Month: January 2025

Shubhashish Homes and Gurnani Group’s premium villa project at Ajmer Road, Jaipur marks a strategic alliance between two real estate majors – ET

Shubhashish Homes has entered into a development agreement with Gurnani Group to develop a residential group housing project on Main SEZ Road, just 100 metres from the main Ajmer Road. Spread over 10.6 acres (approx.), the project will offer approximately 7 lac sq. ft. of saleable area and will be developed as a modern and one of the most luxurious villa projects in Jaipur.

“This will be a landmark project in Rajasthan, and we are developing it as one of the most luxurious villa projects. We are targeting the launch in the latter half of this financial year subject to approvals from the authorities. This will be our third big project in this micro market of Ajmer Road. We have four launches lined up for this fiscal year, making 2024 a launch-heavy year for us. We are extremely excited for the times ahead,” says Mohit Jajoo, Executive Director & CEO of Shubhashish Homes.

Shubhashish Homes is a part of the prestigious Shubhashish Group, promoted by Founder and Chairman J K Jajoo. This particular DA transaction was managed and advised by Urbangaon Properties Pvt Ltd.

Shubhashish Homes is a leading real estate developer headquartered in Jaipur. It now has 2.3 million sq. ft. of area under development in five projects with a total development and sales potential above ₹1100 Crores, to be developed in the coming years.

Tier 2 and 3 Indian cities to emerge as pivotal real estate growth hubs in 2025 –
Pune news

New Delhi, Dec 24 (IANS) With its criticalrole in the economy, the housing sectoris projected to contribute 13 per cent to the national GDP by 2025, as tier 2 and 3 cities emerge as pivotal growth hubs for the sector, according to a report on Tuesday.

“Tier 2 and 3 cities are emerging as pivotal growth hubs, with smaller urban centres like Jaipur, Indore, and Kochi driving more than 40 per cent of new housing developments by 2025,” said Ritesh Mehta, senior director and head (north and west),residential services and developerinitiative, JLL India. According to him, the urban homeownership rate is set to increase to 72 per cent by 2025, up from 65 per cent in 2020, supported by affordable financing options and a younger demographic entering the housing market. Millennials and Gen Z buyers are expected to comprise 60 per cent of new homebuyers by 2030. “Sustainability, once considered a luxury, is now a necessity in the housing market. Green-certified buildings are expected to account for 30 per cent of new residential projects by 2025, doubling from 15 per cent in 2020,” said Mehta.

Green building certifications, like LEED (Leadership in Energy and Environmental Design), are becoming more common as the real estate industry prioritises sustainability.

The demand for smart homes and tech-integrated living spaces is also skyrocketing, like advanced home automation systems, including IoTdevices that enhance security, energy management and overall convenience. “Budget-friendly housing remains a key focus in India. Government policies continue to promote accessible housing, with initiatives aimed at making homeownership more accessible for the city’s middle class and first-time buyers,” said the JLL report. The definition of luxury in the real estate market has evolved, especially in the wake of the Covid-19 pandemic. There is now a greater emphasis on spacious layouts, private outdoor areas, and wellness amenities that cater to health and wellbeing, the report mentioned. –IANS

Global Captive Centers: Navigating the Shift from Tier-1 to Tier-2 Cities
Source

If we have learned something from the past couple of years, it’s that creating options for contingency situations is a must. Depending on just one or two sources wouldn’t be wise anymore to thrive in the dynamic environment of rising inflation and rapid adoption of cutting-edge technologies. That indeed validates the fact that GCCs are highly investing in tier-2 & tier-3 cities because tier-1 economies are not enough anymore. If we talk about the growing popularity of tier-2 & 3 cities among corporates, nearly 50% of the recognized startups are found in these cities in India.

This strategic migration is fueled by a quest for cost-effectiveness and access to talent with niche skills lurking in the boundaries of lesser-known areas. Besides, these cities are well equipped with infrastructure so it’s easier for companies to invest in them to set up their GCCs.

Why are Global Captive Centers choosing tier-2 over tier-1 cities?

What if you are given the option to invest at a place where there’s increased talent availability at reduced costs with good infrastructure and social security? Tier-2,3 cities are emerging as attractive alternatives for the Global Captive Centers. The reason for this transformative shift is due to factors such as a favorable business environment, lower operational costs, and an abundance of skilled professionals. Unlike in the tier-1 cities, the cost of operating backend and frontend operations is quite inexpensive in these cities.

Companies are investing their resources in tier-2, and 3 cities, right from IT and manufacturing companies to an organization offering financial services. In fact, some of the key locations for these companies are Vadodara, Chandigarh, Jaipur, Kochi, Surat, Nagpur, Madurai, Coimbatore, etc.

Now after understanding the constant popularity of these regions in the industry, let’s delve into the factors that nudged sought-after companies to build their Global Captive Centers in these regions.

Cost Efficiency and Operational Savings

One of the reasons for companies to set up their GCCs in tier-2 cities is because of cost optimization. Not only is it possible to operate in these regions but it’s low on the pockets, from real-estate costs to employee salaries. Not to mention that the overall cost of living in these cities is lower, which makes it a perfect place for companies to optimize their operational expenses without compromising on quality.

