While 2018 lived up to a fair number of expectations, there were a few misses too, particularly in the case of clarity on GST norms. Key highlights of 2018 were the creation of positive sentiments in the market by way of a robust office space absorption by emerging segments, as well as increase in the number of new launches and sales in the affordable housing sector.
The Government’s decision to allow 51% FDI in multi-brand retail and 100% FDI in single-brand retail under the automatic route was a definite crowd-pleaser that attracted giants like Walmart to make forays into the country.
With high expectations from 2018, it was anticipated that the teething problems around policy initiative introduced in 2017 (RERA and GST) would ease out by the end of the year, bringing a new order of transparency and efficiency.
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.
Court has also directed that financial statements, bank details, any important resolutions by Board of directors of the company be placed on record along with minute books and attendance register w.e.f 1st April 2015 onwards. Also notices along with the proof of dispatch of the Board meetings and attendance registers be filed.
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.
In India, when the going was smooth a number of leading developers tried to foray into multi-city operations. Most of them had to exit the expansion strategy sooner than later. It rather proved to be the first nail in the coffin for some of these market leaders by size.
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.
With the expectations of Navi Mumbai International Airport becoming a reality, the property market is suddenly back in the demand. This has also made the mood of the Navi Mumbai residents very upbeat. They believe the real rise and growth of Navi Mumbai is not behind but ahead.