of the market. As such, companies that are on the forefront of technology will most likely have the competitive advantage, and PE/VC funds are realising that,” they said. In percentage terms, start-up investments recorded the steepest decline of 40% year-on-year to $4.8 billion across 557 deals in 2020. Investments in the sector stood at $7.9 billion in 2019. Overall deal activity, though, picked up significantly in the last quarter of the year. Investments during the period stood at $18.5 billion compared to $10.9 billion in Q42019. Source: Financial Express India

COVID-19 impact: Real estate developers to focus on customised offerings as per consumer preferences

3/19/2021 12:00:00 PM

The COVID-19 crisis has brought the spotlight back on real estate as it is the most tangible asset for investment in these uncertain times. With the emergence of work-from-home culture, homebuyers are now looking for in-built amenities that understand the needs of families and cater to different needs of the future. Lockdown has resulted in a structural shift in the way businesses and institutions work. From digital options to flexible planning developers are now focussed on consumer led offerings that let you stay ahead of the cut-throat competition. In the path to the next normal, some of the changes in consumer preferences that will be an inherent part are likely to include Transition from rental homes to owned homes – the mindset change The pandemic spurred a new home-buying frenzy. The importance of owning a physical asset has gained much more prominence during these challenging times ever since ‘stay at home’ became the new norm. As we learn to co-exist with COVID-19, people who were comfortable with the rental concept are now driven towards owning their own home, primarily for the sense of security that it brings along. Need for larger homes A portion of the demand is driven by the want to raise the standard of living and the need for a ‘bigger and better’ space. Homebuyers across the country are leaping for homes with additional space. With the aspect of owning a home is becoming a priority, the demand for spacious homes will witness a strategic uptake. The trend is here to stay this year and there is a rising need for more space within the homes. Staff rooms and washrooms, home office, and children’s rooms are few of the prerequisites from most homebuyers. Flexible planning There is no one size fits all. The global lockdown led the buyers to re-think about their future investments. Instead of settling for a 1-BHK flat, they were seeking a 1.5 BHK unit if given an option. Buyers are open to stretch themselves for half-a-bedroom for the extra space with the idea of living in a bigger and spacious home. Developers are now open to flexible planning i.e. offering 1.5/2.5/3.5 BHK models where the ‘half bedroom’ house models help the buyers to plan and alter/convert spaces according to their desire and requirements. Studio apartments The target audience looking at studio apartments are young professionals, young couples, students etc. Especially in a city like Mumbai, people want to live in the city’s centre and enjoy the vibrant culture. Keeping in mind the high cost of residential real estate in premium locations; studio apartments offer great value to acquire space to fit in the budget and the flexibility to live in a premium neighbourhood. Also, with walk-to-work culture gaining prominence, homes around office hubs are witnessing demand. Future proofing It is crucial to be able to adapt to unforeseen situations and be future ready i.e. to opt for self- sufficient amenities. Looking forward to the residential market, customers are demanding spacious projects and all-inclusive in-built amenity. From customised floor plans to in-house workspaces, there are new changes in the customer preference that are coming up. From bigger and better spaces to homes with fully loaded amenities, buyers now seek a future proof modern home that is flexible to cater to different needs of the future. Having identified the need-state, developers are steadily adapting to this concept and this will be one of the strongest value-propositions to the homebuyers in 2021. Better neighbourhoods Buying a home in a good neighbourhood is an investment. Irrespective of the pandemic, homebuyers in metros have always been on the hunt for properties that are close to their offices. Additionally, they also look for homes that are well connected to health-care centres, schools, essential stores and services nearby. In metros like Mumbai, the areas that are close to important micro-destinations within the city like corporate hubs, airports, and other public transport along with other social amenities like malls, schools hold a greater demand amongst homebuyers. Areas like Bandra, Santacruz, Lower Parel and Vile Parle in Mumbai are now in high demand owing to the accessibility to prominent corporate hubs, airports and other important locations in the city along with the quality of lifestyle and social amenities. Source: Money Control India