A recent report by Deloitte and Nasscom states that businesses experience a 25%-30% advantage in talent pool costs and a 50% lower real estate rental cost when compared to big cities and mature hubs. This cost advantage makes these cities a good choice for GCCs.

Robust infrastructure development

The investment made by the Indian government in developing Indian cities has been increasing rapidly in the past couple of years. Whether it’s improved connectivity or enhanced industrial zones, the investments by the Indian government are enhancing the industrial environment while creating a base for the companies to establish their operations. And the burgeoning infrastructure is a significant factor in the decision-making process of the companies. Not to mention that improved transportation, modern office spaces, and reliable utilities contribute to smoother operations and enhanced business continuity.

Availability of skilled talent

Tier-2 cities are home to many skilled professionals possessing niche skill sets that we fail to find otherwise. Professionals with backgrounds in IT, engineering, finance, healthcare, and various other fields are often found in these areas with diverse skill sets that can be valuable for Global Captive Centers, which require a multifaceted workforce to support different functions, from software development to customer support. Moreover, access to a diverse talent pool can help GCCs adapt to changing market demands and technological advancements. Another advantage is that many Tier-2 cities have universities and educational institutions, which can serve as talent pipelines for organizations looking to hire recent graduates and nurture their skills.

Scope for increasing brand awareness

By expanding its operations to a new city, an organization not only seeks help from local professionals but also gets the chance to build an employer brand in those areas. Not to mention that as the word spreads in an area, localities get more aware of the brand’s USPs and use cases. This can benefit the brand in increasing its customer base in these tier-2,3 cities. With that, businesses also understand the needs of local consumers, increasing their market exposure.

The shift of Global Captive Centers to tier-2 cities marks a transformative shift in the operations of the global. By expanding their footprints in tier-2,3 cities, organizations can achieve a balance between cost optimizations and access to a diverse talent pool. However, this shift requires cautious consideration of factors such as infrastructure, talent availability, and cultural dynamics.

Are you wanting to expand your footprints in emerging cities but don’t know where to begin? NLB Services has end-to-end Global Captive Center solutions that can help you boost your business.

Real estate prices in Tier 2 cities: Jaipur records highest growth in property prices at 65%

By HT Real Estate News | Dec 05, 2024 03:32 PM IST

Jaipur records highest growth in property prices at 65% followed by Guntur at 51%. Goa only city to cross the ₹10,000 per sq ft mark, according to PropEquity

Jaipur saw the highest rise in weighted average price of new launch projects at 65% from ₹4240 per sq. ft. to ₹6979 per sq. ft. between 2023-October 2024. (Representational photo)(Unsplash)

The weighted price of new launch projects in the top 30 tier II cities increased by up to 65% between 2023 and October 2024. While 26 cities saw prices rise, four cities witnessed a decline, according to a report by NSE-listed data analytics firm PropEquity.

In North India, Jaipur saw the highest rise in the weighted average price of new launch projects, at 65%, from ₹4240 per sq. ft. to ₹6979 per sq. ft. between 2023 and October 2024. This was followed by Indore (20%) and Dehradun (14%). Sonepat, at 26%, witnessed the highest price fall, followed by Mohali (8%) and Bhopal (5%).

While Agra, Chandigarh and Bhiwadi saw 59%, 34% and 25% growth in prices, respectively, the new launches in these cities were very few (between 3-5 projects) during this period.

According to the report, housing prices fell by up to 26% in cities like Bhopal, Mohali, Sonepat, Trivandrum, and Mysore.

Price rise in Tier 2 cities in the Southern and Western regions

In Southern India, Guntur saw the weighted average price of new launch projects rise by 51% to ₹5169 per sq. ft. between 2023 and October 2024, followed by Mangalore (41%), Visakhapatnam (29%). Mysore and Trivandrum witnessed a price fall of 14% and 4%, respectively.

Amritsar, Jaipur among 17 emerging real estate hotspots across India – Is your city in the list? – Financial Express

A comprehensive analysis of these cities was done involving assessment of various social, economic, financial, and real estate specific demand & supply side parameters.

Jaipur, Kanpur, Lucknow, Nagpur, Patna, Surat and Visakhapatnam featured prominently in the list of cities expected to witness heightened digitization driven real estate activity. (Image: By Arrangement)

As India marches towards becoming the world’s third-largest economy, emerging cities are poised to play a critical role in the nation’s growth trajectory. By 2050, India is expected to have nearly 100 cities with populations exceeding one million, in addition to its eight mega-cities. Key factors such as infrastructure development, digitization, tourism, and changes in the office landscape will drive the next wave of urban growth across these locations.

Taking aforementioned factors as primary considerations, Colliers has identified and evaluated over 100 such emerging cities to determine their real estate attractiveness and growth potential over the next 5-6 years in its latest report ‘Equitable Growth and Emerging Real Estate Hotspots.’

