HomeGlobalWeekly Real Estate News Tracker – 30 July
Weekly Real Estate News Tracker – 30 July
July 30, 2023
1. Luxury residential sales in Mumbai up 50% on-year in January-June
Sales of luxury homes costing Rs 10 crore and above in Mumbai rose nearly 50% to Rs 11,400 crore during January-June period of 2023, coinciding with a boom in residential property sales overall, showed a joint report by India Sotheby’s International Realty and CRE Matrix. Of this, the primary sales activity recorded an 83% year-on-year rise at Rs 8,817 crore. Mumbai’s luxury housing market has been steadily rising for the last three years, in line with the buoyancy in the country’s residential real estate.
2. K Raheja Corp buys 3.7-acre land parcel in Mumbai’s Mulund for Rs 130 cr
Realty developer K Raheja Corp has acquired a 3.72-acre land parcel on LBS Marg in Mumbai’s central suburb Mulund for Rs 130 crore. The company is planning to develop a premium residential project on the said parcel. K Raheja Corp has paid stamp duty of Rs 7.80 crore for the registration of the deal that took place on June 16. Following the execution of the transaction, the developer has paid Rs 105 crore to the erstwhile landowner. The company will be paying the balance amount of Rs 25 crore to the seller after 9 months from the execution of the deed or within 3 days of receiving the commencement certificate from concerned authorities.
3. Lodha to exceed FY24 acquisition guidance, Rs 12,000-cr projects added in Q1
Realty major Lodha, listed as Macrotech Developers, is expected to surpass its guidance for project acquisitions worth Rs 17,500 crore in the ongoing financial year driven by a robust pipeline of business development opportunities, said top company official. In the first quarter alone, the developer has added five new projects with potential gross development value (GDV) of Rs 12,000 crore during the quarter. The new projects include projects in the western suburbs of Mumbai, Bengaluru and in Alibaug.
Realty developer Sunteck Realty has recorded 16% year-on-year growth in pre-sales at Rs 387 crore for the quarter ended June. The company’s collections for the quarter rose to Rs 288 crore from Rs 285 crore a year ago. For the financial year 2022-23, the developer’s pre-sales recorded a 23% rise to Rs 1,602 crore, while collections registered a 19% growth at Rs 1,250 crore. The growth registered in the company’s pre-sales was on account of robust contribution from all its ongoing projects across Mumbai Metropolitan Region (MMR).
5. Raymond Realty launches 4th project in Thane with Rs 2,000 crore revenue potential
Raymond Realty recently announced its expansion in the Thane real estate market, marking the launch of its fourth project. On July 28, the real estate arm of Raymond unveiled its fourth project in the Thane real estate market in the Mumbai Metropolitan Region (MMR). This project has a total RERA carpet area of 9.40 lakh square feet, and a revenue potential of over Rs 2,000 crores, as per the company’s press release. The project, titled “The Address by GS 2.0,” will bring the total RERA carpet area under development in the Thane market to about four million square feet. “The Address by GS 2.0” offers 3, 4, 5, and 6 BHK apartments equipped with the latest amenities.
6. Maharashtra govt says no stamp duty on redeveloped housing society apartments
The government of Maharashtra has stated that a member of a housing society that undergoes redevelopment need not pay stamp duty on the allotted permanent accommodation as part of the project. Following this, the member of the housing society undergoing redevelopment is expected to pay only Rs 100 as stamp duty, while the principal agreement between the development and the housing society will be charged as per the conveyance.
1. Wave Group to invest Rs 10 crore in AI tech for Wave City project in Delhi-NCR
Real estate developer Wave Group’s said that will invest Rs 10 crore in Artificial Intelligence (AI) technology for its Wave City project in-Delhi NCR. The company aims to make these investments in the next three years. It wants to develop the region’s first Hi-tech Operational Smart City with an aim to establish new standards for sustainable living, affordability, and cutting-edge services, all powered by advanced AI-managed systems. The key AI-powered features to be introduced in Wave City include an Intelligent Traffic Management System, which ensures efficient traffic control based on volume by utilizing location tracking on buses and video analytics. Other features include ATM theft detection, Forensic Identification, Parking Management.
