Himachal Pradesh's New Township Plan Near Shimla

7/5/2024 5:08:00 PM

Himachal Pradesh government has declared to construct a township at Jathia Devi in Shimla. The proposal of this township has already been submitted to the Ministry of Housing and Urban Affairs. The proposed cost of making this township including the land acquisition of Rs.1374 crore. According to the statement of town and country planning minister Rajesh Dharani's written statement to Congress MLA Sudhir Sharma. The Town and Country Planning (TCP) Department has created the Jathia Devi Planning Area by excluding 177 villages from the Shimla Planning Area. He also added that, the ministry of housing & urban affairs will contribute Rs. 512 crore and state govt will pay Rs.862 crore. A contract was additionally entered into with a Singaporean firm for the establishment of the township, but the former BJP administration discontinued the undertaking. Notably, the BJP government had resolved to vend plots and apartments to be constructed by the HP Urban Development Authority (HIMUDA) at this location. Intriguingly, the Shimla Draft Development Plan also encompassed a proposition for four satellite townships in the outskirts of the state capital, namely Ghandal, Naldehra, Fagu, and Chamiyana. Nevertheless, the implementation of the plan was deferred due to judicial directives. Dharani also added that, an intra state bus terminal has been proposed within the project area. The entire township is spread across a land parcel of 135 hectares and it will have three residential zones for HIG, MIG and LIG. Within this area, 16.56 hectares will be used for green zone/river development zone along the existing nullah, 13.36 hectares will be used for commercial development and projects 16.42 hectares will be used for constructing recreational green zone. Source: The Economic Times Chandigarh

DLF's net profit increases by 61.49% in Q4 FY24

7/5/2024 5:02:00 PM

DLF witnesses an increase of 61.49% in its net profit for the Q4, Fiscal Year 2024 Delhi Land & Finance developer has published a splendid net consolidated total income of Rs 2316.70 cr in Q4FY24 when corresponding to the previous year’s collection at Rs 1575.70 cr in quarter 4th. DLF, India’s well-known real estate company, has reported a profit after tax growth at Rs 919.82 cr in Q4FY24, in comparison to its Rs 569.50 cr profit after tax in the corresponding quarter of the previous fiscal year 2023. Also, the DLF’s consolidated net income in the fiscal year 2024, quarter fourth stood at Rs 2,316.70 cr against the reported collection of Rs 1,575.70 cr in the FY23, same quarter. ‘’Development business record sales booking of Rs 14,778 cr during the year. We plan to launch more than 11 million square feet of new products during FY25 targeting various markets including Gurugram, Mumbai, Goa and Chandigarh Tri-City. The estimated sales potential of these launches is approximately Rs 36,000 crores,’’ stated the company via its press release. Further, the company voiced several other results such as cash flow from operations and the future plans and sales potentials in the Millenium City ‘Gurugram. ‘’We remain focused on cash flow generation and consequently generated a record cash flow from operations of Rs 4,385 cr during the year. We acquired a strategic opportunity in sector 61, Gurugram offering a sizable potential of approximately 7.5 million square feet and an estimated sales potential of more than Rs 20,000 cr,’’ the Delhi Land & Finance (DLF) said in the press release. DLF has also successfully worked to get approval for the scheme of fusion between DLF Estate Developers, Kirtimaan Builders, Ujagar Estates, Alankrit Estates, and Tiberias Developers with the DLF utilities, by the National Company Law Tribunal - Chandigarh Bench. The Retail business of the DLF glimpsed an 18% YOY growth rate during the same period ie., the fourth quarter of FY23. Source: The Economic Times Chandigarh

How the Indian real estate sector drives the nation’s economy

3/24/2023 3:08:00 AM

While a lot of impetus is being given to developing India into a global manufacturing hub, the role of the domestic real estate sector in generating employment, adding real economic value, and its add-on effect on other industries is often overlooked. In fact, the real estate industry is the second-largest employment generator after agriculture and has been contributing about 11% to Gross Value Added (GVA) growth since 2011-12. A critical engine of growth and employment, with both forward and backward linkages, it is estimated that nearly 50% of India’s GDP is linked with the domestic real estate sector. Employing a large labour force in nation building Construction and allied activities absorb a large number of skilled and unskilled workforce, with many being employed from rural hinterlands where agriculture continues to remain the only source of employment. According to conservative estimates, nearly 70 million Indians are employed in the real estate sector as of 2022, with the overall sector slated to surpass the $1 trillion mark by 2030. What’s more, with the implementation of the RERA Act, sprucing up of labour laws, and a stark improvement in overall compliance, those engaged in the Indian real estate sector are benefiting from the large strides being made in recent years. Providing demand for key supplier and ancillary services industries With more than 270 allied industries being dependent on the real estate sector for business sustenance, this important sector has an important add-on effect along the entire supply chain. Key supplier industries like steel, cement, timber, and construction materials as well as ancillary services industries such as design, contracting, facility management, leasing & property consultancy are some prime examples. As activity in the real estate sector ramps up, there will be a wider positive multiplier effect on associated industries and those engaged in them. Driving rapid urbanization with critical housing and commercial infrastructure The rapid pace of urbanization has been a key driver of India’s economic growth over the past few decades, with urban centres such as Bengaluru, Mumbai, NCR, Pune, and Hyderabad attracting human and economic capital en masse. The real estate sector in conjunction with local governments, private developers, and infrastructure companies has played a key role in this transformation. With India slated to reap the benefits of its rich demographic dividend till at least 2050, the task of sustaining this rate of urbanization and creating the necessary infrastructure to support the country’s large young workforce will fall on the Indian real estate sector. Moreover, premiums, development and approval charges accruing from real estate related activity will continue to be a major revenue source for local government bodies and state governments, facilitating further socioeconomic development across the length and breadth of the country. Facilitating large foreign investment inflows that drive further growth With the real estate sector providing important infrastructure that remains pivotal to fuelling the Indian growth story, high-quality real estate projects and firms involved in their construction are attracting strategic and foreign investments in the country today. Capital inflows from marquee private equity (PE) firms and other foreign entities swelled to $24 billion between 2017 and 21, recording a 200% growth as compared to the preceding five-year period. Verticals such as warehousing, industrial parks, and data centres are also expected to give the Indian economy a much-needed boost as both domestic and international players rush to set up their distribution centres in the country today. An important asset class and source of wealth for millions of Indians As more Indians are deploying their savings into wealth creation avenues that can also significantly improve their lifestyle, both residential and commercial real estate are increasingly gaining precedence over other traditional asset classes like fixed deposits or gold. In fact, the real estate sector has traditionally been a major asset class and source of wealth creation for Indians, with new-age products such as REITs appealing to younger investors who are still not ready to buy their first home. The real estate sector remains a key source to channel savings for crores of Indian households, with recent improvements in the regulatory environment only adding to consumer confidence. Source: Financial Express INDIA

