Monday, 19 March 2018

Zaha Hadid Architects to design Navi Mumbai international airport.

The firm, which bagged the contract from Navi Mumbai International Airport Limited (NMIAL) after a 12-week design competition, will design the new airport's Terminal 1 and air traffic control (ATC) tower.

British architecture firm Zaha Hadid Architects (ZHA) has secured the mandate to design the much-delayed Navi Mumbai international airport, being developed by the GVK group-led NMIAL. The firm, which bagged the contract from Navi Mumbai International Airport Limited (NMIAL) after a 12-week design competition, will design the new airport’s Terminal 1 and air traffic control (ATC) tower, according to a statement on Wednesday.

This will be Zaha Hadid’s first major project in the Indian sub-continent. The work on the Rs 16,700-crore Navi Mumbai international airport kick-started last month with Prime Minister Narendra Modi laying the foundation stone for the first phase of the project on February 18, after more than two decades of its being conceived.

Planned in 1997 as a secondary airport to meet the growing needs of Mumbai, the project was inordinately delayed due to a myriad of factors, including political indecision, issues of environmental clearances and the funding. “We are committed towards bringing the best global practices from the industry to design, engineer and build this most awaited (Navi Mumbai) airport project in India.

“Therefore, we decided to go with ZHA, a firm known for its path-breaking and remarkable architecture. It also has the expertise of delivering a world-class airport design through a highly professional team,” said GVK Reddy, founder and chairman, GVK and chairman NMIAL. The first phase of the Navi Mumbai airport is likely to be completed by the end of 2019, with one runway and the terminal building ready, and will handle up to 10 million passengers per annum.

The second phase, to be completed by 2022, will take the handling capacity to 25 million passengers. The third phase will be completed by 2027, and at the completion of the fourth phase by 2031, the handling capacity will increase to 60 million passengers. Established in 1979, ZHA has a portfolio of over 950 projects spread across 44 countries.

It has designed Beijing’s under-construction Daxing airport terminal, spread over 700,000 square meter, besides designing Olympic Aquatics Centre in London, the Al Wakrah Stadium in Qatar for the 2022 Football World Cup, the Guangzhou Opera House in China and the MAXXI Contemporary Arts Centre in Rome, among others.

The City Industrial Development Corporation (Cidco), which is developing the new airport along with GVK Group, expects the first flight to take off in 2019. The GVK group, which will invest nearly Rs 4,000 crore in the first phase, will hold 74 per cent stake in the project, with the rest being held by the Cidco and the Airports Authority of India.

Now this is News!

The eye-catching architectural style of the late Zaha Hadid continues to make waves across the world.

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Source: Indian Express

Wednesday, 14 March 2018

Real estate sales in India remained strong in last two years: Report

A recent report by JLL India, an international real estate consultancy firm, pointed out that sales for residential properties have remained strong, quarter after quarter. Whilst cumulative new launches across top seven cities of India in the last 2 years (2016 & 17) was recorded at 2,33,387 units, sales of residential units in the same time was recorded at 2,44,830 units indicating that more apartment units were sold.

In the last 8 quarters, the sales velocity has seen a steady upward trend on account of pent-up end user demand that uplifted the market, as soon as a stable trend in the residential capital prices was observed.

Overall unit sales outstripped the number of launched units by 5% in the period of consideration, except second half of 2017 when a large number of new units were launched. These projects launched in the second half of 2017 are witnessing good off take, which will reflect in good sales figures when the Jan- March 18 quarter ends. The fresh supply in residential in latter part of 2017 was largely on account of the lag effects of the RERA implementation, which was adopted by most states during the same period.

The market dynamics of demand and supply periodically outstripping one another, has led to a continued stability in the capital values. Ramesh Nair, CEO and Country head, JLL India, said, said “This is a good time for end users, investors and fence sitters to consider their entry into the residential market, given that prices have been stable for a sustained period.

 With lending rates from banks having significantly reduced since 2015 and at decade low, the situation provides residential buyers a most opportune moment to purchase properties as well as easily service their EMIs.”

