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Changing face of property market pre and post-pandemic

Rohan has been working out of his parents’ 2BHK flat in a narrow south Kolkata lane since the past 18 months after his employers in Bangalore offered him the option, given the pandemic situation. However, it has been cramped and depressing at times and even intrusive when neighbours drop in and there’s too little space to manoeuvre. He has now made up his mind to invest in a larger 3BHK apartment in a new gated community coming up not too far from where he lives now, secure in the belief it will boost his productivity while improving his mental health condition as well.

Rohan is not alone. Thousands of people, many of them young professionals, are seeking out new, larger apartments in well-laid-out, formatted residential complexes as the organized realty sector experiences a significant turnaround with Covid fears continuing to wane and life largely back to pre-pandemic normalcy. After a 2-year lull, there has been a sharp rise in real estate demand and prices have been inching northwards, already up 5% over the past 12 months. Rising inputs costs, fuelled by the war in Ukraine, will push real estate prices further up.

Rohan and his ilk are right in their decision in many ways. After almost stagnating for nearly 4 years, property prices have just started moving up, but are still affordable and home loans even at this stage relatively cheaper. But with WFH or work from home being the new normal in many sectors, particularly the IT/ITeS domain, the trend of moving out of rented or smaller properties to a larger gated community has been growing. Market watchers feel this is just the right time to take the plunge since property prices are set for a sharp upturn in sync with rising demand.

The WFH model has ensured that most of the new enquiries are now in the more spacious 3 or 4BHK apartments in the 60 to 70-lakh segment as compared to the previous thrust on 2BHK units, with the ratio almost reversed. Also, with limited spending options during the closures, a lot of people have managed to save up substantially. The series of lockdowns and stifling restrictions have worn people down and everybody is pining for a walk or a jog out in the open while the children can play with gay abandon in the park.

This privilege is possible only in the new-age gated residential complexes coming up, offering all kinds of in-built amenities like greenery and open space for your outdoor exercises, gyms and swimming pools, in-house sports infrastructure like tennis, table tennis, billiards and pool, besides handymen on call to fix any household issue, from plumbing to electrical work. Some of these complexes even come with an exclusive club with multi-cuisine restaurants, bars, salons, etc.

No wonder, this gated format is gaining currency and the early bird is catching the worm while still affordable. Most industry experts opine that present price lines are going to hold for only a few more months, with the increasing buoyancy in the market fueled by a swelling demand as more and more young professionals, offered a hybrid work model, move back to their hometown.

Disclaimer : Information contained and transmitted by us are for information purposes only. All views and/or recommendations are those of the concerned author personally and made purely for information purposes. Nothing contained in the articles should be construed as business, legal, tax, accounting, investment or other advice or as an advertisement or promotion of any project or developer or locality. Pioneer Property Management Ltd. does not offer any such advice. No warranties, guarantees, promises and/or representations of any kind, express or implied, are given as to (a) the nature, standard, quality, reliability, accuracy or otherwise of the information and views provided in (and other contents of) the articles or (b) the suitability, applicability or otherwise of such information, views, or other contents for any person’s circumstances. We shall not be liable nor shall be held responsible in any manner for any action taken based on the published information (whether in law, contract, tort, by negligence, products liability or otherwise) for any losses, injury or damage (whether direct or indirect, special, incidental or consequential) suffered by such person as a result of anyone applying the information (or any other contents) in these articles or making any investment decision on the basis of such information (or any such contents), or otherwise. The users should exercise due caution and/or seek independent advice before they make any decision or take any action on the basis of such information or other contents.

Kshitij: A Getaway to Nature & Tranquility at the Heart of Dumdum by Amaya Realty

Kolkata, also known as the city of joy, is home to many people irrespective of any racial discrimination. Being the cultural capital of India, Kolkata is one of the big metropolises of India which offers livelihood to many, at a reasonable rate. Hence, without a doubt, Kolkata is always busy with the hum-drum of city life. Life in Kolkata can be pretty exhausting if one is not very familiar with the hustle-bustle of city life. Even the habitats of Kolkata cannot escape the monotony of the traffic bustles and concrete jungle that the city has turned into.

Greenery and fresh air is a rare luxury which only a few can rejoice. However, the significance of nature is indispensable for the sustenance of human life. As a matter of fact, staying close to nature not only boosts our creative skills but it also gives us the energy to fight the mundane of professional and personal life.

“Dumdum” is situated in the northern part of the city, and it is one of the oldest localities of Kolkata which connects the metro city with its major suburbs in the north and also is the origin of India’s first metro railway route. As a development drive, the landscape of dumdum has gone through a lot of transformations though without affecting its serenity and green landscapes. Alike other parts of the city, “Dumdum” has also witnessed numerous real estate developments in the recent past, promising high life to preferred buyers.

Therefore, if one is looking for High-Life, away from the humdrum of the metro city but very much within the city limits, exploring the peace and tranquility that nature has to offer then – “KSHITIJ” is The Destination.