Cabinet approves bill to set up Development Finance Institution

3/18/2021 11:51:00 AM

In a move that could speed-up the process of infrastructure development in India, the union cabinet, on March 16, 2021, approved a bill to set up a Development Finance Institution (DFI), to offer long-term capital support for the sector. “The Cabinet has cleared this bill, through which we will have an institution and institutional arrangement, which will help in increasing long-term funds,” finance minister (FM) Nirmala Sitharaman said, in a press briefing after the cabinet meeting. To be started at an initial paid-up capital of Rs 20,000 crores, the proposed DFI will also receive an additional grant of Rs 5,000 crores from the government. The institution will raise funds from the pension and insurance sectors, for investment in new projects, while also offering tax incentives – the centre will provide a 10-year tax exemption to funds investing in the DFI, to attract long-term players. To lower the cost of funds from the DFI, the government will also provide the institution with some securities. “This decision has been taken by the government, to increase spending on roads, ports and energy and other infrastructure projects, which were pending for completion. It will speed up major infrastructure projects and give a push to the real estate sector in a big way. This is positive news for the real estate industry and all other allied industries,” said Prasoon Chauhan, founder and CEO, BlackOpal Group. The cabinet’s approval, follows an announcement made by the FM on February 1, 2021, in her Union Budget 2021 speech, in which she spoke of setting up the DFI. The industry lauded the announcement, stating that the DFI could go a long way in securing long-term debt financing for the sector. “The DFI is expected to provide ease of access to finance for infrastructure projects and will aid the developers, who are finding it difficult to raise finance with long gestation and tenures, from the banks,” said Vipula Sharma and Nirav Shah of Brickwork Ratings. About 7,000 projects have been identified under the National Infrastructure Pipeline (NIP) with a projected investment of Rs 111 lakh crores during 2018-19 to 2024-25. Work on 1,766 projects has started. The DFI will initially be owned by the government but it will gradually lower its stake in the institution to 26%. Also, half the directors of the DFI will be non-official. Source: India

Part ownership is new realty for Indians

3/17/2021 11:31:00 AM

Fractional real estate, as the concept is known, allows investors to buy, say, 2% of a vacation home for a minimum of ₹2 lakh and use it for their weekend getaways in addition to earning rental income. A growing number of Indians are acquiring slices of rent-yielding residential and commercial properties, owning a tiny portion of expensive property, in a way that is somewhat similar to investing in stocks of a company. Fractional real estate, as the concept is known, allows investors to buy, say, 2% of a vacation home for a minimum of ₹2 lakh and use it for their weekend getaways in addition to earning rental income. The more expensive commercial real estate space is attracting wealthy Indians and non-resident Indians (NRIs). “The pandemic has actually created the catalyst and the stimulus for people to invest. Till now, a weekend property was important but not urgent. But covid-19 has changed that," said Vijay Naraayanan, co-founder and chief executive of Allspace Ventures, a provider of custom-designed super luxury villas, apartments and farm-spaces. For instance, if an investor wishes to own a portion of a one bedroom-hall-kitchen property in Lonavala, the minimum investment starts at ₹2 lakh for 2%. Investors can, of course, buy more. Many NRIs, Naraayanan said, are picking up stakes in multiple properties across India. For any property, multiple owners form a special purpose vehicle (SPV), which buys the asset, and the owners get shares proportional to their investment in the SPV. The SPV has a maximum of 50 investors. The property, when let out, is expected to bring in an annual rental yield of 8-9%. When an investor wants to exit the property, he can sell his share to other investors. In the commercial real estate segment, grade A office real estate is becoming a favourite with investors. “Many white-collar professionals and NRIs are investing in grade A office properties," said Shiv Parekh, chief executive and founder of hBits, a platform providing fractional ownership in commercial properties. The pandemic, Parekh said, has accelerated the pace of fractional real estate as it has forced many developers to sell their grade A commercial properties. Though the minimum investment in commercial properties is ₹25 lakh, an owner is free to sell his stake at any time as there is no lock-in period for the investment. While the rental yield is around 8-9%, if clubbed with property appreciation, it can go up to 15-18% annually. Both real estate investment trusts (Reits) and fractional realty investments help investors earn rental yields while also benefiting from capital appreciation. However, for high networth individuals who would prefer direct ownership in prime real estate, say, a commercial building in Mumbai’s central business district, fractional ownership is the better option as Reit investors have little control over the choice of property that they are investing in but depend on fund managers who decide where the capital is deployed and when to sell an asset. According to Anuj Puri, chairman of Anarock Property Consultants, even though some tech platforms have warmed up to this concept, fractional ownership is still at a budding phase in India and lacks awareness. “Lack of standardization prevented many investors—both global and national—to come forward and opt for this model. With more tech innovations happening, the model is slowly gaining ground, and it certainly has potential," said Puri. Source: Mint India

