Attributed to said Dr. Samantak Das, chief economist

 Attributed to said Dr. Samantak Das, chief economist
and head research and REIS, India, JLL

Uncertainty, resilience, and growth prompt status quo of policy rate

The unexpected global headwinds propelled by the new Covid-19 variant to the economic recovery prompted Reserve Bank of India to maintain the policy rates. RBI has kept the policy rate unchanged for the ninth time as it has been trying to support growth and rein inflation. Indian economy grew better than expected by posting 8.4% growth during Q2 FY22 indicating the strength of the economy. 

The accommodative stance and gradual normalisation measures also signal that economy is on the firm path of growth. Indian economy has demonstrated its resilience to uncertainty in the past and it is expected deal with it more prudently in future.

The growth registered by the real estate sector in Q3 2021 is likely to continue and to end this year on a positive note. In Q3 2021, residential sales witnessed an upward trajectory, increasing by 65% on a sequential basis. This sector is expected to benefit from a regime of low mortgage rate, coupled with duty waivers, realistic property pricing and attractive offers leading to affordable synergy.

India Colocation Data Centre industry to double to

 India Colocation Data Centre industry to double to 1008 MW by 2023: JLL

 The colocation data centre (DC) industry stood at 499 megawatts (MW) at the end of H12021

• Draft data protection bill and various Central and State Government policies to propel Indian data centre industry growth
• Personal Data Protection Bill to set the foundation for Indian colocation data centres

 Note: GW* and MW*- indicates IT design power load, Colocation refers to third party data centres

India’s colocation data centre (DC) industry is expected to double by 2023, according to JLL. The global real estate firm expects capacity to increase from 499 megawatts (MW) IT load in H1 2021 to 1008 MW by 2023. This, in turn, would lead to a requirement of over five million sq. ft of real estate, as per JLL research.

Mumbai and Chennai are expected to be leading DC hubs due to assured power supply, undersea cable landings and large user markets. One of the biggest enablers for the growth will also be the approval of the draft Personal Data Protection Bill (PDP) by the joint Parliamentary Committee, which JLL believes will represent a major milestone for India’s colocation DC industry, which largely provides IT infrastructure for storage and computing requirements.

“The importance of information in form of data has gained prominence over the years with the entire digital revolution being driven by the usage of data. The colocation industry is expected to benefit from the legislation due to the prerequisite for data storage in the country. The potential of the industry is evident from the fact that three central legislations and four states have enacted data centre sector policies while four more states are in the process of notifying their policies,” said Rachit Mohan, Head, Data Center Advisory – India, Co-Head, Office Leasing Advisory – Mumbai, JLL

The Central Government has outlined the importance of the sector by formulating a Data Centre Park Policy and the creation of four Data Centre Economic Zones that aims to make India the global DC hub.  The draft policy aims to accord “infrastructure” status to the sector bringing in the benefits of availing long-term credit from domestic and international lenders.

“The increasing digital economy has also necessitated regulations to protect the right of Indian users by storing the details of the digital transaction locally. The Reserve Bank of India has issued a directive imposing data localisation requirements on service providers/intermediaries / third-party vendors and other entities in the payment ecosystem. The financial regulator has issued various directives for financial intermediaries to comply with the localisation provisions. The local storage of digital transactions has already led to an increase in demand for data centres from the BFSI sector,” said Dr Samantak Das, Chief Economist and Head of Research & REIS (India), JLL.

Various states have realised the potential of the industry and have created special provisions for the industry. Maharashtra, Uttar Pradesh, Telangana, and Orissa have dedicated DC policy while West Bengal, Tamilnadu, Karnataka and Haryana have notified DC Regulations.

Maharashtra was one of the first states to include Data Centers in their Industrial Policy. The State announced integrated Data Centre Policy in 2019. As per the policy, five integrated DC parks would be eligible for financial incentives and duty waivers with minimum investment of INR.1500 crores by the developer company.

Telangana took an early lead when it announced significant initiatives in the Information and Communication Technology policy nearly five years back in 2016. Despite the lack of cable landing stations, the state has provided other incentives like land availability and power at lower cost along with other tax waivers for DC operators.

Uttar Pradesh which has been successful in establishing Noida as the growing commercial and industrial hub introduced the DC policy in 2021 intending to set up 250 MW Data Centre industry. The policy has provided subsidies on land procurement, capital and interest rates and non-financial incentives. The state of Odisha has also provided incentives in form of land fees and electricity subsidy and other financial incentives.

The importance of the DCs as the backbone for digital growth has led to other states drafting policies to attract DC players. West Bengal, Tamilnadu, Karnataka and Haryana have announced their draft policies and are expected to be notified into regulations. India being the second largest mobile user population globally, lower data usage cost and fast-growing digital market augur well for the development of the industry.

