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Real estate developer Ashar Group has set a new benchmark in Mumbai's luxury property market by selling a 9,527 square foot triplex apartment in The Legend by Ashar to Apco Infratech for INR 172 crore. Located in Pali Hill, Bandra, the triplex spans the top three floors of an 11-storey building, formerly the residence of actor Dilip Kumar. The sale price translates to a record INR 1,81,000 per square foot. The buyers paid INR 9.30 crore in stamp duty for the transaction, registered on July 23. The Legend by Ashar is expected to be completed by the end of 2027, with all necessary approvals from MahaRERA.
The Chennai Metropolitan Development Authority (CMDA) has introduced deemed No Objection Certificates (NOCs) for residential buildings taller than five floors or 18 metres, aiming to streamline approvals and accelerate construction. Since launching its online system in May 2022, CMDA’s monthly approvals have doubled, but delays of up to 45 days were common. The new process reduces approval time to 30 days, with automatic NOC issuance if departments fail to respond within 10 days. This change is expected to speed up project timelines, benefiting developers and addressing Chennai's growing housing demand.
The Maharashtra government has reintroduced benefits for converting leasehold plots to freehold at a reduced rate, reinstating concessions that were briefly retracted in March. Under the new rules effective from June 28, housing societies can convert their plots by paying just 5% of the Ready Reckoner (RR) rate if they choose self-redevelopment, with a requirement to allocate 25% of new area to affordable housing under PMAY. Alternatively, a 10% RR rate fee is available for builder-driven redevelopments. This initiative impacts approximately 1,600 leasehold plots in Mumbai and 1,800 statewide, aiming to enhance property ownership and support affordable housing.
Bollywood singer Sonu Nigam sold a 2,131-square-foot commercial property in Andheri West for INR 7 crore on June 28, 2024. The deal, priced at INR 32,848 per square foot, was made to two buyers from Delhi and includes two car parking slots. This sale follows his father's INR 12 crore Versova purchase and Nigam's own investment of INR 11.37 crore in Andheri last year. The trend of celebrity investments in Mumbai's real estate market is growing, as seen with high-profile transactions like cricketer Yashasvi Jaiswal's INR 5.38 crore purchase and other notable deals.
The Bandra-Versova Sea Link in Mumbai faces significant challenges, leading to a cost increase to INR 18,120 crore from the initial INR 11,332 crore. The Maharashtra government has extended the project deadline by 508 days due to design changes demanded by local fishermen and other complexities. The 17.17-kilometer sea link, essential for easing traffic congestion, now requires the Maharashtra State Road Development Corporation to secure an additional INR 6,788 crore to cover the overruns. Experts highlight the need for better planning and community engagement in future projects to avoid such escalations.
? A residential flat spanning 723 square feet sold in Tata Serein Phase 1 - Tower 1,2&4 in Thane's Pokhran Road for INR 2 crores
? A residential flat spanning 856 square feet sold in Rustomjee Athena in Thane's Majiwade for INR 1.76 crores
False ceilings are secondary ceilings that are hung below the main ceiling with the help of suspension cords or struts. These ceilings are created from a wide range of materials such as POP (plaster of Paris), gypsum board, asbestos sheets, particle board, aluminium panel, wood etc. They are also known as dropped ceiling or suspended ceiling. False ceilings can be created to regulate temperature, install lights, conceal electrical cables and pipes or simply for aesthetic purposes.
Godrej Properties has acquired a 46-acre land parcel in Indore, aiming to develop plotted residential units with an estimated saleable area of 1.16 million square feet. This acquisition supports their strategy to invest in fast-growing urban areas. The Indore project aligns with the city’s infrastructure developments and rising demand driven by the IT sector. Recently, Godrej Properties raised INR 1,275.40 crore through non-convertible debentures to support such expansions. This move follows their recent acquisitions in Hyderabad and Bengaluru, highlighting their focus on emerging markets with strong growth potential.
Arvind SmartSpaces Limited reported strong financial results for Q1 FY25, with bookings rising 49% year-on-year to INR 201 crore and collections up 21% to INR 248 crore. Revenue from operations increased 11% to INR 75 crore. However, adjusted EBITDA and PAT declined to INR 8 crore and INR 5 crore, respectively. Net debt improved, decreasing to INR (58) crore. The company enhanced its project portfolio, including the high-rise development of Forest Trails Sarjapur and additional acreage at Uplands 2.0 and 3.0, adding INR 410 crore to the topline. CEO Kamal Singal expressed optimism about the healthy residential market and future growth.
Anamudi Real Estates LLP, the family office of Godrej Industries Group, has divested a 4.4% stake in Sobha Ltd, selling 47.37 lakh shares at an average price of INR 1,810.44 each, totaling INR 857.70 crore. This reduces Anamudi's stake in Sobha to 5.57% from 9.99%, reflecting a strategic monetization of their investment which has yielded a tenfold return over four years. Meanwhile, mutual funds including Mirae Asset, Invesco, and Aditya Birla Sun Life purchased 23.09 lakh shares for INR 418.06 crore, demonstrating continued confidence in Sobha's growth plans. Sobha Ltd aims to quadruple its annual sales bookings to INR 30,000 crore within 4.5 years, bolstered by a recent INR 2,000 crore rights issue. Despite a 3.77% drop in Sobha's share price to INR 1,792.35, market analysts remain focused on the company’s expansion strategy and its potential impact on the Indian real estate market.
