Tag: Paramount Group

Business World

Delhi NCR witnesses 23% increase in sales volume over Q4 2020

Apr 6, 2021 by Neel Achary 0 Comments #Dhiraj Bora, #Head Marketing & Communication, #Paramount Group

Delhi NCR has been witnessing a continuous increase in the sales volume since Q2 2020. The region saw a sale of 2,250 units in Q2 2020, 3112 units in Q3 2020, 4440 in Q4 2020, and 5448 in Q1 2021. The percentage growth in sales volume Q1 2021 over Q 4 2020 is 23%, which is the third-highest growth volume among the major cities in India. The figures were released by JLL in Residential Market Update – Q1 2021. The number one spot was taken by Kolkata with 201% growth followed by Chennai with 28% growth in Q1 2021 over Q4 2020.

“The sustained growth in sales presents clear signs of demand and buyer confidence coming back to the market. This has been on the back of historically low home loan interest rates, stagnant residential prices, lucrative payment plans and freebies from developers and government incentives such as the reduction of the stamp duty in states like Maharashtra and Karnataka (for affordable housing). The ease of lockdown restrictions and the commencement of the vaccination drive have further aided in bringing buyers back to the market,” said Dr. Samantak Das, Chief Economist and Head Research & REIS, JLL.

According to the finance ministry, the 0.4 per cent growth in the December quarter suggests that the economy has returned to pre-pandemic levels and represents a further strengthening of the V-shaped recovery. The real estate sector’s optimism is palpable, as new projects are being launched at a rising pace, signaling optimism and demand that will contribute to more economic recovery. “As the real estate sector recovers from losses, people are willing to invest in projects developed by reputable developers. In the end, it’s all about how people view a developer, and we’d like to thank our customers for putting their faith in us,” says Dhiraj Jain, Director, Mahagun Group.

It was a heartfelt moment for 40-year-old Amit Trivedi as he booked a property in Delhi NCR as home loan interest rates are hovering around sub-7%. He was glad as he was waiting for the home loan interest rates to come down since he moved to Delhi in 2009. People like Trivedi are happy to take a step towards realizing the dream of owning a home in Delhi NCR. Vijay Verma, CEO, Sunworld Group says, “It’s a good sign for the sector, which will have to react more rapidly to meet the increased demand for real estate assets as a result of the global pandemic. Soon, the market will be flooded with investment opportunities that offer investors high returns and better living choices for end-users.”

Overall also, the Indian economy is recovery better-than-expected. At constant rates, the Indian economy was worth Rs 145.66 lakh crore in FY20. According to India Ratings’ forecasts, it will contract 7.8% year y-o-y to Rs 134.33 lakh crore in FY21 and grow 9.6% y-o-y to Rs 147.17 lakh crore in FY22. “To get your returns right, what you need is a structured market analysis. This is a great time for end-users or long-term investors to get into the market. Today, the buyer is also in the driver’s seat while purchasing a new property that has recently been completed or is nearing completion,” says Harvinder Singh Sikka, MD, Sikkaa Group.

Against estimates, the first three quarters of 2020 saw sales of around Rs 90,000 crore in seven major cities, compared to around Rs 1,50,000 crore in the same timeframe of 2019. Despite a roughly 40%-45% decrease in revenue from the previous year, the year must be seen in the background of the global economic downturn triggered by the pandemic. Major cities’ housing sales value increased substantially over pre-COVID-19 levels, owing mainly to the mid-segment; NCR witnessed more than 150 per cent increase in sales in the third quarter of 2020.

Dhiraj Bora, Head Marketing & Communication, Paramount Group says, “Home loan rates were also lowered as a result of the government’s repo rate cuts and liquidity injections. To avoid a sudden decrease in sentiment, the developer community also implemented appealing payment plans. Markets began to rebound after the lockdown was lifted, amid a downturn in economic activity that was weighing on the overall economy. Finally, the previous year’s growth figures were restored in the last quarter, and the industry returned to a state of near-normalcy.”

Business World

Tips to invest in ready to move in property

Mar 3, 2021 by Neel Achary 0 Comments #Head Marketing & Corporate Communication, #Mr. Dhiraj Bora, #Paramount Group

By Mr. Dhiraj Bora, Head Marketing & Corporate Communication, Paramount Group

One of the first options to make if you are looking to buy a home is whether to go for a ready to move in property or a flat in under construction properties in India. The option will primarily rely on the condition and level of your finances and needs. Both property types have their own perks and drawbacks. The chance of a ready to move property in India is almost zero and before you buy it, you can cross check any truth and fiction, fitting and faucet. Here are some aspects of your finances and lifestyle that can help you make a choice between being ready to move in and building property:

Check your financial preparedness
Do you have a major savings chunk and are you all set to make an investment? If yes is the answer, go for a ready-to-move property in India. On the other hand, if you have found a good location and a good house, but you may need a couple of years to work on your finances to become ‘real estate ready’ in India, go for under construction properties. To make the down payment, secure a loan and take a few years to save, you can stress yourself financially a little bit. By then, the property will be ready and the EMIs will begin.

