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Alternate Investment Fund : A REAL Opportunity FACE TO FACE Manoj Gaur MD, Gaursons India Ltd.
Publisher
Raj Kumar
Editor’s Letter
Editor
Vinod Behl
Advisory Board
Combating
Corona
Dr. PSN Rao
Chairman, DUAC & Director, SPA, New Delhi
Disruption
Ramesh Nair
Country Head & CEO JLL India
Pradeep Aggarwal
Chairman, Assocham National Council on
Real Estate, Housing & Urban Development
There seems to be no end
Ambar Maheshwari to disruptions to real estate
CEO, PE Funds,Indiabulls Asset Management revival. The sector had hardly
recovered from the adverse
Farook Mahmood impact of NBFC crisis that
Founder President & VC NAR- India & the new mega disruption
President, FIABCI India has come in the form of
COVID - 19. Considering that last
Ankit Kansal year commercial real estate
MD, 360 Realtors had performed splendidly and
residential sector had shown
Sachin Sandhir green shoots with about 6%
CEO - India, Valocity YoY pick up in sales, the latest
disruption may prove costly for
the sector facing slowdown.
Editorial ADB estimates that Corona crisis
may cause damage of $77 - 347
Assistant Editor to global economy. For India, Crisil
Vishal Duggal has conservatively put the total
cost of lockdown to at least 8 lakh crore and expects GDP growth for the
Senior Reporter next financial year dropping to 3.5%.With real estate contributing about 8%
Sujeet Kumar Jha to GDP, hit by Corona, it could severely dent economy which is already
Vishnu Rageev R. facing the heat.
India is among the top 15 most affected economies of the world as China
Content Research
is its second largest trade partner. According to the United Nations
Shubhra Saini Conference on Trade and Development (UNCTAD), India could lose $ 348
Photographer million in trade. The fall out of Corona virus is already visible in India on the
hospitality and retail sector as due to lockdown, operating costs exceed
Atul Chaudhary
revenues which have dried up. Besides retail, it will affect office segment
as well with occupiers postponing fresh take up and renegotiating lease
contract for lower rents. The beleaguered residential sector has got a big
Creative & Design hit with crashing sales even during the festive Navratras as marketing
teams of developers and brokers are not able to meet prospective buyers
Art Director and even site visits are not happening. Even planned physical launches
Kumar Mangalam with channel partners and brokers have been severely impacted.
Besides massive dent in residential sales, closure of malls and multiplexes
has adversely impacted rentals, further deepening the cash flows crisis.
Enquiry With projects construction coming to standstill , this will cause delay in
Editorial completion of projects, putting further financial burden on developers.
This poses further risk of defaults and delays in fulfilling financial
editor@proptoq.com commitments for cash - strapped developers. With the global economy
Advertising in tailspin, FDI inflows into different sectors including real estate will be
advertisement@proptoq.com heavily impacted, in turn worsening the situation related to availability of
capital.
Subscription The extent of damage to Indian economy in general and real estate in
subscription@proptoq.com particular, depends on how prolonged Corona crisis will be and how
effectively it is tackled. The Finance Ministry has made announcement of
Rs 1.7 lakh crore Corona Relief Package and RBI's latest monetary policy
drastically cutting repo and reverse repo rates by 75 bps and 90 bps
respectively besides other measures to infuse substantial amount of
liquidity in the system. Since the last MPC meeting of February 2020, the
RBI has injected liquidity of Rs 2.8 lakh crore through various instruments,
equivalent to 1.4% of our GDP. Together with the recent measures, RBI's
Copyright PropTOQ. All rights reserved. liquidity injection is to the tune of 3.2% of GDP. SBI expects real relief to
No part of this publication may be reproduced realty sector with deferment of Rs 50000 - 60000 crore repayment of
loans. What's equally heartening is that country's biggest lender, SBI has
in any form without the written permission
transmitted the entire 75 bps rate cut to customers. This will ease the
of the publisher. All disputes are subject to the financial burden of home buyers and debt-ridden builders and help save
jurisdiction of competent courts and the financial ecosystem from getting destabilised.
forums in PAN india. But then considering the magnitude of the crisis and its economic fallout
in the coming months, one expects more sector- specific short- term and
medium and long-term measures from the government to retrieve the
Corporate Office situation. This may include scaling up of distress fund for the real estate
sector and speeding up its deployment and relief in the form of taxation
PropTOQ Media & Technologies Pvt. Ltd. including GST on construction material, EDC, Income Tax etc, On regulatory
203 - Global Foyer, Golf Course Road, front too, the sector needs relief in the form of suspending IBC for a short
Sector 43, Gurugram, Haryana - 122002 period to ensure no insolvency cases arise during this period. Also, in view
0124 - 420 0065 of construction shutdown and non-availability of construction material,
RERA should extend the project completion deadlines to avoid penalty
to developers. All these measures may well help the sector to contain the
Printed by damage caused by COVIND-19, on road to its revival and growth.
The Prints Hub
Plot No 124-125, Udyog Vihar, Phase-VI,
Sec-37, Gurgaon 122001 Vinod Behl
GST No - 06ALFPA1251R1Z5 Vinod.behl@proptoq.com
vinod.behl v_behl vinodbehl
Not For Sale
For Private Circulation Only
50
Face
To Face
Manoj Gaur
MD, Gaursons India Ltd.
Talks about the group's
successful journey over the
past 25 years and future
plans to drive next wave of
growth. Excerpts.
C VID 19
SPECIAL STORY
Crisis-
Impact
36 on Real
Estate
The COVID-19 onslaught has
Alternate caught the fledgling real estate
completely unaware, dealing it
a big blow , especially when it
was on its way to recovery.
Investment Fund :
A REAL 12
Opportunity
CONTENTS
APRIL 2020
Regulation Destination Report Retail
27 56 62
Maha RERA Devanahalli: $ 21.6 Billion
Raps Over 980 Bengaluru Transit Retail
Defaulting Shining Star of Opportunity
Developers Real Estate by 2030
Maharashtra Real Estate Once a quite suburb of Transit real estate will throw up
Regulatory Authority (MahaRERA) has North Bangalore, Devanahalli immense opportunity for retail in
rapped 984 developers for failing to today has come up as a prime the coming years...
complete their projects... destination...
46 81 94 +
Architecture Alternate Realty Plus
& Interiors Asset Classes Etc. News Line,
Web - Based Pallonji Set to Housing.com Pot Pourri,
Collaborative Interior Enter Warehousing Enters Product Line,
Design Tool Space CoLiving News in Numbers
and much
more…
GODREJ
PROPERTIES
RERA : P52100022153
ABOUT GODREJ HILLSIDE
How would you feel living in a home where every day nature’s new wonders await you with sun’s first ray, the serene
breeze of the riverfront puts you to sleep at night & where the vast 8+ hectares of Accessible Greens offer you a
massive space to rediscover yourself. With conveniences like Schools, Hospitals, SEZ, Retail, Elevated club house,
Boat club etc, living here will surely be the best thing that will happen to you every day.
