Ø  GCCs drive India office space demand, with 37% share in overall leasing activity of Q1 2024

 Despite a cost-conscious mindset, occupiers across the Asia Pacific region are willing to pay higher rentals for superior quality offices, particularly in locations which facilitate talent acquisition, according to Colliers’ latest edition of Expert Insights | Asia Pacific Office Markets April 2024.  The report highlights the rising priority of APAC business leaders across industries to optimise resources, maximise savings and drive growth as they navigate a dynamic business landscape in 2024.

India’s top office markets too have experienced a notable 4-8% YoY surge in rentals, driven by robust demand and simultaneous infusion of high-end, quality supply. After witnessing a dip during the pandemic years on account of subdued demand, occupier exits and remote work trends, rentals have seen a considerable growth so far in 2024, surpassing pre-pandemic levels. Strong office market performance in India has been fueled by robust economic growth and renewed occupier confidence. Select high-performing markets across the top 6 cities have specifically seen upto 20% YoY rental rise. Some of the examples include MG Road – Delhi NCR (18.2% YoY), SBD1 (Includes Koramangala, CV Raman Nagar, IRR, Indiranagar, Old Airport road, Old Madras Road, Rajajinagar and others) – Bengaluru (15.5% YoY), and Pallavaram Thoraipakkam Road (PTR) – Chennai (10.9% YoY). This surge in rental prices reflects the growing preference  of occupiers who are willing to pay a premium for buildings replete with state of the art & modern amenities, adorned with green certifications across strategic locations. Owing to superior quality construction and high-end amenities, quoted rents of the new office supply are typically up to 20% higher compared to average rentals across select premium micro markets.

Pan India Weighted Average Quoted (WAQ) rental trends (2019-2024)

Source: Colliers

Weighted Average Quoted (WAQ) Rents are in INR per square feet per month for warm shell offices and do not include

common area maintenance (CAM) or taxes

Rental figures as of 31 Dec of every year except for Q1 2024

Pan India Weighted Average Quoted (WAQ) rental trends (Q1 2024)

Weighted Average Quoted (WAQ) Rents are in INR per square feet per month for warm shell offices and do not include common area maintenance (CAM) or taxes

Rental figures as of 31 Dec of the respective year

Rental comparison of new office supply with average market rents

Data pertains to Grade A properties

Supply indicates new supply completions during 2022-Q1 2024

*Price premium indicates the rental difference of the new supply during 2022-Q1 2024, over the quoted rentals of the micro markets

Prominent MMs have been chosen basis demand actvity and infusion of new supply during 2022-Q1 2024

Micro market definitions –

1-    Outer Ring Road stretches from Silk Board to Hebbal

2-    SBD- Madhapur, HITEC City, Kondapur and Rai Durg

3-    Central Mumbai – Lower Parel, Prabhadevi/Worli

4-    CBD- Bund Garden Road, Camp, FC Road, JM Road, Koregaon Park, Kalyani Nagar, Shivaji Nagar, Swargate, Raja Bahadur

Mills Road, Senapati Bapat Road, Wakdewadi, Yerwada

The report also highlights six priorities to achieve cost efficiency in office real estate.

1.     Align office strategy to business goals: Decisions around owning versus leasing should be aligned to location objectives and expected length of requirement for each office.

2.     Portfolio strategy: Consolidation opportunities, monetising non-core assets, along with right-sizing and repurposing offices to match new ways of working, is key to thriving in today’s dynamic environment.

3.     Maximise lease negotiations: Consider shorter-term and coworking options to minimise up-front costs. Renegotiate leases and contracts.

4.     Data-driven space utilisation: Leverage technology to automate routine tasks, track space utilisation to enhance overall operational efficiency.

5.     Prioritise energy efficient systems and upgrade: Achieving long-term cost savings by prioritising sustainability initiatives and green building practices.

6.      Drive employee engagement and satisfaction: Ensure a positive work environment to drive employee engagement, satisfaction and productivity.

“In response to evolving market dynamics, office occupiers in India are revolutionizing their cost optimization strategies, by embracing hub-and-spoke model, expanding flex space portfolios, and leveraging technology. Suburban and peripheral areas, offering affordability, are witnessing heightened demand, indicating a preference of sub-dollar or near-dollar markets. Flex spaces, especially with the rise of core-plus-flex models, are gaining prominence. At 8.7 million square feet of leasing in 2023 and highest ever space takeup by flex spaces, the segment has  witnessed remarkable expansion in recent years. Flex spaces are likely to continue the momentum in 2024, and is expected to constitute 15%-20% of total office leasing across the top 6 cities, underscoring occupiers’ pursuit of agile, cost-effective solutions to meet their evolving workspace needs.” said Arpit Mehrotra, Managing Director, Office services, India, Colliers.

