Mega Online Home Fest by Provident Housing

Provident Mega Online Home Fest
Provident Mega Online Home Fest
Provident Mega Online Home Fest

Provident Housing announces the biggest festival of this season, Mega Online Home Fest! The fest offers savings up to Rs.12,00,000 lacs* on premium homes and 1 lac* instant additional cashback (over and above the offer price) on the purchase of an early-bird voucher worth Rs.999 (100% refundable if not used) before 16th October 2019.

You can arrive at this fest as per your convenience as it is a full-fledged ONLINE HOME FEST giving you a chance to own a Provident Home, in just a click. To make your festive season bigger and brighter, Provident Housing has handpicked the projects at the most in-demand micro-markets and have offered savings up to Rs.12,00,000 on these homes.

The offer price will be revealed on 18th October 2019 @00:00 hours on their website (hyper link this). To avail the voucher benefit, you must select and book an apartment online through their online home booking platform, BOOK MY HOME between 18th October 00:00 to 20th 0ctober 23:59 hours. The offer is valid for some specially chosen projects across Bengaluru, Chennai, Coimbatore, Goa and Hyderabad.

Here is how you can book your dream home

Step 1- Go to www.providenthousing.com/megaonlinehomefest and click on the project of your choice.

Step 2- Click on BOOK MY HOME to take a virtual tour of the property.

Step 3- Select your preferred apartment from the available selection.

Step 4- Book your home by making an online payment of just Rs. 2,00,000. Don’t forget to apply your voucher code at the time of booking to get an instant additional cashback of Rs. 1,00,000.

What are you waiting for? Get your own little place to celebrate, a place with new beginnings, a place made of love and dreams. This year, BRING DIWALI HOME!

Choose your project today!

How North Bengaluru has Emerged as the City’s Crown Jewel

Bengaluru’s emergence as an outsourcing hub gave birth to IT clusters in the city, and earned it the sobriquet ‘Silicon Valley of India’. Until the mid-2000s, these were located in the central, southern and the eastern parts of the city which also enjoyed well-rounded development in terms of infrastructure as well as civic and social amenities. However, the development of the Kempegowda International Airport in Devanahalli in 2008 catalysed the growth of North Bengaluru. It attracted large scale realty investments and still continues to do so.

North Bengaluru comprises of the localities of Hebbal, Jakkur, Thanisandra, Hennur, Banaswadi, Yelahanka and Devanahalli. Development of the entire region is accelerating at an exponential rate. Here’s a look into the factors contributing to the development of North Bengaluru.

Public Infrastructure in North Bengaluru

If we look at the public infrastructure that is currently in place and under construction in North Bengaluru, we would be able to imagine the scale at which the region is growing. A 22-km Elevated Expressway to the International airport has reduced the travel time to and from the airport for the entire city.

Under Phase 3 of the development of Namma Metro, a line from Nagawara to the International Airport via Hebbal and Jakkur, spanning a total of 30 km, has been sanctioned. The project has been fast-tracked and is estimated to be completed by December 2023. Its completion would enable residents of North Bengaluru to seamlessly travel to the airport or to the city.

The proposed Peripheral Ring Road (PRR) is envisioned to be a 65-km stretch of Ring Road which will encircle the Outer Ring Road (ORR) and connect Doddaballapur Road, Bellary Road, Tumkur Road, Hennur Road, Sarjapur Road and many others, including Electronic City. The PRR will largely decongest the ORR and provide faster connectivity around the city.

Finally, the government of Karnataka is contemplating developing a suburban railway network connecting the city of Bangalore to the International Airport. The plan is to convert Devanahalli into a terminal station of the suburban line which would further connect Bangalore City Railway Station to the airport via KR Puram and Hebbal Railway Station. This is a bold plan and would provide airport-to-railway connectivity thus boosting tourism as well as unprecedented multi-modal connectivity in the city.

Peripheral Business District

North Bengaluru is developing into a massive business hub. The $22 billion, 12000-acre KIADB Devanahalli IT Park is one of the most awaited developments here. This is in addition to the already-functional KIADB Aerospace SEZ, a science park and a 10 billion dollar financial city which would rival the financial hubs of Gujarat and Maharashtra, and further attract a lot of growth and employment opportunities. Manyata Tech Park and Kirloskar IT Park are among some of the IT parks that have come up in the region. A 2018 Knight Frank report observes that office transactions (sq. ft.) in the region have seen a 73% YoY growth; this is estimated to increase further.

