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 first underground Metro, the aqua line, is set to begin operations from Aarey Colony to Bandra-Kurla Complex (BKC) by 1st October, pending safety clearance. This 12.5 km stretch is part of the larger 33.5 km Colaba-Seepz-Aarey Metro Line 3. Once inaugurated, the line will operate 96 daily services, connecting key locations like the Chhatrapati Shivaji Maharaj International Airport and the Marol Naka station. With a capacity of 650,000 passengers per day, the project aims to enhance Mumbai’s urban transit system, reducing travel time while promoting inclusivity through women operators and staff involvement.
KA Enterprises LLP, owned by Bollywood star Deepika Padukone and her father, Prakash Padukone, has made a notable entry into the real estate market with the purchase of a luxury apartment in Mumbai's Bandra West for about INR 17.78 crore. This property, situated in the sought-after Sagar Resham Co-operative Housing Society near Bandstand, spans approximately 1,846 square feet and includes a designated parking space. In a related transaction, Deepika's mother-in-law, Anju Bhavnani, acquired an adjacent apartment for around INR 19.13 crore. This growing trend of celebrity investments in Bandra West includes notable figures like Aamir Khan, Tripti Dimri, K.L. Rahul, and Athiya Shetty, highlighting the area's appeal as a prime residential hotspot.
In a significant move for India's infrastructure, Highways Infrastructure Trust (HIT) has secured the highest bid of INR 6,661 crore to acquire two road stretches along the Hyderabad-Nagpur corridor. Backed by KKR’s Singapore arm, HIT outperformed competitors like Adani Road Transport and IRB Infrastructure in the National Highways Authority of India’s (NHAI) monetization initiative. This project, part of the toll-operate-transfer (ToT) model, is the first of the financial year, contributing to NHAI's ambitious goal of raising INR 54,000 crore from operational roads. With 33 stretches identified for monetization, this effort underscores the increasing investment in India's road network.
? A residential flat spanning 821 square feet sold in Paradise Sai Crystals in Raigad's Kharghar for INR 1.4 crores
? A residential flat spanning 901 square feet sold in Shreenathji Delta Vistara in Raigad's Ulwe for INR 1.32 crores
A GST-registered landlord is liable to pay 18% GST on commercial rental income if it exceeds 20 lac rupees per annum. The landlord can claim input tax credit (ITC) against GST paid if he meets the eligibility criteria and has maintained adequate documentation to substantiate his claim. GST is not applicable on properties leased out for charitable or religious purposes provided the rental charges are below a specific threshold.
Arkade Developers’ IPO, priced between INR 121–128 per share, opened from 16 to 19 September 2024, aiming to raise INR 410 crores. The offering, which includes only new shares, saw strong interest, being subscribed nearly 70 times, with significant contributions from anchor investors who provided INR 122.40 crore. The proceeds will fund current and future projects, including land acquisitions. Arkade Developers, known for high-end residential properties in Mumbai, has developed 1.80 million square feet and sold 792 units since 2017. The shares, managed by Unistone Capital, are set to be listed on 24 September 2024.
Wave Group is divesting part of its land bank in Wave City, Ghaziabad, to boost cash flow, with plans for approximately 12 million square feet of development by various builders. The company also aims to launch a project offering seven million square feet of premium and affordable housing. Demand for premium apartments has surged, causing a nearly 30% price increase in the secondary market. In contrast to prices in Noida and Gurgaon, which exceed INR 15,000 and INR 20,000 per square foot, Wave City offers rates below INR 9,000. Currently, over 4,000 families reside in the township.
The Unitech Group's government-appointed board has filed a petition seeking the release of INR 1,257 crore in assets seized by the Enforcement Directorate during a money-laundering investigation into alleged fraud by former promoters. The ED has shown willingness to restore these properties, which would allow the board to resume construction on stalled projects, helping thousands of waiting homebuyers. The board claimed that the diversion of funds resulted in liabilities over INR 25,000 crore and significant losses. It proposed delivering homes at the original booking prices, despite increased construction costs, while highlighting the need to restore the detained properties.
The Group of Ministers (GoM) within the GST Council met in Goa to discuss the real estate sector's tax structure, particularly joint development agreements (JDAs). Most members oppose tax relief, advocating for the current rates. The GoM also confirmed no additional exemptions for long-term land leases and discussed affordable housing definitions and construction service taxability. Further analysis on land value for construction services is required, with the next meeting set for October 25.
