The Adani Family, through Endeavour Trade and Investment Ltd (“BidCo”), a special purpose vehicle, has successfully completed the acquisition of Ambuja Cements Ltd and ACC Ltd. The transaction involved the acquisition of Holcim’s stake in Ambuja and ACC along with an open offer in both entities as per SEBI Regulations.
Ramneek Patel, an MNC executive in Gurugram is on a company leased accommodation and the HR is deducting INR 40,000 per month for his rented apartment. Now that the Goods & Service Tax (GST) has been imposed for rental residential units to companies, he has been told by the company that the said liability will be passed on to the employees living in company leased apartments. They can otherwise find an apartment on their own.
2021 was expected to be the year of recovery for the Indian real estate that weathered the black swan of Covid in the preceding year. Throughout the year the developers put up a brave face and the industry data of the top listed developers was enough to keep the prophets of doomsday in silence. However, the closer look at the sector and the large universe of the developers raises more questions than what it could answer during the turbulent year. Track2Realty looks in to look ahead.
The Allahabad High Court has rapped the District Magistrate of Gautam Buddh Nagar for non-compliance of RERA Recovery Certificates (RC). The Court has also directed the DM Suhas LY to appear before the court on October 4 to explain the inaction in the RCs issued by the Real Estate Regulatory Authority (RERA) in several cases.
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.
The affordable housing segment, which gained significant traction over the last few years, may also take a hit by COVID-19. The outbreak will significantly affect affordable housing’s target audience. With limited income and unemployment fears, buyers of affordable housing may defer purchase decisions, leading to an estimated 1-2% rise in unsold stock within this segment in 2020.
I&L space take-up in 2019 was dominated by small-sized transactions (less than 50,000 sq. ft.), which held a share of about 42%. The share of medium-sized transactions (ranging between 50,000 sq. ft. and 1,00,000 sq. ft.) rose from 26% in 2018 to 30% in 2019. Large-sized deals (greater than 1,00,000 sq. ft.) accounted for 28% of the leasing activity during 2019. The number of large-sized deal closures in Hyderabad, in particular, doubled in 2019 as compared to 2018.
According to the World Bank, India ranks at 63rd among 190 countries, and the ranking is anticipated to improve further in the coming years backed by progressive government policies. Meanwhile, the real estate sector has shown remarkable resilience despite the bearish phase of the economy. Below is a lowdown of how the real estate story unfolded in 2019:
After witnessing a revival of sorts in 2018 housing sales have witnessed a growth of 14% in the first nine months (January-September) of 2019 as compared to the corresponding period in 2018, according to India Real Estate Market Update Q3 2019, released by JLL . The office segment witnessed strong leasing, registering a jump of 40% during the same period as compared to the corresponding period in the previous year, the report added.
Indian real estate is still a viable and fairly safe long-term investment option. Investors with a short-term view on ‘instant returns’ need to look elsewhere, but most other asset classes are quite volatile in nature and will continue to remain so. Indian residential real estate is a long-time favourite of resident Indians and NRIs, and recent trends suggest a positive outlook for this asset class going forward. Property prices have bottomed out and cannot possibly reduce further, especially since construction costs are gradually heading north.