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Time of India
20 minutes ago
- Business
- Time of India
Carpet area of new flats in Mumbai 43% less than super built-up — biggest gap in country
Mumbai: Apartments in the Mumbai Metropolitan Region (MMR) have the highest 'loading' factor — difference between super-built-up area and carpet area — among the top seven Indian cities. Tired of too many ads? go ad free now According to data collated by ANAROCK Research, MMR has a loading factor of 43%. As an example, a 1,000 sq ft flat will have a living area of under 600 sq ft. "Earlier, super built-up areas were the norm for quoting and marketing, which often overstated the liveable space. While the conversation around square footage continues in the sales room across the table, the focus in advertising appears to have shifted from actual flat sizes, which was more prevalent in earlier years, to taglines such as 'spacious 2 BHK' in advertisements and on hoardings,'' said Prashant Thakur, Regional Director & Head - Research & Advisory, ANAROCK Group. "RERA mandates that all mentions of size must be only based on carpet area. This is strictly mandated in Maharashtra, so marketing has had to adapt to steering the messaging around features and amenities instead. Buyers have become more conscious of shrinking liveable spaces and rising loading percentages," he added. Amid the rising demand for state-of-the-art amenities within housing projects, the 'loading' factor has been on the rise across the top cities. MMR continues to see the highest loading— difference between super-built-up area and carpet area— among the top 7 cities with 43% in Q1 2025. The region has seen the average loading percentage grow steadily over the years —from 33% in 2019 to 39% in 2022, and 43% in Q1 2025. Bengaluru has seen the highest percentile jump in average loading over the last seven years, from 30% in 2019 to 41% in Q1 2025. In 2022, it was 35%. This dovetails with the increasingly higher saturation of modern amenities that developers now include to cater to the higher lifestyle ask in the IT hub. Tired of too many ads? go ad free now Chennai, on the other hand, has the least average loading rise in Q1 2025 with 36%, aligning with a city-specific demand profile where homebuyers prefer to pay more for usable space within their homes rather than for common areas. In 2019, Chennai's average loading percentage was 30%, like Bengaluru. It gradually rose to 32% in 2022 and further to 36% in Q1 2025. In NCR, average loading percentage rose from 31% in 2019 to 37% in 2022, and 41% in Q1 2025. In Pune, it was 32% in 2019, rose to 36% in 2022, and stood at 40% in Q1 2025. Hyderabad saw an average loading percentage increase from 30% in 2019 to 33% in 2022, and to 38% in Q1 2025. Kolkata too saw its average loading factor increase from 30% in 2019 to 35% in 2022, and further to 39% in Q1 2025. "While RERA now requires developers to mention the total carpet area provided to homebuyers, no law currently limits the loading factor in projects. Q1 2025 readings show that 60% of total space within their apartment that homebuyers in the top seven cities pay for is livable space, the remaining 40% is common areas – elevators, lobbies, staircases, clubhouses, amenities, terraces, and so on. The average loading percentage was 31% back in 2019," said Thakur. "Today, higher amenity loading has become the norm across most projects, partly because homebuyers are no longer satisfied with basic lifestyle amenities - they expect fitness centres, clubhouses, park-like gardens, and grand lobbies. Collectively, these features may improve comfort, community livability, and also resale value; however, homebuyers effectively lose on actual usable space within their apartments, " he said. Essential infrastructure in modern housing projects now typically includes more lifts with bigger passenger capacities, amplified utility areas, and fire escapes that meet regulatory safety protocols. In high-density urban developments, optimizing space for both private and shared use is crucial for a better living experience and long-term value, making some level of extra loading an inescapable fact of life. "Respective state RERAs should ideally enforce provisions wherein each project clearly mentions how much buyers are paying for the total usable space within the apartment, and for the amenities," the ANAROCK report said.
