Redevelopment of Chandni Chowk to revive its glory as a commercial real estate hotspot

10/14/2021 11:21:00 AM

The emergence of a revamped Chandni Chowk is not only catapulting opportunities for investors, but is also restoring the area’s lost glory as the country's most influential commercial hub. A 400-year-old legacy, Chandni Chowk’s glory as a witness to India’s history and rich cultural heritage is not hidden. Over the years, the heritage city, that encompasses immense commercial value, had remained entangled in overhead wires, dilapidated buildings, broken roads, cluttered walkways, and traffic snarls. Lack of organised commercial spaces had decelerated the growth of businesses and brands in a market with 5-6 lakh daily visitors. But now, the opening up of a newly-redeveloped Chandni Chowk is heralding a new chapter of commercial growth for investors in the heart of India’s capital. A thriving marketplace, Chandni Chowk in its new look is paving way for organised commercial spaces and is finally opening the doors of Asia’s largest retail and wholesale market for commercial real estate investment. Looking at the real estate market from an investment perspective, it is a perfect and rare combination of high returns and low risks for investors. As the economy is advancing from recovery to the growth phase, investors who have a deep understanding of real estate are finding commercial assets a better option to enhance their investors’ portfolios for higher revenue generation and stability. Industry reports too are confirming the heightened sentiments, and are saying that net leasing of commercial spaces has risen 32 percent year-on- year to 4.39 million sq. ft. during the April- June period this year. Advertisement Chandni Chowk is the most preferred destination for shopping and trading in apparel and accessories during weddings and festivals. A 400-year-old legacy, Chandni Chowk’s glory as a witness to India’s history and rich cultural heritage is not hidden. Over the years, the heritage city, that encompasses immense commercial value, had remained entangled in overhead wires, dilapidated buildings, broken roads, cluttered walkways, and traffic snarls. Lack of organised commercial spaces had decelerated the growth of businesses and brands in a market with 5-6 lakh daily visitors. But now, the opening up of a newly-redeveloped Chandni Chowk is heralding a new chapter of commercial growth for investors in the heart of India’s capital. A thriving marketplace, Chandni Chowk in its new look is paving way for organised commercial spaces and is finally opening the doors of Asia’s largest retail and wholesale market for commercial real estate investment. Looking at the real estate market from an investment perspective, it is a perfect and rare combination of high returns and low risks for investors. As the economy is advancing from recovery to the growth phase, investors who have a deep understanding of real estate are finding commercial assets a better option to enhance their investors’ portfolios for higher revenue generation and stability. Industry reports too are confirming the heightened sentiments, and are saying that net leasing of commercial spaces has risen 32 percent year-on- year to 4.39 million sq. ft. during the April- June period this year. The pre-leasing commitments are still intact, and the leasing volumes in Delhi-NCR have increased from 1.9 million sq ft in Q4 2020 to 2 million sq ft in Q1 2021. According to rating agency ICRA, growth in the real estate sector will continue to expand over time. Delhi which has a faithful footfall of customers in the market can put investors in profitable positions looking at maximum ROI. Owing to such promising results, commercial real estate has also become stronger recently. Chandni Chowk is the most preferred destination for shopping and trading in apparel and accessories during weddings and festivals. Besides, it is a huge market for gold and silver, lighting, electric equipment, spices, dry fruits, books, etc. And not to forget the food! Tourists also flock to Delhi for a shopping experience and to feel the old-world charm. The region already enjoys the presence of approx. 50k business units and smooth connectivity aided by Delhi Metro and railway station are further uplifting its commercial value. The Chandni Chowk market is fast getting converted into an organised commercial hotspot. The coming up of next-gen retail/wholesale spaces and shopping malls are expected to cater to 40 lakh serious shoppers monthly in the coming years. Sustainability is another element that is enhancing the commercial value of Chandni Chowk. The increased awareness on maintaining the aesthetics and grandeur of this heritage city has redesigned the approach towards sustainable commercial development. Addressing the traffic woes, rising air pollution levels, and lack of parking facilities, the multilevel parking facility will soon become operational here. This will not only help to make the area strictly a no-vehicle zone but will also hold 2100 + cars to reduce congestion. A next-gen shopping destination is in the offing in Chandni Chowk that has given an opportunity for businesses to serve a loyal shoppers base that has been regularly visiting the area for wedding and jewellery shopping, food, leisure activities, tourism, etc. The destination guarantees high rental yields for investors in commercial properties which will grow stronger over the next quarters. Based on both present and future rental analysis, the price of the property will show greater appreciation and the prospects of a good return and capital preservation and appreciation are also high. Commercial real estate will continue to be in a dominant position as a most sought-after investment option. Amid this, the emergence of a revamped Chandni Chowk is not only catapulting opportunities for investors here, but is also restoring the area’s lost glory as the country’s most influential commercial hub. Source: Financial Express INDIA

Delhi-Mumbai Expressway, elevated road expected to turn Sohna into next major realty hub

10/13/2021 1:14:00 PM

Completion of major road infrastructure projects is set to turn Sohna into the next big real estate hub of the National Capital Region (NCR), as evidenced by takers for the micro market despite an overall slowdown due to the Covid-19 pandemic, according to experts and realtors. With the Haryana portion of the Delhi-Mumbai Expressway and the Sohna elevated road likely to be finished by next year, experts believe that the real estate sector will get a major boost as these infrastructure will improve accessibility, create jobs and allow people to move about with ease. Developers who had invested in Sohna around five to six years ago said these two road projects will boost housing demand as it would take residents only 15 minutes to reach Rajiv Chowk in Gurugram. Vinod Behl, a real estate expert, said Sohna is centrally located in the NCR, and the growth of any real estate destination largely depends on that area’s connectivity, physical and social infrastructure, established residential and commercial developments in the neighbourhood and its proximity to corporate and industrial hubs, the major centres of employment. These key drivers significantly influence the price of a property and its future appreciation. In that respect, Sohna scores quite high as a micro market of Gurugram, he said. “The area is contiguous to south Delhi and Gurugram, besides providing access to Palwal, Faridabad and Alwar. He said connectivity to the Jewar airport in Uttar Pradesh, when it becomes operational, will enhance the area’s potential as a realty hub,” said Behl. As per the details shared by the Department of Town and Country Planning (DTCP), there are 10 affordable group housing projects, 15 projects under the Deen Dayal Awas Yojana, three commercial projects, and 19 group-housing projects in Sohna, besides six to seven commercial projects. Around 800 acres have been licensed in Sohna since 2012, with maximum licences issued in 2012, 2013, 2014 and 2019. Sohna is spread across an area of 27 square kilometres and is divided into 38 sectors for urban development by the government of Haryana. Lower plot costs, in comparison to Gurugram, is one of the reasons for developers taking up projects there over the past seven years. According to Santosh Kumar, vice-chairman of Anarock, a real estate consultancy, Sohna has witnessed significant real estate activity since 2013 and supplied around 30,000 housing units till the third quarter of 2021. “Popularly known as south Gurugram, Sohna emerged as a favourable affordable destination owing to its proximity to various business centres and industrial clusters,” he said. Data made available by Anarock reveals that the maximum real estate activities in Sohna took place in 2014, 2015 and 2017, when 12,000, 6,000 and 4,000 housing units were launched, respectively. The launch of new projects has been muted over the past four years, largely due to unfavourable market conditions. As far budget segmentation is concerned, Kumar said that 55% of the projects are in the mid-segment ( ₹40 lakh to ₹80 lakh), 26% are in the affordable segment (below ₹40 lakh) and 16% in the premium segment ( ₹80 lakh to ₹1.5 crore). The numbers also suggest that of the 29,270 units launched, 30% have been completed while 46% will be ready by the end of next year. The average property price in Sohna is around ₹4,100 per square feet (sqft), a slight increase from ₹3,798 per sqft in 2015. Mubeen Khan, a city-based real estate consultant, said that while properties in Sohna were available for ₹3,500-5,000 per sqft, the area was more focussed mid-segment housing. “In comparison, Gurugram is more about premium housing, with average price of a flat being more than ₹75 lakh,” Khan said. The developers say better connectivity with Gurugram, Delhi and other parts of the country will help this micro-market grow faster. “By 2031, around 640,000 people are going to reside in south Gurugram. With the increase in population and led by multiple government initiatives, Sohna is expected to witness heightened demand for residential spaces in the time to come. Sohna is aligned with the Delhi-Mumbai Expressway, Palwal-Sonipat Orbital Rail Corridor, linked to KMP [Kundli-Manesar-Palwal] and new elevated road to Gurugram will boost housing in the city,” Pradeep Agarwal, managing director of Signature Developers, which has a major presence in the town, said. According to Behl, what makes Sohna attractive for both end-users and investors is the lower entry point, with good scope for price appreciation that has seen risen significantly over the past seven years. Improved connectivity Developers and experts were particularly enthused after Union transport minister Nitin Gadkari visited Sohna on September 5 and announced that work on the Haryana portion of the Delhi-Mumbai Expressway and Sohna elevated road will be completed by mid-2022, even as officials of the National Highways Authority of India (NHAI) clarified that the Sohna elevated road would be completed by June 2022. The stakeholders admitted that while the past three to four years witnessed a slowdown across the country, the Sohna micro market and projects on Sohna Road remained attractive due to affordability and good prospects. “Last year, it was Sohna and New Gurugram micro markets which had emerged on the top as far as supply and price of properties is concerned. Once the elevated road is completed, home buyers in Gurugram will have great options to buy affordable houses, plots and also premium housing in this area,” Sanjiv Thakur, a real estate consultant, said. Although developers admitted that the launch of new projects has been slow over the past two years due to a weak market caused by the Covid-19 pandemic and lockdowns, they are optimistic that the two new road projects will lead to a turnaround and greatly contribute to Sohna’s growth. “Owing to its proximity to different business centres and industrial clusters, it promises good connectivity and planned infrastructure upgrades. The proposed link between the new Jewar airport and the Delhi-Mumbai Expressway is the newest and most crucial connectivity factor, boosting real estate on Sohna Road,” Amarjit Bakshi, the chairman and managing director (CMD) of Central Park, said. Market trend According to studies by real estate consultancies, homebuyers’ preferences are changing, as many as preferring to reside in gated communities on the outskirts of the cities. A report released by Anarock last year stated that almost 57% of home launches in NCR in 2020 took place in areas on the outskirts of Gurugram, such as Sohna and Sohna Road, besides areas under the Yamuna Expressway in Uttar Pradesh’s Gautam Budh Nagar. “Sohna, Sohna Road and Dwarka Expressway are some of the most preferred areas among the buyers. Previously, most of the sales in the periphery were made by investors or buyers planning to relocate in future. However, they are now willing to accept the distance between their homes and their workplaces due to boost in infrastructure and connectivity,” an excerpt from Anarock’s report stated. Echoing this viewpoint, Ashish Tandon, president, sales and marketing, SS Group, said that these two expressways will enhance connectivity and boost demand for real estate. “The improved connectivity and decongestion will push up the prices of residential properties, generate employment opportunities and usher in a socio-economic transformation of the region,” he said. Basic infrastructure While most of the stakeholders are bullish about Sohna’s emergence as a housing hub, there are others also who suggest caution as the area is still lacking in physical, social and recreational infrastructure. “Roads are good but we need much more to survive and thrive in a city. There is need for schools, colleges, malls, hospitals, and similar recreational spaces. It will take a long time for this area to emerge as a subcity of Gurugram,” Ramesh Menon, the chief executive officer of Certes Realty, said. He said that the supply of housing in Delhi is likely to increase by next year, and this will also impact the growth of peripheral areas. “The private players and Haryana government will have to do lot of work to boost infra in Sohna to ensure its transformation into a city,” Menon said. Officials of DTCP, however, said that work on setting up the infrastructure is being taken up on priority. “The focus is to build required infrastructure in proportion to population growth. We had envisaged that Sohna will develop as a key micro market and this is happening. We will work with all stakeholders to ensure that this town grows into a city,” RS Bhath, district town planner (enforcement), said. Bhath said that large-scale exercises are also being taken to prevent the illegal development of colonies and farmhouses in and around Sohna. “We are going to ensure that sanctity of Sohna master plan is maintained,” he said. Source: Hindustan Times INDIA

