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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Central Railway (CR) plans to extend the fifth and sixth lines between CSMT and Parel, which may result in terminating Harbour line services at Sandhurst Road to reallocate platforms. CR will demolish Byculla’s express corridor platforms to accommodate new tracks, removing express train stops between CSMT and Dadar. Platforms 1 and 2 at CSMT and Masjid will accommodate Main Line services. Current extensions between Kurla and Parel face land acquisition challenges. Earlier proposals included alternative alignments and additional stations but required unacquired land. These expansions aim to enhance operations and manage increased traffic in Mumbai's rail network.
MHADA’s Mumbai Board issued offer letters to 158 eligible applicants from old cessed buildings through a computerised lottery on December 28, 2023. The State housing and OBC welfare minister Atul Save announced a waiver of the INR 70,500 NOC fee for each recipient. Applicants must comply with the offer letter's conditions or face cancellation. Initially, 444 flats were available; 212 out of 265 applicants were found eligible after re-verification. Document verification for the remaining 53 applicants is still in progress. MHADA plans to hold another lottery soon for the sale of 2,000 flats in prime locations across Mumbai.
The Maharashtra Real Estate Regulatory Authority (MahaRERA) has announced the results of its 5th Real Estate Agents examination, with 4,165 out of 4,769 candidates passing, reflecting an 87% success rate. This exam saw Sharad Mota from Mumbai and Divyesh Maheshwari from Pune achieving perfect scores. Notably, 196 senior citizens participated, including 12 women. With this latest batch, a total of 13,370 candidates have qualified as real estate agents in Maharashtra. MahaRERA continues to stress the importance of mandatory training and certification, impacting the 47,000 registered agents in the state and ensuring enhanced industry standards.
Singapore's Keppel Corporation has acquired the One Paramount 1 tech park in Chennai for approximately INR 2,100 crore. This prime asset, spanning 12.6 acres with 2.4 million square feet of office space across three towers, was previously owned by RMZ Corporation and CPP Investments. Finalised at an 8.5% cap rate, the deal reflects strong investor interest in India’s commercial real estate sector. The tech park’s prestigious tenants include global firms such as Genpact and VMware. The acquisition highlights India's recovering office market and Keppel's strategic expansion in the region.
In 2023, India's private lending market rose with USD 7.8 billion invested, marking a notable rise from USD 5.3 billion in 2022. This growth, driven by NBFCs and private credit funds, expands financing options but raises concerns. Intense competition drives interest rates down, exemplified by Hubergroup's 12.5% return on INR 1,500 crore loan, down from previous years. New, less-experienced players entering the market heighten risk assessment worries. Despite challenges, increased competition fosters innovation and supports small businesses. Fintech firms, employing AI and data analytics, offer potential solutions, reshaping the lending landscape and promoting financial inclusion amidst regulatory caution for sustainable growth.
? A residential flat spanning 1,078 square feet sold in Geras Island of Joy Project A in Pune's Wagholi for INR 1.35 crores
? A residential flat spanning 998 square feet sold in Krisala 41 Luxovert in Pune's Tathawade for INR 1.06 crores
HVAC stands for the heating, cooling, and ventilation system within a building. The goal of an HVAC system is to make sure that the temperature inside any building is comfortable for those who are in it. This means warming the building up during the cooler months of the year and cooling it down when it gets hot outside. For heat, an HVAC system uses gas, oil, coal, or electricity to provide heat, while the cooler air is provided by a chiller, gas or electric air conditioner, and an electric heat pump.
Pune-based Ceratec Group has rebranded to better reflect its modern vision and evolving market aspirations. The new identity, including a redesigned logo and the tagline "Exceeding Expectations," replaces the 2000 logo, symbolizing a commitment to innovation and high-quality service. Managing Director Anand Agarwal emphasized that the update aligns with their expanded service portfolio and shifting market trends. Founded in 2000 and transitioning from marble to real estate, Ceratec has developed over 65 acres in Pune and is currently focused on projects in Ravet, Hinjewadi, Balewadi, and Baner. The rebranding aims to enhance their role in Pune's dynamic real estate sector.
India's real estate sector saw a rise in investment, reaching USD 2.77 billion in Q2 2024, bringing the total for the first half of the year to a record USD 3.9 billion, as reported by Cushman & Wakefield. This boom is paralleled by Ankit Lodha's LA Empire, which addresses issues in the U.S. rental market with a streamlined approach. Established in 2022, LA Empire manages nearly 30 properties worth over USD 30 million and offers flexible rental options. Lodha's innovations reflect a broader trend towards improved transparency and flexibility in the rental market, mirroring the growth in India's real estate investments.
