Birla Estate Lock up Five Acres Land in Gurgaon, Targets Rs 1400cr Revenue

7/16/2024 1:24:00 PM

Birla Estates, the illustrious real estate arm of the Aditya Birla Group and a wholly-owned subsidiary of Century Textiles and Industries Limited recently acquired 5 Acres of land parcel in sector 71, Gurugram. This prestigious project envisions the development of luxurious residential units boasting an impressive development potential of approximately 10 Lakh-SqFt. Birla Estates aims to generate over INR 1,400 Crore in revenue. The upcoming luxurious project is situated on the Southern Peripheral Road (SPR). It offers excellent connectivity to Delhi and other parts of Gurugram via the Dwarka Expressway, Sohna Road, and Golf Course Extension Road. Furthermore, Birla Estates entered a joint venture with Barmalt India Pvt Ltd for a luxury residential group housing development in Sector 31, Gurugram. This 13.27 Acres land parcel has a development potential of approximately 2.4 Million-SqFt, offering a revenue potential of INR 5000 Crore. These projects solidify Birla Estates as a leader in NCR’s luxury living segment, catering to discerning buyers seeking modern amenities. source : The Economic Time INDIA

Innov8 starts three centres in Delhi-NCR with Rs 10 crore investment

7/15/2024 1:00:00 PM

Co-working firm Innov8 has started three new facilities with over 600 sitting capacity in Delhi-NCR at an investment of Rs 10 crore as part of its expansion plan amid a rise in demand for flexible workspace. These three facilities, having a total of 60,000 square feet area, are located at Unitech Cyber Park, DLF Cyber City and Okhla in Delhi-NCR, the company said in a statement. "Delhi NCR's thriving startup ecosystem and its position as a major corporate hub make it an ideal location for our latest co-working spaces," Ritesh Malik, Founder of Innov8, said. Innov8, which was acquired by OYO in 2019, has invested Rs 10 crore towards the development of these co-working centres. Founded in 2015, Innov8 is currently spread across nine cities - Delhi, Gurugram, Mumbai, Pune, Chennai, Bengaluru, Ahmedabad, Hyderabad, and Indore - with over 30 centres hosting more than 8,000 employees of its clients. Currently, the company has seven centres in Delhi-NCR. Source : The Economic Time INDIA

NBCC interested in taking over all of Supertech’s Pending Projects

7/15/2024 12:53:00 PM

State-owned construction company NBCC has shown interest in taking over all the pending projects of real estate developer Supertech, which has been facing multiple cases from homebuyers over delayed deliveries besides an Enforcement Directorate investigation into alleged money laundering. During the insolvency proceedings of one of the group companies of Supertech, the interim resolution professional (IRP) had approached NBCC. NBCC has informed IRP and lender Union Bank of India that it is ready to take all the projects of Supertech, provided it is given complete access to the details of the projects and all the data related to them. The Noida-headquartered real estate developer has to deliver over 15,000 homes. According to a National Company Law Appellate Tribunal (NCLAT) order on July 8, attorney general Venkat Ramani has submitted before the court that he has received instructions that NBCC is interested in undertaking the projects subject to due diligence and that lenders of the Supertech are not averse to the proposal of NBCC. “Alok Kumar, counsel for Union Bank of India, submits that NBCC was earlier contacted by the IRP with regard to Eco Village-II and NBCC has now informed the lenders that they may take all the projects provided they are given access to the details of the projects and other data. Counsel for the IRP submits that in event the lenders make a request with regard to relevant details, the same shall be shared by the IRP,” the NCLAT order said. The bankruptcy court had ordered Corporate Insolvency Resolution Process (CIRP) against Supertech Ltd, one of the companies of the Supertech group, based on a petition filed by Union Bank of India for non-payment of around Rs 432 crore of dues. According to Supertech, while one project is under insolvency, for other projects, the company and lender along with IRP will decide the outcome. “We haven’t received the (NBCC) proposal yet… As a stakeholder, we have the right to decide and will convey the decision once we receive the proposal,” said RK Arora, chairman of Supertech. In a similar case, NBCC is delivering more than 41,000 sold and 5,000 unsold units in over 20 stalled projects of the Amrapali group. Supertech’s total liabilities including dues to banks and development authority amount to about Rs 8,000 crore, while project receivables from both launched and yet-to-be-launched projects exceed Rs 14,000 crore, making the projects' net worth positive. The company has already submitted a proposal to the Uttar Pradesh government for the revival of the company. According to the proposal, the dues to the land authority amount to Rs 2,670 crore, with almost half of this being interest on the land cost. The company also owes Rs 830 crore to various banks. It also requested about Rs 5,000 crore from lenders to complete the stuck projects. Source : The Economic Time INDIA

L&DO clears 15 acre land in Eviction Drive in Delhi’s Civil Lines

7/15/2024 12:47:00 PM

In a major eviction drive against encroachment of public land, the Land and Development Office (L&DO) under the Union housing and urban affairs ministry cleared almost 15 acres of prime land in Khyber Pass in Civil Lines area on Saturday. Sources said the current market value of the large patch of around 32 acres, including the cleared portion, in the area is estimated at over Rs 2,000 crore. The Nazul land (govt land) is owned by the L&DO and it was given to the defence ministry in 1935. There were hutments, known as Khyber Pass Hostel, for accommodation of the support staff of defence personnel. The cleared portion is worth around Rs 1,000 crore. Officials said though the eviction was to begin from March 4, it was stopped at the direction of Delhi High Court. After the matter was examined at length by HC and a judgment was passed on July 9 upholding the eviction order, the L&DO carried out the eviction on Saturday. They added that such valuable land cannot be allowed to be occupied by few individuals for the benefit of few at loss to the govt. The eviction was carried out with support of Delhi Police, Delhi administration, Municipal Corporation of Delhi and Central Public Works Department, sources said. Some of the occupants had earlier taken the matter to the Delhi High Court seeking relief after the L&DO had issued a public notice to the occupants on March 1, 2024 to vacate. The occupants had claimed that the hostels were allotted to their fathers and grand-fathers about 70 years back and hence they were entitled to resettlement. Challenging the eviction notice, petitioners had pleaded before the HC that they could not be evicted by following the due process of law as they were inducted by the "Officers of the Armed Forces" to cater to their needs and they were paying rents. The high court, in its order, took note that the petitioners did not show any document as to who inducted them and said since this issue requires leading of evidence, the petitioners needed to file suit and lead evidence to show that they were inducted lawfully by persons who were competent to do so. Relying on the affidavit of the petitioners, which mentioned that no rent has been paid by them after 2001 and, the HC observed that the "petitioners cannot be called as legal occupants of the land in question and are rank trespassers". It also rejected the argument that the petitioners were inducted lawfully and that they are authorised occupants. Dismissing the petition, the court said it "does not find any reason" to quash the notice dated March 1, 2024. Source : The Economic Time INDIA

Haryana cabinet approves scheme to provide affordable housing for economically weaker sections

7/13/2024 12:55:00 PM

Chandigarh, Jul 12 (PTI) The Haryana Cabinet on Friday approved the 'Mukhya Mantri Shehri Awas Yojana' which seeks to provide affordable housing to the economically weaker sections (EWS) of society. Under this scheme, housing facilities will be extended to all poor families who either lack their own house in urban areas or currently reside in 'kutcha houses', according to the decision taken by the state Cabinet under the chairmanship of Chief Minister Nayab Singh Saini. Initially, the initiative aims to provide housing to 1 lakh economically weaker families, according to an official statement issued here. Those having annual family income of up to Rs 1.80 lakh as per the 'Parivar Pehchan Patra' (family id) and do not own a 'pucca' house in any urban area of Haryana will be eligible for the housing scheme. The scheme has provisions for a 30 square yard plot for each eligible family, allowing the beneficiaries to construct their own 'pucca' houses. The state government, through the Department of Housing for All, will provide the necessary land, the statement said. This scheme, primarily state-sponsored, will integrate with the beneficiary-led construction (BLC) vertical of the Pradhan Mantri Awas Yojana-Urban (PMAY-U). It targets families with an annual income of up to Rs 1.80 lakh who have been registered in the demand survey conducted via the Department of Housing For All's web portal from September 13, 2023 to October 19, 2023, and January 5, 2024 to January 19, 2024, it said. Last year, an online registration drive was conducted to assess the housing demand among urban families. Approximately 2.89 lakh applicants registered their demand for flats or plots, with 1.51 lakh opting for plots and 1.39 lakh for flats. Beneficiaries can construct a duplex (double-storey) flat with a carpet area of 350 square feet/425 sqft on the allotted 30 square yard plot, as per standard designs. Financial assistance, combining subsidies, loans, and interest subvention schemes, will be provided. A financial aid of up to Rs 1.5 lakh each will be offered to facilitate house construction under the beneficiary-led construction vertical of PMAY-U, it further said. For beneficiaries securing housing loans up to Rs 6 lakh from nationalized banks or housing finance companies, the state government will provide interest subvention on their EMIs. The government will cover the total interest amount for the first two years and up to Rs 35,000 of the interest amount in the third year. In the fourth year, the government will pay up to Rs 25,000 of the interest amount, and up to Rs 10,000 in the fifth year. Additionally, building approval charges, development charges, and the betterment levy will be waived for MMSAY beneficiaries. The registration (conveyance deed) fee for the plot will be a nominal Rs 500. Charges for water and sewerage connections will also be waived at the time of application by the concerned authority, it said. Meanwhile, the Haryana government also decided to implement Mukhya Mantri Gramin Awas Yojana (MMGAY) to ensure that all the rural residents have access to a habitable and affordable dwelling unit. MMGAY aims to provide affordable, quality rural housing, fostering sustainable development and vibrant communities. Under the scheme, financial assistance of up to Rs 1 lakh or actual price of the plot of land, whichever is less, for the purchase of own residential plot of up to 100 square yards will be provided to those who did not get plot under the Mahatma Gandhi Gramin Basti Yojana (MGGBY). MMGAY will be implemented for 2024-25 and 2025-26. The Rural Development Department will provide the list of beneficiaries under MGGBY to whom possession of 100 square yards plot cannot be delivered. The scheme will cover those who were to be allotted plots under MGGBY but have not been given possession of the plots in the last 15 years. Source : The Economic Time INDIA

Sunteck Realty's sales bookings up by 29.7% in Q1 FY25

7/13/2024 12:54:00 PM

Sunteck Realty Ltd.'s presales increased 29.7% year-on-year to Rs 502 crore in the quarter-ended June, according to the provisional numbers released by the company. The collections for the quarter stood at Rs 342 crore, 18.8% higher in comparison to Rs 288 crore collected over the same period in the previous fiscal, the company said in an exchange filing on Friday. In May, the board of directorsof Sunteck Realty approved the resolution to raise Rs 2,250 crore through private placement and the issue of equity shares. The company also approved the amalgamation of its wholly owned subsidiary companies—Starlight Systems Pvt. and Satguru Infocorp Services Pvt.—with Sunteck Realty. Shares of Sunteck Realty closed 2.20% higher at Rs 284.26 apiece on Friday, as compared with a 0.81% gain in the country's benchmark NSE Nifty 50. Source : The Economic Time INDIA

“Affordable Housing Market Adjusts: Strategic Opportunities for Buyers Under Rs 50 Lakh”

