The eastern corridor of Pune has witnessed rapid growth in commercial sector as Grade A developers have ample stock to lease in the area which enjoys an advantage in terms of social infrastructure, connectivity to other parts of the city, abundant residential options, proximity to airport and railway station among host of other advantages.
At a time when there is a mad rush to launch new projects in & around the airports across the cities of India, a developer in Bengaluru opted to go in the diametrically opposite direction. Prima facie, what appeared to be a case of finding a better or affordable land parcel in that given location of South-West Bengaluru had a strategy that very few adopt in the business of Indian real estate. The strategy to define demand through scientific research. The demand in the market was assessed with consumer psychograph study – what consumers want; what they need; where are the gaps; and how a new housing project could fill in that gap.
Equity capital inflows touched USD 8.9 billion between January and September, registering a 46% Y-o-Y growth. The strong momentum in deal volume continued, with about 200 deals reported during this period, compared to 151 deals in the same period last year. The average deal size also increased to nearly USD 45 million in the first nine months of 2024 from about USD 36 million in 2023. Mid-sized deals, ranging between USD 10-50 million, represented 56% of the total investment inflows during this period.
Prices of key materials like steel and aluminum have relatively stabilized in 2024. Rising construction cost has primarily been on account of labour cost surge, at about 25% YoY in the private sector. Volatilities in construction material prices and labour cost pressures are likely to push overall construction cost upward, albeit at a slower pace. Over the last one-year, average cost of construction is estimated to have risen up to 11%, mainly due to a significant surge in labour costs coupled with a moderate price increase in construction materials like sand, brick, glass, wood etc. Notably, the cumulative effect of rise in the prices of four key construction materials including cement, steel, copper and aluminum have been relatively low. In fact, average cement prices have seen a steep decline of 15%, while average steel prices have witnessed a ma
How was the festive season for property market this year? The answer depends upon whom are you addressing the question. For the large universe of the developers, it was worse festive season in the last 5-7 years. But for a few select listed developers, the fortunes are different. The ground reality of the market is that Diwali fireworks was definitely missing for Indian real in 2024, despite over optimism and influence peddling ahead of the festive season. Track2Realty analysis.
India continues to exhibit strong economic growth prospects and business optimism is reflected in the increasing number of Initial Public Offerings (IPOs) in recent years. The traction in the number and volume of public issues lends credibility to an environment of higher corporate earnings, rising participation by retail and institutional investors, and availability of adequate liquidity in the market. With 123 fresh issues (As of 20th October 2024) across multiple sectors, 2024 has already surpassed the total number of IPOs witnessed in 2023.
As the education sector evolves, factors such as technology permeation, revamped building designs, and focus on health & safety are likely to define education real estate. Besides, modern educational building design must prioritise flexibility so that spaces can be reconfigured to adapt to various teaching methods and activities, developing a dynamic learning environment. To address this and move away from traditional classroom setups, educational buildings now include collaborative spaces to encourage teamwork and group learning. Moreover, sustainable, and eco-friendly design elements, such as energy-efficient systems and natural lighting, are becoming increasingly common to reduce the environmental impact of educational buildings.
Residential assets were the first preference for domestic investors during Q3 2024 whereas foreign investors accounted for 64% of the commercial deals. Growing prominence of work-from-office mandates and GCCs (global capability centres) lured foreign investors, leading to an increase in the share of commercial investments from 24% in Q3 2023 to 71% in Q3 2024. On the other hand, the share of residential sector reduced to 19% in Q3 2024 from 44% in the same period a year earlier. However, investment in residential assets is expected to grow in the coming quarters as niche asset classes such as co-living, senior housing, and serviced apartments are gaining traction.
Shapoorji Pallonji Real Estate (SPRE) has entered a joint venture with Kanodia’s real estate venture KREEVA to develop a luxury residential project in Sector 46, one of the most premium residential localities within Gurugram.
Spanning across 1.74 acres, the project will consist of luxury apartments, targeting discerning homebuyers in the National Capital Region (NCR). The project will offer a perfect blend of modern design, superior construction quality, and state-of-the-art amenities, offering a new standard of urban living to the residents of Gurugram.
In a report ‘India Market Monitor Q3 2024 – Investments’, CBRE indicates a robust 46% Y-o-Y growth in real estate equity investments, totalling USD 8.9 billion in Jan-Sep ’24 —the highest-ever recorded since CY 2018, surpassing the USD 7.4 billion total equity investments for CY 2023. On a quarterly basis, equity investments in real estate stood at USD 2.6 bn in the Jul-Sep’24 period. Domestic investors (predominately developers) took the lead with ~79% share in equity capital inflows in Jul-Sep ‘24. Singapore-based investors accounted for nearly 73% of the total foreign capital inflows, followed by the United States (~22%). Developer activity picked pace in Jul- Sep ’24 quarter, accounting for a share of nearly 47% in total equity investments, followed by institutional & collective vehicle investors (~36%).