The last quarter of 2017 saw a surge in new launches on account of the stabilizing of RERA mechanism across the country. The scale of new launches is also an indication of the confidence that the market has for the future potential demand. It also indicates the strengthening of the transparency, governance and compliance standards aligned to by the developers. Certainly, a good and controlled ecosystem to operate in, both from a developer and buyer perspective.

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Source: DNA India

Thursday, 1 March 2018

Tier 2 And Tier 3 Cities Stage Their Real Estate Comeback In India

After a protracted period where interest for real estate investment was concentrated primarily in the larger cities, we are now seeing a resurgence of the Tier 2/Tier 3 cities story in India.

Many of these cities are seeing increasing economic activity and infrastructure growth, to some extent reducing the outward migration to the metros.

This is a welcome dynamic which will eventually result in a more uniform spread of real estate demand across the country, and reduce the pressure on the larger cities.

What lies beneath
The ticket sizes for residential properties in tier 2 and tier 3 cities and towns start from a significantly lower base, owing to cheaper land prices and also the fact that developers active there are more aligned with affordability.

Buyers tend to be more cost-sensitive as economic drivers in the city may not be on par with those in the larger cities. Also, under the incumbent Government, many of these cities are now seeing significant infrastructure deployment. Quite a few have come under the Smart Cities program, which bodes very well for their real estate markets.

With increasing demand, one can expect prices in these cities and towns to assume a gradual upward trajectory. Price growth will be higher and faster in cities coming under the Smart Cities program.

This would indicate those intending buyers should not delay their purchase decisions indefinitely, since the lower existing base currently provides the ideal entry point, especially for price-sensitive buyers.

Whether a smaller city offers good options for investment depends on what economic drivers are already in place and which are expected in the short-to-mid-term. Definitely, accelerated infrastructure activity in a particular city or town indicates that price growth will be healthy going forward.

Investors need to study each market for its growth prospects, including rental demand and capital appreciation trends as well as expected employment growth. A number of larger players have now expanded into tier 2 and tier 3 cities on the back of increasing demand for quality residential offerings there.

Investors’ approach
Investors will always be driven by investment rationale, as well as their own knowledge and preference of some markets over others. Investors with better capitalization may wish to focus on the larger cities, depending on their risk appetite, while others would be more interested in India’s reviving tier 2/3 story.

Not all tier 2 and tier 3 cities are performing uniformly well, though it is true that supply will generally follow demand. In other words, cities which are performing well economically will attract more migrant population which will need rental housing.

Simultaneously, local home buyer sentiment will also be higher in such a city. Both investors and end-users would have a very decent inventory to choose from, which enables them to fine-tune their final choices according to location, amenities and ticket sizes.

At the end of the day, end-users will purchase homes in their cities of residence – or, in the case, of NRIs, in their cities of origin. Investors obviously have a much larger playing field

Listed below are a few smaller cities where residential property prices are significantly lower than in the top cities. These cities also hold considerable growth potential due to their key growth drivers:

Ahmedabad: Demand drivers– Massive presence of home-grown firms and businesses, favourable business ecosystem. Average residential real estate prices: INR 3,500 – 4,900/sqft
Indore:Demand drivers – Government support, good IT policy leading to the growth of the IT/ITeS industry. Average residential real estate prices: INR 2,500 – 3,800/sqft
Coimbatore: Demand drivers– Significant talent pool, enterprising community. Average residential real estate prices: INR 3,200 – 5,000/sqft
Chandigarh: Demand drivers – High literacy rate, favourable business environment. Average residential real estate prices: INR 5,000 – 7,000/sqft
Jaipur: Demand drivers– A key IT/ITeS destination, a planned city. Average residential real estate prices: INR 3,000 – 4,000/sqft
Kochi:Demand drivers – Good talent pool, favourable business environment, massive NRI investments. Average residential real estate prices: INR 3,500 – 4,800/sqft

Anuj Puri