7/13/2024 12:53:00 PM

New supply of affordable apartments -- costing below Rs 50 lakh -- declined 21 per cent in the April-June period across seven major cities as builders are launching more premium flats, according to JLL India. Real estate consultant JLL India on Friday released data for housing market of major seven cities, showing a 5 per cent increase in fresh supply of apartments to 159,455 units during April-June 2024 from 151,207 units in the year-ago period. The data includes only apartments. Rowhouses, villas, and plotted developments have been excluded from the analysis. Of the total new supply in the June quarter, the launches of affaordable flats stood at 13,277 units, a fall of 21 per cent from 16,728 units in the same period last year. The launches of flats, each costing Rs 50 lakh to Rs 1 crore, declined 14 per cent to 47,930 units from 55,701 units. In the Rs 1-3 crore price bracket, the new supply grew 3 per cent to 69,312 units from 67,119 units. The launches of apartments, each priced Rs 3-5 crore, more than doubled to 19,202 units from 7,149 units. Similarly, in above Rs 5 crore category, the new supply jumped more than two-fold to 9,734 units from 4,510 units. Commenting on the trend of rise in supply of premium homes and fall in supply of affordable homes, Siva Krishnan, Senior Managing Director (Chennai and Coimbatore), Head- Residential Services, India, JLL, said, "This speaks about developers' active response to the surge in demand for high value homes among the target clientele." On demand, the consultant said the sales of apartments across seven major cities rose 22 per cent to 154,921 units during April-June 2024 from 126,587 units in the year-ago period. These seven cities are -- Delhi-NCR, Mumbai Metropolitan Region (MMR), Kolkata, Chennai, Bengaluru, Hyderabad, and Pune. The MMR includes Mumbai city, Mumbai suburbs, Thane city, and Navi Mumbai; Delhi-NCR includes Delhi, Gurugram, Noida, Greater Noida, Ghaziabad, Faridabad, and Sohna. "Interesting to note, sales momentum has successfully complemented the new launches with around 30 per cent of the H1 2024 sales (154,921 units) being contributed by projects that got launched during the last six months," said Samantak Das, Chief Economist and Head of Research, India, JLL. Listed and reputed developers, consistently bringing in a substantial supply over the past few years have played a key role in this growing trend, Das said. Source : The Economic Time INDIA

Retail space demand in malls rises 15% in April-June: Cushman & Wakefield

7/12/2024 11:55:00 AM

Leasing of retail spaces in shopping malls rose 15 per cent annually during the April-June period to 6.12 lakh square feet across eight major cities on better demand from retailers, according to Cushman & Wakefield. Real estate consultant Cushman & Wakefield India data showed that the demand for retail space on major high streets across these eight major cities increased 4 per cent annually to nearly 14 lakh square feet during the second quarter of the 2024 calendar year. As per the data, the leasing activities in shopping malls rose to 6,12,396 square feet during April-June 2024 from 5,33,078 square feet in the year-ago period. High street locations saw a growth of 4 per cent in leasing to 13,89,768 square feet from 13,31,705 square feet during the period under review. The leasing data includes all types of shopping malls- Grade A and Grade B -- and also all prominent mainstreets. These eight cities are -- Delhi-NCR, Mumbai, Chennai, Kolkata, Bengaluru, Hyderabad, Pune and Ahmedabad. Commenting on the report, Saurabh Shatdal, Head Retail and Managing Director, Capital Markets, Cushman & Wakefield, said, "The second quarter of 2024 was marked by a strong demand for both Grade A malls and high street retail. The growth in both formats underscores the vibrancy of India's retail landscape." While high street rental growth has seen a notable increase, the upcoming Grade A mall supply of 4.5 million (45 lakh) square feet might stabilise rental costs in the short to medium term as demand-supply dynamics shift to an extent, he added. "However, we anticipate the main street activity to remain healthy. Additionally, the dominance of domestic brands, accounting for 53 per cent of leasing volume, along with the strong performance of fashion and F&B (food and beverages) highlight the evolving retail preferences in India," Shatdal said. The consultant highlighted the continued dominance of main-street retail leasing, owing to limited new mall openings and a strong demand for high-quality retail spaces. Retailers are increasingly focusing on main streets in prominent locations across India, with emerging clusters forming around residential and commercial hubs, it added. "This trend is reflected in leasing activity with high street leases accounting for 70 per cent of total leases in Q2 (April-June) 2024, compared to 30 per cent for mall leases," C&W said. The rental growth across prominent main streets in Q2 of 2024 further underscores their growing appeal. Kolkata, Bengaluru, Hyderabad and Mumbai have all experienced significant year-on-year rental increases, demonstrating strong demand and potential for high-street retail in the country. Source : The Economic Time INDIA

Haryana CM approves development works worth ₹2,887 crore in Gurugram

7/12/2024 11:53:00 AM

Chief minister (CM) Nayab Singh Saini-led Gurugram Metropolitan Development Authority (GMDA) panel on Wednesday gave the nod to install 10,000 high-quality CCTV cameras and construction of flyovers at the junction of Sector 45-46-51-52, and the intersection of Sector 85-86-89-90 to decongest traffic. The GMDA approved ₹2,887 crore budget for the 2024-25 financial year and after a detailed discussion on various agendas gave the nod to increase the capacity of CCTV cameras for city surveillance and adaptive traffic management, construct new water treatment plants, enhance the capacity of existing ones, and strengthening the network of water drainage and sewer treatment plants. During the meeting, the CM expressed concern over the issue of waterlogging in Gurugram and said officers must not show any laxity in addressing this issue. He asked them to utilise all resources to resolve waterlogging promptly. Saini said he would visit Gurugram to personally oversee the situation, and reiterated that no negligence will be tolerated. He also directed chief secretary TVSN Prasad to hold officers concerned accountable for their responsibilities in this matter. Meanwhile, the GMDA panel approved the implementation of CCTV project Phase 3 for city surveillance and adaptive traffic management at an estimated cost of ₹422 crore. While approving the construction of a flyover at Sector 45-46-51-52 junction, ₹52 crore was allocated. Similarly, to alleviate congestion at the intersection of Sector 85-86-89-90, another flyover will be constructed to facilitate commuters and enhance mobility. The project for the upgradation of the southern peripheral road (SPR) was also approved in the meeting. Under this, an elevated corridor and interchange will be constructed from Vatika Chowk to NH-48 CPR. The estimated cost of this will be ₹620 crore. To provide modern sports infrastructure, the GMDA authority approved the upgradation of Tau Devi Lal Stadium, Gurugram, at an estimated cost of ₹634 crore. The meeting approved the procurement of 200 electric buses under the gross cost contracting model for operation in the GMDA area at a cost of ₹70 crore. “The introduction of these electric buses is a significant step towards reducing the city’s carbon footprint and promoting sustainable urban transportation. These buses will be equipped with the latest technology to ensure comfort and safety for passengers,” said the spokesperson. Meanwhile, ₹215 crore will be spent on laying the master stormwater drainage system in Sector 76-80 along National Highway-48. The project for the upgradation of the 120 MLD sewerage treatment plant at Behrampur and the 100 MLD STP at Dhanwapur, Gurugram, has been approved at an estimated cost of ₹51 crore and ₹75 crore, respectively. Approval was also granted for the construction of two STPs of 100 MLD each in Sector 107 in two phases at an estimated cost of ₹500 crore. Among other issues discussed during the meeting included the drainage improvement plan, door-to-door garbage collection, construction of a civil hospital, and a new bus stand. Town and country planning minister JP Dalal, minister of state for transport Aseem Goyal, minister of state for urban local bodies Subhash Sudha, minister of state for sports and forests Sanjay Singh, besides senior officers were among others present in the meeting. Union minister of state for statistics and programme implementation Rao Inderjit Singh, along with other members of the GMDA, attended the meeting through videoconferencing. Source : The Economic Time INDIA

Leasing of workspace in Jan-Jun up 29% to 33.54 million sq ft: Report

7/11/2024 12:36:00 PM

New Delhi, July 3 (PTI) Office demand across seven major cities hit an all-time high in the first half of this calendar year with gross leasing of 33.54 million square feet, according to JLL India. Real estate consultant JLL India on Wednesday released the data of office demand for the January-June period of this year which saw 29 per cent annual growth in gross leasing to 33.54 million square feet across these seven cities -- Delhi-NCR, Mumbai, Kolkata, Chennai, Bengaluru, Hyderabad and Pune. "H1 2024 (January to June) marked the best-ever first half, with leasing volumes at 33.5 million sq ft, surpassing the previous highest H1 performance seen in 2019," the consultant highlighted. Gross leasing of office space stood at 26.01 million square feet in the January-June period of 2023. In January-June 2019, the gross leasing of office space stood at 30.71 million square feet, but the numbers fell to 21.10 million square feet in January-June 2020 and 12.55 million square feet in January-June 2021 due to a slowdown in demand because of the COVID pandemic. The office demand bounced back post-COVID. In January-June 2022, the gross office leasing stood at 24.68 million square feet. Gross leasing refers to all lease transactions recorded during the period, including confirmed pre-commitments, but does not include term renewals. Deals in the discussion stage are not included. "2024 projected to mark record-breaking gross leasing of 65-70 million sq. ft, setting the stage for a historic milestone in the country's commercial real estate market," JLL India projected. Source : The Times of India INDIA

Tata Realty raises Rs 825 crore from IFC to refinance IT park project in Chennai

7/11/2024 12:34:00 PM

Tata Realty on Monday said it has secured Rs 825 crore loan from the International Finance Corporation (IFC) to refinance its green commercial project in Chennai. "This funding is earmarked for the strategic refinancing of Ramanujan Intellion Park in Chennai, a landmark development in sustainable real estate," the company said. Ramanujan Intellion Park has achieved a complete reduction of emissions through renewables or carbon off-sets, saving more than 20 per cent on water and embodied energy in materials while attaining over 42 per cent energy savings on-site. Located strategically along Old Mahabalipuram Road (IT Expressway) in Taramani, Chennai, the 25.27-acre Ramanujan Intellion Park encompasses both a Special Economic Zone (SEZ) processing area and a non-processing zone. Sanjay Dutt, MD & CEO of Tata Realty, said, "The financing from IFC is a strategic investment in advancing our efforts to enhance the sustainability and climate resilience of Ramanujan Intellion Park." Dutt said this funding would enable the company to continue its leadership in green building practices. Elaborating more on the project, Tata Realty said this fully owned and operational IT park hosts between 40,000 to 60,000 professionals across its six buildings daily. The IT park includes the Taj Wellington Mews Hotel facility, which offers 112 serviced apartments and a 1,500-seater convention centre in the non-processing zone. This financing initiative is a part of Tata Realty's broader commitment to advance its sustainability efforts and elevate the standard of green commercial spaces across India, the statement said. The funds will further integrate state-of-the-art sustainable technologies and practices at this flagship asset, which boasts a total leasable area of about 4.67 million sq ft of IT/ITES commercial office spaces. Imad N Fakhoury, IFC's Regional Director for South Asia, said, "Business parks are key to greening the real estate sector, and Tata Realty's Ramanujan Intellion Park is at the forefront of this transformation." Tata Realty and Infrastructure Ltd is a 100 per cent subsidiary of Tata Sons and one of the leading real estate development companies in India with an extensive portfolio of over 50 projects across 15 cities. Tata Realty and Infrastructure Ltd has developed around 17.6 million square feet of commercial projects and has around 16.7 million square feet of projects under development & planning. Source : The Economic Time INDIA

No project can fail if builders maintain financial discipline: Haryana RERA member

7/11/2024 12:32:00 PM

No real estate project can fail if developers maintain financial discipline from the very beginning , Sanjeev Kumar Arora member of Gurugram bench of Haryana regulatory authority, said. Addressing Assocham's National Conference on Changing Dynamics of Real Estate for Vikist Bharat, he also pitched for reduction of interest rates on home loans to boost demand. "I believe no project can fail, provided the promoter tries to maintain the financial discipline from the inception of the project and tries to maintain a ratio of debut to equity…if financial discipline is maintained by the promoters since the inception of the project, no project can fail," Arora said. He spoke about the role of the real estate sector in the Indian economy, especially in creation of employment opportunities. "There is a need of rationalisation of interest rates, lending rates, because once the lending rates are reduced, certainly the investors or the homebuyers come forward. And builders are also happy to deliver at least possible costs," Arora said. Talking about real estate law RERA, Arora, a member of Gurugram bench of Haryana Real Estate Regulatory Authority (HRERA), said about 1,25,000 projects have been registered under RERA since the enactment across India while 75,000 brokers also have registered. Pradeep Aggarwal, Chairman of National Council on Real Estate, Housing and Urban Development at Assocham, said the sector is crucial to make India a top economy. Real estate is a Rs 24 lakh crore market, and its GDP contribution is around 13.8 per cent, he added. Urbanbriq Development Management Pvt Ltd Director Vineet Relia said there could be a downcycle if the government doesn't support this sector in the coming years with regards to affordability. Source : The Economic time INDIA

