Blog

Top 8 urban areas to add 19.4 million sq.ft. retail space by 2020: Report

Top 8 urban areas to add 19.4 million sq.ft. retail space by 2020: Report

February 17, 2018 in Uncategorized

Top eight property markets across India are expected to add 19.4 million sq ft retail space supply over the next three years from 2018 to 2020. Demand for retail space is estimated to be around 15 million sq ft during the same period, showed a JLL study. These property markets will also witness a parallel rationalization of existing mall spaces that will help the market avoid an oversupply situation. As a natural course of events, it expects a few malls to close down or temporarily suspend their operations for repairs, renovation & upgrades. This will help the market create the necessary balance to maintain the rental values. The study revealed that 2018 will see the highest retail space supply since 2011. The total newly completed malls in 2017 were recorded at 5.6 million sq ft that are expected to see an increment of close to 40% year-on-year and rise to 7.8 million sq ft by the end of 2018. The largest contribution to this will be coming from the two southern cities of Hyderabad with 2.2 million sq ft and Chennai with 1.5 million sq ft which will see a significant influx of mall supply. Delhi-National Capital Region will be witnessing the highest supply of 2.3 million sq ft of new mall space in 2018, albeit recording an on-year decline of 28% since 2017. The year 2017 saw a withdrawal of nearly 5 million sq ft retail space with a closing down of 28 malls. Most of the rationalization took place in the markets of Delhi-NCR and Mumbai owing to the fact that these markets have significant mall stocks with a considerable percentage of the same performing below par. Encouraged by the urbanization, young population and rising proportion of nuclear families in urban locations, consumption growth along with the opening up of the FDI route for retail brands entering into India, is expected to further boost retail investments. Mumbai that has, in the past few years, seen a slowdown in retail development activities will continue to witness remain cautious. In 2018, it will see a decline of 13% on-year in new mall completions, further maintaining the status quo in the market. Source: Realty-The Economic Times

Gurgaon’s residential real estate market in revival mode

Gurgaon’s residential real estate market in revival mode

February 2, 2018 in Uncategorized

Over the past two years, the residential real estate markets in India have been passive. In Gurgaon, until the middle of 2016, the city witnessed subdued transaction activity and restricted new supply, with the demonetisation drive further impacting the market. Cautious buyer sentiment, coupled with high levels of unsold inventory, resulted in a slowdown in construction activity and sales. While there were a few projects in the third quarter of last year, the focus of most developers continued to be on offloading existing inventory, completing their ongoing projects and deferring new project launches. Ambiguity around the implementation of the Real Estate (Regulation & Development) Act (RERA) during the first half of the year resulted in transaction activity remaining low. On the flip side, the office market continued to see robust demand. During the April-to-June period this year, Delhi NCR witnessed close to 2 million square feet of office space absorption. A majority of this take-up was recorded in the Gurgaon micro-market. Due to sustained occupier interest, Golf Course Road, DLF Cyber City and NH8 contributed to almost 50% of leasing activity here. IT and SEZ spaces were the preferred options by occupiers. This positive traction in the office market, improving clarity around RERA, coupled with the effects of the demonetisation drive dissipating, are resulting in transaction activity in Gurgaon’s residential segment witnessing an uptick in recent months.        

Union Budget 2018 Highlights

Union Budget 2018 Highlights

February 1, 2018 in Uncategorized

Prime Minister Narendra Modi has hailed his government’s last pre-poll budget as a “big step” towards achieving Ease of Business and Ease of Living. Farmers, rural India, and healthcare were the main focus of Budget 2018 — the last pre-poll budget — presented by Finance Minister Arun Jaitley earlier today, but the middle-class hopes for Income Tax relief were dashed. While the farmers were assured an MSP 1.5 times the cost of production, the poorest of the poor will be covered by universal healthcare to the tune of Rs 5 lakh per year. As a consolation prize, the middle class got Rs 40,000 standard deduction against travel and medical expenses. The Budget also gave a boost to Make in India by increasing customs duty on mobile phones, which means handsets made by foreign companies will cost more. In the Budget speech, Jaitley vowed to keep the fiscal deficit at 3.3%. Jaitley also announced a hike in President’s salary to Rs 5 lakh a month, the Vice-President’s salary will rise to Rs 4 lakh per month and the Governor’s pay will rise to Rs 3.5 lakh a month. Jaitley announced a Rs 150 crore fund to celebrate the 150th anniversary of Mahatma Gandhi. As per Budget 2018, Bengaluru Metro will get Rs 17,000 crore and Rs 11,000 crore will be allocated to Mumbai rail network. 

