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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. Nobroker.com, 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

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

9/1/2021 12:14:00 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. Nobroker.com, 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

Listed real estate firms continue to do well, post 25% YoY sales growth in Q1FY22: Kotak Institutional analysis

8/31/2021 12:14:00 PM

All-India residential real estate sales across major cities in India increased 56% year-on-year to 75 mn sq. ft in Q1FY22 on the back of a lower base of 48 mn sq. ft due to the first wave of Covid-19. The impact of the second wave of Covid-19 was visible with sales declining sequentially from 179 mn sq. ft witnessed in Q4FY21, an analysis by Kotak Institutional Equities Research. Listed real estate companies posted a 25% YoY growth in sales in Q1FY22. Unlike the overall industry, listed players had a respectful sales performance in Q1FY21, the analysis said. Sales in 4QFY21 stood at their highest ever levels in the past five years at 179 mn sq. ft for sales value of Rs 1.07 tn (+31% YoY), it said. Geographically, sales momentum remained encouraging in Mumbai, Bengaluru, Hyderabad, Pune and Chennai while the NCR market saw slower growth in Q1FY22. Sales activity failed to pick up in NCR in Q1FY22, reaching 4.4 mn sq. ft (+10% YoY, -63% qoq) after having reached 12 mn sq. ft in 4QFY21. The sales mix was dominated by Gurugram and Greater Noida contributing 37% and 25% of sales, respectively, of total sales of 4.4 mn sq. ft clocked in NCR while Noida contributed only 22% in Q1FY22. Launches in NCR remained weak with only 4.5 mn sq. ft of new projects launched in Q1FY22. Greater Noida’s unsold inventory stood at 67.6 mn sq. ft in NCR followed by Gurugram (25%) and Noida (18%) at 47.7 mn sq. ft and 34.4 mn sq. ft, respectively. Net unsold residential inventory in NCR stood at 189.3 mn sq. ft as of June 2021, declining by 7.2 percent YoY and equivalent to 5.4 years of sales (based on trailing 12 months). Blended realizations in NCR increased 24% YoY to Rs6,730 per sq. ft in Q1FY22, led by 17% YoY increase in Gurugram, 12% YoY increase in Noida and 10% YoY increase in Greater Noida. In Mumbai Metropolitan Region (MMR), strong sales recovery was witnessed in 2HFY21, MMR saw a decline in Q1FY22 with sales of 13.3 mn sq. ft. Sales suffered due to the dual impact of a second wave of Covid-19 and removal of temporary reduction in stamp duty. Thane continued to maintain a higher share in overall sales in MMR at 50% while Mumbai and Navi Mumbai contributed 34% and 16% sales, respectively, in Q1FY22. Launches in MMR remained at 9.2 mn sq. ft in Q1FY22 with Mumbai contributing 39% of the launches in Q1FY22. Realizations in MMR increased by 6% YoY in Q1FY22 to Rs 10,370 per sq. ft due to lower sales contribution from Mumbai in the base quarter even as Thane saw a decline of 4% YoY. MMR is seeing a sharper decline in inventory among all regions, although outstanding inventory still remains the highest at 242 mn sq. ft as of June 2021 (down from 288 mn sq. ft in June 2020), the analysis said. Bengaluru saw sales of 7.7 mn sq. ft (+40% YoY, -55% qoq) against launches of only 4.2 mn sq. ft (-15% YoY, -64% qoq ) in Q1FY22. Launch activity in Bengaluru has remained weak over the past year and declined by 38% YoY to 33 mn sq. ft. Weakening launches on the back of strong sales momentum led to a decline in outstanding inventory to 139 mn sq. ft (-12% YoY) by June 2021 and is equivalent to 2.7 years of sales (based on trailing 12 months). Realizations increased by 4.4% YoY to Rs 6,000 per sq. ft in Q1FY22, it said. Overall, launch activity across India showed improvement at 52.5 mn sq. ft Q1FY22 against 40 mn sq. ft witnessed in 1QFY21, however, it remained weak compared to average quarterly launches of 88 mn sq. ft in FY2021. Launches in FY2021 stood at 352 mn sq. ft as against 519 mn sq. ft in FY2020. Outstanding inventory across the country stood reduced to 1.2 bn sq. ft (-12% YoY) as of June 2021, equivalent to 2.3 years of sales (based on trailing 12 months sales). Average prices across India increased 3% YoY to Rs5,860 per sq. ft in Q1FY22 (from Rs5,700 per sq. ft in 1QFY21). Property registration data for Mumbai and Maharashtra in August 2021 (till August 27, 2021) stood at 6.3K and 96K, slightly weaker than levels seen in 4QFY21 though still strong, suggesting continued sales momentum, the analysis said. Larger real estate players are likely to expand their footprint as the ongoing consolidation continues to weed out smaller players from the industry. A low interest rate regime leading to improved affordability will continue to fuel sales momentum. The industry’s demand-supply dynamics are well placed against a backdrop of weakening launch activity, it noted. Recovery in development plays, relative to pure annuity investments, will likely lead to stocks trading at a premium to NAVs due to strong business prospects. Bengaluru-based players are better positioned to capitalize on the growth story in the sector, the analysis said. Money Control INDIA

