OYO Workspaces forays into Chennai with the launch of coworking brands – Innov8 and Workflo in the premium and budget categories. Incentivising start-ups, entrepreneurs and large companies to switch to managed workspaces, Innov8 offers seats starting at INR 9000 per month while Workflo offers seats starting at INR 5000 per month.
For the real estate, it seems the government message is that if you wish to revive than learn to survive on your own. Unfortunately, in a market loaded with housing inventory, added with the liquidity crunch, the over-supply could only be absorbed with the revival in demand. There has been no announcement as to how the government would ease the stuck up projects after its initial stressed funds.
Track2Realty picks up Investment Magnet Cities of India through a comprehensive pan-India survey. The idea is to identify the top real estate destinations for the home buyers in the country.
Colliers International foresees robust demand from GICs, with leasing by GICs across six major cities in India to be in the range of 32.5 million sq ft between 2019 and 2021. Over 2014-2018, occupiers leased about 53.0 million sq ft of office space in multi-tenanted buildings for their GICs. Bengaluru led the demand with about 20.1 million sq ft, followed by Delhi NCR and Hyderabad. Further, we found that companies from the engineering, energy and manufacturing sectors favoured Bengaluru, which accounted for 32% of GIC demand between 2014-2018.
Institutional investments increased in the last ten years and have improved investor confidence, risk appetite and transparency. Enhanced use of technology across asset classes have changed the outlook of investors towards Indian real estate. As a result, investments have more than tripled to INR 1,400 bn during 2014-18 as compared to INR 465 bn during 2009-13, says the latest CII-JLL report ‘Innovation Led Opportunities – Changing India’s Real Estate Landscape’, released on Wednesday, Aug 21, at the 11th Edition of CII Realty & Infrastructure Conclave.
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.
The Indian housing market is a vicious cycle of broken promises, trust deficit, sulking participants and non-delivery. Statistics only tell you half the story. For the developers, market trackers and the government agencies it is all about numbers – how many units have not been delivered. What these raw statistics don’t tell you that there is a sordid saga of drying emotions of one family with each housing unit. Probably the stakeholders are least bothered about the plight of an average middle class home buyer who has exhausted his lifetime savings, taken up home loan and now reeling under the burden of both the EMI and the rent.
GIFT City is located on the banks of Sabarmati River, connecting the business capital (Ahmedabad) and the political capital (Gandhinagar) of Gujarat State. It is spread over 886 acres of land. It features world-class infrastructure such as district cooling system, underground utility tunnel, automated waste collection which are being implemented first time in India. The city is designed for walkability and includes commercial, residential, school, club etc. Presently, around 200 companies are operational at GIFT City, employing around 9,000 people.
It was not the magic wand it was hoped to be. However, over the past two years, the Real Estate Regulatory Act (RERA) has brought more sanity – and the return of consumer power – than seemed possible in such a short time. The real estate sector is still struggling with it and the Act is very much work-in-progress in many states, but RERA nevertheless hangs like a sword of Damocles over a previously unregulated industry. Eventual compliance across the board seems inevitable.
Various private equity players are reviewing the holdings of these institutions and we could see a very big portfolio sale transaction in this quarter involving DHFL. However, there is a lot of action in alternative sectors such as co-living and student housing with players such as Stanza Living, Hamstede and Oyo on a signing spree.