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. Subscribe for daily updates!
The Bombay High Court has called for granting the Slum Rehabilitation Authority (SRA) and the state government broad powers to evict unauthorized occupants from SRA flats due to concerns about illegal transfers and profiteering. The court highlights the need to protect the 10-year ownership restriction on these flats and the importance of preventing the trafficking of rehab tenements to address Mumbai's affordable housing crisis. It's also examining a case in Malad (E) where allottees are seeking rental dues, shedding light on a wider issue of unauthorized transfers and subletting.
? A residential flat spanning 966 square feet on the 16th floor sold in Chandak Treesourus in Malad West for INR 2.21cr.
? A residential flat spanning 1,006 square feet sold in Rustomjee Summit in Borivali East for INR 3.10cr.
The Adarsh Group's commitment to invest ￡2-2.5 billion in India's real estate sector signals a significant move to bolster the country's real estate landscape. This substantial investment will encompass both residential and commercial projects across key locations, addressing the evolving demands of India's dynamic real estate market. As a crucial driver of economic growth, this venture is expected to create a substantial number of jobs and stimulate economic development in project locations. Moreover, it has the potential to contribute to responsible urban development, setting new standards for sustainability and efficient urban spaces. The Adarsh Group's strategic investment promises to leave a lasting positive impact on India's real estate sector and overall economic progress.
The Yamuna Expressway Industrial Development Authority (YEIDA) has unveiled an instrumental furniture park scheme in Greater Noida, geared towards fostering non-polluting industrial growth. The initiative offers plots of up to 4,000 square meters at competitive premium rates, creating a welcoming environment for entrepreneurship and innovation. With 63 plots dedicated to MSMEs, it not only boosts local economic development but also generates employment. Located strategically near key areas like Jewar Airport, this project ensures seamless connectivity and goods movement. YEIDA's initiative signifies a pivotal stride toward economic progress, inviting entrepreneurs to contribute to the flourishing industrial landscape of Greater Noida.
Ajmera Realty & Infra India Ltd, a prominent Indian real estate firm, unveiled its remarkable Q2 FY24 performance, showcasing a 52% YoY surge in sales. This substantial growth, totalling INR 252 crores in sales bookings, was fuelled by strong demand, including notable projects like Ajmera Eden. The company attributes its success to a thriving market, boosted by the Reserve Bank of India's rate freeze, and a 5x growth strategy focusing on untapped micro-markets. Dhaval Ajmera, Director, stressed the importance of pre-sales and business development to reach a fiscal year sales target of INR 1,000 crores. The company's dedication and stable interest rates promise continued growth in the festive season and beyond.
Godrej Properties, already grappling with legal disputes over a Rs227 crore land deal in Nagpur, now confronts a second lawsuit. The latest suit invokes the Mental Health Act, alleging that a landowner with unsound mind had their share sold without due process. This comes after an earlier case citing Muslim personal law provisions. With hearings set for October 25, the realty giant's Nagpur venture faces increasing legal complexity. Meanwhile, Godrej Properties recently struck a separate Rs350 crore land deal in the region, adding to the intrigue surrounding its operations in Nagpur.
A considerable backlog of pending registration files has built up within Gujarat's Real Estate Regulatory Authority (RERA) amid the prolonged absence of a chairperson. This significant delay has raised concerns within the real estate industry, with experts suggesting that it may take a substantial amount of time for the authority to restore its normal functioning. The extended period without a chairperson has led to an accumulation of work, leaving aspiring homeowners, developers, and stakeholders in the real estate sector grappling with uncertainties as they await the resolution of this issue.
In a Bombay High Court ruling, a builder has been directed to pay transit rent for a flat involved in an ownership dispute and subsequently vacate the property. The man's sister had contested the ownership of the flat. The court clarified that transit rent should be paid to the person being displaced from the premises and that disputes over property titles do not impact the payment of transit rent. This judgement modifies a previous order and emphasizes the importance of adhering to established legal principles regarding transit rent and property possession in redevelopment cases.
Panchkula real estate dealer, Prem Chand Singla, fell victim to a cunning land scam, losing a substantial Rs 70 lakh. Singla's complaint detailed how he was duped by three individuals, who promised him a 12.6-acre plot in August 2022. The fraudsters provided a bogus revenue patwari and sealed the deal, with Singla paying a hefty Rs 70 lakh. The ruse unravelled when Singla visited the site and discovered that the land belonged to someone else entirely. Legal action has been taken against the culprits.
