Connect with us

Guest Column

Branded Housing Share Increases to 56% of Overall Supply

Anarock-3-640x426
  • New housing supply by branded players rises in last 4 years – 56% share of overall new supply in 2018 (against 41% in 2015)
  • Affordable supply by a leading brand increased 60% in Q4 2018 against previous year
  • Significant rise in consolidated net profit of listed realty players; goes as high as 76% in Q4 FY19
    What’s in a name? For Indian homebuyers and investors today – a lot. In metros as well as tier 2 and tier 3 cities, a real estate developer’s brand name wields considerable clout.

    Prashant Thakur, Director & Head – Research, ANAROCK Property Consultants

    Real estate players with high-recall brands have upped their game and accounted for a whopping 56% share of the total housing supply in 2018. There has been a y-o-y rise in their share since 2015, when their share of the supply stood at 41%.

    ‘Branded’ developers are not necessarily only listed players. Real estate developers who have been operating for a decade and more, newly-formed entities of large conglomerates, and also those with sizeable areas under development either locally or Pan-India, are now recognized as branded developers.

    Most of these companies’ new supply is no longer limited to the premium and luxury segments. They have spread themselves across the high-demand affordable and mid segments (comfortably priced within a budget not exceeding INR 80 lakh).

    In retail, we now see several high-value designer clothing brands launching relatively more affordable apparel lines for ‘non-elite’ customers. In real estate, the middle class – that fairly wide bandwidth between the upper and working classes – is calling the shots. This is where end-user demand is thickest, investors follow end-user demand, and developers are falling in line.

    Several factors are involved in the increasing prominence of branded developers:

    • Indian Brand Consciousness

    India is among the top 3 most brand-conscious nations globally. No longer restricted to the super-affluent class, brands have found resonance across the Indian consumer value chain. The Indian consumer’s quest for branded products spans almost all products from fashion, gadgets, cosmetics and toiletries – and now even homes.

    The aspirational value attached to high-recall brands is not merely a quest for status. As with clothing and gadgets, well-known developer brands are known to deliver much more in terms of design, specifications, overall quality and after-sales service than their generic counterparts.

    Advertisement

    Homes built by such branded developers convey the assurance of having invested in the right product. Not only do they provide better durability and a superior living experience, they also yield better returns in terms of rental income as well as capital appreciation.

Latest News

Events11 hours ago

Danube Properties’ Dh525 million Opalz sold out on the first day of launch

October 4, 2022: Danube Properties, the UAE-based affordable housing developer, said, its latest project Opalz, a twin-tower residential project with...

Events11 hours ago

Pacific Mall D21’s ‘Dussehra Celebrations’ drops the curtain with high attendance

New Delhi: Pacific Mall D21 organised a two-day Dussehra celebration and Garba Night, attracting massive turnouts. The special arrangement of...

News11 hours ago

Tata Value Homes sells over 100 residential units at New Haven, Bahadurgarh at launch

Delhi/Haryana October 4, 2022: With an aim to address the growing demand for quality homes in Haryana – Bahadurgarh, Tata...

New Launches11 hours ago

Welspun Corp opens steel plant in Anjar

October 3, 2022, Anjar, Gujarat: Welspun Metallics Limited, a subsidiary of Welspun Corp Limited (WCL), the flagship company of the Welspun...

Events1 day ago

Over 1500 cyclists join Hiranandani Thane Cyclothon 2022 to support ‘Rhyme for Earth’ initiative

October 2, Thane: The Hiranandani Group hosted the first Hiranandani Thane Cyclothon today from its thriving Thane township, Hiranandani Estate. Over...

New Launches1 day ago

Ashiana Housing adds over 900 senior living units with Villas and Apartments with the launch of Ashiana Advik in Bhiwadi

New Delhi, October 3, 2022: New Delhi-based real estate developer Ashiana Housing has announced the launch of Ashiana Advik in Sector 39, Bhiwadi....

Trending