'Indian Real Estate Emerging As Preferred Investment Option Amid Market Volatility'

3/7/2023 12:45:00 PM

The real estate in India is currently rapidly emerging as an investment of choice by the increased number of investors, both Indian and NRI, in a background of market volatility and equity markets stagnating amidst increasing inflationary pressures. Due to the attractive rental yields and the potential for further price appreciation across India in both the metros and other cities, real estate is seen as a good bet. Rapid urbanisation and a rising population contribute to increased demand for affordable housing units in major Indian cities. Despite real estate prices already appreciating between 10 per cent and 30 per cent across India in 2022, India’s growth story is attracting venture capital (VC) interest across segments of the Indian real estate sector. In a recent survey conducted by the CII, 59 per cent of respondents are strongly inclined to invest in real estate, while only 28 per cent continue to prefer investing in Indian equity markets. Nagpur, Coimbatore and Indore have the highest year-over-year rental demand, propelling the growth of India’s commercial real estate sector. This expansion is also evident in the office leasing market, which is anticipated to increase by 10 per cent to 15 per cent in the coming fiscal year. Some of the factors impacting this trend include: Growing Social Infrastructure in Tier-II and Tier-III cities A significant trend has been the rising demand for modern office space and the emerging trend of urban and semi-urban housing. In addition, the expanding e-commerce sector in the country is driving up the demand for storage facilities, which is providing a boost to the market. In addition, the increasing use of telecommunication services, the implementation of 5G standards, and the localisation of data have increased the demand for data storage facilities. In turn, this positively affects the demand for resilient data centre infrastructure, bolstering the market growth. Increased acceptance of hybrid models in 2022 has resulted in a huge upsurge in major cities for office space. According to a survey, the office market’s net absorption in the top-7 cities, including Mumbai, Bengaluru and Hyderabad, reached a three-year high of 38.25 million square feet in 2022. Moreover, the net absorption for 2022 has exceeded the five-year pre-pandemic average (2015-2019) by 3.1 per cent, demonstrating the robustness of the Indian office markets. Increased acceptance of hybrid models in 2022 has resulted in a huge upsurge in major cities for office space. According to a survey, the office market’s net absorption in the top-7 cities, including Mumbai, Bengaluru and Hyderabad, reached a three-year high of 38.25 million square feet in 2022. Moreover, the net absorption for 2022 has exceeded the five-year pre-pandemic average (2015-2019) by 3.1 per cent, demonstrating the robustness of the Indian office markets. Increase in NRI Investment Foreign and domestic investors are capitalising on this growth, particularly in their own cities, with millennials comprising roughly half of these investors. Not only commercial real estate but also ultra-luxury apartments and vacation homes have seen an increase in investor interest. The strengthening of the dollar against the rupee incentivises investors to enter the domestic market with enhanced purchasing power. Newer proptech platforms have contributed to this growing interest by revolutionising the real estate industry and enabling the seamless onboarding of individuals regardless of their geographical location. This will continue to attract non-resident Indians to India’s real estate market. Changes in Policy Environment Aside from this, various initiatives undertaken by the Indian government, such as investments in smart city projects and tax exemptions for housing loan interest, are anticipated to create lucrative business opportunities for industry investors in the country. By 2030, the demand for Grade-A premium office assets in India is projected to reach 1.2 billion square feet. This expansion is fuelled by various factors, including a high return on investment, increased NRI and FDI investment, and strengthened government initiatives. Increased Demand for Ultra-Luxury Units and Vacation Homes With rising household incomes and an increase in the number of Indians among the world’s wealthiest individuals, the ultra-luxury residential real estate market has been booming, with demand frequently exceeding supply. Even in markets such as Mumbai, Delhi, Bengaluru, and Kolkata which have historically had a healthy pipeline of such units, consumers are increasingly opting for projects with amenities comparable to those provided by international developers. This shift in consumption habits has prompted Indian real estate developers to launch new luxury housing projects that cater to this expanding group of domestic investors. Other key factors, such as India’s emergence as a global IT power, the growth of the e-commerce industry, etc., would result in a significant increase in demand for spaces such as data centres and sophisticated warehouses. Commercial spaces will increase in Tier-II and Tier-III cities in 2023, acting as a significant employment-creating catalyst. In 2022, the office, warehouse, residential, and retail real estate sectors collectively attracted private equity investments totalling $5.1 billion. This demonstrates the industry’s optimism regarding the sector’s growth. However, the developer community must look to achieve the same construction and design standards as developed nations. Increased focus on raising capital through additional channels, such as real estate investment trusts (REITs), attracting more Indians to actively invest in the country’s real estate economy. With REITs providing proportional ownership of income-generating real estate assets, more Indian developers will need to establish their own REITs, educate investors on their potential for long-term value creation, and seek more investments via this route. This will attract more foreign investment and leverage the country’s large population to establish a sustainable financing model that will propel the Indian real estate industry to new heights in 2023. Source: News 18 INDIA