Indian real estate sees $1.8 billion PE funding in last 6 months

10/12/2021 12:01:00 PM

Private equity firms pumped about $1.8 billion into the real estate sector in the first half of the FY2022. The office segment had a 33 per cent share of the PE funding at $591 million, according to a report by Anarock titled Capital’s Flux Market Monitor for Capital Flows in Indian Real Estate. Private equity investment in Indian realty climbed 27 percent to $1.79 billion in the first six months of the current fiscal mainly driven by domestic funds, it said. The share of foreign funds, however, reduced 19 percent during the six months compared to the previous corresponding period. Investments by domestic funds jumped from less than $10 million to $650 million during the corresponding first halves, reflecting their confidence The industrial and logistics segment saw significant investments of approximately $537 million in first half of FY22, comprising a 30 percent overall share of the PE funding, the report said. The residential sector saw investments to the tune of $394 million or, approximately 22 percent, of the total PE funds. Data centres, land and mixed-use developments attracted the remaining 15 percent of the overall PE inflows, comprising 5 percent each, the report said. “The average ticket size for the PE deals in the current period declined by 32 percent – from $114 million in H1 FY21 to $78 million in H1 FY22,” said Shobhit Agarwal, MD and CEO – ANAROCK Capital. Investors this time preferred single-city deals in contrast to multi-city deals earlier. The top 10 deals in the first half contributed nearly 81 percent of the total PE investments in the country, the report said. The share of multi-city deals reduced from 77 percent to 42 percent in H1 FY 2022. In comparison with the first half of 2020-21, structured debt and equity recorded considerable growth in the first half of this year at 25 percent and 28 percent . Structured debt went primarily towards project-level assets, the report said. Going forward, demand for flexi offices is gaining momentum. They are expected to attract more PE investments over the next 1-2 years. Operators are aggressively looking at expansion of data centres across major locations in the country, the report said. Source: Money Control INDIA

RBI’s interest rate-setting panel starts deliberating next monetary policy

10/10/2021 1:02:00 PM

Experts are of the view that the central bank will maintain the status quo on policy rates for the eighth time in a row. Reserve Bank’s rate-setting panel started its three-day deliberations on the next bi-monthly monetary policy on Wednesday amid rising global commodity prices and the need to contain inflation at home. The decision of the six- member Monetary Policy Committee (MPC) would be announced on Friday by RBI Governor Shaktikanta Das on Friday. Experts are of the view that the central bank will maintain the status quo on policy rates for the eighth time in a row. The policy repo rate or the short-term lending rate is currently at 4 per cent, and the reverse repo rate is 3.35 per cent. Ranen Banerjee, leader (Public Finance and Economics) at PwC India opined that the latest statements by the US Fed Chair on possible actions if inflation does not wear off by H1 of 2022 is a clear commencement of chatter around rate action after the clarity on taper timing. This will have a bearing on the stance of the MPC as it will also be worried on the inflation front given the oil, natural gas and coal prices showing no signs of abetting and rather continuing to have an upward bias,” he said. However, it is very unlikely that there will be any rate action given the inflation is within the tolerance band and the 10-year yields keep hovering slightly above 6 per cent, Banerjee said. M Govinda Rao, Chief Economic Advisor of Brickwork Ratings, said with the consumer price inflation easing from 5.59 per cent in July to 5.3 per cent in August, improved supply situation on the back of the pandemic-led restrictions being relaxed, and capacity utilisation still in the recovery mode, there is no immediate pressure on the MPC to either alter interest rates or change the accommodative stance. When asked for his opinion, Dhruv Agarwala, Group CEO,, and, said even though most growth indicators currently show positive signals, the RBI is expected to maintain a status quo on key policy rates to maintain financial stability and boost demand during the ongoing festive season. He also said that home loans are currently available at interest as low as 6.50 per cent annual interest. “The continuation of this historically low interest rate regime for the entire festive season is a must for India’s real estate sector, the second biggest employment generating sector in India, to regain its strength,” Agarwal added. The RBI has projected the CPI inflation at 5.7 per cent during 2021-22 — 5.9 per cent in the second quarter, 5.3 per cent in third, and 5.8 per cent in the fourth quarter of the fiscal, with risks broadly balanced. CPI inflation for the first quarter of 2022-23 is projected at 5.1 per cent. The CPI inflation was at 5.3 per cent in August. The inflation data for September is scheduled to be released on October 12. Suman Chowdhury, Chief Analytical Officer, Acuit Ratings and Research said: In line with market expectations, RBI will continue with its accommodative monetary policy in October 2021 although it is likely that it may take some further steps to recalibrate the excess liquidity in the monetary system over the next 1-2 quarter. He further said while the high frequency indicators for August and September reveal that economic activity is reaching its pre-pandemic levels and the risks of another wave of the COVID are gradually on a decline, the recovery momentum is still uneven and not well anchored across all sectors of the economy. Sharing his pre-monetary policy view, Sandeep Bagla, CEO, TRUST Mutual Fund said the next two CPI inflation readings are likely to be below 5 per cent. “Credit offtake is yet to pick up in a meaningful way. While there is a lot of speculation that time is ripe for RBI to signal withdrawal of accommodation and change in stance, it is quite likely that the MPC chooses for status quo policy with no change in repo rates or stance,” he said. If the RBI maintains status quo in policy rates on Friday, it would be the eight consecutive time since the rate remains unchanged. The central bank had last revised the policy rate on May 22, 2020, in an off-policy cycle to perk up demand by cutting interest rate to a historic low. The RBI has been asked by the central government to ensure that the retail inflation based on the Consumer Price Index remains at 4 per cent with a margin of 2 per cent on either side. The Reserve Bank had kept the key interest rate unchanged in its after monetary policy review in August citing inflationary concerns. Source: Financial Express INDIA

Private equity inflow in real estate up 27% in April-September at $1.79 billion

10/8/2021 1:55:00 PM

Inflows were at USD 1.41 billion in the year-ago period. Private equity (PE) investment in Indian real estate rose 27 per cent to USD 1.79 billion in the first six months of the current fiscal mainly driven by domestic funds, according to property consultant Anarock. PE inflows stood at USD 1.41 billion in the year-ago period. According to the data, the office segment attracted nearly 33 per cent of total PE inflows at USD 591 million. The industrial and logistics sector saw significant investments of about USD 537 million in the first half of FY'22, comprising a 30 per cent overall share. The residential sector saw investments to the tune of USD 394 million, 22 per cent of the total PE funds. Data centres, land and mixed-use developments attracted the remaining 15 per cent of the overall PE inflows, comprising 5 per cent each. "Displaying continued confidence in the Indian real estate sector, private equity funds pumped about USD 1,790 million into the sector in the first half of the FY 2022," Anarock Capital said in its 'Flux Market Monitor for Capital Flows in Indian Real Estate'. This is a 27 per cent growth over the corresponding FY 2021, when inflows were approximately USD 1,410 million, it added. "The average ticket size for the PE deals in the current period declined by 32 per cent – from USD 114 million in H1 of FY21 to USD 78 million in H1 of FY '22," said Shobhit Agarwal, MD & CEO – Anarock Capital. "Notably, investors this time preferred single city deals in contrast to multi-city deals. As seen, the share of multi-city deals reduced from 77 per cent to 42 per cent in H1 of FY'22. Further, the top 10 deals in H1 FY22 contributed an approx 81 per cent of the total PE investments in the country," Agarwal said. In comparison with H1 FY21, structured debt and equity witnessed considerable growth in H1 FY22, at 25 per cent and 28 per cent, respectively. Structured debt went primarily towards project-level assets. While overall PE inflows in Indian real estate increased in H1 FY2022, the share of foreign funds reduced. "Investments by domestic funds jumped from less than USD 10 million in H1,FY21 to USD 650 million in H1, FY22, a reflection of the improving situation in the country resulting in higher confidence by domestic funds," Anarock said. Foreign investors continued to remain major contributors with about 63 per cent share of the total inflows of USD 1,790 million. However, in the same period of FY2021, they contributed a 99 per cent share. Source: Business Line INDIA