Institutional real estate investment in India up

 Institutional real estate investment in India up 17% YoY in Q3: JLL

 USD 721 million of institutional investments recorded in the third quarter

• Residential market leads the total investment with 29%
• Mumbai leads the investment pie at 39% 

Institutional investment[1] posted 17% Year-on-Year (YoY) growth during Q3 2021 (July-September) as investors continued to conduct deals despite the resurgence led uncertainty and disruptions, according to JLL’s ‘Capital Markets Update Q3 2021’ released today. However, as compared to Q2 2021, volumes registered during the quarter are lower by 47% on a sequential basis. The recovery in investments during the first nine months of 2021 has been better than the pandemic year as total deals of USD 2,977 million were recorded as against USD 1,534 million during the previous period.

The muted growth in transactions is likely due to delays in the deal process influenced by travel restrictions. However, some funds with long term horizons have upped their risk appetite by investing in opportunistic asset portfolios. Listed REITs continued to raise low-cost debt and use the proceeds to acquire assets at attractive valuations.

Across India, investors are expected to take a cue from improvement in operational metrics of various asset classes as commercial office space witnessed 8% YoY growth in net absorption at 5.85 million sq. ft in Q3 2021, while residential sales grew by 65% on a sequential quarter basis registering sales of more than 32,000 units.

17% Y-o-Y growth in investments during Q3 2021 

“Close analysts of investments during Q3 2021 reveals that it has been more balanced with the residential sector accounting for 29% of the total investments, followed by alternative sector - Data Centre (DC) accounting for 22% share. The mixed-use project of residential and commercial accounted for 19% of the total investments. Investments during the quarter have been broad-based as compared to investments in only two sectors during Q3 2020,” said Lata Pillai, Managing Director and Head, Capital Markets, India, JLL

“The Reserve Bank of India (RBI) - India's central bank has kept the policy rates unchanged despite inflation concerns as sustained nurturing of economic growth remains a priority. It has maintained its GDP growth forecast at 9.5% for the financial year 2021-22, expecting strong economic growth in coming quarters,” she added

The residential sector has seen a robust sales growth of 47% during the first nine months of 2021 over the same period of 2020. The third quarter proved that pandemic resurgence had a limited impact as sales grew by 65% on a sequential basis.

“The cautious unlocking of the economy, increased pace of vaccination and affordability synergy led to continuous growth in sales of residential units. Investment flows in the residential segment were impacted due to increased risk perception, shadow banking crisis and structural changes in the sector. The third quarter witnessed increased debt funding for projects that have received good home buyer responses due to the developer track record. Investors are likely to infuse more capital in the residential segment towards projects in the last stages of completion,” said Dr Samantak Das, Chief Economist and Head of Research & REIS (India), JLL

“The rating agency, Moody’s has upgraded the sovereign rating outlook to “Stable” from “Negative” indicating that downside risks are receding. This positive outlook is likely to get reflected in the real estate sector investments during the last quarter of 2021. The large dry powder, low-interest rates, and continued monetary stimulus are expected to drive broad-based investment growth,” he added.

In alternative assets classes, - Data Centres have been attracting high interest as the industry is expected to double its capacity from 499MW as of H1 2021 to 1007 MW by end of 2023. The pandemic has accelerated the demand for third party DC industry. Investors and DC players have increased their commitments during the last 6 months to set up new data centres indicating strong growth potential. Investment plans to the tune of USD 3 billion highlight the growth potential of this industry.

Residential and DC industry dominate deal volumes

USD million	Q3 2020	Q3 2021	% share
Residential	211	211	29%
Alternatives	-	161	22%
Mixed-use	-	137	19%
Office	405	100	14%
Warehousing	-	94	13%
Land	-	18	2%
Grand Total	616	721	100%

Source: Capital markets, JLL

Mumbai, NCR-Delhi and Bengaluru attract 77% investments during Q3 2021

Mumbai with increased investments in the DC industry and capital flow in select residential projects led the investment pie with a 39% share. Bengaluru recorded entity-level investment in a mixed-use (residential and commercial) project leading to a 19% share while NCR-Delhi with transactions in the residential and warehousing segment also had a similar share. Office space transactions have been muted due to a likely delay in the due diligence process and investors gauging the unfolding of work from the office scenario.

