ANAROCK GROUP
Heatwaves burn a hole in hotels' revenue growth
Heatwave conditions and the seasonality of the hotel business impacted revenue growth in May 2024, with average revenue per available room growing only 2-3% year-on-year. Despite air passenger traffic rising 4.4%, occupancy rates remained flat at 60%. High temperatures affected leisure destinations, while business hotel demand recovered in major cities. Analysts expect similar trends in June and muted booking growth for the quarter.
Housing sale decline by 8% Q-o-Q as prices continue to rise
During the April-June quarter, residential sales witnessed an 8% drop compared to the previous quarter, attributed to the election season, heatwave, and rising property prices. Anarock data shows that 1,20,340 units were sold in Q2 2024 across the top 7 cities, down from 1,30,170 units in Q1 2024.
Residential rentals settles down across key cities as more supply hit the market
Rentals in major cities stabilizing post-Covid, with Bengaluru's Whitefield witnessing significant growth. Anarock's Vice Chairman, Santhosh Kumar, attributes the slowdown to new housing supply and academic year commencement. Sohna Road and Dwarka experience modest rent hikes in Q2 2024.
Focus and execution will increase on affordable housing: Prashant Thakur
Now, the definition of affordable needs to be increased. There were certain incentive that have been rolled back. So, these are the demands which were unmet and I strongly believe that with this government coming back in power the focus will be there and we will see an overall spurt in affordable housing which was lagging significantly.
Should you buy a house now or rent it? Key factors that will help you to decide
While property market dynamics play a big role in effecting this decision, equally important is your personal financial situation and lifestage. There are other factors to consider. If you are thinking of buying a house, here the key things you need to check.
Should you buy a house now before property prices soar or wait for home loan interest rates to drop?
A favourable wealth effect, driven by a sharp rise in the equity markets, is enticing many first-time homebuy ers to take the plunge, while affluent buyers are looking for second homes. If you are a fence-sitter, still unsure about when to buy a house, this market presents a big dilemma. Is it the right time to buy a house?
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Mumbai set for another vertical boom, high rise buildings projected to rise over 30% this decade
The number of completed towers of over 40 Floors until 2023 were 154. Now between 2024 and 2030, the number of such towers will be 207. This means would be a 34 per cent jump between the two periods - from 154 towers until 2023 to 207 towers between 2024-2030. Anarock said these 207 towers are under various stages of construction presently with completion timeline anytime between 2024 and 2030.
More than 5.3 lakh homes set to be delivered in 2024, highest in a decade
According to the National Real Estate Development Corporation (NAREDCO) nearly 4.35 lakh units were completed in the top 7 cities in 2023, with expectations of a significant increase this year.
Unsold housing inventory dips by 57% in NCR in five years
Residential real estate upcycle aids NCR, slashing unsold stock by 57% in 5 years, topping nationwide improvement. Southern cities saw moderate declines. Controlled supply boosts NCR's success, buoyed by renewed buyer confidence and regulatory reforms. Gurgaon and Greater Noida lead reductions. Luxury segment drives demand, signaling further project surge.
Luxury homes overtake the affordable segment. What gives?
Factors contributing to the luxury housing boom in India include rising incomes, the trend of premiumization, and pent-up demand post-pandemic. Additionally, the investment appeal of luxury real estate, shortage of luxury apartments in prime locations, and growing NRI investments further fuel this segment's growth.
Why touchy-feely consumerism is here to stay and also thrive
The surge in e-commerce once signaled the demise of brick-and-mortar stores, but a notable shift is occurring as D2C companies expand offline. The trend extends beyond smartphones to FMCG and banking, with consumers favoring physical stores for premium items. Retailers are adapting by enhancing store sizes to provide immersive shopping experiences.
Indian luxury homes claim larger share of sales, report shows
Anarock Group's report shows a significant surge in luxury home sales in India, driven by economic growth and demand from non-resident Indians. Affordable housing sales have declined, with mid-range housing remaining dominant.
County Group to deliver 4 million sq ft in 2024
Noida based real estate developer County Group plans to deliver over 4 million sq ft across three housing projects in 2024, overcoming the challenges faced during Covid. The region where majority of the projects are stuck and buyers are waiting for delivery for over a decade, has seen very few delivered projects since Covid.
Rental soars across cities as employees returned to work; Bengaluru tops the list
Post-pandemic rental demand surge drives up rental values across Indian cities, with Bengaluru leading at 4.45% rental yield in Q1 2024, a 24% growth since pre-Covid 2019. Mumbai and Gurugram follow, reflecting 19% and 15% growth respectively. Average rental rates in key areas of top cities see a significant 4-9% rise.
Developers snap up 58% more land in FY24 amid rising residential demand
In 2023-24, developers and entities finalised 101 land deals totaling 2,989 acres in India, driven by high residential demand. Major deals occurred in top cities, with tier 2 and 3 cities also showing growth potential. Notable increases were seen in residential, plotted development, and township projects, reflecting a buoyant market.
Anarock appoints Peush Jain as MD of corporate leasing and advisory
Anarock launched commercial office leasing services, targeting strategic collaborations and hiring talent to serve corporate occupiers. Peush Jain appointed as managing director, emphasizing a technology-focused approach and projected growth in office leasing driven by GCCs and various sectors.
