Punjab budget 2022-23: Mohali to get another medical institute

6/28/2022 11:58:00 AM

In a major health-infrastructure boost for Mohali, the AAP-led Punjab government in its maiden budget on Monday announced another super-specialty medical institute for the district. Finance minister Harpal Singh Cheema, while presenting the Punjab budget, also said the Punjab government aimed to make Mohali a hub of industry and information technology (IT). As announced, the Punjab government will set up the state-of-the-art “Punjab Institute of Liver and Biliary Sciences” at Mohali. The super-specialty hospital will be a dedicated centre of excellence for the diagnosis and management of liver and biliary diseases, and to provide advanced training and research in the field of hepato-biliary sciences. This will be the second government medical institute in Mohali after Dr BR Ambedkar State Institute of Medical Science in Phase 6. Affiliated with Baba Farid University of Health Sciences, Faridkot, the medical college was set up during the previous Congress government’s regime in the building of the existing Mohali civil hospital. The first MBBS batch with 100 seats started in May this year, but the AAP-led Punjab government is now working to relocate the medical college. To make the district an IT hub, the government proposed to set up a financial technology (Fintech) City near Mohali, where all facilities will be provided to encourage private participation in areas like financial technology, block-chain technology and artificial intelligence. Besides, to develop Punjab as an industrial hub, the government will be acquiring around 490 acres in Mohali to set up industries. The budget also focused on increasing security and safety of common people. To step up the surveillance, the government will install CCTV cameras across the district at a cost of ₹5 crore. The government has also identified 17.5 acres at Kurara village to construct a modern District Jail in Mohali. For this, initial funds of ₹10 crore will be proposed in the 2022-23 budget. For providing welfare services to the Scheduled Caste people, the government will set up Dr BR Ambdekar Bhawan at Mohali, which will house all offices under one roof. An old-age home will also be set up in the district for ex-servicemen. Apart from this, the government plans to set up a Jal Bhawan at a cost of ₹10 crore to strengthen the repair and maintenance of infrastructure of water supply schemes. Source: Hindustan Times INDIA

Uttar Pradesh govt waives stamp duty if property transferred within family

6/17/2022 11:30:00 AM

The Uttar Pradesh government has decided to do away with stamp registration duty in instances where property is being transferred to family members. A 7% stamp duty is being levied on such transactions currently. The registry will now be done for Rs 5,000 with an additional processing fee of Rs 1,000. The proposal states that if property is being transferred to parents, spouse, children, daughter in-law, son in-law, siblings and grandchildren, then a stamp registration duty of only Rs 6,000 has to be paid against 7% of the cost of the property. “Earlier, as the owner of a property, if I wanted to transfer it to my child or another close relative, I could only either transfer it or sell it. In case of transfer before my death, even as there was no exchange of money and the same people continued to reside in the house, a high rate of stamp duty was being charged which prohibited people from dividing property or settling ownership before one’s death. This new rule resolves that issue,” Minister for stamps and registration Ravindra Jaiswal told TOI. Because of the high cost of registration, families often use power of attorney to transfer properties, which was leading to a huge financial loss for the government, a senior government official told TOI. He explained, for transferring a property worth Rs 50 lakh, stamp registration would cost about Rs 4.20 lakh. The power of attorney, on the other hand, costs only about Rs 100. To avoid the cost of registry, families were resorting to cheaper power of attorney. Now, when registration is available at such a low cost, people would prefer to settle property issues properly rather than rely on power of attorney. This move would actually bring in revenue for the government, he added. Source: The Economic Times INDIA

Jaipur, Chandigarh to come closer: Here’s why it’s good news for delhi

6/14/2022 1:51:00 PM

From this week, the travel time between Jaipur and Chandigarh will reduce by at least three hours and travelling from southern parts of Haryana such as Mahendragarh, Jind and Narnaul to the state capital Chandigarh will take barely two-three hours as the NHAI is set to open a 227km new-alignment and greenfield link on this corridor. The new six-lane access-controlled highway will also reduce the burden of thousands of heavy and polluting vehicles on the arterial roads of Delhi and NCR, which otherwise pass through this region for inter-state travel. The new highway stretch also shows how the traffic coming from Jaipur side to Chandigarh and beyond can use it as a bypass for the entire NCR. Currently, vehicles need to either pass through Delhi or take the Western Peripheral Expressway to bypass the national capital. Similarly, , the traffic coming from Chandigarh side towards Jaipur and Mumbai can use this stretch for faster travel without entering the NCR. Officials said the 340km Trans-Haryana highway was planned to decongest the National Highways linking Delhi, which are getting clogged, and also to accelerate economic activities in relatively backward areas of Haryana. TOI travelled on the greenfield highway stretch on Sunday. “This greenfield link, which is a part of the Ambala-Kotputli Economic Corridor, has reduced the distance between Jaipur a and Chandigarh by 50km. The Trans-Haryana Highway project from Panchkula to Kotputli will open up economic activities across the backward districts of south Haryana. Currently, you see all developments only along the Delhi- Chandigarh and and Delhi-Jaipur stretches,” said a senior central government official. The economic corridor comprises four road projects. While the first stretch of 39km of existing NH from Ambala to Ismailabad has been upgraded, the NHAI has built the 227 km greenfield link between Ismailabad and Narnaul Bypass. The last leg of 44km of the existing NH between Narnaul Bypass and Paniyala Mod near Kotputli has been upgraded. Officials said all the works have been completed without time overrun and the stretch has got the best facilities for commuters. The NHAI has bid out six wayside amenities for commuters and these complexes on both sides of the NH will have restaurants, fuel stations, vehicle charging points and immediate trauma care facilities. “We have used anti-glare in the median of the road to in the median of the road to prevent high-beam light impacting vehicles coming from other directions. For every 30km, we have a crane, ambulance and patrolling vehicle. The video incident detection system is already operational to deal with any emergency,” said an official involved in the project. Source: Times of India INDIA

Punjab CM Bhagwant Mann approves Aerotropolis township in Mohali

6/8/2022 11:08:00 AM

Punjab chief minister (CM) Bhagwant Mann on Monday gave a go-ahead for setting up an ultra-modern township “Aerotropolis”, the seventh independent township in the Mohali master plan. A decision to this effect was taken in a meeting of the housing and urban development department, chaired by the CM here. The 1,653-acre township is an extension of GMADA’s Aerocity and will comprise both residential and commercial spaces. Situated in the vicinity of Chandigarh International Airport, it will come up on both sides of the Zirakpur-Banur road. There are around 8,500 residential plots, ranging from 100 square yards to 2,000 square yards. GMADA will be developing four pockets, A, B, C, and D. According to the CM, the proposed township will provide affordable housing facilities to the people tricity. He asked the officers of urban development department and Greater Mohali Area Development Authority (GMADA) to give their proposal. He added that Mohali has the best road network, air and rail connectivity, so a proposed township in its vicinity has a huge potential of growth and progress. He also asked the officers to explore the feasibility of shifting the upcoming medical college in Mohali on a new stretch of land. A senior GMADA official, who is associated with the project, said, “We are launching the scheme in May this year at a cost of ₹33,000 per square yard,” he said. The official further said, “GMADA has already floated tenders for construction of outer roads and even the process of cutting the trees is on.” GMADA had started the process of land acquisition for Aerotropolis in May 2017. Of 1,653 acres, owners of 1,456 acres have applied for land pooling. Through the land pooling scheme, owners will be provided residential or commercial plots instead of monetary compensation in lieu of their land. Source: Hindustan Times INDIA

Rentals in major Indian cities go up by 10%–20%

6/1/2022 1:46:00 PM

Rentals in major Indian cities have gone up by 10%–20% as companies have started pushing hybrid work arrangements and schools have opened up in most urban centers, say industry experts. Since January, the rental housing market in big cities has started to get back on its feet. This is because companies are starting to use hybrid work arrangements and schools are opening in big cities. "The residential rental market has, however, shown a steady increase in demand over the last two quarters as work from home culture is returning to near normal. The real estate industry witnessed a sharp rise in sales and is now showing amazing signs of recovery in the rental segment too," said Samir Arora, president, National Association of Realtors India. Residential property rentals in major cities such as Bengaluru, Chennai, Delhi-NCR, and Mumbai dropped 10-20% immediately after the pandemic began. However, as employees return to their jobs, the situation is beginning to change. "“UHNIs are actively looking to buy a new home in 2022 due to an increase in their wealth. We are seeing an increase in enquiries and are witnessing increased transactions for good luxury properties,” said Bhavesh Kothari, founder of Property First, a luxury property consulting firm. The residential rental market started to pick up momentum as early as the first quarter of 2022, thanks to a drop in new COVID-19 infections and aggressive immunisation across the country. This will be supported by most companies' plans to open offices from January and scale them up by June. According to the real estate head of IT/ITes firms, roughly half of the workforce is projected to return to workplaces for up to three days a week by the middle of this year, with employees and employers equally interested in returning to the workplace in a hybrid setting. "The industry was badly hit by the pandemic, but there is a huge opportunity for the organised players. Our new bookings have reached the pre-pandemic level, with an average occupancy level of around 60%," said Nikhil Sikri, CEO of the firm (name of the firm pls). The residential market is driven by the salaried population, and a large percentage of tenants in cities like Bengaluru, Hyderabad, Pune and Mumbai belong to sectors such as banking, financial services, insurance, software, and pharmaceuticals. "People looking at investing in residential properties have gone up, with rentals going up, and the market is seeing some stability returning for now. Searches for rental accommodation across the country have gone up acrossthe country from a year earlier," said Ramita Arora, MD (Bengaluru) Cushman and Wakefield. The pandemic outbreak almost brought the real estate rental market to a standstill for some months last year and earlier this year. The residential market has witnessed a sharp recovery in sales momentum and the trend has continued even in Q4FY22 with a good amount of pent-up demand generated over the past 2 years, which is now unlocking. The first quarter of the new year (January–March 2022) has seen quarterly sales attain a four-year high of 78,627 residential units despite the third wave, with all the top markets seeing a rise in the average capital values of residential properties as demand continued to strengthen, mentioned Knight Frank. Source: The Economic Times INDIA