Strategically located at the heart Dumdum, Kshitij is a well-thought offering by some of the renowned developers of eastern India: Prudent Infra Realty, Space Group & Empress Group (Collectively known as Amaya Realty). Kshitij brings luxury homes and a host of higher-order recreation and lifestyle offerings all in one place. The project offers 3 & 4 BHK luxury apartments to enhance your lifestyle, amidst the green! Covering over 1.89 acres of land, Kshitij is an epitome of spacious living. With more than 184 apartments and with an elevation of three G+11 towers, Kshitij symbolizes grandeur and luxury at the same time. Serving as a landmark, this residence offers spacious interiors, comfortability, with rooms meticulously designed in a manner that there is an abundance of natural light ushering in. One can enjoy brilliant sights during the day and night, as the area is surrounded by lush foliage.

Staying at Kshitij will never let you feel tedious or monotonous! Equipped with all the state-of-the-art amenities, there is something for everyone. One can engage themselves with the plethora of activities that Kshitij has to offer. A world in itself, the project has a gym to keep you fit, a variety of fun and stimulating games such as squash and snooker at the indoor games room, a lounge aesthetically designed to refresh your mind where you can enjoy freshly brewed beverages and read books, & a massage room to get away from your exhausting work-life, Kshitij has it all! Apart from these, Kshitij offers a kid’s library and Kid’s play area, swimming pool, a mini theater, and a clubhouse for you and your children. All the amenities are designed to fill your leisure with amusement and fun.

Kshitij neighbours all the basic resources one needs. Starting from schools to colleges, banks, hospitals, pharmacies, shopping malls, groceries, etc. are at a stone-throwing distance from the project.
There are more than 40 doctors out of the 120 families that are residing at Kshitij. These doctors are associated with all the major hospitals of Kolkata: ILS Hospital, AMRI Hospital, N.R.S Hospital and Apollo Gleneagles Hospital.

On a whole, Kshitij is a complete and comfortable residence that offers a vibrant and joyful community life full of luxury and serenity, with spaces that will ensure leisure and entertainment; and let your thoughts flow freely. More than a hundred families already living here are enjoying every bit of the offerings.

Come be a part of Kshitij!

Disclaimer : Information contained and transmitted by us are for information purposes only. All views and/or recommendations are those of the concerned author personally and made purely for information purposes. Nothing contained in the articles should be construed as business, legal, tax, accounting, investment or other advice or as an advertisement or promotion of any project or developer or locality. Pioneer Property Management Ltd. does not offer any such advice. No warranties, guarantees, promises and/or representations of any kind, express or implied, are given as to (a) the nature, standard, quality, reliability, accuracy or otherwise of the information and views provided in (and other contents of) the articles or (b) the suitability, applicability or otherwise of such information, views, or other contents for any person’s circumstances. We shall not be liable nor shall be held responsible in any manner for any action taken based on the published information (whether in law, contract, tort, by negligence, products liability or otherwise) for any losses, injury or damage (whether direct or indirect, special, incidental or consequential) suffered by such person as a result of anyone applying the information (or any other contents) in these articles or making any investment decision on the basis of such information (or any such contents), or otherwise. The users should exercise due caution and/or seek independent advice before they make any decision or take any action on the basis of such information or other contents.

Covid-19 Triggering The Demand Of Residential Real Estate!

In the recent past India, and every other nation has witnessed history, the spread of Covid-19 have forced everyone to stay at home. Lockdown seemed to be the only option to check the virus from spreading more. Working from home was the only option to keep the economy rolling. As the grown-ups were working from home, the kids were also having their school and tuitions over the internet. With the long stretch of the lockdown, people started looking for an escape from the monotony of staying at home: as a matter of fact, home was the only escape from mundane of professional life before the lockdown started. It was the lockdown that has made people realise the importance of owning a spacious home.

Despite of all the challenges that the pandemic has thrown at us, 2020 became the most favorable time for investing in real estate, since 2017. With the rising demand for space and the developers showcasing their generosity, the government amending their regulations to support the real estate industry- the real estate industry saw a real surge in the demand for new properties.

According to an internal survey: majority of the participants who polled and were professionals with more than 10 years of experience, preferred to buy an apartment rather than renting one, in the next six months. Further, two-third of them thought that buying a new home has become a necessity, not a luxury anymore!

As per our internal survey, conducted during the lockdown- two out of ten participants who were not planning to buy a new home earlier were interested in buying.

People are looking for new homes because they want to adapt themselves to the ever-changing needs of the situation: they want to have enough space for themselves and their family to be able to work/study as well as get some personal space. The uncertainty about rental properties has also become a point of concern during the pandemic. Hence people started realizing that it is better to pay EMI and have an asset rather than having a rental liability.

Other popular investment asset classes such as stocks and gold are quite volatile and unpredictable in the time of pandemic. Paying the EMI for a house has dual benefits. It not only gives a month of shelter but also increases the proportional ownership of the house. Additionally, home loans come with attractive tax benefits; rental housing does not. Housing retains its intrinsic value in uncertain times and eventually appreciates when times improve.

In the year 2020 the repo rate, which is directly linked with home loan interest rate, is remarkably low. As a matter of fact, this repo rate is the lowest in the last 20 years. The interest rate in 2020 is 6.85%, while in the year 2019 the same interest was between 8.55% to 8.75%. It can be said that this is the best interest rate witnessed in the past two decades.

No GST on ready to move in properties! Projects that have received their completion certificate will be exempted from GST charges: this has not only amplified the buying sentiments of the consumers but it has also offered them a huge relief.

