Weekly Real Estate News Tracker – 9 July 2023
MUMBAI UPDATES
1. Ajay Devgn buys office properties in Mumbai’s Andheri for over Rs 45 crore
Bollywood actor, producer and director Ajay Devgn has purchased five office properties in two separate transactions for over Rs 45 crore in the Oshiwara locality of Mumbai’s western suburb Andheri. All five properties are spread over 13,293 sq ft across two floors in an under-construction commercial project Signature of realty developer Veer Savarkar Projects.
2. Lodha Group records highest-ever Q1 pre-sales of Rs 3,353 crore
Lodha Group, listed as Macrotech Developers, has recorded its highest-ever first quarter pre-sales at Rs 3,353 crore, marking a robust start to the financial year 2023-24. The company has also added five new projects with a potential gross development value of Rs 12,000 crore across different micro-markets during the quarter. Given the pace of new project additions to its portfolio and a strengthening pipeline of business development opportunities, the company expects to exceed its full-year guidance for the same.
Read more at: Lodha Group records highest-ever Q1 pre-sales of Rs 3,353 crore (moneycontrol.com)
3. Macrotech Developers inks pact for mixed-use project in Mumbai’s Andheri
Realty developer Lodha’s listed company Macrotech Developers has entered into an agreement with Havemore Realty to develop the free-sale component of a 1.4-million-sq-ft Mumbai project in which HDFC was an investor. HDFC that has merged with HDFC Bank will get a certain built-up area as part of repayment of its investment made earlier.
Read more at: macrotech: Macrotech Developers inks pact for mixed-use project in Mumbai’s Andheri – The Economic Times (indiatimes.com)
4. Ajmera Realty & Infra Q1 sales Rs 225 cr, down 44% on year, up 60% sequentially
Ajmera Realty & Infra India Ltd on Thursday reported a 44 per cent decline in its sales bookings to Rs 225 crore in the first quarter of this fiscal year. Its sales bookings stood at Rs 400 crore in the year-ago period. The carpet area sold fell 14 per cent to 1,35,460 square feet in April-June period of this fiscal year from 1,57,438 square feet in the corresponding period of the previous year, according to a regulatory filing. The Mumbai-based company is focused on development of luxury and mid-luxury residential projects.
Read more at: Ajmera Realty & Infra India Q1 sales bookings down 44 pc to Rs 225 crore (business-standard.com)
5. Hinduja Realty Ventures leases 3 floors in Tata Communications’ office tower in Mumbai’s BKC
The Hinduja Group’s property arm, Hinduja Realty Ventures, has leased an office space from Tata Communications Limited in what is perhaps the country’s costliest central business district – Bandra Kurla Complex (BKC) in Mumbai. The lease is for five years, and the monthly rent for the 46,000 usable sqft will be Rs 1.15 crore per month, documents accessed by Propstack show. Hinduja Realty Ventures have leased the first, second and third floors of Tata Communications’ Tower C in BKC. The security deposit is around Rs 6.96 crore, documents show.
Read more at: Tata Communications leases office space to Hinduja Realty in Bandra Kurla Complex in Mumbai (moneycontrol.com)
6. Kartik Aaryan buys luxury apartment for Rs 17.50 crore in Mumbai’s Juhu
Bollywood actor Kartik Aaryan has purchased a luxury apartment for Rs 17.50 crore in the plush Juhu locality of Mumbai. The house with nearly 1,594 sq ft carpet area is on the second floor of the residential tower Siddhi Vinayak Building in Presidency Society where the actor’s family already owns an apartment.
The deal values the apartment at nearly Rs 1.10 lakh per sq ft, making it one of the costliest deals in the locality known for the properties of Bollywood actors, directors, producers and industrialists.
Read more at: juhu: Kartik Aaryan buys luxury apartment for Rs 17.50 crore in Mumbai’s Juhu – The Economic Times (indiatimes.com)
NCR UPDATES
1. Amalgamation of two flats under FCFS housing scheme allowed: DDA
Amalgamation of two adjacent flats offered under the recently launched new scheme. The scheme is receiving “good response” from the general public and around 4,000 registrations have been made so far. The DDA has allowed the amalgamation of two flats offered under the ongoing scheme, to give applicants flexibility to increase the size of their flats.
