Indian Property

Real estate brokerarge company JLL India has released its retail real estate report at CII National Retail Summit 2017 in New Delhi. The report highlights the Indian retail sector’s growth potential in Tier 2 and 3 cities. In the report, JLL analyzes how mall withdrawals in Tier 1 cities have kept the vacancy levels stable. It has identified top 20 cities that will drive retail growth basis total retail stock, upcoming supply, retailer presence, retailer expansion plans and investments. Among the small towns and cities, Jaipur ranks 1st in total current retail stock, while Lucknow ranks 1st in upcoming retail supply. New Delhi, 1st December 2017: Leading international real estate consultants JLL India today released its latest retail report ‘Fuelling the Retail Revolution - The Paradigm of Emerging Cities’ in association with the CII National Retail Summit, 2017. In Delhi-NCR and Noida, commercial real estate projects such as Alphathum by Bhutani Group are already underway. Ple...

By Anuj Puri, Chairman & Country Head, JLL India Effective investment in residential property requires the chosen location to meet certain parameters. Fundamentally, the area should have good social infrastructure, availability of adequate public transport and sufficient economic activity to sustain development and growth. These parameters apply equally to investment in NA-certified land approved for residential development and flats in a residential project. In order to mitigate most of the investment risk, one should restrict one’s residential property investment to Tier 1 and select Tier 2 cities. It is also most prudent to invest in properties where the price tag falls between Rs. 2500-5000/sq.ft., since such a price tag provides downside protection against any capital value erosion. Simply put, the cost of construction and minimum cost of land literally makes this price segment safe, and almost guarantees capital appreciation. Further Guidelines...

by A. Shankar, National Director & Head of Operations – Strategic Consulting, JLL India City Expects Investments Of INR 2,076 Crore; Sustainable Real Estate Growth Assured Kochi hits a six to become the next highly preferred real estate destination in India. All potential drivers such as IT development for employment generation, Metro rail for intra-city connectivity, the Smart City tag for basic infrastructure, port-based development for industry and commercial growth, airport terminal for international connectivity and foreign investment and tourism for the hospitality industry are emphasized in Kochi. This will ultimately boosts demand for housing and make it one of the next highly-preferred real estate destinations in India. The 6 reasons why this will happen shortly: 1)             Inclusion in the top 20 Smart Cities: Recently, the Ministry of Urban Development, Government of India identified the top ...

By Ashwinder Raj Singh, CEO – Residential Services, JLL India The luxury segment in the Indian real estate sector is an ever-evolving one. Everything that money can buy is now being made available to buyers who want to live life king size. Sky villas are one of the latest developments on this front. The concept is not new, but borrowed from the more evolved western real estate markets. It has been around in the country for a few years now, and it has gained wide-spread acceptance in recent times. What Is A Sky Villa? Villas and penthouses have for long been marketed to HNI home buyers, but sky villas combine the benefits of both penthouses and villas - along with some additional unique features. Unlike a villa, which is basically a standalone bungalow or a penthouse which is just an apartment on the top-most floor of a high-rise, a sky villa is a humungous multi-level apartment which often covers 2-3 floors. It combines the luxuries of a sprawling bungalow with the advantag...

by Anuj Puri, Chairman & Country Head, JLL India · China’s biggest developer Wanda signed an MoU with Haryana earlier this year; more developers from China and Japan are expected to follow suit ·  Large residential and industrial projects of particular interest Given the current prime minister’s focus on improving India’s stature amongst the global investment community, there has been a big change in India’s image as a business and economic hub. After 100% foreign direct investment (FDI) was allowed into the real estate industry, it was only a matter of time before foreign developers made big investment announcements. One of China’s most prominent developers, Dalian Wanda Group, signed a memorandum of understanding (MoU) earlier this year with the northern state of Haryana to develop ‘Wanda Industrial New City’. The investment of USD 10 billion, phased out over the next decade, is a very significant outlay by any Chinese company in India. Other Chinese developers ar...

by Nirav Kothary, Head – Gujarat Operations & National Director – Industrial Services, JLL India  Gujarat is one of the most industrialised states in India, with a well-earned reputation of being very investor-friendly. The state has a proven track record for attracting high volumes of investment, becoming the most favoured investment destination in India on the back of its sound economic policies and pro-active governance. The Vibrant Gujarat Summit has acted as an effective catalyst for Gujarat’s journey of industry growth, and the 6th edition of Vibrant Gujarat in 2015 saw as many as 21,304 Investment Intentions signed.  The Gujarat Government is developing the only IFC (International Finance Centre) in Gujarat – GIFT City (Gujarat International Finance Tec-City) is an under-construction central business district to be built on 886 acres of land. Additionally, Dholera SIR, the Gujarat affordable housing mission, the Kalpsar Project, PCPIR, DMIC, DFC, High-Sp...

by Santhosh Kumar, CEO – Operations & International Director, JLL India For the last 3-4 years, residential real estate market has seen sluggish demand, which has caused the unsold inventory levels to go up in some of the key Indian geographies. Supply/demand mismatch in terms of price and configurations has been the main reason for the rise in inventory levels. From developers’ point of view, this has eventually resulted in: 1. Correction of prices in many markets in order to improve sales velocity of unsold products 2. Increased project launches with the right configurations to cater to existing demand Interestingly, 2016 had started on a sunny note. The residential real estate market, which had witnessed a slump in project launches in 2015, showed a visible comeback in the first quarter. There was a six-fold increase in launches of the affordable housing projects, as developers predicted greater demand in this highly price-sensitive segment. One way or the other, factor...

