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@torbitconsultants
Sahiloans: Torbit’s All New Initiative For Home Loan Seekers
Torbit Consulting has come up with its new initiative to offer best practices while opting for home loan or bank finance named "Sahiloans".
Sahiloans is a premier online platform for prospective homebuyers for providing them a transparent and simplified home loan experience
Home Loan Solutions, Learn how Sahiloans can simplify the process, provide customized solutions, and assist you in obtaining the best home f
Electrical Safety Tips For The Workplace
Electrical Safety Tips
The ever-increasing number of electrical appliances and systems in our homes and commercial spaces has substantially increased the risk of electrical fires. However, by following essential electrical safety tips and utilizing advanced technology and high-quality cables, we can effectively manage these risks.
Electrical safety tips often highlight that overloading circuits, faulty connections, and the use of substandard electrical products can lead to overheating, sparks, and disastrous fires. This underscores the importance of using high-quality, modern cables designed to withstand the demands of today’s electrical systems. Compared to their conventional counterparts, these cables feature enhanced insulation materials that reduce heat generation and support higher current loads without degradation. For instance, halogen-free wires not only offer superior flame-retardant properties but also minimize toxic gas emissions during a fire, thus aiding in safer evacuations.
Today, technology plays a crucial role in electrical safety tips. Advanced gadgets like surge protectors safeguard electronic devices from voltage spikes that occur during power surges. Additionally, integrated circuit breakers and isolators automatically cut off power in the event of an overload or short circuit, effectively preventing potential fire hazards.
Adopting best practices is vital in electrical safety tips to alleviate fire risks. Proper installation and maintenance are key aspects. Ensure all electrical connections are secure and free from defects. Periodic inspections by qualified professionals can help detect and prevent potential fire hazards. As part of electrical safety tips, proper circuit management is essential. Ensure electrical loads are evenly distributed by keeping separate circuits for different types of appliances. This approach not only enhances safety but also prolongs the lifespan of your electrical systems.
Electrical safety tips also emphasize the importance of building-specific cable usage. According to relevant standards, retardant low smoke and low halogen power cables are required in buildings over fifteen meters in height. Flame-retardant power cables are mandated for airports, hotels, and hospitals regardless of building height.
Using certified products is another crucial aspect of electrical safety tips. Certified products ensure approved design and testing. Wires and cables meeting REACH and RoHS standards are free from hazardous substances like lead, mercury, and phthalates, making them the safest choice. Avoid using non-standard electrical products that do not meet safety standards.
Finally, educating household members and employees in commercial spaces about electrical safety tips—including the dangers of overloading circuits and proper use of electrical outlets—helps prevent fires. By prioritizing these safety measures, we can significantly reduce the risk of electrical fires in both residential and commercial spaces.
The increasing number of electrical appliances in our homes and workplaces has increased the risk of electrical fires substantially. However, by following essential electrical safety tips we can manage these risks effectively.
Essential Electrical Safety Tips to protect your home and workplace. Learn best practices for preventing electrical hazards and ensuring a s
Property Investors – This One is for You
As Noida’s Jewar International Airport races ahead towards the completion of its first phase next year , its operationalization will have a significant impact on Noida real estate.
Real estate investors need to have a discerning eye when it comes to the development and master plan of Jewar Airport. Noida Airport’s boundary will extend to the Aligarh district border with an addition of 1200 hectares and the total airport area will be 7750 ha. In phase 5 of this project, the additional 1200 ha will be included in the Master Plan 2041. By expanding the airport, more international transactions will take place and global investment opportunities will arise.
Source TOI
Construction on phase-1 of Noida International Airport (NIAL) is currently underway with a robust lineup of up of 65 daily flights by the end of 2024. Trials are expected to start in February 2024.As part of the preliminary route network, short-distance flights will be offered to Dehradun, Pithoragarh, and various other places in addition to major cities like Mumbai, Bengaluru, Hyderabad, Chennai, and Pune. Moreover, two flights are scheduled for foreign destinations, marking Noida International Airport’s entry into the global market. As NIAL CEO, Arun Vir Singh told TOI, “Once the airport starts operating, flights to foreign destinations will also commence. Dubai and Singapore could be amongst the first few.” Additionally, a cargo flight will be operated from the airport. As per Singh, Indigo and Air India have expressed keen interest in setting up bases at Noida International Airport.