Low booking amounts, attractive offers and tantalizing referral schemes are just some of the various offers on the table for the discerning homebuyers right now. Ready to move in flats are moving more quickly as of now since there is no GST, while assuring prospective home buyers of being able to move in as soon as they want.

Keeping all this in mind, most of the renowned developers of eastern India are offering ready to move in flats at attractive prices at convenient locations, projects like- Prudent PranaImperial Riddhi SiddhiAltiusKshitijTwo Janki ShahAtmosphereMerlin IlandMerlin MaximusIdeal AurumAurumTata AvenidaStarom MilleniaVinayak Golden AcresVinayak River LinksEco ValleyOriental PalmsUtalikaAvidipta – IIBally Lake CountySiddha HappyvilleThe SoulRajat AvanteWhite MeadowsMerlin Elements. All these projects offer large living spaces and excellent social infrastructure for creating better communities and a better sense of social security.

Disclaimer : Information contained and transmitted by us are for information purposes only. All views and/or recommendations are those of the concerned author personally and made purely for information purposes. Nothing contained in the articles should be construed as business, legal, tax, accounting, investment or other advice or as an advertisement or promotion of any project or developer or locality. Pioneer Property Management Ltd. does not offer any such advice. No warranties, guarantees, promises and/or representations of any kind, express or implied, are given as to (a) the nature, standard, quality, reliability, accuracy or otherwise of the information and views provided in (and other contents of) the articles or (b) the suitability, applicability or otherwise of such information, views, or other contents for any person’s circumstances. We shall not be liable nor shall be held responsible in any manner for any action taken based on the published information (whether in law, contract, tort, by negligence, products liability or otherwise) for any losses, injury or damage (whether direct or indirect, special, incidental or consequential) suffered by such person as a result of anyone applying the information (or any other contents) in these articles or making any investment decision on the basis of such information (or any such contents), or otherwise. The users should exercise due caution and/or seek independent advice before they make any decision or take any action on the basis of such information or other contents.

Bengal Realtors Brace for Sales Growth with Digital Campaign

West Bengal’s real-estate developers are witnessing a ‘slow revival in sales’ after lockdown rules eased, a builders association has introduced a ‘digital’ campaign to woo buyers, the industry sources confirmed on Wednesday.

Developers recently claimed that nearly 2,100 [inventory] units, that remained unsold, have now been acquired by individuals, & there might be a 10-12% price jump for the new ones.

“There’s an encouraging sign of a recovery since the unlock came into effect,” said officials, (CREDAI) West Bengal, the apex real-estate body in the state.

The industry witnessed an uptick in the number of housing sales.

“After almost three months of lockdown, we’re seeing the beginnings of a recovery in residential sales. Though we’re yet to bounce back pre-COVID levels, the market appears to be ‘stabilising’ day by day,” as per CREDAI West Bengal.

The West Bengal real-estate industry has equally hit hard by coronavirus crisis and developers had sold units ‘either with no margins or at a loss on most of their projects’, confirmed CREDAI West Bengal.

During the lockdown period, the introduction of “Only 16 Projects” as against 45 launches over the same time period in 2019, unfortunately, bears testimony of this trend. That will continue till Sept 2020, it added.

 

Disclaimer : Information contained and transmitted by us are for information purposes only. All views and/or recommendations are those of the concerned author personally and made purely for information purposes. Nothing contained in the articles should be construed as business, legal, tax, accounting, investment or other advice or as an advertisement or promotion of any project or developer or locality. Pioneer Property Management Ltd. does not offer any such advice. No warranties, guarantees, promises and/or representations of any kind, express or implied, are given as to (a) the nature, standard, quality, reliability, accuracy or otherwise of the information and views provided in (and other contents of) the articles or (b) the suitability, applicability or otherwise of such information, views, or other contents for any person’s circumstances. We shall not be liable nor shall be held responsible in any manner for any action taken based on the published information (whether in law, contract, tort, by negligence, products liability or otherwise) for any losses, injury or damage (whether direct or indirect, special, incidental or consequential) suffered by such person as a result of anyone applying the information (or any other contents) in these articles or making any investment decision on the basis of such information (or any such contents), or otherwise. The users should exercise due caution and/or seek independent advice before they make any decision or take any action on the basis of such information or other contents.

Joka: A Rising Realty Hotspot in Kolkata

Kolkata, the capital of West Bengal, is considered as the third most-densely inhabited city of India, after Mumbai and Delhi. According to statistics, Kolkata’s population stands at around 15.8 million. It has an employment rate of 36.8 percent, resulting in a growing demand for residential real estate in the region. The intervention of healthy participation from investors has meant that Kolkata is witnessing continuous growth in real estate sectors.

Owing to its planned infrastructural development, Kolkata has a variety of residential options, from affordable to premium and luxury. Improved connectivity, affordability of land and well-planned world-class infrastructural developments, are boosting the demand for real estate in the peripheral areas of Kolkata. Upcoming projects like the metro rail constructions will further improve connectivity across the city and key micro-markets like Joka, New Garia, Dum Dum and Noapara. Joka, in south-west Kolkata, has emerged as a high-growth living paradise for all in the city. It has transformed into a most attractive residential hub.