Upcoming 161.73 km-long Ring Road to Upcoming International Airport in Navi Mumbai with the
connect all the major hubs of Pune1 capacity to handle 25 million passengers yearly4
Development of Pune road towards Development of Pune road towards
Satara – Bangalore highway6 Satara – Bangalore highway6
Pune emerged as the most livable city in India Upcoming 63.84 km Railway line
as per Ease of Living Index 2018 released by the from Lonavala to Pune7
Ministry of Housing and Urban Affairs5
MAHARERA : A51900000246
1800 1200 360
Potpourri
HDFC Named
Leader in
Corporate
Governance
by BSE Limited,
IFC and
Institutional
Investor
Advisory Newsmaker
Services. Irfan Razack, Chairman & MD of
Prestige Estate Projects, the largest
listed property firm after DLF, has
made it to the coveted Billionaire
Club., with his and his family wealth
crossing $ 1 billion.
Event of
the Month
Enforcement World
Directorate Property &
Arrests DHFL Investment
Promoter Kapil Show
Wadhawan in March 21-22 , 2020
PMCA Case. Lalit Hotel, New Delhi
April 20 - PropTOQ | 7
NEWS IN NUMBERS
Top
CoLiving
Players &
Their YEAR OF
INCEPTION
Footprint 2018
onth
₹ Rate /person/ m
₹ 6,000 - ₹18,000
NUMBER OF BEDS
40,000
PRESENCE
Delhi, Noida,
Gurgaon,Ghaziabad,
Bengaluru, Mumbai,
TARGET AUDIENCE Pune, Kolkata, Hyderabad,
Working professionals Chennai, Jaipur,
and students Coimbatore, Mysore
YEAR OF YEAR OF
INCEPTION INCEPTION
2016 2015
th th
₹ Rate/person/ mon ₹ Rate/person/ mon
₹6,500 - ₹30,000 ₹6,500 - ₹30,000
YEAR OF NUMBER OF BEDS NUMBER OF BEDS
INCEPTION 20,000 5,000
2015 PRESENCE
Bengaluru, Chennai,
Hyderabad
PRESENCE
Delhi, Gurgaon, Noida,
Bengaluru
onth
₹ Rate / person /m
TARGET AUDIENCE TARGET AUDIENCE
Working professionals Working professionals
₹ 6,000 - ₹12,000
and students
YEAR OF YEAR OF
INCEPTION INCEPTION
NUMBER OF BEDS 2016 2016
50,000 ₹ Rate/person/ mon
₹13,500 - ₹27,000
th
₹ Rate/person/ mon
₹14,000 - ₹20,000
th
PRESENCE NUMBER OF BEDS NUMBER OF BEDS
Delhi, Gurgaon, Noida, Mumbai,
Coimbatore, Bengaluru, Kota, Pune, 1,500 1,500
Hyderabad, Chennai
PRESENCE PRESENCE
Bengaluru Bengaluru
TARGET AUDIENCE
Working professionals and students TARGET AUDIENCE TARGET AUDIENCE
Working professionals Working professionals
and students and students
Source: Compiled by ANAROCK Research
8 | PropTOQ - April 20
NEWS IN NUMBERS
Cost
Overrun Tops
₹4 LAC
The cost
overrun is due to
numerous factors
such as fund
constraints,
Crore
shortage of
labour and land
acquisition delays.
Total Cost Overrun
1698 ₹400,722 Cr
Number of
Projects
under
implementation
Original Implementation Cost
₹20,41,115 Cr
400
No. of
projects
facing Anticipated Implementation
cost cost of projects
₹24,41, 837 Cr
overrun
10 | PropTOQ - April 20
AVERAGE TIME
OVERRUN FOR PROJECTS 39
monthsSPECIAL STORY
C VID-19
Crisis
Impact on
Real Estate
The COVID-19 onslaught has caught
the fledgling real estate completely
unaware, dealing it a big blow,
especially when it was on its way
to recovery. The prolonged Corona
outbreak will have deeper impact on
projects cash flows and execution
ability. And combined with ongoing
credit squeeze, expected dip in FDI
and contracted fund raising capability
through equity market and REITs,
realty will face significant credit
pressures.
Though the Finance Ministry and
RBI have taken timely and pro active
policy measures with room for further
fiscal stimulus, the success of these
initiatives will largely depend upon
how quickly liquidity tools are put into
action to notch up economic revival.
But real estate has shown great
resilience in the past against heavy
odds and is showing the same now to
meet the emerging Corona challenge.
Especially as the Corona-hit sector
throws up lot of hidden opportunities.
12 | PropTOQ - April 20SPECIAL STORY
Resilient
Realty
ON WAY TO
TRANSFORMATION
360 Realtors
White Paper on
COVID-19
& Real Estate
The world is grappling with marked by a slowdown
the outbreak of deadly in site visits, transaction
COVID-19 virus that has volumes and new launches.
resulted in thousands of However, the industry
casualties, besides lakhs of continues to fight against
people infected with the the odds. Most of the real
virus, in turn crippling the estate companies have
global economy. adopted Work from Home
(WFH), to prevent any sharp
India has also seen the rapid
dip in productivity levels.The
spread of Corona virus .
companies are following the
The Indian economy which
policy of WFH & adhering to
has already been facing
the best possible hygiene
slowdown, has got a big hit.
measures. They are also
And if not put under control,
bringing in a lot of sales
the crisis will surely assume
& operational processes
greater proportions.
online to stay productive.
The negative impacts In the past as well, the real
are reverberating around estate sector had shown
different sectors. Especially, great resilience, having
the sectors like tourism, successfully absorbed
aviation, entertainment, many shocks in the form of
food & beverages real RERA, Demonetization, GST,
estate and retail are some NBFC crisis, etc. This time
of the worst-hit sectors as as well, with collective and
revenues have plummeted concerted efforts, the sector
drastically. may well be able to contain
The downtrends are visible the downside risk of Corona
in the housing markets, and emerge stronger.
April 20 - PropTOQ | 13SPECIAL STORY
Physical interactions
have given way to
phone enquiries
and online meetings.
Digital campaigns are
being run though budgets
have been compressed.
There are hidden
opportunities in Corona
crisis with the sector looking
forward to investing more in
online platforms and digital
marketing tools.