Key Indian property markets see 5-7% rise in housing prices in March quarter

3/4/2023 4:07:00 AM

Residential real estate has continued to witness firm growth in demand and conversion across India’s key property markets during the quarter ended March with a steady rise in prices. This also marks the fifth consecutive quarter of year-on-year growth in prices across all markets. Even in sequential terms, prices have either remained steady or grown across markets during the quarter. Prices have grown significantly across most markets led by Bengaluru, Mumbai, Chennai, and Hyderabad with 5-7% appreciation, showed data from Knight Frank India. The residential market has stepped into 2023 on a stable footing with the first quarter of the year registering sales of 79,126 units, up 1% from a year ago when home loan rates were at record low of 6.6% as against 9% now. Sales grew the most in the Hyderabad market at 19% from a year ago while slipping slightly in the larger markets of Mumbai and Bengaluru at 6% and 2%. “Given the cautious but optimistic sentiment in the market, we do not believe that home loan rates approaching 2019 levels (9.2%) will be enough to subdue market momentum significantly. The performance of the broader economy and homebuyer sentiment will have a greater bearing on market momentum in 2023 as it dictates homebuyer income levels and demands much more directly,” said Shishir Baijal, CMD, Knight Frank India. Consistent with the upward trend seen in the past three quarters, the share of sales in the Rs 1 crore and above ticket-size grew to 29% from 25% a year ago given the homebuyers’ need to upgrade to larger living spaces with better amenities. The share of home sales in the Rs 50 lakh to Rs 1 crore category also grew 38% from 35% a year ago. The share of the Rs 50 lakh and below ticket size, however, deteriorated from 41% a year ago to 32% during the quarter, as rising prices, higher interest rates and a comparatively more adverse impact of the pandemic on homebuyers in this segment continued to weigh on demand. “Rising interest rates have certainly impacted the sales of rate-sensitive segments of affordable and low-income group housing. The 2.5% increase in repo rate in a short span since last May has increased the homebuyers’ burden. Real estate industry has linkages with over 260 other sectors and therefore impacts the entire economy. We hope that the central bank will take cognizance of this in the upcoming policy meeting,” said Sandeep Runwal, President, NAREDCO – Maharashtra. Homebuyers have been more inclined to purchase ready or near-ready inventory to minimise completion risk earlier. However, the heightened demand over the past few quarters has depleted the inventory, and consumers are now increasingly willing to acquire newly launched properties at relatively lower prices. This is reflected in the average age of inventory decreasing to 16.7 quarters during the quarter from 16.9 quarters a year ago. The unsold inventory level has increased 6% from a year ago as fresh development activity has intensified. However, the Quarters to Sell (QTS) level has dropped to 7.2 quarters as of March end on the back of heightened sales, compared to 9.1 quarters a year ago. The QTS level represents the number of quarters required for the existing unsold inventory to be consumed at the current rate of sales. A reducing QTS level depicts a market where demand is gathering momentum. Mumbai recorded sales of 20,300 new homes during the quarter, highest among the top eight markets. While still robust, sales were lower 6% on-year when compared to a strong year ago period when impending metro cess implementation had also bolstered sales. Besides, Mumbai is the most unaffordable market in India and the recent spate of price increases and rate hikes will be felt more acutely here. However, launches have continued unabated with 9% rise. The prices rose 6% indicating the momentum in the market. The Delhi-NCR market witnessed stable demand as sales rose marginally 2% to 15,392 units, while launches rose 12% to 14,486 units. The prices have appreciated at a steady pace of 3%. In Bengaluru, average prices rose 7%, a testimonial to the underlying confidence of the market. The number of units sold reduced marginally by 2% to 13,390 units, while launches were second highest in the top 8 cities at 12,073 units, up 19%. The resilient Hyderabad market experienced substantial growth despite the rate hikes and concerns around economic slowdown as it saw 19% rise in sales at 8,300 units during the quarter. New launches rose 7% to 10,986 new units, while prices grew 5%. Source: The conomic Tmes

