The allotted land, an amalgamated 6,019.10 sqm plot (C-44 & C-48) in G-Block, has been leased to NPCI for 80 years. The possession letter was officially handed over during Mumbai Tech Week 2025, an AI-focused event organized by the Maharashtra government.

NPCI Expands Presence in Mumbai’s Financial District

NPCI, which oversees retail payments and settlement systems in India, had requested MMRDA to allocate commercial space in BKC for its expansion. With this approval, the corporation is set to strengthen Mumbai’s position as a fintech and digital payments hub.

NPCI has played a key role in India’s digital payments landscape through platforms like Unified Payments Interface (UPI), RuPay, Immediate Payment Service (IMPS), Aadhaar-enabled Payment System (AePS), and National Electronic Toll Collection (NETC). The new headquarters is expected to support NPCI’s expansion in both domestic and international markets, reinforcing its role in global digital transactions.

Boost to Fintech and IT Sector

MMRDA’s decision is expected to attract fintech startups, technology firms, and investors focusing on digital payments, artificial intelligence, cybersecurity, and blockchain innovations. BKC, already a major financial district, is likely to see increased activity from businesses leveraging NPCI’s digital payments infrastructure.

The headquarters will serve as a collaborative hub for banks, fintech companies, and regulators to develop next-generation payment solutions. The move is expected to generate employment opportunities and foster advancements in real-time payments, cybersecurity, fraud prevention, and AI-driven financial services.

Government’s Vision for Mumbai as a Fintech Hub

The Maharashtra government has been pushing initiatives to position Mumbai as a leading global fintech destination. The allocation of commercial space for NPCI aligns with this vision, ensuring that the city remains at the forefront of financial technology developments.

Eknath Shinde stated that MMRDA has been focused on strengthening Mumbai’s financial and technological ecosystem, and NPCI’s presence in BKC will drive fintech innovation. Metropolitan Commissioner Dr. Sanjay Mukherjee emphasized that the move is part of MMRDA’s broader strategy to support institutions that drive economic growth and digital transformation.

The establishment of NPCI’s global headquarters in Mumbai marks a significant milestone for the country’s fintech sector and is expected to accelerate India’s leadership in digital transactions and financial technology innovation.

SFI Analysis

The allocation of land to NPCI in Bandra Kurla Complex (BKC) marks a strategic push to strengthen Mumbai’s role as a global fintech hub. As India’s leading digital payments entity, NPCI’s expansion will attract fintech startups, technology firms, and institutional investors, fostering innovation in AI-driven financial services, cybersecurity, and blockchain. The move aligns with India’s growing dominance in digital transactions, reinforcing its leadership in global payment solutions. By securing a presence in Mumbai’s financial district, NPCI is well-positioned to drive financial inclusion, enhance transaction security, and develop next-generation payment technologies, ensuring continued growth in India’s digital economy.

Also Read: MMRDA Appoints Contractors for Three Major Creek Bridges in Thane

The post MMRDA Allocates Land to NPCI in BKC for Global Headquarters appeared first on Square Feat India.

Additionally, Blackstone has launched an open offer to acquire 26% more shares from public shareholders, which could potentially raise its total holding in Kolte-Patil to 66%, giving it majority control over the Pune-based real estate developer.

Transaction Details:

According to the regulatory filing made by Kolte-Patil Developers to the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE), the acquisition will take place in two phases:

1. Share Purchase Agreement (SPA):
   • Blackstone will acquire 2,27,96,353 shares (25.71%) from the company’s existing promoters at a price of INR 329 per share.
   • The total deal value for this share purchase is approximately INR 750 crore.
2. Share Subscription Agreement (SSA):
   • Kolte-Patil will issue and allot 1,26,75,685 new equity shares (14.29%) to Blackstone through a preferential allotment at the same price of INR 329 per share.
   • This will bring in an additional INR 417 crore for the company.

After these transactions, Blackstone will own a 40% stake in Kolte-Patil Developers.

