Buoyed by strong housing demand, the average residential prices in key micro markets across the top 7 cities saw a significant surge in the last three years between October-end 2020 and the corresponding period in 2023. Latest ANAROCK Research data indicates that among the key micro markets across top 7 cities, Hyderabad’s Gachibowli recorded the highest 33% jump in average residential prices between 10M 2020 and 10M 2023, followed by Kondapur with a 31% rise. 

In Gachibowli, the average residential prices as of October 2023-end stand at approx. INR 6,355 per sq. ft. In the corresponding period of 2020, average prices in this locality were INR 4,790 per sq. ft. Hyderabad’s Kondapur recorded a 31% average price rise in this period – from INR 4,650 per sq. ft. by October-end 2020 to INR 6,090 per sq. ft. by October-end 2023.

Bengaluru’s Whitefield comes in third with a 29% jump in this three-year period – from INR 4,900 per sq. ft. as on 10M 2020 to INR 6,325 per sq. ft. by 10M 2023.

Key areas in MMR and NCR also saw average prices surge between 13-27% in this three-year span. In NCR’s Greater Noida West, average prices have increased by 27% in the period. In MMR, Lower Parel saw average prices appreciate by 21%.

Prashant Thakur, Regional Director & Head – Research, ANAROCK Group, says, “The end of October, marking the end of the festive season, typically denotes culmination of the year’s peak housing sales period. Barring discounts, 2020 was a year of price stagnation and year most developers would prefer to forget. The scenario in 2023 is markedly different – backed by strong demand, housing sales across the top 7 cities have created a new peak this year with sales far exceeding the previous peak of 2014. Led by both robust demand and increased input costs, there has been a significant surge in average housing prices across key micro markets in the top 7 cities.”

Up to the pandemic year of 2020, average residential prices across cities had remained largely range bound.

“Among the top 7 cities, key areas in the IT-led cities Hyderabad, Bengaluru and Pune saw the highest surge in average prices,” says Thakur. “Hyderabad also has a higher scope of price appreciation because pre-Covid-19, the city’s average prices were relatively lower than in Bengaluru’s IT/ITeS hubs. As of 10M 2023, the average prices in Hyderabad’s key micro markets are almost at par with Bengaluru’s IT-led housing hotspots.”

City-wise Trends

Source: ANAROCK Research

• Hyderabad’s top 3 micro-markets to see high average price rises in the last 3 years are Gachibowli, Kondapur and Miyapur with 33%, 31% and 28% hikes, respectively.
• Bengaluru’s top 3 localities – Whitefield, Thanisandra Main Road and Sarjapur Road – saw average prices appreciate by 29%, 27% and 26%, respectively in the period.
• Pune’s prominent localities for average price increases are Wagholi (25%), Hinjewadi (22%) and Wakad (19%) – all three in the city’s IT influence zone.
• MMR’s top 3 micro-markets to witness high price rises are Lower Parel, Andheri and Worli with 21%, 19% and 13% increases, respectively.
• NCR’s top 3 localities for average price increases are Greater Noida West, Sector 150 (Noida) and Raj Nagar Extension (Ghaziabad) with 27%, 25% and 21% hikes, respectively.
• Chennai’s prominent localities for price rises are Perumbakkam (19%), Guduvanchery (17%) and Perambur (15%).
• Kolkata’s top 3 prominent micro-markets which recorded high price rises are Joka, Rajarhat and EM Bypass, with a surge of 24%, 19% and 13%, respectively.

Also Read: Share of Real Estate in Recoveries Under IBC Rises to 18.8%

The post Key Locations in Top Cities See Up To 33% Avg. Residential Price Hikes in 3 Years appeared first on Square Feat India.

Driven largely by rising consumption, the rebound in Indian retail market has been exemplary in 2022 which is favourably impacting retail real estate across the country, finds a joint report by real estate consultants ANAROCK and Retailers Association of India (RAI). Buoyed by the growth, developers now plan to add nearly 25 Mn sq ft of new mall space across the Top 7 cities over the next 4-5 years, finds the report titled ‘India Retail Real Estate: REvived, REshaped, & REinforced’. The report was released at the Retail Leadership Summit 2023, where ANAROCK was knowledge partner.

