Friends, I thought I should share this article from Business Standard. What's your take on this? Do you have more to add to the list.

I hope our real estate agent friends in the forum will have something to add on based on their experience.
:)

The real estate boom has been with us for a few years now. Apartment blocks that meet every lifestyle aspiration, multi-million square feet commercial and retail complexes, malls, roads, SEZs and other large infrastructure projects over the last couple of years, these have become par for the course.

So what, if any, are the new trends in Indian real estate?

Going green :D

Green is in, in a big way. According to estimates by the CII-Sohrabjee Godrej Green Building Centre, as much as 22 million sq ft of green building space is at the planning or construction stage right now just four years ago, there was only 20,000 sq ft.

Earlier this year, the Indian Green Building Council came up with a localised version of the ratings system, Leadership in Energy and Environment Design, Leed-India, while Teri announced its more indigenous product, Teri-Griha.

But what's more heartening, says Bimal Patel, Ahmedabad-based architect, is that mainstream developers now want designs that are more in keeping with the Indian context, not copies of something they saw and liked abroad. 'Even a few years ago, that wouldn't have happened. It's a very heartening thing.'

Bigger the better
;)

The other trend is towards the big and bigger, especially in the retail sector. Take The Great India Place in Noida, Unitech's 15 lakh sq ft 'shoppertainment' destination which opened earlier this year.

Just across the road is coming up DLF's Town Square, another humungous 15 lakh sq ft mall. Gurgaon, of course, has been the mall capital of India but now they've just got brasher and bigger. Ambi Mall (18 lakh sq ft) opened earlier this year, and Mall of India, DLF's 39 lakh sq ft monstrosity along National Highway 8, is due to open in a year and a half.

'This is the season for large malls,' says Rahul Saraf who built Forum, Kolkata's first mall (rather small at just 2 lakh sq ft) and is now engaged with the 9 lakh sq ft Forum II mall on the EM Bypass.

'As the mall culture matures, consumers will look for everything under a single roof.' But not all builders are looking to pander to the small (albeit growing fast) section of middle and upper-middle class Indians some have realised that there is gold to be made at the bottom of the pyramid.

Low-cost housing :)

A new trend in the residential sector, a trend that is still in the making but could come to a head in the next few years, is that of low-cost housing.

Shapoorji Pallonji launched a mass housing project, SP Shukhobrishti, in New Town, Kolkata, earlier this year, which will have 12,000 one-bedroon flats and 8,000 two-bedroom flats priced at around Rs 2.85 lakh and Rs 5.70 lakh.

A private equity fund, Red Fort Capital Advisors, has lined up Rs 800 crore for investing in low-cost housing in Delhi, Mumbai, Chennai and Bangalore. Cross subsidy, public-private partnership and the use of innovative construction techniques are some of the ways these companies are meeting the huge demand.

Through the looking glass

Some things don't change the fascination with glass, for example. Three out of four offices will still have facades of glass. You only have to go to Gurgaon to check out how glass, for Indian architects and designers, has come to represent upward mobility.
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  • actually felt more upside for properties in the major cities as many investors with cashflow will invest properties in the longer term

    :) :) :)
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  • Re:What rules Indian real estate?

    Very nice post Bingo.I would like to add few of my points too on the same ground.The spectacular growth of the Indian economy has begun to rub off on real estate as well, and the year 2006 was a case in point.The Indian government announced liberalised guidelines early 2005, allowing FDI up to 100 per cent through the automatic route in townships, housing, built-up infrastructure and construction development projects.

    This will include but will not be restricted to housing, commercial premises, hotels, resorts, hospitals, educational institutions, recreational facilities, city and regional level infrastructure.

    On the residential development front, the last two years have seen hectic activity in the major metros, with most big developers offering quality homes within large townships and residential developments. The year also saw the consolidation of the apartment culture in tier II cities, and its introduction in tier III towns.

    Office space rentals too are skyrocketing, having gone up anywhere between 50-100 per cent in central business district (CBD). While the demand for quality space will continue unabated,quite a few markets will see a significant supply buildup in the coming year, so a rental value correction is in the offing. With foreign funding and new players, there will surely be a redefinition of quality freedom as well.
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  • Change in business trend in real estate had led the investors towards invest more in commercial than residential projects.
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