This Real Estate CEO Told us Which Specific Part of India’s Property Market is Going to ‘Take a Beating’

India’s growing middle class and burgeoning retail and commercial sectors, coupled with the dearth of properties, make the country’s real estate market a potentially lucrative place to invest.

However, there is one part of the real estate market that is set to implode – luxury and premium properties.

That’s what Anuj Puri, Chairman & Country Head, of JLL India (formerly Jones Lang LaSalle) told Business Insider on the sidelines of the World Economic Forum in Davos, Switzerland.

“Mostly all sectors of India’s real estate market are good for investors apart from one – luxury and premium properties. A lot of developers got it wrong and didn’t realise that we don’t have many millionaires and billionaires in India so the luxury and premium market is going to take a beating. There’s too much supply and too little demand,” said Puri.

“But what we do have is a growing middle class and at the moment, as latest data from March 2015, it shows there is a 18.3 million dwelling unit shortfall. Affordable housing is very lucrative. When I say ‘affordable housing’ I am talking about the $75,000 to $100,000 range. There is huge demand.”

JLL and its country head for India, Puri, are pretty perfectly placed to make the call on where the Indian property market is going. After all, JLL is one of the world’s leading and largest real estate and investment management companies with $6.2 billion in market capitalisation. Puri also oversees a team of over 8000+ employees across 11 cities in India.

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High-rise residential towers under construction are pictured behind an old residential building in central Mumbai.

Puri says that affordable housing isn’t the only potentially lucrative area for property investment – retail, warehouses and commercial real estate are all areas that are seeing demand growth.

“Retail properties are also a great opportunity for investors as people have better buying power,” said Puri.

“There is also a lot of opportunity, which not a lot of people have identified yet, in warehouse and logistics. In India, most of these compaies are non-sophisticated and ‘mom and pop’ shops and it doesn’t seem very sexy for an investor but it could be a great area for expansion if the ‘Indirect Tax Bill‘ gets through parliament.”

Indirect Tax is when the Indian government collects take from an intermediary such as a manufacturer or retailer. It’s pretty complicated but the current government led by Narendra Modi is trying to get this changed and more streamlined by introducing a uniformed Goods and Services Tax (GST) bill.

And Puri thinks this could be the key to opening the market up more to foreign investment and “trust” for companies looking to bring business to India.

“Hopefully the bill (which unifies tax rates) will go through. At the moment, India has 29 states with 29 taxes,” he said.

“As a company like Proctor and Gamble for instance, you aren’t going to set up units or warehouses in different parts of India and worry about what taxes they have to pay in each different state. It makes it too difficult for people to do business.”


Phone Companies Shed Surplus Real Estate by skyline construction bangalore

Old-school telephone companies are wrestling with a dilemma their younger rivals would love to have: what to do with all that real estate.

Buildings accumulated over decades, from windowless and fortresslike switching centers built to handle landline gear to modern warehouses filled with web servers, are up for sale after their telecom owners decided to focus on wireless services.


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Some spaces “were purpose-built to be telephone buildings,” said John Vazquez, head of global real estate at Verizon Communications Inc. “They were never intended to be anything else.” In addition to unloading older facilities, Verizon is considering placing its newer data center businesses on the block.

Mr. Vazquez’s department is taking different approaches to the 114 million square feet of office and equipment space it oversees. Older telephone buildings, which often occupy prime real estate in the Northeast, often go to condominium developers. Newer data center buildings designed for computers, not telephones, are being shopped to prospective telecom and private equity investors.

3 Ways That The Blockchain Will Change The Real Estate Market

Experts have suggested a number of niche industries that will be made more secure by the untamperable data record provided by blockchain technology — including international art dealing, pharmaceuticals and international trade of high-value goods — but to date, very little attention has been given to the potential effects on the real estate market.

According to HomeInsight, the typical homeowner sells his or her home every five-seven years, and the average individual will move 11.7 times during his or her lifetime. While most normal Americans will not note the differences of the changes to the international art trade, the changes within the real estate market directly affect millions of people every year.

Buying a home is the biggest investment that most people will make in their lifetimes, yet, to date, there have been few technological advances to expedite the process and make it more secure for buyers, lenders and homeowners alike. This article will look at three ways that blockchain could disrupt the real estate market: by speeding up the system, providing more transparency and offering safer investments to everyone involved.


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Expediting the process

After a period of “slow” sales in 2014, house prices have risen to the extent that in fall 2015, some experts warned the housing market was entering a bubble far worse than seen in the run-up to the Great Recession. Demand for houses is higher than ever, and with less new constructions being built, prices for existing properties are shooting up. Despite slight sales hiccups in August 2015, experts predict that prices are going to keep on rising.

With a shortage of existing houses for sale, and the jury still out about whether the U.S. real estate market is in a bubble, buyers and sellers alike want to finalize deals and get papers signed as quickly as possible. However, the traditional real estate market is not known for being quick and easy. Real estate transactions have always been cumbersome and complicated.