Aspiring millennials to drive the real estate market in 2023

3/3/2023 3:06:00 AM

Driven by the limitless ambitions of its youth, New India is shining brighter than ever before. This millennial generation is not shackled by the doubts and fears of its predecessors, but rather soars on the wings on determination and self-assurance. While previous generations believed in renting homes and buying a home after reaching a certain age, the millennial demographic refuse to compromise on buying the home of their dreams. Millennials contribute 34% of India’s population, which is close to 440 million people. Next generation of homebuyers that is driving the real estate growth in 2023 he pandemic has changed their mind set in more ways than one. Millennials are now keener than ever to invest in the real estate market. Even in the wake of geopolitical uncertainties, the demand for real estate has continued to rise due to the sanguine outlook of the millennial homebuyer. In the era of globalisation, this generation enjoys the highest purchasing power than any generation before. The aspirational millennial is more aware than ever before of the value of real estate as an investment. Indian millennials are a very important market. They are in their peak buying years and have easy access to home loans. This demographic contributed to over 50 percent of homes sold in 2020, and they were a major driver in the Indian real estate market crossing the mark 54% in 2022. Extrapolating these growth trends, the Indian real estate sector is forecasted to cross 1 trillion dollars by 2030, which will contribute to over 13 percent of the national GDP. Paradigm shift in the way residential properties are developed across India Unlike their previous generations, millennials have a quintessential approach to buying property. Unlike their predecessors, they see a house not just as a commodity but as an indulgent investment, and therefore they have specific needs and expectations when it comes to choosing a home. Discerning, demanding and determined, this generation expects the real estate properties that are integrated with modern and smart amenities at par with the global standards. Their hopes and dreams are bound only by their fearless audacity to aim higher than any generation that came before them. Millennials want smart spaces that allow them to work from home, while also offering expansive green open spaces, culturally vibrant entertainment zones, wide balcony areas, My spaces for mee time and secure and sophisticated digitally-enabled surveillance systems. Additionally, they seek homes that offer a complete integrated living experience, with diverse amenities that make daily life easier and entertaining. These include a plethora of facilities such as engaging clubhouses, children-friendly pool decks, gymnasiums, diverse fitness studios, state-of-art libraries, spacious community halls, and integrated sports complexes. Digitally-inspired generation Millennials are digitizing the home buying experience. From virtual tours to digital appraisal scheduling and from virtual inspections to remote notary services, millennials prefer to have digital closings of their prospective homes. As millennials are also twice as likely to shortlist their dream homes on their mobile phones than the past generations, all this is now a staple of the tech savvy generation. Proximity to workplace is no longer the first priority, but connectivity is the top criteria for buying a home now. The highly ambitious millennial generation is no longer ready to compromise on a certain level of comfort and lifestyle. This has created a specific demand for real estate properties that provide modern luxuries, while being intricately connected with social infrastructure facilities. Homebuyers today are looking for modern residential properties that provide them with logistical convenience by being located near their offices, are in close proximity to shopping high street /malls and entertainment venues. Leading real estate developers have pivoted in alignment with the needs of the millennial homebuyers and are developing premium residential properties to cater to the demand for the modern integrated lifestyle. In recent years, there have been a flurry of residential projects launched in highly posh localities, which include luxury and premium luxury gated communities. In terms of the millennials’ buying preference, the focus has shifted from compact homes to Smart Homes. Incorporating Internet-of-Things (IoT) and virtual home regulation systems, these new age smart homes are designed specifically for the requirements of the millennial homebuyers. These aspirational millennials place a high valuation on social connectivity and integration. This translates into young homebuyers preferring residential areas that provide a strong sense of community living. The best real estate developers are eager to meet this demand and are constructing residential complexes that are furnished with communal features like shared lounges, co-working spaces, clubhouses and dedicated community-gathering arenas. Millennials are prioritizing health and hygiene above all else They are looking for homes with open green spaces. The next generation of ambitious homebuyers are willing to pay a higher premium on living a sustainable and healthy lifestyle. Millennials do not consider environmental sustainability a premium luxury, but rather a basic necessity. While uncompromising on social amenities, they are equally unrelenting on environmentally conscious building practices. When it comes to ecological sustainability, millennials are willing to go the extra mile for their future. Asset classes that incorporate renewal energy through solar panels, conserve water through integrated rainwater harvesting systems, and safely dispose domestic waste through organic waste management systems are more preferred by millennials than other discounted properties. Millennials refuse to put a price tag on their futures. Modern real estate developers are now more sensitised than ever before in creating enhanced projects, which are certified by global environmental standards. Aesthetics of the property are meticulously intertwined with eco-friendly elements in order to appeal to a younger demographic of homebuyers. The real estate industry is undergoing a significant change driven by the aspirations of the millennial generation With a significant increase in purchasing power and an illimitable desire to achieve a modern holistic lifestyle, more and more millennials are investing in integrated real estate properties. While 66 percent of millennials have stated that investing in home ownership is a stable long-term investment, 30 percent have cited social status as another motivating factor that led them to invest in homes. The desire for deluxe housing reflects the millennial mind set. They do not rush into buying a home. They wait before taking the plunge and invest in premium quality product. The growth of the global real estate market depends on this shifting trend, which grew to 4000 billion dollars in the last year, which is a growth of 7 percent worldwide. Studies have shown that the millennial generation is the most confident generation when it comes to financial literacy and will push the global real estate market to 5200 billion dollars by 2027. Though buying a home is never an easy decision, the millennial generation are more than ready to invest in their luxury dream homes. They are now ready to plant their roots and more than happy to own real estate. Millennials are no longer the “rent generation”. As current market trends are extrapolated towards future horizons, it can be forecasted with reasonable certainty that this trend is highly likely to continue into the perceivable future. By understanding the needs and expectations of the millennial demographic, modern real estate developers in India are impeccably poised to lead the real estate growth in 2023 and beyond. Source:financial express INDIA

Centre begins process to modernise Mohali SCL

10/18/2022 2:03:00 PM

The Semiconductor Lab (SCL) at Mohali, the only government-owned semiconductor fabrication unit, will be one of the beneficiaries of the Central Government’s $10 billion semiconductor incentive package. The government plans to modernise and upgrade it for making semiconductors, which are used in display panels of smartphones, laptops, TV screens, weapon systems and automobiles. For the modernisation plan, the Ministry of Electronics and Information Technology (MeitY) has floated a request for proposal (RFP). The SCL was handed over to MeitY in February this year from the Department of Space. The SCL started production in 1984 but was devastated by a mysterious fire in 1989 and thereafter never recovered fully. It produces chips for strategic purposes. For instance, a 180- nanometre chip, along with other chips researched and fabricated at the SCL, have been used to power the country’s Mars Mission. According to the RFP, the selected bidder will act as an adviser and also be responsible for identification of business partner for modernisation and commercialisation of the SCL. As per the terms of the RFP, the bidders shall strategise the execution roadmap. Besides, the bidders also need onboard a commercial partner for the fabrication of chips developed by the SCL. “The bidders will also be responsible for development of business plan, go-to-market strategy and design of operating model, including identification and assessment of top list of potential partners (both Indian and global) across the semiconductor value chain,” said sources. “The SCL is responsible for design and development of very-large-scale integration (VLSI) devices and development of systems for the telecommunication and space sectors. The government is modernising the existing SCL as part of the effort to set up a latest manufacturing facility for making semiconductors,” said Rajya Sabha member Vikramjit Singh. On December 15, 2021, the Union Cabinet accorded approval for the modernisation and commercialisation of the SCL, which includes exploration of the possibility for a joint venture (JV) with a commercial fabrication partner(s) to modernise the brownfield fabrication facility. Semiconductor lab Timeline 1984: SCL starts production 1989: Unit consumed by mysterious fire 1997: Restarted again 2006: Converted to Semiconductor Laboratory under the Department of Space from Semiconductor Complex Ltd 2021: Cabinet accords approval for modernisation 2022: Handed over to MeitY from the Department of Space Source: The Tribune INDIA

Chandigarh international airport renamed after Bhagat Singh

9/29/2022 2:10:00 PM

The Ministry of Civil Aviation today renamed Chandigarh International airport as ‘Shaheed Bhagat Singh International Airport’. Finance and Corporate Affairs Minister Nirmala Sitharaman unveiled the plaque at Mohali and paid tributes to the national icon on his 115th birth anniversary. Punjab Governor and Chandigarh Administrator Banwari Lal Purohit, Haryana Governor Bandaru Dattatraya, Punjab CM Bhagwant Mann, Haryana Home Minister Anil Vij, Anandpur Sahib MP Manish Tewari, Chandigarh MP Kirron Kher and Minister of State for Civil Aviation Dr VK Singh were also present on the occasion. Haryana Deputy CM Dushyant Chautala says both Punjab and Haryana rose above all considerations to rename the airport after the freedom fighter’s name. Chautala proposed a bust of Shaheed Bhagat Singh to be installed here before the Martyrdom Day on March23. Punjab CM Bhagwant Mann sought permission from Civil Aviation ministry to increase international flights from the airport. With the renaming, the long pending demand to add Mohali, Chandigarh and Panchkula in the nomenclature has been laid to rest. Three days ago, in his Mann Ki Baat radio broadcast, PM Modi said the Chandigarh airport will now be named after Shaheed Bhagat Singh as a tribute to the great freedom fighter. Chandigarh International Airport Limited (CHIAL) is a joint venture company incorporated under the Companies Act, 2013 by Airports Authority of India (AAI) in association with governments of Punjab and Haryana. The airport runway is in Chandigarh while the international terminal is located on the south side of the runway in the village of Jhiurheri in Mohali. The AAI has a 51% share in the project. Punjab and Haryana have contributed 24.5% each. Source: The Tribune INDIA