Homebuyers welcome Maharashtra govt’s decision to extend PMAY scheme

5/31/2022 10:50:00 AM

Homebuyers have welcomed the Maharashtra government’s decision to extend its flagship affordable housing scheme known as the Pradhan Mantri Awas Yojana (PMAY Urban). The Central government had last month informed Maharashtra about PMAY-Urban being extended till September 2022, said officials from the Maharashtra Housing and Area Development Authority (MHADA), the nodal agency of executing PMAY in Maharashtra. They hinted that the scheme may be extended until 2024. Relief for buyers Twenty eight-year-old professional Maitrayee Iyer from Mumbai says she plans to own a house in the Mumbai Metropolitan Region (MMR) and plans to avail the benefit under the Credit Linked Subsidy Scheme (CLSS). "I plan to buy a house in Navi Mumbai or somewhere in Kalyan or Dombivali belt for which I plan to avail the CLSS benefit,” said Iyer. Another buyer, 27-year-old Soyal Rawat from Nagpur in Maharashtra said, "I plan to buy a house in the next one year as I have been planning for it since the last few months now. It is good that the PMAY scheme has been extended considering there are decent options for buying homes nearby Nagpur under the PMAY scheme. I plan to avail of a home loan under CLSS." PMAY (Urban) extended until September 2022 in Maharashtra Shivkumar Ade, Chief Engineer of MHADA, confirmed to Moneycontrol that the the PMAY Urban scheme in Maharashtra has been extended until September 2022. According to officials from MHADA, the Central government has granted a preliminary extension until September 2022. "There are chances that the scheme might be extended until 2024, and the Central government might write to us in the coming days.'' Maharashtra government had set a target of constructing 19.40 lakh houses under the PMAY scheme by 2022. According to data provided by MHADA, under the PMAY scheme, up to December, 2021 in all 1,161 projects consisting of 13 lakh dwelling units have been approved of which construction work of 4.86 lakh dwelling units are completed and that of 2.12 lakh dwelling units is in progress. The Maharashtra government's housing department has issued a notification to fast track the approvals of the PMAY projects. "Though the extension time given is less, we need to work towards approving the projects keeping the uniformity and smooth process in mind," the notification said. The notification said an additional force of nine engineers will be stationed at MHADA that will approve the projects from the existing team of around six engineers. As per the current procedure, MHADA is the nodal agency and all the urban local bodies including the municipal corporations and councils after approving proposals of PMAY housing projects, send it to MHADA's PMAY cell, which in turn sends it to the state government's committee for approval. Meanwhile, real estate developers in Mumbai welcomed the extension of PMAY scheme but were of the opinion that high land costs in Mumbai are a challenge. Harshul Savla, managing partner, Suvidha Lifespaces (M Realty), whose company is constructing a compact 1 BHK apartment for ₹1 crore in the eastern suburb Mulund said, "This is a welcome move. However, for a city like Mumbai where the cost of land is high constructing homes under the PMAY scheme is a challenge." "I feel the government should work towards ensuring that metropolitan cities also end up having such schemes of affordable housing being implemented on ground. Currently, I feel PMAY houses are coming up in cities or locations where the land price is relatively low, and there is no demand. This could lead to unsold inventory piling up,” he said. A large PMAY (U) project is coming up in the city limits of Mumbai. It comprises 4,000 apartments. This is being constructed by the MHADA in Goregaon area of western suburb in Mumbai. Private developers have not come up with projects under PMAY (U) owing to high cost of land in the city. The Housing for All by 2022 initiative was launched by the Modi government within five months of assuming office. It’s all about ensuring a home for every Indian by 2022. To boost affordable housing and achieve the vision of Housing for all by 2022, the government (Central and State) have undertaken several initiatives, such as Pradhan Mantri Awas Yojana (PMAY) that aims to build one crore homes in urban and rural India by 2022. With the construction of as many as 20 lakh houses yet to begin, the government is expected to extend the scheme until March 2024. Earlier, 2022 was the deadline for completing construction of houses under this scheme. The Centre has so far sanctioned 1.21 crore houses under the scheme. The Credit Linked Subsidy Scheme for the Middle Income Group (CLSS for MIG) was announced by Prime Minister Narendra Modi on December 31, 2016. It was initially launched for 12 months until December 2017 and covered MIG beneficiaries seeking housing loans for acquisition/ construction of houses (including re-purchase) from banks, housing finance companies and other notified institutions. For the MIG I category, which consists of individuals with an annual income of Rs 6-12 lakh, an interest subsidy of 4 percent is provided on a loan of up to Rs 9 lakh. For the MIG II category, which is made up of individuals with an annual income of Rs 12-18 lakh, an interest subsidy of 3 percent is given on a loan of up to Rs 12 lakh. The benefits are typically in the Rs 2-2.5 lakh range. The carpet area of a housing unit was initially revised to up to 120 sq m and up to 150 sq m for MIG I and MIG II respectively in November, 2017 and further enhanced to up to 160 sq m and up to 200 sq m for MIG I and MIG II, respectively in June, 2018. Source: Money Control INDIA

Punjab CM calls for direct flights from Mohali airport to US, Canada

5/27/2022 11:14:00 AM

Punjab Chief Minister Bhagwant Mann on Monday directed the state civil aviation department to immediately tie up with the Centre for direct flights to countries like the US and Canada from the international airport here. At present, only two international flights are operational from the airport to Dubai and Sharjah. Chairing a meeting to review the functioning of the civil aviation department, Mann said a large number of people from the state are settled in countries like the US, Canada, UK, New Zealand and Australia. This initiative will facilitate the Punjabi diaspora settled abroad to visit their native places in the state in a seamless manner, he said. To give an impetus to the agro and food processing industry in the state, Mann also asked the department to immediately start cargo flights from the international airport, according to an official release. The chief minister said this step will go a long way in giving much-needed boost to the export of food products across the globe and especially in supplementing income of state farmers manifold through this farmer-friendly initiative. Mann also asked the department to immediately convene a meeting with the Haryana civil aviation department for evolving a broad consensus on naming the international airport here as Shaheed-e-Azam Sardar Bhagat Singh International Airport. The CM also underscored the need to set up an international civil enclave at Halwara to be operational at the earliest so that the trade and industrial activities in the vicinity of Ludhiana could get a major boost. Stressing the need to streamline the functioning of the Punjab State Civil Aviation Council (PSCAC), Mann also asked the secretary, civil aviation, to work out modalities for giving preference to the state youth in imparting flying training. This council will be instrumental in providing flying training to the local youth as per international standards, said Mann. Earlier, they had to get flying training from other parts of the country and even abroad by spending huge money but now they would be provided with this facility at affordable rates within their own state, he said. He also asked the department to intensify its efforts for the upgrade of the system for facilitating the flying operations in low visibility conditions, especially during dense fog in winter. Source: Business Standard INDIA

Zirakpur-Panchkula Bypass project back on track

5/26/2022 12:46:00 PM

Hanging fire for nearly nine years, the Zirakpur-Panchkula Bypass project, aimed at decongesting Zirakpur by providing an alternative route to the traffic moving between Ambala and Shimla, is back on track as the National Highways Authority of India (NHAI) has begun the land acquisition process. Also pegged as a ring road, the 200-foot, six-lane road will originate from McDonald’s on the Ambala-Zirakpur highway, pass through Peer Muchalla, Sanoli, Gazipur, Nagla (all Mohali villages), before traversing along Sector 25, Panchkula, and culminating at the T-junction on Panchkula-Kalka highway near Sector 4. An estimated ₹800 crore will be spent on the 17-km project that is expected to be completed by March 2023. An NHAI official, privy to the development said, “NHAI has sent letters to the Greater Mohali Area Development Authority (GMADA) not to issue any Change of Land Use (CLU) for the land earmarked for the project and has also written to the Punjab revenue department to publish a notice under Section 3 of the Land Acquisition Act. A letter has also been sent to the district revenue officer not to conduct any registry in respect of the said land.” The official further said that the land acquisition process will be completed by October this year, following which the road was expected to be readied by March next year. Mohali district revenue officer Gurdev Singh Dham said, “After the NHAI letter, the officials concerned have been told not to register any land in the area, as NHAI has started the land acquisition process.” Work on the project had started in 2013, but came to a grinding halt in February 2014 after some landowners moved court seeking higher compensation. Then, NHAI had to wait for GMADA to transfer around 100 acres for the project. The land was eventually handed over in December 2020. Once the road is complete, the Shimla-bound traffic can take this road to bypass the bottleneck at Zirakpur and join the Shimla highway at the Panchkula end. Similarly, Ambala or Delhi-bound traffic from Shimla can also avoid Zirakpur. The road will also open an alternative route from Panchkula to the Chandigarh International Airport in Mohali, but it will be much longer than the existing route via Chandigarh. However, this stretch will give the option to avoid the Chandigarh and Mohali traffic. Chandigarh Master Plan 2031 also proposes this road to divert the around 1.5 lakh vehicles entering Chandigarh daily from Punjab and Haryana. According to the Master Plan committee, through this road, traffic between Mullanpur and Panchkula, and that from Kansal, Zirakpur and Panchkula not headed for Chandigarh can be diverted and significantly reduce traffic congestion on the arterial roads of Chandigarh — Madhya Marg and Dakshin Marg. Source: Hindustan Times INDIA

The strong comeback and rise of luxury homes

5/25/2022 10:47:00 AM

The luxury real estate market has made a very strong comeback since the onset of the pandemic. There is now a growing demand for larger homes that provide a healthy lifestyle and bring people closer to nature. Moreover, due to the COVID-19 pandemic, this segment of residential homes has evolved from a snobby connotation to a domain of family health and wellness. Customers are now drawn to the resort-like comfort, convenience, and amenities these luxury projects offer and are willing to spend more to be part of them. The impact of COVID-19 on homebuyer preferences was highlighted in a recent CII-ANAROCK Consumer Sentiment Survey. According to the survey, “Cheap housing is the lowest priority for the first time, with more than 34% of respondent home seekers focusing on properties valued between INR 90 lakh and INR 2.5 cr.” The majority of NRI respondents preferred luxury properties with a price range of INR 1.5-2.5 crore. Location, social infrastructure, in-development amenities, and the size of one’s home were significant contributors towards the price brackets that we see gaining traction. In the years preceding the pandemic, the Rs 60 lakh to Rs 1 cr ticket size was growing as the sweet spot in Bengaluru. Following the pandemic, the industry is witnessing strong demand from Grade A players for plots in this price range, as well as luxury homes across segments. Even the 3-4 cr ticket size has seen an excellent offtake over the past two years. A trend not just restricted to Bengaluru but seen across India. Over the past 22 months, consumers have spent relatively more time in their homes due to remote work and remote education. Thus, families are scouting for larger configurations to accommodate more time at home for everyone in the family, full-time resident support staff, and SOHO (small office/home office) options. High-quality projects from Grade A players with features such as business centers, convenience stores, jogging tracks & green spaces, basic medical facilities, and as much of the outside world as possible connected to the projects are in great demand. Buyers have realized the value of well-designed and well-ventilated large homes with access to open spaces and thoughtful amenities. Additionally, investor confidence in real estate has increased, with branded developers now accounting for a larger than ever share of the pie, and buyers regarding them as safe investments. The widespread expectations of the next boom in real estate are also driving investors back into the sector as they expect healthy appreciation in strategic micro-markets like North Bengaluru. The Indian real estate sector bore the weight of the COVID-19 pandemic, and many projected a long period of hardship, particularly for the luxury segment. However, when customers began to gravitate towards luxury homes due to the healthy lifestyle they offer, things began to change, and luxury has now been redefined as a way of living. Three years ago, product designers were trying to make smaller homes to make them affordable. The same designers are now working on designing bigger homes as there is a clear shift in consumer preferences post pandemic. With stock markets in choppy waters for the past few months and expected to stay that way for some time to come due to the international pressures; and with increasing talk & signs of the next boom in real estate, for Grade A players it is now about being able to match the rising demand on all fronts. Overall, a bull run is coming in Indian real estate! Grab that deal while you can. Source: Financial Express INDIA

Residential property prices go up in South India

5/19/2022 11:40:00 AM

Prices for residential properties in South India, including Bangalore, have gone up by 8–10%, and they are likely to keep going up because of rising input costs and disruptions in global supply. The prices of critical raw materials, including steel, cement, aluminium, and PVC, have risen sharply between 30% to 100% during the last year. Realty developers have been having a tough time protecting their margins as rising fuel prices have added to their woes. "Cost increases are inevitable this fiscal year due to inflation and consolidation in the industry. We expect a 10-15% price rise on the future projects and existing ones," said M Murali, Chairman and Managing Director, NSE 0.47 % Ltd. Due to a revival in demand and rising costs, developers are also launching new projects at a premium. "The increase in cost is definitely affecting the project margin, but that will differ from project to project depending on the stage of construction of the project. The price increases are only temporary, and the price should stabilise once the geopolitical issues are resolved.The demand has been robust for residential, and we expect it to remain the same," said Atul Goyal, CFOBrigade Group .According to NSE -2.68 % , housing demand is likely to grow by 5–10%, supported by favourable demographics and urbanisation despite the headwinds. It estimates housing demand rose a solid 33–38% last fiscal, surpassing preCovid-19 levels. But this was on a low base compared to fiscal 2021, when demand had fallen 20-25%. "We expect residential real estate prices to rise 6–10% across the top six cities this fiscal due to a steep rise in material costs and relatively favourable demand-supply dynamics, especially for established developers. Some of them have started hiking prices by 2% per quarter and may continue to do so over the next couple of fiscals to account for rising land prices, "said Aniket Dani, Real estate developers across the country have been seeking the government’s intervention to arrest the increase in the cost of building materials, especially steel and cement. "Investment in the real estate sector in India has grown in recent times, especially in the wake of the pandemic, as real estate was viewed as a safe and tangible investment option amidst the economic volatility. In the last two years, stocks have performed well & also there has been a rise in salaries in the IT sector- both these factors have led to a good flow of investment in real estate since it’s considered the most stable and safest investment option,"said says Bhavesh Kothari, founder of Property First, a luxury property consulting firm. Source: The Economic Times INDIA

