Total net absorption for top seven cities as per asset completion timeline

Source: JLL Research

*Top seven cities include Bengaluru, Chennai, Delhi NCR, Hyderabad, Mumbai, Pune and Kolkata

Tech occupiers and Global Capability Centres (GCCs) flock to futuristic, modern assets

The South Indian cities, Bengaluru, Hyderabad, Chennai, as well as Pune are the tech and GCC hubs of the country, accounting for ~84% of all GCC leasing activity since 2021. The preference for modern assets is even more pronounced here as we have witnessed vacating of close to ~4.5 million sq. ft of space in buildings completed prior to 2016, considered as old assets.

On the other hand, there has been a total net absorption of ~70 million sq. ft in projects completed since 2021, clearly outlining how more modern assets are being preferred by global occupiers as a part of their real estate strategy. This is evident given that such assets provide the right mix of amenities and drivers to create a holistic workplace environment for employees as firms look to ramp up office occupancies.

Total net absorption for four cities as per asset completion timeline

Source: JLL Research

**Four tech cities include Bengaluru, Chennai, Hyderabad, and Pune

Green-rated Buildings: A game-changer but not solely defining

“The great push towards sustainable real estate has been quite evident in the past 3-4 years, driven in large part by the active occupiers in the country. This is visible in the fact that of the 164.3 million sq. ft completed since 2021, 71% was green certified upon project delivery. Resultantly, India has seen its share of green-certified office stock in overall Grade A stock rise substantially from just 39% in 2021 to 56% in March 2024.  What is more interesting is that, of the 94.3 million sq. ft net absorption recorded in buildings completed since 2021, 3/4th was recorded in such green-rated projects,” said Dr Samantak Das, Chief Economist and Head of Research and REIS, India, JLL.

The preference becomes even more evident given that green-rated buildings with completion dates of 2017-2020 also accounted for a 70% share of net absorption seen in buildings within this age group.

Completion timeline-wise total net absorption in green-certified buildings

“Green ratings are not the only factor in occupier decision-making. Building quality and finishes, amenities etc. are equally relevant. Older buildings despite being green-rated have shown occupier exits between 2021-March 2024 signaling that while being a critical factor, green ratings may not be the single determining factor. Building upgrades and futureproofing are key drivers to keep a building relevant for occupiers, which include factors around sustainability as well as overall project upkeep and amenities upgradation,” said Rahul Arora, Head – Office Leasing & Retail Services, India and Senior Managing Director – Karnataka, Kerala, JLL

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The ANAROCK Capital FLUX report for FY2024 finds that the aggregate value of private equity deals in Indian real estate has declined steadily over the past 5 years – from USD 5.1 Bn in FY20 to USD 3.7 Bn in FY24.

“The decline in PE investments in Indian real estate has been due to lower activity by foreign investors, due to global macro-economic factors and geopolitical instability,” says Shobhit Agarwal, MD & CEO – ANAROCK Capital. ”The share of foreign capital in total investments declined to 65% in FY24, against 78% in FY20. Correspondingly, investments by domestic investors have increased to 29% of the total capital inflows into Indian real estate in FY24, as compared to merely 8% in FY20.”

Top 10 PE Deals in FY24

Top 5 Equity Deals

Top 5 Debt Deals

The share of the top 10 deals has increased primarily due to the USD 1.4 Bn GIC-Brookfield deal (approx..40% of the overall deal value for FY24), reported at the beginning of FY24.

Share of top 10 deals – FY23: 54%, FY24: 72.5%

No. of Deals & Average Ticket Size

While the number of deals in FY24 is largely constant, the aggregate deal value has reduced due to a sharply lower average deal size. The average ticket sizes have reduced by 30% – to USD 75 Mn in FY24 from USD 107 Mn in FY20.

Movement of Capital Inflow

Multi-city transactions clearly stole the limelight during FY24, with the GIC-Brookfield transaction and the fund raise by Prestige Estates. NCR witnessed a relatively muted year, while MMR continued to dominate city-specific deal tables.

Equity vs Debt Funding

PE investors prefer equity investments, as evidenced by the fact that the share of equity deals remains healthy and at par with the average of ~75% in the past 5 years.

Asset Class-wise Funding

The commercial offices segment dominated PE transactions in FY24 with a 57% value share. This was largely due to the GIC-Brookfield deal, which accounted for approx.40% of total transaction value in FY24.

“While there has been a consistent share of PE investments in residential real estate at 28% YoY, there is a yearly decline of 17% in the same by value,” says Shobhit Agarwal. “This is due to a very high base in FY23, when investments had doubled over the previous years.”