The Telangana government has launched the Telangana MSME Policy 2024 with an INR4,000 crore investment over the next five years to boost the state's Micro, Small, and Medium Enterprises (MSME) sector. The policy focuses on six key areas, including land accessibility, finance, raw materials, labor market flexibility, technology adoption, and market access. It aims to establish 25,000 new MSMEs, promote green technologies, and increase e-commerce penetration. By prioritizing procurement from SC/ST and women-owned businesses, the policy positions Telangana as a leading MSME hub in India.
The Greater Chennai Corporation (GCC) has yet to take action on 387 dilapidated buildings identified in a 2022 survey with the Chennai Metropolitan Development Authority (CMDA). Despite issuing notices to 100 structures, no demolitions have taken place, leaving dangerous buildings with exposed reinforcements and cracked roofs across areas like Anna Nagar, Ambattur, and George Town. Many of these buildings still house residents, complicating efforts due to ongoing litigations between owners and builders. Under the 2020 Tamil Nadu Urban Local Body Rules, the GCC is required to conduct structural stability assessments. Officials said a fresh survey of dilapidated buildings is expected to begin soon.
The National Green Tribunal (NGT) has asked the Centre, Delhi's Lieutenant Governor, and other authorities to respond to concerns about the Kusumpur Pahadi rehabilitation scheme by the Delhi Development Authority (DDA). The project aims to build 2,800 homes on nearly 19 acres of land currently housing slum dwellers. However, since this area is part of the Aravali Biodiversity Park, a protected green zone, concerns have been raised about its environmental impact. The NGT stressed that the project's effects on the environment need to be carefully reviewed.
The Andhra Pradesh High Court refused to stay the demolitions being carried out by the Greater Visakhapatnam Municipal Corporation (GVMC) in the coastal regulation zone (CRZ-1) area near Bheemunipatnam. The court directed the GVMC to not yield to political pressure and ensure the removal of all illegal constructions from the ecologically sensitive area. The court had earlier ordered the GVMC to take action against illegal constructions following a public interest litigation (PIL) petition. The court rejected the arguments of the senior counsel, who claimed the construction was done with due permission in the CRZ-2 area.
The Dharani committee has called for a third-party audit of the Dharani portal to investigate allegations of unauthorized changes since its 2020 launch, including discrepancies in property records. Comprising land experts and officials, the committee proposed 32 measures for land governance reform, including renaming the portal to Bhumatha and introducing a new Right of Records Act. It emphasized establishing local oversight and a community paralegal program to assist farmers, while recommending the use of youth for land verification and the organization of village revenue courts to address grievances.
Godrej Capital, the financial arm of Godrej Group, is set to enter the affordable housing loan market, aiming to increase its Assets Under Management (AUM) from INR 13,000 crores to INR 17,000 crores by year-end, with a target of INR 50,000 crores by 2028. The company plans to focus on small loans for homebuyers and SMEs, expanding into the MSME sector through partnerships like Creamline Dairy to provide financial support to farmers. With projected profits of INR 175 crores this fiscal year, Godrej Capital also plans to launch an IPO within 3.5 years as part of its growth strategy.
The Bangalore Development Authority (BDA) has implemented a development fee for existing residential and commercial buildings in the Shivarama Karanth Layout, calculated based on the difference between the 2018 and 2024 residential plot values. One-third of this difference will be levied as a fee, affecting 5,171 buildings regularized by the Justice Chandrashekhar Committee. Fees vary by village, with Kempapura at 1,149 per square foot as the highest and Kempanahalli at 43 the lowest. Development fees per square meter also differ across the 17 villages, while the distribution of plots remains delayed due to ongoing court cases.
Swedish private equity firm EQT announced it will acquire a 100% stake in Indostar Home Finance for USD 210 million. This acquisition will proceed after receiving regulatory approval, facilitated by the BPEA Mid-Market Growth Partnership. Founded in 2017, Indostar Home Finance specializes in providing affordable mortgages in India’s tier 2 to tier 4 cities and has supported over 39,000 homeowners. With INR 2,400 crores in AUM and a 32% annual growth rate, the firm operates 130 branches across nine states. EQT plans to enhance Indostar’s market reach and digital transformation with a Rs. 500 crores capital injection.
India’s retail sector needs 55 million square feet of premium mall space in the next four years, says a Cushman & Wakefield report. The country’s Retail Space Per Capita (RSPC) is much lower than South Asian countries like Indonesia, the Philippines, and Vietnam. Despite increasing consumer demand and more international brands entering the market, the growth of Grade-A malls has been slow. The report suggests that India must boost mall construction by nearly four times the current rate to meet the demand and match Indonesia’s retail space by 2027.