Ankit Kansal
Founder & Managing Director
360 Realtors
It might take some time to either been suspended or have as well. Many buyers are in a
evaluate the long-term losses been delayed due to Corona wait & watch mode and want
in the real estate industry, onslaught. Developers are forced to wait till the crisis abates.
triggered by the outbreak to take a backseat and are back Although this does not mean
of COVID-19. However, the to the drawing board to have that serious buyers have
initial research has shown a a relook at their sales strategy. completely gone away. Most of
considerable dip in the site visits Numerous planned events the people are working from
and transactions alongside have been cancelled. This time home and are getting ample
drying up of new launches. This of the year one usually sees a lot time to discuss and do research
despite the fact that the festive of festive offers & freebies from about properties. Enquiries over
time in March-April is one of the the developers,but not this time. the phone and online meetings
most opportune time for home are happening and marketing
Site inspections and visits
buying . campaigns are still being run,
have come to a grind, thereby
though budgets have been
As of March, new launches have affecting the sales momentum
depressed.
Monthly Reduction in Site Visits
(till 3rd week of March)
80% 74 %
60%
52 %
40 %
40%
35 %
28 %
20%
00
Gurgaon Noida Bangalore Pune Kolkata
Source: 360 Realtors Research
14 | PropTOQ - April 20SPECIAL STORY
Monthly Reduction in Telephonic Enquiries
(till 3 rd week of March)
50% 47 %
40% 34 %
29 %
30%
20 %
20%
18 %
10%
00
Gurgaon Noida Bangalore Pune Kolkata
Source: 360 Realtors Research
As per the initial research by Home (WFH) is enabling many Overall, looking at the current
360 Realtors, till the 3rd week of buyers to have a more detailed numbers, the adverse impact of
March, site visits and physical discussion on properties over COVID-19 will reverberate across
inspection of properties in the phone. various parts of the economy &
Gurgaon have reduced to the strain is visible in the real estate
As Maharashtra was one of
tune of 40%, when compared to industry as well. The Q1 sales of
the first states to implement a
the same period a month before. most of the major developers in
lockdown, the adverse impact
The reduction has been even
on Pune’s property market India are expected to come
higher in markets like Pune and
is visible. However, Pune also down. As the government is
Noida. Pune has been one of the
has one of the least volumes of further tightening the control
hardest hit, as site visits have
unsold inventories and hence, measures, in the weeks to come,
come down by almost three
the setback is not expected buyer sentiments and actual
quarters.
to stay longer. The market will sales both might take a beating.
Although telephonic inquiries revive sooner or later fuelled Poor real estate sales will weigh
have also reduced, the decline by healthy demand and lower on the Q1 growth of the country’s
is not very steep. Because of inventory volume. economy as well.
social distancing, Work from
Monthly Reduction in Closures
(till 3 rd week of March)
80%
70 %
60%
44 %
40%
39 %
32 % 25 %
20%
10%
00
Gurgaon Noida Bangalore Pune Kolkata
Source: 360 Realtors Research
April 20 - PropTOQ | 15SPECIAL STORY
Hidden
Opportunities
However, every distress throws purchase.
up an opportunity to transform.
As the stock market is already
There are also a lot of hidden
bearish and the banking &
opportunities for the sector
financial sector is going through
amidst the current crisis. The
tough times, there might well
fraternity is once again looking
be a further revival in interest
forward to investing more
for Real Estate as an asset class
in online platforms, digital
among the investor fraternity.
walkthroughs, innovative
As a hard asset, real estate is
transaction spaces, etc. that
believed to be a safe tool to
can facilitate site visits and
invest to neutralize any possible
transactions digitally without
inflationary pressure and
the hassle of physical site visits.
mitigate market-induced risks.
Although digitally backed
Going forward RBI, in line with
virtual realities and transaction
other major world economies,
platforms have been there in
has hinted about a possible rate
the country for some years, they
cut , further steps to infuse more
have not passed the contours
liquidity in the market, besides
of academic and theoretical
a special sectoral stimulus for
discussions. The outbreak of
real estate. This will further help
Corona crisis has once again
in reviving investor interest in
reinforced the pressing need to
residential and commercial real
invest more in online transaction
estate.
platforms and make them a
popular medium for property
Research
Methodology
To track the market sentiments & gauge
the exact risk after the outbreak of
COVID-19, 360 Realtors has compiled
the given report. For this 100+ active
projects have been tracked across 5
major markets including Gurgaon,
Noida, Pune, Kolkata & Bangalore.
Due to the lockdown, exact data on the
Mumbai market could not be traced.
The key trends scrutinized includes
details on-site visits, telephonic queries
& actual transactions. These trends have
been compared with last month’s data
to evaluate & quantify the impact.
Likewise, few qualitative interviews have
been conducted with real estate sales
professionals, developers & marketers to
further understand the impact & analyze
long-term possible threats to the sector
besides learning how the industry is
coping with it.
16 | PropTOQ - April 20SPECIAL STORY
C VID-19
Fallout on
Real Estate
The Corona generated crisis will hit residential and commercial real
estate hard, severely impacting completion of projects and giving a
big jolt to affordable housing. An Anarock Report.
Current estimates reveal a a couple of years for others. 47 mn sq. ft. in 2019, a reduction
substantial drop in demand Nearly 4.66 lakh units across of 15-30%. Net office absorption
and supply across various the top 7 cities earlier slated for in 2020 is expected to drop to 28
real estate segments in 2020. completion in 2020 now face a -35 mn sq. ft. from the previous
Housing sales could witness high risk of delays. years’ 40 mn sq. ft. - a decline
a 25-35% yearly drop in 2020 of 13-30%.Office rentals will be
against the preceding year. The affordable housing under pressure as occupiers
segment, which gained try and re-negotiate terms and
Residential sales in 2019 stood significant traction over cost. To reduce operations cost,
at approx. 2.61 lakh units across the last few years, may also telecommuting and rostered
top 7 cities and may now fall take a hit. The outbreak will timings may become the new
between 1.70 lakh - 1.96 lakh significantly affect affordable norm, depending on the nature
units. Likewise, new launches housing's target audience. of business, thus leading to
may also witness a 25-30% With limited income and fears higher demand for flexible
decline during the same period of unemployment, buyers of workspaces.
– from 2.37 lakh units in 2019 affordable housing may defer
to anywhere between 1.66 lakh purchase decisions, leading to Indian retail sector will feel the
-1.78 lakh units. an estimated 1-2% rise in unsold heat with net estimated leasing
stock within this segment in to be between 3.1-4.3 mn sq. ft.