         (in USD Bn)

Domestic vs Foreign Funding

In the overall investments during FY24, foreign capital saw its share drop to 65% in FY24 while the share of domestic investor rose to 29% (against 8% in FY20).

For all charts:

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

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

Source: ANAROCK Capital Market Research

FY24: Key Highlights & Events

• Residential

“Residential real estate witnessed another year of a strong upcycle due to increased project launches, sales volumes, and price appreciation. Demand for affordable housing reduced, and that for larger homes increased,” says Aashiesh Agarwaal, SVP – Research & Investment Advisory, ANAROCK Capital. “The luxury homes market continues to post a robust performance. Interestingly, demand for under construction properties rose sharply during the year. The improved sentiment has also encouraged large investor to increase their participation in the market. However, the aggregate investment in the sector is lower than in FY23, due to some larger-than-average transactions during the last year.”

• Commercial Office

Commercial real estate deals remained very thin on the ground, due to multiple factors such as the delayed notification of SEZ amendments, elevated interest rates, and global uncertainties. However, given strong demand fundamentals of commercial real estate, driven by leading IT companies’ determined push to return to office, increased traction of co-working spaces, a favorable capex cycle, the amendment of SEZ laws, and expectations of lower interests, commercial office real estate activity should strengthen over the coming quarters.

• Retail

The retail segment of Indian real estate is thriving due to economic growth. Key names in the nation’s mall development arena, including DLF, Lakeshore, Inorbit, Nexus and Phoenix, are aggressively pursuing expansion. This surge in capital allocations aligns with the expansion strategies of leading retailers, resulting in a substantial uptick in store numbers. Rentals are expected to firm up, since economic buoyancy and robust consumer sentiment has led to healthy demand and trading densities for retail assets.

• Industrial & Logistics

The industrial & logistics segment continues to hold promise for investors, with strong growth prospects on the back of robust consumption and expectations of manufacturing-led growth. While transactions in this segment were thin in FY24, they are expected to revive in FY25.

• SM REITs

Towards the end of FY24, SEBI notified amendments to REIT regulations, paving the way for Small and Medium Real Estate Investment Trusts (SM REITs). This move aims to regulate fractional ownership of properties. Under these regulations, the minimum subscription size is INR 10 lakhs, the minimum number of investors is 200, and asset size can range between INR 50 Cr to INR 500 Cr.

• Stressed Assets

While this segment has seen the emergence of a class of investors specializing in stressed asset resolutions, lenders are increasingly likely to settle with the promoters to avoid litigations.

• AIFs

In December 2023, RBI issued a circular barring lenders from investing in AIFs where the AIFs had lent downstream to companies wherein the lender had exposures. For existing investments, lenders were required to liquidate within 30 days, or to set aside higher provisioning (100%) for their investments in such AIFs.

However, the end of March 2024 brought a breather – lenders were allowed to invest AIFs which has invested in a debtor company of the former. The RBI also gave relief on provisioning norms – provisioning would be required only to the extent of the lender’s investment in the AIF scheme, which is further invested by the fund in the debtor company.

Also Read: Commercial Real Estate Market in Mumbai

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·       Mumbai and Chennai drove demand with 27% share each

·       3PL players contributed over 40% of quarterly demand

·       Retail and E-commerce segment saw about 2X leasing activity

Amidst steady leasing, new supply inched towards 7 million sq ft during Q1 2024, the highest in last two years. Around 33% of the new Grade A developments in the first quarter was concentrated in Delhi NCR. Industrial and warehousing leasing activity across the top five cities remained buoyant during Q1 2024 at 7 million sq ft. Mumbai and Chennai led the demand with about 55% share. Interestingly, leasing in Chennai, especially remained robust, with industrial & warehousing space take-up in Q1 2024 almost twice the leasing activity in corresponding period of last year. Across the top five cities, Bhiwandi in Mumbai with 1.7 million sq ft of Grade A demand, was the most active market for Q1 2024. Bhiwandi was followed by Oragadam in Chennai, which surpassed leasing activity of Chakan Talegoan in Pune for the first time in a while.

Third-party logistics players (3PL) continued to be the top occupiers of industrial and warehousing space, contributing to over 40% in the total warehousing demand. 3PL space uptake was driven by healthy activity in Chennai particularly. The city accounted for about 43% of the overall 3PL activity in the top five cities. Interestingly, at the Pan-India level, retail players accounted for 16% of the demand during the quarter, followed by engineering and automobile players with 12% share each.

