LATEST NEWS


Rajasthan housing department fixes norms to ensure homes for poor

5/17/2021 11:19:00 AM

The urban development and housing (UDH) department has tightened its noose around those developers who are hesitant to provide houses to the Economically Weaker Sections (EWS) and Lower Income Group (LIG) in their schemes as per the mandatory norms. Now, it will not be easy for developers in the state to not construct houses for the EWS and LIG in their schemes. As per the township policy rules, builders or developers launching a group housing scheme or high-rises must construct houses for EWS and LIG categories. Till date, no project has been cancelled and developers who have defaulted have not initiated construction. Sources said, developers had shown apprehension to construct houses for the poor on premium land and in schemes. Following this, relaxation was provided to construct houses for EWS and LIG category on some other project land. However, many have not adhered to the policy. After the new rules, developers cannot construct EWS and LIG houses at distant locations. An official said, the civic body provides relaxation in land conversion, building map approval and other charges to developers for constructing houses for EWS and LIG category. In return, the private builders have to develop schemes and invite applications through lottery in the presence of representatives of local bodies. “If a developer was constructing apartments in a posh locality, then he would provide houses to EWS and LIG sections in far-flung areas. However, as per new rules, it would be mandatory to provide houses in 800 metre periphery of the main project,” said the official. After receiving several complaints, the Jaipur Development Authority (JDA) also constituted a panel of chartered accountants to audit the houses and plots constructed under various provisions of the Chief Minister Jan Awaas Yojana. The zone commissioners were directed to monitor the houses and plots constructed under the scheme. Strict rules were framed after it was observed that many developers are not constructing houses. Source: Economic Times RAJASTHAN

NAREDCO urges UP CM to provide relief to real estate developers amid pandemic

5/16/2021 11:20:00 AM

Noida (UP), May 12 (PTI) Real estate body NAREDCO on Wednesday said it has requested Uttar Pradesh Chief Minister Yogi Adityanath for an 18-month interest-free period for developers for clearing outstanding land dues, lease rent and other payments amid the second wave of the COVID-19 pandemic. The National Real Estate Development Council (NAREDCO) has also sought extension of time period for completion of projects, among other relief measures to mitigate problems in completing construction and handing over possession of flats to allottees. In a letter to the chief minister, NAREDCO UP Chairman R K Arora said the real estate industry, in spite of its vast potential and capabilities to support the economy, has been "neglected" at all levels and has been the "victim of all adverse situations". "Construction at the real estate projects has always been the first casualty for the environmental issues, ground water level issues, Master Plan issues, legal issues, labour exodus, and now the pandemic COVID-19, as a result of which almost all the projects are delayed causing cost escalation, liquidity crisis, defaulted land payments and the project loans becoming NPA," he stated. Arora said the delay in completion of these projects have resulted in agitation by homebuyers and large number of complaints in different fora like RERA, consumer forums and civil courts, which are imposing heavy fines on developers. Putting forward NAREDCO UP''s demands, he urged the chief minister to issue directions to the industrial development department/authorities to allow relief to the sector, treating the pandemic as a "National Natural Calamity". The demands included an 18-month interest-free period (zero period) on the dues to the Noida, Greater Noida and Yamuna Expressway Authorities from allottee developers against construction days lost on account of the pandemic. "Withdraw the demand of time extension charges on all projects which have obtained occupancy certificate of minimum requirements of total FAR of allotted plot as per building bye laws," the NAREDCO letter stated. The industry body also batted for tagging of authorities dues with sub-lease permission flat-wise on pro-rata basis, besides withdrawal of increase in rate of lease rent. PTI KIS ABM ABM Source: Outlook NOIDA

Maharashtra offers 1% stamp duty concession for women buyers

5/14/2021 11:19:00 AM

The Maharashtra government, in its budget for 2021-22, announced a concession of 1% over the prevailing stamp duty rate on property transactions, if the transfer of house property or registration of sale deed, is done in the name of women. The announcement was made by deputy chief minister Ajit Pawar, on March 8, 2021. Consequently, women buyers will now pay only 2% of the property value as the stamp duty. The move has been welcomed by the industry. “Majority of women are buying homes now, not only as an investment but also for financial security. This step by the government, ratifies their support towards female home buyers. It will also help provide security to dependent women, as more men will buy houses in the name of the women in their families,” said Ram Raheja, director, S Raheja Realty. “Modern-age women portray strong desirability to own a home and the rebate in stamp duty is a great move that will boost housing sales and make women take the leap from being home-makers to bread earners and now, proud home owners,” said Raunika Malhotra, president, marketing and corporate communications, Lodha. “Women have long been recognised as an important part of the decision-making, when it comes to selecting a home. Today, women are independent, empowered, educated and employed. The state acknowledging this and making way for women to be more empowered, is a move in the right direction. The announcement in the state budget, on reduction in stamp duty for women home buyers, has come as a perfect celebration for Women’s Day, which will encourage them to invest in real estate,” said Shraddha Kedia-Agarwal, head, marketing and sales, Transcon Developers. “The government has taken measures to encourage women to invest in real estate, by providing concession on stamp duty, if any house is purchased solely in the name of the woman. It is a pleasant coincidence that the measures given to women in real estate came on Women’s Day,” added Himanshu Jain, VP, sales, marketing and CRM, Satellite Developers. However, in spite of the intense demand from the industry, to continue with the temporary stamp duty rate reduction that expired on March 31, 2021, the state has withdrawn the benefit. Consequently, buyers will now pay 5% stamp duty on property purchases, beginning April 1, 2021. The 1% reduction offered to women buyers will, however, continue. Recall here that during the period for which the stamp duty reduction remained in effect, housing sales increased month-on-month in the state. Data available with the Inspector General of Registration (IGR), Maharashtra, show that during the period between September 2020 and March 2021, when the stamp duty cut was effective, as many as 80,718 properties were registered in Mumbai alone, a growth of 114% against the same period last year. “On behalf of the real estate fraternity, we urge the government to extend the reduced 3% stamp duty charges for another two quarters, so that we can continue to encourage the home buyers to invest in their dream homes,” Ashok Mohanani, president, NAREDCO-Maharashtra had said earlier. Source: Housing.Com MAHARASHTRA

