Fractional Ownership In Real Estate Will Enable Retail Investors To Enter Commercial Space
The real estate sector in India has been witnessing an impressive demand since last year after a two-year hiatus due to the pandemic-induced lockdown. Almost every segment of the sector, including residential and commercial, is witnessing good growth. Amid this, a new ownership system is gaining popularity in India – fractional property ownership or FPO. In an interview with news18.com, 360 Realtors founder and MD Ankit Kansal spoke on various aspects of fractional ownership in real estate and its future. Edited excerpts:
Do you think Indian real estate is mature enough to embrace fractional property ownership?
Indians have always invested in real estate, believing it to be a relatively safer, tangible, and high-yield investment with limited downside risk. Fractional property ownership (FPO) will further bring a new dimension to the Indian penchant for real estate and unlock new opportunities for investors. It will enable increased investment from smaller investors in the commercial real estate space, which has been mostly managed by HNIs and institutional investment houses till now.
With the advent of fractional space in India, now even someone with a modest amount of Rs 20 lakh can invest and own a part of a high-ticket office space or other commercial assets and earn attractive rental yields and IRR (internal rate of return). Property developers will also get access to new funding streams.
As an investor, how is real estate FPO different?
It will reduce the barrier for retail investors to enter the commercial real estate segment. Buyers and investors can own part in one or multiple commercial assets. This would not only boost the ROI (return on investment) but will also greatly help in diversifying the investment and absorbing risks.
Under fractional ownership, the owner can sell a property after 51 per cent of the pooled investors are willing to do so.
Is fractional real estate only limited to office and commercial assets?
While FPO includes commercial assets such as offices, warehouses, and industrial plots, numerous other income-generating categories can also be marketed as fractional property. These include hotels, resorts, vacation villas, co-working spaces, and co-living spaces. It can be further extended to other assets such as business parks, shopping malls, and even SEZs (special economic zones).
Basically, any income-generating asset offers an option to be transacted under fractional property ownership.
How do you see the Securities and Exchange Board of India's (Sebi) keenness to regulate the fractional ownership space?
Sebi's recent decision to regulate the overall space is a positive step as it will help in boosting investor confidence and set up the right framework for entities to operate. Managers and sponsors operating in the space have to declare their net worth. Likewise, there will be a code of conduct mandated for managers about how to go about their proceedings.
This will not only bring in more structure and transparency but also imply discipline in the segment. The involvement of entities like Sebi further underscores how lucrative the category is with a near-exponential growth potential. Regulation and structure will also invite larger real estate players to enter the segment. In the next five years, we assume 70 per cent of the market will be run by larger players, bringing in increased discipline and faster growth in the overall segment.
What do you think will be the biggest game changer in the space, going forward?
Technology will be one of the key game changers in the FPO space in India. It will enable creating full-stack platforms, integrating both forward and backward value chains. At the forefront, it will help FPO entities to showcase multiple properties on the platform, reach out to banking and finance institutions, empanel channel partners, and create a seamless investment experience.
Meanwhile, in the background, it will help in extending the reach by exploring newer property investment options, setting up a robust due-diligence team in place, and creating a transparent database system.
Another factor that will be pivotal is the advent of predictive analytics and blockchain. Big data and data science are in their initial phases in the property market but can soon change gears. The impact will be mind-blowing for the FPO segment as it will create multi-variate practical models for the buyers to make informed bullet-proof decisions. Likewise, once blockchain will become popular, it will unearth whole new options for the tokenization of the property market.
How do you think the FPO market will evolve in India from here?
The FPO market will continue to evolve from here, which will include expansion in size as well as transformation in temperament. The space will be an interplay between property tech, fintech, and regulatory tech. While recent time has seen mushrooming of online platforms, going forward few big players will also enter the space, resulting in increased consolidation and organisations.
The emergence of big players will also help in strengthening the supply lines, enriching the ecosystem, and bringing in better talent pools. Not to forget experimentation with technology and further enhancing the product offerings.
