Weekly Real Estate News Tracker- 1 April 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. NCLT orders initiating insolvency proceedings against Bengaluru-based Mantri Developers
Indiabulls Housing Finance Ltd (IHFL) had moved the Bengaluru bench of the National Company Law Tribunal (NCLT) claiming a default of ₹456.68 crore by Mantri Developers, part of the Mantri Group of Companies engaged in the real-estate business in Bengaluru, as on January 1, 2022.
Read more at : https://www.hindustantimes.com/real-estate/nclt-orders-initiating-insolvency-proceedings-against-mantri-developers-101680262074307.html
2. PE firm exits Shriram Properties; sells entire stake for Rs 134 crore
The entire stake was acquired by Aurum Realestate Developers, as per the block deal data available on the National Stock Exchange (NSE)
Read more at: https://realty.economictimes.indiatimes.com/news/industry/pe-firm-exits-shriram-properties-sells-entire-stake-for-rs-134-crore/99161489
3. Amazon leases over six lakh sq ft of office space in Bengaluru
The web commerce company registered the document in February for a 60 months lease for 6,00,000 sq ft of space in Bangalore in one of the most significant office transactions in recent times.
Read more at: https://tinyurl.com/rs9wy77x
4. Karnataka RERA orders developer to pay Rs 28 lakh as flood compensation to homebuyers
The Karnataka Real Estate Regulatory Authority (KRERA) has held that flooding in an apartment complex cannot be considered an “act of God” and ordered the builder to pay Rs 1 lakh in damages to homebuyers at a Bengaluru project as compensation.
Read more at : https://www.moneycontrol.com/news/business/karnataka-rera-orders-developer-to-pay-rs-28-lakh-as-flood-compensation-to-homebuyers-10325611.html
5. ED attaches property worth Rs 83 crore of Kalptaru Buildtech
These properties are in Lucknow, Agra, Mathura, Aligarh and others. A case of Prevention of Money Laundering Act, 2002 (PMLA) was registered against the firm in March 2022
6. TVS Emerald, HDFC Capital ink pact to create ₹1,000-cr. platform for plotted development projects in Chennai, Bengaluru
Emerald Haven Realty Ltd. (TVS Emerald) has signed a term sheet with HDFC Capital Affordable Real Estate Fund – 3 to create a ₹1,000-crore platform for plotted development projects across Chennai and Bengaluru.
7. Embassy REIT acquires Embassy Business Hub for Rs 3,348 million in Bengaluru
Embassy Office Parks REIT (Embassy REIT) has agreed to acquire Embassy Business Hub, Bengaluru, for a total enterprise value of Rs 3,348 million ($41 million) with exclusive ownership rights to approximately of 1.4 million sq ft of leasable area on full completion, the company said in a BSE filing.
Read more at: https://tinyurl.com/4p8k4sft
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MUMBAI UPDATES
1. Maharashtra govt to maintain status quo on ready reckoner rates for FY24
The Maharashtra government on March 31 decided not to increase the ready reckoner (RR) rates in the state for fiscal 2023-24. In 2022-23, the government had increased the RR rates by an average of 8.80 percent. The government’s decision not to change the RR rates will help homebuyers in the affordable segment, said real estate developers.
2. Last day today: Mad rush to register high-end properties in Mumbai
The response in Delhi and Bengaluru has, so far, been tepid as there is limited new supply in the above Rs 10-crore range. Mumbai doesn’t have such a problem
Read more at : https://www.moneycontrol.com/news/business/real-estate/why-is-there-a-mad-rush-to-register-high-end-properties-in-mumbai-10336761.html
3. Mumbai reports 11.53 percent YoY drop in property registrations in Q4, but sees by 28 percent MoM growth
While rising mortgage rates impacted affordability, property sales remained buoyant due to robust consumer sentiment, resulting in a revenue collection of Rs 1,143 crore in March.
4. Bulk Deals: Singapore Govt offloads Phoenix Mills stake for Rs 670 cr, WSI WSQI exits Shriram Properties
Government of Singapore held 4.28 percent shareholding in Phoenix Mills as of December 2022. Shares were sold in the retail mall developer and operator at an average price of Rs 1,300.15 a piece, taking the total transaction cost to Rs 669.54 crore
5. Maharashtra: Homebuyers can access all project details with QR code
Homebuyers will soon be able to access all relevant project details by just scanning a QR code on the project registration certificates.
Read more at: https://tinyurl.com/yp3569vp
6. Runwal Group forays into commercial realty with over Rs 4,500-crore investment
The company will be developing a total of three commercial real estate projects in phases across Mumbai’s Kanjurmarg and Dombivli, and Viman Nagar in Pune
Read more at: https://tinyurl.com/22xsuyhy
7. Avener Capital buys over Rs 100-crore luxury duplex in Mumbai’s Worli
The apartment spread over 9,593 sq ft on the 21st and 22nd floor of the tower Oberoi Three Sixty West is valued at Rs 1.04 lakh per sq ft basis the total consideration. The deal has attracted stamp duty of over Rs 2.90 crore.
