As per a recent report by the global real estate services firm, JLL India, the residential real estate market witnessed an increase of 22 per cent in sales at a pan-India level during the first half of 2019. This indicates that housing sales have remained strong despite modest new launches in the country. With developers focusing on delivery of already launched projects, new launches of residential units have decreased by 11 per cent on a year-on-year basis across the top seven cities, Mumbai, Bengaluru, Delhi NCR, Pune, Hyderabad, Chennai and Kolkata. Key markets that accounted for more than 60 per cent of total sales this year include Mumbai, Bengaluru and Delhi NCR.
In recent times, new government policies such as Real Estate Regulation Act (RERA) and Goods and Services Tax (GST) have contributed to the overall stability and reform of the real estate market. In addition, the Insolvency and Bankruptcy Code (IBC) has had a significant positive impact on the overall system within the sector. This has come as a boon to consumers who welcomed the much-needed transparency and increased efficiency in this segment.
Ramesh Nair, CEO and country head, JLL India says, “A series of reforms and rising buyers’ interest in the segment have propelled the sector to align itself to the market demand. Interestingly, in most cities, homebuyers continue to focus on ready projects and projects nearing completion. As a result of this shift in buying preference, developers too are focused on completing their ongoing projects.”
There is also a strong push by the big players in the luxury real estate segment. The reports coming from this sector, however, are often conflicting. Luxury real estate giants continue to be bullish in their expansion plans while many reports suggest a slowdown in this premium segment.
We have handpicked three players in different segments — M3M India, a giant in the Delhi NCR zone, Kolte-Patil Developers Limited, with a dominant presence in Pune and now expanding in Mumbai, and Isprava, which is redefining the luxury holiday homes sector in certain leisure spots in India.
Affordable Housing
Indian Real Estate Consumer Sentiment Survey: H1 2019, a study by leading real estate services company in India, Anarock, reveals that affordable housing is gaining prominence in the residential segment owing to Standard Operating Procedures (SOPs) offered by the government over the last five years.
As per JLL India, the share of affordable and mid-income housing has seen an increase of up to 58 per cent at the country level. Pune tops the list, with 91 per cent of the new supply falling in the affordable and mid-income category followed by Chennai and Bengaluru.
Anarock also indicates that nearly 85 per cent of the launches in Pune were in the affordable and mid-segment/budget segment. However, these segments recorded the highest decline of 53 per cent and 35 per cent, respectively over the previous quarter.
In the commercial real estate sector, Mumbai recorded a gross absorption of 3.9 million sq ft (3,70,500 sqm) in the first-half of the year, which is 9 per cent higher than H1 2018. A notable increase of 51 per cent in new supply compared to H1 2018 maintained the leasing momentum through the first half of 2019, reports Colliers International, a global commercial real estate services organisation.
Consumer sentiment survey highlights by Anarock
- The year 2019 seems to be relatively brighter for the real estate market. Several factors that led to it include competitive property prices, GST rate cuts and budget announcements favouring particularly affordable housing.
- 57 per cent prefer to invest in real estate as an asset class, its share increasing by 4 per cent against the preceding survey – H2 2018.
India’s Top 10 Most Expensive Housing Locations
- New residential property at Tardeo in Mumbai comes with an average price tag of ₹56,200 per sq ft in the primary market.
- Worli and Mahalaxmi also in Mumbai are in the second and third spot, commanding ₹41,500 per sq ft and ₹40,000 per sq ft respectively.
- In Chennai, Nungambakkam ranks fourth with an average price of ₹18,000 per sq ft; Egmore ranks fifth at ₹15,100 per sq ft and Anna Nagar stands at seventh position with ₹13,000 per sq ft.
- No localities in Bengaluru and Hyderabad make it to the top 10 list
- In NCR, Karol Bagh comes in sixth and Golf Couse Road ranks ninth on the list of most expensive luxury residential destinations, with an average price of ₹13,500 per sq ft and ₹12,500 per sq ft respectively.
- Pune’s Koregaon Park ranks eighth on the list, while Alipore in Kolkata ranks 10th. Average prices for luxury homes in these two micro-markets are ₹12,500 per sq ft and ₹11,800 per sq ft respectively.
Source: Anarock Research
Kolte-Patil Developers Limited
Overview
Incorporated in 1991, Kolte-Patil Developers Ltd (KPDL) is a leading real estate company with a dominant presence in the Pune residential market. It is a trusted name with a reputation for high quality standards, design uniqueness, transparency and timely delivery projects. The company has developed and constructed over 50 projects including residential and commercial complexes and IT parks. The company markets its projects under two brands, Kolte-Patil (for the mid-income segment) and 24K (for the premium segment). Several of the company’s projects have been certified by the Indian Green Building Council. Additionally, KPDL has also established itself as one of the largest listed players in the redevelopment space in Mumbai, with 12 projects. The company is the number one residential real estate player in Pune with, in the pipeline, 28 million sq ft of projects under execution and approval.