Mohali real estate sector bounces back from pandemic slump

5/17/2022 12:09:00 PM

Bruised and battered by the pandemic, the real estate market in tricity is finally beginning to bounce back, with Mohali gaining the most traction. It has come a long way since October 2020 – after the first wave receded – when Greater Mohali Area Development Authority (GMADA) had managed to earn merely ₹417 crore by selling off almost half of its total 113 properties. There was a slight improvement in October 2021 when the regulatory authority earned ₹520 crore through two auctions. But with the virus abating, fortunes have turned. In an auction held in January this year, GMADA pocketed a whopping ₹808 crore by selling nine of its major commercial properties. The district also witnessed a major boost in stamp duty – the fee collected on the registration of properties – in 2021-22 when the earnings stood at ₹1,300 crore. In 2020-21, the earnings from stamp duty were a mere ₹822 crore. Mohali city had the highest collection of ₹614 crore in 2021-22. In 2020-21, the amount was almost half at ₹375 crore. Most sought-after addresses Peripheral areas such as Zirakpur, Kharar, and New Chandigarh have emerged as the tricity’s new property hub. Thanks to GMADA-led IT City and Aero City projects, Airport Road has become the most-sought after address for both investors and home seekers — bids for commercial and residential units here are drawing record amounts. There are around 200 private housing societies in Mohali. Hot properties on Airport road The high value of Airport Road and prospects of good returns are attracting investors not only from Punjab but Chandigarh, Himachal Pradesh, Haryana, and NCR region too. In the auction held in January this year, a commercial site measuring six acres in Aerocity went for ₹281 crore against the reserve price of ₹207 crore, which means the cost of an acre was around ₹47 crore. A group housing site, measuring 12.60 acres, in Sector 67, went for ₹294 crore against the reserve price of ₹283 crore. In the auction held in October last year, five acres of a commercial site in Aerocity went for ₹192 crore against the reserve price of ₹152 crore. Also, a 4.6-acre site for a housing project in Sector 77 on Airport Road went for ₹100 crore against the reserve price of ₹68 crore. The demand is soaring despite the hike in prices. A three-bedroom flat, which was priced at ₹60 to 65 lakh during the peak of pandemic, now costs ₹85-90 lakh. Builders are optimistic too as home loan interests are at the lowest in nearly two decades. They foresee a move from rentals to house ownership fuelling the demand. Builders say buyer queries are increasing and end-users are looking for ready-to-move properties. The ₹20,000 crore fund created by the Centre for real estate projects has helped boost the sector. Pandemic effect The pandemic brought about a major change in people’s money habits. Instead of saving, they are now in investment mode. Besides, they are spending more time at home. Also, people living on rent started aspiring to have their own property. Harish Gupta, president, Zirakpur builders association NCR buyers Mohali is seeing a real estate boom and as per the trend, most investors from NCR are eyeing Airport Road projects. Even though the prices are going up, investors are enthusiastic. During the peak of pandemic, the cost of the 2 BHK on Airport Road was ₹45-50 lakh, now it is ₹60- 65 lakh. Amit Mittal, managing director, Green Lotus Utsav, residential project on Airport Road Investment frenzy The demand for both commercial and residential properties has gone up after the pandemic as people believe that investing in property will ensure the best returns. Despite the rates going up, people are investing their money in property, especially in areas under GMADA LC Mittal, director, Motia Group, residential and commercial project, Airport road Up-phase in market The real estate sector has bounced back with huge sales constantly being reported in the post-Covid era. After a decade-long slump in the market, the sector is now entering a 3-5 year up phase, where the demand is robust even with increasing prices and raw material costs. Tier-2 cities are witnessing a bigger boost due to reverse migration. Prateek Mittal, executive director, Sushma Buildtech, residential and commercial projects in Zirkapur and Airport road Source: Hindustan Times INDIA

Government to set up panel on RERA non-compliance

5/12/2022 12:39:00 PM

India has decided to assess the reasons for non-compliance of orders issued by various chapters of the Real Estate Regulatory Authority (Rera) that was set up to ensure protection to troubled homebuyers. A committee including homebuyers and realty developers will be formed to examine different orders that have been passed by the state-specific authorities, but have not been complied with yet. The government may also seek state governments to provide their inputs in this matter with an objective of making Rera more effective and offering an impactful recourse mechanism to homebuyers. The decision to this effect was taken in the recent meeting of the Central Advisory Council (CAC). While Rera authorities are issuing orders for compensation and interest to homebbuyers by the developers, many of these orders are not being complied with. Homebuyers and their associations have been raising concerns over non-enforcement of these orders, and the authorities have been facing criticism. "Despite the orders getting served, homebuyers are left in the lurch as the enforcement of these orders is taking unreasonable time. The Housing Minister himself suggested this move to form a committee to study study the procedure followed by states that rank high in enforcement of RERA orders," said Abhay Upadhyay, president, Forum for People's Collective Efforts. He said this will lead to a template for other states to follow so that RERA orders see faster execution The government has also decided to form a committee comprising government representatives, homebuyers and developers to take up the issue of implementation of RERA in West Bengal and Telangana. Source: ET Realty INDIA

NCR office leasing set to pick up on strong demand

5/10/2022 11:02:00 AM

Hiring by the IT and business process management sector, global multinationals setting up global capability centres (GCCs) along with professional services and e-commerce firms will push the demand for office space leasing in NCR, said top property consultants. Nearly, a third of the quarter's leasing (January-March) consisted of large transactions(above 100,000 sq ft) across micro-markets in Gurugram and Noida with some occupiers also locking hard options for future expansion plans, as per consultants. "While a third of the deals were one lakh sq. ft. and above, many multinationals have also taken space in the bracket of 50,000 sq ft to 100,000 sq. ft. There is a strong demand for Grade A buildings as employee wellness remained a high priority for corporates, who drove leasing momentum in wellmanaged and quality buildings," said Vibhor Jain, managing director - North India at Cushman & Wakefield. Net absorption for Q1 was recorded at 1.3 msf, a slight reduction of 7% on a quarter on quarter comparison.Strong demand with large space take-up by even new-age firms is likely to keep Delhi NCR's office space on a strong footing in the quarters ahead. "IT and Business Process Management (ITBPM) sector is well placed to hire five million employees across the country in the next 5 years. Cumulatively, it is estimated that they will end up taking 80-120 million sq ft in Grade A office buildings including co-working spaces across the country," said Shweta Sawhney, MD, Delhi-NCR, Savills India. Fresh leasing, including expansion and consolidation by occupiers, constituted 91% share of the quarter's leasing. Pre-commitments formed 7% of quarterly leasing. "Cities which will lead this absorption are Delhi NCR, Bangalore and Hyderabad. Across the consulting sector as well, there is additional employment likely of 80k-100k hires by FY23. All these factors point towards exciting times ahead for commercial real estate and demand will remain robust across the key markets despite hybrid working scenarios," said Shweta Sawhney. Source: The Economic Times INDIA

Real estate in India set to bounce back stronger in FY 23

5/5/2022 12:06:00 PM

Strong and positive momentums are expected to continue prevailing in Indian real estate in FY 23, backed by the solid structural foundation, gain in demand, and lowered home loan rates. By all means, FY 23 will be the fiscal year the industry has been hoping for long. The upswing in the market will also stem from a favorable economic outlook. Most of the rating agencies have estimated the growth of India in the comfortable range of 8-9%. The surge in commercial activities alongside a rise in the job market and income levels will naturally translate into increased housing demand. Market bounce back is also the progression of the gradual recovery observed in the past 6-9 months. After softened demand due to the pandemic, the real estate market has been on an upswing since the second half of the previous year. The iterations of repo and reverse rate cuts by the government resulted in liquidity injection, thereby helping in accelerated growth. The developer fraternity also played its part by introducing a host of attractive schemes, luring the fence-sitters, and giving the market a positive push. In FY 23, the growth juggernaut will continue. Interestingly real estate in Tier 2 and 3 markets will also climb fast. Sustained infrastructure investments, increased connectivity, and better job opportunities will be fuelling real estate in smaller cities and towns in India. Already metro and suburban transit systems are taking shape in cities such as Lucknow, Kanpur, Agra, Patna, Cochin, etc, which will boost real estate demand. Under UDAN new airports are built, which will foster regional economic growth and help the realty sector considerably. After taking a backseat over the past 2 years, office leasing will see incremental growth, especially from tech, IT, and retail companies. Already large tech companies have closed big- ticket size office lease deals. More will follow. E-commerce and 3rd party logistic enterprises will continue to pour money into warehousing, making it one of the fastest-growing categories in commercial real estate. Investments in data centers will also soar. Big tech giants such as Google and Amazon are racking up investments in the Indian data center space, lured by its long-term potential. Pick-Up in Investment Activities Real estate has been mostly an end-user-driven market over the past 3-4 years. However, the trends are now shifting and it is once again featuring on the investor radar. Real estate is a smart investment option, provided one has a mid to long-term horizon in mind. Moreover, it has strong aspirational value. Real estate can also give a stream of constant income in the form of monthly rentals. Both large and small investors in India are once again realizing the benefits of investing in real estate, especially at a time when cautious investment remains part of the general lexicon. Moreover, apart from the stock market, fragility has persisted in other financial assets, which makes real estate a viable alternative. For investors, who have a long haul and are not looking out for quick returns, real estate will be an exciting option to explore in FY 23. Source: Financial Express INDIA

India’s data center capacity to top 1.3 GW, grow 2.4 times by 2024

4/28/2022 1:48:00 PM

Capacity expansion by existing and new players in the data centre industry is expected to result in an additional capacity of 804 MW during 2022-2024, translating into 34% compounded annual growth rate for the period, showed a JLL India study. Mumbai and Chennai are expected to witness higher growth owing to their infrastructure advantages. As a result, both cities will account for 68% of the total capacity in 2024. The addition of a new cable landing that would connect these cities, going forward, would also lead to higher bandwidth. However, landlocked locations like NCR-Delhi would also see growth in capacity addition due to government-led digital initiatives and data demand. Proactive state policies, meanwhile, are creating Hyderabad into an emerging location for hyperscale cloud players. A large share of this new data center supply has been pre-committed by hyperscale and is expected to become operational in the next three years. The Indian data center industry’s capacity addition between 2022 and 2024 would result in the creation of 9.7 million sq ft of real estate space for this new capacity across India’s leading cities. Since data center construction is driven by the design specifications of each operator, the nature of this capacity addition would differ across DC hubs in the country. However, DC hubs in India are most competitive in terms of land, construction, mechanical, electrical and plumbing costs. “Owing to its high share of capacity addition, Mumbai is expected to create demand for 6.18 million sq ft, going forward. The comparatively high land cost of the city vis-à-vis other data center hubs will lead to a higher outlay of $3.3 billion for setting up data centres in the city. As Chennai has similar advantages, it would follow with 2.03 million sq ft of real estate space addition at an investment of $1 billion,” said Rachit Mohan, Head, Data Centre Advisory, India, JLL. The strong demand growth has been matched by a supply addition of 119 MW during the year, registering a growth of 23% over 2020. Mumbai, Pune, and Chennai together accounted for 83% of the total supply during 2021. Data center operators have been following a land banking strategy to provide scalable and seamless options for hyperscale cloud players. In the Mumbai region, Navi Mumbai has emerged as a preferred location due to its high-capacity power station, developed territorial cable connectivity, and availability of land at a lower cost than the mainland. Hyperscale cloud players have been exploring various availability zones to ensure seamless operations. The expected growth in demand is likely to lead to strong capacity addition during 2022-2024. The demand momentum for the data center that picked up during 2020 has gained pace, with an estimated absorption of 116 MW during 2021, a 14% yearon-year increase. Hyperscale cloud players accounted for 69% of thisabsorption, as pre-committed capacities were delivered during the year. Hyperscale cloud allows businesses to expand their IT infrastructure based on its demand. Mumbai accounted for 53% of the total absorption as the preferred location of leading cloud players. The sector’s three basic conditions of power supply, connectivity and customerbase are amply provided by the city, making it the default location of data center operators. Pune accounted for 21% of the total absorption, followed by Chennai at 15%. The need to diversify across regions, as well as the emergence of strategic locations and favorable regulatory policies, is leading to an expansion trend across India’s key data center hubs. Source: The Economic Times INDIA