Further,Asia Pacific is benefitting from more cost-conscious occupiers on a global scale, with greater uptake from Global Capability Centers (GCCs), particularly in markets such as India.

India’s Global Capability Centers- offering a compelling value proposition for global corporates

With global corporates increasingly seeking to optimize resources, maximize savings, and drive growth, India offers a compelling proposition. During Q1 2024, India continued to witness traction in GCC leasing activity. A significant 5 million square feet (msf) of leasing activity by GCCs, represented 37% of total office leasing across the top six cities. Looking ahead, GCCs are projected to lease between 45-50 msf of office space in the next two years, constituting around 40% of total demand. Heightened GCC activity is fueled by diverse occupiers spanning sectors such as BFSI, Technology, Engineering & manufacturing, and healthcare. Additionally, there’s a persistent preference for green-certified Grade A office spaces . Sub and near dollar micro markets remain pivotal for GCC space uptake in India, contributing nearly 80% of the leasing activity in 2019-23.

“India’s ascent as a premier GCC hub in the APAC region underscores its unmatched value proposition for global corporates. In the next 3 years, the projected leasing of 45-50 million square feet (msf) of office space by GCCs is poised to further solidify India’s position, driving over 40% of the country’s office leasing activity. Fueled by a robust talent pool, strategic location, and a steadfast commitment to sustainability, India remains a beacon for diverse occupiers aiming to foster innovation and fuel growth. Moreover, with over 150 msf of office supply at various stages of construction in the next three years, India continues to offer a plethora of high-quality office spaces at competitive prices, catering to the diverse needs of occupiers.”, said Vimal Nadar, Senior Director and Head of Research, Colliers India.

Also Read: At 4.45% Bengaluru’s Rental Yield Highest in Q1 2024, Mumbai Next with 4.15%

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In the world of real estate, things are always changing. Whether you’re thinking about buying or selling a luxury property, it’s important to know what’s going on. As we go through 2024, many things are affecting the market. Economic ups and downs, how society changes, and new gadgets are all part of the mix. Understanding these trends can help you make smart choices. Let’s look closer at what buyers and sellers need to know in luxury real estate this year.

What do buyers need to know?

1. Emphasis on Sustainable Living

People who want to buy fancy homes care more and more about the environment. They’re looking for houses with things like energy-saving appliances and materials that are good for the planet. These kinds of homes are really popular. If you’re considering buying, looking for a place that fits your green goals is a good idea. It’s not just about doing the right thing – it can save you money in the long run.

2. Integration of Smart Home Technology

In today’s world, where technology keeps improving, Luxury homes often come with cool gadgets. People love houses that have smart systems so they can control everything easily. Think of smart thermostats, lights you can control from your phone, security cameras, and fancy entertainment setups. Having these gadgets makes life more convenient, comfy, and secure. If you’re looking to buy a luxury home, it’s smart to check out places with all the latest tech – it’ll make your life easier and keep you up to date with the latest trends.

3. Demand for Wellness-Oriented Spaces

People who are looking for fancy homes really care about feeling good both physically and mentally. They want houses that help them stay healthy and happy. That’s why properties with things like gyms, spas, and peaceful outdoor areas are really popular. Buyers understand how important it is to take care of themselves, so they look for homes that give them a place to relax, recharge, and stay well. If you’re checking out luxury homes, it’s a good idea to focus on areas that offer these kinds of features – they’re like havens for feeling good inside and out.

4. Flexible Living and Remote Workspaces

With more and more people working from home these days, it’s changing how they think about buying a house. Now, buyers want homes that can be used for both work and living. They’re looking for places with rooms they can turn into home offices or study areas. They also like houses with flexible spaces that can be used for different things. These kinds of features are really important for people who want to balance their work and life easily. So, if you’re looking for a house, it’s smart to consider places that offer flexible living options – they make life a lot easier.

5. Exclusivity and Privacy

These days, with everything being so connected and shared, luxury home buyers value their privacy. They want homes in places where they can feel exclusive and hidden away from the busy city life. That’s why places like gated communities and tight security homes are popular. People also like houses with lots of trees and bushes around them and entrances that need to be more obvious. These features make the house feel special and private.