Mumbai leads deal table with 39% share

	Q3 2021	Q3 2021	% share
Mumbai	-	279	39%
Bengaluru	-	137	19%
NCR-Delhi	76	136	19%
Hyderabad	-	106	15%
Chennai	235	63	9%
Others	305	-	-
Grand Total	616	721	100%

Source: Capital markets, JLL

Outlook – economic tailwinds to spur investments in last quarter of 2021

Progress in vaccination and continued fiscal stimulus are important tools for restoring normalcy and ensure economic growth lost during the pandemic period.

Few investment themes expected to continue

The listing of future REITs by institutional investors is expected to drive portfolio creation across classes, while existing listed REITs would expand their existing portfolio through inorganic growth. Institutional funds with diversified portfolios across assets and geographies are likely to list sooner. Investors are likely to focus on assets stable rental growth to ensure visibility of income. Though office assets will continue to attract maximum investments, defensive assets like logistics and data centres would provide opportunities and are expected to gain traction. The Industrial and warehousing space sector will continue to attract investors at the development stage to maximize yields as the sector is expected to benefit from e-commerce and third-party logistics (3PL). As the Indian colocation data centre industry size is expected to double by 2023, it is expected to witness higher capital flows to fund the expansion plans of DC operators.

 

 

75% of the employees today want to be in

75% of the employees today want to be in office at least once a week as compared to 52% in October 2020: JLL

Key Highlights:

- 91% of the respondents favour flexible working hours

- The social interactions that an office space provides are being sorely missed, to the extent that 41% of the workforce is craving ‘real’ human interactions with colleagues while 31% of them miss a change of scenery

- 79% of the workforce wants to work remotely from home at least once in a week, and this number goes up to 89% when a third-party place of work is added

- 21% of the workforce does not want to work from home in the future, as opposed to 16% in October last year

- 91% of the workforce want to choose their schedules and working hours as per the latest results, up from 69% as per the October 2020 survey results

75% of the employees today want to be in office at least once a week as compared to 52% in October 2020: JLL

The JLL survey indicates that a workplace that cares about health and well-being is now the number one priority for employees

Employees want more balance in their working patterns, with a hybrid work model and flexibility being key.  Even as the office retains its place in a working set-up being reshaped in a post-COVID world, aspirations are increasing from the modern workplace while homeworking is still preferred, according to JLL’s latest Workers Preference Barometer for India.

91% of the respondents favour flexible working hours. The priorities of the workforce have undergone a shift with an empathetic employer and work-life balance being their key asks, even ahead of a comfortable salary.  The pandemic has prioritized working in an environment that puts health and well-being at the forefront.

While the workforce shifted seamlessly to Work From Home (WFH) due to the pandemic for over a year now, the prolonged and enforced homeworking has brought to the fore the need to “connect’ with colleagues, while more traditional levers such as ‘purpose in the job’ and ‘visibility’ are not the top priorities they used to be, finds the survey.

The social interactions that an office space provides are being sorely missed, to the extent that 41% of the workforce is craving ‘real’ human interactions with colleagues while 31% of them miss a change of scenery. Amongst the most missed aspects of the weekly routine, coffee and socializing in social activities, personal time for relaxing and spending time with family stand out.

India prefers homeworking, but balance in working patterns has emerged as a key theme. 79% of the workforce wants to work remotely from home at least once in a week, and this number goes up to 89% when a third-party place of work is added. An ideal working week, post Covid, seems to be one where employees spend three days working remotely and two days in office, with office remaining a key element to the aspirational working regime. According to the survey, 21% of the workforce does not want to work from home in the future, as opposed to 16% in October last year. However, flexibility is becoming more attractive. 91% of the workforce want to choose their schedules and working hours as per the latest results, up from 69% as per the October 2020 survey results.

The hybrid work environment retains its appeal, but more people want to return to the office at least once a week, says the survey findings. Almost 75% of the surveyed employees want to work from office at least once a week compared to 52% in October 2020. Significantly, still 79% employees today want to work from home atleast once a week compared to 84% in October 2020, indicating that homeworking as part of flexible work patterns is a key desire.

The survey also brings to the fore renewed aspirations from the workplace of the future. This will act as a barometer for the employers and occupiers to understand changing needs from the workplace and workplace strategies, which will provide a more balanced work-life pattern to employees as they aspire to return to purpose-led offices in the future.

“The offices of the future will have to be more human-centric, putting health and well-being at the forefront. Almost 60% of those surveyed believe that a workplace that promotes a healthy lifestyle and safety is a key priority. There is a greater understanding and need for work-life balance amongst employees now. We are also seeing the need for human connection gaining prominence amongst employees as they crave social connections and emotional engagements in the workplace. Companies will need to be mindful of the requirement for more flexible work patterns even as they are putting greater focus on the well-being of employees and extending support to help employees navigate an array of health challenges,” said Radha Dhir, CEO and Country Head, India, JLL.