Cheaper Land Rates Contributing to the Real Estate Boom

North Bengaluru has benefitted from traditionally cheaper land rates which has enhanced its attractiveness to developers and investors. Despite the recent flurry of development, and improved infrastructure and connectivity, the rates continue to be lower than other parts of the city. This has consequently resulted in a booming residential market with more affordable housing options for the masses choosing to settle in Bengaluru. Estimates of prices per sq. ft. for apartments in North Bengaluru – Hebbal (Rs. 5000-10000), Hennur (Rs. 3500-7500), Yelahanka (Rs. 4000-6500) and Thanisandra (Rs. 3000-8000).

Vast Array of Options

A homebuyer looking for a new abode in North Bengaluru has the flexibility to choose from a variety of options curated to suit their lifestyle needs. Apartments of varying configurations, townships boasting vast green spaces with digitally enabled homes or green homes, villas, and plotted developments are some of the dizzying array of choices that real-estate developers offer the discerning homebuyer or investor. North Bengaluru is emerging as the destination of choice to live a well connected, urban life with the luxury of abundant green spaces.

Proximity to the best of Social Infrastructure

The burgeoning growth of North Bengaluru as a commercial and business hub has ensured the growth of a reliable and good quality network of social amenities such as schools (Stonehill International School, Canadian International School, Delhi Public School, Sir M Visveswaraya Institute of Technology, etc), hospitals (Columbia Asia, Cloud Nine, Regal Hospital, NRV Hospital, Aster CMI Hospital, etc), malls and entertainment options (RMZ Galleria, Decathlon etc).

Despite the tremendous construction and development in North Bengaluru in recent years, the region continues to have an abundance of vast, open spaces. The existence of Nandi Hills and lots of greenery also adds to the attraction of this region.

Conclusion

North Bengaluru is the latest shining jewel in the crown that is the city of Bengaluru. Investors and residents alike can expect much from this region in the coming decade. The completion of public infrastructure projects such as Metro connectivity till the airport, Peripheral Ring Road, the establishment of Business districts, SEZ’s, and IT clusters will completely transform the landscape, economy and real estate potential of the region.

(Previously published in The Hindu’s Property Plus supplement on 28th Sept)

Affordable Housing Keeps Residential Real Estate Performance Stable: Knight Frank

Knight Frank India released the 11th edition of its flagship half-yearly report on Indian real estate which presents a comprehensive analysis of the performance of both the residential and office markets across eight cities for the period January to June 2019. The highlight of this most-recent edition of the report has been the growth in affordable housing which has kept residential sales afloat despite a recovering market. On the office side the market has seen tremendous growth to reach an all-time high. The coworking segment has appropriated 15% of the share of this growth in office transaction volumes. Here are the quick highlights of the report:

Residential Performance Grows

Overall, the residential market performed well thanks to a stronger and more transparent regulatory environment. According to the report, launch of new units in H1 2019 rose by 21% YoY to 107,143 units while sales grew by a steady 4% YoY to 133,317 units. 51% of launches during H1 2019 occurred in the ticket sizes under INR 5 mn (INR 50 lakhs) and 78% under INR 10 mn (INR 1 Cr) thanks to developers’ focus on the affordable housing sector and lower ticket size offerings.

Residential Real Estate performance
Residential Real Estate performance (Source: Knight Frank)

While NCR and Kolkata saw a drop in unit launches, Hyderabad and Bengaluru grew by 47% and 34%, respectively. Prices have continued to stagnate and remained below the CPI across most markets. The weighted average prices in Mumbai, Pune and Chennai falling by a further 3%, 4% and 3% YoY, respectively.

In Mumbai, residential growth was mostly seen in the suburbs. Thane saw the largest quantum of new launches by some of the biggest corporates. The Peripheral Central Suburbs witnessed the highest sales growth in MMR of 9% YoY during H1 2019. Overall sales of housing units in Mumbai grew marginally by just 4%. Two factors affected the sales negatively – ambiguity around GST and the elections. In fact due to the ambiguity surrounding GST, most developers opted for the earlier GST regime with 12% ITC for on-going projects.

Gulam Zia, Executive Director– Valuation & Advisory, Retail & Hospitality said, “The mood of residential realty in Mumbai continues to be sombre and withdrawn. With more skeletons tumbling out of NBFC cupboards the shadows on Indian housing industry are getting longer. Affordable housing segment has emerged as a silver lining in these dark clouds.”