The Telangana High Court has ruled for the demolition of a commercial complex constructed on a designated park space in Begumpet's Indian Airlines Employees Housing Colony. Chief Justice Alok Aradhe and Justice NV Shravan Kumar delivered this judgement in response to petitions filed by concerned citizens. The court also annulled the municipal permission for the complex. The land, originally meant for a park, was sold in 1996, leading to the complex's construction. The owners have been directed to fund the demolition, supervised by HMDA and housing board officials. This ruling underscores the importance of adhering to urban planning guidelines.
The West Bengal government's urban development and municipal affairs department has introduced a set of 19 guidelines to regulate building demolitions in congested residential areas. Under the new norms, demolition work is prohibited at night, and strict adherence to noise and air quality standards is mandated. The move comes in response to the observed lack of safety measures during building demolitions, contributing to air and noise pollution. The guidelines address concerns such as uncontrolled use of equipment, dust pollution, and unauthorized felling of trees. Additionally, the regulations prohibit demolitions during heavy storms or rain, emphasizing safety precautions for both workers and residents.
Property developers and landowners in Gurugram are urging the state government to reinstate a policy allowing the construction of four-floor buildings before Diwali, as approvals for such projects have been on hold for eight months. The suspension came following protests by residents who argued that these "builder floors" were overburdening resources and infrastructure in already densely populated areas. The Gurgaon Home Developers and Plot Owners' Association contends that these builder floors cater to individuals with limited budgets and generate substantial revenue for the state. Despite the revenue generated, the government is yet to make a decision on the policy's future.
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iSprout, a prominent player in India's co-working space industry, has raised Rs 40 crore through its first secured bond offering. Vivriti Asset Management, a major credit asset manager with over Rs 3,000 crore invested in mid-market enterprises, facilitated the bond subscription. iSprout, founded in 2016, is expanding its operations and presence in Hyderabad and Bengaluru with the funds. They also plan to develop proprietary technologies for streamlining crucial processes. With an impressive growth rate of 200% in the last six quarters, iSprout aims to further expand its premium managed office space offerings in India.
Institutional investments in Indian real estate surged by an impressive 27% year-on-year to USD 4.6 billion from January to September 2023, showcasing the sector's robust growth amid global uncertainties. Foreign investments held a dominant 77% share, while domestic investments doubled year-on-year, reaching USD 1.1 billion. Notably, domestic investors took the lead in Q3, contributing to 63% of total investments for the quarter. The Indian real estate sector remains a resilient and promising investment destination, with the office sector witnessing significant growth. Industrial assets also saw a remarkable 3.5-fold increase in investment, driven by India's booming manufacturing sector.
India is set to urbanize at a rapid pace, reaching around 36% this year and an anticipated 50% by 2050. According to a report by Cushman and Wakefield released at the 21st NATCON in Egypt, tier-2 towns like Bhubaneswar, Indore, Jaipur, and others will become promising real estate destinations due to their development potential. The report identifies key indicators such as population, infrastructure, talent pool, income, ease of living, and housing affordability to select these cities. This urbanization trend is reshaping real estate dynamics, with tier-2 cities expected to play a significant role in India's growth story.
The Bank of Baroda's board has granted approval for the issuance of long-term bonds to raise Rs 10,000 crore, which will be used to finance infrastructure and affordable housing projects. However, the RBI has temporarily halted the bank from onboarding new customers through its 'Bob World' mobile app due to supervisory concerns. This has led to a 3 percent drop in the bank's stock price. While the bank has taken corrective measures and plans to work closely with the RBI, it remains confident that the regulatory action will not significantly impact its overall business and growth plans.
The UT estate office has successfully recovered over Rs 527 crore in lease and rental dues, with Rs 427 crore collected in the past one and a half years, starting on April 1, 2022. In the current fiscal year, up to September 30, approximately Rs 150 crore has been collected, with another Rs 150 crore anticipated by March 31. This financial recovery initiative, led by UT Finance Secretary Vijay Namdeorao Zade, involved the issuance of more than 4,000 notices to defaulters, primarily from leasehold properties. The recovery effort highlights the importance of timely financial compliance within the organization.
