Construction for 4.9 million units has begun and 2.6 million units of which have been completed. Given the past trend, additional 1.64 million houses are likely to be sanctioned by December 2019, making it highly possible to achieve the 10 million houses target by 2022. Projected subsidy disbursement over next 3 year for the same is projected to INR 1 trillion.
ANAROCK research indicates that out of the total new supply in H1 2019 – approx. 1,39,480 units in the top 7 cities – over 53% (73,930 units) were launched by branded developers, and 47% by non-branded entities. In H1 2018, branded developers’ share was 52% and during H1 2016 – before DeMo and RERA – non-branded developers had a 60% share (approx. 95,600 units) of the total of 1,59,090 newly-launched units in the top 7 cities. Branded developers accounted for 63,490 units (40%) of the total supply in the period.
As anticipated, residential real estate activity remained largely tepid during the second quarter of 2019 in the backdrop of the general elections during the period but the recent Union Budget sops for the affordable sector may give the much-needed push to the segment henceforth. ANAROCK research indicates that housing sales in Q2 2019 fell by 13% q-o-q and stood at 68,600 units across the top 7 cities.
Various private equity players are reviewing the holdings of these institutions and we could see a very big portfolio sale transaction in this quarter involving DHFL. However, there is a lot of action in alternative sectors such as co-living and student housing with players such as Stanza Living, Hamstede and Oyo on a signing spree.
Only a paltry number of developers have built housing that meets the Government’s criteria for incentivized affordable housing in 2019. ANAROCK data reveals that of the total housing supply of 1,39,490 units in the top 7 cities H1 2019, merely 39,840 units meet these criteria. The Government’s recent Budget ‘bonanza’ of an additional INR 1.5 lakh tax deduction on interest repayment of home loans availed till March 2020 will benefit very few people in urban India.
With spacious homes in a gated community, the project will have more than three acres of central greens, outdoor air pollution controllers, floral courts, parks, air purifying tree species, pocket amenity spaces under each tower, contemporary club house (around 24,000 sq. ft), swimming pool, gym, sports-facilities, recreation areas, cafeteria and shopping plaza to just name a few.
In terms of the overall brand gain for the year, Embassy has been way ahead of the competition curve post the REIT listing. Embassy has jumped from its last fiscal ranking at Number 5 to now at Number 2. As a matter of fact, Embassy is just 0.4 brand score behind Sobha Limited. Moreover, Embassy has taken a lead ahead of Sobha in terms of NRI perception. Moving forward, Embassy Group with diversified portfolio could have an edge over Sobha Limited.
Seniors who are staying in Delhi NCR are much more prone to society caused anxieties and family feuds, which eventually reflects on their health and cause behavior pattern leading to more depression and blue moods. In such circumstances often stress leads to health degradation causing lack of energy, poor concentration, and less sleep.
The laws like U.P. Apartment Act 2010 and the RERA prohibits any such alteration of original plan after allotment without consent, but the development authorities take help of Govt. orders which are not applicable on Underdevelopment projects to eclipse the law and help private developers to earn windfall profit and delay the projects.
Large foreign funds have expressed an interest to own a share of the Indian real estate pie. Nikko Am Straits Trading Asia, North Carolina Fund, Hwang Asia Pacific REITs and Infrastructure Fund, Eastspring Investments and Canada-based Sentry Global have received SEBI approval to invest in India as developers and real estate investors, revealing the underlying interest in REITs. Our research indicates that continuous institutional flow of funds has provided the initial momentum to REIT.