8. Over Rs 5,300 crore recovered by BMC in property tax by end of FY23
the BMC had initially announced a tax target of Rs 6,000 crore for the fiscal 2022-23, which it revised to 4,800 crore earlier this year. The civic body’s total collection for the previous fiscal stood at Rs 5,792 crore.
9. JP Taparia family buys triplex apartment in South Mumbai’s Malabar Hill for Rs 369 crores
The apartment on the 26th, 27th and 28th floor of the super-luxury residential tower Lodha Malabar is located on the plush Walkeshwar Road, opposite the governor’s estate, touching both the Arabian Sea and the Hanging Gardens.
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NCR UPDATES
1. ED takes possession of Rs 245 crore worth Gurugram plots in PMLA case against Unitech
The money laundering case against the Unitech group, its promoter brothers — Sanjay Chandra and Ajay Chandra — and their family and others stems from multiple FIRs registered by the economic offences wing (EOW) of the Delhi Police.
2. Stalemate between Noida Authority and developers takes a toll on homebuyers
The CAG in a report in December 2019 had said that the scheme led to losses of Rs 9,000 crore to the exchequer and plots worth Rs 4,500 crore under the scheme were allotted to entities that did not meet the technical eligibility criteria of net worth, turnover or experience.
3. Mukul Rohatgi’s wife buys Golf Links bungalow for Rs 160 crore
With the purchase, Rohatgi joins the ranks of several corporate leaders who have bought properties in posh Delhi areas.
4. Gurugram: FIR likely against Malibu Estate for illegal construction
District town planner (enforcement) Manish Yadav, in his letter to the police chief sought registration of an FIR and action against the builder and any associates who were part of the illegal act
Read more at: https://tinyurl.com/4x7we9jd
5. YEIDA plans scheme to collect Rs 4,450 crore from 14 builders
Officials said that of the Rs 4,457 crore that YEIDA was to collect from the builders, Rs 2,753 crore was land premium, Rs 1,408 crore additional compensation for farmers and Rs 296 crore lease rent.
6. Haryana-RERA resolved only 50% plaints in five years; buyers say ‘too slow’
In the last five years, the Haryana Real Estate Regulatory Authority (HRera) has resolved only around 53% of complaints it received from aggrieved homebuyers, while the rest are at various stages.
Read more at: https://tinyurl.com/5dp3dbhm
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GLOBAL UPDATES
1. Luxury property prices expected to rise by 2 percent in New York in 2023: Knight Frank
Sales of high-end homes in the Big Apple surpassed that of pre-pandemic years in 2022. In Mumbai, by comparison, there was 46 percent year-on-year growth in properties priced more than Rs 10 crore, a benchmark for Mumbai’s top 1 percent in value terms and comparable to the top tier of Manhattan’s housing market
2. Zara founder buys luxury apartment building in Dublin for $108 million
It is the first residential building that Ortega’s firm has bought outside the US, Pontegadea said, adding it was part of its strategy to invest in multiple real estate assets.
3. New York’s Flatiron Building fetches $190 million at auction
The 22-story skyscraper, built in 1902 and often said to resemble a clothes iron, fetched almost four times the opening price of $50 million following a keen bidding war
Read more at: https://realty.economictimes.indiatimes.com/news/industry/new-yorks-flatiron-building-fetches-190-million-at-auction/99049883
4. China’s Shimao Group seeks buyer for Hong Kong hotel: JLL
Shanghai-based Shimao, in the process of restructuring $11.8 billion of offshore debt, is among the many Chinese developers that defaulted last year.
Read more at: https://realty.economictimes.indiatimes.com/news/hospitality/chinas-shimao-group-seeks-buyer-for-hong-kong-hotel-jll/99038545
5. London’s Luxury-Home Market Remains Flat, While Rents Are Still Far Above Pre-Pandemic Levels
Meanwhile, supply levels are starting to recover in both markets. Average sales prices in prime central London have been almost flat this month, registering a 1% month-over-month drop and a 0.5% decline since March 2022, the data showed. For luxury homes in outer London, the average price was up 2.4% annually after a flat six months.
6. Opendoor Technologies : launches Buy + Sell in New Markets
Homeowners get the flexibility they need, including lining up closing dates to avoid paying double mortgages or having to move twice.
Read more at : https://www.marketscreener.com/quote/stock/OPENDOOR-TECHNOLOGIES-INC-108596807/news/Opendoor-Technologies-launches-Buy-Sell-in-New-Markets-43358453/?utm_content=20230328&utm_medium=RSS
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