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Mumbai's real estate sector has recorded a notable 12% year-on-year increase in property registrations for June 2024, driven by strong demand and economic stability, reports Knight Frank. Under the Bombay Municipal Corporation, Mumbai saw 11,600 registrations this June, up from 10,319 last year, generating over INR 1000 crore for the state. Mr. Prashant Sharma of NAREDCO Maharashtra highlights robust market confidence, while Mr. Pritam Chivukula of CREDAI-MCHI notes growing homeowner sentiment. Analysts credit economic stability for this record-setting June, with expectations high for sustained growth. This surge underscores Mumbai's resilience and attractiveness in real estate, backed by ongoing policy support and economic vigour.
As Finance Minister Nirmala Sitharaman prepares to present the first budget of Prime Minister Narendra Modi's third term, the real estate sector anticipates pivotal measures for growth and stability. Key stakeholders, including NAREDCO Maharashtra and CREDAI-MCHI, emphasise priorities such as enhanced tax incentives for homebuyers, a streamlined single-window clearance system, and continued focus on affordable housing under PMAY. Addressing liquidity challenges, reforms in land acquisition, and promoting digital transformation are also critical. Stakeholders advocate for policies supporting sustainable development and infrastructure enhancement to bolster economic recovery and ensure robust growth in the sector.
Wave Group, led by Mr. Rajiv Gupta, stresses the need for substantial government backing in the upcoming Union Budget to bolster affordable housing initiatives amidst India's flourishing real estate sector. Despite global economic challenges, Wave Group highlights the sector's resilience and rising demand for sustainable homes post-Covid. With India facing a deficit of 25 million homes, Wave Group calls for enhanced transparency, business ease, lower lending rates, and tax incentives. Known for diverse ventures from real estate to healthcare, Wave City exemplifies innovation with AI technology investments for heightened security and smart city features, aligning with environmental sustainability goals and national cleanliness campaigns.
• A residential flat spanning 1,295 square feet sold in Narang Privado - B in Thane's Waghle Estate for INR 3.17 crores
• A residential flat spanning 1,278 square feet sold in Hiranandani Belicia in Thane's Panchpakhadi for INR 2.72 crores
Multi-Modal Logistics Park (MMLP) refers to a freight-handling facility encompassing a minimum area of 100 acres (40.5 hectares), with various modes of transport access. It comprises mechanized warehouses, specialized storage solutions such as cold storage, facilities for mechanized material handling and inter-modal transfer container terminals, and bulk and break-bulk cargo terminals. It is a type of Logistics Park where various value-added services are rendered in addition to rail/road-based transportation. The purpose of MMLP is to reduce coordination among different parties during transfer of cargo from one mode to another.
Mumbai's real estate market is set for a transformation as Paradigm Realty embarks on a monumental INR 4,500 crore redevelopment project across 11 housing societies in Bandra and Kandivali. This ambitious initiative promises modern luxury living with amenities like landscaped gardens and enhanced security, a significant upgrade from ageing structures. Beyond individual benefits, the project highlights Mumbai's focus on urban renewal amid land scarcity. It will add over 2.8 million square feet of living space, easing pressure on the city's housing market. The deal, boosted by Maharashtra's stamp duty waiver for society members, marks a pivotal step towards a more modern and sustainable cityscape.
Sattva Group and Bain Capital have announced a partnership to accelerate the growth of Colive, Sattva's co-living subsidiary. This joint venture will see an investment of INR 12,000-14,000 crore over the next 2-3 years to develop properties tailored for the co-living market. The initiative aims to build "built-to-suit" assets with an estimated pre-sales value of INR 6,000-6,500 crore in FY25, targeting young professionals and students. This partnership leverages Sattva's extensive real estate expertise and Bain Capital's financial strength, positioning Colive to capture a larger share of India's booming co-living market.
Greater Noida West, home to over 3 lakh residents, is struggling with dissatisfaction over a newly announced sub-registrar's office located several kilometres away in Dadri. Dubbed "Dadri 2," this office aims to handle property registrations for 26 sectors in Greater Noida West and 28 nearby villages. However, poor public transport between Greater Noida West and Dadri makes the journey inconvenient and costly, especially for those without vehicles. Although the Uttar Pradesh government initially planned a closer office, protests from Dadri lawyers led to the current location. Officials are considering special registry camps in high-rise buildings as a potential solution.
The Karnataka government is actively seeking a new chairperson for the Karnataka Real Estate Regulatory Authority (K-RERA) following the retirement of HC Kishore Chandra in May 2024. Homebuyer associations, representing thousands, are urging the government to prioritise candidates with real estate expertise, citing past appointments of non-specialists, such as retired police officers, as a hindrance to K-RERA's effectiveness. The associations have highlighted significant issues, including a backlog of over 5,000 pending cases and inadequate enforcement of orders. This situation highlights the urgent need for a knowledgeable leader to streamline operations and protect home buyer interests.
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The Uttar Pradesh government plans to create a housing development authority for Shahjahanpur, a city with over 3.5 lakh residents. This initiative aims to manage the city’s growth amid rising industrial activity and population. The newly developed master plan outlines Shahjahanpur’s growth trajectory up to 2031. The authority will oversee construction projects and enforce building regulations, improving urban services and infrastructure. This could attract more investment and diversify housing options. Additionally, unused government buildings will be repurposed, and building by-laws revised to boost the hospitality sector, fostering Shahjahanpur’s tourism industry centred on historical and cultural attractions.