The Kerala government has initiated plans to develop logistics parks across Vizhinjam and surrounding areas to support the Vizhinjam International Transshipment Port, set to begin operations next month. Spanning 600 acres, the logistics parks will streamline goods transportation via road and proposed rail links. Along with a 629-km coastal highway, these parks are expected to attract private businesses, create jobs, and boost regional economic growth. Public awareness campaigns aim to educate landowners on the benefits of land pooling to minimize opposition during land acquisition.
The Karnataka Government is tackling the complex task of acquiring 85,000 acres for satellite townships around Bengaluru. The Karnataka Housing Board (KHB) needs 10,000 acres for five townships, while the Bangalore Metropolitan Area Development Authority (BMRDA) requires 75,000 acres for its five townships. Balancing development with farmers’ interests, as many depend on their land for their livelihoods, is crucial. Challenges include high land costs, scarcity, and potential governance changes. The government is working to build consensus through raitha adalats and innovative compensation models. Despite these efforts, the future of the townships remains uncertain and needs careful management.
Daikin Industries has invested INR 1,400 crore in its Indian subsidiary to enhance local manufacturing of air conditioners and components. This significant capital infusion, the largest to date, comes as part of their ongoing business expansion, particularly for phase two of their Sri City plant in Andhra Pradesh. The funds will be allocated for construction, research and development, skill development, and brand building, aiming to increase the localisation of their products from 75% to nearly 90%. Daikin competes in the INR 30,000 crore Indian air conditioner market alongside Tata-owned Voltas, LG Electronics, and Havells-owned Lloyd.
The Mumbai Metropolitan Region Development Authority (MMRDA) signed a Memorandum of Collaboration (MoC) with the World Economic Forum (WEF), marking it as the first parastatal agency to do so. The partnership aims to advance sustainable urban development and enhance economic growth in the Mumbai Metropolitan Region (MMR), projecting its GDP contribution to reach INR 300 billion by 2030. It emphasises global expertise, job creation, and infrastructure innovation, while supporting Maharashtra’s climate goals. Prof. Klaus Schwab highlighted the MoC’s potential to position Mumbai as a leading global city.
Sanjay Shirsat, the newly appointed chairman of the City and Industrial Development Corporation (CIDCO) aims to transform leasehold land in Maharashtra into freehold, addressing long-standing demands from Navi Mumbai residents. He took office earlier this week, succeeding a position that had been vacant for four years. While residents advocate for freeholding, CIDCO maintains that acquired land remains leasehold. Shirsat pledged to seek government support and emphasised the importance of timely project completion, focusing on the interests of those affected and the broader community in Navi Mumbai.
Major U.S. homebuilder stocks rose last week as the Federal Reserve's expected rate cuts are expected to lower mortgage rates and boost demand for new homes. D.R. Horton, Lennar, PulteGroup, and Toll Brothers increased by 1% to 3%. The Fed's recent half-percentage-point reduction aims to stimulate homebuilding and address the ongoing housing shortage. NAHB Chief Economist Robert Dietz highlighted the need to lower construction costs to improve housing affordability. Additionally, the S&P 500 Homebuilding Index has surged over 30% this year, indicating investor optimism regarding further rate cuts and their potential effects on mortgage rates.
A new report by Henley & Partners identifies Dubai, Abu Dhabi, and Riyadh as emerging hotspots for centi-millionaires—individuals with liquid assets of USD 100 million or more. These Gulf cities, along with several Asian metropolises, are expected to see their ultra-wealthy populations more than double by 2040. Dubai currently ranks 15th globally with 212 centi-millionaires, while Abu Dhabi and Riyadh follow at 50th and 51st positions respectively. The report predicts over 150% growth in centi-millionaire populations for these centi city hotspots over the next 16 years, signalling a shift in global wealth distribution and highlighting the rising importance of emerging markets in the landscape of global affluence.
Australian property company REA Group has increased its takeover offer for British real estate portal Rightmove to 6.1 billion pounds (around USD 8.1 billion). This follows two earlier offers, which Rightmove rejected, saying they undervalued the company. The new offer values Rightmove at 770 pence per share, made up of cash and REA shares. Rightmove has not yet responded to this latest proposal. A successful deal could help REA expand into international markets, especially since the UK housing market is much bigger than Australia’s. REA is keen to engage with Rightmove’s board and may seek a secondary listing in London to attract more investors.
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