Why Joka?
Joka is a promising area in south-west Kolkata and has a rapidly-growing real estate market. The development of the metro rail routes from Joka to different parts of the city has resulted in an increase in demand for residential properties in that area. With the presence of all major public transport options and metro connectivity, Joka is well-connected to areas such as Esplanade, Howrah, Sealdah and other parts of Kolkata. Joka is also connected to Kolkata through the four-lane Diamond Harbour Road and the four-lane James Long Sarani. The Joka-BBD Bagh Metro network’s construction will further boost connectivity which will result in a high demand for luxury living in the area.

Social infrastructure in Joka:
Several renowned educational institutes are located in Joka. IIM Calcutta, S Pailan World School, Gems Academia, Kolkata Model School, Delhi Public School, Kendriya Vidyalaya, and Vivekananda Mission School, are some of the well-known educational institutions in Joka. Some of the best medical and diagnostic institutes and hospitals in this region, such as ESI Hospital, BMRI Hospital, and Humanity Hospital, further elevate Joka’s popularity as an emerging residential hub.

The metro rail project, comfortable and convenient connectivity to hospitals, banks, markets, grocery stores and educational institutes along with a good local transportation system have fueled the demand for property in Joka. It can be expected that property prices in Joka will increase steadily, owing to this demand, along with other parts of the city. Apart from infrastructural development, Joka also offers a serene environment to its homebuyers. Located away from the hustle and bustle of the city, Joka provides all the comforts of modern living. It offers a diversified range of properties from affordable, as well as luxury homes and innovatively structured theme-based residential spaces. In a span of few years, Joka has emerged as ‘the next big topic of discussion’ in Kolkata’s real estate market, driven by demand from buyers who dream for lifestyle accommodation at an affordable price range.

Kolkata’s real estate market is witnessing a fast transformation and great innovation. Joka will soon transform into a fast-growing planned residential hub with world-class amenities and facilities. Each and every residential project is aiming at creating an eco-friendly environment for the residents; with spacious apartment clubs, beautifully landscaped gardens and swimming pools. Real estate investors, consulting firms and developers are eagerly looking forward to high economic growth from this part of the city.

Disclaimer: All the facts and figures are based on secondary research. Pioneer Property Management Ltd. holds no responsibility for the reliability and authenticity of the data. Data may fluctuate on the subject to market trends, market conditions, demand-supply, and various other factors. This report intends to give an overall idea about the current situation of the industry. Readers are advised to take their sole decisions before investing in the market and not to rely solely on this report. <

Disclaimer : Information contained and transmitted by us are for information purposes only. All views and/or recommendations are those of the concerned author personally and made purely for information purposes. Nothing contained in the articles should be construed as business, legal, tax, accounting, investment or other advice or as an advertisement or promotion of any project or developer or locality. Pioneer Property Management Ltd. does not offer any such advice. No warranties, guarantees, promises and/or representations of any kind, express or implied, are given as to (a) the nature, standard, quality, reliability, accuracy or otherwise of the information and views provided in (and other contents of) the articles or (b) the suitability, applicability or otherwise of such information, views, or other contents for any person’s circumstances. We shall not be liable nor shall be held responsible in any manner for any action taken based on the published information (whether in law, contract, tort, by negligence, products liability or otherwise) for any losses, injury or damage (whether direct or indirect, special, incidental or consequential) suffered by such person as a result of anyone applying the information (or any other contents) in these articles or making any investment decision on the basis of such information (or any such contents), or otherwise. The users should exercise due caution and/or seek independent advice before they make any decision or take any action on the basis of such information or other contents.

Kolkata Real Estate Market

Kolkata is presently home to more than 15.5 million residents and the number is summing up. One of the well-known cultural capitals of India, Kolkata has immerged as a thriving job market for people from all diversity in the past few years. Real estate has emerged as a very successful business in Kolkata and the realty segment of the city offers a wide range of options, i.e. properties available on rent, lease and purchase.

Residential apartments, office spaces, industrial setups, independent homes, commercial spaces, and lands constitute to realty market significantly. Most of the property transactions are facilitated by professional real estate consultants. Interests of multinational organizations have changed the outlook of people towards commercial real estate in Kolkata, and this has contributed to an increase in the property value in more positive way. The retail segment remains one of the top favorites of home buyers and hospitality business ranks second. In recent times, Kolkata has also witnessed the construction of some sky-scraping shopping malls and hotels. A hike of 5-15% on the capital value of residential properties expected in the near future.

Property Distribution- Capital Value In terms of property market trends, the City of Joy is poised to attract potential home buyers with its wide variety of housing options, from affordable to premium as well as luxury. The north-east Kolkata to New Town and south-west Kolkata to Joka regions in Kolkata are driving housing demands, and are key property corridors in the city. Housing projects in Kolkata are equipped with better connectivity due to planned and upcoming metro rail projects, and the development of social infrastructure. Commercial and IT/ITES hubs coming up in the extended part of Kolkata are fueling affordable housing hot spots as well as luxury living areas too. Most of the young aspirant residents of Kolkata are realizing their dream of being homeowners in the residential projects all around Kolkata driven by the affordability and quality of life that the city offers.