People in remote area of Jammu & Kashmir's Rajouri get houses under PMAY

8/30/2021 2:35:00 PM

The people of the far-flung hilly area of Draman Panchayat have also been provided jobs under the MNREGA scheme. Abdul Rehman, Sarpanch said that under the PMAY 200 pucca houses are being constructed here. The Department of Rural Development of Jammu and Kashmir is constructing pucca houses in the Draman Panchayat of Rajouri district for people living below the poverty line under the Pradhan Mantri Awas Yojana (PMAY). The people of the far-flung hilly area of Draman Panchayat have also been provided jobs under the MNREGA scheme. The beneficiaries of the PMAY scheme, who were earlier living in kacha houses, faced many problems during the winter season. Mushtaq Ahmed, a resident of the area told ANI, "We are really happy and want to thank the government for giving us what we needed." "I was living in kaccha houses and we were facing a lot of problems. Now, we are very happy and thankful to the government for providing pucca houses to us," said Ahmed. Ahmed further said that they are also being provided work in their own village and now they don't have to go to Delhi, Punjab, or other states in search of work. "In the winter season, our village gets 5 feet of snow because of which around 200 kaccha houses are damaged. The Modi government has come up with a very good scheme and it is very good for us," he added. Abdul Rehman, Sarpanch said that under the PMAY 200 pucca houses are being constructed here. "This far-flung, hilly area is 7 kilometres away from Rajouri. People over here have to face a lot of problems during winter because it is a snow-prone area. During winters due to snow, houses are damaged and the people have no place to stay. We are very thankful to the government. Rs 1.5 lakh is provided by the government under the PMAY," said Rehman. "Under the PMAY these pucca houses are being constructed. This is a very good initiative from the government. Earlier in our village, there was no electricity but for the last two years it has been there," said a local. Source: ET Realty INDIA

61% of mid income homebuyers feel prices to rise in next 1yr: Survey

8/29/2021 11:07:00 AM

Over 60 per cent of middle-income homebuyers in India expect prices of their primary residences to rise in the next 12 months, according to a survey by Knight Frank. Around 30 per cent of respondents in the survey expect rates to rise up to 9 per cent, while 25 per cent hope prices to rise by 10- 19 per cent and 6 per cent feel rates to appreciate by more than 20 per cent. The consultant on Wednesday released the Global Buyer Survey that analysed the impact of the COVID-19 pandemic on residential buyers' attitudes to purchasing homes around the world. Knight Frank also conducted a two-part primary survey for India, having a total sample size of more than 550 people. The first part of the survey comprised respondents in the high-end income segment, referred to as the 'Global Indian Segment' while the second part gauged buyer sentiment in the mid-end income segment referred to as the 'Mainstream Indian Segment'. In the Indian edition of the survey, 26 per cent of mainstream Indians had moved their residences within the pandemic period. "These relocations were motivated by factors like wanting more open space and proximity to friends and family," it said. For Indian mainstream non-movers, 32 per cent were more inclined to move residences in the next 12 months. An overwhelming 87 per cent of the respondents who desire to move homes in the next year, favoured the suburban neighbourhood of their current city of residence, while 13 per cent of respondents who want to relocate, may consider an alternate city. On price outlook, the report said that 64 per cent of the respondents expect the value of their primary residence to increase in the next 12 months. In the case of the Global Indian segment, which represents the higher-income segment, 32 per cent expect prices to rise. "Reflecting a more optimistic outlook, 61 per cent of respondents in the mainstream Indian segment expect prices of their primary residences to rise in the next 12 months," Knight Frank said. Among other findings, 32 per cent of the respondents from the mainstream Indian segment expressed willingness to move into a new home in the next 12 months as a result of the pandemic, whereas 14 per cent from the Global Indian segment indicated a desire for relocation. The report emphasised that the future of work would play a significant part not only for the commercial sector but also for the residential. More than half of the respondents in the Mainstream Indian segment expect to be back in the office for the entire workweek once all restrictions are lifted. As much as 47 per cent of the Global Indian segment respondents expect to continue working for 2-4 days in a week from the office once all restrictions are lifted. In the mainstream Indian segment, the highest inclination towards five days of work from the office was shown by professionals such as lawyers, architects, doctors, chartered accountants etc. In the case of the salaried class segment, the preference for work from the office ranged from 3 to 5 days. Shishir Baijal, Chairman and Managing Director, Knight Frank India, said, The pandemic has changed the outlook towards ownership of homes." "Our survey confirms that across the spectrum of Indian homebuyers, 32 per cent showed interest in relocating from their pre-pandemic homes." Apart from the spending propensity and house type that typically govern an Indian home buyer's purchase decision, Baijal said that factors such as access to open green spaces, healthcare and proximity to the workplace have also started playing an important role. "Energy-efficient homes are also gaining traction as the concept is finding preference amongst home buyers in India," he added. Source: Business Standard INDIA

