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!
Kinnteisto LLP, led by accomplished investor Rekha Jhunjhunwala, completes a significant real estate transaction in Mumbai. The acquisition includes over 1.94 lakh square feet of commercial office space in the prominent business areas of Bandra Kurla Complex (BKC) and Chandivali, valued at approximately 740 crore rupees. This comprises 1.26 lakh square feet in BKC's 'The Capital' and 68,195 square feet in Chandivali's Boomerang building. The properties were purchased from Wadhwa Group Holdings Pvt Ltd and Kanakia Spaces Realty Pvt Ltd, respectively. The acquisitions, part of Jhunjhunwala's long-term investment strategy, also provide access to 234 parking slots, enhancing their overall value.
? A residential flat spanning 385 square feet sold on the 8th floor in Greenstone Heritage in Fort for INR 1cr
? A residential flat spanning 744 square feet sold in Sai World Empire in Kharghar for INR 1.51cr
The Delhi Development Authority (DDA) is soliciting bids for a consulting firm to oversee the demolition of the structurally troubled Signature View Apartments in Mukherjee Nagar. A study by the Indian Institute of Technology Delhi in 2021-2022 confirmed the building's unsound condition. The DDA is seeking an experienced consultant to manage the demolition, waste removal, and recycling, with a potential six-month engagement. A pre-bid meeting has been scheduled to address potential bidders' questions and concerns. Meanwhile, residents are requesting a reduction in the 100% evacuation requirement to 75% to facilitate a smoother transition to temporary accommodations. This initiative aims to ensure a safe and efficient demolition process.
Godrej Properties, the real estate arm of the renowned Godrej Group, has announced outstanding financial performance for Q2 ending on September 30, 2023, signalling a promising future in India's real estate market. The company is set to surpass its projected new bookings of Rs. 14,000 crores, achieve record cash collections, and complete projects at an all-time high in the current fiscal year. The company plans to launch 14 new projects and expand 10 existing projects. Q2 saw their highest quarterly sales, a 48% increase in half-yearly sales, and an impressive 29% increase in collections, highlighting financial stability. The company's net profit increased by 22%, reflecting strong growth in total income and effective cost management.
Golden I's IT/ITES project, 'Blue-Signature Suites', in Greater Noida West has achieved an unprecedented milestone, selling out on its launch day. This success highlights the intense demand for contemporary commercial spaces in the area. With an IGBC certification, the project comprises 210 corporate suites and 850 square feet of saleable area. The star attraction of the project is the iconic Blue Sky Tower with luxurious corporate suites featuring low density rooftop spaces with unique and exclusive features. This pioneering development aims to set new industry standards in the realm of luxury and innovation within Greater Noida West.
Two brothers, Vasant Sham Gulhane and Sajan Sham Gulhane, were arrested for attempting to illegally claim and sell government-owned land in Chembur allotted to the Mumbai police. They erected a signboard warning trespassers and submitted forged property documents, including a 7/12 extract with their father's name as the owner. The police suspect they were manipulated by developers seeking financial gain. The brothers have not revealed the extent of their involvement with the developers. An FIR was registered against them for cheating, criminal trespass, and forgery. Further investigations are underway to identify additional suspects involved in this land-grabbing scheme.
The state government of Andhra Pradesh is in the process of refining its proposed land allotment policy for industries to attract potential investors. This follows the recent approval of the new policy by the state cabinet, led by Chief Minister YS Jagan Mohan Reddy. The cabinet has directed the industries department to prepare a comprehensive plan for further discussion, particularly regarding land allotment options. While no decisions have been made on the third option, which involves executing a sale deed for projects executed in phases, the cabinet did deliberate on the prospect of allotting land based on sale agreements or sale deeds instead of the current lease-based model. These efforts aim to create a more investor-friendly environment and foster economic growth.
A proposal is in motion to establish an overseeing authority for housing societies in Gujarat, addressing the inadequacies of the current cooperative registrar's manpower. The move comes in response to the growing complexities and challenges faced by housing societies. Many residential societies have faced prolonged delays in auditing their accounts, resulting in a pressing need for a more efficient regulatory body. The new authority aims to ensure better management, accountability, and governance within these societies, ultimately benefiting residents and stakeholders alike.
The Karnataka Real Estate Regulatory Authority (K-RERA) has issued an interim order instructing the Bangalore Development Authority (BDA) to promptly register its Arkavathy Layout project, following a complaint by a site allottee regarding project delays and lack of amenities. The K-RERA panel noted the BDA's absence during proceedings from September 2022 to September 2023 and has directed the BDA commissioner to complete the project's registration under Section 3 of the Real Estate (Regulation and Development) Act, 2016, within two weeks. Additionally, the BDA has three weeks to justify why penalty proceedings should not be initiated under Section 59(1) of the Act.?
According to a survey by Localcircles, cash transactions in property deals have risen, with 24 percent of respondents stating they did not need to use cash for property purchases, compared to 30 percent two years ago. While digital transactions have seen growth, the survey revealed that 82 percent used cash for daily purchases such as groceries and dining out over the past year. The survey, involving 44,000 individuals from 363 districts, noted that a significant portion of property transactions involved cash payments, despite efforts to reduce reliance on cash in the economy, particularly following demonetization in 2016.
Borivali East, a thriving Mumbai suburb, offers diverse housing options and robust infrastructure, making it a sought-after living destination. In October, the real estate market witnessed 57 transactions, with CCI Rivali Park leading with 20 deals. The carpet area varied from Ambrosia Tower's generous 1,518 sq ft to Chandak Nishchay's snug 368 sq ft. Oberoi Sky City set a record with a luxury apartment selling for Rs. 4.4 Crores, surpassing the average rate per sq ft. Borivali East's real estate narrative highlights demand for spacious homes and a growing attraction for high-value investments.