Jaipur Real Estate
Jaipur-based realty developer Manglam Group has announced an investment of Rs 200 crore for a residential project ‘Manglam Rambagh' at Jagatpura in Jaipur. The company said this gated township is a premium project with meticulously designed features and facilities.
“Spanning across an expansive 2.2 acre of prime land, the Manglam Rambagh Project offers a haven of 114 flats spread over six floors, each meticulously curated to cater to the epitome of luxury living. The flat types include 3 or 4 BHK flats and 5 or 6 BHK penthouse, boasting spacious dimensions ranging between 2370 sqft to 6120 sqft,” Manglam Group said in a statement.
Amrita Gupta, director of Manglam Group, said Manglam Group is at the forefront of forging a sustainable and green future, and the Manglam Rambagh Project exemplifies this vision. This marks the company's maiden venture entirely dedicated to the green building concept.
Gupta added that the company is not just building homes, it is also cultivating a greener lifestyle and nurturing a healthier tomorrow. The company's commitment extends beyond luxurious living; it encompasses environmental responsibility.
“The project incorporates eco-friendly features and innovations that reduce our carbon footprint and promote sustainable practices. This milestone underscores our dedication to pioneering environmentally conscious real estate solutions, shaping a future where luxury harmonises seamlessly with sustainability, ushering in a brighter and greener tomorrow,” said Gupta.
The luxurious abodes are competitively priced, ranging between Rs. 1.38 crore to Rs. 3.73 crore, offering a comprehensive range of amenities that redefine the art of living. The project boasts a sprawling 700 sqyd garden area that serves as a serene escape amidst nature's bounty. Residents can also indulge in the grandeur of the 1.66-acre luxurious clubhouse that adds a touch of sophistication to their lifestyle. The Group is expected to generate Rs 100 crore in sales by March 2024 and an additional Rs 90 crore by March 2025 from this project.
“Strategically located, the Manglam Rambagh Project offers unrivalled connectivity to key areas of Jaipur, including Malviya Nagar, Tonk Road, Sitapura Industrial Area, and Ramchandrapura Industrial Area. Commuting convenience is further assured with proximity to prominent landmarks like the 7-number bus stand (1.3 km), NRI Circle (1.5 km), Jaipur International Airport (8 km), and St. Mary's School (200 meters). With a focus on holistic living, the project has been designed to adhere to Vastu principles, enhancing the overall harmony of the living spaces. The open Brahma Sthaan of the project resonates with positive energy, creating an environment of tranquillity,” Manglam stated.
Home Buyers Take Note
Buying an under-construction flat in a society in India is among the big investment decisions for many home buyers, and there are several important factors to consider before making such a purchase. Whether or not it's a good idea to book a flat in an under-construction site depends on a number of factors, including your budget, needs, and risk tolerance.
Home buyers purchase under-construction properties due to reasons like;
Lower price: Under-construction flats are often priced lower than completed flats, as the builder has not yet incurred the full cost of construction and development. This can be a good opportunity to save money, especially if you are buying a flat in a popular location or with a high demand.
Also Read: Residential Real Estate Trends: Expert Tips In Navigating A Shifting Landscape
Flexibility: When you book a flat in an under-construction society, you may have the opportunity to customise the layout and finishes of your flat to your liking. This is not always possible with completed flats, as the builder may have already made these decisions.
Appreciation: The value of your flat is likely to appreciate over time, as the construction is completed and the society is developed. This means that you could make a profit if you decide to sell your flat in the future.
However, like advantages, there are risks involved with an under-construction property, like a delayed project.
There is always the risk that the construction of the society may be delayed. This can be due to a number of factors, such as bad weather, unforeseen site conditions, or financial problems with the builder. If the construction is delayed, you may have to wait longer to move into your flat. This is the biggest reason for delayed projects in Delhi-NCR region where buyers are waiting for their dream homes for many years and fighting legal battles.