COVID-19 impact: More Indians keen to shift homes to suburban neighbourhood

8/27/2021 11:54:00 AM

More Indians are looking to shift their homes to suburban neighbourhoods owing to their learnings from the Covid19 pandemic. Around 87% of total 558 respondents who desire to move homes in the next 12 months, favoured the suburban neighbourhood of their current city of residence, while 13% of respondents who want to relocate, may consider an alternate city, showed a Knight Frank India survey. According to this survey, 26% of mainstream (mid-income) Indians had moved their residences within the pandemic period. These relocations were motivated by factors like wanting more open space and proximity to friends and family. For Indian Mainstream non-movers, 32% were more inclined to move residences in the next 12 months. Globally, 64% of the respondents expect the value of their primary residence to increase in the next 12 months. In the case of the Global Indian segment, which represents the higher income segment, 32% expect prices to rise. Reflecting a more optimistic outlook, 61% respondents in the Mainstream Indian segment expect prices of their primary residences to rise in the next 12 months. “The pandemic has changed the outlook towards ownership of homes. Globally, two trends have stood out in the last few months. Firstly, a growing ambivalence of some buyers when it comes to location, provided they can secure a co-primary home that delivers the lifestyle and enjoyment they feel they’ve missed out on. And, secondly given low savings rates and frothy stock markets, buyers are taking a more defensive stance by rebalancing their portfolios with a greater focus on tangible assets such as property,” Shishir Baijal, CMD, Knight Frank India. Around 32% of the respondents from the mainstream Indian segment expressed willingness to move into a new home in the next 12 months as a result of the pandemic, whereas 14% from the Global Indian segment indicated a desire for relocation. In a price sensitive environment, more than 50% across all income segments in India cited lack of willingness to pay a premium for branded residences. Marking a significant citation, 32% of the Global Indian segment expressed willingness to pay a premium for a greener home. Globally, over two-thirds of total 900 respondents expect the value of their current home to increase in the next year with most expecting a rise between 1% and 9% over the 12-month period. “Besides economic fundamentals, the home buyer psychology is also seen as an influential element in formulating the home price dynamics. There is an optimistic expression from global home buyers in terms of expecting an incremental value in the prime residential asset class in the next one year. We believe residential demand will strengthen and we expect market fundamentals to gain prominence in bringing an equilibrium in real estate economics which got impacted by the fury of the pandemic last year,” said Kate Everett-Allen, Head of International Residential Research at Knight Frank. Around 61% homebuyers in India’s mid-income segment expect residential prices to increase in the next 12 months.Nearly 58% respondents in Mumbai and Kolkata expected up to 10% increase in residential prices, while 53% in Pune also had a similar expectation. More than 60% respondents in Southern cities expect up to 20% price increase in the next 12 months. Around 19% respondents in Bengaluru and 18% in Chennai expected prices to increase 20% or more in the next 12 months. The survey findings emphasize that the future of work will play a significant part not only for the commercial sector but also for the residential. More than half of the respondents in the mainstream Indian segment expect to be back in office for the entire work week once all restrictions are lifted. Around 47% of the Global Indian segment respondents expect to continue working for 2-4 days in a week from office once all restrictions are lifted. In the Mainstream Indian Segment, the highest inclination towards 5 days of work from office was shown by professionals i.e. lawyers, architects, doctors, chartered accountants etc. In case of the salaried class segment, the preference for work from the office ranged from 3 to 5 days. This is largely due to the impact of tech-firm employees working from home. Globally, 59% of respondents envisage working 3-5 days in a week from office once all restrictions are lifted. In the Middle East and Asia, the figure is 41% and 36% respectively. Source: The Economic Times INDIA