The JMS Group has acquired 8.65 acres in Sector 95A, New Gurugram, for a large-scale housing project. The development is expected to generate nearly INR 1,000 Crores in revenue, with an investment of approximately INR 400 Crores. Pushpender Singh, Managing Director, emphasised the strategic growth and the aim to redefine urban living in Gurugram. The project will feature modern amenities and eco-friendly designs, catering to various market segments. Construction will begin after approvals, with completion in a few years. The prime location and JMS Group's successful track record are anticipated to attract strong interest from homeowners and investors.
L&T Realty and Valor Estate, jointly will develop a 10 acre land parcel of more than INR 20,000 crore.The land parcel will be located next to the upcoming Bombay High Court complex in Bandra-Kurla complex and is expected to be completed in over 5-6 years. Rehabilitation of 5,500 families living in slums will also be part of the project. The land parcel built will include premium housing, commercial spaces, and a 1000 key five star luxury hotel.
Rajeev Kumar (name changed) in Zamrudpur, South Delhi, added a floor to his 30 square yard Lal Dora property in 2019 without seeking approval. The Municipal Corporation of Delhi (MCD) issued a demolition notice, leading to a legal battle. Lal Dora areas face challenges in property ownership due to outdated records and lack of clear titles, complicating renovations and bank loans. Despite the central government's Svamitva scheme for mapping rural areas, Delhi has not fully implemented it. Experts stress the need for clear land titles and proper documentation to resolve ownership disputes and facilitate development in these regions.
Residents of Nadaprabhu Kempegowda Layout (NPKL) in Bengaluru are challenging the Bangalore Development Authority's (BDA) recent imposition of a INR 31,000 road cutting fee on site allottees. This fee is being charged despite ongoing delays in providing essential infrastructure such as drinking water, recycled water, and an underground drainage system. Site allottees, who have been waiting for over eight years, argue that the BDA has not fulfilled its initial promises. The Nadaprabhu Kempegowda Layout Open Forum has requested the Chief Minister to halt the fee collection, citing financial strain on residents. The Deputy Chief Minister confirmed that development costs should be included in site fees, raising concerns about the fairness of additional charges before infrastructure completion.
The Chandigarh government has revoked the building plans and occupancy certificate for Godrej Properties' commercial project, Godrej Eternia, due to alleged environmental regulation violations. The decision, announced on July 25, 2024, stems from the project's failure to obtain necessary permissions from the Standing Committee of the National Board for Wildlife. Godrej Properties plans to contest this decision, emphasising misunderstandings in the order. This action underscores the critical need for real estate developers to adhere to environmental standards, impacting Godrej Properties' operations and the broader industry.
The Bombay High Court has directed the Kalyan Dombivli Municipal Corporation (KDMC) and Thane Police to demolish the illegal Radhai Complex in Dombivli East. This order follows a mob of 200-300 individuals obstructing officials during a demolition attempt on July 16. The court emphasised the need for law enforcement to counteract such resistance. KDMC and police are required to submit compliance reports by August 12. The incident highlights the broader issue of unauthorised constructions and the challenges faced by authorities in urban areas across India.
PNB Housing Finance reported a 25% increase in net profit to INR 433 crore for Q1 June 2024, up from INR 347 crore the previous year. Total income rose to INR 1,832 crore, with interest income at INR 1,739 crore. Net interest income grew 4% to INR 651 crore, though the net interest margin declined to 3.65% from 3.86%. The gross NPA reduced to 1.3%, and the net NPA fell to 0.92%. Total disbursements increased 19% to INR 4,398 crore, with retail disbursements making up 99%. The company continues to demonstrate strong financial performance and strategic growth.
Private equity (PE) investments in Indian real estate soared to USD 3 billion in the first half of 2024, marking a 15% increase from USD 2.6 billion in H1 2023, according to Knight Frank India. The warehousing sector led with 52% of total investments, reflecting a shift from the traditional office sector dominance. Mumbai and Bengaluru were key beneficiaries, attracting substantial investments, particularly in warehousing and residential properties. Economic recovery, favorable policies, and infrastructure development are driving this growth, though challenges like regulatory hurdles remain.
In June, the Kolkata Metropolitan Area saw a record 25% increase in residential property registrations compared to the previous year. This surge occurred while a stamp duty discount was available. The state government will now end these benefits, including a 2% stamp duty reduction and a 10% circle rate cut, on July 1, 2024. Since these incentives began in July 2021, approximately 140,000 homes were registered. Despite the rebate ending, Knight Frank anticipates continued market growth due to strong demand. The company also reported new trends in the important zones, such as the South and North, within the city.
