Best printers for Home

Best Mixer Grinder

Best wired Earphones

Best 43 Inch TV in India

Best Wi Fi Routers

Best Home Theatre in India

Smart Watch under 5000

Best Laptops for Education

Best Laptop for Students

Residential property demand in India at a 10-year high with mid and premium buyers on the rise

India sees demand for property worth over ₹1 cr drive record real estate sales

<ul><li>RBI has hiked interest rates for the second consecutive month to 4.9% to fight surging inflation.</li><li>The <keyword id="6543013" type="General" weightage="20" keywordseo="real-estate-sector" source="Orion">real estate sector</keyword>, which was witnessing good pickup in sales due to the low cost of financing, could be impacted by RBI’s rate hike move.</li><li>The increasing rate of interest will slowdown customer demand for <keyword id="35519" type="General" weightage="20" keywordseo="home-loans" source="Orion">home loans</keyword> going ahead.</li></ul>The 50 basis point interest rate hike by the Indian central bank was greatly anticipated. So much so that a few banks have started hiking their home loan rates ahead of it. “Just last night I got a message from Axis Bank that they are increasing my home loan's rate of interest to 7.1%. Today, after the new hike in RBI's repo rate, I guess it will jump to 7.6%. This was expected but it is still difficult to wrap my mind around it,” said Karuna Sharma, a Mumbai resident who took out a home loan at 6.7% last year. It’s not just those paying the EMI, but real estate developers too are worried about the extent of rate hike — which will affect the economics of <keyword id="185169" type="General" weightage="20" keywordseo="homebuyers" source="Orion">homebuyers</keyword>. For them, a 50 basis point hike is a large debt. “A hike was inevitable, but we are now entering the red zone. Any future hikes will reflect markedly on housing sales.The rate hike will push up home loan interest rates, which had already begun creeping upward after the surprise monetary policy announcement last month,” said Anuj Puri, chairman at Anarock property consultants. The segments that will be worst affected will be affordable and mid-segments, the consultant says. It will also affect the volumes at large and also reverse the trend of robust growth in real estate sales in the last two quarters. The number of residential launches have also grown up and that’s reflecting in higher sales — but it might soon go away. However, this interest rate hike will dent homebuyer’s confidence. “From a real estate perspective, this hike in the policy rate comes as a hurdle as home loan rates will increase, putting a dent on the homebuyer's sentiments. Any increase in the interest rate will further impact the costs of doing business,” said Ramani Sastri, chairman &amp; MD at Sterling Developers. Home sales also increased as several large companies asked their employees to return to work — which suffered a temporary setback due to the onset of the third wave of Covid-19, said a report by Kotak Institutional Equities. Now that Covid cases are also inching up and interest rates are also high, the trend might take a turn for the bad. The overall increase of about 1% in the cost of funds by the RBI over the last few months will impact the overall feasibility of large projects, infrastructure and long gestation projects. This development comes at a time when the real estate sector is dealing with its own raw material inflation. Since loans would now get costlier, they would have limited space to increase prices. “A rise in inflation can soften the stance on an otherwise robust real estate industry. Meanwhile, the government should also make concentrated efforts to reduce the spike in prices of raw materials such as cement, bricks, steel, etc. This will also give some relief to the sector,” said Suren Goyal, partner at RPS Group. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/finance/banks/news/indias-biggest-lender-sbi-has-a-new-managing-director-alok-kumar-choudhary/articleshow/92078145.cms">India’s biggest lender appoints Alok Kumar Choudhary as new MD soon after top brass rejig</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="http://www.businessinsider.in/finance/banks/news/fino-payments-bank-has-the-most-number-of-micro-atms-in-india/articleshow/92076552.cms">Not SBI, ICICI or even HDFC - this bank has the most number of microATMs in India</a>

Home loan rates enter red zone — will dent affordable and mid segment sales the most

<ul><li>The office sector accounted for 55% of <keyword id="6913470" type="General" weightage="80" keywordseo="Institutional-investments" source="Orion">institutional investments</keyword> followed by the <keyword id="156129" type="General" weightage="20" keywordseo="residential-sector" source="Orion">residential sector</keyword> at 22%. </li><li>Despite <keyword id="17087478" type="General" weightage="20" keywordseo="higher-lending-rates" source="Orion">higher lending rates</keyword>, <keyword id="421656" type="General" weightage="20" keywordseo="domestic-investors" source="Orion">domestic investors</keyword> showed strong interest in residential assets. </li><li>The larger markets of Delhi-NCR and Bengaluru attracted one-third of the total investments.</li></ul>During the January-March quarter of 2023, institutional investments in <keyword id="6354553" type="General" weightage="80" keywordseo="real-estate" source="Orion">real estate</keyword> remained robust, reaching a total of $1.7 billion. This positive trend was mainly driven by the office sector, which accounted for 55% of the total investment inflows, followed by the residential sector at 22%. The office sector saw a year-on-year increase of 41% in investment inflows, reaching $0.9 billion, largely due to a few significant deals. Given the promising growth potential in the office sector, major institutional investors are forming strategic partnerships to bolster their presence and expand their office portfolio in India. Says Piyush Gupta, managing director, capital markets and investment services, Colliers India, “Indian real estate investment cycle is now transitioning into a phase to witness secondary market transactions and may see more institutional owners partially or fully divesting portfolios. In the coming quarters, we shall see some large quality assets traded in the office and select logistics assets.” During the quarter, there was a significant increase in investments made by domestic investors, which quadrupled year-on-year. Despite higher lending rates, domestic investors showed strong interest in residential assets. In contrast, global investors preferred office and industrial assets, and accounted for 76% of the total investment inflows. The larger markets of Delhi-NCR and Bengaluru attracted one-third of the total investments, mainly due to increased activity in those areas. However, most of the inflows (63%) were from multi-city deals. <cmsannotation type="cmsannotation" annotationid="Investments in industrial assets surge" comment="subhead2" text="Investments in industrial assets surge">Investments in industrial assets surge</cmsannotation> During the first quarter of 2023, investment inflows in industrial assets increased by 20% compared to the previous year, reaching $216.3 million. This growth was primarily driven by foreign investments and can be attributed to the manufacturing opportunities, favourable government policies, and growth in e-commerce. In addition to investing in core assets, investors have also been allocating funds towards alternative assets. This trend has been on the rise, with $158.2 million being infused during the first quarter, which is four times more than the same period last year. The significant inflows in the alternatives segment were primarily due to a large deal in the hospitality sector. By diversifying their portfolios with alternative assets, many funds have been able to enhance their ability to grow their portfolios and remain resilient during these uncertain market conditions, the report said. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/tech/news/ai-powered-tool-uses-chatgpt-style-text-inputs-to-edit-images/articleshow/99377799.cms">This easy to use AI image editor turns text descriptions into edited images for free</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/entertainment/news/12-indians-are-on-the-jury-for-the-worlds-biggest-ad-festival-cannes-lions/slidelist/99376531.cms">12 Indians are on the jury for the world’s biggest ad festival - Cannes Lions</a>