Indian real estate market to grow to Rs 65,000 crore by 2040: CIRIL

4/27/2022 12:58:00 PM

Consultancy firm CIRIL said in a report that the Indian real estate (RE) market is poised to touch Rs 65,000 crore by 2024 and by 2025, this sector is expected to contribute to 13 per cent of the country's GDP. In 2019, the size of the RE market was Rs 12,000 crore, according to the report. Despite fears related to the Omicron crisis, the market in 2022 looked bullish while demand is accelerating across all categories, the report added. Regarding commercial RE, the report said offices with enhanced technology driven ecosystem in workplace will be in demand and developers are investing in technology and digital channels to reach out to the consumers. Co-working space has emerged as a sustainable business model for corporates who want to remain flexible on cost components on the face of a possible resurgence ofCOVID caseloads, the report said. India's retail industry is projected to grow at a slower pace of nine per cent during the period 2021 to 2030 and is likely to touch USD 1400 billion by 2026. CIRIL said that Indians are taking to online retail in a big way, and by 2024, the country's e-commerce industry is likely to touch USD 111 billion, driven by mobile shopping. The warehousing RE sector will continue to grow as e-commerce has gained traction, and the transactions in this sector are projected to grow at a compounded annual growth rate (CAGR) of 20 per cent in FY 2023, the report stated. The e-commerce part in the total warehousing transactions will increase to 36 per cent in FY 2023. CIRIL said according to Department for Promotion of Industry and Internal Trade (DPIIT), FDI equity inflow stood at USD 547.2 billion between April 2000 and June 2021, indicating that the government's efforts to improve ease of doing business and relaxing FDI norms have yielded results. Foreign portfolio investment (FPI) has been one of the largest drivers of India's financial markets, while institutional investors are expected to continue investing in the Indian RE with more funds, the report said. Source: The Economic Times INDIA

Share of luxury property in total sale jumps to 12% in Q1 2022: Report

4/26/2022 3:08:00 PM

The sale and supply of luxury homes reached a new high in Q1 2022, with the highest sales and supply in three years driven by pent-up demand, benign interest rates, and stable prices, as per a report by Anarock property consultant. Luxury property accounted for 12% of overall sales in Q1 2022, up from 7% in Q1 2019, as ultra-high-net-worth individuals hurried to purchase larger homes to accommodate the need for more room during the pandemic. "The new supply in the luxury category in Q1 2022 is the highest in a given quarter in the last three years. As per Anarock Research, as many as 13,330 units were launched in the luxury category across the top 7 cities. The preceding quarter of Q4 2021 saw the second highest supply in the category of approximately 9,350 units, and Q1 2020 saw only 4040 new units, "said Anuj Puri, Chairman, Anarock Group. "Luxury homes are no more about brick and mortar but the overall living experience, an exclusive address that is complimented with an unmatched lifestyle, provided within the privacy and comfort of one’s home. One of the most significant trends this year has been an influx of demand for homes in the luxury and superluxury segments, "said Aakash Ohri, Group Executive Director and Chief Business Officer, DLF Home Developers Ltd. Earlier this year, DLF Limited, India’s largest listed real estate company, announced sales worth Rs. 1500 crore from the first phase of its highly anticipated luxury residential project in New Delhi, ONE Midtown. Experts say that in the luxury segment, demand started picking up significantly, right after the first wave of induced lockdown ended. "The pandemic has amplified the need and desire for bigger homes, with private lawns and open space, exclusive rooms for work and study from home, entertainment and lifestyle requirements like a gym and a swimming pool," said Akash Puri, Director-International, India Sotheby’s International Realty. Sotheby’s International Realty India, which deals in luxury properties, clocked Y-o-Y growth of more than 30% consecutively for the last two years—2020 and 2021 and it expects to close this year with even better sales numbers. "There is a rising need for luxury housing in the north-south region as compared to the eastern and western parts of India. FY21-22 was a year of new innovations, allowing us to push the envelope and focus more on digital performance within opulent, functional homes," said Sanjay Dutt, MD & CEO, Tata Realty and Infrastructure Ltd. New launch data by ANAROCK indicates the increased new supply in the luxury segment pricing and that there has been a 230% jump in Q1 2022 as against the pre-pandemic period of Q1 2020. Developers say that most of the buyers are HNIs who are looking for a lifestyle upgrade. "Rising demand for all kinds of luxury real estate, like luxury and ultra-luxury condominiums and villas, has taken a lion’s share of the market and sparked a desire for high-end amenities, wide-open spaces with a serene and peaceful environment," said Amarjit Bakshi, CMD, Central Park. Source: The Economic Times INDIA

Homebuying demand in residential market showing increase: Knight Frank – NAREDCO Real Estate Sentiment Index

4/22/2022 1:05:00 PM

The flagship survey conducted quarterly by Knight Frank India and National Real Estate Development Council (NAREDCO) noted that Current Sentiment soared to a new high of 68 – indicating that most stake holders experienced positive developments in their businesses in the last 6 months including the period of the survey. Importantly, the Future Sentiment score recorded at 75 was at a historical best. This score indicates the expectations of the developers/investors for the next six months from the time of the survey. The Current Sentiment score increased from 65 in Q4 2021 to 68 in Q1 2022 as the last six months remained positive for growth for most real estate stake holders. The Q1 2022’s survey findings present a very optimistic stakeholder outlook for the residential market in the next six months on the back of strong homebuying demand. 80% of the survey respondents expect residential sales to increase in the next six months. This is a significant improvement over Q4 2021, when 72% of the respondents had a similar view. 78% of the survey respondents in the current quarter expect residential prices to increase in the next six months. During Q4 2021, only 34% of the survey respondents had a similar take. Stakeholders’ sentiments about residential launches also remained upbeat for the next six months. 80% of the stakeholders expect residential supply to increase in the next six months. The Future Sentiment score, which gauges the stakeholders’ expectations for the next six months, also soared to 75 in Q1 2022 in view of a resolute economic outlook and continued demand for real estate space across asset classes. With the removal of all COVID-19 protocols by the Indian government, there is a further boost in sentiments. South Zone remains the most optimistic market with the highest score across zones in the current quarter. The Future Sentiment Score for South has inched up from 64 in Q4 2021 to 66 in Q1 2022. Compared to Q4 2021, the Future Sentiment score for the North Zone has inched up substantially with an increase from 57 in Q4 2021 to 65 in Q1 2022 as key markets in the North Zone recorded good traction in both office and residential sectors. The other zones – West and East – maintained their optimistic position with a score of 57 each. Despite a marginal fall in East, where the score altered from 58 in Q4 2021 to 57 in Q1 2022, both these regions remained in the optimistic territory. As the Indian economy navigated the third wave whilst being faced by uncertainty of a war in Europe, the real estate sector momentum remained unabated, especially of the residential segment. Commercial real estate segments also showed growth after the hiatus of the pandemic. While the sentiments have been positive for the two previous quarters, this score is one of the best reached in the history of the survey. When asked on their Economic Outlook for India, 85% of respondents in Q1 2022 expect the overall economic momentum to improve over the next six months. In terms of Credit Availability Outlook, 66% of the respondents expect the funding availability to increase over the next six months, while 29% expect it to remain the same during the period. Shishir Baijal, Chairman and Managing Director, Knight Frank India said, “The growth in the residential market has been impressive, elevating the sentiments of the entire sector. As most companies start calling their staff back to work, office space demand has also been growing steadily. The buoyancy in stakeholders’ take on the sector reflects positively in both the Current and Future Sentiment Scores. However, geo- political tensions impacting crude oil prices, are leading to a rise in inflation in Indian market, which can impact demand from end users. The scenario is further complicated with supply chain disruptions, rise in input cost and an impending interest rate hike, all of which need to be watched carefully in the near future.” Source: Financial Express INDIA

Chandigarh to install solar plants on houses free of cost

4/20/2022 12:15:00 PM

The city is going to be the first in the country where private players will be roped in for installing rooftop solar plants on private residential buildings free of cost. After witnessing a lukewarm response from city residents, who were not willing to shell out for a rooftop solar plant, the Chandigarh Renewable Energy and Science and Technology Promotion Society (CREST), the nodal agency for the installation of solar photovoltaic (SPV) power plants on rooftops, proposed the Renewable Energy Service Company (RESCO) with a build-operate-transfer (BOT) model. Later, CREST filed a petition before the Joint Electricity Regulatory Commission (JERC) for approval of the business model framework for installation of grid-connected rooftop power projects for domestic consumers by a third party under the RESCO BOT business model as per provisions of the JERC. During a recent hearing in the JERC, the petitioner (CREST) submitted that the issues raised by the UT Electricity Department (respondent) have been addressed and further, the department has agreed to the new business model submitted to the commission for its approval. The Electricity Department submitted that the business model had been agreed to by them. The department has also agreed to the terms and conditions under the Quadripartite Agreement (QPA) except a provision relating to banking of power in the said QPA. The petitioner and the respondent have also submitted that after resolving the issue of banking of power, they would submit the initialised QPA to the commission for its consideration within a week. Debendra Dalai, Chief Executive Officer, CREST, said the UT was expected to soon get approval for the implementation of the business model in the city from the JERC. He said the city was all set to have the RESCO model to be implemented on private residential houses “It is going to be a unique model to give a big boost to solar power generation and Chandigarh will be the first city in the country to implement it,” he said. Under the model, a private company will install solar panels without taking any money from house owners. The owners will have to give only space on the rooftop to the firm and they will get electricity at nearly Rs. 1.50 per unit less than the existing rates for the next nearly 15 years. After the completion of the BOT period, the company will hand over the solar plant to the owner. The firm will recover the cost by selling the energy produced from the plant. All maintenance of the plant will be carried out by the firm during the BOT period, he said, adding that excess power left after utilisation by the house owner will be transferred to the grid. The Ministry of New and Renewable Energy had enhanced the city’s solar power generation target from 69 MW to be achieved by 2022 to 75 MW to be met by August 15, 2023. Till date, the UT has achieved a generation of around 47 MW. Owners to get power for Rs. 1.50 per unit less A private company will install solar panels without taking any money from house owners. The owners will have to give only space on the rooftop to the firm and will get ower at nearly Rs. 1.50 per unit less than the existing rates for the next nearly 15 years. After the completion of the BOT period, the company will hand over the solar plant to the owner. The firm will recover the cost by selling the energy produced from the plant. All maintenance of the plant will be carried out by the firm during the BOT period and excess power left after utilisation by the house owner will be transferred to the grid. Source: Tribune INDIA

