Daily Real Estate Newspaper
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 Brihanmumbai Municipal Corporation (BMC) will maintain the current property tax rates for 2024–25 without implementing any revisions. This decision, influenced by past rejections of proposed hikes in 2020-21 and 2022 due to the pandemic, means property owners will not face an increase after nearly a decade. The property tax calculation currently relies on the Stamp Duty Ready Reckoner rates. Despite the lack of a rate hike, BMC collected INR 4,856 crore in 2023-24, surpassing its target of INR 4,500 crore. The BMC's cautious approach aims to balance revenue needs with citizens' financial burdens.
Flexible office space provider Incuspaze is expanding its footprint with a new 57,351 sq. ft. lease at Hiranandani Light Hall Business Park in Mumbai. This addition is part of a broader strategy that includes acquiring 580,000 sq. ft. in Delhi NCR and 115,000 sq. ft. in Whitefield, Bangalore. The company aims to increase its total workspace by 2 million sq. ft. over the next two years, focusing on South India. Incuspaze's expansion aligns with rising office space demand in Mumbai, where leasing activity has doubled year-over-year, highlighting the shift toward flexible work environments.
The SRA is actively implementing the Slum Rehabilitation Scheme, overseeing transit rent payments to slum dwellers. With 25 nodal officers appointed to recover arrears and a new policy requiring advance payments, developers have deposited over 700 crores, aiding in the reduction of complaints. Legal proceedings under the Maharashtra Slum Areas Act have been initiated against defaulters, and an online complaint system has been launched. Additionally, an Authorised Account Officer will review pending rent issues, ensuring effective resolution and improved scheme management.
Deloitte is expanding its footprint in the National Capital Region (NCR) by leasing 175,000 square feet of office space at Prestige Trade Tower near Delhi airport. This marks Prestige Group’s first commercial project in NCR and reflects Deloitte's broader strategy to enhance its operations in key markets. The new space, part of Deloitte's recent acquisition of 1 million square feet in Bengaluru, is expected to cater to the firm’s growing needs. Despite a 16% drop in NCR's leasing activity year-over-year, Aerocity's appeal and new developments continue to attract significant investments.
? A residential flat spanning 3,220 square feet sold in Midcity Shikhar A in Mumbai's Andheri West for INR 7.74 crores
? A residential flat spanning 1,147 square feet sold in L&T Crescent Bay - T2 in Mumbai's Parel for INR 4.4 crores
A double glazed unit refers to a sealed unit consisting of two panes of glass, a metal spacer that runs between the two panes on the periphery, and an inert gas or nitrogen-filled cavity between the two panes of glass. These units are most commonly used for windows. The cavity in the unit should filled with a gas that is completely moisture-free, as otherwise it can condense into droplets and obscure the view. The gap serves to provide both heat and sound insulation.
Aranyakaa Farms has achieved a remarkable 75% increase in farmland value across nine projects over the past three years, driven by its commitment to sustainable development and innovative agricultural practices. With Bangalore facing congestion and water issues, the company offers a serene alternative, enhancing land values amid a 20-30% surge in farmland prices around the city. Notable projects like Vrindavan and Tapovan saw prices soar from INR 60 lakh to INR 1.3 crore per acre. Aranyakaa Farms’ smart farming techniques and community focus have positioned it as a leader in managed farmland, with continued growth expected.
India’s co-living sector is experiencing a shift towards one-bedroom units, driven by increased demand from corporate employees and students seeking more space and privacy post-pandemic. Companies like Housr and Truliv report significant rises in requests for 1 BHK units, with Housr predicting such units to rise from 30% to 50% of their inventory within 8-10 months. The sector, projected to grow to USD 40 billion in five years, sees cities like Bengaluru and Hyderabad leading the demand for fully furnished, managed living spaces. This trend highlights changing lifestyle preferences and the importance of privacy in modern co-living.
Bengaluru-based Prestige Estates Projects reported a 3.40 percent decline in net consolidated profit for the quarter ending 30 June 2024, with a net profit of INR 307 crore compared to INR 317.80 crore in the previous year. Net consolidated total income rose by 2.96 percent to INR 2,024.50 crore. As of 30 June 2024, the company’s net worth was INR 11,521.70 crore, with debt at INR 11,057.30 crore and a debt-equity ratio of 0.79. Revenue from operations grew to INR 1,862.1 crore. The Board recommended a final dividend of INR 1.80 per share.
Nearly 3,000 homebuyers in Ghaziabad anticipate progress on the Wave City project as the GDA meets this month to discuss its approval. Delays have plagued the 4,000-acre development, with a decade-long wait due to unpaid land conversion fees of INR 401 crore. If approved, the developer may need another six months to prepare the land, benefiting 5,000 families already allotted plots. A committee led by the chief secretary has pushed for prioritizing homebuyers' interests, aiming to resolve long-standing issues and enable property registrations.
