India’s corporate real estate occupiers confident about COVID-19 recovery – ET RealEstate

BENGALURU: Corporate real estate (CRE) leaders in the India are optimistic about their business and recovery plans despite impact from the ongoing pandemic.

At least nine in ten leaders polled by JLL believe their organizations and employees will help successfully mitigate the impact of COVID-19 on their businesses.

“As the corporate sector prepares for the next normal amidst the pandemic, the elevated confidence of the CRE leaders suggests immense opportunities as we redefine the future of the office. Approximately 70% of Indian CRE leaders surveyed have expressed optimism about the future of their business. Not just that, over 90% of Indian CRE leaders are confident of their own business / recovery plan to mitigate impact of COVID-19.” said Sandeep Sethi, Managing Director- Corporate Solutions (West Asia), JLL.

CRE leaders are also (re)imagining the new modern office, with a focus on prioritizing the health and wellness of employees, as well as leveraging technology in their investment plans, said the report by JLL. Concurrently, most polled CRE leaders in India expect total footprint and number of sites that they maintain to remain the same or even increase.

More than two-third of CRE leaders have shown optimism about the future state of their business. While 93% of APAC leaders stated that they own business recovery plan to mitigate impact of COVID-19, 91% of Indian leaders have expressed the same, the survey mentioned.

“They have a clear view of what they must do next to make the next generation of workspaces healthy and safe and enable their on-site and remote teams to collaborate and be productive. We anticipate CRE leaders to factor these into the next phase of their decision making,” he added.

Some de-densification of portfolio is expected by reducing the numbers of seats. While in APAC before the pandemic the number of desks per 100 staff stood at 91, post pandemic, it is will be at 82. In India, the number is expected to be 85 post-pandemic from 94 before the pandemic.

”Around 88% of Indian leaders are ready to cope with the current crisis and step into a new business reality compared to 90% in APAC. 70% of the Indian leaders are likely to adopt Proptech solutions to respond and adapt to new requirements arising out of COVID crisis, ” the survey said.

Expansion of remote working policy is expected by both technology and banking sector CRE. Increase in virtual meetings and rotational staff arrangement is being adopted widely. In the future, CRE is set to actively invest in technologies that optimizes productivity and collaboration among on-site and remote workforces.



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Home prices in Hong Kong ease 0.5% in July – ET RealEstate

HONG KONG: Hong Kong private home prices eased 0.5% in July, the first drop since April, as one of the world’s most expensive property markets continued to be pressured by the coronavirus pandemic and political uncertainties.

The drop in July compares to a revised no change in June. Supported by strong demand and low interest rates, prices have still gained 1.5% so far this year.

The financial centre was hit by a new wave of coronavirus infections in July, pushing housing transaction volumes to a four-month low in August. The real impact on property prices will be reflected in August and September due to a lag effect, agents said.

The market’s recovery was also capped by Beijing’s imposition of a national security law in the Chinese-ruled city on June 30, sparking a fresh exodus among residents.

“The drop is smaller than expected, it’s mainly because large-sized properties have out-performed,” said Thomas Lam, executive director of Knight Frank.

He expected the market correction will continue, citing weak purchasing power in an economic recession.

Realtor Centaline noted the secondary housing market became active again in late August as the pandemic eased in the city.

“Government easing (of) social-distancing measures also provide a positive signal,” it said.



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Housing segment recovers in June: Report – ET RealEstate

BENGALURU: Housing sales and launches are seeing upward trends across top cities like Bangalore, Hyderabad and Mumbai with both demand and launches seeing higher growth.

“With June being the first month of Unlock 1.0 in India, activity in the housing space marks encouraging recovery,” said a recent report by Edelweiss Research.

Demand plunged 68% QoQ in Q2CY20; however, the sharp recovery witnessed in May (up 52% MoM) and June (up 71% MoM) is a harbinger of hope. Supply plummeted 82% On q-o-q basis during the quarter; however, it improved sharply in June, it mentioned.

According to the report, new launches during June 2020 grew 8.9x MoM on a low base, but were down 49% YoY. “Bengaluru accounted for 39% of launches during the quarter, followed by MMR (24%) and Pune (23%); while other markets together contributed the remaining 15%. On the demand front, MMR contributed 40% of the absorption with Pune (22%) and Bengaluru (13%) coming next,” the report mentioned.

Prices during June bounced back 7–11% YoY in Chennai, Bengaluru and MMR, but slid in Kolkata and Hyderabad (down 5–8% YoY). YTD average prices rose in Bengaluru and Chennai by 6–7% YoY, but corrected 4% YoY in MMR and Kolkata. Prices in other markets remained in a narrow range, it mentioned.

Hyderabad and Pune remained the best markets with 22-23 months of inventory, followed by Chennai and Bengaluru at 37-38 months. NCR remains the worst real estate market with 71 months of inventory; inventory levels in MMR and Kolkata were 40 months and 44 months, respectively.



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Norway house prices up 5% y-o-y, fastest growth in three years – ET RealEstate

OSLO: Norwegian seasonally adjusted housing prices rose 0.9% between June and July and are up 5% for the last 12 months, a real estate industry association said on Wednesday.

It was the fastest annual growth since June 2017, driven by cheaper mortgage rates, as the Norwegian central bank cut its key policy rate to a record low of zero during the coronavirus outbreak.

While Norges Bank has said it aims to keep rates on hold until the second half of 2022, a sustained rally in housing prices could trigger an earlier tightening, Nordea Markets wrote in a note to clients.

Norway‘s crown currency strengthened to 10.6873 against the euro at 0955 GMT from 10.7120 earlier.

“The ongoing solid momentum in the housing market may cause a dilemma to Norges Bank, if extended,” Handelsbanken Capital Markets wrote in a note to clients.

“All else being equal, it may cause an earlier rate hike (than late 2022) … But of course, at this stage it is still too soon to tell.”

Still, the rise in prices in recent months will most likely subside as the effects of interest rate cuts wear off, Real Estate Norway said.

While the economy has begun to recover and unemployment has declined as Norway lifted most of its lockdown measures, the jobless rate is still twice the level seen before the pandemic, recent data showed.

Unadjusted prices increased by 0.4% in July from June. The housing data was compiled by Real Estate Norway, FINN and Eiendomsverdi.



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