3. Open Offer:
   • Blackstone has also announced an open offer to acquire up to 26% more shares (2,30,56,825 shares) from public shareholders at INR 329 per share.
   • If fully accepted, Blackstone’s total ownership could reach 66%, making it the majority shareholder and giving it effective control over the company.
   • The total value of the open offer stands at approximately INR 758.57 crore, bringing the total deal size to INR 1,167 crore.

Impact on Promoters & Shareholding Structure

Before the transaction, Kolte-Patil Developers was primarily owned by its founding promoter group, consisting of the Patil and Kolte families, who collectively held 59.52% of the company.

After the sale of their shares to Blackstone, their combined stake will drop to 33.81%. However, if the open offer is fully accepted, the promoter group’s stake will be further diluted, potentially leading to Blackstone gaining full control over the company’s management.

Regulatory Approvals & Future Outlook

The acquisition is subject to approval from the Competition Commission of India (CCI). Once regulatory approvals are in place, Blackstone will join the board of directors of Kolte-Patil and play a key role in shaping the company’s future growth strategy.

Speaking about the acquisition, industry analysts believe that Blackstone’s entry into Kolte-Patil is a major endorsement of India’s real estate market, particularly in the residential and commercial segments. The deal also aligns with Blackstone’s ongoing expansion in India’s property sector, where it has already invested billions in commercial real estate, warehouses, and retail assets.

What This Means for Kolte-Patil Developers

Kolte-Patil Developers, a well-known name in the Pune and Bangalore residential real estate markets, is expected to benefit significantly from Blackstone’s global expertise and financial backing. The company can leverage Blackstone’s global networks and strategic insights to expand its footprint in India’s high-growth real estate sector.

With Blackstone taking a significant ownership stake, the deal is expected to enhance corporate governance, improve operational efficiency, and accelerate growth strategies, including the launch of new projects and expansion into new markets.

SFI Analysis

Blackstone’s acquisition of a 40% stake in Kolte-Patil Developers, along with its open offer for an additional 26%, marks one of the biggest real estate deals in India in recent times. If fully executed, the transaction will make Blackstone the majority owner of Kolte-Patil Developers, giving it significant control over the company’s operations and future direction.

This move further underscores India’s growing attractiveness to global institutional investors, particularly in the residential and mixed-use real estate segments. With regulatory approvals pending, the market will be closely watching how this deal unfolds in the coming months.

Also Read: Sattva Group and Blackstone File Draft Offer Document for India’s Largest REIT IPO

The post Blackstone Acquires 40% Stake in Kolte-Patil Developers appeared first on Square Feat India.

Wealth Growth and Global Standing

India is not only seeing a rise in the number of wealthy individuals, but its global influence is also expanding. As of 2024, India ranks 6th globally in terms of UHNI population and 3rd in Asia, trailing only China and Japan. The number of UHNIs in the country has reached 13,600, marking a 6% growth from the previous year, with expectations that the population will increase by 50% by 2028, significantly outpacing the global growth average of 30%. Meanwhile, India is home to over 850,000 HNIs, and this figure is expected to double to 1.65 million by 2027. Notably, 20% of India’s millionaires are under 40, signaling the growing influence of younger wealth creators.

Drivers of Wealth Creation

The sources of wealth in India are diverse, with several key sectors contributing to the rise of the country’s affluent population:

• Tech and Start-ups: Nearly 30% of new HNIs have amassed their fortunes through technology, fintech, and start-ups.
• Manufacturing: The “Make-in-India” initiative has fueled industrial wealth, accounting for 21% of the UHNI economy.
• Real Estate: Luxury and commercial real estate, particularly in urban areas, contribute 15% to the UHNI wealth pool.
• Equities: The Indian stock market has been a major driver of wealth, with equity-based wealth growing by 18% year-on-year.