Unsold inventory in 2020 will 2020. in 2020, as against 8.5 mn done
largely remain stable, with in 2019, registering a decline of
single-digit annual decline of The current crisis will also badly 49-64%. Meanwhile, new mall
around 1-3%. The nationwide impact India's once-booming completions will be between
lockdown has completely commercial office and retail 4.2-5.9 mn sq. ft. Pressure on
halted construction activity. as real estate sectors.Current rentals is likely to be in the
a result of this project delays estimates indicate office supply range of 10-15% in 2020 in terms
could run into several months will remain between 33-40 mn of effective collections from
for well-funded projects and sq. ft. in 2020 as against nearly retailers by mall owners.
April 20 - PropTOQ | 17SPECIAL STORY View Point
Recipe for
Corona
Redressal
The RBI has come to the rescue of real estate, severely hit by Corona crisis by
injecting massive liquidity through a host of policy initiatives. These bold measures
include massive 75 bps and 90 bps cuts in repo and reverse repo rate respectively,
3-month moratorium on term loans, deferring interest payments on working
capital, easing working capital financing and deferring home loan EMIs. How will
this revival recipe help in mitigating the woes of real estate.
Anuj Puri Pradeep
Chairman, Anarock Aggarwal
Chairman
Assocham National
Council on Real Estate,
In he wake of Corona crisis, the Housing & Urban
need of the hour is to minimize
Development
the consumption disruption
through infusion of cash flows RBI has played its part
into the system as done by and now it is up to the
the RBI to effectively benefit commercial banks to
sectors including real estate. pass on the benefits
Its effective implementation to end users as well as
will ensure that banks lend more, developers get their corporates. Though the transmission track record
financial act together, home buyers get relief in EMIs and of the banks has not been great, yet in this crisis,
home loans saved from turning bad. RBI should be able to nudge banks to follow suit.
18 | PropTOQ - April 20View Point SPECIAL STORY
Niranjan Anurag Mathur
Hiranandani CEO
President Savills India
Assocham & Naredco
The corona generated financial
crisis demands that the
financial burn of individuals and
Though the government is in businesses remain minimal.
vigilant mode to retrieve the The RBI's bold measures
country out of great corona-induced economic crisis, the should help revive growth, mitigate the negative impact
success of policy measures lies in quick implementation of on economy and preserve the stability of entire financial
the liquidity tools unveiled by the government.. system.
Satish Magar Ankit Kansal
President Founder &
Credai National Managing Director
360 Realtors
The policy measures taken by
the Finance Ministry & Reserve
The apex bank should go Bank of India in the form of
beyond its well intentioned relief package, liquidity infusion,
measures to address the interest rate cut, moratorium
financial stress owing to on term loan, will help contain
COVID-19. It may consider providing additional capital for the downside risk of COVID-19 on all sectors including real
business continuity and payment of wages to real estate estate and help revive demand once crisis abates.
until return of normalcy..
Manoj Gaur Shishir Baijal
Chairman
Chairman & MD
Credai Affordable
Knight Frank India
Housing
Committee
The RBI's policy prescription
is a big relief for the real estate
The massive repo and reverse sector, which would have been
repo rate cuts by the RBI, if worst affected owing to its
effectively transmitted, should linkages with over all economy.
result in 90-100 bps drop in However, there should be
home loan rates. This would further fiscal stimulus from the
especially be of great help to capital intensive realty sector Centre and state governments to support demand in the
in general and low- margin affordable housing business. economy.
Manju Yagnik Mohit Goel
Vice Chairperson, CEO
Nahar Group & Omaxe Limited
VP NAREDCO, Maharashtra
The current slowdown is
temporary and event led.
Several steps taken by the
Centre will eventually boost
the growth of real estate sector
and the economy at large. Real While the infusion of abundant
estate companies on their part, liquidity in the system by rate
should take to digital launches and provide a 360 degree cuts an other measures by the RBI is the need of the hour,
view of property to help buyers go ahead with their banks should rise to he occasion and quickly pass on the
planned property purchases. benefits before the negative triggers come into play.
April 20 - PropTOQ | 19evival
SPECIAL STORY
R
Agenda
& Road Ahead
VINOD BEHL interacts with industry experts
to outline the action plan for the government
and the agenda for the industry to revive real
estate in the wake of COVID-19 crisis and the
road ahead for the sector.
Rejuvenate economy, rejuvenate
realty should be our mantra. The
government must go beyond the
relief measures already announced
by it and take more proactive steps
to help developers and property
buyers. These include increasing
Real Estate Distress Fund to
Rs 1 lakh crore, FDI in ready-to-move
inventory, capital gains exemption
to all including NRIs, providing
home loans up to 95% value of the
property and fast tracking stuck Sushil Mittal
project approvals .
Founder President, ACRI
RERA should extend project
Sanjay Dutt completion date by 6 months. The
next financial stimulus of the Finance
MD, Tata Realty Ministry should include real estate.
Taxes like GST, TDS , EDC, property tax,
income tax and other statutory dues
should be deferred if not waived off
for short term. Similarly, interest and
principal repayments for projects due
over the next 3 months should be
deferred and timelines for projects
extended . Cut in GST on construction
materials along with restoration of
ITC.Holding period for REITs be cut
by two years and brought down to
1 year for long-term capital gains.
Increase in deduction of interest on
home loans and separate provision
Uddhav Poddar
for deduction of principal repayment. MD, Bhoomika Group
Rationalization of stamp duty and
circle rates. The government should go beyond
deferment of loan and waive off
interest on it. NPA norms be relaxed ,
Ramesh Nair considering that Corona crisis fallout
CEO, JLL India may stretch to 6-9 months.
20 | PropTOQ - April 20Agenda SPECIAL STORY
Suspend all government dues like
EDC for one year, There should
be overall reduction in income
tax for one year on sale proceeds
on housing. Similarly, GST on
construction material should be
reduced for one year.
Prashant Solomon
MD, Chintels
Clubbed with measures already
announced by the government, RBI
relaxation on regulatory deadlines
is much needed as a short term
measure. The medium and long term
measures need to look at financial
restructuring and stamp duty rates
rationalization. Dhruv Agarwala
Group CEO, Housing.com,
Makaan.com, Proptiger.com
Shivam Sinha
The companies will have to build
CEO Indiassetz
enhanced digital systems to tide
over such crises and get transformed
to a business model, bringing
in paradigm shift in proptech.
The companies need to put much Besides using digital walk through
more emphasis on technology and technology, we are using video calls
connectivity with lesser dependence on to connect builders with customer
human labour. For their future growth, to take discussions towards closure.
they have to ensure that they don't just And to complete the final stage of
build bricks and mortar buildings but the home buying journey, we have
develop habitats and workspaces with tied up payment gateway to enable
concern for environment protection, online deal closure by offering
sanitation and medical facilities. booking payments online, making
our platform digitally enabled.