Alpha Corp invests Rs.350 crore & introduces Luxury Housing Project in Gurugram

7/10/2024 1:56:00 PM

Alpha Corp, a real estate firm located in Gurugram, has unveiled Alpha Corp SKY1, a luxurious residential project spanning 2.38 acres in the millennium city. The company intends to invest approximately Rs.350 crore in this initiative, as stated on July 9th. The corporation anticipates generating around Rs.600 crore in revenue from its latest high-end residential development in Gurugram, as per its announcement. According to the company, the real estate firm plans to invest Rs.350 crore in developing the 2.38-acre project, with expected sales revenue totaling around Rs.600 crore. The company is constructing approximately 200 housing units within the 2.38-acre project located in Gurugram. Initially, around 40 units are being released for sale in the first phase. The project is slated to unfold in two phases, with subsequent phases expected to launch in the upcoming quarter, according to the company's statement. Alpha Corp SKY1 offers apartments ranging from 2,400 to 3,600 sq. ft. with prices starting from Rs.4.5 crore and going up to Rs.5 crore and above. Construction on the project is scheduled to commence by September 2024, and the units are expected to be ready for possession within the next four years, according to the company's announcement. In a joint development initiative, the company has partnered with landowners under separate agreements. The first land parcel spans 2.38 acres, while the second covers 2.36 acres. The overall development will encompass nearly half a million square feet, as disclosed by the company. Alpha Corp has developments that include integrated townships, luxury condominiums, corporate centers, retail hubs, and industrial parks across various regions, including the National Capital Region (NCR), Punjab, Uttar Pradesh, and Gujarat. Source : The Economic Time INDIA

Tata Realty plans to triple its office space portfolio in 7 years

7/10/2024 2:17:00 AM

Tata Realty has unveiled an ambitious plan to triple its office space portfolio within the next seven years. This significant expansion underscores the company’s commitment to becoming a dominant player in the commercial real estate market. Moreover, it reflects Tata Realty’s confidence in the growing demand for high-quality office spaces in India. The decision to expand is driven by the increasing demand for premium office spaces. As businesses continue to grow and new startups emerge, the need for modern and efficient office infrastructure has never been more critical. Because of this trend, Tata Realty aims to cater to the evolving needs of companies looking for state-of-the-art office environments. One of the key elements of Tata Realty’s expansion plan is the selection of strategic locations for new developments. The company intends to focus on major metropolitan areas, such as Mumbai, Delhi-NCR, Bengaluru, and Hyderabad. These cities are not only economic hubs but also attract a substantial amount of domestic and international business investments. Furthermore, Tata Realty is committed to incorporating sustainable development practices in its projects. The company plans to design and construct office spaces that are energy- efficient and environmentally friendly. This approach aligns with global trends toward sustainability and reflects Tata Realty’s dedication to corporate social responsibility. To support this expansion, Tata Realty will make substantial investments in acquiring land and developing infrastructure. The company is exploring various financing options, including equity funding, debt financing, and joint ventures. Such a diversified approach to funding will help mitigate risks and ensure the successful execution of the expansion strategy. Tata Realty also aims to enhance the tenant experience by offering flexible and customizable office spaces. By understanding the unique requirements of different businesses, Tata Realty can provide tailored solutions that cater to the specific needs of its tenants. This customer-centric approach is expected to attract a diverse range of clients, from startups to multinational corporations. In addition, Tata Realty plans to leverage technology to improve the efficiency and functionality of its office spaces. Smart building technologies, such as automated lighting and climate control systems, will be integrated into new developments. This will not only enhance the comfort and productivity of occupants but also contribute to energy savings. However, expanding the office space portfolio comes with its own set of challenges. These include regulatory hurdles, land acquisition issues, and potential market fluctuations. Tata Realty is prepared to address these challenges by working closely with government authorities, adopting flexible strategies, and continuously monitoring market trends. In conclusion, Tata Realty’s plan to triple its office space portfolio in the next seven years is a testament to its long-term vision and strategic foresight. By addressing market demand, focusing on sustainable development, and leveraging technology, Tata Realty is well-positioned to achieve its ambitious goals. This expansion will not only strengthen Tata Realty’s market presence but also contribute to the overall growth of the commercial real estate sector in India. Source : The Economic Times INDIA

Global BFSI companies take up commercial space in hyderabad

7/10/2024 2:15:00 AM

Hyderabad is poised to consolidate its position as a preferred destination for facilities of Banking, Financial Services and Insurance (BFSI) firms on the back of its strategic location as well as government’s commitment to foster a thriving business environment. The city is likely to attract more major BFSI players in the coming quarters thus strengthening its position as a comprehensive business destination catering to diverse industries, government sources said, citing as examples the decision of Cigna Healthcare, Lloyds Bank, Swiss Re, MetLife, DTCC and Ameriprise. While Hyderabad has emerged as a prominent IT hub, the first half of 2024 (January-June) saw several BFSI organisations establishing presence signifying a significant shift contributing to Hyderabad’s position as a well-rounded business hub. The developments reflect the growing confidence in the city’s robust infrastructure, skilled workforce, overall business environment and a stable political environment. The office leasing activity is an indicator of growing engagement of BFSI in Hyderabad with the sector H1-2024 accounting for as much one third of office space offtake. It also highlights the supportive, robust ecosystem Hyderabad fosters and benefits not just large corporations but also for startups within the BFSI sector. Source : Times of India INDIA

HDFC Capital to Invest $2 Billion in Affordable Housing by 2025

7/9/2024 1:46:00 PM

HDFC Capital Advisors is making a substantial investment in affordable and mid-income housing, with plans to allocate more than $2 billion to this sector across India’s major property markets by the end of 2025. This move aims to address supply-side constraints, according to a senior company executive. As the world’s largest affordable housing platform, HDFC Capital, which includes the Abu Dhabi Investment Authority (ADIA) as a key investor, is progressing towards its goal of financing 1 million affordable homes in India through partnerships with leading developers. “The government recently announced support for 3 crore affordable homes, including 1 crore in urban areas. This presents a $500 billion business opportunity, requiring at least $100 billion in investments from public and private markets, as well as debt. HDFC Capital will continue to invest in this segment's supply side,” stated Vipul Roongta, MD & CEO of HDFC Capital Advisors. The fund aims to deploy at least $1 billion annually over the next two years in affordable and mid-income housing across the top 15 Indian cities, including the Mumbai region, Delhi NCR, Bengaluru, Pune, Hyderabad, Chennai, Kolkata, and Ahmedabad. In the last six months alone, it has committed $1 billion to affordable and mid-income housing projects, highlighting the significant demand for capital in this sector. “Despite the current perception of a premiumization in India’s property markets, demand for affordable housing remains strong and is unlikely to diminish soon. Industry estimates suggest an affordable housing shortage of around 35 million units in urban India by 2030,” Roongta explained. The development of affordable housing in India has lagged behind demand due to high land prices, limited participation from large developers, and financing challenges. Roongta noted that India's ongoing demographic dividend, expected to last for the next 30 years, will boost purchasing power and lead to a consumption boom. By 2030, over 200 million households are projected to be in the upper middle class and above category, up from 70 million in 2018, fueling sustained housing demand. One indicator of this robust demand is the high demand for housing despite rising mortgage rates. Roongta believes that affordable and mid-income housing is now a key driver for India’s real estate sector. He predicts the sector’s GDP contribution will increase from the current 7% to nearly 15% by 2030, due to its multiplier effect on more than 250 ancillary industries. He estimates that meeting the demand for affordable housing will contribute around $2 trillion to the GDP. Aligned with the Indian government’s ‘Housing for All’ goal, HDFC Capital was established in 2016 to finance affordable housing development by providing flexible, long-term capital to developers. In its portfolio, unit prices start from Rs 12.50 lakh, with around 40% of units priced below Rs 42 lakh. The fund has invested in over 175 projects, contributing to the development of over 250,000 units. HDFC Capital manages a $3.5 billion funding platform, acting as the investment manager for HDFC Capital Affordable Real Estate Funds 1, 2, and 3. ADIA, which holds a 10% stake in HDFC Capital Advisors, is the primary investor in these funds. Globally, this is ADIA’s first investment in a fund manager. HDFC Capital’s funds provide long-term, flexible financing across the lifecycle of affordable and mid-income housing projects, including early-stage funding. Additionally, the funds invest in technology companies involved in the affordable housing ecosystem, such as construction technology, fintech, and cleantech. HDFC Capital aims to finance the development of one million affordable homes in India through innovative financing, partnerships, and technology, with a focus on sustainability. Source : The Economic Times INDIA

Welspun One’s second fund raises ₹2,275 crore, to focus on warehousing assets

7/9/2024 1:51:00 AM

Welspun One, an integrated fund and warehouse development company of Welspun Group, has raised Rs 2,275 crore for its second fund. This is the largest domestic fundraise in the warehousing space, the company said on Monday. The capital was sourced from nearly 800 limited partners or investors, including high-net-worth and ultra-high-net-worth individuals, family offices, corporates, and domestic institutions. Combined with its first fund, which raised nearly Rs 500 crore in early 2021, Welspun One’s investor base now comprises of approximately 1,000 investors. Its Fund 2 has committed nearly 40% of investible capital across four investments, and anticipates committing the remaining over the next three-four quarters, given a robust pipeline of deals. This will add 8 million sq ft to Welspun One’s existing portfolio of ~10 million sq ft, taking their aggregate portfolio to ~18 million sq ft and entailing total project outlay of $1 billion. Welspun One’s focus for Fund 2 is on new-age warehousing assets, such as urban distribution centres, cold chain, agro logistics, and port and airport-based logistics, it said. “These niche sectors offer the potential for superior returns due to low existing supply, strong demand and growth, but limited competition,” it said. Some of the deals are a mixed-use urban logistics development in Thane near Mumbai of close to 1 million sq ft with an estimated cost of Rs 600 crore, and a partnership with the Jawaharlal Nehru Port Authority (JNPA) to develop industrial and warehousing infrastructure in the JNPA special economic zone. This project has a development potential of nearly 1.3 million sq ft at an estimated cost of Rs 700 crore. To date, Fund 1 is fully committed with six investments, aggregating to a development potential of nearly 7.2 million sq ft across 300 acres in five cities. About 50% of this has already been delivered, with the remaining scheduled for delivery over the next four to six quarters, it said . Fund 1 recently delivered its first exit via the sale of its investment in a 0.3 million sq ft park in NCR, sold to an Asia-focused logistics REIT in a transaction valued at Rs 90 crore. Welspun World is looking to streamline logistics operations and stimulate industrial growth through strategic investments in essential infrastructure, according to chairman Balkrishan Goenka. Source : The Economic Time INDIA

Whiteland Corp to develop Rs 5600-cr Westin Residences in Gurugram

7/9/2024 1:44:00 AM

NCR-based Whiteland Corporation entered into a pact with Marriott International on Thursday to bring Westin Residences to Gurugram. The total project investment is estimated at around Rs 5600 crore, which includes construction cost of Rs 5000 cr and land cost of Rs 600 cr. The project topline is pegged at Rs 15000 cr. Located along the Dwarka Expressway, Westin Residences Gurugram is strategically positioned in Sector 103, a 15-minute drive from the CBD of Gurugram and a 15-20 minute drive from the residential areas of South and West Delhi, and close to International Airport and landmarks such as the India International Convention Centre (Yashobhoomi), upcoming DDA Dwarka Golf Course and Diplomatic Enclave, a premium catchment of expats and diplomats catering to over 35 embassies. Westin Residences Gurugram is slated to be the largest branded residences and the first standalone residential (without a hotel on-site) property in India under the renowned Westin brand, promising a blend of exclusivity, wellness, and world-class hospitality. The Residences is poised to meet the growing demand in India from discerning buyers seeking hotel-inspired lifestyle with personalized services, global concierge and more. The first phase, consisting of 674 exclusive residences, is set to be launched in the second quarter of this financial year. The Residences will be an urban resort featuring three and four-bedroom residences ranging from 235 sqm to 386 sqm, where homeowners will have access to high-end amenities while enjoying 20 acres of beautifully-landscaped grounds dedicated mainly to recreation and outdoor activities. Commenting on this, Pankaj Pal, Managing Director of Whiteland Corporation, said, “We are delighted to sign an agreement with Marriott International to bring Westin Residences to India. We believe this unique proposition will herald in a new era in the Indian real estate. The Westin Residences Gurugram will redefine premium home ownership with exceptional service and attention to detail, offering a prestigious address that will bring pride and joy to its residents. Our commitment to creating world-class residential developments, supported by award-winning international consultants, ensures an unparalleled ecosystem for our buyers.” Source : The Economic Time INDIA

