Weekly Real Estate News Tracker- 4 June 2023
MUMBAI UPDATES
1. Prestige Estates buys out DB Group’s balance stake in 2 Mumbai projects at BKC and Mahalaxmi for Rs 1,176 crore
Realty developer Prestige Estates Projects has made two strategic acquisitions to attain complete ownership of two key projects in central Mumbai’s Bandra-Kurla Complex (BKC) and South Mumbai’s Mahalaxmi locality by picking up balance stake from DB Group for a total consideration of over Rs 1,176 crore. Both the projects are currently under construction and are expected to be completed within the next 3- 4 years.
2. Mumbai property market stamp duty collection records best-ever May
Mumbai, the country’s largest and most expensive real estate market, continued its record-setting spree by scaling a new peak in terms of stamp duty collection for the month of May despite higher mortgage rates and property prices.
3. Nod for 50% cut in premium for one year for cluster redevelopment in Mumbai
In a bid to push cluster redevelopment in the city, the state cabinet on Tuesday approved the reduction in premium by 50%. Deputy CM Devendra Fadnavis, who also holds the housing portfolio, said the decision to reduce premium is applicable only for a year.
4. Mhada lottery 2023 :More than 16,000 applications for 4,083 Mumbai homes in a week
The Maharashtra Housing and Area Development Authority (MHADA) has received over 16,000 applications for 4,083 homes a week after it announced the lottery for Mumbai. The apartments are priced between Rs 24 lakh and Rs 7.57 crore, ranging from 200 sq ft to 1,500 sq ft. The last date for submission of application is June 26. The results of the lottery will be announced on July 18, 2023.
Read more at : MHADA Lottery 2023: More than 16,000 applications for 4,083 Mumbai homes in a week (moneycontrol.com)
5. BMC releases list of 226 dilapidated buildings in Mumbai
In light of the upcoming monsoon season, the Brihanmumbai Municipal Corporation (BMC) on Friday released a list of 226 dilapidated buildings, which are in a “very dangerous” condition. The civic body issued a release with a list of 226 “very dangerous” buildings in C-1 category.
Read more at:
BMC releases list of 226 dilapidated buildings in Mumbai, Real Estate News, ET RealEstate (indiatimes.com)
6. SC rejects Godrej & Boyce appeal for additional TDR at Vikhroli
The Supreme Court has rejected the claim of Godrej & Boyce Manufacturing Company Limited for additional transfer of development rights (TDR) for a recreation ground in Vikhroli. In its order, the apex court observed that no amenity was developed as required by law to be entitled to additional TDR.
Read more at: SC rejects Godrej & Boyce appeal for additional TDR at Vikhroli, ET RealEstate (indiatimes.com)
7. Bajaj Electricals takes on lease over 61k sq ft space in Mumbai
Consumer appliances major Bajaj Electricals has picked up an entire floor of office space spread over 61,000 sq ft in Blackstone Group entity Nucleus Office Parks’ commercial complex One International Center in Mumbai’s business district of Lower Parel on long-term lease of nearly five years.
NCR UPDATES
1. Homebuyers in Noida continue protest, want notices served by cops revoked
In the 26th week of protests at Ek Murti Chowk by homebuyers over pending registries, flat owners on Sunday demanded the revocation of notices sent to them by the police under Section 111 of the CrPC, a pre-emptive measure to prevent the breach of peace and public tranquility.
Read more at : Homebuyers in Noida continue protest, want notices served by cops revoked, ET RealEstate (indiatimes.com)
2. Realty developer TARC to triple its revenue in FY 24
Delhi based real estate developer TARC Limited is looking to triple its revenue from sales to Rs 1500 crore in FY 23-24 on the back of continued demand for luxury residential projects. The company has achieved project sales value of Rs 520 crore in FY23 and has planned two launches in Central Delhi and Gurgaon.
