HomeGlobalWeekly Real Estate News Tracker – 23 July
Weekly Real Estate News Tracker – 23 July
July 23, 2023
1. DLF to develop a residential project in Mumbai, ties up with Trident realty
Realty developer DLF is set to expand its commitment to Mumbai, India’s biggest property market, with an Andheri project of 2.5 million square feet in the first phase. The NCR property major’s subsidiary, DHDL, has completed a securities subscription and shareholders’ agreement, leading to the allotment of 9,800 equity shares valued at Rs 10 each to Trident Buildtech Private Limited, which is involved in projects in Delhi-NCR and Panchkula.
2. Seeds major Mahyco promoter family buys luxury pad in Mumbai’s Malabar Hill for Rs 122 cr
In one of the most expensive property transactions, the promoter family of biotechnology and seeds major Maharashtra Hybrid Seeds Co (Mahyco) has purchased a sea-view luxury apartment for over Rs 122 crore in south Mumbai’s Malabar Hill from realty developer Lodha Group’s listed company Macrotech Developers. The buyer Rajendra Barwale, director of Mahyco, has bought the apartment spread over a total of nearly 9,546 sq ft on the 2nd floor of the super-luxury residential tower Lodha Malabar on Walkeshwar Road.
3. MahaRERA issues registration cancellation notices to 563 project developers
Real Estate regulator Maharashtra Regulatory Authority of India (MahaRERA) has issued notices to 563 real estate developers in Maharashtra warning of cancellation of their registration owing to non-compliance of uploading details on the website of MahaRERA for the homebuyers. Out of the total 563 developers, Pune tops the list with 124 developers being non-compliant despite being issued notices earlier.
The MahaRERA had in May 2023, issued notices to around 746 developers for non-compliance of uploading quarterly progress reports and other project details including financial disclosures on the website of the MahaRERA. Out of the 746 developers, 183 developers complied and uploaded details.
3. NCLT approves Darwin Platform’s resolution plan for Lavasa Corporation
The National Company Law Tribunal has admitted a petition filed by Edelweiss Asset Reconstruction Company to initiate corporate insolvency resolution process (CIRP) against real estate company Neptune Ventures & Developers.
According to the ARC, Neptune Ventures owes it ₹402 crore. At the tribunal, the developer opposed the petition on the ground of limitation, as it was filed in July 2022, more than three years from the date of a payment default.
4. Aditya Birla Finance extends debt to redevelopment project near Mumbai’s BKC
Aditya Birla Finance, a subsidiary of Aditya Birla Capital Capital, has extended debt worth Rs 40 crore to Agami Realty’s premium residential project involving redevelopment of a housing society in Kala Nagar near Mumbai’s business district Bandra-Kurla Complex (BKC).
The project to be developed on the land parcel spread over a quarter of an acre is estimated to have a development potential of about 1 lakh sq ft and a free-sale component of about 45,000 sq ft.
Realty major DLF’s consolidated net profit rose 12 per cent to Rs 527 crore in the first quarter of this fiscal. The company’s net profit stood at Rs 469.57 crore in the year-ago period. Total income rose marginally to Rs 1,521.71 crore in the April-June period of 2023-24 financial year from Rs 1,516.28 crore in the year-ago period.
DLF is India’s largest realty firm in terms of market capitalisation. It has developed more than 150 real estate projects and developed an area in excess of 330 million square feet.
2. Delhi NCR surpasses Mumbai, Pune and other cities in luxury housing demand
Delhi-NCR stands out as the frontrunner among India’s top seven cities in terms of deliveries in 2023, reflecting a staggering 97 per cent growth from the previous year. The region is poised to take the lead with an estimated completion of around 170,000 units in 2023, accounting for nearly 30 per cent of the year’s delivery pipeline.
The high-ticket segment priced above Rs 1.5 crore has played a significant role in this growth, with approximately 24 per cent of the total units sold falling into this category.
3. B L Kashyap Secures a Rs. 369 crore Order from DLF Home Developers
B L Kashyap & Sons, a leading civil engineering and construction company has secured a new order aggregating to around Rs. 369crore from DLF Home Developers Limited. The order comprises of civil structure and waterproofing work for DLF The Arbour, Gurugram. With the new order the company’s total order book as on date stands at around Rs. 3086 crore.
