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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Rajesh Labhubhai Lakhani, director at Kiran Gems, purchased a 14,911 sq. ft apartment in Mumbai's Oberoi 360 West for INR 97.4 crore. The luxury residence, located on the 44th floor, offers stunning views and comes with seven car parking spaces. This transaction highlights the robust performance of Mumbai's luxury real estate market, with over 10,000 property registrations in May 2024 alone. South and central Mumbai remains hotspots for wealthy buyers, with luxury apartments like those in Three Sixty West attracting business leaders and celebrities, ensuring sustained market growth and investment potential.
Birla Estates, the real estate arm of Aditya Birla Group's Century Textiles and Industries, has announced a new luxury housing project in partnership with Barmalt India Pvt Ltd. This project will transform a prime 13.27-acre land parcel in Gurugram's Sector 31 into a high-end residential development with a potential of approximately 2.4 million square feet, generating an estimated revenue of INR 5,000 crore. Strategically located near key business districts and major hubs, the development promises exceptional connectivity and a luxurious lifestyle experience. This ambitious project reflects Birla Estates' expanding footprint in the luxury real estate market.
JM Financial Group has announced a strategic shift from traditional lending to Alternative Investment Funds (AIFs) and syndications in response to market challenges like increased competition and regulatory uncertainties. This move aims to leverage strong client relationships and raise funds for real estate projects. At the end of March 2024, JM Financial's wholesale lending book decreased to INR 4,917 crore, down 42% from INR 8,445 crore a year ago. Transitioning to an investment banking-led distribution model, JM Financial seeks to connect investors with real estate opportunities. This shift reflects broader industry trends, with AIFs gaining popularity in real estate financing in India. Notably, several developers like Macrotech Developers, Lodha Group, Mahindra Lifespace Developers Limited, and Brigade Group successfully raised funds through AIFs for key projects, showcasing the effectiveness of this financing model.
• A residential flat spanning 2,520 square feet sold in Mahindra Belvedere Court in Mumbai's Mumbai Central for INR 5.6 crores
• A residential flat spanning 1,354 square feet sold in Shree Mount Resort in Mumbai's Chembur for INR 5 crores
Ready reckoner rate, also known as circle rate, is the minimum selling price of a property, set by the State Government. It is the minimum value of an asset, at which it must be registered at the time of its transfer. It is used for the calculation of stamp duty, property tax and various other registration fees. The Ready Reckoner rate is updated periodically by the State Government to reflect the current market conditions. Individuals selling or buying properties at a rate less than the prevailing ready reckoner rate can be penalised by authorities.
The Suraksha Group is set to pay the first instalment of INR 133 crore to the Yamuna Expressway Industrial Development Authority (YEIDA) before August 24. This payment is a crucial step in the ongoing resolution process. The Suraksha Group's commitment to making this payment highlights progress in their financial obligations. Meeting this deadline signifies attachment to the agreed-upon terms, demonstrating a positive stride towards resolving financial matters with YEIDA. The payment of INR 133 crore within three months marks a significant development in the ongoing discussions between Suraksha Group and YEIDA, contributing to the compensation to farmers and continued progress of the resolution process.
In the top seven cities, the number of unsold homes has increased by 24%. However, the time it takes to sell these homes has decreased by 31%. This means while there are more unsold properties, they are being sold faster than before. The real estate market is showing mixed signals with an increase in available homes but a quicker turnover rate. This could indicate growing demand or more effective selling strategies. The housing market is experiencing significant changes in both supply and sales speed by reflecting the dynamic nature of the real estate market, suggesting that buyers are more active, and sellers are adapting quickly.
Total Environment secures over INR 1600 crore to complete and deliver 12 million sq. ft. of projects
Total Environment, a Bangalore-based real estate developer, secures over INR 1,600 crore funding, accelerating residential project delivery across Bangalore spanning 12 million sq. ft. The funding, sourced from top banks, comes after robust residential sales performance. Founder Kamal Sagar attributes their strategic exit from expensive debt to sales focus and market uptrend, enabling loans at lower interest rates (9.7% to 12.5%). This shift from higher-interest investments marks Total Environment's transition, aiming to deliver 100 homes monthly. The move aligns with the booming Indian residential sector, witnessing heightened sales and increased investments, positioning Total Environment advantageously in Bangalore's competitive market.
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Bangalore-based Gopalan Enterprises plans to invest INR 2,000 crore to develop a 20 million sq. ft office portfolio, aiming to increase annual rental income to INR 500 crore within four to five years. This strategic move addresses the rising demand for large corporate campuses. With prestigious clients like Oracle, Samsung, Google, and TCS, Gopalan focuses on key locations like Whitefield and Outer Ring Road in Bengaluru. Additionally, they are expanding their aerospace park to 1 million sq. ft and diversifying into various sectors, positioning themselves for growth in real estate, aerospace, education, and more.