Chandigarh: Floored by floors in City Beautiful

3/16/2021 11:59:00 AM

Sometimes one wonders whether the recent evaluations of cities befitted an ideal living, or for that matter any rankings have an impact on our civility or our undaunted love for the City Beautiful? While civility I wish was taken as seriously by the citizens as they take notice of the white uniform-clad traffic police of Chandigarh or when they are defending the city in drawing room discussions in Sainik farms and Brampton and New Jersey. Chandigarh has witnessed a sea change in the last decade or so from just being a tier 3 city known for its gardens, parks and tarmac-laden gleaming roads to now being a comfortable mini-cosmopolitan cousin of Delhi. And not only in the culinary diaspora or the slowly impending arts avenues but also architecturally where what was once unthinkable is doable for owning a pad in the city north and south of the Madhya Marg, the defining line between Chandigarh’s version of Lutyens’ Delhi or Corbusier’s Chandigarh and then the rest. The independent floors which are now fulfilling a daydream that many Chandigarh lovers had to own a place in the city can now see it realising with floors mushrooming everywhere with avant garde constructions, elevators, terraces, vertical gardens and basements and parking. The preferred location charges of course are now not limited only to the big real estate players but have extended their reach to the kothi owners too beginning with park-facing corners and, of course, proximity to the lake. Guranchal Sethi, a real estate consultant who has witnessed the change in selling and buying dynamics owing to the family being in the profession from the very beginning, says, “Floor-wise construction helps increase the density of the same plot and gives more options to people who cannot afford to buy full houses in case of family settlements. Floor-wise construction helps in keeping intact the family harmony amongst brothers and sisters as it’s an opportunity to be independent yet living in the same place. There has been an upsurge in sectors like Sector 11 which is now being considered the new defence colony with its increasing floor options and proximity to the lake and probably also because the sector has more one kanal options than any other in that side of town. Yes, there are drawbacks and major issues like parking but since our city was designed for four lakh people and we are a million living here, now this will be an ongoing issue unless we go the Singapore way.” Parking, yes, is an issue the world is battling with and then for a city that has the highest density of privately owned vehicles faces yet another challenge there with its open hand open enough to constantly tweak and revise its parking policies. Surbhi, a young engineer with interests in architectural planning, says, “Levying a charge for congestion and linking availability of parking space with vehicle registration can be done. Who will decide how much is to be charged and when? Also, can a person be denied his or her right to own a vehicle? Community parking is also recommended in each sector by using neighbourhood commercial and institutional parking lots on a rental basis. Interestingly, these lots are to be run by the registered residents’ welfare associations (RWAs).” As long as the green spaces are being maintained, parking etiquette within the neighbourhood and within a floor- wise house is maintained, it’s an idea that is welcome, also because nuclear families within joint families of late have been on a rise. That too because of independent kitchens, lifestyle habits. But then the Sunday lunches are always there to be with the grandparents or the chachas and tayas. Arun Dhir of Dhir Constructions, a firm behind many of the recent reinventions in architectural nuances and options in the Tricity area, sums it up: “Let’s face it. A very minuscule percentage of the population can afford to buy an independent bungalow in Chandigarh. Why shouldn’t a young couple if they can afford to buy a floor, maintain the house and the green spaces? They are probably more agile and economically more open to spending for neighbourhood welfare and upkeep and maintenance. Most of the large houses in town are owned by NRIs or aged parents who find it a challenge to maintain these big lots where the floor culture comes in useful. So, I think it’s an ideal harbinger for changing the mindset of “oh, no we can never buy a house in Chandigarh”. To quote Le Corbusier, “The city of Chandigarh is planned to human scale. It puts us in touch with the infinite cosmos and nature. It provides us with places and buildings for all human activities by which the citizens can live a full and harmonious life. Here the radiance of nature and heart are within our reach.” Now maybe the heart too is. Source: Indian Express Chandigarh

