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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The 2024 Union Budget introduces significant measures to boost infrastructure and e-commerce. Notably, 12 new industrial parks will be established under the National Industrial Corridor Development Program, offering essential facilities and reducing setup costs for businesses. Additionally, "Plug and Play" industrial parks in 100 cities will provide ready-to-use spaces, minimising construction delays. The budget also supports the e-commerce sector with dedicated export hubs and reduces the TDS rate from 1% to 0.1%, easing tax compliance. These initiatives are expected to enhance industrial growth, attract investment, and create jobs.
Hebbal, in northern Bangalore, has quickly grown from a quiet suburb to a busy residential and commercial area. The area has modern apartments, tech parks, and shops, attracting young professionals and families. There are also schools and hospitals, making it a convenient place to live. In June, Sobha City had the most sales with nine deals, followed by L&T Raintree Boulevard with 5 deals. Resale deals made up 69% of the total deals concluded in the month. Prices per square foot in Hebbal ranged from INR 1,200 to as high as INR 54,228, with an average of around INR 16,406. Around 38% of the apartments sold were within INR 1 crore range, while 50% of the flats sold were within INR 1-2 crores and 13% of the apartments sold were between INR 2 - 3 crores.
Priyanjali Mariwala, part of Marico's prominent family, has invested INR 65.25 crore in a luxury apartment spanning 8,300 square feet at Mumbai's prestigious Bandra-Kurla Complex (BKC). Located in the exclusive Signature Island tower by Sunteck Realty, this acquisition includes four car parking slots and benefits from Maharashtra's stamp duty concession for women homebuyers. The transaction highlights BKC's appeal among corporate leaders and celebrities for its central location and luxurious amenities. It underscores Mumbai's robust luxury real estate market, which continues to attract high-profile buyers and maintain strong investor confidence despite economic fluctuations.
Shray Projects, a prominent Guwahati-based real estate firm, is hosting “The Krisumi Experience” on July 27, 2024, in partnership with Krisumi Corporation Pvt. Ltd. at Novotel Hotel, GS Road. This exclusive event will introduce Krisumi Waterside Residences and Waterfall Suites 2, featuring luxury 2 and 3 LDK apartments, studio, and one LDK options. The event will highlight Krisumi’s ultra-luxury living standards and investment potential. With extensive marketing efforts, including billboards and radio broadcasts, Shray Projects aims to attract Guwahati's elite investors. Sahil Verma, COO of Shray Projects, emphasises the event’s role in merging Japanese quality with local sensibilities.
? A residential flat spanning 1,390 square feet sold in Harbans Park in Nagpur's Isasani for INR 65 lakhs
? A residential flat spanning 821 square feet sold in The Ramaan Panisha Enclave in Nagpur's Vayusena Nagar for INR 45 lakhs
According to Section 2 (d) of the RERA Act 2016, an “allottee” refers to an individual to whom a plot of land, apartment or building has been sold, allotted or transferred by a promoter. It includes anybody that may subsequently acquire the said allotment through a sale but does not include those renting the property.
Puravankara Ltd. reported impressive first-quarter (April-June 2024) sales bookings of INR 1,128 crore, matching the previous year's figures despite delaying new project launches. A 6% increase in average price realization per square foot to INR 8,746 highlights a shift towards luxury properties, reflecting growing demand in this segment. Puravankara's strategic land acquisitions in Thane and Bengaluru added 2.42 million sq ft of development space, ensuring a robust pipeline. Additionally, the company plans to raise INR 700-800 crore through a Qualified Institutional Placement (QIP) for organic and inorganic growth, while managing debt levels, which stood at INR 2,151 crore. This balanced approach positions Puravankara for sustained growth and leadership in the high-end real estate market.
Brigade Group introduces Cobalt, featuring 948 one-bedroom apartments within the expansive Brigade El Dorado township in North Bengaluru. Designed for young professionals, Cobalt integrates sleek, contemporary architecture amidst 40 acres of lush greenery. The township offers extensive amenities including retail shops, entertainment venues, a hospital, and sports facilities. Strategically located 15 minutes from Kempegowda International Airport and near major IT parks, Cobalt ensures seamless connectivity. With completion expected by Q2 FY29, this project underscores Brigade Group's commitment to providing modern, sustainable living solutions in Bengaluru's vibrant tech corridors.
Co-working firm Innov8 has made a significant expansion in the Delhi-NCR region, investing INR 10 crore to set up three new facilities with a total sitting capacity of over 600. The new centers, spanning 60,000 square feet, are located in strategic hubs like Unitech Cyber Park, DLF Cyber City, and Okhla. Innov8's founder cited the thriving startup ecosystem and corporate presence in the region as key factors behind this expansion. As a company acquired by OYO in 2019, Innov8 now operates over 30 centers across nine cities in India, catering to more than 8,000 employees of its clients.
