Weekly Real Estate News Tracker- 8 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 :
1. Repo rate maintains status quo, homebuyers rejoice
The Reserve Bank of India (RBI) in its latest Monetary Policy Committee (MPC) has maintained the repo rate at 6.50 percent. Although the last six consecutive repo rate hikes during Financial Year (FY) 2022-23 are believed to have deterred potential homebuyers from investing in property, the current stand may positively impact home buying sentiment and sales.
Read more at: https://www.99acres.com/articles/rising-repo-rates-may-result-in-deferred-home-buying-plans-nid.html
2. Landlord Games – Tenants in Bengaluru scramble after sudden hike in rent
Apartment rentals in the nation’s IT capital have shot through the roof, climbing as much as 40 percent in some areas. As the city’s economy and private sector stir back to life, landlords are raising rents to recoup the revenue lost during the pandemic, when tenants returned to their hometowns.
Read more at: https://www.moneycontrol.com/news/business/landlord-games-tenants-in-bengaluru-scramble-after-sudden-hike-in-rent-10378341.html
3. Birla Estates acquires 5.76 acres land parcel in Pune
The land was purchased from Sudarshan Chemical Industries (SCIL) and has an estimated revenue potential of approximately Rs 2,500 crore.
Read more at: https://realty.economictimes.indiatimes.com/news/industry/birla-estates-acquires-5-76-acres-land-parcel-in-pune/99331288
4. Dharampal Satyapal Group, Salarpuria Group submit resolution plans for Viceroy Bangalore Hotels
The National Company Law Tribunal, Hyderabad Bench ordered the commencement of a corporate insolvency resolution process of the Viceroy Bangalore Hotels Private Limited in August last year. Viceroy has a debt of around Rs 1100 crore and Edelweiss Asset Reconstruction Company is the creditor to the company besides Vistra ITCL (India) Limited.
Read more at: https://realty.economictimes.indiatimes.com/news/hospitality/dharampal-satyapal-group-salarpuria-group-submit-resolution-plans-for-viceroy-bangalore-hotels/99321462
5. Chennai civic body aims for Rs 300 crore property tax boost with reassessment
Any city resident involved in unauthorised construction in violation of building plans could soon have an official from the corporation knocking at his/her door. Greater Chennai Corporation plans to bring in 2.79 lakh under-assessed properties into the tax fold by re-assessing them, expecting, in the process, to boost its property tax revenue by 300 crore annually.
Read more at: https://realty.economictimes.indiatimes.com/news/regulatory/chennai-civic-body-aims-for-rs-300-crore-property-tax-boost-with-reassessment/99331526
6. YEIDA to float third global tender for Film City project this month
After getting a lukewarm response in the first two rounds of bidding, the Yamuna Expressway Industrial Development Authority (YEIDA) will float a fresh global tender this month for the Uttar Pradesh government’s ambitious Film City project, officials privy to the development said.
Read more at: https://www.moneycontrol.com/news/business/real-estate/yeida-to-float-third-global-tender-for-film-city-project-this-month-10375491.html
7. Patra Chawl redevelopment case: ED attaches Guru Ashish Construction’s Goa plots
Located in north Goa, the land parcels belong to Guru Ashish Construction’s Rakesh Kumar Wadhawan and Sarang Kumar Wadhawan. The twin land parcels, worth Rs 31.50 crore, have been attached under the provisions of the Prevention of Money Laundering Act, 2002, (PMLA)
Read more at: https://housing.com/news/patra-chawl-redevelopment-case-ed-attaches-guru-ashish-constructions-goa-plots/
1. Creative Group of Industries’ promoters buy eight apartments in Mumbai for Rs 155 crore
Promoters of Creative Group of Industries have purchased eight sea-view luxury apartments for nearly Rs 155 crore in South Mumbai’s Mahalaxmi locality from real estate developer K Raheja Corp Homes.