Infrastructure impetus giving rise to remote homes

3/13/2021 12:14:00 PM

The year 2020 was marked with immense changes and transitions in every sphere of human life. With the virus outbreak, offices adopted work-from-home an option which was usually not popular with most businesses. As months passed and the pandemic continued, the culture of remote working seemed here to stay. Before the lockdown, who among us could have imagined that the idea of working will transform so dramatically? During the FY 20-21 Union Budget, the government allocated Rs 20,000 crore to set up and capitalize a Development Financial Institution (DFI)—to act as a provider, enabler and catalyst for infrastructure financing. The higher budgetary allocations offer more scope for growth which helps in boosting the economy. With work-from-home becoming a norm for most companies, homebuyers today are no longer chasing offerings, which are surrounded by commercial buildings, have extremely high rates and provide limited space. Initially, professionals with families would opt for 2BHK-3BHK housing options, with scanty carpet size, just to avoid hours of commute. However, the current events have made the presence of in-house work stations mandatory, motivating people to choose those properties that have the suitable infrastructure and facilities to ensure smooth work from their homes. Through this development of ‘remote homes’ there have been structural changes in business continuity, which will notably accelerate the process of market penetration in the realty sector. Steered by the thrust on digitization, and as an aspirational destination, remote cities are now leading the way in promoting luxury sectors like fashion, cars, and jewellery, as well as necessities like schools and recreational facilities. As the country eased the lockdown across cities, the growth of virtual demand for residential properties in smaller cities has grown by almost three times in August 2020, compared to the same period in 2019. According to an analysis by, interest parameters suggest that there has been a significant increase in interest levels for both buying and renting a home in remote cities. In cities like Mumbai, where residential accommodation is known to leave a massive hole in the buyer’s pocket, the availability of remote housing options has emerged as a great boon. These offerings are located away from the hustle and bustle of congested commercial areas and promise an improved quality of life at budgeted rates. Shifting to a house in an off-beat locality does not mean living far-away from the main city. These upcoming residential projects are centrally located, providing easy connectivity to all parts of the city via road or rail. The realty industry has welcomed this transformation with open arms. It has skillfully leveraged the work-from-home format and has come up with innovative ways to offer home buyers everything they desire at the best price possible. In this new era, affordability and real-estate investment seem to walk hand in hand. Source: Construction Week Online India

Demand for luxury housing improves in Delhi-NCR amid price fall, low interest rates

3/12/2021 10:54:00 AM

The demand for luxury housing properties in the national capital has improved in the last six months on low prices and home loan interest rates, but there is a need to reduce stamp duty to give a further boost, according to industry experts. Addressing a webinar on luxury housing market of Delhi-NCR, India Sotheby's International Realty CEO Amit Goyal said the circle rates in Delhi should be rationalised as market prices are 30-40% lower than the circle rates. Rahul Bhargava, Joint General Manager, HDFC Ltd, Anubhav Jain, CEO, Silverglades Group and Ravinder Singh Ahuja, CA, Founder RS Ahuja & Co also participated in the webinar. “In the last 8-9 years, property prices have only come down. So, it’s high time that the circle rates are rationalised now. I wish there is a stamp duty cut, just like how it was done in Maharashtra and some other states. Even internationally, countries such as the UK and Malta did the same," he said in a statement. Maharashtra and Karnataka governments have reduced the stamp duties on registration of properties. Last month, the Delhi government had reduced the circle rates of residential, commercial and industrial properties by 20% for the next six months, but industry players made a case for further rationalisation. Goyal said demand is much greater than supply in the market today, due to pent-up demand, low interest rates, an all-time high equity market. "There is some amount of profit-booking happening from other asset classes, and money is flowing into real estate," he said. Goyal said property prices have not appreciated over the last decade and rather have come down. “Location has become important post lockdown because people are putting emphasis on upgrading lifestyles. They don’t want to travel too much for work and leisure," Jain said. Bhargava said the loan disbursements have surpassed pre-COVID numbers. "April-May disbursement was negligible, but now, we have surpassed our pre-COVID numbers, and we can see this trend will continue," he added. Ahuja said the property prices and interest rates are at the lowest, which has created a very attractive and positive environment. Goyal said the maximum demand is in ₹15-25 crore bracket and the top three markets are Sundar Nagar, Jorbagh and Shantiniketan in the national capital. HDFC Home Loans and India Sotheby's International Realty are jointly organising Delhi Luxury Home Fair 2021, an online property show from March 6-21. The show will exhibit luxury properties including ready-to-move-in homes and new developments across Delhi NCR in a price range of ₹5 crore to ₹150 crore. Source: Mint Delhi