JLL’s research shows that more than half of respondents feel overwhelmed by a huge mental load and are worried about their job security, while majority of young parents have expressed that they have many personal and professional responsibilities to cope with which is intensifying the feeling of being overwhelmed.

‘Purpose-led offices’ are the new future

According to the survey, 91% of employees who are highly satisfied with their office environment strongly miss their offices. However, office satisfaction rate has also dropped as employees now have renewed expectations of their office environment. While there is a dip in productivity levels at home, a significant number still feel more productive at home. But more employees are looking forward to “purpose-led offices” of the future.

“We have witnessed renewed demands of the workforce for the workplaces with employees’ rising aspirations and expectations. Employees are more demanding about what the office should offer them in the future. They are looking for a working ecosystem that facilitates flexible work arrangements, physical and financial safety, and a desire for spaces that create a strong sense of community and culture,” said Dr Samantak Das, Chief Economist and Head of Research & REIS (India), JLL..

“As we are emerging from the effects of the pandemic, it has become essential to create a human-centric framework and cater to employees’ aspirations of a healthy and sustainable workplace while augmenting it with innovative technologies in line with the evolving needs of employees,” he further added.

A global research survey of over 3,300 respondents was undertaken to create this barometer which was consolidated over time with two previous surveys over the whole year of the pandemic starting March 2020 and repeated in October 2020 and March 2021.

In India, all respondents were over 18+ and working professionals and working with companies with at least 100 employees or more. Over 90% of the surveyed were employed with private companies with big corporates comprising 70% of these and SMEs forming the rest. Additionally, quotas on age, managerial responsibilities, company size and industry were used as well to get a more homogeneous profile of employees participating in the survey.

Indian data center industry capacity to

Indian data center industry capacity to double by 2023: JLL

 Industry capacity expected to double from 499MW in H1 2021 to 1008 MW by 2023

• 92% year-on-year growth in third party data center (colocation) industry capacity addition at 51.8MW during H1 2021; Mumbai accounted for 49% share of the capacity addition
• Demand for colocation space is equivalent to 90% of supply addition during H1 2021

Note: GW* and MW*- indicates IT design power load

India’s data center industry is expected to double capacity by 2023, says JLL. Capacity will exceed 1GW by 2023, driven by strong digitalisation, rising cloud adoption and ambitious growth plans of data center operators, according to JLL’s ‘H1 2021 India Data Center Market Update’ released today.

Nationwide, the acceleration of digitalisation has forced enterprises to scale up their IT infrastructure. As a result of digital upgrades, a strong demand for colocation/cloud facilities, which offer scalability, security, and connectivity at lower costs, has been witnessed across India. Additionally,investors and global data center players have increased their commitment during the last six months in the India market by announcing joint ventures to meet expected demand.

“The demand momentum which picked up pace in 2020, continues to grow unabated. The Indian data center industry witnessed 46.4 MW absorption during H1 2021 - equivalent to 90% of supply addition during the period (H1 2021), indicating robust absorption growth. Demand has been expanding rapidly due to increasing digital usage emerging from distributed workforce, growing data security concerns and business disruptions. Banking and financial services are adopting hybrid options to meet digital growth. Home-grown video and gaming platforms in midst of robust user growth are also fuelling the data center industry demand. Furthermore, telecom players are formulating the roll out of 5G which is expected to drive exponential growth in data consumption,” said Rachit Mohan, Head, Data Center Advisory – India; Co-Head, Office Leasing Advisory – Mumbai, JLL.

“Global investors and data center  players have increased their commitment during the last six months, announcing joint ventures with operators to setup sites. Investment commitments to the tune of USD 3 billion highlight the growth potential, with the data center industry expected to double its capacity and cross the 1GW* mark by 2023. Mumbai which currently accounts for 45% of the total capacity is expected to further add 267MW between now and 2023. Various states have also been providing incentives for data center industry as they want to join the next leg of technological change,” said Dr Samantak Das, Chief Economist and Head of Research & REIS (India), JLL.

Data center operators are adopting large land acquisition strategies to fulfil the long-term requirements of hyperscalers (large cloud players and occupiers with massive computing requirements). These operators would provide occupiers with flexibility in terms of availability zones, fiber pathways and power provisions required for large scale expansions in less time. Players are also adopting strategic alliances by investing in new submarine cables to meet the growing demand.

The telecom industry has been gearing for rolling out the 5G services with three providers starting field trials. The trend of sustainability has been gaining pace as tie-ups for green energy are being inked.