The Supreme Court of India has directed the CEOs of Noida and Greater Noida Authorities to appear before it due to their failure to expedite housing projects by the Amrapali Group. Attorney General R. Venkataramani, serving as a receiver for Amrapali, criticised the authorities for obstructing progress and delaying approvals for building plans based on revised Floor Area Ratio (FAR) figures. The court’s intervention follows allegations of fraud against Amrapali and ongoing efforts by NBCC to complete 16 projects valued at INR 8,017 crore. The court aims to ensure timely completion and delivery of homes to thousands of awaiting buyers.
The Yamuna Expressway Industrial Development Authority (YEIDA) has filed an appeal with the Supreme Court to protect its right to contest the NCLAT’s order requiring Jaypee Infratech Ltd (JIL) to pay INR 1,335 crore to farmers over four years. YEIDA's move is urgent, given the 45-day window for appeal and the potential objections from the Uttar Pradesh government. The NCLAT’s ruling, reducing YEIDA’s original claim from INR 1,689 crore, follows a structured payment plan from Suraksha Group. The resolution is critical for over 20,000 buyers awaiting flats and highlights the complex legal and financial landscape impacting both farmers and homebuyers.
The Securities and Exchange Board of India (SEBI) has imposed restrictions on the real estate company Omaxe, its Chairman Rohtas Goel, Managing Director Mohit Goel, and three others, excluding them from accessing the securities market for two years. This action followed a complaint alleging Omaxe's involvement in fraudulent transactions, fund diversion, misrepresentation of financial statements, and inflation of turnover. SEBI conducted a forensic audit covering the period from 2018-19 to 2020-21 and found that Omaxe had misrepresented its financial statements to manipulate its share price and maintain the value of the promoters' collateral against a loan. The regulator has also imposed a fine of INR 47 lakh on 16 entities, including Omaxe and its key personnel.
On 3 June, the National Company Law Tribunal (NCLT) admitted Jaypee Associates Limited (JAL) for insolvency proceedings. This decision came after a petition was filed by a consortium of lenders led by ICICI Bank. The lenders approached the NCLT due to JAL's inability to meet its financial obligations. The insolvency process aims to resolve JAL’s debt issues and identify a suitable resolution for the creditors. The company plans to refinance borrowings and sell its assets, including real estate and cement plants, in order to reduce the debt burden. Legal provisions may allow JAL to withdraw from insolvency proceedings, pending creditor approval.
The Greater Noida Industrial Development Authority (GNIDA) has announced a six-month penalty waiver for around 40,000 homebuyers unable to register their flats due to developers' unpaid dues. Effective from July 22, this relief applies across 60 projects, allowing buyers to complete registrations without fines. Historically, GNIDA's penalties could reach INR 50-100 daily, creating financial strain. This initiative, influenced by homebuyers' associations, aims to rectify issues from unregistered flats and stalled projects. It is part of broader efforts to support homebuyers and stabilise the real estate market in Greater Noida.
The real estate industry has welcomed the Finance Minister's amendment to the Finance Bill 2024, which provides taxpayers the option to choose between a 12.5% LTCG rate without indexation or a 20% rate with indexation for properties acquired before July 23, 2024. This flexibility addresses the sector's earlier concerns about the potential impact of the proposed elimination of indexation benefits. Industry leaders have praised the government's responsiveness, noting that the amendment will help sustain investor confidence, encourage investment, and support the overall growth and stability of the real estate market. The move reflects the government's understanding of the sector's complexities and its importance to the broader economy.
Aptus Value Housing Finance Limited reported a 21% increase in consolidated profit after tax (PAT) for Q1 FY25, reaching INR 171.74 crore, up from INR 142.25 crore last year. Total income surged to INR 404.62 crore, compared to INR 315.37 crore previously. This growth reflects strong demand for housing finance, driven by rising middle-class incomes and government housing initiatives. The company's Assets Under Management (AUM) grew by 27% year-on-year, supported by the addition of 36 new branches. Aptus aims for a 30% AUM increase in the coming quarters and maintains a robust liquidity position of INR 907 crore.
The Indian Income Tax Department has recently expanded its focus to include overseas property investments by Indian residents, moving beyond previous scrutiny of foreign bank accounts and trusts in tax havens. This shift is part of the automatic exchange of information under the Common Reporting Standard (CRS) developed by the OECD, which facilitates data sharing among over 100 countries but traditionally excludes property transactions. The department has recently issued notices to residents with real estate investments in Switzerland and Portugal. The goal is to prevent the misuse of citizenship and residency schemes for asset secrecy and ensure compliance with financial reporting standards.