Assess your urgency
If you live in a rented apartment and are searching for a property to purchase, a ready-to-move home could serve the purpose and help you save on rents, although it could cost you a little more. As witnessed by many home buyers caught up in project delays, waiting for under construction properties in India while paying rent is frustrating.

Check location & property
If your investment is in an area that is all set to grow, while the ongoing project in India is being built, it would be wiser to go for it. As the property is being developed, services, accessibility, shops, schools and other facilities can catch up, making it an easy ride for you when you move in later. If you move into the property before the area is fully built, with any small purchase and bad access roads, you will have to live through the tough stage where travel is needed. In the meantime, property prices could pick up, raising the investment’s capital value.

Check tax implication
In compliance with Section 24 and Section 80C of the Income Tax Act, when you buy a ready-to-move house, the principal of Rs 1.5 lakh charged is deducted from revenue. The interest paid is also entitled to a deduction of up to Rs. 2 lakh. But if you purchase a property under construction, you can only assert tax deductions until the property is turned over to you, in five instalments over the next five financial years.

Business World

Real estate likely to see a windfall in 2021

Dec 14, 2020 by Neel Achary 0 Comments #Dhiraj Bora, #Head Marketing & Communication, #Paramount Group

New Delhi: Riding on expectations from the slew of measures that the government took in 2020, the real estate sector has high hopes from 2021. After a gloomy time of lockdown, the sector picked itself up and cashed in on the pent up demand due to people’s realization of the importance of real estate assets. The segment came out as the safest investment option in comparison to other tools, and this realization made even the fence-sitters come out in search of the right property.

The optimistic expectations can also be attributed to the economic growth predictions of the RBI. In the first quarter of the next fiscal year, the RBI suggested growth could be 21.9 per cent (largely because of the base effect as the economy contracted by 23.9 per cent in Q1 2020-21) and overall 6.5 per cent for the first half of 2021-22. “The Indian Economy is bouncing back very strongly, this combined with the various government initiatives to boost demand such as low-interest rates and reduction of taxes is likely to drive investments into the Indian economy. With the economy growing, demand in retail and commercial is also likely to gain momentum. We also expect investors to once again invest in commercial and retail assets due to the above factors and as other stable asset classes giving very low returns. Commercial and Retail Real Estate investments provide ROI in the short and long-term, and this is unique only to this asset class,” says Uddhav Poddar, MD, Bhumika Group.

The retail segment looks promising, especially after the pandemic time, as people are likely to prefer visiting places that can provide them with a safe environment. “Malls and commercial spaces that are going to stick to the new normal set after the coronavirus are going to score over the open-air markets. The footfall in malls will definitely increase, and the retailers will utilize the opportunity to the hilt,” says Sagar Saxena, Project Head, Spectrum Metro.

The residential segment is going gaga over the reduced home loan interest rates, which are around sub-7%. “Since the time home-loan rates were reduced, we have been witnessing an increased number of inquiries; the same trend is going to continue in 2021. The demand for gated communities has increased as people are concerned about the healthy lifestyle; the pandemic has also made people realize the importance of having their own abodes,” says Harvinder Singh Sikka, MD, Sikka Group.

In the announcement after the latest Monetary Policy Committee review, the RBI mentioned that it would continue to employ instruments to ensure ample liquidity. Some of the announcements during the year include Rs 18,000 crore additional funding for PMAY for Urban area, income tax relief for developers and homebuyers for houses that cost up to Rs 2 cr, approval of the Union Cabinet to set up a Rs 25,000 crore (US$ 3.58 billion) alternative investment fund (AIF) to revive around 1,600 stalled housing projects in top cities, 1.12 crore houses sanctioned under PMAY in urban areas, creation of Affordable Housing Fund (AHF) in the National Housing Bank (NHB) with an initial corpus of Rs 10,000 crore, etc. “The sector has always been saying that liquidity is an issue for the real estate sector. The government of India announced several packages that are likely to have a positive impact in 2021. Looking at the response in 2020 after the Unlock, the coming year looks promising,” says Ashok Gupta, CMD, Ajnara India.

Adds Dhiraj Bora, Head Marketing & Communication, Paramount Group, “The year would be beneficial for all segments of residential such as theme-based projects, luxury, and mid-segment. The year 2021 is going to be the year when real estate will see a windfall due to the increased demand for real estate assets. The marketing has evolved, and developers are using new ways to reach out to the potential buyers, including the use of digital media.”

