Daily Real Estate brief from PNT
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Ipsita Dasgupta, the Managing Director of HP India, recently purchased a luxury apartment in Mumbai's prestigious Worli locality for over Rs 22.50 crore. She acquired the 2,964 sq ft flat on the 4th floor of the super-premium project, Raheja Artesia, from K Raheja Corp Homes. The deal, completed on October 26, includes exclusive access to three car parking slots. Notably, the same building has seen other high-value transactions with prices averaging around Rs. 1.25 lakh per sq.ft. Mumbai's property market remains robust, with over 1.04 lakh property registrations in the first ten months of 2023.
? A residential flat spanning 350 square feet on the 1st floor sold in DB Orchid Heights in Mumbai Central for INR 63.40 lacs<br>
? A residential flat spanning 402 square feet on the 20th floor sold in AIM Paradise in Jogeshwari East for INR 61.15 lacs
The Adani Group is considering investing a substantial Rs 12,000 crore for the redevelopment of Dharavi, Asia's largest slum. Adani owns 80% of the Special Purpose Vehicle (SPV), while the Maharashtra government holds the remaining 20%. The project aims to enhance living conditions, promote sustainable development, and stimulate economic growth. It is expected to serve as a model for slum redevelopment on a global scale. Additionally, the transformation of Dharavi includes a Metro rail project linking it to Mumbai and a new road connecting it to the Bandra-Worli Sea Link. The first round of additional funding is expected in 2024.
Macrotech Developers reported a net consolidated profit of Rs 202.8 crore, a substantial shift from the loss of Rs 932.9 crore in the corresponding quarter of the previous fiscal. Their total income marginally decreased to Rs 1,755.1 crore from Rs 1,761.2 crore it recorded in the similar quarter last year. Notably, the company achieved impressive pre-sales of Rs 3,530 crore, marked by a 12% year-on-year growth, and recorded a 16% increase in customer collections, reaching Rs 2,750 crore. The firm's present focus is on reducing debt, trimming it by Rs 540 crore to Rs 6,730 crore. The company remains on track to meet its set financial targets amid steady development in the real estate sector.
The Maharashtra Real Estate Regulatory Authority (MahaRERA) has upheld the suspension of registration for 182 real estate projects due to their failure to meet the mandated conditions for updating quarterly progress reports. This decision comes after promoters of 222 projects sought to have the suspension lifted, claiming to have paid penalties and provided updated reports. However, MahaRERA found that only 40 projects met all necessary conditions, leading to a directive for the remaining 182 to resubmit required information. The regulatory body also identified deficiencies in the reports. MahaRERA's commitment to transparency, accountability, and protecting homebuyers is evident, underscoring the importance of complying with reporting and regulatory obligations in the real estate sector.
The Bombay High Court has accepted a Public Interest Litigation (PIL) concerning the Panel City Municipal Corporation's (PCMC) handling of a slum rehabilitation project in Panvel. The PIL alleges that the PCMC divided a flood-prone plot without environmental clearances for a slum rehabilitation building. This plot falls under the Coastal Regulation Zone (CRZ), where construction is prohibited due to flood risks. The PCMC is accused of failing to obtain a technical report, potentially impacting the environment. The PIL also questions the PCMC's transparency and eviction of slum residents without adequate alternative housing. The PCMC denies the allegations, stating that all necessary formalities were completed before commencement of work.
The Delhi Development Authority (DDA) is set to light up this Diwali with a major housing scheme, offering over 30,000 apartments across prime locations including Dwarka, Narela, and Vasant Kunj. The festive rollout caters to various income brackets, with luxurious penthouses and budget-friendly options. Prospective buyers are advised to register promptly, as the scheme operates on a first-come basis. Prices are likely to range from Rs 11 lakh for EWS flats to Rs 3 crore for premium SHIG units, subject to final revisions at launch.
The Yamuna Authority is set to launch an industrial township on 500 acres in sectors 10 and 32 off the Yamuna Expressway, aimed at attracting Japanese companies in the field of electronics, chips, semiconductors, and AI sectors. It allows multiple land uses, including industrial, residential, commercial, and institutional spaces. The state cabinet's new FDI policy, offering exemptions in land costs and stamp duties, is expected to entice more companies to establish factories. Companies have to invest at least Rs 100 crore to qualify for these FDI benefits, including GST exemptions and financial support for worker accommodations. The proposed township will provide all essential facilities for Japanese nationals, creating a self-sufficient unit.
The Odisha Apartment (Ownership and Management) Act, 2023 has been officially announced by the Housing And Urban Development Department in Odisha. This legislation aims to provide clarity and structure to apartment ownership in multi-unit housing complexes. It outlines the rights and responsibilities of apartment owners, developers, and apartment associations. Key provisions include defining exclusive apartment ownership, transferring ownership of common areas and facilities to apartment associations, and specifying the responsibilities of developers and apartment owners. This Act is expected to bring transparency and accountability to the apartment ownership landscape in Odisha, benefiting both developers and apartment owners.
Air India, owned by the Tata Group, has signed a lease agreement for seven floors, spanning 1,80,750 square feet of office space, at Gurugram's Vatika One on One building. The five-year lease, with an annual rent of Rs 24.05 crore, commenced on September 29, 2023. Air India paid an interest-free refundable security deposit of Rs 11.34 crore and a rent-free fit-out period is granted until March 2024. The rent would be hiked by 15% after three years. Vatika One on One is a 12-acre office complex located just six kilometres from Indira Gandhi International Airport, offering signal-free connectivity.