Delhi HC sets aside Punjab & Sind Bank's decision to withdraw its Rs 120 cr OTS given to real estate co Ambience Pvt Ltd

7/8/2024 3:29:00 PM

Terming it “arbitrary and unsustainable,” the Delhi High Court has set aside the Punjab and Sind Bank's decision to withdraw its Rs 120 crore one-time loan settlement (OTS) given to real estate firm Ambience Pvt Ltd for the construction and development of a residential project in Noida, UP. The HC said that it is well settled that OTS offer, its acceptance and the sanction letter constitute a sufficient contract. “Thus, the Punjab and Sind Bank, which is a nationalized bank and an instrumentality of the State, cannot act arbitrarily or whimsically in matters of contract. OTS is binding on the bank and cannot be unilaterally withdrawn after accepting payments.” “Accordingly, the letter dated August 1, 2023, issued by the bank withdrawing the OTS (one-time settlement), is hereby set aside. Consequently, the bank is directed to release the securities furnished by the company in the subject Loan Account, and release charge thereon,” Justice Mini Pushkarna held, adding that the withdrawing the OTS is a “cryptic order, bereft of any reasons.” Citing the law laid down by the Supreme Court, the judge said that it is clear that terms of sanction are alone final and binding on the parties. “Any negotiations or discussions, prior to the sanction or subsequently consented to be added by one party, which is not reflected in the Sanction Letter, is not binding on the parties. Therefore, the averments made by bank that certain discussion took place prior to sanction which provides for a right to recompense to the bank, cannot be countenanced. Terms of negotiations which were not subsequently made part of the sanction, cannot be a binding obligation,” she added. Ambience was granted a term loan of Rs 155 crore by P&S Bank towards part financing for the construction and development of a Real Estate Project at Sector-50, Noida under Multiple Banking Arrangement in March 2013. Other banks Punjab National Bank (erstwhile Oriental Bank of Commerce) and HDFC Ltd had also advanced loan of Rs 124 crore and Rs 25 crore, respectively for the project. Initially the loans were sanctioned and disbursed by the banks under Multiple Banking Arrangement. Later on, consortium was formed amongst the participating banks and PNB was appointed as the lead bank. The company had repaid the full loan of HDFC in July 2018. With a view to pay off its debts, the company in February 2023 made separate OTS proposals to PNB and Punjab and Sind Bank. The company’s offer of OTS of Rs 122 crore was accepted by Punjab and Sind Bank. In May 2023, the company had forwarded a no-dues certificate to Punjab and Sind Bank which it received from PNB, stating that the entire dues of the latter had been fully repaid in normal course without a one-time settlement. Thereafter, on August 1, last year, the builder deposited the entire OTS amount to Punjab and Sind Bank, which withdrew the extension of time granted to the firm and also recalled the OTS alleging deviation and concealment by the builder. Punjab and Sind Bank alleged that the company misrepresented them and had given a better offer to Punjab National Bank by making full payment to the latter. However, the HC rejected the bank’s stand, saying Ambience had paid the entire OTS amount along with interest, stipulated in the sanction, thus, there is no question of any deviation or violation or breach of the sanction terms. Source : The Economic Time INDIA

Noida Authority approves changed plans for all Unitech projects

7/8/2024 3:26:00 PM

The Noida authority has approved the layout maps of housing projects being developed by Unitech Group, which is yet to deliver apartments to thousands of homebuyers who have been waiting for over a decade to get their homes. With the layout approval, Unitech can now resume work on incomplete projects and deliver homes to buyers, said Noida authority officials on July 3. The Noida authority was until now refusing to approve the map layouts till the realtor cleared its dues amounting to nearly ₹11,000 crore, said officials in the know of the matter. However, on April 26, 2024, the Supreme Court issued directions to the authority to clear the layout maps, without insisting that the realtor clears the dues first, said officials. “We have approved the layout of incomplete housing projects in Noida on the orders of the Supreme Court. We have also communicated the same to Unitech Group board as directed in the apex court order,” said Lokesh M, chief executive officer, Noida authority. With the layout approval, Unitech can now resume work on incomplete projects and deliver homes to buyers, said Noida authority officials on July 3. The Noida authority was until now refusing to approve the map layouts till the realtor cleared its dues amounting to nearly ₹11,000 crore, said officials in the know of the matter. However, on April 26, 2024, the Supreme Court issued directions to the authority to clear the layout maps, without insisting that the realtor clears the dues first, said officials. “We have approved the layout of incomplete housing projects in Noida on the orders of the Supreme Court. We have also communicated the same to Unitech Group board as directed in the apex court order,” said Lokesh M, chief executive officer, Noida authority. In its order on April 26, the Supreme Court divided the total Unitech land into two parts -- one where homebuyers have been allotted flats and plots, and the other where projects are yet to be launched and the land is lying vacant. The SC instructed the authority to approve the layouts of the first part where homebuyers have been unable to get their flats and projects are lying partially completed, said officials. The Unitech Group board chairman YS Malik said they will start construction at the site without delay once the environmental clearance and other approvals are obtained. “We have already roped in the construction contractors, who are eager to resume work provided all clearances are in place. We have applied for environmental clearances and also the consent to establish from the environmental bodies. We do not know when these will be issued. As and when they are issued, work at the site will begin. Also, we cannot provide a fixed completion and delivery date because that would depend on several factors. But if fund flow is assured, then work will be completed on time or before time,” said Malik, who is in control of Unitech Group. According to the authority’s data, Unitech has 443 acres in sectors 96, 97, 98, 113 and 117. “In all, the Noida authority approved layout maps of projects being developed on 246 acres, which had partially completed projects, while the remaining 197 acres are lying vacant. INDIA

Haryana Allows Stilt Plus Four Floor Construction

7/8/2024 3:25:00 PM

Haryana's Urban Local Bodies Minister, JP Dalal, announced on Tuesday that the state government now permits the construction of stilt plus four floors (S+4) across the state. This decision also applies to old colonies with certain conditions. The move aims to benefit the general public. Minister JP Dalal stated that residential plots in colonies and sectors with approved layout plans for four residential units per plot can now construct S+4 floors without any conditions. Additionally, Deen Dayal Upadhyay Jan Awas Yojana colonies with a license and approved service plans for four units per plot are also included. In areas where layout plans are approved for three residential units per plot, S+4 construction is allowed if the road width is 10 meters or more. However, the owner must obtain consent from neighbours. If consent is not given, the owner can still build by leaving a 1.8-meter space from the adjoining house. If a neighbour refuses consent, they will be ineligible to construct S+4 in the future. For plots already permitted to construct three floors and a basement, new S+4 permissions will not allow basement construction or load-bearing on common walls unless there is mutual consent among neighbouring plot owners. If an entire row of plots is constructed simultaneously, common wall construction is permitted. Plots auctioned by Haryana Urban Development Authority (HUDA) with purchasable floor area ratio (FAR) can either construct S+4 or request a refund of development rights. Refunds come with 8% interest from the application date and must be requested within 60 days of the refund order issuance. If a plot does not qualify for three or four-floor construction, the owner can get back the entire auction amount plus 8% interest from the refund request date. This application also has a 60-day submission window from the refund order date. An amount of Rs 1178.95 crore has been collected for S+4 approvals: Rs 689.8 crore by Urban and Village Planning, Rs 466.3 crore by HUDA, Rs 2.62 crore by HSIDC, and Rs 20.23 crore by Urban Local Bodies Department. This fund will enhance infrastructure in various sectors and colonies. The department will launch a portal to address S+4-related issues and provide public access to permissions and other relevant information. To prevent covering stilt areas, future building plan approvals or occupancy certificates will include conditions that if stilt areas are covered, approvals will be withdrawn. Standard operating procedures have been established for unauthorized S+4 constructions without building plan approval. Offenders can apply for compounding of offences to the competent authority. If no objections were raised during construction, permission will be granted within 90 days after recovering composition fees. If objections were raised by neighbouring plot owners during construction, they will have another chance to submit mutual agreements and consents. If consent cannot be obtained, the case will be decided through a speaking order. Unauthorized constructions can be compounded at rates ten times higher than those prescribed under the Haryana Building Code. Previously, FAR was allowed for up to 2.5 floors; additional floors required extra payment for FAR approval. The government has now increased rates by up to 25% for plots between 250 and 350 square meters. Additional Chief Secretary of Urban and Village Planning Department Arun Kumar Gupta, Director Amit Khatri, and other senior officers were present during this announcement. Source : The Economic Time INDIA

Punjab govt starts 3D mapping of land

7/6/2024 3:29:00 PM

Mohali: The Punjab government has started 3D mapping of the land provided for setting up of a new building of Dr B R Ambedkar State Institute of Medical Sciences (AIMS). The new building will come up near the Institute of Nano Sciences and Technology (INST) in Sector 81, where 28-acres of land has been finalised. The land has also been formally handed over to the Dr B R Ambedkar State Institute of Medical Sciences (AIMS). AIMS director-principal Dr Bhavneet Bharti said, “The 3-D mapping of the land is being done with a view to ensure best possible building layout plan for a medical college. Thereafter, a detailed project report will be prepared and work will be allotted for the construction of the building.” The project is already running behind schedule as after finalising the land last year, the project was to be started in 2023, but construction was delayed. The project is to be completed in 30 months, once started. At present, the medical college is operating from the premises of civil hospital building in Phase VI Mohali, and earlier, the land was earmarked at Jujhar Nagar, just behind the civil hospital for setting up of medical college. But due to non-favourable conditions, the land at Jujhar Nagar was scrapped. Three sites were shortlisted for the proposed medical college, near Phase VI; Medicity in New Chandigarh, and Sector 81, where the Punjab government had acquired 381 acres to set up an integrated Knowledge City in 2009. Source : The Economic Times , The Times of India INDIA

Haryana government announces new policy to convert residential plots to commercial

7/6/2024 3:07:00 PM

The Haryana cabinet has approved a policy that allows for the conversion of residential plots into commercial ones within planned schemes, according to an official statement. This move is seen as an attempt to address the evolving needs and demands within the urban development landscape. The Haryana Municipal Urban Built-Plan Reform Policy, 2023 was given a green signal at a state cabinet meeting presided over by Chief Minister Manohar Lal Khattar. Khattar stated that various planned schemes such as rehabilitation schemes and town planning have been implemented over the years in municipal areas to facilitate systematic urban development. These schemes were then handed over to their respective municipalities for management and maintenance. However, changing circumstances have led plot owners to convert residential plots for non-residential purposes, which were not originally permitted. In response to this trend, there arose a need to regulate such conversions by establishing norms and procedures. The new policy will apply to planned schemes within core areas of municipal limits excluding those developed by several bodies including Haryana Shahri Vikas Pradhikaran HSVP, Housing Board Haryana, Haryana State Industrial Infrastructure Development Corporation, and areas governed by Town and Country Planning Department Haryana. Application Process To apply for conversion under this policy property owners are required to pay certain fees including a scrutiny fee of Rs 10 per square metre, conversion charges as per the notification of the Town and Country Planning Department, development charges amounting to 5% of commercial collector rate per square metre along with a composition fee on converted area. All applications will be facilitated through an online portal developed by the Urban Local Bodies Department. Benefits & Regulations This policy is expected not only benefit property owners but also generate revenue for government from conversion charges and development charges. It would also help regulate commercial activities in planned areas, leading to better urban planning and development. Municipalities will conduct surveys to identify illegal commercial conversions and map road rights-of-way and affected plots. They will issue notices to property owners of illegal conversions, giving them 30 days to restore the property or apply for regularisation. Source : The Economics Times INDIA

