Weekly Real Estate News Tracker- 29 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) BBMP cancels OC for 2,000 flats of apartment complex in Bengaluru
The Bruhat Bengaluru Mahanagara Palike (BBMP) on Saturday cancelled the Occupancy Certificate (OC) of the 2,000-unit Sobha City apartment in Thanisandra Main Road, leaving the house owners in the lurch. BBMP, in an official order, withdrew the OC of Sobha City, a project developed and sold by M/s Sobha Ltd.
2) Real estate sentiment score dips in Q4 on bleak global economic scenario
The sentiment score for the real estate sector has dropped from 61 in Q3 2022 to 59 in Q4 2022, mainly because of bleak global economic scenario and geopolitical risks from the Russia-Ukraine war, according to the 35th edition of the Knight Frank-NAREDCO Real Estate Sentiment Index Q4 2022
3) Embassy Office Parks REIT’s net profit dips 21.62% in Q3 FY23
The board of directors of Embassy Office Parks Management Services, manager to Embassy Office Parks REIT, declared distribution of Rs 503.33 crore/ Rs 5.31 per unit for the quarter ended December 31, 2022.
Read more at: https://realty.economictimes.indiatimes.com/news/industry/embassy-office-parks-reits-net-profit-dips-21-62-in-q3-fy23/97314740
4) Blackstone in talks with Bain to sell $480 million stake in Embassy REIT
Embassy Office Parks was India’s first REIT to list in 2019. It owns and operates more than 43.2 million square feet of office parks and office buildings in cities such as Bengaluru and Mumbai and is also the largest office REIT in Asia by area.
5) Big relief for home buyers likely from proposed IBC changes
Home buyers to benefit if a proposal to adopt individual project resolution in the real estate sector under the insolvency and bankruptcy code framework gets enacted into law.
6) Noida to get investment intent worth Rs.5.86 lakh crores through its ambitious drive of UP Global Investors Summit.
Gautam Buddh Nagar, Noida which includes industrial cities of Noida and Greater Noida, has received investment proposals worth Rs 5.86 lakh crore since the announcement of Uttar Pradesh Global Investors Summit in November 2022, according to district officials.
7) Indian Real Estate Investments Surge To All-Time High of $7.8 Billion in 2022
Indian real-estate investment grew by 32% to an all-time high of US$ 7.8 billion in 2022. According to a consulting firm, CB Richard Ellis (CBRE) South Asia Private Limited, real estate investments in India registered a 32% increase on a year-on-year basis to an all-time high of US$ 7.8 billion in 2022.
Read more at: https://www.financialexpress.com/money/real-estate-investments-surged-to-an-all-time-high-of-7-8-bn-in-2022/2959759/
8) Shriram Properties acquires three companies
Shriram Properties has acquired 100% equity shareholding in three companies namely Shriram Living Spaces, Shriram Upscale Spaces, and Shrivision Elevation thereby they have become wholly-owned subsidiaries. 1,000 equity shares of Shriram Living Spaces, Shriram Upscale Spaces and Shrivision Elevation have been acquired of Rs 10 each, the company said in the regulatory filing.
Read more at: https://realty.economictimes.indiatimes.com/news/industry/shriram-properties-acquires-three-companies/97335399
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MUMBAI UPDATES
1) Decide on pending green nod pleas for realty projects in eight weeks: Bombay High Court
In its plea, the property developers’ self-regulating body had claimed that SEIAA was deferring environmental clearance to various pending real estate projects citing a September 2022, email from Registrar, National Green Tribunal (NGT) following an order in a case related to Kalpataru Group.
2) Sunteck Realty Ltd, Mumbai-based firm on Tuesday reported a 12% increase in its sales bookings to Rs 396 crore
“We had pre-sales of around Rs 396 crore in Q3 FY23, up 12 per cent on YoY (Year on Year) basis,” the Mumbai-based firm said in a regulatory filing. Sunteck Realty Ltd on Tuesday reported a 12 per cent increase in its sales bookings to Rs 396 crore on better demand.
Read more at: https://realty.economictimes.indiatimes.com/news/industry/sunteck-realtys-sales-bookings-rise-12-to-rs-396-crore/97284092
3) MahaRERA has allowed developers to apply for extension of lapsed projects without the consent of 51% home buyers in the respective units
Maharashtra has more than 4,500 lapsed, or delayed, residential projects, and the order issued by MahaRERA allows developers to apply for an extension of registration without homebuyers’ consent.
4) Order on realty portals’ listing as agents set aside
The real estate authority, in October 2019, had asked the web portals to register as real estate agents. The web portals had challenged this order stating that they were not facilitating any sale, but merely were providing information via advertisements to the public.
5) J Kumar Infraprojects’ MD Nalin Gupta buys two bungalows in Mumbai’s Juhu
Both the bungalows spread over 5,650 sq ft cumulative built-up area are part of a housing society. Gupta has acquired the said property, which has been constructed on a land parcel spread over one-fifth of an acre, with his wife Shalini.