Institutional investments in real estate remain robust in Q1 2023, on back of strong inflows into office sector: Colliers

<ul><li>Investment in residential real estate is a very different kettle of fish than end-user homebuying, says Prashant Thakur of Anarock group. </li><li>There has been an 11% appreciation in <keyword id="35507" type="General" weightage="20" keywordseo="property-prices" source="Orion">property prices</keyword> in the last five years. </li><li><keyword id="1128826" type="General" weightage="20" keywordseo="rental-yields" source="Orion">Rental yields</keyword> also have also gone up in top 7 cities in 2022, as offices and schools reopened. </li><li>All the factors that drove up capital appreciation and rental yields are firmly in place, says Anarock. </li></ul>A recovery in property prices and rise in rental yields in 2022 has made investing in residential properties attractive yet again, according to a report by Anarock, a real estate consultant. Last year, property prices went up by 6% across the top 7 cities. In contrast, property prices in 2021 remained either constant or appreciated by 3-4% maximum. Over a five-year period, however, an 11% property price appreciation was seen across the top 7 cities – rising from an average of ₹5,551 per sq ft. in 2018 to approximately ₹6,150 per sq ft in 2022. “Investment in residential real estate is a very different kettle of fish than end-user homebuying. When the intention is returns on investment, knowing how the housing asset class is performing is of prime importance. From a return-on-investment perspective, there are two buckets to check – capital appreciation and rental yields,” said Prashant Thakur, head of research at Anarock group, a real estate consulting firm. Housing sales have been slumping since 2017, which ended in huge inventory build up, which also muted growth in property prices. “Before the Covid-19 pandemic, property prices across cities remained range-bound due to a prolonged demand slowdown,” said Anarock. The report said that after the pandemic, demand soared across cities – as did developers’ input costs – causing prices to rise, particularly in 2021 and 2022. Branded developers who now account for most of the sales, have also <a href="https://www.businessinsider.in/business/news/people-ready-to-pay-15-20-premium-for-health-and-wellness-amenities-in-housing-properties-dhaval-ajmera/articleshow/95832362.cms">not shied away from price hikes</a> on the back of strong demand and rising construction costs. Bengaluru and Hyderabad saw the maximum 5-yearly increase – of 10% – in average property prices in the last five years in the top 7 cities, which include Delhi, Mumbai, Kolkata, Pune and Chennai. What’s your interest rate? The cost of owning has also gone up, especially since late last year. Since May 2022, the Reserve Bank of India has<a href="https://www.businessinsider.in/finance/news/rbi-hikes-interest-rates-by-25-basis-points-to-6-5-says-core-inflation-remains-sticky/articleshow/97716217.cms"> increased interest rates six times</a>, with the latest rate hike coming in February 2023. This takes the base interest rates to 6.5% For those who are keen on taking a loan to buy or invest in a housing property, it’s not going to be a cheap journey. Not only will they have to be ready for longer tenure loans, they might also look at <a href="https://www.businessinsider.in/personal-finance/news/how-you-can-handle-the-higher-home-loan-emi-burden/articleshow/97725816.cms">pre-paying certain amounts to </a>ensure the EMI burden isn’t too high. “The RBI will likely take a pause after a spate of interest rate hikes, so growth momentum will continue. 2023 will continue to be driven by end-user demand, but serious long-term investors will find the market dynamics more than favourable. Property prices are likely to rise by another 5-8% in the larger cities – this bodes well for investors focused on capital appreciation, but also means that rental demand will increase,” said Anarock. Rent versus EMI For those who are keen on paying their EMIs with the rent they make from a property, they must ensure that such properties are in urban areas. “The current rental demand will remain strong in all cities as urban work opportunities rise and more people migrate to cities,” the real estate consultancy said in a note. In 2020, rental yields had declined across most cities compared to the year before — as a natural fallout of the pandemic. As people worked from home and children attended schools from home too, many urban salaried individuals migrated to hometowns to save on rents. In 2021, rental yields rose but were still below 2019 levels. However, the year of 2022, with the post Covid reopening, led to a decent rise in rental yields – breaching pre-Covid levels. The sudden spurt in demand was driven by offices and schools reopening. According to a Magicbricks report, the average home rents went up by 13.5%% in 2022. The CEO of the property portal, Sudhir Pai, also <a href="https://www.businessinsider.in/finance/news/demand-supply-mismatch-pushes-home-rents-across-india-by-13-5-in-2022-magicbricks/articleshow/97804664.cms">predicted that rentals</a> could rise going ahead as prospective homebuyers may defer their purchase decisions to opt for rental homes due to rising interest rates and economic uncertainty. ‘Avoid under-researched investments’ “All the factors that drove up capital appreciation and rental yields are firmly in place, and the profitability potential for both investment rationales remains promising. There is little reason to be pessimistic in the current year, though under-researched investments and a short-term profit perspective must be avoided in 2023,” said Anarock. However, 2023 will face some headwinds in terms of economic slowdown and inflationary pressure, and this needs to be factored into all investment decisions that also includes real estate, the consulting firm says. It also advises that those who intend to invest should look for larger homes instead of small and compact homes – and the former will see more demand, thanks to the changing tastes of home buyers and tenants alike. SEE ALSO <a href="https://www.businessinsider.in/finance/news/budget-to-aid-flagging-affordable-home-segment-boosts-demand-with-infra-push/articleshow/97556770.cms">Budget to aid flagging affordable home segment, boosts demand with infra push</a> <a href="https://www.businessinsider.in/business/startups/news/catching-em-early-early-stage-startups-shine-as-their-investor-pool-widens/articleshow/97918089.cms">Catching ‘em early: Early-stage startups shine as their investor pool widens</a>

