Monthly Archives: May 2024

The rise of offbeat destinations is a paradigm shift in residential real estate

Posted on by

Offbeat real estate destinations are becoming increasingly popular, reflecting a broader trend toward a balanced and enriching lifestyle. 

Over the last few years, the Indian real estate sector has experienced a significant shift, with homebuyers increasingly seeking serene and offbeat destinations far from the hustle and bustle of major cities. Sonipat, Bhiwadi, Panchkula, and Meerut have emerged as top residential investment destinations, offering a combination of natural beauty, cultural richness, and a thriving economy. This transition reflects a desire for a higher quality of life, where serenity and modern amenities coexist in a relaxed setting. 

Neoliv’s founder and CEO, Mohit Malhotra, says, “We envision that new-age cities will become the crucible of future economic dynamism. Their appeal stems from a harmonious combination of affordability, accessibility, and lifestyle amenities, creating new relaxed places to call home. Furthermore, the extended NCR is seeing significant infrastructure improvements, thanks to government initiatives to promote sustainable development. With the emergence of large global-scale industries such as the upcoming Maruti Suzuki plant in the Sonipat belt, these areas are poised to drive demand for mid-income housing projects and plotted developments, transforming into vibrant residential neighborhoods.” 

Offbeat destinations are gaining popularity, indicating a broader trend toward a more balanced and enriching lifestyle. For example, Bhiwadi, once an obscure industrial town in the National Capital Region (NCR), is quickly establishing itself as a new real estate development, with parallels to Sohna Road’s highly sought-after micro-market. Bhiwadi with its strategic location, robust infrastructure, and emerging commercial and residential ventures, is on track for exponential growth, similar to Sohna Road in Gurugram. 

Anil Gupta, President of CREDAI NCR Bhiwai Neemrana, says, “Bhiwadi has enormous growth and investment potential due to its strategic location, robust infrastructure, and burgeoning commercial and residential developments. When the region is connected to the Delhi-Mumbai Expressway, its potential for growth and prosperity increases. As stakeholders in Bhiwadi’s development, we are confident in the town’s potential to become a key destination in the NCR, providing unparalleled opportunities for growth and prosperity. 

More and more families are relocating to these areas, drawn by the prospect of a better lifestyle and excellent investment opportunities. Panchkula, for example, has grown significantly. DLF’s luxurious residential project, The Valley, which debuted in 2010, has seen property values rise from Rs 2,000 per sq ft to an impressive Rs 8,000. This remarkable ascent highlights the tranquil town’s untapped potential, with DLF leading the charge. Their projects, which include The Valley, The Valley Gardens, and their most recent offering, The Valley Orchard, have paved the way for increased demand for homes in these areas. The Valley Gardens spans 34 acres (13.76 hectares) and offers breathtaking views of the Morni Hills and Shivalik Range. DLF unveiled its sample apartment, allowing potential buyers to experience luxury living firsthand. 

These tier-2 cities are expanding rapidly, thanks to improved infrastructure such as better roads, public transportation, and vibrant commercial districts. Most importantly, it provides a peaceful yet connected lifestyle, which tier-1 cities struggle with due to overcrowding and rising property prices. This development includes physical, cultural, and economic growth, creating new opportunities to revitalize local economies. 

Rahul Singla, Director of Mapsko Group, says, “In recent years, tier-2 cities like Sonipat have seen the emergence of the organized real estate market, which has provided unprecedented growth and development opportunities for the developing city. Sonipat offers an enticing combination of affordability and quality of life in an ever-changing landscape, as remote work options gain popularity. Homebuyers prefer spacious homes against a backdrop of lush greenery, which provides a respite from densely populated urban areas. Sonipat’s appeal extends beyond its economic prospects, with buyers prioritizing wellness and sustainability in their investment decisions.

This seismic change in style signals a fundamental reimagining of the Indian residential landscape. It demonstrates a growing desire for a lifestyle that transcends the mundane, promising a future of limitless innovation and steady growth. Indeed, the road ahead in residential real estate is paved with unique destinations where tranquility and modernity meet, beckoning those looking to invest in a lifestyle rather than just bricks and mortar.  

Luxury villas in the sky: Mumbai residents are now upgrading to duplex and triplex apartments

Posted on by

Move over, Jodi Apartments: Duplex and triplex homes are the most popular trend in Mumbai. Experiencing ‘villas in the sky’ rather than combining two apartments into a ‘Jodi unit’ is the new norm, particularly among luxury homebuyers looking to upgrade to larger properties. 