51% of urban Indians say festival season is a good time to invest in property

10/7/2021 12:28:00 PM

Around 51 percent of urban Indians think that the festival season, which typically runs from October to November, is a good time to invest in real estate, a survey has found, as developers ready offers to lure consumers. About 35 percent of urban Indians aged between 25 and 44 plan to invest in real estate over the next six months. YouGov’s Diwali Spending Index, an indicator of spending propensity, also reveals a recovering appetite to spend during the festival season marked by Diwali. These findings should offer some comfort, as Indians, hit hard by coronavirus and job losses as well as salary cuts that followed, have been watchful. As the virus fears ebb, vaccination picks up and the economy opens, businesses are hoping that the festival season will boost demand. For many, Diwali is a time for big-ticket purchases like homes, vehicles and jewellery. Data shows that almost 51 percent of urban Indians agree that this is a good time to invest in real estate. Only 12 percent disagree, while 27 percent are undecided. Men are most likely than women to say they will invest in property, the survey found. Residents of Tier I (39 percent) and II (38 percent) are more enthusiastic about buying property than those in Tier-3 cities (30 percent). The online survey, which had 2005 respondents from across the country, was conducted between August 3 and 6 by YouGov, a global market research company that began operations in 2017. While most people—72 percent—looking to invest in real estate are planning to buy a residential property, 25 percent prefer commercial properties. As many as 38 percent of Indians will finance property through home loans. Using savings is the next best option at 30 percent, while 21 percent will finance their dream by selling another property. Availability of loans at a record low-interest rate is encouraging people to explore real estate this season. As many as 16 percent of the respondents said they would avail a home loan this season as rates are low. Nearly 19 percent wish to buy a property this year as they could not do so earlier due to the pandemic. Other reasons include better prices (17 percent), intention to save and buy a property in 2021 (17 percent) and availability of funds due to recent financial gains (15 percent). Affordable properties under ₹50 lakh are the most preferred, with 44 percent of people eyeing this segment. As many as 41 percent respondents were willing to go higher to Rs 50 lakh-Rs 1 crore segment. People living in North India (44 percent) and Tier-I cities (48 percent) are most likely to invest within this range. Only 9 percent of property-seekers are willing to go above ₹ 1 crore. Family and friends continue to play a big role, as 48 percent of people relied on information provided by them to buy a property but technology is catching up as well. While 45 percent of the respondents got their information from the websites of real estate companies, 42 percent talked to local brokers or property agents. Source: Money Control INDIA

Developers intensify project launches as demand for housing grows in festive season

10/6/2021 11:00:00 AM

Driven by growing homeownership sentiment, record-low home loan rates, lower Covid-19 cases in Q3, stable employment scenario, and robust hiring in the IT/ITeS and financial sectors, both housing sales and new launches have increased significantly in recent months. According to a recent report by ANAROCK, for instance, while the housing sales across the top 7 cities surged by 113% YoY in the third quarter of this year – from close to 29,520 units in Q3 2020 to 62,800 units in Q3 2021, new launches in the top 7 cities increased by 98% – from 32,530 units in Q3 2020 to 64,560 units in Q3 2021. As per JLL’s Residential Market Update – Q3 2021, released today (October 4), residential sales across the top 7 cities rose by 47% during January-September 2021 as against the same period last year. On a sequential basis, sales improved by 65% during Q3 2021, to 32,358 units from 19,635 units in Q2 2021, and 14,415 units in Q3 2020. Similar was the case with new launches as the top 7 cities recorded new launches of 32,863 units in Q3 2021, a rise of 21% QoQ. According to JLL, as the economy began to improve and with the festive season around the corner, developers continued to launch residential projects across the country. The markets of Kolkata, Delhi NCR and Pune witnessed a substantial increase in launch activities during Q3 2021, when compared to the same period last year as well as from the previous quarter. Most of the new launches in the markets of Bengaluru, Mumbai and Pune were in the affordable and mid segments. Hyderabad continued to dominate new launches and accounted for about 29% of launches during Q3 2021. Pune and Mumbai, which contributed 23% and 19%, respectively, to the overall new launches. Although developers still remain cautious while launching new projects and are aligning their launch strategies in sync with the actual market demand, new launches are likely to intensify in view of the growing housing demand and the upcoming festive season. For instance, CASAGRAND, one of the leading developers of South India, has just announced the launch of its new project — CASAGRAND Orlena — at Hennur Junction in Bangalore. Nestled amidst 4 acres of serenity, the Casagrand Orlena community consists of 296 apartments boasting a unique footprint by offering 80+ luxurious amenities. Offering a balanced mix of 2 & 3 BHK premium apartments ranging from 1110 sq ft to 1575 sq ft, CASAGRAND Orlena aims to provide home buyers an unparalleled lifestyle at an affordable price point. Speaking at the launch, Sathish CG, Director, CASAGRAND, Bangalore Zone, said, “I strongly believe this project will materialize many homebuyers’ dream of having a home in the city at an affordable price. This project caters to the need of everyone; it has dedicated facilities for children, senior citizen, young professionals etc. Keeping the lifestyle of current homebuyers in mind, we have designed many unique amenities and ample of open green space. Despite being situated at a prime location, the project has been priced very attractively.” MRG World, an affordable housing major in Delhi NCR, has recently launched its fourth project ‘The Skyline’ at Dwarka Expressway, Sector 106, entailing an investment of Rs 350 crore. Spread over 10 acres, the project will be developed in single phase over a period of four years. Signature Global has also launched two projects in Gurugram. Signature Global City 81 and Signature Global City 92 are the 6th and the 7th residential projects under DDJAY by the company in Sector 81 and Sector 92 of Gurugram, respectively. Spread over an area of 11.97 acres, Signature Global City 81 will offer a Green Luxury Life within a plotted residential complex with Premium Independent Floors. Similarly, Signature Global City 92 is a 19.48-acre project, out of which 10.3 acres will be developed in the first phase of development. Both the projects offer 4 premium independent floors with parking in stilt and a dedicated lift on each plot, and will be embraced with dedicated retail hubs for the residents. Rajasthan-based Trehan Group has recently entered the market of Gurugram with the launch of 320 high-end luxury independent floors priced in the range of Rs 1.27 crore to Rs 4 crore. The group will invest about Rs 250 crore to develop these 320 independent floors at multiple locations in the heart of millennium city Gurugram. The independent floors will be built on plot sizes of 217 sq yards to 676 sq yards, and are expected to be delivered in 15 months. “During the Covid-19 pandemic, we have witnessed a decent surge in demand for plotted development and independent floors. To cater to this rise in demand, we are launching these independent floors across various sectors in Gurugram. All the luxury units will be semi-furnished,” said Harsh Trehan, Chairman, Trehan Group. Gurugram-based Antriksh India Group has also recently launched ‘Central Avenue’ – a luxurious premium development nestled in a lush green environment – in Sector-33 Gurugram. The project offers 3+Servent / 3+Study / 4+Study apartments and deluxe penthouses. The basic sell price of this project is Rs 9,575 per sq ft. “The Central Avenue project has been detailed out in order to illustrate a vibrant picture of a truly evolved life. The very idea of the project is about creating space for moments and making them wonderful. Living spaces at Central Avenue transcend beyond the ordinary to create an aura of the fine balance between finesse and practicality,” said Deepanshu Rao, Managing Director, Antriksh India Group, adding, “Antriksh India Group has successfully delivered more than 50 projects in Delhi-NCR. In addition to this, we assure timely delivery and post-sales maintenance.” Source: Financial Express INDIA

Real estate trends show strong resilience in the new normal

10/5/2021 12:16:00 PM

India’s real estate sector has registered a strong resilience against the pandemic which hit the economy last year. Despite setbacks, the sector realigned very quickly to the new normal with digital interventions and was back in recovery mode soon. The pandemic’s second wave has altered the atmosphere for real estate buyers and investors in the country, and there is now a greater demand for own homes keeping in mind the factors of health, hygiene and safety. The macroeconomic recovery has also shown a significant pick-up inducing a positive trend in the last few months in the real estate sector. The appetite for residential property in the mid-income segment is growing, with people looking to buy homes sooner than they had anticipated given the current scenario with the pandemic. Developers have analysed the trend of a healthy lifestyle and have shifted their interests towards developing projects that fulfil the changing needs of new-age buyers in a post-Covid world. In the context of this change in mood, it is important to grasp the new trends in the real estate sector. Real estate now a buyer’s market As the pandemic continues to abate, noticeable changes in consumer behaviour and market sentiments are shaping up new trends in the segment. The realty sector has now transformed into a buyer’s market, and today, with an evolved sense of buying preferences, consumers are focusing on bespoke offerings to make the best investment decisions. Buyers also have the options to see and research projects digitally before purchase. Customer-centricity is defining the Indian real estate sector and it is important to recognize the shift in their outlook towards property purchase. Preference for larger, healthy homes The pandemic has given homeowners the time to reflect on the value of the space that they call their home. Having spent a good amount of time indoors over the past one and a half years, homebuyers now realise the value of having multifunctional homes. Demand for slightly larger homes with added spaces like a work station, reading nook or activity space has certainly increased. With increased time being spent at home, homebuyers are identifying projects with well-designed apartments that give them that extra breathing room. Access to wide infrastructure Locations that comprise a strong mix of physical and social infrastructure and are relatively better priced in comparison to expensive locations, have witnessed a higher demand recently. Home buyers are preferring properties with good connectivity in terms of access to transport hubs like bus and metro stations and cab services to prominent localities and the central business district, along with access to hospitals, educational institutions, supermarkets, parks, entertainment spots, and recreational centres. Today most homebuyers are looking to upgrade their lifestyle and are willing to stretch their budget a little more to ensure that they find homes that provide comfort, space and convenience too. Ready to move in homes gain further traction Ready-to-move-in spaces will remain the top priority of today’s discerning customers who do not want to wait endlessly for their properties and expect quick possessions. There’s more demand for ready-to-move-in projects or the ones which are closer to completion over under- construction properties. Given the pandemic and the need to be safe, buyers are eager to buy a home in quick time. There is also increasing interest in villas, as this serves the purpose of a standalone home but at the same time is within a community with a host of amenities. Lower interest rates boost demand As the vaccination campaign continues to strengthen and the central bank maintains its supportive position pegging interest rates at historic lows, residential demand is set to revive strongly in the coming quarters with buyers going in for loans at lower interest rates. The RBI’s firm assurance in maintaining the status quo has boosted demand in the market. The segment has remained the safest investment option and conducive government policies with guaranteed higher and secured returns are attracting investors to keep market sentiment buoyed. Home ownership sentiment is also induced by decision drivers such as flexible payment plans offered by developers. Branded developers gaining strength The sector is most likely to see more people preferring properties developed by prominent brands than unorganized and smaller players. Buyers are reviewing the history of the brands, their performance, the standards that they maintain, quality they offer and schedule of delivery. The preference is towards financially stable developers with a good track record, execution capabilities and high-quality projects that are gaining substantial market share. The pandemic has transformed the market and 2021 is a turning point for the Indian real estate sector. The segment now understands the ‘new normal’ and is better prepared than last year. Imagination, innovation and digital transformation will drive the sector, and with new trends shaping up, the realty sector will enter a new growth phase soon. The real estate sector continues to prove, time and again, that the investment made on this asset will yield robust returns. As the pandemic subsides, the segment will be the key pillar to strengthen India’s economic growth. Source: Times of India INDIA

