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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The Dharavi Redevelopment Project Pvt Ltd (DRPPL), a joint venture between Adani Group and the Maharashtra Government, recently announced its eligibility criteria for free housing under the scheme. All those who can prove to be residents of Dharavi slums prior to 1 January, are eligible for free housing with a minimum size of 350 square feet, featuring independent kitchens and attached toilets. The rest of the residents will be accommodated across multiple land parcels across the city under the Navi Dharavi plan. Adani Group won the bid for the project in November 2023 and has since enlisted the likes of renowned architect Hafiz Contractor and international companies Sasaki and Buro Happold to executive the project.
? A residential flat spanning 455 square feet sold in Reliable Unique Heights in Vikhroli East for INR 75 lakhs
? A residential flat spanning 502 square feet sold in Sunder Shree Madhuvandham in Borivali West for INR 95 crores
The Malmatta Patrak or the Property Card is an extract obtained from the urban land records register of the Government of Maharashtra. It is recognised as a record-of-right, certified by the government and is considered an important proof of ownership. It contains details of the history of ownership of the land and the encumbrances attached to it. This card can be obtained from the city survey officer or downloaded from the official government website for land records.
Delhi NCR-based real estate developer TARC Ltd plans a Rs 1,200 crore investment in "TARC Kailasa," a luxury housing project spanning 1.7 million sq ft in central-west Delhi's Kirti Nagar. CEO Amar Sarin unveiled the prestigious venture, featuring 411 apartments with ticket prices of Rs 9 crore and Rs 12 crore for 3.5 BHK and 4.5 BHK units, respectively. Designed by Andy Fisher Workshop, the project will occupy six acres, boasting five towers of 30-35 floors. Construction funding will be internal, backed by robust sales, with 30% already sold within days. TARC Ltd targets 65% sales within the next month, eyeing a combined revenue of Rs 7,500 crore from three major projects, including one in Gurugram.
The Bombay High Court has granted permission for the City and Industrial Development Corporation (CIDCO) to clear 3,728 mangroves, enabling the construction of the 5.8 km Ulwe Coastal Road connecting the Mumbai Trans Harbour Link (MTHL) to Navi Mumbai and the upcoming Navi Mumbai International Airport. The decision followed CIDCO's adherence to environmental clearances, including compensatory plantations. While acknowledging the importance of the project, the court urged expeditious compensation processes for affected parties under the 2013 Act.
The Phoenix Mills, a prominent retail-led mixed-use asset developer, plans to expand its commercial offices portfolio by adding 5.1 million square feet of assets across five key Indian cities over the next three years. It aims to increase the operational office projects portfolio to 7 million square feet by 2027. Of the 5.1 million sq.ft, Pune leads with 1.2 million sq.ft., followed by Mumbai (1.1 million sq ft), Bengaluru will see 2 projects of 1.2 million sq ft each, and Chennai (400,000 sq ft). Managing Director Shishir Shrivastava highlighted India's robust economic and social recovery, emphasizing increased demand for quality office spaces. The company is said to rely on internal accruals for this ambitious expansion, reinforcing confidence in India's commercial real estate market.
In 2023, India's real estate investment landscape underwent a significant shift, as per Vestian's report. Institutional investments declined by 12% annually to USD 4.3 billion, while domestic investors doubled contributions, reaching USD 1.5 billion. Domestic confidence surged, with a 120% growth in funds from USD 687 million in 2022 to USD 1.5 billion in 2023, increasing domestic investors' share from 14% to 35%. Conversely, foreign investments fell from 79% in 2022 to 65% (USD 2.73 billion) due to macroeconomic slowdown. Commercial assets dominated foreign investments. RBI data indicated a 38% increase in commercial real estate lending, showcasing sector resilience. Although overall investments hit a five-year low, optimism for a 2024 resurgence prevails, driven by India's economic performance and planned infrastructure developments.
IndoSpace, India's leading industrial real estate developer, signs a Rs 2000 crore Memorandum of Understanding with the Tamil Nadu Government, demonstrating a robust commitment to the state's industrial growth. The agreement, announced at the Tamil Nadu Global Investors Meet 2024, aims to generate 15,000 jobs. With an existing 600-acre land bank and 14 Grade A industrial parks in the region, IndoSpace's investment contributes to the state's economic development. The MoU outlines plans for an additional 5 million sq. ft. of land, reinforcing IndoSpace's pivotal role in Tamil Nadu's industrial landscape.
Fortune Hotels, a mid-segment chain under ITC Hotels, is poised for significant expansion in the fiscal year 2024. Samir MC, the Managing Director, outlined plans to add 10 new properties and sign agreements for another 10, capitalizing on the company's successful performance in the current fiscal year. With a focus on tier-2 markets and the leisure segment, Fortune Hotels aims for a balanced 50:50 mix between business and leisure hotels. Samir highlighted the recent acceleration in growth, signing contracts for around 20 hotels in the last two years and opening 13 during that period, signalling a proactive approach to capitalize on emerging opportunities.
The National Highways Authority of India (NHAI) has reintroduced the Build Operate Transfer (BOT) model for highway construction, inviting bids for eight key projects with a combined investment of Rs 31,000 crore. After years of dormancy due to private investor risk aversion, the BOT model aims to rejuvenate private participation in building and operating highways. The NHAI's decision, part of a broader strategy, reflects an effort to diversify funding sources, reduce government reliance on the budget, and enhance the quality of construction through long-term private sector involvement.
Housing and Urban Development Corporation (HUDCO) plans to borrow funds from Japan to cut down on costs. It is aiming for a 6.5-7% rate, which is lower than the current rate of 7.5%. The move is part of HUDCO's strategy to expand its loan book to Rs 1.5 lakh crore by 2026. The corporation is actively studying state plans and budgets while appealing to the government for favorable financing status. HUDCO remains optimistic about meeting its fiscal targets and is engaging in MoUs with states for efficient expansion.
Danube Properties, a prominent UAE real estate developer, has revealed its most ambitious project yet – Bayz101, a 101-level skyscraper in Business Bay, near Dubai's Burj Khalifa. Celebrating a decade in business, this iconic development aims to strengthen Dubai's City of Skyscrapers status, attracting global attention. With heightened interest from international investors, particularly 32% from India, the project features a popular 1% monthly payment plan. Bayz101, Danube's 28th venture, offers 1,346 homes, diverse housing options, and competitive pricing, reflecting the company's commitment to exceptional living spaces.
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