PR-7 road becoming an investment hub in Tricity for investment

4/15/2022 12:19:00 PM

The real estate sector has experienced a boom in recent years due to many people investing in the industry. The market dynamics are changing every day. Due to favourable government policies, the real estate sector is coming forward with many high-scale investments which is also contributing to the development of the economy. PR-7 Road of Chandigarh is the primary attraction for investors today. The road brings investors from the realtors and the NRIs of Punjab and Himachal Pradesh. Already connecting Chandigarh to Mohali via Zirakpur, the Airport Road is further aimed at connecting to Panchkula. The Airport road is 200 ft. wide and is capable enough to handle heavy traffic. Apart from offering quick connectivity to major cities, Zirakpur is home to many other facilities like shopping complexes, multi-cuisine food spaces, entertainment opportunities like theatres, etc. The area is expected to have a population of more than 20 lakhs in the coming decade. Having all major facilities, Zirakpur is an investors’ delight and is minting huge returns because of the ever-growing developments in the vicinity. There are various real estate groups coming up with multiple projects in the region that bring huge returns on investment. The resurgence in Tier-II cities is being fueled by increased economic activity and infrastructural development in many of these towns, lowering outward migration to metros and resulting in a more evenly distributed real estate market. Businesses, office spaces, retail stores, and hospitality businesses have various requirements. Spacious spaces surrounded by greenery, located in outstanding city locations with state-of-the-art infrastructure, are perfect for new-age enterprises and entrepreneurs. “PR-7 is not only a realtor’s bastion; it attracts investors and the stakeholders who see a developing zeal in the region. The upcoming projects by developers will strengthen the region’s economy,” said Mr L.C. Mittal, Director of the Motia Group. Motia Group has their project with a combination of an integrated township and a business hub, Royal Business Park, located at the Delhi-Chandigarh National Highway 22. Helmed as one of Punjab’s largest business parks, it will provide customers with all luxurious facilities like hotels, restaurants, in-house parking, well-crafted office spaces, banquets and plenary infrastructural amenities for business growth. It will have all the necessary structural schemes to satisfy the demand for affordable Grade ‘A’ co-working spaces in and around the Tricity area which is dominating the sector nowadays. The presence of great real estate projects and the emergence of the IT/ITEs sector and world-class education and medical facilities are the key reasons for Zirakpur’s growing popularity. Today, the city can brag about having good infrastructure and cutting-edge office campuses, attracting corporate and startups. Another major factor in putting Zirakpur on the real estate map is its continuously improving infrastructure. Source: APN News INDIA

Institutional investments into real estate sector touch $1.1 billion in Q1 2022: Colliers

4/14/2022 12:51:00 PM

Reopening of the economy post the third wave of Covid-19 pandemic and an improvement in investors’ sentiment has led to institutional investments into the real estate sector touching $1.1 billion during Q1 2022, which is double compared ($0.5 billion) to the same period last year, an analysis by Colliers has said. The investment activity during the quarter was driven by some large-sized deals in the office sector, Colliers added. Investments were largely driven by foreign investors that accounted for about 70 percent of the inflows during the quarter. Interestingly, after a drop in 2020, the share of domestic investments has reached 30 percent, almost the same as pre-pandemic levels. This shows a resurgence in the confidence of domestic investors, the analysis said. The top three asset classes in the first quarter of 2022 included office, retail, industrial and logistics with 95 percent share. "Real estate sector has undergone positive structural changes and performance indicators reflect strong come back across residential, office, industrial, logistics sectors, with newer themes around technology and digital clearly emerging. Investors, both domestic and global are appearing bullish on Indian real estate supported by pro-growth government policies with a long-term view to develop and hold assets. From a city level, Mumbai continues to be the market leader with a share of 25 percent in total investment inflows. This shows immense confidence of investors in the sector,” said Piyush Gupta, Managing Director, Capital Markets & Investment Services, Colliers India. The office market has made a comeback in terms of investments, with occupiers continuing to see it as a stable income-accruing asset class. Moreover, the office market is now recovering with Q1 2022 seeing stable vacancies for the first time in two years. The retail sector attracted the second-highest share of investments at 23%, backed by one major transaction. Investment in the retail sector was the highest since the start of the pandemic. Global investors continue to show strong interest in under construction as well as stabilized retail assets, as they are expecting a revival, it said. Industrial and logistics assets received inflows of $0.2 billion, accounting for about 16 percent of total investments. Investor appetite for industrial and logistics assets remained robust backed by strong structural demand from e-commerce and 3PL firms. Investors continued to scout for land parcels for in-city warehouses and in the peripheral locations of larger markets. Heightened investment activity is seen on the back of strong demand for modern industrial and logistics assets coupled with a shortage in supply. “Multi-city deals accounted for 65 percent of the total investments in Q1 2022 as investors laid focus on entering into strategic alliances with leading developers and on acquiring/developing portfolios across multiple cities. We are also seeing the creation of platforms for investment in specific asset classes, especially across the commercial office and industrial asset classes”, said Vimal Nadar, Senior Director and Head of Research, Colliers India. Investments in the residential sector remained muted attracting only $15 million in Q1 2022, just about 1 percent of the total investments. However, Colliers expects investment momentum to increase over the next few quarters as domestics investors remain bullish on the sector and are actively raising funds. The residential sector is witnessing tailwinds amid a significant rebound in sales momentum after a turbulent spell since the NBFC crisis in 2018, followed by the pandemic. In Q1 2022, a major investment group marked the close of an affordable housing fund, one of the largest funds targeted towards residential real estate in India. Investments in data centres continued to grow in Q1 2022 to about $40 million, as global data centre REITs, data centre management firms and hyper scalers continued to invest in India. Chennai is witnessing significant traction in data center development and has the potential to emerge as a key data centre hub in South Asia due to its strategic location as submarine cables landing station. Investment opportunities in data centres are surging, given the huge growth in demand for cloud computing from enterprises, deeper internet penetration, and infrastructure status granted to data centres, the analysis added. Source: Money Control INDIA

Office space leasing grows 97% YoY in Q1 2022: Report

4/12/2022 12:16:00 PM

Office space leasing in India grows 97% Y-o-Y to about 11.4 million sq. ft. in Q1 2022 with Bangalore, Chennai and Delhi-NCR accounting for two-thirds of transaction activity, according to a report by CBRE South Asia. The report said that technology corporates drove leasing with a share of about 34%, followed by BFSI firms (17%), flexible space operators (13%), engineering & manufacturing (12%) and research, consulting & analytics (11%) firms. The report further highlighted that office space take-up was driven by small- (less than 10,000 sq. ft) to medium-sized (10,000-50,000 sq. ft.) transactions with a share of around 84%. Pune and Chennai, followed by Delhi-NCR and Bangalore, dominated large-sized deal closures. Supply witnessed in Q1 2022 was around 9.4 million sq. ft. – a slight dip of around 11% Y-o-Y and 41% Q-o-Q. Bangalore, Hyderabad and Chennai dominated development completions, accounting for a cumulative share of about 70%. Supply was driven by non-SEZ developments with a share of around 83%. “With the government’s evolving COVID-19 protocols and the recovery in office leasing in 2021, we expect the positive momentum to further strengthen in 2022. We continue to witness a pickup in long-term decision-making by occupiers, aided by ‘return-to-work’ strategies, thereby accelerating project completions,” said Anshuman Magazine, Chairman & CEO - India, South-East Asia, Middle East & Africa, CBRE. Renewals, renegotiations, and the addition of flexibility options are likely to be the focus of occupiers in the short term. CBRE expects to see clearer evidence emerging in any corporates’ intended to shift towards hybrid working policies, with several occupiers planning to implement policies allowing office-based working with the option of working remotely. With an increased focus on wellness, user experience and sustainability, occupiers are expected to demand more sophisticated and tech-enhanced real estate offerings. Source: The Economic Times INDIA

Real Estate Sector In India Showing Sharp Recovery, Investors Looking Forward

4/8/2022 3:27:00 PM

The real estate sector in India is showing a sharp recovery in the recent period. According to an ANAROCK Research report, "Quarterly housing sales in Q1 2022 are at an all-time high since 2015 with approximately 99,550 units sold across the top 7 cities." This data shows that it is a 71% yearly rise against approx. 58,290 units were sold previously in Q1 2021. in addition to that, new launches across the top 7 cities have witnessed a 43% yearly increase, from 62,130 units in Q1 2021 to more than 89,150 units in Q1 2022. MMR and NCR are the two most significant areas for the real estate sector in India, which have accounted for more than 48% of the total sales among the top 7 cities. Additionally, NCR is also witnessing an above 114% yearly jump. With this sharp rise in the sector, investors are again gaining confidence and thinking more about investing in housing. The real estate sector in India is showing a sharp recovery in the recent period. According to an ANAROCK Research report, "Quarterly housing sales in Q1 2022 are at an all-time high since 2015 with approximately 99,550 units sold across the top 7 cities." This data shows that it is a 71% yearly rise against approx. 58,290 units were sold previously in Q1 2021. in addition to that, new launches across the top 7 cities have witnessed a 43% yearly increase, from 62,130 units in Q1 2021 to more than 89,150 units in Q1 2022. MMR and NCR are the two most significant areas for the real estate sector in India, which have accounted for more than 48% of the total sales among the top 7 cities. Additionally, NCR is also witnessing an above 114% yearly jump. With this sharp rise in the sector, investors are again gaining confidence and thinking more about investing in housing. Along with new launches, the unsold inventory in the top 7 cities has also seen an approximately 2% yearly decline - from 6.42 lakh units towards Q1 2021-end, to approximately 6.28 lakh units by Q1 2022-end. A similar trend was seen on a quarterly basis. "The bull run in the housing market continued in the first quarter of 2022, with approx. 10% q-o-q and 71% y-o-y growth in sales, thus recording all-time high quarterly sales since 2015. The impact of the third Covid-19 wave was significantly lower than of the preceding two waves. The unrelenting appetite for home-ownership amid the pandemic has coupled with a growing certainty of impending price rises to speed up housing sales velocity," Anuj Puri, Chairman of ANAROCK Group has commented about this growth. During the Russia-Ukraine war, investors were flocking toward commodities like gold. Significantly equities have seen a sharp fall in India. This had worried investors. However, the situation is changing now. The Russian government is being soft about the war. So, the gold rates are staying under pressure. At this moment, investors can start thinking about other investment instruments like real estate. With the sector's sharp recovery, both on a yearly and quarterly basis, it has considerable potential to grow further. Source: Good Returns INDIA

India among the cheapest flexible office locations in world: Report

4/7/2022 12:43:00 PM

Indian metro cities are among the cheapest to operate flexible office, with New York being the world’s most expensive flexible office location, according to a joint report by flexible office specialist, Workthere and international property consultant Savills. New York, San Francisco, Singapore, London and Berlin are among the world’s most expensive office locations, with per seats rental ranging from Rs 60,000 to Rs 72,000. In India, Mumbai ranks as the most expensive flexible office location with Rs 20,420 rental followed by NCR with average rental of Rs 14,759. “India has been witnessing new trends in the flexible workspaces segment. Co-working operators are constantly evolving and relooking at their strategies to gain better investment. As many companies seek a return to the office, employees prefer a hybrid work setup that creates more flexibility,” said Naveen Nandwani, MD, Commercial Advisory & Transactions, Savills India and head of Workthere India. Workthere is a brokerage-backed online listing platform, for flexible, coworking and managed office spaces, across geographies. India has one of the largest office markets in Asia Pacific region. The major demand drivers for office spaces have been the IT/ITeS, BFSI and consulting occupiers. The top operators in India are Awfis, WeWork, CoWrks, Smartworks and Tablespace with over 125,000 total seats. While technology occupiers continue to drive demand; flexible workspaces have gained share and took 13% of the overall office demand of 639.9 mn sq. ft. in 2021. The emergence of India as a start-up powerhouse is also an important contributor to the demand for flexible spaces. They have managed to reinvent their offerings and reposition themselves better suited to today’s dynamic world. Time and distance are important factors indicated by most employees and hence there’s high demand concentration in the suburban and peripheral areas of cities. Flexibility is clearly seen as a benefit for space management. Cheapest Office Locations : India among the cheapest flexible office locations in world: Report “The flexible market is now dominated by high quality spaces because occupiers are focussed on cultivating an updated office strategy around a space employees want to be in, and in an environment that enhances their desired culture,” said Griffin Foley, Northeast Lead, Workthere Americas. Foley added that businesses were seeking to locate in places near subway stations to make the commute more convenient and limit travel times. One of the most mature flexible markets globally, London was now experiencing a strong recovery. “Due to the large number of flex spaces there is a variety of pricing models and quality, meaning the rate of that perceived recovery, when only pricing is taken into account, is slightly below expectations as some operators are willing to drop prices to increase occupancy levels,” said Jack Williamson, head of Workthere UK, Meanwhile, Berlin’s flexible market has limited supply with a vacancy rate of 3.5%. The growth of the flexible market is being driven by science, digital and technology sectors, keeping it buoyant during the Covid-19 pandemic, where the flex market only saw a 1.4% decrease in space during the two years of the pandemic. This growth is set to continue, said Workthere, as Tesla prepares to begin production of electric vehicles from its first European manufacturing plant, located near the city; there is also a plentiful supply of venture capital funding for innovative start-ups. Lisbon, which is among the cheapest flex markets in the rankings - at just $329 per desk per month - was booming since conventional office space is now hard to secure. Lisbon is experiencing an overall office vacancy rate of 7%, and is now one of the most competitive European flexible markets. Source: The Economic Times INDIA

