This policy ‘trishul’ brought about a paradigm shift in the way Indian real estate does business and laid the groundwork for improved transparency and efficiency in the sector. However, while end-user and investor confidence were rekindled for real estate, it did not exactly set the industry on fire with renewed interest.
It would be pertinent to note that raging infernos spared no one – be it rich or poor, residents of newly-built high-rises or the squalid slums, all fell victim to the scourge of flames which enveloped their structures, turning their cherished homes into death traps.
The share of mid-market houses costing INR 20-50 lakh in the overall residential sales in the country has been progressively rising, touching an all-time high of 42 percent of total transactions in the second half of the current financial year 2018-19, according to data released today by India’s largest marketplace for new homes Square Yards.
This growth is witnessed across five major cities – Mumbai, Gurugram, Noida, Bengaluru and Pune, where 4000 homebuyers were surveyed by 360 Realtors to understand buying trends. One of the key driving factors for the increase in investor interest is the impact of policies such as RERA. Assured rentals and EMI payouts after possession, offered by developers have also significantly boosted investor confidence.
In India, when the going was smooth a number of leading developers tried to foray into multi-city operations. Most of them had to exit the expansion strategy sooner than later. It rather proved to be the first nail in the coffin for some of these market leaders by size.
Sunil Goel, the second largest promoter and shareholder of Omaxe Group has alleged for financial fraud at Omaxe Group. He has filed a legal petition against Rohtas Goel, Chairman & Managing Director, Omaxe Ltd for malpractices and financial mismanagement carried out in the company allegedly by Rohtas Goel.
Irony is that even though the sector has succedded to some extent in attracting the young talent by poaching on professionals from established and matured sectors like IT/ITeS, banking, finance and telecom etc, the retention of these professionals have been quite challenging.
The first quarter of 2018 has started on a positive note with a 23% YoY increase in the gross office take-up in India. As per Colliers International, approximately 11.4 million sq ft (1.02 million sq m) of gross absorption was recorded in Q1 2018.