Real Estate and Second Homes

Real estate remains a cornerstone of wealth allocation for HNIs and UHNIs in India:

• Luxury Homes: The share of luxury homes in total sales has surged to 28% in 2024, up from 16% pre-pandemic. High-end properties in cities like Mumbai, Delhi, and Bengaluru are highly sought after, with emerging second-home destinations such as Goa, Alibaug, and Jaipur gaining popularity.
• International Investments: Around 14% of UHNIs own properties abroad, particularly in cities like Dubai, London, and Singapore. The average international property investment surpassed INR 12 crore ($1.44 million) in 2024.
• Sustainability Focus: Green buildings and ESG-compliant real estate are attracting growing interest among affluent buyers who prioritize sustainability.

Changing Spending Patterns

The affluent in India are shaping global luxury consumption trends:

• Luxury Cars: Over 37% of Indian HNIs purchased high-end vehicles in 2024, contributing to record sales for brands like Lamborghini, Porsche, and Rolls Royce.
• Travel and Experiences: UHNIs are spending an average of INR 6 crore ($720,000) annually on bespoke vacations, luxury cruises, and exclusive experiences.
• Jewelry and Art: India is the 5th largest market for luxury watches and bespoke jewelry, with increasing demand for prestigious brands like Cartier and Patek Philippe.

Investment Preferences and Future Outlook

The investment landscape of India’s wealthy is shifting towards diversification:

• Portfolio Composition: 32% of wealth is allocated to real estate, 20% to private equity and start-ups, particularly in AI, blockchain, and cleantech, and 8% of UHNIs are investing in cryptocurrencies, despite regulatory uncertainty.
• Global Diversification: Nearly 25% of Indian UHNIs are expanding their investments abroad, with a focus on North America and Europe. Additionally, over 40% have established family offices to manage wealth, succession planning, and philanthropy.

Emerging Trends

Several emerging trends are shaping the future of India’s wealthy:

• Millennial Wealth Creators: Over 15% of HNIs are under 30, driven by the tech sector, start-up unicorns, and IPOs. This number is expected to rise to 25% by 2030 as younger entrepreneurs increasingly drive wealth creation.
• Alternate Citizenship and Global Mobility: Approximately 10% of UHNIs acquired alternate citizenships in 2024, with destinations like Portugal, Malta, and the UAE offering global mobility and tax benefits.
• Health and Wellness: High-net-worth families are investing heavily in wellness-focused real estate, customized healthcare, and anti-aging solutions, alongside increasing investments in preventive healthcare and luxury wellness retreats.

India’s Growing Global Influence

India’s wealthy are now prominent players on the global stage:

• Rising Economic Prominence: India’s UHNI population grew by 6% in 2024, while China’s growth slowed to just 2%, signaling India’s rising economic prominence.
• Philanthropy: Indian UHNIs donated over INR 60,000 crore ($7.2 billion) in 2024, focusing on education, healthcare, and sustainability.
• Luxury Market Growth: As India’s luxury goods market grew by 12% in 2024, global brands are increasingly tailoring their offerings to Indian tastes, including bespoke couture and experiential services.

Conclusion

The rise of HNIs and UHNIs in India is not just a sign of growing wealth but also a reflection of the country’s economic transformation. From reshaping the luxury market to driving philanthropic initiatives and embracing new investment opportunities, India’s affluent are playing an integral role in shaping the global economy. With a rising cohort of young wealth creators, a booming tech sector, and increasing global influence, India’s journey toward wealth dominance is just beginning.

Also Read: MahaRERA Dismisses Broker’s Complaint for Brokerage Payment, Cites Lack of Legal Provision

The post The Rise of Indian HNIs and UHNIs in 2024: A New Era of Wealth and Influence appeared first on Square Feat India.

Regional Insights

Mumbai and Pune dominated the warehousing and logistics sector in H1 2024, collectively accounting for 63% of the total absorption. Mumbai’s share surged from 25% in H1 2023 to 41% in H1 2024, driven by heightened demand for grade-A warehouses in areas such as Bhiwandi, Panvel, Uran, Taloja, and Ambernath. In contrast, NCR’s share plummeted from 31% to just 6%, reflecting a significant drop in activity. Chennai, however, experienced a remarkable 191% increase in absorption, reaching 1.5 million square feet due to the low base effect from the previous year.

