Weekly Real Estate Tracker- 15 January 2023
A lot of activity happened in the Real estate sector this week and you wouldn’t want to miss out on any of it! Here’s this week’s news, Simplease Edition :
INDIA UPDATES
1) Mahindra Lifespaces acquires 4.25 acres land in Bengaluru
This land has residential development potential of approximately 4.6 lakh sq ft and a gross development value of approximately Rs 400 crore primarily comprising of premium residential apartments. It expects to launch the first phase of the project within the calendar year 2023.
Read more at: https://tinyurl.com/ktdrx24u
2) Land prices hit the roof in top cities
According to Dolat, the increase in land prices is reflected in the average prices of apartments sold in Gurugram/Hyderabad where they went up by 19-79%. Consultants who deal in large land parcels agree that prices for both land and apartments have shot up in major cities.
Read more at: https://www.financialexpress.com/money/land-prices-hit-the-roof-in-top-cities/2940417/
3) Sebi allows virtual meetings for REITs, InVITs unitholders
Under the rules, an annual meeting of all unitholders of real estate investment trusts (REITs) and infrastructure investment trusts (InvITs) need to be held within 120 days from the end of a financial year and the time between two meetings should not exceed 15 months.
Read more at: https://tinyurl.com/mr2hnmxn
4) Kolte-Patil Developers’ sales booking up 28% at record Rs 716 crore in Q3 FY23
Kolte-Patil said it achieved sales value of Rs 1,528 crore during April-December 2022-23, a rise of 23 per cent from Rs 1,238 crore in the year-ago period.
Read more at: https://tinyurl.com/dakb2pv7
5) Jaiprakash Associates defaults on Rs 4,059 crore loans
In September 2018, ICICI Bank filed an insolvency petition against JAL but the matter is still pending before the Allahabad bench of the National Company Law Tribunal (NCLT).
Read more at: https://tinyurl.com/2sxc3fp7
6) HDFC Capital raises $376 million for affordable housing fund
The latest fund raising is the third by HDFC Capital’s affordable real estate fund (H-Care 3) and the primary investor in the H-Care schemes is a wholly-owned subsidiary of the Abu Dhabi Investment Authority (ADIA), HDFC said in a statement.
Read more at: https://tinyurl.com/2fv7c9dz
7) HDFC, India Overseas Bank hike lending rate by up to 25 basis points
According to the HDFC Bank website, the overnight MCLR is now 8.50 per cent from earlier 8.30 per cent, an increase of 20 basis points, while the MCLR for one month is 8.55 per cent up from 8.30 per cent, a rise of 25 basis points.
Read more at: https://tinyurl.com/y266zw4f
8) Institutional investments in retail real estate jumps over 6-fold to USD 492 mn in 2022
In 2021, the retail real estate had attracted only USD 77 million institutional investments because of an adverse impact of the Covid pandemic on the businesses in shopping malls.
MUMBAI UPDATES
1) Supreme Universal inks pact to develop five-acre land parcel in Mumbai
The company has acquired the development rights of the said land parcel through its subsidiary Supreme Sky High LLP and will be investing nearly Rs 1,000 crore to develop the project.
Read more at: https://tinyurl.com/2d4nrwtt
2) Second phase of Mumbai metro’s 2A and 7 lines to be operational soon
The MMRDA will take a 16-hour mega block for the integration of the first phase of metro lines with the second phase between 6 am to 10 pm on January 8 on lines 2A and 7 for testing of integrated signalling systems.
Read more at: https://tinyurl.com/235yzmee
3) Worli BDD buildings to be ready by December 2024: Mhada
“Work is also being expedited at N M Joshi Marg and Naigaum, Dadar. Now, there are no major hurdles with regard to tenants and residents of these chawls ,” he said.
Read more at: https://tinyurl.com/rvfka77a
4) NCLT okays Adani Good Homes’ sole bid for Radius Estates
ICICI Prudential Venture Capital Fund and Beacon Trusteeship, who are creditors of the company and held its debentures on behalf of investors, had opposed Adani’s bid for the real estate company citing foul play. They had demanded that the insolvency process be scrapped and started afresh.
Read more at: https://tinyurl.com/2bbuteth
5) Ajmera Realty sales value up 19% in Q3 FY23
In 9M FY23, the company has surpassed the total annual sales value of Rs 431 crore in FY22 by 1.6 times to Rs 694 crore. The company has expressed confidence in its ability to maintain the healthy pre‐sales growth momentum which will further propel an increase in its market share.
Read more at: https://tinyurl.com/bdfbkf8j
6) Pan India Housing Demand Increases
Due to growing demand since last year and rising input costs, house prices have been rising since the beginning of 2022. Price increases were observed in all eight cities (Delhi-NCR, MMR, Kolkata, Pune, Hyderabad, Chennai, Bengaluru, and Ahmedabad), with NCR experiencing the greatest increase (14% YoY), followed by Kolkata and Ahmedabad with 12% and 11% YoY increases, respectively.
Read more at: https://timesproperty.com/news/post/pan-india-housing-demand-increases-blid3614
7) Kamathipura: Green light for redeveloping Mumbai’s red light area?
Spread over 39 acres, redeveloping the area will open up over 2 mn sq ft of prime property. Each tenant and landlord will get at least a 500-sq-ft apartment.