Strong, Well-Structured, Protective: Real Estate, As It Should Be!

5/13/2021 11:50:00 AM

Real Estate, often dubbed to be one of the safest investments in the world, has shown exactly why it has garnered the reputation it holds despite several industries suffering from Covid’s conquest of the market. Be it land, residential, industrial or commercial spaces, Real Estate agencies believe that the industry has the potential to persist its customary pace, if not experience a boost in the present times. Talking about residential estate, the most familiar one; offering houses for a nuclear family, residential apartments, townhouses and condominiums, is expecting a hike given the unrest in the residential preferences in the lives of people post Covid-related agitation. On the other hand, the sudden surge in the increasing demand for Covid-care facilities, hospitals, isolation centres, drug manufacturing units, oxygen plants, logistics warehouses etc has significantly turned the Industrial and the Commercial estate into go-to places for both, the state and the capitalists. Conversing the emerging trends in the residential estate, the preferences has substantially shifted recently. For instance, living spaces with ample amount of basic amenities attached are being demanded keeping Covid protocols in mind. Similarly, workspaces have been redesigned and rearranged, keeping both the employers’ and employees’ welfare in mind. Given the economic crisis the nation experienced recently, it was understandable that the Real Estate saw a marginal downfall but now that the masses have started to live with the pandemic while taking ample measures to protect their loved and dear ones, they’ve finally started investing in better residential spaces that’ll offer much more protection than their orthodox counterparts they’ve been residing in lately. In a nutshell, keeping no doubts over the potential the real estate possesses, it has been noted that while there’s a steady recovery in the demand for residential spaces, a boost has been experienced in the demand of services offered by land, commercial and industrial spaces despite the unusual times. Stats show, around 15% of the total jobs in India are generated by the real-estate sector. Also, this implies, every one of the auxiliary businesses that take into account building homes or anything, indicating a surge of demand among the middle-income and the upper-middle-income groups as they prepare to purchase their fantasy houses. Because of plans like Pradhan Mantri Awaas Yojna and the splendidly made RERA endorsed projects, which act like the catalysts in the entire process! Additionally, the Indian rental real estate market will undoubtedly develop with the developing flood of transients from non-metro to metro urban communities. This has definitely expanded interest for moderate rental spaces in vicinity to the functioning spaces or instructive organizations and the development of the idea of co-living. It will not be wrong to presume that the property costs will doubtlessly see a hike and move the market development through 2025, particularly in the setting of Tier 1 urban communities. Source: Business World INDIA

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

5/12/2021 4:17:00 PM

The circle rates in Delhi should be rationalised as market prices are 30-40% lower than the circle rates, say industry experts 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-NCR

Banks line up offers for buyers amid scramble for home loans

5/10/2021 11:04:00 AM

Low interest rates and shift to remote working have driven the growth of home loans Indian banks are jostling to disburse home loans, having tasted success on this front in a tough economy. The aggregate home loan portfolio of banks grew 9.1% in the year till 26 March to ₹14.59 trillion. While this was lower than the 15.4% growth seen a year ago, it marks an improvement after the plunge in the first few months of the pandemic. Senior bankers attributed the growth in home loans to low interest rates and the shift to remote working. As work-from-home becomes the norm, people can buy houses far from expensive office centres. Banks are increasingly focusing on the segment, sensing the opportunity and realizing the need for more secured loans on their books. After the collapse of Dewan Housing Finance Corp. Ltd (DHFL), there has been a stronger movement of home loans towards banks, C.S. Setty, a managing director at State Bank of India (SBI), said. The central bank had referred DHFL to the insolvency tribunal in November 2019, following mounting stress at the mortgage lender. The Piramal group recently won a bid to take over the lender and is now awaiting regulatory clearances. “So, it is a combination of banks willing to do more secured loans, and the underperformance of some of the major non-banking financial companies (NBFCs) that has led to an increase in the portfolio of bank home loans. This asset class will definitely be pursued by everyone as they see value and security in it," Setty said. SBI has a 35% share in home loans among all commercial banks. The lender, which has a home loan portfolio of ₹5 trillion, plans to double it in the next five years. At private sector lender Axis Bank, home loan disbursements jumped 73% year-on-year (y-o-y) as of 31 March, the sharpest disbursement growth within the secured segment. “Our home loan logins and disbursements for Q4FY21, touched highest ever quarterly numbers, driven by improved rigour and rhythm and reduced turnaround times as a result of project initiatives," Amitabh Chaudhry, chief executive, Axis Bank told analysts on 27 April. Kotak Mahindra Bank, another privately held lender, saw a 13% growth in home loans and loans against property (LAP). It has reduced the relative size of its unsecured book to 5.8% of the loan book in FY21 from 7.5% a year ago. Source: Live Mint INDIA