City-Wise Absorption Data

Sector-wise Absorption Trends

Third-party logistics (3PL) companies led the absorption with a 39% share in H1 2024, up from 26% in the previous year. The engineering & manufacturing sector also saw its share increase to 22% from 16%, while the automobile and auto components sector grew to 9% from 4%.

Investment Highlights

The warehousing and logistics sector attracted USD 1.6 billion in investments during H1 2024, representing 42% of the total institutional investments in real estate. This investment amount equals one-third of the total institutional investment received over the past four years and marks a 4.5-fold increase compared to H1 2023.

Key deals included:

• USD 1.5 billion investment by KKR and Abu Dhabi Investment Authority (ADIA) in Reliance Retail Ventures’ warehousing assets, accounting for 96% of the sector’s total investment.
• CapitaLand India Trust (CLINT) signed a forward purchase agreement with Casa Grande Group for three industrial facilities at OneHub Chennai, valued at approximately USD 32.3 million.
• Goa Investment Promotion and Facilitation Board (Goa-IPB) signed a MoU with TVS Industrial and Logistical Parks (TVS ILP) for developing a grade-A warehousing and logistics park in Verna Industrial Estate with an investment of USD 15.6 million.

Rental Trends

Weighted average rentals slightly declined by 3% to INR 21.6 per square foot per month in H1 2024. Bengaluru saw the highest rental decline of 8%, while Hyderabad experienced a 7% decrease. Conversely, Pune’s rentals surged by 30% to INR 27.1 per square foot per month, and Chennai saw a 22% increase.

Conclusion

The warehousing and logistics sector continues to show strong growth, with significant investments and notable shifts in regional and sectoral absorptions. Despite a decrease in overall absorption compared to the previous half-year, the sector remains dynamic with increased investment and evolving rental trends.

Also Read: Industrial & warehousing demand remains healthy with about 13 mn sq ft of leasing in H1 2024

The post Warehousing & Logistics Absorption Increased by 8% Annually in H1 2024, with Mumbai and Pune Leading appeared first on Square Feat India.

·       Foreign investments accounted for 78% of the total investments in the sector

·       Data centers received USD1Bn of inflows since 2019, 51% of total investments in alternatives

Alternative assets in India received cumulative investments of about USD2.0Bn during the last 4-5 years (2019-H1 2023), led by foreign investors. Foreign investments accounted for 78% of the total investments in the segment, as investors continued to seek newer markets and newer avenues segments to diversify their asset portfolio while enhancing risk adjusted returns.

Institutional investors who were primarily focused on core asset classes have been building up their non-core assets around Data centres, Life sciences, Co-living, amongst others. Investments in alternatives have witnessed continued growth since 2019, driven by emergence of shared economy, increased digitalisation, and supportive government policy initiatives. During 2022, investment inflows in alternatives touched USD0.9Bn, a whopping 4.4X rise from 2019. Foreign investments in the sector have been the driving force and have witnessed a 6X rise in 2022 compared to 2019. Foreign investors continue to bet on the Indian real estate market, as India continues to be the fastest growing economies across APAC, Europe and Americas, with GDP pegged at 6.6% in 2023 by IMF. At a time when India’s economic outlook remains sturdy amidst global challenges, the business case for alternative investments will only strengthen.

