Atul Modak, City Head of Kohinoor Group of companies says they are bullish on the Mumbai realty market and have a couple of residential and commercial launches coming up this year. In an interview with Ravi Sinha, he wondered that in a market where input costs are going sky high, how can the market go downwards?
As the Finance Minister Ms Nirmala Sitharaman announced to lower the LTCG (Long Term Capital Gains) from 20% to 12.5%, the stock market took a hit. The analysts across the financial spectrum immediately swung into analysis that the LTCG hike would adversely affect the stock market in the short term but big pocket investors won’t be affected as much as presumed. A section of financial wizards who understand the nuances of personal finance across the asset classes had even bigger a worry – Real Estate. Prima facie what looked like the LTCG being lowered from 20% to now at 12.5%, has in fact hurt the property market the most. Reason: the indexation benefit under Section 48 that is presently available for property, gold, and other unlisted assets have been now proposed to be removed.
A comprehensive analysis of these cities was done involving assessment of various social, economic, financial, and real estate specific demand & supply side parameters. Colliers conducted a broad-based assessment and developed an objective framework incorporating the above-mentioned parameters to assess their relative degrees of importance and impact on various real estate segments such as office, residential, warehousing, retail, hospitality, and alternatives (data centers, senior living, second homes etc.) in the respective cities.
When you read in the media that the housing market is on fire, you get pessimistic with FOMO (Fear of Missing Out) gripping your investment strategy. When the market speculators suggest the house price might drop, you rush to sell and/or put your buying decision on hold for a better deal. Track2Realty analyses whether home buyers can time the market.
India office holds upside potential to scale up to 60 msf in 2024. Domestic enterprises to account for over half of the office demand during 2024. GCCs to gain further ground accounting for over 40% of the total demand. BFSI and Engg & Mfg. to drive demand for Grade A office spaces. Flex spaces are likely to drive about 15-20% of the overall leasing in 2024. Large-sized deals of 100,000 sq ft or more, projected to account for 50-55% of 2024 leasing activity. About 30-35% of Grade A office demand is likely to come from PBDs in 2024.
Indian real estate has historically been very optimistic on the eve of every festive season. The post festive season sales number may not back the pre-festive bullishness, but the sector has been known to be hoping to make merry year after year. After all, real estate is a sentiment driven business and the stakeholders try best to create an ambience of positivity to bring the fence sitting buyers back to the market, often with festive discounts and freebies.
The cost of doing business per square feet has always been challenging in the top 10 cities of India. The ever increasing migration for jobs in these cities have made the housing affordability even bigger challenge. Critics are not cynical when they question as to what extent and till when these cities will continue to be filled up like a soda bottle. Aren’t our metro cities on the verge of a population blast? Come 2021 and Track2Realty analysis believes the infamous Coronavirus in a strange way has shown the way forward.
Residential markets such as Bengaluru, Chennai, Kolkata, Delhi and more have witnessed price corrections ranging from 1%-2.3% during the quarter, suggesting the solidity of the housing sector even in difficult times. However, with this price increase, you will still come across certain real estate brands offering discounts and continuing to sell at the previous cost of construction. In such a scenario, how does one choose the real estate player who is honest and fair in his dealings? My simple answer would be go with a genuine brand but how does one identify what is genuine.
Across the built environment of the Indian real estate the two question that are on everyone’s lips is about the recovery timelines and segment to recover first. Track2Realty finds this uncertainty about the possible recovery, or rather the lack of it, has also kept the fence sitting home buyers on the edge.
Much before the outbreak of pandemic Coronavirus, the Indian real estate sector battling with the consistent slowdown was looking up to the turnaround catalyst. While the success of REIT had given it a glimmer of hope, the fund managers had their eyes set on a segment that has the potential to not just spread across the country but give a piggy ride to other segments as well, most notably to the housing. Track2Realty finds the warehousing & logistics to emerge as the mainstream real estate in the last few years.