Read more at: https://realty.economictimes.indiatimes.com/news/residential/creative-group-of-industries-promoters-buy-eight-apartments-in-mumbai-for-rs-155-crore/99331044
2. Macrotech Developers sells properties worth Rs 12,064 crore in FY23
Realty firm Macrotech Developers’ sales bookings rose 34 per cent to a record Rs 12,064 crore in the last fiscal, on better demand despite rise in interest rates on home loans.
Read more at: https://tinyurl.com/522sx6yz
3. Piramal Capital sells two offices in Mumbai’s BKC to TCG Urban Infra for Rs 110 crore
This is part of a buyback deal as TCG Urban Infrastructure had sold the same office space, in 2013, to Dewan Housing Finance Corporation Ltd which has now merged with Piramal Capital & Housing Finance Ltd.
Read more at: https://realty.economictimes.indiatimes.com/news/commercial/piramal-capital-sells-two-offices-in-mumbais-bkc-to-tcg-urban-infra-for-rs-110-crore/99256240
4. Green tribunal notice to developer of Oberoi Three Sixty West over serious Tree Act violations
The National Green Tribunal in Pune has admitted an application alleging that Skylark Buildcon, the developer of luxury project Oberoi Three Sixty West, has violated the Maharashtra Urban Areas Preservation of Trees Act (MUAPT), 1975, by not planting any trees in open spaces.
Read more at: https://tinyurl.com/3rrp9cy5
5. Apple rents retail space in Mumbai for a minimum guaranteed payment of Rs 42 lakh per month
Tech titan Apple is all set to open its first retail store in India in Mumbai. For that, it has leased over 20,000 sq ft of retail space spread over three floors in a mall in the commercial hub of Mumbai’s Bandra Kurla Complex (BKC), at a minimum guaranteed rent of around Rs 42 lakh per month
Read more at: https://www.moneycontrol.com/news/business/real-estate/apple-rents-retail-space-in-mumbai-for-a-minimum-guaranteed-payment-of-rs-42-lakh-per-month-10375381.html
6. Mumbai’s Air India building to be sold to Maharashtra govt for Rs 1,600-cr
The iconic 23- storey Air India building at Nariman point will be sold to Maharashtra government for Rs 1,600 crore. While the finer details are being worked out, Maharashtra government has asserted that it will go ahead with the deal only if all offices operating out of the building vacate.
Read more at: https://housing.com/news/mumbais-air-india-building-to-be-sold-to-maharashtra-govt-for-rs-1600-cr/
7. Norms issued for redevelopment of rebuilt cessed buildings
After easing the guidelines of the Government Resolution (GR) passed in 2019, the Maharashtra urban development department has framed a new clause. This clause is inserted in the Development Control and Promotion Regulations, 2034 for creating redevelopment rules for 454 properties owned by MHADA and BMC
Read more at: https://www.99acres.com/articles/mumbai-fresh-guidelines-issued-for-builders-of-cessed-projects-nid.html
8. Kotak Mahindra Life Insurance leases 1.5 lakh sq ft space in Tata Realty’s tower
The company will be paying rentals of ₹100 per sq ft a month, bringing its total pay-out to ₹162 crore over the term of the lease, excluding the rental escalations.
Read more at: https://realty.economictimes.indiatimes.com/news/commercial/kotak-mahindra-life-insurance-leases-1-5-lakh-sq-ft-space-in-tata-realtys-tower/99199843
1. Rs 503 crore to be recovered from 101 builders, crackdown from April 7: Noida DM
District Magistrate Manish Kumar Verma, who took charge last month, said “munaadi” (beat of drum) will be carried out against the builders over the next two days for the recovery of dues towards the Uttar Pradesh Real Estate Regulatory Authority.
Read more at: https://realty.economictimes.indiatimes.com/news/industry/rs-503-crore-to-be-recovered-from-101-builders-crackdown-from-april-7-noida-dm/99310953
2. Circle rates increased in Gurugram’s main housing hubs
The Haryana government has increased circle rates, a move that is unlikely to have an immediate effect on the price of premium properties but might make registries dearer
Read more at: https://realty.economictimes.indiatimes.com/news/residential/circle-rates-increased-in-gurugrams-main-housing-hubs/99256069
3. After long wait, work begins to complete Jaypee Wish Town towers
The Suraksha Group, which has been awarded Jaypee Infratech (JIL) by NCLT following bankruptcy proceedings against the company, has started moving on construction and completion of 170 towers at cost of over Rs 5,000 crore.
