FICCI : Industry's Voice for Policy Change

Finance Minister Nirmala Sitharaman's announcement to extend additional tax deduction of Rs 1.5 lakh on home loan interest till March 2022 and tax holidays on affordable housing projects in the Union Budget 2021 will boost demand for residential properties, according to real estate developers and consultants.

Announcing relief to affordable housing and rental housing in the Union Budget 2021, the Finance Minister proposed to extend the eligibility period for claim of additional deduction for interest of Rs. 1.5 lakh paid for loan taken for purchase of an affordable house to 31st March, 2022.

In order to increase the supply of affordable houses, she also announced extension of eligibility period for claiming tax holiday for affordable housing projects by one more year to 31st March, 2022. For promoting supply of affordable rental housing for the migrant workers, the Minister announced a new tax exemption for the notified affordable rental housing projects.

Sanjay Dutt, MD & CEO, Tata Realty and Infrastructure Limited appreciated Finance Minister’s plan to introduce a Bill to set up a DFI (developmental financial institution) for long-term funding infra projects with a capital of Rs 20,000 crore and lending Rs 5 lakh crore in the next 3 years. He also said, Acknowledging the role of NRI homebuyers and increased interest amid the pandemic, the government’s decision to reduce NRI residency limit will help. Raising customs duty on solar inverters to 20% from 5% is likely to add to the cost of the commercial and residential developments while monetization of land is likely to provide more land for development and arrest its rising cost.

Satish Magar, President CREDAI National said, Continuous focus on expanding highways, developing infrastructure, road & rail transport, metro rail projects shall play a crucial role in connecting all corners of the country further boosting demand for housing in these areas, thereby promoting economic activity and job creation.

Jaxay Shah, Chairman CREDAI National said “This is clearly a budget for growth with next level reforms, focusing on the healthcare, infrastructure and financial sectors and establishes a stable tax regime and higher borrowing for CAPEX.

Geetamber Anand, CMD ATS Infrastructure ltd and Co - chairman, Real Estate Committee, FICCI said Union Budget 2021-2022, is the much needed catalyst for India’s post-covid revival.

"However, what the sector requires is immediate infusion of liquidity to give a kick-start to the stalled projects and support the 270 allied industries who are dependent on the realty sector for its survival and revival," he added.

Kamal Khetan, Chairman and Managing Director, Sunteck Realty Ltd said, "For real estate, the move to extend the tax holiday available for the purchase of affordable houses as well as for the affordable rental housing projects is a welcoming move as it would further strengthen the confidence among both developers and homebuyers."

Quicke News | Feb 02, 2021

Union Budget 2021: Extension of tax sops for affordable housing to strengthen confidence among developers and homebuyers, say realtors

Finance Minister Nirmala Sitharaman’s announcement to extend additional tax deduction of Rs 1.5 lakh on home loan interest till March 2022 and tax holidays on affordable housing projects in the Union Budget 2021 will boost demand for residential properties, according to real estate developers and consultants.

Geetamber Anand, CMD ATS Infrastructure ltd and Co – chairman, Real Estate Committee, FICCI said Union Budget 2021-2022, is the much needed catalyst for India’s post-covid revival.

“However, what the sector requires is immediate infusion of liquidity to give a kick-start to the stalled projects and support the 270 allied industries who are dependent on the realty sector for its survival and revival,” he added.

Live Mint | Jan 28, 2021

Realty sentiment improves in Dec quarter

The realty sector is finally turning optimistic with a sentiment index score of 54 in the December quarter, with a positive demand outlook for the next six months, according to a survey by Knight Frank-FICCI-Naredco.

The Current Real Estate Sentiment Index is at its highest level in over a year, up from 31 points in April-June 2020. A score of above 50 reflects optimism.

Real estate sales in the June 2020 quarter had crashed nearly 80%, compared to the same quarter in 2019, following the pandemic, hurting customer sentiments. Subsequently, a recovery in demand for residential and office space helped lift sentiments. Residential sales picked up during the three months ended December on the back of attractive payment schemes from developers, low interest rates, and a cut in stamp duty by Maharashtra and Karnataka governments. With the Future Sentiment Score witnessing a surge from 52 points in the September quarter to 65 in the December quarter, the sector expects demand to pick up further.

“Geographically, the western part of the country saw the sharpest jump in Future Sentiment Index. This zone’s future sentiment jumped to 66 points in Q4 2020 from 47 points in Q3 2020. With respect to stakeholders, both developers and non-developers (banks, non-bank lenders and private equity funds) recorded an improvement in Future Sentiment score in Q4 2020," the report added.

The Economic Times | Jan 28, 2021

Realty business confidence makes a comeback as realtors, banks, PE firms optimistic

With improving indicators and the Indian economy’s gradual return to normalcy post the Covid19 pandemic, the uncertainty over sustainability of growth momentum in the real estate sector is getting replaced with rising business confidence among developers and financiers.

While real estate activity in both residential and commercial segments saw an upturn following in the last few months, many were doubtful of the momentum after factoring the conversion of pent-up demand. The business confidence is witnessing a gradual comeback aided by the government’s supportive measures, record low interest rates and the resultant pick-up in end-user demand.

The future sentiment score, captured by a Knight Frank, FICCI and NAREDCO joint survey, has witnessed a robust surge to 65 points from 52 points in the September quarter. The current sentiment score, for the first time in 2020, entered the optimistic zone at 54 points in the fourth quarter, a significant jump of 14 points over the previous quarter.

“As we begin our journey into 2021 with a positive outlook, it is important to closely watch the performance of the key economic indicators in the coming months to check the sustainability of the growth seen in the last two quarters of 2020. Equally crucial is the development of the vaccine and its widespread availability for the masses. As these two factors will largely determine the performance of the real estate sector in the coming months,” said Shishir Baijal, CMD, Knight Frank India

Geographically, the western region saw the sharpest jump in future sentiment index at 66 during the quarter from 47 in the previous quarter. North With respect to stakeholders, both developers and non-developers including banks, non-banking finance companies and private equity funds, recorded an improvement in future sentiment score during the quarter.

“The survey mirrors recovery expectations of not just real estate, but the economy. Investments in real estate over the recent past reflect positive sentiments on part of investors, domestic as well as global, on the resurgence in the Indian economic growth story. This is a clear indicator of the bullish growth story of Indian Real Estate and reflects on the growth prospects of 270 allied industries as also job creation,” said Niranjan Hiranandani, National President, NAREDCO.

A score of above 50 signifies ‘Optimism’ in sentiments, a score of 50 means the sentiment is ‘Same’ or ‘Neutral’, while a score below 50 shows ‘Pessimism’. A cumulative score is arrived at on the basis of responses and assigned weightage.

“After almost a year of working remotely during a global pandemic, the workforce is already thinking about their gradual returns to the workplace. The signs of recovery are already showing… The insurgent growth is going to impact logistics related infrastructure including warehousing, Positively. Within real estate, certain asset classes like retail may have a longer recovery cycle, while other sectors like data centres, cloud kitchens and co-working may see an uptick in demand in the immediate to medium term,” said Raj Menda, Joint Chairman, FICCI Real Estate Committee.

The future sentiment score has climbed up mirroring the strong recovery expectations prevalent in the market. Other regions including the east and north also improved, while the already bullish south region improved marginally.

Stirring demand and festivities in the December quarter has helped not only the realty sector but also the economy at large. The improvement in high-frequency indicators recorded since September continued in December too.

The Goods and Services Tax (GST) collections in December were at a record high whereas the Purchasing Managers’ Index (PMI) for manufacturing recorded a fifth straight month of expansion. This economic growth environment has raised the market’s expectations of recovery in the coming six months.

Any further demand boosting measures announced by the government in the upcoming Union Budget 2021, will provide strong fillip to the property sector.

Money Control | Jan 28, 2021

Real estate sentiment scores at a year-high in Q4 2020; 2021 outlook optimistic: Sentiment Index

Supportive measures from the government, RBI and the resultant pick-up in end -user demand has helped boost sentiment and given a fillip to the real estate sector. In fact, for the first time in 2020, the 'Current Sentiment Score' entered the optimistic zone at 54 points in Q4 2020, a significant jump of 14 points over the previous quarter.

A score of above 50 indicates ‘Optimism’ in sentiments, a score of 50 means the sentiment is ‘Same’ or ‘Neutral’, while a score below 50 indicates ‘Pessimism’.

According to the 27th Edition of Knight Frank-FICCI-NAREDCO Real Estate Sentiment Index Q4 2020 (October – December 2020) Survey, for the first time in 2020, the 'Current Sentiment Score' entered the optimistic zone at 54 points in Q4 2020, a significant jump of 14 points over the previous quarter. It was at 40 in Q3 2020.

The October-December 2020 quarter continued to see an improvement in the business momentum. Office space leasing grew as global players began acting on their pending and anticipated lease plans encouraged by the news of multiple potential COVID vaccines. Traction in the residential segment continued in Q4 2020 on the back of festive discounts, pent-up demand and low home loan interest rates.

The 'Future Sentiment Score’ also witnessed a robust surge to 65 points in Q4 2020 from 52 points in Q3 2020. It was at 52 in Q3 2020, mirroring the strong recovery expectations prevalent in the market.

Stirring demand and festivities of Q42020 gave a strong fillip not just to the real estate sector but also to the economy at large. The improvement in high-frequency indicators recorded since September 2020 continued in December 2020 as well. Goods and Services Tax (GST) collections in December 2020 are at a record high whereas the Purchasing Managers’ Index (PMI) for manufacturing recorded a fifth straight month of expansion.

This economic growth environment has raised the market’s expectations of recovery in the coming six months and is reflected in the climbing Future Sentiment score, Knight Frank India said.

Geographically, the western part of the country saw the sharpest jump in future sentiment index. This zone’s Future Sentiment jumped to 66 in Q4 2020 from 47 in Q3 2020. With respect to stakeholders, both developers and non-developers (which include banks, NBFCs and PE funds) recorded an improvement in Future Sentiment score in Q4 2020.

The West Zone has seen the highest jump in the Future Sentiment score, climbing to 66 in Q4 2020 from 47 in Q3 2020. East zone stakeholder outlook also saw a substantial leap in future sentiments, jumping to 65 in Q4 2020 from 50 in Q3 2020. The Future Sentiment score for the North region went up to 58 in Q4 2020 from 55 in Q3 2020 while that of the already bullish South region improved marginally to 66 in Q4 2020 from 65 in Q3 2020.

In Q4 2020, the Future Sentiment index for all regions is higher than Q4 2019 (pre-COVID level). This reflects the strong optimism prevailing in the sector as we enter 2021, Knight Frank India said.

On the macroeconomic front, 82 percent of the survey respondents opined that the economy would grow further in the coming six months as opposed to the 57 percent respondents with the same view in Q3 2020. Similarly, the share of survey respondents with the opinion that economic health will worsen in the next six months went down substantially to 7 percent in Q4 2020 from 31% in Q3 2020.

In terms of credit availability, 87 percent of the Q4 2020 survey respondents believed that the funding scenario would either improve or continue to remain the same over the next six months.

Further, 77 percent of the Q4 2020 survey respondents were of the opinion that residential sales would increase over the next six months, up from 66 percent in Q3 2020. With regards to the office market, 60 percent of the Q4 2020 survey respondents, up from 47 percent in Q3 2020, believed that office leasing activity would increase over the next six months.

The outlook of supply side stakeholders has moved into the optimistic zone in Q4 2020 for both developers and non-developers (non-developers include banks, financial institutions and PE funds).

Developer sentiments picked up on the back of resolving supply-side challenges and growing demand. The Q4 2020 performance of residential market across the top eight cities in India was encouraging, as sales velocity returned to pre-COVID levels. Office transactions also grew in the last quarter of 2020 with occupiers beginning to execute their pending and future lease plans. This jump in demand has strengthened the developer outlook of real estate market for the coming six months, it said.

Fueled by the increase in residential sales and the pick-up in office transactions, real estate lending of banks and financial institutions also received a fillip. Accordingly, the future outlook of non-developers i.e. the financial stakeholders of the real estate sector improved in Q4 2020. Their Future Sentiment score jumped to 63 in Q4 2020 from 50 in Q3 2020, moving into the optimistic zone for the first time since Q4 2019, the Sentiment Index said.

“Both the Current and Future Sentiment scores in Q4 2020 have seen a great surge in the latest survey backed by a revival in both residential and office market real estate that has been highly encouraging. The sector saw a lift in the market's mood and increased stakeholder expectations of a stronger recovery in the next six months,” said Shishir Baijal, chairman and managing director, Knight Frank India.

“As reflected in the 27th Knight Frank - FICCI - NAREDCO Real Estate Sentiment Index Q4 2020 Survey, it was the resurgence that was powering optimism in real estate. The survey mirrors recovery expectations of not just real estate, but the economy. Investments in real estate over the recent past reflect positive sentiments on part of investors, domestic as also global, on the resurgence in the Indian economic growth story,” said Niranjan Hiranandani, National President - NAREDCO and ASSOCHAM and Founder and MD, Hiranandani Group.

“Stakeholder outlook for the office market has improved substantially in Q4 2020 as leasing activity gained momentum. The residential market outlook has revived further in Q4 2020, across all parameters, reflecting the increased traction in this segment. The impact of renewed consumer demand for residential realty has resulted in high levels of registration data, these transactions have lifted market sentiment,” he said.

Outlook | Jan 27, 2021

Sentiment in Real Estate turns optimistic in Oct-Dec: Report

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.

The 'Future Sentiment Score' witnessed a sharp jump to 65 points in Q4 2020 from 52 points in Q3 2020. A score of above 50 indicates 'Optimism' in sentiments, a score of 50 means the sentiment is 'Same' or 'Neutral', while a score below 50 indicates 'Pessimism'.

With respect to stakeholders, both developers and non-developers (which include banks, NBFCs and PE funds) recorded an improvement in Future Sentiment Score.

"Both the Current and Future Sentiment scores in Q4 2020 have seen great surge in the latest survey backed by revival in both residential and office market real estate that have been highly encouraging," said Shishir Baijal, Chairman and Managing Director, Knight Frank India.

The sector saw a lift in the market's mood and increased stakeholder expectations of a stronger recovery in the next six months, he said.

"As we begin our journey into 2021 with a positive outlook, it is important to closely watch the performance of the key economic indicators in the coming months to check the sustainability of the growth seen in the last two quarters of 2020," Baijal said.

As per the survey, 77 per cent of the respondents were of the opinion that residential sales would increase over the next six months, up from 66 per cent in Q3 2020.

With regards to the office market, 60 per cent of the Q4 2020 survey respondents, up from 47 per cent in Q3 2020, believed that office leasing activity would increase over the next six months.

Naredco President Niranjan Hiranandani said: "As reflected in the survey, it was a resurgence that was powering optimism in real estate. The survey mirrors recovery expectations of not just real estate, but the economy."

Investments in real estate over the recent past reflect positive sentiments on part of investors, domestic as also global, on the resurgence in the Indian economic growth story, he said.

"This is a clear indicator of the bullish growth story of Indian real estate and reflects on the growth prospects of 270 allied industries as also job creation. Recently, we have seen this investment being in the office spaces segment, which reflects the confidence of investors in the Indian GDP’s positive growth potential," Hiranandani said.

The critical aspect would be at what level the growth momentum is sustained after taking care of the pent-up demand, she added.

"The real estate sector has seen a boost in sentiments, aided by supportive measures from the government, the RBI and the resultant pick-up in end-user demand. Any further demand boosting measures announced by the government in the upcoming Union Budget, will give a strong fillip to the real estate sector," Sinha said.

Going forward, the trajectory of the real estate sector would be dependent on the economic recovery and efficacy of India's COVID vaccination drive, she said.

Yahoo News | Jan 27, 2021

Sentiment in real estate turns optimistic in Oct-Dec; outlook for next 6 months positive: Report

With respect to stakeholders, both developers and non-developers (which include banks, NBFCs and PE funds) recorded an improvement in Future Sentiment Score.

'Both the Current and Future Sentiment scores in Q4 2020 have seen great surge in the latest survey backed by revival in both residential and office market real estate that have been highly encouraging,' said Shishir Baijal, Chairman and Managing Director, Knight Frank India.

The sector saw a lift in the market's mood and increased stakeholder expectations of a stronger recovery in the next six months, he said.

'As we begin our journey into 2021 with a positive outlook, it is important to closely watch the performance of the key economic indicators in the coming months to check the sustainability of the growth seen in the last two quarters of 2020,' Baijal said.

As per the survey, 77 per cent of the respondents were of the opinion that residential sales would increase over the next six months, up from 66 per cent in Q3 2020.

With regards to the office market, 60 per cent of the Q4 2020 survey respondents, up from 47 per cent in Q3 2020, believed that office leasing activity would increase over the next six months.