It is expected that Noida International Airport will serve approximately 5 million passengers by the end of its inaugural year, with a 12 million passenger footfall projection for the first phase of its operation. When the airport reaches 80 percent of its designated passenger capacity, construction on a second runway will begin.
Already, in a run up to the operationalization of the Jewar Airport, there is a complete transformation in this area and Noida will be offering great advantages. Locals are looking forward to more employment, business opportunities, and most importantly, an upgraded lifestyle.
Noida’s real estate market is expected to grow in the coming years, resulting in capital appreciation and higher rental returns, As more people migrate to Noida, the demand for housing, retail, and office space will go up. This will lead to increased economic activity, which in turn will lead to higher rental returns, higher ROIs, and higher land prices. Additionally, the development of Jewar Airport and the related master plan will also likely have a significant impact on property values.
Rights of Child in Father’s Property After Divorce
Dr Ajay Kummar Pandey, Advocate Supreme Court
As per Hindu Succession Act, children are coparceners, ones who share equally in the inheritance of an undivided property, including ancestral property. This right comes to children by birth itself. They also enjoy the right to survivorship, i.e. the right to divide the share among rest if one of the coparceners dies along with the right to sell their share of the property to anyone they want and so on. However, these rights can be denied to them under certain circumstances, including divorce.
Rights of Sons in Father’s Property
A property for the purpose of inheritance has been divided into ancestral and self-acquired and the rights related to each of these differ. In case of ancestral property, sons get inheritance rights by virtue of birth itself. This property can be divided between father and son, even during the lifetime of the father. Son is also free to sell his share in the ancestral property to any third person even before the formal partition of the property. However, the circumstance changes completely, when it comes to a self-acquired property, of the father. Here, the father has a right to gift or Will the property to anyone he deems fit, and no one can raise an objection over such transfer. Thus, if the property is a self-acquired property of the father and he has gifted or willed such property to someone by his own will, without any coercion, undue influence, fraud or misrepresentation, a right cannot be claimed over the property.
Rights of Daughters in Father’s Ancestral Property
Earlier, only male members of the Hindu Undivided Family (HUF) had a right over the ancestral property. However, after the amendment made to the Hindu Succession Act, in the year 2005, a Hindu female has an equal right in ancestral property as that of a Hindu male.
The Hindu Succession (Amendment) Act, 2005 that came into effect from 9 September 2005, has removed provisions that were discriminatory towards Hindu daughter’s inheritance rights. The Act also provides that, a married Hindu daughter has a right of residence in her father’s house if she is deserted, divorced or widowed.
Further, until recently, the rights guaranteed to daughters under the 2005 amendment were considered to be applicable only to cases where a woman’s father was alive as on 09.09.2005 (i.e. the date on which the amendment was brought into force).
This meant that women whose fathers died before 09.09.2005 were denied the coparcenary rights guaranteed by the 2005 amendment. But now it stands rectified and it is applicable retrospectively to all cases irrespective of the date of 09.09.2005. This final move has completely eliminated any discrimination between the rights of daughters and sons.
Rights of a Child in Father’s Property After Divorce
In the background of the above, now it can be clearly said that divorce does not affect the rights of a child in the father’s ancestral property. A child may be excluded from their father’s ancestral property if there is a will that excludes them from inheriting such ancestral property.
The self-acquired property of a father is his own. He may choose to dispose it off or transfer it according to his discretion. A child shall not claim a share in his father’s self-acquired property as a birthright.
Generally, the self-acquired property is bequeathed to a child by their parents. In case a father dies without a will, the child can claim a share in the self-acquired property of the father. While divorce does not affect the rights of a child in the property of their father, they depend upon the father making a will.
We should also consider whether a father can gift a property to his son . In a recent case, the Supreme Court held that a property that was gifted by a father to his son could not be counted as an ancestral property simply because he got it from his father. The court stated that the property of the grandfather can be held as the father’s ancestral property.
