Part-I of this three-part series dives into Delhi-NCR's SPR, Sohna, Dwarka Expressway, and Jewar Airport leading the charge.
While demand for sub Rs 50-lakh affordable housing prevails, market players cite increased land rates, escalated construction costs and low margins as key prohibiting factors.
'In the past six months, capital markets have seen a dip, and realty is struggling. The stock-market investor will be cautious of putting that investment in real estate when there may be a slowdown coming.'
Mumbai -- home to industry titans and Bollywood stars -- is witnessing a slow offtake of houses priced between Rs 10 crore and Rs 50 crore. Industry insiders and real estate watchers explain why.
The government on Tuesday proposed reducing the long-term capital gains tax on immovable properties to 12.5 per cent from 20 per cent, but removed the indexation benefits to adjust for inflation, a move experts termed as "negative" for sellers.
With the arrival of the second Covid wave in April, the numbers fell by almost 50 per cent.
The maximum fall on total market valuation will be in Mumbai (Rs 2,00,330 crore) followed by Bangalore (Rs 99,983 crore) and Gurgaon (Rs 79,059 crore).
PropEquity, the real estate data analytics and research firm, attributed the fall in absorption in these markets to lack of demand from investors.
Sales in newly launched residential products have gone up slightly owing to discounted prices. But will this trend sustain?
'If they are taking marquee locations and, say, are paying 50 per cent higher rent, those locations will see a spurt in rates as well.'
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.
Housing sales dipped by more than half in the first quarter of 2012 in Mumbai and national capital region due to high prices and uncertain economic conditions, and a continued downtrend could force builders to sell homes at up to 20 per cent cheaper rates, says a report.
Home seekers demand has exceeded supply and hence there is a possibility of rentals going up by atleast 10 percent.
In markets such as Mumbai, prices have gone beyond Rs 1.5 cr to Rs 2 cr which is beyond reach of most of the salaried class
Bengaluru saw a 23% decline in home sales and a 3% fall in prices.
Financial planners advise against putting capital to work by anticipating what might go up or down.
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.
Listed realty developers saddled with unsold properties worth Rs 1 trillion
Markets such as Bengaluru and Chennai, which had managed to escape the impact of real estate slowdown so far, appear to be giving in now.
HFCs and banks expect a drop in demand for housing loans in the short-term.
Slump in realty market to add to woes, debt of top players likely to rise 15-20% this financial year
Currently, there's a shortfall of 23 million houses in India.
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Experts say in the serviced apartments space, developers, primarily from the hospitality sector, are targeting non-resident Indians, expatriates and now, even domestic investors.
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Some major property companies based in South India, such as Puravankara and Sobha Developers, are spreading their wings in the high-growth National Capital Region market.
A fourth of the property market is cash-based and this has affected home sales after high value notes were scrapped.
The festival season holds out hope for the real estate industry as demand from end users increases in many markets.
Experts attribute this to economy slowdown and political uncertainty with the general elections round the corner.
Call it an expectation of revival in the real estate market or improving liquidity, bulge bracket property deals have made a comeback in the country's commercial capital.
The sector's performance in delivery also saw a decline -- only 23.5 per cent of the committed units were delivered during the first six months of this year, show data from research firm PropEquity.
In a trend that has taken off in a significant way, more and more developers are launching independent floors with lawns and basement/roof terraces in gated communities, to attract buyers, who otherwise opt for builder floors prevalent in the unorganised real estate sector.
PE funds have invested Rs 13,000 cr into the property market in Bengaluru.
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The year so far has witnessed several luxury project launches by major real estate companies such as DLF, Unitech, Supertech, Tata Housing and Godrej Properties.
Struggling, corrupt construction industry will be challenged by the prime minster's $250-billion plan