Investments inflows in alternative assets (USD mn)

Source: Colliers

“As conventional asset classes like Office, Residential, Hospitality and Retail are evolved with significant investor and operator penetration, the alternatives are now poised for exponential growth over next few years.  Alternate asset industry which revolves around enhanced customer experiences, flexibility in Office, Residential, Technology usage and data storages is likely to provide significant partnership opportunities to investors and operators. While core sectors continue to dominate the institutional inflows in Indian real estate sector, share of alternatives has risen significantly from 3% in 2019, to 18% during 2022.” said Piyush Gupta, Managing Director, Capital Markets & Investment Services

Data centers dominate alternative investment inflows

Since 2019, data centers have received USD1Bn of institutional inflows, with inflows rising multi-fold in the last 5 years. While other alternative asset classes such as Life sciences, Co-living etc. have also seen increased traction, data centers have remained popular amongst institutional investors due to their strong growth fundamentals & a promising outlook. During the period under review (2019- H1 2023), data centers accounted for about 51% share in the total investments in alternatives.

Strong growth in data consumption has catapulted the growth and development of data centers in India, in the last five years. Investors are enthused by burgeoning demand and attractive returns of the data centers and have been actively infusing funds over the last 2-3 years. Data centers in India have given promising returns at about 16-18%, much higher than 8-9% in core office assets, which have further accelerated investors’ interest in the space.

As data centers are capital intensive and entail greater technical know-how investors are increasingly partnering with data center operators, who are ramping up expansions in the country. Global hyperscalers too are viewing India as a prime market for expansion to capitalize on the increasing demand from cloud usage. 2023 has seen some landmark investments and pre-commitments from global hyperscalers in India’s data center space, as they are looking to set up their own facilities to suit their requirements. Data centers are also witnessing large platform deals between developers and investors who are looking to grow their businesses multi fold. During May 2023, Lumina CloudInfra, a data center platform owned and managed by Blackstone’s Real Estate and Tactical Opportunities funds, announced its plan to invest more than USD300 million to develop a hyperscale data center campus in Navi Mumbai. Similarly, Reliance Industries partnered with Brookfield Infrastructure and Digital Realty for developing data centers in select locations in India.

Global investors have specifically favoured data centers over the last 5 years, accounting for over 90% of the total investments in the sector during the period. Foreign investments have helped data center operators to achieve the desired scale, foray new markets and achieve development and operational expertise by providing access to capital. At the same time, according ‘infrastructure’ status to data centers has facilitated concessional credit availability for the development of large-scale data centres. Data protection Bill 2023 will further aid growth and investments in the sector.

Investments in Data centers (USD mn)

“Global investors are increasingly allocating funds towards alternative assets, with their share in total investments rising from 55% in 2019, to 75% in 2022. While data centers continue to dominate investments in alternatives, there is an increased opportunity in sectors such as Co-living, with more organized players looking to enter the space. Rising demand coupled with strong growth fundamentals for Co-living sector remain highly supportive of required investments over the long-term. As the market grows towards maturity, the sector will likely witness allocation of more foreign capital, enabling investors to enter new markets and benefit through economies of scale, fostering institutional investments in the sector,”  said Vimal Nadar, Senior Director and Head of Research, Colliers India.”

Also Read: Building wealth, twice: How industrial galas fuel second investments

The post Institutional investments in alternatives cross USD2.0Bn in 5 years; foreign investments rise 6X since 2019 appeared first on Square Feat India.

Dr. Niranjan Hiranandani- CMD- Hiranandani Communities opines that, “the launch of this new residential sector is in alignment with the market buoyancy as the company seeks to capture strong demand for branded luxury homes post-COVID. Hiranandani Fortune City, Panvel has already delivered 2200+ homes across 2.5 million square feet of residential space and 2 million square feet of commercial space, housing Asia’s largest Yotta NM1 data center. A holistic ecosystem & quality residence at the Fortune city integrated mixed use township will help investors earn lucrative rental yields in the marketplace. This new sector at Fortune City township in Panvel will further attract businessmen, self-employed, salaried professionals, NRI and aspirational millennial homebuyers to capitalize on the right mix of flourishing location, brand equity, attractive price point and intrinsic sentiment of buying an ownership home post covid pandemic.”

He further mentioned that “The Panvel realty market is currently booming as a new economic node with the commissioning of mega infrastructure projects. This has already led to the increase in property prices index northwards. The region is also witnessing the foray of many organized and branded developers to capitalize the new growth opportunities.”