RBI's decision well-timed: Industry

5/9/2021 12:44:00 PM

The RBI's decision on supporting small businesses and priority loans to COVID-related health infrastructure are well-timed and propitious as the pandemic is posing new challenges for the economy, according to industry. The RBI on Wednesday allowed certain individual and small borrowers more time to repay debt and allowed banks to give priority loans to vaccine makers, hospitals, and COVID-related health infrastructure as it announced support measures to cushion the pandemic's blow on the the economy. Industry chamber CII said that opening of on-tap liquidity of Rs 50,000 crore till 31 March 2022 for health care sectors is encouraging as the health care and allied sectors are facing tremendous stress of increased demand, supply constraints, and liquidity scarcity. "At a time when the pandemic is posing new challenges for the economy, the well-calibrated first tranche of measures announced by the RBI today pertaining to supporting the small businesses and incentivising lending to the healthcare sector is indeed well-timed and propitious," it said in a statement. Hailing the decisions, the Federation of Indian Export Organisatrions (FIEO) said that it will help in expanding the health infrastructure in the country, which is in distress due to increasing coronavirus infection. "The federation together stands with the government in all its efforts to control the surge in COVID-19 pandemic and support the economic growth of the country," it added. Apparel Export Promotion Council (AEPC) Chairman A Sakthivel said these are timely measures to prop up the much-needed COVID-related healthcare infrastructure in India. The loan restructuring, he said, will be a timely help for many MSMEs (Micro, Small & Medium Enterprises), he added. Apart from the loan restructuring facility, the decision to allow banks to extend the moratorium under restructuring frame 1.0 for a period of up to two years will provide breathing space to many MSMEs trying to recover from the impact of pandemic," Sakthivel said. Assocham said that these are important confident-building announcements by the RBI. ''The targeted policy response and easy credit promised to the entire healthcare value chain, in the government and private sector including the vaccine manufacturers are the most apt measures at this point of time'' it said. The RBI has "most correctly" recognised how small businesses and financial entities at the grassroots are bearing the most considerable burden of the pandemic and has thus unveiled measures to help them, it added. Niranjan Hiranandani, National President, NAREDCO said that these "pro-active moves" are positive for India's beleaguered economy, which was on the path to recovery from the impact of the pandemic in 2020 but is facing the challenge of the second wave. The focus of the announcements "were small businesses, individuals and MSMEs; real estate as an industry looks forward to supporting in form of measures which will help tide over the challenges posed by the second wave," he said. Source: Economic Times INDIA

Haryana cabinet approves new policy for sale of shops of civic bodies

5/8/2021 11:58:00 AM

The Haryana government on Thursday approved a policy for sale of those shops or houses by municipal bodies where the possession of such properties for a period of 20 years is with entities other than these bodies and transfer ownership to them. On certain terms and conditions, it has been decided to transfer the ownership of these properties to such persons who are currently in "justified possession of these properties". "To encourage monetization of locked properties of the municipal bodies, Haryana Government has made a policy for sale of shops or houses by these bodies, where possessions of such properties for a period of 20 years is with entities other than the Municipal Bodies," a state government statement said giving details of the decision of the state cabinet, which met here under the chairmanship of Chief Minister M L Khattar. The policy for sale of those shops or houses by municipal bodies will come into force on the date it is notified by the government. Giving details of the policy, the statement said there are a large number of properties in the shape of shops or houses which, though are presently owned by the municipal bodies but are in the possession of entities or individuals other than these bodies for a period of 20 years or more. "The municipal bodies find managing such properties difficult, particularly in view of the fact that the ownership or possession of such properties have, in several cases, changed hands on numerous occasions and the Municipal bodies lack authentic documentation in this regard. Further, several municipal bodies are unable to even recover the rentals of such properties. "On a careful consideration, it was decided to transfer the ownership of these properties to such persons who are currently in justified possession of these properties," the statement said. The statement said this policy will not only strengthen the financial position of the municipal bodies but will also grant the small shopkeepers and others in possession the ownership of the properties. Giving details of terms and conditions of the policy, where the entire structure constructed by the municipal body is raised on the land and the land is to be transferred to a single occupier (irrespective of number of floors constructed there upon) base rate would be the chargeable price. Similarly, where the structure constructed by the municipal body is two storied and each of such storey is to be transferred to different occupier, then the chargeable price would be 60 per cent of base rate for the occupier of ground floor and 40 per cent of the base rate for the occupier of first floor. Furthermore, where the structure constructed by the Municipal Body is three storied and it is to be transferred to more than one occupier, then the chargeable price would be 50 per cent of Base Rate for the occupier of ground floor, 30 per cent of the Base Rate for the occupier of first floor and 20 per cent of the Base Rate for the occupier of second floor. The applicant or occupier in whose favour the property is to transferred by way of execution of conveyance deed shall also be liable to make payment of all the established taxes and arrears thereof. The cabinet also approved another policy named Homeless Abandoned and Surrendered Children Rehabilitation Initiative for providing employment, educational and financial benefits to such children who are abandoned and who have completed the age of 18 years from child care institutions of the state and were abandoned before the age of 5 years or "surrendered" before the age of 1 year. The aims and objectives of the policy includes to provide jobs on compassionate grounds and Economically Weaker Section (EWS) status to "abandoned and surrendered children", upto the age of 25 years, and who possess the required qualification. Such children will also be provided free school and higher education including technical education, rehabilitation and financial assistance upto age of 25 years or marriage, whichever is earlier, and one time interest-free loan for purchase of a house in Haryana. Source: ET Realty HARYANA