Loans to real estate developers see an 81% increase on improvement in housing sales

3/11/2021 12:10:00 PM

A total of 506 loans worth Rs 1.16 lakh crore have been sanctioned during 2020. There was a 81 percent year-on-year increase in the number of loans sanctioned to real estate developers during the December quarter of 2020, and an almost 180 percent growth in the sanctioned loan amount at Rs 37,921 crore, showed data shared by Propstack. With housing sales picking up on the back of record-low home loan rates and stamp duty cuts in many states, several developers have considered refinancing their existing loans. Banks too have come forward to lend on account of increased cashflows for some developers, the real estate data analytics firm said. After a sharp drop in 2019, there was a further 8.5 percent year-on-year drop in the loan amount sanctioned in 2020 versus 2019. If 641 loans were sanctioned in 2019, only 506 loans were sanctioned in 2020 a year that was marked by the COVID-19 pandemic, the analysis showed. A total of 506 loans worth Rs 1.16 lakh crore have been sanctioned during the year 2020 and this is 8.5 percent lower than Rs 1.27 lakh crore loans sanctioned in 2019, the analysis showed. There was a strong recovery in the fourth quarter of 2020 with a 81 percent year-on-year increase in the number of sanctions despite an overall 21 percent drop in 2020 versus 2019. There has also been an 1.8 times year-on-year growth in the loan amount sanctioned in the fourth quarter of 2020 driven by sales recovery and refinancing at lower rates. If loans worth Rs 13,569 crore were sanctioned in 2019, loans worth Rs 37,921 crore were sanctioned in the fourth quarter of 2020, it said. There was an overall decline of 80 bps in interest rates in 2020 compared to 2019. Interest rates, charged by financial institutions, came down to 10.8 percent in 2020 from 11.6 percent in 2019, following repo rate cuts announced by the Reserve Bank of India, the Propstack analysis said. The average interest rate charged by the non-banking financial companies (NBFCs) decreased from 13.8 percent in 2019 to 11.9 percent in 2020. Banks saw a decline from 10.3 percent in 2019 to 9.9 percent in 2020, the analysis said. Propstack covered loan sanctions to over 1,000 real estate developers spread across the country and their SPVs based on their charge filings with the MCA. Source: Money Control India