6) Two Reliance Communications units to sell properties, including DAKC
“The board of directors of two wholly owned RCom subsidiaries, RRL and CPL (referred to as `selling companies’) have vide their respective board resolutions approved initiation of sale process for certain properties owned by such selling companies, these properties inter alia include the DAKC,” RCom said in an exchange filing Monday.
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GURUGRAM UPDATES
1) DLF has reported a growth of 36.48% in its net consolidated profit during the quarter ended December 31, 2022
DLF has reported a growth of 36.48 per cent in its net consolidated profit during the quarter ended December 31, 2022. Its profit after tax (PAT) stood at Rs 517.94 crore in Q3 FY23 as against Rs 379.49 crore it registered in the corresponding quarter of the previous fiscal, the company said in a BSE filing.
Read more at: https://realty.economictimes.indiatimes.com/news/industry/dlfs-net-profit-up-36-48-in-q3-fy23/97323422
2) Home sales double in Gurugram, up by 59% in NCR.
The home sales in Delhi-NCR rose 59 per cent in 2022, says a survey by realty major Anarock. According to the findings, 63,712 residential units were sold in 2022 as compared to 40,053 in 2021. Gurugram too saw its sales doubled with 32,617 units being sold last year as compared to 15,590 during 2021.
Read more at: https://www.tribuneindia.com/news/haryana/home-sales-double-in-gurugram-up-59-in-ncr-472779
3) Amway Global’s CEO sells flat in Gurugram for Rs 19 crores
According to market sources, the apartment is approximately 6,500 sq ft in size and was sold for about Rs 30,000 per sq ft in October last year.
4) DLF plans to launch Rs 7,500 cr-worth premium housing project in Gurugram
Realty major DLF Ltd plans to launch a luxury housing project in Gurugram next month with an estimated sales revenue of around Rs 7,500 crore as it seeks to tap strong demand for high-end apartments
5) Haryana RERA restrains Bank of Baroda from auctioning project of CHD Developers
As per the official statement, the quorum of the authority consisting of chairman and three members observed that the bank’s e-auction attempt is devoid of considering and settling the claims of individual allottees who are bonafide stakeholders in the project.
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GLOBAL UPDATES
1) The worst is over for the US housing market – and prices will stop crashing within 6 months, Goldman Sachs says
A painful period for the US housing market looks like it’s coming to an end, according to Goldman Sachs. The bank predicted that prices will fall just 6% from their peak and bottom out halfway through 2023. But there are likely to be steeper declines in west coast cities like Austin and San Francisco, strategists added.
2) CoStar to buy Move and Realtor.com for $3B from Rupert Murdoch’s News Corporation
News Corp in Talks to Sell Real Estate Site For $3 Billion. The company confirms website deal discussions with CoStar Group. News Corp. evaluated assets after the proposed Fox recombination.
Read more at: https://www.bloomberg.com/news/articles/2023-01-24/news-corp-is-said-in-talks-to-sell-realtor-com-to-costar-group#xj4y7vzkg
3) Blackstone’s earnings fall 41% as assets sales slump
BLACKSTONE DE-RESULTS (UPDATE 2, PIX)UPDATE 2-Blackstone’s earnings fall 41% as assets sales slump.
Read more at: https://realty.economictimes.indiatimes.com/news/industry/blackstones-earnings-fall-41-as-assets-sales-slump/97364403
4) Landsec sells London office property to Chinachem Group for $432 million
UK landlord Land Securities (LAND. L) said on Friday it sold One New Street Square office property in London to Hong Kong-based Chinachem Group for 349.5 million pounds ($432.12 million), in tune with its strategy to offload mature office spaces in the capital.
5) Londoners are selling homes on WhatsApp in booming private sales market: Report
A record share of Londoners are shunning property portals and opting to sell their homes on their own terms – which are increasingly negotiated over WhatsApp. Almost a quarter of London homes were sold off-market in the final three months of last year, according to broker Hamptons International.
Read more at: https://www.bloomberg.com/news/articles/2023-01-27/londoners-are-selling-homes-on-whatsapp-as-off-market-sales-boom#xj4y7vzkg
6) Redfin Reports Pending Home Sales Improve in January As More Buyers Return
Redfin Reports Pending Home Sales Improve in January As More Buyers Return. Pending sales posted their smallest year-over-year decline in three months as mortgage rates ticked down. Early indicators of homebuyer demand, including tour requests and mortgage applications, are increasing from their low point.
7) Singapore’s private home prices up 0.4% in Q4 amid lower sales; price growth slows to 8.6% for 2022
Private home prices rose at a slower pace in the fourth quarter of 2022 amid lower sales due to a lack of major launches, cooling measures, rising interest rates and weaker global economic projections. Prices of private residential properties rose 0.4 per cent in Q4 of 2022, compared with the 3.8 per cent in third quarter, according to real estate statistics released by the Urban Redevelopment Authority (URA).
Read more at: https://www.channelnewsasia.com/singapore/singapore-private-home-prices-04-fourth-quarter-increase-86-whole-2022-3235486
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