HomeGlobalWeekly Real Estate News Tracker- 11 June 2023
Weekly Real Estate News Tracker- 11 June 2023
June 11, 2023
1. K Raheja Corp sells luxury homes worth Rs 1,100 crore in single project in March quarter
Realty firm K Raheja Corp on Friday said its housing arm has sold properties worth Rs 1,100 crore in its luxury residential project at South Mumbai during the March quarter through its single project Raheja Modern Vivarea in under 90 days.
2. Bajaj Electricals takes on lease over 61k sq ft space in Mumbai
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.
3. Real estate developers charge Rs. 10-30 per sq ft per month of advance maintenance at the time of possession in Mumbai
Real estate developers charge anywhere between Rs 10 and Rs 30 per square foot per month as common area maintenance charges (CAM) in advance from homebuyers at the time of handing over possession. This is over and above the cost of the property according to analysis.
4. I-T Dept Swoops On Navi Mumbai Builder Paradise Group; Seize Incriminating Docs & Currency Of ₹2000 In Crores
The Income Tax (I-T) department swooped down on a prominent Navi Mumbai real estate developer and builder, leading to seizure of Rs 2,000 currency notes, running into several crores. While the I-T department was tight-lipped about the surveys, sources revealed that leading Navi Mumbai developer Paradise Group Managing Director Manish Bathija’s premises were among those searched.
5. Web Werks-Iron Mountain to invest Rs 1,400 cr to develop data center in Navi Mumbai
The joint venture between Indian data center provider Web Werks and NYSE-listed Iron Mountain Data Centers will be investing around Rs 1,400 crore to develop a large data center in Navi Mumbai’s Rabale locality. This will be Web Werks’ seventh data center in India and third facility in Mumbai region alone.
1.Union Cabinet approval for metro connectivity in Gurgaon to help real estate projects on Dwarka Expressway
The Union Cabinet approval for metro connectivity from HUDA City Centre to Cyber City in Gurgaon will help the real estate sector in the region, industry experts said. The central government has given approval for 28.50 km line having 27 stations on the route. The total completion cost of the project will be Rs 5,452 crore.
2. Punjab & Haryana HC stays allotment of plots in Aravali green belt
The Punjab and Haryana high court has stayed the allotments of four commercial sites and seven residential plots that are part of a protected Aravali green belt between DLF-1 and Sector 42. The 5,000sqm-green belt in Sector 26A falls Under the Aravali Plantation, which is protected under the central Forest (Conservation) Act. The law bars non-forest activities and chopping down of trees.
3. ED arrests M3M director in money laundering case
Roop Kumar Bansal, a director of Gurugram-based realty company M3M, has been arrested in a money laundering case linked to real estate firm IREO, the Enforcement Directorate said on Friday. Bansal was taken into custody under the Prevention of Money Laundering Act on Thursday and he was later produced in a special court in Panchkula in Haryana which sent him to seven-day ED custody, the agency said in a statement.
4. Developers to face action if flats handed over without registry
The Greater Noida Industrial Development Authority (GNIDA) is gearing up to take action against developers who give flats to homebuyers without completing the mandatory registration process. Officials said there are plans to issue notices to such builders soon.
5. Buyers of Tashee Capital Gateway protest against builder
A group of homebuyers of Tashee Capital Gateway on Sunday staged a protest over the delay in delivery of their flats even after 13 years. They were gathered at the site in Sector 111. According to the homebuyers, the project was launched in 2010 with a promise to deliver the flats in 2015.
6. Work on Global City likely to start in August, three land parcels to be auctioned
The work on developing civic amenities at the Global City project site will likely to start in August. The Haryana State Industrial & Infrastructure Development Corporation (HSIIDC) has invited bids for auctioning three land parcels, totaling 142.5 acres, at a combined reserve price of Rs 7,817 crore.
7. Only 5% large building sites on dust portal, checks to track all
The state pollution board will carry out a survey in the city to identify any construction and demolition projects that aren’t registered on the government’s portal that was created to monitor if all environmental norms are being followed. It is mandatory for construction sites larger than 500sqm to install PM2.5 and PM10 sensors that send live feed to the online portal, according to directives by the Commission for Air Quality Management (CAQM) in NCR.
8. About 298 illegal colonies in 17 years in Gurugram, 14 town planners under scanner
The town and country department has started sending show-cause notices to town planners posted in the city since 2006 for failing to check illegal colonies, which have spread wide and grown deep roots. Not just in Gurgaon, illegal colonies have become an administrative nightmare in areas such as Badshapur, Sohna, Pataudi, Farrukhnagar and Bhondsi.
1. Brookfield India REIT appoints bankers, targets July for $400 million raising
Brookfield India Real Estate Investment Trust (REIT) has appointed eight investment banks for its planned equity raising of around $400 million, and is targeting the deal’s closure by July, three people with direct knowledge said. The Indian REIT of one of the world’s largest alternative asset groups Brookfield manages 18.7 million square feet (1.7 million square metres) of office parks and buildings in cities such as Mumbai, Kolkata and Gurugram near New Delhi. Its tenants include Accenture, Amazon and Samsung Electronics.
