Weekly Real Estate round-up from PNT
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Everest Food Products Pvt Ltd, renowned as Everest Spices, a leading Indian spice brand for over 52 years, spices-up its portfolio with its promoter acquiring a Rs 73.50 crore apartment in Mumbai's luxurious Three Sixty West project by Oberoi Realty. The high-rise project registered on October 30, is a part of Oberoi's 60-plus acquisitions in the luxurious development, previously making headlines for India's largest property deal in 2023.
Man Infraconstruction Limited (MICL) anticipates revenue exceeding Rs 8,000 crore from three Mumbai real estate projects, including the Tardeo project, touted as one of India's tallest buildings. Aaradhya Avaan, MICL's ultra-luxury venture in Tardeo, envisions revenue surpassing Rs 3,000 crore. Collaborating with stakeholders, MICL employs a nuanced revenue-sharing model for the Tardeo project. Additionally, strategic projects in Goregaon and Ghatkopar contribute to MICL's expansive real estate portfolio. Sales achievements for H1 2023 showcase robust performance, while a confident stance prevails amid rising interest costs, reflecting the evolving dynamics of the real estate landscape.
Oberoi Realty has unveiled Forestville, an expansive residential project spanning 18 acres in Thane's Kolshet area near Mumbai. Comprising five towers, the development offers 3 BHK apartments starting at 1,090 square feet and a base price of Rs 1.87 crore. Inspired by biophilic design principles, Forestville aims to seamlessly integrate nature with urban living, incorporating green spaces, water features, and eco-conscious design. Oberoi Realty strategically focuses on the 3 BHK segment, aligning with market demands in Kolshet. Forestville reflects Oberoi Realty's commitment to innovation and meeting the evolving preferences of discerning homebuyers.
Prestige Estates Projects achieved a remarkable 512.58% YoY growth in net profit, reaching Rs 910.3 crore in Q2 FY 24, compared to Rs 148.6 crore in the same period last year. The company's net consolidated total income surged by 120.79%, reaching Rs 3,256 crore. Notably, strategic acquisitions, including stakes in Dashanya Tech Parkz and Techzone Technologies, exemplify Prestige Estates Projects' commitment to diversification and expansion. These robust financials and strategic initiatives position the company for sustained success in India's real estate sector.
The Bombay High Court has rejected interim relief in response to a petition by slum dwellers seeking over Rs 15 crore in transit rent arrears or the cancellation of a developer's appointment in a significant Slum Rehabilitation Authority (SRA) project at Jerbai Wadia Road, Parel. The court stayed the proceedings before the Apex Grievance Redressal Committee (AGRC) and questioned the spectrum of rights claimed by the slum societies. The court highlighted the issue of enormous inequity in the city and emphasized the need for statutory interpretation in the case. The next hearing is scheduled for January 29, 2024.
The Building and Construction Department (BMC) has decided to lower the initially proposed height requirement for tin sheets at construction sites from 35 feet to 25 feet. This decision follows concerns raised by developers and architects about the structural stability of taller tin sheets. While a formal order confirming the change is pending, the BMC is recommending the use of a green cloth above 25 feet. Experts have highlighted the on-site challenges posed by the original guidelines, emphasizing the importance of sturdy sheets to prevent life-threatening incidents. The BMC is also urging other authorities to establish flying squads to monitor compliance with air pollution guidelines.
The New Okhla Industrial Development Authority (Noida) has introduced two plot allocation schemes to boost industrial and commercial activities in the region. The registration process for commercial builder plots, ranging from 812.73 sq m to 51,417.25 sq m, has begun. The Commercial Plots Scheme targets sectors 32, 35, 40, 50, 94, 96, 97, 98, 105, 108, 124, 132, and 135 in Noida. These plots will be allocated through an e-auction process, with the bidding date to be announced after a pre-bid meeting on November 21. Additionally, an open-ended scheme for plot allocation in Noida Industrial Area Phase 1 and 2 will commence registration on November 21.
The Yamuna Expressway Industrial Development Authority (YEIDA) has conducted a draw for the allocation of 109 industrial plots in Sectors 28, 29, 32, and 33 along the Yamuna Expressway. The move aims to stimulate industrial growth and economic development in the region. The industrial plots, available through a scheme launched in October 2023, cover sectors such as toy parks, handicrafts, furniture manufacturing, and micro, small, and medium enterprises (MSMEs). The initiative is expected to generate significant revenue for YEIDA, with an estimated investment of Rs 16,498 crore and the creation of around 5,132 jobs.
The CBRE report outlines India's booming Global Capability Centres (GCCs) landscape, projecting a 60-62 million sq. ft. office space lease between 2023-25. Key sectors like tech and BFSI drive this expansion, with North American firms leading the charge. Emerging micro markets in major cities signal new hubs for GCC operations, with Bangalore, Chennai, and Hyderabad taking the lead. The GCC trajectory in India showcases the nation's appeal, driven by talent, cost advantages, and government support, promising a diverse and innovative future.
Mumbai-based Oberoi Realty is making its debut in the NCR market by acquiring 14.8 acres in Gurugram for Rs 597 crore. The land, purchased from Ireo Residences, will be used for a luxury group housing project, marking Oberoi's foray outside Mumbai Metropolitan Region. The deal, involving event/ time-linked payments up to Rs. 597 crore, allows existing owners to retain a portion of the project area. Oberoi's entitlement from the project is estimated at 2.6 million sq ft. The move aligns with Oberoi's expansion plans, which include entering Thane, Bengaluru, and Pune, while focusing on premium luxury residences.