Naredco President Niranjan Hiranandani said: 'As reflected in the survey, it was resurgence that was powering optimism in real estate. The survey mirrors recovery expectations of not just real estate, but the economy.' Investments in real estate over the recent past reflect positive sentiments on part of investors, domestic as also global, on the resurgence in the Indian economic growth story, he said.

'This is a clear indicator of the bullish growth story of Indian real estate and reflects on the growth prospects of 270 allied industries as also job creation. Recently, we have seen this investment being in the office spaces segment, which reflects the confidence of investors in the Indian GDP’s positive growth potential,' Hiranandani said.

The critical aspect would be at what level the growth momentum is sustained after taking care of the pent-up demand, she added.

'The real estate sector has seen a boost in sentiments, aided by supportive measures from the government, the RBI and the resultant pick-up in end-user demand. Any further demand boosting measures announced by the government in the upcoming Union Budget, will give a strong fillip to real estate sector,' Sinha said.

Going forward, the trajectory of the real estate sector would be dependent on the economic recovery and efficacy of India's COVID vaccination drive, she said.

The Daily Guardian | Jan 27, 2021

Real estate sentiment scores at a year-high in Q4

The 27th edition of Knight Frank-FICCI-NAREDCO real estate sentiment index Q4 2020 (October to December) survey released on Wednesday shows the current sentiment score entering optimistic zone at 54 points, marking a significant jump of 14 points over the previous quarter.

The future sentiment score also witnessed a robust surge to 65 points in Q4 from 52 points in Q3. Geographically, the western region saw the sharpest jump in future sentiment index to 66 points from 47 points.

With respect to stakeholders, both developers and non-developers including banks, non-banking finance companies and private equity funds recorded an improvement in future sentiment score in Q4.

On the macroeconomic front, 82 per cent of survey respondents opined that economy will grow further in the coming six months as opposed to 57 per cent respondents with the same view in Q3. The survey was conducted from January 7 to 14.

Similarly, the share of survey respondents with the opinion that economic health will worsen in the next six months went down substantially to 7 per cent in Q4 from 31 per cent in Q3 2020.

In terms of credit availability, 87 per cent of the Q4 2020 survey respondents believed that the funding scenario will either improve or continue to remain the same over the next six months.

Besides, 77 per cent of the Q4 survey respondents were of the opinion that residential sales will increase over the next six months, up from 66 per cent in Q3 2020.

With regards to the office market, 60 per cent of the Q4 survey respondents believed that office leasing activity will increase over the next six months.

“As we begin our journey into 2021 with a positive outlook, it is important to closely watch the performance of key economic indicators in coming months to check sustainability of growth seen in the last two quarters of 2020,” said Shishir Baijal, Chairman and Managing Director of Knight Frank India.

“Equally crucial is the development of the vaccine and its widespread availability for the masses. These two factors will largely determine the performance of real estate sector in coming months,” he said in a statement.

Deviscourse | Jan 27, 2021

Sentiment in real estate turns optimistic in Oct-Dec; outlook for next 6 months positive: Report

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. The 'Future Sentiment Score' witnessed a sharp jump to 65 points in Q4 2020from 52 points in Q3 2020. A score of above 50 indicates 'Optimism' in sentiments, a score of 50 means the sentiment is 'Same' or 'Neutral', while a score below 50 indicates 'Pessimism'.

With respect to stakeholders, both developers and non-developers (which include banks, NBFCs and PE funds) recorded an improvement in Future Sentiment Score.

''Both the Current and Future Sentiment scores in Q4 2020 have seen great surge in the latest survey backed by revival in both residential and office market real estate that have been highly encouraging,'' said Shishir Baijal, Chairman and Managing Director, Knight Frank India.

The sector saw a lift in the market's mood and increased stakeholder expectations of a stronger recovery in the next six months, he said.

''As we begin our journey into 2021 with a positive outlook, it is important to closely watch the performance of the key economic indicators in the coming months to check the sustainability of the growth seen in the last two quarters of 2020,'' Baijal said.

As per the survey, 77 per cent of the respondents were of the opinion that residential sales would increase over the next six months, up from 66 per cent in Q3 2020. With regards to the office market, 60 per cent of the Q4 2020 survey respondents, up from 47 per cent in Q3 2020, believed that office leasing activity would increase over the next six months.

Naredco President Niranjan Hiranandani said: ''As reflected in the survey, it was resurgence that was powering optimism in real estate. The survey mirrors recovery expectations of not just real estate, but the economy.'' Investments in real estate over the recent past reflect positive sentiments on part of investors, domestic as also global, on the resurgence in the Indian economic growth story, he said.

''This is a clear indicator of the bullish growth story of Indian real estate and reflects on the growth prospects of 270 allied industries as also job creation. Recently, we have seen this investment being in the office spaces segment, which reflects the confidence of investors in the Indian GDP's positive growth potential,'' Hiranandani said.

Rajani Sinha, Chief Economist and National Director Research, Knight Frank, said, the economic indicators in India have started improving in the last few months with the economy moving towards normalcy. The critical aspect would be at what level the growth momentum is sustained after taking care of the pent-up demand, she added.

''The real estate sector has seen a boost in sentiments, aided by supportive measures from the government, the RBI and the resultant pick-up in end-user demand. Any further demand boosting measures announced by the government in the upcoming Union Budget, will give a strong fillip to real estate sector,'' Sinha said.

Going forward, the trajectory of the real estate sector would be dependent on the economic recovery and efficacy of India's COVID vaccination drive, she said.

Big News Network | Jan 27, 2021

Real estate sentiment scores at a year-high in Q4

With respect to stakeholders, both developers and non-developers including banks, non-banking finance companies and private equity funds recorded an improvement in future sentiment score in Q4.

Similarly, the share of survey respondents with the opinion that economic health will worsen in the next six months went down substantially to 7 per cent in Q4 from 31 per cent in Q3 2020.

In terms of credit availability, 87 per cent of the Q4 2020 survey respondents believed that the funding scenario will either improve or continue to remain the same over the next six months. Besides, 77 per cent of the Q4 survey respondents were of the opinion that residential sales will increase over the next six months, up from 66 per cent in Q3 2020.

With regards to the office market, 60 per cent of the Q4 survey respondents believed that office leasing activity will increase over the next six months. "As we begin our journey into 2021 with a positive outlook, it is important to closely watch the performance of key economic indicators in coming months to check sustainability of growth seen in the last two quarters of 2020," said Shishir Baijal, Chairman and Managing Director of Knight Frank India.

"Equally crucial is the development of the vaccine and its widespread availability for the masses. These two factors will largely determine the performance of real estate sector in coming months," he said in a statement.

News Chant | Jan 27, 2021

Real Estate Sentiment scores at a year-high in Q4 2020

News Wrap India | Jan 27, 2021

Home sales at pre-Covid level; overall sentiment optimistic: Knight Frank

Sales of residential models throughout eight main Indian metros – Kolkata, Chennai, Pune, National Capital Region (NCR), Mumbai, Bengaluru, Hyderabad and Ahmadabad – reached pre-Covid ranges at 61,593 models within the December 2020 quarter (This fall’CY20) and the sentiment is probably going to enhance additional, based on Knight Frank-FICCI-NAREDCO Real Estate Sentiment Index for the October – December 2020 interval. On common, these cities recorded complete gross sales of 61,467 models in 2019, data present.

The residential section outlook, based on the survey findings, was supported by pent-up demand, multi-decadal low house mortgage rates of interest, enticing residential prices and state government incentives equivalent to discount of stamp responsibility in Maharashtra.

“The residential market outlook has revived further in Q4CY20, across all parameters, reflecting the increased traction in this segment. The impact of renewed consumer demand for residential realty has resulted in high levels of registration data, these transactions have lifted market sentiment” stated Dr. Niranjan Hiranandani, nationwide president – NAREDCO and ASSOCHAM and Founder & MD, Hiranandani Group.

Going forward, 77 per cent of the survey respondents within the December 2020 quarter imagine residential gross sales would rise over the following six months, up from 66 per cent within the September 2020 quarter and 31 per cent within the June 2020 quarter. However, solely 38 per cent of the respondents imagine that the prices of residential models will enhance going forward, down marginally from 40 per cent in September 2020 quarter.

“With regards to the office market, 60 per cent of the Q4 2020 survey respondents, up from 47 per cent in Q3 2020, believed that office leasing activity would increase over the next six months,” survey findings recommend.

Sentiment improves

The Current Sentiment score – a gauge utilized by the realty advisor to evaluate the present temper amongst related stakeholders – has jumped significantly to 54 within the October – December 2020 quarter (This fall’CY20) from 40 in July – September 2020 interval (Q3’CY20) and 22 in April – June 2020 (Q2’CY20), coming into the optimistic zone for the primary time in 2020. The Future Sentiment score, too, confirmed an enchancment – rising to 65 in (This fall’CY20) from 52 in (Q3’CY20), mirroring the sturdy restoration expectations prevalent out there.

“Both the Current and Future Sentiment scores in Q4’CY20 have seen surge backed by revival in both residential and office market. As we begin our journey into 2021 with a positive outlook, it is important to closely watch the performance of key economic indicators in the coming months to check the sustainability of the growth. Equally crucial is the development of the vaccine and its widespread availability for the masses. These two factors will largely determine the performance of the real estate sector in the coming months,” stated Shishir Baijal, chairman and managing director at Knight Frank India.

The Real Estate Sentiment Index, based on the Knight Frank – NAREDCO report, is predicated on a quarterly survey of key supply-side stakeholders, which embrace builders, personal fairness funds, banks and non-banking monetary corporations (NBFCs). A score of 50 represents a impartial view or establishment; a score above 50 demonstrates a positive sentiment; and a score beneath 50 signifies a negative sentiment.

West India leads optimism

Among areas, West Zone (West India) noticed the very best bounce within the Future Sentiment score, based on the Knight Frank-FICCI-NAREDCO Real Estate Sentiment Index, reaching 66 within the December 2020 quarter from 47 within the September 2020 quarter.

“East zone stakeholder outlook also saw a substantial leap in future sentiments, jumping to 65 in Q4’CY20 from 50 in Q3’CY20. The Future Sentiment score for the North region rose to 58 in Q4’CY20 from 55 in Q3’CY20, while that of the already bullish South region improved marginally to 66 in Q4’CY20 from 65 in Q3’CY20,” the survey findings recommend.

India Right Now News | Jan 27, 2021

Home sales at pre-Covid level; overall sentiment optimistic: Knight Frank

Business Standard | Jan 27, 2021

Real estate sentiment scores at a year-high in Q4

With respect to stakeholders, both developers and non-developers including banks, non-banking finance companies and private equity funds recorded an improvement in future sentiment score in Q4.

Similarly, the share of survey respondents with the opinion that economic health will worsen in the next six months went down substantially to 7 per cent in Q4 from 31 per cent in Q3 2020.

In terms of credit availability, 87 per cent of the Q4 2020 survey respondents believed that the funding scenario will either improve or continue to remain the same over the next six months.

Besides, 77 per cent of the Q4 survey respondents were of the opinion that residential sales will increase over the next six months, up from 66 per cent in Q3 2020.

With regards to the office market, 60 per cent of the Q4 survey respondents believed that office leasing activity will increase over the next six months.

"As we begin our journey into 2021 with a positive outlook, it is important to closely watch the performance of key economic indicators in coming months to check sustainability of growth seen in the last two quarters of 2020," said Shishir Baijal, Chairman and Managing Director of Knight Frank India.

Financial Express | Jan 27, 2021

Real Estate Sentiment scores at a year-high in Q4 2020

The Current Sentiment score jumped considerably to 54 in Q4 2020 from 40 in Q3 2020, entering the optimistic zone for the first time in 2020, reveals the 27th Edition of Knight Frank-FICCI-NAREDCO Real Estate Sentiment Index Q4 2020 (October – December 2020) Survey. The score had turned negative in Q1 2020 after the COVID-19 outbreak and had remained in the pessimistic zone during Q2 2020, as the impact of the stringent lockdowns became apparent on businesses. It revived in Q3 2020 on the back of improving economic health and pent-up demand.

The residential segment outlook was supported by pent-up demand, festive demand, multi-decadal low home loan interest rates, attractive residential prices and state government incentives such as reduction of stamp duty in Maharashtra. Residential sales reached pre-COVID levels (2019 quarterly average) by Q4 2020.

The Future Sentiment score also climbed up to 65 in Q4 2020 from 52 in Q3 2020, mirroring the strong recovery expectations prevalent in the market. Stirring demand and festivities of Q4 2020 gave a strong fillip not just to the real estate sector but also to the economy at large. The improvement in high-frequency indicators recorded since September 2020 continued in December 2020 as well. Goods and Services Tax (GST) collections in December 2020 are at a record high whereas the Purchasing Managers’ Index (PMI) for manufacturing recorded a fifth straight month of expansion.

Geographically, the western part of the country saw the sharpest jump in Future Sentiment Index. This zone’s Future Sentiment jumped to 66 points in Q4 2020 from 47 points in Q3 2020. With respect to stakeholders, both developers and non-developers (which include banks, NBFCs and PE funds) recorded an improvement in Future Sentiment score in Q4 2020.

On the macroeconomic front, 82% of the survey respondents opined that the economy would grow further in the coming six months as opposed to the 57% respondents with the same view in Q3 2020. Similarly, the share of survey respondents with the opinion that economic health will worsen in the next six months went down substantially to 7% in Q4 2020 from 31% in Q3 2020. In terms of credit availability, 87% of the Q4 2020 survey respondents believed that the funding scenario would either improve or continue to remain the same over the next six months.

Further, 77% of the Q4 2020 survey respondents were of the opinion that residential sales would increase over the next six months, up from 66% in Q3 2020. With regards to the office market, 60% of the Q4 2020 survey respondents, up from 47% in Q3 2020, believed that office leasing activity would increase over the next six months.

Commenting on the same, Shishir Baijal, CMD, Knight Frank India, said, “Both the Current and Future Sentiment scores in Q4 2020 have seen great surge in the latest survey backed by revival in both residential and office market real estate that have been highly encouraging. The sector saw a lift in the market’s mood and increased stakeholder expectations of a stronger recovery in the next six months. As we begin our journey into 2021 with a positive outlook, it is important to closely watch the performance of the key economic indicators in the coming months to check the sustainability of the growth seen in the last two quarters of 2020. Equally crucial is the development of the vaccine and its widespread availability for the masses. These two factors will largely determine the performance of the real estate sector in the coming months.”

Dr. Niranjan Hiranandani, National President – NAREDCO and ASSOCHAM, and Founder & MD, Hiranandani Group, said, “The survey mirrors recovery expectations of not just real estate, but the economy. Investments in real estate over the recent past reflect positive sentiments on part of investors, domestic as also global, on the resurgence in the Indian economic growth story. This is a clear indicator of the bullish growth story of the Indian real estate and reflects on the growth prospects of 270 allied industries as also job creation. Recently, we have seen this investment being in the office spaces segment, which reflects the confidence of investors in the Indian GDP’s positive growth potential. Stakeholder outlook for the office market has improved substantially in Q4 2020 as leasing activity gained momentum.”

The residential market outlook has revived further in Q4 2020, across all parameters, reflecting the increased traction in this segment. “The impact of renewed consumer demand for residential realty has resulted in high levels of registration data, these transactions have lifted market sentiment. This bull run will be sustainable, growing through 2021, in the backdrop of the anticipated positive Union Budget – scripting the real estate revolution in India,” Hiranandani added.

It may be noted that a score of above 50 indicates ‘Optimism’ in sentiments, a score of 50 means the sentiment is ‘Same’ or ‘Neutral’, while a score below 50 indicates ‘Pessimism’.

Financial Express | Jan 27, 2021

Sentiment in real estate turns optimistic in October-December; outlook for next 6 months positive: Report

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.

The ‘Future Sentiment Score’ witnessed a sharp jump to 65 points in Q4 2020 from 52 points in Q3 2020. A score of above 50 indicates ‘Optimism’ in sentiments, a score of 50 means the sentiment is ‘Same’ or ‘Neutral’, while a score below 50 indicates ‘Pessimism’. With respect to stakeholders, both developers and non-developers (which include banks, NBFCs and PE funds) recorded an improvement in Future Sentiment Score.

“Both the Current and Future Sentiment scores in Q4 2020 have seen great surge in the latest survey backed by revival in both residential and office market real estate that have been highly encouraging,” said Shishir Baijal, Chairman and Managing Director, Knight Frank India. The sector saw a lift in the market’s mood and increased stakeholder expectations of a stronger recovery in the next six months, he said.

“As we begin our journey into 2021 with a positive outlook, it is important to closely watch the performance of the key economic indicators in the coming months to check the sustainability of the growth seen in the last two quarters of 2020,” Baijal said. As per the survey, 77 per cent of the respondents were of the opinion that residential sales would increase over the next six months, up from 66 per cent in Q3 2020.