‘Centre’s infrastructure push driving demand for construction machinery’

4/5/2022 11:44:00 AM

The Centre’s infrastructure push has led to a notable growth in demand for construction equipment and related equipment surpassing pre-Covid level demand. Companies engaged in production and supply of earth moving equipment, piling and mining equipment have seen a robust jump in demand over the last three months, especially after the Union Budget, say officials. The construction equipment segment and the commercial vehicle industry are considered to be the barometer of economic activity. Sales of medium and heavy trucks and buses during FY22 by the two biggest CV players — Tata Motors and Ashok Leyland — grew by 51 per cent and 41 per cent respectively. Though it is on a low base, the level of machine utilisation in the past few months has shot up considerably. Back to normal Deepak Shetty, CEO and Managing Director, JCB India, said, “After a challenging two years due to the pandemic, we are seeing business coming back to pre-Covid levels backed by a revival of the business sentiments. Announcements like the Gati Shakti and the institutionalising of NABFID are positive developments. Despite the disruptions, last year was the third best year ever for us.” Kamal Bali, President and Managing Director, Volvo Group, India said, “In the January-March quarter, we saw a sharp uptick in road construction activity, especially from February onwards. Mining industry applications peaked with an increase of over 40 per cent in the last fiscal but supply chain constraints restricted our deliveries.” Volvo’s construction equipment range saw its FY22 volumes hit pre-pandemic levels with a growth of 20 per cent, however, Bali did not share absolute sales numbers for the year. Volvo plans to add additional models for manufacturing in India at its Bangalore facilities in FY23. Demand has been strong for China-headquartered heavy equipment manufacturer Sany Heavy Industries. Deepak Garg, Managing Director, Sany Heavy Industries India said, “Our annual production capacity is close to 8,000 and currently we are producing close to 6,000 units a year. One year down the line we might have to add further capacity taking it to 16,000 units. We are optimistic of FY23 keeping in mind the investments that the government spoke about.” Source: Business Line INDIA

Structural safety of real estate projects, changes in RERA provisions to figure in upcoming CAC meeting

3/31/2022 1:19:00 PM

The Central Advisory Council (CAC) meeting scheduled for April 12 will discuss issues relating to the structural safety of real estate projects following an incident of partial roof collapse in Gurugram wherein two women were killed. The meeting will also deliberate on constituting a committee for the resolution of legacy stalled projects and the issue of some states tweaking the provisions of RERA, while framing rules under the Act by exempting the registration of 'ongoing projects.' The CAC, set up by the government for effective implementation of the Real Estate (Regulation and Development) Act, 2016 (RERA), will hold its third meeting on April 12. The first two meetings of the CAC were held on May 14, 2018, and April 29, 2020. The council, chaired by Housing and Urban Affairs Minister Hardeep Singh Puri, will consider measures like physical inspection of projects during construction and structural audit at regular intervals by reputed institutes. “Recently, there have been reports of incidents related to structural safety in multistorey apartments. Though, RERA mandates the promoters to rectify the structural defects highlighted within a period of 5 years from the date of possession, some provisions related to structural safety may be deliberated to ensure further safety of high-rise buildings and to prevent loss of life and property. "These provisions may include a physical inspection of projects during construction, Structural Audit by reputed institutes on regular intervals, declaration of Structural Safety by promoter before applying for completion or occupancy certificate, etc. Central Advisory Council may consider,” according to the agenda. The committee may comprise representatives from the Ministry of Finance, Ministry of Housing and Urban Affairs, sector experts (dealing with stalled projects and insolvency proceedings) and give its recommendations to the central government within two months from the date of its constitution, the agenda said. “Central government established the Alternative Investment Fund (AIF)- Special Window for Affordable and Mid-Income Housing Fund (SWAMIH) Investment Fund of Rs 25,000 crore to provide last mile funding for projects that are net-worth positive and registered under RERA, including those projects that have been declared as Non-Performing Assets (NPAs) or are pending proceedings before the National Company Law Tribunal (NCLT) under Insolvency and Bankruptcy Code (IBC),” it said. "As of February 14, 2022, 249 deals aggregating to ₹23,778 crore were approved which will benefit more than 1,46,946 homebuyers and unlock projects worth ₹66,163 crore,” it said. It is evident that this fund has proved to be very instrumental in completing the legacy stalled projects and is fulfilling the dreams of homebuyers, who invested their life savings in these legacy stalled projects, which were launched before the enactment of RERA, it said. The third meeting of the CAC will also discuss the issue of tweaking RERA provisions by some states. The CAC agenda noted that all states/UTs have notified rules under RERA except Nagaland, which is in the process to notify the rules. As many as 31 states/UTs have set up Real Estate Regulatory Authority (Regular-25, Interim-06). States like Meghalaya, Sikkim, West Bengal, and UT of Ladakh are yet to establish authority. In the agenda, it was pointed out that some states have tweaked the provisions of RERA while framing rules under the Act by exempting the registration of 'ongoing projects. The matter was taken up by the housing ministry on several occasions and through various communications. The CAC in its first meeting deliberated upon the issue of dilution by the states while framing rules under the Act. As decided in the meeting, the ministry has taken up the matter through various communications. Homebuyers’ body Forum for People's Collective Efforts (FPCE) president Abhay Upadhyay said in a statement that the agenda for the upcoming CAC meeting shows that the Ministry of Housing and Urban Affairs is serious and keen to address all major concerns not only in the implementation of RERA but also in providing resolution for incomplete legacy stalled projects started before RERA came into force. “We have been raising the issue of dilution in RERA Rules by the states due to which many incomplete projects were left out of the ambit of RERA and also that RERA Authorities are unable to enforce their own orders due to which RERA orders became nothing more than a piece of paper. "The recent incident of poor construction quality leading to loss of lives will also be part of the discussion,” Upadhyay said. The proposal to form a committee under the Chairmanship of CEO, NITI Ayog is also welcome and shows that the government is keen to ensure the completion of remaining incomplete stalled legacy projects, he said. “We have also come to know that the Ministry has accepted our suggestion to live stream the proceedings of the CAC meeting on social media platforms to ensure complete transparency,” Upadhyay added. Source: Money Control INDIA

Real Estate expanding into Virtual Space with PropTech

3/30/2022 11:44:00 AM

This decade of the 21st century will be marked by technological advancements in every field and strata of life. The real estate sector is no different to that. The traditional methods and mindset might have slowed the pace of this transition but the onset of the pandemic made it necessary to adopt this harbinger of change. PropTech has now seeped into the DNA of Real Estate and the figures are testimony to that. As per statistics, 2021 witnessed a record fundraising in PropTech with $9.5 billion from investors and venture capitalists in the mid of November, breaking the previous record of $9 billion fundraising in 2019. PropTech is an acronym for ‘Property’ and ‘Technology’ and it encompasses all the sections of real estate, be it residential, commercial or retail. In the age of information, PropTech has enhanced connectivity and bridged the communication gap between various parties involved. Another aspect is that it enhances the standard and ease of living of the users. They can be understood as ‘SaaS’ (Software as a Service), ‘PaaS’ (Platform as a Service) and ‘IaaS’ (Infrastructure as a Service). Collectively, the digital transformation they have brought have completely changed the real estate scene in India. It is estimated that the PropTech segment in India will reach $1 Tn by 2030 from $120 Bn in 2017 (INC 42) despite exponential growth in recent years. The early examples of PropTech would be the listing websites that list the properties on the platform to buy, sell or rent. By removing the intermediaries from the process, they made it transparent, smooth and credible. In India, the property brokerage business is estimated to be worth $1,400 million, or $1.4 billion. Technology, now, has emerged as a secure and competent tool in the Commercial Real estate Segment (CRE) for landlords, tenants and investors. The drastic transformation can be witnessed in the commercial real estate sector. Apart from the listing, the option to see and compare all the available real estate in an area, their prices and a personalised search as per the need of the consumer are being made available. Developers are now providing 3D and VR views of properties. Some businesses also assist with the transaction process such as loan advisory, help with rental agreements & legal services. However, if one has to specifically mark a section where this digital transformation is most apparent, it will be the office spaces. After 2 consecutive lockdowns and a work-from-home scenario, businesses have turned to technology to adapt to the ‘new’ normal, providing cloud-based information systems, digital locks, voice-controlled amenities, virtual board rooms for meetings and conferences and so on. The health-wise safety has taken the center stage and more focus is on the wellbeing of the ‘consumer’. Apart from Gen X (age bracket of 42-57), the Millennials (age bracket of 26-41) have emerged as the new customer class and being a witness and the forerunner of the age of the internet, they not only rely heavily on PropTech, they are spearheading this trend with the innovation and visionary start-ups too. PropTech India Insight Report by Built World Technology says that India is poised to become the leading emerging market PropTech destination as it has all the necessary ingredients; a large and wealthy real estate sector, megacities on the rise, a growing middle class and vibrant tech hubs. One doesn’t need a soothsayer to know India is soon to be a trailblazer in PropTech and this trend will reform the real estate sector from what we see today. Source: Financial express INDIA

12 real estate projects in Uttar Pradesh being completed under Section 8 of RERA provisions

3/29/2022 3:38:00 PM

Section 8 of RERA empowers authorities to hand over the completion task to buyers' association. As many as 12 real estate projects in Uttar Pradesh whose registration had been cancelled or terminated and whose development works had not been completed are being rehabilitated through promoters or association of allottees under the provisions of Section 8 of RERA Act, UP RERA said on March 24. On the issue of balance instalments of some of these projects not being paid by some allottees, the authority has said that in case of non-payment of instalments, the promoter has the right to receive interest and cancel the allotment. The issue was brought to the notice of the Authority during review meetings held recently. As many as 11 of these projects are in Ghaziabad and Gautam Buddha Nagar and one is located in Lucknow. Action is being taken by the Uttar Pradesh Real Estate Regulatory Authority under Section 8 of the RERA Act 2016 to complete such projects by a group of allottees or joint efforts of promoters and allottees. Most of the projects are progressing normally, UP RERA said in a statement. Section 8 of RERA empowers authorities to hand over the completion task to buyers' association. The RERA Act clearly states that “Upon lapse of registration or on the revocation of registration under this Act, the Authority, may consult the appropriate government to take such action as it may deem fit including the carrying out of the remaining development works by a competent authority or by the association of allottees or in any other manner, as may be determined by the Authority". UP RERA had laid down terms and conditions for both promoters and allottees to ensure the availability of economic resources in these projects and to undertake time-bound development of work. Project advisory and monitoring committees have been constituted to see that the development work in these projects goes on unabated. The progress of the projects is reviewed by the committee every quarter with the concerned promoter and group of allottees and efforts are made to remove any obstacles in the development of the project, it said. The problem of non-payment of balance instalments on time has been taken up seriously by the Authority which has said that allottees of the respective projects pay the balance instalments regularly with a view to ensuring time-bound development of the project. However, in the event of instalments not being paid, the Land Estate (Exchange and Development) (Agreement for Development / Lease) Rules, 2018 will kick in. As per Rule 9.3 (i) of the Amendment Act, the option of levying interest on the allottees or cancelling their allotment is available and in case of projects where development work is stalled due to non-payment of remaining installments, notice should be sent by the promoter/group of allottees concerned to those allottees who have not paid their remaining instalments yet, UP RERA has said. In case of non-payment of these instalments within the stipulated time period, as per Rule 9.3 (i) of the Land Estates (Exchange and Development) (Agreement for Development / Lease) Rules, 2018, the balance amount of instalment have to be paid with the interest at the rate of SBI MCLR plus 1 percent. For such allottees, who have not paid two consecutive instalments, a notice should be sent to pay the balance instalment along with interest rate of SBI MCLR+1 percent within one month. It should also be mentioned in this notice that if the concerned allottee does not pay the third instalment along with the remaining two instalments on time, then his allotment will be cancelled. It should also be clarified in the notice to be sent to the allottee that after the cancellation of allotment, after deducting the booking amount and interest related liabilities, the principal amount deposited will be returned to the allottee, only after the unit will be re-sold or the project is completed (whichever happens earlier), UP RERA said. Source: Money Control INDIA