3. One Group Developers emerge as successful bidder for a group housing plot in Gurgaon
One Group Developers has emerged as the successful bidder in an e-auction held by Haryana Shahari Vikas Pradhikaran (HSVP) for a 3,486.17-sq m plot in Gurgaon. The New Delhi-based company will pay Rs 57.2 crore for the land and will invest another Rs 50 crore to develop a residential complex in it.
4. Gurugram: Audit to check structural flaws in 15 high-rise societies in second phase
Deputy commissioner Nishant Yadav on Friday ordered structural audits of 15 residential societies in the city to roll out the second phase of an exercise that was carried out after a vertical collapse of flats in Chintels Paradiso last year.
Read more at : Nishant Yadav: Audit To Check Structural Flaws In 15 Highrise Societies In Second Phase, ET RealEstate (indiatimes.com)
5. Greater Noida: GNIDA offers 22 plots for commercial complexes
GNIDA launched a commercial plot scheme for 22 plots worth Rs 1,100 crore on Monday. The plots will be utilized for the construction of commercial complexes. The online application for the scheme will be accepted till June 19.
Read more at : Noida: Gnida Offers 22 Plots For Commercial Complexes, Real Estate News, ET RealEstate (indiatimes.com)
6. DDA may launch new scheme for 23,000 flats in June
Delhi Development Authority (DDA) has deferred its plan to launch a housing scheme for 23,000 flats. The scheme will be launched in phases and only after it is approved in the authority’s meeting.
Read more at : DDA may launch new scheme for 23,000 flats in June, Real Estate News, ET RealEstate (indiatimes.com)
INDIA UPDATES
1. Roche India arm leases 2 lakh sq ft office space
Swiss biotech major Roche’s India arm has picked up more than 200,000 sq ft office space from Brookfield Properties in its commercial project in Pune’s Baner locality. The commercial project 45 Icon is jointly owned by Brookfield Properties along with Raviraj Abhinandan Developers.
2. Rs 2,000 withdrawal: Real estate experts see rise in land, secondary deals in cash
With the Reserve Bank of India announcing the withdrawal of Rs 2,000 currency notes from circulation, people may now be looking at parking these notes either for purchasing land, primarily agricultural land, in the periphery or small towns or for buying residential stock from the secondary real estate market.
Read more at : Rs 2,000 note withdrawal: Real estate experts see rise in land, secondary deals in cash (moneycontrol.com)
3. Shriram Properties reports highest-ever sales volume of 4.02 msf in FY23
Shriram Properties has reported the highest-ever sales volumes of 4.02 msf in FY23 with sales value reaching a new high of Rs 1,846 crore, up 25% YoY, supported by higher volumes, better realisation, change in product mix and the impact of seven launches.
4. Over 25 lakh property owners in Bengaluru may face hike in tax
If Bruhat Bengaluru Mahanagara Palike’s hike proposal gets the nod, over 25 lakh property owners in Bengaluru city will have to gear up to shell out more in property tax. Deputy chief minister and Bengaluru city development minister DK Shivakumar, who reviewed the working of BBMP on Monday, said the government is considering hiking property tax in the IT City.
Read more at : 25l Property Owners May Face Hike In Tax, Real Estate News, ET RealEstate (indiatimes.com)
5. Phoenix Mills plans to invest Rs 2,000 crore for portfolio expansion
The Phoenix Mills is planning to invest over Rs 2,000 crore to support the ongoing portfolio expansion across key cities in the country including Pune, Bengaluru, Kolkata, and Surat in the current financial year 2023-24.
6. Manufacturing facilities for electric vehicles require 13 million sq ft of real estate by 2030: CBRE
The Electric Vehicle (EV) push in India will help the growth of real estate sector as requirement of manufacturing facilities of 4-wheeler and 2-wheeler electric vehicles is estimated to be around 13 million sq ft by 2030, according to a report by international property consultant CBRE. In addition, EV battery manufacturing facilities would also increase exponentially and require 2,400 acres of land to accommodate the production of 200 GWh of batteries by 2030.
