HomeGlobalWeekly Real Estate News Tracker – 16 July
Weekly Real Estate News Tracker – 16 July
July 16, 2023
1. Axis AMC leases 2 floors in Lodha’s Mumbai tower
Axis Asset Management Company, the mutual fund investment entity of Axis Bank, has taken on lease two floors in Macrotech Developers’ commercial tower in Mumbai’s Lower Parel to set up its head office. The company’s headquarters — currently in Wadia International Center on Worli’s Budhkar Marg — is expected to be shifted to this place soon, in line with its expansion and consolidation plan.
2. MICL Real Estate acquires development rights of 10 housing societies in Mumbai’s Ghatkopar
Infrastructure developer Man Infraconstruction’s property development entity MICL Real Estate has acquired development rights of a total 10 adjoining housing societies in Ghatkopar suburb of Mumbai. The company has acquired the rights to redevelop these housing societies through its subsidiary MICL Creators LLP wherein it holds 60% partnership interest. The entire project spread over a total of more than 3 acres is estimated to have a total development potential of 1.3 million sq ft and free-sale component of over 4 lakh sq ft.
3. Prestige Estates acquires DB Realty’s south Mumbai land parcel for Rs 704 crore
Realty developer Prestige Estates Projects’ subsidiary Prestige Projects has acquired a prime sea-facing land parcel near Marine Lines and Charni Road in south Mumbai from DB Realty’s subsidiary Marine Drive Hospitality & Realty for over Rs 704 crore. The deal values the plot at over Rs 306 crore per acre, pushing it higher in the tally of most expensive land transactions anywhere in the country.
4. Mumbai realtor illegally sells 82 flats during insolvency process
In a rare development, the promoters of realty developer Rashmi Housing, while the company was still undergoing the Corporate Insolvency Resolution Process (CIRP), sold 82 apartments in the company’s projects in contravention of the law. The tribunal has now set aside the sale of these 82 flats and has also imposed a fine of Rs 3 lakh on each of the promoters. Finance Advisors & Managers and Vista ITCL, formerly an IL&FS trust company, had taken the developer Rashmi Housing to the National Company Law Tribunal (NCLT) following its default in payments.
5. Mumbai: MAHARERA Recovers Rs. 8.73 crore from Developers
The Maharashtra Real Estate Regulatory Authority (MahaRERA) has managed to recover ₹8.73 crore from five developers, who had defaulted on paying compensation to homebuyers, in Mumbai and Pune. In the latest round of recovery, ₹8,72,71,000 have been paid as compensation by five developers from the projects in Mumbai city, suburban Mumbai and Pune against the nine warrants that were issued. Earlier, ₹8.57 crore was recovered towards 20 warrants served to 11 developers.
6. Maharashtra govt accords final nod for Adani Properties’ Dharavi redevelopment project
The government of Maharashtra has accorded the final approval to the much-awaited redevelopment of Asia’s biggest slum, Dharavi, spread over 600 acres of prime land in the heart of the country’s commercial capital, Mumbai. In November 2022, Adani Properties, the real estate development company owned by Gautam Adani-led Adani Group, had emerged as the highest bidder to bag the rights to redevelop the slum.
1. Godrej Properties emerged as the highest bidder for two land parcels in Gurgaon
In a filing at both exchanges, Godrej Properties informed that it had been declared the highest bidder by the Haryana Shehri Vikas Pradhikaran (HSVP) for two luxury group housing plots. The two plots measuring 2.76 acres and 5.15 acres, respectively, are located in the upscale locality of Golf Course Road. According to the filing the two land parcels have a combined estimated revenue potential of approximately Rs 3,100 crore.
2. Delhi- NCR overtakes Beijing and Seoul in flexible office stock in the APAC region: CBRE
Delhi NCR has emerged as 3rd largest city among the 20 Asia-Pacific region (APAC) cities with a flexible office stock of 8.4 mn. sq. ft. overtaking Beijing and Seoul in (Grade A) flexible office stock in the APAC region. Bangalore continues to top the list of APAC cities having the highest flexible stock ahead of 19 major cities. Hyderabad and Mumbai are the other two cities that make it to the list.
3. Gurugram witnessed highest increase in residential property prices among top 10 cities
Property prices in Gurugram has increased the most among top 10 cities with a YoY increase of 12% in Q2 2023, surpassing Bengaluru (9%) and Noida (8%). The residential property market in India experienced an average year-on-year price appreciation of 6% during the April-June period of this year.
4. DDA Housing Scheme 2023: Dwarka flats sold out in hours
More than 900 flats have been booked under a housing scheme of the Delhi Development Authority (DDA) that was launched on June 30, the housing authority said in a tweet. The DDA said flats at Dwarka under the scheme have been completely sold out, and flats at Narela and Rohini were receiving “heavy demand” from the public. The DDA on June 30 had launched on a first-come, first-serve (FCFS) basis a housing scheme that includes 5,500 flats across all categories at various locations in Delhi. Booking of flats commenced from 12 noon onwards on July 10. Registration and booking of the scheme is in progress and people can book flats of their choice online through DDA’s website. The DDA said over 300 flats have been booked at Rohini over 200 at Narela while good demand is also being seen for Jasola, Siraspur and Loknayak Puram flats.
5. Max Estates eyes ₹1,800-cr revenue from its first luxury residential project
Max Estates, the real estate arm of Max Ventures & Industries Limited (MaxVIL), is expecting a revenue of ₹1,800 crore from its first luxury residential project, said MaxVIL managing director Sahil Vachani. The company had acquired 10 acres in Noida through the acquisition of 100% equity in Accord Hotels and Resorts Private Limited, which holds the land as its only asset. With around one million sq ft of saleable area, Max Estates has sold the project, Estate 128, at ₹18,000 per sq ft, making it the costliest project in Noida.