The Panvel- Karjat region has been aptly coined as Mumbai NXT, redefining the location’s value proposition and its renewed connectivity with Mumbai. The dual advantage of JNPT seaport and NaviMumbai international airport along with MTHL, coastal road, metro rail, multi-modal corridor, water transport will lead to unprecedented real estate growth. As a result of this last-mile connectivity, suburbanization has become notable along with acceleration of commercial development and urban migration. Panvel realty market is witnessing rise in population, mushrooming of commercial and retail spaces, social amenities, educational campuses, R&D centers, BFSI & IT offices, and tourist destinations which makes it an ideal proposition for homebuyers in MMR.

The two railway stations Mohape and Chowk in proximity to the Hiranandani Fortune City township will be opened for passengers on the completion of Panvel- Karjat rail corridor. Buying an ownership home at Hiranandani Fortune City will prove to be a prudent investment with long term capital appreciation and steady rental yield. There is no better time than now for discerning homebuyers to purchase luxury homes in this habitable township being developed by the Hiranandani Group, one of India’s most trusted Real Estate brands with best customer satisfaction and credit ratings.

MMRDA earmarked 94% of their expenditure budget for FY 23-24 towards road and bridge projects, public transport, and other infrastructure development works in MMR. Panvel is a buoyant location with footprints of several established conglomerates, blue-chip companies, and renowned real estate developers. This makes Panvel an irresistible NXT best real estate market. 

Also Read: Hiranandani partners with Padukone Sports

The post Hiranandani Communities launches 1mn sqft of Residential Sector at Hiranandani Fortune city, township in Panvel in FY 23  appeared first on Square Feat India.

·       Domestic investments rose 4X YoY at USD391.0 mn

·       Investments in residential assets increased 22X YoY at USD361.1 mn

Institutional investments in real estate remained strong during Q1 2023 at USD1.7 Bn, led by office sector, lending an optimistic outlook for the year.  The office sector continued to drive the investment inflows accounting for 55% of the total inflows during the quarter, followed by residential sector at 22% share. Investment inflows in office sector rose by 41% YoY at USD0.9Bn, led by select large deals. Owing to the strong growth prospects in office sector, key institutional investors are entering into strategic partnerships to strengthen their presence and expand their office portfolio in India.

Investments from domestic investors rose 4X YoY during the quarter. Domestic investors remained committed towards residential assets during the quarter, despite higher lending rates. On the other hand, global investors remained inclined towards office and industrial assets, and dominated the total investment inflows at 76% share. Larger markets such as Delhi-NCR and Bengaluru attracted 1/3rd of the total investments during the quarter, led by increased activity in these markets. However, majority of the inflows (63%) were through multi-city deals.

City wise investment inflows (USD million)

Note:

The data has been compiled as per available information in the public domain

The institutional flow of funds includes investments by family offices, foreign corporate groups, foreign banks, proprietary books, pension funds, private equity, real estate fund-cum-developers, foreign-funded NBFCs and sovereign wealth funds.

“Indian real estate investment cycle is now transitioning into a phase to witness secondary market transactions and may see more institutional owners partially or fully divesting portfolios. In the coming quarters, we shall see some large quality assets traded in office and select logistics assets. The preference of India in developing Asia Pacific markets is getting stronger,” said Piyush Gupta, Managing Director, Capital Markets & Investment Services at Colliers India. 

Investments inflows –

*Note: Alternate assets include data centres, life sciences, senior housing, holiday homes, student housing, etc.

Source: Colliers

“Global institutional investors’ appetite for office assets remains strong owing to India’s growing talent pool, digitization, enhanced transparency in deal structures and stable returns. Foreign investments accounted for about 93% of the total investments in office assets during Q1 2023. Led by increased opportunity, we are likely to see more collaborations to develop platforms for developing high quality Grade A office assets.” Vimal Nadar, Senior Director & Head of Research, Colliers India.