Dr Kunal Banerji
Brandologist & Growth Strategist
To stay relevant companies will
have to ensure that processes
and business delivery undergo
major transformation by
leveraging technology with digital
transformation at its inflection
point.
Rishabh Sawansukha
Business Strategy,
Ashwin Chawwla Contracts, Legal and Tax Advisor
Founder & CEO Escrowffr.com
The road ahead for realty is dotted
with both positives and negatives.
On the positive side short term bank
The companies will have to go pressure and NCLT threat will ease off.
digital with virtual meetings, virtual Cost of construction will come down
site visits and online bookings with with cut in GST rates. As residential
developers incentivizing brokers who properties are mostly underleveraged,
take to virtual selling of inventory. companies will come up with
There will be increasing use of digital innovative financial products with
channels - property portals spreading predictable cash flow basis actual
out communication on e-buying use. On the flip side, force majeure
procedures and benefits. litigation will rise in leased properties,
cost of capital and expenses on
workers' safety and sanitation will
Amrendra Shukla rise. NCLT may not yield results and
National Business Head, OLX arbitration costs will go up.
April 20 - PropTOQ | 21NEWS LINE
Sovereign
Funds to Boost
Affordable
Housing
& Logistics
The measures announced in the Union Budget granting 100% tax
exemption on interest, dividend and capital gains income to Sovereign
Wealth Funds (SWFs) investing in infrastructure, will further help boost
investments in affordable housing and logistics.
Especially as India has got a major Budget for 2020, according to Ramesh Das, Chief Economist and ED, JLL India
boost to its image with SWFs due to Nair, CEO & Country Head, JLL India expects that going forward , there will
progressive policies and conducive has further incentivized SWFs to be more traction from this type of
ecosystem. invest in infrastructure including patient capital.
affordable housing and warehousing
Sovereign Wealth Funds are state- by providing tax exemptions. The rise The Union Budget for 2020 further
owned investment funds commonly in potential returns is expected to drive incentivizes SWFs to invest in
established with revenues generated more SWF investments in India. SWFs infrastructure by providing them
from trade surpluses, central bank would be more inclined to use the a 100% tax exemption on interest,
reserves, currency operations, direct investment route as compared dividend and capital gains income
privatisations and transfer payments. to investment platforms. in respect of investment made in
According to JLL research ,between infrastructure and other notified
2008 -18, global Assets Under SWFs hold USD 29 billion of Assets sectors before March 31, 2024 with a
Management (AUM) of SWFs grew Under Custody (AUC) as of December minimum lock-in period of 3 years.The
at a CAGR of 10% with Asia garnering 2019. Of these, real estate and resultant increase in potential returns
the highest share (42%).Sovereign warehousing account for 22% of the is expected to boost investments
Wealth Funds have been playing a AUC, amounting to USD 6.6 billion. by SWFs in affordable housing and
pivotal role in investments globally logistics & warehousing which have
with estimated AUM of 8.1 trillion SWF Investments quadrupled to USD been accorded infrastructure status.
as of 2019. Investments by SWFs in 5.3 billion during 2014-19 from USD 1.3
India improved sharply as a result billion recorded between 2005 and
of various policy measures taken to 2013, due to various reforms introduced
attract foreign investments. The Union in the Real Estate sector. Dr Samantak
22 | PropTOQ - April 20NEWS LINE
MultiLiving
Launches
Rental Housing
Ecosystem
Making lives easier and enriched for the tenants and
homeowners and bringing them together in an
ecosystem, Mumbai-based MultiLiving has launched
a unique real estate platform that enables tenants to
rent curated homes with a personal concierge & added
services along with ensuring hassle-free management
of assets and steady returns for the homeowners. By
creating a rental housing ecosystem through technology,
MultiLiving endeavours to streamline the home renting
and management situation for urban professionals.
A brainchild of a group of IIM and steady returns. The platform takes
IIT educated entrepreneurs and charge of finding the tenants as
real estate veterans, MultiLiving , per owners' choice and assure
backed by Lodha Ventures intends regular rentals. It handles the
to eliminate the inefficiencies entire paperwork and monthly rent
prevalent in the existing rental collection, promising a hassle-free
system. The platform strives to experience to the asset owners. It
unlock the enhanced rental value also covers the owner's property for
of the extremely large residential any accidental damages, regular
real estate segment, thereby maintenance fees or unforeseen
enriching the lives of both tenants expenses through MultiLiving’s
& home owners in their respective exclusive insurance policy, the
value chains. It curates apartments HomeShield Plan. This means the
from the home owners, performs owner will never have to bother
the quality check & requisite about leaking taps, broken A/Cs or
transformation and offers the similar troubles. The platform also
homes with built-in services to the arranges for urgent repairs and
potential tenants. That said, the ensures routine check-up at no
platform delivers smarter solutions extra cost.
for both tenants and owners According to Pankaj Singh, CEO &
against the traditional rental Founder MultiLiving is an advanced
model. way of owning and renting out
For the potential tenants, a flat where the company takes
MultiLiving ensures a comfortable care of everything involved in this
and convenient lifestyle, which is space . All apartments are carefully
beyond the average rented space. selected in the niche societies
All its homes are handpicked and gated communities and
keeping in view the location, every potential tenant is carefully
amenities at the society, condition screened.
of the house amongst other Backed & funded by Lodha
parameters. They undergo a Ventures – the family office of
thorough 50-step quality check Abhinandan Lodha who is also on
process and are also assigned a the board of advisors. MultiLiving
dedicated transformation team aims to serve proprietors who are
to deliver the property in a 100% owners of a premium residential
top-notch and ready-to-move-in properties by ensuring steady
state. All the homes come with predictable returns on their
a personal concierge to take investments and managing the
care of all the daily chores and same for long term. Meanwhile, the
housekeeping. Tenants also get platform that currently operates in
access to on-demand services like Mumbai also serves the new age
cooking, party planning, travel families who are looking to stay on
booking, etc. All these services are rent by offering them the world
managed and monitored through class curated homes with intuitive
an easy-to-use app. services to make daily life easy and
Meanwhile, for the property owners, hassle-free.
MultiLiving promises regular &
April 20 - PropTOQ | 23NEWS LINE
Report Card of
Smart Cities
in June
The Union Housing and Urban Affairs Ministry has
announced that the centre will release a report card of 100
smart cities in June , to help the selected cities in better
planning and moving towards data-driven governance that
will eventually improve their liveability.