Real estate investments expected to increase by 5-10% in 2022; tech firms to dominate leasing

3/25/2022 12:35:00 PM

Total investments in real estate in 2022 are expected to rise by 5-10 percent of $5.5 billion recorded in 2021 to reach near the pre-pandemic levels of 2019 and gross absorption in office space is expected to touch 45-47 million sq. ft. in 2022, a growth of about 13-14 percent from 2021, according to a report by CBRE India titled Market Outlook Report 2022. Capital flows are expected to continue to be led by development sites / land and the office sector, whereas the industrial and logistics and residential sectors could also see higher equity inflows, the report that was released at the CII annual conference on real estate said. The theme of the conference was Reinvigorating the Real Estate Industry in 2022 and Beyond. Metros are expected to lead investments in office, retail and development sites and I&L to extend to tier-II cities. Mumbai, Delhi-NCR and Hyderabad drove investment activity in 2021 with a combined share of nearly 60 percent in total investments. The aforementioned cities along with Bengaluru are expected to remain on investors’ radar in 2022, with major focus expected on office, development sites and I&L assets, it said. With the emergence of tier-II cities as the new engines of warehousing demand, there is likelihood of investor demand for such spaces in these locations. This is largely on the back of increased e-commerce penetration, steady income growth, higher savings and aspirational spend patterns seen in such cities, it said. Impact of Russia-Ukraine war The report also said that the Russia - Ukraine conflict has also added to the pressure on building material costs, considering that the two countries cumulatively account for around 10 percent of the global steel trade. Russia is also a significant producer of aluminum and nickel. This would add to the pressure faced by the developer community, further raising the cost of construction, it said. Commercial leasing in 2022 Technology firms would continue to dominate leasing in 2022 while flexible space operators, BFSI, engineering and manufacturing and life sciences segment are expected to contribute to the growth in office space take-up significantly. Similar to 2021, Bengaluru, Hyderabad and Delhi-NCR are expected to continue to drive transaction activity in 2022, the report released at the CII Conclave said. Leasing by flexible space operators is also expected to grow, with their stock expected to touch 47-48 million sq. ft. by the end of 2022. A similar trend is expected to be displayed by engineering and manufacturing companies, considering the manufacturing sector’s potential to contribute more than $500 billion annually to the global economy by 2030. Additionally, the fintech sector in India is expected to witness an incremental valuation of around $100 billion from 2021-25, which would lead to a rise in space take-up by BFSI firms in the coming years, it said. The report also noted that SEZ supply would mostly be led by Hyderabad and Delhi-NCR, while non-SEZ supply would be driven by Bengaluru, followed by Delhi-NCR and Hyderabad. 2022 to witness uptick in residential launches As for residential, an uptick in new launches is expected particularly in Pune, Mumbai, Hyderabad, Delhi-NCR, and Bengaluru. However, this steady supply infusion may pose some risks to delivery timelines and execution capabilities. It could also create unsold inventory pressures, especially amidst rising capital values and the probability of increasing home loan rates (due to anticipated monetary tightening). In 2021, affordable and mid-end segments together accounted for nearly 80 percent of the total sales – a trend that is likely to continue in 2022. In the premium / luxury segment, fuelled by the anticipated appreciation in capital values, there is likelihood of renewal of investor confidence and increased activity by HNIs and NRIs as well, the report noted. “The second wave of the pandemic was a blip on the Indian economy and by extension to the real estate sector. We have come a long way since then. Leasing activity across all sectors and segments has witnessed an uptick in the past six months and we expect this growth to continue into 2022. In fact, a few sunrise sectors such as I&L are expected to surpass pre-pandemic levels as well in terms of leasing as well as supply addition,” said Anshuman Magazine, Chairman and CEO, India, South East Asia, Middle East & Africa, CBRE. “We also expect the India market for alternate segments such as DCs, life sciences, etc. to mature further, enabling investors to diversify their portfolios as well as provide more investment opportunities,” he said. Alternative Investment Funds to become major source of real estate funding As the focus of some of the prominent HFCs and NBFCs turns away from corporate loan books to retail loan books with an aim to strengthen their balance sheets, Alternative Investment Funds are expected to become a major source of lending to the CRE sector going forward, the report added. Source: Money Control INDIA

Firms in co-working space expanding to tier 1 & 2 cities

3/22/2022 12:01:00 PM

Co-working operators are expandinginto tier-1 and tier-2 cities, driven bythe adoption of the hub-and-spoke model by organisations, reverse migration of employees to their hometowns, affordable office rental costs, a growing startup ecosystem and the availability of talent, said industry executives. Large companies are now asking for multi-city space from co-working companies. "We have closed multi-city deals with our existing large enterprise clients in IT/ITeS, BFSI (banking, financial services and insurance), especially in markets like Pune, Noida, Hyderabad, and Bengaluru," said Harsh Binani, co-founder, Smartworks. In the past six months, demand for tech-enabled managed workspaces has grown threefold, according to industry experts. “With Covid-19 subsiding, we have been observing a substantial increase in the number of queries for our office as an outsourced service. Corporates are determined to lease and divest their office spaces to avoid unwanted longterm commitments and capital expenditures, "said Ankit Jain, director, Skootr. The company plans rapid expansion in Bengaluru, Mumbai, Pune and Noida in 2022 to cater to the growing demand for offices. Corporate occupiers are looking for portfolio re-optimisation and focusing on the concept of managed office spaces. “We have sold 6x more seats in the last three months than what we used to sell pre-Covid, with a huge chunk under our demand-led supply model for mid-to-large-sized corporates across tier-1 and 2 cities. We are working towards further expanding our base pan-India with 200 centres by the end of 2022,” said Amit Ramani, Founder & CEO, Awfis. Half of a large co-working operator’s demand now comes from large occupiers who want satellite offices under the hub-and-spoke model. “For all practical reasons, co-working spaces are the most preferred option for companies to satisfy this demand,” said Nikhil Madan, co-founder, The Office Pass. According to international property consultant Savills India, about 23% of the leasing in the first two months was for flex and serviced offices. “The first two months of the year have been where we are seeing a shift toward flexible and serviced office solutions. Also, tech demand is likely to pick up with a very strong return to office sentiment,” said Shweta Sawhney, managing director, Delhi-NCR, Savills India. Source: The Economic Times INDIA

About 1.75 crore houses have been completed under PMAY-Gramin: Centre

3/19/2022 12:38:00 PM

NEW DELHI: The Central government on Wednesday informed that 1.75 crore houses have been completed under Pradhan Mantri Awaas Yojana - Gramin (PMAY-G). Union Minister for Rural Development Sadhvi Niranjan Jyoti in a written reply in Rajya Sabha on Wednesday said under the scheme, 2.28 crore houses have been sanctioned to the beneficiaries, out of which 1.75 crore houses have been completed as on March 9, 2022. "The PMAY-G guidelines provide for the construction of a house within 12 months from the date of sanctioning the same to the beneficiary. The assistance is released to the beneficiary in a minimum of 3 installments linked to various stages of completion like at the time of sanction, foundation, plinth, windowsill, lintel, roof, etc. Since the figures of house sanction and completion are dynamic and there is a gap of 12 months between sanction of the house till its completion, therefore, there would always be some gap between the figures of houses sanctioned and houses built during the implementation of the scheme," she stated. The minister said that during the period of the Covid-19 pandemic induced nation wide lockdown, all construction activities including construction of houses under PMAY-G were also affected which retarded the pace of construction of PMAY-G houses. "Besides, the delays are also due to delay in release of Central & State Share from State Treasury to State Nodal Account of PMAY-G, cases of the unwillingness of beneficiaries to complete the construction, migration, disputed succession of deceased beneficiaries, delay in allotment of land to landless beneficiaries by the States/UTs and at times those occuring on account of General/Assembly/Panchayat elections, unavailability of building materials etc," . she added. She also informed that the Union Cabinet has approved the continuation of PMAY-G beyond March 2021 till March 2024 for completion of remaining houses within the cumulative target of 2.95 crores houses under PMAY-G. Source: ET Realty INDIA

NCR continues to be a hub for luxury homes

3/17/2022 12:26:00 PM

Many reports indicate a rising demand for luxury homes in the market; this is especially true in the Delhi NCR market, where some of the best properties guarantee a world-class living. Despite the demand for luxury houses spread across the NCR, premium developments in Gurugram and Faridabad offer the best options with an ‘in-the-midst-of-nature’ experience. Premium developments like Amstoria, Terra, Astaire Gardens in Gurgaon offer the similar kind of products in these larger township. It offers Independent floors, high-end 3 BHK and 3BHk+Home office apartments, Villas, Plots, etc. According to data by ANAROCK, housing sales in the top seven cities surged by 71% y-o-y in 2021, with the premium segment (priced between Rs 90 lakh and Rs 2 cr) accounting for 25% of total sales. The luxury market is dominated by well-heeled buyers looking for a new way to escape the monotony of life. As a result, NCR offers projects that provide resort-like experiences or initiatives that provide urban experiences. The purpose of buying a luxury property is to find a location that would allow the buyers to live a healthy and secure life. However, determining the price range is challenging since the luxury home buyer market includes people from many walks of life. Since June 2021, residential demand has shifted significantly, with demand for larger apartments at an all-time high; the COVID scenario has tilted the balance in favour of the real estate. Demand has outstripped supply in the Delhi NCR market, meaning that a good project has a decent chance of being snapped up by buyers. To take advantage of the market’s momentum, developers have raised the number of new launches. According to Sotheby’s Luxury Housing Outlook-2022, up to 67% of high-net-worth individuals intend to buy luxury houses in 2022, with a lifestyle shift being the key driver. The luxury industry is dominated by well-heeled clients looking for a different kind of escape from ordinary life. NCR will profit as a result, as the region contains some of the greatest assets in the market. Also, a CII-ANAROCK Consumer Sentiment survey conducted last year said that a substantially higher percentage of NRIs are looking for self-use apartments. According to the survey, at least 53% of NRI respondents who plan to acquire property in India will do so for personal use and 47% for investment. A prior ANAROCK poll put NCR third in attracting NRIs, behind Bengaluru and Pune, which boosts the prospects of luxury in the region. The vast majority of NRIs (about 90%) prefer properties developed by well-known companies, which explains why NCR, which has a vibrant real estate sector, has performed so well. One of the biggest draws for NRIs to NCR is the planned development, where even the sector roads are developed before the commencement of a project. Financial Express INDIA

Govt brings clarity in policy for FDI in real estate business

3/16/2022 11:07:00 AM

FDI is not permitted in an entity which is engaged in or proposes to engage in real estate business, construction of farm houses and trading in transferable development rights To bring more clarity in its FDI policy for the realty sector, the government on Monday "amended and aligned" the existing definitions of the real estate business. According to a press note from the Department for Promotion of Industry and Internal Trade (DPIIT) released on Monday, FDI is not permitted in an entity which is engaged or proposes to engage in real estate business, construction of farm houses and trading in transferable development rights. It added that earning rent/income on lease of a property, not amounting to transfer, will not amount to real estate business. "Real estate business means dealing in land and immovable property with a view to earning profit, and does not include development of townships, construction of residential /commercial premises, roads or bridges, educational institutions, recreational facilities, city and regional level infrastructure, townships...," the note said. FDI is prohibited in real estate business and construction of farm houses, according to the note. Mergers and amalgamations Further, the DPIIT has also made changes in the norms pertaining to acquisition of shares under scheme of merger/demerger/amalgamation. The merged or new entity "may issue capital instruments to the existing shareholders of the transferor company resident outside India", the note said. "Where (in) a scheme of compromise or arrangement or merger or amalgamation of two or more Indian companies, or a reconstruction by way of demerger or otherwise of an Indian company, ...the transferee company or the new company, as the case may be, may issue capital instruments to the existing shareholders of the transferor company resident outside India," it said. This will be subject to certain conditions, it added. Sources: Business Line INDIA

