Real estate market in Delhi NCR up 22% in 2013

By: Karshni on 00:16

Stating that IT/ITeS remained the major occupiers contributing 50% of the total absorption, commercial space absorption in Delhi NCR witnessed 22% rise in 2013 as compared to 2012, according to a report by Colliers International.

The study reveals that 26% of the total absorption of more than 31 million sq ft across top 6 cities was contributed by NCR. 

'Engineering and BFSI, together account for 25% of the total absorption. Of the 8.31 million sq ft commercial lease in Delhi NCR, 70% of the space was leased in Gurgaon, 23% in Noida and the remaining 7% in Delhi.

Gurgaon is expected to witness further segmentation of micro-markets in cost terms in 2014.

''Gurgaon is expected to witness a lot of lease renewals in 2014 and 2015, as companies that set up offices in 2004 to 06 (the “first wave” of occupiers) approach the end of their lease terms,'' report states.

However, as in 2013, sales volume and sale market of commercial space in Delhi will remain low and stressed.

There was a marginal 3% Year-on-Year decrease in rentals in Delhi. Average rental values in Delhi NCR will remain stable and vacancy rate will fall marginally.

''Gurgaon and Noida witnessed stable rental values during 2013 baring few micro markets such as Cyber city in Gurgaon and sector 18 in Noida which witnessed an increase of 7% and 2.5% respectively, on year on year basis,'' report adds.

http://www.financialexpress.com/news/real-estate-market-in-delhi-ncr-up-22-in-2013/1221597

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Global real estate to get uniform international measurement standards soon

By: Karshni on 22:46

The International Property Measurement Standards Coalition (IPMSC) has launched a public consultation on the International Property Measurement Standard (IPMS) for office buildings. 

The three month consultation, closing on 04 April 2014, is calling for real estate (office) sector practitioners and stakeholders to contribute to the new international standard. 

The new standard, produced by the IPMSC Standards Setting Committee, is the first of its kind and will provide a common language for measuring offices across international markets, benefiting real estate practitioners including investors, lenders, agents, valuers and occupiers. 

The international standard will ensure that property assets are measured in a consistent way, creating a more transparent marketplace, greater public trust, consistency in the reporting of property size, stronger investor confidence, and increased market stability. 

At present, the way property assets - such as homes, office buildings or shopping centres - are measured varies dramatically from one market to the next. With so many different methods of measurement in use, it makes it difficult for global investors, occupiers and tenants to accurately compare space. Research by global property firm Jones Lang LaSalle suggests that, depending on the method used, a property's floor area measurement can deviate by as much as 24%. 

IPMS will be adopted by all 28 coalition organizations with firms around the world already lined up to implement IPMS from June 2014. The Dubai Government are the first government to commit to its adoption, which will underpin valuations of commercial property and financial reporting through IVS* and IFRS**. The new standard is considered one of the most significant developments in the real estate profession in recent history and will go beyond office measurement standardization to include other property types, such as residential, in the coming months. 

Strengthening public accountability of the IPMSC, the coalition can now announce the appointment of a Board of Trustees. Members from each of the 28 organisations are represented on the board, chaired by Ken Creighton (RICS), with Vice Chair Lisa Prats (BOMA International) and Secretary General, Jean-Yves Pirlot (CLGE). 

The coalition also confirms new IPMS members joining the coalition. Property Council of New Zealand (PCNZ); Asian Non-listed Real Estate Vehicles (ANREV), Assoimmobiliare, National Society of Professional Surveyors (NSPS) and Japan Association of Real Estate Agents (JAREA) have committed to the standards programme. 

Ken Creighton, Chair of the IPMSC Board of Trustees and RICS Director of Professional Standards: Less than a year after the coalition met for the first time at the World Bank in Washington we now have an international standard. This standard will undoubtedly have a profound and lasting benefit for the global real estate industry, financial markets and society as a whole, ensuring transparency and consistency are at the very heart of this global industry. 