NCR and Hyderabad account for nearly 46% of the total new upcoming supply, closely followed by Bengaluru at 19%.

Back in 2022, the top 7 cities added over 2.6 Mn sq ft of mall space which was 27% more than the preceding year (2021).

“The festive season, devoid of restrictions and any fear of the contagion, was exemplary with record high volumes and sales value,” says Anuj Kejriwal, CEO & Managing Director – ANAROCK Retail. “Sales value estimated during the festive season in late 2022 was INR 2.5 Lakh Crore, nearly 2.5 times compared to the previous year.  The revival of consumer sentiments and penchant for consumption is therefore being promptly acted upon by the majority of brands, retailers, and mall developers. The new planned mall supply across the top 7 cities is testimony to the developers’ expansion strategy.”

“Further, the retail market size is expected to touch USD 2 Trillion by 2032, growing from USD 690 billion in 2021, facilitating the organised retail sector to grow at 25% CAGR.”

Kumar Rajagopalan, CEO, Retailers Association of India (RAI), says, “The report also highlights that the Indian retail sector attracted around USD 1,473 Mn between 2019 and 2022, of which 76% of total investments came in 2019 itself. Among the cities, Hyderabad and MMR accounted for nearly 40% of the total PE investments in the sector.”

“Data further indicates that back in 2022, the top 7 cities added nearly 2.6 Mn sq ft of mall space during 2022, which increased by 27% over the previous year (2021),” says Rajagopalan. “Among the cities, Bengaluru and Hyderabad were the only cities which saw new mall supply addition during 2022.”

Presently, the top cities have over 51 Mn sq ft of mall stock across the country with NCR, MMR, and Bengaluru accounting for 62% of the total stock.

In terms of avg. rentals in malls, these appreciated by nearly 15% in 2022 over the previous year, thus reaching higher than the pre-pandemic levels. Bengaluru registered the highest uptick in rentals of around 27%, followed by Kolkata at 20% in 2022 over the previous year.

Other Major Highlights

• As per industry estimates, the e-retail market is anticipated to reach USD 120-140 Bn by FY26, increasing at 25%-30% annually over the next five years.
• The sales volume of the organised retail segment in FY22 was estimated to be USD 52 Bn and is estimated to grow to USD 136 Bn by 2028 with a CAGR of 17%.
• Currently, a high degree of integration of physical and digital is taking place to provide an interactive and all-inclusive experience.

Also Read: Mall stock at 90.6 mn sq. ft in H1 2022, to reach 122 mn sq ft by 2025

The post 25 Mn sq. ft. Mall Space to be Added in Top 7 Cities in Next 4-5 Years appeared first on Square Feat India.

• Approx. 3,64,900 units sold in 2022 against 2,36,500 units in 2021 across the top 7 cities, rising by 54% yearly; last peak was seen in 2014 when 3.43 lakh units were sold
• MMR records highest sales of approx. 1,09,700 units in 2022, followed by NCR with approx. 63,700 units
• Nearly 3,57,600 new units launched in 2022 against 2,36,700 units in 2021, rising by 51% y-o-y; total new launches in 2022 remain lower than previous peak of 2014 when >5.45 lakh units were launched in top 7 cities
• MMR & Hyderabad witness maximum new launches in 2022, together accounting for nearly 54% of total new launches in the year
• 35% of total new supply was in price bracket of INR 40 – 80 lakh, 28% in INR 80 lakh – INR 1.5 Cr budget & 17% in the ticket price of > INR 1.5 Cr
• NCR restricts new supply in 2022 to approx. 22,350 units despite robust housing sales of 63,700 units
• Available inventory decreased by mere 1% in 2022 over 2021 due to robust new housing supply during the year
• Residential prices across the top 7 cities rise between 4-7% annually

 Despite the gradual hike in property prices and home loan interest rates in 2022, it has been a fantastic year for residential real estate. Latest ANAROCK Research indicates that housing sales in the top 7 cities have created a new peak in 2022, breaching the previous high of 2014. Approx. 3,64,900 units were sold in 2022 against 2,36,500 units in 2021 across the top 7 cities – rising by 54% on Y-o-Y. The last peak was seen in 2014 when 3.43 lakh units were sold across the top 7 cities.