Buying a house as an investment? No need to be pessimistic says Anarock

<ul><li>2022 can be considered a watershed year for residential real estate across India’s top eight cities, said a <keyword id="6363605" type="General" weightage="100" keywordseo="knight-frank" source="Orion">Knight Frank</keyword> report. </li><li>Encouraged by good sales velocity, new project launches also grew 41% in 2022 as compared to the year before. </li><li>Real estate prices rose in the range of 4-7% across markets.</li></ul>The <keyword id="703971" type="General" weightage="20" keywordseo="real-estate-sales" source="Orion">real estate sales</keyword> in India’s top eight markets in 2022 rose 34% to a nine-year high of 312,666 units, as per a report named as India Real Estate: 2022 by consultancy firm <keyword id="151748" type="General" weightage="50" keywordseo="knight-frank-india" source="Orion">Knight Frank India</keyword>. The report added that 2022 can be considered a watershed year for the residential sector across the top eight cities of India. “The residential sector was an exceptional story of growth in 2022, as despite numerous inflictions, the pace of growth remained largely intact. This momentum is the result of a definitive shift in attitude in favour of home ownership that has ignited the latent demand,” said <keyword id="1417134" type="General" weightage="50" keywordseo="shishir-baijal" source="Orion">Shishir Baijal</keyword>, chairman and MD of Knight Frank India. Encouraged by this sales velocity, launches also saw a commensurate rise – registering a 41% growth in 2022 as compared to the year before. NCR region saw the most high growth in real estate sales – at 67%, followed by Ahmedabad at 58% and Bengaluru by 40%. Only sales in Kolkata registered a fall of 10% in 2022. Baijal said that the sales momentum has remained despite worsening affordability on account of rising home loan interest rates and moderate price rises. Real estate prices grew in the range of 4-7% across markets in 2022. “We estimate the pace of sales to remain unchanged in the new year, as most parameters are expected to remain favourable, including levels of inflation that is expected to start stabilising by mid of 2023,” he added. <table style="border-width: initial; border-style: none; table-layout: fixed; width: 468pt;"></colgroup><tbody><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">City </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Price movement in 12 months </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Price movement in 6 months </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Mumbai </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">7% </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">3% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">NCR </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">7% </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">1% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Bengaluru </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">7% </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">3% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Pune </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">7% </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">1% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Chennai </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">6% </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">1% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Hyderabad </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">6% </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">1% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Kolkata </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">4% </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">0% </td></tr><tr><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">Ahmedabad </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">4% </td><td style="border-left:solid #000000 1pt;border-right:solid #000000 1pt;border-bottom:solid #000000 1pt;border-top:solid #000000 1pt;vertical-align:top;padding:5pt 5pt 5pt 5pt;overflow:hidden;overflow-wrap:break-word;">1% </td></tr></tbody></table>Source: Knight Frank <cmsannotation type="cmsannotation" annotationid="Gross leasing of office spaces was also high" comment="subhead" text="Gross leasing of office spaces was also high">Gross leasing of office spaces was also high</cmsannotation> As offices have opened up after two long years, the overall gross leasing activity in office spaces increased by 36% YoY in 2022 as compared to 2021. The report said that 2022 is historically the second-best year for office transaction volume, as it achieved a peak in 2019. This was in spite of global economic uncertainty seen in the last quarter of 2022. “The office market has made a significant recovery in 2022 despite concerns of a looming recession in the developed economies. The evolution of the office as an enabler of productivity continued with more corporations recalling their staff to office,” Baijal further said. New completions in the office space segment were also high and saw an upswing by 28% in 2022. Bengaluru, Hyderabad and NCR were the top markets which added more office spaces. “For the first time in over a decade we have seen simultaneous growth in all major real estate segments. Office, residential, warehousing and retail, all registered significant increase in activities in 2022,” Baijal said. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/startups/news/bharatpe-gets-in-principle-nod-from-rbi-to-operate-as-online-payment-aggregator/articleshow/96886390.cms">BharatPe gets in-principle nod from RBI to operate as online payment aggregator</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/telecom/news/tariff-hike-led-growth-5g-key-events-for-telecom-in-2023-decisive-year-for-vil-clsa/articleshow/96886908.cms">Tariff hike-led growth, 5G key events for telecom in 2023, decisive year for VIL: CLSA</a>

Residential sales hit 9-year high in 2022, second best year ever for office leasing: Knight Frank