There are only two conditions under which the father would get the property, one being that he inherits the property after his father dies or in case the fathers’ father had made a partition during his lifetime. However, when the father obtains the grandfather’s property by way of gift, it is not considered an ancestral property. Sons and daughters don’t have any claim on the said property gifted by the grandfather.
A gift from the father to his son is not a part of the ancestral property as the son does not inherit the property on the death of the grandfather or receive it by partition made by the grandfather during his lifetime. The grandson has no legal right on such a property because his grandfather chose to bestow a favor on his father which he could have bestowed on any other person as well.
Thus, the interest which he takes in such a property must depend upon the will of the grantor and therefore, when the son has got the property from his father as a gift, his other sons or daughters cannot claim any part in it calling it an ancestral property. He can alienate the gifted property to anyone he likes and in any way he likes. Such a property is treated as a self-acquired property, provided there is no expressed intention in the deed of the gift by the grandfather while gifting the property to his son.
The Hindu Succession Act, under Sections 24 to 28 provide for certain cases where an heir may be disqualified from inheriting the property of a person dying intestate. Of these disqualifications, one which may lead to the disqualification of the right to inherit property by a son or daughter is the provision of ‘murdered disqualified'. As per this provision, a person who commits or abets the commission of the murder shall be disqualified from inheriting any property of the person murdered. Thus, if a son or daughter is found guilty of murdering or abetting the murder of his/her father then, they shall be disqualified by law from claiming their share in his property upon succession.
Dr Ajay Kummar Pandey, Advocate Supreme Court As per Hindu Succession Act, children are coparceners, ones who share equally in the inheritan
Difference Between High Street and Mall
Globally, malls have emerged as family entertainment and shopping destinations with a confluence of retail categories under one air-conditioned roof. High streets, on the other hand, serve as the core of friendly neighborhood shopping and utilitarian functions. Both these formats have different characteristics and command captive interest from retailers and consumers. There are many differences between the two when it comes to stock availability in the top 8 cities, retailer category comparison, and brand origin comparison.
Apparel and Food & Beverage remain the top two categories in both shopping malls and high streets. In the case of shopping malls, the second position is jointly shared by Entertainment and Food & Beverage, whereas in the case of high streets, the ‘Others’ category emerged as the second favourite along with Food & Beverage, followed by Accessories. The Others category comprises gymnasiums, photo studios, and miscellaneous other retailers that give a sales invoice and create a vast footprint on the modern retail arenas in high streets compared to shopping malls. This category’s share is the second highest in high streets at 18%. However, high streets lack entertainment options, which comprise 2% in comparison to 20% in shopping malls.
Indian high streets occupy only 6% of the total gross leasable area as compared to the shopping mall stock. Yet in terms of efficiency , high streets offer 100% efficiency , compared to 50-60% efficiency of shopping malls, depending on their grade. This is because of high maintenance cost of malls, particularly for common areas , central air-conditioning and escalators .
Delhi-NCR & Chennai Drive Industrial & Warehousing Demand
With about 13 million sq ft of leasing activity in H1 2024 and 17% YoY growth, industrial & warehousing demand across the top five cities remained healthy. Chennai and Delhi NCR led the demand, cumulatively accounting for about half of the overall leasing in H1 2024.
According to a Colliers report, Third Party Logistics (3PL) players continued to be the top occupier of warehousing space, contributing to about 36 percent share in overall demand during the first half of the year. Interestingly, demand in Chennai almost doubled in H1 2024, compared to the same period last year and was largely driven by warehousing requirements of 3PL players. At a micro market level, warehousing space uptake was more than 1.5 million sq ft each in Bhiwandi (Mumbai), Chakan-Talegaon (Pune) and Oragadam (Chennai).
Trends in Grade A Gross absorption (mn sq ft)
Source: Colliers
Note: Data pertains to Grade A buildings. Absorption does not include lease renewals, pre-commitments and deals where only a Letter of Intent has been signed.