With regards to the office market, 60 per cent of the Q4 2020 survey respondents, up from 47 per cent in Q3 2020, believed that office leasing activity would increase over the next six months. Naredco President Niranjan Hiranandani said: “As reflected in the survey, it was resurgence that was powering optimism in real estate. The survey mirrors recovery expectations of not just real estate, but the economy.”

Investments in real estate over the recent past reflect positive sentiments on part of investors, domestic as also global, on the resurgence in the Indian economic growth story, he said.

“This is a clear indicator of the bullish growth story of Indian real estate and reflects on the growth prospects of 270 allied industries as also job creation. Recently, we have seen this investment being in the office spaces segment, which reflects the confidence of investors in the Indian GDP’s positive growth potential,” Hiranandani said.

“The real estate sector has seen a boost in sentiments, aided by supportive measures from the government, the RBI and the resultant pick-up in end-user demand. Any further demand boosting measures announced by the government in the upcoming Union Budget, will give a strong fillip to real estate sector,” Sinha said.

Going forward, the trajectory of the real estate sector would be dependent on the economic recovery and efficacy of India’s COVID vaccination drive, she said.

Live Mint | Jan 27, 2021

Sentiment in real estate turns optimistic; expectations from Budget rise

Sentiment in the real estate industry swung to the optimistic zone in October-December quarter, according to Knight Frank-FICCI-NAREDCO quarterly survey. For the first time in 2020, the 'Current Sentiment Score' of the Real Estate Sentiment Index entered the optimistic zone, jumping 14 points to 54 in the quarter, the survey report showed.

A score of above 50 indicates ‘Optimism’ in sentiment, a score of 50 means the sentiment is ‘Same’ or ‘Neutral’, while a score below 50 indicates ‘Pessimism’, according to the survey. Those surveyed are developers, banks, financial institutions and private equity players operating in the sector.

The Future Sentiment Score surged to 65 points in Q4 2020 from 52 points in Q3 2020, it said. Region wise, the western part of the country saw the sharpest jump in Future Sentiment Index. This zone’s Future Sentiment soared to 66 in Q4 2020 from 47 in the previous quarter, added the report.

The improvement in real estate sentiment in western India is aided by the stamp duty cut announced by the Maharashtra government during the quarter. Although for a temporary period, the move is likely to help developers, especially in Mumbai and Pune offload ready inventory. In fact, Mumbai-based developer Oberoi Realty Ltd reported a two-fold jump in new residential bookings in the December quarter, showed its recently published quarterly earnings.

Real estate analysts are of the view that buoyancy in sales could also prompt other state governments to reduce stamp duty and ease registration requirements.

For now, hopes from the upcoming Union Budget are rising. Expectations include the industry’s long-pending demands such as industry status, reduction/rebate in the Goods and Services Tax, increased allocation to Pradhan Mantri Awas Yojana and extension of tax holiday for affordable housing projects, among others.

"Industry status will help the borrowing capacity of the players. Loan disbursal at cheaper rates and inflow of liquidity will help kick start stalled as well as new projects. Input tax credit will provide relief from double taxation. These policy measures will also boost the office market demand," analysts at HDFC Securities Ltd said in a report on 24 January.

Deccan Herald | Jan 27, 2021

Sentiment in real estate turns optimistic in Oct-Dec; outlook for next 6 months positive: Report

With respect to stakeholders, both developers and non-developers (which include banks, NBFCs and PE funds) recorded an improvement in Future Sentiment Score.

The sector saw a lift in the market's mood and increased stakeholder expectations of a stronger recovery in the next six months, he said.

As per the survey, 77 per cent of the respondents were of the opinion that residential sales would increase over the next six months, up from 66 per cent in Q3 2020.

With regards to the office market, 60 per cent of the Q4 2020 survey respondents, up from 47 per cent in Q3 2020, believed that office leasing activity would increase over the next six months.

Naredco President Niranjan Hiranandani said: "As reflected in the survey, it was resurgence that was powering optimism in real estate. The survey mirrors recovery expectations of not just real estate, but the economy."

Investments in real estate over the recent past reflect positive sentiments on part of investors, domestic as also global, on the resurgence in the Indian economic growth story, he said.

The critical aspect would be at what level the growth momentum is sustained after taking care of the pent-up demand, she added.

Going forward, the trajectory of the real estate sector would be dependent on the economic recovery and efficacy of India's COVID vaccination drive, she said.

ANI News | Jan 27, 2021

Real estate sentiment scores at a year-high in Q4

Zee5 | Jan 27, 2021

Real estate sentiment scores at a year-high in Q4

With respect to stakeholders, both developers and non-developers including banks, non-banking finance companies and private equity funds recorded an improvement in future sentiment score in Q4.

Similarly, the share of survey respondents with the opinion that economic health will worsen in the next six months went down substantially to 7 per cent in Q4 from 31 per cent in Q3 2020.

In terms of credit availability, 87 per cent of the Q4 2020 survey respondents believed that the funding scenario will either improve or continue to remain the same over the next six months.

Besides, 77 per cent of the Q4 survey respondents were of the opinion that residential sales will increase over the next six months, up from 66 per cent in Q3 2020.

With regards to the office market, 60 per cent of the Q4 survey respondents believed that office leasing activity will increase over the next six months.

Telangana Today | Jan 27, 2021

Real estate outlook for 2021 optimistic: Knight Frank-FICCI-Naredco study

According to the 27th Edition of Knight Frank-FICCI-Naredco Real Estate Sentiment Index Q4 2020 (October–December) Survey, for the first time in 2020, the Current Sentiment Score entered the optimistic zone at 54 points in Q4 2020, a significant jump of 14 points over the previous quarter at 40.

A score of above 50 indicates ‘optimism’ in sentiment, a score of 50 means the sentiment is ‘same’ or ‘neutral’, while a score below 50 indicates ‘pessimism’.

The ‘Future Sentiment Score’ also witnessed a surge to 65 points in Q4 2020 from 52 points in Q3 2020. Geographically, the western India saw the sharpest jump in the Future Sentiment Index. This zone’s sentiment jumped to 66 points in Q4 2020 from 47 points in Q3 2020. The already bullish southern region improved marginally to 66 in Q4 2020 from 65 in Q3 2020.

On the stakeholder front, both developers and non-developers (which include banks, NBFCs and private equity funds) recorded an improvement in Future Sentiment score in Q4 2020.

Further, 77 per cent of the Q4 2020 respondents were of the opinion that residential sales would increase over the next six months, up from 66 per cent in Q3 2020. With regards to the office market, 60 per cent of the respondents, up from 47 per cent in Q3 2020, believed that office leasing activity would increase over the next six months.

Similarly, the share of survey respondents with the opinion that economic health will worsen in the next six months went down substantially to seven per cent in Q4 2020 from 31 per cent in Q3 2020.

In terms of credit availability, 87 per cent of the Q4 2020 survey respondents believed that the funding scenario would either improve or continue to remain the same over the next six months.

Business World | Jan 27, 2021

Real Estate sentiment scores at a year-high in Q4

With respect to stakeholders, both developers and non-developers including banks, non-banking finance companies and private equity funds recorded an improvement in future sentiment score in Q4.

Similarly, the share of survey respondents with the opinion that economic health will worsen in the next six months went down substantially to 7 per cent in Q4 from 31 per cent in Q3 2020.

In terms of credit availability, 87 per cent of the Q4 2020 survey respondents believed that the funding scenario will either improve or continue to remain the same over the next six months.

Besides, 77 per cent of the Q4 survey respondents were of the opinion that residential sales will increase over the next six months, up from 66 per cent in Q3 2020.

With regards to the office market, 60 per cent of the Q4 survey respondents believed that office leasing activity will increase over the next six months.

99acres | Jan 15, 2021

Budget 2021: FICCI recommends incentives for homebuyers in the affordable segment

The Federation of Indian Chambers of Commerce and Industry (FICCI) has provided certain recommendations for the Union Budget 2021-22, to provide push to affordable housing sector across Tier 1 cities of India.

The Federation of Indian Chambers of Commerce and Industry (FICCI) is of the view that the Union Budget 2021-22 needs to provide impetus to affordable housing, particularly in the metro cities of India. The industry chamber recommended that the stamp duty value for additional deduction provided to first time buyers should be increased to Rs 65 lakh. At present, property stamp valuation cannot exceed Rs 45 lakh.

As opined by FICCI, in its pre-Budget memorandum, the present deduction benefits only helps borrowers in the lower segment across Tier 2 and Tier 3 cities. The industry body recommends increase in the stamp duty valuation for Metro and Tier 1 cities, such as Hyderabad and Pune. The move, as per FICCI, will help in giving a thrust to the affordable segment in these cities.

In addition to this, FICCI also recommended that the period for sanctioning of housing loan and availing deduction should be extended from March 31, 2021, to March 31, 2022.

The Times of India | Jan 13, 2021

Budget 2021 for homebuyers: Give these incentives to first time homebuyers to boost affordable housing

Business Standard | Jan 13, 2021

Realty Connex - Real Estate 2020 & Beyond

The event will witness the interaction between the industry professionals on the topic 'Real Estate 2020 & Beyond' in Hyderabad. the experts also spoke about the exhibition industry as such, which has brought in major players to the Hyderabad market. the real estate industry expositions by prominent organizations were appreciated and the upcoming the first of its kind & the biggest 'Realty Connex' was termed as one of the important aspects of Hyderabad real estate market for the future projects, set to be held from 5th to 7th February, 2021 at HICC-Novotel, Hyderabad.

Realty Connex is all set to revolutionize the exhibition & expos segment pan India, the exhibition considering the dual platform will be able to connect audience both physically & virtually, a segment which guarantees a better footfalls, better sales, better connectivity and better interface between real estate firms & their potential customers, a unique initiative by Mahati Market Essentialz, one of the pioneers in the nation to create a unique platform for Virtual Expos during the lockdown which has helped umpteen number of companies, organizations, associations, etc. to organize important conferences, meets, workshops, expos & employee engagement programs.

Mahati Market Essentialz & Exposim have executed unique projects successfully for their clients including Uttar Pradesh Distillery Association (Upda), Business Network International (Bni) Chhattisgarh Region, Kanpur Region, M/S. Gandhi Cooperative Bank, M/S. Peoples Credit Society (Pmaccs), Nasscom Association, Institute Of Company Secretaries Of India (Icsi Org.), Phd Chambers Association, Indian Railways Retired Federation (Airraf), Union Bank Of India (Ubi), Kohinoor Business Expo, to name a few.

Business World | Jan 13, 2021

Realty Connex - Real Estate 2020 & Beyond

The event will witness the interaction between the industry professionals on the topic 'Real Estate 2020 & Beyond' in Hyderabad. the experts also spoke about the exhibition industry as such, which has brought in major players to the hyderabad market. the real estate industry expositions by prominent organizations were appreciated and the upcoming the first of its kind & the biggest 'Realty Connex' was termed as one of the important aspects of hyderabad real estate market for the future projects, set to be held from 5th to 7th February, 2021 at HICC-Novotel, Hyderabad.

Realty Connex is all set to revolutionize the exhibition & expos segment pan india, the exhibition considering the dual platform will be able to connect audience both physically & virtually, a segment which guarantees a better footfalls, better sales, better connectivity and better interface between real estate firms & their potential customers, a unique initiative by Mahati Market Essentialz, one of the pioneers in the nation to create a unique platform for Virtual Expos during the lockdown which has helped umpteen number of companies, organizations, associations, etc. to organize important conferences, meets, workshops, expos & employee engagement programs.

Mahati Market Essentialz&Exposim have executed unique projects successfully for

their clients including Uttar Pradesh Distillery Association (Upda), Business Network International (Bni) Chhattisgarh Region, Kanpur Region, M/S. Gandhi Cooperative Bank, M/S. Peoples Credit Society (Pmaccs), Nasscom Association, Institute Of Company Secretaries Of India (Icsi Org.), Phd Chambers Association, Indian Railways Retired Federation (Airraf), Union Bank Of India (Ubi), Kohinoor Business Expo, to name a few.

Yahoo Finance | Jan 13, 2021

Realty Connex - Real Estate 2020 & Beyond

Lokmat English | Jan 13, 2021

Realty Connex - Real Estate 2020 & Beyond

Deviscourse | Jan 13, 2021

Realty Connex - Real Estate 2020 & Beyond

Prominent Real Estate Industry Professionals comprising of C Prabhakar Rao, President TBF (Telangana Builders Federation);. Abhishek Chanda, Director, Vasavi Constructions, Bala Vinod Sudam - Member Real Estate Committee FICCI Telangana and Avinash Khanapur, Mahati Market Essentialz interacted regarding the Real Estate Market in Hyderabad and its growing potential. The discussion focussed on the Real Estate Industry of Hyderabad, how it was during the year of Pandemic - 2020 and its projection for 2021 & Beyond. The event will witness the interaction between the industry professionals on the topic 'Real Estate 2020 & Beyond' in Hyderabad. the experts also spoke about the exhibition industry as such, which has brought in major players to the Hyderabad market. the real estate industry expositions by prominent organizations were appreciated and the upcoming the first of its kind & the biggest 'Realty Connex' was termed as one of the important aspects of Hyderabad real estate market for the future projects, set to be held from 5th to 7th February, 2021 at HICC-Novotel, Hyderabad.

Realty Connex is being organized by Mahati Market Essentialz, an organization which has created one of the most innovative virtual exhibition platforms and has been instrumental in hosting business conferences, workshops, events and team interactions, exhibitions across the globe. Realty Connex is all set to revolutionize the exhibition & expos segment pan India, the exhibition considering the dual platform will be able to connect audience both physically & virtually, a segment which guarantees a better footfalls, better sales, better connectivity and better interface between real estate firms & their potential customers, a unique initiative by Mahati Market Essentialz, one of the pioneers in the nation to create a unique platform for Virtual Expos during the lockdown which has helped umpteen number of companies, organizations, associations, etc. to organize important conferences, meets, workshops, expos & employee engagement programs.

Speaking on the occasion, Avinash Khanapur from Mahati Market Essentialz said, "our success on the virtual platform and our experience of conducting physical exhibition got us to amalgamate the most happening industry - real estate - in physical & virtual platform, making 'Realty Connex' the first of its kind hybrid exhibition in the country. The Expo will with ease facilitate interaction, communication, presentation of B2B & B2C customers with the participating brands. The Physical Expo is being organized with full adherence to Safety Norms as per MoHA Guidelines. To register yourself as a participant in the Real Estate Expo 'Realty Connex' visit https://realtyconnex.mahati-me.com/ Mahati Market Essentialz & Exposim have executed unique projects successfully for their clients including Uttar Pradesh Distillery Association (Upda), Business Network International (Bni) Chhattisgarh Region, Kanpur Region, M/S. Gandhi Cooperative Bank, M/S. Peoples Credit Society (Pmaccs), Nasscom Association, Institute Of Company Secretaries Of India (Icsi Org.), Phd Chambers Association, Indian Railways Retired Federation (Airraf), Union Bank Of India (Ubi), Kohinoor Business Expo, to name a few.

Verna Magazine | Jan 12, 2021

First of its kind hybrid exposition on real estate industry with interaction with prominent real estate industry professionals

Highlights of Realty Connex:

100+ Reputed Real Estate Companies are set to participate in the Real Estate Expo
Physical Expo will be held from 5th to 7th February 2021 at Hicc-Novotel, Hitech City, Hyderabad.
Virtual Expo will be held on 3D interactive intuitive platform where inventory will be showcased virtually.
Realty Connex offers a platform to buyers, builders, contractors, real estate firms to connect, share, offer their products and services to prospective realty buyers.

Prominent Real Estate Industry Professionals comprising of Mr. C Prabhakar Rao, President TBF (Telangana Builders Federation); Mr. Abhishek Chanda, Director, Vasavi Constructions, Mr. Bala Vinod Sudam – Member Real Estate Committee FICCI Telangana and Mr. Avinash Khanapur, Mahati Market Essentialz interacted regarding the Real Estate Market in Hyderabad and its growing potential. The discussion focussed on the Real Estate Industry of Hyderabad, how it was during the year of Pandemic – 2020 and its projection for 2021 & Beyond.

The event will witness the interaction between the industry professionals on the topic ‘Real Estate 2020 & Beyond’ in Hyderabad. the experts also spoke about the exhibition industry as such, which has brought in major players to the Hyderabad market. the real estate industry expositions by prominent organizations were appreciated and the upcoming the first of its kind & the biggest ‘Realty Connex’ was termed as one of the important aspects of Hyderabad real estate market for the future projects, set to be held from 5th to 7th February, 2021 at HICC-Novotel, Hyderabad.

Realty Connex is all set to revolutionize the exhibition & expos segment pan India, the exhibition considering the dual-platform will be able to connect audience both physically & virtually, a segment which guarantees a better footfalls, better sales, better connectivity and better interface between real estate firms & their potential customers, a unique initiative by Mahati Market Essentialz, one of the pioneers in the nation to create a unique platform for Virtual Expos during the lockdown which has helped umpteen number of companies, organizations, associations, etc. to organize important conferences, meets, workshops, expos & employee engagement programs.