Demand Distribution of Properties:

The stability of the real estate market of Kolkata can be understood by this fact that even the global recession period could not disturb the real estate industry here. Undoubtedly, Kolkata realty sector is buzzing with new projects that have acted as a catalyst among the buyers and investors. Builders in Kolkata have received a heart-whelming response from the investors for sky-scrappers and other high-rise buildings, thereby boosting demands for properties. The demand for properties is soaring high with different space range.

Kolkata’s present infrastructure and connectivity have played an important role to boost up the real estate sectors. Kolkata Municipal Corporation is working on a number of projects for adding values to infrastructure within and beyond the city limits. One such development is the East-West Metro Corridor that starts from Howrah Maidan to Salt Lake sector V via Teghoria. Also, the metro rail network, which is India’s oldest metro network, is all set to expand and five new metro lines are planned, which will connect the IT hubs at Salt Lake, Noapara, New Town and Joka. All in all, it can be concluded that the growth in the realty segment of Kolkata is mainly attributed to the following factors:

– Lower land acquisition costs compared to other metros.
– Lower asset costs.
– Presence of scalable infrastructure.
– Active involvement of government authorities with several initiatives and policies.
– Increase in demand and price of properties.
Disclaimer: All the facts and figures are based on secondary research. We hold no responsibility for the reliability and authenticity of the data.

Disclaimer : Information contained and transmitted by us are for information purposes only. All views and/or recommendations are those of the concerned author personally and made purely for information purposes. Nothing contained in the articles should be construed as business, legal, tax, accounting, investment or other advice or as an advertisement or promotion of any project or developer or locality. Pioneer Property Management Ltd. does not offer any such advice. No warranties, guarantees, promises and/or representations of any kind, express or implied, are given as to (a) the nature, standard, quality, reliability, accuracy or otherwise of the information and views provided in (and other contents of) the articles or (b) the suitability, applicability or otherwise of such information, views, or other contents for any person’s circumstances. We shall not be liable nor shall be held responsible in any manner for any action taken based on the published information (whether in law, contract, tort, by negligence, products liability or otherwise) for any losses, injury or damage (whether direct or indirect, special, incidental or consequential) suffered by such person as a result of anyone applying the information (or any other contents) in these articles or making any investment decision on the basis of such information (or any such contents), or otherwise. The users should exercise due caution and/or seek independent advice before they make any decision or take any action on the basis of such information or other contents.

Journal of Pioneer Property Management Limited

Consumer Buying Preferences at New Town Rajarhat Kolkata

Journal of Pioneer Property Management Limited

Indian real estate faces its most challenging situation as a result of policy reforms and geopolitical situation, which impacted the macroeconomic scenario to the point where the Indian economy is in the throes of an economic slowdown with subdued investment and muted consumption.

Economic Crisis Revival through Real Estate

Indian real estate faces its most challenging situation as a result of policy reforms and geopolitical situation, which impacted the macroeconomic scenario to the point where the Indian economy is in the throes of an economic slowdown with subdued investment and muted consumption. The economic policy reforms have led to an operational crisis in real estate.

It was yet to recover from the impact of Demonetization, RERA, WB-HIRA, and GST, when housing finance companies and non-banking finance companies (NBFC) blow-out added to the woes. All these put together choked liquidity and roll over, affecting the functioning of real estate as a business. A series of short-term measures have the potential to not only bring back to life the beleaguered Indian Real Estate by giving it an opportunity to bounce back but can also lead to enhanced employment and demand generation, effectively ensuring double-digit GDP growth.

Industry leaders have been frequently flagging rising concerns, the moot point being that revival solutions if implemented correctly and in a timely manner could be a savior. Several fiscal stimulus measures such as stressed funds and corporate tax cuts have been positive moves towards healing the industry which is suffocating. It’s a welcome move that the government has announced Rs. 25,000-crore stress fund, which will help to resolve homebuyers’ and industry stakeholders’ woes.

The following steps if implemented on an immediate basis will give a “leg-up” to the economic recovery:

– Tax Realization.
– Rental Shock creation.
– Zero GST.
– One Time Roll Over by RBI.

The above Graph shows that projected India’s economic growth was estimated to be 7.3% in 2018-19, but it stood at 6.9 % in actual realization. According to the IMF, India’s economic growth decelerated for the second consecutive year. In 2018-19, it stood at 6.8 %, down from 7.2 percent in the 2017-18 financial years. The inflation averaged 3.4 % in 2018-19 and remained well below the RBI’s mid-range target of 4%. The World Bank report also noted that the current account deficit had widened to 2.1 % of the GDP in 2018-19 from 1.8 % a year before, mostly reflecting a deteriorating trade balance.

Real Estate Sector

The real estate sector is one of the most globally recognized sectors. The real estate sector comprises four sub-sectors – housing, retail, hospitality, and commercial. The growth of this sector is well complemented by the growth of the corporate environment and the demand for office space as well as urban and semi-urban accommodations. The construction industry ranks third among the 14 major sectors in terms of direct, indirect and induced effects in all sectors of the economy. The real estate sector in India is expected to reach a market size of US$ 1 trillion by 2030 from US$ 120 billion in 2017 and contribute 13 percent of the country’s GDP by 2025. Retail, hospitality and commercial real estate are also growing significantly, providing the much-needed infrastructure for India’s growing needs. Out of the two cornerstones in Real estate, i.e. residential housing commercial real estate; the residential housing sector has been a slow path for nearly a decade now.