Investments in industrial assets surge; alternatives continue the momentum

Investment inflows in industrial assets witnessed a 20% YoY rise during Q1 2023 at USD216.3 mn, led by foreign investments. Industrial sector is witnessing consistent growth owing to increased opportunities in manufacturing, favourable government policies and growth in E-commerce, leading to a significant amount of investible assets in the region.  Along with core assets, investors also continued to allocate funds towards alternative assets and infused USD158.2 mn, 4X more than same period last year. Significant inflows in the alternatives wash led by a large deal in the hospitality sector. This portfolio diversification has enhanced the ability of many funds to grow their portfolios and remain resilient in these uncertain market conditions.

Also Read: Repo Rate unchanged what it means for Real Estate?

The post Investment inflows in Indian realty rise 37%YoY in Q1 2023; Office continues to lead the rally appeared first on Square Feat India.

For a long time, almost a decade, real estate was a dud investment for many investors. However, the property market is back on the radar as the homebuyers are flocking for the shopping spree thanks to limited supply, ample liquidity and the rock bottom interest rates.

In a paradoxical fate of events, everyone was skeptical about investing in real estate due to the looming threat arising from the arrival of the lethal Covid-19 pandemic, the industry bounced back with great momentum and sales jumped to new highs.

Like a lot of other sectors, the real estate industry too was unprepared for the wrath of the pandemic but following the second wave, it showed remarkable resilience. The new launches came to halt but the demand was higher. However, 2021 was a game changer for the sectors. As the world’s largest vaccination drive gained momentum, the confidence for the reality as a sector rose and financial year 2022-23 is now seen as the turnaround year for the sector which will lead to a robust boom for the industry.

There is no doubt about it, if one analyzes the initial trends. Simply because, the largest cities of the country have scarce areas which can be developed and sold out.

The pandemic has been a blessing in disguise for the industry as the low cost of lending has boosted the morale of developers to finish the pending projects, whereas the buyers have been able to hunch upon the low EMIs to buy new houses.

Top cities in India including Gurugram, Delhi, Mumbai, Chennai, Kolkata, Bengaluru, Hyderabad and Pune are poised for favourable housing sales, sowing the seed for revival of commercial real estate as well.

The changing dynamics in favour of real estate, even amidst the unstable economy, could be attributed to the changing consumer sentiments that underwent modification due to the uncertainties of rental accommodation. Even the millennials are adding to the demand. The new age generation, which relocated from Tier II and Tier III cities to Tier I and metros, is now in the favour of having their own house, instead of renting one. This is also now adding to more demand for the sector.

The new investors or the homebuyers demand spacious houses, with luxury and a large number of amenities, to showcase their lifestyle. Housing is now a style statement and the notorious pandemic instigated parties and gatherings at home only.

Another reason for the demand for the housing sector is the work from home option or the remote work culture, where people will visit their offices, but only occasionally. Installing workstations at home, with more than one working partner, is adding more demand to carry out the activities smoothly.

When remote working culture got adopted unanimously, people were on the lookout for homes with extra room or space, which could either serve as an office or study. As mobility got restricted, people started searching for homes that accommodated entertainment, exercise and recreational areas, which added more demand.

Another reason for the real estate boom is the lacklustre return of other safer asset classes. Barring the volatile equity markets or the unregulated cryptocurrencies, safer bets like bonds, FDs and gold have failed to offer better returns to investors.

With the rise of geopolitical concerns globally and strong outflow of foreign investors, one can assume that the golden days of equity markets are left behind and real estate is poised to emerge a lucrative option for both risk bearer and risk hesitant investors.

Real Estate is an asset class with long lasting value, evergreen utility and security for the future even in the uncertain times. This, coupled with easy financing, has made it a reliable investment for the all, offering steady and solid returns.

Perceiving the revival potential of real estate, the government also came up with progressive policies to give a boost to the industry. The government is focused on the revival of demand in the economy and real estate is a key theme of its infra push. The center aims to provide a conducive environment to encourage home buyers.