Over 80% of prospective homebuyers likely to buy property in 3 months, says survey

9/24/2021 11:35:00 AM

Majority of prospective homebuyers are looking to purchase a property in the next three months with self-use as a primary reason while investor interest has started to increase in certain markets, shows a JLL-Roofand Floor survey. Around 80% of over 2,500 surveyed prospective homebuyers across the top six cities of Mumbai MMR, Delhi NCR, Bengaluru, Hyderabad, Chennai, and Pune have indicated their interest in buying a house in the next one quarter. According to the survey, nearly 80% of the prospective homebuyers indicated a preference for properties in the sub-Rs 75 lakh category. This hasn’t changed much over the course of the pandemic, while the size of the apartment has assumed greater significance and there is a clear preference for larger, more spacious homes. The buyers are today showing a greater willingness to relocate to suburban or peripheral markets to get larger homes while keeping the budget intact. “With more than 80% of the prospective homebuyers expected to make a purchase in the next three months, the residential market is expected to ge back on the recovery path and 2021 is likely to end on an optimistic note. Developers are launching optimal sized houses to capture the changing preferences of consumers in the post-COVID era. While some of these changes will be fleeting in nature, others will be permanent. In the residential real estate sector, there is still a great deal of uncertainty around ‘what permanent changes we are likely to witness,” said Siva Krishnan, Managing Director, Residential Services, India, JLL. Cities like Bengaluru, Chennai, Hyderabad as well as the Delhi NCR market are the prominent cities where the demand for 3BHK apartments has increased. Layouts of apartments, presence of balconies and an additional small room for work and online classes are in focus. This trend is more prominent in the cities of Mumbai and Pune where 1BHK and 2BHK are usually the most sought-after configurations. by pent-up demand and the presence of ‘affordable synergy’ in the market. However, sustained recovery in the next few quarters and the resilience shown during the second Covid19 wave are indicative of a fundamental shift in the sentiment towards home ownership. Residential real estate is an enabler of our existence and contrary to popular belief, recovery in the residential sector was quick and more resilient,” said Sriram Krishnaswamy, COO, RoofandFloor. The recovery process, which started in the third quarter of 2020, was derailed in the second quarter of 2021 because of the second Covid19 wave. With most of the prospective homebuyers expected to make a purchase in the next 3 months, the residential market is expected to get back on the recovery path and 2021 is likely to end on an optimistic note. New launches are expected to go up in the second half of 2021 as developers launch new projects to monetize their land banks. Source: The Economic Times INDIA

Real Estate developers expect home loan rate cuts to push housing sales in festive season

9/23/2021 11:19:00 AM

Real Estate developers expect several leading banks and mortgage lenders’ move to reduce interest rates on home loans to help convert demand for housing into sales this festive season. Both public as well as private sector banks including the State (SBI), NSE -0.40 % Bank, Bank of Baroda (BoB) and Punjab National Bank (PNB) are offering home loans at a record low-interest rates to cash in the spending rush ahead of the festive season. State Bank of India (SBI) has announced that it will charge home loan borrowers an interest of 6.7% based on their credit score, irrespective of the loan amount. The offers are available to all segments of borrowers irrespective of the profession of the borrower. The 6.70% home loan offer is also applicable to balance transfer cases. “There is already a growing desire to own a home as consumers look at it as a necessity in this unprecedented time of the COVID-19 pandemic. With the onset of the festive season, there is a stiff competition amongst the financial institutions to provide the consumers with the best home loan interest rates…These factors are also proving to help spur the real estate demand that was temporarily hit last year as a result of the pandemic,” said Ashok Mohanani, President, NAREDCO Maharashtra. HDFC too, announced a festive offer with home loans starting from 6.70%. This offer will be applicable to all new loan applications irrespective of the loan amount or employment category. The special festive offer is for all loan slabs and for all customers with credit score of 800 and above. Many homebuyers may abstain from making purchases during the ongoing Pitrupaksha period that will come to an end in the first week of October. However, the festive quarter of October-December usually witnesses a surge in housing sales across cities as homebuyers prefer this auspicious period including Navratri, Durga Puja, Dussehra and Diwali to book and buy properties. “Considering the auspicious festive season ahead, the timing of the reduction in interest rates by leading banks couldn't have been better. The real estate market has seen decent sales this year and this reduction in interest rates would further help to keep up the sales momentum,” said Cherag Ramakrishnan, MD, CR Realty. Kotak Mahindra Bank has reduced its home loan interest rates by 15 basis points (bps) to 6.50%. This special rate is a limited period festive season offer beginning 10th September and ending 8th November 2021. “Lower interest rates will help push the conversion of demand from end users as affordability will improve. A lot of prospective first-time homebuyers will be able to take the decision as it becomes viable for them to buy an apartment. It will also allow homebuyers to upgrade to a relatively bigger home, the importance of which has come to the fore following the pandemic,” said Aditya Kedia, Managing Director- Transcon Developers. Bank of Baroda (BoB) is also offering a waiver of 0.25% in the existing applicable rates for home and car loans. In addition to a processing fees waiver for home loans. Now, its home loan rates will start at 6.75% and car loan rates start at 7%. Punjab National Bank (PNB) too has slashed the repo-based lending rate by 25 basis points (bps) to 6.55% Source: The Economic Times INDIA

Tier-2 cities in India are the next big market for co-housing, says Housr CEO Deepak Anand

9/22/2021 11:24:00 AM

Founded in 2018 by real estate veterans Deepak Anand and Kalpesh Mehta, co-living startup Housr offers easy and hassle-free living for millennials. The two-year-old brand has Serum Institute CEO Adar Poonawalla as its key investor and Pirojsha Godrej (Chairman, Godrej Properties), Abhishek Lodha (Lodha Group) and Harsh Patodia (Group Chairman, Unimark) as angel investors. Co-founder and CEO of the startup Deepak Anand speaks to The Indian Express about co-living spaces and the company’s trajectory. Your note talks about the company taking different models in different cities in terms of operations. Has the company invested in its own property in any city or is the model running mostly on leased properties? Housr works on asset-light models, leasing properties on a long-term basis across cities. We take the entire building and undertake a full-stack service model where we become the sole operator for the property and put up services like F&B, laundry, Wi-Fi, housekeeping, security, providing fully furnished rooms and common areas for residents. In addition, through our tech stack we control the entire operations on a day-to-day basis and for residents, everything happens on a seamless app on their mobiles ranging from rent payment, visitor management, ticket resolutions to opting for value-added services like F&B, gym etc. Co-housing has huge potential but it is limited to certain cities only. For example, Sangli, Kolhapur or Latur in Maharashtra has a large student population but co-housing is almost absent as a segment or is very fragmented. What have been your observations in tier 2-3 cities and do you see any potential for growth there? For us, the focus would be to enter tier-2 cities where both the student population and working professionals are widely present. Such micro-markets for Housr exist as part of large markets like specific sectors in Gurgaon, Noida, Pune. We are essentially a working professional brand and also cater to post-graduate students as the overlap between the two segments is quite high. However, at the moment we do not do dedicated college student housing. We are looking to add over ten tier 1 and 2 cities in India serving over 30,000 beds across over 50-75 Grade-A stand-alone properties in the next 18-24 months. After starting operations in NCR, Housr has also forayed into Pune and is now expanding their operations in Hyderabad, Chennai and Bengaluru with 35 locked-in properties at the moment. Towards the end of 2021, the aim is to enter Ahmedabad and Indore that have a large population of single working professionals and there is a definite product gap in the market How has Covid impacted your business? With most educational institutions closed and work-from-home being the norm, you would have seen many vacancies. What is the present percentage of occupancy in your properties and what was it prior to the pandemic? What was the student versus working professional occupancy prior to Covid and now? Housr did not stop during the lockdown and worked in full capacity to translate Housr’s strategies into desired outcomes. We focused on the supply side and during the first Covid wave, locked in eight properties in a span of 3-4 months. Also, as I said, Housr is primarily a working professionals brand and even though we had setbacks during the lockdown, we still had above-average occupancy numbers and the speed at which the occupancy came back post both waves has been really encouraging. How long will it take for the sector to go back to pre-Covid occupancy rate? For Housr, the recovery has been very sharp. In fact, we have grown across metrics when compared to pre-Covid in terms of number of properties, residents living with us or our overall revenue and growth numbers. We expect this trend to continue as more and more offices are now opening up post the successful vaccination drive in India. For the industry, we expect close to full recovery by Q1 2022, if the current positive trends are to continue. Source: Indian Express INDIA

Low-interest rates to boost housing sales, benefit affordable & mid-segment homebuyers: Experts

9/21/2021 9:40:00 AM

Several banks such as State Bank of India (SBI), Kotak Mahindra, Bank of Baroda (BoB), and Punjab National Bank (PNB) have announced low-interest rates for housing loans, and real estate experts say that this is expected to push sales during the festive season and benefit affordable and mid-segment homebuyers. State Bank of India (SBI) will charge home loan borrowers an interest of 6.7% based on their credit score, irrespective of the loan amount. The offers are available to all segments of borrowers. The 6.7% home loan offer is also applicable to balance transfer cases. Kotak Mahindra Bank has reduced its home loan interest rates by 15 basis points (bps) from 6.65% to 6.50% p.a. This special rate of 6.50% p.a. is a limited period festive season offer beginning September 10 and ending on November 8, 2021. Bank of Baroda (BoB) is offering a waiver of 0.25% in the existing applicable rates for home and car loans. In addition, the bank is also offering a waiver of processing fees in home loans. Now, home loan rates will start at 6.75% and car loan rates start at 7.00%. Punjab National Bank (PNB), too, has slashed the repo-based lending rate by 25 basis points (bps) to 6.55%. “The banks are competing to grab the home loan customers before the fiscal year ends. Currently, the home loan rates are at a historic 15-year-low, as banks compete in a market with low credit demand. The benign interest rates environment will continue for some time and it is unlikely that interest rates will fall further from the current levels,” said Pritam Chivukula, co-founder and director, Tridhaatu Realty and secretary, CREDAI-MCHI. "The move to reduce interest rates by few banks is encouraging and will create competitive housing finance options for the home buyers and eventually will pave the way for robust housing demand. It will also augur well for ready-to-move-in homes and the affordable housing segment,” said Jayesh Rathod, Executive Director, The Guardians Real Estate Advisory. Last week, SBI announced festive offers for prospective home loan customers, including a credit score-linked home loan starting at 6.70 percent, irrespective of the loan amount. Earlier, a borrower availing a home loan above Rs 75 lakh had to pay an interest rate of 7.15 percent. “This move is aptly timed, coinciding with the beginning of the festive season. This year, we are likely to see significantly improved traction in the housing segment during this period. Waiving of processing fees and occupation-linked interest premium are added levels of savings. Cumulatively, this package is the most compellingly attractive offering ever extended by a housing loan lender and it is reasonable to expect that other lenders will follow SBI's footsteps in order to remain competitive,” said Anuj Puri, Chairman – ANAROCK Group. Source: Money Control INDIA