7. WeWork India strengthen its portfolio in Bengaluru, adds 3 new buildings with over 3600 desks
WeWork, flexible workspace provider, is strengthened its footprint in Bangalore by adding around 2.2 lakh sq ft across three new workspaces. The new assets — Princeville and Cherry Hills — are located at the Embassy Golf Links Business Park in Domlur, spread over 95,000 sq. ft. and have a combined capacity of around 1600 desk spaces. While the Prestige Tech Park Jupiter, located close to Marathahalli, spread around 125,000 sq. ft. with over 2000 desks.
8. Indiabulls-Embassy merger will create one of India’s largest listed real estate development company
Embassy Group, which is expected to become one of the largest real estate developers in the country with the merger of Indiabulls Real Estate, is looking to restructure debt, focus on both residential and commercial business and approach the National Company Law Appellate Tribunal against the recent NCLT order that withheld the merger of the two entities.
GLOBAL UPDATES
1. Elon Musk warns house prices are set to plunge- and says commercial real estate is in meltdown
JPMorgan estimated that about $450 billion in commercial real-estate debt set to expire this year could default. The US housing market is also dealing with similar problems, which likely explains Musk’s view that prices were set to topple. Morgan Stanley reported that home sales have bottomed as higher borrowing costs crippled demand with experts warning of a potential 15% to 20% plunge in prices.
Read more at : Elon Musk warns house prices are set to plunge – and says commercial real estate is in meltdown (msn.com)
2. Mega Mansions Bought With Bitcoin: How Crypto Barons Are Reshaping Real Estate
Crypto magnate Michael Egorov‘s partner, Anna Egorova, made a headline-grabbing acquisition of a luxurious $41 million estate, Avon Court, in Melbourne. The deal currently ranks as the priciest real estate transaction in Victoria this year, according to the Australian Financial Review. Crypto investment in property continues to be a growing trend, with significant purchases not limited to Melbourne but also making waves in other Australian regions.
Read more at : Mega Mansions Bought With Bitcoin: How Crypto Barons Are Reshaping Real Estate (msn.com)
3. Singapore home prices surpass Hong Kong as APAC’s most expensive- survey
Data from the Home Attainability Index from the Urban Land Institute (ULI) Asia Pacific Centre for Housing showed the median price of Singapore’s private homes was $1.2 million in 2022, compared to Hong Kong’s $1.16 million. Private rental homes in Singapore also had the highest monthly rent in the region at $2,600 — “far exceeding” other cities such as Sydney, Melbourne and Hong Kong.
Read more at : Singapore overtakes Hong Kong as most costly APAC city for private homes (cnbc.com)
4. Heavy debt puts Swedish real estate firms at risk
The threats to financial stability have increased because of protracted high inflation and the prospect of higher interest rates for a longer period. Highly indebted real estate companies in Sweden need to cut their borrowing after rapid interest rate rises and lower risk appetite have added to their vulnerability.
Read more at : Heavy debt puts Swedish real estate firms at risk, watchdog says (zawya.com)
5. Ryan Serhant on real estate: Bedrooms and home offices rank over price per square foot
MarketWatch asked high-end real estate fixture Ryan Serhant for some expertise in navigating buying and selling in a still-changing, post-COVID 19 world. Serhant is an agent, CEO and founder of SERHANT, a vertically-integrated mega brokerage comprising a listings division, as well as an in-house film studio, education arm, marketing team and technology platform.
Read more at : Ryan Serhant on real estate: Bedrooms and home offices rank over price per square foot (msn.com)
6. Glasgow City Council having to track down people abroad over empty properties
People not being able to pay their mortgages, residents passing away and untraceable owners are among the issues leading to empty properties in Glasgow. Between April 2019 and March 2022 the council has managed to bring 677 homes back into use again for residents. It employs three empty homes officers to tackle the blight of derelict buildings going to waste.
Read more at : Glasgow City Council having to track down people abroad over empty properties (msn.com)
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