The property market in Mumbai's south and central regions, known for luxury apartments and high prices, has witnessed a significant decrease in unsold luxury apartment inventory. This decline, the lowest in the past 15 years, is attributed to an increase in the pace of sales outstripping the number of new property launches. Over the last 12 months, more than 722 luxury apartments priced at Rs 10 crore and above were sold, compared to the introduction of 532 new apartments, according to Liases Foras Real Estate Rating & Research. The market has experienced a surge in prices, maintaining a weighted average price at approximately Rs 65,500 per sq ft, positioning it as one of the costliest globally.
To recover outstanding taxes, the Pune Municipal Corporation (PMC) plans to auction 202 properties whose owners have not settled their dues. The online auction is scheduled for December, and if defaulters do not comply by the extended deadline of December 20, the auction will proceed. The PMC aims to generate around Rs 60 crore through this auction, considering it a last resort for tax recovery. The administration has already sealed over 1,300 properties due to tax defaults, and the remaining 1,100 are set to be auctioned in phases over the coming months. The PMC has set a property tax collection target of Rs 2,318.15 crore for the fiscal year 2023-24.
In a recent move, the Nagpur Municipal Corporation (NMC) has taken stringent action against property tax defaulters in the Mangalwari zone. The NMC has attached five open plots in Gorewada, Hazaripahad, and Borgaon to recover Rs 28 lakh in unpaid property taxes. Assistant Municipal Commissioner Prakash Warade issued seizure warrants against 15 property tax defaulters, prompting 10 property owners to settle their dues promptly. However, five property owners who owed a cumulative amount of Rs 28 lakh had their properties collectively attached. The seized properties will be auctioned to recover the outstanding tax amount, reinforcing the municipality's commitment to enforcing tax compliance.
In a move that promises to reshape the landscape of industrial and logistical infrastructure, TVS Industrial and Logistics Parks Pvt Limited (TVS ILP) has proudly unveiled a transformative strategic partnership with Lingotto, a distinguished investment management company under the esteemed Exor N.V. umbrella. This significant collaboration has been set into motion through a secondary stake sale, marking a pivotal moment in TVS ILP's journey towards excellence in the logistics sector.
Fortune Hotels, an ITC group member, unveiled its latest additions: a brownfield resort in Uthandi, Chennai, and a 100+ room conversion hotel in Hosur, Bangalore. These hotels are set to open in a few months, enhancing Fortune Hotels' portfolio with 64 alliances in 54 Indian cities. Managing Director Mr. Samir MC expressed excitement about the growth potential of the Hosur and Chennai properties. The Fortune Beach Resort ECH Chennai offers aesthetically designed rooms, multiple dining options, banquet facilities, and modern amenities suited for a suitable getaway. Meanwhile, Fortune Hosur, catering to business travellers, is undergoing refurbishment and will feature stylish rooms, dining outlets, a spa, and banquet venues.
Indian Hotels Company (IHCL), renowned for the Taj brand, is set to expand its affordable brand Ginger hotels with 24 new properties. The expansion responds to robust travel demand, targeting cities like Agra, Ahmedabad, and Goa. IHCL plans to enhance Ginger's footprint from 40 to 60 cities, adding 10 hotels annually. Post expansion, Ginger would have 86 hotels driven by a lease model spanning 10-30 years. Despite a decrease in net revenue, Ginger's enterprise revenue surged to INR 360 crores in FY23. The hotel chain remains focused on domestic growth, excluding international ventures as of now.
The Brihanmumbai Municipal Corporation (BMC) has floated a Rs 42 crore tender for a long-delayed project - a Y-shaped vehicular bridge connecting Yari Road and Lokhandwala in Mumbai's western suburbs. Initially proposed in 2002, the project faced legal hurdles, causing significant cost escalation. The 100-meter-wide bridge over Kavathe Creek aims to reduce travel time from 30-45 minutes to just five minutes. Concerns were raised over destruction of mangroves for the bridge, but the Supreme Court quashed the stay after BMCs assurance regarding replanting. With a proposed completion by 2025, locals anticipate relief from the lengthy commute, while the BMC emphasizes environmental friendliness and improved connectivity.
The Ministry of Statistics and Programme Implementation (MoSPI) has revealed that 411 major infrastructure projects in India, each with an investment of Rs 150 crore or more, are facing cost overruns exceeding Rs 4.31 lakh crore as of October 2023. The original cost of these projects was projected at Rs 24,78,446.60 crore, but the estimated completion cost has risen to Rs 29,09,526.63 crore, indicating an overall cost overrun of approximately 17.39%. The report also notes delays in 837 projects, with an average delay of 36.94 months. Timely clearances, improved project management, and coordination among stakeholders are essential to address these challenges.
In the third quarter of 2023, Indian investors surpassed the British to become the top real estate investors in Dubai, according to Betterhomes Real Estate. The surge in Indian investments is attributed to factors such as the Golden Visa program and increased interest in diversifying investment portfolios. Russia, a consistent top player, dropped out of the top three rankings due to economic turmoil. Dubai's real estate sector recorded 28,249 deals in Q3, a 23% YoY increase. Indian investors' interest has impacted luxury real estate prices, which surged 50% over the year. This shift underscores the evolving landscape of Dubai's real estate market.
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