Quote by A Shankar, Head - Strategic Consulting and Valuation

Quote by A Shankar,  Head - Strategic Consulting and Valuation Advisory, India, JLL

On the announcement of National Monetisation Pipeline  

“It is a win-win for both the Government and the private sector. This will lead to a multiplier effect on local economy to boost retail, real estate, industrial, tourism and generate employment opportunities, while also help unlock public sector potential through investments in Infrastructure, tapping private sector efficiencies through Public-Private Partnership (PPP) and create other sources of revenue. 

Key to success is to adopt best practices from past experience in asset monetisation along with engaging professions to reach out to the global market for better realisation of value. Timely implementation and valuation when undertaken effectively, can deliver infinite value from these assets, which will not only create substantial fiscal benefit but also help in creating new and world-class infrastructure in India.”

 

Indian data center industry capacity to double by

 Indian data center industry capacity to double by 2023: JLL 

• Industry capacity expected to double from 499MW in H1 2021 to 1008 MW by 2023
• 92% year-on-year growth in third party data center (colocation) industry capacity addition at 51.8MW during H1 2021; Mumbai accounted for 49% share of the capacity addition
• Demand for colocation space is equivalent to 90% of supply addition during H1 2021

Note: GW* and MW*- indicates IT design power load

India’s data center industry is expected to double capacity by 2023, says JLL. Capacity will exceed 1GW by 2023, driven by strong digitalisation, rising cloud adoption and ambitious growth plans of data center operators, according to JLL’s ‘H1 2021 India Data Center Market Update’ released today. 

Nationwide, the acceleration of digitalisation has forced enterprises to scale up their IT infrastructure. As a result of digital upgrades, a strong demand for colocation/cloud facilities, which offer scalability, security, and connectivity at lower costs, has been witnessed across India. Additionally, investors and global data center players have increased their commitment during the last six months in the India market by announcing joint ventures to meet expected demand. 

“The demand momentum which picked up pace in 2020, continues to grow unabated. The Indian data center industry witnessed 46.4 MW absorption during H1 2021 - equivalent to 90% of supply addition during the period (H1 2021), indicating robust absorption growth. Demand has been expanding rapidly due to increasing digital usage emerging from distributed workforce, growing data security concerns and business disruptions. Banking and financial services are adopting hybrid options to meet digital growth. Home-grown video and gaming platforms in midst of robust user growth are also fuelling the data center industry demand. Furthermore, telecom players are formulating the roll out of 5G which is expected to drive exponential growth in data consumption,” said Rachit Mohan, Head, Data Center Advisory – India; Co-Head, Office Leasing Advisory – Mumbai, JLL.

“Global investors and data center  players have increased their commitment during the last six months, announcing joint ventures with operators to setup sites. Investment commitments to the tune of USD 3 billion highlight the growth potential, with the data center industry expected to double its capacity and cross the 1GW* mark by 2023. Mumbai which currently accounts for 45% of the total capacity is expected to further add 267MW between now and 2023. Various states have also been providing incentives for data center industry as they want to join the next leg of technological change,” said Dr Samantak Das, Chief Economist and Head of Research & REIS (India), JLL.

Data center operators are adopting large land acquisition strategies to fulfil the long-term requirements of hyperscalers (large cloud players and occupiers with massive computing requirements). These operators would provide occupiers with flexibility in terms of availability zones, fiber pathways and power provisions required for large scale expansions in less time. Players are also adopting strategic alliances by investing in new submarine cables to meet the growing demand.

The telecom industry has been gearing for rolling out the 5G services with three providers starting field trials. The trend of sustainability has been gaining pace as tie-ups for green energy are being inked.

SWAMIH Investment Fund I to invest in

                    SWAMIH Investment Fund I to invest in
        Imperia Group’s residential projec ‘The Esfera’ in Gurgaon

The transaction exclusively advised by JLL, will benefit about 450 homebuyers

The Government of India sponsored Special Window for Affordable and Mid-Income Housing SWAMIH Investment Fund I (“SWAMIH”), has committed to invest in completing the phase II of Imperia Group’s residential project ‘The Esfera’ in Gurgaon. As an outcome of this investment, Imperia Group, the developer will be able to revive and complete this project resulting to benefiting close to 450 homebuyers.

The Fund is managed by SBICAP Ventures, a 100% subsidiary of SBI Capital Markets, which in turn is a wholly owned subsidiary of the State Bank of India. JLL is the exclusive transaction advisor for the deal. The Esfera, Gurgaon was launched in 2012 as a 1.2 million sq. ft. mid-segment residential project spread over 11 acres in Sector 37C, Gurgaon.

