The data analysis reveals that about 26 million sq ft of Grade A office buildings are under various stages of construction in the city which will completed by 2020. Most of this upcoming supply is concentrated in Outer Ring Road (ORR), which is a major commercial hub in Bengaluru.
The real estate industry stakeholders are elated with such a prospect since the tax slab being discussed at 5% & 12% is lower than the present taxation. Niranjan Hiranandani, President, NAREDCO said the move would benefit the consumers who will only have to pay one ‘final tax’ on the whole product. This is obviously a good thing to happen, and the real estate industry will welcome the move.
The prevailing sentiment among the home buyers is quite negative. The developers have definitely failed to identify the strategic and operational challenges that can goad the sector to adopt the best practices. There is no specified industry standard that can be widely accepted as best practice and the industry bodies are seen as builders’ lobbies.
Beating the slowdown blues, Bangalore-based developers DLF and Brigade continued their growth momentum with increase in revenue an profit. DLF, on the contrary, continued to lose the market share and revenue as slow sales hit the developer leading to quarter-on-quarter slide.
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.
The report highlights the need for new urban centers in the country, and shortlists 45 potential mega-cities such as Nagpur, Lucknow, Jaipur, Kochi and Bhopal, among others.
Colliers International was brought on board as the solution provider to raise INR105 crores in structured debt from an NBFC- Xander Finance Pvt Ltd, mainly to give an exit to the current investor- Motilal Oswal Real Estate in project Skylark Dasos on Hennur road.
On the face value the developers are maintaining an optimistic outlook, but privately many of them admit that demonetization, GST and job market uncertainties have collectively spoiled the festive sentiment this time around. Add to it, the developers running short of fresh ideas in how attract today’s discerning buyers, and it seems market is destined to remain flat.
There is no rocket science in real estate that buyers can not adopt and understand for their own better understanding of the most valuable asset called house. Proper understanding of the real estate terminology also helps the homebuyers to safeguard against the misleading sale.
With about 10 million sq ft (0.9 million sq m) of office leasing in Q3, gross absorption totalled around 28.9 million sq ft (2.7 million sq m) over the first nine months.