“On a quarterly basis, Q2 2024 saw about 6 million sq ft of industrial & warehousing demand across the top five cities, a 48 percent irise YoY. With 1.8 million sq ft of leasing and 30 percent share, quarterly demand was significantly driven by Delhi NCR. The demand in the region was led by large uptake of industrial and warehousing space in Farukhnagar and Sonipat micro markets. Taking cognizance of healthy demand across major cities and supportive government policies, developers have been infusing high quality warehousing facilities replete with technologically advanced features. With significant completions in first half of the year, 2024 is likely to witness Grade A supply infusion to the tune of 20-25 million sq ft.,” says Vijay Ganesh, Managing Director, Industrial & Logistics Services, Colliers India .
Demand & Leasing Trends
While 3PL players continued to dominate the demand with about 36 percent share, space uptake by players from engineering, FMCG and electronics segments was significant with 12-16 percent share each. Interestingly, both engineering and electronics segments witnessed over 1.7X times leasing activity in H1 2024, compared to the corresponding six-month period of 2023. Going ahead, driven by conducive industry-specific policies and an enabling regulatory framework, diverse segments are likely to propel the industrial and warehousing space demand in India.
“With strong macroeconomic indicators, India’s industrial and warehousing market continues to grow, and the momentum is likely to continue in the second half of the year. Upward trend in indicators such as Manufacturing PMI and IIP reflects healthy industrial activity which is likely to spur demand for industrial and warehousing spaces. Interestingly, the manufacturing PMI has been in expansionary zone since July 2021 and remained close to 60 in the last few months. Furthermore, recent budgetary announcements will improve logistics efficiencies, catalyze demand and attract investments in the industrial and warehousing sector. Additionally, increasing platform level investments will lead to influx of superior quality industrial and warehousing space in the next few years.” says Vimal Nadar, Senior Director & Head of Research , Colliers India.
With supply infusion exceeding the demand for Grade A warehousing spaces, overall India vacancy levels increased by 210 basis points (bps) on an annual basis and stood at 12.2 percent at the end of H1 2024. Developer anticipation of heightened demand in upcoming quarters, have resulted in fresh supply of 14.4 million sq ft in H1 2024, a 35 percent YoY rise. With about 5.7 million sq ft of new industrial and warehousing developments, Delhi NCR accounted for about 40 percent share in overall completions in first half of the year. Notably, Q2 2024 witnessed about 7.5 million sq ft of completions in top five cities of the country, a 53 percent YoY rise. Q2 2024 also marked the highest quarterly supply infusion in the last 2 years. Amidst healthy demand and high-quality supply infusion, rentals in key micro markets saw an appreciable uptick.
Trends in Grade A Supply (mn sq ft)
Source: Colliers
Note: Data pertains to Grade A buildings
Large Deals Spur Leasing Demand
During H1 2024, large deals (>200,000 sq ft) accounted for about 35% of the demand. Although a vast majority of these larger deals came from 3PL players, electronics and FMCG occupiers too had large warehousing space requirements. On a city level, Chennai followed by Delhi NCR dominated the chunk of large-sized deals.
Delhi-NCR and Chennai are becoming key hubs for growth and logistics excellence, these regions are at the forefront, driving the surge in industrial and warehousing demand in India.
How Delhi-NCR and Chennai are leading the surge in industrial and warehousing demand. Explore the factors driving this growth and the future
"Know how the latest budget impacts the real estate market. Real estate experts analyze the key changes and trends to watch out for."
Discover the latest insights and analysis in Torbit Post-Budget Bytes. Explore key takeaways and trends post-budget to stay informed and ahe
Mumbai Residential Market on a Luxury High
Mumbai's Residential Market is booming rapidly, sales of homes priced at Rs 10 crore and above have set new records. The demand for high-end properties is constantly increasing.
Riding high on the luxury housing market, the Mumbai residential market has seen the highest ever secondary market sales and recorded robust
Premium Launches Drive Residential Sales
With a significant rise in the supply of high-value projects in the past few quarters, residential real estate has got a major boost with a noticeable growth in housing sales.
The number of residential units launched in the first half of 2024 reached a record high of 159,455, according to JLL. This translates to approximately 55 percent of the total units launched throughout the entire year of 2023. The supply of new residential projects has shown consistent growth this year.During the first half of 2024, majority of the new residential projects launched were in the upper-mid segments (INR 1-3 crore). However, there has been a significant growth in the share of premium and luxury segments compared to the same period in 2023. Developers have adapted their product launches and marketing strategies to meet changing buyer preferences, especially after the pandemic. As a result, there has been a noticeable increase in the supply of high-value projects in the past few quarters. In H1 2024, premium projects accounted for approximately 12 percent of new launches, while luxury projects accounted for around 6 percent.