Affordability of residential real estate improves dramatically

3/10/2021 11:18:00 AM

Falling loan rates and stagnant real estate prices mean that you can get a better loan deal than ever When home loans fall by 100bps, they are as effective as a 5% price cut from the affordability perspective There was never a better time to buy a house than today. According to data from multiple sources, property affordability is the highest ever if you consider real estate prices, falling home loan interest rates and incomes. Home loans from top banks are at rock bottom. Kotak Mahindra Bank has the lowest rate at 6.65%. State Bank of India and ICICI Bank offer home loans starting at 6.70%. For HDFC Ltd, the lowest interest rate is 6.75%. Property consultants and lenders point out that incomes have risen faster than real estate prices, at least in the past decade. According to a research report from broking firm Jefferies India Pvt. Ltd, since 2013, property prices have shown a compounded annual growth rate of 1-2%, significantly below inflation, and are also trailing growth in income levels. “Except for a few pockets, property prices have remained stagnant since financial year (FY) 2013 as volumes started declining. During the same period, we have seen an average income growth of 8-10% a year," said Piyush Bothra, co-founder and CFO, Square Yards, a property portal for buying, selling and renting. When home loans fall by 100 basis points, they are as effective as a 5% price cut from the affordability or home loan servicing perspective. They were around 8% at the beginning of January 2020. Let’s look at how falling interest rates affect a home buyer. AFFORDABILITYHAS GONE UP HDFC Ltd tracks affordability based on the customer’s profile, property rates and other incentives available for a buyer, including tax deduction. In FY2000, property prices, on an average, were 5.9 times the annual income of a buyer. In FY2020, the price of the property that a person purchased was on an average 3.3 times the annual income. According to JLL India, home purchase affordability among the top seven metros is on the rise. The cities include Mumbai, Delhi NCR (National Capital Region), Bengaluru, Chennai, Pune, Hyderabad and Kolkata. Kolkata has the best affordability, followed by Hyderabad. Mumbai was at the bottom among the seven metros. WHAT AFFORDABILITY MEANS FOR BUYERS With affordability rising, you can buy a bigger property with your current income. Home loan rates are down by about 1.2-1.3 percentage points compared to last year alone. Assume a buyer earns, say, ₹1 lakh net salary a month. He/she takes a loan for 20 years. At 8% interest rates, the buyer could get a loan up to ₹59.78 lakh. At current rates of say 6.7%, he/she can get an additional ₹6.24 lakh loan. If the loan amount is the same, your monthly outgo reduces considerably. Say, a borrower wants to avail a ₹50 lakh loan for 20 years. A 1.3 percentage point difference in interest rate can bring down the equated monthly instalment (EMI). A borrower would pay an EMI of ₹37,870 at 6.7% rates, whereas the monthly outgo works out to be ₹41,822 at 8% rates. But home loan interest rates are just one part of affordability. “In the latest consumer sentiment survey, we discovered that attractive deals offered by developers was the top factor driving housing demand (for at least 36% of the respondents). Availability of cheaper loans was the second factor in their property purchase (for 25% respondents) decision," said Anuj Puri, chairman, Anarock Property Consultancies. SHOULD YOU BUYA HOUSE NOW? Due to better affordability, many people have already started buying homes. “Among those who are buying properties, many are first-time buyers. A portion is also those who are looking at bigger houses. Due to work from home, many have realized that they need separate working space in the house," said Raoul Kapoor, COO, Andromeda, an intermediary for loans with different banks. While affordability is at its best for an average buyer, there is no right time to buy a house for consumption—where the purchaser will reside. If you have been planning to buy one, go for it. But don’t rush to buy a house just because the loans and prices are attractive. It’s best to plan for a big purchase like home. You will need to contribute around 20% of the purchase price even if you are planning to finance it. For those looking to invest in property, most experts advise against it. “There won’t be any dramatic increase in the prices any time soon for investors to start looking at the residential real estate market," said Bothra. Added Puri: “Investors with the financial wherewithal can consider expanding their portfolio into other options like real estate investment trusts (Reits), which are yielding a good return on investments. Reits are seen to be a stable income generator, especially since it is driven by strong demand and occupancies in India’s Grade A office market, further backed by lease commitments from big corporates." So, buy a house if you intend to stay in it, not for investment. Source: Mint India