Trends in Grade A Gross absorption (million sq ft)

Source: Colliers

Note- Data pertains to Grade A buildings

Trends in Grade A Supply (million sq ft)

Source: Colliers

Note- Data pertains to Grade A buildings

“While 3PL players continued to drive industrial & warehousing leasing activity, demand from Retail, Engineering and Automobile players too accounted for a significant share in Q1 2024. It is noteworthy to see that the cumulative share of these three sectors have risen from 26% in Q1 2023 to 40% in Q1 2024. This signifies changing consumption patterns and hints at opportunities emerging in the sector from the steady demand diversification.” says Vijay Ganesh, Managing Director, Industrial & Logistics Services, Colliers India.

Both retail and E-commerce segment witness over 2X surge in leasing

E-commerce segment has seen robust growth post Covid-19 and witnessed 2.3X times leasing during Q1 2024 compared to the same period in 2023. With increased focus on digital infrastructure and changing consumption patterns, E-commerce segment is further likely to warm up and create more demand for warehouses. Moreover, the rise of Q-commerce players is also likely to catalyze demand for bigger hub-warehouses.

Warehousing space uptake by retail players also witnessed heightened traction in Q1 2024 and witnessed more than twice the demand a year ago. The expansionary activity is being driven by strong retail activity across cities, especially in large department stores. Favorable consumption pattern has the potential to translate into healthy demand for warehousing space in the upcoming quarters.

Large sized deals account for over 50% of the industrial & warehousing space demand

During Q1 2024, large deals (>200,000 sq ft) accounted for 51% of the demand, a significant rise from about 40% share during 2023. Amongst these larger deals, 3PL companies continued to account for the bulk of share. However, the rise in share of large deals was driven by large space uptake, particularly by retail and E-commerce players during the quarter. Chennai followed by Mumbai dominated the proportion of large-sized deals across the top five cities.

“While the average quarterly industrial and warehousing space demand in the last two years has been at around 6 mn sq ft, average incremental supply has been comparatively lower. With continued healthy leasing activity in last few quarters, developer confidence seems to have significantly improved. With a Grade A supply pipeline of about 23-25 mn sq ft for the year 2024, supply is likely to closely follow demand trend across the top five cities of the country. Overall, an upbeat start to the year holds potential to translate into a healthy performance by the industrial & warehousing sector in 2024.” says Vimal Nadar, Senior Director & Head of Research, Colliers India.

top 5 deals for Q1 2024-

Source: Colliers

Note: Data pertains to Grade A buildings for top five cities- Bengaluru, Chennai, Delhi NCR, Mumbai and Pune

Vacancy levels largely remain rangebound amidst rising supply and healthy demandSupply infusion during the quarter was almost in line with the leasing activity, indicating improved developer confidence for the industrial and warehousing sector. At 11% by the end of first quarter, vacancy levels however increased by 120 bps as compared to Q4 of last year on account of churn and exits in the industrial and warehousing space. Amidst healthy demand and supply, rentals remained rangebound and rose by about 8% in select micro markets of Chennai and Pune.

Also Read: USD10 Bn investments to be deployed in data centers; stock set to double by 2026

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-Sole aim is to get a stalled or stressed housing project completed and homebuyer’s interest stays protected

-Deadline extension is permitted only after due diligence and receiving project completion’s guarantee

The Maharashtra Real Estate Regulatory Authority (MahaRERA) permits deadline extension to any housing project only to protect homebuyer’s interest and with certain conditions on the developer.

Even while the project’s deadline is extended, a homebuyer’s rights remain intact. If a flat purchaser does not get possession as per laid down timeline, he/ she can move MahaRERA, as per the regulations. It is the homebuyer’s right to move the housing regulator, should there be any violation of Real Estate (Regulation and Development) Act, 2016.

In case if a certain housing project fails to meet the extended deadline of a year, the developer is permitted to file for another additional time only after securing 51% consent from the homebuyers. Although the homebuyers provide their consent, their rights under the Real Estate (Regulation and Development) Act, 2016 do not get diluted. The aggrieved flat purchaser can continue to get a fair trial on the petition already filed or intends to move MahaRERA against the project/ developer.

In a scenario if a developer fails to secure 51% consent of the homebuyers, the MahaRERA has the right to grant conditional extension to the project, which was stalled for over a year.

MahaRERA’s only objective is to protect homebuyer’s interest.
Extensions are given after examining the reasons for delay and the efforts that the developer will put in to complete the project during the extended time. Extension is given after a due hearing and by imposing conditions to ensure project’s completion.