Experts estimate that the low-interest rate is there to stay for a couple of years. Thus the home buyers can apply for higher amount loans which broaden their choices to buy bigger homes complemented by enhanced amenities and better lifestyle.

Considering the panoramic view of the industry, the future of the sector seems rather promising. Taking a positive turn, the sales in real estate are expected to reach their peak in a couple of years.

Shubham Arora is Director, Sheerbulls India Pvt Ltd.

Note: Opinion expressed by the author solely belongs to him not that of SquareFeatIndia

Also Read: How is the Fireman Evacuation Lift being relevant to the Real Estate Industry?

The post Will Real Estate continue to offer a profitable Return on Investment appeared first on Square Feat India.

By Varun Singh

Mumbai saw a total sale of 15,978 units in the residential sector in 2019. Of this, Western Suburbs accounted for a total sale of 51% while it contributed 41% of the total revenue. These are the findings of a report by The Guardians Real Estate Advisory, a real estate advisory firm.

Mumbai has witnessed an unprecedented rise in property prices between 2003 to 2016 by as much as 700-800%. However, for the last few years, it has been facing it’s own share of challenges.

The Real Estate market of Mumbai, like all other metros suffered from a slowdown because of the multiple reforms undertaken by the government over the past three years starting with Demonetisation, GST and RERA. The unprecedented rise in prices and never ending demand came to a sudden halt as a result of the liquidity crisis and the various measures introduced for the sector.

However, on the other hand, the construction of a slew of infrastructure projects like the multiple Metro Lines, Coastal Road, Goregaon – Mulund Link Road, Bullet Train, and others. have help in boosting sales in the Real Estate market of the city.

In spite of the challenges faced by the sector from demand to liquidity, the most expensive real estate market of the country managed a business worth Rs.25,574 crores in the primary market between January and December 2019.

Across Mumbai, a total of 15,978 residential units were sold in a matter of 12 months. More than half of the unit sales came from the western part of the city and so did 41% of the revenue. South of Mumbai that is suffering from a pile up of unsold, ready inventories depicted signs of revival.

Source: MahaRera & SRO

The western part of the city or western suburbs, contributed a little over 51% in inventory sales. The western stretch of the city is witnessing an unprecedented increase in the number of new project launches, developers are capitalizing on the infrastructure boom this part of the city is witnessing.

Source: MahaRera & SRO

The South Mumbai real estate market continues to remain one of the most expensive in the city. The large difference between the number of units sold vis-a-vis the revenue generated bears testimony of the same. An upward trend in this market on the revenue front quarter on quarter is expected provide a lot of confidence to luxury developers.

Experts Speak

Ram Naik, Executive Director – Sales & Distribution for residential developments at The Guardians Real Estate Advisory, says “The western suburbs of Mumbai have performed extremely well over the past 2 years. The launch of a number of residential projects in this part of the city with new age, zero wastage apartments has lead to increase in sales velocity quarter on quarter. The infrastructure projects in the western stretch of the city have given a lot of confidence to developers as a result of which some of the leading developers are betting big on the western suburbs. In the year to follow we foresee a further increase in the contribution being made by the western part of the city to the overall sales numbers of the city.”

Jayesh Rathod, Executive Director – Product Design & Marketing, had an interesting outlook, he says, “The year of 2019 had a lot of learning’s for the South Mumbai market. The SoBo market will now have to face the end-user as opposed to the investor and it therefore becomes imperative to understand his needs. The buyers in the South Mumbai market are also facing budget constraints and are therefore postponing their buying decisions for a better day. Product design therefore becomes important, a design that keeps the essence of luxury intact while still offering it to the customer at a ticket-size that’s just around his budget. An innovative approach to product design has the potential to help this market bounce back to the pre-2014 sales volumes.”

The post Mumbai Sells 15,978 units worth Rs 25,754 Crore in 2019: Report appeared first on Square Feat India.