Recently an acquaintance – a fund manager by profession – relocated to India to set-up a domestic PE fund here. He had invested in a Mumbai residential property strategically located close to the primary business district and an international school for his kid.
The Nifty Realty Index that touched a low of 162.13 on 19th May in the post Covid mayhem has now scaled up to 280.00 (First week of December). The BSE and Nifty also surged more than 50% since the March lows, thus making the Indian stock market one of the best performers across the world. India’s only REIT, Embassy Office Park that scaled down at INR 319 is back in the range of 350 with a forecast of crossing 400. The second REIT, Mindspace Business Pak that was over-subscribed 12.96 times in the month of August this year, is also on its growth curve.
The ancient Chinese curse ‘may you live in interesting times’ certainly has a lot of pertinence to Indian real estate today. These are doubtlessly ‘interesting’ times for the sector, which has transformed significantly over the last decade. The pace of transformation has been accelerated further by the Central Government’s reformative steps aimed at ushering in ‘Acche Din’ to the realty sector.
Meraqi’s latest sector specific research report ‘Emerging Residential Niche Products’ reveals the potential of the growing alternate residential real estate market in India, analyses investment trends in niche categories like Student Housing, Micro units and Senior Housing emerging across the Tier I cities and forecasts the future trends in the segment.
The quintessential offering of this project is views of the 225 acre Mahalaxmi Racecourse, uninterrupted views of the Arabian Sea on the horizon, Willingdon Golf Course and the expansive Mumbai Harbour.
The Indian real estate market is not a single homogenous entity. There are seven major metro markets, each behaving differently, with different supply and demand dynamics. There are many different verticals within real estate – residential, commercial, retail, hospitality – and within those there are segments focused on different customer bases. With so many permutations, there is no ‘one size fits all’ answer. The urban southern markets in commercial office sector, has seen consecutive years of positive sentiment, take up and consequently rental growth.
Piramal funding to Embassy Group has been done sequentially across both residential and commercial projects in Bangalore, Chennai and Hyderabad over a span of the last six months.
The top 8 cities witnessed residential launches of approximately 25,800 units in the first quarter of 2017 and registering a 16% decline from the corresponding period last year, says a report by Cushman & Wakefield.
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