Decline in occupancies was more visible in key cities including Goa, Pune and Ahmedabad, according to the Hotel Momentum India (HMI) – H1 2019, the half-yearly hospitality monitor (for January to June 2019 period), released today by JLL Hotels and Hospitality Group.
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.
Steady economic growth, favourable policy environment, growing preference of global occupiers for Indian offices and listing of first Real Estate Investment Trust (REIT) in the country have put the India office market on a growth path, according to the half yearly update (H1 2019 – January to June 2019) by JLL India.
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.
MMR has been one of the major retail hubs in the country with most brands, big and small, eyeing to capture a piece of this vital market. The unrelenting demand for more retail space in the financial capital has prompted mall developers to boost their development pipeline. As per ANAROCK data, nearly 13.6 mn sq. ft. of new mall space is likely to come up in the entire MMR by 2022.
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.
ANAROCK research reveals that as many as 220 projects equalling 1.74 lakh homes are completely stalled in the top 7 cities alone. Launched either in 2013 or before, these projects have absolutely no construction activity going on. The overall value of all stalled units is estimated to be more than INR 1,774 billion. Most of these projects have been grounded due to either liquidity issues or litigations.
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.
The Supreme Court of India categorically said on Tuesday, July 23, that serious fraud has been played by real estate firm Amrapali Group in connivance with Noida and Greater Noida authorities by failing to give possession of flats to over 42,000 home buyers.