During Q2 2024 (April-June 2024), Bengaluru, Mumbai and Delhi NCR emerged as the top cities in terms of new project launches, accounting for around 60 per cent share. Interestingly, among the three metro cities, Delhi NCR stood out with a significant 64 per cent share in Q2 high-end launches (homes priced INR 3 crore and above) as several prominent developers focused on launching luxury projects in Delhi NCR, particularly in Gurugram.
Source: Real Estate Intelligence Service (REIS), JLL Research
The current year has witnessed an impressive increase in both launches and sales momentum, with approximately 54-57 percent of last year’s total volume already achieved in just half a year. The consistent growth can be attributed to the successful launch of strategically tailored products by developers who have carefully assessed market demand and dynamics. Interesting to note, sales momentum has successfully complemented the new launches with around 30% of the H1 2024 sales (154,921 units) being contributed by projects that got launched during the last six months. Listed and reputed developers, consistently bringing in a substantial supply over the past few years have played a key role in this growing trend”, says Dr. Samantak Das , Chief Economist and Head of Research and REIS, India, JLL.
Premium segment residential market surges with a remarkable 169% Y-O-Y increase in H1 2024
Source: Real Estate Intelligence Service (REIS), JLL Research
“There has been a notable surge in launches within the premium segment (priced between INR 3-5 crore) and luxury segment (priced above INR 5 crore) compared to other segments. In H1 2024, launches in the premium segment surged by 169 percent Y-o-Y, followed by a 116 percent Y-o-Y increase in luxury segment launches. On the contrary, the mid segment projects (priced between INR 50 lakh -1 crore) experienced a 14 percent Y-o-Y decline during the same period. This speaks about developers’ active response to the surge in demand for high value homes among the target clientele” says Siva Krishan, Senior Managing Director (Chennai & Coimbatore), Head- Residential Services , India JLL.
Residential Prices on the Upsurge
Q2 2024 continued to witness residential price growth in the top seven cities (Delhi NCR, Mumbai, Chennai, Hyderabad, Bengaluru, Pune, Kolkata) of India, with Y-O-Y price increase ranging from 5 percent to 20 percent. The highest price increase was observed in Delhi -NCR, with a significant jump of approximately 20 percent , while Bengaluru followed closely with around 15 percent increase.
While Bengaluru has been witnessing around 15 percent growth Y-o-Y over the last few quarters, around 28 percent of its Q2 2024 new launches being sold out during the same quarter has acted as a driver for Y-o-Y price growth during the quarter. Furthermore, capital value increase at Whitefield and North Bangalore locations have acted as a catalyst. Availability of under-construction inventory in these cities getting restricted, is resulting in subsequent surge in prices. In response to the high demand for newly launched projects, developers are as well launching new phases of existing projects at elevated price levels, resulting in overall property price growth.
Residential sales momentum continued to be on a high growth curve in the first half of 2024 driven by strong supply from reputed developers, favourable economic conditions, and positive buyer sentiments. The period recorded highest ever half yearly sales, with a remarkable 22% increase compared to the same period in 2023, totalling 154,921 units. This upward trajectory in demand paves the way for sustained growth in the residential market. Most of the cities witnessed robust y-o-y growth in sales volume with the markets of Bengaluru, Mumbai, Pune, and NCR accounting for around 80% share in half-yearly sales.
In line with the trend observed in launches, in the first half of 2024, the sales of premium category projects (priced between INR 3-5 crore) saw a remarkable y-o-y growth of around 160 percent . Similarly, the luxury segment (priced above INR 5 crore) also experienced a significant sales increase of 60 per cent compared to the same period in the previous year.
Source: Real Estate Intelligence Service (REIS), JLL Research
As of Q2 2024, unsold inventory across the seven cities increased marginally on a Y-o-Y basis as launches outpaced sales. However, it is interesting to note that months to sell has declined Y-o-Y from 30 months in Q2 2023 to 24 months in Q2 2024.