What do sellers need to know –

1. Highlight Smart Home Technology

Technology is a big deal in luxury real estate these days—people who want to buy luxury homes really like ones that have all the latest gadgets. So, if you’re selling a house, adding things like smart home systems, energy-saving tools, and security gadgets is a good idea. Showing off these cool features can make your property stand out and attract buyers who love modern technology and convenience.

2. Focus on Wellness and Lifestyle Amenities

In 2024, luxury homebuyers are highlighting wellness and lifestyle comforts that promote physical and mental well-being. Sellers should capitalize on this trend by highlighting the wellness-oriented features of their properties, such as fitness centres, spa facilities, and outdoor living spaces. Properties that offer a sanctuary for relaxation and rejuvenation are highly sought after in today’s market, and sellers should highlight these lifestyle amenities to attract discerning buyers seeking a holistic living experience.

3. Create Flexible Living Spaces

The rise of remote work and flexible lifestyles has reshaped how buyers perceive luxury properties, with an increasing demand for flexible living spaces catering to diverse needs and preferences. Sellers should consider staging their properties to showcase versatile living areas that can accommodate a variety of uses, including home offices, entertainment spaces, and relaxation zones. Flexible living spaces appeal to buyers seeking adaptability and functionality in their homes, making properties more attractive and marketable in today’s dynamic real estate landscape.

4. Prioritize Privacy and Security

In an era of heightened security concerns and privacy considerations, luxury homebuyers place a premium on properties offering exclusivity, privacy, and top-notch security features. Sellers should prioritize privacy-enhancing measures such as gated entrances, secure perimeters, and advanced surveillance systems. Emphasizing a property’s privacy and security features can instill confidence in potential buyers and differentiate it from competing listings in the market.

In conclusion, the luxury real estate scene 2024 is about changing tastes and how the market moves. If you’re looking to buy or sell a luxury property, keeping up with what’s happening is important. Understanding these trends can help you grab the best chances and make smart choices in today’s lively market. Whether you’re on the buying or selling end, staying in the loop is key to getting the most out of the ever-changing luxury real estate game.

Manju Yagnik, is the Vice Chairperson of Nahar Group and Senior Vice President of NAREDCO- Maharashtra

Also Read: RBI Keeps Repo Rate Unchanged

The post Luxury Real Estate Trends 2024: What Buyers and Sellers Need to Know in Today’s Market appeared first on Square Feat India.

Dr Niranjan Hiranandani, MD, Hiranandani Group
The status quo in repo rate by RBI is governed by a mix of global and domestic factors reflecting better anchoring of inflation and nimble liquidity management. With an outpaced GDP growth and a downward inflation curve trajectory, India’s economic performance is noteworthy despite geo-economic shocks. Development of infrastructure, increased labour employment, enhanced fiscal expenditures, improved governance, and regulations along with structural policy reforms reflect the RBI’s multifaceted approach to strengthening India’s financial stability. RBI indicates emphasises the need to consider macro-economic broad risk factors while keeping customer-centricity in mind while deploying effective monetary policy. Hence, retaining an accommodative stance even under the benign geo-political mood is a step in the right direction. The uptick in new project launches, fresh supply of housing units, soaring sales in luxury housing, record high property registrations, and an average price appreciation of 7% demonstrates the strong real estate market performance index in the backdrop of a conducive market scenario. An increase in government capital expenditures towards building physical infrastructure and fuelling liquidity management will continue to boost construction activities. This will increase employment, growth in GDP, housing demand, and economic stimulation. Industry highly recommends differential policy treatment to combat negative growth in the affordable housing segment. A calibrated approach including fiscal intervention, tax exemption or cross-subsidization is necessary to restore growth in affordable housing.

Anuj Puri, Chairman – ANAROCK Group
With the fundamentals of the Indian economy remaining strong despite all global headwinds and inflation well under control, the RBI once again decided to keep the repo rates unchanged at 6.5%, thus extending the festive bonanza that it gave to the homebuyers in its last two policy announcements. Thus, homebuyers retain their advantage of relatively affordable home loan interest rates.
If we consider the present trends, the housing market has been unstoppable, and unchanged home loan rates will help maintain the overall positive consumer sentiments. Given that housing prices have risen across the top 7 cities in the last one year, this breather by the RBI is a distinct advantage to homebuyers. Going forward, we can expect the momentum in housing sales to continue, significantly aided by the unchanged repo rates which will keep home loan interest rates attractive and also signal ongoing robustness of India’s positive economic outlook.