Advertisements promoting ‘the lavish lifestyle with cost-effective duplex  flats in Mumbai’ or a beautifully designed 4 BHK duplex apartment with a private terrace for sale in Bandra.’ It is appropriate for a large family, so do not be surprised. Vertical instead of horizontal spread is the trend, and Mumbai residents are going all out to get a piece of this luxury living. 

Jodi apartments, balconies, and duplex housing units 

If the Jodi apartment concept, or the trend of balconies, gained traction in Mumbai earlier, it is time for duplex and triplex apartments. Jodi apartments combine two or more housing units into one. Jodi apartments and the duplex/triplex units provide more space and privacy for large families living under one roof. Buyers willing to pay a premium are now looking to improve their lifestyle by moving into duplex or triplex apartments. 

Suraj Estate Developers is selling the 42-story Ocean Star Tower built by Prabhadevi.

“We are now offering separate floors for the 50-story project ‘Suraj The Palette’ in Dadar (W). However, we can always change the plan if there is a high demand for duplex units on our upper floors,” said Rahul Thomas, Suraj Estate Developers’ Wholetime Director. 

Ocean Star, Tranquil Bay, and Mangrish are the company’s projects, which offer duplex apartments ranging in size from 2600 to 5000 square feet. 

“The trend among Mumbai buyers to own duplex and triplex apartments reflects a shift in their tastes. Most high-net-worth individuals value spacious living over price,” he told HT Digital. 

Sky bungalows have double-height living spaces.

“We have identified an inclination towards duplex apartments, with individuals desiring ‘sky bungalows’ that feature double height living spaces with a ceiling height of 24 feet in the living room- a feature typically only in villas,” he adds.  

HNIs in Mumbai are considering upgrading their lifestyle to duplex and triplex apartments. According to Parth K Mehta, CMD of Paradigm Realty, these homes are investments and lifestyle statements. Prices range between Rs 12.5 crore and Rs 100 crore. 

Redevelopment projects meeting the demand  for duplex and triplex units 

According to Ritiesh Mehta, Senior Director and Head (North and West), of residential services and developer initiative, JJL India, the trend for duplexes and triplexes is becoming more prevalent in Mumbai, particularly as redevelopment activity increases in the city.

“Many of these redevelopment plots are small land parcels, and there is little room to turn a 1000 sq ft into 3000 sq ft apartment horizontally. Rather than Jodi apartments, demand has shifted to vertical units with greater height and larger floor plans,” he said. 

“Prices for sea-facing duplex and triplex luxury housing units typically range between 10% and 15% higher,” he said. 

Architects believe that Mumbaikars’ design preferences have changed since the pandemic. Many buyers today prefer vertically distributed housing units over horizontally distributed ones. They are currently looking for more floor height. 

“Even if you combine two apartments into one Jodi, the ceiling height remains constant. People want more volume in terms of height; they want double height homes with more space and high ceilings, which may not be possible on a single floor,” said architect Hardik Pandit, director of APICES Studio Pvt Ltd, to HT Digital. 

The number of duplex and triplex units in a building depends on its number of stories and location. “We initially plan for two to three of these units in a building, but we may decide to increase the number on the upper floors based on demand.” 

These units are typically found on the higher floors of a sea-facing building and command a premium in terms of price,” he said. 

Will the duplex replace the Jodi apartment concept? 

When asked if this concept is expected to replace the ‘Jodi trend in Mumbai, he stated that the demand for ‘Jodi apartments’ will continue because it is age-related. “If a family consists of young children, they may prefer to go in for a duplex or triplex for that bungalow experience within an apartment; however, if the buyers are elderly, they may want to go in for a large ‘Jodi apartment.” 

It is also worth noting that duplex and triplex apartments are usually only available in certain areas. “If you have quite a few of these units, sales may slow down due to their high cost.” Furthermore, these will only thrive in certain environments, particularly sea-facing buildings. “Many of these units have design features like viewing decks and terraces,” he says. 

NCR luxury real estate: Capital appreciation takes center stage as wealthy Indians and NRIs increase their investments

Posted on by

Luxury and super-luxury residences at DLF Golf Links, DLF 5 in Gurgaon, including The Camellias, The Magnolia, and The Aralias, have seen a price increase of approximately 125 percent between 2021 and 2024. 

Luxury real estate was once only desirable for opulent living spaces, but it has now become a popular investment vehicle for affluent Indians looking to make significant capital gains. 

According to real estate experts, the rising demand for luxury living in the National Capital Region, particularly in Gurgaon, has led to significant growth in the market capitalization. 