Speaking on the occasion, Avinash Khanapur from Mahati Market Essentialz said, “our success on the virtual platform and our experience of conducting physical exhibition got us to amalgamate the most happening industry – real estate – in physical & virtual platform, making ‘Realty Connex’ the first of its kind hybrid exhibition in the country. The Expo will with ease facilitate interaction, communication, presentation of B2B & B2C customers with the participating brands. The Physical Expo is being organized with full adherence to Safety Norms as per MoHA Guidelines.

Click here to participate in the Real Estate Expo ‘Realty Connex’

Business Standard | Jan 11, 2021

Real Estate industry seeks premiums deductions in other states in tune with Maharashtra

The real estate industry has welcomed the Government of Maharashtra move to reduce premiums charged by the civic authorities by 50% basis ready reckoner rates of 2019 or 2020, whichever is more, for the next one year until 31 December 2021, as recommended by the Deepak Parekh committee, a latest update from Federation of Indian Chambers of Commerce & Industry or FICCI noted. This is expected to give a fillip to the real estate activities in the state. While on one hand it will reduce the stamp duty burden for the buyers, it will, on the other support the developers in building new projects at a reduced input cost thus effectively lowering the price for new projects in the long run.

Sanjay Dutt, Joint Chairman, FICCI Real Estate Committee said that the Maharashtra government has been proactively listening to the challenges faced by the real estate sector, which is of the biggest employers and contributor to the economy. Despite stamp duty reduction showing an increase in revenue for the state, the state government realized that given the current low residential demand and reduction in prices many projects were not viable.

This move will ensure that projects stuck for last mile funding, or that have no takers of unviable projects, are considered. Despite a hair cut in value by the developers and lately NBFC, it was not appealing to the PE. The reduction in premiums will serve as role model for other state governments to revive the real estate sector.

Constro Facilitator | Jan 09, 2021

Expectation of 50% reduction in premium in other states too

Maharashtra cabinet approved 50% reduction in premium for real estate projects upto December 31, 2021, real estate industry experts are urging other states to follow suit.

Industry leaders observed that such move will not just trigger cost reduction but also enable the developers complete their projects on time with a major enhancement in developers operational capacity.

“The reduction in premiums will serve as role model for other state governments to revive the real estate sector and bring back much needed employment and overall reduce the pain of the pandemic,” said Sanjay Dutt, joint chairman, FICCI Real Estate Committee.

“While on one hand it will reduce the stamp duty burden for the buyers, it will, on the other support the developers in building new projects at a reduced input cost thus effectively lowering the price for new projects in the long run,” added Dutt.

Raj Menda, joint chairman, FICCI Real Estate Committee said, “We hope that other states take similar initiatives.”

Developers within Maharashtra are already optimistic about the impact on reduction cpupled with stamp duty reduction it had previously announced. The state had earlier reduced the stamp duty rates from 5 per cent to 2 per cent till 31 December 2020 and 3 per cent till March 2021.

“The decision coupled with reduced stamp duty cost would help the sector to witness accelerated sales due to the feasible home prices in the upcoming time. It would incentivize the purchasing decision of the homebuyers and boost the residential real estate demand,” said Kamal Khetan, chairman and MD, Sunteck Realty.

Vikas Chaturvedi, CEO, Xanadu Realty said, It will strengthen the supply side, reduce project timelines, and rationalise input costs for developers in the state. Moreover, since the direct benefits are being passed onto the end-consumer, it will stimulate the regional market in Maharashtra by bolstering consumer purchase sentiment and investor interest.”

“This will not just increase sales of homes owing to reduced prices, but this will also help churn the wheels of the overall state economy given the far reaching impact of the construction sector,” Bhavin Thakker, MD (Mumbai), Savills India.

The New Indian Express | Jan 09, 2021

Real estate industry seeks premium cut in all states

The recent move by the Maharashtra government to reduce premiums charged by the civic authorities by 50 per cent basis ready reckoner rates of 2019 or 2020, whichever is more, until December 31, 2021, is being widely welcomed by the industry.

FICCI’s Real Estate Committee on Friday said that the real estate sector desires a similar move to be implemented in other states as well. According to the committee, the move will not only trigger cost reduction but also enable the developers complete their projects on time with a major enhancement in developers operational capacity.

“This move will ensure that projects stuck for last mile funding, or that have no takers of unviable projects, are considered. Despite a hair cut in value by the developers and lately NBFC, it was not appealing to the PE.

The reduction in premiums will serve as a role model for other state governments to revive the real estate sector and bring back much needed employment and overall reduce the pain of the pandemic,” said Sanjay Dutt, joint chairman, FICCI Real Estate Committee & MD and CEO, Tata Realty & Infrastructure.

Premium refers to the number of charges that are levied by the state with respect to approvals for initiating, progressing and completing an area in a project. According to estimates, these charges constitute around 18 to 25 per cent of total project cost in Mumbai. The developers, who will be taking the benefit been asked to pay the stamp duty.

India Education Diary | Jan 08, 2021

Industry desires Realty Premiums Deductions in other States after Maharashtra Govt cuts Realty Premiums to 50%

Industry has welcomed the Government of Maharashtra move to reduce premiums charged by the civic authorities by 50 per cent basis ready reckoner rates of 2019 or 2020, whichever is more, for the next one year until 31 December 2021, as recommended by the Deepak Parekh committee.

This is expected to give a fillip to the real estate activities in the state. While on one hand it will reduce the stamp duty burden for the buyers, it will, on the other support the developers in building new projects at a reduced input cost thus effectively lowering the price for new projects in the long run.

Mr Sanjay Dutt, Joint Chairman, FICCI Real Estate Committee & MD & CEO, Tata Realty & Infrastructure Ltd said that the Maharashtra government has been proactively listening to the challenges faced by the real estate sector, which is of the biggest employers and contributor to the economy.

Despite stamp duty reduction showing an increase in revenue for the state, the state government realized that given the current low residential demand and reduction in prices many projects were not viable. This move will ensure that projects stuck for last mile funding, or that have no takers of unviable projects, are considered. Despite a hair cut in value by the developers and lately NBFC, it was not appealing to the PE. The reduction in premiums will serve as role model for other state governments to revive the real estate sector and bring back much needed employment and overall reduce the pain of the pandemic, he said.

Mr Raj Menda, Joint Chairman, FICCI Real Estate Committee & Corporate Chairman, RMZ Corp welcomed the announcement and said, “This is a good move by the Government in being proactive to revive the Real Estate industry. We hope that other states take similar initiatives.”

Mr Getamber Anand, Co Chairman, FICCI Real Estate Committee & Chairman & Managing Director, ATS Infrastructure Ltd said, “It is an absolutely practical step in the right direction that will help our sector to stand up and create jobs for the unskilled and the semiskilled population of our country.”

This is the second consecutive positive move by the government of Maharashtra to stimulate the Real Estate Sector. It had earlier reduced the stamp duty rates from 5 per cent to 2 per cent till 31 December 2020 and 3 per cent till March 2021.

ET Realty | Jan 08, 2021

Realty industry seeks Maharashtra like premium deduction in other states

After Maharashtra cabinet approved 50% reduction in premium for real estate projects upto December 31, 2021, real estate industry experts are urging other states to follow suit.

"The reduction in premiums will serve as role model for other state governments to revive the real estate sector and bring back much needed employment and overall reduce the pain of the pandemic," said Sanjay Dutt, joint chairman, FICCI Real Estate Committee.

"While on one hand it will reduce the stamp duty burden for the buyers, it will, on the other support the developers in building new projects at a reduced input cost thus effectively lowering the price for new projects in the long run," added Dutt.

Raj Menda, joint chairman, FICCI Real Estate Committee said, "We hope that other states take similar initiatives."

"The decision coupled with reduced stamp duty cost would help the sector to witness accelerated sales due to the feasible home prices in the upcoming time. It would incentivize the purchasing decision of the homebuyers and boost the residential real estate demand," said Kamal Khetan, chairman and MD, Sunteck Realty.

"This will not just increase sales of homes owing to reduced prices, but this will also help churn the wheels of the overall state economy given the far reaching impact of the construction sector," Bhavin Thakker, MD (Mumbai), Savills India.

Times Now | Nov 25, 2020

Demand for plots rises amid pandemic; here's what you should know if you plan to buy

After the pandemic, a shift in consumption and demand has been noticed in different sectors of the economy. People prefer more personal space and are not afraid of placing a premium on it.

Many are making the switch from public transport to private vehicles and from flats in housing complexes to independent plots.

The demand for plotted developments is on the rise as self-owned homes, villas or row houses, provide better social distancing compared to apartments, according to a September FICCI-ANAROCK report.

Relatively affordable smaller plots range of 1,500 sf to 2,000 sf are all the more rage, the report said

Besides, with many professionals WFH for a considerable time in the future, one can work from anywhere and need not be housed in the core city areas.

Buying a plot is cheaper than buying an apartment and this cost can further be lowered if it is located at city outskirts where land rates are even lower. Having a plot gives additional freedom to the buyer to start construction at their own pace. An independent house can be designed or customised according to the owner’s wishes.

The risk of delivery getting delayed or cancelled is also lower in cases of land plots. While the value of vacant plots appreciates overtime, built constructions tend to depreciate over time.

It is relatively easier to sell a plot in say 8-10 years than it is to sell an apartment. If the housing complex is not well maintained then it gets difficult for apartment owners to their property. While a plot is usually delivered within 6 months of the deal being signed and sealed, delivery of under-construction apartments could take as long as three to four years.

What buyers should check before buying plots?

Buyers must know about FSI rules so that they know how much construction is allowed on the land.

It is important to know about restrictions and limitations placed on height and number of floors.

It’s useful to familiarise yourself with the builders’ own rules and limitations regarding constriction.

Lastly, it is important for the owner to oversee the construction work at the site firsthand.

The Hindu Business Line | Nov 13, 2020

Kerala will resolve problems in real estate and construction sectors: chief secretary Vishwas Mehta

Vishwas Mehta, Chief Secretary, Kerala has assured the builders that the problems and grievances in the real estate and construction sectors in the State would be resolved soon.

He was inaugurating the virtual dialogue programme organized by the Federation of Indian Chambers of Commerce and Industry (FICCI) Kerala State Council in association with CREDAI Kerala on the topic of effortless business in the real estate and construction sectors.

The good deeds done by the government to overcome adverse conditions often go unnoticed. It is easy to blame. The real estate sector, which is one of the most challenging sectors in the state, is also a major contributor to the economy. Without investment and plans, the State can no longer move forward, he said.

RERA's web portal will be operational in Kerala soon and more than 50 per cent of the work has been completed, said P H. Kurian,Chairman,RERA Kerala. Efforts to address the concerns related to building rules will be intensified, he said.

M.G. Rajamanikyam, Managing Director, KSIDC and Mir Muhammadali, Director, Kerala Coastal Zone Management Authority, have also addressed the gathering.

Business Today | Oct 26, 2020

Retail sentiment in real estate improves in Q3, but not robust yet

The retail sentiment towards real estate sector has improved significantly in the third quarter of 2020 - be it the current or future sentiments. According to the 26th Knight Frank-FICCI-NAREDCO Real Estate Sentiment Index Q3 2020 Survey, Future Sentiments scores (for next six months) for the sector are in the optimistic zone at 52 points, up from 41 in the previous quarter. The Future Sentiment Score moved into the optimistic zone for the first time in 2020.

The 'Current Sentiments Score' (for past six months) also recorded substantial improvement to 40 points from the previous quarter low of 22 points. However, it is still in the pessimistic zone. A score of above 50 signifies 'Optimism' in sentiments, a score of 50 means the sentiment is 'Same' or 'Neutral', while a score below 50 shows 'Pessimism'.

"This revival in sentiments is attributed to the remarkable upturn seen in the real estate business, especially in the residential segment, in the third quarter of 2020 as a result of the unlocking process," the report said.

Shishir Baijal, Chairman and Managing Director of Knight Frank India, believes a significant drop in home loan interest rates and festive offers has boosted activities in the sector, resulting into the positive outlook.

"An increase in real estate activities has been a great morale booster for the sector. Quarter 3, 2020 (July-September) saw residential sales volumes increase to 55 per cent of pre-COVID levels, showing signs for revival. Low home loan rates and discounts/ attractive offers for residential homes, have pushed sales velocity in the third quarter. Even while the volumes are yet to catch up to the pre-Covid levels, the spurt has been instrumental in perking up sentiments. Similar positivity is visible for the office sector as well, where we have seen a revival of leasing activities," he says.

Zonal score shows the Future Sentiment Index for South and North zones have seen maximum improvement in Q3 2020. South zone score jumped to 65 in Q3 2020 from 42 in Q2 2020 whereas the North region score jumped to 55 in Q3 2020 from 38 in Q2 2020. At the same time, the East zone score has improved to 50 in Q3 2020 from 40 in Q2 2020. For West zone, the score remains in the pessimistic zone at 47 in Q3 2020, though up from 38 in Q2 2020.

Ram Raheja, Director, S Raheja Realty, says his firm has been receiving increased enquiries about the housing market as most investors are looking at real estate as an attractive investment option at a time when interest rates on other investment avenues are quite low.

"COVID-19 has brought about a drastic shift in the minds of both homebuyers and investors. There is a sense of realisation about real estate being one of the safest, secured and crisis-proof investment class amongst all the other asset classes. Demand and inquiries have been high and we have made considerable sales on our project launched in the last quarter," says Raheja.

According to him buyers and investors both are turning towards real estate in the current times. "We anticipate the sentiment to continue to improve further as the festive season approaches, especially in the luxury housing segment. This is backed by various facts including the pent-up demand due to the recent stringent lockdown, evolution of real estate as the preferred investment class and the need for a bigger and better space given the massive change in work dynamics."

Even fence-sitters are expected to jump the gun as the temporary drop in stamp duty of as much as 4 per cent since the last financial year is working as a major catalyst to encourage home-buyers this festive season. "The stamp duty is set to rise post December 31. Given the higher ticket size of the luxury segment, fence-sitters are likely to take the plunge," he says.

Commercial space

The office sector also resumed operations, at varying occupancies across markets as occupiers took steps to ensure continuity in business operations to their highest potential. On the supply front, 64 per cent of the Q3 2020 survey respondents - up from 55 per cent in Q2 2020 - opined that new completions and project deliveries will either increase or remain at the current levels, over the next six months. With respect to office leasing activity, 47 per cent of the survey respondents expect it to increase in the next six months, a significant increase over the 27 per cent respondents who expected an increase in Q2 2020.

"In the last few years, India's office market has been performing well despite the overall slowdown in the real estate. It has been driven by strong demand for prime office space on rent by corporates of the country and has attracted investors given it generates rental yields of 7-8 per cent as compared to 2-3 per cent in housing segment," says Krish Raveshia, CEO, Azlo Realty.

"With regulatory liberalisation in 2020, the Indian real estate market has opened up making 'Invest-In-India' story more compelling. Growth in Q3 was more than Q2, and growth in Q4 is likely to be more than Q3 with unlocking happening and COVID cases seeing a decrease. Locations like Ghatkopar, Goregaon (E), Andheri are likely to turn to be hot hubs for commercial as businesses move towards satellite offices outside central business districts."

The Hans India | Oct 24, 2020

Covid-19: Real estate sector outlook turns optimistic

After six months of crisis due to coronavirus pandemic, the domestic real estate sector has reason to cheer. The outlook for the next six months has turned optimistic with signs of revival in demand, observes a survey by Knight Frank-FICCI-NAREDCO, as the 'Future Sentiment Score' rose to the optimistic zone at 52 points, up from 41 in the previous quarter.

As per the survey parameters, a score of above 50 signifies ''Optimism' in sentiments, a score of 50 means the sentiment is 'Same' or 'Neutral,' while a score below 50 shows 'Pessimism.'

Shishir Baijal, chairman and managing director of Knight Frank India, said: "An increase in real estate activities has been a great morale booster for the sector. Quarter 3, 2020 (July – September), saw residential sales volumes increase to 55 percent of pre-Covid levels, showing signs for revival. Low home loan rates and discounts/ attractive offers for residential homes, have pushed sales velocity in the third quarter. Even while the volumes are yet to catch up to the pre-Covid levels, the spurt has been instrumental in perking up sentiments. Similar positivity is visible for the office sector as well, where we have seen a revival of leasing activities."

Rajani Sinha, chief economist and national director (research), Knight Frank, adds: "With the economy unlocking, macro-economic parameters have started improving. Real estate sector has also started bouncing back in line with overall pick-up in the economy. Supply as well as demand parameters have improved for the real estate sector and that is getting reflected in improvement in the stakeholders' sentiments. Pick-up in demand and supportive measures from RBI and the government have aided in revival of sentiments for the sector." The 26th edition of survey on 'Real Estate Sentiment Index Q3 2020 Survey' for July- September period included developers, banks, financial institutions and private equity players operating in the sector. The 'Current Sentiments Score' improved to 40 points during the July-September period from a record low of 22 points in the previous quarter but remained in the pessimistic zone.