– One of the biggest real estate trends of last year and a major sign of revival for the Indian property market was the increase in investments by foreign investors. An increase in India’s credibility has made it an attractive destination for global institutional investors.

– The office space development and leasing have witnessed steady upward growth, while the residential segment has recorded below moderate growth.

– Total wealth held by individual investors in the Real estate was Rs. 74.52 lakh Cr. with a growth of 7.13% in FY19.

Future of Indian Real Estate Investment:

1. Commercial Real Estate:

– Pre-leased Commercial Real Estate (CRE) provides high rental yield in the range of 6% to 8% combined with the expectation of reasonable capital gains would take the gross IRR to 9% to 12% in long term.

– Low to medium risk, with stable debt-like return during the entire holding period along with lease accelerations, makes it an attractive investment option.

2. Warehousing:

– The total warehousing space has been estimated to be 68 million sq. (739 million sq. ft.) in 2019 for the manufacturing sector and it is projected to grow at a CAGR of 5% in the next five years to 86 million sq. m. (922 million sq. ft.) by 2024. – With e-commerce players expanding operations across the country, there has been a corresponding rise in demand for warehouse space from these companies in both tier I and II markets.

3. Co-Living and Student Housing:

– Co-living is a new-age, shared economy business enabled by technology, proving affordable housing solutions to the migrant urban youth in the age group of 18-35 years of both students and working professionals.

– The co-living segment is expected to offer a business opportunity of 1lakh Cr. by 2023 as demand for shared rental space is rising.

– Student housing sector is expected to grow at 38% CAGR until 2020, to reach Rs.2400 Cr. which is a yield of more than 12%.

So, specific sub-sectors like commercial real estate, warehousing, student housing, and co-living hold good opportunities for investors.

Types of Real Estate Funding:

The graph below shows the growth trend of Physical assets for the last five years. The line is on the upward direction, indicating a growth in the physical asset acquisition over the years.

TYPES OF REAL ESTATE FUNDING- PERCENTAGE SHARE

Sectors directly associated with the Real Estate Sector:

Office Sectors in India:

City Wise Retail Spending: (Five Years Span Analysis)

Convergence of Online and Offline Platforms:

India is one of the fastest-growing e-commerce markets in the world, with millions of new internet users joining the bandwagon every year. The total internet audience in India is estimated to surpass 635 million online users by 2021. Also, developers are trying to leverage the competitive advantage of brick-and-mortar experience and have adopted various approaches for creating these experiences, including investment in creative design, events and common spaces.

Tenant strategies such as pop-ups by these e-commerce players are becoming more commonplace to create an element of surprise and draw in traffic. The figure above shows the estimated percentage share of online retail sales in India and its estimated value in USD.

Real Estate Investment Trust (REIT) becoming a reality:

As the sector gets more organized, HNI and non-resident Indians (NRI) investors are realizing that instead of taking on the pain of directly buying, managing and maintaining commercial properties, they can also participate through REIT.

Logistics Sectors: Supply Demand Dynamics

The year 2019 was remarkable for the logistics market in the country. Following the expected trend, 3PL, e-commerce and engineering and manufacturing drove demand during this year.

Revenue and Profit for different Sectors:

Debt-to-Equity across key capital intensive sectors:

Most capital-intensive and stressed sectors have seen improving credit profiles among their corporates, as highlighted in the table below. Healthy rise in profitability and cash flow, especially in key stressed sectors, has resulted in improving credit profiles of companies.

PSB in agreement with Magicbricks to e-auction:

(Source: IBEF)

Government Initiatives:

The Government of India along with the governments of the respective states has taken several initiatives to encourage the development in the sector. The Smart City Project, where there is a plan to build 100 smart cities, is a prime opportunity for real estate companies. Below are some of the other major Government Initiatives:

– Under the PradhanMantriAwasYojana (PMAY) Urban, more than 8.09 million houses have been sanctioned up to May 2019.

– In February 2018, the creation of the National Urban Housing Fund was approved with an outlay of Rs 60,000 crore (US$ 9.27 billion).

– Under the PradhanMantriAwasYojana (PMAY) Urban 1,427,486 houses have been sanctioned in 2017-18. In March 2018, construction of additional 3,21,567 affordable houses was sanctioned under the scheme.

Government sets up fund to revive stalled projects:

In order to revive around 1,600 stalled housing projects across the top cities in the country, the Union Cabinet has approved the setting up of Rs. 25,000 cr. (US$ 3.58 billion) alternative investment fund (AIF). Finance Minister Ms. Nirmala Sitharaman said that the AIF will act as a special window to offer priority debt financing for completion of projects in the affordable and middle-income categories. The funding will only be received if the project is registered under the Real Estate (Regulation and Development) Act or RERA.

This move by the government is expected to give significant relief to home buyers as well as businesses. There are several types of funds under this category such as real estate funds, private equity funds (PE funds), funds for distressed assets and so on. According to the initial estimates by the finance ministry, it is expected that the AIF will be targeted at completing around 1,600 stalled real estate projects that include over 458,000 unfinished units. The target is at affordable and middle-income housing units; thus, the fund will address residential properties in Mumbai that are priced below Rs 2 cr. (US$ 0.29 million).