Uprising NRI investment in Indian real estate market

5/7/2021 11:02:00 AM

The real estate industry has always been an ever-evolving sector. It is not only one of the major employment generator markets but also contributes 7 percent to the country’s GDP and it is expected that it might end up contributing 13 percent to the country’s economy by 2025. The occurrence of the pandemic last year brought about major disruptions in the Indian real estate market. As per a survey by Magicbricks, one of the leading online property marketplace, real estate prices in top metro cities witnessed a dip by 2-9 percent in the first quarter of 2020-2021 due to lockdown. However, since the onset of 2021, the sector is walking on the path of revival. While the journey does seem tough, but the shift in the consumer psyche has played a pivotal role in the sector’s growth. COVID-19 brought about a lot of instability and hence consumers are now considering real estate to be the ideal and stable investment solution. Rising NRI investment in Indian real estate market While the domestic consumers are inclined towards this trend, even NRI investments have been growing significantly. As per a report by 360 Realtors, Non-Residential Indians invested $13.1 billion in the Indian real estate market in FY 21. It further states that the investments are expected to reach $14.9 billion in FY22 and will grow at 12 percent. Earlier, NRIs used to purchase properties with an aim to invest or use them for rental purposes. However, the pandemic came as a wake-up call for them and they have now realized the value of having a home in their homeland with a vision to settle in the future. Hence, property buying has become both a lucrative and sentimental solution for NRIs. As per CII-Anarock’s Real Estate Vision study, 38 percent of the bookings of the Indian properties were done by NRIs last year and various factors have contributed to the surge in this trend. Be it increased transparency, eased investment norms, depreciation in the Indian rupee, a significant dip in property rates, or stringent regulations, all of these have paved the way for NRIs to invest in the Indian real estate market. The provision of attractive payment plans and the correction in the value of the Indian rupee has further given a boost to this trend. NRIs now prefer spaces that are open, lush, spacious, and are in close proximity to the health and wellness amenities along with offering accessibility and safety. Additionally, they go for ready-to-move-in or on the verge of completed projects at the outskirts of the city so that there are no delays in possession. Technology has also played a major role to bridge the gap between NRIs and domestic buyers. The developers are organizing virtual tours, a digital inspection of properties, processing documents, finalizing the paperwork, and purchasing the properties without making any physical visits by making use of the online space. Additionally, the construction of smart homes and the incorporation of eco-friendly features has also led to the increased attention of the NRIs in the Indian real estate segment. The implementation of RERA has further escalated the sale of properties by NRIs. Since there are no delays in projects, developers can't divert funds from unannounced projects and are answerable for all the glitches, and hence RERA has emerged as a boon for NRIs. Additionally, the interest rates on home loans have been as low as 6.5% in certain banks and one can avail of a loan of up to 80% of the total property value. There are also options of using NER accounts when applying for loans to invest in Indian properties. All of these regulations have made the process of purchasing properties smooth and seamless for NRIs. Source: CNBC INDIA

