The three southern cities collectively saw residential sales of 61,400 units between January and September 2019 as against 64,420 units sold in the first three quarters of 2018. MMR and Pune, on the contrary, saw the sale of nearly 93,930 units in 2019 against 70,740 units in the corresponding period in 2018. Altogether, the top 7 cities recorded sales of 2,02,200 units in 2019 till September, of which western cities comprised 46% overall share while southern region consisted of 30% share.
According to the report titled “The Herald of a New Chapter: Student Accommodation in India”, the Student Housing/Co-Living space is expected to witness an investment worth USD 700 million and an addition of 0.6 million beds by 2023 across the country. The Student Housing segment is witnessing rapid growth across all the major markets in the country and expected to witness a growth of 36 percent between 2019 to 2023.
India’s commercial office segment has been the favourite asset class of institutional investors over the years. They have allocated USD 17.6 bn in the form of direct investments during 2005-2019. JLL research indicates that 294 mn sq. ft. of office stock would be eligible for REIT. This would translate to an additional investment opportunity of USD 35 bn in near term.
Bengaluru maintains the top position in office space leasing, with a share of 30% in gross leasing during Jan-September 2019. Bengaluru recorded gross absorption of 12.1 million sq feet during Jan-September 2019, a 7% increase from same period last year, as occupiers continue to ramp up. IT-BPM and technology companies together accounted for 36%. Engineering and manufacturing sector’s leasing accounted for 18% share. Occupiers are preleasing space, and even taking up space in refurbished grade B buildings, due to tight vacancies in the market amidst healthy demand. The city’s vacancy stood at 8.8% at the end of Q3 2019.
Colliers International foresees robust demand from GICs, with leasing by GICs across six major cities in India to be in the range of 32.5 million sq ft between 2019 and 2021. Over 2014-2018, occupiers leased about 53.0 million sq ft of office space in multi-tenanted buildings for their GICs. Bengaluru led the demand with about 20.1 million sq ft, followed by Delhi NCR and Hyderabad. Further, we found that companies from the engineering, energy and manufacturing sectors favoured Bengaluru, which accounted for 32% of GIC demand between 2014-2018.
Among the major factors contributing to the escalating ‘claustrophobia effect’ of shrinking apartment sizes, demand for affordable homes in metros tops the list. Also, buyers are increasingly looking to avail the government’s credit subsidy benefits for affordable housing. These require a home to be priced
Institutional investments increased in the last ten years and have improved investor confidence, risk appetite and transparency. Enhanced use of technology across asset classes have changed the outlook of investors towards Indian real estate. As a result, investments have more than tripled to INR 1,400 bn during 2014-18 as compared to INR 465 bn during 2009-13, says the latest CII-JLL report ‘Innovation Led Opportunities – Changing India’s Real Estate Landscape’, released on Wednesday, Aug 21, at the 11th Edition of CII Realty & Infrastructure Conclave.
Some of the popular subvention schemes at the time included 20:80 or 25:75 payment plans wherein buyer paid 20-25% upfront while the developer paid the remaining 80% to the lending HFCs or banks on behalf of the buyer, until possession. The 5:90:5 scheme was the most common one on offer.
Sensing the potential of the student housing market, many start-ups have entered the fray. Student housing providers such as Oxfordcaps, Tribestays, PLACIO, Stanza Living, Campus Student Communities, Housr, Simplyguest, etc. currently operate in Delhi, Pune, Bengaluru, Noida, Mumbai, Indore, Dehradun, Ahmedabad and Jaipur. The top 10 players in the organized student housing space collectively operating slightly over 75,000 beds with plans to touch nearly 2 lakh beds by 2020.
A majority government at the Centre is gradually reviving private equity’s confidence in Indian real estate – especially the commercial sector. ANAROCK research indicates that PE players infused USD 580 mn into Indian real estate in the month of June, immediately after Modi 2.0 took charge.