Sachin Sandhir, Managing Director, RICS South Asia: Commercial real estate involves high ticket size transactions. The economic problems in the past have affected the growth of commercial markets around the world. Moreover, the ambiguity within measurement practices across the sector often leads to inconsistent values. The standards thus framed after due consultation will not only help in bringing consistency within the market but will also create a more transparent marketplace and increase stability. In the long term these standards will instill greater investor confidence and revive sentiment in the commercial real estate. 

Billy Davidson, Vodafone Global Property Director: Vodafone occupies space for a wide range of uses all around the world. Like many other corporates we have had to develop our own means of benchmarking these property assets. I am certain that IPMS will save corporate occupiers time, money and effort across their property portfolios, and will enable us to compare space between companies far more easily than today. 

Martin Bruehl, Union Investment, Head of International Investment Management:The usable space within a building is a vital metric in understanding the valuation and thus investment potential of a property. Investors currently suffer from having to make decisions based on information which is inconsistent from one market to the next. IPMS will address this existing problem; removing risk and ensuring property investors are armed with reliable and transparent information.  

http://timesofindia.indiatimes.com/business/india-business/Global-real-estate-to-get-uniform-international-measurement-standards-soon/articleshow/29147953.cms

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Bangalore untouched by property market gloom

By: Karshni on 10:11

While home builders and buyers in Mumbai and NCR were a worried lot, folks in Bangalore had cause to cheer.

Bangalore’s property market bucked the trend in other metros with many new launches, good demand and resilient prices.

Sector experts predict that residential property the city will remain a good bet for 2014, too.

Still-affordable prices compared to other cities, strong IT sector performance which should keep demand going, and interest from expats on a weak rupee, are seen as boosters to this market.

The city’s office space sales could be the highest in the country too, thanks to expansion plans of IT-ITeS firms and MNCs.

Bangalore will be second only to Tokyo in the Asia-Pacific region in demand for offices, estimates property consultant Cushman & Wakefield. This will help drive home demand, too. Every 100-200 sq ft office space addition means one employee added to the workforce.

Active home market

In 2013, Bangalore accounted for a third of all new property launches in the country, according to data from Cushman & Wakefield.

New units launched trebled to 40,000 units till September 2013. Most residential launches were in the price range of Rs 25 lakh to Rs 1 crore, according to Vestian, a real estate advisory firm.

Compared to the growing numbers of flats remaining unsold in markets such as Mumbai, Bangalore even saw a shortage of homes with a Rs 50 lakh to Rs 1 crore price tag.

The commercial segment, which was in the doldrums elsewhere in the country, was also resilient in Bangalore. Global majors such as LinkedIn started operations in the city, and local companies sought office space to expand. The city is home to around 2,800 IT/ITes firms and accounts for about 60 per cent of all biotech companies in India.

Unlike other regions, there was good momentum in infrastructure projects with the peripheral ring road, airport expansion and Bellary elevated expressway taking off, aiding home prices.

Development initiatives such as the Devanahalli Business Park, Hardware and IT Park in Bagalur and IT Investment Region near Chikkaballapur are expected to help demand in nearby areas.

Still, not all localities in the tech city may have a smooth ride. While north Bangalore outshone most other areas last year, the focus is now shifting back to the central business district and the outer ring road, observes CommonFloor, a real estate portal.

Prices have run up in the locality and may likely remain subdued this year.

Super-luxury homes 

With a high net-worth individuals population of about 10,000 — the third highest in the country after Delhi and Mumbai — Bangalore’s super-luxury segment is also worth watching.

While the supply has picked up, a lacklustre private equity, venture capital and M&A market, may act as a drag on demand, notes Vishnu Shankar of Crorepati Homes.

http://www.thehindubusinessline.com/industry-and-economy/real-estate/bangalore-untouched-by-property-market-gloom/article5574290.ece

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