Indian real estate sector 2016

In present, the rest of the world is considering our country as the land of opportunity for investment and business.  If we are talking about the real estate scenario for 2016, so no doubt it could be great year for residential as well as commercial projects.

1. Residential Properties:

It is expected that year 2016 will not bring some great hope for the residential sector as demand will remain constant. However; we can expect that silver lining will shine more and bad days of the real estate segment will be bottomed out; as according to reports in some cities sales have picked up and these cities are; Mumbai, Hyderabad and Bangalore. However; you can expect less launch in the cities such as; Mumbai as inventory level is already high. Real estate developers initiatives such as; attractive schemes, freebies, deal terms and heavy discounts with lower interest rates by RBI have activated fence-sitters. It is expected that year 2016 will end the long and painful journey of real estate market and signal an upward growth trajectory. It will definitely mature further into an organized industry in which some lesser- organized players become casualties.

2. Office or Commercial Properties:

The absorption rate of commercial properties as well as office spaces are still at 35 million sq ft and it is second highest figure in the history of country after the year 2011. However; the PAN India vacancy is still at the 16 percent, whereas; the realistic vacancy actually stands about 8 to 9 percent. It is expected that in the year 2016 the demand will remain consistent as occupiers are showing a positive bias. The years 2016 will bring more demand for leased spaces however; the quality supply will be lower. It means in year 2016 we can expect higher occupancy for Grade-B office spaces.

3. Retail Properties:

In 2015, there were no launch for the quality retail space and the major trend which we observed in the year 2015 were; the consolidation of retail real estate by retailers and big brands are focusing on the profit making stores and they are closing down the loss making stores. These days there are more institutional investors and all credit goes to relaxation of sourcing norms as single-brand retail companies are able to explore the Indian market. It is expected that years 2016 will be good year for the retail investors as there are many ecommerce companies which are planning to set up their retail stores in near future. Retailers will have to revisit their real estate strategy and have a flexible approach, customized to different micro-markets.

Capital Markets:

The year 2015 was the interesting year for capital market activities in the real estate market as PE focus continued to remain high for the office and residential projects. The platform-level deals and entity-level investments are also came into the limelight as the level of confidence are increasing among the investors.  The income yield of the office projects are attracting the majority of equity investments and when it comes to the geographical spread, so we can say that tier I and tier II cities are good for the investment in the offices spaces because over there you can earn more rent.

Image Credits : DNA

The Smart City initiative of the Central Government aims at improving the quality of urbanization in 100 cities of India. Smart cities will receive funding to enhance their core infrastructure like water, power, sanitation, transport, housing and digital connectivity. Each Smart city is proposed central funds of Rs. 500 crore, state funding of about Rs. 250 crore and a similar amount from the local civic body.

Senior officials from The BrihanMumbai Municipal Corporation said Lower Parel in South Mumbai is a strong contender among other areas like Nariman Point, Andheri (W) and Fort for area-based development under the Smart City project. The BMC is in its final stages of preparing the SmartCity detailed report which is likely to be released in two months. Many rounds of stakeholder consultations are in process and feedback is also being elicited from citizens through social media like Facebook and Twitter.

“Lower Parel has both residential and commercial uses. It has a very different connotation as far as traffic is concerned; people can walk to work. Walkability is an important factor for development of a Smart City,” said a senior civic official working on the report. “Lower Parel is the only area in Mumbai with five suburban railway stations nearby; Lower Parel, Elphinstone, Currey Road, Chinchpokli and Mahalaxmi. A monorail station is also likely to come up in the vicinity, thus providing good connectivity to citizens via the mass transit system,” the official added.

“If Lower Parel is selected, many civic services can be improved in the area. Currently the BMC provides only four hours of water supply, but has proposed to increase it to twenty hours by next year. World-class roads will be built to ease heavy pedestrian traffic,” said another BMC official. The BMC, which is working on a city mobility plan, will take up Lower Parel as a priority area for implementation. The civic body has identified missing links in the area where bridges will be proposed connecting two areas, like Lower Parel to Saat Rasta. Planning on better waste management is also on the cards for this suburb.

However, S V R Srinivas, the Additional municipal commissioner said that the report is still in its draft stage and Lower Parel is only being considered among other areas. Due to the infrastructural advantages, this area has an edge over other nominees.

On Sunday, Two-days Times property exhibition kicked off at the Clube Tennis de Gaspar Dias hall, Miramar, where more than 10 well known real estate developers have showcased their properties and latest projects. Jai Bhuvan builders, Sinari developers, Shah Housing, Devashri builders, Vision developers, CMM Stores and Dempo builders were among few real estate developers who have showcased their residential projects.

