Weekly Real Estate News Tracker- 18 June
MUMBAI UPDATES
1. Average Property Price In MMR Falls By 2%
In the last one year, the average real estate prices went up in double digits across the cities of India except for Mumbai, where a reverse was observed with 2% fall. Year-on-Year (YoY) the highest change was witnessed in NCR with 16% hike followed by Kolkata property market with 15% appreciation. MMR is at the bottom of the chart with an average real estate price actually decreasing by 2%. In Chennai, the average hike was nominal at 4%.
Read more at : Mumbai News: Average Property Price In MMR Falls By 2% (freepressjournal.in)
2. Average Flat Size In MMR Shrinks by 43% In a Decade, While Real Estate Prices Soar
In a decade, the average flat size in the Mumbai Metropolitan Region (MMR) has shrunk by almost 43%, on the other hand the real estate prices have continued to soar in several of the micro markets of the region. Back in 2014, a 3 BHK apartment would be spread over 960 square feet (sq. ft.), which got reduced to 700 sq. ft. in 2018. Since 2018, the average apartment size has further shrunk to 550 sq. ft, shows property consultant Anarock’s data.
Read more at : Average Flat Size In MMR Shrinks by 43% In a Decade, While Real Estate Prices Soar, Shows Data (msn.com)
3. MahaRERA to begin grading of realty projects
The Maharashtra Real Estate Regulatory Authority (MahaRERA) is contemplating setting up a grading system for real estate projects and has invited public suggestions and objections. The real estate body issued a notification on June 16. Explaining the rationale, it claimed that there were several types of grading mechanisms globally, and having a grading system for projects will benefit consumers, allowing home buyers to get a better sense of which projects best fit their needs and budget.
Read more at : MahaRERA to begin grading of realty projects | Mumbai News, The Indian Express
4. Brookfield-Digital Realty JV to invest Rs 2,000 crore to develop data center in Mumbai
BAM Digital Realty, a joint venture between Brookfield Infrastructure and Digital Realty, is planning to invest over Rs 2,000 crore to develop a data center with capacity of 35 MW IT load in Mumbai’s Chandivali locality.
5. Project-affected persons to get Rs 25-40 lakh from BMC instead of 300 sq ft homes
The BMC will pay at least Rs 25 lakh to a maximum of Rs 40 lakh to those whose residential units have to be demolished to make way for vital infrastructure projects in the city. The compensation is to be paid in lieu of 300 sq ft tenements to project-affected persons (PAPs), mainly slumdwellers who have proved they were living in those areas before January 2000.
Read more at: Mumbai: Project-affected persons to get Rs 25-40 lakh from BMC instead of 300 sq ft homes, ET RealEstate (indiatimes.com)
6. Kalpataru acquires redevelopment project in Mumbai’s Borivali, to invest Rs 700 crore
Realty developer Kalpataru has acquired the rights to redevelop a housing society spread over nearly 6 acres in Mumbai’s Borivali suburb and is planning to invest around Rs 700 crore to develop an over 7 lakh sq ft residential project here. The project involving redevelopment of the Yoganand Co-Operative Housing Society, which currently accommodates nearly 400 residents, is expected to be completed in 3-4 years.
Read more at: Kalpataru acquires redevelopment project in Mumbai’s Borivali, to invest Rs 700 crore – The Economic Times (indiatimes.com)
NCR UPDATES
1. About 760 of 2,000 plaints on flaws in property tax data resolved: Gurugram civic body
Of 2,027 complaints filed to rectify property tax data, MCG has resolved 760 complaints were received during the camps organized across the city on June 10 and 11. The civic body received a total of 2,027 complaints to rectify data of the property tax out of which 1,140 complaints were filed online and 887 complaints were filed offline in the camps.
2. Haryana: Panel report on fourth-floor policy likely by June 30
In February, the state government put approval of fourth floors on hold after wide-scale protests by residents’ groups who claimed that floors have been constructed across residential colonies in the city, but not much work has been done to augment infrastructure such as roads, power supply, sewerage and drainage. The following month, it set up the expert committee to devise the further course of action regarding suspension of approvals for fresh four-floor building plans.
Read more at : Panel Report On 4th-floor Policy Likely By June 30, Real Estate News, ET RealEstate (indiatimes.com)
3. Supertech plans to raise Rs 1,600 cr by July to complete 18 ongoing housing projects in NCR
Realty firm Supertech Ltd plans to raise around Rs 1,600 crore from institutional investors by July to complete its 18 ongoing housing projects across Delhi-NCR, its Chairman RK Arora said. The company has signed a term sheet with investors to raise this interim funding, and due diligence is currently undergoing.