CapitaLand India Trust Management Pte. Ltd., Trustee-Manager of CLINT, reported an 8% year-on-year rise in distribution per unit to 3.64 Singapore cent and an 18% increase for H1 2024 compared to the second half of FY 2023. Total property income and net property income grew by 23% and 21% year-on-year to SGD 136.1 million and SGD 103.5 million, respectively. In Indian rupee terms, total property income increased by 24% to INR 840 crore, while net property income rose by 22% to INR 640 crore. CLINT achieved a 96% committed portfolio occupancy and increased its assets under management to SGD 3.2 billion.
LIC Housing Finance reported a 2% decline in profit for Q1 ending June 30, with profits at INR 1,300 crore compared to INR 1,324 crore last year. Despite this, total income rose to INR 6,784 crore from INR 6,747 crore, driven by increased interest income. Expenses slightly increased to INR 5,155 crore. Notably, gross NPAs improved to 3.29% from 4.98%, and net NPAs decreased to 1.68% from 2.99%, showing effective risk management. The company focuses on digital transformation and customer-centric services, aiming for sustainable growth amidst economic challenges.
In the first half of 2024, India's warehousing sector absorbed 16.6 million square feet, an 8% increase from H1 2023 but down 26% from H2 2023, with NCR seeing a sharp 74% decline. Mumbai and Pune led with 63% of total absorption, while southern cities, especially Chennai, saw significant gains. Investment surged to USD 1.6 billion, 42% of total institutional real estate investment in India, driven by foreign interest and economic recovery. Notable deals include Reliance Retail Ventures’ USD 1.5 billion investment and new projects like TVS Industrial's USD 15.6 million logistics park in Goa.
The Delhi High Court intervenes in a dispute between PVR INOX and Ansal Plaza Mall, Greater Noida, following the sealing of PVR INOX's multiplex due to unpaid dues by the mall's lessor. PVR INOX claims significant losses from the closure on July 23, 2022, and seeks INR 4.5 crore, covering its security deposit and lost revenue. Justice C. Hari Shankar appointed an arbitrator to resolve the issue, underscoring the court’s role in commercial dispute resolution and the broader implications for lease agreements in India’s retail and entertainment sectors.
Dharavi, Asia's largest slum, is set to undergo a transformative redevelopment project worth USD 3 billion, led by the Adani Group. The newly formed association of Dharavi residents, the Citizen and Society Development Welfare body, has lent its support to the ongoing state government-led survey of informal tenements, a crucial step for the project. The survey aims to map the densely populated 600-acre area and determine the eligibility criteria for rehabilitation under the proposed redevelopment plan. The Dharavi Redevelopment Project (DRP), in collaboration with Dharavi Redevelopment Project Private Ltd (DRPPL), a joint venture between the Government of Maharashtra and the Adani Group, is spearheading the transformation. The plan ensures that all qualifying tenement holders are offered homes of up to 350 square feet, addressing the complex land ownership and tenure patterns that have hindered previous redevelopment efforts.
The data highlights the residential construction and renovation trends across various suburbs and cities in Australia. The analysis shows that the suburbs with the highest number of new dwellings are predominantly located in Victoria, with Clyde North - South in Melbourne leading the way. The percentage change in new dwellings varies significantly, with Mickleham-Yuroke in Melbourne experiencing the highest increase, while Fraser Rise - Plumpton and Box Hill - Nelson saw decreases. The value of alterations and conversions to residential buildings also varies widely, with Surfers Paradise - North in the City of Gold Coast having the highest value. Overall, the data provides insights into the evolving residential development patterns in different regions of Australia.
Portugal is increasingly popular among retirees, not just for relaxation, but for active, fulfilling later years. Ranked as the best retirement destination in Europe by International Living, Portugal offers a peaceful, safe environment with a favourable climate. New developments like Life Plan Resorts – Lisbon cater to those seeking an active lifestyle, providing extensive amenities, healthcare, and cultural opportunities. The country’s D7 visa facilitates easy relocation, attracting retirees who wish to balance leisure and work. The upcoming Moving to Portugal Show in London will offer insights into relocating and investing in Portugal, highlighting its appeal for modern retirees.
The Wellbeing Start-up programme, launched by the Hong Kong Housing Authority, offers young entrepreneurs rent-free shop spaces in authority-owned shopping centres from October to April. The initiative includes shop setup and marketing support. In return, the Housing Authority will take a 20% share of net profits from successful businesses, reinvesting the funds into the programme. The application process runs from 1st to 31st August, with evaluations based on innovation, feasibility, and social benefits. Additionally, Hong Kong's e-commerce festival aims to boost online shopping and support local businesses. These initiatives foster economic growth and support new and existing enterprises.
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