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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Mumbai’s Chhatrapati Shivaji Maharaj Terminus (CSMT) is set for a significant upgrade as Central Railway (CR) fast-tracks the extension of Platforms 12 and 13, moving the completion date from December to August. The extension will increase platform lengths to accommodate 24-coach trains, enhancing capacity by 20%. CR General Manager R.K. Yadav reported 40% of the work is complete, and the expedited timeline is due to simpler construction compared to past extensions. The upgrade aims to address overcrowding at CSMT, which handles over 1,200 local and 100 long-distance trains daily.
Aryan Khan, son of Shah Rukh Khan, has purchased two floors in South Delhi’s Panchsheel Park for INR 37 crore, paying INR 2.64 crore in stamp duty. This property, previously owned by his parents, holds sentimental value. The transaction, registered in May 2024, signifies Aryan's connection to his family's roots. In parallel, Aryan is set to direct a web series titled Stardom, while his sister Suhana Khan has also been making notable investments and strides in the film industry. The Khan siblings are establishing their identities and expanding their family legacy in new directions.
The Mumbai Metropolitan Region Development Authority (MMRDA) plans to lease seven plots in Bandra-Kurla Complex (BKC) to raise approximately INR 5,497 crore for infrastructure projects. The plots, spread across commercial and residential uses, have reserve prices of INR 3.4 lakh and INR 3.5 lakh per square metre, respectively. Estimated revenues include INR 3,657 crore from commercial leases and INR 2,290 crore from residential ones. This initiative aims to support Mumbai’s infrastructure amidst financial challenges, including a projected INR 75,000 crore cost for Metro projects. MMRDA’s leasing strategy reflects its commitment to enhancing urban development and economic growth.
As India's 77th Independence Day approaches, premium resort costs are expected to rise by 15-60% due to a projected five-day weekend from August 15-19. Hotels such as The Oberoi Sukhvilas and ITC Grand Bharat have dramatically raised their prices, with the latter starting at INR 132,000 per night. Suryagarh Jaisalmer and Narendra Bhawan Bikaner both anticipate increased occupancy and pricing. The Radisson Hotel Group forecasts a 20% increase in resort demand, driven by travellers' desire for extraordinary experiences. Despite increased last-minute rates, hotels' appealing offerings are increasing interest, contributing to robust development in India's luxury hospitality sector.
? A residential flat spanning 678 square feet sold in Imperial Exotica in Palghar's Vasai West for INR 77.64 lakhs
? A residential flat spanning 861 square feet sold in Agarwal Krishna Gardens in Palghar's Virar West for INR 62 lakhs
A window sill is a horizontal surface or structure at the bottom of a window or opening. Often made of stone, it serves as a base on which to fix the window. It must be constructed to prevent leakage of water into the building.
Sheth Homes aims to reach INR 3,000 crore in revenue by FY25, up from INR 1,500 crore for FY24. Chairman Ashwin Sheth plans an INR 1,500 crore investment in FY25 and INR 2,500 crore in FY26. The company is preparing for a possible INR 2,000-3,000 crore IPO in 18-24 months, potentially raising its valuation to INR 10,000 crore. Sheth Homes has reduced debt from INR 1,500 crore in March 2021 to INR 400 crore by March 2024, with a goal of zero debt before the IPO. The firm is expanding with new projects in Mumbai and Bengaluru, targeting significant growth across various real estate segments.
Ahmedabad’s commercial property sector is experiencing a resurgence, with new project launches expected to grow by 20-25% this year. This increase follows a period of low activity due to the COVID-19 pandemic. Data from GujRERA reveals 22 new commercial and 70 mixed-use projects in FY 2024-25, compared to 67 and 236 respectively in the previous year. Transaction volumes for office spaces surged by 219% in H1 2024, with significant contributions from local and out-of-state businesses. Despite a sluggish retail segment, the commercial market’s recovery suggests a positive outlook for Ahmedabad’s real estate sector.
In 2024, Global Capability Centres (GCCs) are projected to occupy 35% of India’s commercial real estate, a significant rise from 26% in 2022. This growth is driven by the expanding need for office space in the booming GCC sector. The IT sector will maintain a 16% share, while GCCs are expected to absorb 21.83 million square feet of office space by year-end. Contributing 3.5% to India’s GDP by 2030, GCCs are crucial for business innovation and efficiency. Mumbai and Bengaluru are key hubs, with 80% of GCCs serving international clients, reflecting India's strategic global business role.
In 2023, Bengaluru led Global Capability Centres (GCCs) office space leasing with 15.34 million square feet, commanding a 53% share in the IT/ITeS sector. This positions Bengaluru ahead of other major cities like Mumbai and Hyderabad. The GCC sector's leasing activity is projected to grow to 26 million square feet by 2027, marking a 16% increase from 2018 levels. Despite a global economic slowdown, GCCs continue to thrive, with revenues expected to hit $46 billion by 2024. The number of GCCs in India rose from 1,250 in 2019 to about 1,600 in 2023, potentially reaching 2,525 by 2030.