Structural Shift In Residential Real Estate In India

5/5/2021 9:50:00 AM

From Q4 2020, residential real estate has witnessed a resurgence. There are divergent views on whether the momentum is here to stay or is just a temporary phenomenon. The doubt casts deeper when the sales dwindle in cities where the Covid surge is high. Therefore, the real question is, what is the long-term prospect of Residential real estate in India? If we look at residential sales performance across the top seven cities in India, the annual figures have consistently dipped from 355,000 units in 2011 to 255,000 units in 2019. In 2020, the figure was 160,000 units while nearly two quarters wiped off. In contrast, the population in India grew from 1.21 billion to 1.35 billion in this time frame. Many theories were floating around over the sluggish market; some blamed it on the demonetization, some said millennials are renting and not buying a home. But if we take a closure look at the data, the facts changed drastically. NCR and MMR, which contributes nearly 50% of the house sales among the seven metros, forced the numbers' nosedive. NCR fell from 100,000 sales in 2011 to 28,000 by 2020. MMR also slipped to a great deal. On the contrary, the southern cities like Hyderabad and Bangalore sales grew at almost 8-9% of the compounding rate during this period, while Kolkata remained stable. It shows that demographic fundamentals were not at fault. For NCR, it was the over-leveraged, insolvent developers who could not deliver projects. Disputes, litigation, deceit, and lack of approvals created a sense of despair in the entire north India market. On the other hand, the MMR region went too far on the extremes of affordability, fuelled by swelling ready reckoner rates, hefty premiums for FSI, and perpetual high land cost. Thus, we need to wait and watch whether the market will roll back to the previous era or has something positive to look at in the new decade at 2021. Three fundamental changes are going to prevail in the current decade. First is the change in demographic structure. In India, nearly 60% of all home purchases occur in 35 to 55 years. That is where stability in income and growth takes place. This age group is also known as the prime consuming class. According to the July '20 population report of Census of India, about 268 million were in the exceptional consuming age group in 2011, which swelled to 337 million in 2021 and will grow to 400 million-plus by 2031. Even within this cohort, the 35-45 years of age group will dominate with a 55% share. In the previous decade, the 25-35 years used to be the dominant cohort. Therefore, it is the sheer size and the presence of more stable income groups that indicate that housing will be in demand for a long time. The second important aspect is the rise in per capita income. With positive thinking that the world will return to Pre -Covid level by 2023, India is expected to grow between 6-8% per annum, taking the GDP to nearly USD 8Trillion by 2030. With this GDP number, the per capita income will also grow 2.5 times from the current USD 2000 per person. It means people will have more money in their hands. The third shift is in the social structure. According to the Technical group's report on 'Population Projection' in July 2020, the dependency ratio will decline from 6.5 in 2011 to 5.3 by 2031. Within the dependent group number of children is also going to be lesser. This indicates that more and more families will be smaller, having less dependent people meaning more significant savings and disposable income. The decade of 2021 to 2031 started ominously, but it is certainly not the way to look at the new decade. The three structural shifts indicate that the prime consuming class in India will swell in number; they will be economically better off and have more disposable income. There is good news for many sectors, including real estate. Another notable fact is that UP, Bihar, MP, and Rajasthan will account for nearly 50%population growth for the next 15 years, indicating that the metro cities in India will continue to see migration from these states. While the fundamentals speak unequivocally about a buoyant residential market in India for the next decade, a lot will depend on how the developer community curates their product and price to match the ever-changing patterns of need. The markets and stakeholders who would take cognizance of the factual positions and evolve strategies to make the most of the demographic dividend emerge as the winner. Source: Business World INDIA

Almost half of housing sales in January-March 2021 contributed by affordable housing segment: Report

5/3/2021 12:21:00 PM

Nearly half of the total housing demand in primary residential market across eight major cities is for two bedroom apartments costing up to Rs 45 lakh, says a study by digital real estate brokerage firm PropTiger.com. In its latest Real Insight report for January-March 2021 quarter, PropTiger research revealed that housing sales across eight major cities declined only by 5 per cent year-on-year at 66,176 units, indicating that demand is inching back to pre-COVID level. When compared with the Q1 2020, Mumbai, Pune and Bengaluru witnessed fall in sales, while other five cities -- Delhi-NCR, Kolkata, Chennai, Hyderabad and Ahmedabad--- saw growth in demand. While analysing the sales numbers of these eight cities, it was found out that around 45 per cent of sales in January-March 2021 were contributed by affordable housing segment --- apartments priced below Rs 45 lakh. Around 26 per cent of the sales were in Rs 45-75 lakh price bracket, 10 per cent in Rs 75.lakh to Rs 1 crore and 19 per cent above Rs 1 crore ticket size, the report said. As much as 44 per cent of the total demand was for units with 2 BHK configuration. In line with expectations, the share of ready-to-move-in flats in total sales increased compared to preceding quarter. "Affordable housing segment has been a top performer since the last few years. The government is providing tax incentives and interest subsidy to boost demand in this segment and achieve its target of Housing for All," said Mani Rangarajan, Group COO, Housing.com, Makaan.com and PropTiger.com On the overall market scenario since the outbreak of COVID pandemic last year, he said: "After a huge setback during the April-June quarter of 2020, India's residential property market has been recovering month-on-month on pent up demand, festival sales and rising importance of having home ownership." Housing sales in January-March this year almost reached to pre-COVID level driven mainly by low interest on home loans and stamp duty cut by the Maharashtra government, he said. However, Rangarajan feels that the recent outbreak of second wave of COVID-19 and semi-lockdown in many states may put a brake on the revival of the housing demand seen during the last nine months. "Though It is too early to assess the impact, we need to keep in mind that real estate industry is more prepared this time to handle the situation. The sector has taken a giant leap in adoption of digital tools for marketing and sales during the last one year," he observed. On the supply side, PropTiger research showed that new supply rose by 49 per cent year-on-year to 53,037 units across these eight cities during the first quarter of this calendar year. In line with demand trends, new supply continues to be concentrated in less than Rs 45 lakh category, with 45 percent share from the overall pie. The mid-segment (Rs 45–75 lakh price bracket) recorded a share of 27 percent of the total supply in the first quarter. More than Rs 75 lakh price bracket accounted for 28 percent of the total supply. "Weighted average prices for new launched projects in a majority of India’s top cities remained muted in the past few quarters, with prices appreciating marginally in the range of 1–3 percent annually," the report said. Hyderabad and Ahmedabad witnessed 5 per cent growth in January-March this year compared with the year-ago period. Source: Money Control INDIA