Residential sale in FY24 reached a decadal high with almost 5 lakh units sold
The Indian housing market saw record-breaking sales in Q4FY24, with 130,170 units sold across the top 7 cities, marking a 14% yearly increase. Total sales for FY24 reached 492,900, a 30% rise from the previous year. Despite new launches surpassing 100,000 units, inventory dropped by 7% annually. Notably, NCR witnessed the highest decline in unsold stock.
Demand for bigger apartments continues to increase: Survey
Despite rising property prices, the demand for larger apartments is increasing. In 2023, 50% of respondents preferred 3BHK apartments, up from 42% the previous year. 38% preferred 2BHKs. 3BHKs are popular in Bengaluru, Chennai, Hyderabad, and Delhi-NCR, while in MMR, 44% prefer 2BHKs. Demand for 1BHK units is seen in MMR and Pune. The demand for luxury homes priced at Rs 1.5 crore has also increased. The most popular budget range is Rs 45-90 lakh.
Indians not hesitant to buy homes in newly-launched projects, under construction projects back in demand: Report
With the implementation of RERA, homebuyers are now more confident in buying newly-launched projects. Strong sales have been reported by developers like DLF, Godrej, Sobha, Brigade, Lodha, TARC, Signature Global, and Max Estates. The NCR real estate market is undergoing a transformation.
Real estate consultancy firm Anarock raises Rs 200 crore from 360 one asset management
Anarock, a real estate consultancy firm, has secured Rs 200 crore funding from 360 one asset management limited. The funds will be used to enhance the company's tech infrastructure, accelerate expansion, and introduce new innovations. This investment will fuel further innovation and growth, helping Anarock maintain its leadership position in the industry. The capital will be used for faster business expansion and improving proprietary proptech platforms.
Average size of home increases by 11% Y-o-Y, NCR sees biggest rise
The average size of homes in India has increased due to the demand for larger houses amid the Covid-19 pandemic. Anarock data shows that in the Delhi-NCR region, the average flat size increased by 37% in a year, while in Bengaluru, it rose by 26%. Luxury apartments accounted for 23% of total new launches in 2023, with an average size of approximately 2,471 sq ft. Developers are actively meeting the demand for bigger homes, especially in the luxury segment.
Flats getting bigger: Size in NCR increases by 37% in a year; reflects pandemic-driven demand
The average size of new houses in India increased to 1,300 sq ft in 2023 from 1,050 sq ft in 2019, with the National Capital Region (NCR) witnessing a significant rise. In the NCR, the average apartment size increased from 1,375 sq ft in 2022 to 1,890 sq ft in 2023, reflecting a 37% yearly growth. The shift towards larger living spaces is attributed to increased demand due to the Covid-19 pandemic. Over a five-year period, the average size of flats across India jumped by 51% from 1,250 sq ft in 2019. Luxury housing also witnessed growth, constituting about 23% of total new launches in 2023.
Developers continue to acquire land on the back of demand for real estate
A total of 97 land deals covering 2,707 acres were closed across India in 2023, up from 82 deals covering 2,508 acres the previous year. Around 72% of the land is expected to be used for residential development. Ahmedabad saw the largest land transaction and the highest land area transacted, while Bengaluru and the Mumbai Metropolitan Region (MMR) also had significant activity. Tier 2 and 3 cities also saw several land deals closed for various development purposes.
Temple boom: Mega opportunities that Ayodhya real estate is throwing up
The real estate boom in Ayodhya has seen a rise in demand and inquiries. The temple town's economic viability, sentiment, and infrastructure have led to a 10-20% increase in land prices. Close to 15 hotel permits have been given, and Rs 30,000 crore has been invested in infrastructure upgrades. The entire region, including Kashi Vishwanath Corridor, Banaras, and Ayodhya, is expected to see a massive interest from developers and buyers. Ayodhya's real estate prices have soared, with a 6x to 10x increase in the last three to five years.
NCR's unsold stock is currently at a decadal low : Anarock
Unsold housing units in Delhi-NCR decreased from 123,692 units at the end of 2022 to approximately 94,803 units by the end of 2023. This decline marked a 23% yearly reduction in unsold inventory, making it the highest annual decline among the top 7 cities in India.
Homes worth Rs 4.5 lakh crore sold in 2023
The residential real estate market in India is experiencing a significant upswing, with the total value of homes sold projected to surpass Rs 4.5 lakh crore in 2023. This marks a substantial 38% increase from the entire sales value in 2022, which amounted to Rs 3.27 lakh crore.
Anuj Puri on how the latest SEZ notification will help developers
“Now, because after the latest SEZ notification, it is going to be a floor-wise classification, you can get the companies who do not want to take advantage of the tax benefit to come in and be classified as a non-SEZ. Since it is done floor-wise, to me that is the most exciting part.”
Bengaluru’s offices second most expensive to rent after Mumbai; rentals up in Chennai, Hyderabad too
The average grade A office rental value across top seven cities surveyed was Rs 83 per sq ft per month, up 7% year on year. Chennai witnessed the highest 10% yearly increase in avg. office rental value from Rs 62 per sq. ft., to Rs 68 per sq. ft., followed by Hyderabad with an 8% yearly growth from Rs 61 per sq. ft. last year to around Rs 66 per sq. ft. in the first half of this year.
Ultra-luxury homes hit record high sales in 2023
“The collective sales value of ultra-luxury homes sold in 2023 is Rs 4,063 crore, in comparison, 2022 saw a total of 13 ultra-luxury homes sold in these cities for a total sales value of approximately Rs 1,170 crore,” said Anuj Puri, Chairman of Anarock group.
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