As a lifeline to the residential real estate segment, the Government of India launched SWAMIH, providing relief to developers struggling to complete their unfinished projects. In November 2019, the Government of India had announced INR 25,000 crore - Special Window to help complete over 1,500 stressed housing projects comprising of around 4.58 lakh housing units. Due to the impact of the pandemic on the economy, fault lines in the real estate sector had started appearing since last year. Many developers saw their cash flows drying up overnight due to various factors including market condition, economic scenario amongst others, leading to unfinished projects and impacting many home buyers.

“The residential market in India has emerged much more resilient post the second wave of the pandemic. In Gurgaon micro market, new launches have already started. In the last two years, the supply was restricted in this market due to the circle rates and lack of stamp duty benefits. But the situation is turning positive with an array of tier I launches in the city. In fact, this micro market has been leading in sales of upper middle and high-end segments within the entire NCR region in the past few quarters. Prices have remained benevolent, but we see fair opportunity of appreciation in the coming few months to years,” said Manish Aggarwal, Managing Director, North and East, India, JLL.

Home sales in H1 2021 increased by 18% as against H1 2020. The sustained levels of residential sales present clear signs of demand and buyer confidence coming back to the market. The need for secured tangible assets and aspirations to own larger homes as remote working becomes the new norm is driving sales of residential properties across the country.

“The fund objective is to provide capital to stressed projects to help the home buyers realize their dream of living in their own homes. With this capital being provided, we are confident that close to 450 home buyers will soon be able to move into their dream homes,” said Irfan A. Kazi, Chief Investment Officer, SWAMIH Investment Fund I.

"We are extremely pleased to have been reposed with the trust and confidence of the SWAMIH Investment Fund. With the new influx of funds, we aim to reach the delivery deadline for The Esfera at the earliest and plan to achieve greater benchmarks in quality, safety and customer experience." said Harpreet Singh Batra, Managing Director, Imperia Structures Ltd.

JLL enters secondary residential market

     JLL enters secondary residential market, ties up with Zapkey

 Creating trust and transparency in the process of transacting resale residential homes

Benefits for the customer

·         Complete assistance on property marketing

·         Detailed home inspection and valuation report
·         3D (Digital Twin) - virtual tour of the property

JLL, India’s largest real estate consultancy firm today announced its entry into the country’s secondary residential market via a strategic partnership with Zapkey (a Propstack subsidiary). With this first-of-its-kind association, JLL aims to reach out to customers struggling to make a buy-side or a sell-side transaction in the rather unorganised secondary (resale) residential market.  

 

India’s secondary residential market is very challenging with customers facing multiple issues. Apart from difficulties related to price discovery and quality of product offered, legal issues like clear title deeds and documentation can be a big deterrent. This partnership aims at firstly simplifying the marketing of a resale apartment by using Zapkey’s data platform & proptech tools like Matterport, which creates a 3D digital twin of the apartment for buyers, making it easier for them to virtually tour the property. It also provides measurement features, a detailed home inspection report with all the quality checks and scope of improvements mentioned in simple understandable terms.

“The collaboration between JLL and Zapkey will be both offline and online. While Zapkey will list  resale homes on their portal, the eventual offline transaction will be managed end-to-end by JLL’s experienced advisors. Starting with Mumbai, we will look at expanding our presence in cities like Pune and Bengaluru too,” said Siva Krishnan, Managing Director, Residential, India, JLL.

 “As more and more homebuyers take the most important step of investing in their own homes rather than staying on rent, we wish to be enablers for them in this important decision. We recently announced JLLhomes.co.in, our primary residential portal, and with this association we aim to reach the secondary residential market. We hope that the coming together JLL and Zapkey will induce confidence in customers as we aim to resolve some of their most pressing issues,” Siva further added.

Raja Seetharaman – Co-founder of  Zapkey said, “Both JLL and Zapkey are client-facing real estate companies; however, the characteristic each holds fits like a puzzle. We are delighted to partner with JLL. We believe that the combination of Zapkey’s tech and data platform with JLL can redefine the secondary residential market in India. The broad nature of residential products &  services under one umbrella, makes it an exiciting proposition. The secondary residential market holds huge potential in India. Large organised players like JLL entering this market will make it easier for buyers and sellers to confidently and efficiently execute transactions.”

JLL has recently announced the launch of its residential portal JLLHomes.co.in. The portal enables prospective homebuyers to choose from an array of residential projects that have been pre-screened by professionals from JLL.

