Net absorption in office space touch 9.86 million sq ft in Q2 FY23: Report

 Oct 10, 2022

Delhi NCR and Bengaluru are the two biggest office markets in terms of Jan-Sep 2022 gross leasing activity followed by Mumbai. These three markets account for over two-thirds share of occupier activity in the first nine months of the 2022 calendar year.

NEW DELHI: The net absorption for India’s office space for the July-September quarter was up by 11% quarter-on-quarter (Q-o-Q) and recorded at 9.86 million sq. ft, according to a recent report by JLL.

The net absorption for the first nine months of 2022 (Jan-Sep 2022) stood at a three-year high of 30.3 million sq ft, backed by strong supply completions with healthy pre-commitments.

Among the four metros, Hyderabad led the way with a 31% share of net absorption, with Mumbai pushing Bengaluru to the third spot, followed by Delhi NCR. These four cities combined for an 83% share of net absorption in the quarter.

Bengaluru leads in terms of 9-month net absorption levels, followed by Hyderabad and Mumbai. All the top seven cities have seen the nine-month net absorption for 2022 at much higher levels compared to the corresponding period of 2021.

On a Pan-India basis, net absorption is also up by 107% year-on-year (Y-o-Y) for the nine-month period.

Gross leasing for the period between Jan-September 2022 is up 1.9X Y-o-Y. The nine-month gross leasing activity is higher by 88% over the same period of 2021 and 13% over the same period of 2020, marking the first full 9 months. Mumbai and Delhi NCR led the gross leasing numbers for Q3 2022 accounting for 26% and 23%, respectively.

Delhi NCR and Bengaluru are the two biggest office markets in terms of Jan-Sep 2022 gross leasing activity followed by Mumbai. These three markets account for over two-thirds share of occupier activity in the first nine months of the 2022 calendar year.

“Tech continues to remain the dominant occupier segment accounting for 27% of market share, although down from 33% Q-o-Q. Although the total space leased by Flex operators is down 45% Q-o-Q, this segment has a market share of 14%. Aided by a strong return to office, the BFSI segment has seen the share of gross leasing go up to 16% this quarter compared to 10% in the last quarter,” said Rahul Arora, head, Office Leasing Advisory, India, JLL.

Enterprises leased ~30,000 seats in flex, down by around 22% from the previous quarter. The nine-month flex seat take-up is already at an all-time peak of ~95,000 seats, with the year likely to end more than 120,000 seats. The annual flex seat take-up in 2022 alone is likely to equal or surpass the combined total of the pre-COVID years of 2018 and 2019 as well as the past two years 2020 and 2021.

“Over the next 12 months, around 50-55 million sq. ft is lined up with average pre-commitment levels of 11-12%. For assets owned by institutional landlords, pre-commitment rates stand at 24% with their share being 30% of the upcoming supply. Space requirements currently active are around 36-38 million sq ft, the same over the past one year, indicating the robustness of demand pipeline,” Samantak Das, chief economist, and head research and REIS, India, JLL.

New completions were recorded at 11.97 million sq. ft in Q3 2022, up by 8% Q-o-Q. For Jan-September 2022, new completions stand at 43.4 million sq. ft, higher than the corresponding periods for the last three years. Completions in Q3 2022 were headlined by Hyderabad and Delhi NCR which combined for a 60% share of the quarterly supply additions. Almost 46% of the new supply infusion was pre-committed in Q3 2022.

A significant part of this came from new completions in Hyderabad, where 57% of the quarterly supply was pre-committed. Bengaluru saw an 89% pre-commitment rate in its new completions. Chennai and Delhi NCR also saw pre-commitment rates of 55% and 34%, respectively in their new completions.

The vacancy has remained at 16.0%, stable q-o-q, and expected to remain sticky within this range of 16-17%, according to the report.

Residential sector grows 15% across top eight cities in Q3 2022: Report

 Oct 10, 2022

Similar robust activity was observed in new launches growing 15% year-on-year (YoY) to 69,687 units in Q3 2022. All markets saw average prices increase in the range of 3% to 10% YoY during this period.