Anant Raj, a key real estate sector player, reported a net profit of INR 42.28 crore for the quarter ending June 30, 2024, marking a 63.5% increase from INR 25.86 crore the previous year. Total income rose by 50.9% to INR 284.29 crore, reflecting robust demand and strategic project focus. Expenses increased to INR 227.43 crore, consistent with expansion efforts. This performance suggests a potential recovery in the real estate market, with Anant Raj's emphasis on sustainability and innovation likely enhancing its market appeal.
Oberoi Realty has secured a development agreement for a 2,576 square metre land parcel on Carter Road, Bandra (West), Mumbai. This project will generate around 40,000 square feet of free sale area, targeting the high demand for premium real estate. The company reported a 54% revenue increase to INR 1,441.95 crore and a profit after tax of INR 584.40 crore in Q1 FY25. This initiative underscores Oberoi Realty's strategic focus on key locations and sustainable urban development, contributing to Mumbai’s vibrant real estate market.
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The Government of India is advancing in its mission to provide ownership rights to residents of Delhi's unauthorised colonies under the PM-UDAY scheme. As of July 16, 2024, 23,811 residents have secured ownership rights, according to a report presented in Parliament by Minister of State for Housing and Urban Affairs, Tokhan Sahu. Despite receiving 1,22,729 applications, the approval rate stands at 19%, indicating a need for a more efficient process. The initiative, launched in 2019, aims to improve living conditions and access to services for residents of unauthorised colonies. The DDA has also allocated INR 2,173.81 crore for urban development projects, with 22 currently in progress. The scheme promises significant improvements in housing and infrastructure, potentially increasing property values and quality of life for residents.
Piramal Capital Housing Finance's managing director and his wife have settled insider trading charges with the Securities and Exchange Board of India (SEBI) for approximately INR 43.5 crore. The settlement resolves allegations of illegal gains from trading Piramal Enterprises shares, with nearly INR 16 crore in unlawful profits identified. The settlement includes INR 24.8 crore in disgorged profits and interest, and fines of INR 17.4 crore on Greatdeal Finconsult Advisors, INR 91 lakh on MD Jijina, and INR 45.5 lakh on his wife Benaifer Jijina. This case highlights SEBI's commitment to enforcing market integrity and highlights the importance of compliance in corporate governance.
Amid concerns over decreasing groundwater levels in Raipur, the Raipur Municipal Corporation (RMC) has mandated real estate developers to construct rainwater harvesting systems, targeting 50 pits per project. The goal is to build 50,000 pits citywide, with 20,000 during this monsoon season, each capable of storing 200,000 litres of rainwater. In a meeting with builders and CREDAI members, RMC Commissioner Abinash Mishra emphasised the urgency of combating water scarcity with innovative solutions. Prioritised areas include Saddu, Mowa, and Daldal Seoni. Developers like Raheja Homes and WallFort City have already begun compliance, highlighting the effectiveness of rainwater harvesting in projects like Indira Smriti Van. The initiative seeks broader community participation to ensure sustainable urban water management.
The Haryana Shahari Awas Pradhikaran (HSVP) has sealed seven shops at the DLF-1 rapid rail station due to non-payment of rent. These shops, totaling 1,956 square feet, are owned by Sunil Miglani. The sealing, carried out following a Punjab and Haryana High Court ruling, highlights HSVP's efforts to enforce lease agreements. Vikas Dhanda, HSVP estate officer I, indicated that this is just the start, with plans to seal an additional 11 shops at four other stations due to similar issues. This action underscores HSVP's commitment to recovering outstanding dues and maintaining financial stability, amidst broader challenges in public lease agreements. The move also raises questions about the impact of economic difficulties on tenant compliance and lease management.
Embassy Office Parks REIT reported 3% increase in net-operating-income to INR 757.5 crore for Q1 FY25. The board declared a INR 531 crore distribution, or INR 5.60 per-unit. Leasing activity rose 70% YoY, totaling 1.9 million sq. ft. Key areas like Bengaluru, Noida, Chennai show strong demand, driven by Global Capability Centres. The company reaffirmed its NOI guidance of INR 3,210-3,350 crore for FY25. The portfolio includes 51 million sq. ft. across major cities, with strategic amenities like hotels and a solar park. Debt raised totaled INR 1,450 crore at an 8.06% rate.
The WSB Real Estate Partners has raised over INR 700 crore through its fourth SEBI-registered Category II Alternative Investment Fund (AIF) to invest in mid-income and affordable housing projects in tier I and select tier II cities. The fund aims for a INR 1,000 crore corpus, expandable by another INR 1,000 crore. It has a six-year term, extendable by two years. Key investors include family offices, corporates, offshore investors, and HNIs. WSB has initiated two investments and has a strong pipeline. The fund focuses on structured debt, secured by collateral, with an aim to deliver favorable risk-adjusted returns.