Read more at: https://realty.economictimes.indiatimes.com/news/residential/after-long-wait-work-begins-to-complete-jaypee-wish-town-towers/99256201
4. Real estate among top 3 micro-markets in Delhi-NCR; witnesses ‘upswing’ in demand, value
The real estate market in the top three micro-markets -Delhi, Noida and Gurgaon- is witnessing an upswing in demand and value. Real estate continues to be the best investment option in Delhi-NCR micro-markets, with people choosing to prefer these cities over others to live.
Read more at: https://www.hindustantimes.com/real-estate/real-estate-among-top-3-micro-markets-in-delhi-ncr-witnesses-upswing-in-demand-value-101680696561007.html
5. Gurugram sold 10% more houses in Jan-March, Noida slacks behind by 23%: Report
Market experts attributed the rise in sales in Gurugram to strong demand for luxury homes. Sales dropped in Noida-Greater Noida due to lesser launches of new projects and lower demand amid increase in mortgage rates as well as property prices.
Read more at: https://www.hindustantimes.com/real-estate/gurugram-sold-10-more-houses-in-jan-march-noida-slacks-behind-by-23-report-101680434630382.html
6. DDA sets December 2023 deadline for Delhi’s Kathputli Colony
“Besides completing the construction work, the concessionaire needs to obtain an NoC for fire safety and get other mandatory clearances. These flats, which are in multi-storey buildings, can be allotted only after everything is in place, such as electricity and water supply connection,” said a DDA official.
Read more at: https://realty.economictimes.indiatimes.com/news/residential/dda-sets-december-2023-deadline-for-delhis-kathputli-colony/99256344
1. Dubai’s luxury housing market on ‘unstoppable’ growth, sets yet another record
For the world’s rich looking for places to stash their wealth, one segment of Dubai’s real estate market is increasingly the destination of choice: apartments and townhouses with a brand name, like Four Seasons, Bulgari and Cavalli.
Read more at: https://www.hindustantimes.com/real-estate/dubais-luxury-housing-market-on-unstoppable-growth-sets-yet-another-record-101680692237740.html
2. China’s new home sales sees sharp rise in March: Survey
The sales of new homes rose 55.7% month-on-month, up from growth of 31.9% in February, according to data from the China Index Academy — one of the country’s largest independent real estate researchers.
Read more at: https://www.hindustantimes.com/real-estate/chinas-new-home-sales-sees-sharp-rise-in-march-survey-101680515669467.html
3. Dust off your pet CV: London’s rental crisis is barking mad
A housing market downturn meant sales revenue was almost flat, but Foxtons still booked double-digit earnings growth. The reason? Income from lettings rose 17 per cent last year, thanks to a 20 per cent surge in rental prices.
Read more at: https://www.afr.com/property/residential/dust-off-your-pet-cv-london-s-rental-crisis-is-barking-mad-20230403-p5cxt0
4. Australia’s Rental Market Tightens Further Amid Housing Crunch
Australia’s home-rental vacancy rate is approaching a record low, driving rents higher as a lack of supply combines with increased immigration to produce a housing crunch. The national vacancy rate fell to 1.1% and rents climbed 2.5% in the first three months of the year from the prior quarter.
Read more at: https://www.bloomberg.com/news/articles/2023-04-04/australia-s-rental-market-tightens-further-amid-housing-crunch#xj4y7vzkg
5. Housing market correction is losing steam—where 7 revised forecast models see U.S. home prices going from here
In the second half of last year, the U.S. housing market slipped into the first price correction since the housing bust bottomed out in 2012. Through January, national home prices as measured by Case-Shiller have fallen 3% on a seasonally adjusted basis—or 5.1% without seasonal adjustment—since the June 2022 peak.
Read more at: https://fortune.com/2023/04/01/housing-market-correction-lost-steam-updated-home-price-forecasts/