Page 58 - Kolte Patil AR 2019-20

India’s real estate market Market size (US$ billion)

1500
1,000
1000
650
500
120
0
2017 2025 2030
(Source: IBEF)
MIG-I MIG-II
Annual household income limit Between C6,00,001 up to C12,00,000 Between C12,00,001 up to
C18,00,000
Dwelling unit carpet area 160 sq. mt 200 sq. mt
Eligible loan amount for interest subsidy (C) 9 Lakh 12 Lakh
Interest subsidy 4% 3%
Maximum loan tenure (in years) 20 20
NPV subsidy C2.35 Lakh C2.30 Lakh

1 sq mt = 10.7639 sq ft
(Source: Economic Times)

Key geographies

Pune: Pune is one of the fastest in 2018 to 0.58 million square metres for both. In the suburbs, the FSI for
growing cities in the Asia-Pacific in 2019. However, the average price residential projects increased to 2.5
region. Pune has one of the best urban of commercial real estate in the city from 2.0 and for commercial projects
infrastructures in India, ranked No. 1 saw an increase of 5% y-o-y. (Source: was at 5.0 as against 2.5. (Source:
in the Ease of Living Index 2018 by the Economic Times, Financial Express, Economic Times, Financial Express)
Ministry of Housing and Urban Affairs JLL report) Bengaluru: Bengaluru accounted for
in India. The city also ranked highest Mumbai: Mumbai is the largest luxury 45% of the total projects launched in
amongst all Indian cities in Mercer’s residential real estate market in India. 2019 (for those towering above G+20
21st Annual Quality of Living Rankings The Mumbai Metropolitan Region floors). However, Bengaluru witnessed
in 2019. Pune ranks sixth in terms of (MMR) recorded 22% year-on-year a 12% drop in residential sales to
city per capita income in India. IT, (y-o-y) growth in sales to 80,869 units 50,450 units in 2019 from 57,540 units
Education, Automobile, Manufacturing in 2019, the highest since 2013. The in 2018. Bengaluru witnessed a price
sectors amongst others are the key number of new units launched in CY19 gap of around 5% – under construction
drivers of Pune’s real estate growth. was at its highest since 2016 at 77,990 homes cost C4,820 per sq.ft. on average
India’s Smart Cities Mission, gives units. The unsold inventory declined and ready to move in homes realised
impetus to the growth of Pune’s urban marginally by 1% to 2.16 Lakh units in C5,050 per sq. ft on average. Bengaluru
infrastructure. The city is likely to the region; this could take 33 months dominated the office space market with
witness investments worth more than to clear. Of the total 1,816 housing 15.6 million sq ft absorption in 2019,
INR 650 billion over the next 7-8 years projects launched during the year under a year-on-year (YoY) growth of 15.4%.
for the construction of metro rail links, a review across India’s seven leading The city’s office space is mainly driven
new airport terminal and a ring road.
cities, over 52% were high-rises with by IT, ITES and co-working providers.
The city saw 37% y-o-y growth in ground plus 20 floors structure. Mumbai Bengaluru would witness additional
its new launches in the residential Metropolitan Region (MMR) accounted 15 million sq ft of office space in the
segment from 32,684 units in 2018 for more than 75% of the total 734 next three years. The proposed FSI
to 44,660 units in 2019. However, the project launched in 2019 in the high- ranges from 2 to 5, depending on the
sales of residential real estate de-grew rise category. The region absorbed 6.9 size of the plot and the road and seeks
2% in 2019. Further, average prices million sq ft of office space, an annual to encourage vertical growth and wider
also de-grew by 3% in 2019. On the increase of 11.3% in 2019. open spaces in the form of setback
commercial front, the city saw a decline In MMR, the current average price of areas. With this, properties along the
of 41% y-o-y in new launches of office under construction homes was C10,075 metro, suburban and bus corridors will
space from 0.64 million square metres per sq ft while ready-to-move properties benefit from the new policy. (Source:
in 2018 to 0.38 million square metres in were priced at C10,460 per sq. ft. The Economic Times, the Hindu Business
2019. Further, the sale of office space residential FSI for MMR has been raised Line)
in the city recorded de-growth of 5% to 3.0 and commercial to 5.0 from 1.3
y-o-y from 0.61 million square metres

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