India's first 3D printed house inaugurated at IIT-Madras

5/1/2021 10:57:00 AM

CHENNAI: India’s first 3D printed house built by IIT-Madras startup Tvasta was inaugurated on the campus Tuesday The house, which has a built-up area of 600 square feet, has a bedroom, a hall and a kitchen. The entire house was designed using software and printed using concrete 3D printing technology. Using this technology, a new house can be built in five days against four or five months in conventional mode. Further, the cost of the house is reduced by around 30% and life of the building can exceed 50 years. Concrete 3D printing is an automated manufacturing method for constructing three dimensional real-life structures (at all realizable scales). The technique utilizes a concrete 3D printer which accepts a computerized three- dimensional design file from the user and fabricates a 3D structure in a layer-by-layer manner by extruding a specialized type of concrete specifically designed for the purpose. While inaugurating the first 3D printed house virtually on Tuesday, finance minister Nirmala Sitharaman said, "India definitely needs such solutions which do not require much time. Conventional housing requires timing, material, logistics, transporting of material, and so on. But if this technology can produce houses in different locales at five days per house, it would not be a big challenge to build 100 million houses by 2022." IIT-Madras director Bhaskar Ramamurthi said, "The machine for constructing this house can be rented, like borewells rented by farmers. It provides for large-scale, high quality and also, price assurance for the customers.” “This technology can enable deep personalization of construction for the individual. It also can ensure that affordable, good quality housing is available to all Indians with a technology that is built in India," said Adithya VS, Co-founder and chief executive officer, Tvasta. Besides providing housing, it can also solve problems like sanitation, disaster-time rehabilitation, and projects to construct military bunkers, among others. The house was developed in collaboration with Habitat for Humanity’s Terwilliger Centre for Innovation in Shelter. Source: ET Realty India

Indian real estate sector attracts $922 m investments in Q1

4/30/2021 12:29:00 PM

With 42% share, Hyderabad tops Indian cities Institutional investments continued the momentum during the first-quarter (Q1) of calendar 2021, registering a 21 per cent growth in volumes at $922 million ($763 million), indicating sustained investor interest in the domestic real estate market. According to JLL’s Capital Markets Update for Q1 2021, among the cities Hyderabad saw investments with 42 per cent share, followed by Mumbai at 21 per cent. Hyderabad witnessed the highest capital flows of $384 million ($100 million), Mumbai $193 million ($54 million), Delhi NCR $107 million ($171 million), Pune $7 million ($8 million), Bengaluru - - ($385 million) and Chennai ($35 million). “Investments during the quarter were driven by more activity from funds and closed development stage deals and were further supported by external macroeconomic factors. However, the pandemic surge during the second-half of March 2021 is expected to delay the investment pipeline in the second quarter,” revealed JLL’s Capital Markets Update. “The remarkable resilience of the office market and confidence in its long-term growth led investors to chase quality assets available at the core and development stages. We also see the maturing listed REIT market providing an alternative to other asset classes, which lacked income stability,” Samantak Das, Chief Economist and Head of Research & REIS (India), JLL, said. Commercial office space Commercial office assets dominated deals with $864 million transacted, translating into 94 per cent of the total value in the first quarter. Office space developers liquidated their portfolios to deleverage or raise growth capital for the next phase of expansion. In addition, investors are actively scouting for warehousing assets at present and deals are likely to be concluded in the coming quarters. The housing sector, meanwhile, continues to experience an infusion of last- mile funding for project completion. Source: Business Line India

Haryana RERA issues regulations to sell flats only on carpet area

4/28/2021 4:14:00 PM

The Haryana Real Estate Regulatory Authority on Tuesday said it has issued regulations for the sale of an apartment or a building in any real estate project on carpet area basis regulations only.The Gurugram-based regulator warned that penal proceedings would be initiated against the promoter or the real estate agent violating the instructions. The sale on super area basis shall be treated as fraudulent and an unfair trade practice by the promoter, said a statement quoting Chairman K.K. Khandelwal. The conveyance deed shall be executed only on carpet area basis. The sale of apartment or building is only on the carpet area basis. So the sale of super area or any other basis is illegal, it said. Khandelwal said the "definition of super area as provided in various builder-buyer agreements is vague and there are wide variations in the definitions". "The property in real estate projects is not properly described by way of mentioning super area without specifically giving details and breakup of the components included in the super area. The practice of sale of the real estate on super area basis is misleading, ambiguous, opaque, and gives rise to confusion and complexities and at times result into avoidable litigation," he said. These regulations have been made by the authority to ensure sale of plot, apartment, or building, as the case may be, or sale of real estate project, in an efficient and transparent manner and to protect the interest of consumers in the real estate sector, he said. Noting that before Real Estate (Regulation and Development) Act of 2016 came into existence, there was lack of a legal description for the term 'carpet area', he said the Act has provided specific and concrete definition of carpet area which now has addressed the vagueness and uncertainty in this regard. Source: ET Realty Haryana