Himachal Pradesh's New Township Plan Near Shimla

7/5/2024 5:08:00 PM

Himachal Pradesh government has declared to construct a township at Jathia Devi in Shimla. The proposal of this township has already been submitted to the Ministry of Housing and Urban Affairs. The proposed cost of making this township including the land acquisition of Rs.1374 crore. According to the statement of town and country planning minister Rajesh Dharani's written statement to Congress MLA Sudhir Sharma. The Town and Country Planning (TCP) Department has created the Jathia Devi Planning Area by excluding 177 villages from the Shimla Planning Area. He also added that, the ministry of housing & urban affairs will contribute Rs. 512 crore and state govt will pay Rs.862 crore. A contract was additionally entered into with a Singaporean firm for the establishment of the township, but the former BJP administration discontinued the undertaking. Notably, the BJP government had resolved to vend plots and apartments to be constructed by the HP Urban Development Authority (HIMUDA) at this location. Intriguingly, the Shimla Draft Development Plan also encompassed a proposition for four satellite townships in the outskirts of the state capital, namely Ghandal, Naldehra, Fagu, and Chamiyana. Nevertheless, the implementation of the plan was deferred due to judicial directives. Dharani also added that, an intra state bus terminal has been proposed within the project area. The entire township is spread across a land parcel of 135 hectares and it will have three residential zones for HIG, MIG and LIG. Within this area, 16.56 hectares will be used for green zone/river development zone along the existing nullah, 13.36 hectares will be used for commercial development and projects 16.42 hectares will be used for constructing recreational green zone. Source: The Economic Times Chandigarh

DLF's net profit increases by 61.49% in Q4 FY24

7/5/2024 5:02:00 PM

DLF witnesses an increase of 61.49% in its net profit for the Q4, Fiscal Year 2024 Delhi Land & Finance developer has published a splendid net consolidated total income of Rs 2316.70 cr in Q4FY24 when corresponding to the previous year’s collection at Rs 1575.70 cr in quarter 4th. DLF, India’s well-known real estate company, has reported a profit after tax growth at Rs 919.82 cr in Q4FY24, in comparison to its Rs 569.50 cr profit after tax in the corresponding quarter of the previous fiscal year 2023. Also, the DLF’s consolidated net income in the fiscal year 2024, quarter fourth stood at Rs 2,316.70 cr against the reported collection of Rs 1,575.70 cr in the FY23, same quarter. ‘’Development business record sales booking of Rs 14,778 cr during the year. We plan to launch more than 11 million square feet of new products during FY25 targeting various markets including Gurugram, Mumbai, Goa and Chandigarh Tri-City. The estimated sales potential of these launches is approximately Rs 36,000 crores,’’ stated the company via its press release. Further, the company voiced several other results such as cash flow from operations and the future plans and sales potentials in the Millenium City ‘Gurugram. ‘’We remain focused on cash flow generation and consequently generated a record cash flow from operations of Rs 4,385 cr during the year. We acquired a strategic opportunity in sector 61, Gurugram offering a sizable potential of approximately 7.5 million square feet and an estimated sales potential of more than Rs 20,000 cr,’’ the Delhi Land & Finance (DLF) said in the press release. DLF has also successfully worked to get approval for the scheme of fusion between DLF Estate Developers, Kirtimaan Builders, Ujagar Estates, Alankrit Estates, and Tiberias Developers with the DLF utilities, by the National Company Law Tribunal - Chandigarh Bench. The Retail business of the DLF glimpsed an 18% YOY growth rate during the same period ie., the fourth quarter of FY23. Source: The Economic Times Chandigarh

How the Indian real estate sector drives the nation’s economy

3/24/2023 3:08:00 AM

While a lot of impetus is being given to developing India into a global manufacturing hub, the role of the domestic real estate sector in generating employment, adding real economic value, and its add-on effect on other industries is often overlooked. In fact, the real estate industry is the second-largest employment generator after agriculture and has been contributing about 11% to Gross Value Added (GVA) growth since 2011-12. A critical engine of growth and employment, with both forward and backward linkages, it is estimated that nearly 50% of India’s GDP is linked with the domestic real estate sector. Employing a large labour force in nation building Construction and allied activities absorb a large number of skilled and unskilled workforce, with many being employed from rural hinterlands where agriculture continues to remain the only source of employment. According to conservative estimates, nearly 70 million Indians are employed in the real estate sector as of 2022, with the overall sector slated to surpass the $1 trillion mark by 2030. What’s more, with the implementation of the RERA Act, sprucing up of labour laws, and a stark improvement in overall compliance, those engaged in the Indian real estate sector are benefiting from the large strides being made in recent years. Providing demand for key supplier and ancillary services industries With more than 270 allied industries being dependent on the real estate sector for business sustenance, this important sector has an important add-on effect along the entire supply chain. Key supplier industries like steel, cement, timber, and construction materials as well as ancillary services industries such as design, contracting, facility management, leasing & property consultancy are some prime examples. As activity in the real estate sector ramps up, there will be a wider positive multiplier effect on associated industries and those engaged in them. Driving rapid urbanization with critical housing and commercial infrastructure The rapid pace of urbanization has been a key driver of India’s economic growth over the past few decades, with urban centres such as Bengaluru, Mumbai, NCR, Pune, and Hyderabad attracting human and economic capital en masse. The real estate sector in conjunction with local governments, private developers, and infrastructure companies has played a key role in this transformation. With India slated to reap the benefits of its rich demographic dividend till at least 2050, the task of sustaining this rate of urbanization and creating the necessary infrastructure to support the country’s large young workforce will fall on the Indian real estate sector. Moreover, premiums, development and approval charges accruing from real estate related activity will continue to be a major revenue source for local government bodies and state governments, facilitating further socioeconomic development across the length and breadth of the country. Facilitating large foreign investment inflows that drive further growth With the real estate sector providing important infrastructure that remains pivotal to fuelling the Indian growth story, high-quality real estate projects and firms involved in their construction are attracting strategic and foreign investments in the country today. Capital inflows from marquee private equity (PE) firms and other foreign entities swelled to $24 billion between 2017 and 21, recording a 200% growth as compared to the preceding five-year period. Verticals such as warehousing, industrial parks, and data centres are also expected to give the Indian economy a much-needed boost as both domestic and international players rush to set up their distribution centres in the country today. An important asset class and source of wealth for millions of Indians As more Indians are deploying their savings into wealth creation avenues that can also significantly improve their lifestyle, both residential and commercial real estate are increasingly gaining precedence over other traditional asset classes like fixed deposits or gold. In fact, the real estate sector has traditionally been a major asset class and source of wealth creation for Indians, with new-age products such as REITs appealing to younger investors who are still not ready to buy their first home. The real estate sector remains a key source to channel savings for crores of Indian households, with recent improvements in the regulatory environment only adding to consumer confidence. Source: Financial Express INDIA

'Indian Real Estate Emerging As Preferred Investment Option Amid Market Volatility'

3/7/2023 12:45:00 PM

The real estate in India is currently rapidly emerging as an investment of choice by the increased number of investors, both Indian and NRI, in a background of market volatility and equity markets stagnating amidst increasing inflationary pressures. Due to the attractive rental yields and the potential for further price appreciation across India in both the metros and other cities, real estate is seen as a good bet. Rapid urbanisation and a rising population contribute to increased demand for affordable housing units in major Indian cities. Despite real estate prices already appreciating between 10 per cent and 30 per cent across India in 2022, India’s growth story is attracting venture capital (VC) interest across segments of the Indian real estate sector. In a recent survey conducted by the CII, 59 per cent of respondents are strongly inclined to invest in real estate, while only 28 per cent continue to prefer investing in Indian equity markets. Nagpur, Coimbatore and Indore have the highest year-over-year rental demand, propelling the growth of India’s commercial real estate sector. This expansion is also evident in the office leasing market, which is anticipated to increase by 10 per cent to 15 per cent in the coming fiscal year. Some of the factors impacting this trend include: Growing Social Infrastructure in Tier-II and Tier-III cities A significant trend has been the rising demand for modern office space and the emerging trend of urban and semi-urban housing. In addition, the expanding e-commerce sector in the country is driving up the demand for storage facilities, which is providing a boost to the market. In addition, the increasing use of telecommunication services, the implementation of 5G standards, and the localisation of data have increased the demand for data storage facilities. In turn, this positively affects the demand for resilient data centre infrastructure, bolstering the market growth. Increased acceptance of hybrid models in 2022 has resulted in a huge upsurge in major cities for office space. According to a survey, the office market’s net absorption in the top-7 cities, including Mumbai, Bengaluru and Hyderabad, reached a three-year high of 38.25 million square feet in 2022. Moreover, the net absorption for 2022 has exceeded the five-year pre-pandemic average (2015-2019) by 3.1 per cent, demonstrating the robustness of the Indian office markets. Increased acceptance of hybrid models in 2022 has resulted in a huge upsurge in major cities for office space. According to a survey, the office market’s net absorption in the top-7 cities, including Mumbai, Bengaluru and Hyderabad, reached a three-year high of 38.25 million square feet in 2022. Moreover, the net absorption for 2022 has exceeded the five-year pre-pandemic average (2015-2019) by 3.1 per cent, demonstrating the robustness of the Indian office markets. Increase in NRI Investment Foreign and domestic investors are capitalising on this growth, particularly in their own cities, with millennials comprising roughly half of these investors. Not only commercial real estate but also ultra-luxury apartments and vacation homes have seen an increase in investor interest. The strengthening of the dollar against the rupee incentivises investors to enter the domestic market with enhanced purchasing power. Newer proptech platforms have contributed to this growing interest by revolutionising the real estate industry and enabling the seamless onboarding of individuals regardless of their geographical location. This will continue to attract non-resident Indians to India’s real estate market. Changes in Policy Environment Aside from this, various initiatives undertaken by the Indian government, such as investments in smart city projects and tax exemptions for housing loan interest, are anticipated to create lucrative business opportunities for industry investors in the country. By 2030, the demand for Grade-A premium office assets in India is projected to reach 1.2 billion square feet. This expansion is fuelled by various factors, including a high return on investment, increased NRI and FDI investment, and strengthened government initiatives. Increased Demand for Ultra-Luxury Units and Vacation Homes With rising household incomes and an increase in the number of Indians among the world’s wealthiest individuals, the ultra-luxury residential real estate market has been booming, with demand frequently exceeding supply. Even in markets such as Mumbai, Delhi, Bengaluru, and Kolkata which have historically had a healthy pipeline of such units, consumers are increasingly opting for projects with amenities comparable to those provided by international developers. This shift in consumption habits has prompted Indian real estate developers to launch new luxury housing projects that cater to this expanding group of domestic investors. Other key factors, such as India’s emergence as a global IT power, the growth of the e-commerce industry, etc., would result in a significant increase in demand for spaces such as data centres and sophisticated warehouses. Commercial spaces will increase in Tier-II and Tier-III cities in 2023, acting as a significant employment-creating catalyst. In 2022, the office, warehouse, residential, and retail real estate sectors collectively attracted private equity investments totalling $5.1 billion. This demonstrates the industry’s optimism regarding the sector’s growth. However, the developer community must look to achieve the same construction and design standards as developed nations. Increased focus on raising capital through additional channels, such as real estate investment trusts (REITs), attracting more Indians to actively invest in the country’s real estate economy. With REITs providing proportional ownership of income-generating real estate assets, more Indian developers will need to establish their own REITs, educate investors on their potential for long-term value creation, and seek more investments via this route. This will attract more foreign investment and leverage the country’s large population to establish a sustainable financing model that will propel the Indian real estate industry to new heights in 2023. Source: News 18 INDIA