Smart Cities’ mission director Kunal (30% weightage), finance (20%) the smaller contenders who have
Kumar said that in June 2020, technology (15%), planning (15%) managed to show visible progress.
the ministry will come out with and governance (20%). In the recent smart city rankings by
a ranking of smart cities in three the Ministry of Urban Development,
The Smart Cities Mission, launched
categories – ‘Ease of Living Index’, the tier-2 smart cities of Nagpur,
in 2015, aims to tackle the
‘Performance of Municipalities’ and Vadodara and Ahmedabad topped
escalating problems in urban areas
‘Climate’. the charts, leaving behind tier-1
with regards to transportation,
cities such as Pune, Chennai and
In the category of climate, cities energy supply, governance, basic
many others. Smaller cities have
will be ranked based on their works urban infrastructure services and
more to gain from the Smart
in promoting matters related to overall quality of life. There are
Cities programme and a strong,
the environment. The assessment various bottlenecks, including land
determined local government
for ease of living will be done on acquisition, buy-in from resistant
can push the necessary reforms
three parameters – quality of life, stakeholders, among others,
much more expediently there, than
economic ability and sustainability. which are preventing the speedy
in the metros. The bigger cities
It will also include education, implementation of these projects.
are highly congested, thereby,
health, housing, mobility, safety,
According to ANAROCK, while many presenting huge roadblocks to the
development, and economic
of the bigger cities have managed deployment of the requisite smart
opportunities. The verticals
to enlist themselves under the city ingredients.
covered in municipal performance
Smart City scheme, it is, in fact,
assessment will include services
24 | PropTOQ - April 20MORTGAGE
Morgan Stanley
to Invest ₹ 100 cr in
Centrum Housing
Finance
The Centrum Group has roped in Morgan Stanley to invest
Rs 190 crore in its retail-affordable housing-focused lending arm
Centrum Housing Finance Ltd. (CHFL).
The infusion by a fund run by its credit business through Rs 2,000 crore, of which over Rs
Morgan Stanley Private Equity Asia acquisitions. It first acquired the Rs 1,000 crore is the SME (small and
will lead to the private equity (PE) 100-crore microfinance portfolio medium enterprises)book, Rs 600
giant acquiring an undisclosed of South African lender First Rand crore is home finance and the
minority stake in CHFL. Bank India in 2017, followed by L&T rest is microfinance. Bindra adds
CHFL has a loan book of over Rs Finance's supply chain finance that with Morgan Stanley funding,
500 crore and operates through 36 book of Rs 650 crore in September Centrum will work to grow the
branches across Gujarat, Madhya 2018. More recently, it took over business nationally as there is a big
Pradesh, Rajasthan, Maharashtra, New Delhi-based microfinance opportunity in the low to middle
Chhattisgarh, and Delhi, serving player Altura Finance's Rs 100 crore income segment in small cities
over 3,500 customers. The fund portfolio. which is the focus area.
managed by Morgan Stanley will According to Jaspal Bindra, Arjun Saigal of Morgan Stanley
be the first external institutional Executive Chairman of Centrum Private Equity Asia attributes
investor in Centrum Housing, an Group, at least half the money their investment to big potential
arm of the publicly traded Centrum raised by Centrum will be used for in the affordable housing space
Capital, which manages assets of acquisitions and the rest will be which is under-penetrated and
over Rs 2,000 crore. used as growth capital.Currently, offers tremendous opportunity for
Centrum Group has been driving Centrum's loan book is a little over growth.
April 20 - PropTOQ | 25MOBILITY
₹ 286 Crore
Budget For
Agra Metro
The Uttar Pradesh The state government has so far released
Rs 100 crore for the project estimated to cost
government has allocated Rs 8379 crore.According to the Detailed Project
Rs 286 crore for Agra Metro Report, the two corridors of the Metro Rail will
pass through the heart of the city, connecting
Rail project in the current Taj Mahal, Agra Fort, Sikandra, ISBT, Raja Ki
budget. The 29.4 km long Mandi Railway Station, Agra Cantt Railway
Station, among others.
metro rail network with
The 14 km Sikandra - Taj East Gate corridor
27 stations across two will have 13 stations including six elevated
corridors will connect major and seven underground stations. The second
corridor from Agra Cantt to Kalindi Vihar would
public nodes, tourist places be of 15.4 km length, comprising of 14 elevated
and cluster areas of the city. stations. The project originally scheduled to
be completed by the end of 2021, is running
behind schedule by almost one year.
26 | PropTOQ - April 20Regulation
Maha RERA
Raps Over 980
Defaulting
Developers
Maharashtra Real Estate Regulatory Authority (MahaRERA) has
rapped 984 developers for failing to complete their projects within the
stipulated timeline and seeking extension from the regulator.
Taking suo motto notice These suo motto hearings allowed extension by RERA
of developers' failure to are aimed at ensuring early or they would like to exit
complete projects in time completion of the project the project. After hearing
and safeguarding home and protect consumers' flat buyers, MahaRERA can
buyers' interest, MahaRERA interest. Majority of the either give extension to a
has issued notices for allottees of Association of developer or allow allottees
hearing to defaulting Allottees of a particular to take over and complete
developers and buyers who project will take a call the project. In latter case, the
have invested in projects on whether defaulting builder will lose his project
which are incomplete. developers should be registration.
April 20 - PropTOQ | 27LAW
Legal
Recourse
For
Stressed
Home
Buyers
Though RERA has provided a forum to home buyers to resolve their problems
in a time bound manner, yet in view of its patchy implementation and execution
issues, home buyers need to know about their other legal options.
Housing project delays are under not provide any watertight solutions minimum of 100 buyers or 10% of the
constant scanner. The consumer courts to the problems plaguing the real total homebuyers are required to be
and country’s apex court maintain that estate sector. Homebuyers in many on board to file for bankruptcy. This is
home buyers cannot be made to wait states have been waiting incessantly good for real estate developers because
indefinitely for the possession of their for their complaints to be addressed, previously even a single complaint
flats. The National Consumer Disputes and continue to suffer due to delayed by one homebuyer would drag a
Redressal Commission (NCDRC) has adjudication. developer into an insolvency case.
announced that buyers can seek That said, other judicial forums In various cases, the previous clause
refunds if possession is delayed by such as the Supreme Court have was seen to be detrimental for many
one year beyond the promised date. also empowered homebuyers with developers and their projects.