An elderly couple in Delhi, Monica Gogiya and her husband, are embroiled in a legal battle after a real estate deal with Shaili Thapar and his son, Sahir Thapar, went awry. The Gogiyas allege that they agreed to sell part of their Vasant Kunj farm to Thapar for INR 38 crore, but Thapar registered the entire 36,000-square-foot property in his name after paying only INR 10 crore. Despite attempts to halt the registration, the property was transferred on February 23rd. The Gogiyas claim Thapar, with hired goons, forcibly took over their property on March 8th. Thapar, however, asserts the agreement stipulated full payment by February 10th and denies any wrongdoing. The Delhi High Court has temporarily restrained Thapar from obstructing the Gogiyas' access to their property and halted further construction until the case is resolved. This case underscores the risks elderly individuals face in real estate transactions and the need for clear contracts and legal advice.
Chandigarh resident Naresh Garg has been awarded compensation for significant delays in receiving his apartment in Omaxe Chandigarh Extension Developers Private Limited's "The Lake" project. Garg purchased a 1,285 sq. ft. flat in December 2015 for INR 56,63,404, expecting possession by December 2019. Delays led to an agreement for a larger unit with a new possession date of July 2021, which was also missed. The State Consumer Disputes Redressal Commission ruled in Garg's favour, ordering the developer to complete the unit within two months and pay compensation with 9% interest per annum, INR 75,000 for stress, and INR 35,000 for litigation costs.
Builders in Greater Noida are under scrutiny for allegedly illegally extracting groundwater, triggering potential fines following a National Green Tribunal (NGT) order and subsequent investigations. Environmentalists raised concerns, leading to findings that 38 developers across 41 projects were not compliant with regulations on water extraction. The Greater Noida Authority has proposed fines totaling INR 144.3 crore, calculated at 1% of project costs due to absence of water metre data. Builders argue for fair penalties based on extraction duration and volume. This case underscores the critical need for stringent groundwater management in construction, with implications for environmental sustainability and community welfare.
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The Brihanmumbai Municipal Corporation (BMC) is prepared to transfer five acres of the 18-acre octroi naka land in Mulund for the Dharavi Redevelopment Project. This move, disclosed via the Right to Information (RTI) Act by activist Sagar Devre, comes amidst political controversy during the Lok Sabha election campaign. Several politicians, including deputy chief minister Devendra Fadnavis, opposed relocating "ineligible" Dharavi residents to Mulund. With three to four lakh residents needing relocation, this issue underscores the complexity of urban redevelopment and the political stakes involved in Mumbai's high-value real estate landscape.
Flat owners in Karnataka have urged the State Government to implement clearer laws regarding the title, ownership, and maintenance of group housing properties. They highlight that builders are not transferring ownership of undivided land to flat owners’ associations, allowing them to mortgage the land and construct new structures. The Bangalore Apartments Federation and other associations have appealed to Deputy Chief Minister DK Shivakumar for updates to the Karnataka Apartment Ownership Act (KAOA), 1972. Legal experts and owners cite gaps in KAOA, KOFRA, and RERA laws and demand amendments to ensure proper transfer of ownership and formation of owners' associations.
Sanjay Chhabria, Managing Director of Radius Group, was denied bail by the Bombay High Court in connection with an alleged INR 3,700 crore money laundering case involving Yes Bank and DHFL. Arrested by the Enforcement Directorate (ED), Chhabria denies wrongdoing. Meanwhile, Radius Group project delays leave homebuyers frustrated, unable to register their flats or move in as planned. These delays impact life savings and life plans, highlighting the need for transparency and accountability in real estate dealings. With ongoing legal uncertainties, staying informed and seeking support from homebuyer associations are crucial steps for affected individuals during this challenging period.
Goa's luxury real estate market is experiencing a rise, driven by its idyllic beaches, improved infrastructure, and rising international tourism. Luxury homes, including villas and beachfront apartments, attract affluent buyers from major Indian cities and NRIs, with properties priced from USD 5-6 million. Investment appeal is strengthened by strong rental yields of 3-4% for luxury properties and up to 5-6% for short-term rentals. With ongoing infrastructure developments and anticipated price appreciation of up to 12% by 2024, Goa's investor-friendly policies and lifestyle appeal position it as a prime destination for high-end real estate investments.
The Rail Land Development Authority (RLDA) offers 3.5-acre Dharmavaram plot for INR 9.10 crore lease
The Rail Land Development Authority (RLDA) invites developers to transform a prime 3.5-acre plot near Dharmavaram Railway Station into a bustling commercial hub. With a reserve price of INR 9.10 crore and a proposed 45-year lease, the site offers a built-up potential of 26,770 square metres. Located on Station Road with direct access to NH-716 and nearby transport hubs, including airports in Bengaluru and Kadapa, the site promises excellent connectivity. This initiative aims to stimulate economic growth, attract investments, and enhance Dharmavaram's status as the "Silk City of Andhra Pradesh."