Looking Ahead
The outlook for residential sales in 2024 remains positive, with an expected range of 315000 to 320000 units. This projection is based on the sustained growth momentum in the market. Additionally, supply is expected to match the demand as established developers are acquiring land in prime locations and growth corridors to launch their projects in the near to medium term. Some developers are also considering expanding their portfolio and entering new markets to increase their presence nationwide.
Record Institutional Investments in Real Estate
Buoyed by the surging economy riding high on robust infrastructure development, real estate has seen a significant upsurge in institutional investments driven by foreign investors.
Buoyed by the surging economy riding high on robust infrastructure development, real estate has seen a significant upsurge in institutional
In the first half of 2024, sales of premium category projects (priced between Rs 3-5 crore) witnessed a significant year-on-year growth of nearly 160%.
Explore how premium property launches are boosting residential sales, according to Torbit Realty. Discover key trends, market impacts, and s
South Tops in Faster Project Completions
As the use of modern construction technology in large under-construction residential projects gains momentum, southern cities get top honours for speedy project completions.
In the backdrop of combined effect of RERA, use of construction technology, and the increasing market share of large and listed developers, the last decade (2014-H1 2024) has seen homebuyers’ wait for possession in large under-construction projects in the top 7 cities reduce to 4.9 years, from 6.1 years in the 2010-2019 period.
According to Anuj Puri, Chairman, Anarok, the latest Anarock data reveals that the average time to complete large residential projects of 500+ units in top 7 cities clocked in at 4.9 years from 2014-H1 2024, from 6.1 years in the preceding decade. Large and listed players account for nearly 34 percent of the market today. The stringent rules imposed on project delays by the regulatory authorities have also been a key factor in reducing the completion time.
All projects launched and completed between 2010-2019 and 2014-H1 2024 in the top 7 cities were analysed in the study, and were further segregated into developments with less than 500 units larger ones with over 500 units.When it comes to completing large projects, the top southern cities were markedly ahead of their northern, western, and eastern counterparts. For all large projects launched and completed between 2014 and H1 2024, the average completion time was lowest in Chennai with 3.6 years, while Hyderabad and Bangalore clocked in at 4.2 and 4.8 years respectively.
“For most large projects in NCR and MMR, developers had purchased land outright, thereby compromising their overall financial health and delivery capability,” says Puri. “On the other hand, most projects in the main southern cities are joint developments where landowners usually get a certain share of the developed units. In NCR, extreme weather conditions and the statutory restrictions imposed on construction during spike in pollution levels also have an adverse impact on construction timelines in the region. Most developers have gradually reduced their leverage and with stronger financial conditions, are able to focus on execution.”
It is noteworthy that at 36 percent , Chennai has the highest reduction of construction time among the top 7 cities, despite incessant rains during the monsoon season causing major challenges..
Small & Large Projects: Completion Trends (2014-H1 2024)
The average time taken to complete smaller projects of less than 500 units in the top 7 cities was 4.0 years, and 4.9 years for large projects of more than 500 units each.
In Kolkata, large projects launched and completed between 2014 to H1 2024 took the longest average time of 5.7 years to complete,
In MMR, it took an average of 4.7 years to complete small projects, and around 5.2 years for large projects.
In Pune, the average project completion time was 4.3 years for small projects, and 5.4 years for large ones.
In NCR, homebuyers waited an average of 4.7 years for small projects and 5.4 years for large ones.
In Chennai and Hyderabad, the average completion time for small projects was 3 years and 3.1 years respectively, and 3.6 and 4.2 years for large projects, respectively. In Bangalore, it was 3.5 years for small projects and 4.8 years for large ones. As larger projects gain momentum across the cities and new construction technology is implemented, construction time will reduce further. Continuity of execution across major projects is becoming a major factor with financially sound developers whose sales volumes have enabled continued cashflows.
Union Budget 2024-25: Real Estate Sector Highlights in budget
The FY 2024-25, is a positive budget for the real estate sector with some key initiatives to give a major push to urban development and housing -particularly affordable housing under the Pradhan Mantri Awas Yojana (PMAY).