NEW DELHI: Residential sector saw an annual growth of 15% in July-September 2022 2022 to 73,691 housing units across top eight cities in the country from 64,010 in Q3 2021, according to a recent report by Knight Frank India.

This is a 20% rise regarding the quarterly average sales observed during the pre-pandemic times of 2019. While the sales volumes remain robust, they have dipped by 8% compared to the preceding quarter.

Similar robust activity was observed in new launches growing 15% year-on-year (YoY) to 69,687 units in Q3 2022. All markets saw average prices increase in the range of 3% to 10% YoY during this period.

The residential market remained resilient in the eight residential markets of India with 2,32,396 home unit sales in 9M CY2022. This is a 40% increase from 1,63,426 residential volume sales in a stable repo rate environment of 9M CY2021.

Mumbai’s sales volume of 21,450 home units accounted for 29% of the total sales amongst the top 8 markets, highest among all markets. With 13,013 units sold in Q3 2022, Bengaluru also accounted for the second largest share of sales amongst the eight markets of the country. NCR had a similar strong performance with total sales of 11,014 units during the period.

In regards with Quarters to sell (QTS), the strong uptick in sales also brought the Quarters to sell (QTS) level down to 7.1 quarters from 10.3 quarters in Q3 2021.

	Sales			Launches
City	Q3 2021	Q3 2022	% Change (YoY)	Q3 2021	Q3 2022	% Change (YoY)
Mumbai	15,942	21,450	35%	12,136	18,079	49%
Bengaluru	11,337	13,013	15%	8797	11250	28%
NCR	9,101	11,014	21%	8,983	10,265	14%
Pune	9,565	10,899	14%	8,615	7,463	-13%
Hyderabad	5,987	7,900	32%	9,256	11,000	19%
Ahmedabad	1,607	3,887	142%	4,257	6,188	45%
Chennai	3,610	3,685	2%	3,795	3,912	3%
Kolkata	6,861	1,843	-73%	3,128	1,531	-51%
Total	64,010	73,691	15%	58,967	69,687	18%

With respect to ticket size split, what is interesting to note is that the sale of housing units in the Rs 1 crore and above category observed a substantial rise from 14,082 units in Q3 2021 to 20,633 units in Q3 2022. This resulted in the increase in share of sales to 28% in Q3 2022 compared to 22% a year ago. This can be attributed to the homebuyers’ need to upgrade to larger living spaces with better amenities.

The share of home sales in the Rs 50 lakh- Rs 1 crore category stayed steady with 26,529 units sold in Q3 2022. On the contrary, the share of units of Rs 50 lakh and below witnessed a decline from 43% (27,524 units) in Q3 2021 to 36% (26,529units) in Q3 2022.

Prices increased across all markets in the range of 3% – 10% YoY with some of the larger volume markets of Bengaluru (10%), NCR (8%) and Mumbai (6%) registering substantial growth. This also marks the third quarterly period of consistent YoY growth in prices across all markets.

Five tips for buying an affordable home

 October 2022

Who doesn't like living in an owned home? How nice would it be to have a place that you could set up your way and enjoy it? Riya, a data analyst, had similar thoughts. She looked forward to moving out of her rented accommodation and set up her own pad. But as with any one of us, Riya had a million doubts and needed help in choosing her home. Among many of the criteria that she had, affordability was most important.

We bring you some tips to help you choose your affordable home.

DON’T BE SWAYED BY THE GLAMOUR

When it comes to homes, it is once (for most of us at least!) in a lifetime investment. And we look for the best. So while you look for the best, it was very easy to overshoot your budget for that infinity pool or the tennis court that looks quite impressive on the brochure. These amenities may be of little use to the kind of person that you are.

It is very important to have a budget and stick to it. Do keep in mind that higher the property price, higher will be your down payment and EMIs.

RESEARCH THE LOCALITY

A common feeling is that homes on the outskirts of cities are low-priced.