The Supreme Court has directed the Haryana government to provide detailed information on affordable housing projects licensed over the past decade. This directive arises from the ongoing legal battle involving buyers of Mahira Homes in Sector 103, Gurugram, who have invested approximately INR 160 crore in a stalled project. Issued on July 22, the court's order mandates the Department of Town and Country Planning (DTCP) to furnish details on flat costs at launch, approved layouts, and amendments to building plans. The court seeks to ensure transparency and accountability in tripartite agreements between builders, homebuyers, and banks. With 73 affordable housing licences issued in Gurugram, many projects, including Mahira Homes, have seen minimal progress, raising concerns about regulatory enforcement. The next hearing is scheduled for September 27, with significant implications for future housing project oversight in Haryana.
The Delhi High Court has ordered a CBI inquiry into the misuse of Public Interest Litigations (PILs) following concerns raised by the Municipal Corporation of Delhi (MCD) regarding a law student, Rahul Kumar, who has filed 42 PILs related to unauthorised construction. The court, led by Acting Chief Justice Manmohan and Justice Tushar Rao Gedela, expressed alarm over PILs being potentially exploited, with only 17 of Kumar's petitions listed for hearing. The MCD argued that Kumar's actions suggested a pattern of misuse, as many petitions were not pursued effectively. The court mandated a CBI preliminary investigation to determine if any legal violations occurred, with findings expected by the next hearing. This decision underscores the judiciary's commitment to maintaining the integrity of the legal system and may prompt stricter guidelines to prevent PIL misuse, ensuring they serve genuine public interest.
The Kerala government has revamped the Land Disposal Regulations (LDR) to boost industrial development. Key changes include extending lease periods from 30 to 60 years, and up to 90 years for investments over INR 100 crore. The revised regulations also allow subleasing of industrial spaces and introduce a new instalment scheme to ease financial pressures on investors. These updates reflect Kerala’s strategy to enhance its industrial ecosystem and attract significant investments. By modernising land policies and investing in infrastructure, the state aims to become a major industrial hub, appealing to both domestic and international investors.
Mumbai’s Brihanmumbai Municipal Corporation (BMC) has relaxed its cement concrete (CC) road tender conditions for the second phase, moving away from 2023’s stringent requirements. This shift has allowed previously ineligible companies, such as RPS Infraprojects, to qualify. RPS Infraprojects, once blacklisted in 2016, has now secured a significant INR 1,566 crore project in the city's western suburbs. The new criteria include relaxed experience requirements and a ten-year lookback period. Critics argue these changes could compromise tender integrity, while BMC believes the revisions will foster greater competition and potentially lower costs.
Carlyle Group plans to divest a 6.4% stake in PNB Housing Finance via an open market transaction on Tuesday, aiming to sell 1.66 crore shares at INR 775 each, potentially raising INR 1,256 crore. This floor price is 5% lower than Monday's closing price of INR 794.90. Despite holding a 32.68% stake as of June 30, 2024, PNB Housing Finance's stock has only grown 1.2% this year, underperforming compared to the Sensex's 13% rise. This sale reflects Carlyle’s strategic adjustments amid market challenges, impacting investor sentiment in the housing finance sector.
Mindspace Business Parks REIT reported a robust 9% increase in net operating income (NOI) to INR 496 crore for Q1 FY25, alongside an 11% revenue rise to INR 620 crore. The REIT announced a distribution of INR 300 crore to unitholders, marking a 5% year-on-year increase. Notably, the company leased over 1 million square feet and achieved a 91.1% occupancy rate. With ongoing projects and new SEZ space approvals, Mindspace is expanding its footprint, including a 1.5 million square feet addition at Airoli East Park. The REIT also issued INR 650 crore in sustainability-linked bonds, underscoring its commitment to sustainable finance.
From January to June 2024, Millennials and Gen Z accounted for over 60% of property purchases in Bengaluru, marking a significant shift in the real estate market. Data from NoBroker reveals that Gen Z, aged 11-26, made up 16% of these sales, while Millennials, aged 27-42, dominated the rest. Properties ranged from INR 70 lakh to INR 1.1 crore, reflecting young buyers' willingness to invest significantly. Notably, 67% of these buyers are from dual-income households. The trend includes increasing female participation and a preference for under-construction projects, signalling a transformative phase in the housing market driven by younger generations.
Bengaluru tops India’s residential real estate market, with JLL Research reporting 18,548 housing units sold and 16,537 new homes launched between April and June 2024. The city represents 21% of national new launches and 23% of home sales. The majority of new launches are in the upper-mid segment, priced between INR 1 - INR 3 crore. Whitefield and areas like Hosur Road have driven much of this activity. The average property price rose by 15%, and unsold inventory dropped by 21% year-on-year. Bengaluru’s robust performance underscores its strong demand and dynamic real estate sector.