Co-working spaces flourish in Kochi during pandemic

4/27/2021 10:45:00 AM

KOCHI: Though the office space market is hit hugely by the Covid pandemic, the coworking space providers are finding an increased demand for small spaces from corporates, who are scaling down their operations either temporarily or permanently in Kochi. “We are getting nearly 25 inquiries every month from the corporates who want to move to our business centre. Corporates are finding it as an attractive solution to bring down their overheads. Also, if the economy is sluggish, they could move out of a business centre, without any liabilities,” said Monlash Business Centre chief executive Jackson Mathew. A British academic publishing house and the credit card division of one of the largest nationalized banks have decided to leave their own offices and move to Mathew’s business centre. “This trend started just after the first wave of the pandemic, sometime in September,” said Centre A Offices director Joe Francis Alapatt, who introduced the concept of a premium business centre in Kochi. Since then, a French electrical giant and a German pressure-cleaner company moved to Alapatt’s business centre on MG Road. A couple of the existing players have decided to scale up during the pandemic itself. During the third week of April, Incuspaze, a co-working space provider, added 500 seats at their Kakkanad facility, while Vistaara, a similar provider of managed office space, added 12,000 sq ft at their Cannon Shed Road facility. Vistaara CEO P G Gopakumar said that two leading brands in the country — an airline and a credit-card company — moved to his facility, ditching their rented offices. According to Mathew, the concept of business centre or coworking spaces is going to catch up further in Kochi market. “Now there are only five or six organized players in this segment and in the coming years, many might set up facilities here,” he said. When asked whether the corporates are permanently scaling down their operations in Kochi, Incuspaze business partner Sanjay Chatrath said, “The corporates are not scaling down their operations; it is just that due to the pandemic the market has become a little vulnerable. This takes a toll on their businesses, due to which they turn towards coworking spaces to seek more flexible options. We all know the short-term commitments as well as the little investments needed in terms of commercial expenses in the coworking spaces. In such times, these factors make managed offices and coworking spaces a viable solution for several businesses. They provide easy scalability, offer flexible commitments, wider reach, and good facilities even in tier-2 cities”. Source: ET Realty Kochi

Chennai’s residential sales rise by 30% in first quarter

4/26/2021 1:02:00 PM

Residential sales in the first quarter of the year in Chennai saw a 30 per cent increase when compared to same period last year, highlighting growing home-ownership sentiment amidst Covid exigencies, according to an Anarock Property Consultants (APC) report. According to Sanjay Chugh, City Head-Chennai, APC, buoyed by housing sales growth over the last two quarters (fourth quarter of 2020 and first quarter of 2021), average property prices in Chennai recorded a 1% jump in the first quarter this year, against the same period last year. This shows developers saw this period as an opportune time to increase prices, the report stated. This is backed by A Shankar, Chief Operating Officer, Strategic Consulting, Jones Lang LaSalle (JLL). He says in Chennai, the first quarter of 2021 (January, February, March) saw very good traction in home sales when compared with other cities in India. Also, Chennai witnessed an increase in new launches (of homes). Cities including Chennai, Hyderabad, Kolkata and Pune surpassed the sales volumes of the first quarter of 2020 with overall sales increasing by 17 per cent on a sequential basis. However, the intensity of Covid second wave will reduce this momentum to an extent, though with increase in vaccination, the outlook in the coming quarters is likely to be positive, says Shankar. S Sridharan, chairman, Urban Development/Affordable Housing Committee, Credai National, told Express that sales had been good in the first three months of the year. “There has been an increase in prices. It can’t be quantified. The price rise could be attributed to other factors like rise in prices of raw materials,” he said. As per ANAROCK Research, average property prices in Chennai stood at `4,990 per square feet in first quarter of 2021 against `4,930 in first quarter of 2020. The top five markets in Chennai witnessing this upward trend for average prices in the first quarter of 2021 include OMR, Guduvanchery, Padur, Porur and Madhavaram. The reason for the price rise could be that these areas had maximum housing demand and sales in the last two quarters. All these localities have properties in the affordable and mid-segment categories the two major segments driving demand. Given the good sales, developers have increased average property prices. Also, average prices in these localities have jumped between 12% to 19% over the last six years. Top 5 markets The top five markets in Chennai witnessing this upward trend for average prices in the first quarter of 2021 include OMR, Guduvanchery, Padur, Porur and Madhavaram. Source: The New Indian Express CHENNAI