The Bruhat Bengaluru Mahanagara Palike (BBMP) is taking robust measures to compel property tax compliance. Defaulters now face severe consequences, including vehicle seizures, bank account freezes, and property sealing. BBMP aims to collect Rs 4,790 crore in property tax and related cess for the fiscal year 2023-24. BBMP is intensifying reminders, sending text messages to defaulters with online payment links and warnings of legal actions under the BBMP Act-2020. A proactive physical verification process is also in place to ensure accurate property data. BBMP's comprehensive approach and digital initiatives set a positive precedent for efficient tax administration and equitable resource allocation.
Fortune Hotels, a part of ITC's hotel group, has inaugurated Fortune Park in Aligarh, marking its fourth establishment in Uttar Pradesh. The hotel boasts 65 well-designed rooms with modern interiors and top-notch amenities. The hotel features spacious banquet areas, cutting-edge facilities, and gourmet options, catering to diverse events. Located conveniently near key landmarks, the hotel ensures easy access to prominent attractions and business centres. With this launch, Fortune Hotels expands its presence in Uttar Pradesh, complementing its existing hotels in Lucknow, Noida, and Ghaziabad.
Square Yards, a prominent real estate platform, celebrates a significant milestone as its asset management division, PropsAMC, which has successfully helped over 300 homebuyers reclaim Rs 100 crore in contentious legal battles with developers. This achievement underscores Square Yards' dedication to safeguarding their clients' investments. Recognizing the challenges faced by homebuyers in complex legal disputes, PropsAMC established legal services to address these issues, along with property tax conflicts and owner disputes. The division's impact extends to digitizing 20 million property registration records, empowering users with valuable information for informed real estate decisions.
The Brihanmumbai Municipal Corporation (BMC) faces challenges in its ambitious road concreting project, with penalties exceeding Rs 82 crore imposed on contractors due to delays. Roadway Solutions India Infra bears the largest share of Rs 54.1 crore in penalties for roadwork in the island city. The project, covering 890 stretches on 110 roads, totalling 397 kilometres, lacks clear completion percentages, raising concerns. BMC plans to deduct fines from ongoing invoices, with contractors holding a 1% security deposit to offset penalties. Following a termination notice to Roadway Solutions, the BMC may consider an ex-parte termination order. The project's future is uncertain, sparking political debates and concerns.
A new Foot Over Bridge (FOB) was inaugurated at Kurla Station on November 4, 2023, marking the sixth addition to Kurla's FOB network. Costing approximately Rs 10.62 crore, this bridge boasts a width of 8.00m and a length of 79.85m with 44 columns and 4 spans to accommodate a large number of passengers. The FOB features five strategically located staircases, a Skywalk of 13.61 x 4.00m, and is expected to alleviate overcrowding and enhance passenger flow at Kurla Station. This development aims to improve Mumbai's public transportation network and enhance the daily commute experience for thousands of passengers.
India and Bhutan have agreed to enhance regional connectivity, focusing on projects like a 58-km cross-border rail link connecting Gelephu and Kokrajhar in Assam and an 18-km rail link between Samtse in Bhutan and Banarhat in West Bengal. This collaboration aligns with Bhutan's plan for a smart city at Gelephu, boosting trade and tourism between the two countries. Additionally, the Darranga-Samdrup Jongkhar border crossing was designated as an immigration check post, promoting smoother travel and facilitating exchanges with Bangladesh. These initiatives are expected to support Bhutan's economic growth and create employment opportunities.
Skanska, a Swedish construction company, reported disappointing third-quarter earnings due to property market challenges, resulting in asset write-downs and goodwill impairment charges. Skanska’s shares dropped by 12% as the operating profit fell from 1.52 billion crowns to 549 million crowns, missing the estimated 1.58 billion crowns. The company attributed these issues to changing property values and interest rate hikes globally. They expect weak property markets in the Nordics but anticipate strong construction activity in the U.S. Despite concerns about a recovery in the development businesses, Skanska’s CEO, Anders Danielsson, emphasized the need for stability in inflation and interest rates.
A recent report by JLL, reveals that Mumbai and Hong Kong, the lowest-ranked cities in sustainable office spaces, are expected to face a severe shortage of 62% and 68% in high-quality eco-friendly office spaces, respectively. Singapore, Melbourne, and Delhi are also projected to experience undersupply, with deficits of 56%, 43%, and 44%. This scarcity is driven by businesses' ambitions to achieve net-zero carbon (NZC) goals, causing tenants to prioritize building-specific sustainability criteria, like energy efficiency and renewable energy sourcing. The report underscores the need for retrofitting in the Asia Pacific region to align with impending regulations and meet the rising demand for sustainable office spaces, encouraging investors and property owners to make gradual improvements to gain a competitive edge and reduce the risk of financial penalties or rental losses. Some governments are actively supporting these efforts through incentives and regulations.
Canada's Liberal government has announced plans to maintain its immigration targets at 465,000 new residents for this year, rising to 485,000 in 2024 and 500,000 in 2025. The levels are set to be sustained in 2026. This decision aims to balance economic and population growth while considering impacts on critical systems like housing and infrastructure. However, experts, including the Royal Bank of Canada, suggest that a higher immigration rate might be necessary for long-term stability. The delicate balance between attracting immigrants for growth and managing associated challenges remains a significant concern for Canada.
To read the full news stories, head over to?Prop News Time