A recent JLL India report highlights a shift in new apartment construction towards higher-priced units in major cities. The April-June 2024 period saw a 5% rise in new apartment launches across Mumbai, Delhi NCR, Chennai, Kolkata, Bengaluru, Hyderabad, and Pune, totaling 159,455 units. However, affordable housing (under INR 50 lakh) dropped by 21%, with only 13,277 units launched. In contrast, premium and luxury segments saw significant growth, with units above INR 3 crore more than doubling to 19,202. Despite fewer affordable options, overall sales rose by 22%, driven by strong demand for new properties.
Bata India, a leader in footwear, celebrates its 500th franchise store, highlighting its growth strategy in tier 3-5 cities. With over 1,860 stores nationwide, the brand leverages its strong franchise model to expand into smaller markets. The move responds to growing consumer demand for branded footwear and digital convenience. Bata's focus on premiumisation includes specialised stores like the Power Brand store for fitness enthusiasts, adapting retail strategies to local market dynamics. Despite economic uncertainties, Bata remains optimistic, driven by rising disposable incomes and evolving fashion trends. The milestone highlights Bata's resilience and strategic foresight in India's competitive footwear landscape.
Karnataka's "Beyond Bengaluru" initiative aims to decentralise industrial development by establishing sector-specific clusters in cities like Belagavi for aerospace and Mangaluru for fintech and animation. This strategy seeks to replicate Bengaluru's IT sector success across diverse industries, attracting over 300 companies and creating 3,000 jobs in smaller cities. With a focus on regulatory ease and incentives, Karnataka aims to balance economic development statewide, leveraging its robust educational infrastructure and expanding renewable energy capacity. Challenges include regional competition and airport logistics, with solutions like reopening HAL airport under consideration, underscoring the state's commitment to sustainable and inclusive growth.
Homebuyers in Maharashtra will soon have a valuable tool at their disposal with the Maharashtra Real Estate Regulatory Authority (MahaRERA) set to launch an AI-powered grading system for real estate projects. Announced in September 2023, this initiative aims to enhance market transparency by grading projects on construction quality, financial health, legal clearances, and overall project overview. Each parameter will weigh 25% in the final grade. With over 46,000 registered projects, this system will empower buyers to make informed decisions, reduce risks, and promote high standards among developers. The AI-powered grading function is expected to be operational within a month.
Barratt Developments, one of the UK’s largest homebuilders, expects its homebuilding targets for fiscal 2025 to decrease by up to 7% due to high mortgage rates and economic concerns. The company forecasts constructing 13,000-13,500 homes by June 2025, down from 14,004 homes built last year. Forward sales have also dropped to 7,239 homes from 8,995 a year ago. Despite these challenges, Barratt anticipates profit slightly above expectations for the 2024 fiscal year. In February, Barratt agreed to acquire Redrow in an all-stock deal worth GBP 2.52 billion. The housing sector remains hopeful for policy changes under the new Labour government.
A new midyear Luxury Outlook report from Sotheby's International Realty reveals that while global elections might temporarily slow luxury home buying, rising interest rates pose a more significant concern. Buyers often delay purchases during elections due to uncertainty, but high interest rates are discouraging transactions more persistently. Despite this, luxury home prices are expected to remain stable as aging homeowners opt to "age in place" rather than downsizing. With limited supply and potential increased demand when rates eventually fall, competition could intensify. The report suggests now may be an opportune time for buyers before competition heats up.
China's Ministry of Finance has intensified its scrutiny of the Big Four auditing firms—Deloitte, EY, PwC, and KPMG—focusing on audits of financial and highly leveraged companies. This follows a regulatory probe into intermediaries for the defaulted China Evergrande Group, which inflated its revenue by USD 78 billion. Increased checks are aimed at small lenders, asset management companies, and leveraged state-owned enterprises. PwC faces a potential fine of USD 138 million for its failings, while Deloitte was previously fined USD 30.8 million. This scrutiny aims to address financial vulnerabilities and restore investor confidence amidst the real estate crisis.
Hong Kong regulators have partially cleared PwC of accusations related to its audit of China's troubled Evergrande Group. Once a real estate giant, Evergrande defaulted on debts exceeding USD 78 billion in 2021, prompting scrutiny into PwC's auditing practices following whistleblower concerns. While PwC has been exonerated of some allegations, details of the investigation remain undisclosed, raising transparency concerns. Evergrande's financial missteps, including allegations of overstated revenue and substantial fines for fraud, underscore the critical role of reliable audits in investor decision-making. The saga underscores the need for auditors to uphold rigorous standards to safeguard investor trust and maintain financial system integrity.
Britain's luxury property market, buoyant until recently, faces a potential slowdown. Winkworth's report indicates a 19% overall sales increase in H1 2024, yet highlights a decline in high-end property transactions. Experts attribute this shift to recent tax policy changes, including the removal of tax benefits for non-domiciled residents and proposed VAT on private school fees. The Labour government's plans to close inheritance tax loopholes further complicate the landscape. While aimed at boosting public finances, these reforms may deter wealthy residents and impact property demand. Investors are advised to monitor these developments closely amidst uncertainty over the market's future trajectory.
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