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 HOMETHON Property Expo 2024, organised by NAREDCO Maharashtra, will take place from October 4 to 6 at the JIO World Convention Centre in Mumbai. Following last year’s success with 55,000 visitors and INR 1,050 crore in sales, this year's expo promises over 1,000 projects from leading developers, covering a wide range of prices from INR. 19 lakhs to 9 crores. Bollywood stars Riteish and Genelia Deshmukh will serve as brand ambassadors. Attendees can benefit from attractive home loan offers and exclusive discounts, enhancing the home-buying experience.
Prithviraj Sukumaran's production company has acquired a duplex in Mumbai's upscale Pali Hill for INR 30.6 crore, confirming the area's appeal among Bollywood stars. Apco Infratech has also purchased a sea-view triplex for INR 155 crore in the same neighbourhood. Pali Hill, known for its luxury properties and celebrity residents, continues to attract high-profile investments, with local property prices starting around INR 1 lakh per square foot. The area’s rich cultural legacy and stunning views reinforce its status as a prime residential choice for affluent buyers, ensuring ongoing demand in Mumbai's luxury real estate market.
The Maharashtra Housing and Area Development Authority (MHADA) has proposed capping the prices of housing-stock and amenities for the Economically Weaker Section (EWS) and Lower Income Group (LIG) in all state housing projects. This move aims to prevent developers from charging open market prices, undermining affordable housing efforts. Under the 2020 Unified Development Control and Promotion Regulations (UDCPR), 20% of plots over 4,000 sq. m. must be allocated for EWS and LIG housing. The proposal includes limiting additional charges to the actual cost or 5%, whichever is less. MHADA seeks approval from the urban development department for this cap.
The Bangalore Development Authority (BDA) is mandating the switch to the e-khata system for all properties within its jurisdiction, impacting over 2 lakh properties. This new digital system replaces the traditional paper khata to enhance transparency and prevent issues such as double registrations, illegal transactions, and fraud. Existing khata holders need an e-khata only if they sell, transfer, or gift their property. Each property will be assigned a unique ID through the Kaveri-2 software. Applications for e-khata can be made online via the Karnataka Seva Sindhu portal, with processing taking 3-5 days. This update aims to streamline and secure property transactions.
? A residential flat spanning 1,046 square feet sold in Mahindra Nestalgia Phase 2 in Pune's Pimpri Colony for INR 1.11 crores
? A residential flat spanning 942 square feet sold in Lush Residencies in Pune's Tathawade for INR 97.06 lakhs
Under the present GST regime, landlords are not liable to pay GST against their real estate rental income, provided the premises is let out for residential purposes. Rent arising out of a residential property being used for business is however applicable for GST as services are being supplied. In addition, if the rental proceeds of a residential property exceed 20 lac rupees per annum, GST is applicable at the rate of 18%.
Chevron Corporation has partnered with RMZ Corporation to establish the Chevron ENGINE, an engineering and innovation centre in Bengaluru, leasing around 0.3 million square feet of commercial space. This state-of-the-art facility aims to harness India's skilled workforce and address global energy challenges, contributing to economic growth. RMZ plans to expand its office portfolio to 50 million square feet across six cities. Both companies underscore India's appeal as a destination for multinational corporations, with a focus on advanced, technology-driven workspaces that promote local talent and support the future of the energy sector.
The Delhi Development Authority (DDA) has extended the deadline for the final 25% installment payment for 1,800 high-end flats in Dwarka Sector 19B from August 31 to September 30. This extension follows buyer requests for more time and delays due to unfinished work on the flats. Complaints from buyers highlight issues with infrastructure, including inadequate utilities, security, and unfinished construction. Some buyers are concerned about moving in before key facilities are operational, while others question the early collection of maintenance fees.