Real estate market shrugs off impact of demonetisation, RERA, GST

Real estate market shrugs off impact of demonetisation, RERA, GST

January 31, 2018 in Uncategorized

Residential property markets across India's top 30 cities have shrugged off the impact of demonetization and absorbed the short-term blow of several regulatory changes aimed at formalizing the real-estate sector. In the quarter-ended September, these property markets started showing signs of returning to normalcy as sales registered the best performance in five quarters. Based on sales volumes, 22 of the top 30 markets were either hovering around their five-quarter best or bettered their previous peaks during the September quarter. All cities have bounced back from the lows witnessed around demonetization, showed data from Liases Foras Real Estate Rating & Research. The performance in this quarter assumes significance as two key reform measures were implemented around this time. In May, the government implemented the much-awaited Real Estate (Regulation & Development) Act, 2016 and the country transitioned into the new indirect tax regime with the roll out of Goods & Services Tax (GST) on 1 July. According to Magicbricks' Propindex, the October-December 2017 quarter witnessed an average price increase of 3.1% in 46% of the 750 localities across 14 major cities. The Magicbricks' National Price Index (NPI), after remaining stagnant for almost two years, saw the first price gain in the July-September 2017 quarter and this has continued in the October-December quarter as well with just under 1% increment. In the quarter-ended September, sales volume in tier I cities such as Mumbai, National capital Region (NCR), Pune, Bengaluru, Hyderabad, and Ahmedabad were at their five-quarter best levels. 

     

How will GST impact the various segments of Indian real estate?

How will GST impact the various segments of Indian real estate?

January 30, 2018 in Uncategorized

The Goods and Services Tax (GST) is, beyond doubt, the most revolutionary tax-related reform to be seen in India in several decades. It will eliminate the conflicting and cascading taxation structures, which have confounded several industries over the past few decades. It will most certainly have a profound effect on India’s economic prospects. A single, indirect tax, which covers all goods and services will, in the long run, increase tax collection by making it easier for retailers and several other businesses to comply and also moderate overall taxation levels. That said, it should be remembered that the favourable effects of this new taxation regime, will become evident only within 2-3 years of its implementation. Although the GST tax structure has been announced, there is still a lot of uncertainty about which tax rate will be applicable to the real estate and construction industry. The expectations are for real estate to be in the 12 per cent bracket. However, the GST rate is not the only important factor. The abatement rules, as applicable under the service tax regime and the input tax credit facility for developers, will determine if the effective tax incidence on real estate, is lower or higher under GST. Effectively, the composition scheme allowing for abatement against cost of land to the extent of 75 per cent of the house cost, for residential units priced under Rs 1 crore and less than 2,000 sq ft, makes the effective rate at 3.75 per cent. In other cases, the abatement goes down to 70 per cent, making the effective rate at 4 per cent. This will go a long way, in determining whether GST is tax neutral or tax adverse for real estate. The government has offered some clarity, on the abatement rules for under-construction houses and input tax credit benefits for developers.

Why is it a Good Time to Invest in Commercial Real Estate?

Why is it a Good Time to Invest in Commercial Real Estate?

January 29, 2018 in Uncategorized

Real Estate has always been a preferred investment option for an average Indian. It is a great way of creating wealth and adding to your asset portfolio. But the asset class in real estate differs on the basis of its use- residential, commercial, hospitality and retail. Residential real estate has always been the first choice of the buyers as they have the option to either put it to their end use or to let it out on rent and earn a handsome rental return. However, the trends of an Indian buyer seems to be changing lately. The escalation in the price of residential property and the slow rate of value appreciation are the two main reasons why a segment of investors is drifting towards commercial properties. The simultaneous increase in the price of commercial property has been lower than that of its residential counterparts. About a decade ago, investment in commercial property was seen as an affair only the HNIs and ultra-rich could afford. However, with the help of attractive payment plans offered by the builders, now is the good time to invest your money in commercial real estate. Builders are also offering assured returns scheme under which the investors would get a predefined monthly returns till the property is under construction. The new business-oriented government has also revived the market sentiments. Campaigns like ‘Make in India’ would attract more capital inflow into the market escalating the demands. Moreover, the young entrepreneurs in India are increasingly opting for their own start-ups for which they need well-planned commercial spaces. With all factors being in favor of the investors, now is the right time to invest in commercial real estate.