by Kishor Pate, CMD – Amit Enterprises Housing Ltd. Thanks to the fact that prices in the residential property sector have bottomed out across most cities, real estate as an investment class is back on the radar. The investment angle aside, buying a property is also on every end user's wish list. While looking for a suitable property either for investment or personal use, there are many factors that should be on one’s checklist before arriving at any decision. One way or the other, location plays an important role in all of them: Look for a safe neighborhood Certainly, you should look for the basic amenities that will provide comfort and convenience to your family or tenants. However, it is even more important to gauge the safety of the neighbourhood. A safe neighbourhood is one where one can move about freely and not remain confined indoors, regardless of the time of day. Pertaining to today’s job environment and also social preferences in terms of enjoying the night...

By Ashwinder Raj Singh, CEO - Residential Services, JLL India All indicators are towards a convincing revival by the end of the year India’s residential property market has been going through turbulent times for past few years. However, things are looking up now with changes in the economy and various initiatives announced by the Government. To understand how various market forces have been making an impact, it is essential to look at the overall economic scenario in the country. Economic Performance: ·         FY 2015-16 saw Indian economy become the fastest-growing in the world with a GDP growth of 7.6%. This, despite adverse global economic circumstances that put a lot of pressure on earnings, exports and overall development. ·         The Government was able to contain the fiscal deficit to the budgetary target of 3.9%, and is working on lowering it further to 3.5% in FY 2016-1...

By Anuj Puri, Chairman & Country Head, JLL India Demand in 2016 pegged at around 10 mn sq ft, supply at 8-8.5 mn sq ft Bengaluru, which has a total stock of 96 million sq ft of grade-A (non-captive) office space, is currently staring at a shortfall in the supply of office space. Barely 4-5% of the total space is vacant for leasing as the tech city has witnessed strong leasing activity in the last few years. Even the existing vacancy is mostly in peripheral areas. In 2015, 14-15 million sq ft got leased out. This includes a good volume of pre-committed space too, which will be occupied over the next two-three years. Interestingly, the trend of leasing remains strong. Although there is demand for 10 mn sq ft, supply of only 8-8.5 million sq ft non-captive office space is expected to come up in 2016. Around 4 million sq ft were leased out by occupiers in 1Q16 alone. Compared to the total leased area in 2015, completion in the city stood at 7.2 mn sq ft last year. Bengaluru...

Mumbai, 21 January 2016: International property consulting firm JLL India has partnered with RICS to publish its latest real estate research report on Capital Market trends in the Indian Real Estate sector. The report 'Peering into 2016: Taking Pulse of Investor Preferences' tunes in to the voice of the investor community to gauge the investment patterns and key investment themes in the Indian real estate for 2016. According to Ramesh Nair, COO & International Director, JLL India: "Private Equity capital has been instrumental in propelling the real estate boom in India, but it is a sector where banking finance has had its own restrictions to cope with. After a relatively muted CY 2013 and CY 2014, PE investors increased their bets into the Indian real estate sector significantly in CY 2015. This report examines the motivations and expectations of PE funds who are now actively ramping up their exposure into this sector." JLL carried out a survey of ...

By Ashwinder Raj Singh, CEO – Residential Services, JLL India The most frequently-occurring type of disagreement in Indian real estate is land dispute. Cases range from of illicit land grabbing and illegal land sales to instances of purchase of land where no actual purchase has taken place – to name just a few. The real estate market has historically been plagued by such issues, and the current government’s initiative of facilitating e-registration to streamline the registration of immovable properties is an extremely progressive move which has been universally welcomed for its transparency and ease of use. E-registration has simplified the process for providing evidence of titles and facilitating transactions, and will go a long way in preventing the unlawful disposal of land. This online registration system effectively put paid to the various underlying problems and loopholes in the traditional land registration process, based on the Land Registration Act of 1925, which typical...

By Anuj Puri, Chairman and Country Head at JLL India JLL Research’s latest report ‘Is Indian Real Estate Heading Towards A Tectonic Shift?’ examines the transitions that India’s real estate has undergone over the past decade. Among the major trends is how developers have been decreasing apartment sizes to suit affordability of buyers. Builders are exploring innovative ways to make residential housing across major cities more appealing to potential buyers at a time when it is increasingly becoming difficult to sell expensive apartments. Around the country, builders are emulating the famous sachet marketing strategy adopted by FMCG companies in the late 1990s. Unable to sell expensive homes in a sluggish market, builders across India are making smaller apartments without lowering the price per square feet and compromising on the quality of product. In the last five years, average apartment sizes falling across all major cities of India. The following chart shows the varying degree...

By Ashwinder Raj Singh, CEO – Residential Services, JLL India The southern neighborhoods of India’s primary cities have always been the poshest, going by the historical evidence. Quite an interesting thing to note, but it stands true nonetheless. These have been most desirable locations for high networth individual home buyers. Such localities have housed the Who’s Who of the city in the past. This phenomenon still continues. However, over time, other areas are competing with these legacy locations and attracting the younger nouveau riche. Most metro cities are seeing the change in preference for location among the affluent class. Extremely limited new supply of residences in prime neighborhoods is the most influencing reason of for HNIs looking at other areas for luxury homes. Considering all aspects, JLL has identified twenty submarkets as the preferred upmarket residential hotspots across the top cities in India. According to JLL India's assessment, these locations of...