Real Estate News – Page 4

The repressed interest for housing is presently getting converted into real sales. While industry specialists have been naming the situation as buyers’ market for quite a while, homebuyers themselves appear to have turned out to be more active at this point.

Things are looking positive as indicated by the performance some of the listed real estate companies with regards to residential sales over the last one year.

A key role in this resurgence is played by lower interest in home loans and government’s encouragements on affordable housing. The government, to support affordable housing fund, has introduced a number of schemes such as Pradhan Mantri Awas Yojana (PMAY), Lower Goods and Services Tax (GST) and extended income tax benefits to apartments of carpet area of 645 sq ft.

HDFC Bank has recently reported a 26% increase in individual loans in FY18. Godrej Properties reported a 152% on-year increase (at Rs. 5,083 crores) in the value of bookings for FY18. The organization’s most noteworthy ever sales in any budgetary year was led by booking volume of 6.26 million sq ft.

Amid the final quarter alone, the organization’s booking value saw 210% on-year development at Rs 1,054 crore. The executive chairman of Godrej Properties, Mr Pirojsha Godrej said, “For the first time in its history, GPL has delivered sales of more than Rs 1,000 crore for four consecutive quarters. We look forward to building on this momentum in FY19”.

The final quarter and the full financial year swung out to the best-ever in value terms for Bengaluru-headquartered Sobha, with an increase across regions and product categories. It has recorded new sales volume of 3.63 million sq ft, evaluated at around Rs 2,861 crore amid the year with yearly sales volume and values increased 21% and 42%, respectively. The performance of Kochi and Gurugram also saw an improvement.

Indiabulls Real Estate, a Mumbai-headquartered real estate developer saw a 20% growth in both 600 apartments and sales value at Rs 3000 crore. Strangely, the premium segment also contributed to the organization’s performance during the year.

As indicated by Colliers International India, more than 44 million sq ft of new office supply is at different phases of development in the National Capital Region (NCR). Around half of this new supply will come in Noida while the remaining is distributed among New Delhi (8%) and Gurugram (40%).

While the overall gross office uptake in Gurugram stood at 1.72 million sq ft in the first quarter of 2018, Noida recorded about 1.01 million sq ft of gross absorption amid the said quarter. In Delhi 0.26 million sq ft of gross absorption was recorded, as indicated by company’s examination.

Delhi

In Delhi, Leasing Activity stayed repressed amid Q1 2018, as just 0.26 million sq ft of gross absorption was recorded denoting a 21% decline year-on-year.

Most of the office space supply was taken by the engineering and manufacturing sector. It accounted for 38% share of the total leasing volume.

The vacancy rate in Delhi is probably going to stay within the scope of 10-11% over 2018-2020 while rents of premium buildings may increment by 5% every year over the following three years.

An Inventory inundation of around 3 million sq ft might be seen by the region over 2018-2020.

Gurugram

In Gurugram, the vacancy level is probably going to stay high over 25% notable supply pipeline in peripheral micro-markets over 2018-2020.

As expected by Collier, rents will stay under strain in decentralized areas, whereas premium areas may see 4-5% expansion over 2018-2020. Capital values may go up marginally 4-5% more over 2018-2020 because of increased interest from Institutional Investors, as indicated by research report.

Noida
Noida recorded around 1.01 million sq ft of gross absorption which was twofold than the Q1 2017 absorption levels.

Technology part represented 25% of the total absorption, trailed by budgetary sector which represented 20% of the take-up.

Colliers expects that normal vacancy rate in Noida will stay high at over 25% over 2018-2020 because of a hearty supply pipeline.