Real Estate Sector Highlights in Budget, Explore the key highlights of the 2024-25 budget and its impact on the real estate sector investmen
Realty Foreseen 2024
Sanjeev Kathuria, Founder, Author & CEO, Torbit Consulting
Last year turned out to be one of the best years for the real estate industry, with residential, commercial and warehousing properties sold and leased like hotcakes, especially in Tier 2 cities. All stakeholders including financial institutions and developers did well. The customers got an opportunity to realize their dreams. The year 2024 has started on a promising note as all stakeholders in the industry – government, financial institutions and developers are in a good position and are optimistic and forward-looking.
Residential Real Estate
In view of the low interest rates prevailing till early 2023, and supporting government policies, boutique or what we call affordable housing did very well. Later despite the rise in interest rates, residential realty performed well. This year, housing in Tier 2 cities will do wonderfully well, especially in plotted developments. The residential segment in metro cities will see a little slower growth. There are specific reasons for that. Because of the high home prices and high interest rates, homes have gone out of the affordability range of customers. The volume of sales in metros will remain stable or go down a bit. The prices may not rise or drop.
There is a bullish outlook for Tier 2 cities. Last year, we saw huge housing sales in these cities. Reputed developers like Godrej, Tata, and many more sold their properties overnight. Tier 2 cities are expected to do well. this year as absorption and sales will be high. Investors will gain from property appreciation. Housing in Tier 2 cities will do wonderfully well, especially in plotted developments.
Post-covid luxury housing has gained currency in comparison to affordable housing. At present people are opting for luxury homes and the demand for luxury homes is higher than boutique/affordable homes . Luxury housing saw decadal-high sales last year. This year the demand for absorption of luxury housing will be good because of fewer inventories available across the country. Luxury housing will rule the scenario and do much better than boutique housing. We will see a lot of absorption with new launches and will also see price appreciation.
Office Real Estate
In view of the anticipated layoffs by global giants like Microsoft, Google, Twitter etc, absorption will be stable or slow. On the domestic front, the IT industry is in a dire state with limited even new job opportunities and a shift towards hybrid work models even in established companies. This shift to hybrid models reduces the need for physical office space , impacting commercial real estate.However, Grade A office spaces are likely to perform well. Key players including DLF, Max, Embassy, known for creating Grade A office spaces are expected to thrive. These distinctive office spaces are likely to be quickly absorbed. So, we will see a low inventory of these spaces, especially in major cities like Bangalore, Hyderabad, Pune, and Gurgaon. The Grade B office space will grow slowly.
Retail Real Estate
Retail commercial spaces and larger malls are expected to perform well while smaller format malls may struggle. The high street retail segment is projected to do well, driven by tech advancements and significant investments in technology. The large corporations like Tata, Mahindra, and Prestige Group will gain dominance, benefiting from lower capital lending rates, compared to smaller players who get funding at higher interest rates, making it challenging for them to compete effectively in the market. High street retail will do much better while multiplexes will see lower footfall.
Hospitality Sector
There are promising times ahead for the hospitality sector . Especially in view of the government’s focus on tourism , particularly religious tourism, hotels will do well. The thrust on tourism will also boost holiday/vacation homes.
Alternate Realty
This will be a booster year for Alternate Realty. The data centre segment will emerge as a bright spot in real estate. It will be the biggest inventory builder across the country attracting huge investments. For the last five years, money has been pouring into logistics and it will continue to flow. Warehousing will do well with stable lease rentals on the strength of spurt in industrialization and retail, especially e-retail.
The ‘Make in India’ initiative of the government has put industrialization on a fast track. MSMEs that are already making significant strides , are expected to thrive with an expected surge in their numbers. These enterprises manufacture a wide range of basic tools and machinery including items as small as nuts and bolts. Whether it is Foxconn, Tesla or Apple, the entire India including Tier -2 cities, is experiencing a wave of industrialization. Amidst this, we will see rapid growth in industrial land parcels. Large industrial/corporate players could acquire 500-1000 acres of land for corporate farming, dominated by corporate biggies like Ambani and Adani. In Tier 2 cities, these prime land parcels may well see the interest of the investors. All this will be boosting industrial reality.