The Adani Group is making a significant move into pumped storage hydropower (PSH) with a planned investment of INR 225,000 crore to INR 275,000 crore (around USD 3 billion). This ambitious project aims to establish India's clean energy leadership and secure Adani's position in the growing renewable energy market. Adani Green Energy Ltd (AGEL) plans to set up 5GW of PSH capacity within five years, eventually expanding to 25GW, boosting AGEL's green energy capacity to 70GW. The initial focus will be on Maharashtra, Andhra Pradesh, Tamil Nadu, and Telangana. Construction has begun on a 500MW pilot project in Andhra Pradesh, scheduled for completion by FY27.
Armee Infotech Ltd., a Gujarat-based IT infrastructure solutions provider, has filed for an initial public offering (IPO) with the Securities and Exchange Board of India (SEBI) to raise INR 250 crore. The IPO will be a fresh issue of equity shares, with no offer for sale component. The funds will be used to increase working capital (around INR 50 crore), pay off existing debt (around INR 75 crore), and for general corporate purposes, including investments in new technologies and market expansion. Armee Infotech serves government and private sector projects, focusing on IT hardware, software, smart classrooms, digital infrastructure for public systems, and digitalisation of primary agriculture credit societies.
A recent report by the Ministry of Statistics and Programme Implementation (MoSPI) reveals significant challenges in India's infrastructure development, particularly for large-scale projects with an investment of INR 7,150 crore or more. Among 1,817 monitored projects, 458 are experiencing cost overruns, with total anticipated costs ballooning by INR 25.71 lakh crore, a 20.7% increase from initial estimates. Additionally, 554 projects are facing delays. Common issues include land acquisition delays, project plan modifications, and raw material cost increases. Despite these hurdles, 51.3% of the anticipated costs, amounting to INR 21,707,190.15 crore, have been spent, indicating progress amidst the challenges.
Spiritual tourism is driving a surprising trend in India's real estate market, boosting Tier II and III cities as major growth centres. A new Colliers India report identifies 17 emerging cities set to benefit from this surge. While major metros like Mumbai and Delhi have traditionally powered India's economy, improved infrastructure, affordable living costs, and government initiatives are now attracting businesses and residents to smaller cities. Nearly 60% of domestic tourists visit spiritual destinations, a USD 60 billion industry expected to reach USD 130 billion by 2032. This growth, coupled with rising remote work, e-commerce, and digital infrastructure, is transforming India's real estate landscape.
Bangalore's logistics sector gets a boost as CJ Darcl Logistics leases 125,000 sq ft of warehousing space from IndoSpace. The nine-year agreement, located in IndoSpace's Narasapura Industrial and Logistics Park, strategically enhances CJ Darcl's operational capabilities. This partnership leverages IndoSpace's extensive network across 11 cities, offering CJ Darcl access to efficient logistics infrastructure crucial for expanding their Warehousing and Distribution (W&D) services. The move underscores Bangalore's role as a key logistics hub in India, supporting economic growth and meeting growing demand for high-quality logistics solutions amid rising e-commerce activity.
Hyderabad is undergoing a monumental transformation aimed at positioning itself as a global city, driven by ambitious developmental initiatives under Telangana Chief Minister A Revanth Reddy's leadership. Key projects like the Musi Riverfront Development, Regional Ring Road (RRR), and Metro Rail expansion are pivotal in enhancing infrastructure and attracting global investments. Discussions with Cushman and Wakefield Asia Pacific highlighted Hyderabad's robust growth across real estate sectors, underscoring its emergence as a top destination for commercial and residential developments. With a focus on sustainability and strategic partnerships, Hyderabad aims to set new benchmarks in urban development, fostering economic prosperity and improving residents' quality of life.
The government in Varanasi has approved a INR 2,869.65 crore expansion plan for Lal Bahadur Shastri International Airport, nearly tripling its passenger capacity. Currently handling 3.3 million passengers annually, the airport will expand to accommodate 9.9 million passengers per annum (MPPA). The new 75,000 square meter terminal will handle 6 MPPA and 5,000 passengers per peak hour. A runway extension to 4,075 meters will support larger aircraft. Prioritizing sustainability, the project includes solar energy use, waste recycling, and natural lighting. This expansion is expected to boost tourism and the local economy, making Varanasi a more attractive destination.
The Uttar Pradesh Cabinet has approved a detailed project report for extending the Noida Metro's Aqua Line from Sector-142 to Delhi Metro's Botanical Garden station, costing INR 2,254.35 crore. The 11.56-kilometer extension will feature eight new stations, enhancing connectivity and urban mobility across Noida. This project is anticipated to boost the real estate sector, with increased property demand and potential value appreciation in sectors 44, 93, 97, 105, and 108. With an estimated initial ridership of 80,000 commuters, the extension promises seamless interchange between the Aqua and Blue Lines, directly connecting to Indira Gandhi International Airport via the Magenta Line.
The Hong Kong court has delayed the liquidation hearing for Kaisa Group until August 12 amidst its efforts to restructure a substantial USD 12 billion offshore debt. This postponement offers temporary respite as Kaisa navigates negotiations with bondholders to finalise a restructuring agreement. Chairman Kwok Ying Shing's return to mainland China underscores the seriousness of these efforts, aimed at securing regulatory approvals in Shenzhen. Originally targeting a May conclusion, Kaisa Group faces complexities in the restructuring process, critical for managing its extensive real estate portfolio and meeting financial obligations. Stakeholders closely monitor developments for insights into Kaisa's financial stability and market outlook.
Chinese property developer Shimao Group has been granted a temporary reprieve, with a Hong Kong court adjourning a potential liquidation hearing to July 31. This extension gives Shimao time to negotiate a debt restructuring plan with creditors, crucial to addressing its massive USD 11.5 billion offshore debt. The company faced liquidation from China Construction Bank (Asia), but is now revising its debt restructuring proposal to make it more appealing. The outcome, pivotal for Shimao's survival, could set a significant precedent for China's real estate market, impacting how other developers manage debt in a struggling market.
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5moVery informative!