4. No takers, Chintels Paradiso revokes plan to rebuild flats; most opt for buyback
The developer of Chintels Paradiso, where four buildings have been declared unsafe for living since the February 2022 cave-in at one of the towers, said on Tuesday that it is withdrawing the offer to reconstruct or renovate the flats of the affected homebuyers as no one has chosen it till now.
The first offer — to compensate the homebuyers of towers D, E and F by paying them Rs 6,500/sqft and refunding the stamp duty along with the cost of interiors renovated — still stands. According to the developer, around 80 homebuyers have already opted for option 1. There are 180 flats in the three towers.
5. DDA’s FCFS scheme: Around 25 pc flats booked in 10 days
Around 25 per cent of the 5,500 flats on offer as part of an ongoing housing scheme of the Delhi Development Authority (DDA), has been booked since July 10, officials said on Friday. The DDA on June 30 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.
More than 650 flats were booked on July 10 itself, soon after the booking window was opened on DDA’s website starting at noon. All 50 flats in Dwarka were completely sold out on the first day.
1. Net debt of top 8 listed realty firms dips 43% to Rs 23,000 cr in last 3 yrs
The net debt of top eight realty firms fell 43 per cent to Rs 23,000 crore last fiscal, from around Rs 40,000 crore in 2019-20, as their cash flow improved on strong housing sales. The unfettered demand for housing across the country has enabled the country’s leading large and listed developers to reduce their debt.
2. Pune: Now, pay just Rs 1,000 as stamp duty in self-redevelopment projects
Existing flat owners in self-redevelopment projects will now have to pay only Rs 1,000 in stamp duty instead of the current rate varying between 5-7% of the total agreement value of the property.
The state government issued a government resolution in this regard on Friday to push for self-redevelopment projects across Maharashtra. Homebuyers purchasing apartments from the open market in self-redeveloped projects will have to pay stamp duty as per the prevailing market rate.
3. Warehousing supply across 8 primary markets likely to grow 13-15% in FY24, says ICRA
The supply of industrial and warehouse logistics parks is expected to grow by 13-15% on-year in the current financial year 2023-24 across the eight primary markets to around 435 million sq ft, said ratings agency ICRA. The incremental absorption is estimated to remain at around 39 million sq ft, the level witnessed in 2022-23. Nearly 52% of the expected supply addition across these primary markets including Mumbai, National Capital Region, Pune, Chennai, Bengaluru, Kolkata, Hyderabad, and Ahmedabad will be in grade A category.
The warehousing sector continues to witness a sustained demand from the third-party logistics (3PL) and automobile sectors, which together accounted for nearly 53% of the total leased warehousing area in the rating agency’s sample of as on March 2023.
4. Flipkart’s Rs 2,800-cr realty check in Bengaluru: ESOP payment to trigger home buying
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 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.
5. Welspun One’s second warehousing-focused fund raises Rs 1,000 cr in 4 months
Welspun One Logistics Parks (WOLP) on Tuesday said it has raised Rs 1,000 crore within four months of launching its second warehousing-focused fund. The company also announced the opening of its ”green shoe” option to raise an additional Rs 1,000 crore.
The potential corpus could reach Rs 2,000 crore upon completion of the green shoe option, which would rank it among the largest in the domestic real estate alternatives space, WOLP said in a statement. The plan entails an overall investment outlay of over Rs 8,000 crore, which will propel Welspun One to an Assets under management (AUM) of USD 1 billion.
Sales of pre-owned homes dropped 3.3% in June compared with May, running at a seasonally adjusted annualized rate of 4.16 million units, according to the National Association of Realtors. Compared with June of last year, sales were 18.9% lower. That is the slowest sales pace for June since 2009.
The continued weakness in the housing market is not for lack of demand. It’s all about a critical shortage of supply. There were just 1.08 million homes for sale at the end of June, 13.6% less than June of 2022. At the current sales pace, that represents a 3.1-month supply. A six-month supply is considered balanced between buyer and seller.
2. Indian billionaire Ravi Ruia buys Russian-linked London mansion for £113 million
Indian billionaire Ravi Ruia bought a Rs 1,200 crore (£113 million) London mansion linked to Russian property investor Andrey Goncharenko in one of the UK capital’s biggest residential deals in recent years.
The family office of Ruia, who co-owns investment firm Essar Group, purchased the Hanover Lodge mansion overlooking Regent’s Park at 150 Park Road this month through a sale of the home’s Gibraltar-incorporated holding company, according to a person familiar with the matter.