Ayushi Ashar – Director at Ashar Group & Member of Managing Committee of MCHI-CREDAI
The consistent maintenance of the repo rate at 6.5% for the sixth consecutive time reflects the central bank’s commitment to achieving the 4% Consumer Price Index (CPI) target. This stability in monetary policy is crucial for fostering economic predictability and sustaining investor confidence. An unchanged rate may seem static, signals a strategic approach to balance inflation control with economic growth. As a real estate developer, we acknowledge the importance of a steady interest rate environment, as it influences borrowing costs and subsequently impacts the property market. The resilience in the repo rate provides a conducive atmosphere for sustainable development.

Keval Valambhia COO CREDAI MCHI
Ensuring stability in interest rates holds profound implications for both the residential and commercial real estate domains. Keeping the Repo rates low will foster an environment of financial accessibility through consistently low borrowing costs. Stable interest rates serve as a pivotal catalyst for driving heightened interest and investment in properties across both sectors. This, in effect, generates a ripple effect of increased demand, thereby injecting vitality into the real estate industry and also to economy at large. Amidst the intricacies of economic fluctuations and market uncertainties, the imperative of prioritizing affordable housing cannot be overstated.

Anshul Jain, Managing Director, India & Southeast Asia and Head of APAC Tenant Representation, Cushman & Wakefield
The update is in line with the last policy statement from RBI where the expectation was for the benchmark repo rate to stay unchanged at 6.5% and to have the target inflation rate of 4%, down from the current average of around 5.5%. For the Indian Real estate space, we do not expect the today’s update to have any material impact on the on-going positive sentiment. However, we hope the interest rates start to drop soon as this will also revive sentiments of affordable homebuyers.

Manju Yagnik, Vice Chairperson of Nahar Group and Senior Vice President of NAREDCO- Maharashtra
The RBI has maintained the 6.5% repo rate, as expected. Nonetheless, considering that the macroeconomic conditions are favourable and the rate has been held at 6.5% for the past few quarters, the Indian real estate market and the overall economy would have benefited immensely from a rate reduction. This action will keep consumer housing costs and mortgage rates higher, and we hope it won’t negatively affect the feelings of prospective homeowners.

Dr. Samantak Das, Chief Economist and Head- Research & REIS, India, JLL
India’s economy, driven by accelerating growth indicators and softening inflation has provided comfortable legroom to the RBI to keep repo rate unchanged at 6.5% for the sixth consecutive time. Despite continued global uncertainties, India’s GDP growth has been strong due to robust domestic demand due to structural drivers of infrastructure and digital transformation of the economy. India’s residential markets in 2023 hit a historic peak, buoyed by positive buyer sentiment and still-healthy affordability levels. 2023 sales were in fact 25% higher than the previous highs seen in 2010. At the prevailing interest rates, we expect the residential sales market to clock a 15-18% y-o-y growth in 2024 too keeping the current momentum intact. Given India’s growth projections, we are hopeful that a future repo rate cut would give a massive fillip to affordability in 2024, which will be second only to 2021 peak affordability levels reported in JLL’s Home Purchase Affordability Index. This is likely to push India’s residential sales in value terms to over INR 3 lakh crore over the next year with the potential to double over the next five years, supported by the policy ecosystem and a pragmatic interest rate regime.

Vihang Sarnaik, Director, Vihang Group
We’re pleased with the RBI’s decision to maintain the status quo on REPO, especially given the ongoing inflation above the 4 per cent target. It aligns with market expectations, indicating a sense of stability in the current monetary policy. As a leading developer catering the middle-class housing aspirations, this will keep the housing demand intact. The decision to keep the repo rate intact will help developers like us who catering the middle-class aspiration of owning a home. It will help to continue the current momentum in real estate sales as even a 0.25 BPS increase would have impacted the home-buying sentiments in this segment.

Nikunj Sanghavi, Managing Director – Veena Developers, Treasurer – CREDAI MCHI
The decision to uphold the current repo rate is a welcome move in the face of a challenging economic environment world wide, showcasing a judicious approach to balancing diverse sectoral needs, including real estate. Recognizing the intricate dynamics in transmitting repo rate adjustments to lending rates, this decision provides a glimmer of positivity that holds the potential to invigorate buyer sentiments. Nevertheless, as an industry, we maintain vigilance, considering the cumulative impact of recent rate hikes on demand, especially in the affordable and middle-income segments. Emphasizing the broader economic interest and the housing industry’s well-being, we advocate for a future reduction in the repo rate by the RBI.

