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CONSTRUCTION Among the major cities in India, Delhi NCR led with the highest will be good to implement the announcements made in the last

absorption in 2021 at 18% followed by Pune at 15%. Mumbai and
few months to achieve progress. As the inflation is pegged at
5% (within the safe zone of 2-6%), RBI’s decision to keep the repo
Bangalore saw absorptions at 14% and 11% respectively, while
rate unchanged at 4% was very much on the expected lines.
tier II & tier III cities accounted for 20%.
Simultaneously, the sustenance of accommodative stance also
In addition, the tier II and III cities such as Rajpura, Lucknow,
bodes well for the emergence of a strong economy, out of the
Coimbatore, Jaipur, Guwahati, Bhubaneswar, Nagpur, Kochi/
sustained revival path. With new variant being found, these are
Ernakulam, Indore, Hosur and Patna witnessed around 8.6 million
sq ft of absorption in 2021.
These cities are poised to gain further momentum in 2022
support and RBI is dealing rightly with it. This decision will have a
long-lasting impact in ensuring consistent growth to the entire real
and 2023 with e-commerce and 3PL firms capitalizing on crucial times which require high degree of monetary and fiscal
consumption-driven growth and pushing the demand for estate sector and its ancillaries.
warehousing space. The overall industrial and warehousing space
stock in tier I cities is at 266 million sq ft at the end of 2021 and is M3M INDIA TO DEVELOP 8 LAKH SQ FT OF RETAIL SPACE
expected to reach 304 million sq ft in 2022 and 345 million sq ft IN GURGAON
in 2023. Vacancy levels in tier I cities have increased from 8.4% in Realty developer M3M has acquired two land parcels in
2020 to 9.4% in 2021 and rental values remained stable in 2021 Gurgaon’s Sector 57, where it plans to develop 800,000 sq ft of
across the major cities with new projects delivered with improved retail space with an investment of `530 crore.
specifications and of high quality environmental, health & safety The 1.5- and 3.5-acre plots are on the main road and the
(EHS) standards. company will develop high-street as demand for open markets
The market witnessed 4,200 plus acres of manufacturing and has increased after the Covid-19 pandemic.
warehousing land transactions across tier I and II cities of which M3M India till date has delivered 3.9 million sq ft of retail space
51% was private land and 49% was government land. at Golf Course Road (extn.), making it the largest retail space
The industrial and logistics sector witnessed investments developer in Gurgaon.The company has plans to develop
exceeding $1.5 billion in 2021 making the sector the highest after 200,000 sq ft of retail space on the 1.5-acre land with an
the office sector to attract such investments. Continued interest investment of `180 crore. On the other plot, it will develop 600,000
in this asset class was due to its growth potential and stable sq ft, spending `350 crore. The company plans to deliver the
returns. The market is likely to witness continued and growing projects within two years of the launch. The real estate company
interest from investors in this asset class in 2022 as well. Besides, has delivered 10 residential and commercial projects in the last
strong macroeconomic fundamentals, government initiatives six months. So far, it has delivered 39 projects in a decade’s time.
th
favoring infrastructure development in transport, water, power and The company has recently delivered M3M 65 Avenue, M3M
communications and support to the growing sectors are likely to Corner Walk and M3M Prive’.
drive manufacturing and warehousing demand in India in 2022. M3M India is also aggressively working towards reducing its debt. It
Growing demand for warehouse space for manufacturing, has repaid a loan of `418 crore in the fourth quarter of fiscal 2020-
e-commerce and organized retail are likely to drive warehousing 21, exceeding its target of `400 crore, and the management
demand in 2022. The market is likely to see absorption in excess of is confident of becoming debt-free by clearing the balance
40 million sq ft and supply of over 45 million sq ft during the year. liabilities of nearly `500 crore by March 2022.

REALTORS WELCOME CONTINUATION OF LOW HOME AJMERA REALTY & INFRA INDIA LTD TO BUILD HIGH
LOAN INTEREST RATES IN LATEST RBI MPC END RESIDENCE IN JUHU, FOCUSING ON URBAN
The real estate sector did not receive anything significant in the REJUVENATION
recent RBI MPC, but realtors are taking comfort in the RBI’s decision Premium Realty Developer Ajmera Realty & Infra India Ltd.
to maintain the status quo in the repo rate. According to realtors, has recently executed development agreement to undertake
The apex bank is clearly confident about economic growth in redevelopment project of Fairyland Co-operative Housing Society,
the recent MPC. As the economy recovers from the pandemic, located at elite location of Juhu in Mumbai. Funded through a
the central bank has pushed for a steady policy environment. In mix of debt and equity, this project is estimated to accrute sales
FY22 and FY23, a progressive unwinding of liquidity, stable energy value of `150 crores. The 10,520 sq ft plot will act as an enabler
costs, and the government’s handling of the pandemic will be to the growth of quality housing, and will comprise of 15 flats in a
critical to growth. single tower with a total saleable area of approximately 30,000
The RBI maintained a low repo rate that would be helpful for sq ft. This real estate project will primarily focus on residential
the real estate sector. The real estate does not work alone apartments of 3 & 4 BHK flats.
but depends on the growth of all other sectors/industries. A large number of the old buildings in Mumbai are beginning
The accommodative stance that RBI has taken will boost the to see deterioration in their structures. There is an opportunity
economic environment and lead to a conducive situation for the to re-purpose the old residential projects into new real estate
real estate sector too. Looking at the increased demand for real assets with amenities and wellness quotient in accordance to
estate, the state governments will have to reduce stamp duty to the contemporary relevance. The redevelopment of Fairyland
be a gift to the homebuyers. Cooperative Housing Society will be conducted with an objective
Realtors feel that though real estate needs several measures, it to upscale the value and provide a residential asset class that

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