Times property exhibition was perfect destination for those who were looking for premium properties as well as affordable properties because here one-bedroom flats, duplexes and luxury residential villas were available. With a wide variety of homes to choose from, residents of Goa were keen to find their own space to call home are spoilt for choice. The exhibition offered Goans a unique opportunity to review and select the most suitable residential or commercial project to call their dream office or home.

Here wide ranges of properties were available, which was good enough to appeal to every budget and with new projects coming up in various parts of Goa, location cannot be a problem either. After a slow down, there seems to be a revival in the real estate business with several promoters launching new projects. Some of the people queuing up to check the projects are also eyeing second homes as an investment.

Delhi-Mumbai Industrial Corridor Development Corporation

Now finally work is going to start on building the smart cities at Delhi-Mumbai Industrial Corridor, and for that central government has moved the conceptualization stage and now after five years they finally sought bids for building core infrastructure on Delhi-Mumbai Corridor.

On last Thursday, DMICDC (Delhi-Mumbai Industrial Corridor Development Corporation) invited the bids for trunk infrastructure and setting the stage for construction of core infrastructure projects in the proposed of green-field city for the Pithampur-DharMhow Investment Region, which is in Madhya Pradesh. According to authentic sources the estimated cost for the initial projects can be worth of Rs 300 crore. Later on Friday evening, the Trust of Delhi-Mumbai Industrial Corridor Development Corporation (DMICDC) cleared three smart city projects for a second city in Dholera, which is in Gujarat and it will include the administrative building, water treatment plant and roads and utilities in the first stage. Along with all development and as well as with sewerage treatment plants and common effluent, it is expected that these will be of worth Rs 2,650 crore. After getting the green light from the trust, now DMICDC is planning to seek bids later this month. In next step there will be more bids for similar infrastructure facilities in Shendra, which is in Maharashtra and it will be the third city on which bids are expected to be sought by the end of the financial year.

As per the officials, the work on Integrated Industrial Township in Greater Noida is in progress and for some of the work bids will be invited by the end of March. The fifth project is the Global City near Gurgaon and for that master plan is about to complete. Now DMICDC is too keen for the trunk infrastructure in these three cities as they are ready over in next three years so that work on commercial projects, residential properties and factories can commence. Central government is hoping that the private sector will take over once the core infrastructure is in place. Apart from these five smart cities central government is targeting 100 smart cities, in which most of them will be the upgrading of existing ones, while proposed cities along with the industrial corridor are green-field projects. We all know that in India, only a handful of new cities have been built after the independence.

Upcoming projects in Mumbai

Mumbai is the financial hub of country and driving the maximum economic growth in comparison of rest of the cities. From past many decades, Mumbai is attracting the investors and it is the main reason for the success of this commercial hub. Many premium real estate developers are launching the new projects in Mumbai, which includes commercial projects in Mumbai as well as residential projects. Some of the upcoming projects in Mumbai are; Ornate Synergy in Andheri West, Hubtown Jewell in Andheri West, Kabra Jay Vikas in Malad West, Geeta Platinum in Mira Road and more.

In Mumbai, commercial and residential both projects are in huge demands and to cater the needs of people premium developers are developing the new projects for affordable as well as for luxury market. upcoming projects in Mumbai are reflecting the positive trend in real estate market of Mumbai and it includes commercial projects in Mumbai and as well as residential projects. According to real estate developers if end user and investors are looking for new investment, so it’s good time to buy the property in Mumbai. Investing in new projects in Mumbai can bring the good returns in future because real estate market of Mumbai is the most favorite destination of investors, no matter they are from India of they are NRIs. Some developers such as; Manohar Vikas Group, Mohan Group, Poddar Group and Ankita Builders are constructing the premium as well as affordable projects in Mumbai.

Features of upcoming projects in Mumbai:

Mumbai is place, where the cost of residential as well as commercial project prices are not less than London and New York, in short we can say that Mumbai is the hottest property destination in the world. Mumbai always shows the latest trend of real estate sector, and even after that developers are willing to construct the affordable projects in Mumbai and now even Indian Government is taking the initiative to offer the affordable housing for the residents of India. New projects in Mumbai are available in different range according to the need of customer. The latest trend in real estate has made middle and upper middle level to come to together and make the investment in real estate sector to get the best outcome of their money. Thane, Navi Mumbai and central Mumbai is the favorite destination for who want to invest in commercial projects in Mumbai.

On the other side developers are playing with the decision of investors and end-users by launching the new lucrative schemes for commercial projects in Mumbai and upcoming projects in Mumbai, Even now to clear the old inventory of real estate projects developers are ready to negotiate and offer the gifts such as; free registration, car, AC, modular kitchen and more. New projects in Mumbai are the great option for new investment because it could bring the good ROI in future.