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Could the Indian Real Estate Market Face a Crisis Similar to China’s Evergrande?

Real Estate

Could the Indian Real Estate Market Face a Crisis Similar to China’s Evergrande?

On January 29, a Hong Kong court ordered the dissolution of the financially worried Chinese real estate behemoth Evergrande. This move is anticipated to have an effect on China’s financial structure as well as the trust of transnational investors. Since the collapse of Structure Leasing & Financial Services, which redounded in the extreme rise ofnon-banking fiscal associations( NBFCs), the Indian real estate request has seen substantialchange.Real estate experts assert that there are parallels and contrasts between the Evergrande issue and the structure Leasing & Financial Services( IL&FS) reproach.  Both have mischievous impacts on the commerce in which they operate, including inordinate debt and poor plutocrat operation. still, due to public enterprise and the creation of the Real Estate Regulatory Authority, India’s real estate assiduity recovered more gradationally than China’s did.

Government measures and legislative modifications like RERA have assisted India’s real estate market in gradually recovering from the IL&FS catastrophe. China’s real estate industry is currently cooling off, but despite enduring problems like cash scarcity and regulatory obstacles, the Indian sector is holding up better. Because of its size and exposure to international loans, Evergrande’s problem has broader global implications than the IL&FS crisis, which was mainly restricted to India, according to Shobhit Agarwal, MD and CEO of ANAROCK Capital.
Evergrande issue has wider global ramifications In spite of persistent difficulties including funding shortages and regulatory barriers, India’s real estate sector is more stable than China’s, which is currently slowing down.While the IL&FS crisis was mainly confined to India, Agarwal contends that Evergrande’s problem has worldwide implications due to its size and exposure to foreign loans.

The fact that Evergrande owes more over $300 billion is crucial information. It had overbuilt, overpaid for partially completed flats, and misled thousands of prospective homeowners. According to agency sources, High Court judge Linda Chan’s ruling on January 29 essentially launches a drawn-out process that includes selling off the developer’s assets and changing the management to allay the worries of its creditors.According to agency reports, Evergrande’s collapse occurred in 2021 when Beijing tightened its financing policies to real estate developers in an attempt to curb the real estate bubble.

How are the two real estate markets different?

Nearly 40% of all home sales in China are the result of Chinese real estate developers, who have struggled with serious debt default since 2021. Of the $175 billion in outstanding dollar debts, they have defaulted on roughly $114.6 billion. The ongoing COVID-19 influence and government laws governing financing techniques are among the factors. Gulam Zia, Senior Executive Director at Knight Frank India, notes that these steps were meant to limit developers’ finance alternatives while also preserving financial stability and controlling property price increases. Approximately four times more real estate projects than Evergrande, Country Garden is a different real estate developer that has been struggling financially. Its overall liabilities amount to $191.7 billion.According to a report that appeared in the South China Morning Post last week, the financially troubled Chinese developer Country Garden Holdings has listed a number of assets for sale in Guangzhou in an effort to pay off a sizable amount of debt that is due in the next six months.

Zia added that another thing to consider is that Chinese homebuyers are becoming less confident as a result of unfinished projects and loose laws that permit developers to take money out of escrow accounts. Furthermore, the real estate industry in China makes up roughly 30% of the country’s GDP, compared to only 7% in India. Real estate experts predict that this won’t rise by more than 15% even in the following 20 years.At $477 billion in value, India’s real estate market accounts for 7.3% of the country’s GDP. Increases are expected to be significant; by 2047, they should reach $5.8 trillion, or 15.5% of the total GDP. According to a report published last year by Knight Frank and Naredco, this growth is being driven by the growing demand for better living spaces brought about by expanding urbanization.

RERA: A game changer for India’s real estate sector

Real Estate

The industry has been made cleaner by the real estate regulatory bodies that have been established around the nation to control the real estate market and safeguard homebuyers. China is confronted with formidable obstacles, whereas India’s market is anticipated to expand due to urbanization. India’s market has become more resilient and customer-focused as a result of legislative changes and lessons learned from previous setbacks. In comparison to its Chinese rivals, India’s real estate market has an optimistic perspective, which puts it in a more stable position, says Zia.

