Daily Real Estate brief from PNT
Welcome to the latest edition of?PNT Real Estate Daily! Through our digital only newspaper, we aim to provide a 360 degree coverage of the latest events, stories, updates and occurrences from the real estate industry from around the world.
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NBCC (India) has successfully sold approximately 2.23 lakh square feet of commercial space in New Delhi's World Trade Centre for Rs. 905.01 crore. This sale is part of a larger strategy to monetize unsold inventory. NBCC has presently sold 23.92 lakh square feet valued at Rs. 9,656.62 crore. The sale highlights NBCC's significant role in real estate, further enhanced by its recent MoU with SAIL Durgapur Steel Plant for infrastructure projects. This achievement not only demonstrates NBCC's market prowess but also boosts confidence in India's real estate sector.
? A residential flat spanning 2970 square feet sold in Narain Terraces Apartment in Pali Hill for INR 19.5 Crores
? A residential flat spanning 1962 square feet sold in Rustomjee Crown in Prabhadevi on the 37th floor for INR 10.11 Crores
Preferential location charge is a premium charged for superior features in a flat. These features can include but are not limited to sea views, park views, higher floors, corner flats, terrace access flats, etc. PLC charges can be calculated on a squarefoot basis or a slab rate.
The Enforcement Directorate (ED) has initiated a case against Tulsiani Builders' Chief Managing Director Anil Kumar Tulsiani and Director Mahesh Tulsiani under the Prevention of Money Laundering Act (PMLA) for allegedly securing a loan of Rs 4.63 crore with forged documents. The ED's action follows a complaint from Punjab National Bank, asserting that the directors failed to respond to requests for loan recovery. The investigation also reveals allegations of money laundering and deceptive practices, including collecting funds from homebuyers without the necessary land for construction, prompting the ED to issue summons to the firm's directors.
Efforts to improve slum areas in Pune and nearby regions are getting a boost with new rules allowing redevelopment within a larger 5 km radius, up from the previous 2 km limit. This change aims to make it easier to find suitable spaces. Despite this positive step, corruption is still a big problem, slowing down projects by the Slum Rehabilitation Authority (SRA). The SRA CEO, Nilesh Gatne, is hopeful about the new rules speeding up projects, but notices have been sent to 20 developers facing delays. While 61 projects have been completed, 46 are still in progress, and the rules now empower the SRA to enforce deadlines and penalties to ensure efficiency.
In a significant move, the Uttar Pradesh cabinet has given the green light to implement recommendations from the Amitabh Kant Committee report on real estate projects. The approved measures, aimed at providing relief to countless homebuyers in the state, include granting immediate registry and sub-lease deed rights to buyers. Additionally, developers will benefit from a 'zero period,' exempting them from penalties for COVID-19-related delays between April 1, 2020, and March 31, 2022. The decision, addressing legacy stalled housing projects, was announced by UP Cabinet Minister Suresh Kumar Khanna, who emphasized the focus on safeguarding buyers' interests.
GIFT City in Gujarat is experiencing a real estate boom, attracting local and international investors. Authorities are allocating additional land for 5,000 residential flats, with a massive 1.2 million square feet open for bidding. Despite a 30-35% rise in residential apartment prices, developers report successful pre-sales of around 80% of units, indicating a robust market. Investors are enticed by advanced infrastructure, streamlined processes, and government incentives. While optimism prevails, caution is advised due to challenges like limited social infrastructure and price disparities within and outside GIFT City, posing questions about the long-term returns on premium-priced properties.
Ahmedabad's civic bodies, AUDA, AMC, and SRFDCL, are set to auction 21 plots before the Vibrant Gujarat Global Summit 2024, with expectations of raising Rs 3,000 crore in revenue. The most expensive plot, owned by SRFDCL, is valued at Rs 3.68 lakh per sq m. The 21 plots include 8 plots by AMC, AUDA's 11 plots, and SRFDCL's 2 plots. Despite challenges in previous auctions, interest from real estate firms is prominent. The Vibrant Gujarat Global Summit, established in 2003, remains a prestigious forum for business networking and sustainable development, with the 2024 edition focusing on key themes and national priorities.
The Karnataka High Court, in response to M/s BM Habitat's petition, has ruled that property tax on a building is only applicable post-completion, emphasizing the importance of the occupancy certificate. Despite the corporation's insistence on an earlier start date, the court recognized delays in property inspection and certificate issuance. The directive mandates property tax collection from a date that aligns with the certificate's issuance, promoting fair tax application based on actual utilization rather than theoretical completion dates. This interpretation ensures a practical approach to property tax and safeguards against undue taxation during the construction phase.
The Mumbai Metropolitan Region Development Authority (MMRDA) has submitted a proposal to the state government, seeking permission to develop a sprawling 323.44 square kilometres of land in Raigad district. The proposed development, under the New Town Development Authority (NTDA), mirrors the successful model of Bandra Kurla Complex. The initiative aims to meet rising demand post the Mumbai Trans Harbour Link (MTHL) and Navi Mumbai International Airport, generating revenue amid diminishing land in BKC. The involvement of NTDA marks a strategic expansion, offering new opportunities and income for MMRDA's infrastructure projects.
Mayfair, London's prestigious district, is experiencing a surge in luxury real estate sales, with properties priced at ￡10 million and above doubling in the past year, reaching ￡313 million in 2023. The trend is attributed to affluent buyers from the U.S. and the Middle East, particularly high-net-worth individuals from Saudi Arabia and the UAE. A report by Beauchamp Estates reveals these discerning buyers contributed over ￡80 million towards Mayfair's residential real estate investments. Meanwhile, other global markets, like California and Manhattan, are witnessing luxury property markdowns and reduced sales momentum, showcasing Mayfair's resilience in the ultra-luxury sector.
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