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.
Subscribe for daily updates.
The Bombay High Court upheld the Maharashtra Government's decision to increase lease rents in Bandra based on the Ready Reckoner (RR) rate, affirming its appropriateness given Bandra’s high-end real estate. However, the court ruled that rent must remain fixed for the entire lease duration, not revised every five years as per government resolutions from 2006, 2012, and 2018. Justice B P Colabawalla and Justice Somasekhar Sunderesan noted that the revised rents, ranging from less than INR 2,000 to a maximum of INR 6,000 per month, were not exorbitant given Bandra's prime location. They emphasized that lessees have used the land almost free of cost since 1951, making the rent increase reasonable. However, the court struck down the clause for periodic rent revision, stating both the state and lessees cannot unilaterally modify the lease terms.
Nielsen Media and its subsidiary Whats On India Media are scaling up in Mumbai with a significant office space lease. Located in Commerze III, International Business Park, Oberoi Gardens, Goregaon East, the lease spans 1.52 lakh square feet. Whats On India Media secures 39,852 square feet on the 35th floor, including part of the terrace, with 42 parking slots. Monthly rent is INR 1.004 crore, backed by an INR 8.03 crore security deposit. Nielsen Media leases 1.12 lakh square feet across the 36th-38th floors and terrace, with 122 free parking slots. Monthly rent for their space totals INR 2.87 crore.
CapitaLand India Trust (CLINT) has acquired Building Q2 in Navi Mumbai for approximately INR 6.76 billion (USD 106.99 million), expanding its commercial real estate footprint. The 820,000 square feet property, fully leased to notable tenants including Mizuho Bank and ICICI Bank, adds to CLINT’s portfolio, which now totals around 21.8 million square feet in India—a 4% increase. This strategic move follows the 2021 acquisition of Building Q1, further establishing CLINT in Navi Mumbai's thriving commercial market. The investment highlights CLINT’s commitment to growth in high-potential markets, reinforcing its position in the Indian office space sector.
The Mumbai Metropolitan Region Development Authority, in partnership with the Slum Rehabilitation Authority, is undertaking a significant redevelopment project in Ramabai Ambedkar Nagar, Ghatkopar. Over 14,224 families, or 85 percent of residents, have qualified for new housing. The project, approved by Chief Minister Eknath Shinde, coincides with the Eastern Freeway expansion to Thane and involves an INR 3,200 crore investment. It aims to rehabilitate 16,575 slum dwellers, improving their living conditions. The initiative will create 75 lakh square feet of commercial space, potentially generating INR 10,000 crore in revenue, and will also incorporate an additional 5,000 flats for the MMRDA.
Eldeco Infrastructure and Properties Ltd. has acquired a 20,000 sq metre plot near the upcoming Jewar Airport for INR 96.86 crore through an auction by the Yamuna Expressway Industrial Development Authority (YEIDA). Purvanchal Projects also secured a 40,000 sq metre plot for INR 149.47 crore. These strategic moves aim to capitalise on the anticipated development rise around the new aviation hub. Eldeco's expansion continues with acquisitions in Gurugram, including 11.2 acres in Sector 80 for INR 275 crore. The company’s extensive portfolio spans the NCR and other key locations like Sonepat and Greater Noida West. Recent funding of INR 350 crore from HDFC Capital Advisors bolsters Eldeco’s growth prospects.
? A residential flat spanning 2,689 square feet sold in Sheth Beaumonde Towers in Mumbai's Prabhadevi for INR 28.25 crores
? A residential flat spanning 1,249 square feet sold in Shanti Heights in Mumbai's Dadar for INR 3 crores
A fa?ade refers to the front or exteriors of a building. A facade can serve many purposes such as adding to the aesthetics of the property, establishing a theme, protecting or supporting the building structure, and conserving energy.
WeWork India has expanded by adding over 1.4 lakh square feet of office space with the opening of new centres in Bengaluru and Noida. This expansion aims to cater to the growing demand for flexible workspaces in these key cities. The new centres are equipped with modern amenities and designed to support a variety of work styles. By increasing its footprint in Bengaluru and Noida, WeWork India continues to strengthen its position in the coworking space market, offering more options for businesses and professionals. With a presence in eight cities, WeWork India now offers over 90,000 desks nationwide.
The Supreme Court has upheld the order of the National Consumer Disputes Redressal Commission (NCDRC), directing a developer to refund the entire amount paid by home buyers for the delayed possession of their flat. The home buyers had booked a 3BHK flat in the 'Parsvnath Paramount' project in 2008, but the developer failed to hand over the possession within the agreed timeframe of 30 months. The NCDRC had initially ordered the developer to refund the amount with 9% interest per annum, but the home buyers challenged this decision. The Supreme Court has now increased the interest rate to 12% per annum, stating that the home buyers had to suffer for a long time without any fault of their own and the agreement mentions that the developer would be a 12% interest on the amount in case of delay.