Why demand for holiday homes is gaining traction in India

9/19/2021 12:01:00 PM

The Indian real estate market has gone through various ups and downs in the past decade. A spate of regulatory movements such as demonetization, RERA and GST around 2016-2017 helped to give a facelift to this sector. While some of these steps were much needed, it impacted the sales. The year 2017 was an extremely challenging as the sales dropped a new low of 100,000 units but thanks to the positive sentiment, the sector posted good recovery in the subsequent years. It was rather unfortunate that just as things started to look for the real estate sector, this pandemic struck and jolted the growth. The coronavirus pandemic, lockdowns and the travel curbs have all impacted the sector in a big way. However, the residential real estate market has shown great resilience in the year 2021. The sectors that have performed well in the first half of the year are the affordable residential sector and the luxury segment. One of the major reasons for the increased demand in the luxury and affordable segments can be attributed to the changing need and mindset of the people. The pandemic and the uncertainty that it caused has resulted in an increasing desire among people to own a house of their own. This coupled with low interest rates offered by the banks and stamp duty cuts in some key markets have helped to keep the demand in the real estate segment steady during this testing time. In the month of August too, RBI’s Monetary Policy Committee (MPC) decided to keep the repo rate unchanged at 4 per cent while the reverse repo rate has been maintained at 3.35 per cent. This accommodative stand will help in fuelling further growth in the segment keeping in mind the upcoming festive season. The affordable dream In this post COVID-19 time, it is the affordable housing segment that has been registering the maximum growth. According to industry reports, almost half of the total housing demand in the primary residential market across eight major cities is for two-bedroom apartments. These apartments fall under the price bracket of Rs 45 lakh and are the top performers of the segment. There are various incentives that are being provided by the government to help the growth of the affordable housing segment. In order to make it easier to achieve this goal, the government is offering a number of subsidies. One of these subsidies is a reduction of GST rates for the affordable housing segment. For homes below the price of Rs 45 lakh, the applicable GST rates have been reduced from 8 per cent to 1 per cent. The other end of the spectrum There is another interesting convergence that this pandemic has brought about, which is between the ‘luxury real estate’ and ‘quality of life’. A lot of people have started equating the quality of life to luxury living. They want nothing but the best for themselves and are willing to spend to get the finest that life has to offer. It is thus not surprising to see that in this post pandemic phase there has been a significant increase in the buyers seeking luxury properties. It has been noted that there is a growing demand amongst homebuyers for bungalows, villas, farmhouses and spacious apartments. As a result, new launches in the luxury segment have multiplied in the first half of the year. According to industry reports, out of the total houses launched in this year, 17 per cent belonged to the luxury segment. In comparison, luxury houses comprised 9 per cent of the overall houses constructed in 2020. Focus on overall well-being Surveys show that homebuyers are now making a distinct shift towards investing in homes as long-term assets. With the house doubling up as their office, gym and even recreational space, homebuyers are eyeing spaces that are more spacious. Furthermore, the COVID-19’s virus impact has also made the way clear for larger, well-ventilated homes and second homes. Instead of focusing on buying homes near their workplace for an easy commute, homebuyers are showing interest in safe indoor environments, services emphasising health and wellness, and self-sufficient homes with open areas. With the work from home culture being the norm, homebuyers are scouting for places that are picturesque. They are looking for self-sufficient properties in holiday destinations such as Goa, Alibaug, Kerala, Darjeeling or Shimla. The rationale behind choosing a holiday destination is that these places enable people to leave the hustle, bustle of the city life behind and enjoy time by the nature. Favourable weather conditions all year round, easy connectivity, better air quality and better quality of life are some of the qualities that make these destinations a hot favourite among the new age buyers. Moreover, these places are not as densely populated as the metros and that is another big positive for people looking for homes in the post-COVID-19 scenario. Another factor that is pushing homebuyers to contemplate holiday homes is that it offers a great return on investments. In this post-pandemic world, people want prudent investment choices and holiday homes yield better returns over time than any other commercial or residential property. Given the benefits that they offer, holiday homes have started to become a hot favourite amongst the travel-savvy upper-middle-class, who earlier enjoyed annual holidays. The return of NRI investors Another interesting trend that is being observed in this post pandemic phase is that the non-resident Indians (NRIs) have started investing in luxury homes back home. It is being noticed that a large chunk of the Gulf-based expat Indians have invested in the residential properties in India during the last one year. Depreciating value of the Indian rupee and great offers being offered by developers in the country are some of the reasons why NRIs have now started to look at real estate as a great investment option. Most of them are eyeing spacious and modern luxury homes, which are either 3BHK and 4BHK apartments or villas or holiday homes. This segment prefers larger and more luxurious homes because of the lifestyle they enjoy in the country they are staying in. These buyers are also extremely conscious about the health aspects and thus projects that addressed these issues gained the most last year. Currently, the Indian restate market has been pegged as a $200-billion industry by the Ministry of Housing and Urban Affairs (MoHUA). The ministry further expects the sector to grow at an exponential pace in the coming years and become a $1-trillion industry by the year 2030. For the same to happen, the luxury segment will have to continue to be a great driver. Source: Financial express INDIA

Chandigarh admn exploring land pooling options to develop villages

9/16/2021 11:25:00 AM

The UT administration is considering a number of land pooling models for the development of villages and periphery land pockets. One of the models being considered is giving land development rights instead of land rights. Under it, villagers opting for land pooling will form a consortium and then be allowed to develop the land as per the laid down building bylaws and other rules and regulations. Common facilities like roads and water supply will be provided. Such models were taken up in a meeting that was convened at the level of the UT adviser here on Wednesday. Different aspects of the Land Aggregation Policy for Chandigarh and proposed development of villages and peripheral areas as notified in the Chandigarh Master Plan 2031 were also discussed. “Mohali has a Greater Mohali Area Development Authority (GMADA) and Panchkula has Haryana Shehri Vikas Pradhikarn (HSVP), but Chandigarh doesn’t have any such authority. The administration will be exploring the option of giving this role to Chandigarh Housing Board,” said a senior UT official who attended the meeting. On the controversial issue of the Lal Dora extension, the administration has decided that it will be marked on villages using LIDIR technology. The deputy commissioner’s office will provide the same to the urban planning department, said the official. “The urban planning department has been directed to prepare a comprehensive strategy for village development plan,” the official added. Earlier, the consultant of Indian Institute for Human Settlement (IIHS), Bangaluru, presented a draft policy for aggregation of land for villages and peri urban areas in Chandigarh, after studying best practices of this area in Punjab, Haryana, Gujarat and Maharashtra. The UT adviser said that provisions of RERA and other Acts/guidelines prevalent for such development may also be incorporated. Other officials present in the meeting also made suggestions on the issue. The consultant has been given a month’s time to rework the initial draft and submit a report within a month. Kapil Setia, chief architect, thereafter made a presentation on study undertaken for development plan of villages in Chandigarh, highlighting existing physical situation and proposals and possible options for both sectoral and non-sectoral villages in conformity with the notified CMP 2031. Based on recommendations of the Chandigarh Master Plan 2031, focused development of villages shall be undertaken by the municipal corporation/CHB as per the above policy to be notified by the Chandigarh administration in consultation with the competent authority. These development plans shall be undertaken through a special village planning cell in close coordination between MC, CHB and the department of urban planning in a time-bound manner. Source: Hindustan Times CHANDIGARH

India ranks 54th globally in home price appreciation: Knight Frank

9/15/2021 11:30:00 AM

The pandemic-induced housing boom continues with prices rising by 9.2% on average across 55 countries and territories in the year to June 2021. Ten of the world’s developed economies averaged price growth of 12% in the 12 months to June, double that seen in key developing markets (4.7%), as per the latest global home price index by Knight Frank. Turkey (29.2%) leads the annual rankings, but its rate of growth is slowing. Several key economies including New Zealand (25.9%), US (18.6%), Australia (16.4%), Canada (16%) and Russia (14.4%) also make it into the top ten. In total, 18 markets registered double digit price growth, up from 13 last quarter and seven a year ago. Only two markets saw prices decline in the year to June 2021 – India and Spain. This is the lowest proportion of markets registering a decline in prices since the Global House Price Index commenced in 2008. India moved one spot up in the global home price index to the 54th rank during the quarter ended June 2021 as against Q2 2020 due to continued resilience shown by the residential segment amidst the global outbreak of the COVID-19 pandemic, On a QoQ basis, India climbed up one spot in Q2 2021 as compared to Q1 2021. The Global House Price Index report tracks the movement of mainstream residential prices across 55 countries and territories worldwide. The index tracks nominal prices in local currency. The report further mentioned that a breakdown by developed and developing economies shows a more nuanced picture with developed markets outperforming by some margin. Overall, 18 countries in Q2 2021 have reported double-digit growth, while India and Spain were the only countries to register an annual decline in home prices. Concerning 6-month (Q4 2020 – Q2 2021) and 3-month changes (Q1 2021 – Q2 2021), mainstream residential prices in India witnessed a growth of 0.9% and -0.5%, respectively. “India’s mainstream residential prices have largely remained stable with negative bias despite recovery being impacted due to the second wave. Moving forward with the downward trajectory in COVID-19 cases and mass inoculation drive, the sector is expected to make a healthy recovery with demand for homes only expected to increase in the coming quarter,” said Shishir Baijal, Chairman and Managing Director at Knight Frank India. Source: Financial Express INDIA