Residents of Bidhannagar's wards 27, 28, 35, and 36 will start paying property tax to the Bidhannagar Municipal Corporation (BMC) from April 1, 2024. Previously, these areas paid 'khajna' or land revenue. While some express concerns about the disparity in civic services, others anticipate improvements with this change. The property tax structure for these wards will align with Rajarhat-Gopalpur, streamlining the system. Additionally, BMC has deferred penalties and interest on arrear property tax and will soon send tax bills for the third and fourth quarters. BMC continues to work towards uniform property tax structures for all wards.
Godrej Properties has unveiled the Taj The Trees hotel in Mumbai’s evolving Vikhroli neighbourhood. This luxury hotel, owned by Godrej Properties and managed by Indian Hotel Companies Limited (IHCL), spans 0.35 million square feet, offering 151 spacious rooms, dining options, a rooftop bar, pool, conference facilities, and a spa. The establishment has earned IGBC Platinum certification and offers captivating views of mangroves and an art and sculpture park. Vikhroli’s strategic location along the Eastern Express Highway connects it to various parts of Mumbai, including airports, making it an attractive destination for both business and leisure travellers.
Kerala unveiled its first 3D-printed building, the 380-square-foot AMAZE-28, at the KESNIK campus. This ground breaking achievement, completed in just 28 days, heralds a new era in construction technology. Chennai-based start-up Tvasta, in collaboration with KESNIK, brought this architectural marvel to life, fusing traditional and 3D printing methods. The integration of both techniques showcases 3D printing's adaptability and opens the door to widespread implementation in construction, promising efficiency and creative design possibilities. This project is a testament to the unceasing quest for innovation in the construction industry.
Delhi faces a colossal daily burden of 6,500 tonnes of construction debris. In response, Chief Minister Arvind Kejriwal unveiled India's largest Construction and Demolition (C&D) waste recycling facility, managed by EverEnviro Resource Management. The cutting-edge plant can process 2,000 tonnes of C&D waste daily across a sprawling 7-acre site, offering a potential solution to the city's waste woes. EverEnviro efficiently collects and transforms construction debris into high-quality recycled materials, bolstering circularity in construction and reducing environmental strain. This initiative has the potential to enhance Delhi's urban environment by curbing pollution and fostering sustainable construction practices, setting a vital example for the industry.
Kolkata is set to expand after a decade, incorporating three areas to provide urban services to 60,000 residents lacking essential facilities. The Kolkata Municipal Corporation (KMC) plans to include Jagadipota and Mukundapur under its jurisdiction, addressing issues like waterlogging and poor roads. Rania mouja in south Kolkata will also be under KMC, benefiting 15,000 residents. The move aims to enhance civic amenities, generate revenue, and simplify property-related processes. Residents welcome the initiative, anticipating improved infrastructure and a better quality of life. KMC's expansion signifies a significant step toward enhancing living conditions and fostering community development.
In September, the UK’s housing market exhibited mixed signals as reported by mortgage lender Halifax. House prices experienced a 0.4% decline compared to August, which was less severe than the previous month’s 1.8% drop. On an annual basis, prices were 4.7% lower than September 2022, slightly surpassing August’s 4.5% decrease. This downward trend coincides with the Bank of England’s expected decision to maintain high interest rates, potentially constraining buyer demand in the coming year. Rival lender Nationwide also reported a 5.3% annual decrease in house prices for September, matching August’s decline, though monthly prices remained stable. Despite recent drops, prices still remained significantly higher than pre-pandemic levels, with an average home price of ￡278,601.
The Greek real estate market is experiencing a surge in demand for vacation homes, with a notable influx of buyers from the Greek diaspora and abroad. According to Elxis, a leading real estate agency in Greece, expatriates from the United States, Canada, and Germany are making a strong comeback to purchase properties in their homeland. This renewed interest is partly driven by the rapid recovery of property prices in Greece. Additionally, there is a growing trend among buyers to use these homes for both vacations and short-term rentals, further boosting the market. The return of U.S. tourists to Europe, including Greece, has contributed to this demand, with Greek expatriates among those rediscovering their homeland.
Florence, Italy, has implemented strict regulations on short-term rentals like Airbnb in its historic centre due to rising prices and housing shortages. This move aims to protect housing for local residents. Landlords can receive tax incentives if they transition from short-term to long-term leases. Mayor Dario Nardella cited a 15.1% price increase this year and concerns from the 40,000 residents in the city centre. Similar housing crises affect other European countries. The central government is considering a bill that may require a minimum two-night stay in historic areas and a national identification code for tourist rentals, with penalties of up to €5,000 for non-compliance.
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