Here’s why offices in NCR now prefer moving to Gurgaon

Here’s why offices in NCR now prefer moving to Gurgaon

January 25, 2018 in Uncategorized

Gurgaon The city has emerged as the favourite secondary business district in the National Capital Region due to the availability of modern buildings that suit the requirements of companies and can be upgraded to superior grade-A assets. The city is the preferred destination for Indian and multinational companies in the NCR, while the central business district of Connaught Place is favoured mostly by Indian firms and those that have to liaison with the government, US real estate services firm Jones Lang LaSalle said in a note. “Gurgaon is one of the major corporate hubs in the country with the presence of nearly 500 MNCs and an even higher number of Indian corporate giants. It offers a good choice of luxury housing, world-class educational centres and healthcare facilities,” said Ramesh Nair, country head of JLL India. Some well-known names in Delhi’s central business district are expected to move to AeroCity, located on the Delhi-Gurgaon Expressway close to the airport, JLL said. The presence of high-end malls, shopping centres, multi-cuisine restaurants and the Rapid Metro System have also played a huge role in the city’s growing importance in the corporate world, according to Nair. “Fundamentals remain strong on account of healthy office space absorption and that increases the city’s position as the preferred residential destination for upper levels of management across various corporations,” he said. JLL said Gurgaon’s rapidly growing infrastructure and quality of construction, amenities, specifications and proximity to social infrastructure will continue to act as drivers for improved demand momentum. Source: economic times    

Top trends driving growth in commercial real estate

Top trends driving growth in commercial real estate

January 24, 2018 in Uncategorized

The Indian economy has been witnessing some steady growth over the past few years. The investor outlook has been quite positive both for international and domestic players despite the sector witnessing huge reforms. Investors are preferring secure income streams and looking at Grade A options. While some sectors like residential, land remain under pressure, commercial leasing activity has been robust with Grade A spaces witnessing steady rise in rentals and valuations. With large scale changes happening everywhere, the business environment has also witnessed newer trends. The commercial real estate space is witnessing some emerging trends which are opportunities that businesses are adapting and using to their advantages. Real estate as a sector has been under pressure largely due to the government bringing in sector-specific reforms to ensure more accountability and transparency into the sector which was otherwise largely unregulated and developer-driven. The investor outlook has been quite positive both for international and domestic players despite the sector witnessing huge reforms. Investors are preferring secure income streams and looking at Grade A options. While some sectors like residential, land remain under pressure, commercial leasing activity has been robust with Grade A spaces witnessing steady rise in rentals and valuations. With large scale changes happening everywhere, the business environment has also witnessed newer trends. The commercial real estate space is witnessing some emerging trends which are opportunities that businesses are adapting and using to their advantages.

Source: Financial Express

Investing in Real Estate: Residential vs Commercial

Investing in Real Estate: Residential vs Commercial

January 23, 2018 in Uncategorized

Residential and commercial realty spaces are popular investment choices that can both increase in capital value and earn dividends in the shape of rental income at the same time. Commercial real estate is property that is used only for business purposes rather than a personal living space. A typical investment scenario is where an investor would own the buildings that these businesses occupy and would collect rent from the business owners. Residential real estate investment involves the purchase of real estate for profit. As the name implies residential real estate is used for the housing of people. Residential and commercial real estate however differ greatly in the rental income that they provide. Many investors seek out dividends to determine whether or not an investment is worthwhile. Commercial real estate typically has longer leases than residential real estate. A longer lease is good for the investor as it provides a more stable income. Commercial real estate is however more difficult to rent than residential realty as a specific type of tenant with specific needs is more difficult to acquire than a residential tenant. Unfortunately for the landlords of residential property any maintenance or repair costs are typically passed on to the landlord whereas commercial properties tenants are usually responsible for any costs. The attractiveness of the rental income of each investment also depends on the risk appetite of the investor. If an investor needs an investment that will provide a more stable income; residential property investment is recommended. On the other hand an investor that is seeking a higher return on their investment would prefer the rental income of commercial property despite the higher risks involved.

SOURCE: PropBuying

NRIs turn interest to commercial property

NRIs turn interest to commercial property

January 22, 2018 in Uncategorized

Non-resident Indians from the US and West Asia are now diversifying their asset exposure and investing more into commercial properties rather than residential due to high risk and imminent slowdown in the segment. The preference is also being driven by better returns from office assets and a fixed income generated by such investments. "Its return outperforms those of traditional FDs (fixed deposits), mutual funds and Sensex, with an average rental return of 7-8% and overall returns of 18-22%. Currently, 40% of our NRI clients are investing in Indian commercial real estate through fractional investment," said Kunal Moktan, cofounder of Propertyshare. Commercial office space vacancy has almost halved in the past six years due to robust demand from corporates. Office space absorption is not only strong but pre-leasing is at an all-time high, which is an indication of sustained demand and occupiers' interest in commercial spaces. Commercial real estate investment in India is driven by leasing, which guarantees higher returns. Source: EconomicTimes    

 

© Copyright 2017
CS LandTraders India Pvt. Ltd Design by Hostcrux

Quick Contact

Your Name (required)

Your Mobile (required)

Your Email (required)

Your Message


Hot Deals

>> <
  • 68 avenue
  • Baani Center Point
  • JMS Crosswalk

Micro Sites

Visit Us On TwitterVisit Us On FacebookVisit Us On Google PlusVisit Us On YoutubeVisit Us On Linkedin