In terms of cities, MMR witnessed the highest sales of approx. 1,09,700 units in 2022, followed by NCR with approx. 63,700 units. The two realty hotspots are together once again the leading residential markets.

Meanwhile, new launches across the top 7 cities saw 51% annual rise – from 2,36,700 units in 2021 to nearly 3,57,600 new units in 2022. MMR and Hyderabad witnessed maximum new launches in 2022, together comprising nearly 54% share of the total new launches in the year.

Anuj Puri, Chairman – ANAROCK Group, says, “2022 has been a phenomenal year for residential real estate despite all headwinds including rising property prices, interest rate hikes and all geopolitical tensions etc. Housing sales in top 7 cities breached the previous highs of 2014 while new launches in comparison remained restricted.”

“While it was widely anticipated that the rise in property costs and interest rates towards the second half of 2022 would have a cascading impact on the residential sales, Q4 2022 remained quite robust with as many as 92,160 units sold in the period,” says Puri. “Interestingly, NCR became the shining star in 2022 which deliberately restricted new supply in the year to approx. 22,350 units but witnessed robust housing sales of 63,700 units.”

“Further, as we march into a new year, we anticipate the current sales momentum in the housing sector to continue in the first quarter of 2023. The appetite for homeownership has remained undeterred, with maximum sales being driven by the end-users. However, various risks loom large around the residential segment. A lot will depend on how the home loan interest rates pan out over the next year.”

Puri goes on to state that in 2023, we may see new launches to remain well under control across most top cities. Ready-to-move-in will continue to top buyer demand but the demand for new launches will also gain momentum. This is largely because the new supply in the market is and will continue to be dominated by the large and listed developers in the new year. There is a sense of confidence among the buyers for these developers and hence they will continue to perform well and see significant sales, just as they did in 2022.

Housing Sales Overview City-wise

Residential sales stood at approx. 3,64,900 units in 2022 against 2,36,500 units in 2021 across the top 7 cities – rising yearly by 54%. NCR, MMR, Bengaluru, Pune, and Hyderabad together accounted for 90% of the sales in the quarter.

• MMR recorded the highest sales in 2022 across the top 7 cities. With nearly 1,09,800 units sold in 2022, the city witnessed an annual increase of 44%.
• NCR recorded sales of approx. 63,800 units in 2022, a significant increase of 59% over the last year.
• Pune recorded sales of around 57,200 units in 2022, an increase of 59% over 2021.
• Approx. 49,500 units were sold in Bengaluru in 2022, an annual increase of 50%.
• Hyderabad recorded sales of approx. 47,500 units in 2022, a massive yearly increase of 87% over 2021.
• Kolkata recorded sales of approx. 21,200 units in 2022, an annual increase of 62% from the previous year.
• Approx. 16,100 units were sold in Chennai in 2022, a yearly jump of 29% over 2021.

New Launches Overview City-wise

The top 7 cities recorded new launches of around 3,57,600 units in 2022 as opposed to 2,36,700 units in 2021, an annual increase of 51% over the previous year.Key cities contributing to 2022 new unit launches included MMR, Hyderabad, Pune, and Bengaluru, altogether accounting for 86% of the total addition.