Office Market Performance Hits All-time High

The Indian office space sector reached a decadal high volume in supply and transactions in H1 2019. Office supply increased by 31% year-on-year (YoY) to 2.2 mn sq m (23.9 mn sq ft) in the current analysis period, the highest level achieved in this decade. Demand from the IT/ITeS (35%) and coworking (15%) segments have contributed heavily to the phenomenal growth of this sector.

Bengaluru achieved a historic high in transactions as well as supply during H1 2019 with transactions hitting 8.3 mn sq. m. while supply increased by over 100% at 7.6 mn sq. m. in H1 2019. Average rental values across the eight cities grew by 10% YoY during H1 2019 with Bengaluru topping at 13.5% YoY.

All India Office Market Performance
All India Office Market Performance (Source: Knight Frank)

Shishir Baijal, Chairman and Managing Director said, “The spurt in demand for higher end roles in the Artificial Intelligence and data security domains have led to a welcome and significant 59% YoY increase in demand from the IT/ITeS sector during H1 2019. Co-working spaces continue to drive transaction volumes and influence occupier demand”

In Mumbai, the transaction activity in the Mumbai Metropolitan Region (MMR) office market was strong at 0.43 mn sq m (4.6 mn sq ft) in H1 2019 thus registering a growth of 61% YoY. The Peripheral business district (PBD), Suburban business district (SBD) Central and SBD West were the three business districts which added supply in H1 2019. The SBD Central market particularly has been gaining traction, witnessing 143% YoY growth in transactions in H1 2019. Central Mumbai witnessed the highest rental growth of 6% YoY during H1 2019, followed by BKC at 5% YoY and SBD Central at 5% YoY.

Infrastructure Boosts Real Estate

The India Real Estate report also focused on the role of infrastructure in lifting living standards and thus boosting real estate markets. A number of infrastructure projects across the country have spurred construction activity in various micro markets. Some of these are Metro rail projects in Pune, Mumbai, Delhi-NCR, Bengaluru and Chennai, new roads such as the Mumbai coastal road, NPR and SPR in Delhi-NCR, new airports in Mumbai, Ahmedabad, 100 smart cities, industrial corridors and the very first bullet train project. The report states that if the Indian economy needs to grow from a USD $5 trillion economy to USD $5 trillion by 2025, then the government needs to increase its spending on infrastructure.

Ravi Puravankara : A Realty Visionary

Ravi Puravankara

In 1975, the promise of Mumbai, India’s business epicentre lured a young man to its glitzy shores. In a quintessential narrative, he came to the city with big dreams, bolstered by little more than grit and determination.  He foresaw a unique opportunity for high-quality property development in the thriving metropolis and with a single-minded focus and a steely resolve he pursued his vision.  The prodigious youngster, who made his initial forays into real-estate at a very early age, is today listed among Forbes’ ‘100 Wealthiest Indians’ list. Among his numerous laurels, Ravi Puravankara was endowed with the ‘Lifetime Achievement’ award at the Realty Plus Excellence Awards-2012, Lifetime Achievers Awards for Outstanding Contribution to Real-Estate Sector at the CMO Asia Awards for Retail Excellence – 2013, ‘Scroll of Honour’ award at the Realty Plus Conclave & Excellence Awards – 2014 (South), BRAND ACHIEVERS AWARD – Lifetime achievement Award  for Excellence – 2015, 9th REALTY PLUS EXCELLENCE AWARDS (SOUTH) 2017 – Scroll of Honour and BAM (Builders, Architects & Building Material) Awards 2018 for – Life Time Achievement Award, to name a few.

Ravi Puravankara
Ravi Puravankara

His foray into the world of Real Estate when he chanced upon he had an opportunity “that wouldn’t wait” – a chance to procure a stretch of land in his desired locality, thereby founding Puravankara Limited (PL), and the rest is history. Since then, the company has grown from strength to strength, having successfully completed 62 residential townships & five commercial parks spanning 40 million square feet. Currently, it has about 29 million square feet of projects under development, with an additional 70 million square feet in projected growth over the next 7-10 years.