Time of India
11-05-2025
- Business
- Time of India
‘Construction came to halt during 1971 war, house rents didn't jump'
Mumbai: What impact can a war have on the real estate industry? According to real estate consulting firm Anarock Group, construction came to a standstill during the 1971 Indo-Pak war. In Mumbai, the state govt "put an iron grip" on cement and steel, which resulted in a 12% reduction in approval of housing projects, said Prashant Thakur, regional director & head, research, Anarock Group, adding that property registrations in the city reduced by almost 10% in 1971. However, housing rental rates did not spike, even though inflation raged out of control, since rent control laws were not then, there were no FDI inflows worth mentioning and the development of private office spaces came to a grinding halt. "Locations like Mumbai's Fort area and Delhi's Connaught Place saw massive vacancy rates. However, office rentals did not sink because of limited supply and due to inflexible regulations," said the Anarock report titled 'Exploring War's Effects on Indian Real Estate—When Conflict Meets Concrete'."India's high-street retail scene was mostly unorganised and uncharted, but local shops in Old Delhi and Kolkata saw a significant drop in footfalls. According to court records from 1971, shop rent disputes in Mumbai rose by 18% due to increased stress among tenants," said though, took a hit. From 2.02 million in 1970, foreign tourist arrivals dropped to 1.96 million in 1971. In Delhi, hotel occupancy dropped under 45%, said 1999 Kargil war, which lasted three months, resulted in considerable short-term market panic. "In 1999, the country's real estate market was already reeling under the impact of the Asian financial crisis. This time, housing rental values did take a direct hit—in Delhi and Mumbai's prime residential locations, rental values plummeted by 3-8% in three months and bottomed out by the year-end," said Thakur. Luxury apartments in Cuffe Parade, though, still commanded handsome prices of Rs 20,000-23,200 per sqft, he said. "Kargil war coincided with the finishing touches being made to the country's pioneering malls—Mumbai's Crossroads and Delhi's Ansal Plaza. Premium retail real estate, a shiny novelty in 1999, commanded higher rents than commercial real estate, but the conflict prompted most enlisted retailers to put their store openings on hold," said the the current conflict broadens, residential absorption in Delhi-NCR and other parts of north India may see a short-term dip of 5-10%. Luxury housing buyers tend to delay purchases in periods of uncertainty. Demand for mid-income housing will be the first to recover. Prices of cement and steel would remain elevated over the medium term unless govt intervenes."In the commercial real estate sector, if the conflict persists or widens, we can reasonably expect MNCs to put their entry/expansion plans into India on hold. This would obviously impact absorption numbers, but long-term demand, most notably from GCC, BFSI and IT sectors, will return and strengthen in 12 months," said said past conflicts have shown that while they can temporarily slow down sentiment and freeze decisions, they cannot break India's real estate market. "In 1971, Mumbai was deploying the satellite city Navi Mumbai even as the war raged on. In 1999, the demand for luxury homes continued unabated, the first malls threw open their doors, and revenge tourism plans were being charted even before the war ended." Get the latest lifestyle updates on Times of India, along with Mother's Day wishes , messages , and quotes !
Time of India
09-05-2025
- Business
- Time of India
Demand for housing, office, retail space may dip slightly if India-Pakistan conflict widens: Anarock
Anarock anticipates a temporary 5-10% dip in North Indian housing sales if the India-Pakistan conflict escalates, potentially impacting office and retail spaces. Construction delays and dampened confidence may lead to purchase postponements, though long-term demand is expected to recover within a year. The hospitality sector in affected regions could see occupancy drops, but domestic leisure travel should remain robust. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Housing sales in north India may be impacted for a short term and fall by a modest 5-10 per cent if the ongoing conflict between India and Pakistan broadens, real estate consultant Anarock said on Friday. The demand for office and retail spaces might also have some impact for short term, the consultant said, but ruled out any "outright plunge"."If the current conflict broadens, we should be prepared for certain ramifications," Anarock Group Regional Director & Head, Research, Prashant Thakur said in a statement."Wars also stall construction and dampen end-user and investor confidence. Aspiring homebuyers put decisions on hold. Retailers put a brake on their expansion plans, and tourists postpone their travel plans. Real estate markets adapt, pause, and then bounce back," he the housing segment, he said sales in Delhi-NCR and other parts of north India may witness a short-term dip of 5-10 per cent. Luxury housing buyers tend to delay purchases in periods of uncertainty. Demand for mid-income housing will be the first to recover once normalcy is restored. However, prices of cement and steel would remain elevated over the medium term unless the government office demand, the consultant said MNCs might put their entry/expansion plans into India on hold temporarily if the conflict persists or widens."This would obviously impact absorption numbers, but long-term demand -- most notably from the GCC, BFSI and IT sectors -- will return and strengthen within 12 months or less," he said there could be a drop in footfall in shopping malls."Nevertheless, India's consumption will overcome these odds quickly and Indian retailers have perfected the art of nimbleness during Covid-19 -- expect highly imaginative promotions to draw the crowds back in," he the hospitality segment, Anarock said Delhi, Kashmir, and other impacted regions are going to see a flurry of cancellations if the conflict persists or widens."We may see hotel occupancies drop by anywhere between 10-15 per cent in these areas. However, domestic leisure travel -- which accounts for almost 90 per cent of room-nights -- will not flounder and we can definitely expect a massive surge of 'victory tourism' such as was seen in Kargil once hostilities cease," the consultant said there could be some short-term sluggishness in the market, but there is no question of an outright plunge."Much has changed since the bombs last flew at scale -- the country's economy has strengthened considerably, its real estate sector has become more disciplined and regulated, and homebuyers showed their strongest side during what was expected to be the death-knell of the housing market -- Covid-19," he is one of the leading real estate consultants in the country. Its revenue grew 36 per cent to Rs 566 crore in the 2023-24 fiscal year.