Sustained housing demand

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The consistent end-user demand is the primary distinction between China and India. The Indian real estate sector has proven resilient in the face of financial crises, including the 2008 Lehman crisis. In India, the main issue was developers abusing the money that consumers purchased homes with. Zia notes in his research paper titled India’s Resilient Real Estate Market Amidst China’s Real Estate Woes: A Comparative Analysis that China, on the other hand, faced difficulties with many builders struggling to make timely payments, which were made worse by limited access to funds due to the global economic situation.

According to many studies from foreign consultancies, the top seven residential markets in India have continued their recent bull run, with annual growth in house sales reaching 2.71 lakh units, up 26% from the previous year. Sales in tech-driven locations like Pune, Chennai, Bengaluru, and Hyderabad rose over the prior year, according to a JLL research released on January 10. The statistics released by Anarock Research indicated that due to the growing demand for larger residences, the average apartment sizes in the top seven cities increased by 11% yearly last year, from 1,175 square feet in 2022 to 1,300 square feet in 2023. NCR had the most increase in average flat size (37%) over the course of the previous year, going from 1,375 square feet in 2022 to 1,890 square feet in 2023, out of the top 7 cities. As many as 97 distinct land acquisitions totaling over 2707 acres were finalized nationwide in 2023 as a result of financially sound developers and corporations continuing their land purchasing binge. According to statistics provided by Anarock Research, at least 72% of the total land area closed in 2023 is expected to be used for residential development, supported by strong residential sales momentum throughout cities.

Also Read: India’s Government Convenes All-Party Meeting Today Before Interim Budget Session 2024

Final Thought

The recent failure of Evergrande in Hong Kong and its impact on China’s financial system serve as a sobering reminder of the important differences between the Indian and Chinese real estate industries.Notwithstanding the difficulties both markets have encountered—such as high debt levels and unsatisfactory investment returns—their approaches and outlooks for the future differ greatly. The Indian real estate market has demonstrated its adaptability and resilience, partly attributable to government initiatives and regulatory advancements such as RERA. The continuous demand for homes brought on by urbanization has also benefited the company. Although there have been periodic setbacks, India’s real estate sector is still predicted to rise in the upcoming years.

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Brands and Agencies Gear Up for IPL Season at Star Sports Business Leaders Meet

Star

Brands and Agencies Gear Up for IPL Season at Star Sports Business Leaders Meet

In a market where consumers are bombarded with advertisements on a wide range of devices and platforms, television becomes a vital channel for businesses to gain a foothold in consumers’ minds and hold it there for extended periods of time. TV advertisements leave a 3X longer lasting impression on viewers’ thoughts than any other kind of media, according to a ThinkTV study. Cricket has traditionally been the most popular sport on television in terms of viewership and attention span.

According to a T-Vision survey, consumers give cricket 61% more attention when it comes to advertisements than any other TV genre. The Indian Premier League is a marquee event that has consistently demonstrated its capacity to introduce companies, establish market leadership, and attract new viewers with each new season. Star Sports recently welcomed a variety of SMB brands and media agencies in New Delhi as the 2024 season draws near.

Brands received extensive insight from the event regarding the cost-effectiveness of investments, the pricing flexibility of Star Sports advertising, and the unique influence of the Indian Premier League on TV on advertisers’ business KPIs. With little financial expenditure, brands have benefited greatly from the IPL on TV in terms of business KPIs. According to BARC, a single IPL match can potentially attract 100 million people. IPL’s cost-effectiveness on TV sets a standard for the industry, with advertisers obtaining excellent CPMs of 45 at the size it delivers. In addition, because of the lean-back, TV gets 10X more screen time than the smaller screen.

Unveiling TV Advertising Realities and Live Sports Trends

The audience was informed about the different ways that companies may use the Indian Premier League on television, as well as how TV can have a unique business impact when compared to other media, through a panel discussion with representatives from the industry, including agencies, brands, and media analysts. Co-founder of SYNC Vikas Saxena talked on everything related to television, including busting the fallacies that say “TV advertising is an expensive property” and “TV ads aren’t measurable.”

