Year 2018 was a veritable roller-coaster ride for the Indian real estate. Despite signs of recovery across segments, the liquidity crunch – further exacerbated by the NBFC crisis – put all industry stakeholders on tenterhooks.
This growth is witnessed across five major cities – Mumbai, Gurugram, Noida, Bengaluru and Pune, where 4000 homebuyers were surveyed by 360 Realtors to understand buying trends. One of the key driving factors for the increase in investor interest is the impact of policies such as RERA. Assured rentals and EMI payouts after possession, offered by developers have also significantly boosted investor confidence.
Knight Frank India has released a report titled “Co-Living – rent a lifestyle” that suggests 72% of millennials (18 – 23 years) have given co-living spaces a thumbs-upand over 55% respondents in the age group of 18 – 35 yearsare willing to rent co-living spaces.
India witnessed a robust demand for office spaces in Q3 2018, recording approximately 12.3 million sq ft of gross absorption, indicating a 23% growth over the corresponding period last year. As a result of rising demand coupled with lowering vacancies in premium Grade A buildings, the office rental values have recorded an increase in select micro markets across cities.
The gross leasing activity in India was recorded at 36.4 million sq ft for the first nine months of 2018, up 26% YoY. Pan-India demand for Grade A office space was driven by the technology sector (48%) in Q3 2018, followed by banking and insurance representing 19% of the total leasing volume.
Now that the Real Estate Regulation Act (RERA) brings the brokers into its ambit, the question that still stands is: What are the grey zones left which are not defined in the prescribed Act? What if the broker or builder has made the verbal promises to the buyer? What would be legal position if the marketing firm/broker misleads the buyer without the knowledge or consent of the builder?How can buyer be compensated if he has bought the property on the promise of misleading claims?
REITs or Real Estate Investment Trusts might be the most debated and expected development in the Indian real estate, but a majority of Indians are yet not convinced how will it operate. Even more in number are questioning the opinion of experts as far as its lucrative ROI (Return on Investment) is concerned. The Indians believe given the market uncertainties REITs won’t be the game changer for the Indian real estate, unless the returns are really tempting.
Analysts active in Navi Mumbai firmly believe that this NRI has got more than one upcoming node in Navi Mumbai where he can invest. Interestingly, the upcoming nodes have been more holistically planned and promise to have better infrastructure.
The Indians seem to be quite aware of the challenges of mass housing, as is visible with nearly half of the respondent, 48 per cent questioning when land acquisition is going to be tougher how housing for all will be a reality.
BluNex Life’ will give home buyers and residents a distinct edge by converting their homes into a smart home. As the concept of home automation picks up in India, ‘BluNex Life’ is in line with Puravankara’s vision of providing intelligent homes to new home buyers, who are looking for more smart and safety features, and to stay contemporary.