Top eight markets Q3 residential launches record 68% rise: Report – ET RealEstate

MUMBAI: Residential launches across India’s top eight property markets have witnessed a major upturn with 68 per cent jump during the quarter ended September over the previous quarter that was marked by the lockdowns owing to the outbreak of Covid19 pandemic.

The growth in housing launches was led by Hyderabad, Kolkata, Mumbai and Pune. Launches rose 658 per cent on-quarter in Hyderabad, 326 per cent in Kolkata, 238 per cent in Mumbai Metropolitan Region (MMR) and 164 per cent in Pune, showed data from Liases Foras Real Estate Rating & Research.

While sales, launches and inventory levels have improved sequentially from the lockdown quarter, the performance remains far from recovering to the year ago levels.

Launches continue to be down 70 per cent when compared with a year ago period.

These eight tier I markets have recorded sales of 42,297 units in September quarter, up 60 per cent from June quarter. Sales witnessed a maximum Increase of 68 per cent in Kolkata followed by 64 per cent in Ahmedabad and 60 per cent each in MMR and Bengaluru.

Overall sales across tier I cities, however, declined 37 per cent from a year ago. Sales in the National Capital Region (NCR) and Bengaluru witnessed maximum decline of 47 per cent and 46 per cent, respectively on from a year ago followed by 37 per cent in Ahmedabad and 32 per cent in Kolkata. Least decline of sales was seen in Chennai by 22 per cent and Pune by 35 per cent.

Sales in the NCR and Bengaluru witnessed maximum decline of 47% and 46%, respectively. Least decline was seen in Chennai at 22%Report

Prices in the consolidated tier I cities, according to Liases Foras, remained the same on both sequential and on-year basis.

Unsold units decreased by 3 per cent on a sequential basis and the current unsold across top 8 cities stands at 932,767 units. Months’ inventory reached 66 months during the quarter from 109 months in the previous quarter which is a 39 per cent drop as sales increased faster than new launches. Although when compared to the year ago period it still remained 54 per cent higher.

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Despite MahaRERA directions, buyers left in the lurch by Bhoomi Arcade – ET RealEstate

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MUMBAI: A group of home buyers from Bhoomi Acropolis project in Virar West are complaining that despite accepting possession on MahaRERA directions in March 2019, more than a year later, developer Bhoomi Arcade Associates have not provided them basic amenities like proper electricity meters, potable water connections, and formation of their society.

Acropolis is a large township project comprising ten 15-storey building in Virar with more than 600 residents. Home buyers booked flats in this project in 2013 on the assurance that they would be given possession in 2015. When the possession was delayed, home buyers began MahaRERA was set up from May 2017, they approached Maharashtra Real Estate Regulatory Authority(MahaRERA) for possession of flats, and few also wanted to seek refund of their investments and exit the project.

Ankush Dewan was among those whose complaint was heard by MahaRERA. Dewan had booked a flat in December 2015 in Acropolis Phase II and was promised possession by March 31, 2016 as per the registered agreement but was delayed. The developer contended that the firm was facing mitigating circumstances beyond its control but agreed to hand over possession within next 6 to 8 months.

In his January 30, 2018 order, MahaRERA chairman Gautam Chatterjee observed that the developer had put December 2021 as the revised date of project completion and it was unreasonable. As per Section 4 of Maharashtra Real Estate Rules, the revised date has to be commensurate with the extent of balance construction, and therefore Chatterjee asked the developer to provide possession by May 2018 with Occupancy Certificate or be liable to pay interest for the delayed period from June 2018.

Besides Dewan, other residents who approached MahaRERA seeking refund included Amit Wadhwani, Austin Pillai, Nalini Saxena, Suraj Sharma. “We had filed seeking refund, but MahaRERA chairman convinced us that we should not exit the project, take possession and the developer would complete all his obligations. If he doesn’t, we could approach him again. Accordingly we took possession May 2019 onwards,” said Amit Wadhwani, one of the complainants.

However, more than a year later, they are struggling without these amenities. “The water is brought by tankers and we are relying on bottled water for drinking. The power supply has been obtained temporarily from neighbouring Rustomjee project. We still don’t have electricity meters, no geysers, inverters. Our society is yet to be formed,” he said.

Wadhwani says water has been seeping in his seventh floor flat. “I can understand if it is an old building but this is brand new construction. I have already got the seepage repaired twice, but it continues. When we question the developer, they blame HDIL from whom they purchased the land and say that company was supposed to obtain power and water clearances from Vasai Virar Municipal Corporation (VVMC). But, as a home buyer, we are not concerned with a third party,” he told Mirror.

Another resident Austin Pillai said he booked his flat in December 2016 with the promise of possession by March 2017, but the developers representatives started dilly-dallying as the deadline neared. Frustrated by the delay, he approached MahaRERA. “After I filed the complaint, the developer was ready to offer possession. But, I was hesitant to take it because municipal water and power meters were not yet installed. But, the developer promised that it will be available in a few months after taking the possession. So I took possession in May 2019. Now it has been more than a year, both these things are still not available. My complaint is still pending with MahaRERA, and I hope that these amenities are available soon,” said Pillai.