"The return of the end -users in the market, especially in the residential segment is a matter of cheer for the entire sector, as it indicates economic confidence and long-term commitments. The festive season in Q4 2020 is likely to further support the revival in real estate sector. We are hoping that the government and allied agencies will encourage this growth with more supportive decisions," remarked Shishir. Knight Frank attributed the revival in sentiments to the "remarkable upturn seen in the real estate business, especially in the residential segment, in the third quarter of 2020 as a result of the unlocking process. About 57 per cent of the survey respondents opined that the economy is going to grow and improve in the next six months. The funding outlook also improved compared to the previous quarter. 38 per cent of respondents opined that the scenario would be better in the coming six months, while 31 per cent felt that the current levels of credit availability would continue for the next six months.

The New Indian Express | Oct 23, 2020

Sentiment in real estate turns positive

Owning to upturn seen post lockdown, especially in the residential segment, future sentiment for the next six month in the real estate sector has turned positive for the first time in 2020. According to Knight Frank - FICCI - NAREDCO Real Estate Sentiment Index, future sentiment score has climbed to 52 in Q3 2020, up from 41 in Q2 2020.

However, the sentiment remained pessimistic during July-September quarter due to the COVID-19 pandemic. It recorded a significant improvement from the previous quarter low of 22 points to 40 points in Q3 2020.

Shishir Baijal, Chairman and Managing Director of Knight Frank India said, “The return of the end -users in the market, especially in the residential segment is a matter of cheer for the entire sector, as it indicates economic confidence and long-term commitments.

The festive season in Q4 is likely to support the revival in real estate sector. We are hoping that the government and allied agencies will encourage this growth with more supportive decisions.” A score of above 50 signifies ‘Optimism’ in sentiments, a score of 50 means the sentiment is ‘Neutral’, while a score below 50 shows ‘Pessimism’.

Financial Express | Oct 23, 2020

After historic lows, real estate sentiment inches up in July-Sept

After two consecutive quarters of hitting record lows, the Knight Frank-FICCI-Naredco real estate sentiment index finally inched up during the July-September 2020 quarter, as the industry is gradually reviving with consumers, especially in the residential segment, firming up purchase plans.

Taking cue from the recent uptick in real estate activities, respondents of the 26th edition of the sentiment index survey demonstrated significant improvement in ‘future sentiments scores’ (for next six months) for the sector, Knight Frank India said.

The future sentiments score for Q3 2020 is in the optimistic zone at 52 points, up from 41 in the previous quarter. “Current sentiments score (for past six months) recorded a significant improvement from previous quarter low of 22 points to 40 points in Q3 2020. This revival in sentiments is attributed to the remarkable upturn seen in real estate business, especially in the residential segment, in third quarter of 2020 as a result of the unlocking process,” it added.

A score of more than 50 signifies ‘optimism’, while 50 means the sentiment is ‘same’ or ‘neutral’, and a score below 50 signifies ‘pessimism’.

The ‘current sentiments score’ in Q3 2020 jumped to 40 from a record low of 22 in Q2 2020, when the impact of the pandemic and lockdowns on businesses had become more apparent.

With partial restoration of business activity and improvement in macroeconomic indicators in Q3 2020, stakeholder sentiments for the real estate sector have revived substantially, the report said.

Knight Frank India chairman & MD Shishir Baijal said July–September 2020 saw residential sales volumes increase to 55% of pre-Covid-19 levels, showing signs of revival. Low home loan rates and discounts and attractive offers for residential homes have pushed sales velocity in the third quarter, he said.

Even while volumes are yet to catch up to pre-pandemic levels, the increase has been instrumental in perking up sentiments. Similar positivity is visible in the office sector as well, where a revival of leasing activities is being seen, he added.

Baijal said the return of end users to the market, especially in the residential segment, is a matter of cheer for the industry as it indicates economic confidence and long-term commitment. The festive season in Q4 2020 is likely to further support the revival is real estate sector.

SME Times | Oct 22, 2020

Real estate sentiments improve in July-Sept

The pandemic-hit sentiments among the real estate stakeholders improved in the July-September quarter, according to a report.

The 26th Knight Frank-FICCI-NAREDCO Real Estate Sentiment Index Q3 2020 Survey has demonstrated significant improvement in future sentiments scores, for the next six months.

"The 'Future Sentiment Score' for Q3 2020 is in the optimistic zone at 52 points, up from 41 in the previous quarter," said a Knight Frank India statement.

Further, the 'Current Sentiments Score' -- for the past six months -- also recorded a significant improvement from the previous quarter low of 22 points to 40 points in Q3 2020.

It noted that the revival in sentiments can be attributed to the upturn seen in the real estate business, especially in the residential segment, in the third quarter of 2020 as a result of the unlocking process.

A score of above 50 signifies 'Optimism' in sentiments, a score of 50 means the sentiment is 'Same' or 'Neutral', while a score below 50 shows 'Pessimism'.

Shishir Baijal, Chairman and Managing Director of Knight Frank India said, "An increase in real estate activities has been a great morale booster for the sector. Quarter 3, 2020 (July-September) saw residential sales volumes increase to 55 per cent of pre-Covid levels, showing signs for revival. Low home loan rates and discounts/ attractive offers for residential homes, have pushed sales velocity in the third quarter."

"Even while the volumes are yet to catch up to the pre-Covid levels, the spurt has been instrumental in perking up sentiments. Similar positivity is visible for the office sector as well, where we have seen a revival of leasing activities," he said.

Baijal added that the return of end -users in the market, especially in the residential segment is a matter of cheer for the entire sector, as it indicates economic confidence and long-term commitments. The festive season in Q4 2020 is likely to further support the revival of the real estate sector.

"We are hoping that the government and allied agencies will encourage this growth with more supportive decisions," he said.

Niranjan Hiranandani, National President, NAREDCO was of the view that the housing demand is expected to rebound strongly due to the pent-up demand on the parameters of safe and secured investment. The buyers are reaping the accrued benefits of lower stamp duty and lower risk weightage on home loans now linked to the loan-to-value ratio by the RBI.

"The consumption cycle has once again moved back into an optimistic zone salvaging the economic recovery. This will lead to economic recovery followed by real estate revival. This revival will improve employment and resuscitate GDP growth by 2021," he said.

Business World | Oct 22, 2020

Realty sentiment pessimistic in Jul-Sep; outlook positive: Survey

The sentiment in the real estate industry remained pessimistic during July-September due to the COVID-19 pandemic, but the outlook for the next six months has turned optimistic with signs of revival in demand, according to a survey. Knight Frank-FICCI-NAREDCO on Thursday released its ''Real Estate Sentiment Index Q3 2020 Survey'' of developers, banks, financial institutions and private equity players operating in the sector.

The ''Current Sentiments Score'' improved to 40 points during the July-September period from a record low of 22 points in the previous quarter but remained in the pessimistic zone. However, the ''Future Sentiment Score'' is in the optimistic zone at 52 points, up from 41 in the previous quarter.

A score of above 50 signifies ''Optimism'' in sentiments, a score of 50 means the sentiment is ''Same'' or ''Neutral'', while a score below 50 shows ''Pessimism''.

Knight Frank attributed the revival in sentiments to the "remarkable upturn seen in the real estate business, especially in the residential segment, in the third quarter of 2020 as a result of the unlocking process".

About 57 percent of the survey respondents opined that the economy is going to grow and improve in the next six months.

The funding outlook also improved compared to the previous quarter. A total of 38 percent of the respondents opined that the scenario would be better in the coming six months, while 31 percent felt that the current levels of credit availability would continue for the next six months.

Financial Express | Oct 22, 2020

Plots and Villas: The new emerging trend in real estate buying

The Covid-19 induced pandemic and the subsequent lockdown considerably altered our lifestyle. While the need for owning a safe haven surfaced more than ever, the requisites accompanying the desirability showed a substantial shift. As we progressively adapt the ‘new normal’, the changing preferences of present day home seekers have significantly affected their purchase and investment decisions.

With an emerging need for a low density living accompanied by the necessary social distancing measures, independent homes are witnessing a rising demand.

A budding choice amongst recent home buyers, independent homes or villas provide the required discretion to customize homes as per one’s preferences along with larger multi-purpose usable spaces. Adding on to these, buyers also prioritize safety and security as an imperative element, alongside an easy access to essential services. Fulfilling such essentials, villas within gated communities have garnered a lot of attention from current home buyers.

Further understanding these evolving factors, Lodha Developers conducted an online survey with about 3000 participants. Clearly demarcating the recent variations in consumer sentiments, the survey revealed that most of the participants feel the need to have their own garden or backyard lawn. The survey participants also considered privacy as an important aspect. In order to encompass the choices pertaining to open spaces as well as exclusivity, completely-owned properties are emerging as the most sought-after category; the demand further backed by 86.8% respondents preferring to live in an independent home or a villa.

The work from home trend has brought in radically drifting demands. Home buyers are now willing to move a little away from the city center to own properties that fit their needs. A property in the peripheries with excellent connectivity ensures a cleaner, healthier lifestyle as well as the much-needed space to offer villas with private gardens. To cite a recent example, markets like Hyderabad and Bengaluru have witnessed an extensive change in these trends post the pandemic outbreak. While Hyderabad sold 100 premium units ranging between Rs 5 crore and Rs 12 cr, including properties on the city outskirts between April and June 2020, Bengaluru real estate market has been receiving increased demand for bigger homes and a renewed interest for villas in gated communities which are being considered as safer places to reside in at the moment.

A recent FICCI-ANAROCK report also states that the demand for plotted developments is on a rise, since self-owned homes (villas or row houses) provide better social distancing. Another ANAROCK report mentions top-notch developers venturing into plotted developments – this further opens up avenues for prospective homebuyers looking for Grade A developers. From an investment standpoint as well, plotted developments offer multiple advantages with potentially good returns on land investment, relative affordability as compared to built-up real estate and especially the proposed infrastructure projects in city peripheries creating a strong rationale for investing in land at present. 79% of the survey participants also voted for landed properties and independent homes as the best real estate investment option with a majority of them inclining towards having an independent home on their own land.

Fitting in a host of consumer demands and having numerous benefits, villa living is definitely the new way to go. A large independent home assuring utmost privacy and security, along with availability of open spaces and essential amenities in close proximity is a dream home that one aspires for. Keeping in line with this upcoming trend and potential in the segment, Lodha Group is seeing growing interest in its recently launched luxury gated community of villas – Codename One & Only – situated off Mumbai-Nashik Highway in Thane.

Financial Express | Oct 06, 2020

Success mantras for realty developers to thrive in times of Covid-19

The real estate sector was on a growth trajectory since the last few years and was likely to emerge stronger than before. However, the coronavirus lockdown put brakes on its growth momentum. Industry estimates of the Indian real estate market, prior to the COVID-19 outbreak, was projected to be $650 billion by 2025 and $1,000 billion by 2030. This, however, seems tough amidst the current circumstances, according to a recent study by FICCI and ANAROCK.

“The developers are cognizant of this changing market condition and have effectively controlled launches to not create an oversupply situation. This adaptability and agility to respond as per the market conditions will go a long way for the sector’s growth and stronger emergence in the years to come,” says Getamber Anand, Co-Chair, FICCI Real Estate Committee, and Chairman & Managing Director, ATS Infrastructure Ltd.

Moreover, “COVID-19 has surely altered homebuyers’ preferences and their housing requirements due to which we are likely to witness trends such as demand for larger and functional homes, townships, plotted developments, weekend homes, and farmhouses. Also, one has to remember that the market is now driven by end-users only and so product offerings must be appropriately planned. When nothing is sure, everything is possible and so the Indian real estate developers have to make the most of these unprecedented times and embrace digital solutions and technology to chart the way forward,” suggests Anuj Puri, Chairman, ANAROCK Group.

Keeping all these things in view, here are some success mantras for real estate developers to thrive and flourish in the current market situation:

EMBRACE DIGITAL

Digital is the new normal in the world that has undergone a sea change due to the pandemic. Real estate developers have to be prepared for this sooner than later. Homebuyers are finding it convenient to do virtual site visits and discussions and come in close contact with the real estate developers only during the final stages.

A quick look at searches on the real estate portals indicates that while the monthly visits (traffic) dropped immediately post lockdown imposed in March 2020, the revival has been phenomenal. Between April 2020 and August 2020, various real estate portals have witnessed an uptick in traffic in the range of 23% to 104%, depending on the size and scale of listings. Digital is surely the way forward.

VIRTUAL IS THE NEW ACTUAL

As per estimates, out of 10 virtual site visits done for prospecting, homebuyers are now physically visiting only the top 3 shortlisted projects. So make yourself future-ready to have a top-class cutting-edge technology-driven virtual site visit so that your projects are shortlisted in one go.

FOCUS ON BUSINESS CONTINUITY PLAN (BCP)

These are tough times and nobody has a definite answer on when things will be back to normal. Hence, having thought through BCP is the key to manage project execution and adhere to the timelines. Real estate developers who manage to deliver in these times as well will have high credibility with homebuyers. Also, despite the situation, it is important to keep the construction ticking and so the developers should consider options of constructing away from the project site, remote progress monitoring, etc. so that future intermittent lockdowns do not hamper the project progress.

KNOW YOUR CUSTOMERS (KYC)

In the present times, home-buying is dominated by young people aged between 30 and 35 years. These homebuyers are well-travelled and aware of product offerings across the world. They are also highly tech-savvy and so this segment must be appropriately tapped through digital means and also catered by offering houses that match their tastes and requirements.

FOCUS ON THE SALARIED CLASS LOOKING FOR END-USE

Currently, salaried class individuals with fixed income and having a clear vision of their continued employability are mostly taking decisions of purchasing a home, primarily for the end-use. Nearly 80% of the demand is emanating from this segment and developers should not miss tapping them at any cost.

DON’T MISS THE NRIs

Depreciating rupee and homecoming have made property purchases extremely lucrative for the NRIs. Moreover, digital has always been the preferred and utilized mode of purchase for NRIs and it augurs well in the current times.

PRIORITIZE SELLING THAT CAN BE SEEN

Ready-to-move-in is the flavour of the season. Today, home buyers are looking to buy apartments that they can touch and feel, look at the views, and immediately move in. Not to forget, there’s no execution risk in the ready-to-move-in apartments and it attracts zero GST as well.

DO YOUR HOMEWORK WELL

Today’s homebuyers are informed and well-read. With so much literature available on the current market developments, the developers need to invest time and effort in background work and developing an appropriate product that suits the homebuyers’ requirements. So it is prudent to invest in research and advisory before commencing any new project.

FOCUS ON AFFORDABLE-TO-MID-SEGMENT

Affordable-to-mid-segment housing will continue to remain in demand as homebuyers having an appetite for new property purchases will look to rationalize their quantum of investments. Nearly 70% – 75% supply has been in this segment across the top 7 cities of India and that is where the demand lies as well.

News Chant | Oct 06, 2020

Success mantras for realty developers to thrive in times of Covid-19

Between April 2020 and August 2020, numerous actual property portals have witnessed an uptick in site visitors in the vary of 23% to 104%, relying on the scale and scale of listings. Digital is unquestionably the way in which ahead.

The actual property sector was on a development trajectory since the previous few years and was possible to emerge stronger than earlier than. However, the coronavirus lockdown put brakes on its development momentum. Industry estimates of the Indian actual property market, prior to the COVID-19 outbreak, was projected to be $650 billion by 2025 and $1,000 billion by 2030. This, nonetheless, appears powerful amidst the present circumstances, in accordance to a current examine by FICCI and ANAROCK.

Keeping all this stuff in view, listed here are some success mantras for actual property developers to thrive and flourish in the present market scenario:

EMBRACE DIGITAL

Digital is the brand new regular in the world that has undergone a sea change due to the pandemic. Real property developers have to be ready for this prior to later. Homebuyers are discovering it handy to do digital web site visits and discussions and are available in shut contact with the true property developers solely in the course of the last levels.

A fast take a look at searches on the true property portals signifies that whereas the month-to-month visits (site visitors) dropped instantly publish lockdown imposed in March 2020, the revival has been phenomenal. Between April 2020 and August 2020, numerous actual property portals have witnessed an uptick in site visitors in the vary of 23% to 104%, relying on the scale and scale of listings. Digital is unquestionably the way in which ahead.

VIRTUAL IS THE NEW ACTUAL

As per estimates, out of 10 digital web site visits achieved for prospecting, homebuyers at the moment are bodily visiting solely the highest 3 shortlisted initiatives. So make your self future-ready to have a top-class cutting-edge technology-driven digital web site go to in order that your initiatives are shortlisted in one go.