Read more at: Amalgamation of two flats under FCFS housing scheme allowed: DDA, ET RealEstate (indiatimes.com)
2. Over Rs 1,100 crore property tax collected in April-June quarter: Delhi mayor
The Municipal Corporation of Delhi (MCD) has collected over Rs 1,110 crore as property tax in the April to June quarter, a surge of over 40 per cent from the same period the previous year. In 2021-22, Rs 695 crore was collected as property tax, while Rs 540 crore was collected in 2020-21.
Read more at: Over Rs 1,100 crore property tax collected in April-June quarter: Delhi mayor, ET RealEstate (indiatimes.com)
3. M3M money laundering case: “Drastic powers given to ED,” Realty group on agency’s radar tells SC
The Supreme Court on Tuesday was told that the Enforcement Directorate (ED) has been given “drastic powers” in investigating money laundering cases and these powers need to be reined in. Salve and senior advocate Mukul Rohatgi were representing M3M directors, Basant Bansal and Pankaj Bansal who were arrested in a money-laundering probe related to a bribery case against a former judge. The bench in its order noted that the Bansal brothers would now be moving to the Punjab and Haryana High Court for anticipatory bail and disposed of their pleas.
4. UP-RERA asks Ajnara Realtech to complete stuck project near Noida by June 2025
Real estate regulator in Uttar Pradesh has asked realty firm Ajnara Realtech to complete its stalled housing project in Greater Noida, comprising nearly 600 flats by June 2025. The project ‘Ajnara Le Garden Phase-3’, located in Noida Extension (Greater Noida -West), was launched in 2014 but could not be completed. There are 585 flats in four towers in this project, of which 476 units have been sold to customers.
5. Hero Realty to launch projects spanning four mln sq. ft. in FY24
Hero Realty plans to launch real estate projects which could deliver an expected revenue of Rs 3,500 crore in the current financial year. These projects spanning around four million sq. ft. is part of the developer’s aggressive expansion strategy. Further, the real estate firm aims to invest Rs 1,000-1,200 cr focusing on residential development, with a significant sales volume expected in the next two years. Its recent joint venture project along Dwarka Expressway, has a development potential of 2.2-2.3 million sq. ft. withan anticipated turnover of Rs 2,000 crore.
Read more at: Hero Realty to launch projects spanning four mln sq. ft. in FY24 (projectstoday.com)
6. Property mutation process made online in Haryana
Haryana Chief Minister Manohar Lal Khattar on Thursday announced the launch of a portal for the automatic generation of mutation after land registry. The launch of the portal, the ‘inteqal’ (mutation) of any property or land will be done immediately after its registration. If anyone raises any objection within 10 days, the mutation of land will be considered as contested. If no objection is raised, then automatically the mutation will be done.
Read more at: Property Mutation In Haryana: Property mutation process made online in Haryana, ET RealEstate (indiatimes.com)
7. DDA allocates 1,078 EWS flats in Jwalapuri Bagh and Ashok Vihar clusters
The Delhi Development Authority (DDA) has allocated 1,078 economically weaker sections flats under the Seetu Punarwas Yojana, a scheme aimed at replacing slums with housing. The DDA has allocated the flats to eligible families in the Jwalapuri Bagh and Ashok Vihar clusters. Demand-based allocation letters were issued to all these families on June 27.
Read more at: DDA Flats: DDA allocates 1,078 EWS flats in Jwalapuri Bagh and Ashok Vihar clusters, ET RealEstate (indiatimes.com)
8. Six flats razed in Antriksh Golf View 1, builder’s men & Noida authority team come to blows
The Noida Authority on Friday demolished six flats-cum-shops in Sector 78’s Antriksh Golf View 1 society. The drive was suspended after representatives of the builder tried to stop the demolition and came to blows with Noida officials.
Read more at: …6 Flats Razed In Condo, Builder’s Men & Noida Team Come To Blows, ET RealEstate (indiatimes.com)
INDIA UPDATES
1. Share of housing loans in total advances rises to 14.2% in 11 years: RBI report
The share of residential housing loans in total advances has increased over the last eleven years to 14.2 per cent in March 2023 from 8.6 per cent in March 2012 , as per the Reserve Bank’s latest Financial Stability Report (FSR). It also said the housing sector is witnessing a healthy growth with sales growing by 21.6 per cent in the fourth quarter (January-March) of 2022-23. In addition, to rising sales , new launches also maintained healthy growth, reflecting strength in demand by end-users.
