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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Gachibowli, located in the western part of Hyderabad, Telangana, has rapidly evolved into a prime residential and commercial hub. Renowned for its well-planned infrastructure and proximity to major IT parks, it offers a variety of housing options, from high-rise apartments to independent villas, catering to diverse budgets and preferences. The area is self-sustaining with excellent educational institutions, healthcare facilities, shopping malls, and recreational spaces. In April, Jains Carlton Creek was the top-selling building with 4 deals, reflecting the locality's popularity. The varied apartment sizes and prices ensure Gachibowli accommodates everyone from luxury buyers to value-conscious homebuyers. The thriving real estate activity underscores Gachibowli's status as a desirable modern urban living destination.
Avenue Supermarts, the parent company of DMart, continues its strategic expansion with the acquisition of a 1.2-acre plot in Mumbai's Chandivali suburb for over INR 117 crore. This move highlights DMart's unique approach of owning retail space, enhancing control over design and operations while ensuring long-term stability. This acquisition follows previous ventures, including a substantial investment in a Pune distribution center and acquiring a cold chain logistics company. With 367 supermarkets nationwide and a net profit of INR 2,536 crore in FY24, DMart's focus on ownership sets a new standard in the retail sector, challenging traditional leasing models and driving aggressive growth.
Microsoft Corporation has significantly expanded its data centre footprint in India with a strategic land acquisition in Hyderabad, Telangana. The acquisition of 48 acres of land in the Ranga Reddy district, valued at INR 267 crore, marks a substantial investment by Microsoft in the Indian data centre market. This move reflects Microsoft's commitment to meeting the growing demand for cloud computing solutions in India. With existing data centres in Pune, Mumbai, and Chennai, the addition of the Hyderabad data centre strengthens Microsoft's ability to support its cloud services and products across the country. Moreover, Microsoft's expanding presence in Hyderabad, including potential further data centre development and investment in flexible workspaces, highlights its long-term commitment to the Indian market and its role in India's digital transformation journey.
Embassy Office Parks REIT (Embassy REIT) is ramping up its growth strategy with a bold investment plan of INR 3,800 crore over four years, aiming to expand its rental portfolio by 6.1 million sq. ft. This move follows its successful acquisition of prime office assets in 2021, bolstering its market presence. The focus now shifts to constructing premium office spaces, reflecting confidence in Bengaluru's demand. Concurrently, the acquisition of Embassy Splendid TechZone and plans for debt financing signal proactive expansion. With impressive financials and a sustainable approach, Embassy REIT is poised to capitalize on India's rising need for quality office spaces.
Awfis Space Solutions, India's largest flexible workspace provider, is set to embark on a new chapter with its initial public offering (IPO) on May 22nd, 2024, aiming to raise INR 599 crore. This move highlights a strategic shift towards a "managed aggregation model" for expansion, reducing capital expenditure and risk. With 66% of existing centers operating under this model, Awfis is set for accelerated growth. The IPO targets a diverse investor base, allocating 75% to Qualified Institutional Buyers. As Awfis adapts to evolving workplace dynamics, including a surge in corporate clientele and expansion into Tier 2 cities, its IPO heralds a milestone in India's dynamic workspace sector.
A recent report by real estate firm Knight Frank India found that the number of 'ghost malls' with over 40% vacancy has risen in the country as consumers shift to larger shopping centres and online purchases. Smaller malls averaging 100,000 sq ft are particularly at risk, with 132 on track to become ghost malls as vacancies increased to 36.2% in 2023. This comes despite the total retail space in major cities growing 238% YoY. The rise in vacant malls represents a loss of INR 6,700 crore in construction value and could negatively impact local economies and small retailers. Such a scenario offers institutional investors the chance to explore avenues for repurposing or revitalizing their retail portfolios, while developers can seize opportunities to monetize these assets through repurposing or redevelopment efforts.
Vashi, a prominent residential and commercial hub in Navi Mumbai, offers well-organized infrastructure, diverse housing options, and excellent connectivity to Mumbai and other regions. The area is equipped with top-notch educational institutions, healthcare facilities, shopping malls, and recreational spaces, making it a self-sustaining neighborhood. In April, top-selling buildings like Prem Sagar CHS and Goodwill Mansion highlighted Vashi's thriving real estate market, with transactions dominated by developer sales. Catering to various budgets, Vashi provides both luxury apartments and budget-friendly options. Its strategic location and robust amenities make it an attractive destination for homebuyers and businesses alike.
As homebuyers increasingly prioritize wellness, community, and experiences over conventional amenities, lifestyle clubhouses have emerged as the new pinnacle of luxury living. Spread over tens of thousands of square feet, these residential facilities offer an exhaustive array of recreational, social, educational and work-life facilities designed to cater to residents' holistic needs. Leading developers are recognizing lifestyle clubhouses as the cornerstone for elevating living standards and fostering connected communities in contemporary housing projects.
The Mumbai Metropolitan Region Development Authority (MMRDA) provided a 10% discount on fares to passengers using the Mumbai Metro lines 2A and 7 for voting on May 20th, 2024 Lok Sabha elections. The initiative aimed to make it more convenient for citizens to reach polling stations and fulfill their democratic duty by voting. With over 90 million annual riders, the metro network plays a key role in transit. Offering discounted fares for voters empowered more people to access booths and participate in elections. Under its SVEEP programme, Maha Mumbai Metro encouraged riders to vote through this discount. Over 1,13,414 passengers utilizing lines 2A and 7 availed of the discount by 8pm on voting day, demonstrating the initiative's role in boosting electoral participation.