Real estate sector welcomes 1% stamp duty discount for women

3/9/2021 12:12:00 PM

The real estate sector in the Pune Metropolitan Region on Monday expressed optimism over finance minister Ajit Pawar’s announcement of a 1% concession of women homebuyers during his budget speech. Large real estate players and collectives in the region felt that the reduction in stamp duty would give a much needed fillip to the sector, which went through a rough patch due to the pandemic last year. While the market enjoyed a purple patch of sorts in the last quarter of 2020, due in large part to the 3% reduction in the stamp duty, the rate was increased by 1% from January. The concession is to be phased altogether from March 31, an uneasy prospect for some in the real estate sector. In his budget speech on Monday, Pawar said the 1% concession — coinciding with International Women’s Day — was an empowerment measure. The move is expected to cost the the exchequer Rs1,000 crore, and the government has raised taxes elsewhere, particularly on Indian-made foreign spirits, , to make up for this. “This (the concession) will not only help the construction sector, but is also an important step towards women’s empowerment,” Poonam Gokhale, director of Gokhale , director of Gokhale Constructions, said. Credai-Pune Metro also lauded the proposal and noted that this had been a long-pending demand. “In fact, Credai-Pune Metro had earlier requested the state government to offer a discount on stamp duty if a flat is registered in the name of a woman. So, in a sense, our demand has been accepted,” Suhas Merchant, president of Credai-Pune Metro, told TOI. Source: Times of India Pune

Ease of Living Index: Bengaluru, Shimla adjudged best among 111 cities

3/5/2021 12:52:00 PM

Bengaluru emerged as top city on government's Ease of Living Index 2020 that was released by Housing and Urban Affairs Minister Hardeep Singh Puri on Thursday. Pune was second and Ahmedabad was ranked third among 111 cities. Puri announced the release of the final rankings of Ease of Living Index (EoLI) 2020 and the Municipal Performance Index (MPI) 2020 in an online event. The rankings under Ease of Living Index 2020 were announced for cities with a population of more than a million, and cities with less than a million people. 111 cities participated in the assessment exercise that was conducted in 2020. The analysis categorises them into Million+ populated cities (those with a population of more than a million) and Less than Million populated cites (those with a population of less than a million) along with all the cities under the Smart Cities Program. Bengaluru emerged as the top performer in the Million+ category, followed by Pune, Ahmedabad, Chennai, Surat, Navi Mumbai, Coimbatore, Vadodara, Indore, and Greater Mumbai. In the Less than Million category, Shimla was ranked the highest in ease of living, followed by Bhubaneshwar, Silvassa, Kakinada, Salem, Vellore, Gandhinagar, Gurugram, Davangere, and Tiruchirappalli. Similar to the EoLI index, the assessment framework under MPI 2020 has classified municipalities based on their population- Million+ (municipalities having over a million population) and Less than Million Population. In the Million+ category, Indore has emerged as the highest ranked municipality, followed by Surat and Bhopal. In the Less than Million category, New Delhi Municipal Council has emerged as the leader, followed by Tirupati and Gandhinagar. The MPI examined the sectoral performance of 111 municipalities (with Delhi being assessed separately for NDMC, and the three Municipal Corporations) across five verticals which comprise of 20 sectors and 100 indicators in all totality. The five verticals under MPI are Services, Finance, Policy, Technology and Governance. The Ease of Living Index (EoLI) is an assessment tool that evaluates the quality of life and the impact of various initiatives for urban development. It provides a comprehensive understanding of participating cities across India based on quality of life, economic-ability of a city, and its sustainability and resilience. The assessment also incorporates the residents' view on the services provided by city administration through a Citizen Perception Survey. "he Municipal Performance Index (MPI) seeks to examine local government practice in municipalities across areas of services, finance, policy, technology and governance. It seeks to simplify and evaluate the complexities in local governance practice and promote the ethos of transparency and accountability.Both the indices represent an attempt to gauge the performance of cities across India on various parameters of urban living. The Ease of Living Index encapsulates the outcome indicators while the Municipal Performance Index captures the enabling input parameters. These indices provide a holistic assessment of cities based on their efforts to cultivate better quality of life, create infrastructure, and address challenges of urbanization," said Ministry of Housing & Urban Affairs in a statement. "The Municipal Performance Index is an effort to assess and analyse the performance of Indian municipalities based on their defined set of functions. The responsibilities of a municipality span across a range of verticals that include provision of basic pubic services to more complex domains like urban planning. The salient features of MPI are given below. The framework covers 20 varied sectors vis. Education, Health, Water & Wastewater, SWM & Sanitation, Registration & Permits, Infrastructure, Revenue Management, Expenditure Management, Fiscal Responsibility, Fiscal Decentralisation, Digital Governance, Digital Access, Digital Literacy, Plan Preparation, Plan Implementation, Plan Enforcement, Transparency & Accountability, Human Resource, Participation and Effectiveness," the Ministry further said. India