 

For more information and to experience the site, please visit www.jllhomes.co.in

Dr. Samantak Das, Chief Economist and Head Research & REIS, JLL on the monetary

                             Dr. Samantak Das, Chief Economist and Head Research & REIS, JLL
                                            on the monetary policy that was announced today

RBI has upheld its accommodative stance and kept the repo rate unchanged at 4% during the monetary policy committee meeting held today. ‘Strong and sustainable growth’ continues to remain the cornerstone of the Central Bank’s philosophy while it takes into cognizance the current rising inflationary trends. Citing the high inflation levels to be transitory in nature driven by short term supply side constraints, the Bank draws attention to the promising high frequency indicators such as consumption, investment and external demand which are regaining traction as the economy is opening up in a phased manner.

 With the concerns of the second wave ebbing supported by aggressive ongoing mass vaccination, broad-based policy support, normal monsoons, likely easing of supply side issues, RBI maintains its growth forecast for FY 21-22 at 9.5%. As the economy gradually gains foothold in the aftermath of the receding impact of the second wave, RBI has indicated greater confidence in the resilience of the Indian economy.

 Green shoots in the residential sector have emerged in tandem with the gradual improvement in the economic environment as businesses reopen. Prevailing lower home loan rates supported by RBIs policy rate stance, stable prices and attractive payment plans and schemes of developers are aiding the translation of pent-up demand into sales. If the downward trajectory in COVID-19 cases is sustained, the sector is expected to make a healthy recovery in H2 2021.

JLL launches residential property portal

                                        JLL launches residential property portal JLLHomes.co.in

Portal showcasing pre-screened properties, allocating dedicated relationship managers to each homebuyer and creating a seamless home buying experience

JLL, the country’s largest real estate consultancy firm today announced the launch of its residential portal JLL Homes.co.in. The portal enables prospective homebuyers to choose from an array of residential projects that have been pre-screened by professionals from JLL.

With a focus on delivering an exceptional experience for homebuyers, the Firm leverages its in-depth research-backed knowledge and follows a ‘Relationship’ model. Each prospective homebuyer is assisted by one of JLL’s experienced relationship managers to identify relevant options and handhold them through their homebuying journey. This makes the home buying process seamless for the customer, who otherwise has to deal with the unorganized players in this sector, resulting in screening of often irrelevant information and multiple calls from multiple sources.

How do homebuyers’ benefit?

·           Pre-screened homes
·           Dedicated relationship managers
·           Best deals at zero brokerage (on primary transactions)
·           Clutter free site with no ads
·           Property listings verified by JLL
·           No incessant calls from multiple brokers

Due to restrictions on site visits and other safety protocols owing to the pandemic, homebuyers today are increasingly turning to online platforms for their initial home search. Owing to long term disruptions caused by COVID, JLL estimates that  with platforms such as JLL Homes, the trend of online home searches will continue to prevail.

“The inherent need to own a home due to the pandemic has given a boost to the residential segment in the country. As a result, we witnessed an 18% rise in sales in the first half of this year compared to the same period last year, which is proof that the residential market has emerged resilient from the pandemic. With JLL Homes, we offer a unique and customer-centric platform with over 4,000 projects backed by the trust of the JLL brand,” said Radha Dhir, CEO and Country Head, India, JLL.

“The world we live in today is a digital one and searching for a home is no different. Online searching maximizes the ability to compare potential homes by selected features. Most of this is done before a potential home buyer connects with a real estate agent. With JLL Homes, we address a lot of the pressing issues homebuyers face today, be it during online searches or offline transactions closures. We offer our customers a hassle-free home buying experience while respecting their privacy. Clients with purchasing power wants to look for larger homes, given the expanded space requirement for work from home, children’s online education and family recreation. For our NRI clients planning to invest in India, it will be convenient to browse and shortlist properties and we will also arrange virtual visits to offer a seamless experience.” said Siva Krishnan, Managing Director, Residential Services, India, JLL.

With a conducive policy environment and one of the lowest home loan rates in the last decade, this is a good time time to buy a home. The residential market in the country saw sales picking up in the last few months. In the second quarter (April-June) of 2021, sales increased by 83% as compared to Q2 2020, across the top seven cities in the country. By comparison, in Q1 2021, sales of residential units continued an upward trajectory, increasing by 17% on a sequential basis. During the first wave of COVID-19, residential sales dropped by a record 61% quarter-on-quarter to 10,753 units in Q2 2020. However, the impact of the second wave has been limited with sales in Q2 2021 dipping by 23% to 19,635 units.
 