Overall, whether or not to book a flat in an under-construction society is a personal decision. It is important to weigh the pros and cons carefully before making a decision.
Here's a comprehensive list of things you should know and consider:
Builder's Reputation: Research the builder's reputation and track record. Look for reviews, speak to previous buyers, and check if there have been any legal issues or disputes with the builder. However, this should not be the sole factor to buy a property as many popular real estate developers have failed in recent years and their projects are stuck.
Project Approval and Licences: Ensure that the project has received all necessary approvals and licences from the local authority and government bodies. Check for environmental clearances, land title, and land use permissions.
Project Location: Evaluate the location of the project in terms of accessibility, proximity to schools, hospitals, markets, public transportation, and future development plans in the area.
Project Plan and Layout: Review the project's architectural plans, layout, and floor plans to ensure they match your requirements. Check for open spaces, amenities, and green areas within the society.
Legal Due Diligence: Hire a legal expert or lawyer to conduct due diligence on the property. Verify the builder's legal ownership of the land and ensure there are no pending litigations or disputes.
Construction Timeline: Get a clear understanding of the project's expected completion date and whether the builder has a history of delivering projects on time.
Builder-Buyer Agreement: Carefully review the builder-buyer agreement, including clauses related to possession date, penalty for delays, and the scope of changes or customisation allowed. This document will be the basis of communication with the builder. It's essential to get it read by a real estate expert so that you have a fair understanding of the agreement.
Quality and Specifications: Understand the quality of construction materials, fixtures, and finishes that will be used in your flat. Ensure they meet your expectations.
Payment Plan: Check if the builder offers a construction-linked or time-linked payment plan. Understand the payment milestones and their timing.
Loan Approvals: Ensure that the project is approved by banks and financial institutions for home loans. This is crucial for securing your financing.
Legal Compliance: Ensure the project complies with RERA (Real Estate Regulation and Development Act) regulations. The builder should have registered the project with the local RERA authority.
Amenities and Common Areas: Verify the promised amenities and common areas such as parks, parking, clubhouse, gym, and security arrangements.
Maintenance Charges: Understand the maintenance charges and how they will be calculated. Ensure that these charges are reasonable and fit within your budget.
Legal Documentation: Ensure all legal documentation, including the sale deed, possession letter, occupancy certificate, completion certificate etc. are in order before making the final payment. Remember, some of these documents are granted by the authority only after project completion.
Home Inspection: Before taking possession, conduct a thorough inspection of the flat for any defects or unfinished work. Ensure that the builder addresses these issues and communicate your concerns in writing.
It's essential to be well-informed and conduct thorough due diligence when buying an under-construction flat in India to protect your investment and avoid potential legal or financial issues in the future. Consulting with a real estate advisor or legal expert is highly advisable throughout the process.
A Tool To Achieving Efficiency
Adapting to technological advances is not a new thing in this modern era. Every direction you turn to, every aspect of your life you look at, and every step you take in life is related to the leaps and bounds of science and technology.
In such a scenario, real estate is a late entrant, one might say. The industry in India is expected to grow from $200 billion in 2021 to $1 trillion by 2030, according to a joint report by NAREDCO (National Real Estate Development Council) and EY (Ernst & Young).
Although other industries have long embraced innovations such as cloud storage, sensors, and mobile tech, the real estate sector has taken a little longer to start widely adopting these technologies. There are a few reasons for this.
First, realty is a traditional industry, and change can be slow to come. Second, real estate transactions are often complex and involve multiple parties, which can make it difficult to implement new technologies. Third, the sector is highly regulated, which can also make it difficult to adopt new technologies. However, there are now several reasons why the sector is starting to adopt new technologies more widely.
The cost of these technologies has come down, making them more affordable for businesses. Additionally, the benefits of these technologies are becoming more clear, as businesses see how they can improve efficiency and save money. Also, the government is starting to support the adoption of new technologies in the sector.