The Goa Town and Country Planning (TCP) department has revamped its land use modification procedure, simplifying the process for developers and individuals. Within Goa's 550-acre regional or outline development plans, changes over 500 square meters are now scrutinized by the Chief Town Planner (Land Use), streamlining approvals. Public participation remains vital, with a 30-day window for suggestions or objections post-approval. Fees range from INR 500 to INR 50,000 based on land size, and zone change fees from INR 50 to INR 400 per square meter. This new system aims to expedite development while ensuring responsible land use and public engagement.
Hundreds of buyers in Noida's YEIDA NRI Township project await plot registry for over 13 years, encountering fresh obstacles. YEIDA mandates additional compensation for farmers and higher lease rent before resuming registry, following SDS Infracon's failure to clear INR 700 crore dues. Buyers also need an NOC from SDS Infracon, complicating matters. Despite promises of amenities, residents lack essential services. Increased farmer compensation and NOC requirements escalate financial burdens on buyers. The NRI Township Yamuna Plots Owners Association urges YEIDA to hold the developer accountable and prioritize buyer welfare. Uncertainty looms over the project's future as buyers await resolution.
The Ahmedabad property market is thriving, with a 10% rise in average prices over the past year and a 45% increase since March 2019. Factors like strong developer credibility, timely project completions, and transparent financing are driving positive buyer sentiment. Despite a 64% drop in new property launches, home sales have surged by 78%, indicating healthy demand. The Gujarat International Finance Tec-City and infrastructure upgrades support long-term growth. Experts predict sustainable growth with a stable government post-election and a positive policy environment, making Ahmedabad a hotspot for homebuyers and investors.
Blackstone has sold 15.08% of its stake in IT firm Mphasis, amounting to 2.85 crore shares, through a block deal on the NSE. This transaction generated INR 6,735 crore, making it the year's second-largest block deal after British American Tobacco's INR 17,485 crore sale in ITC. Blackstone initially acquired a 60.48% stake in Mphasis in 2016 for INR 5,466 crore, with their investment value growing over 400 times since. While still holding 40.37%, this sale marks a strategic shift. Institutional investors' participation in the block deal underscores confidence in Mphasis's future prospects.
Deputy Chief Minister D K Shivakumar of Karnataka has issued a reminder to property owners in Bengaluru regarding the ongoing 'One Time Settlement' (OTS) window for outstanding property tax payments. The scheme, closing on July 31, offers a 50% reduction in penalties and a waiver of interest payments. Despite this opportunity, over 4 lakh property owners are yet to participate, out of approximately twenty lakh properties eligible for the scheme. Shivakumar stressed the importance of tax compliance, warning of repercussions for defaulters after August 1. The digitization process of properties is underway to facilitate easier tax compliance. Additionally, Shivakumar addressed concerns about unauthorized flex banners, urging strict action and encouraging public complaints through the BBMP helpline.
As Hyderabad's IT sector thrives, multinational companies are seizing the opportunity, leasing over 8.7 lakh square feet of office space across the city. Key players include Qualcomm, LTIMindtree, IBM India, and S&P Capital IQ India. Qualcomm leads with 4.14 lakh sq. ft in Hitech City's Skyview, followed by IBM India and S&P Capital IQ India in the same building. LTIMindtree secures 1.09 lakh sq. ft. These five-year leases with built-in rent increases signify the city's robust commercial real estate market. Moreover, Hyderabad's residential sector, particularly in West Hyderabad, has witnessed a significant uptick, underlining the city's promising growth trajectory.
Phoenix Mills Limited plans to expand with a third mall in Thane, Mumbai Metropolitan Region (MMR), as well as a potential hotel. It also aims to extend its Phoenix MarketCity Mall to Bengaluru. Phoenix Mills now operates two properties: Phoenix Palladium in Lower Parel, Central Mumbai, which houses a St Regis Hotel and a residential tower, and Phoenix MarketCity in Kurla, Mumbai. These additions seek to capitalise on Thane's growth and Bengaluru's dynamic market, expanding retail and hospitality options while driving economic growth and employment.
Emaar Properties, a leading UAE real estate developer, has announced a 1.5-billion-dirham (USD 408 million) expansion of Dubai Mall, the world’s largest shopping centre by total area. The expansion will add 240 luxury stores and new dining options. Emaar’s founder, Mohamed Alabbar, praised the project as enhancing one of the world’s most visited sites. Despite a global decline in brick-and-mortar retail, UAE retail spending rose 14% last year, driven by increases in fashion, general retail, and leisure and entertainment. Emaar’s portfolio includes iconic projects like the Burj Khalifa, showcasing its commitment to luxury and innovation.
Moody's is reviewing the ratings of six U.S. regional banks due to substantial commercial real estate (CRE) exposure. These banks—First Merchants Corp, F.N.B. Corp, Fulton Financial Corp, Old National Bancorp, Peapack-Gladstone Financial Corp, and WaFd—face asset quality and profitability pressures from prolonged high interest rates. Investor scrutiny has intensified following increased non-performing CRE loans. The potential downgrades highlight the need for careful risk management and could significantly impact the banks' financial stability and borrowing costs.
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