<ul><li>The enhanced allocation for PM Awas Yojana is a boost for affordable housing, which was flagging, says <keyword id="6420759" type="General" weightage="50" keywordseo="anuj-puri" source="Orion">Anuj Puri</keyword>, chairman of Anarock Group. </li><li>The new tax regime forgoes deductions on housing loans, and cannot be positive for home buying sentiment, says <keyword id="16333859" type="General" weightage="50" keywordseo="akash-pharande" source="Orion">Akash Pharande</keyword>, managing director of Pharande Spaces. </li><li>The Budget gave a boost to rail and air infrastructure, which most experts hope will be a catalyst for real estate demand. </li></ul>This Budget, the government has given a much expected boost to affordable housing – the only segment in the real estate market that did not gain from the pandemic boom. The finance minister <keyword id="129243" type="General" weightage="50" keywordseo="nirmala-sitharaman" source="Orion">Nirmala Sitharaman</keyword> increased allocation to PM Awas Yojana (PMAY), the scheme earmarked for it, by a massive 66% to over ₹79,000 crore. “This (affordable housing) supply will definitely gain momentum along with the Urban Infrastructure Fund and boost development in the surrounding areas of MMR (Mumbai Metropolitan Region) as well as Tier 2 and Tier 3 cities. Ultimately, this will bring in a good supply of affordable housing and drive up the demand in terms of PMAY, thus overall benefitting the housing sector,” Dhaval Ajmera, director at Ajmera Realty &amp; Infra India told Business Insider India. According to an Anarock Consumer Sentiment Survey, in 2022, the demand for affordable housing sunk precariously. “The enhanced allocation for PM Awas Yojana is certainly a boost for affordable housing, which was flagging due to increased input costs and also because the buyers in this segment, mostly from the unorganised sector, were still reeling under the impact of the pandemic,” said Anuj Puri, chairman of Anarock Group. Only 26% of property seekers were looking for ‘budget’ properties that cost below ₹40 lakh, falling from 39% in 2018. All other properties, including premium and others, saw robust demand as well as supply during the year. “This move will give impetus to affordable housing in the country by providing a better housing subsidy to economically weaker sections and lower-income groups,” said <keyword id="16333860" type="General" weightage="50" keywordseo="devanshu-bansal" source="Orion">Devanshu Bansal</keyword>, director, UK Realty. Deducing the effect of the new tax regime The finance minister has made the new tax regime very attractive in Budget 2023-24, by doing away with income tax for those earning below ₹7 lakh and reducing the number of tax slabs. However, the new regime which will now also be the default regime, does not provide any deductions for interest paid on housing loans. “One of the major changes is the introduction of a new tax regime, which offers lower tax rates for individuals who forgo exemptions and deductions. However, this regime also foregoes the previous deductions on housing loans - one of the most popular incentives for middle-class homebuyers. This cannot be seen as positive for homebuying sentiment,” said Akash Pharande, managing director of Pharande Spaces. On the other hand, <keyword id="16333858" type="General" weightage="50" keywordseo="suneel-dasari" source="Orion">Suneel Dasari</keyword>, founder of EZTax.in tells Business Insider India that savings in general are higher in the new tax regime, even without deductions. Ram Raheja, managing director at S Raheja Realty agrees and says, “The personal tax regime revisions will result in a rise in disposable funds due to lower deductions.” The extra income in the hands of the taxpayers is good news for the realty sector as real estate is generally the preferred investment vehicle. “Surplus of liquidity in the hands of the taxpayers will aid in more real estate buying because of their preference for real estate over other asset classes. This move will boost the demand and gain momentum for the real estate industry, specifically in the affordable and mid-luxury segments,” says Ajmera. Luxury homes &amp; capital gains tax The FM capped the deductions that can be availed on capital gains arising from sale of residential houses at ₹10 crore. That means if a home owner earns over this limit via a home sale, it would be taxed. This won’t have too much impact, experts say. “The intention is to deter tax exemption for extremely high-value transactions in the residential space. However, we believe that most of the transactions in the luxury segment would fall within the ambit of the ₹10-crore cap,” says Anshuman Magazine, chairman &amp; CEO-India, South-East Asia, Middle East &amp; Africa, CBRE. For this category of buyers – that’s high-networth individuals (HNIs) and ultra HNIs – there is much to be gained in terms of a 4% reduction in the overall tax rate that was announced in the Budget for the highest tax slab, leaving more liquidity in their hands, Magazine adds. Pharande too says that while this is a dampener, those buying or upgrading to luxury homes primarily for lifestyle improvement would not be too concerned. “I don't see the negative impact spreading much beyond MMR and Delhi,” he says. Puri and Pharande say that there is nothing specific in the budget that would boost consumer sentiment towards the sector in a high interest rate regime where housing prices too are on the upswing due to rising input costs. The Budget gave a boost to infrastructure with announcements like the highest ever railway outlay at ₹2.4 lakh crore; increased regional connectivity via 50 additional airports, helipads, water aero drones and advanced landing grounds – all of which will boost affordable regional connectivity. This, most experts hope, will be a catalyst for real estate demand. SEE ALSO <a href="https://www.businessinsider.in/budget/news/indias-rich-to-shell-out-more-for-luxury-cars-global-travel-but-may-have-more-to-invest/articleshow/97551072.cms">India’s rich to shell out more for luxury cars, global travel but may have more to invest</a> <a href="https://www.businessinsider.in/budget/news/budget-2023-24-nirmala-sitharaman-speech-highlights-and-updates/articleshow/97512649.cms">Budget 2023-24 highlights: Those with income below ₹7 lakh a year need not pay income tax</a>