According to a consequent NCDRC landmark judgements such as the Apart from registering a complaint with
order, a developer must pay a penalty cancellation of a major developer the state RERA, homebuyers also have
at 6% per annum on the amount group’s RERA license. Earlier, the apex other legal options.Under Consumer
deposited by the buyer for delayed court had also stated that, in case of Protection Act, 1986, a homebuyer
period. delays, interest rates need to be uniform can file a complaint against the
Project delays are a nationwide for both developers and homebuyers. errant builder within two years from
problem and not restricted to any The NCDRC’s announcement allowing the date of dispute at the consumer
particular region. While there have buyers to seek refunds in cases of forum. A stressed homebuyer can also
been several protests and judicial indefinite delay has also provided relief register a complaint with Competition
action by homebuyers against to homebuyers. Commission of India ( CCI) in case the
developers in NCR, other cities such as The Supreme Court also passed a builder is using his dominant position in
Bengaluru and Mumbai have also seen landmark judgement upholding the market to gain an unfair advantage.
homebuyers joining forces to fight for the validity of an amendment to the CCI looks into the builder’s actions
their rights. Stressed buyers across Insolvency and Bankruptcy Code and, if unfair practices are established,
various states have filed complaints (IBC), consequentially upholding can impose a heavy penalty.Under the
with their respective state RERA and the interests of lakhs of beleaguered Criminal Law, there is a recourse to file
have sought legal recourse. homebuyers. This decision is crucial, as a criminal case against the developer
RERA stipulates that for non- it has expanded the scope of IBC and for cheating and breach of agreement
compliance with its guidelines, vested homebuyers with the same under the Indian Penal Code. The
developers may either be fined up to powers as banks and institutional homebuyer can also issue a notice
10% of the estimated cost of a project, creditors. to the developer and approach the
be imprisoned for up to three years, Aggrieved homebuyers now have the criminal court if the notice remains
or lose their project registrations. In a right to initiate bankruptcy proceedings unanswered.
first in India, UP RERA deregistered against errant developers and are free In the case of the Amrapali Group
a residential project in Noida in mid- to take legal action under three key judgement, the Supreme Court has
2019, enabling affected homebuyers laws – RERA, Consumer Protection Act, instructed the National Buildings
to either self-complete the project or and IBC. Construction Corporation (NBCC) to
appoint another entity. This move set a complete all pending projects of the
wholesome precedent.However, RERA However, a recent amendment to the
IBC sets a caveat for homebuyers to developer.
implementation has been patchy,
and there have been several problems file an insolvency case against errant Ashutosh Limaye,
in its execution. Even now, it does developers. As per the new rule, a Director, Anarock
28 | PropTOQ - April 20LAW
New Apex
Court Ruling
on Land
Acquisition
In a fresh ruling,
the Supreme
Court has said that
the proceedings
under the Land The SC bench ruled that in court. The ruling noted that
Acquisition Act such cases compensation in case a person has been
has to be determined under given the compensation
1894 will not the provisions of the 2013 as provided under Section
lapse if the award Act. However, in case the
award has been passed
31(1) of the 1894 Act, it is not
open to him to claim that
is not made as within the window period acquisition has lapsed under
on January 1, of five years excluding
the period covered by an
Section 24(2) due to non-
payment or non- deposit of
2014 when the interim order of the court, compensation in court.
Right to Fair then proceedings shall
continue as provided under
The obligation to pay is
complete by tendering
Compensation Section 24(1)(b) of the Act of
the amount under Section
2013 under the Act of 1894 as
and Transparency it has not been repealed.
31(1). Land owners who
had refused to accept
in Land In other words, in case compensation or who
Acquisition, possession has been taken , sought reference for higher
compensation has not been compensation, can not
Rehabilitation and paid,then there is no lapse. claim that the acquisition
Resettlement Act, The verdict was necessitated
proceedings had lapsed
under Section 24(2) of the
2013 replaced the due to conflicting verdicts
by different benches of the
Act of 2013.
1894 law.
April 20 - PropTOQ | 29Realty Report Card
Listed
Developers
Boost
Home Sales
Total Housing
Despite headwinds Sales Value
(₹ Billion)
faced by residential Developers Apr-Dec Apr-Dec
real estate, home sales FY 2019 FY 2020
revenue of top 9
Brigade 9.6 15.8
DLF 17.9 21.7
listed developers Godrej 30.9 34.7
has risen by 4% Kolte Patil
Mahindra
10.8
6.3
9.6
4.3
Q-o-Q & 2% annually Oberoi 14.3 10.2
to nearly Rs 5800 crore Prestige 31.9 33.6
during the third
Puravankara 13.7 13.3
Sobha 22 21.9
quarter of FY20 . Total 157.3 164.8
Source: Anarock Property Consultants
30 | PropTOQ - April 20Realty Report Card
According to Anarock the total sales revenue of INR
Property Consultants, in 16,500 crore. Last year too,
the first 9 months of FY20, these 3 players topped the list
listed realtors including DLF, with collective sales revenue
Sobha, Puravankara, Prestige of INR 8,500 crores.
Estates, Brigade Enterprises,
The trend of developers
Malhotra Lifespace, Godrej
deliberately restricting
Properties, Oberoi Realty and
new supply continues, as
Kolte Patil successfully sold
increasing launches at this
housing worth Rs 16,500 cr
juncture can lead to more
against Rs 15,730 cr last year
unsold stock and reflect
– a 5% rise. Total residential
negatively on cash flows. New
space sold by top players
launches by the top 9 listed
(excluding DLF) was approx.
developers (excluding DLF)
21 mn sq. ft. , slightly higher
more than halved during the
than 20 mn sq. ft plus sold in
period – from 31 mn sq. ft.
the previous year. Meanwhile,
area in Apr – Dec FY 2019 to
New Launches nearly 15.71 mn sq. ft. in the
corresponding period of FY
(in Million. sq. ft.)
2020.
Developers Apr-Dec Apr-Dec
FY 2019 FY 2020 According to Anuj Puri,
Chairman, Anarock, total area
Brigade 4.49 1.82 sold (in million square feet)
DLF NA NA was slightly higher during
FY 19 October - December
Godrej 11.37 7.51
quarter, while the total
Kolte Patil 2.72 0 revenue was more this year.
This indicates that the sale of
Mahindra 1.01 0.9
homes other than affordable
Oberoi 1.34 0.41 homes saw higher over all
Prestige 2.51 1.46 sales value.
Puravankara 2.82 2.21
Sobha 4.83 1.4
Total 31.09 15.71
Source: Anarock Property Consultants
the total area sold by these
top developers (excluding
DLF) during Q3 FY20 was
nearly 7.1 mn sq. ft. against 7.2
mn. sq. ft. in the preceding
quarter, and 7.9 mn. sq. ft. a
year ago.
Godrej Properties, Prestige
Estates and Sobha Ltd.
were the top 3 players with
maximum sales revenue
during the first nine months
of FY 2020. Together, they
accounted for a 55% share of
April 20 - PropTOQ | 31REALTY TRACKER
HotspotS of
Warehousing
Colliers analyses the industrial and warehousing sector across India’s seven
major cities, covering key trends evolving in the sector.
