Daily Real Estate briefing by PNT
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Bollywood actor Ranbir Kapoor has recently leased his luxurious apartment in Pune's Trump Towers for an impressive monthly rent of Rs. 4 lakhs. The apartment was leased to Duroshox, a leading company in suspension solutions, for a 36-month period. The lease agreement includes an annual rent escalation. This move reflects a growing trend among celebrities to invest in premium real estate, with stars like Shahid Kapoor and others, making real estate investment a prominent choice in the industry.
The iconic bungalow in Mumbai's Juhu neighborhood, which belonged to the late Bollywood actor Dev Anand, is set to make way for a 22-storey tower. After over 40 years of housing the actor's family, the property was reportedly sold to a real estate firm for an estimated Rs 350-400 crores. Dev Anand's children, who have settled in various locations, found it challenging to maintain the large property, leading to the decision to sell. The family has a history of investing in real estate, with the proceeds from the sale of Anand Studios and other properties being reinvested in residential flats in Mumbai. Mumbai's real estate market has long attracted Bollywood celebrities for investment purposes, making it a lucrative choice for wealth preservation.
The Maharashtra Real Estate Regulatory Authority (MahaRERA) is taking a significant step to enhance housing project quality in the state. They are set to introduce comprehensive quality guidelines for realty projects, with a strong focus on safeguarding homebuyers' interests. With 1.6 crore citizens waiting for homes and 14 lakh homes under construction in Maharashtra, these guidelines aim to ensure timely construction and uncompromising quality. Additionally, MahaRERA plans to introduce an Act dedicated to monitoring construction quality and resolving disputes. In parallel, the RealTech Fund (RTF), with an initial corpus of Rs 50 crore, seeks to drive technological innovations in the real estate sector. These initiatives align with the goal of providing high-quality, accessible housing for all residents.
The Maharashtra Real Estate Regulatory Authority (MahaRERA) has reported that only 7% of registered real estate agents have obtained certification by the September 1 deadline. Out of nearly 45,000 registered agents, only 3,217 have successfully completed the certification process. The low turnout has raised questions about the necessity and value of the certification, with many experienced agents finding it redundant, given the transparency of project details on the MahaRERA website. The authority may need to reconsider the deadline and address concerns within the real estate community to ensure a smoother transition for all stakeholders.
House of Abhinandan Lodha (HOABL), a prominent real estate developer specializing in plotted development, is set to launch an ambitious 25-acre residential plotted development project in Uttar Pradesh's Ayodhya district in January 2024, just a short drive from the forthcoming Ram Temple. This project entails a substantial investment of around Rs 300 crore and is part of HOABL's larger commitment of Rs 1,200 crore to Ayodhya. The development will offer 200 to 220 units, with prices starting at Rs 1.50 crore for a 1,250 sq ft plot, featuring luxurious amenities like a seven-star hotel, clubhouses, and gyms. With Ayodhya's growing prominence and the impending Ram Temple inauguration, HOABL anticipates strong demand from both domestic and international buyers, bolstering its expansion plans across India.
Kolte Patil Developers has launched 24K Espada, a luxurious residential project near Pune's Hinjawadi. This development offers 4 & 5-bedroom row houses in a sought-after location, close to major IT companies, educational institutions, and entertainment hubs. The row houses are designed with a focus on privacy and spacious living, featuring gardens and terraces for relaxation and gatherings. Residents can enjoy premium amenities like yoga lawns, an aroma garden, and Club Yacht. 24K Espada is part of the Life Republic township, enhancing its connectivity and lifestyle offerings, making it an appealing choice for upscale living in Pune.
The Reserve Bank of India (RBI) has issued a directive to financial institutions, including banks, housing finance firms, and others, to ensure the timely release of property documents to borrowers. These institutions are now required to return all original movable and immovable property documents to borrowers within 30 days of complete loan repayment. The RBI's move aims to standardize practices and reduce customer grievances related to the release of property documents. Borrowers will have the flexibility to choose where to collect their documents, and clear procedures will be established for handling document release in case of a borrower's death. Penalties will be imposed for delays or losses of documents, ensuring accountability. The directive will be effective from December 1, 2023.
The Delhi Development Authority (DDA) has approved an annual 8% increase in charges for obtaining property rights in unauthorized colonies under the Pradhan Mantri-Unauthorized Colony in Delhi Awas Adhikar Yojana (PM-Uday scheme). This revision, effective from April 1, 2022, follows an amendment to the National Capital Territory of Delhi (Recognition of Property Rights of Residents in Unauthorized Colonies) Regulations, 2019, in compliance with Section 57 of the Delhi Development Act, 1957. The charges for property rights will increase by 8% each year. While this move aims to regularize unauthorized colonies, it may pose challenges for applicants seeking legal recognition of their properties in these areas.
The dreams of over 6,000 Mumbai policemen to own homes have been thwarted due to alleged mismanagement in the housing society created for this purpose. Policemen have taken the matter to the Bombay High Court, seeking a halt to the scheduled October elections for the housing society. The turmoil revolves around irregularities in the formation of the voter list, including the alleged expulsion of the chief promoter and subsequent approval of the voter list by an assistant registrar. The civil writ petition also calls for an investigation into malpractices and illegalities within the housing society. This situation has raised concerns about the functioning and trust of the society.