When they approached MahaRERA again, the home buyers were told that they will have to file a fresh complaint as they had taken possession. “This has caused further confusion. We took possession on MahaRERA’s directions, and were told to come back if the developer doesn’t comply. Now when we go back to MahaRERA, they want us to file a fresh complaint, pay complaint charges again,” Wadhwani said.

When Mirror repeatedly tried to contact Chaitya Mehta, Director, Bhoomi Arcade Associates, there was no response to calls, messages and mails.

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WeWork India raises USD 100 million from WeWork Global, Real Estate News, ET RealEstate

WeWork India raises USD 100 million from WeWork GlobalNEW DELHI: Co-working major WeWork India, which is owned by the Embassy Group, on Friday said it has raised USD 100 million from WeWork Global for sustainable growth of its business. With this funding, US-based WeWork Global has reaffirmed its commitment to the Indian market, it added.

“WeWork India – the global platform for creators that provides collaborative workplace solutions, will receive USD 100 million financing from WeWork Global to help boost sustainable growth,” the co-working player said.

Karan Virwani, CEO, WeWork India, said, “The fresh round of capital from our long-term partners at WeWork Global represents a vote of confidence in our strategy and will help us serve our community better.”

Virwani pointed out that the flexible workspace industry in India and around the world is facing its biggest challenge yet.

“In that, we see a new opportunity that suits our members’ evolving needs. This is driven by an acceleration towards variable real estate costs, the confidence of safe and well-managed workspaces for their employees, and the growth opportunities that are intrinsic to the WeWork community,” he added.

WeWork India said the coronavirus pandemic has accelerated the shift to flexible workspaces, with businesses of all sizes looking to manage cash flows effectively by moving costs to a variable model.

“Space as a service is a huge opportunity for them to free up cash, and WeWork has the right foundations and experience to provide safe, flexible workspaces,” it added.

WeWork India said it is looking to navigate this transformation by prioritising focused growth in the Indian market over the next 36 months.

The company further said it is already profitable and plays an important role in the global scheme of business for WeWork.

Sandeep Mathrani, CEO of WeWork, said, “WeWork is excited to be providing financial assistance to transform the workspace environment in India.”

“WeWork India’s financial performance has shown consistent growth, and with the fundamentals in place at a building level backed by the expertise of the Embassy Group, we believe the WeWork India business has the ability to be our growth vehicle and provide our members an exceptional experience,” Mathrani said.

WeWork India offers seats in the range of Rs 5,000-40,000 per desk per month.

WeWork entered into a partnership with Embassy Group in 2017 and started operations in the Indian market.

Bengaluru-based Embassy Group, which holds 100 per cent rights over WeWork India, is a major player in the Indian commercial real estate market. It has also launched the country’s first real estate investment trust (REIT).

The co-working segment, which grew at a rapid pace in India in the last few years, has been badly impacted by the COVID-19 crisis.

Co-working players take office space on lease from real estate developers and other landlords and then sublease that to corporates, freelancers and startups.

Since entering India, WeWork has been providing full service and innovative workspaces with over 60,000 desks in 34 locations, across six cities.

Softbank-backed WeWork Global had dropped its plan to launch an IPO in September 2019. Early last year, its valuation had touched USD 47 billion, but it has plunged since then.

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Demand rises for smaller commercial spaces, Real Estate News, ET RealEstate

Kochi: Demand rises for smaller commercial spacesKOCHI: Property owners in the city say there has been a slight increase in the demand for smaller spaces in commercial buildings. As businesses downsize and reduce the number of employees, many establishments are trying to move out to smaller spaces to save on rent.

Mathew Isaac (name changed), who own commercial spaces on MG Road, said, “During the pre-Covid times, there were commercial establishments in Kochi that required 20,000 sq feet space for their running their offices. Now there is decline of 30-40% in this requirement, and they are looking for smaller spaces.”

Even as the economy struggles to get back, property owners are hopeful that scenario will improve after a couple of months and businesses would bounce back. Those who want buildings for rent are quoting lower rates as it has become nearly impossible for them to meet operational expenses. “The rentals depend on how furnished these spaces are and also on which floor are these spaces located. Ground floor fetches the highest rent. It is close to Rs 100 a sq feet and as it goes to the top floors, the rentals go lower and lower,” said manager of a retail outlet.

Traders say those who have plans to open new stores in the city have put such projects on hold. This is because people are not sure of investing in the market in the current situation. “May be two or three months later they will open their stores,” Isaac said.

The merchant community view the relaxations as a positive sign. When people start moving freely and public transport opening up the traders will launch new businesses or projects. “The shutdown cannot continue for ever. It will kill retailers. There should be some parallel plan to revive the business while tackling Covid-19. By wearing masks and following all precautions stated by the government we would be able to overcome this financial crisis,” said Haji Ahamed, an investor.

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