Key Indian property markets see 5-7% rise in housing prices in March quarter

3/4/2023 4:07:00 AM

Residential real estate has continued to witness firm growth in demand and conversion across India’s key property markets during the quarter ended March with a steady rise in prices. This also marks the fifth consecutive quarter of year-on-year growth in prices across all markets. Even in sequential terms, prices have either remained steady or grown across markets during the quarter. Prices have grown significantly across most markets led by Bengaluru, Mumbai, Chennai, and Hyderabad with 5-7% appreciation, showed data from Knight Frank India. The residential market has stepped into 2023 on a stable footing with the first quarter of the year registering sales of 79,126 units, up 1% from a year ago when home loan rates were at record low of 6.6% as against 9% now. Sales grew the most in the Hyderabad market at 19% from a year ago while slipping slightly in the larger markets of Mumbai and Bengaluru at 6% and 2%. “Given the cautious but optimistic sentiment in the market, we do not believe that home loan rates approaching 2019 levels (9.2%) will be enough to subdue market momentum significantly. The performance of the broader economy and homebuyer sentiment will have a greater bearing on market momentum in 2023 as it dictates homebuyer income levels and demands much more directly,” said Shishir Baijal, CMD, Knight Frank India. Consistent with the upward trend seen in the past three quarters, the share of sales in the Rs 1 crore and above ticket-size grew to 29% from 25% a year ago given the homebuyers’ need to upgrade to larger living spaces with better amenities. The share of home sales in the Rs 50 lakh to Rs 1 crore category also grew 38% from 35% a year ago. The share of the Rs 50 lakh and below ticket size, however, deteriorated from 41% a year ago to 32% during the quarter, as rising prices, higher interest rates and a comparatively more adverse impact of the pandemic on homebuyers in this segment continued to weigh on demand. “Rising interest rates have certainly impacted the sales of rate-sensitive segments of affordable and low-income group housing. The 2.5% increase in repo rate in a short span since last May has increased the homebuyers’ burden. Real estate industry has linkages with over 260 other sectors and therefore impacts the entire economy. We hope that the central bank will take cognizance of this in the upcoming policy meeting,” said Sandeep Runwal, President, NAREDCO – Maharashtra. Homebuyers have been more inclined to purchase ready or near-ready inventory to minimise completion risk earlier. However, the heightened demand over the past few quarters has depleted the inventory, and consumers are now increasingly willing to acquire newly launched properties at relatively lower prices. This is reflected in the average age of inventory decreasing to 16.7 quarters during the quarter from 16.9 quarters a year ago. The unsold inventory level has increased 6% from a year ago as fresh development activity has intensified. However, the Quarters to Sell (QTS) level has dropped to 7.2 quarters as of March end on the back of heightened sales, compared to 9.1 quarters a year ago. The QTS level represents the number of quarters required for the existing unsold inventory to be consumed at the current rate of sales. A reducing QTS level depicts a market where demand is gathering momentum. Mumbai recorded sales of 20,300 new homes during the quarter, highest among the top eight markets. While still robust, sales were lower 6% on-year when compared to a strong year ago period when impending metro cess implementation had also bolstered sales. Besides, Mumbai is the most unaffordable market in India and the recent spate of price increases and rate hikes will be felt more acutely here. However, launches have continued unabated with 9% rise. The prices rose 6% indicating the momentum in the market. The Delhi-NCR market witnessed stable demand as sales rose marginally 2% to 15,392 units, while launches rose 12% to 14,486 units. The prices have appreciated at a steady pace of 3%. In Bengaluru, average prices rose 7%, a testimonial to the underlying confidence of the market. The number of units sold reduced marginally by 2% to 13,390 units, while launches were second highest in the top 8 cities at 12,073 units, up 19%. The resilient Hyderabad market experienced substantial growth despite the rate hikes and concerns around economic slowdown as it saw 19% rise in sales at 8,300 units during the quarter. New launches rose 7% to 10,986 new units, while prices grew 5%. Source: The conomic Tmes

Aspiring millennials to drive the real estate market in 2023

3/3/2023 3:06:00 AM

Driven by the limitless ambitions of its youth, New India is shining brighter than ever before. This millennial generation is not shackled by the doubts and fears of its predecessors, but rather soars on the wings on determination and self-assurance. While previous generations believed in renting homes and buying a home after reaching a certain age, the millennial demographic refuse to compromise on buying the home of their dreams. Millennials contribute 34% of India’s population, which is close to 440 million people. Next generation of homebuyers that is driving the real estate growth in 2023 he pandemic has changed their mind set in more ways than one. Millennials are now keener than ever to invest in the real estate market. Even in the wake of geopolitical uncertainties, the demand for real estate has continued to rise due to the sanguine outlook of the millennial homebuyer. In the era of globalisation, this generation enjoys the highest purchasing power than any generation before. The aspirational millennial is more aware than ever before of the value of real estate as an investment. Indian millennials are a very important market. They are in their peak buying years and have easy access to home loans. This demographic contributed to over 50 percent of homes sold in 2020, and they were a major driver in the Indian real estate market crossing the mark 54% in 2022. Extrapolating these growth trends, the Indian real estate sector is forecasted to cross 1 trillion dollars by 2030, which will contribute to over 13 percent of the national GDP. Paradigm shift in the way residential properties are developed across India Unlike their previous generations, millennials have a quintessential approach to buying property. Unlike their predecessors, they see a house not just as a commodity but as an indulgent investment, and therefore they have specific needs and expectations when it comes to choosing a home. Discerning, demanding and determined, this generation expects the real estate properties that are integrated with modern and smart amenities at par with the global standards. Their hopes and dreams are bound only by their fearless audacity to aim higher than any generation that came before them. Millennials want smart spaces that allow them to work from home, while also offering expansive green open spaces, culturally vibrant entertainment zones, wide balcony areas, My spaces for mee time and secure and sophisticated digitally-enabled surveillance systems. Additionally, they seek homes that offer a complete integrated living experience, with diverse amenities that make daily life easier and entertaining. These include a plethora of facilities such as engaging clubhouses, children-friendly pool decks, gymnasiums, diverse fitness studios, state-of-art libraries, spacious community halls, and integrated sports complexes. Digitally-inspired generation Millennials are digitizing the home buying experience. From virtual tours to digital appraisal scheduling and from virtual inspections to remote notary services, millennials prefer to have digital closings of their prospective homes. As millennials are also twice as likely to shortlist their dream homes on their mobile phones than the past generations, all this is now a staple of the tech savvy generation. Proximity to workplace is no longer the first priority, but connectivity is the top criteria for buying a home now. The highly ambitious millennial generation is no longer ready to compromise on a certain level of comfort and lifestyle. This has created a specific demand for real estate properties that provide modern luxuries, while being intricately connected with social infrastructure facilities. Homebuyers today are looking for modern residential properties that provide them with logistical convenience by being located near their offices, are in close proximity to shopping high street /malls and entertainment venues. Leading real estate developers have pivoted in alignment with the needs of the millennial homebuyers and are developing premium residential properties to cater to the demand for the modern integrated lifestyle. In recent years, there have been a flurry of residential projects launched in highly posh localities, which include luxury and premium luxury gated communities. In terms of the millennials’ buying preference, the focus has shifted from compact homes to Smart Homes. Incorporating Internet-of-Things (IoT) and virtual home regulation systems, these new age smart homes are designed specifically for the requirements of the millennial homebuyers. These aspirational millennials place a high valuation on social connectivity and integration. This translates into young homebuyers preferring residential areas that provide a strong sense of community living. The best real estate developers are eager to meet this demand and are constructing residential complexes that are furnished with communal features like shared lounges, co-working spaces, clubhouses and dedicated community-gathering arenas. Millennials are prioritizing health and hygiene above all else They are looking for homes with open green spaces. The next generation of ambitious homebuyers are willing to pay a higher premium on living a sustainable and healthy lifestyle. Millennials do not consider environmental sustainability a premium luxury, but rather a basic necessity. While uncompromising on social amenities, they are equally unrelenting on environmentally conscious building practices. When it comes to ecological sustainability, millennials are willing to go the extra mile for their future. Asset classes that incorporate renewal energy through solar panels, conserve water through integrated rainwater harvesting systems, and safely dispose domestic waste through organic waste management systems are more preferred by millennials than other discounted properties. Millennials refuse to put a price tag on their futures. Modern real estate developers are now more sensitised than ever before in creating enhanced projects, which are certified by global environmental standards. Aesthetics of the property are meticulously intertwined with eco-friendly elements in order to appeal to a younger demographic of homebuyers. The real estate industry is undergoing a significant change driven by the aspirations of the millennial generation With a significant increase in purchasing power and an illimitable desire to achieve a modern holistic lifestyle, more and more millennials are investing in integrated real estate properties. While 66 percent of millennials have stated that investing in home ownership is a stable long-term investment, 30 percent have cited social status as another motivating factor that led them to invest in homes. The desire for deluxe housing reflects the millennial mind set. They do not rush into buying a home. They wait before taking the plunge and invest in premium quality product. The growth of the global real estate market depends on this shifting trend, which grew to 4000 billion dollars in the last year, which is a growth of 7 percent worldwide. Studies have shown that the millennial generation is the most confident generation when it comes to financial literacy and will push the global real estate market to 5200 billion dollars by 2027. Though buying a home is never an easy decision, the millennial generation are more than ready to invest in their luxury dream homes. They are now ready to plant their roots and more than happy to own real estate. Millennials are no longer the “rent generation”. As current market trends are extrapolated towards future horizons, it can be forecasted with reasonable certainty that this trend is highly likely to continue into the perceivable future. By understanding the needs and expectations of the millennial demographic, modern real estate developers in India are impeccably poised to lead the real estate growth in 2023 and beyond. Source:financial express INDIA

Centre begins process to modernise Mohali SCL

10/18/2022 2:03:00 PM

The Semiconductor Lab (SCL) at Mohali, the only government-owned semiconductor fabrication unit, will be one of the beneficiaries of the Central Government’s $10 billion semiconductor incentive package. The government plans to modernise and upgrade it for making semiconductors, which are used in display panels of smartphones, laptops, TV screens, weapon systems and automobiles. For the modernisation plan, the Ministry of Electronics and Information Technology (MeitY) has floated a request for proposal (RFP). The SCL was handed over to MeitY in February this year from the Department of Space. The SCL started production in 1984 but was devastated by a mysterious fire in 1989 and thereafter never recovered fully. It produces chips for strategic purposes. For instance, a 180- nanometre chip, along with other chips researched and fabricated at the SCL, have been used to power the country’s Mars Mission. According to the RFP, the selected bidder will act as an adviser and also be responsible for identification of business partner for modernisation and commercialisation of the SCL. As per the terms of the RFP, the bidders shall strategise the execution roadmap. Besides, the bidders also need onboard a commercial partner for the fabrication of chips developed by the SCL. “The bidders will also be responsible for development of business plan, go-to-market strategy and design of operating model, including identification and assessment of top list of potential partners (both Indian and global) across the semiconductor value chain,” said sources. “The SCL is responsible for design and development of very-large-scale integration (VLSI) devices and development of systems for the telecommunication and space sectors. The government is modernising the existing SCL as part of the effort to set up a latest manufacturing facility for making semiconductors,” said Rajya Sabha member Vikramjit Singh. On December 15, 2021, the Union Cabinet accorded approval for the modernisation and commercialisation of the SCL, which includes exploration of the possibility for a joint venture (JV) with a commercial fabrication partner(s) to modernise the brownfield fabrication facility. Semiconductor lab Timeline 1984: SCL starts production 1989: Unit consumed by mysterious fire 1997: Restarted again 2006: Converted to Semiconductor Laboratory under the Department of Space from Semiconductor Complex Ltd 2021: Cabinet accords approval for modernisation 2022: Handed over to MeitY from the Department of Space Source: The Tribune INDIA

Chandigarh international airport renamed after Bhagat Singh

9/29/2022 2:10:00 PM

The Ministry of Civil Aviation today renamed Chandigarh International airport as ‘Shaheed Bhagat Singh International Airport’. Finance and Corporate Affairs Minister Nirmala Sitharaman unveiled the plaque at Mohali and paid tributes to the national icon on his 115th birth anniversary. Punjab Governor and Chandigarh Administrator Banwari Lal Purohit, Haryana Governor Bandaru Dattatraya, Punjab CM Bhagwant Mann, Haryana Home Minister Anil Vij, Anandpur Sahib MP Manish Tewari, Chandigarh MP Kirron Kher and Minister of State for Civil Aviation Dr VK Singh were also present on the occasion. Haryana Deputy CM Dushyant Chautala says both Punjab and Haryana rose above all considerations to rename the airport after the freedom fighter’s name. Chautala proposed a bust of Shaheed Bhagat Singh to be installed here before the Martyrdom Day on March23. Punjab CM Bhagwant Mann sought permission from Civil Aviation ministry to increase international flights from the airport. With the renaming, the long pending demand to add Mohali, Chandigarh and Panchkula in the nomenclature has been laid to rest. Three days ago, in his Mann Ki Baat radio broadcast, PM Modi said the Chandigarh airport will now be named after Shaheed Bhagat Singh as a tribute to the great freedom fighter. Chandigarh International Airport Limited (CHIAL) is a joint venture company incorporated under the Companies Act, 2013 by Airports Authority of India (AAI) in association with governments of Punjab and Haryana. The airport runway is in Chandigarh while the international terminal is located on the south side of the runway in the village of Jhiurheri in Mohali. The AAI has a 51% share in the project. Punjab and Haryana have contributed 24.5% each. Source: The Tribune INDIA