As many as 70% respondents want to buy a second home within two years: Survey

9/14/2021 5:16:00 PM

With the COVID-19 pandemic appearing to have created several resets in real estate and the wider acceptance of work from anywhere, the demand for second homes has gone up. As many as 70 percent respondents want to invest in a second home priced at Rs 2 crore or less within two years, a survey by Savills India, a global property consultancy firm amongst prospective homebuyers, has said. Approximately three-fourths of the potential buyers would like a second home in locations like Dehradun, Nainital, Shimla, Goa, Alibaug, Lonavala, Mahabaleshwar, Coorg, Ooty and Wayanad. The survey respondents were willing to invest in second homes across the length and breadth of the country, starting from Kovalam in the south to Manali in the north and Gujarat in the west to Meghalaya in the east, the top 10 destinations emerging from the survey collectively have a share of 87 percent within the domestic locations. Goa (20 percent) leads the domestic demand for second homes with one-fifth of respondents interested in buying a second home here. Almost 70 percent of demand is within the Rs 2 crore price range. As many as 29 percent of the survey respondents would like to invest in the popular second home destinations in Maharashtra and 65 percent of the demand is within Rs 2 crore. Net yields of Maharashtra properties have been in the range of 4-6 percent, the survey said. Only 3 percent of respondents want to purchase plots in Uttarakhand reflective of the stringent local ownership laws. Net yields of Uttarakhand properties have been in the range of 3- 6 percent. Himachal Pradesh witnessed limited demand for second homes priced at more than Rs 5 crore (0nly 3 percent respondents are in search of such properties). Preference for plots in the hill state is also low. (less than 5 percent). Net yields of Himachal Pradesh properties have been in the range of 3-6 percent, the survey said. Of the one-fourth of respondents who prefer purchasing their second home in international locations, the top five destinations--London, Dubai, Portugal, Scotland and Canada-- account for more than 75 percent of the share. Other notable investment destinations are Australia, Barcelona, Bali, the Netherlands, Switzerland, the USA, Oman, Qatar and South East Asia. This short-term commitment of less than two years is evident not only in the domestic market, but also in the preferred offshore destinations. When compared maximum preference of investments is within India in a horizon of less than 6 months. Almost 80 percent of potential second homebuyers intend to hold the properties for more than five years. As the ticket size of the property increases, so does the intended investment period reflecting an intent to attain capital appreciation and rental return before eventual exit from the cherished property, the survey said. Savills India’s research analysed responses on critical parameters that buyers consider while purchasing a second home and these include - owning a second home at a holiday destination, spacious and larger floor space, health and wellness factor, connectivity from home city, internet infrastructure and an eventual return on investment. The survey highlights that almost 60 percent of the respondents would like to invest in a second home within the security of a gated community that offers a sense of security and allows homeowners to enjoy facilities such as a swimming pool, gymnasium, health centre and sporting amenities, without having to worry about the maintenance of such provisions on a regular basis. The survey was carried out during June-July 2021. Several aspirational buyers appear to be evaluating alternate and additional homes, as the market seems to be providing value-based investment opportunities. The driving factors for such purchases are many, ranging from the need to create an asset pool, diversification of investment, future residence planning, lifestyle choices, or holiday and staycation homes. Affordability Driving Residential Housing Market in India Improved affordability is one of the major key demand drivers of second homes. Though the property costs have been rising over a period, so is the affordability due to rising income and lower interest rates. The recent surge in demand for second homes can also be attributed to rebound in domestic tourism after tapering of the second wave of the ongoing pandemic. Domestic air traffic witnessed a growth of 41 percent month on month in June 2021. As international travel norms for Indians are getting progressively relaxed, the surge in demand for second homes has extended to international hotspots as well. As many as 46 percent prefer a second home in the ticket size of Rs 50 lakh to Rs 1 crore and 24 percent prefer second homes in the range of Rs 1 crore to Rs 2 crore, the survey said. A vast majority want to hold on to their second homes for a longer time horizon. The long-term investment option does not change, even when the end use of the property is renting out. Across majority of the price points, the preference for a holding period greater than 10 years is higher than a 5-10 year horizon. In fact, as the ticket size of the property increases, so does the intended investment period reflecting an intent to attain capital appreciation and rental return before eventual exit, the survey said. Source: Money Control .Com INDIA

Good time to buy your dream home now

9/14/2021 11:41:00 AM

The real estate market in India is one of the pillars of the economy and is the second-highest employment generator in the country after agriculture. The sector is deeply interlinked to as many as 250 allied industries and accounts for nearly 6 - 7 per cent of the economy, which is set to rise to nearly 13 per cent by 2025. The sector has also been one of the biggest wealth creators in the past few decades. In the context of the pandemic now, and with the rollout of the vaccine, real estate is expected to grow further with renewed vigor. The current focus on ‘Stay home, stay safe’ has reinforced the importance of home ownership as living in an owned home is much safer and secure than the uncertainty faced in a rented home. Recently, the government has also introduced a lot of reforms and incentives for home buyers to promote housing. There are many factors that make investment in residential real estate lucrative in this scenario. Low home loan interest rates: The current home loan interest rates offered by banks are the lowest in the last decade and are a big boost to homebuyers. The overall cost of buying a home goes down drastically with lower loan rates, which makes it the ideal time to buy your dream home. The RBI has maintained repo rates at a lower level to ensure that home loans are less expensive for homebuyers. Also, demand in real estate is highly dependent on intensity of interest rates as they impact monthly budget of buyers. A secure and tangible asset class: Real estate has always proven to be a secure asset class and a tangible investment in times of crisis like the pandemic, a global calamity that has brought back attention to secure investments. Post Covid-19, everyone wants to buy a home that they can call their own given considerations of health, hygiene and social distancing. Fence-sitters too were prompted to buy homes, which has given a boost to residential real estate. This year will see a surge in demand for homes owing to not only reasons of safety, but also because of the volatility across stock markets. This has made real estate a safe investment class. Availability of exciting offers and attractive pricing: There are many other factors that explain why it is the right time to purchase a property now. Property valuations are at realistic, bottomed-out levels, stamp duty is lower in some states and developers are offering flexible payment schemes, cost-saving incentives and other offers as well. All this implies that you don’t buy a property at an inflated price and developers are willing to make it attractive for buyers. There are very real savings to be secured. Preference for ready to move in properties: There are also several options available in the market with ready-to-move (RTM) properties. The prices of RTM properties are almost at par with under-construction homes in many areas and this has not happened before - and since developers have restricted new supply, it is unlikely to happen again. The sentiment is positive for home buyers who are showing greater interest and are opting for branded developers to ensure that they get a premium product. There has also been a keen interest in villas, as this serves the purpose of a standalone home but at the same time is within a community with a host of amenities. Upgrading homes post pandemic: The fear of the pandemic and the uncertainty has resulted in people, now more than ever, wanting to upgrade their living environment. Home buyers are also looking to upgrade to bigger spaces for reason of safety and this is fuelling demand in the real estate sector making it the best time to buy property. Customers’ aspirations and their desire to upgrade their lifestyle has certainly fuelled the increased interest in luxury homes too. Those who had planned to buy a home within a certain price band are willing to stretch that to ensure they are purchasing multifunctional homes. Those who had saved up money have come forward and shown keen interest in investing right now. Demand for planned developments: Apart from owning a home, there is rise in demand for developments that are integrated and well-planned and offer host of modern amenities. These self-sustaining, compact urban ecosystems are now more than just lifestyle upgrades - they provide the kind of environment that makes a big difference during such an outbreak. The emphasis on this requirement will be high in the new normal. Locations that comprise a strong mix of physical and social infrastructure and are relatively better priced in comparison to expensive locations, have witnessed a higher demand recently. High demand due to capital appreciation: Triggers like attractive rental returns and capital appreciation have also enhanced the trust factor in real estate among buyers. Real estate value constantly increases over time and surpasses other investments. Investing in real estate allows you to safeguard yourself and your wealth. The value of the home will always be an excellent stand-by in case of a crisis. The growth forecast for the Indian economy too has been assessed by the International Monetary Fund (IMF) as positive, which will maintain the momentum of demand in the residential real estate sector. With lockdowns, last year and this year bringing to fore the volatile nature of high-risk investment instruments, real estate has proven to be a safer and more stable investment. Real estate players with a strong track record in the industry would definitely benefit in the current scenario. The post- COVID scenario will not just alter the homebuyers’ preferences and developers’ strategies, but also usher in a new dawn in Indian real estate. Thus, home buyers should make the most of this positive climate and make an investment in residential property. Source: Construction Week Online INDIA

Five reasons why real-estate recovery is inevitable this festival season

9/11/2021 2:10:00 PM

Indians are obsessed with the real-estate from centuries whether land or house. The love for owning a house has turned into an obsession due to Covid for some, which is being showcased in the sudden surge in the demand from end consumers. There is a clear euphoria for not only affordable housing but also for luxury housing. Covid has played a huge role for the fence sitter to buy a house at the first opportunity in the affordable housing sector. However, demand never slowed down in the luxury housing as this category involved lots of planning from the buyers end. If stock market is considered one of the indicators, real-estate stocks are upbeat and has seen a return of almost anywhere between 50-75% in last few months. India real-estate sector has never ever seen so active in the last so many years. There are multiple reasons for the sectors which is driving this demand. Let us try to understand the reason behind a sudden surge in the demand post second lockdown. Government push Government’s policy for housing for all by March 2022 is one of the major push behind all the hype in the sector. No doubt it is an ambitious dream by the Government of India. But the real-estate housing sector doesn’t need any assurance, it runs on the sentiment. If the sentiment is positive in the economy the real-estate sector is going to boom. The RBI no rate change policy and low rate is also rubbing the sector in a perfect way towards higher growth. The worst is NOT over There is notion among masses that there will be third wave and a fourth wave of Covid which is adding fuel to the buying sentiment in real-estate. This was another reason people just went out of the houses to breathe to various hill stations after the second lockdown was over. Millennials who believed in living today; suddenly house became a priority for them. They just do not shy away from taking loans either for buying a house or a car. It clearly indicating a hot property buying season. Festival season The festival season is round the corner, with Rakhi, builders have already started doling offers. Such are the lucrative offers that on buying a flat worth Rs50 lakhs, one can have a chance of winning a car worth same amount and only 20 people competing for the car. Means after every 20 bookings a draw will be held. Who will not try their luck with such offers? Covid impact The migrant population in Delhi NCR, even in white collar jobs have faced the music from owners. This league of people is ready to stretch their resources to own a house in NCR at whatever cost. Lower loan rates and good credit score are aiding them further. This conscious buyer is up for good deals coming their way during this festival season. We have to wait and watch all the action happening in this space by the end of this financial year. Source: IIFL Securities INDIA

Haryana CM Khattar writes to Amit Shah, seeks 10-acre land in Chandigarh for constructing new Assembly building

