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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Impact of Taxation: Should the Tail wag the Dog?
The Union Budget 2024 introduced significant changes to the Capital Gains tax structure, sparking mixed reactions. To address concerns, the Finance Ministry amended the Finance Bill 2024, allowing resident individuals and HUFs to "grandfather" long-term capital gains on land and buildings for property purchases made before July 23, 2024. In any investment proposal there are three critical factors that come into play: risk, inflation and taxation. Comparison between investments is usually done on a pre-tax risk adjusted return basis rather than on nominal rates of return. The aspect of taxation of an investment, while critical, should be viewed and applied with caution. In any medium to long term investment, the stability of the current tax rates cannot be taken for granted therefore taking an investment decision driven solely by the current tax structures may become misleading and diversionary.
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MahaRERA to launch MahaCRITI on August 31 with enhanced features, temporary service disruptions announced
MahaRERA is launching its new platform, MahaCRITI, at midnight on August 31. The updated website will enhance user experience with real-time data analytics and personalised dashboards for homebuyers, promoters, and agents. However, from August 13 to August 31, the current system will be offline, causing temporary interruptions: promoters and agents cannot submit new applications online, and homebuyers must file complaints manually. Online hearings for existing complaints will continue as usual. The overhaul, prompted by rising website traffic, aims to improve functionality and transparency in regulatory processes. The new platform will be operational starting August 31.
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MMRDA to build a tunnel and elevated road to connect Thane - Bhayandar
The Mumbai Metropolitan Regional Development Authority is working on two separate projects that will link Thane and Bhayander. The two separate projects include a 5.5 km long tunnel of INR 41 crore followed by an 9.5 km long flyover road worth INR 28 crore. An MMRDA official said the flyover road will feature eight lanes due to the presence of mangroves adjacent to the bay shore. The main focus of the project, besides connecting suburbs, would be controlling the traffic situation on NH48. This project is different from the Thane-Borivali project that will pass beneath Sanjay Gandhi National Park.
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Bengaluru Metro Green Line extension to Madavara is set for October launch
The extended Green Line of Namma Metro, from Nagasandra to Madavara, will begin commercial operations by October. This 3-km extension, part of Phase II, includes new stations at Manjunathnagar, Chikkabidarakallu, and Madavara. The Bangalore Metro Rail Corporation Limited (BMRCL) will start trial runs soon and expects an additional 25,000 to 30,000 riders. The construction at Madavara is nearing completion, with the hold of power supply almost finished and trial tests planned within the next few weeks. The extension will improve access to the Bangalore International Exhibition Centre and ease travel for passengers from nearby areas.
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GIFT City partners with NFSU to boost financial and cyber security expertise
Gujarat International Finance Tec-City (GIFT City) has signed a Memorandum of Understanding (MoU) with the National Forensic Sciences University (NFSU) to advance skills in financial and cyber security. The partnership focuses on international arbitration, fraud investigation, data security, and anti-money laundering, aiming to enhance education, training, and research in these critical areas. A Centre of Excellence will be established to provide top-tier training and expertise to businesses within GIFT City, promoting innovation and excellence in India’s premier smart city and International Financial Services Centre (IFSC).
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? A residential flat spanning 988 square feet sold in Sai Yashaskaram in Raigad's Kharghar for INR 1.5 crores
? A residential flat spanning 1,053 square feet sold in Paradise Sai Sitara in Raigad's Panvel for INR 1.25 crores
A load-bearing wall in a building is one that fulfils the function of providing support for the building and other elements such as beams, vaults, lintels, pillars, columns, etc. The materials most often used to construct load-bearing walls in large buildings are concrete, stone, block, or brick. These walls are usually more than 30 centimetres wide. When carrying out renovations, it is important not to tamper with the structure of the load-bearing wall as doing so could damage the stability of the building.
Sheth Realty’s new campaign for their luxury project Codename Younique highlights the benefit of reduced commute times to the Bandra Kurla Complex (BKC), Mumbai’s key business hub. Featuring slogans like “Hop. Skip. Jump. BKC.”, the campaign underscores the project's strategic location near the Sion-BKC connector. The luxury gated community boasts over 45 amenities and targets professionals earning INR 45 lakh per annum or more. The campaign utilises digital platforms including Facebook, LinkedIn, and Instagram, aiming to attract buyers seeking both convenience and high-end living. Chintan Sheth emphasises the value of luxury and time-saving features in their marketing strategy.
Arkade Group's new campaign, "Family First," showcases the real estate developer's dedication to family-oriented values since 1986. With over 5,000 satisfied customers, the campaign highlights core values like care and trust through radio, OOH advertising, and digital media. A standout feature is the CGI technology used to create engaging content, including visuals of the number '1' in prominent city locations, symbolising the company’s leadership in family-centric developments. Arkade Group’s innovative marketing and focus on enhancing family life reflect its commitment to creating meaningful residential spaces in Mumbai.