One such extremely important and efficient advance is proptech (or property technology). It is a type of software that helps real estate and property companies manage and optimise their portfolios throughout the entire lifecycle of their buildings, by automating tasks, providing insights, and connecting people and data. They can also help with everything from marketing and sales to property management and maintenance.
Convergence With Fintech Firms
Proptech and fintech are two of the most rapidly growing industries in the world, and they are increasingly converging. Proptech companies are using technology to improve the real estate industry, while fintech companies are using technology to improve the financial services industry. These two industries are connecting in a number of ways, including partnerships, and competition.
Partnerships: Proptech and fintech companies are partnering with each other to offer new products and services. For example, a proptech company might partner with a fintech company to offer a mortgage lending service.
Competition: Fintech companies are starting to offer real estate-related products and services, such as online mortgage lending. This is putting pressure on proptech companies to innovate and offer better products and services.
The convergence of proptech and fintech is creating new opportunities for both industries. This also makes it easier for people to buy, sell, and rent real estate.
What Are The Solutions?
Proptech solutions are also constantly evolving, and new solutions are being developed on the go. As the real estate industry continues to digitise, proptech solutions will become even more important for businesses of all sizes.
Some of the most popular proptech solutions include property management software (helping with tasks such as tenant screening, rent collection, and maintenance scheduling), real estate marketing software (helping with listing properties, generating leads, and managing listings), virtual reality (VR) and augmented reality (AR) solutions (helping potential buyers and tenants to tour properties without having to physically visit them) and blockchain solutions (helping track and manage property transactions more efficiently).
Improving Customer Experience
Such solutions are also beneficial for fintech firms in improving the customer experience by making it easier for customers to apply for loans and track their progress. It also reduces costs by automating tasks and streamlining processes.
Moreover, such solutions also increase efficiency by making it easier to access and analyse data, thereby improving decision-making by providing better insights into the market and customer behaviour.
Proptech also helps increase innovation in the industry by providing new ways to deliver products and services.
While it brings everything — from online property marketplaces to real estate analytics platforms, smart building technology, virtual and augmented reality tools for property viewings, property management software, and automated property valuation tools — under one umbrella, proptech is also a great way for real estate developers to improve efficiency, efficacy, productivity, and bottom-line results. This technological advance will prove to be an essential part of Indian real estate in the future, and will only provide more opportunities for growth and profitability.
(The author is founder and chief operating officer, BASIC Home Loan)
Real Estate To Expand At $5
In its latest report, ‘India Real Estate: Vision 2047', Knight Frank India, the real estate consultancy in the country, in association of NAREDCO, has projected that India's real estate sector is expected to expand to USD 5.8 trillion (trillion) or USD 5,833 billion (billion) by 2047. This estimated real estate output value will contribute 15.5% to the total economic output in 2047 from an existing share of 7.3%.
By 2047, when India reaches 100 years of independence, the size of India's economy is estimated to range between USD 33 trn to USD 40 trn.
Also Read: Real Estate Disputes: Need For Conciliation Benches In Every RERA, Know How It's Useful
For study purposes, Knight Frank took the mean estimated growth of the Indian economy to value USD 36.4 trn by 2047.
The report said that private equity (PE) investments in the Indian real estate sector have consistently grown over the past two decades. Projections for 2023 indicate that PE investments in Indian real estate are poised to reach USD 5.6 bn, reflecting a YoY growth of 5.3%.
With India's GDP expected to reach USD 36.4 trn by 2047, the private equity investments within the Indian real estate sector are projected to surge to USD 54.3 bn by 2047, signifying a CAGR of 9.5% spanning 2023 to 2047.
Providing perspective on REITs, Knight Frank shared that the combined portfolio of Indian REITs encompasses 84.9 mn sq ft, with 75.9 mn sq ft dedicated to office assets and 9 mn sq ft to retail assets. Additionally, there is ongoing construction of approximately 21.3 mn sq ft within the REITs sector, projected to reach completion within 1-2 years.