9/9/2021 5:59:00 PM

Citing a lack of adequate space and disputes with Punjab, Haryana Chief Minister Manohar Lal Khattar has written to Union Home Minister Amit Shah seeking 10 acres of land in Chandigarh for constructing a new and separate Vidhan Sabha complex for the state. Currently, Punjab and Haryana share the Assembly building in Chandigarh. Khattar, in the letter, mentioned that as per the proposed delimitation for 2026, the number of members of the House can increase to 126, but the current Assembly building can accommodate only 90 members. “Even 55 years after Haryana was created, the state is not getting its partitioned share in the Vidhan Sabha complex. Punjab has illegally occupied a large portion of Haryana’s share in the Vidhan Sabha complex. Haryana had been consistently making efforts to claim its right. A resolution was also passed in this regard in the Haryana Vidhan Sabha and an all-party delegation had also submitted a memorandum to the Punjab Governor. But, despite all these efforts, the Punjab governor-cum-UT administrator did not take any conclusive decision in this regard. It is a complicated issue and the functioning of Haryana Vidhan Sabha is getting affected due to lack of adequate space”, Khattar said in his letter to Amit Shah. In the letter, Khattar also mentioned that there was enough land available near the current building of the Vidhan Sabha for a new one for Haryana alone. Khattar also brought up examples of other states like Rajasthan and Gujarat and Himachal Pradesh which have constructed new Assembly buildings. In June, Assembly speaker Gian Chand Gupta also raised this demand and wrote to the Union government and the Lok Sabha speaker. Source: Indian Express CHANDIGARH

Chandigarh airport to launch cargo facility on November 1

9/9/2021 11:29:00 AM

Being constructed at a cost of ₹11.5 crore, the air cargo complex will handle both domestic and international cargo, including perishable goods Six years after getting the international tag, the Chandigarh airport will finally offer the cargo facility from November 1. Air cargo or air freight allows speedy transportation of commercial goods through an air carrier. At present, the Chandigarh International Airport Limited (CHAIL) only provides a common screening facility for domestic cargo, while the airlines — Air India, Indigo, Vistara and GoAir — are handling the goods on their own. Being constructed at a cost of ₹11.5 crore, the air cargo complex is spread over 14,127 square metres. With five cargo sheds being built, it will handle both domestic and international cargo, including perishable goods. It was on September 11, 2015, when Prime Minister Narendra Modi had inaugurated the international airport. In February this year, the Punjab government finally announced the air cargo facility. Presenting the budget, finance minister Manpreet Singh Badal had said that the facility will give boost to the industry and provide better access to international and domestic markets. Ajay Bhardwaj, chief executive officer, CHAIL, said: “Around 85% of the construction is done, and we are hopeful of completing the work by mid-October, and begin the facility from November 1. Some clearances are also awaited, and we are hopeful of get them from the authorities concerned in a couple of weeks.” The complex has four cargo sheds constructed through Galvalume pre-painted self-supported roofing and one pre-fabricated shed for perishable cargo. It is equipped with the latest equipment — cold room, reefer van, fork lifts, scissors lift, pallets, user-friendly weighing scale and trolleys — and high-security apparatus — closed-circuit television camera, X-ray machines, door frame metal detectors and explosive trace detection system. Yogesh Sagar, president, Mohali Industries Association, said: “It was the need of the hour. At present, we have to send our consignments by road to the Delhi airport, where they are lined up for 24 to 48 hours before being loaded on to the aircraft, which takes a week’s time. Now, the cargo facility here will save our time. It will also promote ease of business.” Source: Hindustan Times CHANDIGARH

Chandigarh gets country’s tallest air purifier

9/8/2021 4:08:00 PM

The Chandigarh Pollution Control Committee (CPCC) had taken an initiative to install the tower at Transport Chowk, Sector 26. This is the highest air purifier of India, which will cover around a 500-metre radius around Transport Chowk. Polluted air enters the inner casing of the mist chamber, wherein a number of mist nozzles spray water in the form of mist on the polluted air. Heavy polluted air particles are drained into a drain tube, which collect in a water tank. Fitted with a system to suck polluted air through inlets, particulate matter (PM) 2.5 and PM 10, along with various oxides of sulphur and nitrogen, are filtered by the purifier and the purified air exhausted in the environment. This purifier has been installed by Pious Air Pvt Limited without any cost to the UT Administration. It will also operate and maintain it for five years without any cost. According to the company, with the commissioning of the tower, the air quality around Transport Chowk will improve substantially. It is estimated that about 1.5 lakh vehicles ply on this chowk every day. The trial found that air pollution in and around Transport Chowk has come down by 70 to 80 per cent. The temperature around the chowk is also expected to drop by 10-12 degrees below the rest of the city. According to the manufacturer, the air purifier is a 24-metre-high tower-like structure, which will clean 3.88 crore cubic ft of air from the surrounding environment. The tower will pull in polluted air from the surrounding environment and release clean air into the atmosphere. A board installed at the tower will display how much polluted air is being sucked by the tower and also how much clean air has been released into the atmosphere. Among those present on the occasion were Debendra Dalai, Secretary, Environment, Anindita Mitra, Commissioner, Municipal Corporation, Mandip Singh Brar, Deputy Commissioner, and other senior officers of the Administration. Followed by the inauguration, a water sprinkler machine was also flagged off by UT Adviser Dharam Pal. The sprinkler will be used to wash roadside plants and also to suppress dust along the roads. A bicycle rally of around 100 students from prominent schools of the city was also flagged off by the Adviser to raise awareness among the public to curb air pollution and sensitise them to use bicycle as their local mode of conveyance. A prize distribution ceremony was held at Paryavaran Bhawan, Sector 19-B, Chandigarh, to distribute prizes among the winners of a poster-making competition on the theme of the International Day of Clean Air for Blue Skies this year i.e. healthy air, healthy planet. How it works Polluted air enters the inner casing of the mist chamber, wherein a number of mist nozzles spray water in the form of mist on the polluted air. Heavy polluted air particles are drained into a drain tube, which collect in a water tank. Fitted with a system to suck polluted air through inlets, particulate matter (PM) 2.5 and PM 10, along with various oxides of sulphur and nitrogen, are filtered by the purifier and the purified air exhausted in the environment. Source: The Tribune CHANDIGARH

Trends that are Transforming Real Estate in India This Year

9/8/2021 11:28:00 AM

The Indian real estate sector made an impressive rebound despite disruptions and market upheavals during the pandemic. Remarkable sales were registered in Q3 and Q4 2020 which continued till March 2021. As the pandemic continues to stay, noticeable changes in consumer behaviour and market sentiments are shaping up new trends in the segment. The realty sector has now transformed into a buyer’s market, and today, with an evolved sense of buying preferences, consumers are focusing their searchlight on bespoke offerings to make the best investment decisions. The sector has registered indomitable spirit and has remained resilient to become an investor’s favourite. The ‘work from home’ model is likely to remain this year and it is increasingly becoming an integral part of the long-term strategy. Businesses across the country are also finding this model viable to run operations in the pandemic. Demand for workspaces in homes, functional areas, dedicated space for study, gymnasiums and entertainment zones will continue to dominate the market. Ultra-modern high-rise apartments, gated townships and luxury towers with well-managed infrastructure will remain the most preferred choice in the ultra-luxe segment, which is driven by NRIs, UHNIs, expats, and business leaders amongst others. Interest rates are historically low and the RBI’s firm assurance in maintaining the status quo has boosted demand in the market. This has pushed investors to proceed with their purchase decisions. The segment has remained the safest investment option and conducive government policies, lucrative offers with guaranteed higher and secured returns will attract investors to keep market sentiment buoyed throughout 2021. The trend of consolidation in real estate was in place and it will be considered by more players in the days to come. Ready-to-move-in spaces will remain the topmost priority of today's discerning customers who do not want to wait endlessly for their properties and expect quick possessions. As these spaces are devoid of such risks, they have become a safer investment option in today’s world where preferences are changing rapidly. A digital future awaits the realty segment as tech-enabled solutions will play a pivotal role in its growth. Trusted developers with strong financial backing and proven track record will gain a higher market share. Customer- centricity will define the Indian real estate sector and the buyers will search for offerings which can sate their demands by coupling emerging trends with their preferences. Change in consumer demands will enable the Indian housing sector to set global benchmarks for better customer satisfaction. The increase in demand is organic as it is driven by the realisation among buyers about the value of having a home in the midst of the pandemic. The second wave of coronavirus has resulted in a temporary decrease in velocity but with mass rollout of vaccines and lowering of infections, the industry is confident that the demand will bounce back quickly. The market gained some traction late last year, cushioned by massive fiscal stimulus, accommodative monetary policy and signs of a better-than-expected economic rebound. With lowering of Covid cases and economic recovery, a fair price rise in property rates also looks inevitable. The sentiments are high as the government has set a target of vaccinating the entire population by the end of 2021. The pandemic has transformed the market and 2021 will be a turning point for the Indian real estate sector. The segment now understands the ‘new normal’ and is better prepared than last year. Imagination, innovation and digital transformation will drive the sector, and with new trends shaping up, the realty sector will enter a new growth phase soon. Source: Outlook India India

Drop In People Seeking Affordable Housing; Rise In Desire To Own Second Homes In Green Environment: Survey