Festive season, a big boost for residential real estate

9/24/2022 1:20:00 PM

The festive season beginning from Ganesh Chaturthi and culminating in Christmas, and the arrival of the new year is considered to be an auspicious time to invest in residential real estate. The season, which is a much awaited time of the year when home buyers opt for high-ticket purchases, gives a significant thrust to the real estate sector and is marked by the launch of new projects, combined with a spectrum of benefits to attract home buyers. This is a time when demand sees conversion as home buyers prefer going ahead with planned purchases. The need for stability and security emerging as high priority in the minds of people is also a factor that will pep-up residential real estate. A big booster to housing demand has been the increased importance of owning a property backed by consumer confidence in the overall economic scenario. The trend of the Indian festive season becoming the annual high point for residential real estate originates from traditional sentiment and is the right time to invest in wealth-creating assets. There is a healthy stock of ready-to-move-in and nearing-completion inventory that will be of high interest during the festive season. The current home loan interest rates are unlikely to compress the sustainable housing demand as the price band is still within a line of control. Rising home ownership amongst millennials supported by higher disposable income and willingness to upgrade to larger, luxurious spaces, equipped with better amenities have also sparked a sharp growth in housing demand. We are seeing a lot of home buyers who are eager to conclude deals in this auspicious season. The market continues to experience end user-driven demand and we are already witnessing a trend of more serious buyers closing sales. As per a recent report, the residential sector has recorded a 9-year high sales volume in January-June 2022. A defining feature of today’s housing demand is that even millennials are now in the market for home ownership as real estate has become the most sought-after asset class. With strengthened consumer sentiment and buoyancy in the market, the real estate sector has an optimistic outlook going forward. The sector has been riding strong for the last few months and is likely to maintain this momentum. The growth of the Indian real estate sector is well complemented by the growth of the corporate environment and the rising demand for improved lifestyles and better residences. Customers are also increasingly stepping ahead to invest in their dream properties offered by developers, which match their opulent lifestyle and needs. The biggest factor driving people to buy homes today is their experience during the Covid-19 pandemic and lockdown. It has made people rethink their priorities and hence owning a home has gained importance as it spells comfort and security. The end user-driven property market is experiencing a home buying rally and today, a rise in savings and market stability has encouraged home buyers to take the plunge. The past few months have been testament to the fact that home buyer optimism is at an all-time high as customers understand that they have various options and are able to make self-assured purchase decisions. In conclusion, it can be said that revival in market sentiment against the backdrop of vibrant economic activities makes this season more attractive. However, while investing in property, buyers should not only look at attractive deals, but also consider the reputation of the developer and other factors like location, execution capability, and amenities that the developer has to offer. As we march ahead, the industry is set to see a new phase of steady growth, which is a positive sentiment for those looking to invest this season. Real estate is always a wise asset class given that it sees consistent appreciation. Source: Times of India INDIA

Housing sale in tier 2 cities growing at rapid pace: Report

9/21/2022 10:27:00 AM

Ahmedabad, Vadodara, Nashik, Gandhi Nagar and Jaipur have emerged as the top five tier-II cities in growth of residential property market on the back of rapid urbanisation, industrialisation and growth of IT industry, according to recent report by real estate data analytics and consultancy company, PropEquity. The report highlights that there has been a remarkable jump in both absorption as well as supply of quality residential properties in various price brackets in these cities. The report has tracked performance of the residential segment of the real estate sector in various tier-II cities from FY 2017-18 to FY 2021-22. “The real estate activity in tier 2 cities is fast catching up with that of tier 1 cities. Interestingly, Ahmedabad’s residential real estate market size of Rs 83,390 crore has outshone some of the Tier 1 cities like Chennai and Kolkata with market sizes of Rs 52,554 crore and Rs 38,440 crore respectively at the end of fiscal year 2021-22. Although, it is also interesting to observe that the market share of Tier-I cities is about 4x times the share of Tier-II cities in the last five fiscal years . ,” said Samir Jasuja, Founder and Managing Director at PropEquity. This report tracked the current residential real estate scenario in India with focus on the top Tier II cities. The duties that were part of the study are Amritsar, Mohali, Chandigarh, Panipat, Dehradun, Bhwadi, Sonepat, Jaipur, Agra, Lucknow, Bhopal and Indore, Vishakapatnam, Vijaywada, Guntur, Goa, Manglore, Mysore, Coimbatore, Kochi, Trivandrum, Raipur, Bhubaneshwar, Ahmedabad, Gandhi Nagar, Vadodara, Surat, Nashik and Nagpur. “Post COVID lockdowns, tier 2 cities have been witnessing new job creation at a decent rate and many tech and other sector companies are encouraging work from home for their employees for at least next couple of years. This had led to scenario where tier 2 city housing projects are getting great traction due to their attractive pricing and potential for a higher upside in terms of investments,” Abhishiekh Andlay, Founder, Andlay Estates, said. The sales of homes in Ahmedabad stood at 39,046 units in fiscal year 2021-22, a growth of 26% as compared to financial year 2020-2021. When compared to fiscal 2017-18, a growth of 32% was witnessed in the city. The supply of homes in Ahmedabad stood at 39,195 units in financial year 2021-22, a growth of 14% as against fiscal year 2020-2021. Second ranked Vadodara witnessed a growth of 25% in sales of homes at 17,285 units in fiscal 2021-22 as compared to the previous fiscal. When compared to financial year 2017-18, a jump of 20% was seen. The supply of new homes stood at 15,046 units in fiscal 2021-22, an increase of 9% as against the previous financial year. Third ranked Nashik witnessed sales of 10,806 units in fiscal 2021-22, a growth of 15% on year-on-year basis. New supply of homes in Nashik stood at 13,037 units in 2021-22 fiscal, a whopping growth of 68% as compared to the previous fiscal. Fourth ranked Gandhi Nagar saw sales of 7,650 units in fiscal 2021-22, a growth of 10% as compared to the previous fiscal. New supply of homes in Gandhi Nagar stood at 6,361 units in the financial year 2021-22, a drop of 30% on a year-on-year basis. Fifth ranked Jaipur saw sales of 7,676 units in fiscal 2021-22, a whopping growth of 42% as compared to the previous fiscal. New supply of homes in Jaipur stood at 7,022 units in the financial year 2021-22, a massive increase of 78% on a year-on-year basis. The inventory of homes in Jaipur stood at 14,529 units at the end of fiscal 2021-22, a marginal dip of 4% when compared to the previous fiscal. It will take 23 months to clear at the current rate of sales. Source: Economic Times INDIA