FOCUS ON BUSINESS CONTINUITY PLAN (BCP)

These are powerful times and no person has a particular reply on when issues might be again to regular. Hence, having thought by means of BCP is the important thing to handle mission execution and cling to the timelines. Real property developers who handle to ship in these times as nicely can have excessive credibility with homebuyers. Also, regardless of the scenario, it is vital to hold the development ticking and so the developers ought to take into account choices of establishing away from the mission web site, distant progress monitoring, and so on. in order that future intermittent lockdowns don’t hamper the mission progress.

KNOW YOUR CUSTOMERS (KYC)

In the current times, home-buying is dominated by younger individuals aged between 30 and 35 years. These homebuyers are well-travelled and conscious of product choices internationally. They are additionally extremely tech-savvy and so this phase have to be appropriately tapped by means of digital means and likewise catered by providing homes that match their tastes and necessities.

FOCUS ON THE SALARIED CLASS LOOKING FOR END-USE

Currently, salaried class people with mounted earnings and having a transparent imaginative and prescient of their continued employability are largely taking choices of buying a house, primarily for the end-use. Nearly 80% of the demand is emanating from this phase and developers shouldn’t miss tapping them at any price.

DON’T MISS THE NRIs

Depreciating rupee and homecoming have made property purchases extraordinarily profitable for the NRIs. Moreover, digital has at all times been the popular and utilized mode of buy for NRIs and it augurs nicely in the present times.

PRIORITIZE SELLING THAT CAN BE SEEN

Ready-to-move-in is the flavour of the season. Today, dwelling consumers are trying to purchase flats that they’ll contact and really feel, take a look at the views, and instantly transfer in. Not to overlook, there’s no execution threat in the ready-to-move-in flats and it attracts zero GST as nicely.

DO YOUR HOMEWORK WELL

Today’s homebuyers are knowledgeable and well-read. With a lot literature obtainable on the present market developments, the developers want to make investments effort and time in background work and growing an acceptable product that fits the homebuyers’ necessities. So it’s prudent to make investments in analysis and advisory earlier than commencing any new mission.

FOCUS ON AFFORDABLE-TO-MID-SEGMENT

Affordable-to-mid-segment housing will proceed to stay in demand as homebuyers having an urge for food for new property purchases will look to rationalize their quantum of investments. Nearly 70% – 75% provide has been in this phase throughout the highest 7 cities of India and that’s the place the demand lies as nicely.

The Hans India | Sep 25, 2020

Private equity investment in realty plunges 85%

Private equity investment in Indian real estate plunged 85 per cent during January-August period of this year at $866 million (around Rs 6,500 crore) as investors remained cautious due to the Covid-19 pandemic, according to Colliers International and FICCI report.

The private equity (PE) inflow stood at $5,795 million in the corresponding period of the previous year. Data centres segment attracted maximum investment so far this year at 46 per cent of the total inflows.

Office segment accounted for 24 per cent of the total PE investment at $207 million (around Rs 1,500 crore) till August of this calendar year. Industrial and warehousing share stood at 12 per cent, hospitality 9 per cent, housing 8 per cent and co-living one per cent. "Investors, both foreign and domestic, are adopting a cautious approach to Indian real estate in the backdrop of the ongoing pandemic," said the report ''Future India: Captivating Strategic and Private Equity Investments''.

"According to Colliers International, through August 2020, overall private equity inflows into Indian real estate stood at Rs 6,500 crore which is just 15 per cent of the corresponding period in 2019," it added.

The report said that newer asset classes such as data centres and rental housing gained prominence among investors.

"During 2020 through August, the leading segments have been data centres, driven by demand for cloud infrastructure, as well as offices as, they tend to offer steady rental income. Robust domestic consumption also maintained investors' confidence in industrial and logistics assets," the report said.

During January-August 2019, office segment got 47 per cent of the total PE inflows that stood at $5,795 million. Industrial and warehousing had received 9 per cent funds, hospitality 12 per cent, housing 8 per cent, retail 18 per cent and mixed use development 6 per cent. Colliers International advised investors to focus on data centres in order to leverage growing demand for cloud computing. It recommended them to continue to focus on the office segment to capitalise on steady rental income as well as enhanced liquidity offered by the Real Estate Investment Trusts (REITs.)

"In the backdrop of robust demand from e-commerce and other consumer-led occupiers, we recommend investors stay focused on the industrial and logistics segment in order to reap the benefits," the consultant said. It suggested investors to consider equity investments in completed units of affordable and mid-segment residential projects. Investors should consider partnering with top-tier developers and invest in Greenfield residential projects to capitalise on inherent end-user demand. "We recommend investors consider opportunistic assets in hospitality and retail real estate segments that offer attractive valuations. We believe investors can benefit from revival in demand going forward," Colliers said.

99acres | Sep 24, 2020

Private equity inflow in real estate down 85% in Jan-Aug at nearly ₹6,500 cr: ReportPrivate equity investment in real estate dip by 85 percent in Jan-Aug 2020: Report

Led by the outburst of novel Coronavirus and the subsequent lockdown, investors remained cautious of investing in Indian real estate. Resultantly, the private equity inflow in the first eight months of 2020 plunged by 85 percent, reports Colliers.

According to a recent report by Colliers International and FICCI, private equity investment in Indian real estate declined by 85 percent and stood at USD 866 million during Jan-Aug 2020. The reason for the same can be attributed to the outburst of the global pandemic due to which the investors remained wary of investing in the market. To apprise, the inflow of private equity stood at USD 5,795 million in the corresponding period last year.

In terms of share, the data centre segment attracted the maximum investment, accounting to 46 percent of the total inflows. While the office sector attracted 24 percent of the total investments during the reported period, the share of industrial and warehousing stood at 12 percent. Hospitality, housing, and co-working garnered nine percent, eight percent, and one percent share of the inflows, respectively.

As stated by the report, the overall private equity inflow in Indian real estate for August 2020 stood at Rs 65 billion, which is merely 15 percent of the figures of the corresponding period in 2019. In addition to data centres, rental housing, too, remained popular among investors.

India Info Line | Sep 24, 2020

Housing sales-to-supply ratio rises to 1.36 amid limited launches in Top 7 cities: FICCI-ANAROCK Report

Amidst controlled new housing launches, the residential sales-to-supply ratio has improved to 1.36 currently, as against 0.63 in 2014, reveals the FICCI-ANAROCK report Indian Housing Sector: Disrupted, Transformed & Recovering released at the 14th Annual FICCI Real Estate Summit 2020. The improvement in this critical ratio is indicative of sustained future growth for the housing sector.

Anuj Puri, Chairman - ANAROCK Property Consultants says, "The report also highlights that in the post-COVID-19 era, affordability of mid-income homes, calculated on the ratio of home loan payment to income, will touch its lowest-best at 27% in FY21. It was 53% in FY12 and has been falling y-o-y ever since."

Several factors will influence residential real estate revival in post-COVID-19 times. For instance, property prices have remained range-bound with weighted average prices across the top 7 cities rising only nominally at a CAGR of 3% between 2012 to 2019. This is significantly lower than the prevailing inflation rates and income growth.

“In the past, the value of real estate under construction increased from USD 94 Bn in 2009 to USD 243 Bn as of H1 2020 - a 2.6X increase," says Puri. "During the same period, the share of residential real estate grew from 49% to 88%, indicating the massive expansion of this segment.”

As policy reforms and financial stress continue to eliminate weaker players, listed developers’ sales are staying on course in the current scenario. While overall sales have declined, listed developers continue to thrive on the back of homebuyers' increasing preference for organized players. ANAROCK research’s consumer sentiment survey during lockdown also highlighted that 62% of prospective buyers prefer to buy a home from branded developers, even if it comes at a higher cost.

Corporate developers’ earlier focus on high-end residential assets has now broadened to cover a wider demand spectrum. Along with luxury projects, they are expanding their footprints in affordable and mid-segment projects as well. The success mantras of the future now are:

Embrace the digital/ virtual route
Focus on Business Continuity Plan (BCP)
Zero in on salaried end-users and NRIs, expand affordable and mid-segment portfolios

The Economic Times | Sep 23, 2020

Private equity inflow in real estate down 85% in Jan-Aug at USD 866 mn: Report

Private equity investment in Indian real estate plunged 85 per cent during January-August period of this year at USD 866 million (around Rs 6,500 crore) as investors remained cautious due to the COVID-19 pandemic, according to Colliers International and FICCI report.

The private equity (PE) inflow stood at USD 5,795 million in the corresponding period of the previous year.

Data centres segment attracted maximum investment so far this year at 46 per cent of the total inflows.

Office segment accounted for 24 per cent of the total PE investment at USD 207 million (around Rs 1,500 crore) till August of this calendar year. Industrial and warehousing share stood at 12 per cent, hospitality 9 per cent, housing 8 per cent and co-living one per cent.

"According to Colliers International, through August 2020, overall private equity inflows into Indian real estate stood at Rs 65 billion (USD 866 million), which is just 15 per cent of the corresponding period in 2019," it added.

The report said that newer asset classes such as data centres and rental housing gained prominence among investors.

"We recommend investors consider opportunistic assets in hospitality and retail real estate segments that offer attractive valuations. We believe investors can benefit from revival in demand going forward," Colliers said.

The Times of India | Sep 23, 2020

Private equity inflow in real estate down 85% in January-August at $866 million: Report

Business Standard | Sep 23, 2020

Private equity inflow in real estate down 85% to $866 mn in Jan-Aug: Report

The private equity (PE) inflow stood at USD 5,795 million in the corresponding period of the previous year.

Data centres segment attracted maximum investment so far this year at 46 per cent of the total inflows.

The report said that newer asset classes such as data centres and rental housing gained prominence among investors.

Financial Express | Sep 23, 2020

Private equity inflow in real estate down 85 pc in Jan-Aug at USD 866 mn: Report

“Investors, both foreign and domestic, are adopting a cautious approach to Indian real estate in the backdrop of the ongoing pandemic,” said the report ‘Future India: Captivating Strategic and Private Equity Investments’. “According to Colliers International, through August 2020, overall private equity inflows into Indian real estate stood at Rs 65 billion (USD 866 million), which is just 15 per cent of the corresponding period in 2019,” it added.

The report said that newer asset classes such as data centres and rental housing gained prominence among investors.

“During 2020 through August, the leading segments have been data centres, driven by demand for cloud infrastructure, as well as offices as, they tend to offer steady rental income. Robust domestic consumption also maintained investors’ confidence in industrial and logistics assets,” the report said.

“In the backdrop of robust demand from e-commerce and other consumer-led occupiers, we recommend investors stay focused on the industrial and logistics segment in order to reap the benefits,” the consultant said.

“We recommend investors consider opportunistic assets in hospitality and retail real estate segments that offer attractive valuations. We believe investors can benefit from revival in demand going forward,” Colliers said.

Live Mint | Sep 23, 2020

Private equity inflow in real estate down 85% in Jan-Aug at nearly ₹6,500 cr: Report

Private equity investment in Indian real estate plunged 85% during January-August period of this year at $866 million (around ₹6,500 crore) as investors remained cautious due to the COVID-19 pandemic, according to Colliers International and FICCI report.

The private equity (PE) inflow stood at $5,795 million in the corresponding period of the previous year.

Data centres segment attracted maximum investment so far this year at 46% of the total inflows.

Office segment accounted for 24% of the total PE investment at $207 million (around ₹1,500 crore) till August of this calendar year. Industrial and warehousing share stood at 12%, hospitality 9%, housing 8% and co-living 1%.

"According to Colliers International, through August 2020, overall private equity inflows into Indian real estate stood at ₹6500 crore ($866 million), which is just 15% of the corresponding period in 2019," it added.

The report said that newer asset classes such as data centres and rental housing gained prominence among investors.

"During 2020 through August, the leading segments have been data centres, driven by demand for cloud infrastructure, as well as offices as, they tend to offer steady rental income. Robust domestic consumption also maintained investors’ confidence in industrial and logistics assets," the report said.

During January-August 2019, office segment got 47% of the total PE inflows that stood at USD 5,795 million. Industrial and warehousing had received 9% funds, hospitality 12%, housing 8%, retail 18% and mixed use development 6%.

CNBC TV18 | Sep 23, 2020

Private equity inflow in real estate down 85% in Jan-Aug at $866 mn: Report

Private equity investment in Indian real estate plunged 85 percent during January-August period of this year at USD 866 million (around Rs 6,500 crore) as investors remained cautious due to the COVID-19 pandemic, according to Colliers International and FICCI report. The private equity (PE) inflow stood at USD 5,795 million in the corresponding period of the previous year.

Data centres segment attracted maximum investment so far this year at 46 percent of the total inflows. Office segment accounted for 24 percent of the total PE investment at USD 207 million (around Rs 1,500 crore) till August of this calendar year. Industrial and warehousing share stood at 12 percent, hospitality 9 percent, housing 8 percent and co-living one percent. ”Investors, both foreign and domestic, are adopting a cautious approach to Indian real estate in the backdrop of the ongoing pandemic,” said the report ’Future India: Captivating Strategic and Private Equity Investments’.

”According to Colliers International, through August 2020, overall private equity inflows into Indian real estate stood at Rs 65 billion (USD 866 million), which is just 15 percent of the corresponding period in 2019,” it added. The report said that newer asset classes such as data centres and rental housing gained prominence among investors. ”During 2020 through August, the leading segments have been data centres, driven by demand for cloud infrastructure, as well as offices as, they tend to offer steady rental income. Robust domestic consumption also maintained investors’ confidence in industrial and logistics assets,” the report said.

Colliers International advised investors to focus on data centres in order to leverage growing demand for cloud computing. It recommended them to continue to focus on the office segment to capitalise on steady rental income as well as enhanced liquidity offered by the Real Estate Investment Trusts (REITs.) ”In the backdrop of robust demand from e-commerce and other consumer-led occupiers, we recommend investors stay focused on the industrial and logistics segment in order to reap the benefits,” the consultant said.

It suggested investors to consider equity investments in completed units of affordable and mid-segment residential projects. Investors should consider partnering with top-tier developers and invest in greenfield residential projects to capitalise on inherent end-user demand. ”We recommend investors consider opportunistic assets in hospitality and retail real estate segments that offer attractive valuations. We believe investors can benefit from revival in demand going forward,” Colliers said.

ET Now | Sep 23, 2020

Private equity inflows in real estate down 85% in Jan-Aug at $866 mn: Report

"Investors, both foreign and domestic, are adopting a cautious approach to Indian real estate in the backdrop of the ongoing pandemic," said the report 'Future India: Captivating Strategic and Private Equity Investments'. "According to Colliers International, through August 2020, overall private equity inflows into Indian real estate stood at Rs 65 billion (USD 866 million), which is just 15 per cent of the corresponding period in 2019," it added.

The report said that newer asset classes such as data centres and rental housing gained prominence among investors. "During 2020 through August, the leading segments have been data centres, driven by demand for cloud infrastructure, as well as offices as, they tend to offer steady rental income. Robust domestic consumption also maintained investors' confidence in industrial and logistics assets," the report said.

During January-August 2019, office segment got 47 per cent of the total PE inflows that stood at USD 5,795 million. Industrial and warehousing had received 9 per cent funds, hospitality 12 per cent, housing 8 per cent, retail 18 per cent and mixed use development 6 per cent. Colliers International advised investors to focus on data centres in order to leverage growing demand for cloud computing. It recommended them to continue to focus on the office segment to capitalise on steady rental income as well as enhanced liquidity offered by the Real Estate Investment Trusts (REITs.)

Business Today | Sep 23, 2020

Private equity investment in real estate plunged 85% to $866 million in January-August 2020

The private equity (PE) inflow stood at USD 5,795 million in the corresponding period of the previous year. Data centres segment attracted maximum investment so far this year at 46 per cent of the total inflows. Office segment accounted for 24 per cent of the total PE investment at USD 207 million (around Rs 1,500 crore) till August of this calendar year. Industrial and warehousing share stood at 12 per cent, hospitality 9 per cent, housing 8 per cent and co-living one per cent.

Outlook | Sep 23, 2020

Pvt equity inflow in real estate down 85 pc in Jan-Aug at USD 866 mn: Report

The private equity (PE) inflow stood at USD 5,795 million in the corresponding period of the previous year.

Data centres segment attracted maximum investment so far this year at 46 per cent of the total inflows.

"Investors, both foreign and domestic, are adopting a cautious approach to Indian real estate in the backdrop of the ongoing pandemic," said the report ''Future India: Captivating Strategic and Private Equity Investments''.

The report said that newer asset classes such as data centres and rental housing gained prominence among investors.

"During 2020 through August, the leading segments have been data centres, driven by demand for cloud infrastructure, as well as offices as, they tend to offer steady rental income. Robust domestic consumption also maintained investors’ confidence in industrial and logistics assets," the report said.