The cap for other metros like Delhi, Kolkata, Bengaluru, and Chennai, among others, has been set at Rs 1.5 cr. (US$ 0.21 million) and for smaller cities; it is at Rs 1 cr. (US$ 0.14 million) per unit. Leading banks and Investment Corporation will provide an additional fund of Rs 15,000 cr. (US$ 2.15 billion) to the Category-II AIF, which will be managed by the bank itself, along with the initial contribution of Rs 10,000 cr. (US$ 1.43 billion) from the government which will act as a sponsor.

 

Disclaimer : Information contained and transmitted by us are for information purposes only. All views and/or recommendations are those of the concerned author personally and made purely for information purposes. Nothing contained in the articles should be construed as business, legal, tax, accounting, investment or other advice or as an advertisement or promotion of any project or developer or locality. Pioneer Property Management Ltd. does not offer any such advice. No warranties, guarantees, promises and/or representations of any kind, express or implied, are given as to (a) the nature, standard, quality, reliability, accuracy or otherwise of the information and views provided in (and other contents of) the articles or (b) the suitability, applicability or otherwise of such information, views, or other contents for any person’s circumstances. We shall not be liable nor shall be held responsible in any manner for any action taken based on the published information (whether in law, contract, tort, by negligence, products liability or otherwise) for any losses, injury or damage (whether direct or indirect, special, incidental or consequential) suffered by such person as a result of anyone applying the information (or any other contents) in these articles or making any investment decision on the basis of such information (or any such contents), or otherwise. The users should exercise due caution and/or seek independent advice before they make any decision or take any action on the basis of such information or other contents.

Top 12 Home Design Hacks Based on Your Zodiac Sign

Home styling involves ‘variety’ and for indulging into a gamut of variety, your zodiac sign can be pretty handy. Different zodiac signs exhibit diverse personality traits and can be deemed to be necessary resources that leverage synergies in terms of crafting innumerable designs and intriguing settings for your sweet home.

Aries

If you are an Aries, you know you are motivated, passionate and confident with relentless determination. Also, you are quite direct and uncomplicated in your approach. Going by this, your home should have modern features with clean lines.

Especially when it comes to color, a signature hue of red, shots of crimson or hot pink keeps you driven. You have an undaunted competitive spirit in you. There is an instinct to decorate your home with symbols of your conquests, inspirational quotes, mementos or trophies that makes great home accessories.

Many Aries women are entrepreneurs, so build a lot of bookshelves as you love to read. You love to maintain a frantic pace and are highly creative. So you can transmute an extra room into a painting studio or dance area.

Taurus

You are sensual and tuned to physical pleasures. Every detail counts for you and you will invest in the best of everything. You have a natural stride towards beautiful things and your home becomes a canvas for your expression.

When it comes to decoration, only miniatures do not satisfy your detailing quotient. You love larger artwork pieces and appreciate items that have history and sustenance. You also relax in style and elegance. Persian rugs and deep leather sofas align with your likings.

Comfort is your staple. Thus, your bedroom needs to be out of the box. 600 thread-count bed sheets or linen sheets, down pillows and a dynamic mahogany frame are crucial for your indulgence to unfettered comfort.

Gemini

You are flamboyant, diverse, ever-changing and distinctively creative. Coming to colors, fun and vibrancy are part of your home. You can rock combinations like orange and lavender or hot pink with chartreuse.

Your soul craves and reflects a duality. Thus, mirrors can be contemplated as good elements for your home décor. Beautifully crafted mirrors create the illusion of space that matches exactly with the dual persona.

You are a fun-loving person and like to socialize profusely. So you get less time for flowering but your craving for flowers can be met by artificial flowers. Select hand-picked artificial plants that would serve as the perfect solution.

The kitchen is a space for quick preparation for your guests arriving unexpectedly. Your kitchen should be simple with light wood, minimal accessories and have bright colors.

Cancer

You are ultra-sensitive, gentle and kind. You are also tender, intuitive and loving. Nurturing is in your blood and so your home environment must be an inviting one where bonding can take place. Your living space should radiate a feeling of safety, hospitality, and warmth.

You associate a strong attachment to the past. You have an affinity to all things that look, feel and are old. Hence, you can decorate your room with antiques. Vintage furniture is another favorite.

Flowers and plants are prominent features of your home. You prefer potted plants to cut ones. This is because this allows you to grow and nurture. Your favorite color is probably white and you can indulge in white lilies for that matter.

Leo

You are born leaders. You are creative, self-confident, dominant and responsible. A humble yet luxurious boudoir, your home will be filled with vibrant elements. Bright yellows along with golden oranges or marigold can be regarded as best color combinations as you are ruled by the sun.

As a fire sign, you need a playful and inviting den or sitting area especially if it has a working fireplace. Your bedroom is private, personal and warm. Your bed gets most of the attention due to its demanding boldness and size. The frame of the bed is usually immense, striking and extravagant.

A Leo kitchen is modern and utilitarian in style. Your kitchen is fully stocked with trendy and space-saving accessories. Of course, these accessories are of the finest brands available in the market as you are fascinated by big brands.