When Ravi Puravankara decided to expand his base to Bangalore in 1985, the disruptive innovation that he bought in the realty landscape was a sight to be reckoned with. It was like a new wave of apartment scene in the garden city which was partial to bungalows and independent homes. At the time, the standard norm here was not more than 10-15 flats in a complex, but he envisioned the future built one with 660 apartments, the very first in Bangalore. Working on that scale, he ushered in the concepts of a clubhouse, a swimming pool and multiple amenities within the community. This indeed was the beginning of the ever-expanding Bangalore real estate market.

Puravankara prides itself on continual innovation to meet evolving market needs. In 2008, Ravi Puravankara had yet another epiphany.   This time he conceived a vision for housing the burgeoning mid-income segment, it was an idea he was tinkering with since the early 2000s, always ahead of the curve. Under his aegis, Provident Housing Limited, a wholly owned subsidiary, was established to address the aspirations of upwardly mobile Indians and first-home buyers. The pioneering ‘premium affordable’ Provident proposition would bring best-in-class homes at affordable prices, underscored by a rigorous value-engineering process than reins in costs.  The proposition has so far been very well received in the market with nearly 11 million square feet of projects now under development. As demand continues abated, the company plans to further augment its presence in this segment.

Ravi Puravankara, who founded the Puravankara Group in 1975, is the chief promoter and the driving force behind the company’s meteoric growth, fuelled by his prescient vision. The group, which began its operations in Mumbai, has established a sizeable presence in the metropolitan cities of Bangalore, Chennai, Coimbatore, Hyderabad, Kochi, Mangalore, Pune, Goa, Kolkata and in overseas locations such as Sri Lanka, Dubai and Saudi Arabia. The flagship parent company, Puravankara Limited, is listed on the Bombay stock exchange.

Driven by the foresight and vision of Ravi Puravankara, Puravankara Limited also has the distinction of being the first developer to obtain FDI in the Indian real estate industry through its joint venture with Singapore based Keppel Land Limited, the property arm of the 54% (Singapore) government-owned conglomerate, Keppel Corporation Limited. The joint venture company, Keppel Puravankara Development Private Limited, has on-going housing projects across the country.

Puravankara’s strong track-record and Institutional strengths set the company apart in the realty sector. Their commitment to corporate governance has ensured accountability, fairness and transparency in all the processes. This has also made Puravankara Limited one of the most trusted companies in the Industry. This is a clear reflection of Ravi Puravankara’s values and believes and which he always carried on his sleeves and ensured the the same is followed by the last employee in his group of Companies. His employees, from the 400-odd people, who were in the company five years ago, grew to the 900 plus employees today, work cohesively as a unit to accomplish what he set out to do – help people achieve their dreams!

Both Gurgaon & Noida To Gain Greatly From Improved Infrastructure

(Previously published on 8th Dec, 2018 in the Delhi edition of DNA Property Newspaper.)

Gurgaon and Noida are two of the best planned cities in northern India. They are also very important real estate markets adjacent to South and Central Delhi. Both these twin markets are very versatile in terms of the wide variety of residential choices they offer to investors and end users. These include villas, bungalows, apartments, penthouses and plots. Both, Gurgaon and Noida are also set to gain a lot from the much improved infrastructure around them.

Gurgaon gains a lot from the presence of BFSI, ITeS & Manufacturing sector while Noida has largely ITeS & Manufacturing companies spread across its SEZs. Several MNCs and large domestic firms – Cognizant, Google, Maruti, Honda Motors and many more have operations in these twin cities. As a result of these excellent job opportunities, many young professionals and working families throng to these cities. They also benefit greatly from the top notch schools, colleges & hospitals located here as well as numerous avenues for shopping and recreation; some of the largest malls in the country are located in Noida and Gurgaon.

With the completion of the Gurgaon leg of the Dwarka Expressway travel and connectivity has received a big boost. For residents and office goers in Gurgaon, this will be a big relief. Further enhancements under the Bharatmala Highway Project such as an elevated 23 km stretch of the Expressway, various connections which connect the elevated portion to different parts of Gurgaon, and the tunnel connectivity to the IGI airport will further boost connectivity in Gurgaon. Work on a cloverleaf 500 metres from the Kherki Daula toll plaza will begin soon and is expected to decongest daily traffic at this major junction.

