Is The Indian Realty Sector Seeing New Entrants? – Money Control

Is the Indian realty sector seeing new entrants?
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Is the Indian realty sector seeing new entrants?

All across the micro-markets in India the investor sentiments seemed to have impacted because of the inflationary pressures and increasing interest rates.

The Indian property market has always been traditionally fragmented and unorganized. Nevertheless, in recent times, the real estate has seen a considerable improvement in the market, consolidating with growing property demands.

The most substantial benefits of this economic developments in the Indian real estate will be experienced much more in the second half of 2013. Bengaluru, Delhi and Mumbai have shifted from the 10th, 12th and 15th ranks to the 19th, 21st and 20th positions respectively in the total list of investment destinations listed by the Emerging Trends in Real Estate for Asia Pacific 2013.

All across the micro-markets in India the investor sentiments seemed to have impacted because of the inflationary pressures and increasing interest rates.

It is apparent that Bengaluru is a mature market with moderately stable prices and reasonable trends. Bengaluru’s real estate is over-reliant on the IT sector. Mumbai, on the other hand, is plagued with extra supply among the asset classes, resulting in vacancy and many stagnant yields.

Delhi and the surrounding NCR region is experiencing a booming market, with many development plans being made in areas like Gurgaon and Noida, indicating many capitals from the southern & western parts of India.

Property developers offer attractive pre-launch profits in an attempt to accelerate sales in the initial launch period. Most of the cities in India are said to be experiencing an increase in the residential launches in 2013, especially southern cities like Chennai and Bengaluru.

It is said that these two cities have experienced a historical record with a huge number of launches during 2012. Moreover, Pune has recorded an average of more than 6000 units of residential units over the past 2 years. This is estimated to be more than the average quarterly launches which were recorded in the past few years.

The real estate in India is said to be increasing in the current scenario, and witnessing a higher growth rate. The real estate tycoon Donald Trump’s brand is entering into the Indian markets, with the Lodha Group launching a 'Trump Tower' - an 800-foot skyscraper in a posh locality of Mumbai.

The tower will have luxury apartments with 3-bedroom residence costing upward of Rs. 80 million and 4-bedroom costing at Rs. 100 million. It is said that the Trump organization plans to build many residential apartments and flats in other major cities like Bengaluru and Delhi. Apart from residential, the company is also in collaboration with hotels for coming up with commercial buildings in the near future.

The Jumabhoy family of Singapore, which was once considered the richest non-Chinese family in Southeast Asia, is supposedly entering the real estate market of India. They are the third generation of the Jumabhoy family, which is led by Iqbal, Naseem Somjee and Asad.

They are said to have floated the Indian real estate market with Raffles Residency Pvt. Ltd. and develop ultra-luxury villas in the IT capital of the country. The estimated sale value of the residential project is around Rs. 350 crore and is located in the Whitefield locality of Bengaluru city.

The project is spread across 15 acres of land, and has more than 60 villas. It is estimated to get completed by the end of the year 2015.

Many Indian cities are developing their own metro rail networks, which are considered to be the most important aspect of the increasing real estate markets.

These metro systems make commuting as easy as navigation, making it possible for many to stay as far away from their workplaces as possible. In the whole of India, Delhi boasts of having a great metro rail network and hence is experiencing a booming real estate.

Other cities which have metro or mono rail networks under construction include Chennai, Mumbai, Bengaluru, Jaipur, Hyderabad, Kozhikode, Thiruvanathanpuram and Kochi.

The Indian real estate has been reinventing its basic structure and operations in the recent times. As compared to other sectors, the real estate sector has been more reassuring the past 3 quarters of the financial year 2013.

The real estate has been on a more promising pathway with increasing brand recognition all over the world. The Indian realty assets are said to be in high demands by the NRI and FDI investors.

Some of the upcoming residential projects all over India include Gaur Soundarya, Gaur City-2, Serene Spaces, Kasturi Voyage, Insignia Brooklands, Destiny, Unitech Unihomes, Cherry County, Brigade Sonata and Emaar MFG’s Marbella.

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