2019 Reaction and 2020 Prediction Quote

By -

Mr. Sanjay Dutt, MD & CEO, Tata Realty & Infrastructure Limited

The Reality of the Realty


The real estate sector is a basket of Commercial (Office, Shopping Centre, Warehousing, Industrial, Data Centre), Residential (Affordable, Mid & Premier Housing) and lately alternatives such as Student Housing, Senior Living, Co-Working and Co-Living.


It is important to understand that it is the mid and the premier housing, which due to excessive supply and over concentration of developments lead by NCR & MMR caused lot of stress. Not the rest of the segments of real estate. Office net absorption in 2019 would be over 40 million sq.ft., the highest ever. Likewise we have seen major demand and PE/RE Funds allocating more capital for Shopping Centre, Warehousing, Industrial & Data Centers.


“The real estate demand story” is therefore not necessarily negative as most in the market perceive it to be. The office sector is linked to global consumption and the residential sector is linked to the domestic consumption. India GDP and the sentiments, which is largely a combination of rural economy and urban economy is not necessarily worries us as we are largely urban focused real estate development organization. Our infrastructure businesses are stable.


We having put in fresh equity, having addressed project specific matters, having taken steps to monetize ready to move in inventory and exiting less attractive projects are ready to take the advantage of market consolidation and future growth.


Our Growth in 2020


We would be commencing & adding 3.5 million sq.ft. in 2020. Besides our newly launched residential projects like Eureka Park in Noida, Tritvam Kochi’s Tower 5 and 88 East in Kolkata received positive response, Andheri Colony, Chembur in Mumbai and OBLP, Bengaluru with potential of over 2 million sq.ft. are next in line. We leased 1 million sq.ft. of office in 2019 and by June 2020, shall deliver 1 million sq.ft. We launched Intellion brand for office and shall witness commencement of 0.5 million sq.ft. of Intellion Park, Mumbai. The infrastructure team is getting ready to kick start Pune Metro, which comes with prime land which would be monetized and developed to the extent of 2 million sq.ft.


2019’s Impact on 2020


The successful listing & performance of Real Estate REIT, Launch of Rs.25,000 crore real estate Alternate Investment Fund set up will help provide last mile funding to affordable housing projects. The slashing of repo rate by 135 basis points this year has helped home loan borrowers. The reduction in corporate tax rate and reduction in minimum alternate tax (MAT) is path breaking. The Government is proactively pursuing growth, we believe 2020 would witness the early signs of revival and return of the sentiments, which consistently growing services sector and urbanization shall help our real estate business including residential. 


Box News:


Tata Housing Development Company Limited bagged Asia’s most trusted company award for 2019. This news is the perfect way to welcome a new year full of possibilities.


Popular posts from this blog

Weird Architecture - Part II

By -
Image
Wuxi Wanda Cultural Tourism City Exhibition Center - Wuxi, China A giant rotating teapot, this building is a Chinese exhibition centre designed to reference local customs. The building's rotating structure also allows it to serve as a micro roller coaster, ferris wheel and water park.  Cube House - Rotterdam, Netherlands Designed by architect Piet Blom, this set of tilted houses was designed based on the concept of "living as an urban roof". Cubes of conventional houses are tilted by 45 degrees and rest upon hexagon-shaped pylons. The purpose of this design is to optimise the space and have improved distribution of the rooms inside.  Dancing House - Prague, Czech Republic Dancing House was designed by Vlado Milunic in cooperation with Frank Gehry in 1992, and completed in 1996. It serves as the building for Nationale-Nederlanden, a Dutch insurance company. Its deconstructivist style (or "new-baroque") was controversial at the time because it stood out so much co...
Read more

Difference between TMT Bar and TOR Steel

By -
Image
Steel bars are integral part for all type of construction that is used to reinforce the concrete. In construction, steel bar is the most important material because it is not only reinforcing the concrete but also saves the construction from easy wear and tear due to rust or any natural calamity such as an earthquake. Here we will discuss about the different types of steel bars that are of different categories. Generally the property and type of steel bars varies depending on the geographical and environmental factors. In present days’ construction technology prefers to use TMT bars in construction but before it, till 90’s CTD or TOR steel were used vastly. TOR  stands for Toriseg Steel Corporation of Luxembourg. It refers to a brand name. The name became so popular that TOR became synonymous with  CTD  or Cold Twisted Deformed steel bars. During the time period seventies to nineties, TOR steel was used for reinforcement purposes of the construction massively. Thereafter, ...
Read more

9 Amazing Indian Architectural Styles Part 1

By -
Image
Indian Architecture has always been inquisitive due to its magnanimity and the arty creations. Our country has a plenty of monuments, baroque and modernistic buildings which echo the tales of their era. Did you know that among the 830 World Heritage Sites listed by UNESCO, 26 belong to the Indian Soil? India has seen a number of architectural styles which developed the course of history. In this article, we are trying to take an overview of 9 such amazing Indian architectural styles! Temple Architecture Temple architecture has deep roots in India. It has developed in almost all the regions in the country. Although the origins of the style are the same, we can see a substantial differentiation and variety of architectural styles in temple construction. This variety is mainly caused due to the geographical, climatic, racial, ethnic, linguistic, and historical diversities in India. Primarily, the Indian temple architecture has been classified into three broad types, namely; Nagara or the ...
Read more