They may be, but it may not be worthwhile if you work on the other end of the city and end up commuting long distances. Same goes with homes in smaller and unknown towns. Though they may look very attractive price wise, make that investment only in familiar places.

The real estate market in each city/town varies. Extensive research into the areas of each city goes a long way in making your home buying experience a pleasant one.

BE OPEN TO A SECOND SALE

Due to rapid mobility in jobs, the second sale of homes are common.

Reports suggest that 2-3-year-old properties are being sold at original prices and at a discount occasionally. So if you are not in a hurry, you may like to take time and do your due diligence well.

GO FOR READY-TO-MOVE-IN HOMES

As you sign on the dotted line on your loan documents, the EMI starts. Till the time, the property is not occupied, pre-EMI is payable by the home owner. Remember pre-EMI does not give you any income tax benefit till the house is occupied.

And at the same time, you would continue to pay rent (assuming you are in a rented house). It turns out to be a double whammy when you have to pay rent as well as EMI. So it makes sense to look for ready-to-move-in properties.

YOUR LENDER MATTERS

A home and a home loan are inseparable. So as you research for good properties, simultaneously you should also gather information on various offers available on home loans. Before you start applying for loans, a check on your credit score would be good to avoid rejections. You could also consider going in for a pre-approved home loan if it meets your requirements.

Top 10 Factors To Consider For Choosing The Right Floor In A High Rise

 

Many times a buyer is confused as to which floor is the best for home. Most of India's cities are now growing vertically, as the population in cities is rising and the space to accommodate the growing number remains limited. So, real estate developers in India are developing high-rise projects, both in luxury and affordable categories, to reach out to a large number of home buyers across different income groups.

So, if you are a home buyer and want to know which floor to choose and buy in a high-rise residential apartment project or the best floor to live, read on.

High or low, each floor has its own advantages and disadvantages. Before you make a decision, weigh all the factors involved and decide what suits your lifestyle better.

Here we have lists some factors to assist you in your home-buying experience:

1. View: Obviously, higher floors offer a better view, especially if the tower is located close to a scenic place. If this is important for you, go for higher floors.

2. Rental returns: Property surveys have proved that lower floors command better rental returns, as Indians generally have an affinity for staying closer to the ground. If you are buying a property for an investment purpose, the ground floor is the best floor in high rise building for you. People, especially in Mumbai prefer upper floors, while buyers in the Delhi-National Capital Region (NCR) and Chennai prefer ground floors. Climatic differences could be cited as a reason the difference in choice.

3. Privacy: In congested areas, however, living on the lower floors might not offer much privacy. If you love solitude and wish to avoid any kind of unwanted intrusion, a higher floor might be better for you.

4. Noise: Many home buyers prefer higher floors to minimise street noise or to avoid the noise coming from other occupants walking through the common passage. However, if the ground floor flat is not located in the common hallway and is also far from the elevators, staircase or clubhouse, then the noise would not be an issue for you at all.

5. Energy consumption: Power consumption increases as you go higher. It is so because you need to run your air-conditioners (ACs) for a longer time during summers. Also, drawing water using motor pumps could be another heavy power consumption task.

6. Security: Ground floors pose a comparatively increased crime risk, as it is easier for anti-social elements to break into lower or sub-level apartments. Overall, it also depends on the structure of your high-rise and the security measures adopted by the management of your residential society.

7. Access: For most of us, waiting for the elevator can be time-consuming. Choose to live on the ground floor or sub-floors, so you can comfortably take the stairs.

8. Family consideration: With children and elderly parents around, it is always good if your home is on a lower floor. Apart from the safety point, it also adds to the convenience factor. In addition to this, if you or someone in your family suffers from mobility impairment or has the fear of height, you should prefer living closer to the ground.

9. Light and ventilation: Apartments on the ground floor have comparatively limited light and ventilation when compared to the upper ones. Not only this, upper floors don't face mosquito intrusion as well.

10. Water seepage: It is observed that generally the top floor and the ground floor suffer from water seepage and drainage issues. It also depends upon the drainage and sanitary mechanism of the residential complex.