Budget to aid flagging affordable home segment, boosts demand with infra push

<ul><li>A repo <keyword id="6451065" type="General" weightage="20" keywordseo="rate-hike" source="Orion">rate hike</keyword>, which was widely expected by the market, could have pushed <keyword id="6419450" type="General" weightage="20" keywordseo="home-loan-rates" source="Orion">home loan rates</keyword> even higher. </li><li>In the last three quarters, home loan rates have gone up by 40-50% from their historical lows. </li><li>RBI’s decision particularly gives relief to affordable and mid-segment homebuyers. </li></ul>The real estate sector has welcomed the Reserve Bank of India’s (RBI’s) decision to keep the <a href="https://www.businessinsider.in/finance/news/rbis-monetary-policy-committee-keeps-repo-rate-unchanged-at-6-5/articleshow/99284354.cms">key policy rate unchanged</a> on Thursday. The move will also bring cheer to home loan borrowers – both old and new – as home loan rates have been hovering around 9%, following the central bank’s six consecutive rate hikes totaling 250 basis points since May last year. “The RBI MPC (Monetary Policy Committee) decision to keep a pause on rate hike is positive for the housing market as it reduces the uncertainty and volatility associated with interest rate fluctuations. The home loan interest rates have gone up from 6.5% to around 8.75% with a series of rate hikes in the past and the move to pause will give a temporary reprieve and support the existing growth momentum in the real estate sector,” said Atul Monga, chief executive officer and co-founder, Basic Home Loan. Another rate hike, which was expected by the market, could have pushed home loan rates into double digit trajectory. Ramani Sastri, chairman and managing director of Sterling Developers, said that another increase in policy rates could have sent interest rates on home loans to an all-time high – impacting buyer sentiments and affordability. After multiple rate hikes in six months, experts had said that the room to keep home loan EMIs unchanged for existing borrowers by <a href="https://www.businessinsider.in/business/news/how-to-ensure-your-home-loan-is-paid-off-before-retirement/articleshow/99106468.cms">increased tenure had been exhausted</a> – burdening end users. “The past three quarters have seen a gradual rise in home loan interest rates, causing a significant impact on borrowers as rates have surged to over 9%, marking a 40-50% increase from their historical low,” said Pradeep Aggarwal, founder and chairman, Signature Global (India). Q1 home sales hold steady amid global turmoil In spite of the multiple rate hikes, residential home sales continued its winning streak in the first quarter of 2023, after hitting a nine-year high in 2022. As many as 1.13 lakh units sold in Q1 2023 across the top seven cities, says Anarock data — indicating a 14% yearly rise. However, going ahead, the sector had been worried about the impact of rising property prices due to input costs, and also multiple layoffs across large and small corporates affecting homebuyer sentiment. "Given the potential adverse impact of a hike in repo rate and its ripple effect on both housing demand and supply, we, at CREDAI, are extremely pleased and welcome the central bank’s decision,” said Boman Irani, president-elect, CREDAI National. Affordable loans, affordable homes Even as overall home sales hit new highs, the affordable housing segment never recovered after being hit badly by the pandemic. “The RBI’s decision to keep the repo rates unchanged comes as a welcome respite to homebuyers. This particularly gives relief to affordable and mid segment homebuyers who feared a possible rate hike today, making property buying via home loans even harder. As is, affordable housing has been under stress since the pandemic,” said Anuj Puri, chairman of Anarock group. Affordable homes, which are defined as units priced under ₹40 lakh, saw their share in overall sales dip to 26% in 2022, as compared to 38% in 2019. In Q1 of 2023, their share slipped to 20%, says Anarock. The pause in rate hike, alongwith the government hiking its outlay for the Pradhan Mantri Awas Yojana (PMAY) programme in 2023-24 Budget will bode well for demand in affordable housing, says Irani. The RBI marginally revised the GDP growth projections for FY24 from 6.4% to 6.5% – this too will bode well for the sector. “We foresee a resilient upward demand trajectory going forward. The momentum in the market is currently driven by the need to upgrade to a better living and the admiration of real estate as a weatherproof asset class, which will continue during the year,” says Nitin Bavisi, chief financial officer, Ajmera Realty and Infra India. Going ahead, the sector is also seeking more incentives to drive more demand. SEE ALSO <a href="https://www.businessinsider.in/business/news/how-to-ensure-your-home-loan-is-paid-off-before-retirement/articleshow/99106468.cms">Rising interest rates hitting you hard? Here’s how to ensure your home loan is paid off before retirement</a> <a href="https://www.businessinsider.in/finance/news/rbis-monetary-policy-committee-keeps-repo-rate-unchanged-at-6-5/articleshow/99284354.cms">RBI’s Monetary Policy Committee keeps repo rate unchanged at 6.5%, for now</a>

Monetary Policy Impact: RBI’s pause to support real estate demand - particularly affordable segment

<ul><li>Real estate experts say that housing demand will remain strong as long as home loan interest rates remain within single digits. </li><li>Affordable and mid-range housing are the most sensitive to prices, and the <keyword id="6451065" type="General" weightage="20" keywordseo="rate-hike" source="Orion">rate hike</keyword> might affect some slowdown in this segment. </li><li>Experts do not expect any significant impact on the high-end and luxury housing demand. </li></ul>The Indian housing market, which has picked up pace since the pandemic, might see a slowdown in growth momentum as the central bank raised interest rates for the fifth time this year. Prior to the beginning of the rate hike cycle in May, the base interest rate was at 4% — a factor that helped revive housing sales during the pandemic. This combined with the lockdown-fuelled love for home ownership saw a revival in housing demand. However, the trend might be cooling off, say experts, as they expect lenders to transmit the rise in interest rate to home loan consumers. After the <a href="https://www.businessinsider.in/finance/news/rbi-hikes-repo-rate-by-35-bps-taking-rates-to-a-high-of-6-25/articleshow/96045841.cms">35-basis point rate hike on December 7, </a>the repo rate now stands at 6.25%. “Currently, the rate is at its highest level since August 2018. Following four consecutive rate hikes this year, the repo rate hike will undoubtedly raise home loan interest rates. The impact on housing will be moderate as long as interest rates remain in the single digits (mainly within 8.5%). Residential sales volumes will be impacted in the months to come if they breach this point - especially in the affordable and lower mid-range housing segments,” said Samir Jasuja, founder and managing director, PropEquity – a real estate research, data and analytics company. Moreso, <a href="https://www.businessinsider.in/personal-finance/news/be-prepared-to-pay-higher-emis-no-room-for-loan-tenor-increase-after-rbis-latest-rate-hike/articleshow/96052276.cms">personal finance experts believe that the last four hike</a>s have exhausted the legroom to increase home loan tenures without an impact on EMIs. This time around, EMIs will be higher making home ownership an expensive proposition. Piyush Gupta, managing director, capital markets and investment services at Colliers India, an investment management company also said that affordable and mid-range housing are the most sensitive to prices. “We might see some slowdown in the short term, with an increase in <keyword id="11324451" type="General" weightage="20" keywordseo="housing-loan-rates" source="Orion">housing loan rates</keyword>. We do not expect a significant impact on the high-end and luxury housing demand,” said Gupta. Housing loan rates within single-digits Amit Goyal, CEO of India Sotheby's International Realty said that home loan interest rates increased by 150 basis points after the rate hikes. In spite of it, demand for residential property across the top seven cities has been very strong, he says. “We believe this momentum should continue till the home loan rate remains in the single digits. We just hope that strong GDP growth, a steady jobs scenario and an elevated capex investment cycle will keep demand for real estate intact,” says Goyal. Anuj Puri, chairman of Anarock Group too believes that as long as interest rates remain below 9.5%, it will only have a moderate impact on housing sales. “If they breach this point, we will see some real pressure on residential sales volumes in the months to come – especially in the affordable and lower mid-range housing segments,” he added. Over the last few quarters, as housing sales increased along with new launches, property rates too have been going up. According to a CREDAI – Colliers - Liases Foras report, <keyword id="35507" type="General" weightage="20" keywordseo="property-prices" source="Orion">property prices</keyword> rose 6% in the top eight cities in the September quarter compared to last year. The drivers for the price hikes are inflation and hike in input costs. The Reserve Bank of India Governor Shaktikanta Das also said that while the <a href="https://www.businessinsider.in/finance/news/rbi-downgrades-fy23-gdp-growth-projections-to-6-8-percent/articleshow/96047963.cms">battle against inflation was still on</a>, inflation is expected to come in at 6.6% in the third quarter of the current financial year, and to slow down to 5.9% in the fourth quarter. This is giving some comfort to real estate players. “The gradual decline in inflation is also expected to mitigate the input cost pressures partially and provide legroom for developers to offer competitive-value homes to buyers and keep home purchase affordability within range,” says Samantak Das, chief economist, and head of research and REIS, India, JLL. SEE ALSO <a href="https://www.businessinsider.in/personal-finance/news/be-prepared-to-pay-higher-emis-no-room-for-loan-tenor-increase-after-rbis-latest-rate-hike/articleshow/96052276.cms">Be prepared to pay higher EMIs: No room for loan tenor increase after RBI’s latest rate hike</a> <a href="https://www.businessinsider.in/finance/news/rbi-hikes-repo-rate-by-35-bps-taking-rates-to-a-high-of-6-25/articleshow/96045841.cms">RBI hikes repo rate by 35 bps, taking it to 6.25% – Das says bank has ‘Arjuna’s eye’ on inflation</a>