6. MCD’s decision to hike transfer fee to impact property transaction in Delhi
Property transactions in Delhi are set to get costlier, as the unified Municipal Corporation of Delhi (MCD) has increased the transfer fee by 1% on the purchase of properties priced above Rs 25 lakh. Since Delhi is mostly a resale market, brokers said this will impact high-value transactions.
1. Hyderabad: RWAs to mobilise one lakh letters to demand uniform property tax
Representatives of residents’ welfare associations (RWAs) in developing areas have given a call to raise one lakh memorandums demanding uniform property tax assessment system across Hyderabad. Their latest move to escalate the matter is the disproportionate amount of property tax they pay compared to areas under the Greater Hyderabad Municipal Corporation (GHMC).
2. Prestige Group registers 30% jump in sales at of Rs 3914.7 crore in Q1FY24
Real estate major Prestige Estates recorded a 30 per cent jump in sales (booking value) at ₹3914.7 crore compared to last year, while collections (actual money collected) stood at ₹2740.8 crore during the first quarter of FY24. The real estate player sold 2276 units spanning over a 3.83 million sf area in Q1. The company announced its operational performance for the quarter ending June 30, 2023. During the quarter, sales were attributed to 3.83 million in volume, with an average realisation up by 20 per cent to ₹10,244 square feet for apartments and villas and ₹5,007/sft for plot sales (up by 32 per cent yoy).
3. Property Share acquires commercial property in Bangalore for Rs 370 crore
Property Share, a fractional ownership firm, has acquired a commercial property in Bangalore in a deal valued at around Rs 370 crore. Located on Outer Ring Road in Bangalore, Prestige Tech Platina has been leased to a prominent US-based technology company. The purchase price translates to a rental yield of 10.0%, with a 7-year tenant lock-in period. The asset is part of a larger campus that also has US multinationals JP Morgan and Adobe as occupiers.
4. Shriram Housing Finance raises $50 million in its maiden external commercial borrowing
Shriram Housing Finance has raised $50 million in its maiden external commercial as the lender is looking to diversify its funding source. Funds from the ECB will be used for the financing of affordable housing. The mortgage lender, which is part of the Shriram Group, has raised the fund from Canara Bank’s London branch at 200 basis points over Secured Overnight Financing Rate (SOFR).
5. Premium residential market witnesses up to 18% price appreciation
The premium residential market in the major cities witnessed 3-18% price appreciation compared to H1 2022, according to the latest report by Savills India, a global property consulting firm. Under-construction projects in these cities have witnessed higher appreciation in capital values as compared to completed projects. Additionally, with the residential market picking pace and capital values accelerating in the recent months, buyers are prompted to make buying decisions as they anticipate further strengthening of prices.
6. Institutional investments into the office sector touch $1.8billion; highest over the last 10 quarters
In Q2 of 2023, institutional investments in the office sector reached US$ 1.8 billion, the highest over the previous 10 quarters, indicating continued investor confidence in the sector’s potential for growth and return. The segment also experienced a 2.5X year-over-year (YoY) growth in H1 of 2023, reaching US$ 2.7 billion, with the office sector accounting for the majority of inflows at 74%, closely followed by the residential sector at 12%. Global investment firms including GIC, CapitaLand India Trust, Bain Capital, CPPIB, and PAG Credit and Markets continue to be engaged in the sector and have closed some sizable transactions. On the strength of expanded opportunities, steady demand, and strong growth prospects over the following 2-3 years, institutional investors have placed their bets in the office sector. In spite of a sluggish global economy, institutional investment inflows into Indian real estate, led by the office sector, increased 43% year-over-year to US$ 3.7 billion in the first half of 2023. This investment has accounted for 75% of all inflows in 2022.
7. Dalmia Nisus Finance invests in Treasure Group’s Indore project
Alternative asset manager Dalmia Nisus Finance Investment Managers LLP has invested over Rs 25 crore in a premium plotted development project of realty developer Treasure Group through its Real Estate Credit Opportunities Fund – I (RECOF-I). The project, Treasure Hills, is being developed in Madhya Pradesh’s Indore and the investment has been made through the Rs 500 crore fund that primarily invests into structured credit and mezzanine investments across the residential space in India.
1. Sofworks Global Announces Green and Red Signal Real Estate Investment Platform Now Available
SoftWorks Global LLC nnounced its cutting-edge real estate investment search engine and analytics platform, which makes it easy for real estate investors and homebuyers to find profitable properties. SoftWorks Global’s real estate platform removes the guesswork in real estate investing, performing nationwide property searches and providing green signals to buy and red signals to sell through science-backed data to improve investors’ profits and lower investment risks.
2. Dubai real estate shows strong growth and emerging opportunities
In Q2 2023, Dubai’s residential market saw a significant increase in sales volume and value, with over 30,000 property transactions and a total sales value of over AED 91 billion. This was by far Dubai’s best-performing Q2 on record, showing a 35% increase in transactions and a 54% increase in sales value compared to Q2 2022. Apartments experienced a surge in demand, with the median price per square foot reaching AED 1,336, the highest on record for Q2. Off-plan villa prices also saw a rapid rise, increasing by 32% compared to Q2 2022, largely due to increased interest in luxury villa communities and attractive post-handover payment plans offered by developers. Affordability has also driven demand in emerging locations. Dubai Marina was the top-selling area for ready properties, while Jumeirah Village Circle led in off-plan sales. Damac Lagoons led the off-plan villa market sales, with 642 transactions valued at AED 1.8B.