We hope these tips will help you make the right choice.

TO KNOW MORE ABOUT BEST RESIDENTIAL PROJECTS IN THANE VISIT REAL ESTATE THANE CREDAI MCHI THANE UNIT

6 Essential Points to Evaluate Before Purchasing Your First Home

 Buying a house is one of the most important decisions in life. Having a house, which you can call your own, is a dream fulfilled. However, before you choose that right flat in Mumbai for yourself, there are certain things that you need to keep in mind. You need to tick off these parameters before you sign the agreement.

Here are the 5 points which you need to evaluate before you buy a house:

1. LOCATION

It is of paramount importance that you take into account the locality you will be living in. You need to evaluate it for the following factors:

• * Commute to work and back
• * Amenities
• * Infrastructure
• * Connectivity
• * Security

Living in a prime locality with good connectivity and amenities is crucial. If you plan to spend some years living in this locality, then make sure it has all the above factors.

2. AMENITIES

Amenities define how comfortable your life will be. If you live in a locality where there are no basic facilities such as hospitals or schools, then it is time you switch and buy a new home in a better place. Amenities also mean, the facilities provided by the real estate developer and not just in the locality you live in.

3. INVESTMENT PERSPECTIVE

Your perspective of buying a home is important to consider before the purchase. Whether you are purchasing a flat only as an investment in real estate or you want to live here is a question you need to answer and purchase accordingly. Before you think of how to buy your first home or how to invest in real estate, you need to keep in mind the below vital points:

1. TOTAL COST

Calculate the total cost of the property. Brokers might only give you a basic cost but you also need to consider the following:

• * Internal/External development fees
• * Preferential location charges
• * Parking charges
• * Statutory/club charges
• * Service tax

The final cost of the property will be the total of all the above charges.

2. BUY OR RENT

When you think from an investment perspective then you need to decide whether you want to buy the property to reside or you want to put it up for rent.

4. REAL ESTATE DEVELOPER

Choosing the right real estate developer is the key to purchase the ideal home. Credible real estate builders are the ones who are transparent and comply with all the laws. Below mentioned are the pre-requisites you need to check while buying a house from a real estate developer:

• * Check the title deed of the plan.


• * If you are buying a property in resale, then check for the release certificate. You also need to ask for property tax receipts to ensure there are no pending bills.


• * Verify the land use as per the city master plan. You can get this information from the local office body in the city.


• * You need to check whether the builder has approvals from the local development corporation.


• * The developer also needs to have the required RERA registration. If you are looking for a property in areas such as Navi Mumbai then along with RERA, the projects by the developer also need to fall under the CIDCO rules and regulations.



5. HOME TYPE & SIZE

Home type is where you decide the area, the type (duplex, penthouse), etc. This also includes common areas such as lobby area, staircase, etc. There is a difference between the super-built up area and the carpet area. If you are in need of two bedroom apartments or any such specific requirements, then you should consider the carpet area while buying a house. Indiabulls Real Estate provides apartments, duplex homes and luxury homes ranging from 1 BHK to 5 BHK in prominent localities in Mumbai.




6. PAYMENT PLANS AND SCHEMES

To attract prospective homebuyers, real estate developers also have different payment plans and schemes. The real estate developers have offered subvention schemes, Possession-Linked Plans, Standard-Deferred payment plans, etc as few types of payment plans. Here is important to note that a homebuyer needs to understand these type of payment plans before taking the decision.

Indiabulls Real Estate is currently offering a payment scheme for their residential property in Thane. If you want to buy a flat at One Indiabulls Thane, then you can pay 10% of the payment while booking the house and pay the remaining amount, in slabs of 20%, 30% and 40%, later.

Buying luxury homes is an investment, which is crucial to increase your standard of living. The above-mentioned points can help you make the right decision.

