Inarguably, the Indian real estate vertical that in the direst need of funding is the residential sector. In a perfect world, the private equity that is now pouring into the country's realty sector would focus on where it is needed the most. However, PE firms have their own investment rationale, and Indian residential real estate has been far from attractive to them.
Maharashtra still leads with 20,718 projects & about 19,699 RERA-registered real estate agents Gujarat comes second - 5,317 RERA-registered projects & 899 registered agents and agencies Karnataka - 2530 projects & about 1342 RERA-registered real estate agents; Andhra Pradesh - 307 RERA-registered projects West Bengal the only state with its own real estate law WBHIRA
At the Huawei Financial Services Industry (FSI) Summit in Shanghai this week, the biggest financial services players in China were showcased.
Commercial segment saw a total PE inflow of nearly USD 2.8 bn in 2018 - up from USD 2.20 bn in 2017 Office yields are 12-14% PA, rental yields for housing 2.5-3.5% Residential revival depends on returning investor interest
New supply across top 7 cities up by 27% q-o-q – from 55,600 units in Q4 2018 to 70,490 units this quarter; defies conventional election period trends Pune and MMR see max. quarterly rise in both housing sales and new supply; absorption in Pune rose by 24%, in MMR by 19% Bengaluru frontrunner in shedding unsold stock; sees 9% decline in Q1 2019 over previous quarter & a 27% yearly fall New affordable housing supply sees over 47% q-o-q jump – from 20,800 units in Q4 2018 to 30,750 units this quarter Annual housing sales rise 58%, new launches up by 91% across the top 7 cities
As hoped for, the RBI has reduced the repo rate by another 25 basis points.
Self-redevelopment of old, dilapidated housing projects in cities like Mumbai is a much-talked-about new phenomenon and is rapidly catching on because it is, in many cases, a practically possible proposition. Self-completion of stalled projects is, however, another ballgame altogether.