New Delhi: India’s seven major cities witnessed an annual 8 per cent rise in the completion of housing units last year at 4.35 lakh units as developers’ cash flows improved on better sales, according to Anarock.
Real estate consultant showed that 4,35,045 units were completed during last year, as against 4.02 lakh units in the previous year. The data pertains to the primary (first sale) residential market. In Mumbai Metropolitan Region (MMR), 1,43,500 housing units were completed last year, up 13 per cent from 1,26,720 units in the previous year. The completion of housing units in Delhi-NCR rose 32 per cent to 1,14,280 units, as against 86,300 units in 2022.
“The Indian residential sector is unlikely to forget 2023, which was nothing less than phenomenal at every level. Housing sales breached the previous peak levels of 2022 and remain robust in 2024. These sales statistics – along with RERA-related commitments – have encouraged developers to stay focused on completing existing inventory,” Anarock Chairman Anuj Puri said.
With housing demand remaining high, he said developers are prioritising project completions. “Moreover, many large developers have also taken over the task of bringing many stuck or completely stalled projects by other players to completion,” Puri said, while listing out the reasons for higher execution levels.
Among other cities, the completion of homes in Pune declined 23 per cent to 65,000 units in 2023, from 84,200 units in 2022. Bengaluru, Hyderabad, and Chennai collectively saw 87,190 units completed in 2023, as against 81,580 units in 2022. In Kolkata, 25,075 units were completed in 2023, as against 23,190 units in 2022.
Proptech firm Reloy Founder and CEO Akhil Saraf said the housing market is gradually becoming more organised after the passage of realty law RERA. Real estate developers are focusing a lot on customer relationship management (CRM) and project executions, said Saraf, whose firm helps builders in generating referral sales.
Anarock also highlighted that the completion of units was the highest since 2017. As many as 2,04,200 units were completed in 2017, 2,46,140 units in 2018, 2,98,450 units in 2019, 2,14,370 units in 2020, 2,78,650 units in 2021. Record sales of residential properties in 2023 is one of the major factors for better execution of projects. As per the data, housing sales rose 31 per cent last year to nearly 4.77 lakh units across these seven cities, despite rise in prices by an average 15 per cent, and higher mortgage rates.
Founders Anuj Puri and Rohin Shah own over 80% of Anarock, which started with a focus on residential services, and has expanded into commercial real estate services as well. It also offers investment banking, research & valuations, app-based flexible workspaces (had acquired myHQ) and society management agency (took over Anacity) services.
360 One has invested Rs 200 crore for a minority interest in Anarock, marking its first investment in the real estate consultancy segment. The $8-billion fund, however, has exposure in the broader realty sector. In June last year, it had invested in Neoliv — a residential platform founded by former Godrej Properties MD Mohit Malhotra.
While the Indian real estate consultancy sector continues to remain fragmented, it has increasingly been moving towards formalisation, said Anarock chairman Puri. This, he described, has been because of regulations mandating transparency & accountability, technological advancements enabling digital listings, virtual tours & online transactions, and the entry of international firms encouraging traditional consultants to improve their service standards.
Before founding Anarock in 2017, both Puri and Shah had a stint at Jones Lang LaSalle (JLL) — one of the world’s leading property consultants. While Puri headed the local unit of JLL in 2007, Shah started his career with the company in 1986.
Eight years later, Shah established Chesterton Meghraj, where Puri was the MD. This company subsequently became Trammell Crow Meghraj, in which US-based Trammell Crow and Puri held a stake. In 2007, Chicago-based JLL combined its India business with Trammell Crow Meghraj and appointed Puri as head of the merged entity. The deal saw Shah’s exit from the real estate advisory business.
Puri quit JLL a decade later in 2017 and along with Shah, bought the residential brokerage business — estimated to be around Rs 3,000 crore — from their former employer.
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Bengaluru, 5 February: Real estate consultancy firm ANAROCK on Monday said it has raised Rs 200 Cr ($25 million) from 360 ONE Asset Management.
This investment will enable ANAROCK to enhance its technology infrastructure, accelerate its expansion, and introduce new innovations to bolster its position in the Indian real estate services space.
360 ONE Asset Management, which was earlier known as IIFL Asset Management, is one of India’s largest alternate asset management firms, with around $54 billion assets under management.
“We are delighted to have 360 ONE Asset as our first equity investor. This investment will go a considerable way in keeping ANAROCK at the forefront of the industry by fuelling further innovation and growth. The capital has been earmarked for faster business expansion and fine-tuning our proprietary proptech platforms, which have proved to be game changers for our real estate marketing capabilities. We will continue to explore new high-growth business opportunities,” said Anuj Puri, Chairman of ANAROCK.
According to the real estate consultancy firm, the Indian real estate sector is expected to account for 10-13 per cent of India’s GDP by 2025, from current 7 per cent. The potential market value of the real estate market is expected to surpass $1 trillion by 2030.
“ANAROCK will lead the market with upgraded AI/ML technologies to accelerate our developer clients’ residential inventory sales,” Puri added.
Commenting on the development, Sameer Nath, Chief Investment Officer and Head of Venture Capital & Private Equity at 360 ONE Asset, said, “We are delighted to be the first equity investor for ANAROCK. In ANAROCK, we observe a top-class management team, premier marketing and advisory capabilities and a clear leader in India’s large and growing real estate services sector. We look forward to partnering with Anuj, Rohin and the entire ANAROCK team in the next phase of their exciting growth journey.”
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Homegrown alternate asset manager 360 ONE Asset Management Ltd, formerly known as IIFL Asset Management, has invested Rs 200 crore (around $25 million) in real estate consultancy firm Anarock Property Consultants Pvt. Ltd.
Anarock, which is active in India and the Middle East, said the investment will help the company improve technology, accelerate expansion, and introduce innovations.
“The capital has been earmarked for faster business expansion and fine-tuning our proprietary proptech platforms, which have proved to be game changers for our real estate marketing capabilities,” Anarock Chairman Anuj Puri said. “We will continue to explore new high-growth business opportunities.”
Anarock was founded in 2017 by Rohin Shah and Puri. Shah is also the managing director of UK-based Marylebone Asset Management.
Over the last six years, the firm has expanded from being a residential-focused organisation to complementary sectors including retail, commercial, hospitality, logistics and data centres, industrial and land.
Anarock also offers strategic advisory, investment banking, research, and valuations. It also provides app-based flexible workspaces and society management services and has a team of over 2,200 professionals.
Sameer Nath, chief investment officer and head of venture capital and private equity at 360 ONE Asset, said that the investment was backed by Anarock’s management team, premier marketing and advisory capabilities and a clear leadership in India’s large and growing real estate services sector.
360 ONE Asset is a part of the 360 ONE group, a wealth and alternates-focused institution with more than $54 billion in assets under management.