REITs, InvITs to be included in Nifty indices from September 30

8/26/2021 12:58:00 PM

Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts will be included in the Nifty indices from September 30, according to new eligibility criteria announced by the NSE. Vinod Rohira, CEO, Mindspace Business Parks REIT called it a very encouraging step from NSE. "This would enable wider investor participation in REITs and consequently increased volumes, liquidity and better price discovery. REITs merit to be on the Nifty indices, and this move will assist in widening investor participation for REITs at par with other equity options in India," he added. In a statement on Monday, the exchange said all equity shares, REITs and InvITs that are traded (listed and traded and not listed but permitted to trade) at the NSE are eligible for inclusion in the Nifty indices. Under the current rules, only shares traded on NSE are eligible for inclusion in the Nifty indices. REITs and Infrastructure Investment Trusts (InvITs) are relatively new investment instruments in the Indian context but extremely popular in global markets. While an REIT comprises a portfolio of commercial real assets, a major portion of which are already leased out, InvITs comprise a portfolio of infrastructure assets such as highways, power transmission assets. As at March-end, total 15 InvITs and four REITs were registered. Of these, six InvITs and three REITs were listed on the stock exchanges. These investment vehicles collectively raised close to Rs 55,000 crore in 2020-21, taking their net assets to Rs 1.64 lakh crore. The funds were raised through initial offer, preferential issue, institutional placement and rights issue. In addition, the eligibility criteria for Nifty pharma index has been revised. In the semi-annual review of indices, Bank of Baroda, Cholamandalam Investment Fin Co, Jindal Steel & Power, PI Industries and Steel Authority of India Ltd (SAIL) will be included in the Nifty Next 50 index. Abott India, Alkem Labs, MRF, Petronet LNG and United Breweries will be dropped from the Nifty Next 50 index. Apart from Nifty Next 50, changes have also been made in several indicies including Nifty 500, Nifty 100, Nifty Midcap 150 and Nifty Smallcap 250. The index maintenance sub-committee of NSE Indices has decided to make the changes in eligibility criteria of Nifty indices and replacement of stocks in various indices. These changes will become effective from September 30, 2021. Source: Money Control INDIA

NRIs form nearly 30% of investors keen in fractional ownership of commercial property: Report

8/25/2021 5:03:00 PM

The report says CA and finance executives have shown maximum interest (30% of total respondents) in investments towards fractional ownership of the commercial real estate, followed by lawyers (21%), doctors (15%), and Tech-IT executives (13%) Nearly 30% of total investors interested in fractional ownership of commercial real estate are NRIs as they seek to create an alternative income source for their family in India, according to a survey. Mumbai-based MYRE Capital, which facilitates investors in fractional ownership of the commercial real estate, conducted a survey collecting responses from over 1,500 high-ticket registered users and investors. According to the findings of the survey, chartered accountants and finance executives have shown maximum interest (30% of total respondents) in investments towards fractional ownership of the commercial real estate, followed by lawyers (21%), doctors (15%), and Tech-IT executives (13%). "These investors prefer fixed income options that are collateralised with a hard asset and have started appreciating the favourable risk-return profile of fractional CRE and the end-to- end management provided by fractional ownership platforms," MYRE Capital said in a statement. The survey found out that 72% of investors are from India while 28% are NRIs from countries like the US, the UAE, the UK, Denmark, Nigeria, and Australia. MYRE Capital's Founder and CEO Aryaman Vir said, "Fractional investment has long existed in India but in an unorganised manner. Even now, investors limit themselves to residential real estate as their only choice of investment and we want them to be aware of CRE as an effective avenue." MYRE Capital, a venture by Morphogenesis, is a tech-enabled fractional ownership platform that provides easy access, transparency, and liquidity to a curated selection of rent- yielding commercial real estate assets. Source: MInt INDIA