Rajan Bandelkar, president, NAREDCO India, said, “Vision 2047, not just for NAREDCO but for Indian Real Estate, is about the roadmap of India's economic growth, and the role of real estate as one of the leading engines of that growth story.”
Details of estimated growth potential across RE asset classes by 2047
According to Knight Frank India, in the next 25 years, cumulatively there will be an estimated 230 million (23 crores) units of housing requirement in India. In terms of market value, the residential market has a potential to generate an output equivalent of USD 3.5 trn in 2047.
It is expected that with the changing income profiles, the demand for housing will emerge across all the price categories. In the next few years, while the demand for housing will remain concentrated in affordable housing, it will gradually shift towards mid segment and luxury housing.
The share of lower income households will reduce from existing 43% currently to 9% in 2047. Thus, a significant share of the population will shift to lower middle and upper middle-income categories. This will enable a significant demand for mid-segment housing.
Additionally, the share of HNIs and UHNIs households in India which will likely increase from existing 3% to 9% in 2047 will generate a significant demand for luxury housing in India.
As per Knight Frank estimates, 69% of the working population will be formally employed to support the economic expansion of US$ 36 trn by 2047. In terms of market value, the estimated office stock is likely to generate a potential output equivalent to USD 473 bn in 2047.
The office stock has grown significantly from 278 mn sq ft in 2008 to 898 mn sq ft cumulatively across the leading eight cities in India in 2022.
Shishir Baijal, chairman & MD, Knight Frank India, said, “The next 25 years are going to witness a dramatic transformation in the Indian economy and the real estate sector. Factors like demographic advantages, improving business and investment sentiments, and government policy push towards high-value output sectors such as manufacturing, infrastructure etc. will robustly support the economic expansion of India.”
“In the imminent future, India's economy is expected to grow at a rapid pace, and the structural shift in the economy will be led by a major push to the growth of all sectors including real estate. For sustainable growth, it is imperative that India's real estate sector adapts to transformations in the economy and changing technologies, making optimum use of the growing resources, especially the human capital,” Baijal added.
Spurred by the high degree of correlation between the economic growth and increase in income levels, India's warehousing market is likely to witness a potential demand for 159 mn sq ft by the year 2047. India's warehousing sector has a potential to generate an output equivalent to USD 34 bn in 2047.
In a separate section of the report on the impetus of the manufacturing sector to industrial development, Knight Frank estimates that by 2047, at an average pace of growth India's manufacturing sector is likely to contribute 32% to the country's economic growth.
As of 2021, 5 lakh hectares of land in India has been under usage for industrial purposes which comprises 3,989 special economic zones, industrial parks and estates etc.
To cater to the manufacturing activities in the economy in the next 25 years, an estimated 102 lakh hectares of land is required for usage of industrial activities in India.
The exponential growth in required industrial land has a capacity to generate a revenue equivalent to USD 110 bn in 2047..
Rise of REIT
With the initial REITs setting a positive precedent, it is probable that REITs in the coming years will expand into diverse sectors such as residential and warehousing, in addition to the existing office and retail segments. Inspired by global markets, developers are likely to contemplate venturing into REITs for alternative asset classes like data centres, hospitality, healthcare, education and more, in the longer term over the next 25 years.
As per Knight Frank estimates, organised retail consumption is currently estimated to be at 4.6% of the total private consumption of individuals. This is significantly smaller when compared to developed markets such as the US, where retail consumption comprises 40% of the total private consumption of individuals.
However, with growing income levels and the growing propensity of households in India to consume, by 2047, when the size of the Indian economy is estimated to be USD 36.4 trillion, the share of retail consumption is estimated to be 37% of the total private consumption. This quantum of consumption boost will support the entry and expansion of retailers in India and provide an impetus to the retail real estate both for the shopping malls and the high streets.