In the first half of the current fiscal year, India's listed Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs) have collectively raised Rs 18,658 crore. During the entire 2022-23 fiscal year, InvITs gathered Rs 2,596 crore, while listed REITs did not mobilize any funds, according to data from the Securities and Exchange Board of India (SEBI). The surge in fundraising can be attributed to strong demand for infrastructure investments, appealing returns, and favourable government policies. Experts predict these trends will continue in the second half of the year, with a focus on infrastructure development.
Brookfield Properties, a subsidiary of Brookfield Asset Management, has successfully refinanced a Rs 2,100 crore debt associated with Equinox Business Park in Mumbai. This strategic move, facilitated by Punjab National Bank, replaces prior loans from Housing Development Finance Corporation (HDFC). The new debt offers improved terms with an 8.60% interest rate, extending until September 2038. High occupancy rates and a strong client base led to this refinancing, reflecting the property's exceptional performance since its acquisition in 2018. The recent leasing success highlights Brookfield's prudent financial approach and commitment to enhancing commercial real estate.
The Pune Municipal Corporation (PMC) is aggressively addressing property tax defaulters to bolster its financial stability. In just four days, they've taken action against 40 delinquent property owners, owing a total of approximately Rs 8 crore in arrears. After issuing notices and warnings, PMC has begun sealing these properties and has already collected Rs 1.8 crore. They plan to auction around 200 sealed properties, potentially adding Rs 60 crore to their coffers. However, critics raise concerns about amnesty schemes for defaulters, underscoring the need to balance fiscal responsibility and fairness for diligent taxpayers. PMC's efforts are crucial for sustaining essential city services.
GIC Housing Finance, a prominent player in India's housing finance sector, reported a 46.39 percent decrease in its net consolidated profit in Q2 FY24, with a profit after tax of Rs 30.19 crore, down from Rs 56.31 crore in the previous year. The company's net consolidated total income also dipped by 3.81 percent to Rs 270.19 crore from Rs 280.89 crore in the previous year. Factors contributing to this decline include stagnation in the Indian real estate sector, rising costs of funds, and increasing competition from banks and NBFCs. GIC Housing Finance is actively pursuing cost optimization and diversification to overcome these challenges.
Kamat Hotels India Ltd has recently launched a new addition to their upper mid-segment hotel chain, 'IRA by Orchid Hotels,' in Nashik. This strategic expansion follows the successful establishment of two IRA hotels in Mumbai and Bhubaneswar. The new Nashik hotel is ideally situated along the bustling Nashik highway, offering 32 well-appointed rooms with modern amenities. It features two restaurants, 'Makeba' for outdoor dining and 'Crossroads' for formal dining, serving a variety of Indian and continental cuisine. It also provides electric vehicle (EV) charging stations for eco-conscious guests.
The Brihanmumbai Municipal Corporation (BMC) has sent a strong message to more than 100 contractors and real estate firms in Mumbai, warning them to strictly adhere to dust mitigation norms or face punitive measures. As the city grapples with deteriorating air quality, the BMC issued a new set of guidelines, giving builders and contractors one month to acquire essential equipment to combat air pollution. The move is part of a comprehensive effort to enhance Mumbai's Air Quality Index (AQI).
The BMC's K west ward in Mumbai demolished 45 unauthorised structures, allowing the Metro 6 project to progress. This initiative not only promises to enhance connectivity but also addresses traffic congestion and waterlogging issues. The Mumbai Metropolitan Region Development Authority (MMRDA) is set to further improve civic amenities, facilitating urban planning. With these infrastructure projects, Mumbai is determined to overcome challenges, enhance public transportation, and elevate the quality of life for its residents. This progress sets an inspiring precedent for cities globally.
The revenue department in Kochi has issued an 11(1) notification for land acquisition for five metro stations on the Phase II line of the Kochi Metro, with two more notifications expected soon. The proposed stations at Palarivattom Junction, Kakkanad, Cochin SEZ, Chittethukara, and Kinfra will require the acquisition of 0.9544 hectares of land from Edappally South and Kakkanad villages. KMRL aims to create eco-friendly, modern architectural designs for the stations. Construction work is planned to be expedited, with a precast method for station construction. There are some concerns about the proximity of the St Michael's Church to the metro alignment which had earlier led to protests.
WeWork, supported by SoftBank, has filed for U.S. bankruptcy protection due to its struggling business model, with shares plummeting by about 98.5 percent in a year. The company, which maintained office spaces at 777 locations worldwide as of June, acknowledged its inability to survive without restructuring costly leases. About 92 percent of WeWork's lenders have agreed to convert their debt into equity, reducing the debt load by $3 billion. Expensive leases and the shift of corporate clients to remote work challenged WeWork's profitability, with space costs accounting for 74 percent of Q2 2023 revenue. SoftBank hopes the restructuring agreement will pave the way for WeWork's revival.
In Q3 2023, Dubai’s housing real estate market showed mixed trends. Housing prices surged by 27.2% year-on-year and 2.1% quarter-on-quarter, with villa rentals experiencing a substantial 38.7% annual increase. Average annual rents for various villa sizes ranged from Dh312,000 to Dh492,000, while apartment asking rents increased by 19.1% annually. Residential occupancy reached 88.9% in Dubai. Despite the strong demand, the rental market witnessed a gradual slowdown with a 20.6% annual growth, slightly lower than the previous year. The market also saw a significant increase in transactions and market value, underscoring Dubai's enduring appeal as a dynamic real estate hub.
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