Housing sales in Delhi NCR improved by 10% QoQ in January-March 2021

4/22/2021 3:59:00 PM

While residential enquiries remained stable, conversions increased QoQ amid the pent up demand, resulting in around 10 percent surge in housing sales in the quarter. Reduction in guidance values in Delhi and banks softening the home loan interest rates helped lift the home buying sentiment in Delhi NCR in Jan-Mar 2021. While residential enquiries remained stable, conversions increased QoQ amid the pent up demand, resulting in around 10 percent surge in housing sales in the quarter, according to 99acres.com. The average property prices, however, failed to register any growth, QoQ. New launches improved in the review period; while the market still needs to cover a lot of ground to reach the pre-COVID-19 momentum. Around 16 new and redeveloped projects/ phases were launched across zones, with maximum share in the affordable segment. Barring a few builders such as Godrej Developers, Express Builders and Trident Builders, many deferred their launches. Besides, developers played defensive owing to the recent surge in COVID-19 cases in the capital and the ongoing liquidity crunch. The rental market continued to be the worst-hit across zones, as many companies continued to operate with a limited workforce. Rentals also plummeted by about 15-20 percent YoY, and amid the rising COVID-19 cases, it’s unlikely to see normalcy any time soon. Unsold inventory in Delhi NCR stood at over 1.5 lakh units around March 2021-end. Around 65 percent of unsold residential stock is in Noida, followed by Gurgaon at 22 percent and Faridabad at three percent. The remaining is spread across Delhi and Ghaziabad. Speaking on the report, Maneesh Upadhyaya, Chief Business Officer, 99acres.com, said, “The first quarter of 2021 witnessed a resurgence in sales volume across metro cities, particularly in Pune and Mumbai, amid a stamp duty cut till March. In line with the recovering market sentiment, site visits and sales, pricing power returned to the sellers. Based on properties listed on 99acres, none of the eight metro cities recorded a downward revision in average listing prices of residential apartments in Jan-Mar 2021 against the previous quarter. Buyer responses also reported a 7% surge in the same period on 99acres. Owner listings posted on 99acres also went up by 20% in Jan-Mar 2021 against Oct-Dec 2020.” “The green shoots of recovery seen so far will have to stand the test of the time with a steep surge in COVID-19 cases and the resultant lockdowns in many parts of the country, impacting project construction timelines and buyer site visits. Nevertheless, measures such as reduction in stamp duty and a downward revision in circle rates could help counter- balance the impact of these adversities.” The range of property prices may vary by 10 percent depending on the age and furnishing status of the residential apartments The housing market in Noida, Greater Noida and Ghaziabad remained positive in Jan-Mar 2021. While enquiries were stable, residential sales improved QoQ amid the lower home loan interest rates, fresh housing supply and people’s continued affinity for homeownership. Greater Noida West, and Sector 150 and 43 in Noida near the commercial hub of Sector 137 remained popular for 2 BHK and 3 BHK units, respectively. Growth propellers included availability of housing units priced Rs 35-50 lakh in Greater Noida West. For Sector 150 and 43 in Noida, direct connectivity to the planned Jewar Airport and projects by popular builders are seen as demand stimulators. Residential units priced in Rs 80-85 lakh budget were most popular in the sectors. Authority-approved plots along Noida-Greater Noida Expressway and Yamuna Expressway attracted buyers; however, the latter captured higher traction amid the proposed Film City and Furniture Park. Residential plot rates along Yamuna Expressway have surged by around 10-15 percent in the last six months to Rs 18,000-25,000 per sq m. Residential enquiries in Gurgaon went south by around 15 percent QoQ in Jan-Mar 2021 due to the limited number of new home buyers in the market. Transactions, nevertheless, improved by over 10 percent amid the spillover demand from the previous quarter and developers extending flexible payment schemes. The speedy development of Dwarka Expressway, improved supply of ready homes and the presence of reputed builders, including Tata Housing, ATS Group and Mahindra Lifespaces, boosted enquiries in residential Sectors 102-115 along the stretch. Housing plots also garnered traction; but nearly 60 percent of demand in Gurgaon was recorded for resale homes priced between Rs 1 crore and Rs 1.5 crore. New Gurgaon and Golf Course Road Extension remained popular owing to the news around the Khekri Daula Toll Plaza removal, ample residential choices and proximity to Southern Peripheral Road and NH-8. The average advertised rates of residential apartments in the areas were around Rs 7,000-11,000 per sq ft. A reduction in the guidance value and cut in home loan interest rates helped lift the residential sales in Delhi in Q1 2021. Premium localities of South Delhi and North West Delhi witnessed maximum traction, with around a 7-10 percent hike in the advertised values of property amid demand outpacing supply for ready homes with new payouts and parking. High-net-worth Individuals looking for luxury homes and leading edge amenities preferred the VIP addressed of Vasant Vihar, Greater Kailash, Vasant Kunj, Pitampura, and Punjabi Bagh. Units configured as 3 BHK and priced around Rs 3-3.5 crore posted maximum demand. Source: Financial Express Delhi

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