DLF all set to launch 2 luxury housing projects in Gurugram worth ₹15
To expand its business amid strong demand for premium homes, realty major DLF Ltd will launch two luxury housing projects worth ₹15,000 crore in Gurugram during the second half of this financial year, news agency PTI quoted its Managing Director Ashok Kumar Tyagi as saying.
After the success of sales of ₹8,000 crore worth of flats within three days in February in its new project 'The Arbour' at Gurugram, Tyagi said the company has set a target to achieve sales bookings of ₹13,000 crore in this fiscal year and hopes to exceed the number.
DLF posted sales bookings of ₹15,058 crore during the 2022-23 financial year, which is a more than two-fold increase from ₹7,273 crore in the previous year.
Tyagi also spoke about the overall housing market and noted that the demand for ultra-luxury, luxury, and mid-income residential properties is very strong.
He mentioned that there is some stress in the affordable housing segment citing the the rise in interest rates on home loans and an increase in housing prices.
On plans, Tyagi said, "The company has created a launch pipeline of ₹20,000 crore for this fiscal.
"Launches this year will be predominantly driven by two launches in Gurugram - one in Southern Peripheral Road (SPR) and the other in Golf Course Road," Tyagi said.
The estimated sales bookings value of these two upcoming projects in Gurugram is about ₹15,000 crore, as DLF owns land parcels for these two projects in Gurugram.
Apart from this, Tyagi also said that his firm would also launch one residential tower in its project at Moti Nagar here, one in Tricity of Chandigarh, and one in Mumbai this fiscal.
"Launches in Chennai and Goa might spill to next fiscal year," Tyagi said.
Earlier this month, Singh sold his entire remaining stake in DLF for around ₹731 crore.
Recently, DLF reported a 12 percent rise in consolidated net profit at ₹527 crore in the first quarter of this fiscal. The company's net profit stood at ₹469.57 crore in the year-ago period.
Total income rose marginally to ₹1,521.71 crore in the April-June period of the 2023-24 financial year from ₹1,516.28 crore in the year-ago period. DLF's net debt stood at ₹57 crore as of June 30, 2023, as compared to ₹721 crore at the end of the 2022-23 fiscal.
During the period under review, the company's gross debt also fell to ₹3,068 crore from ₹3,840 crore.
With agency inputs.
Source: Live Mint
Related Posts: DLF,LUXURY HOUSING PROJECTS,GURUGRAM,ASHOK TYAGI,REAL ESTATE,AFFORDABLE HOUSING
India's real estate sector likely to expand to $5
New Delhi: India’s real estate sector is expected to expand to $5.8 trillion by 2047, contributing 15.5% to the GDP from an existing share of 7.3% a joint report by Knight Frank and National Real Estate Development Council (Naredeco) said.
The report ‘India Real Estate: Vision 2047' stated that the residential segment will have an overwhelming share in the real estate sector. “By 2047, when India reaches 100 years of independence, the size of India's economy is estimated to range between $33-40 trillion," it said.
The report noted that private equity investments in the Indian real estate sector have consistently grown over the past two decades and from a projected figure of $5.6 billion in 2023, it is expected to reach $54.3 billion by 2047, an annual growth of 9.5%.
Rajan Bandelkar, president, Naredeco India said, "Significant expansion of the Indian economy by 2047, will be powered by Real Estate. A multifold economic expansion will boost demand across all the asset classes - residential, commercial, warehousing, industrial land developments etc - will grow at a multiplier rate to accommodate the growing needs of the economy and consumption needs of the individuals,"
According to Knight Frank India, in the next 25 years, there will be an estimated 230 million units of housing requirement in India. The demand for housing is expected to remain concentrated in affordable housing, will gradually shift towards mid segment and luxury housing. The share of lower income households will reduce from existing 43% currently to 9% in 2047.