4. Visual surveys of 90% highrises over, detailed checks soon to pick 15 societies
The structural audit agencies empanelled by the district administration have completed visual surveys of 90% of over 70 high rise societies in Gurugram where residents had complained about serious structural defects. Surveys of the remaining societies are likely to be completed in a week.
Read more at: Visual Surveys Of 90% Highrises Over, Detailed Checks Soon To Pick 15, ET RealEstate (indiatimes.com)
5. DDA nod to phase-IV of online first come first, serve housing scheme, launch on Jun 30
The highest decision-making body of the Delhi Development Authority gave its nod to launch on June 30 the phase-IV of DDA’s online first come, first serve housing scheme with the facility of booking a flat of one’s choice in a preferred locality by paying a token booking amount. Besides, there is no conditionality of owning any plot or house in Delhi for booking these flats thereby facilitating ownership of multiple houses by members of an extended family for improved urban living.
Read more at : DDA nod to phase-IV of online first come first, serve housing scheme, launch on Jun 30 – The Economic Times (indiatimes.com)
6. Property records missing, Gurugram civic body lost Rs 462 crore in 11 years
MCG suffered revenue losses amounting to Rs 461.7 crore between 2010-11 and 2021-22 as it was unable to levy and collect property tax from 1,252 institutional property owners due to unavailability of records, an audit of its taxation department has found. Its report pointed out that names of owners of these properties falling under MCG’s zones 1 and 4 were missing from the corporation’s records.
Read more at: Property Records Missing, Mcg Lost ₹462cr In 11 Yrs, Finds Audit, ET RealEstate (indiatimes.com)
INDIA UPDATES
1. Godrej Properties to acquire 7.44-acre land parcel in Kolkata’s New Alipore
Godrej Properties, the real estate development business of the Godrej Group, has entered into an agreement to acquire an around 7.44-acre land parcel in Kolkata’s New Alipore from West Bengal Housing Infrastructure Development Corporation Ltd. The developer has emerged as the highest bidder in an e-auction conducted by the authority.
2. CBRE’s project management business to increase employee’s strength by 40%
CBRE South Asia Pvt. Ltd, a real estate consulting firm, has surpassed total portfolio by 1 billion sq ft area under the company’s project management (PJM) business division in 2022. The top five sectors that witnessed the highest capital spend include residential (USD 5.8 billion), mixed use (USD 3.57 billion), office (USD 1.88 billion), industrial & logistics (USD 1.19 billion), and education (USD 0.13 billion).
3. Housing prices continue to rise across key Indian cities led by robust sales
Housing prices have continued to rise across top cities in India led by robust growth in residential sales momentum despite higher mortgage rates. Prices rose around 8 per cent from a year ago during the quarter ended March on the back of a consistent demand pattern, showed a CREDAI-Colliers-Liases Foras report.
Read more at: Housing prices continue to rise across key Indian cities led by robust sales – The Economic Times (indiatimes.com)
4. EY Global Delivery Services India renews office lease in Bengaluru
EY Global Delivery Services India has renewed office lease for 420,000 square feet office space in Bengaluru. The move comes at a time when companies have largely turned cautious in expanding their operations amid a global financial slowdown.
Read more at:bengaluru: EY Global Delivery Services India renews office lease in Bengaluru – The Economic Times (indiatimes.com)
5. WeWork India expands its footprint in Hyderabad, adding over 100k sq. ft. at Raheja Mindspace
WeWork India, the flex-space providers has expanded its presence in Hyderbad by signing new office space at Raheja Mindspace in Hyderabad. Spread over a sprawling 100,000 sq.ft with a desk capacity of over 1500, the workspace is all set to open in August, 2023. This is the third workspace that WeWork India is opening in Hyderabad.
6. Warehousing demand at new peak led by manufacturing, third-party logistics, retail sector
The surge in activities from the manufacturing, third-party logistics (3PL), and retail sectors has driven the demand for warehousing to a new peak across India’s key logistics markets including 8 primary and 17 other secondary markets. The country’s top 8 markets have experienced a historic high in demand, reaching 51.3 million sq ft in 2022-23 and taking the compounded annual growth rate (CAGR) to 24% between 2016-17 and 2022-23
Read more at: third party logistics: Warehousing demand at new peak led by manufacturing, third-party logistics, retail sector – The Economic Times (indiatimes.com)
7. Ahmedabad civic body to sell properties on sale deed instead of 99-year lease to avoid paying 18% GST
The civic body now has decided to sell all its newly constructed properties on sale deeds instead of auctioning it on a 99-year lease. This is to avoid paying 18% goods and services tax (GST) on the auction of properties based on lease deeds. This policy, however, will not apply to open plots.