Rate hike to affect housing demand in the mid and affordable segments, say experts

<ul><li><keyword id="15763923" type="General" weightage="20" keywordseo="Affordable-housing-supply" source="Orion">Affordable housing supply</keyword> reduced to 21% in 2022 as compared to 40% in 2019 in the <keyword id="35288" type="General" weightage="20" keywordseo="real-estate-market" source="Orion">real estate market</keyword> in India. </li><li>The <keyword id="4695749" type="General" weightage="80" keywordseo="anarock" source="Orion">Anarock</keyword> data projects that the total sales in the top 7 cities will exceed 3.6 lakh units in 2022, which is more than the 2014 peak sales of 3.43 lakh units. </li><li>Housing sales and new launches in the Jan-Sept period this year also surpassed the 2019 record with 2.73 lakh units sold and new launches at 2.65 lakh units.</li></ul>The year 2022 saw a robust growth in the housing and residential segment that helped accelerate the recovery in the overall real estate market from the pandemic-induced slump. And it was the mid-range, premium and luxury segments that led this growth while it was a lean period for affordable homes sales. As per Anarock data, in the first nine months of 2022, affordable housing supply reduced to 21% of the 2.65 lakh units launched in the top 7 cities during this period. In contrast, in the pre-Covid year of 2019, this segment had the highest supply share with 40% of the 2.36 lakh units launched in the top 7 cities that year. “Affordable housing had a lean time, with more buyers in this segment going into wait-and-watch mode; unsurprisingly, new supply in this category reduced markedly,” said Anuj Puri, chairman of <keyword id="6596330" type="General" weightage="50" keywordseo="anarock-group" source="Orion">Anarock Group</keyword>. The data further projects that the total sales in the top 7 cities will exceed 3.6 lakh units in 2022, which is more than the 3.43 lakh units sold in the previous peak year of 2014. Housing sales and new launches in the Jan-Sept period this year also surpassed the 2019 record with 2.73 lakh units sold and new launches at 2.65 lakh units, according to the Anarock data. In 2019, about 2.61 lakh units were sold, with new supply at 2.34 lakh units. Low home loan rates for most of the year and the pandemic-driven need for homeownership among people drove the growth of the real estate market. The year 2022 also saw a 5-7% rise in property rates after almost 2-3 years – however, neither this nor the increased home loan rates post the RBI rate hikes beginning May hindered the sales of residential properties. <cmsannotation type="cmsannotation" annotationid="Tier 2 and 3 market also recorded strong growth" comment="subhead" text="Tier 2 and 3 market also recorded strong growth">Tier 2 and 3 market also recorded strong growth</cmsannotation> Anarock’s consumer sentiment survey released in September found that Tier 2 &amp; 3 cities are the first preference for 25% of property seekers looking to invest in 2023. Lucknow and Ahmedabad, among all Tier 2 and 3 cities, recorded fairly decent sales and new launches in the residential segment this year.. “Many Tier 2 &amp; 3 cities are the new growth engines, where a lot of the country's real estate action will take place in the coming years. Their top favorites include Ahmedabad, Jaipur, Chandigarh, Nashik, Kochi, and Lucknow, where low property prices and improved infrastructure facilities are powerful investment magnets,” Puri further said. As per Anarock, thanks to robust sales and restricted new supply in 2022, unsold inventory in NCR reduced to 1.33 lakh units by Q3 2022-end – the lowest since 2013, when it was 1.51 lakh units. Moreover, new launches in 2022 were dominated by top developers like DLF, Godrej, M3M, Puri Constructions and Mahagun, which also helped boost consumer confidence and increase sales. <cmsannotation type="cmsannotation" annotationid="Rental property demands surged again" comment="subhead" text="Rental property demands surged again">Rental property demands surged again</cmsannotation> With more companies opening up their offices, the demand for rental properties saw a surge again. According to Puri, the rental market demand not only breached but surpassed pre-pandemic levels, rising 20-25% against pre-pandemic levels on average, with some popular societies even registering an over 30% jump in demand. Grade A developers – who are well-known developers with reputed clients like MNCs and high-networth individuals – had more market share in 2022. About 60% of the 2.65 lakh units launched in the first three quarters of the year was by branded developers - who also sold more than 55% of the 2.73 lakh units purchased in this period. Plotted developments also gained momentum in 2022, especially in south Indian cities of Bengaluru, Chennai, and Hyderabad. “Plot buyers have taken a futuristic investment perspective and are betting on the superior and safer long-term ROI (return on investment) of land over built-up properties. Many large developers catered to this demand in 2022,” said Puri. Suburbs also were also popular among homebuyers. Anarock’s consumer sentiment survey found that over 42% of the consumers continued to prefer peripheral/suburban areas where they can buy bigger homes with better lifestyle amenities at lower prices. Only 10% of respondents still chose walk-to-work city center locations, and only 23% were within the city limits, as per the Anarock consumer sentiment survey. SEE ALSO: <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/startups/news/med-tech-startup-that-can-detect-early-stage-dementia-raises-2-13-million/articleshow/96169184.cms">Med tech startup that can detect early stage dementia raises $2.13 million</a> <a target="_blank" class="c-link c-message_attachment__title_link" href="https://www.businessinsider.in/business/news/bharatpe-ceo-enjoying-life-with-money-i-raised-but-fails-to-grow-company-says-ashneer-grover/articleshow/96165371.cms">BharatPe CEO enjoying life with money I raised but fails to grow company, says Ashneer Grover</a>