Also Read: Housing sales momentum to continue as RBI holds repo rate

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According to documents accessed by SquareFeatIndia, provided by Zapkey, the deal was registered on December 13, 2023.

The seller is Mega Trust, The buyer is Minal Dilip Desai and Dilip Desai, Dilip is the founder Chairman of DHC International.

The apartment is a duplex located on level 10 and 11 of Peninsula Bishopsgate, Bhulabhai Desai Road in Mumbai.

The total area of the apartment is 5874.19 sq ft and along with the house the new owners will also have access to five car park in the building.

A stamp duty of Rs 5.10 crore was paid for the registration of the apartment.

Also Read: Zapkey secures fresh funding from DSP and existing investors

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Since it was put into effect, RERA has been gaining increasing traction, particularly in terms of handling consumer complaints among various states and UTs. According to data from the Ministry of Housing and Urban Affairs, as of November 28, 2023, the relevant state authorities had resolved up to 1,16,300 cases.

Out of this, 38% cases (approx. 44,602 complaints) were resolved in Uttar Pradesh alone, followed by Haryana with 20,604 cases (18%) and Maharashtra with 15,423 cases (13%). The three states cumulatively accounted for nearly 69% of the total disposed cases under RERA in the country.

Registrations for projects and real estate agents under RERA have also been increasing steadily. Almost 1,16,117 projects and 82,755 real estate brokers nationwide were registered under RERA as of November 28, 2023. Approximately 71,307 projects and 56,177 real estate agents were registered over the same period in 2021. This represents a 63% and 47% growth, respectively, over the previous two years.

“Resolving homebuyer concerns is one of the main functions of the Real Estate (Regulation and Development) Act, which it has been demonstrably fulfilling,” says Anuj Puri, Chairman – ANAROCK Group. “More than 1.16 lakh consumer complaints have been handled by the various state and union territories’ RERA bodies, according to official data from MoHUA. Over the previous two years, the pace of project and real estate agent registrations was not slowed down.”

“In fact, over the past two years, project registrations have increased dramatically by 63%. Also, the RERA authorities of various states and UTs have resolved over 37,397 consumer complaints in this period,” he adds. “Uttar Pradesh has resolved the highest number of cases. Considering how severely Noida and Greater Noida in UP had been impacted by unscrupulous players, this is noteworthy.”

With 36% of all projects registered under RERA to date across 34 states and UTs, Maharashtra continues to lead the field in project registrations. With a share of 16%, Tamil Nadu is next, followed by Telangana and Gujarat, which have shares of roughly 7% and 11%, respectively.

RERA – Pan-India Progress

• Almost all states/UTs have notified rules under RERA. The North-Eastern state of Nagaland is still under process to notify its rules, while West Bengal – which earlier enacted its own legislation – was challenged on this by MoHUA before the Supreme Court. In March 2022, the apex court  struck down the West Bengal Housing Industry Regulation Act, 2017 (WBHIRA), stating that it overlapped with RERA, which was enacted a law in the Parliament.
• 32 States/UTs have set up a Real Estate Regulatory Authority since implementation, and of this at least 5 are interim. Ladakh, Meghalaya, Nagaland and Sikkim are yet to establish Real Estate Regulatory Authorities.
• 28 States/UTs have set up Real Estate Appellate Tribunal for disposing of consumer complaints, including 4 as interim. Arunachal Pradesh, Jammu and Kashmir, Ladakh, Meghalaya, Mizoram, Nagaland, West Bengal and Sikkim are still underway to establish theirs.
• Regulatory authorities of 30 States/UTs have operationalized their websites under RERA provisions. Arunachal Pradesh, and Manipur are under process to operationalize.
• 26 States/UTs have appointed adjudicating officers, while 10 States/UTs i.e., Arunachal Pradesh, Bihar, Manipur, Meghalaya, Nagaland, Sikkim, Uttarakhand, West Bengal, Jammu and Kashmir, Ladakh are yet to do so.