“Homebuyers usually put in their life’s savings to buy a home and are emotional about the same. There have been some people complaining that MahaRERA grants extension to projects, despite their grievances filed. I would like to reiterate the obvious, MahaRERA gives extension only after strict scrutiny of all such proposals and reasonable conditions to complete the stalled project. MahaRERA’s aim is to ensure a residential project gets completed under any circumstances and homebuyers get their rightful shelter. Grant of extension is conditional and all the rights of homebuyers remain intact,” said Ajoy Mehta, Chairman, MahaRERA.

Also Read: MahaRERA: Those submitting Quarterly Progress Report (QPR) without notice has increased from 0.03% in January 2023 to 52.60% in June 2023

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The ‘bigger is better’ mantra continues to drive the Indian housing market. The FICCI-ANAROCK Consumer Sentiment Survey (H2 2023), unveiled at the FICCI Real Estate Summit in Delhi today, finds that the highest homebuyer demand is now for 3BHKs, with at least 50% respondents picking this size. 38% respondent favour 2BHKs. The demand for 3BHKs stood at 42% in in the H2 2022 edition of the survey.

Despite increasing property prices, the demand for bigger apartments continues unabated and is, in fact, increasing. 3BHKs are particularly in vogue in Bengaluru, Chennai, Hyderabad, and Delhi-NCR. In hyper-pricey MMR, 44% of respondents preferred 2BHKs. The demand for 1BHK units is being primarily evident in the western markets of MMR (17%) and Pune (10%).

Aligned to the growing preference for bigger apartments, the demand for luxury homes priced >INR 1.5 Cr has also gained more traction. At least 20% of the H2 2023 survey respondents prefer to buy homes in this price bracket, against 12% in H2 2021. The INR 45-90 lakhs budget range remains the most popular, with over 33% prospective homebuyers favouring it.

Affordable housing demand has shrunk further, to 21% in H2 2023 from 25% in H2 2021, and 40% in H2 2020.

Anuj Puri, Chairman – ANAROCK Group, says, “The supply of bigger homes is seamlessly following the demand for them. ANAROCK data indicates that average flat sizes in the top 7 cities grew by 11% annually last year – from 1,175 sq. ft. in 2022 to 1,300 sq. ft. in 2023. The survey also finds that for the first time, the demand for ready-to-move homes is lower than new launches. The survey highlights that in in H2 2023, the ratio of ready homes to new launches is 23:24 against 32:24 in H2 2021. Interestingly, it stood at 46:18 back in H1 2020.”

The survey further highlights the growing inclination of homebuyers towards suburban areas and city centres, in line with the return to office (RTO) dynamic being witnessed post the COVID-19 pandemic. 30% of respondents in the current survey (H2 2023) chose suburban areas as their first choice for buying a home, against the 25% who preferred suburban areas in H2 2021.

The current survey also finds that:

• No less than 75% property seekers now want balconies. The desire for more open spaces within homes is a significant change from earlier years, when the focus was more on dedicating almost every square inch for indoor utilization.+ 
• 74% of the surveyed homebuyers insist on improved construction quality.

Other Key Survey Highlights

• 58% millennials & 39% Gen-X respondents intend to use their gains from other investments to purchase homes
• While real estate remains the most preferred investment asset class for over 57% respondents, there is also a growing sentiment towards Fixed Deposits (FDs) in the wake of rising interest rates
• More investors are now backing residential real estate – in H2 2023, about 36% prospective buyers will purchase properties as investment
• Over 73% survey respondents state that their home buying decision will not be impacted if home loan rates stay below 8.5%
• Inflation is not impacting disposable income as much as it did in the previous year’s survey – in H2 2023, 55% participants felt a notable impact of inflation, down from 61% in the H2 2022 edition

Also Read: Mumbai Coastal Road: A catalyst for real estate growth in Western Suburbs

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·       Unsold inventory in Delhi NCR dropped the highest during 2021-2023 period, at 19%, followed by Chennai and Pune

·       Housing prices across top eight cities in India increased 9% YoY in 2023

Amidst unwavering homebuyer confidence aided by a favourable interest rate cycle and positive economic outlook, housing demand scaled up and prices across the top eight^[1] cities in India surged by about 20% in the last two years (2021-2023). Bengaluru, Delhi NCR, and Kolkata have witnessed the highest rise in average housing prices at about 30% in 2023 compared to 2021 levels. This robust growth is underpinned by a notable uptick in housing demand, particularly in the mid and luxury segments. Amidst significant new launches, developers were able to successfully pass on the rising cost of construction in most cases.

Overall, the unsold inventory saw a notable drop in 2021 and largely continued to remain rangebound until 2023 end, despite significant influx of new supply. During 2022 and 2023 housing markets across the major cities saw an increase in new property launches, in mid and luxury segments. In cities like Bengaluru, Hyderabad, Kolkata, MMR, and Pune new supply surged 2-2.5 times in the last two years, reflecting robust activity and improved developer-market sentiment. With healthy visibility of upcoming projects from established developers and unchanged repo rate, the residential market will see sustained growth in the short to medium term.