Mid-range, premium housing demand drive India’s residential market - Sales in 2022 to exceed 2014 peak

<ul><li>Fabelle launched its first chocolate boutique in Bengaluru and has today expanded to 15 boutiques across top 6 metros.</li><li>Its aim is now to grow its reach further in both the luxury and the <keyword id="6037459" type="UNKNOWN" weightage="20" keywordseo="mass-premium-segment">mass premium segment</keyword>. It is ensuring it is available at all touchpoints to ensure a great experience for its consumers.</li><li> In a market where well-established players are also putting their best foot forward to woo consumers with their mass premium segment offerings, <keyword id="8251479" type="UNKNOWN" weightage="20" keywordseo="Anuj-Rustagi">Anuj Rustagi</keyword>, Chief Operating Officer, Chocolate, Coffee, Confectionery and New Category Development - Foods, <keyword id="186707" type="COMPANY" weightage="20" keywordseo="ITC-Limited">ITC Limited</keyword>, tells us Fabelle's strategy to bite a bigger piece of the Indian market. </li></ul>It was back in 2016 that ITC ventured into the premium chocolates segment with the launch of Fabelle. The brand had been in the making for close to 10 years. To provide an ‘immersive, participative and engaging chocolate experience to consumers’, the brand launched its first chocolate boutique, a global format to retail chocolates in the country in the same year, starting with Bengaluru. The brand now has expanded to 15 boutiques across top 6 metros. Within the next two years, Fabelle extended its offerings to the mass premium segment. This move was in line with the brand’s endeavour to take its offerings to a wider audience. It was then that it made itself available at premium retailers like Nature’s Basket, Foodhall, Spencer’s etc. To further expand its reach, the brand has invested Rs 100 crore on a manufacturing facility. The brand is now on a mission, to bite a bigger piece of the country’s chocolate market that has well-established players like Mondelez, Nestle, and now even Amul putting their best foot forward with the launch of their premium chocolate ranges. Over the past few years, the brand has been using the power of digital to its advantage, to reach out to its target audience. <keyword id="441877" type="PERSON" weightage="20" keywordseo="direct-marketing">Direct marketing</keyword> and word-of-mouth have helped it create a loyal base. We recently caught up with Anuj Rustagi, Chief Operating Officer, Chocolate, Coffee, Confectionery and New Category Development - Foods, ITC Limited, to understand how the brand is navigating a segment that has some strong players already and to understand its strategy to growing its footprint in the market. Excerpts: Q) Walk us through brand Fabelle’s journey from 2016 till today. What kind of growth have you witnessed and how do you plan to reach out to more consumers? Considering the scope and potential to grow the Indian chocolate market, we launched Fabelle in 2016. We launched our first chocolate boutique, a global format to retail chocolates in the country in 2016, starting with Bengaluru and has expanded to 15 boutiques across top 6 metros. After building credibility and consumer trust in the premium luxury chocolates segment, we extended our offerings to the mass premium segment in 2018 by taking our offerings to premium retailers in the country like Nature’s Basket, Foodhall, Spencer’s et al. We also invested Rs 100 crore to set up a greenfield state-of-the-art manufacturing facility in Haridwar with a capacity of 5,000 tonnes per annum. Further to this, we had also set up a cold chain in our warehouses, redistribution centers and also at retail touch points, to deliver our chocolates in the most pristine condition to our consumers. The company invested in the latest global cooling technologies and real-time digital monitoring systems to ensure that the cold chain is efficient and always functioning, so that there’s no product quality deterioration. Once the required logistics were in place, we leveraged ITC’s strong distribution network to expand our retails touch points and are currently available via 10000+ retailers in India. Currently, we are also amplifying our reach via the digital ecosystem through food delivery service apps like Swiggy, Zomato, ITC eStore, Amazon. Our business has grown much ahead of the category and our internal forecast. Q) Do you plan to come up with more 'massy' products with lower price points? We entered the mass premium/FMCG segment in 2018 with two unique formats – Fabelle Choco Deck and Fabelle Soft Centres. Earlier this year, riding at the back of encouraging consumer response which we received after launching Ruby Gianduja in the luxury segment, we extended the experience of Ruby Chocolate to the larger consumer base by launching Fabelle Choco Deck Milk &amp; Ruby Chocolate Our products are already available in 10 SKUs at popular price points, ranging between Rs 25 to Rs 350. Going forward, Fabelle will continue to focus on creating one-of-a-kind chocolate experiences in India that are highly aspirational and in line with global brands and possibly better. We will focus on expanding the presence of luxury segment across all relevant touchpoints with the right range and also build a portfolio of products that span not only in the luxury segment but also in premium mass retail segments under Fabelle. Q) Fabelle has a website but it's more of a discovery platform. Are there plans to start selling on fabelle.in too or will you continue only selling on other ecommerce platforms? Indeed Fabelle’s website is a discovery platform but I our offerings across the luxury and mass premium range are already being retailed through our own D2C ecosystem, which consists of a takeaway menu, ITC eStore, ITC Hotels App or ITC Store on Wheels for purchase. We're also utilizing the traditional e-commerce channels like Amazon, Big Basket, Flipkart to make the luxury range available and delivered to consumers. Emerging channels like EasyDiner, Dunzo etc are also being explored to enable people to buy chocolates. Q) You launched your first brand campaign earlier this year, almost 4 years after launching the brand. What kept you away from traditional advertising till now? Our media choices have been to sharp target our consumers in key geographies using digital as a key medium which also enables consumers to get more information and engage with brands directly, especially in the luxury segments. Besides digital, positive word-of-mouth