Indian Property

By Rohan Sharma, Senior Manager – Research & REIS, JLL India Circle rate is the minimum value at which the sale or transfer of a plot, built-up house, apartment or a commercial property can take place. Market price is the value of such an asset for a transaction between a seller and buyer which is done at an arm length’s principle - with the price determined by the market forces of supply and demand. Circle rates are usually defined by the local state government’s revenue departments or the local development authorities, in line with what they perceive the prices at which property sale or transfer should be undertaken. As such, circle rate is usually a determinant or a reference rate at best. Market rates, on the other hand, are determined by the seller’s expectation of price and the buyer’s inclination to pay. Across all property markets in India, the circle rates are invariably much lower than the actual market rates. This is because: · Circle rates are not reviewe...

By Monesh Bhojwani, Head - JLL Retail Asset Management, Amanora Town Centre (Pune) Image via  Flickr Since the beginning of India’s mall explosion in 1999, fashion retail has been on the forefront of the revolution. When it comes to the overall corpus of retail space transaction happening in the country today, this segment is definitely a leading and highly influential stakeholder. Indians trace back their awareness of and appreciation for international apparel brands to the country’s Colonial times. Today, fashion retail in India is highly competitive and there has been an avalanche of global fashion brands making an entry into the Indian marketplace. Needless to say, the increasingly aspirational Indian shopper community welcomes each new signpost and milestone on the road to organized fashion retail. There is no doubt that cutting-edge fashion will always enjoy a place of honour and high potential in India. The positioning of fashion retail outlets such as shoes ...

By Sanjay Chugh, Head - Residential Services (Bangalore & Chennai) Jones Lang LaSalle India Bangalore has been the fastest growing city of India over the past few decades. Information Technology has been the major growth driver responsible for aggressive real estate development of the city. Being the IT Hub of India, Bangalore has a multi-cultural population, good social infrastructure, excellent educational institutes and an improving physical infrastructure. Currently, the most promising residential micro-markets are Outer Ring Road (ORR), Sarjapur Road, Whitefield and North Bangalore. Bangalore is also the third-largest real estate investment hub for High Net worth Individuals (HNIs) and tops the list in terms of investments from Non Resident Indians (NRIs) looking at settling down in India in the future. The city attracts a sizeable population due to its cosmopolitan culture. Home to over 10,000 individual dollar millionaires, Bangalore has a large base of expatriates livi...

By Om Ahuja, CEO – Residential Services, Jones Lang LaSalle India The current market scenario clearly reflects the market mood. Developers are extending many offers to attract demand, clearly indicating that buyers are in wait and watch mode. Various press articles have been suggesting price correction for over last three quarters, but we have not seen any serious correction in prices (with a few exceptions in some markets). Developers are proffering bundled offers instead of negotiating prices. One such offer is the possession-linked payment plan, in which the buyer pays 20-25% of the apartment cost in advance and the rest on possession. Benefits Of Possession-Linked Plans A critical point here is delivery risk and exposure of credit to developer. Buyers see immense benefits in paying just 20-25% to the developer while booking and paying the balance amount on possession. This eradicates the risk of developer not completing the project on time, and of the developer going bankrupt...

By Rohan Sharma, Senior Manager – Research & Real Estate Intelligence Service, Jones Lang LaSalle India The 250-kilometer stretch between Delhi and Jaipur has become a hotbed for real estate development, with areas like Manesar, Dharuhera, Bhiwadi, Neemrana, Kotputli and Alwar becoming the new catchwords for investors. Highways connecting various towns and cities serve a dual purpose. Not only do they provide good connectivity and accessibility, they also serve as nodes which spur development. Typically, the portions of the highways which abut cities lying on these routes witness hectic development activity right from the time projects are first announced. This activity gather momentum as the highway nears completion. The NH-8 connecting Delhi to Jaipur has seen a similar growth trajectory. Gurgaon, being closer to Delhi and part of NCR, has seen spiralling growth in real estate development. With existing road infrastructure in the form of NH-8 and the Gurgaon city exhau...