Macrotech Developers, a leading Indian real estate firm, has reported a stellar performance in the first quarter of fiscal year 2024-25, with its net profit soaring 2.7-fold to INR 475.3 crore. The company's total income grew substantially to INR 2,918.3 crore, driven by strong pre-sales that reached a remarkable INR 4,030 crore - the second consecutive quarter exceeding INR 4,000 crore. The company's robust embedded EBITDA margins of 33% and its strategic expansion into new markets like Pune have positioned it for continued growth. Leveraging its strong brand and balance sheet, Macrotech Developers has added new projects worth over INR 65,000 crore since its IPO, demonstrating its ability to capitalize on the country's growing housing demand.
Godrej Properties has raised INR 1,275.40 crore by issuing non-convertible debentures (NCDs) on a private placement basis. The company's board approved the distribution of 93,540 unsecured redeemable NCDs worth INR 935.40 crore and an additional 34,000 NCDs worth INR 340 crore. Pirojsha Godrej, Executive Chairperson for the company, announced plans to launch residential projects valued at INR 30,000 crore this fiscal year to achieve a 20% growth in sales bookings, targeting INR 27,000 crore. In the previous fiscal year, the company saw an 84% growth in sales bookings and aims to deliver 15 million sq. ft this year.
The National Company Law Tribunal (NCLT) has directed Mahindra Homes to notify homebuyers about its proposed reduction in equity share capital, acknowledging them as creditors under Section 66 of the Companies Act, 2013. Mahindra Homes seeks to cancel a portion of series B and C equity shares held by Actis and Mahindra Lifespace Developers. The NCLT emphasised that advances from homebuyers, totalling INR 213.84 crore, are financial liabilities until possession is handed over. The ruling highlights the importance of transparent communication with all stakeholders and sets a precedent for future capital restructuring cases in the real estate sector. The next hearing is on October 30.
The Karnataka government introduced two bills to enhance revenue and prevent water theft. The Karnataka Municipalities Bill, 2024, imposes fines of up to INR 50,000 and 15-day imprisonment for officials failing to collect property tax and double tax on unauthorised buildings. The Karnataka Irrigation Bill increases water theft penalties to INR 2 lakh and two-year imprisonment, requiring government permission for drilling near canals. These amendments aim to improve compliance and resource management, ensuring better adherence to regulations and preventing illegal activities, thus enhancing accountability and contributing to the state's development and sustainability.
领英推荐
The Yamuna Expressway Authority (YEIDA) is re-examining 36 previously unsuccessful land acquisition attempts to expand its holdings and curb illegal constructions. The initiative covers over 6,317 hectares in various sectors. Challenges included farmer opposition over low compensation, leading to court stays. The survey also addresses encroachments, with notices issued to over 300 violators. Upon completion, YEIDA plans residential, group housing, and transport projects to foster regional growth. This effort aims to secure land for development, enforce proper use, and support infrastructure and economic expansion, ensuring transparent and fair processes in land management.
Ghaziabad is set to increase its circle rate by 20% for residential and commercial properties. The circle rate, established by the state government, is the minimum price below which a property cannot be sold and is used to calculate stamp duty and registration charges. This proposed hike comes after significant infrastructural developments, such as the Delhi-Meerut Rapid Rail, which have raised property values. If the proposal is approved, higher circle rates will result in increased stamp duty and registration fees, thereby raising overall property prices. Public feedback will be sought before finalising and implementing the revised rates.
Pune's property market is thriving, with a 60% increase in property registrations in June 2024 compared to June 2023, amounting to over 14,230 properties, as reported by Knight Frank India. Stamp duty collections also rose by 90% year-on-year. The first half of 2024 saw 97,294 property registrations, a 44% rise from the previous year. Factors driving this growth include affordability in the mid-range segment and a preference for larger apartments. Central Pune remains the main hub, but areas like West Pune are emerging as new hotspots. The market shows a strong positive trend for the rest of the year.
Piramal Capital & Housing Finance is set to issue its first dollar bonds, aiming to raise up to USD 500 million. The initial price guidance for these Regulation-S bonds is 8.25%, with the final coupon rate expected to be finalised this week. The bonds will have a maturity of three and a half years. The funds raised will be used in accordance with the Reserve Bank of India’s external commercial borrowing guidelines and the company’s sustainable finance framework. Barclays, Deutsche Bank, and Standard Chartered are joint global coordinators, while Axis Bank, Citigroup, and Emirates NBD Bank are joint book-runners.
The BigBloc Construction's board approved a 1:1 bonus share issue in a July 19 meeting, granting one bonus equity share for every existing share, pending shareholder approval at the August 29 AGM. The move, utilising INR 28.31 crore from free reserves, aims to reward shareholders, enhance liquidity, and expand the shareholder base, increasing paid-up share capital to INR 28.31 crore. Additionally, the board declared a final 20% dividend (40 paise per share), with the Promoter Group shareholders waiving their dividend. The shares rose 2.08% to INR 271.75 on the BSE, peaking at INR 284.90.