Himachal Pradesh Real Estate Regulatory Authority ranked second best in country

8/24/2021 1:20:00 PM

Himachal Pradesh Real Estate Regulatory Authority (RERA), constituted with the objective of regulating and promoting the real estate sector, has been ranked second best amongst all the RERA authorities across the country. The ranking is based on Himachal RERA’s effectiveness in executing its orders by instituting execution proceedings within one and a half year of its inception. The main objective of the HP RERA is to regulate and promote the real estate sector and ensure that sale of plots, apartments or buildings is done in an efficient and transparent manner. The primary objective is to protect the interest of home buyers in the state. About 38 new real estate projects and 52 agents were registered with the authority within a short period. The authority has decided a large number of cases by hearing the parties online without calling them to visit its office in view of Covid restrictions. All the hearings of complaints are being conducted virtually and the parties are not required to physically visit the RERA office which makes it more convenient for the stakeholders to pursue their cases. More than 260 virtual hearings have been conducted. In these cases, an amount of Rs 6. 55 crores was ordered to be refunded to the house allottees. Out of this sum, about Rs 76 lakhs has already been recovered from the promoters. The HP RERA has also taken initiative to settle matters amicably between parties as a result of which Rs 52 lakhs has been refunded. Apart from refund, a penalty of more than Rs 2.27 crores was also imposed on the builders and promoters for contravention of provisions of Real Estate (Regulation and Development) Act, 2016. Till today 14 execution petitions have been filed by allottees and nine execution petitions have been registered suo moto against promoters and builders. A total of Rs 35 lakhs has also been realised as penalty from the builders and promoters. The authority has formulated regulations no. 2, 4 and 5 to facilitate and regulate the filing of quarterly progress reports (QPRs) and annual progress reports (APRs) online. The allottees and home buyers are at liberty to see the progress of homes and apartments through these QPRs. The new website of RERA is under process of development through the NIC. Source: The Tribune HIMACHAL PRADESH

Realty prospers in Tier-II cities as interest surges post the pandemic

8/20/2021 12:19:00 PM

The Tier-II cities tale resurged after a long period when interest in real estate investment was concentrated mainly in the larger cities. The rejuvenation is taking place as many of these cities are witnessing increased economic activity and infrastructure development, reducing outward migration to metros; this is a positive trend that will result in a more equally distributed real estate market, easing pressure on larger cities. The development in these places is taking place in urban-centric ways to attract young buyers and renters yearning for a better lifestyle – a metro lifestyle. These resource-rich cities have remained virtually untouched for a long time as the country’s big developers flocked only to the metro cities. But, the pandemic has prompted real estate titans to rethink their plans and shift their focus away from metros. By 2030, India would have 104 Tier II cities and 155 Tier I cities. The figure alone foreshadows future Tier-II city development. Finally, improved economic growth, infrastructural development, and the benefits of lower real estate prices and a reduced cost of living are all driving up residential demand in these places. People would want to have all of the modern conveniences in one location, particularly in the aftermath of COVID-19, such as upscale markets, colleges, hospitals, and entertainment venues. Major developers are already coming to these ‘prime’ cities from all across the country. The present housing market favours features that meet health and safety issues, and this is addressed by reputable developers, which provide inhabitants with a controlled living environment. Cost-effective housing, a dearth of well-organized living options, and the migration of working professionals, among other things, are reigniting demand in places such as Chandigarh and Zirakpur. With interest rates on home loans at historic lows and government incentives for home purchasers, a surge in demand seems inevitable. Furthermore, under the present administration, many of these cities are undergoing significant infrastructure deployment. Indeed, supply and demand are frequently inversely proportional; not all tier 2 and tier 3 cities are performing equally well. To put it another way, cities that are doing well economically would also attract more migrants who will require rental homes. Both investors and end-users will have a wide range of options from which to choose, allowing them to fine-tune their final choice based on the location, amenities, and ticket sizes. End-users can purchase properties in their home cities – or, in the case of NRIs, in their cities of origin. Premium home projects in Tier-II cities provide nicely spaced and efficient larger apartments. Beautifully constructed independent floors in Zirakpur’s PR 7 Airport Road provide near proximity to all major necessities and projected accessibility through 200 feet wide road. People are investing in properties along PR7 Airport Road near Zirakpur because of the possibility of large profits and that these properties provide easy commuting to the surrounding locations. NRIs and Punjab, Haryana, Jammu, and Himachal residents are investing in the newly constructed route that connects Chandigarh, Zirakpur, Mohali, and, in time, Panchkula. The availability of properties in Zirakpur near Airport Road has offered NRIs the opportunity to expect significant returns on their investment now that Chandigarh is on the map for them. It also provides good access to important locations, proximity to tourist sites, and high quality of life, making it a popular spot to buy/invest. Furthermore, property investment is secure since consumers will earn returns on their capital, whether through rental or capital appreciation; short-term capital appreciation is expected to range between 10% and 12%. In fact, because of the expected strong footfall from the mid-segment to the high-end, numerous foreign brands in commercial enterprises are making their presence felt in the area. As a result, real estate value in such neighbourhoods in Tier-II cities will skyrocket as more developers and investors are flocking to these burgeoning metropolises. Source: Financial Express INDIA