Deccan Herald | Sep 23, 2020

Private equity inflow in real estate down 85% in Jan-Aug at $866 million

The private equity (PE) inflow stood at $5,795 million in the corresponding period of the previous year.

Data centres segment attracted maximum investment so far this year at 46 per cent of the total inflows.

"According to Colliers International, through August 2020, overall private equity inflows into Indian real estate stood at Rs 65 billion ($866 million), which is just 15 per cent of the corresponding period in 2019," it added.

The report said that newer asset classes such as data centres and rental housing gained prominence among investors.

"During 2020 through August, the leading segments have been data centres, driven by demand for cloud infrastructure, as well as offices as, they tend to offer steady rental income. Robust domestic consumption also maintained investors’ confidence in industrial and logistics assets," the report said.

During January-August 2019, office segment got 47 per cent of the total PE inflows that stood at $5,795 million. Industrial and warehousing had received nine per cent funds, hospitality 12 per cent, housing eight per cent, retail 18 per cent and mixed-use development six per cent.

Deccan News | Sep 23, 2020

The inflow of private equity into real estate fell by 85% in January to $ 866 million

Private equity investment in Indian real estate fell 85 percent to $ 866 million (approximately $ 6,500 million) in January-August this year, as investors remained cautious due to the COVID-19 pandemic, according to Colliers International and FICCI’s report.

The inflow of private equity (PE) stood at $ 5,795 million in the corresponding period of the previous year. The data center segment has attracted a maximum investment at 46 percent of total inflows so far this year.

Until August of this calendar year, office segments accounted for 24 percent of the total investment in PE at $ 207 million (approximately R500 million). Operating and warehouse share stood at 12 percent, hospitality 9 percent, with 8 percent housing and one attendance.

“Investors, both foreign and domestic, are taking a cautious approach to Indian real estate in the wake of the ongoing pandemic,” reads the report ‘Future India: Captivating Strategic and Private Equity Investments’.

“According to Colliers International, the total inflow of private equity to Indian real estate up to August 2020 stood at Rs 65 billion ($ 866 million), which is only 15 percent of the corresponding period in 2019,” he added.

The report said newer asset classes such as data centers and rental housing gained prominence among investors. ‘Between 2020 and August, the leading segments were data centers, driven by demand for cloud infrastructure, as well as offices, as they tended to provide stable rental income. Robust domestic consumption has also maintained investors’ confidence in industrial and logistics assets, ”the report reads.

During January-August 2019, the office segment received 47 percent of the total inflow of PE amounting to $ 5,795 million. Industry and warehouses received 9 percent funds, hospitality 12 percent, housing 8 percent, retail 18 percent and mixed-use development 6 percent.

Colliers International has advised investors to focus on data centers to take advantage of the growing demand for cloud computing. This advised them to continue to focus on the office segment to capitalize in steady rental income as well as increased liquidity offered by the Real Estate Investment Trusts (REITs). “We recommend that investors stay focused on the industrial and logistics segment to reap the benefits,” the consultant said.

The New Indian Express | Sep 23, 2020

Private equity inflow in real estate down 85 per cent in January-August at USD 866 million: Report

Office segment accounted for 24 per cent of the total PE investment at USD 207 million (around Rs 1,500 crore) till August of this calendar year.

Industrial and warehousing share stood at 12 per cent, hospitality 9 per cent, housing 8 per cent and co-living one per cent.

The report said that newer asset classes such as data centres and rental housing gained prominence among investors.

"During 2020 through August, the leading segments have been data centres, driven by demand for cloud infrastructure, as well as offices as, they tend to offer steady rental income.

Robust domestic consumption also maintained investors' confidence in industrial and logistics assets," the report said.

During January-August 2019, office segment got 47 per cent of the total PE inflows that stood at USD 5,795 million.

Industrial and warehousing had received 9 per cent funds, hospitality 12 per cent, housing 8 per cent, retail 18 per cent and mixed use development 6 per cent.

Colliers International advised investors to focus on data centres in order to leverage growing demand for cloud computing.

It recommended them to continue to focus on the office segment to capitalise on steady rental income as well as enhanced liquidity offered by the Real Estate Investment Trusts (REITs.)

It suggested investors to consider equity investments in completed units of affordable and mid-segment residential projects.

Investors should consider partnering with top-tier developers and invest in greenfield residential projects to capitalise on inherent end-user demand.

Telangana Today | Sep 23, 2020

Private equity inflow in real estate down 85% in Jan-Aug at $866 mn

Private equity investment in Indian real estate plunged 85 per cent during January-August period of this year at $866 million (around Rs 6,500 crore) as investors remained cautious due to the COVID-19 pandemic, according to Colliers International and FICCI report.

“According to Colliers International, through August 2020, overall private equity inflows into Indian real estate stood at Rs 65 billion ($866 million), which is just 15 per cent of the corresponding period in 2019,” it added.

The report said that newer asset classes such as data centres and rental housing gained prominence among investors. “During 2020 through August, the leading segments have been data centres, driven by demand for cloud infrastructure, as well as offices as, they tend to offer steady rental income. Robust domestic consumption also maintained investors’ confidence in industrial and logistics assets,” the report said.

Colliers International advised investors to focus on data centres in order to leverage growing demand for cloud computing. It recommended them to continue to focus on the office segment to capitalise on steady rental income as well as enhanced liquidity offered by the Real Estate Investment Trusts (REITs.) “In the backdrop of robust demand from e-commerce and other consumer-led occupiers, we recommend investors stay focused on the industrial and logistics segment in order to reap the benefits,” the consultant said.

New on News | Sep 23, 2020

Private equity inflow in real estate down 85% to $866 mn in Jan-Aug: Report

The private equity (PE) inflow stood at USD 5,795 million in the corresponding period of the previous year.

Data centres segment attracted maximum investment so far this year at 46 per cent of the total inflows.

“According to Colliers International, through August 2020, overall private equity inflows into Indian real estate stood at Rs 65 billion (USD 866 million), which is just 15 per cent of the corresponding period in 2019,” it added.

The report said that newer asset classes such as data centres and rental housing gained prominence among investors.

The Free Press Journal | Sep 23, 2020

Pvt equity inflow in real estate down 85 pc in Jan-Aug at USD 866 mn: Report

The private equity (PE) inflow stood at USD 5,795 million in the corresponding period of the previous year.

Data centres segment attracted maximum investment so far this year at 46 per cent of the total inflows.

The report said that newer asset classes such as data centres and rental housing gained prominence among investors.

Colliers International advised investors to focus on data centres in order to leverage growing demand for cloud computing. It recommended them to continue to focus on the office segment to capitalise on steady rental income as well as enhanced liquidity offered by the Real Estate Investment Trusts (REITs.) "In the backdrop of robust demand from e-commerce and other consumer-led occupiers, we recommend investors stay focused on the industrial and logistics segment in order to reap the benefits," the consultant said.

The Hitavada | Sep 22, 2020

'Value of real estate under construction jumps'

The entry of large corporates and consolidation have led to the expansion of the Indian property market with the value of real estate under construction jumping over two-fold to USD 243 billion in the last one decade, according to a report by FICCI and Anarock. The expansion of the property market was largely driven by the residential segment. Property consultant Anarock and industry body FICCI pointed out that the number of developers has declined 53 per cent across India’s top 14 cities between 2012-2019. “The Indian real estate sector has been undergoing constant metamorphosis since the turn of the century. This transition has been for the better and the accomplishments so far have been remarkable.

The results are quite visible today as the sector has become better organised, compliant, accountable, and transparent compared to what it was during the last decade of the 20th century,” the report said. The sector saw a slew of structural reforms and policy changes which led to the elimination of weaker players, large-scale consolidation, and entry of large corporate houses, it added. “Until 2008, the real estate business was highly unregulated and more of a localised play. It was a sellers market and was driven by the landlords who had become developers overnight to take advantage of the boom in the sector. Until the Global Financial Crisis hit in 2008, funding was readily available, and many developers went overboard in leveraging their assets. As a result, the sector was operating with several inefficiencies,” the report said.

However, Anarock said, several corporate houses made inroads into the real estate sector between 2008 and 2015, even as the sector continued to remain unregulated. “The entry of large players led to an expansion of the overall market and imparted pressure on the Government to intervene and change the face of the sector that was growing in an unstructured manner.

The value of real estate under construction increased from USD 94 billion in 2009 to USD 243 billion as on H1 2020, a 2.6X increase. During the same period, the share of housing (residential) grew from 49 per cent to 88 per cent indicating large-scale expansion witnessed in this segment,” the report said. Anarock Chairman Anuj Puri said the housing segment is set to undergo a momentary phase of trouble due to the coronavirus pandemic but would emerge stronger in the post-COVID world.

The Economic Times | Sep 21, 2020

Value of real estate under construction jumps to $243 billion from $94 billion in 2009: Report

Property consultant Anarock and industry body FICCI pointed out that the number of developers has declined 53 per cent across India's top 14 cities between 2012-2019.

"The Indian real estate sector has been undergoing constant metamorphosis since the turn of the century. This transition has been for the better and the accomplishments so far have been remarkable. The results are quite visible today as the sector has become better organised, compliant, accountable, and transparent compared to what it was during the last decade of the 20th century," the report said.

The sector saw a slew of structural reforms and policy changes which led to the elimination of weaker players, large-scale consolidation, and entry of large corporate houses, it added.

"Until 2008, the real estate business was highly unregulated and more of a localised play. It was a sellers' market and was driven by the landlords who had become developers overnight to take advantage of the boom in the sector.

"Until the Global Financial Crisis hit in 2008, funding was readily available, and many developers went overboard in leveraging their assets. As a result, the sector was operating with several inefficiencies," the report said.

However, Anarock said several corporate houses made inroads into the real estate sector between 2008 and 2015, even as the sector continued to remain unregulated.

"The entry of large players led to an expansion of the overall market and imparted pressure on the government to intervene and change the face of the sector that was growing in an unstructured manner.

Anarock Chairman Anuj Puri said the housing segment is set to undergo a momentary phase of trouble due to the coronavirus pandemic but would emerge stronger in the post-COVID world.

He listed out various factors that would drive the growth of the residential segment.

"The real estate business is better structured and organised today due to a series of structural reforms and policy changes. Housing prices have been range-bound for the past 7-8 years indicating that with a rise in demand it may spiral upwards," Puri said.

That apart, Puri said the government has been supportive and has come up with a slew of measures to support the real estate sector - the second-highest employment generator and a key contributor to the nation's GDP.

Financial Express | Sep 21, 2020

Value of real estate under construction jumps to USD 243 billion from USD 94 billion in 2009: Report

“The Indian real estate sector has been undergoing constant metamorphosis since the turn of the century. This transition has been for the better and the accomplishments so far have been remarkable. The results are quite visible today as the sector has become better organised, compliant, accountable, and transparent compared to what it was during the last decade of the 20th century,” the report said. The sector saw a slew of structural reforms and policy changes which led to the elimination of weaker players, large-scale consolidation, and entry of large corporate houses, it added.

“Until 2008, the real estate business was highly unregulated and more of a localised play. It was a sellers’ market and was driven by the landlords who had become developers overnight to take advantage of the boom in the sector. “Until the Global Financial Crisis hit in 2008, funding was readily available, and many developers went overboard in leveraging their assets. As a result, the sector was operating with several inefficiencies,” the report said. However, Anarock said several corporate houses made inroads into the real estate sector between 2008 and 2015, even as the sector continued to remain unregulated.

“The entry of large players led to an expansion of the overall market and imparted pressure on the government to intervene and change the face of the sector that was growing in an unstructured manner. “The value of real estate under construction increased from USD 94 billion in 2009 to USD 243 billion as on H1 2020, a 2.6X increase. During the same period, the share of housing (residential) grew from 49 per cent to 88 per cent indicating large-scale expansion witnessed in this segment,” the report said. Anarock Chairman Anuj Puri said the housing segment is set to undergo a momentary phase of trouble due to the coronavirus pandemic but would emerge stronger in the post-COVID world.

He listed out various factors that would drive the growth of the residential segment. “The real estate business is better structured and organised today due to a series of structural reforms and policy changes. Housing prices have been range-bound for the past 7-8 years indicating that with a rise in demand it may spiral upwards,” Puri said.

“Home loan interest rates are at their decadal lows of 6.85 per cent. Amid stagnant prices and declining home loan rates, affordability is all-time best. Branded and corporate developers dominate and are being largely preferred by homebuyers,” he added. That apart, Puri said the government has been supportive and has come up with a slew of measures to support the real estate sector – the second-highest employment generator and a key contributor to the nation’s GDP.

The New Indian Express | Sep 21, 2020

Value of real estate under construction jumps to USD 243 bn from USD 94 bn in 2009: Report

The expansion of the property market was largely driven by the residential segment.

Property consultant Anarock and industry body FICCI pointed out that the number of developers has declined 53 per cent across India's top 14 cities between 2012-2019.

"The Indian real estate sector has been undergoing constant metamorphosis since the turn of the century. This transition has been for the better and the accomplishments so far have been remarkable.

"The results are quite visible today as the sector has become better organised, compliant, accountable, and transparent compared to what it was during the last decade of the 20th century," the report said.

The sector saw a slew of structural reforms and policy changes which led to the elimination of weaker players, large-scale consolidation, and entry of large corporate houses, it added.

However, Anarock said several corporate houses made inroads into the real estate sector between 2008 and 2015, even as the sector continued to remain unregulated.

"The value of real estate under construction increased from USD 94 billion in 2009 to USD 243 billion as on H1 2020, a 2.6X increase.

"During the same period, the share of housing (residential) grew from 49 per cent to 88 per cent indicating large-scale expansion witnessed in this segment," the report said.

Anarock Chairman Anuj Puri said the housing segment is set to undergo a momentary phase of trouble due to the coronavirus pandemic but would emerge stronger in the post-COVID world.

He listed out various factors that would drive the growth of the residential segment.

"The real estate business is better structured and organised today due to a series of structural reforms and policy changes.

"Housing prices have been range-bound for the past 7-8 years indicating that with a rise in demand it may spiral upwards," Puri said.

Money Control | Sep 21, 2020

Value of real estate under construction jumps to $243 billion from $94 billion in 2009, reveals FICCI-ANAROCK report

The entry of large corporates and consolidation have led to the expansion of the Indian property market with the value of real estate under construction jumping over two-fold to $243 billion in the last one decade, according to a report by FICCI and Anarock.

The expansion of the property market was largely driven by the residential segment. Property consultant Anarock and industry body FICCI pointed out that the number of developers has declined 53 percent across India’s top 14 cities between 2012-2019.

The sector saw a slew of structural reforms and policy changes which led to the elimination of weaker players, large-scale consolidation, and entry of large corporate houses, it added.

"Until 2008, the real estate business was highly unregulated and more of a localised play. It was a sellers’ market and was driven by the landlords who had become developers overnight to take advantage of the boom in the sector.

However, Anarock said several corporate houses made inroads into the real estate sector between 2008 and 2015, even as the sector continued to remain unregulated.

"The value of real estate under construction increased from $94 billion in 2009 to $243 billion as on H1 2020, a 2.6X increase. During the same period, the share of housing (residential) grew from 49 percent to 88 percent indicating large-scale expansion witnessed in this segment,” the report said.

Anarock Chairman Anuj Puri said the housing segment is set to undergo a momentary phase of trouble due to the coronavirus pandemic but would emerge stronger in the post-COVID world.

He listed out various factors that would drive the growth of the residential segment.

That apart, Puri said the government has been supportive and has come up with a slew of measures to support the real estate sector – the second-highest employment generator and a key contributor to the nation’s GDP.

Money Control | Sep 21, 2020

Value of real estate under construction jumps to $243 billion from $94 billion in 2009, reveals FICCI-ANAROCK report

The sector saw a slew of structural reforms and policy changes which led to the elimination of weaker players, large-scale consolidation, and entry of large corporate houses, it added.

However, Anarock said several corporate houses made inroads into the real estate sector between 2008 and 2015, even as the sector continued to remain unregulated.

Anarock Chairman Anuj Puri said the housing segment is set to undergo a momentary phase of trouble due to the coronavirus pandemic but would emerge stronger in the post-COVID world.

He listed out various factors that would drive the growth of the residential segment.

Devdiscourse | Sep 21, 2020

Value of real estate under construction jumps to USD 243bn from USD 94bn in 2009: Report

Property consultant Anarock and industry body FICCI pointed out that the number of developers has declined 53 per cent across India’s top 14 cities between 2012-2019. "The Indian real estate sector has been undergoing constant metamorphosis since the turn of the century. This transition has been for the better and the accomplishments so far have been remarkable. The results are quite visible today as the sector has become better organised, compliant, accountable, and transparent compared to what it was during the last decade of the 20th century," the report said.

