Daily Real Estate brief from PNT
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Akshara Haasan, daughter of actor Kamal Haasan, recently acquired a luxurious 2,354-square-foot apartment in Khar, Mumbai, for a staggering Rs15.75 crore. The apartment, located in the high-end Ekta Verve tower on 16th Road, offers opulent living with three parking spaces and a range of amenities. Ekta Verve, developed by Ekta World, boasts 18 apartments and a duplex, featuring 4, 5, and 7-bedroom luxury residences. Akshara Haasan, a Bollywood actress herself, is following in her family's footsteps. Khar, a rapidly growing neighbourhood near Bandra, remains a hotspot for celebrity real estate investments, further enhancing its appeal.
? A residential flat spanning 1,247 square feet on the 11th floor sold in L&T Crescent Bay in Parel for INR 4cr
? A residential flat spanning 1,325 square feet on the 24th floor sold in Oberoi Exquisite in Goregaon East for INR 5.2cr
Shapoorji Pallonji Real Estate (SPRE) launches 'Wildernest' and 'Joyville Celestia' in its 200-acre Pune township, 'SP Kingstown,' with expectations of approximately Rs 1,500 crore in revenue. 'Wildernest' is a low-density luxury residential project emphasizing biophilic design principles, offering 3 and 4 BHK luxurious residences. 'Joyville Celestia' under the Joyville brand features 2 and 3 BHK configurations and over 40 wellness amenities. SP Kingstown enjoys strategic placement along the Pune-Solapur Highway, with proximity to prominent areas and upcoming infrastructure developments, showcasing growth potential. SPRE's commitment to excellence aligns with Pune's rapidly expanding real estate market, reflecting a promising future.
Unitech, a real estate developer in India, has seen prolonged periods of project stagnation with no progress on its 74 residential and twelve commercial projects, leaving 15,000 homebuyers waiting for over a decade. The company's troubles began when its promoters, the Chandras, became embroiled in the 2G scam in 2011. In 2020, a new board was appointed, but progress remains elusive. Unitech's financials have also suffered, with significant losses and almost no revenues. While the management is working to complete projects and raise funds, buyers continue to face uncertainty, delays, and financial stress. The situation remains complex and challenging.
Indiabulls Real Estate has reported a significant shift in its financial performance for the quarter ending on September 30, 2023, compared to the same period in the previous fiscal year. The company registered a net consolidated loss of Rs 18.23 crore, a departure from the net consolidated profit of Rs 56.73 crore in the previous year. The decline in net consolidated total income, revenue from operations, pre-sales, and EBITDA further underscores the challenges faced in the evolving real estate sector. The increase in net debt and the voluntary dissolution of a subsidiary reflect the company's strategic adjustments to adapt to market conditions.
Macrotech Developers, formerly Lodha Group, is on track to exceed its Gross Development Value (GDV) guidance for the fiscal year. The company had set a full-year GDV target of Rs 17,500 crore and has already added projects worth Rs 14,300 crore in the first half of the fiscal year. Macrotech will continue its strategy of developing projects every 3-5 kilometres in key property markets, particularly in Mumbai and Pune. Despite not launching new locations, the company achieved its best-ever first-half pre-sales of Rs 6,890 crore. Macrotech is also focused on reducing leverage and is actively pursuing business development opportunities.
In a significant shift, the Maharashtra Housing Area Development Authority (MHADA) has revoked its decision to impose an annual fee of Rs 10 lakh for the renewal of its no objection certificate (NOC), benefiting developers. The fee hike, initiated in September to deter builders from delaying old building redevelopment, faced backlash. MHADA has now introduced a six-month amnesty scheme for NOC revalidation at a flat fee of Rs 1 lakh, regardless of plot size. After the amnesty period, renewal costs Rs 5 lakh per year, with fees based on plot area, ranging from Rs 50,000 to Rs 6 lakh.
Maharashtra's Housing Minister, Atul Save, has announced a plan to review and revive 7,500 stalled realty projects in the state, based on recommendations from a committee led by former NITI Aayog CEO Amitabh Kant. The government aims to expedite the approval process for new developers to take over stalled projects, ensuring that homebuyers' investments are protected and lapsed plans are revitalized. This proactive approach addresses the concerns of both homebuyers and the real estate industry, reflecting the government's commitment to economic growth and timely project revival.
The second phase of the Jaga Mission, launched in 2018, is set to provide land rights certificates (LRCs) to eligible slum residents, part of a government initiative to eliminate slums and empower urban poor. The first phase achieved a significant milestone by granting LRCs to 51,000 slum dwellers, with 75,000 more identified beneficiaries. In August, 65,000 homeless families in 875 slums across five cities received LRCs, providing stability and recognition. BMC's preparation to distribute 5,500 LRCs in three zones highlights efficient execution. The mission operates within legal frameworks to grant homestead land, creating inclusive and equitable cities.
In a bid to bolster transparency and accountability in the real estate sector, the Uttar Pradesh Real Estate Regulatory Authority (UPRERA) has taken decisive actions. These measures include requiring project developers to provide accurate project details and functioning contact information, ensuring ongoing communication between stakeholders, and rectifying discrepancies in project information. UPRERA's efforts are aligned with the RERA Act of 2016, aiming to enhance trust and credibility. Notably, promoters must now ensure that provided contact numbers are both operational and handled by knowledgeable personnel. This initiative safeguards the interests of developers and buyers while fortifying the real estate market in Uttar Pradesh
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Standard Chartered Bank is seeking to sell loans totalling Rs 569 crore given to the troubled real estate developer, Radius Sumers Developers. Radius Sumers Developers is a joint venture, between Sanjay Chabaria promoted Radius Group and Sumer Buildcorp, for developing the 'Harbour Heights' luxury residential project in South Mumbai. Loan sales occur when the lender and the company are negotiating a deal. The bank has invited asset reconstruction companies (ARCs) to bid on the debt, setting a reserve price of Rs 230 crore. The developer has defaulted on loans, and the case is currently under consideration by the Mumbai National Company Law Tribunal (NCLT), with negotiations for a settlement ongoing.
