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Housing demand to remain skewed towards ready properties: Colliers

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Housing demand to remain skewed towards ready properties: Colliers

In 2016, about 89,000 units were launched across six major cities in India, which is about 34% less than the units launched in 2015.

MUMBAI: Demand for housing from end user is expected to remain skewed towards ready-to-move-in properties in affordable and mid-income projects in 2017, said Colliers International India in a report.

In 2016, about 89,000 units were launched across six major cities in India, which is about 34% less than the units launched in 2015. The decline in the number of new launches indicates the waning interest of buyers in the primary market, the report said.

Out of the total new launches in 2016, around 28% were concentrated in Bengaluru followed by Mumbai 25%, Pune 23%, National Capital Region (NCR) 15% and Chennai 9%.

In the aftermath of demonetisation, many banks have reduced the home loan rates to the tune of 8.25 to 9%, which is the lowest in the last 8 years. The government has also announced an interest subsidy to the tune of 3 to 4% for first time affordable housing homebuyers in 2017. As per Colliers, the 2017 union budget holds the key to many more incentives for homebuyers in the form of tax cuts and interest subsidies.

“We expect demand for quality stock in areas with good connectivity and social infrastructure to revive in the near term, especially in mid-segment housing. However, realistic pricing will be the key to an early revival as right now both buyers and sellers are hanging on in the hope of achieving optimum prices. We think prospective buyers should not delay their decision unduly, since they can negotiate realistic prices in both the primary and secondary markets,” said Surabhi Arora, Associate Director Research at Colliers International India.

The year 2016 began with a promising outlook for Mumbai, but as the year progressed, the real estate market in the city was affected by several factors, like the approval of real estate (Regulation and Development) Act (RERA) by the central government, the new Maharashtra Housing Policy and the demonetisation drive.

Developers and buyers alike adopted a wait and watch approach and the number of launches reduced considerably. In 2016, there were about 29,000 new launches in the Mumbai Metropolitan Region (MMR) and its suburbs, a decline of 18.8% over 2015. About 51% of the new launches were in Thane. The remaining share was concentrated at other locations namely Central suburbs (23%) Navi Mumbai (15%), Central Mumbai (9%) and South Mumbai (2%). Colliers forecasts, new unit launches shall be concentrated in Thane and Navi Mumbai in 2017, due to the available land reserve at these locations.

Bengaluru continued its run in the residential market with maximum number of new unit launches in 2016. However, while in 2016, nearly 24,800 new residential units were launched in Bengaluru, it reflects a 35% year on year (y-o-y) decrease over 2015. This slow pace of new launch activity can be attributed to multiple events that unfolded during 2016; like the impending finalisation of RERA Act; delays in obtaining approvals due to Bruhat Bengaluru Mahanagar Palike (BBMP)‘s citywide drive to tackle encroachment of storm water drains that kept developers cautious and the momentary civil unrest over Cauvery water issue between the state of Karnataka and Tamil Nadu which hampered new launches in the second half of 2016, the report said.

Gurgaon witnessed the launch of around 6,700 units in 2016, about one-third of the 2015 numbers. Colliers expects a muted demand, and limited number of new launches in the first half of 2017, as the ongoing slump in the market gets further fortified after the demonetisation move. Contrary to the general perception of a significant price correction, Colliers does not believe that prices will crash. It expects that prices will largely remain stable while a marginal correction up to 5-7% in emerging micro markets, such as Dwarka Expressway and Golf Course Extension Road cannot be ruled out due to high inventory available in secondary market. The story was very similar for Noida, as in the backdrop of muted sales in the primary market and heightened consumer activism on the issue of delay in completion of projects, developers remained focused on execution of projects in 2016. About 6,500 new units were launched in Noida in 2016, which is almost equal to the 2015 figures, the report added.

Despite being one of the most active residential markets in 2016, the Pune market slowed down towards the end of 2016, with new launches totalling to about 20,400, witnessing a 36% decrease over 2015. According to Colliers, low enquiry levels especially in the high-end and luxury segment echoed prevailing subdued market sentiments, as most launches in 2016 were focused on the budget or mid-end segment. Localities adjacent to commercial hubs of Pune in West (Baner, Hinjewadi), South (Undri, Handewadi), South East (Keshavnagar, Hadapsar) and East (Kharadi) constituted an 80% of new launches.

Source: economictimes.

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NTR Housing Scheme In Full Swing: Chief Minister N. Chandrababu Naidu

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NTR Housing Scheme In Full Swing: Chief Minister N. Chandrababu Naidu

On Thursday, Andhra Pradesh Chief Minister N. Chandrababu Naidu said with the estimated expense of Rs. 5,556.74 crore, the construction of more than 2,44,164 houses, out of the proposed 3,03,044, has been commenced under the NTR Housing Scheme 2017.

While addressing the second day of the Collectors’ Conference he also said the construction of the remaining houses will begin soon. He mentioned that Prakasam and the Kurnool districts are ahead of the schedule in the urban housing scheme. Also, the works are in full swing in the Nellore and the Guntur districts under the rural housing scheme.

According to Naidu, the government will complete 2.5 lakh houses by January next year and another lot of two lakh houses by June.

By October 2, 2018, the state government intends to finish the construction of all the houses and plans to celebrate with massive house warming ceremony with local public representatives. This will help them set an example for housing schemes in other states.