Government bodies around the country slow down the system by placing additional restrictions or costs on the transaction or transfer of real estate. Point of sale mandates, including utility and whole home inspections, and a range of sales restrictions, can cause a house sale to slow to a snail’s pace even though both parties are keen to seal the deal.

While the blockchain can do little to influence local legislators’ sales restrictions, it will have a great impact on the financial verification element of the sales process itself. At current, most buyers and sellers make use of escrow and title companies for third-party verification — a safety net to make sure both parties keep their end of the deal, as well as to reduce the risk of fraud.

While undoubtedly important, this third-party verification comes at a cost — normally 1-2 percent of the total value of the property — and adds extra time to the process. With blockchain, the middleman (in this case the escrow company) could effectively be cut out. By using a blockchain distributed database to prove authenticity, homeowners could legitimately transfer ownership immediately without the need to pay for third-party verification.

Investors Turn Pessimistic on Commercial Real Estate

Monthly rentals and capital value expectations in commercial real estate in India rose in September quarter, albeit, at a pace lower than expected before, according to the Royal Institute of Chartered Surveyors (RICS), the UK-based qualifications and standards body for land, property and construction.

The Indian commercial property monitor also indicated that more number of respondents – investors and tenants – in the previous quarter felt that market valuation of the commercial properties were expensive compared to the quarter before.


In contrast, the percentage of those who had previously felt that office spaces were fairly priced dipped in the third quarter ended September 30 compared with the earlier quarter.

In terms of the property price cycle of the commercial segment in the real estate sector, a large percentage – 38.3% – feel that it was in stabilisation phase. The percentage, which believed it was in an early uptrend, was also high at 27.2%. An almost equal percentage of 24.7% felt the commercial property segment was in mid-downturn. Only 6.2% felt it was in mid-upturn and a small 1.2% felt it had peaked.

Devina Ghildial, managing director, South Asia, RICS, said the Indian commercial property market was on the upswing as demand was outstripping supply but growth in rentals was modest compared with earlier expectations.

“There is a dearth of available supply of grade A office or commercial spaces across major cities in India. Many new MNCs are looking to come into the country while existing large corporates are also ramping up their operations at a solid pace, but supply of grade A office space is not able to match up to this demand, leading to healthy appreciation,” she said.

According to the report, there was a spurt in the demand for commercial property in the sector as auto, banking financial services and insurance (BFSI), telecom, fast moving consumer goods (FMCG), consumer durables, IT and e-commerce start-ups in the national capital region (NCR), Bangalore and Mumbai, which remained upbeat with closures of several large-sized transactions during the quarter.

Ashutosh Limaye, head – research & real estate intelligence service, JLL India, said commercial properties in India were most affordable when compared to other global markets with rentals having bottomed out and making its way up.

He said the rise in rental was “gentle” but the direction was definitely up.

“The rentals in the commercial segment of real estate is currently fair and competitive as it is still below the previous peak (in 2008),” said Limaye.

According to him, Bangalore was the only market that had reached its peak of 2008 while most others remained more than 10% below it.

Limaye said Chennai was 2% below its peak, Pune 10% while the rest were over 10% lower than their peak.

He said Mumbai and Delhi had reached a high of Rs400 per square feet (sq ft) per month in 2008.

“Today, Nariman Point is 30% below that (2008 commercial property rentals) while suburbs like Andheri, Kurla and others were 20% lower,” he said.

J C Sharma, managing director of Sobha Developers, said India offered arbitrage in two things – wages and salaries and office rentals. He said MNCs came to India because of these two arbitrages available to them to be competitive in the global market.

“If you, exclude markets like Mumbai, Bandra Kurla Complex (BKC) and Delhi, 90-95% of the transactions in the Indian commercial property sector were less than $1 per sq ft, which is very cheap compared to markets in other emerging markets and some of the Southeast Asian countries like Malaysia, Bangkok, Jakarta, etc,” he said.

Sharma said high absorption rate in the commercial sector over the past few quarters in markets like Chennai, Kochi and others had resulted in better realisation in rentals.

Chinese Real Estate Developers Eye Opportunities in India to Float JVs for Big Projects

Chinese Real Estate Developers Eye Opportunities in India to Float JVs 

MUMBAI: After global private equity and sovereign funds, now Chinese developers are eyeing investment opportunities in India’s property sector.A team from international property consultancy JLL is holding exploratory talks with Indian developers to seek investment opportunities for their Chinese clients. The Chinese developers are looking to forge strategic partnership and enter into joint ventures with Indian builders to invest in large scale residential projects.