Boman Irani, President of CREDAI National stated, “The year-on-year increase in housing prices is a combination of a number of factors – characterized by strong, robust demand from homebuyers – especially for mid and premium segments, along with the existence of a conducive buying eco-system coupled with healthy macro-economic factors, and the rise in prices of construction materials. The ongoing momentum also encouraged numerous developers that has led to the increase in housing supply across major cities in India. We expect both – housing demand and supply – to thrust forward in 2024 not only in top 8 cities but in Tier II, III regions as well.”

“Housing prices continued to reflect strong market momentum and saw a 9% annual rise in 2023. The year outperformed in several areas including uptick in high-end & luxury segments, scaling new peak in sales volume, infrastructure led development, resulting in deeper price discovery across most of the markets. During the year, all the eight major cities witnessed an increase in housing prices, with Bengaluru, highest at 21% YoY, followed by Kolkata at 11%. Looking ahead to 2024, the market is well poised to maintain its current trajectory, with the mid and luxury segments expected to thrive further, offering lucrative opportunities for investors and homebuyers alike,” Badal Yagnik, Chief Executive Officer, Colliers, India   

Pan India residential price trends (2021-2023) (in INR/sq ft) –

Source: Colliers, Liases Foras

All the prices are based on carpet area

Bengaluru saw heightened residential activity during 2021-2023

Bengaluru noted a significant 31% increase in housing prices during 2021- 2023. The city’s rising streak has been largely consistent over the last two years backed by noticeable uptick in demand for residential properties near IT localities like Whitefield, KR Puram, and Sarjapur. The peripheral and outer East and West sub-markets witnessed the highest price hike in the last two years in the range of nearly 50-60%. Additionally, the city saw an average 2X rise in new launches in 2023, compared to 2021, with significant surge in luxury and ultra-luxury property launches in peripheral areas within the North and East sub-markets, as they emerge as prominent IT hubs.  

Housing prices in MMR continues to witness a rise; unsold inventory swells

Average housing prices in MMR, the most expensive residential market amongst the top eight cities saw a modest yet steady 2% increase during 2023 compared to 2021 levels. Post-Covid-19, housing prices in MMR dipped and were steady henceforth for about three years. After a hiatus, prices increased during 2023 and inched closer to pre-Covid levels indicating recovery in the market. The sub-market of Panvel saw a significant surge with a 20% rise in the last two years, followed by Western Suburb (beyond Dahisar) and Navi Mumbai. The completion of the key infrastructure projects like Mumbai Trans Harbour Link (MTHL) and key metro lines, have led to a surge in prices in submarkets in and around Navi Mumbai and Western suburbs. With several upcoming major projects, housing prices are further expected to increase in the foreseeable future.

“Over the last two years from 2021 to 2023, cities like Delhi NCR, Chennai and Pune, registered a notable decrease in unsold inventory. While Delhi NCR led the pack with significant 19% drop, Chennai and Pune followed closely with about 5-10% drop each, during the two-year period. With an expected steady rise in income levels coupled with positive market sentiment, the demand momentum is likely to remain strong in these markets,” said Vimal Nadar, Senior Director and Head of Research, Colliers India.

“The current state of real estate is the most productive when sales, supply, and prices are growing, and the price rise is not speculative. These factors work in harmony in a balanced and healthy real estate market.”, said Pankaj Kapoor, Managing Director, Liases Foras.

Also Read: Oberoi Realty achieves gross bookings of ~Rs 882 crores during the launch of its new tower in Elysian at Oberoi Garden City, Goregaon, Mumbai 

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 Despite hardening property prices and home loan interest rate hikes in early 2023, it has been a superlative year for Indian residential real estate. Latest ANAROCK Research data indicates that housing sales in the top 7 cities have created a new peak in 2023, breaching the previous high of 2022. Approx. 4,76,530 units were sold in 2023 against 3,64,870 units in 2022 across the top 7 cities – rising by 31% Y-o-Y. The last peak in the decade was seen in 2022, after 2014, when approx. 3.43 lakh units were sold in the top 7 cities.

MMR witnessed the highest sales of approx. 1,53,870 units in 2023, followed by Pune with approx. 86,680 units. The two western markets together led residential sales in 2023.

New launches across the top 7 cities saw a 25% annual rise – from approx. 3,57,640 units in 2022 to approx. 4,45,770 units in 2023. MMR and Pune saw the most new launches, together comprising an nearly 54% share of total new launches in the year.

