Delhi, Bengaluru & Mumbai witness dip in prime residential prices in Q1 2021: Report – ET RealEstate

NEW DELHI: Bengaluru has slipped four positions to rank 40th globally in annual price appreciation of luxury residential properties, according to real estate consultant Knight Frank. In its ‘Prime Global Cities Index Q1 2021’ report, Knight Frank mentioned that New Delhi and Mumbai, too, slipped one spot each to rank at 32nd and 36th, respectively.

In the last report, Delhi was at 31st position, while Mumbai ranked 35th and Bengaluru 36th.

Bengaluru witnessed a fall of 2.7 per cent year-on-year (YoY) in prime residential prices during January-March 2021, leading to a fall in its ranking on the global list.

In New Delhi, the prices fell marginally by 0.2 per cent YoY to an average price of Rs 33,572 per sq ft in Q1 2021.

Mumbai’s prime residential market registered a decline of 1.5 per cent YoY in the January-March quarter with an average price of Rs 63,758 per sq ft.

Prime residential property is defined as the most desirable and most expensive property in a given location, generally defined as the top 5 per cent of each market by value.

The Prime Global Cities Index is a valuation-based index tracking the movement in prime residential prices in local currency across 45+ cities worldwide.

Shenzhen ranked 1st with 18.9 per cent annual change for the period Q1 2020 – Q1 2021.

New York was the weakest performing market and ranked 46th with a fall of 5.8 per cent in prices annually.

Knight Frank India CMD Shishir Baijal said, “The decline in prices of prime residential properties in India during the first quarter of 2021 can be attributed to multiple factors such as uncertainty around the second wave of the pandemic, high liquidity in capital markets, as well as the backlog of supply.”



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YieldAsset aims to have Rs 100 crore in assets by next quarter – ET RealEstate

YieldAsset Real Estate Tech Pvt Ltd, a proptech startup, which enables fractional ownership in institutional-grade Commercial Real Estate (CRE) aims to have Rs 100 crore worth of assets under management (AUM) by the end of September quarter.

YieldAsset has already listed two assets of Grade β€˜A’ office space in Mumbai and is in the final stages of signing few more commercial assets in prime locations in Mumbai, Bengaluru and Pune.

β€œWe are looking forward to scaling up our offerings in the coming months. The Grade-A office real estate remains a preferred asset class for investors to add rental income portfolio owing to the asset’s robust fundamentals and resilience. By bringing investors and asset owners in line on a tech-enabled platform, YieldAsset offers the best opportunities to non-institutional investors to participate in these asset classes. YieldAsset is also entering into a strategic partnership with few leading Wealth Management firms to offer fractional ownership of commercial properties to investors associated with them. Going forward, the company will also be looking at other asset classes such as warehouses, data centers, student housing, industrial assets, amongst others.” said Rajesh Binner, Founder, YieldAsset.

YieldAsset offers unique investment opportunities in the CRE space by fractionalizing CRE and offering it on an easy-to-use online platform.

Riaz Maniyar, Co-founder, YieldAsset, said “Investment in rental yielding commercial real estate has generated great wealth to investors. However, it has been available only to those with the right connections and deep pockets. This asset class and its benefits have been out of reach for most of the people. Fractional ownership is the future of the real estate market as it addresses an important issue with commercial property – a high entry barrier of large capital investment. It also enables investors to earn monthly rent from fractional ownership of these assets and build long term wealth as property price increases. We are democratizing investment in commercial real estate that has been a purview of ultra-HNIs and institutions. We follow a rigorous vetting process before onboarding any property.”

As per a recent report by Knight Frank, private equity investment in real estate jumped over 16-fold in January-March 2021 to $3.24 billion, which was largely institutional. The investment stood at a mere $199 million in Q1 of the 2020 calendar year.



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Smartworks to invest Rs 100 crore to expand presence in NCR – ET RealEstate

NEW DELHI: Smartworks, the home-grown shared office space provider, will invest up to Rs 100 crore in expanding its presence in the national capital region (NCR), its founder Neetish Sarda told ET.

The company is in the final stages of acquiring 5 lakh sq ft in NCR.

β€œWe are seeing a lot of traction in Noida so more than 90% of our future inventory will come in Noida. Our existing building is almost fully occupied so we are on the lookout for fresh property. The new asset should be ready by October,” said Sarda.

According to a Knight Frank report, co-working operators took up spaces selectively across NCR in H2 2020.

From a 3% share in H1 2020’s total leasing, it increased to 12% in H2 2020.

Smartworks acquires the entire building and converts it into a coworking campus, unlike other coworking operators that usually acquire a floor or portions of a commercial building.

The company plans to have 3 million square feet of office space in NCR in three years.

β€œThere is a lot of demand for shared space for the last few months. We have seen double-digit growth in leasing in nine cities we are present in. We expect this trend to continue and that is why we have aggressive plans for expansion,” said Sarda.

Co-working operators established office footprints in Delhi in locations such as Okhla and Defence Colony.

In Gurugram, it was Udyog Vihar, Qutub Plaza and Sector-45 that attracted coworking players.

According to a report by property consultant JLL, irrespective of several short-term disruptions and challenges, increased demand from large enterprises, will support the growth of the flex space market to more than 50 mn sq ft by 2023.



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