Raymond Realty's residential project, 'The Address by GS,' led home sales in Bandra East during Q1 FY25, achieving INR 291 crore in sales and 96 units sold, more than double the next highest project. CEO Harmohan Sahni credits this success to the company’s emphasis on timely delivery and high quality, underscored by their early completion of a previous project. With new Joint Development Agreements (JDAs) in premium Mumbai areas and a revenue potential of over INR 7,000 crore, Raymond Realty’s expansion and focus on luxury have solidified its position among India's top real estate players.
Saya Group has launched a new brand identity, marking its transition to the ultra-luxury real estate market. The rebranding includes a modern design focused on the letter 'A' and a colour palette of blue, orange, yellow, and red, symbolising trust, success, optimism, and luxury. Chairman & Managing Director Vikas Bhasin emphasised that this change reflects Saya Group’s dedication to innovation, sustainability, and excellence. The group aims to secure prime locations and maintain high standards, aligning with the evolving demands of luxury homebuyers who seek exceptional living experiences.
Puravankara's net consolidated total income reached INR 675.55 crore in Q1 FY25, marking a significant growth of 101.17 percent compared to INR 335.81 crore in the same quarter last year. This impressive increase highlights the company's strong performance and successful business strategies during this period. The substantial rise in income indicates robust demand and effective management, positioning Puravankara favourably in the market. Quarterly sales remained stable at INR 1,128 crore, while customer collections rose by 39 percent to INR 965 crore. This financial milestone points to the company's ability to achieve substantial growth.
The MMRDA plans to evict illegal occupants from 1,336 tenements in Kurla, initially meant for slum dwellers displaced by airport expansion. The operation, set from October 7 to 10, follows the discovery of unauthorised residents by MMRDA in 2021. Originally built by HDIL for Bharat Nagar slum rehabilitation, these units now house individuals who paid up to INR 5 lakh to agents. Local activists and advocates highlight issues with lease renewals and unpaid rents. The eviction underscores Mumbai's housing challenges and the need for better oversight and transparent rehabilitation processes.
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The Supreme Court has requested the Chief Justice of the Bombay High Court to form a bench to initiate its own review of the Maharashtra Slum Areas Act of 1971. This review aims to identify issues in the law's implementation. With over 1,600 cases pending, the law's implementation faces significant problems. The Supreme Court directed the Chief Justice to form a bench for this crucial review, emphasising the judiciary's critical role in ensuring access to justice. The decision came during the dismissal of an appeal from Yash Developers, who faced the cancellation of a long-delayed slum redevelopment project.
The Noida Authority aims to sell over half a million square metres of land in FY 2024-25 to raise more than INR 3,700 crore. Land will be allotted across residential, industrial, institutional, group housing, and commercial segments through e-auctions. The Authority expects to generate INR 1,080 crore from group housing plots, INR 1,010 crore from commercial land, INR 705 crore from industrial plots, INR 650 crore from residential plots, and INR 315 crore from institutional plots. Additionally, INR 35 crore is expected from allotting empty residential spaces. Schemes for these categories will be launched soon.
The Karnataka Real Estate Regulatory Authority (KRERA) has mandated GVG Infrastructure Pvt Ltd to refund INR 34.7 lakh to homebuyer Dhimosh Mangadan for failing to complete the Mulberry Mist project in Varthur, Bengaluru, on time. Despite an August 2019 deadline, the project remains unfinished. KRERA's order, issued on July 10, also demands an additional INR 11.5 lakh in interest. This case highlights Bengaluru's real estate issues, with over 26,030 delayed housing units valued at INR 28,072 crore. Across India, approximately 5 lakh homes are stalled, emphasising the need for stricter enforcement of developer accountability.
The Reserve Bank of India (RBI) has kept the policy repo rate steady at 6.5% for the ninth consecutive time, with a 4-2 vote by the Monetary Policy Committee. This move, aimed at maintaining economic stability amid global uncertainties, has been well-received by real estate industry leaders. Experts believe the unchanged rate will boost consumer confidence, sustain demand, and support growth in the housing market, particularly in the affordable and mid-segment categories. The decision is expected to create a conducive environment for homebuyers and investors, further driving momentum in the sector.
India's real estate sector experienced a significant investment boost in Q2 2024, attracting USD 2.77 billion, pushing the total for H1 2024 to a record USD 3.9 billion, according to Cushman & Wakefield. This represents a 50% increase from Q1 and a 39% year-on-year rise. Delhi-NCR led with USD 532 million in Q2, a 74% increase from last year, while Bengaluru and Hyderabad secured USD 509 million and USD 320 million, respectively. The Logistics & Industrial sector captured 56% of Q2 investments. Foreign investors contributed 76.3% of the total, reflecting strong confidence in India's market.