1. Bengaluru (Average rent is cluster has started to experience cluster is a major warehousing
INR 16-35 per sq.ft. per month) development of warehouses owing cluster having seamless access from
Over the last decade, Bengaluru to seamless connectivity with the Durgapur Expressway as well as Old
has seen the emergence of several residential pockets in the city via Delhi Road, both the locations are
warehousing corridors. The Hosur National Highway 16. populated with industrial parks and
Road belt in the south of the city 3. Delhi NCR (Average rent is warehouses.
has witnessed industrial growth INR 15-25 per sq.ft. per month) 6. Mumbai (Average rent is
led by the Karnataka Industrial The NCR not only caters to the INR 18-25 per sq.ft. per month)
Areas Development Board (KIADB). intrinsic warehousing demand The demand for warehousing
Subsequent to the implementation but also acts as a key storage space in Mumbai is driven by
of the GST, companies are preferring and warehousing hub for the two factors, manufacturing‐led
this location for warehousing as it neighboring states of Punjab, Uttar demand and consumption‐led
offers a seamless transfer of goods Pradesh, Haryana and Rajasthan. demand. While major occupiers in
between neighbouring states, The leasing activity was led by 3PL the manufacturing industry have
benefitting from the removal operators garnering a 20% share in begun shifting to nearby cities like
of state-level taxes, post GST gross leasing in 2018 but a sudden Pune, owing to the infrastructure
implementation. The industrial growth in e-commerce has resulted provided by the Maharashtra
corridor of Hoskote-Narsapura in increased demand for warehouses Industrial Development Corporation
gained prominence due to its ease in the NCR. (MIDC), warehousing activities have
of accessibility to Sriperumbudur flourished in Mumbai, on account
in Chennai, which is an established 4. Hyderabad (Average rent is of the large consumption base and
automobile hub. Over the last INR 14-20 per sq.ft. per month) port-driven export-import (EXIM)
decade, Nelamangala - Dabaspete The majority of warehousing activity cargo movement.
cluster has been emerging as in Hyderabad is concentrated in
an important industrial and the Kompally-Jeedimetla-Medchal 7. Pune (Average rent is
warehousing location with heavy cluster. This cluster accounts for INR 15-25 per sq.ft. per month)
industries relocating from the about 90% of the warehousing Pune is a major manufacturing hub,
Peenya industrial area to Dabaspete stock in the city, primarily driven host to automobile, engineering,
for industrial facilities and further by engineering & manufacturing, auto ancillary and electronics
into Nelamangala for warehousing pharmaceutical, healthcare and companies. Over the last decade,
facilities. industrial spare parts occupiers due the city and its surroundings have
2. Chennai (Average rent is to the presence of infrastructure witnessed growth in the warehouse
INR 14-30 per sq.ft. per month) including the Hyderabad-Nagpur market too, driven by the city’s
Highway (National Highway 44), consumption. This is led by a migrant
With a population growth rate of Internal Ring Road (IRR) and Outer population helped by the growth
7.7% over the last decade, Chennai Ring Road (ORR). in the IT-BPM sector, as well as the
is a thriving metropolitan city city’s reputation as the education
whose large population results in a 5. Kolkata (Average rent is capital of India.
huge demand for consumer goods. INR 18-24 per sq.ft. per month)
Hence, the northern warehousing The Dankuni – Srirampur - Baidyabati
32 | PropTOQ - April 20REALTY TREND
High Demand
For Mid Segment
Housing
The affordable and mid-segment housing priced within Rs 90 lakh is in
highest demand today across the country, with mid-segment housing in the
bracket of Rs 45-90 lakh, being the biggest draw with the home buyers.
The affordability has been a biggest to-move-in homes, or, at best, and wide range of properties,
driver for home buying.In 2019, projects nearing completion. continue to trump the metros as
the major factor which prompted On home selection parameters, investment hotspots. Pune came
property purchases was attractive connectivity to workplace counts as in 2nd, replacing Bengaluru, while
property prices, with good most important for 43% millennial Hyderabad climbed two notches
availability of affordable and mid- property seekers. to reach the 3rd position as the
segment homes. As per a recent most promising city for real estate
The survey indicates that affordable
Anarock- LIC survey, as many as 46% investment.
and mid-segment housing priced
respondents made their purchase
within Rs 90 lakh are the clear Several city- specific trends have
decision due to affordability.
choices today. Mid-segment been traced by the survey. Over
Conducted towards the end of properties priced between Rs 45- 44% of respondents in Delhi-NCR
H2 2019, the survey gauges the 90 lakh topped consumer demand are looking to buy ready-to-move-
disposition of property seekers with 42% respondents voting in its in homes - another 25% within the
across India on various parameters favour, followed by 31% preferring next six months; the highest among
such as the asset class choice for homes priced below Rs 45 lakh.More all cities.In MMR, 32% are looking for
investment ,personal preferences than half the survey respondents a property upgrade, and almost 44%
of homebuyers in terms of stage (52%) will pay extra for properties will buy upgraded homes within
of property, builder-type, BHK- from branded developers, while Mumbai itself, followed by 37% who
configurations, budget etc and the 48% still prefer smaller developers are willing to shift to Navi Mumbai.
impact of government measures. to save on extra costs. At least 45% of respondents in
Bengaluru still expect high returns
At least 63% of respondents across In terms of configurations, 52% of
on their property investments.42%
the country are inclined to invest respondents favour 2 BHKs - but
of respondents in Kolkata consider
in real estate in 2020, and 60% of the share of this preference saw
‘amenities on offer’ as the top
participants in Delhi-NCR will buy an annual decline of 5% (from
deciding factor.56% of respondents
within the next six months alone – 57% in the H2 2018 survey). Nearly
in Pune prefer ready homes to save
the highest among all cities. 31% prefer 3 BHKs, and 15% are
on rental outgo.While more than
looking for 1 BHK homes. Merely
Millennials’ preferences are half the survey participants across
2% of respondents will buy 4 BHK
changing the entire property cities prefer branded developers, a
apartments. The reduced average
business landscape in this new whopping 72% of buyers in Chennai
age of Indian buyers over the last
decade.Once a hotbed of investors, still prefer small developers for
decade seems to have increased the
Indian housing is now primarily the cost arbitrage.At country
popularity of small-sized but well-
end-user driven. The survey reveals level, 2BHKs are the hot favourites
located/connected apartments.
that 67% of the polled homebuyers but city-specific trends indicate
will buy property for personal The survey also confirms that tier that at least 45% of Hyderabad
use, and consumer sentiment is 2 and tier 3 cities, with relatively respondents prefer 3 BHKs among
still firmly on the side of ready- higher ROI, diverse customer base all configurations.
April 20 - PropTOQ | 33You can also read
