JAN - MAR 2015
KEY HIGHLIGHTS
NCR
Kolkata MMR Pune Bangalore
Hyderabad Chennai
Pan India: City wise Units Supply
Following the RBI’s decision to keep repo rates unchanged, three ace Banks SBI, ICICI and HDFC - have slashed their base lending rates. With this decision, the existing as well as new consumers who are looking to take home loans are expected to benefit a decent proportion. Moreover, with this rate cut is likely to bring a positive effect on the real estate sector.
Prime Minister’s ambitious “Sagarmala” project whereby all coastal cities in India would be interconnected through road, rail, ports and airports through a special development package got “in principle” approval. The project would enhance the unique identities of the coastal cities in consonance with sea-side life. With this decision, the existing as well as new consumers who are looking to take home loans are expected to benefit a decent proportion. Moreover, with this rate cut is likely to bring a positive effect on the real estate sector.
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JAN - MAR 2015
In a major landmark development, the Real Estate Regulatory Bill was recently approved by the Union Cabinet. The Bill is expected to ensure greater accountability towards consumers, and to significantly reduce frauds and delays.
KEY HIGHLIGHTS OF THE BILL Originally envisaged for residential transactions only, it is now proposed to cover both residential and commercial real estate. Mandatory registration of real estate projects and real estate agents who intend to sell any plot, apartment or building, with the Real Estate Regulatory Authority Mandatory Public Disclosure of all project details including promoter info, project, layout plan, plan of development works, land status, status of statutory approvals and disclosure of proforma agreements, names and addresses of real estate agents, c ontractors, architect, structural engineer etc. Now the Bill states that 50 per cent of the amount collected from buyers should be deposited into the escrow within 15 days of receiving the amount and no preferential allowance can be given by state authorities. The bill now mandates that the carpet area of the flats be disclosed and homes cannot be sold on super built area, a laudable step towards transparency. Ongoing projects that have not received completion certificates have also been brought under its purview and such projects will need to be registered with a proposed regulator within three months.
100 SMART CITIES GET A MAJOR PUSH States suggested various parameters for selecting Smart Cities and they reached a consensus on the following: Self-Financing ability (25 % weightage) Institutional systems & capacities (25 %) Existing service levels and committed plan of action for 3 years (25 %) Past track record in implementing reforms (15%) Quality of vision document (10%) As per Venkaiah Naidu, Union Minister of Urban Development, 100 Smart Cities are likely to be selected by April-end. Development of these will commence in three phases — 20 by end of 2015, and 40 each in subsequent years. Few finalised cities include:
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Vizag
Allahabad
Paradip
Ajmer
Kandala
Shendra-Bidkin Region
JAN - MAR 2015
TOP MARKETS
NEW LAUNCHES AND RENTAL AVAILABILITY
Namma MetroPeenya-Nagasandra line is expected to be operational by April end. al of the Metro in the underground section between Minsk Square and Magadi. National Highway: Ministry of Road Transport and Highways declared Bangalore – Mangalore Road as National Highway. Pedestrian Skywalks – ORR: With the vision to ensure pedestrian safety, BDA plans for nearly 25 skywalks at Outer Ring Road (ORR) junctions in a phased manner. The Karnataka HC has asked the state government not to process applications under the revised Akrama-Sakrama scheme. Bangalore received a budgetary allocation of Rs 4,770 crore during the 2015-16 FY for the city’s overall development.
No. of Projects
CM Siddaramaiah set a target of Rs 2,900 crore of Property Tax collection by March 31, 2015. He has structure.
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TOP 5 MARKETS BASED ON RENTAL YIELD Micro-Market
Approx Units Supply*
Current Price per sq. ft.*
2200
5,210
1 2
Hennur
1100
4,600
3
Sarjapur Road
850
4,800
4
Electronic City
700
4,200
5
Devanahalli
600
4,350
< 4,000 per sq. ft.
4,000-6,000 per sq. ft.
Q-o-Q Change
6,000-8,000 per sq. ft.
Price Trends (in per cent)
> 8,000 per sq. ft.
TOP 5 MARKETS BASED ON RENTAL DEMAND
TOP 5 MARKETS BASED ON RESALE AVAILABILITY
HSR Layout, Electronic City Phase I
JP Nagar
TOP 5 MARKETS BASED ON RENTAL YIELD Electronic City Phase I
Key : IT Hub, Ample Land Availability
Sarjapur Road
Key : IT Hub, Strategic Location, Ample Land Availability, Affordable
BTM Layout
Key : Established Residential Layout, Multiple rental options
Sarjapur Road
Key : IT Spillover, Commercial establishments, Affordable
Bellandur
Key : IT Hub, Strategic Location, Commercial establishments
KEY PROJECTS LAUNCHED IN Q1, 2015
Anish Common Wealth
Anish Projects
Nitesh Hunter Valley
Nitesh Estates Krishna Enterprises
Krishna Mahindra Windchimes Prestige Pine Wood
Villas
1900
3,4 BHK
Hennur
Apartments
1100
2,3,4 BHK
Electronic City Phase I
Apartments
606
2,3 BHK
Mahindra Lifespaces Bannerghatta Developers Limited
Apartments
400
3,3,5,4 BHK 6500 to 7000
Apartments
256
2,3,4 BHK
Prestige Group
Koramangala
With 40 per cent new units supply, North Bangalore outshined East Bangalore that had maintained the top position for the last few quarters. Affordable segment rules the roost in terms of market share. However, it is interesting to note that as compared to Q4, 2014, the market share for the same has reduced from 50 per cent to 40 per cent. Unlike conventional market trend, a whopping 41 per cent new supply in this quarter was plots and layouts. In Q1,2015, Electronic City Phase I and Sarjapur Road were the showstoppers in all the aspects, which includes maximum new units supply, rental availability, demand and rental yield. Fastest Moving Rental Markets: As per CommonFloor’s proprietary data model, properties up for rent in KR Puram, Sarjapur ORR, Marathahalli, Bellandur, BTM Layout and Jayanagar on an average take just 13-18 days to go out. The information provided in this Website is based on CommonFloor data which is collected from various publicly known sources viz, websites, documents and maps including CommonFloor’s responsibility is accepted for the accuracy of whole or any part. This information is absolute property of CommonFloor /maxHeap Technologies Private Limited. It should not be reproduced in any form, in part or whole, without prior written permission of CommonFloor. The information is provided on an “as is” and “as available” basis. CommonFloor expressly disclaim warranties of any kind, whether express or implied, including, but not limited to, the implied warranties of merchantability
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