Read more at: https://tinyurl.com/yc72745n
Gurugram
1) CM Khattar inaugurates key infras projects in Gurugram
Haryana chief minister Manohar Lal Khattar on Friday virtually inaugurated 113 projects in the state developed at the cost of ₹791 crore and laid the foundation stone of 54 projects costing ₹1,040 crore. The projects are located across the state, including Gurugram, and these were inaugurated during a function held at village Dhanwapur in the city on Friday.
2) Norms relaxed, min requirement to register plots 100 sq yards now in Gurugram
MCG commissioner PC Meena said that earlier the regularisation and sub-division was allowed for plots with a minimum area of 200 sq yards, and now it has been changed to 100 sq yards.
Read more at: https://tinyurl.com/twk7r3xp
3) Pan India Housing Demand Increases
Due to growing demand since last year and rising input costs, house prices have been rising since the beginning of 2022. Price increases were observed in all eight cities (Delhi-NCR, MMR, Kolkata, Pune, Hyderabad, Chennai, Bengaluru, and Ahmedabad), with NCR experiencing the greatest increase (14% YoY), followed by Kolkata and Ahmedabad with 12% and 11% YoY increases, respectively.
Read more at: https://timesproperty.com/news/post/pan-india-housing-demand-increases-blid3614
4) DDJAY gives a boost to plotted development in Haryana
DDJAY is a boon for those who wish to own properties in regions flooded with amenities. The scheme not only enables them a convenient way to undergo the legal procedure but also invites investors from every nook and corner of the vicinity.
Read more at: https://www.financialexpress.com/money/ddjay-gives-a-boost-to-plotted-development-in-haryana/2947935/
GLOBAL UPDATES
1) London Real Estate Market: Why has the inflow of foreign money into the capital slowed?
London, which has long attracted huge swathes of foreign investment and drew in the most capital inflows of any global city in the first half of the year, faces uncertainty over property valuations as interest rates rise and in the wake of political chaos triggered by September’s mini-budget. Foreign dealmakers accounted for 57% of London real estate investment in 2022, compared with 65% in 2015, MSCI data show.
2) Property-services startup Lessen acquires rival for $950M
Lessen is a real estate management platform that connects property owners and managers to electricians, cleaners and other service providers, specializing in large-scale renovations and updates between tenants. It raised $170 million in its Series B round in 2021, reaching unicorn status; Fifth Wall is a leading investor, while Khosla Ventures, General Catalyst and Navitas Capital invested in multiple rounds.
Read more at: https://therealdeal.com/2023/01/13/property-services-startup-lessen-acquires-rival-for-950m/
3) Germany’s Housing Market Effect On Indian Real Estate Market
During the projection period, the German residential real estate market is anticipated to see a CAGR of 6.1%. (2022 – 2027). Due to the COVID-19 epidemic, which caused lockdowns and required residents to stay at home, the residential real estate industry was forced to halt.
Read more at: https://timesproperty.com/news/post/germany-housing-market-effect-on-indian-real-estate-market-blid3622
4) KKR doubles down on Japanese Real Estate with 39-Property Residential buy
US private equity giant KKR is strengthening its presence in the Japanese real estate scene with the purchase of a portfolio of newly built apartments in Tokyo, adding to a recent flurry of deals in the country’s rental residential market.
Read more at: https://www.mingtiandi.com/real-estate/finance/kkr-buys-39-apartment-projects-in-tokyo-japan/
5) China’s reopening is set to boost Hong Kong’s property market as retail leads the recovery
The retail market in particular will reap the “best benefit,” Hannah Jeong, Colliers’ head of valuation and advisory services, told CNBC’s “Squawk Box Asia” on Thursday.
In the office sector, Grade A office rents will bounce back by 3% this year, said Colliers — thanks to “pent-up demand from Chinese and overseas companies.”
Read more at: https://www.cnbc.com/2023/01/12/chinas-reopening-set-to-boost-hong-kongs-property-market.html
6) Mortgage rate drop drives refinance demand
CNBC’s Diana Olick joins ‘The Exchange’ to discuss the drop in mortgage rates, increased demand for refinancing and the drop in mortgage applications for home purchases.
Read more at: https://www.cnbc.com/video/2023/01/11/mortgage-rate-drop-drives-refinance-demand.html
7) From cloud computing to proptech: DigitalOcean co-founders raise $29M for Welcome Homes
Excluding land, the cost of building a home through Welcome ranges from $596,000 to $1.75 million. To build on its momentum, Welcome is announcing today that raised more than $29 million in a Series A funding round led by Era Ventures that closed in September of 2022.
Read more at: https://techcrunch.com/2023/01/12/from-cloud-computing-to-proptech-digital-ocean-co-founders-raise-29m-for-welcome-homes/
8) UK firm to buy Mostkovits, Lichtenstein’s bankrupt Williamsburg Hotel for $96M
The trendy 147-key property developed by Toby Moskovits and Michael Lichtenstein at 96 Wythe Avenue is set to be sold to London-based hospitality firm Quadrum Global for $96 million, according to a court filing.
Read more at: https://therealdeal.com/2023/01/12/london-firm-set-to-buy-bankrupt-williamsburg-hotel-for-96m/
Godrej Properties acquires 18-acre land parcel in Kandivali, Mumbai
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