Projects worth INR 4,64,300 crore for a total of 575,900 units are already significantly behind schedule. These 5,75,900 units have been stuck since 2013 or before. However, what is even more disturbing than these staggering number is the fact that in many of the states RERA has been diluted to the extent that it allows the erring developers with the existing projects to get away with the fault lines.
In the ‘golden years’ of India’s housing market, property was the default go-to option for big-ticket investment. With real estate’s fading allure, investors began exploring other options and found them to quite rewarding. For instance, they can invest in a start-up with sums as ‘low’ as INR 10 lakhs. Many entrepreneurially-inclined Indians find the potential ROI (as high as 15% in many instances) makes more sense. Mutual funds provide good returns and the entry level is low enough to be affordable to many.
Decline in occupancies was more visible in key cities including Goa, Pune and Ahmedabad, according to the Hotel Momentum India (HMI) – H1 2019, the half-yearly hospitality monitor (for January to June 2019 period), released today by JLL Hotels and Hospitality Group.
Is there something in the very DNA of the city that makes every global forecast refer Chennai as the future city on the global map? Analysts believe Chennai is not only the capital city of Tamil Nadu but is also the largest industrial and commercial centre in South India. The Greater Chennai Corporation (GCC) is the flagship Urban Local Body in the Chennai Metropolitan Area (CMA). The Greater Chennai Corporation (GCC) is the oldest municipal Institution in India.
At a time when the developers across the cities are struggling to either cope up or align with the emerging regulatory compliances like the RERA, these numbers clearly indicate that Chennai has not only been among the front runners in compliances and best practices but also ahead of the competition curve as far as the launches and absorption are concerned.
Gross leasing activity is recorded at 50 million square feet in 2018, highest in last eight years driven by buoyant leasing in Bengaluru and NCR. Compared to the previous year, gross leasing increased by 17% as occupiers continued to expand and consolidate. The top 3 sectors contributing to gross leasing were IT-ITeS with 43%, flexible workplaces with 14% and BFSI with 12% share.
The Indian real estate sector has always been perceived by investors across the world as attractive proposition in terms of quality assets across segments. The recent policy changes and reforms have further shaped the perception of global investors on India as these reforms are seen as India’s endeavour to given an image makeover to the real estate business.
RERA was supposed to save the day for homebuyers, but that doesn’t seem to have happened – at least not yet. In many states RERA, in its present form, is currently either non-existent or a pale shade of what it was intended to be.
Housing Shortage in the urban areas is particularly high in Economically Weaker Sections (EWS) at 10 million units, followed by 7.4 million units in Lower Income Group (LIG).Until now, Central assistance to the tune of INR 13,583 Crore has been released and Interest subsidy of INR 1,859 Crore has been credited. Under the PMAY(U) scheme ( as per 8thJuly 2018 release by Ministry of Housing and Urban Poverty Alleviation, Government of India), 51 lakh units have been approved, 28 lakh units have been grounded and only 8 lakh units have been completed.
The report also recommends the best urban locations for technology firms. Bengaluru, Singapore and Shenzhen stand out as top choices for starting or expanding technology operations in Asia. Modest long-run growth prospects hold down developed cities like Tokyo and Taipei for the sector. While emerging cities offer high growth potential and low operating costs, they tend to score lower on employment criteria and human aspirational metrics.