The Delhi government aims to increase construction worker registrations to 15 lakh by year-end, up from 13 lakh last fiscal year. This follows Chief Minister Arvind Kejriwal's concerns over insufficient registrations. Additionally, welfare scheme spending for these workers will see a twenty-fold rise, from Rs 12.66 crore to Rs 246 crore. The funds, sourced from a 1% cess on major construction projects, support various benefits, including financial aid, maternity benefits, and medical care. This initiative underscores the government's commitment to the welfare of this essential workforce.
The MSRDC is set to monetize 24 land parcels along the Pune-Mumbai expressway to fund major infrastructure projects like the Samruddhi expressway, Pune Ring Road, and others. These 450 hectares of land will be leased for 99 years, offering a sustainable revenue source. MSRDC possesses 189 hectares in Pune and 262 hectares in Raigad, with some land parcels owned by the corporation and others designated by the government. Tenders have already been floated, providing opportunities for developers to create amenities or residential complexes near the expressway, aligning with the growing trend of wayside investments.
Soccer superstar Lionel Messi's recent purchase of a $10.75 million estate in Fort Lauderdale has sparked interest not only in Miami but across the United States. After joining Inter Miami CF, Messi's popularity, known as "Messi Mania," has grown in the area, drawing both long-time fans and newcomers to the sport. While the real estate market may not experience the same frenzy, it has certainly garnered attention. Messi's acquisition in Bay Colony, a neighbourhood with waterfront mansions and 24-hour security, has the potential to set a new standard for property sales and generate increased interest in the community. However, experts note that celebrity neighbours may not significantly impact property prices, emphasizing the broader popularity of the Fort Lauderdale region.
Churchill's Old War Office, a historic landmark in Whitehall, is undergoing a transformation into a luxurious hotel through a collaboration between the Hinduja Group, which has owned the building for over eight years, and Raffles Hotels. Scheduled to open on September 26, the project aims to restore the building's grandeur while infusing it with new life. Originally designed by British architect William Young and completed in 1906, the Old War Office has a rich history, serving as the site of the original Palace of Whitehall and hosting influential leaders. The meticulous restoration process has resulted in a luxurious hotel with 120 guest rooms and suites, entertainment spaces, and culinary experiences.
A record-breaking land deal has taken place in Ahmedabad, with a plot of approximately 4,000 square yards situated between Iskcon Circle and Prahladnagar selling for a remarkable Rs 3.25 lakh per square yard. An investor acquired the plot and is currently in discussions with a prominent developer for a joint venture project on the land. This transaction is considered the highest in the city to date and is notable as the first major land deal following the jantri revision in mid-April. While such high land prices are impacting project viability, positive sentiments about Ahmedabad's infrastructure development and economic growth persist.
Bafna Motors, a Tata Motors commercial vehicle dealer, has successfully sold the leasehold rights to a prime 4-acre land parcel in Navi Mumbai's Nerul locality for over Rs 145 crore to Greenscape IT Park LLP. The deal was initiated to settle outstanding loans of Rs 129 crore to the United Bank of India and Rs 15 crore to Tata Motors Finance Solutions. Greenscape IT Park LLP stepped in to repay these debts and acquired the land parcel. The transaction attracted a stamp duty of Rs 7.27 crore and was registered on August 28. It reflects a resurgence in land transactions across Indian property markets.
DP World has expanded its presence in India with a new 380,000-square-foot warehouse in Bhiwandi, Maharashtra. The facility, operational since September 1, 2023, can store both chemicals and non-chemicals, increasing DP World's Indian warehousing capacity to over 5 million square feet. The warehouse is divided into sections for hazardous chemicals and non-chemical storage, with advanced safety features, including temperature-controlled zones and fireproof partitions. Sustainability measures, such as a solar system, are also incorporated. This facility is expected to benefit various sectors, including agriculture, pharmaceuticals, electric vehicles, and chemical trading, and strengthen Bhiwandi's position as a warehousing hub.
India's Reliance Retail is in discussions with existing investors, including Singapore's sovereign wealth fund GIC, Abu Dhabi Investment Authority ADIA, and Saudi Arabia's PIF, to secure combined investments totalling around $1.5 billion. These talks are part of Reliance Retail's goal to raise $3.5 billion by the end of September. GIC, ADIA, and PIF are considering investments of at least $500 million each, valuing Reliance Retail at $100 billion. The company sold a 10.09 percent stake in 2020 for $76.8 billion, with GIC, ADIA, and PIF among the investors. Reliance Industries, its parent company, may also participate in the fundraising round.
Christian Dior has leased retail space in Mumbai's Bandra Kurla Complex for 9.5 years, according to a leave and license agreement. The deal, signed between Reliance Industries Limited and Christian Dior Trading India Private Limited, grants Dior 3,317 sq. ft. of space with rent escalation provisions. Christian Dior entered the Indian market in 2006 and has a store in Mumbai. As India becomes a significant destination for international retail, luxury brands like Dior are drawn to the growing spending power of urban consumers and the expanding retail market.
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