Conclusion
Despite the positive outlook, there are concerns about over-valuation across the board which need to be addressed Developers need to offload their inventory, improve cash flows, accelerate construction and deliver projects promptly if they wish to remain competitive.
Tech Intervention Transforming Real Estate
Despite being one of the biggest sectors that generates ample jobs and feeds large number of ancillary industries, the real estate sector is often viewed with distrust and fraught with ambiguity. Amongst many issues that have plagued the sector, transparency in dealings, trust deficit, ever-increasing costs and delay in completion of projects have been the fundamental concerns. Introduction of new-age laws, and next-gen technologies at multiple levels are helping the sector shed its negative image and mist of ambiguity shrouding the sector. Tech enabled disruption of the status quo is gathering pace with a new breed of visionary start-ups making headway and introducing technologies that not only take care of the critical pain points, but also work towards making the entire process functionally and fundamentally strong. Introducing highest levels of transparency and cost effectiveness through technology and data, they are making the home construction and purchase process stress free for all stakeholders. From the smallest home construction projects to large scale projects dealing with multiple specs, these technologies are helping attain highest levels of customization, cost-effectiveness, and transparency, propelling high levels of trust, efficiency and customer delight.
Transparency plays a critical role in the consolidation and growth of the sector. It has been often said that the sector lacks transparency, but that might not be completely true any longer. Transparency includes online disclosures, accountability and empowering various parties to make informed choices. This is achieved by full stack technology platforms offering services that help conceive one’s dream home, keep a close watch on construction progress, make and track electronic payments and do away with additional recurrent costs that crop up due to poor and faulty planning. By being able to immersively visualize spaces and specs with the help of VR and AR technologies, they ensure quick, informed, engaged and effective decision making before a single stone is laid. Once execution starts, mobile apps help customers and stakeholders track daily data at their fingertips. 360 degree virtual tours serve as an excellent, delightful and accessible sales tool for already constructed properties as well.
With different requirements and functionality expected by different individuals, the home design and build technology platforms are aiding to acquire customized homes. Moving away from one-design-fits-all approach to offering an individualized-product, archi-tech (3d modelling, design visualisation and BIM tools, project planning, document management, collaboration and tracking tools etc.) is making deep inroads in offering an enhanced experience for consumers who want to live in a home that matches their style and offers highest levels of desired functionality. Easy understanding and visualization through technology is helping save time, effort, and money through avoiding rework. Furthermore, it helps measure time, functionality and cost-effectiveness, helping home owners get their dream homes within cost and time constraints. Accurate estimations, enforcement of process standards, skilled resources for execution waste reduction, of projects are all key metrics trackable with technology. With ever-increasing cost-effectiveness and ability to offer best-in-class customization solutions, technology enables a delightful construction experience measurably superior to what customers have come to expect.
Introduction of technology at multiple levels of working, from the very beginning or conceiving to visualisation, understanding the construction process to actual execution of the project has helped in a big way. Immersive VR experiences, mobile App based real-time execution tracking are playing an important role in avoiding delays due to rework and helping home owners rest assured while their dream homes are being built. Timely completion is only possible with accurate real-time tracking and this also enables transparency and re-enforces trust. Proper planning, timely actionable reports and recommendations, based on data and mechanisms to continuously improve the plan are also key factors being enabled by technology.
Trust continues to play an important role for the sector. With transparent working, completion and delivery in a cost-effective manner, technology is helping the sector in re-enforcing trust that it always needed. The confidence of the developer/construction community and home buyers is strengthening with real-time data at their fingertips on mobile and web Apps. Easy collaboration and quick course corrections, easy, accessible warranty and support information etc. are key to reinforcing customer confidence. Regular feedback via Apps and continuous improvement mechanisms enabled by accurate tracking data ensure that any shortcomings that come to light or positive suggestions that can make the experience even better, are considered, evaluated, and introduced in real-time or in future projects. Technology adoption is an ongoing process, still nascent and should only grow as it continues to make a positive win-win impact for all stakeholders.
There has been an emphasized need to focus on transparency, trust building, cost-effectiveness and timely completion of projects for the sector. With the adoption of cutting edge technologies, integrating into the design and build workflow connecting all stakeholders involved with relevant data, full stack technology solutions are clearly the way forward for the industry.