Allow freehold conversion of industrial plots: Chandigarh administration to centre

8/19/2021 11:31:00 AM

CHANDIGARH: The UT administration has written to the ministry of home affairs (MHA) for giving in-principle nod for conversion of leasehold properties into freehold in commercial and Industrial Area, phases I and II, a long-pending demand of industrialists. UT adviser Dharam Pal has recently met MHA officials and made the demand. In the coming days there will be a detailed meeting between the ministry and UT officials. Last year before the coronavirus lockdown was enforced, the matter was discussed in a meeting between UT officials and members of Industrial Advisory Committee of Chandigarh. The UT had last converted leasehold plots into freehold in 1983 in commercial category. The matter was also taken up by MP Kirron Kher with the MHA and ministry of urban development. Recently, the administration had even conducted a survey in Industrial Area for checking leasehold plots. The administration had also sought a report on violations in industrial plots in Industrial Area. Industrial Area was set up in the 1970s The administration had set up phases I and II of Industrial Area during the 1970s on an area measuring 147 acres. The plots are governed by zoning and architectural control, which were prepared as per the conditions prevailing at that time. There are1,884 plots in both phases, of which 700 are 1 kanal and above, while there are 443 and180 plots measuring10 and15 marla, respectively. There are as many as 381 plots of 5 marla. Certain need-based changes in architectural controls in line with modern day industrial requirements was allowed. The UT had even allowed cycle stands for purposes such as storage of raw material and industrial functions. UT had stated that in the wake of thefts in industrial areas, partial covering of central courtyard with poly carbonate sheets was allowed. Source: ET Realty CHANDIGARH

Construction of 16,488 houses approved under Pradhan Mantri Awas Yojana-Urban

8/18/2021 1:12:00 PM

Construction of 16,488 houses have been approved under Pradhan Mantri Awas Yojana-Urban (PMAY-U) at the 55th meeting of Central Sanctioning and Monitoring Committee (CSMC). The houses are proposed to be constructed under Beneficiary-Led Construction (BLC) and Affordable Housing in Partnership (AHP) verticals of PMAY-U. “The demand for sanction has saturated in all States/UTs and work should be done expeditiously towards completing all the projects within stipulated time,” said Durga Shanker Mishra, Secretary, MoHUA while chairing the meeting. Construction of PMAY-U houses is in various stages. With this, the total number of sanctioned houses under PMAY-U is now 113.06 Lakh; of which 85.65 Lakh have been grounded for construction and more than 51 Lakh have been completed and delivered to the beneficiaries. The total investment under the mission is Rs 7.39 lakh crore with a central assistance of Rs 1.82 lakh crore. So far, Rs 1,06,390 crore of funds have already been released under the mission. The approval for proposals under Model-2 of Affordable Rental Housing Complexes (ARHCs) was also reviewed by Secretary, MoHUA, with 5 states - Tamil Nadu, Chhattisgarh, Assam, Uttar Pradesh and Gujarat. A total of 59,350 units, including single bedroom/double bedroom units and dormitory beds, have been approved for urban migrants/ poor, involving a Technology Innovation Grant (TIG) of over Rs 135 crore. ARHCs, a sub-scheme under PMAY-U, provides ease of living to urban migrants/poor in industrial sector as well as in non-formal urban economy to get access to dignified affordable rental housing close to their workplace. With respect to Light House Projects (LHPs), Secretary, MoHUA, said that the States/ UTs should encourage registration of stakeholders as Technograhis in large numbers so that they get to learn about globally innovative technologies and adapt their use in Indian context across the nation. Source: The Economic Times India