India’s retail real estate market saw robust growth in H1 2024, with 3.1 million square feet leased across major cities, a 7% increase from last year, as reported by CBRE South Asia. Bengaluru, Chennai, and Delhi-NCR led, accounting for nearly 59% of the total leasing activity. The fashion and apparel sector drove 39% of leasing, while international brands like Charles Tyrwhitt and Maison Margiela expanded their footprint. The addition of 0.5 million square feet in tier-I cities and an anticipated 3-4 million square feet of new space in H2 2024 reflects strong market optimism and growing demand for larger retail spaces.
EQT is set to become the leading candidate for acquiring Aavas Financiers Ltd, owned by Kedaara Capital and Partners Group. Competing with CVC Capital and Bain Capital, EQT's potential acquisition could reach nearly INR 6,976 crore. This transaction would involve a 51% stake, following an open offer for an additional 26% from public shareholders. Aavas, with a market valuation of INR 13,812 crore, has seen significant growth and now manages assets worth INR 17,313 crore. The acquisition highlights the ongoing interest in the affordable housing finance sector, attracting major private equity investments.
Adani Enterprises is bidding up to USD 1 billion for Jaiprakash Associates' real estate assets in NCR, marking its significant entry into one of India’s largest property markets. This acquisition could expand Adani's real estate operations fourfold, including high-end properties like the 452-acre Jaypee Greens in Greater Noida and the 1,063-acre Wish Town in Noida. The bid, part of a broader strategy to diversify and strengthen Adani's position in real estate, also includes Jaypee's cement assets, totaling around INR 150,000 million. This move aligns with current trends of consolidation in the recovering real estate sector.
Punjab National Bank (PNB) has increased its marginal cost of funds-based lending rate (MCLR) by 0.05%, effective August 1, 2024. The one-year tenor MCLR now stands at 8.90%, up from 8.85%, while the three-year MCLR rises to 9.20%. Shorter loan tenors are now priced between 8.30% and 8.55%. This adjustment, following a similar move by the Bank of India, reflects broader trends of rising interest rates due to economic factors and inflationary pressures. The hike is expected to increase borrowing costs for personal, auto, and home loans, impacting both consumers and businesses.
Toyota Kirloskar Motor (TKM) signed a memorandum of understanding (MoU) with Maharashtra's industries department to establish a INR 25,000 crore automobile plant in Chhatrapati Sambhajinagar. Deputy Chief Minister Devendra Fadnavis emphasised that this investment reaffirms Maharashtra as a preferred destination for investors. The plant will create 24,000 jobs, including 8,000 direct positions and 16,000 in ancillary units, boosting the Marathwada region's economy. The facility will produce nearly 4 lakh vehicles annually, starting in three years, and will manufacture both electric and internal combustion engine vehicles.This investment marks TKM's first plant in the Marathwada region.
Atmosphere Living, based in Dubai, has committed INR 550 crore to develop villas and a hotel in Mussoorie and plans further projects in Goa, Lonavala, Himachal Pradesh, and Jaipur, with international expansion goals. CEO Sandeep Ahuja highlighted that INR 150 crore has already been invested in the 11.5-acre Mussoorie project, featuring a 100-key hotel, 70 villas, 90 apartments, and 12 ultra-luxury residences. The company, part of Atmosphere Core, offers an option for investors to lease homes back for rental income. Atmosphere Living aims to redefine the second home market with high-end, well-managed properties across South Asia.
YEIDA is launching a project with 19 housing plots near Noida Airport, in Sectors 17, 18, and 22D. The project aims to meet housing demand driven by Noida International Airport and regional industrial development, creating at least 25,000 flats across affordable to luxury units. Plot prices range from INR 32,375 to INR 35,612 per square metre. CEO Arun Vir Singh expects increased housing demand from new industrial projects, with plans for 30 more group housing plots. CREDAI NCR leaders highlight the project's potential to balance supply-demand disparities and attract diverse buyers due to the new industrial corridor.
In July, UK house prices rose by 2.1% year-on-year, the largest increase since December 2022, with a 0.3% monthly rise bringing the average price to GBP 266,334 (USD 341,706), according to Nationwide Building Society. This uptick comes ahead of the Bank of England's interest rate decision, potentially offering relief to homebuyers. However, prices remain 2.8% below their 2022 peak. Affordability challenges persist, with mortgage payments now consuming 36% of household take-home pay. As wages rise, a gradual improvement in affordability is anticipated, but flat house price growth is expected in the near term amid evolving economic conditions.
Germany's largest real estate group, Vonovia, announced a loss of EUR 529 million (USD 573 million) for the first half of 2024, a significant improvement from a EUR 4.13 billion loss last year. The real estate sector in Germany faces its toughest downturn in decades due to rising interest rates. Vonovia reported a EUR 1.8 billion writedown on its apartment portfolio. Despite current losses, CEO Rolf Buch remains optimistic about the future, indicating that property values may have bottomed out. Investors responded positively to the company’s forecast of improved profitability, leading to a 2.5% rise in Vonovia shares.
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