Nexus Select Trust reported an 8% YoY increase in net operating income for Q1 FY25, reaching INR 412.7 crore. Revenue from operations rose 6% to INR 553.8 crore, driven by rental-escalations and increased retail occupancy. Tenant sales hit INR 3000 crore, with malls’ occupancy at 97.4%. The REIT signed term-sheets for two acquisitions totaling 8 lakh square-feet and plans to acquire five more assets, aiming to double its retail NOI by FY29. The board approved raising INR 1700 crore through debt-securities. A distribution of INR 325.3 crore was declared, with a record-date of August 7, 2024.
Elan Group has teamed up with global real estate leader CBRE to manage its four malls in Gurugram: Elan Epic, Elan Town Centre, Elan Miracle, and Elan Mercado. This INR 7.5 crore annual contract aims to enhance customer experiences and operational efficiency. CBRE will bring its expertise in property management to optimise mall operations, implement best practices, and drive tenant satisfaction. Elan Group's Senior VP, Pooja Patti, expressed excitement about the partnership, while CBRE's Rajesh Pandit highlighted the importance of professional facility management in maintaining the value and appeal of real estate assets.
Prime Minister Narendra Modi recently inaugurated the third phase of the Goregaon Mulund Link Road (GMLR) in Mumbai, a key project aimed at connecting the Western Express Highway (WEH) and Eastern Express Highway (EEH). Spanning 12.20 kilometres, this phase will reduce travel time from 90 minutes to 25 minutes and is set to be completed by November 2028 at an estimated cost of INR 14,000 crore. The project includes major tunnels under Sanjay Gandhi National Park, designed to cut carbon emissions by 22,400 tons annually. The GMLR will alleviate traffic congestion and boost Mumbai’s infrastructure.
The National Highways Authority of India (NHAI) has launched a new asset monetisation cell to optimise the management and monetisation of its operational highway assets. Led by a finance department member, the cell will include experts in finance, technical operations, and transport economics. Its main tasks include market analysis and identifying high-revenue potential assets, focusing on 33 projects expected to generate over INR 850,000 crore in FY 2024-25. This initiative follows NHAI's successful monetisation of INR 40,314 crore in 2023-24 and aims to ensure effective reinvestment in infrastructure development while attracting investor confidence.
The Maharashtra government has approved a joint venture between the Slum Rehabilitation Authority (SRA) and the Mumbai Metropolitan Region Development Authority (MMRDA) to redevelop Ramabai Ambedkar Nagar slum in Ghatkopar. This 33.15 hectare project will be the first of its kind, combining efforts of two government agencies. SRA will handle biometric surveys, land acquisition, and permissions, while MMRDA will manage architects, contractors, and construction. The INR 4,000 crore project aims to rehabilitate 17,500 slum dwellers within three years. The initiative marks a strategic move to expedite slum redevelopment in Mumbai, addressing long standing delays by private developers.
A study published in the journal Cities predicts that property prices in Greater Sydney will remain out of reach for single median income earners until at least 2031. The research, conducted by Dr. Mustapha Bangura (UTS) and Professor Chyi Lin Lee (UNSW), reveals that individuals earning the median income in NSW struggle to afford property without significant financial support. Analysis of trends from 2004 to 2021 shows a 23.7% price increase from December 2020 to December 2021, with Sydney's median house price at USD 1.6 million. The study underscores the urgent need for policy interventions to address Sydney's housing affordability crisis.
Shimao Group's liquidation hearing in Hong Kong has moved to August 12, which gives the company additional time to finalise a revised restructuring proposal with creditors. The petition, filed by China Construction Bank (Asia) over USD 200 million in unpaid loans, follows Shimao's 2022 default on USD 11.5 billion in offshore debt. Recent updates to Shimao's restructuring plan include a minimum cash interest payment for new notes and a reduction in bond conversion prices. The company has extended the deadline for an early consent fee to August 30. The outcome is crucial for Shimao and the wider Chinese property market.
Mr. Cooper Group Inc. has agreed to acquire Flagstar Bank's residential mortgage servicing business from New York Community Bancorp (NYCB) for approximately USD 1.4 billion. The deal includes mortgage servicing rights and a third-party origination platform, aiming to expand Mr. Cooper's customer base by 1.3 million. This sale comes as NYCB faces financial challenges, including a USD 323 million loss for Q2 and difficulties from its recent acquisition of Signature Bank. NYCB plans to shift focus to regional banking, while Mr. Cooper views the acquisition as a strategic growth opportunity. The transaction, expected to close by Q4 2024, reflects broader consolidation trends in the mortgage servicing sector.
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