Daily Real Estate briefing by PNT
An ongoing independent survey directed by the Meerut divisional commissioner has uncovered around 5,000 multi-storey buildings erected on single-use plots within Vasundhara township. The committee's investigation, triggered by complaints of land use violations received by the DC's office, aims to address these concerns. The forthcoming report will be submitted to the state government for action, possibly involving extensive demolitions,. Residents have expressed dismay over the impact on infrastructure, while questions arise about regulatory oversight. Officials suggest banks verify legality before granting home loans.
Real estate prices in Mokila, neighbouring Kokapet, have surged remarkably. The Telangana government's auction of a 165-acre layout in Mokila village resulted in three times the market price per square yard. The auction, managed by the Hyderabad Metropolitan Development Authority (HMDA), saw bids reaching impressive levels, from Rs 1.05 lakh to Rs 72,000 per square yard. Out of 50 plots, 48 were successfully sold, amassing Rs 121 crore in revenue. Mokila's prominence is underlined by this achievement, where historically open plots were sold at about Rs 30,000 per square yard.
The Asia Pacific tourism and hospitality sector is bustling with activity as investments surge, occupancy rates remain high, and leisure travel demand grows. Notable transactions include Singapore's largest-ever single asset hotel sale, and Japan and Australia/New Zealand leading in investment deals. Leading hotel chains like Dusit International expand into Nepal and Japan. New hotels like Bulgari Hotel in Tokyo and upcoming openings like Dusit Thani Kyoto and Club Med Kiroro Grand highlight the sector's vibrancy. China, Malaysia, and Thailand also saw significant hotel openings. With investments and new launches, the region's tourism and hospitality industry looks poised for continued growth.
The Galaxy Group, a real estate developer based in the National Capital Region (NCR), has secured a land parcel in South Delhi's Lodhi Colony through a lease agreement with the Rail Land Development Authority (RLDA). Valued at Rs 356 crore, the land spans 43,345.82 square meters and is planned for a transformative residential development. Divided into sections including Lodhi Colony and Sewa Nagar, a significant portion will be allocated for residential development. The Galaxy Group plans to invest Rs 1,000 crore in comprehensive projects that include housing for railway staff and the redevelopment of existing railway colonies.
Emami Realty's financial performance in Q1 FY24 has been marked by a substantial loss after a profitable year prior, prompting the company to strategically augment its board composition. The net consolidated loss after tax of Rs 14.36 crore, in contrast to the previous year's profit, underscores market complexity and competition challenges. With a 66.98 percent decline in net consolidated total income, Emami Realty's approach focuses on resilience and growth. The appointment of Amit Kiran Deb as an additional director signifies proactive adaptation and strategic planning.
Thiruvananthapuram Corporation has finalized new property tax rates for the upcoming fiscal year. Government office buildings will see a substantial 72.5% reduction in basic tax rates, while larger residential, commercial, and hospitality properties will face increased tax burdens. The proposed revisions, based on existing slabs, await approval in an upcoming civic body council meeting. Additionally, property tax calculations will include a 5% annual increment over five years, following state government directives based on finance commission recommendations.
The state government has chosen not to grant a full property tax waiver to owners of houses under 500 square feet in the Pune Municipal Corporation (PMC) limits, in contrast to exemptions in Mumbai. The decision, made during the state assembly session, aims to avoid significant revenue loss for the civic administration, already providing a 40% tax discount. This move, affecting around 12 lakh properties, comes after a history of fluctuating property tax policies, including a 40% reduction following floods in the 1970s and subsequent discontinuation in 2019.
Chandigarh's building plan approval process is set to become more expensive due to the enforcement of charges under the Construction and Demolition Management Policy 2022, effective from February 1. The UT estate office is collaborating with Chandigarh Smart City Ltd to implement the charges on new and revised building plans via the online system, while also planning a special audit to assess financial impact and recovery from applicants. The policy emphasizes responsible waste management, requiring waste generators to dispose of debris at designated locations.
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The Ludhiana Improvement Trust (LIT) is relying on anticipated revenue from an impending property auction by the Jalandhar Improvement Trust (JIT) to address a complex financial situation. In 2017, JIT had taken a substantial bank loan for its Surya Enclave Extension scheme, leading to collateralization of prime properties, including the Guru Gobind Singh stadium. After state government intervention, LIT and other improvement trusts extended loans to JIT for a settlement. The planned property auction's proceeds were divided, with Ludhiana and Amritsar receiving 40% each and JIT 20%. Despite delays, LIT's financial stability is affirmed, as it navigates various projects and commitments.
RLDA concluded the New Delhi Railway Station's pre-bid meeting with fervour. Leading construction firms like L&T, SPCL, and more participated, both online and offline. The EPC mode redevelopment aims to make it a world-class hub, incorporating commercial spaces, modern amenities, and multi-modal transit. The architecturally innovative 'Infinity' building design spans three floors, facilitating seamless movement. To alleviate congestion, seven flyovers and road expansions are planned. The station will feature a food court, waiting lounges, a child zone, and local product stalls.
Danube, a prominent UAE real estate developer, has revealed its latest project, Elitz 3, a luxury tower in Jumeirah Village Circle. Joining their ongoing projects, Elitz and Elitz 2, the tower is set to comprise 750 modern residential units spread across 46 floors. These units, ranging from one to three bedrooms, come with a unique payment plan that has attracted investors. The thriving UAE real estate market, especially in Dubai, has garnered attention from both local and international investors, and Danube's success in delivering quality properties with innovative payment plans positions Elitz 3 as another promising addition to Dubai's luxury living scene.
Kotak Mahindra Asset Management has introduced the Kotak S&P BSE Housing Index Fund, an open-ended scheme tracking the S&P BSE Housing Index to tap into India's housing sector. The fund's transparent approach and alignment with diverse risk profiles underscore Kotak's commitment to empowering investors with opportunities in the real estate domain. As the subscription window opens from August 7th to August 21st, 2023, investors can seize the potential benefits of this innovative thematic index fund.
Several global funds, including Singapore's GIC, Abu Dhabi Investment Authority (ADIA), and Canadian giants CPP Investments and OMERS, are in discussions to acquire a 50% stake in India's Panchshil Realty and Salarpuria Sattva Group, currently held by the Blackstone Group. This significant acquisition spans a vast 26 million sq ft of commercial real estate in India, with an estimated deal value between $4.5 to $5.0 billion. The move signals the growing global interest in India's burgeoning real estate sector.
Private equity (PE) investments in India's real estate sector surged by 51% year-on-year to reach Rs 24,680 crore ($2.99 billion) in the first half of 2023, according to Cushman & Wakefield. The second quarter alone saw a 63% increase in PE investments, reaching Rs 15,850 crore ($1.92 billion), driven by a shift towards office spaces and diversification into areas like logistics, industrial zones, and data centres. Equity investments comprised 87% of total inflows, with stable office occupancy rates and strong rental growth in retail assets.
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