Anuj Puri, Chairman – ANAROCK Group, says, “2023 has been phenomenal for the Indian housing sector, despite global headwinds, rising domestic property prices, and interest rate hikes over the first half this year. Housing sales in the top 7 cities breached the previous high of 2022, and new launches stayed in step with the current housing demand.”

“It was widely expected that rising property prices and interest rates, along with global market upheavals and uncertainties, would impact residential sales,” says Puri. “The market put paid to these predictions. Q4 2023 maintained the strong momentum set during the entire year with more than 1,27,370 units sold in the period. Interestingly, NCR was seen as deliberately restricting new supply in the year, to approx. 36,735 units, though it witnessed extremely healthy sales at approx. 65,625 units. With this cautious approach, NCR reduced its unsold inventory stock by a very significant 23% annually.”

Demand is likely to remain undeterred in 2024, even with average prices likely to appreciate by 8-10% across the top 7 cities. The unchanged home loan rates in the second half of 2023 helped maintain the overall positive consumer sentiment.

“While housing price hikes over the year did give rise to demand concerns, the unchanged home loan rates helped keep sales on an even keel,” says Puri. “Inflation in India has also more or less stabilized, and further hikes in the lending rate seem less than likely. The Indian economy remains bullish, and this directly correlates to residential demand. And, equally importantly, new supply is dominated by Grade A developers who are completing their projects on time. This is a strong housing demand bulwark.”

Among the budget categories, luxury housing demand increased exponentially as homebuyers continue to look for bigger livable spaces post the pandemic. The new luxury supply addition across the top 7 cities in 2023 has jumped up five times when compared to 2018. There is no reason to expect luxury housing demand to taper off in 2024.

Housing Sales Overview City-wise

Source: ANAROCK Research

Residential sales stood at approx. 4,76,530 units in 2023 against 3,64,870 units in 2022 across the top 7 cities – rising yearly by 31%. MMR, Pune, Bengaluru, Hyderabad, and NCR, together accounted for 91% of the sales in the year.

• MMR recorded the highest sales in 2023 across the top 7 cities. With nearly 1,53,870 units sold in 2023, the city witnessed an annual increase of a significant 40%.
• Pune recorded sales of around 86,680 units in 2023 – an increase of 52% over 2022.
• NCR recorded sales of approx. 65,625 units in 2023, increasing by 3% over the last one year.
• Bengaluru saw approx. 63,980 units sold in 2023 – an annual increase of 29%.
• Hyderabad recorded sales of approx. 61,715 units in 2023 – a yearly increase of 30% over 2022.
• Kolkata recorded sales of approx. 23,030 units in 2023 – an annual increase of 9% over the previous year.
• Chennai saw approx. 21,630 units sold in Chennai in 2023 – a yearly jump of 34% over 2022.

New Launches Overview – City-wise

Source: ANAROCK Research

The top 7 cities saw approx. 4,45,770 new units launched in 2023, as opposed to 3,57,640 units in 2022 – an annual increase of 25%. The key cities contributing to new unit launches in the year were MMR, Hyderabad, Pune, and Bengaluru, together accounting for 83% of the total supply addition.

• MMR saw the highest number (approx. 1,57,700) of new units launched in 2023 among the top 7 cities. Over 61% of the new supply was added in the INR 40 lakhs to INR 2.5 Cr budget segment.
• Pune added approx. 83,625 units in 2023, a significant annual increase of 30% over the previous year. Over 80% of the new supply was added in the INR 40 lakhs – INR 2.5 Cr budget segment.
• Hyderabad added new supply of approx. 76,345 units in 2023 – an increase of 12% over 2022. Over 82% of the new supply was added in the INR 40 lakh to INR 2.5 Cr budget segment.
• Bengaluru added approx. 54,435 units in 2023, a yearly increase of 11%. Approx. 92% of the new supply was added in the INR 40 lakhs – INR 2.5 Cr budget segment.
• NCR launched approx. 36,735 new units this year – a significant 45% rise over 2022. Over 51% of the new supply was added in the INR 40 lakh to INR 2.5 Cr budget segment.
• Chennai added approx. 20,140 units in 2023, a whopping annual increase of 102% over the previous year. Over 82% of the new supply was added in the INR 40 lakh to INR 2.5 Cr budget segment.
• Kolkata added approx. 16,790 units in 2023, an annual increase of just 4% over 2022. Approx. 78% new supply was added in sub-INR 80 lakhs budget segment.

