Latest news with #ShishirBaijal
Gulf Today
2 days ago
- Business
- Gulf Today
India's luxury housing market experiencing a robust growth
India's major eight cities recorded a sale of 170,201 housing units in H1 this year with high-end housing priced above Rs10+ million notching up a robust growth rate of 17 per cent YoY in sales, according to Knight Frank India's periodical survey. New launches at 179,740 units continued to exceed sales during the period, demonstrating developers' continued confidence in long-term demand fundamentals. There is yet another reason for this trend. The uptick in affluence besides India's share of HNIs and UHNIs which is likely to increase from 3 per cent to 9 per cent by 2034. Mumbai remained the largest residential market by volume with sales remaining stable in YoY terms, while NCR (-8 per cent) and Bengaluru (-3 per cent) recorded marginal corrections in sales volumes in H1 2025. Chennai was the only notable exception recording a rise of 12 per cent YoY in H1, 2025. In a significant development, sales in Rs10-20 million rose 8 per cent YoY whereas sales in Rs20-50 million surged 29 per cent YoY in H1. While sales in Rs50-100 million jumped 19 per cent YoY, the trend in sales in the unit price range of Rs 100-200 million rose 128 per cent YoY. To cap it all, luxury housing units in the price range of Rs 200-500 million doubled YoY. NCR-Delhi topped the ultra-luxury housing sales pushing Mumbai to the second slot. Gurugram leads the ultra-luxury segment sales in India. The most noteworthy trend that has prevailed is the premiumisation of the residential segment across the markets. 49 per cent of all home sales were for homes costing Rs 10+ million and above which saw sales of 83,433 units across the key markets, while 51 per cent was in the category of up to Rs 10+ million with sales amounting to 86,768 units in H1 2025. In the housing segment costing less than Rs10 million. Mumbai was the highest contributor with sales of 30,333 units followed by Ahmedabad which recorded sale of 18,083 homes in this price category. 'The residential market in H1 2025 reflected a nuanced shift where premium and luxury segments continued to thrive, even as lower value segments showed signs of continued moderation. Besides, RBI's cumulative 100 bps policy rate cut, and improved liquidity will further help in supporting housing demand, especially at the lower and mid value categories. We expect that these congenial factors along with a positive economic environment will provide longer legs to this market, said Shishir Baijal, CMD, Knight Frank India'. Homes costing less than 50 Lakhs has seen a steady decline in sales. On a pan- India basis, in H1 2025, sales of homes costing up to INR 50 lakh were recorded at 37,796 units, lower by 18 per cent YoY and by 43 per cent since H1 2028. In Bengaluru, this category recorded sales of only 1,583 units indicating a drop of 18 per cent YoY for H1 2025 but when compared to H1 2018, the decline is a significant 85 per cent. The primary challenge for this category has been the declining supply of new homes. H1 2025 saw a total supply of 30,806 units registering a YoY decline of 31 per cent. This is lower than sales by a significant 23 per cent and corroborates the rationale that the dearth of viable supply is a major challenge here. The weighted average prices across the markets saw a rise in H1 2025 both in YoY terms as well as sequentially over preceding 6 months period. Mumbai saw a rise of 8 per cent with the weighted average going up to INR 8,532 per sqft. While NCR (INR 5,535/ sq ft) and Bengaluru (INR 7,052 / Sq ft) both registered a rise of 14 per cent YoY. The Hyderabad market saw a rise of 11 per cent in weighted average prices for the city which was recorded at INR 6,326 / sq ft. These notable rises across the markets have been the result of larger inventory launches in higher value homes in the recent times which has moved the averages northwards. I have been looking at additional investment in real estate. Is current trend of tax benefits favourable for real estate investment? Ashita Aju, Sharjah. Yes. NRIs are eligible for tax benefits on rental income from their properties. They can claim deductions for home loan principal repayments and interest payments. Additionally, the Double Taxation Avoidance Agreement (DTAA) ensures that NRIs do not have to pay tax twice on the same income, making real estate investments more tax-efficient. Tax treaties with specific countries like UAE might offer further benefits. I have invested in real estate in India and planning to mortgage to raise short-term funds. Does it require approval from the authorities? Please clarify. Amit Kak, Sharjah. You can mortgage the commercial property to an authorised dealer/housing finance institution in India without the need to get any approval from the authorities. You can also mortgage to a party abroad but with prior approval of Reserve Bank of India.