Mumbai, New Delhi, and Bengaluru have seen an uptick in annual prime residential property prices in Q3 2023, according to the 'Prime Global Cities Index Q3 2023' by Knight Frank. Mumbai surged by 6.5 percent, elevating it to the fourth position, compared to the 22nd rank in Q3 2022. New Delhi leaped from the 36th rank to secure the 10th spot with a 4.1 percent year-on-year growth, while Bengaluru moved from 27th to 17th with a 2.2 percent year-on-year rise. A 2.1 percent average growth was reported across 46 global markets in prime residential prices over the year ending September 2023.
Approximately 26,000 residents of Palava township in Dombivali, the first integrated township project in Maharashtra, received significant relief as the state government decided to grant them a 66% property tax rebate just before Diwali. Previously, residents were burdened with double property taxes, paying both the township's Palava City Management Association (PCMA) and the Kalyan-Dombivli Municipal Corporation (KDMC). This adjustment aims to reduce property tax from Rs 6,000 to Rs 2,000 per flat per year for Palava township residents. The demand was based on a 2016 circular from the state’s Urban Development (UD) department which said that Integrated townships that provide common amenities and infrastructure are entitled to this rebate.
The Municipal Corporation of Delhi (MCD) is introducing a compensatory regulatory charge to support civic infrastructure development across the city. This charge, previously applicable only in areas under the north corporation, will now apply citywide, including south and east Delhi. The fee is based on the prevailing circle rate in each colony and will be charged when seeking building plan approvals. The funds collected will contribute to the maintenance and development of civic infrastructure in MCD areas, including regularized colonies and village abadis. The decision comes in response to changing population densities and increased demand for infrastructure development.
Adani Logistics Ltd, a wholly owned subsidiary of the Adani Group, has acquired a 50% stake in Veracity Supply Chain Private Ltd (VSCPL) for Rs. 5 lakh. VSCPL, a newly incorporated entity with authorized and paid-up share capital of Rs 10,00,000, aims to offer last-mile connectivity to customers from in-land container depots through a digital transport management system. The acquisition signifies Adani's commitment to enhancing its logistics capabilities and expanding its presence in the supply chain sector, contributing to its comprehensive logistics infrastructure.
Roostels India, the master licensee for Roadies Rostel, plans expansion into diverse travel segments, including backpackers and co-living accommodations. With the flagship Roadies Rostel Leisure brand expanding to holiday destinations, Roadies Rostel Backpackers targets budget-conscious backpackers, and Roadies Rostel Co-living caters to short and long-term stays, including corporate guests. Roostels India's strong social media presence, coupled with its franchise model and strategic approach, positions it as a significant player in the evolving hospitality landscape, with plans for expansion in key cities and holiday destinations.
Nagpur District Collector Vipin Itankar conducted a meeting to expedite the land acquisition process for the second phase of the Nagpur Metro project. The meeting addressed several pending land acquisition proposals and emphasised the need for timely planning to avoid delays. Itankar instructed the revenue department to ensure prompt disposal of all acquisition proposals and encouraged better coordination between the revenue department and the Metro for quicker results. Additionally, discussions with the defence department about land issues on Wardha Road were urged. The Metro project aims for completion by 2024 but has been hindered by lingering land acquisition proposals.
Indian Prime Minister Narendra Modi and Bangladesh Prime Minister Sheikh Hasina jointly inaugurated three significant development projects, further enhancing the bilateral ties between the two nations. The projects include the historic Agartala-Akhaura cross-border rail link, the Khulna-Mongla Port Rail Line, and Unit 2 of the Maitree Super Thermal Power Plant in Bangladesh's Rampal. The rail link is crucial for improving cross-border trade, reducing travel time, and expanding connectivity between India’s Northeast and Bangladesh. These projects reflect the strong collaboration and friendship between the two countries, ultimately contributing to regional development and cooperation. India has played a vital role as Bangladesh's largest development partner.
A transformation is underway in London's real estate market as Indian investors, traditionally drawn from the ranks of industrialists and Bollywood stars, shift their focus to the city. Their motivations include affordability and the desire to provide accommodations for their children's education in the metropolis. Old brownfield sites, reminiscent of Mumbai's mill projects, are being revitalized to meet the increasing demand. Barratt London, a key player, is leading the charge with eight projects and ambitious plans for more. This marks a turning point as London becomes an attractive destination for first-time investors and a global education hub.
The FIAT House, a new collaboration between FIAT and UNLMTD Real Estate, is poised to redefine luxury living In New Jersey. Located strategically near the iconic George Washington Bridge in Fort Lee, New Jersey, this visionary project offers over 300 rental residences with an emphasis on hospitality and premium amenities. What makes this development truly exceptional is its innovative car-sharing program featuring electric FIAT 500e vehicles, aligning perfectly with the project's sustainability goals. The FIAT House represents a bold step towards the future of urban living, enhancing connectivity, community, and elegance.
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