Home First Finance Company announced a 27% increase in Q1 profits, rising to INR 88 crore from INR 69 crore last year. The company maintained a stable NPA ratio at 1.7%, showcasing strong risk management. Assets under management grew by 35% year-on-year to INR 10,478 crore, driven by a 30% rise in loan disbursements. Expanding into four new districts and planning 20-25 new branches, the company aims to enhance housing finance access. Emphasizing digital solutions, Home First Finance is set for growth amid strong demand for housing finance and supportive government initiatives.
The Kerala government has announced significant reductions in building permit fees, effective August 1. Houses between 81-300 square meters will see fee cuts of at least 50%, with some areas experiencing up to 60% reductions. This follows last year's exemption for buildings up to 80 square meters. The new rates vary by local administrative zone, with specific reductions outlined for village panchayats, municipalities, and corporations. Despite already having India's lowest permit fees, the government implemented these cuts in response to public demand. Additionally, a 5% rebate will be offered on property tax if paid in full by April 30, marking Kerala's first such tax exemption. These measures aim to make construction more affordable and encourage timely tax payments.
In H1 2024, India's industrial and warehousing sector saw 13 million sq ft of leasing activity, growing 17% YoY. Chennai and Delhi NCR led demand, driven by Third-Party Logistics (3PL) players, who took 36% of space. Chennai's demand doubled, while Delhi NCR saw significant uptake in Farukhnagar and Sonipat. Engineering, FMCG, and electronics sectors also increased space use. Despite rising supply, vacancy rates grew to 12.2%. The sector added 14.4 million sq ft of new space, with 40% in Delhi NCR. Large deals (over 200,000 sq ft) accounted for 35% of demand, mainly from 3PL, electronics, and FMCG sectors.
India's real estate market is booming, with a 33% year-on-year growth in sales of 4.1 lakh units across the top eight cities in 2023. However, the sector faces challenges with 4.1 lakh stalled dwelling units valued at INR 4.1 lakh crore. Government initiatives like PMAY-U and policy reforms have boosted demand, with new housing supply hitting a record 5.2 lakh units in 2023. Despite this, stalled projects remain a significant issue, prompting calls for solutions like mandatory RERA registration and exploring financing options to revive these projects and sustain the market's momentum.
A study by Infometrics, commissioned by Airbnb, found short-term rental accommodations (STRA) have minimal impact on rental and house prices in New Zealand's major urban areas. Population growth and interest rates are the primary factors driving these prices. The analysis, covering Auckland, Wellington, Queenstown-Lakes, and Christchurch, showed STRA's limited effect on rental prices and no significant impact on house prices. For instance, in Queenstown-Lakes, STRA contributed only USD 11 weekly to rent increases compared to USD 101 from population growth. The study underscores the housing supply shortage as the core issue behind rising prices, advocating for strategic planning and policy-making.
A new study by UNSW and UTS highlights Sydney's severe housing affordability crisis, showing that part-time workers, who now make up 23.6% of the workforce, are entirely priced out of the property market. Even full-time workers face significant financial challenges in owning a home. The Australian government has allocated USD 3 billion for social housing and aims to build 1.2 million homes in five years, yet current approval rates fall short. The study emphasizes the need for comprehensive policies to address rising housing costs and the impact of employment types on affordability.
The latest Zoopla report reveals significant regional disparities in the UK housing market. In the first half of 2024, northern England saw notable price increases, with Oldham, Wakefield, and County Durham leading at 83%, 77%, and 18% growth, respectively. Terraced homes priced below GBP 150,000 in the north experienced a 5% rise in value. Conversely, southern England struggled with stagnation and declines due to high mortgage rates. Prime locations like West-Central London showed some growth, but 27% of properties in the south remained stagnant or decreased in value. This divide presents distinct opportunities and challenges for buyers across regions.
China's government is grappling with a worsening financial crisis as land sales revenue dropped 18.4% in the first half of 2024 compared to the same period last year. This decline, reported by the finance ministry, reflects a sharp downturn from the 14% drop noted in the first five months. Land sales are vital for local government funding, supporting public services and infrastructure. The ongoing property crisis and broader economic slowdown are key factors behind the decline. Fitch Ratings warns that relying on volatile land concession revenue is unsustainable, urging exploration of alternative revenue sources like property tax. The crisis raises concerns about China's economic stability and growth.
Otis Worldwide has revised its 2024 net sales forecast downward due to weaker demand for new equipment in North America and China. The company reported an 11.4% drop in quarterly net sales for new equipment, totaling USD 1.42 billion, influenced by slowed U.S. construction and a sluggish Chinese property market. Otis now projects full-year net sales between USD 14.3 billion and USD 14.5 billion, down from USD 14.5 billion to USD 14.8 billion. Despite a 3.2% decrease in total net sales to USD 3.6 billion, Otis increased its profit forecast and reported an adjusted profit of USD 1.06 per share, above expectations.
To read the full news stories, head over to Prop News Time
CEO of Hafner Energy from Waste ltd ?? YouTube/Fb/Instagram/Website ???? #Hazardouswaste
3 个月https://youtu.be/zDUL1y_7B5A