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Business Standard
09-05-2025
- Business
- Business Standard
Continued border tensions may dent housing and commercial realty: Anarock
Continued escalating tensions at the border are likely to impact residential housing and commercial real estate, with prices of cement and steel remaining elevated and absorption expected to dip in the short term across both segments, according to real estate consultancy Anarock. 'Wars also stall construction and dampen end-user and investor confidence, with aspiring homebuyers putting decisions on hold. Retailers put a brake on their expansion plans, and tourists postpone their travel plans. Real estate markets adapt, pause, and then bounce back,' Prashant Thakur, regional director and head of research at Anarock Group, said in a note. He added that residential absorption in Delhi-NCR and other parts of northern India could fall between 5 to 10 per cent in the short term, if the ongoing conflict between India and Pakistan broadens. Luxury homebuyers are likely to defer purchase decisions, while demand for mid-income housing will be the first to recover once normalcy is restored. Similarly, commercial real estate could be affected, with several multinational corporations (MNCs) putting their entry or expansion plans on hold. 'This would impact absorption numbers, but long-term demand—most notably from the GCC, BFSI, and IT sectors—will return and strengthen within 12 months or less,' Thakur said. The report noted that retail may see a dip in footfall and a postponement of store launches. However, it added that larger malls would be less affected than high-street retail due to long-term leases and rent-waiver clauses. 'Nevertheless, India's consumption will overcome these odds quickly, and Indian retailers have perfected the art of nimbleness during Covid-19. Expect highly imaginative promotions to draw the crowds back in,' Thakur added. For the hospitality sector, Anarock predicted occupancies could drop by 10 to 15 per cent in major northern tourist hubs such as Delhi and Kashmir. However, the report said domestic leisure travel—accounting for nearly 90 per cent of room-nights—may remain resilient, with a potential surge in 'victory tourism' once hostilities cease, similar to the post-Kargil trend. Thakur said he does not foresee any significant drop in housing capital values unless hostilities extend beyond one financial year. 'Today's market is dominated by large, listed and financially robust developers who do not carry excessive leverage. This gives them prolonged holding power, and major banks are also well capitalised,' he said. He added that while price hikes may be paused in the short term, a sharp increase could follow next year due to higher construction costs.
Hindustan Times
09-05-2025
- Business
- Hindustan Times
India-Pak tensions may temporarily dent housing sales across Delhi-NCR and northern India by 5–10%: Anarock
If the India-Pak tensions persist, residential real estate market sales in Delhi-NCR and other parts of north India may witness a short-term dip of between 5–10%, particularly in the luxury segment, as buyers adopt a wait-and-watch approach. However, mid-income housing is expected to recover first once stability returns, an analysis by Anarock has shown. With regard to housing capital values, the analysis noted that it does not foresee any significant drop 'unless hostilities stretch longer than one fiscal year.' 'Today's market is dominated by large, listed and financially robust developers who do not carry excessive leverage. This gives them prolonged 'holding power', and the major banks also are well-capitalised. There may be a pause on price hikes, followed by a sharp hike in prices on account of higher construction costs next year,' said Prashant Thakur, head of research at real estate consultancy Anarock. Cement and steel prices may also increase in the medium term due to high demand from the defence sector unless the government decides to intervene, he said. If the Indo-Pak tensions persist, residential absorption in 'Delhi-NCR and other parts of northern India could see a short-term decline of 5–10%. Luxury housing buyers tend to delay purchases in periods of uncertainty,' he said. However, the mid-income housing segment is expected to recover first once stability is restored. The analysis also indicated that housing capital values are unlikely to see a significant drop unless the conflict extends beyond one fiscal year. Additionally, cement and steel prices may rise in the medium term due unless the government steps in to stabilize supply and pricing, it noted. Capital values may take a hit due to lower demand but it does not impact rents, he said. If the tensions continue, commercial real estate could see temporary delays in MNC expansion plans, impacting short-term absorption, though demand from sectors such as GCC, BFSI, and IT is projected to rebound within a year, Thakur said. Retail real estate may see high-street outlets hit harder than large malls, which benefit from long-term leases and protective clauses. Still, Indian retailers are likely to adapt quickly, as seen during the COVID-19 period, he said. The hospitality sector may face a 10–15% dip in occupancies in regions like Delhi and Kashmir, although domestic leisure travel, which makes up the majority of demand, is expected to remain steady. While price hikes may pause if hostilities persist, capital values are expected to hold firm due to the financial strength of large developers and well-capitalized banks. Nonetheless, rising construction costs could push property prices higher in the coming year, he said. The last two most significant military engagements — the Indo-Pak war in 1971 and the Kargil war in 1999, 'we saw this process unfold in all the four critical real estate sectors: residential, commercial, retail, and hospitality,' he said. He noted that India's real estate market benefited from three major factors after both the 1971 Indo-Pak war and 1999 Kargil War. 'Pent-up demand (the need for homes and offices obviously continued), stricter regulations (RBI's conservative lending norms kept leverage low, which helped curtail panic), and quick stock market recovery. While the Nifty dropped approximately 5% at various points of these two conflicts, it snapped back within 5-6 months to deliver positive returns,' he added. 'We may see some short-term sluggishness in the market, but there is no question of an outright plunge," he added.