Virgo

You are a humble person and a perfectionist. Cleanliness is your intrinsic attribute and a single piece of dirt irritates you. Entering your home is synonymous with a religious experience. A clean and natural look works best for you.

Your furniture should be basic and comfortable and don neutral colors like celadon green, white or dove gray. You try to avoid heavy antiques, overly plush carpets and anything too decorative. You are always promising to your closest friend and family. Good company soothes your soul.

Thus, if you have a big kitchen, set up a cozy nook with a beautiful table where you can share a long conversation or curl up with a great with a nice cup of coffee. To continue your endless decorating adventures, invest in beautiful towels and soaps in your bathroom.

Sagittarius

The words that can be associated with you are freedom, expansion, learning, and travelling. You love outdoors and wide-open spaces. So bring the outdoors in. Indulge in an indoor garden.

Your love of learning directs that your room should be spacious enough for all your books, travel treasures and the varied projects that you work on at any given time.

You also rule religion. So, you can adorn your home with statues of gods or goddesses. Your color craving is also dynamic. You love bright colors like hot pink, orange or chartreuse.

Please do not bother to invest in expensive and fussy furnishings since you will have many visitors. Your main investments should be a comfy couch, great lighting, and an informal dining table. You can get creative from there.

Capricorn

You are ambitious, persistent, realistic, sensitive, practical and disciplined. You will strike an attractive balance by indulging in a classic, modern, comfortable and utilitarian design.

You are the “father” sign and your furniture reflects the same. Grandfather clocks, large armoires, leather sofas or a mahogany cabinet are some elements that you would always prefer and indulge into.

As you are hard-working, you value craftsmanship. You love creating art and showpieces. A great work area is also very important for you. You can invest in a heavy executive-style wooden desk with a leather chair as support.

You are nostalgic too. Hence, you can incorporate family pieces, framed photos, and memorabilia. You can also proudly display your achievements and accomplishments.

Aquarius

You have your quieter side but also have great wit and intelligence. You look at the world full of possibilities. So keep the colors of your room vibrant and energetic. You are the water-bearer sign.

So indulge in vases and urns in your room. You love vibrant hues and colors of ocean-like salmon, violet, and blue. As an air sign, I also need roomy space with a lot of ventilation. To create the airy feeling of space you crave, you love sunlight, dangling plants, big windows, and hanging pots.

You barely sleep. Thus keep your bedroom simple. Rather turn your bedroom into a home office. Invest in a grand desk or computer and also indulge in nice and big speakers.

Pisces

You belong to the water element of the zodiac. Your sense of style is unique as you tastefully decorate every room. To compliment your spiritual side, indulge in silk meditation pillows, natural fibers and serene sea colors like lilac or celadon green.

As you are a water sign, you might live near water or indulge in a decorating scheme with a Zen fountain or an aquarium. Your living room is embedded with a sensual vibe and you love to give a sensuous touch by installing scented candles.

Home to you is an abode to daydream. So fill your room with beautiful music or just keep with the resonant sound of silence.

Libra

You are the most artistic sign of the zodiac. Your home must have a perfect balance of beauty, harmony, and peace. Your styling philosophy is ‘less is more’. Art and ornaments must be kept to the minimum for maximum impact. Central eye-catching pieces that calm the senses are an excellent choice for your living room especially.

You rule relationship. To make sure your home accommodate a relationship, decorate with pairs. Indulge in two bedside tables or install matching vases to conjure the energy of the relationship. You also like a clean and uncluttered environment. Allow yourself to good organization.

Scorpion

You are famously enigmatic with dark undertones. You can easily be the center of attraction or be a silent observer at the same time. Going by this, you prefer darker shades in all colors. The colors that you prefer mainly are deep viridian blues or rich ruby red.

You are also cypher-like. You fiercely guard your privacy and this is reflected in the little nooks and deep corners. Plush sofas, delicate curtains, and subdued lighting are some typical features that your home will flaunt.

For many of you, the bedroom is a sanctuary. Most of you will like a bedroom with blackout curtains and an attached balcony. Classic canopy beds featuring antique light fittings are favored significantly.

 

Disclaimer : Information contained and transmitted by us are for information purposes only. All views and/or recommendations are those of the concerned author personally and made purely for information purposes. Nothing contained in the articles should be construed as business, legal, tax, accounting, investment or other advice or as an advertisement or promotion of any project or developer or locality. Pioneer Property Management Ltd. does not offer any such advice. No warranties, guarantees, promises and/or representations of any kind, express or implied, are given as to (a) the nature, standard, quality, reliability, accuracy or otherwise of the information and views provided in (and other contents of) the articles or (b) the suitability, applicability or otherwise of such information, views, or other contents for any person’s circumstances. We shall not be liable nor shall be held responsible in any manner for any action taken based on the published information (whether in law, contract, tort, by negligence, products liability or otherwise) for any losses, injury or damage (whether direct or indirect, special, incidental or consequential) suffered by such person as a result of anyone applying the information (or any other contents) in these articles or making any investment decision on the basis of such information (or any such contents), or otherwise. The users should exercise due caution and/or seek independent advice before they make any decision or take any action on the basis of such information or other contents.