The sector saw a slew of structural reforms and policy changes which led to the elimination of weaker players, large-scale consolidation, and entry of large corporate houses, it added. "Until 2008, the real estate business was highly unregulated and more of a localised play. It was a sellers’ market and was driven by the landlords who had become developers overnight to take advantage of the boom in the sector. "Until the Global Financial Crisis hit in 2008, funding was readily available, and many developers went overboard in leveraging their assets. As a result, the sector was operating with several inefficiencies," the report said.

However, Anarock said several corporate houses made inroads into the real estate sector between 2008 and 2015, even as the sector continued to remain unregulated. "The entry of large players led to an expansion of the overall market and imparted pressure on the government to intervene and change the face of the sector that was growing in an unstructured manner.

"The value of real estate under construction increased from USD 94 billion in 2009 to USD 243 billion as on H1 2020, a 2.6X increase. During the same period, the share of housing (residential) grew from 49 per cent to 88 per cent indicating large-scale expansion witnessed in this segment," the report said. Anarock Chairman Anuj Puri said the housing segment is set to undergo a momentary phase of trouble due to the coronavirus pandemic but would emerge stronger in the post-COVID world.

He listed out various factors that would drive the growth of the residential segment. "The real estate business is better structured and organised today due to a series of structural reforms and policy changes. Housing prices have been range-bound for the past 7-8 years indicating that with a rise in demand it may spiral upwards," Puri said.

"Home loan interest rates are at their decadal lows of 6.85 per cent. Amid stagnant prices and declining home loan rates, affordability is all-time best. Branded and corporate developers dominate and are being largely preferred by homebuyers," he added. That apart, Puri said the government has been supportive and has come up with a slew of measures to support the real estate sector - the second-highest employment generator and a key contributor to the nation's GDP.

DT Next | Sep 21, 2020

Value of real estate under construction jumps to USD 243bn from USD 94bn in 2009: Report

CNBC TV18 | Sep 21, 2020

Value of real estate under construction jumps to $243bn from $94bn in 2009: Report

Property consultant Anarock and industry body FICCI pointed out that the number of developers has declined 53 percent across India’s top 14 cities between 2012-2019. ”The Indian real estate sector has been undergoing constant metamorphosis since the turn of the century. This transition has been for the better and the accomplishments so far have been remarkable. The results are quite visible today as the sector has become better organised, compliant, accountable, and transparent compared to what it was during the last decade of the 20th century,” the report said.

The sector saw a slew of structural reforms and policy changes which led to the elimination of weaker players, large-scale consolidation, and entry of large corporate houses, it added. ”Until 2008, the real estate business was highly unregulated and more of a localised play. It was a sellers’ market and was driven by the landlords who had become developers overnight to take advantage of the boom in the sector. ”Until the Global Financial Crisis hit in 2008, funding was readily available, and many developers went overboard in leveraging their assets. As a result, the sector was operating with several inefficiencies,” the report said.

However, Anarock said several corporate houses made inroads into the real estate sector between 2008 and 2015, even as the sector continued to remain unregulated. ”The entry of large players led to an expansion of the overall market and imparted pressure on the government to intervene and change the face of the sector that was growing in an unstructured manner.

”The value of real estate under construction increased from USD 94 billion in 2009 to USD 243 billion as on H1 2020, a 2.6X increase. During the same period, the share of housing (residential) grew from 49 percent to 88 percent indicating large-scale expansion witnessed in this segment,” the report said. Anarock Chairman Anuj Puri said the housing segment is set to undergo a momentary phase of trouble due to the coronavirus pandemic but would emerge stronger in the post-COVID world.

He listed out various factors that would drive the growth of the residential segment. ”The real estate business is better structured and organised today due to a series of structural reforms and policy changes. Housing prices have been range-bound for the past 7-8 years indicating that with a rise in demand it may spiral upwards,” Puri said.

”Home loan interest rates are at their decadal lows of 6.85 per cent. Amid stagnant prices and declining home loan rates, affordability is all-time best. Branded and corporate developers dominate and are being largely preferred by homebuyers,” he added. That apart, Puri said the government has been supportive and has come up with a slew of measures to support the real estate sector – the second-highest employment generator and a key contributor to the nation’s GDP.

Outlook | Sep 21, 2020

Value of real estate under construction jumps to USD 243bn from USD 94bn in 2009: Report

The expansion of the property market was largely driven by the residential segment.

Property consultant Anarock and industry body FICCI pointed out that the number of developers has declined 53 per cent across India's top 14 cities between 2012-2019.

The sector saw a slew of structural reforms and policy changes which led to the elimination of weaker players, large-scale consolidation, and entry of large corporate houses, it added.

However, Anarock said several corporate houses made inroads into the real estate sector between 2008 and 2015, even as the sector continued to remain unregulated.

Anarock Chairman Anuj Puri said the housing segment is set to undergo a momentary phase of trouble due to the coronavirus pandemic but would emerge stronger in the post-COVID world.

He listed out various factors that would drive the growth of the residential segment.

Bharatiya Digital News | Sep 20, 2020

Housing sales-to-supply ratio rises to 1.36 amid limited launches in top 7 Cities: FICCI-ANAROCK Report

Amidst controlled new housing launches, the residential sales-to-supply ratio has improved to 1.36 currently, as against 0.63 in 2014, reveals the FICCI-ANAROCK report Indian Housing Sector: Disrupted, Transformed & Recovering released at the 14th Annual FICCI Real Estate Summit 2020 today. The improvement in this critical ratio is indicative of sustained future growth for the housing sector.

Anuj Puri, Chairman – ANAROCK Property Consultants says, “The report also highlights that in the post-COVID-19 era, affordability of mid-income homes, calculated on the ratio of home loan payment to income, will touch its lowest-best at 27% in FY21. It was 53% in FY12 and has been falling y-o-y ever since.”

“In the past, the value of real estate under construction increased from USD 94 Bn in 2009 to USD 243 Bn as of H1 2020 – a 2.6X increase,” says Puri. “During the same period, the share of residential real estate grew from 49% to 88%, indicating the massive expansion of this segment.”

As policy reforms and financial stress continue to eliminate weaker players, listed developers’ sales are staying on course in the current scenario. While overall sales have declined, listed developers continue to thrive on the back of homebuyers’ increasing preference for organized players. ANAROCK research’s consumer sentiment survey during lockdown also highlighted that 62% of prospective buyers prefer to buy a home from branded developers, even if it comes at a higher cost.

Embrace the digital/ virtual route
Focus on Business Continuity Plan (BCP)
Zero in on salaried end-users and NRIs, expand affordable and mid-segment portfolios

Other Key Highlights of the Report

With homes now doubling as workplaces and for online education, some interesting new trends are becoming evident in residential real estate:

WFH option and online schooling – demand for 2.5 BHK and 3.5 BHK configurations has increased
Home layouts are changing – functional and flexible homes in top demand.
Plotted developments becoming popular – independent and semi-independent formats like villas or row houses provide better social distancing
Housing requirements in tier 2 and 3 cities to increase – with reverse migration happening across the country.
Luxury projects garnering renewed interest – from a TG that is less financially impacted by the pandemic

RealtyPlus | Sep 20, 2020

Real Estate's crucial role in the revival of economy: MoHUA

The COVID-19 experience has led to new requirements and greater dependence on IT which in turn will empower homebuyers and help improve trust, MoHUA secretary Durga Shanker Mishra said

Stating that the real estate sector will have a crucial role to play in the revival of the economy post the pandemic, Durga Shanker Mishra, secretary, Ministry of Housing and Urban Affairs (MoHUA), has said that the government is keen on infrastructure investment as it will help revive the economy.

“The real estate sector will have a crucial role to play in the revival of the economy post the pandemic; be it in terms of employment generation; contribution in the GDP or the direct multi-sectoral link,” he said addressing a special session of the FICCI 14th Annual FICCI Real Estate Summit.

He also said that the pandemic has thrown up a new set of requirements and that lessons need to be learnt and new strategies thought of post COVID-19. “We need to think more. With the online system in place you (real estate developers) will be empowering homebuyers and once you do that trust will improve”.

Business Today | Sep 19, 2020

Housing sales-to-supply ratio rises to 1.36 amid limited launches in top 7 cities

Amidst the slew of structural changes, policy reforms and controlled launches, the absorption to supply ratio has improved from 0.69 in 2013 to 1.36 as of first half of 2020. The improvement in this critical ratio is indicative of sustained future growth for the housing sector, reveals the FICCI-ANAROCK report on Indian Housing Sector titled Disrupted, Transformed & Recovering.

The report also highlights that in the post-pandemic era, affordability of mid-income homes, calculated on the ratio of home loan payment to income, will touch its lowest-best at 27 per cent in FY21. It was 53 per cent in FY12 and has been falling year-on-year ever since.

Several factors will influence residential real estate revival in post-COVID-19 times. For instance, property prices have remained range-bound with weighted average prices across the top seven cities rising only nominally at a compounded annual growth rate of 3 per cent between 2012 and 2019. This is significantly lower than the prevailing inflation rates and income growth.

The developers are cognizant of the changing market conditions and have effectively controlled launches to not create an oversupply situation. "This adaptability and agility to respond as per the market conditions will go a long way for the sector's growth and stronger emergence in the years to come," the report said.

As policy reforms and financial stress continue to eliminate weaker players, listed developers' sales are staying on course in the current scenario. While overall sales have declined, listed developers continue to thrive on the back of homebuyers' increasing preference for organised players. ANAROCK research's consumer sentiment survey during lockdown also highlighted that 62 per cent of prospective buyers prefer to buy a home from branded developers, even if it comes at a higher cost.

Business League | Sep 19, 2020

136 houses are being sold at the launch of every 100 new residential houses in 7 major cities of the country

The share of residential real estate increased from 49% in 2009 to 88% in 2020.

Housing needs have increased in Tier-2 and Tier-3 cities due to reverse migration.

The ratio of sale and supply of residential houses has started showing improvement amidst limited launch of new housing projects. According to a joint report by industry organisation FICCI and Enrock, the indian housing sector: The ratio of sales and supply of residential houses has improved to 1.36 in 2014, which was 0.63 in 2014. This means that 136 houses are now sold on the new launch of every 100 residential houses, while in 2014, only 63 houses were sold on the launch of every 100 new residential houses. The report was released at the 14th annual FICCI Real Estate Conference 2020 on Friday.

Affordability of mid income homes projected to reach 27%

Anuj Puri, chairman, Anrock Property Consultants, said that the report also says that the non-affordability of mid income homes in the business year 2021 will reach its loest-best 27 per cent. The business was at 53 per cent in the year 2012, since then it has been declining every year. Here, the non-affordability means the ratio of home loan payments and income.

Residential property price rises by 3% annually between 2012 and 2019

According to the report, the average price of residential properties in top 7 cities has increased at a mere 3 per cent rate every year between 2012 and 2019. This is much lower than the inflation rate and income growth rate. Puri said the value of under-construction real estate projects has increased 2.6 times from $94 billion in 2009 to $243 billion in the first half of 2020. The share of residential real estate has increased from 49 per cent to 88 per cent. This shows huge growth in the residential real estate segment.

Property sales of organized companies not declining

According to the report, while the total property sales have declined, the property sales of organized companies have not declined. This is because home Byers are taking more interest in purchasing branded properties, even if the price of those properties is high.

Demand for villa and row houses increased for social dissing

The new trend of work from home and online education during the coronavirus epidemic has led to some new trends in residential real estate. For example, the trend of 2.5 BHK and 3.5 BHK has increased. The demand for villas and ro houses for social dissing has increased. The need for housing in tier-2 and tier-3 cities has increased due to reverse migration.

Now, the automatic route in defence sector companies will enable FDI up to 74%

International News and Views | Sep 19, 2020

Housing sales-to-supply ratio rises to 1.36 amid limited launches in top 7 Cities

Amidst controlled new housing launches, the residential sales-to-supply ratio has improved to 1.36 currently, as against 0.63 in 2014, reveals the FICCI-ANAROCK report Indian Housing Sector: Disrupted, Transformed & Recovering released at the 14th Annual FICCI Real Estate Summit 2020 today. The improvement in this critical ratio is indicative of sustained future growth for the housing sector.

Embrace the digital/ virtual route
Focus on Business Continuity Plan (BCP)
Zero in on salaried end-users and NRIs, expand affordable and mid-segment portfolios

Other Key Highlights of the Report

With homes now doubling as workplaces and for online education, some interesting new trends are becoming evident in residential real estate:

WFH option and online schooling - demand for 2.5 BHK and 3.5 BHK configurations has increased
Home layouts are changing - functional and flexible homes in top demand.
Plotted developments becoming popular - independent and semi-independent formats like villas or row houses provide better social distancing
Housing requirements in tier 2 and 3 cities to increase - with reverse migration happening across the country.
Luxury projects garnering renewed interest - from a TG that is less financially impacted by the pandemic

Real Estate

Team Leader

Neerja Singh

Timeline

Mar, 2023

16th Edition of FICCI Real Estate Summit Building the Future Real Estate

Oct, 2022

1st Edition of FICCI Real Estate Investments Summit

Aug, 2022

Conference on The Future of Emerging Asset Classes in India

Jul, 2022

1st Edition of FICCI Commercial & Industrial Real Estate Conclave "Building next-gen India Real Estate"

Mar, 2022

15th Annual FICCI Real Estate Summit Theme: New India@75: Unveiling the Potential of India Real Estate

Aug, 2021

FICCI Webinar on Future of Logistics & Warehousing Real Estate: New India@75

Jul, 2021

FICCI Webinar on India @75 with Resilient Indian Real Estate Industry and Emerging Asset Classes

Jun, 2021

FICCI Webinar on "The Trends Shaping the Industrial & Logistics Real-estate Market: 2021 & Beyond"

Apr, 2021

FICCI Webinar on Resolving Uncertainty - Charting the Future of Offices in India

Sep, 2020

14th Annual FICCI Real Estate Summit: India Real Estate Conquering the New Normal

Aug, 2020

E-Masterclass Unveiling the Future of Rental Housing

Digital Interaction: Future of Land: Redefining Real Estate

Jul, 2020

Webinar on a Complete Makeover and Revival Strategy for the Real Estate Sector

Webinar on India REIT: A Potential Investment Window

E-Masterclass Unveiling the Future of Rental Housing

FICCI Webinar on Roadmap for investments in India Real Estate: Potential Unlocked

Jun, 2020

Digital Transformation: Making Cities Future Ready

Webinar on Rebuilding the Construction Sector: An industry perspective

FICCI-Colliers E-Masterclass on Construction Industry: Are we crisis ready?

Jan, 2020

13th Edition Annual Real Estate Summit - Ushering Indian Real Estate to Growth Trajectory

Sep, 2019

FICCI-DDA Conference on Land Pooling: Building India's Capital, Potential Investment Opportunities in Real Estate and Infrastructure

Jul, 2019

Conference on Real Estate Financing

Jun, 2019

Conference on Co-working and Co-living Spaces: The Future of Indian Real Estate

Feb, 2019

Interactive Session on Decoding Union Budget: A Real Estate Perspective

Sep, 2018

12th Real Estate Summit 2018

Jul, 2018

Improving Transparency in Secondary Real Estate Market Transactions

May, 2018

Report Release on State of the Low Income Housing Finance Market 2018 by Mr Rashesh Shah, President, FICCI

Mar, 2018

Pradhan Mantri Awas Yojana (Urban) - Housing for All by 2022

Feb, 2018

Decoding Realty: The new era of RERA, GST and Insolvency Regime

Aug, 2017

Emerging Compliance: MahaRERA & GST (An Interactive Session with MahaRERA Regulator)

May, 2017

Real Estate Regulation Rules, GST & Affordable Housing (CLSS Scheme)

Aug, 2016

Conference on Real Estate Regulation Act, 2016 (RERA) - Are we Ready?

Nov, 2014

11th Annual Real Estate Summit 2014

Jun, 2014

FICCI- CUSHMAN & WAKEFIELD Knowledge Series 2014 "Transforming Workplaces"

Apr, 2014

FICCI-EY Real Estate Master Class Series 2014 "Dealing with Indirect Tax Issues in the Real Estate Sector"

Feb, 2014

Interactive Workshop on Implementation of Land Pooling Policy in Delhi

Nov, 2013

10th International Real Estate Summit 2013

Sep, 2013

FICCI-Cushman & Wakefield Knowledge Series 2013 "Monetization in Real estate"

FICCI South India Real Estate Conference 2013

May, 2013

FICCI-EY Master Class Series 2013 "Project Management for Real Estate"

Apr, 2013

FICCI-Cushman & Wakefield Knowledge Series 2013 "Monetization in Real estate"

Jan, 2013

16th Edition of FICCI Real Estate Summit
Building the Future Real Estate

15th Annual FICCI Real Estate Summit
Theme: New India@75: Unveiling the Potential of India Real Estate

FICCI Delegation to Hannover Messe 2011
"Metropolitan Solutions-Technologies for Tomorrow's Cities"