Business World

Master Green Park in Sector 117 will provide boost to real estate

Dec 1, 2020 by Neel Achary 0 Comments #Ajnara India Ltd., #Ashok Gupta, #CMD, #Dhiraj Bora, #Head, #Marketing & Communication, #Paramount Group

Noida: Real estate in sectors around Noida sector 117 got a fresh boost when Noida Authority announced that it would develop an 18-acre park with a butterfly design theme. To be ready by next year, the Master Green Park will have a cricket pitch, amphitheater, cafeteria, parking space, and convenience shops. The residents of sector 73, 75, 76, 77, 78, 116 and 115, 118, 120 will benefit from the development and the properties here are going to witness good appreciation in the short term.

Talking about the lifestyle change that this park will bring for this sector and adjoining sectors, Harvinder Singh Sikka, MD, Sikka Group, says, “Any infrastructural development in an area uplifts the real estate in and around the adjoining sectors. The park will bring in a healthy environment for the residents, and this will make others move to this sector. The nearby areas will also witness an appreciation in prices. We welcome the step taken by the Noida Authority for the betterment of Noida’s environment.”

In post COVID times, people are concerned about health and wellness; this park is going to provide an option for them to lead a healthy life as the park is going to have a play area with yoga, jogging, and an open gym. “People will be ready to spend an extra buck if they get facilities that help them value their lives. The worldwide pandemic has made everyone take notice of the fresh environment. The development of this park is going to have a positive effect on the real estate in the area,” says Ashok Gupta, CMD, Ajnara India Ltd.

The upcoming park will have parking for 200 vehicles, and toilets. According to the officials, 90% of the work is complete, and the park will be ready next year. Dhiraj Bora, Head, Marketing & Communication, Paramount Group, says, “This park will provide a boost for newer projects coming around sector 117. After the pandemic, people are looking for wellness amenities in the projects, and a park developed by the authority is an added advantage.”

Business World

Return of migrant workers to kindle revival in realty

Nov 6, 2020 by Gouri Achary 0 Comments #Dhiraj Bora, #Harvinder Singh Sikka, #migrant workers, #Mr. Vikas Bhasin, #NAREDCO-UP, #Paramount Group, #realty, #SAYA Homes, #Sikka Group

Real estate sector is the backbone of the country, impacting overall GDP and the employment ratio for a great magnitude of the labour force. As the realtors strive hard for returning to the Pre-COVID levels, the impact April-June quarter had on the sector continues to get gradually subdued. One of the significant driving factors determining this revival in realty is the return of migrant workers back to metro cities.

Mr Vikas Bhashin

 

Speaking on the same Mr. Vikas Bhasin, MD, SAYA Homes said, “The exodus of labourers who went back to their hometowns and villages in the hope of saving and earning more in the adverse times of lockdown, began changing their perception as cities began to unlock and construction sites were open for providing them job opportunities. The labourers that stayed back in the cities were made to do rotational shifts and upskilling to make up for the time lost during lockdown months and ensure timely deliveries of projects.”

Delhi NCR, being the major real estate market of North India, gets migrant labourers from the nearby states of Uttar Pradesh, Haryana, Bihar, Madhya Pradesh, Jharkhand etc.

 

Mr. Harvinder Singh Sikka, MD, Sikka Group

 

Harvinder Singh Sikka, Managing Director Sikka Group said, “Many established players in the construction and real estate began rolling out facilities and incentives to attract the migrants back to the cities such as flight tickets, insurances, better living conditions etc.”

Real estate body NAREDCO-UP also signed a memorandum of understanding with the Yogi Adityanath government on May 29 to facilitate buses for return of migrant workers. The continuation of operations in the infrastructure and real estate sector provides a significant boost to the overall development scenario in a country.

 

Dhiraj

Dhiraj Bora, Head Marketing and Communication, Paramount Group said, “NCR stands with an unsold housing stock of about two lakh units, reported a recent survey. A significant portion of it remains in the under-construction categories, and the return of labourers would bring the restored glory by kickstarting the marred construction activities due to lockdown and disrupted supply chain. Sales have started picking up during the festive season, and demand for property is consistent across the verticals of RTMI homes and under-construction projects.”

Timely deliveries of projects in the coming quarters will further strengthen the positive sentiment in the realty sector and bring back buyers and investors in greater numbers than present times.

Business World

Indian real estate sector to recover faster than expected

Sep 14, 2020 by Gouri Achary 0 Comments #Dhiraj Bora, #Harvinder Singh Sikka, #Indian real estate sector, #MD, #Paramount Group, #SAYA Homes, #Sikka Group, #Vikas Bhasin

The demand for residential property is increasing as is evident from the increasing inquiries and sales conversions over the past few months. The buyers are giving priority to housing especially the projects that have all the facilities that can keep them safer. In spite of all the darkness that sector witnessed during the lockdown, it is returning back with a bang. Besides, maximum investors got enough time to plan during the lockdown and realize the potential of real estate assets.