Read more at: Amc To Sell Properties On Sale Deed Instead Of 99-year Lease To Avoid Paying 18% Gst, ET RealEstate (indiatimes.com)
8. India Emerges as a Global Leader in LEED Zero Projects
India has emerged as a top country with LEED Zero green building projects, outperforming the United States and China said theU.S. Green Building Council (USGBC) and Green Business Certification Inc (GBCI). India-based real estate developer DLF is the leader globally in total LEED Zero certifications with 45 certifications, followed by ITC Group with 15 certifications.
Read more at : leed zero: India Emerges as a Global Leader in LEED Zero Projects – The Economic Times (indiatimes.com)
9. Mall operators’ rental income to rise 8-10% in FY24: ICRA
Retail mall operators rental income is expected to increase by 8-10% from a year ago in the current financial year 2023-2024, supported by improvement in trading values due to healthy retail sales and contracted rental escalations, said ratings agency ICRA. Trading values in the ongoing financial year are expected to improve by 4-5% with healthy sales across the product categories like jewellery, electronics, apparels and increase in spends toward food, beverages, and entertainment segmen ..
Read more at: Mall operators’ rental income to rise 8-10% in FY24: ICRA – The Economic Times (indiatimes.com)
GLOBAL UPDATES
1. Singapore real estate face 46% rise in physical damage losses by 2030 if climate change unabated
Climate change poses serious risks for real estate in Singapore, potentially causing a 46% rise in physical damage losses by 2030 due to flooding. The material risks for real estate are rainfall-induced flooding and extreme heat events, says Entela Benz, founder and CEO of Asia-based climate-tech company Intensel. Benz’s firm conducted an analysis of 25 assets spread across Singapore, and warns that a “worst-case scenario” of a 3.3°C to 5.7°C rise in temperatures by 2100 will bring a 58% rise in physical damage losses due to flooding by mid-century.
Read more at : Singapore real estate face 46% rise in physical damage losses by 2030 if climate change unabated: study (yahoo.com)
2. China’s real estate slump predicted to last for years, threatening to spill into the wider region
Weakness in China’s real estate sector could be a drag on the economy for years to come and could even impact countries in the wider region, Wall Street banks have warned. Goldman’s economists said the property market is expected to see an “L-shaped recovery” — defined as steep declines followed by a slow recovery rate.
Read more at : China’s real estate slump predicted to last for years, threatening to spill into the wider region (msn.com)
3. Why the resilience of Asian real estate prices is not such good news
For financial markets, one of the most consequential shifts in policy this year was last week’s unexpected decision by the Reserve Bank of Australia (RBA) to continue raising interest rates despite pausing its tightening campaign in April, and in the face of growing evidence that the rise in rates is taking its toll on the economy. The resumption of tightening – Canada’s central bank also raised rates following a brief pause – shows the degree to which the scale and persistence of inflation have been underestimated. It also casts doubt on the prevailing narrative in markets that rates have reached their peak and will start to fall later this year.
Read more at : Why the resilience of Asian real estate prices is not such good news (msn.com)
4. Commercial real estate troubles are so pronounced that Goldman Sachs’ CEO says even a soft landing won’t prevent pain
Goldman Sachs CEO David Solomon stressed that the economy has proved to be “incredibly resilient,” which has surprised him. However, there’s a certain sector that he sees as a risk. After being asked a surge in commercial real estate loan delinquencies in Goldman Sachs’ portfolio, Solomon told CNBC that real estate is the “single largest asset class in the world.” As the Federal Reserve aggressively raised interest rates in an attempt to lower inflation, it has significantly affected the commercial real estate sector.
Read more at : Commercial real estate troubles are so pronounced that Goldman Sachs’ CEO says even a soft landing won’t prevent pain (msn.com)
5. Decoding NRI Real Estate Investment Hotspots In India’s Near Future
The Indian real estate segment demonstrates an upward trajectory with the projection to exhibit a growth rate of 9.2% CAGR during 2023-2028, the report had added. Around 52% of NRIs consider investing in Commercial Real Estate (CRE) to diversify their portfolio in the Indian real estate segment. This exhibits CRE as one of the most preferred asset classes for NRIs over others like the residential segment.
Read more at : Decoding NRI Real Estate Investment Hotspots In India’s Near Future (msn.com)
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