ANAROCK, a leading Indian independent real estate consultancy, has announced an investment of ~INR 200 Cr (USD 25 Mn) from 360 ONE Asset Management Limited (earlier known as IIFL Asset Management) (360 ONE Asset), one of India’s largest alternate asset managers and part of the 360 ONE group, a wealth and alternates-focused institution with more than USD 54 Bn assets under management. This investment will enable ANAROCK to enhance its tech infrastructure, accelerate its expansion, and introduce new innovations to bolster its leadership position in the Indian real estate services space.

Commenting on this partnership, Anuj Puri, Chairman – ANAROCK, said, “We are delighted to have 360 ONE Asset as our first equity investor. This investment will go a considerable way in keeping ANAROCK at the forefront of the industry by fueling further innovation and growth. The capital has been earmarked for faster business expansion and fine-tuning our proprietary Proptech platforms, which have proved to be game changers for our real estate marketing capabilities. We will continue to explore new high-growth business opportunities”.

“This is by far the most opportune time to expand our reach and services,” says Puri. “The Indian real estate sector is expected to account for 10-13% of India’s GDP by 2025, from its existing share of 7%. We project strong and sustained growth for the industry over the next decade, with its potential market value surpassing USD 1 Tn by 2030. ANAROCK will lead the market with upgraded AI/ML technologies to accelerate our developer clients’ residential inventory sales.”

Sameer Nath, Chief Investment Officer and Head of Venture Capital & Private Equity at 360 ONE Asset, said, “We are delighted to be the first equity investor for ANAROCK. In ANAROCK, we observe a top-class management team, premier marketing and advisory capabilities and a clear leader in India’s large and growing real estate services sector. We have also been impressed by the tech infrastructure and innovative platforms being built by the company. We look forward to partnering with Anuj, Rohin and the entire ANAROCK team in the next phase of their exciting growth journey.” 

“Our partnership with 360 ONE Asset is the result of months of strategic planning, as we were seeking a partner who shares our commitment and passion for innovation in the real estate consulting and technology space,” said Rohin Shah, Director & Co-Founder – ANAROCK. “This collaboration will significantly leverage our 30 years of experience in the Indian real estate market and accelerate our pursuit of innovative and market-leading real estate solutions for our clients. Our key focus will remain research and technology-driven marketing and sales of real estate across all major sectors acting for developers, investors, and occupiers.”

Founded in 2017 by Anuj Puri, former Chairman and Country Head of one of India’s prominent international real estate consultants, and Rohin Shah – Managing Director of UK-based Marylebone Asset Management, ANAROCK has become the leading independent real estate consultancy in India and the Middle East. ANAROCK provides industry-defining technology-driven solutions.

The partnership with 360 ONE Asset will mirror the economic and financial growth of India across all real estate sectors.  

Also Read: REAL ESTATE SECTOR’S EXPECTATIONS FROM INTERIM BUDGET 2024-25

The post ANAROCK Raises ~INR 200 Cr (USD 25 Mn) Funding from 360 ONE Asset appeared first on Square Feat India.

Housing rents continue to soar across the top 7 cities, led by leading IT/ITeS hubs Bengaluru, Hyderabad, and Pune. Latest ANAROCK Research data reveals that among the top 7 cities, residential rentals in Bengaluru’s prominent areas soared by over 30% in the first nine months of 2023 (9M 2023). 

A standard 2BHK flat of approx. 1,000 sq. ft. area in Bengaluru’s Whitefield saw rents grow by 31% in 9M 2023, followed by Sarjapur Road where rents for such homes rose by 27% in this period.

In hard numbers, average monthly rent for a standard 2BHK home of 1,000 sq. ft. at Whitefield increased from INR 24,600/month by 2022-end to INR 28,500/month by September-end 2023. At Sarjapur Road, average monthly rents increased from INR 24,000/month in 2022-end to INR 30,500/month in September 2023. 

Interestingly, the next two rental growth hotspots are also IT/ITeS hubs. Hyderabad witnessed the 2nd-best rental value growth with key markets in the city seeing up to 24% growth in this period against all prominent localities in the top 7 cities of India.