TO KNOW MORE ABOUT AFFORDABLE FLATS IN THANE VISIT REAL ESTATE THANE CREDAI MCHI THANE UNIT

Thane: A Coveted Location for Real Estate Investments

 The Real Estate (Regulation & Development) Act 2016, brought in transparency and accountability in the real estate sector. This has boosted the home buyer’s confidence. The new-age home buyer is now on the lookout for lots of open spaces, pollution-free living environment, connectivity, infrastructure, affordable property rates etc. Thane is one location that has all of the pre-requisites for an ideal location for real estate investment. This city has an abundance of open green spaces, hillsides and water bodies. Here are some top reasons why Thane should be your next investment option for real estate.

1. CONNECTIVITY & FUTURE INFRASTRUCTURAL DEVELOPMENTS

The Thane metro construction will connect the city to significant parts of Mumbai. It is the first ever-metro construction in Thane. The Wadala-Kasarvadavli Metro-4 is set to connect Thane and Wadala with 22 stations from Wadala to Kasarvadavali- Godhbunder road via Ghatkopar, Mulund and Teen Haath Naka. Many localities in Thane will be benefited from this project. Areas such as Vasant Vihar, Pokhran Road No 1 & 2, Majiwada, Godhbunder road, all come in the construction line of the project. It also connects to the Thane-Bhiwandi- Kalyan Metro Line 5. Thane is also well connected by road and rail to other parts of Mumbai and Navi Mumbai.

2. NATURAL BACKDROP

Even though Thane is a city of hustle, there are still many green spaces to look out for. The Upvan Lake, Gaimukh Creek, and The Yeoor Hills offer some unmatched beauty and calm. When the city gets too much for you and you need a break, you can set out to these places, which are right in your backyard. The Upvan Lake in Thane sees festivals such as the Sanskruti Arts Festival and many such events the whole year round. Yeoor Hills is a treat to the sore eye. Located in the Sanjay Gandhi National Park, it is a perfect picnic spot for you and your family. If you want to invest in a property in Thane with a natural backdrop, then you have come to the right place.

3. NIGHT LIFE JUST LIKE SOBO

Thane is a foodie’s delight with many classy restaurants and hip cafes. Popular restaurants such as Soda Bottle Openerwala, Hitchki, The British Brewing Company, The Irish House, etc are all teeming with people. If you have flats in Thane, then every weekend is fun-filled and exciting.

4. OTHER AMENITIES & FACILITIES

Thane has many famous hospitals, schools, and malls. Hospitals such as Jupiter, Bethany, Fortis, etc all provide best-quality healthcare. Schools such as Smt. Sulochanadevi Singhania School, St. Xavier’s English School, Orchids International School, C.P. Goenka International School provide the best education in the city. Viviana Mall is one of the biggest malls in Thane, which houses many international apparel brands, a good number of restaurants and much more.

There are many residential projects in Thane, that can give you access to the above advantages. These are the prime reasons why you should invest in a property in Thane. The city is set on a path of growth. It’s cosmopolitan culture is an added advantage.

TO KNOW MORE ABOUT PROPERTY IN THANE VISIT REAL ESTATE THANE CREDAI MCHI THANE UNIT

Thane: The Journey Of Constructive Work

For an organisation which has been recently set up, and is seeing its first change of President, we the Gen-Next of Thane's real estate development have aspirations of doing constructive work during my tenure as President.

The Youth Wing of CREDAI-MCHI Thane has done a lot of work in the recent past. I am thankful to my IPP, Manthan Mehta, who has set a good pace and under his Presidency, the Youth Wing has achieved a lot. Going ahead; we have planned out our activities and will be fulfilling the same.

We will also co-ordinate and participate in activities being carried out by the Youth Wing of CREDAI-MCHI. In Thane, we look forward to multi-faceted activities, with the Youth Wing supporting the elders. This year, we will particularly look at knowledge events and marketing activities to help market Thane as a city. Since I have just taken over, I will not say much right now; and I hope that our work will speak for itself. I look forward to seniors Mentoring us, and helping us grow with the association in a holistic manner.

Jay Vora,
President, Youth Wing

TO KNOW MORE ABOUT REAL ESTATE IN THANE VISIT REAL ESTATE THANE CREDAI MCHI THANE UNIT