The Noida Authority plans to allocate land expected to generate INR 3,795 crore in revenue. Despite only meeting 23% of last year's land allotment target, they have set this ambitious goal for the coming year. The largest allocation, 3.3 lakh sqm, is for institutional use, focusing on IT/ITES parks, data centres, and educational facilities. Industrial plots will receive 1 lakh sqm, while residential, commercial, and group housing plots are set at 67,500 sqm, 35,000 sqm, and 13,800 sqm, respectively. The Authority has also raised the allotment rates by 6% across most of the categories.
DLF Limited, India's largest real estate firm, has reported a 23% year-over-year increase in its net profit for the quarter ended June 30, 2024. The company witnessed a strong sales performance, with new sales bookings of INR 6,404 crore, representing a YoY growth of 214%. DLF's consolidated revenue also surged by nearly 14% YoY, reaching INR 1,729.82 crore. The company's rental business continued its steady performance, with the consolidated revenue of DLF Cyber City Developers Limited (DCCDL) reaching INR 1,553 crore, a 10% year-over-year growth.
India's industrial and warehousing sector experienced a 17% surge in leasing activity in the first half of 2024, reaching 13 million square feet (msf), as reported by Colliers India. Chennai and Delhi-NCR led with over 3 msf each, while approximately 7.5 msf of new supply was added in the April-June quarter, marking the highest in two years. The June quarter alone saw a 48% rise in demand, with Delhi-NCR capturing 1.8 msf. Third-party logistics (3PL) providers were the largest occupiers, and large deals above 200,000 sq ft constituted 35% of the demand, highlighting robust sector growth.
The Navi Mumbai Municipal Corporation (NMMC), led by Commissioner Dr. Kailas Shinde, has ramped up its demolition efforts against unauthorised constructions. Recent actions targeted several illegal buildings across sectors, including Sector-04 Airoli, Vashi village, and Karave Gaon, resulting in the demolition of structures and fines totaling INR 30,000. Despite previous notices, the construction continued, prompting NMMC to employ heavy machinery for effective enforcement. Key officials, including Assistant Commissioners and Junior Engineers, were actively involved. The NMMC plans to maintain these rigorous measures to enforce compliance and uphold urban planning standards.
Deutsche Bank forecasts a pivotal change in Germany’s housing market, predicting that demolitions of single-family homes will surpass new constructions. Annual new builds have fallen from 250,000 in the 1970s to below 110,000 recently, with only 15,500 permits issued in early 2024. High interest rates, construction costs, and land scarcity, combined with ecological concerns, drive this trend. Single-family homes, with higher energy consumption and CO2 emissions compared to multi-family units, face growing challenges. As construction slows, demand for existing single-family homes is expected to increase, potentially raising prices and reshaping the market.
The escalating cost of living is straining American households, with 78% of Americans rating the economy as poor or fair, a recent survey reveals. Renters are hit hardest, with 77% describing their financial situation negatively, compared to 53% of homeowners. Rising rental costs lead 20% of renters to consider relocating or downsizing. Inflation is a major concern for 80% of respondents, while 51% report wages lagging behind. Despite a strong job market, only 38.6% are confident in the economy’s future. In response, 57% are delaying major purchases, 50% are cutting dining expenses, and 76% are reviewing insurance policies for savings.
NatWest acquired a 2.4-billion-pound mortgage portfolio from Metro Bank and upgraded its annual performance outlook, despite a 16% drop in first-half profit. This acquisition is part of a consolidation trend in Britain's banking sector. Metro Bank's sale, despite a 4% discount, provides much-needed liquidity. NatWest shares rose 6%, showing market confidence. The bank raised its 2024 return on tangible equity forecast to exceed 14% and expects annual income of approximately 14 billion pounds. CEO Paul Thwaite highlighted growing customer confidence and strong asset quality. The government’s stake in NatWest fell below 20%, advancing the bank towards full private ownership.
Planet Smart City and Palladium USA sold a 324 unit smart multifamily housing complex in Little Elm, Texas, to a US institutional investor. Developed equally by both the companies, the project integrates innovative solutions in the environment, planning, technology, and social inclusion. Features include an innovation hub, co-working spaces, energy saving systems, and smart locks. Built over a span of 28 months, the project saw over 90% occupancy within merely three months. Sold at an IRR above 30%, it highlights the growing smart housing market. Future projects in Texas are being considered due to positive demographic trends and market success.
Harcourt Technologies (HTL) is constructing Ireland's first 3D-printed homes in Dundalk, building three social housing units using a COBOD 3D printer. This innovative method involves extruding concrete layers, significantly speeding up construction and reducing labour needs. The homes, expected to be completed by October, aim to increase efficiency by 25-30%. While current costs are similar to traditional methods, the reduced construction time may lower overall expenses. This project serves as a case study for the potential of 3D printing in construction, offering benefits like faster completion, lower costs, and high-quality, durable structures.
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