Image credits : DNA

Two major Indian cities; Mumbai and Delhi have made their entry into the top 30 list of the world’s most productive, powerful and well connected cities.

Global Top 30 List:

According to research report of JLL India, the international real estate consultancy, Mumbai which is also the financial capital of country has been ranked 22^nd whereas; our national capital Delhi has been ranked on the 24^th spot in the list of 30 super cities of the world. However; in the list the top five cities were; Tokyo, New York, London and Paris. The Tokyo, New York, London and Paris are the cities which are the destination of more than 50 per cent of all foreign capital investment, says Global Top 30 list of JLL India. According to JLL, “All top 30 cities account for 64 per cent of the total cross-border investment as their common interest are commercial attraction or economic attraction and real estate power and status.

List of Improvers:

Apart from that Mumbai is also ranked in the top 10 list of “Improvers” that needs more development and past one year has increased the commercial attraction. However; the other cities which have increased the commercial attraction includes; Tehran (Iran), Madrid (Spain), Riyadh (Saudi Arabia), Milan (Italy), Jeddah (Saudi Arabia), Lagos (Nigeria), Cairo (Egypt), Jeddah (Saudi Arabia), Istanbul (Turkey) and Jakarta (Indonesia).

.According to the reports of JLL India, with growth of more than 7 percent in the cities over past three years, it is no wonder that Mumbai and Delhi has made its entry into the Global Top 30 list with strong presence. The more they added that these reforms are undertaken by the government and it is boosting the confidence in the economy of nation. According to reports, the Mumbai is making its strong presence into the hub for global corporations with the help of firms which are among the world’s 2,000 largest companies and they all have headquartered in the city by rising 50 per cent over the last 10 years. The index of commercial attraction is the primary benchmark of JLL in terms of size and strength of the city’s real estate market and economy development.  As per the statement of Anuj Puri, Chairman and Country Head of JLL, “In Mumbai construction levels are high and it is increasing the Grade-A stock by 26 percent in last three years and it is expected that in next three years it will add more 22 percent. Apart from that Mumbai is also enhancing its position as a hub of global corporations because here you can easily find the headquarters of world’s 2,000 largest companies.

List of Global 300 Cities:

In context of the Global 300 cities, Mr. Puri stated that cities which make up the Global 300 are the world’s most productive¸ connected and powerful. Their 1.3 billion citizen’s account for nearly 40 percent of global economic activity, more than Europe and North America combined. These cities have hosted that more than 88 percent of the headquarters of the world’s 2,000 largest listed companies, which are able to generate the 40 percent of the world’s finance as well as business employment. In this list you can see the overwhelming focus of international corporations, hotel brands, real estate investors and retailers. The Global 300 cities are representing the bulk of commercial real estate market activity.

Housing sell will rise – festive season.

This Dewali, residential property sales may rise up to 15 per cent due to various offers and discounts by real estate developers as there are many real estate developers who are offering 15 to 20 per cent discount through various means. According to real estate experts, this festive season can holds out the hope of Indian real estate market as in major markets the demand from end users are increasing. Experts are estimating the growth of up to 15 per cent and more in residential property sales in comparison of previous year.

According to Chief Executive of one of the Mumbai-based real estate company, “From past one year there was no major price appreciation in real estate market, but this time real estate developers are offering 15 to 20 per cent discounts with an aim to make the net gain of 25 per cent in prices for buyers.” However; price reduction seems to be the most important primary reason for the consumer pull. In comparison of last year, growth in sales should be between 15 to 20 per cent, however; it also depends on the market and it is showing positive curve towards growth, as per the statement of experts, “It’s not time when we should expect the high growth number in comparison of previous boom. But still it’s expected that consecutive years of growth will help the market to recover from deep down phase. And due to that this year we are expecting good numbers”.

As per the statement of Sanjaya Gupta, MD of PNB Housing Finance, “Hyderabad, Pune, Bengaluru and the suburbs of Mumbai had seen increased activity in last few years. Last week were surprised to hear that transactions in south Delhi was high with ten high-end floors being sold. We can say that its harbinger of better sentiment”. Apart from new launches dwindling in major cities such as; Mumbai Metropolitan Region, Bengaluru, Delhi and NCR expecting are high time because most of the real estate developers focusing on clearing inventory with ready-to-move in houses in next 6 to 12 month. It will improve the confidence of buyers or end users accustomed to seeing delivery commitments being flouted. According to PropEquity, a real estate consultancy, the number of new launches in MMR, Bengaluru and Delhi-NCR has come down by over 61 per cent with 87,298 dwelling units during January to September from 227,211 in the same period of 2012.

According to statement of Pankaj Kapoor, MD of Liases Foras, “There would be a significant improvement in sales for this festive season because interest rates had come down and price had not gone up so much and developers are also offering the discounts”. The more he added that over the year’s income of working couples have raised by 10 to 15 per cent, which means affordability has improved in most markets such as; Delhi, Mumbai and NCR. In real estate market the inventory level for first quarter of 2015-2016 was rose by 24 per cent to 41 months in all major eight cities. However; NCR had the inventory of 68 months, MMR had the inventory of 45 months, and Bangalore had the inventory of 30 months, as per the reports of Liases Foras. An efficient housing market maintains 8-12 months of inventory.

It’s clear that Indian realty market has been hit economic slowdown, financial constraints of developers and low sales in last two years. According to Ashutosh Limaye, National Director, Research at JLL India, “This year will be better than the last year”. The plus point in this season is the price and it is attractive for buyers and end users. The more he added that still there is scope for negotiation. The festival season is started from October and it will continue till December, it is expected that 30-40 per cent of total house sales but in last two years very little activity has been recorded during the season.