2. Hyderabad surpasses Bengaluru with highest new office supply in FY23
The commercial office space market in the top 7 cities of India experienced a mixed performance in the fiscal year 2023, with the first half doing much better than the second. According to the latest data from ANAROCK, Hyderabad emerged as the frontrunner, surpassing Bengaluru, with the highest influx of new office supply.
3. Uttarakhand government plans greenfield city in Kichha
The state government intends to develop five to seven new cities, starting with greenfield city project on a 2000-acre site in Kichha, Udham Singh Nagar. This move aims to drive economic growth and create employment opportunities.
The real estate developer, Wave Mega City Centre Private Limited, has deposited Rs 96 crore to the district administration as part of settlement of the recovery certificates (RCs) having a total value of Rs 136 crore, issued by UP-Rera. In May, the district administration issued an order to auction off 38 shops build by the developer in a commercial project in Sector 18 over the non-payment of UP-Rera’s dues.
5. Institutional investors, occupiers flock towards green-certified realty projects
A significant focus on setting long-term sustainability goals across industries is resulting in higher preference among global institutional investors and developers for green buildings with corporate office occupiers driving the shift towards climate-conscious properties with lower carbon emissions.
6. GIC in talks to acquire warehousing assets from ESR for $400 million
Singapore’s sovereign wealth fund GIC is in talks with warehousing developer ESR group to pick up a 10 million square feet portfolio of warehousing space for an enterprise valuation of around $400 million (approximately Rs 3,300 crore).
7. Blackstone bets big on India’s warehousing, to grow logistics portfolio to 100 million sq ft
Global private equity major Blackstone Group is betting big on warehousing and logistics development in India owing to the rising consumption led by demographics, ecommerce penetration and supporting regulatory initiatives by the government. The institutional investor is looking to expand its warehousing portfolio in the country by 2.5 times to 100 million sq ft from current 40 million sq ft in the next 3-5 years.
8. Property prices rise in 43 cities in Q4 of FY23: NHB
As per the National Housing Bank (NHB) data released on Thursday, 43 cities out of 50 have registered an increase in property prices during fourth quarter of 2022-23. While majority of the cities have registered an increase, seven cities have registered a decline in the property prices. The home loan rates are still lower than that of pre-Covid period leading to a healthy affordability overall.
9. RBI’s repo rate status quo likely to help ongoing real estate sales momentum
The Reserve Bank of India’s decision to hold repo rate for the second successive instance at 6.5% is expected to help the real estate market sustain its momentum of steady growth in residential sales especially in the interest-rate sensitive segment of affordable, low- and mid-Income housing.
1. Spain to tighten golden visa rules for real estate investors
Spanish officials are considering making it more difficult to provide golden visas to foreign investors. Spain may end its infamous “golden visa” programs, which offers resident rights to foreigners who invest in real estate there. Spain golden visa programs grants three-year residency permits to buyers of property worth at least 500,000 euros ($551,650) and their families.
2. Potential ‘time bomb’ for US economy looms as $1.5 trillion in real estate mortgages will come due within the next two years
Some $1.5 trillion in real-estate mortgages will come due in the next two years – paving the way for a potential financial crisis as higher interest rates push down property values. As this event looms, big banks such as Wells Fargo are already cutting their losses by preparing to offload debts at a discount even when borrowers are up to date – a sign of their lack of faith in the once stalwart commercial real estate market.
3. Billionaire investor Jeff Greene made $800 million betting against the last housing bubble. He just rang the alarm on US real estate
A real-estate billionaire who made a fortune shorting the mid-2000s housing bubble is bracing for another painful downturn. “We are heading into a very frightening time in the entire real-estate industry,” Jeff Greene warned in a Fox Business interview. He said many businesses and consumers would fall behind on their rent and mortgage payments because of higher interest rates and struggle to secure financing as banks pull back from lending.
4. 30% of Qatari HNWI set to spend more than US$ 1 million on real estate this year
Residential and Office Sectors Emerge as Top Investment Choices for Qatari HNWIs The survey reveals a preference for the residential sector among the interviewed HNWIs, with 37% naming it as their primary investment target. The office sector is a close second, preferred by 33%, and the retail sector completes the top three with a 23% preference.
5. BrainBox AI Proudly Unveils Its Autonomous Decarbonization Suite for the Commercial and Retail Real Estate Markets
BrainBox AI’s Autonomous Decarbonization solution suite is created as an end-to-end sustainability platform for commercial and retail real estate portfolio owners seeking an AI-driven emissions reduction solution to propel their decarbonization journey.
6. Foreign institutional inflows surge in real estate in India
The real estate sector in India has witnessed a remarkable increase in foreign institutional inflows, with a staggering three-fold rise of $26.6 billion between 2017 and 2022, according to a report by real estate services firm Colliers. This surge can be attributed to recent structural and policy reforms that have improved transparency and ease of doing business in the sector.