Time of India
4 days ago
- Business
- Time of India
India sees growing demand for premium residences with several amenities
India's housing market is undergoing a striking transformation post-pandemic with a growing share of premium residences as homebuyers increasingly gravitate toward larger properties in favourable locations featuring several amenities. Many consumers are looking to upgrade their residences, backed by a buoyant stock market, rising incomes, and affordable loans, experts said. Developers, too, are seeking to capitalise on this trend, focusing more on upscale offerings in prime urban centres, while the supply of affordable dwellings has reduced. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like [Click Here] 2025 Top Trending local enterprise accounting software Esseps Learn More Undo "As Indian demographics embrace a more global outlook, the appetite for niche, luxe living continues to rise. The 100-basis-point policy rate cut over six months have eased borrowing costs considerably, boosting consumer sentiment and liquidity," said Niranjan Hiranandani, chairman, Naredco. He said RBI's rate cut is expected to spur capital expenditure, support first-time homebuyers on tight budgets, and reignite demand for affordable homes in the near term. Live Events Homes priced above ₹1 crore comprised nearly half of all residential deals across top eight cities in the first half of 2025, showed data from Knight Frank India . Of the 170,000 homes sold during this period, over 83,000 were in the high-value bracket. Sales in the ₹20-50 crore segment surged nearly 30% year-on-year, underlining continued strong appetite for luxury housing. "The residential market is reflecting a nuanced shift where premium and luxury segments continued to thrive. Homes priced above ₹1 crore now constitute nearly half of all sales, an indicator of changing buyer priorities and rising aspirations," said Shishir Baijal, CMD, Knight Frank India. "Factors including cumulative 100 bps policy rate cut, improved liquidity, and positive economic environment will provide longer legs to this market including lower and mid value categories." The premiumisation trend is most pronounced in markets like NCR, Bengaluru, and Mumbai that are leading the high-ticket segment by volume. The affordable housing category, homes priced below ₹50 lakh, saw a decline in both sales and supply in the first half of 2025. Sales in this segment fell by 18% on-year, while new launches fell over 30%, indicating a growing gap in the market's most price-sensitive category. The tilt toward premium inventory has also pushed up home prices across the board. Average residential prices rose in all major cities, led by NCR and Bengaluru, where prices rose 14%. Hyderabad saw an 11% rise, while Mumbai, the country's costliest market, saw an 8% increase, reflecting continued demand for premium homes. Industry stakeholders including developers and financiers are of the view that the coming months will make this housing demand a more broad-based activity.