Residential realty gets a boost from the ultra rich

3/15/2022 10:57:00 AM

A new generation of self-made ultrarich Indians is investing in the country's residential real estate, according to a study by property consultant Knight Frank. About 29% more of India’s ultra-highnet-worth individuals (UHNWIs) purchased a residential property in 2021 compared with the previous year, Knight Frank said in its report. Entrepreneurs are increasingly investing in second homes as the residential segment witnessed a sharp recovery after the outbreak of Covid-19. Currently, on average, an Indian UHNWI — a person with a net asset of $30 million or more — owns two homes. Shishir Baijal, chairman and managing director of Knight Frank India, said: "Investment in the real estate sector in India has grown in recent times, especially in the wake of the pandemic, as real estate was viewed as a safe and tangible investment option amid the economic volatility. Further, at attractive valuations, real estate continued to drive institutional demand." According to property brokers, UHNWIs are actively looking to buy a new home in 2022. These individuals prefer to invest first in domestic properties, followed by the markets in the UK, UAE and the US. "We are seeing a 2x jump in the share of real estate in our UHNI clients’ overall investment portfolios. In the last two years, stocks have performed well and there has been a rise in salaries in the IT sector — both these factors have led to a good flow of investment in real estate since it’s considered the most stable and safest investment option," said Bhavesh Kothari, founder of Property First, a luxury-property broking firm. The club of self-made UHNWIs in India has been growing, amid a boom in the startup sector with many of these companies getting funding from venture capital firms and other investors at high valuations. The number of UHNWIs in India has grown by 11% YoY in 2021, the report said. Among key Indian cities, Bengaluru witnessed the fastest growth in the number of UHNWIs: up 17.1% to 352 in 2021. The southern city was followed by Delhi (12.4% and 210) and Mumbai (9% and 1596). India was ranked 3rd in terms of billionaires’ population in 2021, after the US and China, the report said. "There is a clear indication that the desire to upgrade homes will be a big motivator in 2022 due to the ongoing hybrid work model. We are seeing an increase in enquiries and sales momentum. We have been witnessing strongsales momentum, especially in the last 12 months, with almost 90% sold inventory now," said Ashwinder R Singh, CEO (residential) of Bhartiya Urban, a Bengaluru-based real estate development company. According to an Orios Venture report, India saw 46 new unicorns in 2021, taking the number of such startups with a valuation of at least $1 billion to 90. Indian startups in 2021 raised $42 billion, up from $11.5 billion in 2020. Oneout of every 13 unicorns globally now was born in India. Source: Economic Times INDIA

Co-working to dominate the future of workspaces in 2022

3/14/2022 12:13:00 PM

‘Flexibility’ has become the new buzzword in the office space industry during this pandemic. Companies are now constantly mapping emerging trends and ​changing preferences​,​ to make the right choice for their office investments. The hybrid work model, rise of the entrepreneurial culture, the boost in startups and boutique firms have been pushing the demand for co-working spaces in India. Even in IT/ITeS and BFSI (banking, financial services, and insurance) sectors, companies ​are ​finding​ ​​these offerings to work best for their expansion plans and ​also add up to the ecosystem of their workforces. These sentiments are further reflected in a recent CII-Anarock report ‘Workplaces of the Future’ that predicts that the market size of co-working spaces would double in the coming 5 years at a CAGR of 15 percent. The current market share of flexible workspaces against the total office space market stands at 3 percent and this is expected to go up to 4.2 percent by 2023, as per a recent report by JLL. The report also estimates that the flexible space segment would grow at an average of 15-20 percent year on year. Owing to benefits such as shorter tenures, low capital investment, facility management, safety, wellness and security, and low maintenance, the corporates are increasingly investing in co-working spaces.​ They are focusing on cost optimization to avoid the pandemic-related risks of the future such as movement restrictions, lockdowns, etc. The pandemic has completely redefined how companies look at ​these spaces in these volatile times, the cost advantage of using a co-working space also gives them an edge and makes it more attractive for the corporates willing to invest across cities and geographies. Moreover, co-working spaces also are a great help in decentralizing office spaces and reducing long-term lease commitments.​​ ​These offerings also support them to set up an entire network of satellite and regional offices which was difficult for them earlier.​ ​In addition, the companies now find co-working spaces the best-suited options to support their workforces who choose to continue working remotely. ​The rise of entrepreneurial spirit especially in youth, enhanced infrastructure development, improved internet services, large-scale technology deployment, and ease of doing business have made India the third-largest startup hub in the world. The emergence of startups has led to an increase in demand for co-working spaces. Subsequently, most founders​ have started looking​ for affordable, hi-end, and well- managed office spaces for their enterprises, and the demand for flexible workspaces grew three-folds. A Cushman & Wakefield report mentions that co-working operators expanded their portfolio aggressively last year and took on lease 21 percent more office area adding up to 4.91 million sq.ft. in 2021 in comparison to 4.05 million sq.ft. in the previous year – across the top eight cities of Bengaluru, Hyderabad, Pune, Mumbai, Delhi-NCR, Chennai, Kolkata, and Ahmedabad to meet the rising demand for flexible workspaces from corporates amid the pandemic. The style of operating business and working have changed and companies will seek flexibility as the key factor in the future too. The co-working spaces will support them in developing different work environments to maintain a healthy work-life balance.​ On the other hand, employees looking for hybrid work models have increased and continuous efforts will be made in this direction to cater to the rising needs. These flexible offerings will dominate the future of workspaces in 2022 and would be critical ​in adapting to the operational changes to yield better results. Source: Financial Express INDIA

RERA implementation to improve post SC direction on examining states' rules: FPC

3/13/2022 2:59:00 PM

Homebuyers' apex body FPCE expects the implementation of realty law RERA to improve following the Supreme Court's recent direction to the Centre to examine the rules framed by states and see whether those subserve the consumers' interest. Last month, the Supreme Court directed the Centre to examine whether the rules framed by various states under the Real Estate (Regulation and Development) Act, 2016 (RERA) are in conformity with the central legislation and subserve the interset of homebuyers. A bench of Justices D Y Chandrachud and Surya Kant gave three months to the Centre to examine if there are any deviations between the rules drawn up by the states and those framed by the Centre in 2016, and to place the report by by the first week of May 2022. When contacted, Forum for People's Collective Efforts' (FPCE) President Abhay Kumar Upadhyay said: "Despite five years of its full implementation, RERA is yet to reach anywhere near its intended objective." The prime reason for this is that the states to whom responsibility has been given for its implementation did not follow any uniformity in their general real estate rules and rules for agreement for sale, he pointed out. "Their (states') rules were not within the four corners of the provisions of RERA. This took sting out of the Act and homebuyers were deprived of the the benefits of RERA," Upadhyay said. On the other hand, the association's president said, builders took full advantage of this and the fear of RERA catching them faded. "In view of this, though late, but still this ruling from the Supreme Court will set things right going forward and many homebuyers will then reap the benefit," .. Most importantly, this ruling would break the belief in most builders that they are above the law or that they can take the law for granted, he said. "I sincerely hope that both the ministry to whom the task has been assigned directly and also the Amicus who has also been given responsibility will devote sufficient time and report not only all deviations but also missing content which may have left loopholes in the implementation of RERA," Upadhyay said. This order has once again raised the hopes of homebuyers that they will get justice sooner than later, he added. Colliers India CEO Ramesh Nair said the Supreme Court's decree to scrutinise RERA rules of states is significant as there is a lack of uniformity in builder-buyer agreements across RERA rules of various states. "This directive will help bring accountability and transparency in dealings between homebuyers and developers in several cases," he said. The anomalies mainly existed with respect to the payment schedule, delivery schedule and associated delays, as well as liability towards structural defects, Nair pointed out. "A uniform builder-buyer agreement will also lead to more confidence amongst homebuyers. It will instill trust in homebuyers, unwarranted liabilities," Nair said. Homebuyers would also have more faith in developers across the spectrum, and even in under-construction projects, the Colliers India CEO said. Source: Economic Times INDIA

Green infrastructure for sustainable people, planet & prosperity goals in India

3/12/2022 12:58:00 PM

Infrastructure has been the epicentre of developmental initiatives in the Union Budget 2022. With massive investments inflated in the face-lifting mega projects, infrastructure expansion is focused as the winning solution for paradigmatic outcomes. For the fastest expanding economy like India, such an end-to-end robust infrastructure network is a substantial commitment to lead an investment driven growth. In India, the term infrastructure is primarily associated with the ‘grey’—engineered, brick and mortar features. Nevertheless, green infrastructure is rapidly making inroads in modern urban planning at the national, regional, and municipal level. At a time when India has pledged to embark on its decarbonization journey in order to achieve targeted green goals, the need for sustainable infrastructure is critical for a better tomorrow. Notifying Green Hydrogen policy is a step in the direction to reduce dependence on fossil fuel and promote alternate clean fuel economy. Green infrastructure implies to the projects that are well planned, designed, constructed, operated, and decommissioned in a manner to ensure economic, social, and environmental (including climate resilience) sustainability over the entire life cycle of the project. It enables sound economic development, job creation and consumption of renewable goods and services. It also enhances quality of life for citizens, increases the utility of alternative green energy, and improves cost efficiency in the long run. Budget 2022 has become the first of its kind to make considerable space for green infrastructure as it has focussed on clean and sustainable urban development through three major sectors – transport, energy, and agriculture – in a bid to achieve carbon neutrality in the long haul. It has also announced several initiatives to galvanise climate-friendly actions like the allocation for renewable energy and energy storage technologies such as solar modules, energy transition and issuing of green bonds among others. Three key Budget announcements have specifically accorded high praise across board – setting up a high-level committee of urban planners, economists, and institutions to recommend policies for urban planning and governance; plans to issue green bonds and referring to climate action as ‘sunrise sector’. It clearly shows the government’s seriousness in achieving sustainable goals and enabling it to attract investors to fund environment friendly projects like those that reduce carbon intensity. These moves not only give a big boost to India’s commitment at COP26 of reaching net zero by 2070, but also achieving ambitious targets like 175 gigawatt of renewable energy capacity by this year. Installing green infrastructure practices can add value to a project by resulting in more buildable lots and higher market prices, provided the need for storm water ponds are eliminated. The other things that limit opportunities for green infrastructure include: zoning density standards, storm sewer connection requirements, minimum parking and road widths. This will nudge developers to offer additional value proposition in the projects. Besides, many consumers are willing to shell out more for close proximity to attractive landscaping and contour green space. However, if green infrastructure practices fails, it is often because they were not installed properly. Apart from the fact that construction procedures and sequencing for green infrastructure sites are different from conventional sites, many developers are unaware of the potential for cost savings with green infrastructure. Even those who are aware of the potential for cost savings may find it impossible to reconcile green infrastructure approaches with other codes and standards. Many of the strategies for overcoming these barriers require action by the corporations. Local governments are in the best position to promote remote sustainable development. They can streamline building codes and ordinances, incentivize developers with exemptions, enable automation technology, incentivize electric charging, activate smart cities growth in association with private players, consolidate fragmented responsibilities for ease of doing business, revise resource utilization and management policies, penalize excessive carbon emission, replace pollutants with non-pollutants green industries and focus on research with soil and climatic conditions. They can also help regularize cost of development and maintenance, effectively with long term and cheap credit funding and tax rebates among other things. Climate change is affecting us now more than ever and green infrastructure can help build up community resiliency today and into the future. This truly begins with conscious consumerism that propels urban liveability and adds to the communities’ wellbeing. Source: Financial Express INDIA