2. Khan Market rentals breach pre-Covid levels, hit record Rs 1.5k/sq ft a month
Rentals at Delhi’s Khan Market – the country’s most expensive retail real estate – have breached the pre-pandemic levels for the first time to hit a record high of Rs 1,500 per square feet per month. This is almost double than the costliest retail location of Mumbai and about four times that of Bengaluru, industry executives said. Monthly rentals at Khan Market had reached Rs 1400 per sq ft in 2019 level.
3. Real estate industry experts voice concern over lack of registration of realty projects in Delhi
Real estate industry experts have voiced apprehensions regarding the lack of registration of realty projects in the national capital and agents’ failure to display RERA (Real Estate Regulatory Authority) details while selling high-value properties. During a CII Delhi session with RERA-Delhi, developers and property consultants said that they were concerned that real estate agents are promoting properties in South and Lutyens Delhi without disclosing the essential RERA details.
With increased use of artificial intelligence for analysis, the income tax department has started asking taxpayers about suspect deductions claimed for house rent and housing loan interest. According to chartered accountants, many taxpayers show that they are living in a rented property that actually belongs to close relatives. In cases where such taxpayers show they are paying rent, the receiver does not mention this rental income in their returns. Similarly, some taxpayers claim bogus housing loan interest deductions and the I-T department is seeking details about such claims as well. Chartered accountants say some salaried taxpayers use dubious means to save taxes because of the high cost of living and education and fewer deductions available.
Mahindra Lifespace Developers, the real estate and infrastructure development business of the Mahindra Group, has clocked pre-sales of Rs 345 crore and industrial land leasing worth Rs 14 crore during the quarter ended June. The company has reported a net loss of Rs 4.3 crore In the June quarter against a profit of Rs 75.4 crore a year ago. The developer has sold 4.2 lakh sq ft residential area and collections Its collections in residential business stood at Rs 276 crore.
India has emerged as one of the fastest-growing flexible office space markets globally driven by rising demand for managed space solutions from both large enterprises as well as agile startups across geographies and industries especially after the Covid19 pandemic. The operational flexible office stock across top seven cities of the country has touched over 53 million sq ft with nearly 75% growth from the pre-pandemic level of around 30.3 million sq ft.
4. ArisUnitern plans to raise ₹350 cr via alternative investment fund
Real estate contracting and advisory firm ArisUnitern plans to raise ₹350 crore through the alternative investment fund route this year, marking its foray into the real estate alternative financing segment in the country. The proposed fund, which will have a green shoe option of ₹100 crore, will be used for last-mile funding of residential projects. The firm has ventured into development management of residential projects and plotted development by providing last-mile funding.
In April, ArisUnitern raised ₹250 crore from Jiraaf, an alternative investment fund house, to fuel its expansion plans. It plans to use the funds to identify and invest in projects like plotted development, farm plots, villas, villaments, residential projects and last-mile funding for stuck projects to be developed by ArisUnitern.
1. Singapore home prices fall for 1st time in 3 years as red-hot pace slows
Singapore home prices fell for the first time in three years in the second quarter, adding to signs that the property boom is starting to moderate. Private property values slid 0.2 per cent from the previous three months, when they rose 3.3 per cent, final Urban Redevelopment Authority figures showed on Friday. That compares with a preliminary estimate of a 0.4 per cent drop, and confirms the first decline since the start of 2020. Price momentum is finally easing after a buoyant run that saw Singapore’s red-hot property market defy a global slowdown from Paris to Shanghai. To keep a lid on flat values, the government doubled stamp duties for foreign buyers in April to 60 per cent – the highest among major markets. It also raised levies for second-home buyers.
2. UK’s InVentry acquires Hipla Technologies for India expansion
UK-Based technology company InVentry has acquired Singapore based Hipla Technologies, a workplace management solutions provider having strong presence in India. The acquisition is part of InVentry’s global expansion plan and will support their international growth strategy across both Singapore and India. The acquisition will also accelerate the development of new technologies that enable businesses to optimise workplace solutions, improve visitor experience, and increase operational efficiency.