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Business Standard
4 days ago
- Business
- Business Standard
Housing sales dip 2% but office leasing jumps 41% in H1 2025: Knight Frank
India's top eight property markets saw a 2 per cent decline in housing sales during the January-June period, but office space leasing rose 41 per cent, according to Knight Frank. In a webinar on Thursday, real estate consultant Knight Frank released its data for the Indian real estate market for January-June 2025. The data showed that housing sales fell 2 per cent annually to 1,70,201 units during the first six months of this calendar year across eight major cities. In contrast, the leasing of office spaces rose 41 per cent to 48.9 million (489 lakh) square feet area during January-June 2025. The gross leasing stood at a record 71.9 million square feet for the entire 2024. Considering the strong performance during the first half, the consultant expects the leasing number to scale a new high of 80-90 million square feet in the full current year. In the residential segment, the consultant noted that the weighted average price across eight cities rose in a range of 2 per cent to 14 per cent. During the first half of this year, Knight Frank data suggested that 49 per cent of all housing sales were for homes costing ₹1 crore and above, while 51 per cent were in the category of up to ₹1 crore. Among cities, housing sales in Mumbai and Ahmedabad remained flat at 47,035 units and 9,370 units, respectively, during January-June compared to the year-ago period. Housing sales rose in Hyderabad by 3 per cent to 19,048 units. Chennai too saw an increase of 12 per cent in sales to 8,935 units. However, in Delhi-NCR, sales fell 8 per cent to 26,795 units. Housing sales in Bengaluru dipped 3 per cent to 26,599 units, while sales in Pune decreased 1 per cent to 24,329 units. Kolkata saw an 11 per cent fall in sales to 8,090 units during the January-June period. "The residential market in H1 2025 reflected a nuanced shift where premium and luxury segments continued to thrive, even as lower value segments showed signs of continued moderation, Shishir Baijal, Chairman and Managing Director of Knight Frank India, said. On the office market, the consultant highlighted that Bengaluru, Delhi-NCR, Pune and Kolkata achieved record office leasing during the January-June period of this year on strong demand from Indian and foreign companies. The gross leasing in Bengaluru more than doubled to 18.2 million square feet during January-June. In Delhi-NCR, leasing rose 27.5 per cent to 7.2 million square feet. Hyderabad witnessed a 16 per cent growth in office leasing to 5.9 million square feet, while Chennai saw an increase of 68 per cent to 5.1 million square feet. In Mumbai, the leasing of office space fell 5 per cent to 5.5 million square feet. The gross leasing of office space in Pune grew 17 per cent to 5.1 million square feet during the said period. In Kolkata, the absorption of office space rose 60 per cent to 1.1 million square feet. However, the office leasing fell 51 per cent in Ahmedabad to 0.8 million square feet during the January-June period. "This performance is a testament to India's resilient economic fundamentals and its growing prominence as a global business hub," Baijal said. The sustained demand for high-quality office spaces, owing to occupiers' confidence, has propelled transaction volumes to historic highs, he added. "As we move forward, India's strategic appeal and innovative spirit will continue to position it as a global leader in the office market," Baijal said.
Economic Times
4 days ago
- Business
- Economic Times
India's office market hits record high in H1, Mumbai leads rental growth
Live Events (You can now subscribe to our (You can now subscribe to our Economic Times WhatsApp channel India's commercial real estate sector surged ahead in the first half of 2025, driven by occupier confidence, strategic expansions, and a sustained preference for high-quality office large enterprises securing future-ready workspaces and the flex segment gaining traction, the country's office market has cemented its position as a preferred destination for global and domestic occupiers office space leasing across the top eight cities touched a record 48.9 million sq ft during January-June 2025, the highest ever half-yearly volume recorded in the country, showed a Knight Frank India represents a 41% year-on-year increase over H1 2024 led by Global Capability Centres (GCCs), which made up 39% of all transactions, accounting for 19.1 million sq ft.'This performance is a testament to India's resilient economic fundamentals and its growing prominence as a global business hub. The sustained demand for high quality office spaces owing to occupiers' confidence, has propelled transaction volumes to historic highs. As we move forward, India's strategic appeal and innovative spirit will continue to position it as a global leader in the office market,' said Shishir Baijal, CMD, Knight Frank emerged as the top-performing market, with its office absorption hitting a historic high of 18.2 million sq ft, or 37% of total India volumes. The city's demand was heavily influenced by GCCs, contributing 55% of the leasing activity, and 46% of the space transacted came through pre-commitments, indicating a lack of ready-to-move inventory.'India's office market has not only sustained the breakout momentum of 2024 but accelerated beyond it in H1 2025. Despite global disruptions, India stands out as a resilient, pro-business destination for capital. With the continued expansion of GCCs and a resurgence in Third Party IT Services, the office market is benefiting from strong structural tailwinds,' said Viral Desai, Senior ED, Occupier Strategy & Solutions, Industrial & Logistics, Capital Markets and Retail Agency, Knight Frank to him, barring limited supply-side constraints, the market remains firmly on track for sustained growth through the rest of the markets including NCR, Pune, and Kolkata also registered record half-yearly volumes, with Kolkata crossing 1 million sq ft for the first time ever. Mumbai and Ahmedabad witnessed a decline in activity, attributed primarily to a high base in the prior period rather than a as demand remained strong, new completions stood at 20.1 million sq ft, a 20% on-year decline, pointing to a lag in supply additions. Consequently, the vacancy rate fell to 14.7%, further tightening availability in prime values firmed up across all eight cities. Mumbai led the growth with a 12% year-on-year increase, followed by 8% in NCR and 7% in Bengaluru. This rental push was driven by limited supply in core locations and continued demand from large from GCCs, third-party IT service providers saw a sharp uptick in activity, leasing 10.9 million sq ft, or 22% of total volume. Flex space operators recorded their highest ever leasing at 10.2 million sq ft, up 43% YoY, with co-working formats alone contributing 76% of this segment's take-up.