Current Projects
Kolte-Patil has a presence in Pune, Bengaluru and Mumbai.
Pune: Life Republic, Ivy Estate, Tuscan Estate, Three Jewels, Western Avenue, Centria, 24K Atria, 24K Opula, 24K Stargaze, 24K Sereno
Mumbai: Jai Vijay and other projects with an aggregate development potential of 1.25 million sq ft
Bengaluru: Raaga, Mirabilis, Exente, 24K Grazzio
Mission
- To build spaces that are present-perfect and future-proof.
- To become a favoured name in the real estate segment for customers and channel partners.
- To adopt a 360-degree business approach focusing on social, scalable, profitable and sustainable growth.
- To invest judiciously in technology to allow faster construction, data-driven decision making, and a reduction in customer service time.
- To invest in capital growth, to nurture a zero bureaucracy culture that maintains a fine balance between individual aspirations and teamwork.
- To follow an asset-light philosophy looking at shorter paybacks, faster cash flow generation, strong working capital management and higher returns.
Isprava
Overview
Launched in 2013, with the singular aim of becoming a global leader in the luxury home segment, Isprava is built on the pillars of exclusivity, comfort and integrity. Isprava is India’s leading luxury home developer with luxurious, fully-furnished and serviced homes offering exclusivity and luxury in breathtaking destinations like Goa and the Nilgiris. A company that has been invested in by the Godrej Industries, Piramal Family Office and other international UHNIs, Isprava has grown from strength to strength and become very popular in the circles of the world’s elite, including celebrities, sportspersons and industrialists. Isprava has two verticals: development and rentals. Isprava’s goal is to complete and deliver 500 homes in
both these verticals by 2020. It is also expanding into new markets like Lonavala and Alibaug.
Current Projects
Isprava currently has over 50 projects in the pipeline across Goa, Coonoor and Alibaug. Few of its upcoming projects are part of its very prestigious collection of estate homes. The Glenwood Estate in Coonoor is a 180-year-old estate that has won many accolades for its gardens and landscaping. It is now being refurbished by Isprava to carry on its legacy. Estate de Alta Palmeira, located on the bank of the Chopdem river, Goa, is a beautiful plot with a breathtaking river view on one side, and lush greenery and palm trees on the other. The plot will hold a sprawling estate with a private swimming pool.
Mission
- To make an indelible impression with every home crafted.
- To celebrate a carefully preserved heritage alongside a dynamic engagement, with modernity, to leave behind a legacy that is unique and unforgettable.
- To be an iconic global brand, which is synonymous with the largest purveyors of luxury, giving our investors the most lucrative opportunities in the luxury lifestyle sector.
- To empower our customers by our presence and to build trust.
isprava.com
M3M India
Overview
M3M today is amongst India’s top three real estate developers with a reputation for identifying emerging real estate markets. In less than a decade, M3M has emerged as an illustrious real estate developer with speed, class and innovation being at the core of its vision. The group has launched a slew of iconic projects, designed and developed by world-class partners. They epitomise the new bustling millennium Gurugram.
Milestones and Achievements: During the last financial year, the group recorded sales of INR 3,700 crore. In terms of area, close to 10,00,000 sqm of real estate were developed by M3M last year, making it one of the largest real estate conglomerates across the country. Approximately 15,00,000 sqm of area will be developed by the group in the near future. A new customer base of 2,500 is also being targeted. The group recently brought to north India, its first Trump Towers. The global appeal of the Trump brand, along with the absolute best product offering is expected to give the luxury residential market in the region a much-needed boost.
Current Projects
M3M has a presence across the National Capital Region with properties as follows: M3M Prive73, M3M IFC, M3M Broadway, M3M Cornerwalk, M3M 65th Avenue, M3M My Den, M3M Skylofts, M3M Urbana, M3M Urbana Premium
Mission
- To deliver high-end living with impeccable standards of professionalism, ethics, quality, service and taste.
- To be an ethical, growth-oriented organisation, that strives for customer delight, by delivering best-in-its-class projects, with uncompromising quality standards, through innovation and speed.
- To adhere to the highest standards of business ethics and best practices in every area.
- To set new benchmarks in customer satisfaction, employee motivation and business associate relationships.
- Resolve to assist underprivileged sections of society.
m3mindia.com