Festive season, a big boost for residential real estate

9/24/2022 1:20:00 PM

The festive season beginning from Ganesh Chaturthi and culminating in Christmas, and the arrival of the new year is considered to be an auspicious time to invest in residential real estate. The season, which is a much awaited time of the year when home buyers opt for high-ticket purchases, gives a significant thrust to the real estate sector and is marked by the launch of new projects, combined with a spectrum of benefits to attract home buyers. This is a time when demand sees conversion as home buyers prefer going ahead with planned purchases. The need for stability and security emerging as high priority in the minds of people is also a factor that will pep-up residential real estate. A big booster to housing demand has been the increased importance of owning a property backed by consumer confidence in the overall economic scenario. The trend of the Indian festive season becoming the annual high point for residential real estate originates from traditional sentiment and is the right time to invest in wealth-creating assets. There is a healthy stock of ready-to-move-in and nearing-completion inventory that will be of high interest during the festive season. The current home loan interest rates are unlikely to compress the sustainable housing demand as the price band is still within a line of control. Rising home ownership amongst millennials supported by higher disposable income and willingness to upgrade to larger, luxurious spaces, equipped with better amenities have also sparked a sharp growth in housing demand. We are seeing a lot of home buyers who are eager to conclude deals in this auspicious season. The market continues to experience end user-driven demand and we are already witnessing a trend of more serious buyers closing sales. As per a recent report, the residential sector has recorded a 9-year high sales volume in January-June 2022. A defining feature of today’s housing demand is that even millennials are now in the market for home ownership as real estate has become the most sought-after asset class. With strengthened consumer sentiment and buoyancy in the market, the real estate sector has an optimistic outlook going forward. The sector has been riding strong for the last few months and is likely to maintain this momentum. The growth of the Indian real estate sector is well complemented by the growth of the corporate environment and the rising demand for improved lifestyles and better residences. Customers are also increasingly stepping ahead to invest in their dream properties offered by developers, which match their opulent lifestyle and needs. The biggest factor driving people to buy homes today is their experience during the Covid-19 pandemic and lockdown. It has made people rethink their priorities and hence owning a home has gained importance as it spells comfort and security. The end user-driven property market is experiencing a home buying rally and today, a rise in savings and market stability has encouraged home buyers to take the plunge. The past few months have been testament to the fact that home buyer optimism is at an all-time high as customers understand that they have various options and are able to make self-assured purchase decisions. In conclusion, it can be said that revival in market sentiment against the backdrop of vibrant economic activities makes this season more attractive. However, while investing in property, buyers should not only look at attractive deals, but also consider the reputation of the developer and other factors like location, execution capability, and amenities that the developer has to offer. As we march ahead, the industry is set to see a new phase of steady growth, which is a positive sentiment for those looking to invest this season. Real estate is always a wise asset class given that it sees consistent appreciation. Source: Times of India INDIA

Housing sale in tier 2 cities growing at rapid pace: Report

9/21/2022 10:27:00 AM

Ahmedabad, Vadodara, Nashik, Gandhi Nagar and Jaipur have emerged as the top five tier-II cities in growth of residential property market on the back of rapid urbanisation, industrialisation and growth of IT industry, according to recent report by real estate data analytics and consultancy company, PropEquity. The report highlights that there has been a remarkable jump in both absorption as well as supply of quality residential properties in various price brackets in these cities. The report has tracked performance of the residential segment of the real estate sector in various tier-II cities from FY 2017-18 to FY 2021-22. “The real estate activity in tier 2 cities is fast catching up with that of tier 1 cities. Interestingly, Ahmedabad’s residential real estate market size of Rs 83,390 crore has outshone some of the Tier 1 cities like Chennai and Kolkata with market sizes of Rs 52,554 crore and Rs 38,440 crore respectively at the end of fiscal year 2021-22. Although, it is also interesting to observe that the market share of Tier-I cities is about 4x times the share of Tier-II cities in the last five fiscal years . ,” said Samir Jasuja, Founder and Managing Director at PropEquity. This report tracked the current residential real estate scenario in India with focus on the top Tier II cities. The duties that were part of the study are Amritsar, Mohali, Chandigarh, Panipat, Dehradun, Bhwadi, Sonepat, Jaipur, Agra, Lucknow, Bhopal and Indore, Vishakapatnam, Vijaywada, Guntur, Goa, Manglore, Mysore, Coimbatore, Kochi, Trivandrum, Raipur, Bhubaneshwar, Ahmedabad, Gandhi Nagar, Vadodara, Surat, Nashik and Nagpur. “Post COVID lockdowns, tier 2 cities have been witnessing new job creation at a decent rate and many tech and other sector companies are encouraging work from home for their employees for at least next couple of years. This had led to scenario where tier 2 city housing projects are getting great traction due to their attractive pricing and potential for a higher upside in terms of investments,” Abhishiekh Andlay, Founder, Andlay Estates, said. The sales of homes in Ahmedabad stood at 39,046 units in fiscal year 2021-22, a growth of 26% as compared to financial year 2020-2021. When compared to fiscal 2017-18, a growth of 32% was witnessed in the city. The supply of homes in Ahmedabad stood at 39,195 units in financial year 2021-22, a growth of 14% as against fiscal year 2020-2021. Second ranked Vadodara witnessed a growth of 25% in sales of homes at 17,285 units in fiscal 2021-22 as compared to the previous fiscal. When compared to financial year 2017-18, a jump of 20% was seen. The supply of new homes stood at 15,046 units in fiscal 2021-22, an increase of 9% as against the previous financial year. Third ranked Nashik witnessed sales of 10,806 units in fiscal 2021-22, a growth of 15% on year-on-year basis. New supply of homes in Nashik stood at 13,037 units in 2021-22 fiscal, a whopping growth of 68% as compared to the previous fiscal. Fourth ranked Gandhi Nagar saw sales of 7,650 units in fiscal 2021-22, a growth of 10% as compared to the previous fiscal. New supply of homes in Gandhi Nagar stood at 6,361 units in the financial year 2021-22, a drop of 30% on a year-on-year basis. Fifth ranked Jaipur saw sales of 7,676 units in fiscal 2021-22, a whopping growth of 42% as compared to the previous fiscal. New supply of homes in Jaipur stood at 7,022 units in the financial year 2021-22, a massive increase of 78% on a year-on-year basis. The inventory of homes in Jaipur stood at 14,529 units at the end of fiscal 2021-22, a marginal dip of 4% when compared to the previous fiscal. It will take 23 months to clear at the current rate of sales. Source: Economic Times INDIA

Indian retail sector expected to get first Real Estate Investment Trust: Report

9/19/2022 10:58:00 AM

India is expected to get its first Real Estate Investment Trust (REIT) of retail assets soon as institutional investors and developers look to monetise their rent-yielding space in shopping malls, according to JLL India. REIT, a popular instrument globally, was introduced in India a few years ago to attract investment in the real estate sector by monetising rent-yielding assets. It helps unlock the massive value of real estate assets and enable retail participation. At present, there are three listed REITs - Embassy Office Parks REIT, Mindspace Business Parks REIT and Brookfield India Real Estate Trust - on Indian stock exchanges but all these are of leased office assets. Property consultant JLL in its latest report on retail real estate segment highlighted that institutional investment in the retail sector has been picking up since 2021. More than USD 862 million investments have come from 2021 (excluding portfolio deals). Many global investors are investing in the retail sector either by buying a stake in existing assets or through greenfield development platforms. "The retail market seems to benefit from favourable demographics, rapid urbanisation, and rising consumption," the consultant said. The report noted that investors are expecting healthy returns in the long run, considering the growth potential. Also Read | How Can You Save With Real Estate Express Coupon Code? "Investors are looking for quality Grade A assets by established developers having less vacancy. Investors prefer leased-based assets over strata-sold assets to ensure fair market rentals and timely returns," it said. The consultant also mentioned that investment in retail assets is not just limited to metros, as significant activities have been recorded in Tier 2 and Tier 3 cities as well. "Additionally, investments by these big institutional players help developers to exit the project partially or fully, reduce their debt, and focus on other developments. A lot of foreign funds are willing to acquire quality retail assets yielding good rental income," the report said. Investors are either buying or creating portfolios considering future public exit via REITs. "REITs are still relatively new in India and are prevalent in the office sector. India is expected to get its first retail REIT soon. With quality supply in the pipeline and new malls announced by established developers, the Indian retail sector is expected to attract more institutional investment," JLL India said. REITs in retail will be the next big move in the sector as institutional investors are building portfolios of superior-grade retail assets, it added. JLL India cited few examples of institutional investors creating large retail real estate portfolio. Nexus Malls acquired Forum Malls as part of a USD 1.2 billion deal between Blackstone and the Prestige Group to take over the income-generating retail assets of the latter. Abu Dhabi Investment Authority-backed Lake Shore India Advisory has acquired Viviana Mall in Thane from GIC and realty developer Ashwin Sheth Group for over ₹1,900 crore, the report said. That apart, Singapore sovereign wealth fund GIC and The Phoenix Mills Ltd have entered into a strategic partnership to establish an investment platform for retail-led mixed-use assets in India. The consultant expects leasing demand in malls to expand and surpass pre-pandemic levels by 2023. The inherent growth potential of the sector is quite robust, and institutional investment is expected to increase it further. This would bring more transparency and improvement in the operating environment of shopping malls, JLL India said. On the overall supply situation, JLL said that the stock of Grade A shopping malls in the top seven cities of India (Delhi, Mumbai, Pune, Bangalore, Kolkata, Chennai, and Hyderabad) is at 90.6 million sq ft in H1 2022. More than 50 per cent of the mall stock is in Delhi NCR (29 million sq ft) and Mumbai (19 million sq. ft). More than 70 shopping malls with a total retail space of 31.02 million sq ft are expected to become operational by 2025 across the top seven cities of India. Source: Hindustan Times INDIA

Leasehold to freehold conversion: SC gives MHA, Chandigarh admn 3 months to take decision

9/18/2022 1:31:00 PM

The Supreme Court has given three months to the Chandigarh administration and the ministry of home affairs (MHA) to decide on allowing conversion of commercial and industrial leasehold properties to freehold. On August 29, the Supreme Court had summoned Union home secretary Ajay Kumar Bhalla in court on September 16 if a decision on the issue was not taken. After Bhalla was summoned, UT administrator Banwarilal Purohit on September 6 had held a press conference, announcing that the decision lied in UT’s domain and will be arrived at soon. Later, Purohit sent UT adviser Dharam Pal to Delhi to discuss the issue, but a consensus could not be arrived at and MHA opted for seeking exemption from personal appearance of the home secretary at the September 16 hearing. “This being a major policy decision, the matter is being considered by MHA as per the established legal procedure and consultation with all stakeholders concerned,” the MHA said in court, seeking three more months to examine the matter, which was eventually allowed. Chandigarh has 6,621 commercial and 1,451 industrial plots on leasehold, which allows occupation for a limited period, mostly 99 years, with government agencies holding the ownership rights. Apart from legal complications, the allottees struggle with their sale and purchase, and raising a mortgage when needed, issues normally not associated with freehold properties where the allottee is the real owner. Earlier in July, the UT had put the onus on the Centre for delay in reaching a decision on the issue. The UT had first sent the conversion proposal to the MHA in April 2021 on the pattern of the residential policy of 1996. Subsequently, it even sent four reminders to MHA, but a decision was still pending, UT had told the court. In September last year, the apex court had directed the administration to constitute a committee to review and streamline the processes of sanction of mutation, grant of occupancy certificate, no-objection certificate and other citizen-centric requirements, including calculation of unearned profit under the 1973 or 2007 rules. The dispute before the SC was taken up by the Estate Office against a consumer court order in which it was penalised on the complaint of a city resident on an issue related to allowing conversion of leasehold property to freehold. The court had ordered that the committee would submit its report to the administrator and the UT administration. In compliance with the order, the administrator constituted the committee on October 5, 2021. The committee had made the first set of recommendations in February and submitted the second set of suggestions recently in July. Several amendments in property-related matters have been made since the first set of recommendations, and UT has submitted four action-taken reports in March, April, May and July before SC, while putting the onus on the Centre for delay in resolving some key issues. Source: Hindustan Times INDIA

