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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Vashi, a well-planned node in Navi Mumbai, offers modern infrastructure and a balanced living environment. Known for its commercial and residential appeal, Vashi features amenities like shopping centers, schools, healthcare, and recreational spaces. It's well-connected to Mumbai and Navi Mumbai via railways and roadways, attracting professionals and families alike. In June, EV - 10 Marina Bay and Ram Laxman Tower led real estate activity with multiple transactions. Apartments varied in size and price, from INR 42 lakhs in Ram Laxman Tower to INR 3.17 crores in EV - 10 Marina Bay. With prices per square foot averaging INR 20,463, Vashi continues to thrive as a prime real estate destination.
Oyo, the prominent Indian hospitality startup, is in advanced talks to secure INR 1,000 crore (USD 120 million) in fresh funding from family offices and Malaysia's sovereign wealth fund, Khazanah Nasional. Facing a 72% valuation drop from its peak in 2021, now valued at USD 2.5 billion, Oyo targets investors disillusioned by recent market corrections. The startup highlights its fiscal turnaround with an anticipated first net profit of INR 100 crore in FY24 and forecasts robust growth, projecting USD 1.8 billion in gross booking value and USD 957 million in revenue for FY25. Oyo's strategic focus on core markets and cost efficiencies underpins its bid to regain market confidence amidst broader hospitality sector recovery.
Bollywood actress Tamannaah Bhatia has leased a 6,065 sq. ft. commercial property in Mumbai's Juhu for INR 18 lakh per month, with the rent set to rise to INR 20.96 lakh by the fifth year. Concurrently, she mortgaged three residential units in Andheri West for INR 7.84 crore. This move, registered in May, could indicate strategic financial planning. Bhatia joins other Bollywood stars, such as Triptii Dimri and Aamir Khan, in making significant real estate investments. This trend highlights the increasing financial savvy of Bollywood celebrities, aligning with a projected 20-25% growth in India's luxury property market in 2024.
? A residential flat spanning 950 square feet sold in Samraat Amozon in Nashik's Ananvalli for INR 44.82 lakhs
? A residential flat spanning 859 square feet sold in Rushiraj Galaxy in Nashik's Makhmalabad for INR 35 lakhs
Foreclosure is a legal process that allows lenders to recover the amount owed on a defaulted loan by taking ownership of and selling the mortgaged property.
Pune's luxury real estate market has hit a new high with the sale of the "Emperor Palace" penthouse at Lodha One Bund Garden for an unprecedented INR 37 crore. This expansive 12,000-square-foot property, perched atop a residential tower, offers panoramic views of 500 acres of lush greenery, redefining luxury living in the city. Built by Lodha, the penthouse exemplifies Pune's growing demand for exclusive gated communities with top-tier amenities. This sale marks a significant milestone, surpassing previous high-end property sales and signaling continued growth in Pune's luxury real estate segment.
South Korean investment giant Mirae Asset plans to establish its first Global Capability Centre (GCC) outside South Korea in India. The centre, expected to be operational by mid-2024, will manage back-office functions and leverage India's tech expertise to support Mirae Asset's USD 225 billion global operations. With over INR 1.16 lakh crore (USD 14.56 billion) in Indian Assets Under Management, Mirae Asset's Vice Chairman, Swarup Mohanty, highlighted the GCC's role in expanding their nine Indian businesses to 14-15 within four years. The centre will also enhance their ETF and AI capabilities, bolstering India's position as a global financial hub.
Bihar Chief Minister Nitish Kumar has urged officials to accelerate the statewide land survey and settlement, aiming for completion by mid-2025. Addressing the issue at an event in Patna, Kumar highlighted the role of land disputes in crime, linking over 60% of incidents in the state to such disputes. Initiated in 2013 with a special aerial survey, the effort aims to reduce conflicts and enhance legal clarity. With recent recruitment of 9,888 officials, the government emphasizes the survey's importance in promoting social stability and economic growth, underscoring its commitment to effective land management and governance.