Price Movement

Source: ANAROCK Research

On annual basis, housing prices rose by between 10-24% across the top 7 cities, primarily due to increased input costs and strong demand. Hyderabad recorded the highest yearly jump of 24% in average residential prices – from INR 4,620 per sq. ft. in 2022 to nearly INR 5,750 per sq. ft. in 2023.

Available inventory as of 2023-end

On an annual basis, available inventory declined by 5% in 2023-end across the top 7 cities despite strong new housing supply during the current year. Approx. 6 lakh units are available for sale across the top 7 cities in India. Interestingly, NCR saw the highest decline of 23% in unsold stock on a yearly basis – from approx. 1,23,690 units by 2022-end to approx. 94,800 units as of 2023-end. This is the first time since 2013 that NCR’s unsold stock is less than a lakh units.

Also Read: Indian Real Estate: Altered courses and emerging stronger in 2024

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The NRI segment of buyers is expanding, with NRI sales doubling in the last two years. NRIs are attracted to the affordable property prices in India compared to other countries. According to a report by a realty firm, NRIs invested $13.1 billion in the Indian real estate market in FY21, and the inflow is likely to have grown 12% to reach $14.9 billion in FY22. In FY21, average ticket size of purchase from UAE-based NRIs has grown by 11.5% to reach $97,000.

Speaking on the sidelines of the recently concluded India Property Show 2023 held at Dubai, Dr. Sachin Chopda, Managing Director, Pushpam Group said, “We are absolutely excited at the response from NRIs in Dubai towards the holiday home concept and more importantly towards our holiday home property ‘Balibaug’ located at Alibaug near Mumbai.” 

“The holiday home concept has made huge inroads into the property landscape across the country. The high aspiration level among the burgeoning middle class has given this asset class a major push. People now are more health conscious and believe in taking short weekend breaks that relieves the monotony of a stressful city life. These short breaks rejuvenate body and mind and also serve a dual purpose of holidaying as well as earning regular income; whilst creating an asset that will appreciate over the coming years.”

Balibaug, located in the scenic coastal town of Alibaug, often referred to as ‘Mini Goa,’ offers a convenient escape from Mumbai, just a two to three-hour drive away and ninety minutes from the upcoming Navi Mumbai International Airport. Inspired by Bali’s architecture, Balibaug features 2 & 3 BHK luxury villas with private pools, gardens, open showers, terrace Jacuzzis, and international standard interiors. The resort boasts 20+ amenities, including three restaurants, a spa, banquet hall, party lawn, gym, and more. Alibaug, a popular weekend getaway for Mumbaikars, is easily accessible by road and sea, and the upcoming Mumbai Trans Harbour Link (MTHL) will further reduce travel time, bringing it even closer to Mumbai.

As per NoBroker.com, Indian residential real estate has witnessed a 35% growth year-on-year through the investment from NRIs. This burgeoning trend is especially evident in their preference for gated communities, which offer a host of amenities. Gated communities are a hot favourite amongst not only NRIs but the affluent Indian residents as well.

There are a number of factors that have contributed to making NRIs look at investing in the Indian real estate sector. These include the favourable exchange rates between Gulf currencies and the Indian Rupee, which makes it attractive for NRIs to invest here. Also, most NRIs invest here to earn on rental income given growing demand in the market.  It is also a good opportunity for them to diversify their investment portfolio.

There is a growing interest among NRIs and HNIs to invest in luxury second homes as they can rent out these properties and generate a steady rental income, since they live abroad. Generally, such properties are located at prime tourist destinations and offer high capital appreciation over a period of time or at the time of selling it. Owning luxury second home properties enhances social status and prestige within the community and among the Indian Diaspora. Most of such luxury second homes are located in coastal areas or hilly terrain but yet close to metro cities. These locations have excellent connectivity to the city with good social infrastructure in place. For instance, Karjat and Alibaug near Mumbai are favorite weekend holiday getaways and a second home destination for people living in Mumbai and Pune. This has attracted a number of such properties to develop increasing interest among the NRI and HNI community.

A study conducted by the NRI-focused fintech platform SBNRI revealed that approximately 53% of surveyed NRI investors asserted that India delivers superior investment returns compared to other countries where they have invested.

The Indian government has also introduced several initiatives to encourage NRI investments, such as allowing repatriation of sale proceeds, tax benefits, and simplified property acquisition processes. Also, NRIs have an emotional connect with their home country and these investments further build and maintain these strong ties with their country and family back home. Finally, Indian real estate becomes a crucial component of retirement planning for NRIs, offering a sense of security and a potential residence for their post-retirement years in their homeland.