Also Read: MahaRERA floats paper on quality of construction

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The unstoppable Indian residential sector surpassed all previous highs in 2023 with housing sales creating a new peak quarter-on-quarter. Concurrently, the overall sales value of sold housing inventory also inched higher. Even before Q4 2023 sales numbers are collated, the strong sales momentum indicates that the total value of homes to have found buyers in 2023 will cross the INR 4.5 lakh Crore mark – 38% higher than the total sales value of entire 2022, which saw INR 3.27 lakh Cr worth of homes sold.

In just the first nine months of 2023, the total residential property sales value is already 7% higher than the whole of last year, with the top 7 cities seeing inventory worth approx. INR 3,48,776 Cr sold in this 9-months period. Entire 2022 saw approx. INR 3,26,877 Cr worth of inventory sold.

Between January and September 2023, approx. 3.49 lakh units were sold in the top 7 cities, against approx. 3.65 lakh units in entire 2022. In value terms:

• MMR topped the list with approx. INR 1,63,924 Cr worth of inventory (approx. 1,11,280 units) sold in the first nine months of 2023
• NCR follows with approx. cumulative sales value of INR 50,188 Cr (approx. 49,475 units) sold in this period 
• Bengaluru saw homes worth approx. INR 38,517 Cr (approx. 47,100 units) sold in 9M 2023 
• In Hyderabad, approx. 44,220 units worth approx. INR 35,802 Cr sold in the period
• Pune saw approx. 63,480 units worth approx. INR 39,945 sold till Sept. 2023, indicating a higher traction of budget housing in the city
• Chennai witnessed approx. 16,310 units worth approx. INR 11,374 sold in 9M 2023 
• Kolkata saw the lowest overall value (approx. INR 9,025 crore) of housing inventory (17,280 units) sold in the period – again indicating higher sales of affordable homes

Anuj Puri, Chairman – ANAROCK Group, says, “The fact that the housing sales value in 9M 2023 exceeded that of the whole of entire 2022 reflects the increased demand for premium luxury homes this year. This, along with the fact that average prices in the top cities rose by anywhere between 8-18% this year, makes an apple-to-apple comparison of annual sales values challenging.”

“If we look at the quarter-on-quarter sales values in 2023, each quarter saw consistent growth and overall sales value has already breached the INR 1 lakh crore mark,” says Puri. “In Q1 2023, homes worth INR 1,12,976 Cr were sold in the top 7 cities, Q2 2023 saw a jump of 1%, and then a further jump of 8% in Q3 2023. Sales in the ongoing festive quarter have been robust across these markets and the concluding quarter of 2023 will be no different. Thus, we expect the overall housing sales value to cross INR 4.5 lakh crore by 2023-end.”  

Sales Value Growth: 9M 2023 vs 9M 2022

Comparing the first nine months of 2022 and 2023 shows a 44% jump in total sales values of homes sold – from approx. INR 2,43,027 Cr in 9M 2022 to approx. INR 3,48,776 Cr in 9M 2023.

• Pune recorded the highest yearly jump (96%) in total sales values – from approx. INR 20,406 Cr in 9M 2022 to approx. INR 39,945 Cr in 9M 2023.
• Chennai saw a 45% jump in the overall housing sales values in the period – from approx. INR 7,825 Cr in 9M 2022 to approx. INR 11,374 crore in 9M 2023.
• Hyderabad saw homes worth approx. INR 35,802 Cr sold in 9M 2023, against a sales value of approx. INR 25,001 Cr in same period in 2022. In a year, Hyderabad saw housing sales increase by 43%.
• Bengaluru saw a 42% jump in total sales value – from approx. INR 27,045 Cr in 9M 2022 to approx. INR 38,517 Cr in 9M 2023.
• MMR saw a yearly gain of 41%, with total sales value of approx. INR 1,63,924 Cr in 9M 2023 against approx. INR 1,16,242 Cr in 9M 2022.
• NCR saw its overall housing sales value clock in at approx. INR 50,188 Cr in 9M 2023, against approx. INR 38,895 Cr in 9M 2022 – an annual increase of 29%.
• At 19%, Kolkata saw the lowest yearly jump in overall sales values in 9M 2023 against corresponding period in 2022. The overall value of homes sold in the city was approx. INR 9,025 Cr in 9M 2023, against INR 7,612 Cr in 9M 2022.

Also Read: Millennials and Gen Z constituted 53% of demand for home loans

The post Housing Sales Value to Cross INR 4.5 Lakh Cr in 2023, From INR 3.27 Lakh Cr in 2022 appeared first on Square Feat India.