Indian retail sector expected to get first Real Estate Investment Trust: Report

9/19/2022 10:58:00 AM

India is expected to get its first Real Estate Investment Trust (REIT) of retail assets soon as institutional investors and developers look to monetise their rent-yielding space in shopping malls, according to JLL India. REIT, a popular instrument globally, was introduced in India a few years ago to attract investment in the real estate sector by monetising rent-yielding assets. It helps unlock the massive value of real estate assets and enable retail participation. At present, there are three listed REITs - Embassy Office Parks REIT, Mindspace Business Parks REIT and Brookfield India Real Estate Trust - on Indian stock exchanges but all these are of leased office assets. Property consultant JLL in its latest report on retail real estate segment highlighted that institutional investment in the retail sector has been picking up since 2021. More than USD 862 million investments have come from 2021 (excluding portfolio deals). Many global investors are investing in the retail sector either by buying a stake in existing assets or through greenfield development platforms. "The retail market seems to benefit from favourable demographics, rapid urbanisation, and rising consumption," the consultant said. The report noted that investors are expecting healthy returns in the long run, considering the growth potential. Also Read | How Can You Save With Real Estate Express Coupon Code? "Investors are looking for quality Grade A assets by established developers having less vacancy. Investors prefer leased-based assets over strata-sold assets to ensure fair market rentals and timely returns," it said. The consultant also mentioned that investment in retail assets is not just limited to metros, as significant activities have been recorded in Tier 2 and Tier 3 cities as well. "Additionally, investments by these big institutional players help developers to exit the project partially or fully, reduce their debt, and focus on other developments. A lot of foreign funds are willing to acquire quality retail assets yielding good rental income," the report said. Investors are either buying or creating portfolios considering future public exit via REITs. "REITs are still relatively new in India and are prevalent in the office sector. India is expected to get its first retail REIT soon. With quality supply in the pipeline and new malls announced by established developers, the Indian retail sector is expected to attract more institutional investment," JLL India said. REITs in retail will be the next big move in the sector as institutional investors are building portfolios of superior-grade retail assets, it added. JLL India cited few examples of institutional investors creating large retail real estate portfolio. Nexus Malls acquired Forum Malls as part of a USD 1.2 billion deal between Blackstone and the Prestige Group to take over the income-generating retail assets of the latter. Abu Dhabi Investment Authority-backed Lake Shore India Advisory has acquired Viviana Mall in Thane from GIC and realty developer Ashwin Sheth Group for over ₹1,900 crore, the report said. That apart, Singapore sovereign wealth fund GIC and The Phoenix Mills Ltd have entered into a strategic partnership to establish an investment platform for retail-led mixed-use assets in India. The consultant expects leasing demand in malls to expand and surpass pre-pandemic levels by 2023. The inherent growth potential of the sector is quite robust, and institutional investment is expected to increase it further. This would bring more transparency and improvement in the operating environment of shopping malls, JLL India said. On the overall supply situation, JLL said that the stock of Grade A shopping malls in the top seven cities of India (Delhi, Mumbai, Pune, Bangalore, Kolkata, Chennai, and Hyderabad) is at 90.6 million sq ft in H1 2022. More than 50 per cent of the mall stock is in Delhi NCR (29 million sq ft) and Mumbai (19 million sq. ft). More than 70 shopping malls with a total retail space of 31.02 million sq ft are expected to become operational by 2025 across the top seven cities of India. Source: Hindustan Times INDIA

Leasehold to freehold conversion: SC gives MHA, Chandigarh admn 3 months to take decision

9/18/2022 1:31:00 PM

The Supreme Court has given three months to the Chandigarh administration and the ministry of home affairs (MHA) to decide on allowing conversion of commercial and industrial leasehold properties to freehold. On August 29, the Supreme Court had summoned Union home secretary Ajay Kumar Bhalla in court on September 16 if a decision on the issue was not taken. After Bhalla was summoned, UT administrator Banwarilal Purohit on September 6 had held a press conference, announcing that the decision lied in UT’s domain and will be arrived at soon. Later, Purohit sent UT adviser Dharam Pal to Delhi to discuss the issue, but a consensus could not be arrived at and MHA opted for seeking exemption from personal appearance of the home secretary at the September 16 hearing. “This being a major policy decision, the matter is being considered by MHA as per the established legal procedure and consultation with all stakeholders concerned,” the MHA said in court, seeking three more months to examine the matter, which was eventually allowed. Chandigarh has 6,621 commercial and 1,451 industrial plots on leasehold, which allows occupation for a limited period, mostly 99 years, with government agencies holding the ownership rights. Apart from legal complications, the allottees struggle with their sale and purchase, and raising a mortgage when needed, issues normally not associated with freehold properties where the allottee is the real owner. Earlier in July, the UT had put the onus on the Centre for delay in reaching a decision on the issue. The UT had first sent the conversion proposal to the MHA in April 2021 on the pattern of the residential policy of 1996. Subsequently, it even sent four reminders to MHA, but a decision was still pending, UT had told the court. In September last year, the apex court had directed the administration to constitute a committee to review and streamline the processes of sanction of mutation, grant of occupancy certificate, no-objection certificate and other citizen-centric requirements, including calculation of unearned profit under the 1973 or 2007 rules. The dispute before the SC was taken up by the Estate Office against a consumer court order in which it was penalised on the complaint of a city resident on an issue related to allowing conversion of leasehold property to freehold. The court had ordered that the committee would submit its report to the administrator and the UT administration. In compliance with the order, the administrator constituted the committee on October 5, 2021. The committee had made the first set of recommendations in February and submitted the second set of suggestions recently in July. Several amendments in property-related matters have been made since the first set of recommendations, and UT has submitted four action-taken reports in March, April, May and July before SC, while putting the onus on the Centre for delay in resolving some key issues. Source: Hindustan Times INDIA

