India's residential market is expected to sustain demand momentum despite rise in mortgage and property rates as sales this year across the top 7 cities are likely to breach pre-pandemic level of 2.62 lakh units, industry players said. After braving four back-to-back disruptions in form of demonetisation, RERA, GST and COVID-19 in the last 6 years, industry experts feel the housing market is going through a lot of structural changes and is now at the start of a long-term upcycle. Homebuyers body FPCE gives credit to the Real Estate Regulatory Authority (RERA) under the Real Estate (Regulation & Development) Act, 2016 for this improved buying sentiment.
Oberoi Realty has hit the top slot in Mumbai's ranking of the top-20 developers in terms of sales in 2021, evicting the Runwal group which was number one last year. The Lodha group which had occupied the top slot three out of five times since 2017 slipped to second place in 2020 and continues to be in the same position in 2021. The Oberoi group was in fifth place in 2019 and fourth place in 2020. This is the first time that it has occupied the number one position. The Runwal group which took the top slot in 2020 is down to third place in 2021.
CREDAI-MCHI, a body of developers in Mumbai, has pegged the drop in sales booking at around 80 per cent in the February-March period this year. This is the second highest fall in residential sales in the past five years, after Q1, 2017, when the decline, due to the note ban, was 37 per cent.
Hurun Report and GROHE India named Lodha Developers' M P Lodha and family as India's richest real estate entrepreneur with a wealth of Rs 31,960 crore, followed by DLF's vice chairman Rajiv Singh and Embassy group founder Jitendra Virwani in the second and third position respectively. Total wealth of top 100 Indians in the real estate sector stood at Rs 2,77,080 crore -- up 17 per cent against 2018. While Mumbai accounted for six of the top 10 and 37 of the 100 names, Delhi and Bengaluru had 19 residents each who featured on the list. Smita V Crishna of Godrej Properties featured as the richest woman.
Registration of housing properties in the Mumbai municipal region increased 35 per cent year-on-year to 7,556 units during this month on rising demand, according to Knight Frank. The registrations for September 2021 were 87 per cent higher compared to the pre-pandemic period of September 2019. "Mumbai BMC region (Churchgate to Dahisar and Colaba to Mulund) recorded its best September month performance. Recording 35 per cent YoY growth in property registrations in September 2021, 7,556 units is a 10-year best performance in the month of September," Knight Frank said in a statement.
Warehousing and logistics segment has been among the most resilient asset classes in the pandemic.
The sentiment in the real estate industry turned optimistic during October-December 2020 and the outlook for the next six months is positive on the back of revival in demand for both residential and office properties, according to a survey by Knight Frank India-FICCI-Naredco. The 27th edition of 'Real Estate Sentiment Index Q4 2020 survey' of developers, banks, financial institutions and private equity players operating in the sector was released on Monday in a video-conference. As per the report, the 'Current Sentiments Score', for the first time in 2020, entered the optimistic zone at 54 points in Q4 (October-December) 2020, a significant jump of 14 points over the previous quarter.
Work on projects worth Rs 1,000 cr in full swing: Gift City
Experts say that the lockdown and its aftermath will further quicken the consolidation in the real estate sector, which has been taking place since 2012, with more small players going out of the business and bigger, branded players dominating the market.
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"We are developing two projects in Chennai and Panvel near Mumbai which will have both residential and commercial properties. We are going to put in $4-5 billion over a period of 10 years in completing these projects."
Around 576,000 housing units, worth Rs 4.64 trillion, are delayed in seven major cities of the country
Urban planners and real estate experts say bad town planning in Mumbai and rising deaths during the ongoing pandemic are a "sad reality". Dev Chatterjee and Raghavendra Kamath report.
In a chat with Raghavendra Kamath, the group's co-founder and managing director, Niranjan Hiranandani, talks about the company's plans and the property market in the country.
83% of the CEOS plan to hire more in the new year.
Falling sales since demonetisation has alarmed CEOs, who want to save cash till the economy recovers.
Farmers too will get better deals
Offers 12.60% in revenue share to Cidco, while only other bidder GMR offered 10.44%.
Big Mumbai developers' inventory at Rs 53.4 crore.
Construction costs would be reduced to some extent and this benefit can be passed on to the customers, thereby spurring home buying
NRI demand would help offset the liquidity problem, which is presently affecting realty sales.
Disappointed with the RBI decision of not reducing policy rates, carmakers and real estate players today said the sectors, which are already reeling under a slump, will continue to suffer due to the high interest rate regime.
Several on-site labourers in the city want to take special trains being run to transport workers back home. The rising number of COVID-19 cases in the city has caused anxiety among them.
Cognizant, a leading provider of IT services on Wednesday opened its Mumbai development centre.
The year 2018 is likely to be steady in terms of institutional investment into real estate
Raghavendra Kamath reports on what ails India's real estate sector.
Hiranandani, K Raheja Builders, Gamon Infrastructure and Kalpataru are reported to have shown interest in the Rs 9,300-crore project, launched by the Slum Rehabilitation Authority (SRA) of the Maharashtra government.
Reliance Industries and Nitesh Estates, a Bangalore-based real estate developer, are in the shortlist to buy Hindustan Unilever's Brookefields property in Bangalore.
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Hirco Plc, a real estate investment firm floated by Mumbai-based Hiranandani Group,on Monday announced an investment of pound 47.9 million (about Rs 400 crore) to develop a township in Chennai.
Tamil Nadu has cornered around 18.63 per cent of the fresh investments in Q1FY21 and topped the list of state-wise investments. These investments should help create over 67,212 jobs.
Experts, however, caution that though the moves are positive for the sector as a whole, they don't expect much gain in the near-term.
Corporate leaders said a stable government at the Centre will help boost infrastructure spend, address agricultural distress, and encouraging employment.
With the insistence on data centres to be onshore, entities in real estate believe there is going to be a rise in demand for specialised Grade-A commercial spaces to set these up.
The Kanakia group, from which Mapletree did the purchase, had bought the plot from India Tube Mills and Metal Industries for Rs 363 crore in 2018.
'For 20 years, successive governments have failed to provide housing for the poor. Here, they were to get 400 sq ft flats for Rs 54,000,' says Prakash Ambedkar who was arrested by the Maharashtra government for getting thousands of people to submit forms for these apartments.
'This solid verdict would further strengthen his resolve to drive forward the economic agenda to ensure that the fruits of the economic momentum continue to reach the poor, so visible during the last five years.'
New law could pose challenges of cost escalation, increased paperwork, fear developers.