It is important to understand the downfall, recovery, and growth patterns of the residential segment market in the past decade. The lockdown happened just when the residential market was in demand for the two successive years and then it came to a near standstill for a few months during the lockdown. However, realtors remained in touch with the end-users after realizing the enhanced need of the people to have a property of their own. Going forward, the maximum number of end-users, as well as investors, will prefer homes that take care of the social distancing in addition to providing financial security.

End-users as well as investors are also showing readiness to pay a premium for homes that would include a wellness idea. The coming time will require constant policy support and economic stabilization so that the market remains upbeat.

Vikas Bhasin, MD, SAYA Homes, “It is good to see that customers are coming up with their queries and the demand for housing is coming in the track. Besides, to ensure the operations in a smooth manner as well as to help the customers, realtors are also coming up with various schemes and easy modes of payment methods.”

According to Harvinder Singh Sikka, Managing Director Sikka Group, “No doubt in saying that there was a financial imbalance due to national lockdown, which was necessary considering the spread of the global pandemic. But now it has been observed that there is a good query to sales conversion ratio, which is a positive sign for the sector.”

Dhiraj Bora, Head Marketing and Communication, Paramount Group said, “As per the present situation real estate sector is coming with various schemes & offers and are pushing even the fence-sitters to come forward.”

Business World

Time to invest in the realty sector

Aug 5, 2020 by Gouri Achary 0 Comments #Dhiraj Bora, #Head Marketing and Communication, #Managing Director Sikka Group, #MD, #Mr. Harvinder Singh Sikka, #Paramount Group, #SAYA Homes, #Vikas Bhasin

There is no denying that every crisis comes with some opportunities which allow us to find solutions, work for life & livelihood, and to do well. And a similar thing is with global pandemic coronavirus. Various sectors have faced the impact of this pandemic including real estate but the real estate sector has done tremendous work by using advanced technologies. With unpredictability all around, maximum people are looking for a sense of security. As per the recent reports people would like to have a physical asset during these tough times.

According to Mr. Harvinder Singh Sikka, Managing Director Sikka Group, “The impact of the lockdown on homebuyers has been positive so far. Various schemes announced by the developers, all-time low-interest rates, and subdued prices for quite some time are reasons enough to rekindle the interest of the customers. After the slew of measures taken by the government, the market was seeing an uptrend and the post-lockdown schemes have provided additional reasons to invest in real estate assets before the market goes northward. The resilience of the government towards the economy is being reflected in measures it is taking.”

Vikas Bhasin, MD, SAYA Homes said, “When the entire world is facing an uncertain scenario, the realty sector is considered as the safest investment option as it offers maximum stability. After the stock market crash, people do not want to risk their money in volatile instruments. Fixed income options are not looking very attractive even after a flurry of rate cuts. Higher returns could be expected once the economy starts recovering, which certainly makes this a perfect time for customers to invest in their dream homes.

Dhiraj Bora, Head Marketing and Communication, Paramount Group said, “We cannot say that only schemes are the lucrative factor as buyers are more aware and they weigh in a host of factors before taking a call. The market in real estate saw a dip during the lockdown but it was mostly due to the inability to physically see the property. Post-lockdown, the sector is at a stage where the buyers should get influenced by the government policies that are aimed at easing out the pressure on buyers. So it all boils down to the incentives/schemes/relaxations that a buyer is getting from the government. It is a time when the policies/incentives are in their favour. These revival signals in the economy are propelled by consumer confidence and entrepreneur optimism. The further push will come from the construction and trade sectors. It will also meet the dual objective of the present government that is industrial growth and employment creation. The government has taken a number of steps through stimulus packages to boost the real estate sector so that Indian growth story and consumer confidence can be sustained.”

Schemes are being lapped up immediately by the buyers as they were waiting for the additional benefits that they can get while buying a property. The market has improved and this will reflect in the overall performance of real estate in this quarter. For rates, I would say the market is stagnant as developers have realized that the rates are already at par with the buying capacity of the customers. The likelihood of increase is low and we can see a change of 5-10 per cent in the coming months. Due to various reasons, property prices have not increased for quite some time now and the recent prices can be termed as 35% less than what it should have been. At present, prices in the realty sector are at their bottom and rearing to pick up, making it the best time to invest in property. This time is right for investment because of beneficial home loan rates. The present market conditions are best for buying a home as the home loan interest rates are at an all-time low. A decrease in home loan interest rates post-COVID has become a big trigger for end-users to buy a home.