Indian auto giants like Tata Motors and Bajaj Auto have been in operations here since over five decades. It is only after the recent arrival of international automobile giants like Volkswagen, Mercedes-Benz, Piaggio, Skoda, General Motors, Volkswagen and Fiat; has Chakan cemented its position as an automobile hub in India and globally as well. Recently, Bajaj Auto has leased 7.63 lakh square metres of land from MIDC (Maharashtra Industrial Development Corporation) in Chakan, near Pune, for Rs 53.43 crore, according to documents accessed by Proptstack.com. Bajaj Auto already has a plant in Chakan, where it manufactures two-wheelers. In addition, Pune is the cradle and home to many other important sectors such as Engineering, IT & Logistics etc.

Sharing his insights on Chakan’s prominence, Srikanth C, Managing Director of Intercontinental Infrastructure said, “Chakan’s transformation into an auto hub has not just made it a magnet for people seeking employment in the automobile sector, but it has also attracted and created an interest among real estate developers seeking to expand their footprint and benefit from this real estate boom. The area’s strategic location, combined with its growing infrastructure, makes it a popular destination for both people and business. Chakan has enormous growth potential and our projects here aim to give world-class living and working environments to the residents and professionals who choose to be a part of Chakan’s vibrant community.”

Chakan is a must-investment spot, and more people are looking forward to investing here. Thus, there are many properties available for sale in the locality. As per Magicbricks research, of all properties, 58% are available in the range of Rs20Lac – Rs40Lac. 33% of properties are available within 20 Lac. The most in-demand configuration is 1 BHK, accounting for 55% of properties available for sale. Multi-storey apartments account for 71%. With more people commuting to Chakan for investment or employment, rental properties are also growing in demand. Of all rental properties available, 62% lie in the range of 5-10K. 18% are available within 5K, and these are mostly apartments. 36% of properties are industrial sheds, and their rent lies in the range of 5-10K. The most sought property for rent is 1 BHK.

Chakan is strategically situated on the National Highway 50 which connects it to other major cities in Maharashtra. It is also in close proximity to the Mumbai-Pune Highway, Pune-Nashik Highway, Jawaharlal Nehru Port Trust (JNPT), Talegaon Industrial Area, Pimpri-Chinchwad Industrial Area, Pune International Airport and the upcoming Navi Mumbai International Airport.

Chakan’s reputation as an automotive manufacturing centre is one of the primary reasons driving its growth. Several major vehicle manufacturers have established manufacturing facilities here, taking advantage of its strategic position and strong connectivity. This inflow of industry with business hubs such as Talwade MIDC IT Park, Commerzone IT Park, International Tech Park etc., has not only produced a sea of job opportunities, but has also caused a huge demand for residential housing space. With Chakan’s growing prowess as an economic powerhouse we can expect the real estate sector to further bring with it stronger infrastructure, better amenities with higher living standards for the residents of Chakan. Going forward, we can expect property prices to further rise with investors guaranteed to earn attractive and higher returns on their investments.

Also Read: Real Estate Investment: the right time, the right place – the higher appreciation

The post Chakan, the auto hub driving residential real estate growth appeared first on Square Feat India.

In some other places developers are coming forward to pay these compensation amounts or settle the issue of compensation by compromising with the concerned consumers to avoid forfeiture of their income. In this manner, Rs 4.71 Crore have been recovered out of the amount ordered by MahaRERA for compensation to 8 out of 11 consumers in Nagpur.

Nagpur City Tehsildar Office has begun the process of sealing the bank account of Hagwood Commercial Developers Pvt. Ltd. for recovery of the amount. As a result, this amount has been recovered. MahaRERA has so far issued 1,053 warrants for recovery of damages amounting to Rs 627.70 crore.

Out of these, MahaRERA has so far been able to recover an amount of Rs 133.56 crore against 190 warrants. MahaRERA is continuously trying to recover the remaining amount. In this, 18 consumers from 6 projects in Nagpur area were expected to get compensation of Rs. 10.03 crores. Out of which compensation of Rs. 4.71 crores has been recovered, making it easier for the affected customers to get compensation.

MahaRERA is trying its best to ensure effective implementation of orders passed by MahaRERA regarding payment of interest/damages/refunds by holding hearings from time to time. Also MahaRERA is committed to further strengthen and empower this particular regulatory mechanism.

Also Read: Indian real estate poised for growth with potential access to untappeddomestic institutional capital

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Note: Commercial assets include office, retail, co-working, and hospitality projects.