Read more at: Share of housing loans in total advances rises to 14.2% in 11 years: RBI report, ET RealEstate (indiatimes.com)
2. NDR Warehousing secures ₹500 crore from Investcorp
Logistics infrastructure company NDR Warehousing has secured ₹500 crore funding from Bahrain-based investor Investcorp ahead of its proposed infrastructure investment trust (InvIT). NDR Warehousing has filed a draft placement memorandum (DPM) with markets regulator Sebi to raise approximately ₹1,165 crore through an InvIT, intending to utilise the funds to repay certain construction-related loans.
Read more at: NDR Warehousing secures ₹500 crore from Investcorp – The Economic Times (indiatimes.com)
3. Senior Flipkart executive buys property in Adarsh palm retreat villa for Rs 15.5 crore
Flipkart’s senior vice president Amitesh Kumar Jha has bought a villa in Bengaluru’s Adarsh Palm Retreat for about Rs 15.5 crore.The deal was registered in May and a stamp duty of over Rs 79 lakh was paid, conveyed by a sales deed document shared by Zapkey, a real estate data and home sale guarantee platform. The property, bought from Lotuspool Capital directors Subbarao Telidevara and Shobhana Krishnaswamy, has a super built-up area of 4,245 sq ft and a land area of 6,300 sq ft.
4. Coliving operator Setll to double the capacity to 5,000 beds
Coliving operator Settl has planned to expand its capacity by more than 2.5 times to 5,000 beds by the end of this fiscal and is looking to enter the Noida, Pune and Chennai markets, a senior executive said. The company, which focuses on providing rental accommodations to working professionals, currently has around 2000 beds across Bengaluru, Gurugram and Hyderabad across 40 centres. The Bengaluru-based startup charges between Rs 12,000 and Rs 18,000 per-bed.
Read more at: setll: Coliving operator Settl to double the capacity to 5,000 beds – The Economic Times (indiatimes.com)
5. Holiday home ownership platform Equity Address in talks to raise $2.5 million
Equity Address, a fintech platform for second home ownership and investments is in talks to raise $2.5 million, against 20% stake in the company to strategic investors. Equity Address Private Limited is the parent company of two brands Equity Address, a tech enabled marketplace that modernizes real estate co-ownership in second homes and hospitality property management arm, The Venya, marketplace for holiday home rentals across the globe.
6. Piramal Capital & Housing Finance sells bad loans to Omkara ARC
Piramal Capital & Housing Finance has sold a loan outstanding pool of ₹3,656 crore bad loans to Omkara ARC for ₹625 crore, said two sources close to the development. The sale, finalised last week, marks a recovery of 17% for Piramal. The pool consists of accounts acquired along with Dewan Housing Finance Limited (DHFL) and Piramal’s own loan book.
Read more at: Piramal Capital & Housing Finance sells bad loans to Omkara ARC, ET RealEstate (indiatimes.com)
7. Office leasing by engineering & manufacturing firms tripled in Q2 2023: Colliers
Q2 2023 recorded 14.6 mn sq ft of gross absorption across the top 6 cities, rising by 2% YoY, making a strong comeback after a cautious first quarter. Amidst global economic headwinds, demand continued to grow on a sequential basis, indicating a continued occupier confidence, according to Colliers’ Q2 2023 Pan India Office Market Snapshot (Grade A).
Bengaluru and Chennai led the demand during Q2 2023, accounting for about half of the total leasing across top 6 cities. After witnessing lackluster demand for the last few quarters, Chennai saw a three-fold rise in demand during Q2 2023 led by enhanced occupier activity.