9/5/2021 12:29:00 PM

Attractiveness of affordable housing seems to be declining even as more home seekers are opting for properties priced between Rs 90 lakh to Rs 2.5 Cr, according to the latest CII-Anarock Consumer Sentiment Survey released on Friday. The survey results are surprising given the government push and incentive for the affordable housing segment over the last few years. More than 34 percent respondent among home seekers expressed desire to buy properties priced between Rs 90 lakh to Rs 2.5 Cr, while 35 percent favoured properties priced between Rs 45-90 lakh, while 27 percent respondents voted in favour of affordable housing (priced below 45 lakh). In the previous H2 2020 survey, approx. 36 percent respondent property seekers has expressed preference for budget housing. The survey - conducted between January and June 2021 on various digital platforms with responses from 4,965 participants, underscores how radically Covid-19 has altered homebuyers preferences. The second wave has proved to be a significant change catalyst. “The budget range, which this survey identifies as the hottest seller is a surprise, but it makes sense if we consider that it is precisely this segment of buyers who are least financially impacted by the COVID-19 pandemic,” says Anuj Puri, Chairman – CII Real Estate Knowledge Session and Chairman of Anarock Group. While attractive pricing continues to rule the roost of must-haves, established developer credibility is the second-highest priority for 77 percent of the surveyed buyers. Project design and location are also key game changers. Online home sales are gaining traction, with close to 60 percent of the entire property buying process now being conducted online as against 39 percent in the pre-pandemic period. "From property search to documentation and legal advice to down payments, homebuyers are leveraging the new tidal wave of digital technology driving the Indian housing sector," says Puri. "Only developers with sufficient online presence will remain relevant going forward. Also, social media are among the most effective property marketing platforms at this stage.” The survey revealed that approximately 41 percent participating property seekers are considering second homes for self-use, with 53 percent of them keen to own homes in mountainous regions. Around. 71 percent respondent property seekers in the second wave are end-users, and only 29 percent are investors. In the first wave period survey, investors accounted for 41 percent. Amid the sustained work-from-home and e-schooling realities, over 65 percent respondents currently working remotely now prefer larger homes. The new work scenario has boosted the appeal of living far from busy and often polluted areas as around 68 percent respondent expressed desire to own property in peripheral or suburban areas. Where NRI are concerned, the survey revealed their continuing preference to own luxury properties priced between Rs. 1.5-2.5 Crore. Among the metros, Bengaluru, Pune, and Chennai are the hottest NRI picks, while Chandigarh, Kochi, and Surat top their Tier 2 & 3 cities list. The survey also highlights a stark contrast between consumer preferences during the first and second waves of the pandemic. Investor confidence in real estate has risen to 54 percent during the second COVID-19 wave, against 48 percent in the first wave. Ready-to-move homes are still the most preferred category at 32 percent, though this is a slide of 14 percent from first wave levels. However, the available inventory of RTMI homes is limited. Also branded developers dominate the new housing supply as buyers consider them safe bets. . The desire to acquire second homes in greener, healthier environs post the pandemic-infused lockdowns has given rise to aspirations like 72 percent of respondents designated walking trails a must-haves, while 68 percent have expressed keenness to have adequate open green spaces amid massively increased health awareness. Source: Out Look India INDIA

Gurugram property prices set to rise

9/4/2021 11:26:00 AM

Buyers of residential and commercial property in the millennium city will have to shell out more, with the Gurugram Bench of the Haryana Real Estate Regulatory Authority (HRERA) imposing registration and processing fee on promoters for the registration of new real estate projects. Now, a registration fee of Rs 10 per square metre will be levied in hyper/high potential areas, while it would be Rs 5 per sqm in the medium/low potential area. Highlights Registration, processing fee on new projects to push up prices Registration fee for residential, industrial and commercial projects ranged from Rs5 to Rs20 per sqm Processing fee of Rs10 per sqm will be charged for all projects Scrutiny fee of Rs5K mandatory registration of real estate agents Under the HRERA Gurugram (fixing of standard fees to be levied on promoter) Regulations, 2021, which were approved by the authority recently, fee @ Rs 10 per sqm will be charged for hyper/high potential area for residential/industrial projects. It will be Rs 5 per sqm for the medium/low category. The rates for the commercial projects will be Rs 20 per sqm for hyper/high potential area, while the rate for plotted colonies will be Rs 10 for per sqm for all categories. Similarly, the authority will charge a processing fee of Rs 10 per sqm for the floor area in residential/commercial/industrial projects and Rs 10 per sqm of the total plotted area in case of a plotted colony. Suresh Aggarwal, president of the Haryana Property Dealers Welfare Association, said the levy of the fee would have a ‘cascading effect’ on the prices of the residential and commercial properties in Gurugram.“The real estate promoters will pass on the increased cost of the projects to the customers,” he added. Moreover, for the extension of the registration of the real estate project, the promoter will to have shell out Rs 10 per sqm of the floor area. For plotted colony also, an amount of Rs 10 per sqm of the total area of the plotted colony will be charged. The promoters will have to pay 50 per cent of the registration for “delayed registration” for the delay of six months. An amount of 50 per cent of the registration fee for every subsequent six months will have be deposited with HRERA for “delayed registration”. For the extension of the project, promoters will pay half of the registration fee for residential, industrial, commercial and plotted colonies. Real estate agents will pay Rs 5,000 as mandatory registration. Source: Tribune INDIA

Changing landscape of real estate in India — millennials are driving the demand

9/3/2021 1:27:00 PM

The sale of residential real estate in Mumbai is not only higher than pre-covid levels but stands at its highest in the last 10-years in July 2021. Going by the recent trends, a substantial push came from the millennials. It demonstrates yet another behavioural change induced by the COVID-19 pandemic as these millennial cohorts were once perceived to be more inclined to rent a home as opposed to buying one. According to reports, there are over 400 million millennials in India, which is higher than the entire population of the US. Now aged between 25-40 years, millennials in India comprise one-third of its total population and 46 % of the country’s total workforce, with a spending capacity of $3.6 billion. The millennial generation is generally defined as people born between the mid-1990s to early 2000s, more specifically within the 1981 to 1996 period. In India, the millennials are considered profligate spenders and a generation that seeks instant gratification, not worrying or planning much about the future. As proponents of the sharing economy, they would rather use ride-share apps like Ola and Uber than buy a car, look after its repair, fuel, and pay EMIs. The same logic applied to owning a house too. They would prefer to rent a house than buy one, pay maintenance and EMIs. This behaviour by the millennials held true till early-2020 before the arrival of the COVID-19 pandemic. The same millennials have shown a marked change in their habits. Reports indicate that this largest spending cohort of people is now turning serious in their spending. Two factors could be playing a part in this behavioural pattern change, one is the coming of age of the millennials and in many cases, they are the sole providers of their families. Experts believe that the second reason for the change in spending priorities is the pandemic induced lockdown that revealed the handwriting on the wall - the non-sustainability of the ‘reckless’ spending and the advent of WFH with its wide acceptance. A recent news report highlights this shift in the spending pattern of millennials from borrowing for lifestyle and recreational purposes to serious priorities like home repairs and medical emergencies in the family. Another study by Standard Chartered Bank discloses that as a cohort the millennials are the most inclined to conscientiously strive for their far-sighted monetary objectives. The study specifically shows that 48% of the Indian millennials who are saving for a substantial buy like a car or a house whereas only 28% of the 45+ generation. This matured approach to financial matters also reflects in a recent study by 360 Realtors, a renowned name in real estate advisory services, wherein 3/4th of millennials expressed their desire to purchase a residential property in the next three years. A similar report by Anarock Property Consultants echoes the same intent mentioning that 55% of total buyers looking to buy their own homes are from the millennial age group. This number stood at 42% last year. 68% of the millennials polled by Anarock indicated that these home purchases were for their own end-use., a leading real-estate platform, says that millennials as a group constituted 63% of all its buyers amongst its entire user base, up from 49% from the pre-covid period. For the city of Mumbai, the millennials buyers were 74% of all the buyers across all the age groups. The COVID-19 impact & rising need to own a home among millennials While the pandemic has largely been instrumental in the shift in millennials’ mindsets towards buying homes, other significant factors are influencing this decision. The success of the WFH model means both employers and the millennial employees view a hybrid model of work wherein one does not have to go to an office every day as a sustainable framework of the future of work culture. This also means that the idea of career mobility and city-hopping for jobs is not at the forefront and a hybrid model of work. The major constituent, which is fulfilling the millennial aspiration of buying a house of their own in Mumbai into a real possibility is the lowest ever interest regime prevailing in the current times. The easy availability of credit and having experienced the flexibility and commute-less remote work means that the millennial buyer can now fulfil his bigger home dreams away from the island city to accommodate his/her remote WFH and their children’s online schooling in extended suburbs of MMR. The combination of record-low interest rates that have limited scope to reduce further and incentives by government augur well for both the millennial buyers of first-time home as an end-user and ones looking at a second home for investment. Source: Business Insider INDIA

Rising foreign investment in the Indian real estate market

9/2/2021 12:31:00 PM

Real estate sector in India is at its zenith. It has always been one of the most evolving sectors is one of the primary contributors to employment with seven percent of the country’s GDP. Furthermore, it is expected that by 2025 its contribution will increase to a whopping 13 percent. The investment trends for the last three months highlight one key trend – Strong investor confidence in the Indian real estate sector, which has resulted due to the following factors: 1) Direct investment in Indian real estate and ownership The decision to liberalise FDI norms in the construction sector is perhaps the most significant economic policy decision taken by the government of India. Real estate investment tops $1.35 bn in Q2 2021, thereby reflecting a nine-fold increase. Despite the second wave of the coronavirus pandemic that hit India in April this year, the first six months of 2021 saw investments worth $2.7 billion, which is 53% of the total investments seen in 2020. 2) Investment by way of REITs or equity investment in listed companies Real estate and infrastructure have become key factors of growth in a fast-growing economy like India where cities are expanding at a rapid pace. The sector is estimated to touch $650 billion by 2025, thereby contributing 13 percent of India’s GDP and by 2040, the realty sector is estimated to grow to $9.3 billion, which was at a mere $1.72 billion in 2019. Gazing at these numbers, it is evident that the Realty and Infrastructure sector is a viable avenue for investors. As of present day, there are about 11REITs and InvITs in operation across India out of which 10 have AAA level security. India began 2021 with the successful launch of the country’s third REIT – Brookfield REIT (issue size of around $512 million). Despite the pandemic, the net absorption of real estate was high, indicating that REITs are streaming up as a destination for investment. This will only further fuel the realty sector that adds to the domestic and global community’s confidence in REITs. Therefore, India’s REIT market is all set to enter a new growth phase with more REITs to be listed in 2021. 3) By way of huge influxes into the property technology (prop-tech) space Technology has permeated into almost all industries, and the real estate sector is no exception. On one hand the realty industry has been quick to identify opportunities in the adoption of technology, the government has been simultaneously coming up with various initiatives to drive in the same among the industry players. Few of the marquee campaigns of the government are ‘Digital India’, “Global Housing Technology Challenge’, “IndiaChain’, and so on, that are making the access of technology easier and more holistic. As more and more homebuyers in India plan and execute their property purchases through virtual platforms in the aftermath of the coronavirus pandemic, the real estate industry has assimilated technology in a way that has made it more resilient, invincible and given it a new and vibrant dynamism. The PropTech industry in India attracted over $551 million in 2020, surpassing the aggregate of 2019; $549 million. Blox as a startup with no team or build-out but only a concept and investor deck managed to raise 2.1 mn at a post money valuation of 12.1 mn. Global investors are excited for the long term prospects of the Indian real estate industry and more specifically, the digitization of the industry that is now certain to happen in light of the pandemic. Source: Construction Week Online INDIA