Overall, the Indian real estate sector received institutional investments worth USD 679.9 million during the third quarter of 2023, up 82 per cent from the same period last year when inflow was USD 374.3 million.

Source: Vestian Research

The share of domestic investors accounted for 71% of total institutional investments received in Q3 2023. On the other hand, the share of foreign investors reduced to 27 per cent in Q3 2023 from 55 per cent in Q3 2022. However, the total institutional inflow in the July-September period fell 57 per cent when compared to the previous quarter due to a significant decline in foreign fund inflow.

Commenting on the report, Vestian CEO Shrinivas Rao said, “Institutional investments have slowed down during the September quarter due to limited interest from foreign investors amid a challenging global macroeconomic landscape.” However, Rao noted that large conglomerates are calling their employees back to the office which may inflate demand for office spaces across the country.

“As a result, upcoming quarters may witness increased investments on the back of this renewed demand from the office sector,” he observed.

Across various asset class, residential sector attracted the highest institutional investments during the third quarter of this calendar year, although the share has reduced to 44 per cent in Q3 2023 from 47 per cent a year earlier.

Share of commercial assets (office space, co-working, retail, and hotels) declined to 24 per cent in Q3 2023 from 40 per cent in Q3 2022.

Office assets attracted USD 164.1 million worth of institutional investments during July-September as against USD 150 million in the year-ago period.

On the other hand, share for the industrial and warehousing sector increased significantly to 28 per cent in Q3 2023 from a negligible share in Q3 2022.

The Government’s push for the ‘Make in India’ campaign and growing popularity of e-commerce resulted in increased demand for industrial spaces and warehouses across the country, Vestian said. “This led to significant interest from large investors.”

Also Read: Institutional investments in real estate rise 27% YoY at USD4.6Bn during Jan-Sep 2023; domestic investments up 1.7X

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Q1FY24 saw a mild softening in reported deal activity when as compared to Q1FY23 on a headline basis, finds ANAROCK Capital’s report FLUX for Q1 FY24. The reported numbers were propped up by a single large deal which accounted for about 3/4^th of the overall deal activity.

Shobhit Agarwal, MD & CEO – ANAROCK Capital, says, “Excluding this deal, private equity activity remained subdued owing to a high interest rate environment and global uncertainties. PE transactions in Indian real estate are, in any case, tilted towards equity investments in office assets by foreign investors. The single large deal between the consortium of GIC and Brookfield REIT with Brookfield AMC has further skewed the mix during the quarter.”

All transactions in USD ($) unless otherwise stated; Numbers rounded off to the nearest decimal.

FY = Financial Year (1st April – 31st March)

Source: ANAROCK Capital Market Research

Average Ticket Size & Share of the Top PE Deal

The average ticket size went up sharply in Q1 FY24, driven by a single large transaction in which a sovereign wealth fund partnered with a REIT to buy out commercial assets. The share of this top PE deal is 74% of the total PE deals in Q1 FY24. The global economic environment remains uncertain amidst the backdrop of elevated interest rates. Consequently, it is not surprising that deal volumes, with the exclusion of the Brookfield-GIC transaction, were soft in the quarter gone by.

All transactions in USD ($) unless otherwise stated; Numbers rounded off to the nearest integer.

FY = Financial Year (1st April – 31st March)

Source: ANAROCK Capital Market Research

Equity vs Debt Funding

Funding remained dominated by equity funding transactions.

FY = Financial Year (1st April – 31st March)

Source: ANAROCK Capital Market Research

Domestic vs Foreign Funding

Like in Q1 FY23, foreign investors accounted for most of the activity in Q1 FY24.

FY = Financial Year (1st April – 31st March)

Source: ANAROCK Capital Market Research

Movement of Capital Flow

Overall activity remained muted with headline numbers boosted by a large single deal, with assets across locations.

FY = Financial Year (1st April – 31st March). City specific PE investments are higher than the number suggests. However, they are part of the portfolio deals (multiple cities) where the bifurcation amongst the cities is not available.

Source: ANAROCK Capital Market Research

Asset Class-wise Funding

Driven by the Brookfield India RE Trust REIT – GIC transaction, investments in commercial real estate accounted for most of the activity in Q1 FY24.

FY = Financial Year (1st April – 31st March)

Source: ANAROCK Capital Market Research

Also Read: BKC property goes for Rs 1.15 crore rent per month

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