Review

India recorded USD 44.9 Billion Foreign Direct Investment during 2017-2018.Institutional investment during H1 2018 was recorded at USD 5.36 Billion. 91 % of the investments was in the form of equity and buy-out deals. Mumbai and Bangalore accounted for 82% of the investments and the top seven office markets in India recorded 14 million sqft. new supply.Total Office absorption was recorded at 22.5 million sqft. Office absorption during H2 2018 is projected at USD 42 Million sqft, pre-commitments 4-5 Million sqft. Residential Market will continue to witness emphasis on units <60 sqm carpet area however overall new launches will be low. Housing shortage in urban areas is particularly high in the Economically Weaker Section - shortage of 10 million units*. In the Lower Income Group, it is 7.4 million units*** and the balance - 4%*** in the Middle-Income Group. Since the launch of PMAY (U) in 2015, 51.07 lakh houses have been approved under the scheme; out of which, 28 lakh houses have been grounded and 8 lakh houses been completed.

3,732 units launched by Grade A developers with unit sizes of < 60 sqm carpet area post PMAY announcement - 53 percentage point increase compared to pre-PMAY period. Proportion of launches with units of carpet area < 60 sqm to total launches by Grade A developers increased from an average of 3.5% (2012-2014) to 9.1% (2015-H1 2018) . Overall unit sizes declined by 18%-20% during 2012-H1 2018. Major supply in 2 BHK configuration in H1 2018 with units sizes < 60 sqm of carpet area. There has also been increase in supply of compact studio apartments with its share increasing from 0.5% pre-PMAY to 4% post PMAY.There has been serious lack of interest from the most crucial stakeholders - private sector for development of Affordable Housing in Partnership on PPP basis primarily due to the benefits or central assistance provided being not sufficient trade-offs for development of affordable housing projects. It is also necessary to synchronize State & Central Policies to streamline approval processes at the state/ city level & eliminate bottlenecks in availing central incentives. The approval processes need to be streamlined with a Single window approval for projects. Capacity of developers also needs to be enhanced with access to best practices/models adopted in low cost construction technologies.

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