In HITECH City, the average rents stood at INR 24,600/month by 2022-end; by the end of Q3 2023, they were INR 28,500/month – a 16% growth in the nine-month period. Gachibowli saw rents zoom up by 24% in the same period – from INR 23,400/month by 2022-end to INR 29,000/month by September-end this year. 

The third prominent city to see good rental values growth was Pune, where the Hinjewadi micro-market recorded a rental value growth of 17% in the last nine months. Here, the average rents were INR 21,000/month by 2022-end and INR 24,500/month by September-end 2023.

Anuj Puri, Chairman – ANAROCK Group, says, “After an almost terminal downturn during the first and second Covid-19 waves, residential rents are one of the most remarkable comeback stories of the post-pandemic housing sector. The first nine months of 2023 saw housing rents soar by over 30% in the top 7 cities. Bengaluru, already in the limelight for its astronomic rental values post-Covid-19, continues to stand out among the top 7 cities. The fact that the next two hotspots for rental values growth are also IT/ITeScentric cities also underscores the fundamental strength of the Indian Infotech sector,

despite belt-tightening moves in the industry.”

However, we may now see rental values begin to stabilize in most cities in the ongoing quarter as renting usually remains low in the last quarter of the year, says Puri. “Rents will once again build up steam when renting picks in the January to March period,” he says. “This is when Indians usually relocate for better job opportunities amid increased hiring in the new financial year.” 

Source: ANAROCK Research

Top Rental Markets 

Besides Bengaluru, other cities also recorded notable rental values growth in their prominent localities:

• In Hyderabad, the top markets were HITECH City and Gachibowli, which saw rental values increase by 16% and 24%. 
• In Pune, the two standout markets with high rental growth between 2022-end and Sept.-end 2023 are Hinjewadi and Wagholi, which witnessed 17% and 18% growth, respectively.
• In Chennai, the top markets to witness high rental values growth are Pallavaram and Perambur, with rents in this period growing by 12% and 9% respectively.
• In NCR, the top 3 markets were Sohna Road in Gurugram (rental values up by 11%), Sector-150 in Noida (13% growth) and Dwarka in Delhi (14% growth). 
• In MMR, the top two markets to see rental value increases were Chembur and Mulund, which saw 14% and 9% growth, respectively.
• Kolkata’s top two markets for high rental value growth in 9M 2023 were EM Bypass and Rajarhat, which saw 14% and 9% growth, respectively.

Rental Yields

Residential rental yield – the annual ROI from capital invested in a property – has never been spectacular in India. The national average of 3% for the last few years before the pandemic was more or less par for the course. However, with rental demand picking up after Covid-19 in 2022, there has been a considerable change – one of the main reasons why investors are back on the housing market. 

Among the top 7 cities, Bengaluru has the highest rental yield of 4.35% as of September 2023-end, followed by Mumbai with 4.05%. Pre-Covid in 2019, the rental yield in Bengaluru was at 3.6% – the highest back then, as well. 

Source: ANAROCK Research

(Note: Top 2 areas with high rental demand from each of the top 7 cities have been considered here for analysis)

Also Read: Industrial & Warehousing demand during Jan-Sept 2023 stable at about 17 mn sq ft

The post IT Hubs see Up to 31% Housing Rental Values Growth among Top 7 Cities in 9M 2023  appeared first on Square Feat India.

• Avg. prices of homes priced >INR 1.5 Cr in top 7 cities saw highest price appreciation b/w 2018 & 2023 among all 3 budget categories – from INR 12,400/sq. ft in 2018 to approx. INR 15,350/sq. ft. today
• At 42%, Hyderabad records the highest avg. price appreciation in the luxury category – from INR 7,450 per sq. ft. in 2018 to INR 10,580 per sq. ft. today
• MMR & Bengaluru each see 27% rise in avg. prices for homes priced >INR 1.5 Cr in the same period
• Affordable homes priced
• In the affordable housing category, NCR sees highest price appreciation of 19% in the period
• Avg. price of mid & premium segment homes (INR 40 lakh to INR 1.5 Cr) witnesses 18% appreciation in the period