AMC demolishes 23 illegal structures in Fatehwadi, continues crackdown on unauthorized constructions
The Ahmedabad Municipal Corporation (AMC) took significant action earlier this month by demolishing 23 illegal structures in the Fatehwadi area of Sarkhej, which included 22 residential buildings and one commercial property. These followed notices issued for a total of 51 illegal units across the region. After individuals responsible for the constructions petitioned the Gujarat High Court, the court initially granted a status quo but later ordered the petitioners to remove the structures voluntarily. With the petitioners failing to comply, the AMC proceeded with the demolition, emphasizing its commitment to enforcing urban regulations and maintaining compliance with building laws.
The Goa Coastal Zone Management Authority (GCZMA) has ordered the demolition of illegal constructions in Anjuna, including a swimming pool, multiple buildings and a compound wall, all built unlawfully in a no-development zone. Despite the violator's claims that the structures were on a hill and not subject to Coastal Regulation Zone (CRZ) rules, the GCZMA clarified that these regulations apply universally, regardless of topography. Activist Kashinath Shetye reported that the violator had been delaying demolition since 2017, and the GCZMA's firm action highlights its commitment to enforcing CRZ norms and protecting coastal ecosystems from unregulated development.
Gujarat Real Estate Regulatory will soon alter the rule related to quarterly progress report submission for real estate projects. The new updated rule will include a penalty between INR 400 to INR 1000 per day, depending on the size of the project. The previous mechanism where if a developer fails to submit QPR, the project quarter automatically gets locked will be discontinued. This will encourage timely submissions by developers and guarantee transparency to homebuyers. A source told the media, the authority is planning to enhance the rules for easy navigation of developers.
The Yamuna Expressway Industrial Development Authority (YEIDA) has launched a new housing scheme offering over 1,200 affordable flats in Sector 22D, near the upcoming Noida International Airport. The scheme includes 1BHK and 2BHK units, with various pricing options and flexible payment plans. Possession is granted after a minimum payment of 30% of the total premium, and an Apartment Owners Association will manage maintenance after two years. Strict guidelines ensure the flats are used for residential purposes, highlighting the importance of compliance for potential homeowners.
The Hubballi-Dharwad Municipal Corporation (HDMC) is set to conduct a comprehensive Geographic Information System (GIS) survey to bring all properties under the tax net. The survey, using drones and door-to-door visits, aims to identify over 40% of properties currently not taxed, potentially raising tax revenue to INR 350 crore from the current INR 141 crore. With 3,38,602 properties currently taxed, the survey will help integrate existing and new data. After a decade of delay due to high costs, the tender for the project is being finalised. The nine-month survey will involve zone-wise teams and is expected to boost property tax collection significantly.
The Yamuna Expressway Industrial Development Authority (YEIDA) has successfully garnered INR500 crore through an e-auction of 45 plots, each spanning 1,000 square meters, designated for corporate office spaces in the YEIDA area. Initially, the reserve price for each plot was set at INR2.50 crore, leading to a projected total bid of INR112.50 crore. However, the auction exceeded expectations, generating INR 265.14 crore—an impressive INR 152.64 crore, or 134%, above the initial bid price. Notable bids included INR 28.28 crore from Challenger Computer, INR26.64 crore from Alexis Global, and INR25.84 crore from Sanash Impex.
The Indian office market is undergoing a significant shift, with domestic companies projected to lease 60-65 million square feet of office space between 2024 and 2025. This marks a departure from the historical dominance of global corporations, as domestic firms have seen a 60% increase in office space absorption over the last two years. Domestic technology, BFSI, and flexible space sectors are the key drivers of this growth, with cities like Bengaluru, Hyderabad, and Mumbai emerging as prominent hubs. Factors such as the Make in India program, PLI scheme, and a thriving start-up ecosystem are fuelling this expansion, which is expected to continue transforming the commercial real estate landscape in India.
ANAROCK Research shows the rental values in the key micro-markets across India's top 7 cities rose by up to 72% from the end of 2021 to the first half of 2024. Bengaluru, Pune, Kolkata, and Chennai saw the rental values increase more than capital values, while NCR, MMR, and Hyderabad experienced the opposite trend. Cities like Bengaluru's Sarjapur Road and Pune's Hinjewadi showed significant rental growth. Capital appreciation was higher in Noida and Hyderabad's HITECH City. Factors like job prospects, financial status, and lifestyle preferences influence rent vs. buy decisions. Homeownership is favoured due to low-interest rates and post-pandemic security concerns, with EMIs seen as investments.