Also Read: Dazller Named Official Cosmetics Partner for Cheer Squads of Punjab Kings,Sunrisers Hyderabad and Lucknow Super Giants

Shubhra Saraf Sethi, Head of Product, Revenue Strategy and Customer Marketing at Disney Star (Sports), and Rohit Kumar Anand, Director of Product & Revenue Strategy at Disney Star (Sports), spoke to the audience during the last session of the day to share some important insights and trends the company has observed over the years regarding live sports. The audience networked over dinner and beverages and discussed the range of opportunities available to them during the Indian Premier League with the Star Sports crew as the evening came to an end.

Step into the exciting world of gaming with DojoLuck, Launching This IPL on Playstore! Visit the Dojo Luck website to get a sneak peek and Stay Connected on Instagram

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Dazller Named Official Cosmetics Partner for Cheer Squads of Punjab Kings,Sunrisers Hyderabad and Lucknow Super Giants

Dazller

Dazller Named Official Cosmetics Partner for Cheer Squads of Punjab Kings , Sunrisers Hyderabad  and Lucknow Super Giants

Aravind Laboratories, the parent company of the renowned Eyetex and its exciting cosmetics brand Dazller, has agreed to be the official cosmetics partner of the cheer squads of the Punjab Kings XI, Sunrisers Hyderabad, and Lucknow Super Giants for the 2024 Indian Premier League. With the addition of premium cosmetics to the lively performances of the IPL cheer squads, this partnership is expected to showcase Dazzler’s dedication to beauty and creativity.

The main force behind this relationship and Aravind Laboratories Executive Partner, Aaditya Hariprasad, stated his excitement about the partnership. “We are glad to adjust Dazller to the dynamic and energetic universe of IPL,” he said. By using our goods to improve the cheer squads’ performances, our relationship demonstrates our commitment to quality and innovation in beauty.

Elevating Glamour and Quality: Dazller’s Impact on IPL Cheerleading

Through this interesting participation, Dazller will actually want to contact a more extensive and more passionate crowd across India and deal a charming and great component to the IPL season. Known for its Eyetex and Dazller brands, Aravind Research centers was established in 1938 and has stayed a forerunner in the beauty care products market thanks to its devotion to quality and development. With its wide choice of items, the brand drives the manner in which in magnificence patterns.

Also Read: Fisker Announces 15% Workforce Reduction Amid Cash Crunch at EV Startup

The outright exhilarating opening round of the seventeenth IPL season between the defending champ Chennai Super Kings (CSK) and Royal Challengers Bangalore (RCB) at the M Chidambaram Arena in Chennai on March 22.

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Fisker Announces 15% Workforce Reduction Amid Cash Crunch at EV Startup

EV

Fisker Announces 15% Workforce Reduction Amid Cash Crunch at EV Startup

Fisker, an electric vehicle (EV) startup, is cutting off at least 15% of its personnel because its available resources are “insufficient to satisfy its requirements over the next 12 months.” Fisker announced its quarterly results and revealed that it is in talks with a major carmaker about a possible deal that may involve cooperative development of one or more electric vehicle platforms, North American manufacture, and an investment in Fisker. “Fisker is already taking steps to address any possible liquidity issues. The business is now talking with one of its current noteholders about perhaps investing more money in the business,” the statement read.

Additionally, “Fisker plans to lay off roughly 15% of its workforce.” “The primary cause of workforce reductions is the shift from a direct-to-consumer to a dealer partner model. The business is also streamlining operations, which includes lowering its overall spending and physical footprint, the company said. A $128.3 million rise from Q3 2023 to Q4 2023 saw Fisker announce a total revenue of $200.1 million.

Also Read: Reliance Consumer Products Unveils Collaboration with Sri Lanka’s Elephant House Beverage Brand

Henrik Fisker, chairman and CEO of Fisker, said, “2023 was a challenging year for Fisker, including delays with suppliers and other issues that prevented us from delivering the Ocean SUV as quickly as we had anticipated.” He continued, “Unexpected difficulties also arose when we attempted to simultaneously create a direct-to-consumer sales model in North America and Europe.

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