has been a key part of our marketing communication mix in building the brand’s familiarity amongst the larger audience, alongside our new, trend setting launches like Ruby Gianduja, Trinity Truffles, Independence Day and work with chocolatiers like Billie Mckay, Sarah Todd etc which has given Fabelle the desired visibility. Direct marketing is also a key lever to engage with UHNI and HNI consumers and creating customised experiences in gifting and for self-consumption. As our brand presence extended across segments, across price points, we felt it was an appropriate time to include TV in marketing mix for our mass premium range while continuing focus on digital and earned media. Q) Other players are also strengthening their offerings in the premium <keyword id="6110187" type="UNKNOWN" weightage="20" keywordseo="chocolate-segment">chocolate segment</keyword>. How have you been able to create a niche for yourself? Earlier, Indian consumers purchased imported brands that were available via alternate channels in a range of retail outlets across key metro cities as no major global premium chocolate brand operated officially in India. Erratic supplies, lack of product quality, authenticity, product range suited to Indian consumers, variety for self-consumption and gifting were some of the major concerns of Indian consumers with regards to the global brands available in India via alternate channels. International travel (prior to the pandemic), exposure to global food trends via social media, food blogs and sites, food programs (Masterchef) and an increase in purchasing power are redefining lifestyle choices of the upper middle class and elite consumers. Hence, India has become a key market for major luxury brands leading to a rapid rise in demand for gourmet food and the same is also seen in the chocolates category. Gourmet experiences in chocolates are defined as handcrafted, using finest ingredients, crafted by experts and those that engage all senses. Brand imagery has also become important as increasingly prosperous Indians are choosing brands that are in line with their aspirations of consuming premium global products/offerings while gifting has also emerged as an important trend in premium chocolates segment. With all of the above, consumers were also seeking an immersive experience. To address these need-based gaps, we launched our first chocolate boutique in 2016 which has now expanded to 15 boutiques. We are now looking at attractive markets like Amritsar to further extend our presence. The overall experience in the Chocolate Boutique led by Fabelle Master chocolatiers and boutique associates is aimed to create an engaging experience that not only makes a range of chocolate products available to consumers but also an experience that helps consumer know more about chocolates like the origins, chocolate processing techniques and appreciating the nuances of a luxury chocolate experience. Furthermore, we are the only chocolatier to offer 60+ diverse range of chocolate experiences through 5 varieties of globally popular hand-crafted creations. We are the only brand to retail all 5 types’ chocolates in the world - White, Milk, Dark, Ruby and a new type ‘Dark Milk’. Q) The premium chocolate segment is still a very small part of the chocolates business. How are you wooing more consumers, and increasing your market share? In the luxury segment, during the pandemic, we shifted our presence from physical to digital platforms to take luxury closer to consumers to wish to indulge within the safe confines of their homes. We enabled that shift through presence across digital mediums, e-commerce channels, food delivery sites like Swiggy and Zomato, enabled take-aways from our boutiques and tele-ordering. Our unique Fabelle on Wheels also visits residential societies for consumers to make direct purchase. Besides this, we have also focused on gifting during Diwali for Corporates and individuals alike with launch of innovative products like Continents Desserts Collection, Indian Desserts Collection etc. As normalcy gradually resumes, we have also opened operations at our boutiques while ensuring 100% adherence to safety and hygiene standards. In the FMCG space, we are expanding our distribution reach to all key touchpoints and ensure that the right price product is placed at the right channel. Product offerings which are at price points of Rs 25, Rs 40 and Rs 45 are available in small format outlets as well whereas in the large format outlets we operate in the price points of Rs 70 to Rs 350. As our brand presence extended across segments, across price points, we felt it was an appropriate time to include TV in marketing mix for our mass premium range while continuing focus on digital and earned media. Q) What is your growth strategy going ahead? Do you plan to take your brand to smaller cities? At the moment, we retail out of six major cities in India including Bangalore, Mumbai, Delhi, Kolkata, Hyderabad and Chennai in the luxury and the mass premium segment. Currently, our efforts are focused towards making our chocolates more accessible to consumers based out of these markets and we also plan to expand our presence in other Tier 1, Tier 2 &amp; rural markets.

You Searched For "residential segment" and got 11 results

Residential property demand in India at a 10-year high with mid and premium buyers on the rise

Anagh Pal

India sees demand for property worth over ₹1 cr drive record real estate sales

Anagh Pal

Home loan rates enter red zone — will dent affordable and mid segment sales the most

Bhakti Makwana

Institutional investments in real estate remain robust in Q1 2023, on back of strong inflows into office sector: Colliers

Anagh Pal

Buying a house as an investment? No need to be pessimistic says Anarock

Katya Naidu

Residential sales hit 9-year high in 2022, second best year ever for office leasing: Knight Frank

Vaamanaa Sethi

Budget to aid flagging affordable home segment, boosts demand with infra push

Katya Naidu

Monetary Policy Impact: RBI’s pause to support real estate demand - particularly affordable segment

Katya Naidu

Rate hike to affect housing demand in the mid and affordable segments, say experts

Katya Naidu

Mid-range, premium housing demand drive India’s residential market - Sales in 2022 to exceed 2014 peak

Vaamanaa Sethi

How digital, direct marketing and word-of-mouth has helped Fabelle reach out to a targeted audience and expand its presence in 4 years

Samarpita Banerjee

Popular Keywords

Buying Guides