Andhra Pradesh Chief Minister N Chandrababu Naidu has initiated a comprehensive overhaul, focusing on infrastructure repairs and essential commodity price stability. In recent meetings, Naidu emphasised urgent measures to address road repairs, ensure continuous sand supply for construction, and stabilise prices of key commodities. He directed officials to implement both immediate and long-term strategies, aiming to swiftly resolve long standing issues and enhance public welfare. Naidu's proactive stance includes modernising road maintenance efforts and collaborating with central authorities to regulate prices and secure essential supplies. His efforts underscore a commitment to bolstering economic stability and public satisfaction across the state.
This year's federal budget aims to significantly uplift rural India by enhancing housing, job opportunities, and infrastructure. The government plans to increase rural housing subsidies by 50%, allocating over USD 6.5 billion to the Pradhan Mantri Awas Yojana (PMAY-G) program. This initiative will provide up to INR 200,000 (approximately USD 2,395) per household for building permanent homes, targeting 20 million new houses in addition to the 26 million already constructed since 2016. The budget will also boost funding for rural job programs and village road improvements, aiming to strengthen the rural economy and improve living conditions.
The Madras High Court ordered authorities to give free house sites pattas to 500 scheduled community families whose land was set to be utilized for building Kallimandayam taluk. The land was allotted to the community in 2012 due to poor living conditions. When the petitioner submitted the representation to the grant pattas, he was informed that the land no longer belonged to the community, breaching the right of legitimate expectation. Justice G R Swaminathan observed that decision has been taken arbitrarily and free house sites must be give to the families within three months.
In June 2024, Goa's Town and Country Planning department approved zoning changes for six land plots, invoking Section 39A of the Goa Town and Country Planning Act. This provision allows the chief town planner to modify regional plans without public consultation, aiming to expedite land conversions. Critics raise concerns about transparency and potential environmental impact, especially regarding four plots in Pernem where 21% of green cover might be converted. The decision, open for public objections for 30 days, underscores the tension between development and responsible land use in Goa.
In a significant shift for India's financial sector, Vikram Pandit, former CEO of Citigroup, is exiting the real estate financing business he co-founded. INH Mauritius, managed by Pandit, is selling its 49% stake in JM Financial Credit Solutions (JMFCS) to JM Financial for approximately INR 3,000 crore (USD 420 million). This acquisition raises JM Financial's ownership in JMFCS to 96%. The move reflects challenges in the real estate sector, with JMFCS' valuation lower than its reported net worth of INR 4,200 crore (USD 590 million). Additionally, JMFCS will acquire a 72% stake in an asset reconstruction company for INR 856 crore (USD 120 million), aiming to capitalise on distressed debt recovery opportunities.
A recently released report by Cushman & Wakefield emphasises India's strong preference for main-street retail leasing due to limited mall openings and high demand for top-tier retail spaces. In Q2 2024, high-street leases constituted 70% of total leases, with notable rent increases in Kolkata, Bangalore, Hyderabad, and Mumbai. Mall vacancy rates declined in major cities, with Grade A/A+ malls maintaining low vacancies. H1 2024 saw no new mall openings, but H2 is expecting 4.5 MSF of Grade-A malls. Nexus Select REIT saw 98% occupancy and plans to double its portfolio. Leasing activity surged in Delhi-NCR, Mumbai, Bengaluru, Hyderabad, Kolkata, Pune, Chennai, and Ahmedabad.
Bengaluru's BBMP has collected INR 463.03 crore in property taxes through its One-Time-Settlement (OTS) scheme, with INR 624.88 crore still outstanding as the July 31 deadline nears. Launched on February 27, the scheme aimed to ease tax burdens by waiving 50% of penalties and interest but saw limited participation, with only 1.52 lakh out of 5.51 lakh defaulters settling dues. Despite issuing notices to 3.95 lakh property-owners, only 70,000 responded. BBMP Chief Commissioner Tushar Giri Nath urges eligible property-owners to utilize the scheme. Overall property tax-collection decreased to INR 1,758 crore this year.