Punjab government to come out with real estate policy to check unplanned development

9/13/2022 1:15:00 PM

CHANDIGARH: Punjab government will come out with a comprehensive real estate policy to check illegal and haphazard development in urban areas, said Housing and Urban Development minister Aman Arora on Monday. Arora on Monday presided over a meeting with senior officials of the revenue and rehabilitation department, and real estate developers here, according to an official release. The cabinet minister assured the developers that all their legitimate demands will be considered sympathetically and he will discuss them with the chief minister. He asked the developers to make sure that the interests of property buyers are protected. Arora accused the previous governments of creating a mess in the name of urban development, which, he alleged, resulted in mushrooming of around 14,000 illegal colonies in the state. The government is fully aware of all the problems being faced by the common man and it will bring a comprehensive policy to "clean this messy system" and will ensure planned development in the state, said the minister. On making no objection certificate (NOC) compulsory for property registration, the cabinet minister said this issue will be resolved soon. He said the state government's three departments - housing and urban development, revenue, and local administration - are working in tandem to sort out the issue at the earliest. Source: ET Realty INDIA

India’s real estate sector to reach $1000 billion by 2030: Thriving and yielding consistent returns

8/31/2022 3:14:00 PM

The good times continue to roll in the real estate sector. According to a report by valuation and consulting firm, RBSA Advisors the country’s real estate sector is expected to grow by 15% from $ 60 billion in 2010 to $1,000 billion by 2030, and contribute 13% of India’s GDP by 2025. The organised retail real estate sector is expected to increase by 28% to 82 million square feet by 2023. Ansh Batra, Director, Buniyad Group, said that the momentum that had picked up post-pandemic seems only to be getting stronger. "Despite the slight increase in the prices and a marginal hike in home loan interest rates the real estate sector has been thriving on positive buyers’ sentiments,” Batra said. In Delhi-NCR, there is huge demand for housing spanning across all segments, the report said. Sanjay Sharma, director, SKA Group said that among the factors that have boosted real estate in NCR is the all-round improvement in connectivity both road and metro. "The construction of Jewar Airport has acted as a major catalyst. These have enabled the developers to announce new projects farther away from the city and for the buyers it has significantly cut down their commuting time." Besides, since these are newly launched projects, they offer benefits of superior construction and better much improved facilities,” he said. The sentiments are equally positive in the commercial segment. Big retail companies are expanding and looking for new spaces. New projects are getting launched. Projects which were stalled due to the pandemic are nearer to completion. The commercial realty segment, both office and retail is thriving. Shop-cum-Offices demand has also taken a big boost, the report said, adding that prices of commercial properties are showing good appreciation. "In fact, it has been estimated that on average commercial properties comprising both offices and retail spaces can post returns anywhere between six to nine percent,” Ajendra Singh, VP, Sales & Marketing, Spectrum Metro, said. According to a Knight Frank report, 25 million square feet have been leased between January and June this year, translating to a 107 per cent jump, year-on-year. Bengaluru and NCR have led the way, accounting for 7.7 million square feet and 4.1 million square feet of these transactions, respectively. An interesting aspect of the post-pandemic realty scene has been the surge in luxury apartments, plots, villas and independent floors. For the Indian retail market, the projections are equally positive and is estimated to reach $1.1-1.3 trillion by 2025, the report said. In 2019-20 it was valued at $0.7 trillion, which makes for a Compounded Annual Growth Rate (CAGR) of 9-11%. Factors like socio-demographic and boost in economic activities such as urbanisation, income growth and rise in nuclear families are driving the Indian retail market. The organised retail real estate sector is expected to increase by 28% to 82 million square feet by 2023. "At present an investment in retail make for the best choice as the rental value and price appreciation are high,” Amit Jain, Director, Mahagun Group, said. Source: Zee Business INDIA

Shorter route to Chandigarh airport: GMADA moves ahead with process to acquire land

8/25/2022 1:03:00 PM

Aiming to ready the shorter route to the Chandigarh International Airport via Sector 66-A by March next year, the Greater Mohali Area Development Authority (GMADA) has moved ahead with the process for land acquisition. The authority has issued a notification under Section 19 of the Land Acquisition Act, declaring its intention to acquire 18 acres in villages Kambala, Kambali and Rurka for the project and inviting objections within 30 days, before compensation is fixed. The around 5-km stretch will allow commuters from Chandigarh and Mohali to head to the airport via the road in front of Bawa White House, instead of taking the longer route via Airport Road. This will bring down the 18km distance from Tribune Chowk, Chandigarh, to the airport in Mohali by more than 5 km. At present, commuters have to head all the way to the T-junction near the Indian School of Business, after passing by Bawa White House, to turn left towards Airport Chowk, where they again have to turn left towards the airport. “The 164-foot-wide road is part of the Mohali Master Plan. We have issued a notice under Section 19 of the Land Acquisition Act and are hopeful that land will be acquired by December this year and project will be completed by March next year,” said a senior GMADA official, dealing with the project. “A shorter route from Chandigarh has been a long-pending demand. It will be a boon for commuters from Chandigarh and neighbouring areas, and industry close to the Airport road by providing faster access,” said Naveen Manglani, former president, Chamber of Chandigarh Industries. Source: Hindustan Times INDIA