Noida’s big pain point was connectivity to the IGI Airport and Terminal 1, but with the new Magenta line things have become much smoother, as one can get down at Terminal 1 and access all of South Delhi easily. Further extension work of metro till Greater Noida will connect some of the best residential sectors & Peripheral Business Districts in this city. The 56 km Faridabad-Noida-Ghaziabad Expressway (FNG) will further augment road connectivity while the newly inaugurated Eastern Peripheral Expressway provides Delhi-Greater Noida connectivity. The new Jewar airport in Greater Noida is expected to provide an alternate air travel option and ease traffic at the IGI.

Good town planning, excellent multi-modal transport and a growing commercial demand has led to some of the country’s leading developers choosing Gurgaon and Noida for development. Top names including Tata Housing, Sobha, Godrej, Shapoorji Pallonji have now found a stronghold in these markets, while several more are supposedly scouting for land.

Land prices as well as product prices have softened over the last 3 years, this gives a good chance for end buyers and investors to enter this market, the most sought after one in north India.

Bengaluru Trumps Mumbai in Uptick of Residential Market

It may seem as if the lean period in Indian real estate market could be turning the corner. Based on Knight Frank’s ninth edition of its flagship half-yearly report on Indian Real Estate for the period January-June 2018 (H1), the residential real estate market seems to be making a comeback from the slowdown caused due to ‘testing triplets’ of demonetisation, RERA and GST.

Knight Frank, an independent property consultant which routinely releases its analysis of the real estate markets around the world and India released this report on July 25th, a day when the Maratha Kranti Morcha called for a state and city wide bandh to protest farmer deaths in the Marathwada region. Most retail establishment across Mumbai were shut for the day and roads were remarkably empty for a city that experiences traffic jams all day. Thankfully the bandh was called off by evening so that people could get home safely. However, the scenario sums up the developmental issues our country and leading cities face, in the backdrop of which the positive news of renewed growth in real estate and its ancillary sectors is a much needed balm.

According to Knight Frank report which analyses the 8 cities of Ahmedabad, Bengaluru, Chennai, Hyderabad, Kolkata, Mumbai, NCR and Pune, there was a 46% YoY increase in units launched during the H1 period, while the increase in units sold was at 3% YoY in the same period. This marks the highest level of launches and sales in the last 18 months since demonetisation was rolled out at 124,000 and 92,000 units respectively.

Mumbai saw a staggering 128% YoY rise in residential launches, accounting for 40% of the total launches across the 8 cities covered in the report. However, the sales grew just 1% casting a shadow on positive sentiments. By contrast, Bengaluru saw a modest but very positive 11% rise in launches and even better 22% increase in sales of residential units. Other markets such as Pune, NCR and Hyderabad also saw a boost in the percentage increase of launches.

Report of Indian residential market
Report of Indian residential market (Source: Knight Frank report)

The key contributor to Mumbai seeing launches to the tune of 35,974 units is the dumping ground reprieve in BMC region and the parallel launches of mega projects in the peripheral suburbs of the financial capital. Dr. Samantak Das, Chief Economist and National Director – Research at Knight Frank noted, “Most developers focused on reducing apartment sizes of their new launches. Accordingly, we have seen shrinkage of 12% in apartment sizes across MMR, with some premium markets witnessing reduction of as high as 31%.”

Some of the key takeaways of the report were:

  • Mumbai saw the most number of launches at 128% YoY while NCR and Pune witnessed more than 75% growth.
  • Most launches were in the lower ticket size range wherein Bengaluru and Mumbai witnessed significant supply of units priced under INR 50 lakh and 1 crore, respectively.
  • Average size of units in MMR shrink by 12% between 2013 and 2018.
  • Mumbai, Pune and Kolkata saw prices of residential units drop by 9%, 8% and 8% respectively. The effective price drop was 10-15% after factoring in developers’ sops such as waiver of GST and stamp duty, and no floor rise cost to customers.
  • Despite growth in launches, government reforms and reduction in prices, sales continue to stagnate across markets. Bengaluru’s positive growth however prevents a pan-India decline in sales.
  • The growth-resistant state of the sector until now has also resulted in a higher Project Life Cycle (PLC) as the Quarters-to-sell (QTS) inventory remains stagnant at around 11.2 or 3 years.

Despite the encouraging numbers across most markets, the analysts at Knight Frank remained circumspect of the future growth of the sector owing to the continuing uncertainty in the market, high inflation and rising interest rates as well as the upcoming general elections.

Shishir Baijal, Chairman and MD, Knight Frank India wrapped up, “It could perhaps still be a rocky way ahead for the real estate industry and we all continue to look ahead for the impetus that is required for the industry to revive.”