Page 58 - Kolte Patil AR 2019-20

Dwelling unit carpet area
India’s real estate market Market size (US$ billion)
1500 1000 500
1,000
650
2017 2025 2030
120 0
Annual household income limit
MIG-I
Between C6,00,001 up to C12,00,000
MIG-II
(Source: IBEF)
Between C12,00,001 up to C18,00,000
160 sq. mt
200 sq. mt
Eligible loan amount for interest subsidy (C)
9 Lakh
12 Lakh
Interest subsidy
4%
3%
Maximum loan tenure (in years)
20
20
NPV subsidy
C2.35 Lakh
C2.30 Lakh
1 sq mt = 10.7639 sq ft (Source: Economic Times)
Key geographies
Pune: Pune is one of the fastest growing cities in the Asia-Pacific region. Pune has one of the best urban infrastructures in India, ranked No. 1
in the Ease of Living Index 2018 by the Ministry of Housing and Urban Affairs in India. The city also ranked highest amongst all Indian cities in Mercer’s 21st Annual Quality of Living Rankings in 2019. Pune ranks sixth in terms of city per capita income in India. IT, Education, Automobile, Manufacturing sectors amongst others are the key drivers of Pune’s real estate growth. India’s Smart Cities Mission, gives impetus to the growth of Pune’s urban infrastructure. The city is likely to witness investments worth more than INR 650 billion over the next 7-8 years for the construction of metro rail links, a new airport terminal and a ring road.
The city saw 37% y-o-y growth in
its new launches in the residential segment from 32,684 units in 2018
to 44,660 units in 2019. However, the sales of residential real estate de-grew 2% in 2019. Further, average prices
also de-grew by 3% in 2019. On the commercial front, the city saw a decline of 41% y-o-y in new launches of office space from 0.64 million square metres in 2018 to 0.38 million square metres in 2019. Further, the sale of office space
in the city recorded de-growth of 5% y-o-y from 0.61 million square metres
in 2018 to 0.58 million square metres in 2019. However, the average price of commercial real estate in the city saw an increase of 5% y-o-y. (Source: Economic Times, Financial Express, JLL report)
Mumbai: Mumbai is the largest luxury residential real estate market in India. The Mumbai Metropolitan Region (MMR) recorded 22% year-on-year (y-o-y) growth in sales to 80,869 units
in 2019, the highest since 2013. The number of new units launched in CY19 was at its highest since 2016 at 77,990 units. The unsold inventory declined marginally by 1% to 2.16 Lakh units in the region; this could take 33 months
to clear. Of the total 1,816 housing projects launched during the year under review across India’s seven leading cities, over 52% were high-rises with ground plus 20 floors structure. Mumbai Metropolitan Region (MMR) accounted for more than 75% of the total 734 project launched in 2019 in the high- rise category. The region absorbed 6.9 million sq ft of office space, an annual increase of 11.3% in 2019.
In MMR, the current average price of under construction homes was C10,075 per sq ft while ready-to-move properties were priced at C10,460 per sq. ft. The residential FSI for MMR has been raised to 3.0 and commercial to 5.0 from 1.3
for both. In the suburbs, the FSI for residential projects increased to 2.5 from 2.0 and for commercial projects was at 5.0 as against 2.5. (Source: Economic Times, Financial Express)
Bengaluru: Bengaluru accounted for 45% of the total projects launched in 2019 (for those towering above G+20 floors). However, Bengaluru witnessed a 12% drop in residential sales to 50,450 units in 2019 from 57,540 units in 2018. Bengaluru witnessed a price gap of around 5% – under construction homes cost C4,820 per sq.ft. on average and ready to move in homes realised C5,050 per sq. ft on average. Bengaluru dominated the office space market with 15.6 million sq ft absorption in 2019,
a year-on-year (YoY) growth of 15.4%. The city’s office space is mainly driven by IT, ITES and co-working providers. Bengaluru would witness additional
15 million sq ft of office space in the next three years. The proposed FSI ranges from 2 to 5, depending on the size of the plot and the road and seeks to encourage vertical growth and wider open spaces in the form of setback areas. With this, properties along the metro, suburban and bus corridors will benefit from the new policy. (Source: Economic Times, the Hindu Business Line)
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