Time of India
4 days ago
- Business
- Time of India
India's office market hits record high in H1, Mumbai leads rental growth
Live Events (You can now subscribe to our (You can now subscribe to our Economic Times WhatsApp channel India's commercial real estate sector surged ahead in the first half of 2025, driven by occupier confidence, strategic expansions, and a sustained preference for high-quality office large enterprises securing future-ready workspaces and the flex segment gaining traction, the country's office market has cemented its position as a preferred destination for global and domestic occupiers office space leasing across the top eight cities touched a record 48.9 million sq ft during January-June 2025, the highest ever half-yearly volume recorded in the country, showed a Knight Frank India represents a 41% year-on-year increase over H1 2024 led by Global Capability Centres (GCCs), which made up 39% of all transactions, accounting for 19.1 million sq ft.'This performance is a testament to India's resilient economic fundamentals and its growing prominence as a global business hub. The sustained demand for high quality office spaces owing to occupiers' confidence, has propelled transaction volumes to historic highs. As we move forward, India's strategic appeal and innovative spirit will continue to position it as a global leader in the office market,' said Shishir Baijal, CMD, Knight Frank emerged as the top-performing market, with its office absorption hitting a historic high of 18.2 million sq ft, or 37% of total India volumes. The city's demand was heavily influenced by GCCs, contributing 55% of the leasing activity, and 46% of the space transacted came through pre-commitments, indicating a lack of ready-to-move inventory.'India's office market has not only sustained the breakout momentum of 2024 but accelerated beyond it in H1 2025. Despite global disruptions, India stands out as a resilient, pro-business destination for capital. With the continued expansion of GCCs and a resurgence in Third Party IT Services, the office market is benefiting from strong structural tailwinds,' said Viral Desai, Senior ED, Occupier Strategy & Solutions, Industrial & Logistics, Capital Markets and Retail Agency, Knight Frank to him, barring limited supply-side constraints, the market remains firmly on track for sustained growth through the rest of the markets including NCR, Pune, and Kolkata also registered record half-yearly volumes, with Kolkata crossing 1 million sq ft for the first time ever. Mumbai and Ahmedabad witnessed a decline in activity, attributed primarily to a high base in the prior period rather than a as demand remained strong, new completions stood at 20.1 million sq ft, a 20% on-year decline, pointing to a lag in supply additions. Consequently, the vacancy rate fell to 14.7%, further tightening availability in prime values firmed up across all eight cities. Mumbai led the growth with a 12% year-on-year increase, followed by 8% in NCR and 7% in Bengaluru. This rental push was driven by limited supply in core locations and continued demand from large from GCCs, third-party IT service providers saw a sharp uptick in activity, leasing 10.9 million sq ft, or 22% of total volume. Flex space operators recorded their highest ever leasing at 10.2 million sq ft, up 43% YoY, with co-working formats alone contributing 76% of this segment's take-up.