A comprehensive analysis of these cities was done involving assessment of various social, economic, financial, and real estate specific demand & supply side parameters. Colliers conducted a broad-based assessment and developed an objective framework incorporating the above-mentioned parameters to assess their relative degrees of importance and impact on various real estate segments such as office, residential, warehousing, retail, hospitality, and alternatives (data centers, senior living, second homes etc.) in the respective cities.

This detailed analysis aided in identification of 30 potentially high growth cities from the universe of 100+ cities where real estate development is set to strengthen in the medium to long term. Interestingly, 17 of these 30 high-potential cities are expected to witness accelerated real estate development across three or more asset classes. A geographical spread of these 17 high-impact emerging real estate hotspots highlights equitable growth across the Northern, Southern, Western, Eastern, and Central regions of the country.

Top 17 cities with high impact segments

Note: The real estate impact in a particular city/location is an indication of real estate asset performance in the next few years compared to current level activity in the city/location. It does not represent activity comparison between different cities/ locations. Of the 30 high potential cities, 17 cities are expected to witness moderate to high impact in at least 3 asset classes. The rest, meanwhile, are expected to witness heightened activity up to 2 asset classes only.

“Smaller towns are emerging as dynamic contributors to India’s economy, driven by improved infrastructure, affordable real estate, skilled talent, and government initiatives. This growth is set to propel the real estate sector to an estimated USD 1 trillion by 2030 and potentially USD 5 trillion, a 14-16% share in GDP by 2050. Significant momentum is expected across residential, commercial, retail, hospitality, and industrial segments. Additionally alternate asset classes such as data centers, senior living, and second homes are also poised for significant activity in these emerging real estate hotspots.” said Badal Yagnik, Chief Executive Officer, Colliers India.

All throughout, infrastructure growth will remain a key catalyst for the real estate development across India. Enhanced connectivity and increased manufacturing activity driven by flagship infrastructure projects under National Infrastructure Pipeline (NIP) and PM GatiShakti will lead to the dispersion and expansion of growth centers beyond Tier I cities. This will significantly boost the economies of smaller towns, triggering real estate activity across warehousing and residential segments particularly. Further, the overall supportive environment for the development of factories and MSMEs, will lead to increased warehousing requirements across emerging hotspots within infrastructure corridors. To assess the overall impact of infrastructure on real estate, Colliers’ analysis involved various demand and supply side parameters, including proximity to key infrastructure projects, warehouse concentration & MSME registrations in the locations and infrastructure allocations in the city etc.

Evolving work models and Technology sector to propel office and residential demand in emerging cities

Owing to the rising prevalence of hybrid working, companies are increasingly adopting hub and spoke model, establishing satellite offices in smaller towns. Colliers identified the high impact locations through a comprehensive analysis evaluating multiple parameters including current technology landscape & start-up ecosystem, availability of skilled talent, current and proposed infrastructure upgrades, and proximity to established office markets. Coimbatore, Indore and Kochi, amongst others, emerged as locations having high potential as satellite office markets.

“As tech giants and innovative start-ups tap into the skilled talent pools of emerging hubs, smaller cities are on the brink of a transformative boom in both office and residential markets. Office rental arbitrage, typically 20-30% lower and relatively affordable housing market in these locales, creates a win-win scenario for companies and employees alike. This surge in demand is set to ignite a wave of interest from leading real estate developers, ushering in an influx of high-quality supply in these markets. Moreover, the rise of flex spaces in these vibrant hubs will seamlessly bridge the demand-supply gap for premium office spaces, fostering a new era of growth and opportunity,” said Vimal Nadar, Senior Director & Head of Research, Colliers India.

Increased digital penetration to spur data center growth in smaller towns

Increased digitization is set to significantly boost real estate activity in smaller towns, particularly in warehousing and data centers. The growth of e-commerce will facilitate the expansion of online retail platforms, leading to the development of fulfillment centers, warehouses, and distribution hubs in strategic locations. Additionally, the surge in data consumption will drive the development of data centers and smart infrastructure in these emerging cities, which will enhance the overall attractiveness of these towns for real estate investments.

Colliers’ analysis on digitization and real estate impact included population, GDP per capita, propensity to purchase online, digital payment adoption, existing presence of top retail brands etc. Jaipur, Kanpur, Lucknow, Nagpur, Patna, Surat and Visakhapatnam featured prominently in the list of cities expected to witness heightened digitization driven real estate activity.

Spiritual tourism to fuel growth of temple towns

Bolstered by government policy support and infrastructure developments, spiritual tourism is poised to be a critical growth driver for the development of several temple towns in India. Upgrades in infrastructure and enhanced connectivity through improved roads, flagship trains, and new airports have the potential to attract organized real estate players to these spiritual destinations in the long term, specifically across hospitality and retail segments.

Identification of high impact locations with respect to spiritual tourism involved analysis of multiple parameters including sanctioned allocations under various government programs, annual tourist footfalls in primary pilgrimage site, upcoming plans of real estate developers and land price appreciation. Amritsar, Ayodhya, Dwarka, Puri, Shirdi, Tirupati and Varanasi emerged as cities to watch out for in terms of growth driven by spiritual tourism.