• MMR witnessed the highest new units launches of 1,24,650 units in 2022 among the top 7 cities. Over 68% of the new supply was added in INR 40 Lakh to INR 2.5 Cr budget segment.
• Hyderabad added a new supply of approx. 68,000 units in 2022 compared to 51,500 units in 2021 – a healthy increase of 32%.
• Pune added approx. 64,300 units in 2022, a significant annual increase of 61% over the previous year. Over 74% of the new supply was added in the INR 40 Lakh – INR 1.5 Cr budget segment.
• Bengaluru added approx. 49,200 units in 2022, a yearly increase of 61%. Approx. 72% new supply was added in the INR 40 Lakh – INR 1.5 Cr budget segment.
• NCR’s new launches in 2022 recorded a decrease of 20% from the previous year with approx. 25,350 units launched in this year.
• Chennai added approx. 10,000 units in 2022, an annual decrease of 19% over the previous year.
• Kolkata added approx. 16,100 units in 2022, an annual increase of 17% over 2021. Approx. 72% new supply was added in sub-INR 80 Lakh budget segment.

Price Movements

On annual basis, prices have risen in the range of 4 – 7% primarily due to an increase in the input costs and demand comeback post-COVID.

Available inventory as of Q4 2022-end

On annual basis, available inventory declined by 1% in Q4 2022 across the top 7 cities despite strong new housing supply in the current year 2022. As many as 6,30,953 units are available for sale across the top 7 cities in India.

Also Read: Godrej Properties to develop a Residential Group Housing project in Gurugram

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By Varun Singh

 Leading independent real estate services consultancy ANAROCK Group today announced acquisition of myHQ, one of largest Indian flexible workspace platforms, to strengthen its flexible workspaces portfolio. myHQ, headquartered in Delhi-NCR, currently has over 50,000 subscribed members across 700+ spaces in 7 cities.

Anuj Puri, Chairman, ANAROCK Group, says, “Coming on the heels of ANAROCK introducing US-based Upflex Inc, a hybrid booking platform with the largest global network of flexible workspaces, to India, the myHQ acquisition will further strengthen our tech and product offerings and enhance our capabilities in this vertical. myHQ will spearhead our expansion into 20+ cities. This gives us nationwide coverage in the flexible workspaces domain, and we will tap into overseas markets in the next 12 months.”     

Post-acquisition, myHQ will retain its distinct brand and independence. Utkarsh Kawatra and Vinayak Agarawal, both IIT-Delhi graduates who founded myHQ in 2016 will remain on board as founding partners and are enthusiastic about firm’s next innings under ANAROCK banner.

“We’re thrilled to be a part of ANAROCK, one of the biggest and most trusted real estate services business in the country, to take myHQ to next level,” says Utkarsh Kawatra, CEO – myHQ. “It is a well-timed move with the right company given our shared enthusiasm around massive opportunity in this space. We can now accelerate innovation, amp up the team and enhance user experience through a combination of myHQ’s tech solutions, and ANAROCK Group’s business expertise and scale. The hybrid approach to workspaces is on the cusp of an explosion with all companies from startups to big Corporates looking to adopt some version of Work-From-Anywhere model. While today there is some depth of inventory in the metros, to make this model truly successful, tier-II & III cities will need to be the future growth multipliers for India’s flexible workspace ecosystem.”

myHQ Offerings & Revenue Model    

myHQ’s offerings can be broadly split into two buckets. Our pay-per-use FlexiPass allows individuals & teams to access 700+ flexible workspaces across the country through one pass with prices as low as INR 200 a day. All spaces on the FlexiPass come with a standardised & controlled work experience and user does not have to worry about fixed monthly rentals, security deposits & lock-ins.

On the other end is Fixed desks, Cabins & Managed Office platform which allows corporates to choose from 700+ workspaces for leasing their ideal central HQ or satellite offices with highly flexible contracts and a single POC for their workspace needs across the country.      

myHQ also partners with cafes, coffee-shops, & lounges and turns them into daytime coworking spaces to help them monetize their vacant inventory during the day. myHQ business model is specifically geared towards capturing the growing demand for flexible spaces in the country by providing a range of solutions tailor-made for individuals, startups, MSMEs and large enterprises at very attractive price points.

USPs 

myHQ is currently the only flexi-workspace platform to cater to varying needs of companies and individuals in today’s work-from-anywhere world by offering both on-demand needs via their subscription based FlexiPass and dedicated desks & managed offices as a product.          

Also Read: Trend of rising office vacancy broken for the first time since Covid-19

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