India's warehousing sector, crucial for economic expansion, faces a hurdle in land acquisition. As demand surges amid rapid economic growth, complexities in acquiring land due to fragmented ownership structures and lengthy approval processes slow development. Global interest, like Panattoni's USD 100 million annual investment plan, underscores market potential, yet initial delays near Delhi highlight challenges. Streamlining land acquisition is vital; simplifying procedures, enhancing data transparency on ownership, and offering incentives can optimise development. Despite obstacles, commitment from firms like Panattoni and expansions by Blackstone and Prologis signal optimism, advocating for collaborative efforts to unlock India's warehousing sector's full potential.
Welspun One, a key player in India's warehousing sector, has secured a landmark INR 2,275 crore (USD 281 million) for its second fund, highlighting robust investor interest. Focused on "new-age" warehousing solutions, the company targets high-growth segments like urban distribution centres, cold storage facilities, and logistics hubs near ports and airports. These initiatives cater to the surging demand fueled by e-commerce and efficient supply chain requirements. With plans to develop 8 million square feet, expanding their portfolio to 18 million square feet, Welspun One aims to enhance delivery efficiency and support India's economic growth through strategic infrastructure investments.
Rajasthan will be the very first Indian state to adopt a 10 year road safety action plan, aiming to reduce road accidents by 50% by 2030. Deputy Chief Minister Mr. Prem Chand Bairwa announced on July 8 that the plan, supported by a government policy, will raise public awareness and promote compliance with the road safety rules. The World Bank will assist in developing the plan and policy, incorporating global best practices. The plan will be implemented in three stages (2025-2027, 2027-2030, 2030-2033), focusing on speed limits, safe distances, traffic signals, road barriers, pedestrian safety, seatbelts, helmets, and vehicle insurance.
Malang Gad, also known as Haji Malang Hill, witnessed a tragic landslide that claimed one life and injured two others. In response, the forest department initiated the demolition of 90 out of over 800 illegal structures, primarily targeting commercial shops. The Peer Haj Malang Dargah Baba Trust, asserting ownership of the land, opposed the demolition, alleging political motives, and filed a case. Civil judge A S Lanjewar intervened to halt further demolition, but by then, 90 structures had already been razed. The area gained significant attention in January when Chief Minister Eknath Shinde pledged to resolve the issue. The forest department's demand for documents culminated in the demolition, which occurred under tight security measures.
Land prices in Japan grew by 2.3% in 2023, the highest rate of growth since 2010, according to a National Tax Agency poll. After 2.5% growth in 2022 and a 0.5% increase in 2021, this year's increase in prices was the third in a row. Out of 47 prefectures, 29 saw an increase in land prices, including Tokyo, Hokkaido, and Okinawa. The largest rise, 5.8%, was recorded in Fukuoka Prefecture due to reconstruction and a rebound in tourism. Ginza in Tokyo continues to be the most expensive place in Japan. The study reveals strong demand, supported by a rebound in tourism and a depreciating yen, for both residential and commercial land.
Singapore is enhancing its public housing for inclusivity and accessibility, balancing homebuyers' aspirations with community goals. In 2023, the market saw a significant new supply, with 21,400 HDB flats and 20,400 units from private developers. GLS tenders are expected to yield 9,250 residential units, a decade-high record. The steady supply aims to stabilise the market, with HDB resale demand driven by private homeowners downgrading. In Q1 2024, 185 resale flats sold for at least SGD 1 million. New BTO classifications—Standard, Plus, and Prime—launching in H2 2024, and policy changes benefit singles, reflecting efforts to make housing more inclusive and affordable.
Despite regulatory efforts, vacation rentals remain a significant part of Hawaii's housing stock. Converting these rentals to long-term housing is seen as a solution to the critical housing demand, but new short-term listings continue to rise. The Hawaii Housing Factbook 2024 reports 32,000 short-term rentals, making up nearly 6% of the state’s housing. Efforts to regulate have not significantly shifted the market. Maui is the only county with a bill to amortise vacation rentals. Effective policy implementation and cooperation between stakeholders are essential to balance residents' housing needs and the tourism economy for a sustainable housing market.
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