Inorbit Malls (India), a subsidiary of K Raheja Corp, has acquired the Akshay Sky Mall in Hubli, Karnataka, from Suresh Enterprises for over INR 400 crore. Covering nearly 650,000 sq. ft., the fully developed mall will launch soon and is already leased to major tenants like Reliance Trends and PVR. Located on Gokul Main Road, it serves the Hubli-Dharwad area, highlighting the growing significance of tier-2 cities in real estate. Rahul Arora from JLL described the deal as a milestone, reflecting increased interest in high-quality retail spaces. JLL advised on the transaction, overseeing zoning and tenant strategy.
The Brihanmumbai Municipal Corporation (BMC) has issued an INR 918 crore tender to construct two flyovers connecting Ghatkopar, Mankhurd, and Vashi to ease traffic. One flyover will extend from the Ghatkopar-Mankhurd Link Road (GMLR) towards Vashi, while the other will connect the Sion-Panvel highway to GMLR. Concerns have arisen over the flyovers' alignment with the ongoing Metro Line 8 project. The flyovers aim to reduce congestion and improve connectivity in key Mumbai areas.
The Uttar Pradesh government recently greenlit the ambitious YEIDA Master Plan 2041, set to transform the region surrounding the Noida International Airport in Jewar. Covering 3,352 sq km across six districts, the plan includes mega projects such as a medical device park, semiconductor park, olympic park, and an aerotropolis. With zoning reforms and enhanced infrastructure, the plan aims to balance industrial growth with urban development, positioning the region as a global hub.
The Punjab Government recently raised INR 2,945 crores through an online auction of residential and commercial properties across the state. The auction, covering various property types such as group housing, commercial land, shops, and multiplexes, was well-received by the public. Chief Minister Bhagwant Mann credited the success to the government's investor-friendly policies and confirmed that all proceeds will be reinvested into development initiatives. Approved bidders will be required to make a 10% deposit, with possession granted upon payment of 25% of the total bid value. The auction reflects strong public interest in both residential ownership and business opportunities.
Brookfield Asset Management plans to increase its investment in Indian infrastructure, building on the USD 13 billion already committed, viewing India as the "brightest spot" in emerging markets. Arpit Agrawal, head of Brookfield's infrastructure operations in India, highlighted the firm’s focus on digitalisation, decarbonisation, and deglobalisation, which align well with India's growth. Brookfield is exploring new investments in fibre optics, smart meters, and gas pipelines, alongside its existing stakes in telecom towers and data centres. Agrawal also emphasized India’s favorable economic conditions, including predictable currency depreciation. Brookfield manages nearly USD 29 billion in Indian assets and sees continued growth opportunities.
In the second quarter of 2024, Saudi Arabia registered 24,482 mortgage contracts, reflecting a 12% year-on-year increase, with a total value of SAR 18 billion (USD 4.86 billion). Demand for residential properties is being driven by younger Saudis and the Kingdom’s Vision 2030 initiative. Riyadh’s housing stock has grown to 1.46 million units, while Jeddah’s has reached 891,000, with more units expected in the future. Despite rising land prices and construction delays, the market remains resilient, with increasing property prices and rental rates. This housing expansion aligns with Vision 2030’s goals of enhancing quality of life and improving access to affordable housing for the growing population.
Ireland faces a significant housing shortage, needing around 52,000 new homes annually until 2050, far exceeding the current target of 33,000. The Central Bank highlights a decade-long under-supply worsened by limited development finance, complex planning processes, and low construction productivity. Nearly 33,000 homes were built in 2023, but this falls short of demand. A rental increase cap and high building costs further complicate the situation. This shortage raises the cost of living and doing business, threatening Ireland’s economic competitiveness and residents’ living standards. The government is expected to review housing targets amid this ongoing crisis.
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