Macrotech Developers, known for the Lodha brand, is set to invest INR 3,500-4,000 crore (USD 4.3-4.9 billion) this fiscal year in acquiring land for residential projects, reflecting confidence in India's housing market. Their strategy balances owned land and Joint Development Agreements (JDAs), aiming for a 60-40 ratio. With plans to launch 17 projects, covering 10 million sq. ft, and projecting revenue of INR 12,000 crore (USD 1.5 billion), Macrotech focuses on sustainable growth and profitability. Despite a slight Q4 profit decline, their FY24 income grew, supported by a strong portfolio exceeding 110 million sq. ft. Their expansion is expected to boost job creation and stimulate economic growth, indirectly influencing affordability in the housing market.
Brookfield India Real Estate Trust (BIRET) announced a significant INR 60,000 crore (USD 7.2 billion) acquisition, purchasing a 50% stake in four premium commercial properties from Bharti Enterprises. These properties include the Worldmark Aerocity development in New Delhi and the Airtel Center in Gurugram, totaling 3.3 million square feet. The acquisition, financed through a preferential allotment of units, makes Bharti the second-largest unitholder in BIRET. This strategic partnership diversifies BIRET's holdings and expands its retail footprint by 1 million square feet. The deal underscores the rising importance of REITs in India, potentially spurring further investment and consolidation in the market.
Nexus Select Trust, India's first listed retail REIT, is well positioned for expansion through strategic mall acquisitions. The REIT aims to increase its portfolio by 1-1.5 million sqft annually through deals targeting existing and new markets. It is currently evaluating the acquisition of three Grade A Hyderabad malls at a 10% capitalization rate. The REIT's portfolio currently comprises 17 malls across 14 cities with over 10 million sqft. Potential additions could be in metro or non-metro cities, building on successes in Bhubaneswar and Mangalore. The REIT will consider attractive greenfield sites or opportunities in new markets. It has reported a quarter-on-quarter growth of 36.97% in its net consolidated profit during Q4 and a 13% growth in its net operating income.
? A residential flat spanning 1,324 square feet sold in Birla Niyaara Phase 1 in Mumbai's Lower Parel for INR 8.2 crores
? A residential flat spanning 2,553 square feet sold in Bombay Dyeing ICC in Mumbai's Wadala for INR 7.85 crores
? A residential flat spanning 6,133 square feet sold in ND Around the Mangoes in Bengalurur's Gunjuru for INR 4.26 crores
? A residential flat spanning 2,699 square feet sold in KRK Urban Ville in Bengaluru's Gunjuru for INR 2.87 crores
? A residential flat spanning 1,829 square feet sold in Yashodhan Apartment Erandwane in Pune's Erandwane for INR 7 crores
? A residential flat spanning 2,456 square feet sold in Verde Residences in Pune's Kalyani Nagar for INR 6.99 crores
? A residential flat spanning 7,042 square feet sold in ND Ratna Residency in Nashik's Deolali for INR 2.08 crores
? A residential flat spanning 4,944 square feet sold in Samraat Signature in Nashik's Anandvalli for INR 1.25 crores
? A residential flat spanning 5,430 square feet sold in Sai Krishna Chambers in Hyderabad's Nizampet for INR 2.87 crores
? A residential flat spanning 2,040 square feet sold in Surya Crystal in Hyderabad's Habsiguda for INR 1.53 crores
Agricultural land is land that is used for the purpose of agriculture which includes the cultivation of crops, fruits, vegetables, grass, trees, horticulture, poultry farming, breeding of livestock, breeding of fish, bee keeping, etc. It also includes land used for any purpose which is ancillary to its cultivation, e.g. land used for grazing cattle.
Title is a legal term that refers to the ownership right to a property. Every property has a title which is created in accordance with the laws relating to immovable property such as Transfer of Properties Act, India Registration Act and Indian Stamp Act. Titles can depict ownership of both personal and real property. Personal Property is anything that does not include real estate such as appliances, furniture, antiques, artwork, etc whereas Real Property includes the physical property of real estate as well as bundle of ownership and usage rights.
A legal title report is a written analysis of the status of the title of the property, including a description of the said property, names of titleholders and how the title is held (e.g. joint tenancy). It also includes applicable taxes and encumbrances for the same.
An encumbrance is a claim made against a property by someone other than the current title holder. The term encumbrance covers a wide variety of financial and non-financial claims that may or may not affect the value of the property. It is important, from a buyer’s perspective, to be aware of any encumbrances on a property, as these will often transfer to them along with the ownership of the property.
Adverse possession is a term used in the Indian legal system to describe a situation wherein an individual or group of individuals acquire a right to ownership of an immovable property by virtue of continuous use of it. The Limitation Act of 1963, functions on the principle that ‘limitation extinguishes the remedy, but not the right’, meaning that in the case of an adverse possession the original owner may continue to have the title over the property but he loses the right to claim such a right in a court of law.
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