Weekend Digest - Top Stories
Welcome to the latest edition of?PNT Real Estate round-up! 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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Begur, once a serene village, has transformed into a thriving residential and commercial hub in Bengaluru. March witnessed a flurry of real estate activity in Begur, with Splendid Lake Dews leading the charge, followed by Windsor Troika, SNN Raj Serenity, and Splendid Lake Breez. The diverse offerings catered to varying budgets and preferences, from luxurious units to budget-friendly options, and from spacious homes to compact living spaces. With its strategic location, modern amenities, and excellent connectivity, Begur emerged as a real estate hotspot, offering a harmonious blend of affordability, luxury, and convenience.
Deepak Builders and Engineers, a leading construction company in India, has filed paperwork with market regulator SEBI to raise funds through an initial public offering. The company aims to issue 1.44 crore shares to strengthen its balance sheet and meet working capital needs. Funds raised will repay debt, support operations and explore opportunities. Deepak Builders specializes in various project types like buildings, hospitals and facilities. It has a proven track record of executing turnkey projects. Through the IPO, the company wants to enhance capabilities to sustain growth in the competitive engineering sector.
The Maharashtra Real Estate Regulatory Authority (MahaRERA) has raised concerns about 212 housing projects across the state that have not provided construction status updates as mandated. These projects, launched between January and April 2023, were required to submit Quarterly Progress Reports (QPRs) to MahaRERA, but failed to do so. Non-compliance has led to strict actions including project suspension and freezing of bank accounts. To caution homebuyers, MahaRERA has published a district-wise list of these projects, with Pune having the highest number at 47. MMR and Konkan areas combined have 76 non-compliant projects. MahaRERA emphasizes the importance of regular updates to protect homebuyers' investments and ensure project completion as promised.
CBRE's report forecasts a significant surge in India's senior living facilities, estimating approximately 1.5 million new units within the next decade, driven by the doubling of the elderly population. Currently, India only has 18,000 units, indicating a vast scope for growth compared to more developed markets. The southern states, with their favourable climate and robust healthcare infrastructure, lead in senior living supply, attracting developers' attention. The market size is projected to reach USD 17.99 billion by 2029, with a 10% CAGR. Major players like Antara Senior Care and Ashiana Housing are investing heavily, signalling a shift towards tailored housing and care options for India's aging population. As awareness grows and options multiply, senior living is poised to become a mainstream housing choice, potentially emerging as a significant asset class in India's real estate landscape.
Viman Nagar, Pune, stands out as a bustling residential and commercial hub, celebrated for its prime location near the Lohegaon Airport. Its robust infrastructure offers a mix of housing options, from high-rise apartments to independent bungalows, catering to diverse needs. March witnessed notable transactions with VNSVL Shubh Nirvana Phase 1 and Rohan Mithila leading sales. The market appeals to varied budgets, with prices ranging from INR 11.5 Lakhs to INR 3.17 crores. Apartment sizes vary, ensuring suitability for families and individuals alike. Average prices per square foot hover around INR 12,029, attracting buyers from different segments. Viman Nagar's allure lies in its balance of affordability, luxury, and convenience, solidifying its status as a sought-after real estate destination.
Anil Gupta, chairman of Wellknown Polyesters, alongside his wife and the company, purchased two sea-facing apartments in Mumbai's Lodha Malabar project for over INR 270 crore, marking one of India's priciest residential transactions at INR 1.41 lakh per square foot. The deal highlights the rising demand for luxury housing in Mumbai's upscale areas. The Lodha Malabar project, slated for completion by June 2026, has witnessed other record-breaking deals, indicating fierce competition for prime Mumbai real estate. Gupta's move signals a potential trend of large corporations investing in luxury real estate, potentially reshaping the sector's dynamics.
MahaRERA has received several complaints from homebuyers regarding issues with parking spaces sold by developers. To address this, MahaRERA has made it mandatory to include all parking details like lot numbers, dimensions and block location in sale agreements and allotment letters. This aims to provide upfront transparency and avoid future disputes. Developers must now clearly demarcate and label garage, covered and open parking spaces as per approved plans and must also tag these spaces to the allotted apartment. Open parking is considered a common area as per RERA and cannot be sold. The directives aim to protect buyer interests by resolving issues at the outset and ensuring allottees can use the parking facilities smoothly.