Also Read: Raunak Group Presents Apna Pehla Ghar Campaign

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Residential

A Mumbai Suburbs’ Swift Transformation From Industrial To A Residential Zone: Wadala

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A Mumbai Suburbs’ swift transformation from industrial to a residential zone: Wadala

An industrial zone primarily, Wadala has undergone a drastic transformation in the past decade. Now an upcoming residential area, this Mumbai suburb is one of the seven islands to form the modern Mumbai. It is located on the Harbour line of Mumbai’s railway network.

Due to its proximity to BKC, large scale land development was inevitable, thus fueling the real estate market. Wadala is bordered by Dadar on the West, Matunga on the Northwest and Sewri on the South. Nestled between south Mumbai and the suburbs, Wadala enjoys strong connectivity by road and rail to most parts of Mumbai.

It has a number of flyovers like the Anik Panjrapol Link Road, Elevated road and Santacruz flyover. Thane, CST and Chembur are connected via the Eastern Highway while the Western Highway connects the locality to Bandra and Borivali. Wadala has the biggest bus depot in Mumbai. Furthermore, the multiple infrastructure initiatives like the monorail, Truck Terminal and the expansion of Highway are in various stages of development.

All this has given rise to residential demand and pushed the property value over the last few years. One of the most populated areas in Mumbai, Wadala has a large number of old temples, churches and dargahs, university campuses, schools, reputed hospitals and is also home to a former world’s largest IMAX dome theater. There are many stores, showrooms and malls around Wadala like the R Mall, High Street Phoenix and Palladium Mall.

Ramesh Nair, COO – business and international director, JLL India says, “A decade ago, property prices at Wadala were as low as Rs 2,800 per sq. ft. and it rose to Rs 14,000 a few years ago.”  As the infrastructure plans are on their way, so are the renowned developers like Ajmera, Dosti Group and Lodha Group among others.

Wadala at present offers one of the highest returns on real estate investments in the region. All the above-mentioned developers have their luxury projects in the area.

Ajmera I-Land introduces Aeon, Zeon and Treon towers with 2, 3 and 4 BHK plush homes. Conceptualized by renowned Singapore based Architects Space Matrix, these spaces with top-of-the-line lifestyle amenities exude exemplary class and finesse. The first residential floor begins at 110 feet from the ground level and offers several modern lifestyle amenities like kid’s pool, swimming pool, gymnasium, club house, open space and landscaped gardens, yoga room, kid’s play area and senior citizen corner.

Dosti Ambrosia is a 36-storey tower nestled in the 18 Acre Township of Dosti Acres. The architecture of the project was undertaken by renowned Hafeez Contractor in the 2 and 3 BHK apartments. It offers an exclusive rooftop swimming pool with 40,000 sq. ft. of landscaped gardens. You will find all modern conveniences like Gymnasium, Tennis Court, Indoor Badminton Court, Yoga and Meditation Room, Elderly Corner, Banquet Hall, Indoor Games, Indoor Badminton Court, Guest Rooms, Restaurant, Grand Entrance Lobby, Kids Play Area, 2 Club Houses and an Amphitheatre.

New Cuffe Parade by Lodha Group offers its residents all the comforts of a world-class lifestyle. The 2 and 3 BHK homes are spread in over 23 acres of land with 15 acres of stunning landscape and 75,000 sq. ft. of the club house. It includes 11 swimming pools, an organic farm, cricket pitch and multiple themed gardens. The buildings are designed by the world renowned WOHA in Singapore and the landscape was planned by Sitetectonix in Singapore.

Also Read: Mumbai to get Building Taller than Burj Khalifa, Road Bigger than Marine Drive

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Residential

Rajasthan Government May Hike The Affordable Housing Prices

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Rajasthan Government May Hike The Affordable Housing Prices

The prices of homes under the ambitious Mukhyamantri Jan Awas Yojana are expected to be increased by the state government.

According to the sources in the empowered committee meeting to be held on Monday, a proposal to increase the cost of a low-income group (LIG) and economic weaker section (EWS) houses will be proposed. Urban development and housing (UDH) minister Srichand Kriplani will chair the meeting. The LIG and EWS houses, presently are being constructed on government lands by private builders. These homes are sold at a fixed rate of Rs 1,250 per sq feet; out of which 1000 rupees per sq ft is given by Urban Improvement Trust (UIT), development authorities and local bodies to the builders.

According to provision 4(A) and 4(B), the developers are supposed to build EWS and LIG houses on government land. Seventy-five percent of such government land can be used in building EWS and LIG houses, while the remaining 25% can be sold by the developers. However, since the rates provided by the government are less the developers are not showing interest to construct houses under these categories. Sources said, “In Jaipur, not a single developer has shown interest in constructing houses under this model. The JDA has invited expression of interest (EOI) several times.”

The UDH is leaving no stone unturned to attract the builders in order to achieve the target of constructing 10 lakh houses by 2019. The sources mentioned, “As per the new proposal, the department has proposed to provide Rs 1,600 per sq feet rate to the developers. The land rates have increased subsequently over the period of time; this is why increasing rates has become a need of the hour.”

Sources further added, “The developers are constructing G+3 buildings at present. However, it is not cost-effective. It has been proposed to construct G+2 buildings for LIG and EWS category.”

Also Read: The Impact Of Regulations On The Real Estate Market

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