For more information and to experience the site, please visit www.jllhomes.co.in

Housing sales may see a spurt of

Key Highlights:

• Prediction of Normal rainfall in 2021 augurs well for the Residential segment
• Good monsoon will support RBI in keeping the repo rate down, thereby supporting the low-interest rate regime and keeping the home loan rates benign
• House hunting likely to re-start extensively in the current and next few months as buyers look to evaluate projects based on waterlogging, seepage and related factors
• Normal monsoons do support farm and rural incomes and thus lower the defaults for such loans and this positively impacts the banks’ financial results and provides impetus to the overall financial sector health 
  
  Housing sales may see a spurt of 20-35 %
  in the upcoming monsoons months: JLL
  
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• Prediction of Normal rainfall in 2021 augurs well for the Residential segment
• Good monsoon will support RBI in keeping the repo rate down, thereby supporting the low-interest rate regime and keeping the home loan rates benign
• House hunting likely to re-start extensively in the current and next few months as buyers look to evaluate projects based on waterlogging, seepage and related factors
• Normal monsoons do support farm and rural incomes and thus lower the defaults for such loans and this positively impacts the banks’ financial results and provides impetus to the overall financial sector health
  

With the macro economic factors this year expected to mirror 2020; there is a likely possibility of  a 20-35 % spurt in housing sales in the monsoon months in 2021 as was seen last year as per a recent study by JLL. While fuel prices have risen in recent months along with rising inflation, the RBI has retained its accommodative stance and kept the repo rate unchanged. With the expectation of moderating inflationary pressures as supply side disruptions are sorted and with home loan rates sticking to their historic lows since last year, the support structure for sales of homes seems intact this year in the upcoming monsoon season as well as the approaching festive season, the study further reveals.

As seen in 2020, with the decent rainfall recorded across the country, there was ample headroom for the RBI to keep the key rates at record lows since the inflation was under check. This encouraged a number of people to come forward and buy homes. Now in 2021 as well, the home loan rates can be expected to remain close to their historic lows, providing a good opportunity for the residential realty sector to do well in the rainy season.

Post the unlocking process which followed the first COVID wave last year, the healthy monsoon ensured that the inflation fell to well below 6% by December 2020 and remained so till the end of FY 2021. This provided the RBI leeway in keeping the repo rate at historic low levels, thereby helping the commercial banks in maintaining home loan rates at near-record lows.

Dr. Samantak Das, Chief Economist and Head Research & REIS, India, JLL said, “The residential real estate sector can expect buoyancy in the sale of residential properties this year in the monsoons and the upcoming festive season, just as last year where there was a 34% jump in the corresponding period as compared to the immediately preceding quarter. The jump in sales can be 20-35% this year depending on how the pandemic shapes out. If there is a third wave in the next few months, other economic disruptions could impact sales growth negatively which may then hover around the lower range of our expectations.”

As we have seen over the past two years, when rainfall is ample, the inflation continues to be within manageable levels which allowed enough headroom to the RBI to keep the policy rate low. Even in 2020 when the pandemic disrupted supply chains, the rising inflation quickly moderated post the unlocking with the good monsoon acting as the buffer towards sustained inflationary pressure. Even this year when there is a prediction of normal monsoons, there is a likelihood of the trend to continue as seen in the last two years and the RBI should be able to keep the Repo Rate at the current levels. This will allow the commercial banks to offer home loans at the existing attractive rates which will continue to drive housing sales. With most  home purchases supported through home loans, the lower home loan interest will continue to have a positive impact on EMI outflows. Interestingly, we can expect house hunting to start in a major way in the current and coming few months, especially in regions like Mumbai Metropolitan Region and Pune, as buyers look to evaluate projects and residential corridors based on waterlogging, seepage, low lying areas prone to flooding and other issues to eliminate locations or projects. The upcoming festive season will also act as a catalyst during this period to support housing sales.

It is worth noting that the housing credit growth has consistently been in the positive territory since 2019 and only saw a negative growth in April 2020 which coincided with the period of the most stringent lockdown during COVID. It is pertinent pointing out that housing credit growth showed sharp spikes in the months immediately following the monsoon season both in 2019 as well as in 2020, which reflects that buying sentiment shows an upward trend following the monsoon season. In a market driven by stable pricing, attractive offers, low interest rates and changing homebuyer preferences, a good monsoon will keep the sentiment positive.

Normal monsoons also result in a good crop which ensures that farm and rural loans, which form a sizeable chunk of priority sector lending and also bad debts, have lower defaults and this positively impacts the banks’ financial results going forward. This will provide further impetus in the financial sector, particularly PSU banks.

A better rural demand, spurred by good rainfall, will also help the sales of white goods like TV, refrigerator, etc. Generally, a positive domestic consumption sentiment would translate into higher capital investments as well by households. Also, if inflation is kept under check it allows for a portion of the household income to be saved. Given that a good monsoon will support RBI in keeping the repo rate down and maintaining an accommodative stance, a low-interest rate regime will be seen in the country going forward.

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