Better returns, a mature and transparent market are some of the factors that have made investors flock to the country’s commercial real estate. With commercial segment remaining the most favoured among all kinds of asset classes, high-net-worth investors and the uber-rich are now looking at pre-leased assets, primarily office assets, with hope.
While consolidation has been an ongoing phenomenon for some time, recent mergers, acquisitions and joint developments are underscoring this trend like never before. The Indian residential sector saw a series of disruptions in the last two to three years, with revolutionary reforms like DeMo, RERA and GST remarkably altering the way real estate business is conducted. A natural by-product of this upheaval was consolidation, with fly-by-night developers completely vanishing and small players merging with big ones.
A majority government at the Centre is gradually reviving private equity’s confidence in Indian real estate – especially the commercial sector. ANAROCK research indicates that PE players infused USD 580 mn into Indian real estate in the month of June, immediately after Modi 2.0 took charge.
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.
Construction for 4.9 million units has begun and 2.6 million units of which have been completed. Given the past trend, additional 1.64 million houses are likely to be sanctioned by December 2019, making it highly possible to achieve the 10 million houses target by 2022. Projected subsidy disbursement over next 3 year for the same is projected to INR 1 trillion.
Steady economic growth, favourable policy environment, growing preference of global occupiers for Indian offices and listing of first Real Estate Investment Trust (REIT) in the country have put the India office market on a growth path, according to the half yearly update (H1 2019 – January to June 2019) by JLL India.
MMR has been one of the major retail hubs in the country with most brands, big and small, eyeing to capture a piece of this vital market. The unrelenting demand for more retail space in the financial capital has prompted mall developers to boost their development pipeline. As per ANAROCK data, nearly 13.6 mn sq. ft. of new mall space is likely to come up in the entire MMR by 2022.
The reasons for vacancy levels of homes which could feed the rental market across the country are largely region-specific. However, distorted property rights (in the absence of a sound rental policy), weak rental contract implementation and low rental yields are some of the major factors that prompt homeowners to leave their houses vacant rather than rent them out.
With spacious homes in a gated community, the project will have more than three acres of central greens, outdoor air pollution controllers, floral courts, parks, air purifying tree species, pocket amenity spaces under each tower, contemporary club house (around 24,000 sq. ft), swimming pool, gym, sports-facilities, recreation areas, cafeteria and shopping plaza to just name a few.
In terms of the overall brand gain for the year, Embassy has been way ahead of the competition curve post the REIT listing. Embassy has jumped from its last fiscal ranking at Number 5 to now at Number 2. As a matter of fact, Embassy is just 0.4 brand score behind Sobha Limited. Moreover, Embassy has taken a lead ahead of Sobha in terms of NRI perception. Moving forward, Embassy Group with diversified portfolio could have an edge over Sobha Limited.