Niranjan Hiranandani, National Vice Chairman of NAREDCO, opined that, “The northbound growth in the Indian Real Estate sector is driven by the favourable domestic economic environment with economic resilience, bolstered infrastructure growth plans, alternative investment models, and domestic consumption power. Growing GDP will stimulate commercial and industrial real estate growth, attracting global investors towards Grade A assets. Emerging alternative asset classes will also play a critical role in pooling investments and boosting investors' confidence".
According to the report, REITs in the coming years will also expand into diverse sectors such as residential and warehousing, in addition to the office and retail segments. Builders are also likely to contemplate venturing into REITs for alternative asset classes like data centers, hospitality, healthcare and education.
REITs encompass 84.9 mn sq ft, with 75.9 mn sq ft dedicated to office assets and 9 mn sq ft to retail assets. Additionally, there is ongoing construction of approximately 21.3 mnsq ft within the REITs sector, projected to reach completion within 1-2 years.
As per Knight Frank estimates, 69 per cent of the working population will be formally employed to support the economic expansion of USD 36 trillion by 2047. In terms of market value, the estimated office stock is likely to generate a potential output equivalent to USD 473 billion in 2047.
The office stock has grown significantly from 278 million sq ft in 2008 to 898 million sq ft cumulatively across the leading eight cities in India in 2022, it added.
Source: Live Mint
Related Posts: REAL ESTATE SECTOR,KNIGHT FRANK,NATIONAL REAL ESTATE DEVELOPMENT COUNCIL,PRIVATE EQUITY INVESTMENTS,AFFORDABLE HOUSING
Retail leasing in Delhi-NCR up by 65% in H1 2023
The retail leasing in Delhi-NCR (national capital region) has increased by 65% in January-June 2023, the real estate consulting firm CBRE South Asia said in a report on Thursday.
The NCR has recorded a rise in retail leasing across investment-grade malls, high streets and standalone developments, said the report.
The total leasing during the first half of 2023 stood at 0.70 million square feet as compared to 0.42 million square feet in the same period a year ago, said the CBRE report.
“Apple launched its first two new stores in Mumbai & Delhi-NCR, and UK-based coffee and sandwich chain Pret A Manger also opened stores in Mumbai and Delhi-NCR. Canadian coffee brand Tim Hortons which debuted in India last year strengthened its presence in Delhi-NCR and Punjab and entered the Mumbai market this year. European luxury brand Balenciaga is set to open its first brick-and-mortar store in Delhi-NCR through its partnership with Reliance Brands," CBRE said in the report.
“Retailers have expressed positive leasing sentiments, indicating their strong interest in establishing new setups, expanding operations, and upgrading existing stores," said Anshuman Magazine, chairman and CEO - India, South-East Asia, Middle East and Africa, CBRE.
Across India, retail leasing saw a 24% yearly growth in the first half of 2023, and a 15% rise compared to the July-December 2022 period, the report added.
Gurugram: Average monthly rent for premium apartments up 28% in H1
A separate report by Savills India on Thursday said in Gurugram the average monthly rental for premium housing grew by 28% year-on-year during the January-June period of this year.
In Gurugram, “GCER (Golf Course Extension Road & SPR (southern peripheral road) and Golf Course Road saw the highest rise in rentals with 33 per cent and 31 per cent YOY growth, respectively," the real estate consultant said.
As per the report, the average quoted rentals are for 3BHK and 4BHK apartments on Golf Course Road and 3-BHK apartments in other micro markets.
Golf Course Road commands a monthly average rental of ₹195,941, while the average rent at Golf Course Extension Road and Southern Peripheral Road is ₹101,000 a month, according to the Savills data for H1 2023.
The average rent in New Gurugram is ₹47,100 and in Dwarka Expressway is ₹40,071 per month, the report added.
Gurugram and Noida attract a constant influx of migratory working professionals who prefer renting over buying, said Shveta Jain, Savills India MD-residential services.
Source: Live Mint
Related Posts: RETAIL LEASING,REAL ESTATE,CBRE,GURUGRAM,PREMIUM APARTMENT,APARTMENT RENT,SAVILLS INDIA