The recently concluded Gulf News India Property Show brought together over 40 developers from India’s residential and commercial real estate sector, financial institutions, along with potential buyers. The two-day event offered families a chance to engage with India’s top developers, explore new projects, discuss their preferences and budget to take the next step forward. Inspired by the declining value of the Indian rupee and confident in the consistent growth of investment and rental returns, NRI investors are increasingly considering real estate as a secure avenue for deploying their assets.

Also Read: Decoding Property Regulations: Legal Considerations for NRI Real Estate Investors

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The property that they have sold is located on the first floor of Green Acres CHSL, Lokhandwala Complex, Andheri West, Mumbai.

According to documents the four flats were registered on two different dates, firstly the flat numbers 101 and 102 were sold on November 2, 2023. These flats were sold for Rs 6.02 crore.

The buyer of these two flats are Siddharth Narayan and Anju Narayan. The Total Built up Area of these two flats is 1870.57 sft (935.28 sft + 935.28 sft) Car parking spaces: 1 (open)

The second deal was carried out on October 12, 2023, and the flat numbers are 103 & 104, 1st Floor. According to documents provided to SquareFeatIndia by Zapkey, the buyer of these two flats are Muskan Bahirwani & Lalit Bahirwani.

The total Total Built up Area of these two flats is 1614.59 sft (810.31 sft + 804.28 sft) the new owners will also have access to Car parking spaces: 2 (open).

In the last three years this would be the fourth real estate deal concerning actor Janhvi Kapoor. Janhvi the daughter of late Sridevi and Boney Kapoor in December 2020, bought an apartment in Juhu for Rs 39 crore, she then in March 2022, finalised its sale to actor Rajkummar Rao for Rs 44 crore.

In 2022 again Janhvi Kapoor has bought an apartment, this time she along with her sister Khushi Kapoor and father Boney Kapoor bought a duplex for Rs 65 crore in Bandra.

The fourth deal is the sale of the flats in Green Acres CHSL.

Also Read: Janhvi, Khushi & Boney Kapoor buy Bandra Duplex for Rs 65 Cr

The post Janhvi, Khushi and Boney Kapoor have sold their property for Rs 12 Cr appeared first on Square Feat India.

Bank accounts of these developers’ projects are being frozen and they are banned from advertising, marketing and selling flats.

All these projects were registered in January this year and this decision has been taken by MahaRERA to enforce compliance of regulatory provisions from the very beginning.

Of the 388 projects, 127 are from MMR, 120 from Western Maharashtra, 57 each in North Maharashtra and Vidarbha, 16 in Marathwada and 11 in Konkan.

For the 746 projects registered with Maharera in January it was mandatiory till April 20 to update Forms 1, 2 and 3 on the MahaRERA website containing details of information such as how many flats, garages have been registered in the first 3 months, how much money has been received, how much has been spent, changes in the building plan (if any) etc.

Those developers who didn’t update, first were issued a notice to comply within 15 days by MahaRERA and even after this, those who didn’t were issued another show cause notice of 45 days asking them to comply and if they don’t then action of suspending their registration would be taken.

As a result, the bank accounts of these projects are being frozen and they will not be able to do advertise, market, or carry out sale of flats. Moreover, MahaRERA has instructed the concerned deputy registrars not to register any sale transaction (Agreement for Sale) and deposit in this project.

Basically, this is a legal provision in the RER Act so that this basic information is available at home to the customer who has invested or is planning to invest in these projects. MahaRERA has taken this strict action considering that this indifference of the developers towards the consumers is a violation of the rights of the consumers.

More than 100 of these developers have been sent an email regarding this order and the rest of the developers are also being informed about this decision in the next 2-3 days.

These are the projects registered in January 23. These projects were required to file, update these quarterly forms by April 20. Initially only 3 people updated this information. After sending the notices, 358 developers have responded and 388 have not responded.

Details of 388 projects
Mumbai Metropolitan Regaion:127
Thane: 54, Palghar: 31, Raigad: 22, Mumbai Suburb: 17, Mumbai: 3

Western Maharashtra: 120
Pune: 89, Satara: 13, Kolhapur: 7, Solapur: 5, Ahmednagar: 3, Sangli: 3

North Maharashtra: 57
Nashik: 53, Jalgaon: 3, Dhule: 1

Vidarbha: 57
Nagpur: 41, Wardha: 6, Amravati: 4, Washim: 2, Chandrapur: 2, Akola: 1, Yavatmal: 1

Marathwada: 16
Ch Sambhajinagar: 12, Latur: 2, Nanded: 1, Beed: 1

Konkan: 11
Sindhudurg: 6, Ratnagiri: 5

Also Read: MahaRERA soon to bring a method to monitor quality housing

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