Spanish retail giant Inditex is making strategic moves in India, expanding beyond its successful Zara clothing stores to introduce Bershka, a youth apparel brand, and Zara Home, targeting the burgeoning home decor market. This expansion comes amid increasing consumer demand for trendy yet affordable clothing and stylish home furnishings in India, a market estimated to be worth over USD 20 billion. Inditex's decision reflects its recognition of India's evolving consumer landscape, driven by factors like rising disposable incomes and aspirations, especially in tier-2 and tier-3 cities with large populations. By offering diverse options ranging from budget-friendly collections by Zara Home to high-end offerings by Indian luxury brands, the Indian home decor market presents ample growth opportunities for both international and domestic players alike. Additionally, several Indian fashion designers and lifestyle brands, along with international players like Pottery Barn and West Elm, are also making their mark in the Indian home decor arena. This trend has implications for the real estate sector, as consumers seek homes with modern layouts and features to accommodate trendy home decor products.
? A residential flat spanning 768 square feet sold in Aman Akansha Heights in Mumbai's Worli for INR 2.05 crores
? A residential flat spanning 660 square feet sold in Mount Classic 1 in Mumbai's Mulund West for INR 1.1 crores
? A residential flat spanning 850 square feet sold in Ambika Hill Crest in Nashik's Govind Nagar for INR 40.7 lakhs
? A residential flat spanning 628 square feet sold in Sagar Sparsh E & F Wing in Nashik's Amrutdham for INR 21.58 lakhs
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? A residential flat spanning 299 square feet sold in Astha Padmavati Pearl in Raigad's Astha Padmavati Pearl for INR 57 lakhs
? A residential flat spanning 357 square feet sold in Thakur Ubora in Raigad's Taloja for INR 26 lakhs
? A residential flat spanning 625 square feet sold in Mahalaxmi Heights in Thane's Badlapur for INR 19.92 lakhs
? A residential flat spanning 480 square feet sold in Maa Sherawadi Complex in Thane's Kalher for INR 16.9 lakhs
? A residential flat spanning 2038 square feet sold in Delta Spark Plaza in Nagpur's Ajni for INR 1.55 crores
? A residential flat spanning 774 square feet sold in New Viraj Jagdamba Building No. 3,4,5 in Nagpur's Belgaon for INR 24 lakhs
A logistics park is an industrial area specifically designed for storage, management, distribution and transportation of various goods. These parks are designed to be well connected to major roads and railway stations thereby reducing the cost of goods transport. They are also equipped to host facilities to execute all logistics tasks at significantly lower costs.
GST stands for Goods and Services Tax. It is an indirect tax levied on the supply of certain goods and services and is applicable across India. In real estate, GST is applicable on the procurement of construction material and the service of construction. Therefore, a buyer of an under-construction flat must pay GST, as the builder continues to provide a service until the flat is ready. GST is not applicable on ready flats which have received an OC certificate or land transactions as there is no additional service provided by the builder or seller post the transaction.
Input tax credit (ITC) refers to a mechanism wherein credit can be claimed on account of GST paid on the purchase of goods and services used for the furtherance of business. This mechanism is available to businesses registered under the GST Act, including manufacturers, suppliers, e-commerce operations and others specified in the legislation. It aims to assist businesses in effectively reducing their tax liability while encouraging compliance and preventing double taxation.
GST is applicable on the purchase of under-construction flats, apartments, bungalows, villas, etc in India. As of 1 April 2019, the GST applicable for such properties varies between 1% to 5%, depending upon the size and category of housing. Government led housing projects attract only 1% GST. GST is not applicable on ready-to-move flats that have received an OC certificate or on land deals where not further service is provided.
Flat owners that pay upwards of INR 7,500 per month in maintenance fees are liable to pay GST at the rate of 18% on the full sum paid. An individual who owns multiple apartments in the same housing society, will be taxed separately for each unit. Housing societies and Residents’ Welfare Associations that collect more than INR 7,500 per unit per month and have an annual turnover exceeding 20 lac rupees must pay 18% GST. These entities are entitled to claim ITC on tax paid by them on capital goods, maintenance and repair services.
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