Last week, SEBI banned real estate company Omaxe, along with its Chairman Rohtas Goel, Managing Director Mohit Goel, and three others from the securities market for two years due to discrepancies in financial statements. The ban includes prohibitions on serving as directors or holding key managerial roles in any publicly traded company. Additionally, a fine of INR 47 lakh was imposed on 16 entities, with penalties ranging from INR 1 lakh to INR 7 lakh, payable within 45 days. SEBI's 126-page order revealed that the company engaged in fraudulent activities, misrepresenting financials to stabilise its stock price while misleading investors.
Singapore's Vantage Point Asset Management has acquired the financially troubled Alchemist Infra Realty for approximately INR 470 crore through a bankruptcy process. The National Company Law Tribunal (NCLT) approved the acquisition, with lenders unanimously supporting the revival plan. Initially triggered by a default on INR 401 crore in dues, the resolution plan aims to address INR 1,293 crore in claims. Experts suggest that takeovers are crucial for reviving stalled real estate projects. Despite legacy challenges, rising property values and investor interest indicate potential recovery for the Indian real estate sector.
The Income Tax (I-T) Department has clarified new guidelines for calculating long-term capital gains (LTCG) taxes on real estate acquired before April 1, 2001. Property owners can now choose between using the fair market value (FMV) as of that date or the original purchase price to determine their acquisition cost. For properties acquired before April 1, 2001, the FMV cannot exceed the stamp duty value. The indexed acquisition cost, calculated using the 2024-2025 Cost Inflation Index (CII) of INR 363, impacts taxable gains and LTCG tax, which is 20% on gains exceeding this indexed cost. This flexibility allows property owners to select the lower taxable amount, potentially reducing their LTCG tax liability. As property transactions rise, investors can use these guidelines to optimise their tax outcomes.
India's data centre industry is rapidly growing, especially in Tier-2 and Tier-3 cities like Kochi, Jaipur, and Ahmedabad. Major players such as Reliance Jio, Bharti Airtel, and Adani Enterprises are leading this expansion, capitalising on strategic benefits such as improved infrastructure, lower costs, and enhanced network resilience. Data centre capacity surged from 350 MW in 2019 to 864 MW in 2023, reflecting a 25% CAGR. The government's Digital India initiative further drives this trend by boosting digital infrastructure and connectivity, contributing to local economic growth and decongesting metropolitan areas while supporting the rise in digital service demands.
The U.S. housing market is experiencing a slowdown, with existing home sales falling by 5.4% in June to an annual rate of 3.89 million, the lowest since December. This marks the fourth consecutive month of declining sales and a 5.4% drop from the previous year. Despite fewer sales, home prices hit a record high of USD 426,900, up 4.1% year-over-year. Inventory increased to 1.32 million unsold homes, a 23% rise from last year, translating to a 4.1-month supply. High mortgage rates and rising prices continue to impact the market, with first-time buyers and cash transactions playing significant roles.
The Monetary Authority of Singapore (MAS) has proposed new rules for real estate investment trusts (REITs) to simplify debt management and reduce default risks. Under the new guidelines, Singapore REITs would need to maintain a minimum interest coverage ratio (ICR) of 1.5 times, meaning they must earn SGD 1.50 for every dollar of interest owed. Additionally, the proposal sets a 50% aggregate leverage limit, replacing the current 2.5 times ICR requirement for exceeding a 45% leverage limit. The MAS also suggests that REITs conduct sensitivity analyses to disclose how changes in earnings and interest rates could impact their ICR. These changes aim to stabilise the market and enhance transparency as the MAS seeks public and industry feedback.
Shares of Blackstone Mortgage Trust plummeted by 10% on Wednesday following a 24% reduction in its dividend, reflecting ongoing challenges in the commercial real estate (CRE) market. The cut is attributed to persistent issues in the office space sector, where many buildings remain vacant due to remote work trends. The firm has set aside an additional USD 140 million for expected credit losses, with 55% of its U.S. office holdings now "watch-listed or impaired." Analysts warn this could signal broader issues across the industry. With nearly USD 1 trillion in commercial mortgages maturing in 2024, the sector faces mounting pressures. Despite a USD 61.06 million loss in Q2, Blackstone’s CEO remains optimistic about long-term prospects, citing strong liquidity and an investment pipeline.
A Hong Kong court has postponed the liquidation hearing for Country Garden, China’s major property developer, until January 20, 2025. This delay provides Country Garden more time to finalise its restructuring plan for substantial offshore debt, central to its financial troubles. The petition, filed by Ever Credit Limited due to a USD 205 million loan default, follows Country Garden's default on USD 11 billion in offshore bonds. The company is working on restructuring its debt, with plans to present term sheets to creditors in September. The outcome will significantly impact the property sector and broader market conditions in China.
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