China’s outbound investment directly into global real estate has risen 50% to $15.6 billion since January this year with New York, London and Sydney becoming the leading investment destinations.As a first major investment by a Chinese company, one of the largest developers Dalian Wanda Group has announced its intention to invest $10 billion in India in the next 10 years to construct industrial townships and retail properties.


“Major attraction for this investment is growth. Next 10 years of growth cycle in Indian real estate will be similar to what China had experienced in the past 10 years,” said Alistair Meadows, head International Capital Group (Asia Pacific) JLL, Singapore.

Apart from expectations of attractive returns, slower real estate market in China itself is also prompting Chinese developers to look elsewhere, including India. “We can expect at least $3-4 billion investment inflow from China into the Indian property market over the next 3 years,” said Shobhit Agarwal, MD, Capital Markets & International Director, JLL India.During his visit to Beijing in May, Prime Minister Narendra Modi had pitched for Chinese investment into India to help bridge a widening trade gap. According media reports, his visit had witnessed deals worth $22 billion being signed.

“Indian developers are achieving returns more than most mature markets the world over are fetching,” said Darren Xia, Head -International Capital Group, JLL China, while explaining Chinese developers’ interest in the Indian property market. “A number of Chinese developers have been studying the Indian market since the past 12 months.”

Meadows and Xia, who have been holding talks with Indian players for striking an alliance with Chinese builders, expect Chinese insurance companies to start investing here. According to an estimate by JLL, Chinese insurance groups could allocate up to $240 billion to real estate outside of China, based on current metrics over a longterm period.

Continued loosening of outbound investment regulations since 2012 is driving China’s insurance groups to actively seek real estate assets in gateway cities around the world. These funds are keen to take advantage of the asset class’s income-producing characteristics, its relatively low risk, and the benefits of a diversified portfolio.

Investments from China-based builders are expected in big-ticket projects in key property markets of India. “While investing, scale will be crucial for Chinese developers as they are familiar with the large scale development. To begin with, investments are expected in Mumbai, Delhi and even Kolkata. Most of what they (Chinese developers) will do will be opportunity led,” Meadows added.

Regular For Driving Development Organizations is Capability by skyline construction

Regular For Driving Development Organizations is Capability:-

You can see this wonder in rising worldwide problem areas. Development inside of these spots compared greater with better. Development organizations keep on building towering inns, high as can ascend, and mammoth shopping edifices. These foundations are all respected the place’s symbols riches and also stature inside of the International economy. These structures in like manner serve as business, relaxation, and private venues for its visitors, travelers, inhabitants and the expat populace.


One of the qualities of a trustworthy and incredible development organization is its dedication to natural wellbeing. The most dependable development agencies execute unbending wellbeing and security measures as far as transportation, stockpiling, treatment, gathering, and an additional transfer of perilous squanders. They guarantee that administration procedures are as per all the neighborhood regulations, and worldwide benchmarks end with a particular objective. Besides, verify that their undertaking will represent no destructive effect on their representatives, the future building inhabitants, the overall population, the group, and additionally the earth.

Another regular for driving development organizations is capability and superb client support. Driving development firms nowadays ensure that their methodologies with their undertakings are inside of its custom. It would further imply that occasion the most common structures are the inherent agreement with the most noteworthy principles, from the idea to the materials and gear used, to the whole development procedure.

Real Estate Company Skyline Constructions

Real Estate Company:-

Skyline Constructions is a land organization best known for its different private developments in the South Indian city of Bangalore. The bunch’s birthplaces can be followed back to more than a hundred years, having at first begun off as a family-run undertaking with interests in espresso ranches. From that point forward, Skyline has figured out how to achieve the exceptionally top of the property improvement industry through a mix of reliable hard working attitudes, straightforward business rehearses and persistent advancement. Perceived by CREDAI-Karnataka, Skyline has figured out how to end up a standout amongst the most presumed and trusted manufacturers in the city.


A deliberately amassed group of modelers and architects power Skyline to fabulousness in different private undertakings. With ventures, for example, Skyline Olympia, Skyline Solstice, and Skyline Ambrosia effectively finished and massive spending plan offerings including Skyline Boulevard and Skyline Dynasty in the offing. It is anything but difficult to see why clients, both existing and proposed, have such confidence in the Skyline brand.


Horizon has as of late gone into the business property advancement field and will probably be hoping to convey its prosperity over from the lodging undertaking industry into this new pursuit. The firm intends to develop business edifices on the edges of Bangalore at places that incorporate Whitefield, Kanakapura Road, and Bannerghatta Road.

Toward the day’s end, it is basic to be reliably superb if one is to succeed in an exceedingly aggressive business sector like the Bangalore land industry. Horizon’s thriving image quality is abundant verification of the dedication the organization shows to conveying results that experience the grandiose principles it sets for itself. Development arranges in other national markets like Mangalore and, also, universal markets, for example, Dubai are in progress, and the organization looks ready to develop from quality to quality within a reasonable time-frame.