PM Modi to inaugurate cancer hospital at Mullanpur in Mohali on Wednesday

8/24/2022 1:27:00 PM

Prime Minister Narendra Modi will dedicate the Homi Bhabha Cancer Hospital & Research Centre to the nation at Mullanpur, New Chandigarh, in Punjab. The hospital has been built by the Union Government at a cost of over Rs 660 crore. The cancer hospital is a tertiary care hospital of 300-bed capacity and is equipped with modern facilities to treat all types of cancers using every available treatment modalities like surgery, radiotherapy and medical oncology - chemotherapy, immunotherapy and bone marrow transplant. This project is significant since there have been numerous reports of increasing cancer prevalence in parts of Punjab and people are forced to go to other states for affordable cancer treatment. This issue was so rampant that a train from Bathinda carrying cancer patients to Bikaner was known as a cancer train. The hospital in New Chandigarh will act as a hub of cancer care. A 100-bedded cancer hospital by GoI is functional since 2018 in Sangrur, which will now act as a spoke of this hospital. It will also help patients from neighbouring states Cancer treatment made affordable Treatment of cancer under the Ayushman Bharat has been one of the prime focus areas to safeguard the beneficiaries from catastrophic expenditure of cancer treatment. Health insurance cover of Rs 5 lakh per family per year is provided for secondary or tertiary care hospitalisation. Chemotherapy and Radiotherapy packages, along with surgical oncology are covered as part of cancer treatment in the empanelled hospitals under the scheme. A total of 435 procedures have been defined for the treatment of cancer. Significant focus on oncology in its various aspects has been ensured in the new AIIMS that are being established under the aegis of Pradhan Mantri Swasthya Suraksha Yojana (PMSSY). Cancer care facilities are also being established in other medical colleges under PMSSY. The National Pharmaceutical Pricing Authority (NPPA), under the Ministry of Chemicals & Fertilisers, put out a list of 390 anti-cancer non-scheduled medicines with MRP reduction up to 87% in 2019. The functional Ayushman Bharat Health & Wellness Centres (AB-HWCs) have done more than 10.33 crore screenings for oral cancer, more than 3.41 crore screenings for cervical cancer in women and more than 5.06 crore screenings for breast cancer in women. (As on April, 2022). Source: The Tribune INDIA

Current and Future Sentiment In Residential Real Estate Remain Optimistic: Report

8/12/2022 3:52:00 PM

The sentiment in the residential real estate sector has slightly moderated compared to the previous quarter’s all-time high of 68. It has now dipped to 62 in Q2 2022, amid a rapidly changing economic scenario, the recent report of the Knight Frank-NAREDCO Real Estate Sentiment Index Q2 2022 (April - June 2022) has said. “The Current Sentiment Index score, while safely remaining in the positive zone, has dropped mainly due to the perceived impact of the two consecutive repo rate hikes in May and June 2022,” the report said. The report noted that the Future Sentiment Score, which captures the stakeholder sentiments for the next six months for the real estate sector, has shrunk from its historic high of 75 in H1 2022, to 62 in Q2 2022, as pressures of a rise in inflation and depreciating rupee against the dollar has cast a shadow on the sector. That said, both the current and future sentiment scores remain optimistic, despite the decline, the report said, adding that the impact of global economic headwinds on the Indian economy is yet to play out. “The real estate supply-side stakeholders remain watchful of the tripartite global risks - economic turmoil in the United States, Russia – Ukraine standoff, and economic slowdown in Europe,” the report reads. Shishir Baijal, chairman and managing director, Knight Frank India, said: “Over the last 8-10 quarters, it has been firmly established that there is a strong latent demand in the residential sector, which when supported by right prices and sops, will convert to sales. In the last few quarters, this has given the once beleaguered sector a strong comeback. While some headwinds face the residential market with the geo-political issues, high inflation leading to increased repo rate and higher prices, demand remains strong leading to a positive outlook for the sector.” The Knight Frank-NAREDCO Real Estate Sentiment Index report further highlighted that the residential market outlook in Q2 2022 reflects future caution, as stakeholders expect strong sales and launch momentum, but maintain a subdued outlook on pricing. “At a time when housing affordability has been adversely impacted, the majority of stakeholders opine that there may not be further room for a home price rise,” said the report. Rajan Bandelkar, president, NAREDCO and director of Raunak Group, said: “The Indian real estate sector is one of the few bright spots in the global economy. The sector has been performing well and has been stable for the past few quarters. While the overall economic scenario and world order still remain cautious, strong fundamentals of the Indian economy and the real estate sector continue to give strength to various stakeholders, including the developers, the development authorities, policymakers, and the end consumers. With the government’s focus on reforms to tighten the monetary policy and the economy, we can look forward to an even stronger real estate sector in the future. Source: outlook India INDIA

Mohali | Land acquisition complete for Airport Road-Kharar linkway

8/9/2022 11:06:00 AM

Moving ahead with the plan to construct a 6km long, 200-ft wide link road between Airport Road and Kharar-Landran road, the Greater Mohali Area Development Authority (GMADA) has completed the land acquisition process for the project. The road construction is expected to begin in October this year. As many as 73 acres have been acquired, for which a compensation of ₹198 crore is being paid by the Punjab government. The highest compensation of ₹4.23 crore per acre is being paid to landowners in Baliali village, which is the nearest to the Airport Road. At ₹2.80 crore per acre, the lowest compensation amount has gone to Tole Majra village, which is the near Landran-Kharar National Highway. Apart from this, the state government will also be paying ₹167 crore for trees and structures being razed on the stretch. The department of housing and urban development has approved the compensation amount. Will improve connectivity for Kharar residents The link road, which was proposed six years ago, will improve connectivity from Airport Road to Kharar. With major townships such as TDI, Ansal, Jubilee City Gardens and Gateway City adjoining the stretch, the road will divide Sectors 116 and 92, and Sectors 117 and 74A to pass through Chappar Chiri Khurd, Chappar Chiri Kalan, Chajju Majra, Baliali and Ballomajra before connecting to the Kharar-Landran road near Swaraj factory. The road is a part of the Mohali master plan. Jubilee Group director Sanyam Dudeja said, “The road will be directly connected with DPS School, Jubilee City Gardens, and other important areas nearby, and thus prove a boon for residents here. Most importantly, it will help ease out traffic flow.” GMADA chief engineer Balwinder Singh said, “We will float tenders for construction now as the land acquisition process is complete and work is expected to begin in October.” Source: Hindustan Times INDIA