Post-covid-19, women prefer real estate more than men, finds survey

3/4/2021 12:04:00 PM

Women’s preference for real estate has risen post-covid-19—from 57% votes in a pre-covid-19 consumer sentiment survey to 62% in the current edition of the survey by ANAROCK Property Consultants. Their main sentiment drivers include affordability, offers and discounts, and home loan rates. Women tend to prefer real estate more than men. While 62% of women prefer to invest in real estate, only 54% of men chose it over the stock market, fixed deposits and gold . The company had surveyed 3,900 survey participants. Of these, 36% of respondents were women. Other key findings of the survey are as under: > At least 82% of women respondents will buy a home for end-use, 18% for investment. In contrast, 68% of men will buy for end-use and 34% for investment. > Over 70% of women respondents consider this to be an ideal time to buy a property. > At least 66% of women respondent home seekers will buy within affordable and mid-segment housing (below Rs90 lakh) > Most women prefer bigger configurations—46% favour 3BHKs while 30% are scouting for 2BHKs. About 10% also looking for 4BHKs. > The security of physical assets influences 31% of women homebuyers, 28% are attracted by cheaper home loans, and 22% by available offers and discounts. > While most women preferred properties priced within Rs90 lakh, 5% voted for ultra-luxury real estate priced (Rs2.5 crore) “The survey reveals that many Indian women now consider housing not just the bedrock of financial security but also essential to diversify their investment portfolios," said Prashant Thakur, director & head of research, ANAROCK Property Consultants. According to the survey, women homebuyers prefer ready-to-move-in homes, reflecting a strong aversion to under-construction properties. Nearly 71% of women respondents want to buy ready homes, followed by 11% each for homes that will be available for possession in the next six months and newly-launched projects. Various government policies support and promote women homeownership in India. For instance, to avail homes under the government’s flagship scheme Pradhan Mantri Awas Yojna (PMAY) introduced in 2015, homes have to be mandatorily registered either in a woman’s name, or with women as co-owners. It was done to empower women of the lower-income segments. Lower stamp duty is another benefit that women enjoy while buying a property. Stamp duty charges are lower if property registration is executed in the name of a woman, although these charges vary from state to state. The exemption for women varies between 1-2% across different states. To avail of certain tax benefits, a woman can also become the joint owner of a property with her husband and, if she has a separate source of income, both can claim tax deductions individually. Source: Mint India

SBI reduces home loan rates to 6.70%

3/3/2021 12:34:00 PM

The country's largest lender State Bank of India on Monday said it has reduced interest rates on home loans by up to 10 basis points (bps) and is offering loans starting from 6.70 per cent rate. The new rates are based on loan amount and CIBIL score of the borrower, and are available till March 31, 2021, according to a statement. The bank said the home loan interest rates will start from 6.70 per cent for loans up to Rs 75 lakh and 6.75 per cent for loans in the range of Rs 75 lakh-Rs 5 crore. The bank's Deputy Managing Director (Retail Business) Saloni Narayan said, "We want to take advantage of the festive season, especially Holi. This being the last month of the year, we are looking at a good number." The lender is also giving a 100 per cent waiver on processing fees. Customers can also apply for home loans using Yono app to get an additional interest concession of 5 bps, the bank said. It is also offering a special 5 bps concession to woman borrowers on the eve of International Women's Day. Narayan said the bank does not see much challenge in terms of repayments in the home loan segment. "We are mindful of whatever stresses are there and we are reaching out to the customers. "We are taking several steps within and outside the bank and also giving options to borrowers on how they can repay the loans. We are monitoring closely and, as of now, I don't see much of a challenge," she said. The lender's gross non-performing assets in the home loan segment is 0.67-0.68 per cent, its Chairman Dinesh Khara had said last month. ET Realty India