Punjab government to come out with real estate policy to check unplanned development

9/13/2022 1:15:00 PM

CHANDIGARH: Punjab government will come out with a comprehensive real estate policy to check illegal and haphazard development in urban areas, said Housing and Urban Development minister Aman Arora on Monday. Arora on Monday presided over a meeting with senior officials of the revenue and rehabilitation department, and real estate developers here, according to an official release. The cabinet minister assured the developers that all their legitimate demands will be considered sympathetically and he will discuss them with the chief minister. He asked the developers to make sure that the interests of property buyers are protected. Arora accused the previous governments of creating a mess in the name of urban development, which, he alleged, resulted in mushrooming of around 14,000 illegal colonies in the state. The government is fully aware of all the problems being faced by the common man and it will bring a comprehensive policy to "clean this messy system" and will ensure planned development in the state, said the minister. On making no objection certificate (NOC) compulsory for property registration, the cabinet minister said this issue will be resolved soon. He said the state government's three departments - housing and urban development, revenue, and local administration - are working in tandem to sort out the issue at the earliest. Source: ET Realty INDIA

India’s real estate sector to reach $1000 billion by 2030: Thriving and yielding consistent returns

8/31/2022 3:14:00 PM

The good times continue to roll in the real estate sector. According to a report by valuation and consulting firm, RBSA Advisors the country’s real estate sector is expected to grow by 15% from $ 60 billion in 2010 to $1,000 billion by 2030, and contribute 13% of India’s GDP by 2025. The organised retail real estate sector is expected to increase by 28% to 82 million square feet by 2023. Ansh Batra, Director, Buniyad Group, said that the momentum that had picked up post-pandemic seems only to be getting stronger. "Despite the slight increase in the prices and a marginal hike in home loan interest rates the real estate sector has been thriving on positive buyers’ sentiments,” Batra said. In Delhi-NCR, there is huge demand for housing spanning across all segments, the report said. Sanjay Sharma, director, SKA Group said that among the factors that have boosted real estate in NCR is the all-round improvement in connectivity both road and metro. "The construction of Jewar Airport has acted as a major catalyst. These have enabled the developers to announce new projects farther away from the city and for the buyers it has significantly cut down their commuting time." Besides, since these are newly launched projects, they offer benefits of superior construction and better much improved facilities,” he said. The sentiments are equally positive in the commercial segment. Big retail companies are expanding and looking for new spaces. New projects are getting launched. Projects which were stalled due to the pandemic are nearer to completion. The commercial realty segment, both office and retail is thriving. Shop-cum-Offices demand has also taken a big boost, the report said, adding that prices of commercial properties are showing good appreciation. "In fact, it has been estimated that on average commercial properties comprising both offices and retail spaces can post returns anywhere between six to nine percent,” Ajendra Singh, VP, Sales & Marketing, Spectrum Metro, said. According to a Knight Frank report, 25 million square feet have been leased between January and June this year, translating to a 107 per cent jump, year-on-year. Bengaluru and NCR have led the way, accounting for 7.7 million square feet and 4.1 million square feet of these transactions, respectively. An interesting aspect of the post-pandemic realty scene has been the surge in luxury apartments, plots, villas and independent floors. For the Indian retail market, the projections are equally positive and is estimated to reach $1.1-1.3 trillion by 2025, the report said. In 2019-20 it was valued at $0.7 trillion, which makes for a Compounded Annual Growth Rate (CAGR) of 9-11%. Factors like socio-demographic and boost in economic activities such as urbanisation, income growth and rise in nuclear families are driving the Indian retail market. The organised retail real estate sector is expected to increase by 28% to 82 million square feet by 2023. "At present an investment in retail make for the best choice as the rental value and price appreciation are high,” Amit Jain, Director, Mahagun Group, said. Source: Zee Business INDIA

Shorter route to Chandigarh airport: GMADA moves ahead with process to acquire land

8/25/2022 1:03:00 PM

Aiming to ready the shorter route to the Chandigarh International Airport via Sector 66-A by March next year, the Greater Mohali Area Development Authority (GMADA) has moved ahead with the process for land acquisition. The authority has issued a notification under Section 19 of the Land Acquisition Act, declaring its intention to acquire 18 acres in villages Kambala, Kambali and Rurka for the project and inviting objections within 30 days, before compensation is fixed. The around 5-km stretch will allow commuters from Chandigarh and Mohali to head to the airport via the road in front of Bawa White House, instead of taking the longer route via Airport Road. This will bring down the 18km distance from Tribune Chowk, Chandigarh, to the airport in Mohali by more than 5 km. At present, commuters have to head all the way to the T-junction near the Indian School of Business, after passing by Bawa White House, to turn left towards Airport Chowk, where they again have to turn left towards the airport. “The 164-foot-wide road is part of the Mohali Master Plan. We have issued a notice under Section 19 of the Land Acquisition Act and are hopeful that land will be acquired by December this year and project will be completed by March next year,” said a senior GMADA official, dealing with the project. “A shorter route from Chandigarh has been a long-pending demand. It will be a boon for commuters from Chandigarh and neighbouring areas, and industry close to the Airport road by providing faster access,” said Naveen Manglani, former president, Chamber of Chandigarh Industries. Source: Hindustan Times INDIA

PM Modi to inaugurate cancer hospital at Mullanpur in Mohali on Wednesday

8/24/2022 1:27:00 PM

Prime Minister Narendra Modi will dedicate the Homi Bhabha Cancer Hospital & Research Centre to the nation at Mullanpur, New Chandigarh, in Punjab. The hospital has been built by the Union Government at a cost of over Rs 660 crore. The cancer hospital is a tertiary care hospital of 300-bed capacity and is equipped with modern facilities to treat all types of cancers using every available treatment modalities like surgery, radiotherapy and medical oncology - chemotherapy, immunotherapy and bone marrow transplant. This project is significant since there have been numerous reports of increasing cancer prevalence in parts of Punjab and people are forced to go to other states for affordable cancer treatment. This issue was so rampant that a train from Bathinda carrying cancer patients to Bikaner was known as a cancer train. The hospital in New Chandigarh will act as a hub of cancer care. A 100-bedded cancer hospital by GoI is functional since 2018 in Sangrur, which will now act as a spoke of this hospital. It will also help patients from neighbouring states Cancer treatment made affordable Treatment of cancer under the Ayushman Bharat has been one of the prime focus areas to safeguard the beneficiaries from catastrophic expenditure of cancer treatment. Health insurance cover of Rs 5 lakh per family per year is provided for secondary or tertiary care hospitalisation. Chemotherapy and Radiotherapy packages, along with surgical oncology are covered as part of cancer treatment in the empanelled hospitals under the scheme. A total of 435 procedures have been defined for the treatment of cancer. Significant focus on oncology in its various aspects has been ensured in the new AIIMS that are being established under the aegis of Pradhan Mantri Swasthya Suraksha Yojana (PMSSY). Cancer care facilities are also being established in other medical colleges under PMSSY. The National Pharmaceutical Pricing Authority (NPPA), under the Ministry of Chemicals & Fertilisers, put out a list of 390 anti-cancer non-scheduled medicines with MRP reduction up to 87% in 2019. The functional Ayushman Bharat Health & Wellness Centres (AB-HWCs) have done more than 10.33 crore screenings for oral cancer, more than 3.41 crore screenings for cervical cancer in women and more than 5.06 crore screenings for breast cancer in women. (As on April, 2022). Source: The Tribune INDIA

Current and Future Sentiment In Residential Real Estate Remain Optimistic: Report

8/12/2022 3:52:00 PM

The sentiment in the residential real estate sector has slightly moderated compared to the previous quarter’s all-time high of 68. It has now dipped to 62 in Q2 2022, amid a rapidly changing economic scenario, the recent report of the Knight Frank-NAREDCO Real Estate Sentiment Index Q2 2022 (April - June 2022) has said. “The Current Sentiment Index score, while safely remaining in the positive zone, has dropped mainly due to the perceived impact of the two consecutive repo rate hikes in May and June 2022,” the report said. The report noted that the Future Sentiment Score, which captures the stakeholder sentiments for the next six months for the real estate sector, has shrunk from its historic high of 75 in H1 2022, to 62 in Q2 2022, as pressures of a rise in inflation and depreciating rupee against the dollar has cast a shadow on the sector. That said, both the current and future sentiment scores remain optimistic, despite the decline, the report said, adding that the impact of global economic headwinds on the Indian economy is yet to play out. “The real estate supply-side stakeholders remain watchful of the tripartite global risks - economic turmoil in the United States, Russia – Ukraine standoff, and economic slowdown in Europe,” the report reads. Shishir Baijal, chairman and managing director, Knight Frank India, said: “Over the last 8-10 quarters, it has been firmly established that there is a strong latent demand in the residential sector, which when supported by right prices and sops, will convert to sales. In the last few quarters, this has given the once beleaguered sector a strong comeback. While some headwinds face the residential market with the geo-political issues, high inflation leading to increased repo rate and higher prices, demand remains strong leading to a positive outlook for the sector.” The Knight Frank-NAREDCO Real Estate Sentiment Index report further highlighted that the residential market outlook in Q2 2022 reflects future caution, as stakeholders expect strong sales and launch momentum, but maintain a subdued outlook on pricing. “At a time when housing affordability has been adversely impacted, the majority of stakeholders opine that there may not be further room for a home price rise,” said the report. Rajan Bandelkar, president, NAREDCO and director of Raunak Group, said: “The Indian real estate sector is one of the few bright spots in the global economy. The sector has been performing well and has been stable for the past few quarters. While the overall economic scenario and world order still remain cautious, strong fundamentals of the Indian economy and the real estate sector continue to give strength to various stakeholders, including the developers, the development authorities, policymakers, and the end consumers. With the government’s focus on reforms to tighten the monetary policy and the economy, we can look forward to an even stronger real estate sector in the future. Source: outlook India INDIA

Mohali | Land acquisition complete for Airport Road-Kharar linkway

8/9/2022 11:06:00 AM

Moving ahead with the plan to construct a 6km long, 200-ft wide link road between Airport Road and Kharar-Landran road, the Greater Mohali Area Development Authority (GMADA) has completed the land acquisition process for the project. The road construction is expected to begin in October this year. As many as 73 acres have been acquired, for which a compensation of ₹198 crore is being paid by the Punjab government. The highest compensation of ₹4.23 crore per acre is being paid to landowners in Baliali village, which is the nearest to the Airport Road. At ₹2.80 crore per acre, the lowest compensation amount has gone to Tole Majra village, which is the near Landran-Kharar National Highway. Apart from this, the state government will also be paying ₹167 crore for trees and structures being razed on the stretch. The department of housing and urban development has approved the compensation amount. Will improve connectivity for Kharar residents The link road, which was proposed six years ago, will improve connectivity from Airport Road to Kharar. With major townships such as TDI, Ansal, Jubilee City Gardens and Gateway City adjoining the stretch, the road will divide Sectors 116 and 92, and Sectors 117 and 74A to pass through Chappar Chiri Khurd, Chappar Chiri Kalan, Chajju Majra, Baliali and Ballomajra before connecting to the Kharar-Landran road near Swaraj factory. The road is a part of the Mohali master plan. Jubilee Group director Sanyam Dudeja said, “The road will be directly connected with DPS School, Jubilee City Gardens, and other important areas nearby, and thus prove a boon for residents here. Most importantly, it will help ease out traffic flow.” GMADA chief engineer Balwinder Singh said, “We will float tenders for construction now as the land acquisition process is complete and work is expected to begin in October.” Source: Hindustan Times INDIA