Read more at: Office leasing by engineering & manufacturing firms tripled in Q2 2023: Colliers | The Financial Express
8. Office rent stable in Apr-Jun on flat demand, 32 pc rise in new supply across top 6 cities: Colliers
Average office rentals remained stable during April-June at Rs 95 per square feet across six major cities as new supply rose 32 per cent, while demand grew by a modest 2 per cent, according to Colliers India. Real estate consultant Colliers India released its quarterly data of six major office markets — Bengaluru, Delhi-NCR, Mumbai, Chennai, Hyderabad and Pune
9. Puravankara records highest ever sales value since inception, at Rs 1,126 crore in Q1
Bengaluru (Karnataka) [India], July 6: Puravankara Limited (BSE:532891), one of India’s most trusted and admired real estate developers, has recorded a strong sales performance in Q1FY24, with sale value of Rs. 1,126 crores, the highest for any quarter and Q1 since inception, the company said in its quarterly operational update.
Read more at: Puravankara displays strong performance in Q1, records Rs 1,126 crores in sale value – ThePrint – ANIPressReleases
10. B L Kashyap & Sons Ltd expects 24% growth in FY24
B L Kashyap & Sons, one of the leading civil, engineering and construction company, expects a 24% growth in revenue to Rs1300 crore in FY24, led by commercial and government projects. The firm has secured new orders worth Rs 700 crore in the last six months, including the redevelopment of the railway in railway project at Bijwasan from the Railway land development authority, Embassy business hub phase II and Nzuri business park in Pune.
Read more at: b l kashyap share price: B L Kashyap & Sons Ltd expects 24% growth in FY24 – The Economic Times (indiatimes.com)
GLOBAL UPDATES
1. Namdar Venture Gets Distressed Joilet Mall for $31M
Namdar Realty Group’s next regional mall turnaround attempt will come in Joliet. The New York-based distressed retail assets specialist bought the troubled Louis Joliet Mall in Chicago’s southwest suburbs for $31.4 million from a lender that took back the property from a venture of Barry Sternlicht’s Starwood Capital, according to Will County records. The previous owner surrendered the massive asset after missing payments on an $85 million loan in 2020. That puts Namdar’s basis at about one-third of Starwood’s, which saw an appraised value of $131.8 million in 2012, when it took out its ultimately doomed loan.
Read more at: Namdar Venture Gets Distressed Joliet Mall for $31M (therealdeal.com)
2. Julia Koch sells Upper East Side townhouse for $ 41 million
Julia Koch, widow of billionaire David Koch, is offloading some of the couple’s pricey Manhattan properties. The philanthropist and socialite sold their Upper East Side townhouse to an unknown buyer in a $41 million off-market deal, the Wall Street Journal reported. Last year, Koch listed their 18-room duplex at 740 Park Avenue for $48 million. The Kochs paid $40.25 million for the East 76th Street townhouse when they purchased it from real estate magnate Joseph Chetrit in 2018. Chetrit originally sought $51 million for the 15,000-square-foot townhouse. The 36-foot-wide, six-story mansion has eight bedrooms and was renovated by architect Peter Marino. It has a garden on the first floor and a grand open staircase. The lower level has a custom media room, spa and sports court.
Julia Koch Sells Upper East Side Townhouse For $41M (therealdeal.com)
3. 70% of Central London properties sold this year bought with cash
More than 70% of “prime central London” properties sold so far this year have been bought entirely in cash, according to a report by estate agents Savills that fuels concerns that rich overseas buyers are snapping up properties at the expense of working Londoners. A total of 71% of prime central London – an estate agent term for an area that stretches from Chelsea to Camden and Notting Hill to Westminster – have been bought mortgage-free in the seven months from January. That compares with about 35% for the UK as a whole. It comes as soaring inflation has led the Bank of England to push interest rates to a 13-year high of 5%, which has in turn led banks to raise mortgage rates, making large home loans increasingly difficult to afford.
Read more at: 70% of central London properties sold this year bought with cash – Savills | London | The Guardian
4. China must rethink its reliance on property sales to see real growth
University graduates are being hit especially hard by China’s economic doldrums, with youth unemployment hovering at or above 20%. For those who have jobs, a big reason for their reluctance to spend big is economic security. They’re concerned about the potential to join the ranks of the unemployed, and their household’s largest single investment is, in many cases, no longer worth what they thought it would be. The real estate sector is under great stress in China. According to a local real estate agent, sales volumes have halved in the area in recent years. Entire new housing estates where work has stopped can be found in all directions. Those that are finished don’t have much sign of life in them.
Read more at: China must rethink its reliance on property sales to see real growth – BBC News
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