They stated that luxury and super-luxury residences at DLF Golf Links, DLF 5 in Gurgaon, such as The Camellias, The Magnolia, and The Aralias, experienced a 125 percent price increase between 2021 and 2024. 

Demand for high-end luxury properties has increased significantly over the past decade due to homebuyers’ growing desire to invest in a place to live and a high-quality asset with good returns. 

Aakash Ohri,  Joint Managing Director and Chief Business Officer at DLF, stated the rise in wealth creation has expanded the luxury real estate market, driven by economic resilience among the affluent segments, who see real estate as not only an appreciating asset but also one with tangible and intrinsic value. 

“Moreover, the interest of the Indian diaspora in investing back into the country, fueled by emotional ties, favorable currency exchange rates, and simplified investment processes, has further bolstered the demand for luxury properties,” Ohri stated.

Where do HNIs buy? 

In January 2024, Smiti Agarwal, wife of Hemant Agarwal, CMD of retail giant V-Bazaar, paid Rs 95 crore for a 10,813 square-foot unit at DLF The Camellias in Gurgaon. 

Similarly, in October 2023, an 11,000-square-foot apartment at The Camellias sold for Rs 114 crore. The Camellias on upscale Golf Course Road has become a popular residential development for corporate executives and start-up entrepreneurs. According to sources, the founders of at least a dozen startups have purchased luxury residencies at The Camellias. 

Deep Kalra, the founder of MakeMyTrip, Sameer Manchanda of Den Networks, Aman Sharma of Boat, and entrepreneur Ashish Gurnani have all purchased super-luxury flats at DLF The Camellias. 

Vasudha Rohatgi, wife of former Indian Attorney General Mukul Rohatgi, paid Rs 160 crore for an 18,900-square-foot bungalow in Tony Golf Links in February 2023. 

Bhanu Chopra, the founder of RateGain, paid Rs 127.5 crore for a bungalow in Golf Links that month.

According to Shashank Vashishtha, Executive Director of Exp Realty India, the market has seen significant capital appreciation due to the growing demand for luxury living in the NCR. Golf Course Road, DLF 5, and Golf Links are the top choices for HNIs and NRIs seeking luxury and ultra-luxury residencies.”  

Capital Appreciation

Real estate brokers reported that super luxury residencies at DLF Golf Links, such as DLF The Aralias, have increased in price from Rs 12.5 crore in 2021 to Rs 27 crore as of JANUARY 2024. Prices in DLF The Magnilias have risen from Rs 16 crore in 2021 to Rs 35.5 crore in 2024. Similarly, prices for apartments in DLF The Camellias have skyrocketed from Rs 33-35 crore in 2021 to Rs 75 crore in 2024. 

They claim that the story has been similar to other ultra-luxury properties in capital appreciation, making luxury real estate an attractive investment option for HNIs. TARC Tripundra, located opposite Pushpanjali Farms in New Delhi, has seen a 70% increase in the last 18 months, with current rates reaching 26,000 per square foot. 

Siddharth S Sharma, GM of Sales at Elitepro Infra, a real estate consultancy, stated that prices in the luxury segment have skyrocketed in Gurgaon’s prime locations such as Golf Course Road, Golf Course Extension, and Southern Peripheral Road. DLF sold out a luxury housing project in 72 hours, demonstrating the high demand for such residencies. 

“Properties in other micro markets, such as M3M’s Trump Towers, have seen capital appreciation from an initial 10,500 PSF at launch to 30,500 PSF today. Another example is DLF’s The Crest, whose value has risen from 13,000 PSF to between 38,000 and 40,000 PSF today. These figures demonstrate that investing in luxury real estate is still viable,” he said. 

Why do HNIs and NRIs invest in luxury real estate? 

Sankey Prasad, Chairman, MD, India, and CMD Middle East Project Leaders at Collier’s, stated that while the US dollar’s strength against the Indian rupee attracts NRIs, capital appreciation drives HNIs to invest in the luxury residential real estate sector. 

“Approximately  44 percent of high-net-worth individuals are interested in investing in luxury real estate for capital appreciation. This is significant because it encourages them to accumulate assets for future generations and use their luxury properties to generate revenue. Wealthy homebuyers are unconcerned about the 40% increase in luxury  home prices over the last two ears because they believe the Reserve Bank of India (RBI) will lower interest rates in 2024, making it more affordable for them to purchase such properties.” 

Who is investing in Indian real estate, and where? Check this report.

Posted on by

According to a Cushman & Wakefield report, the Indian real estate sector received USD 1.1 billion in investments in Q1 2024, with the residential real estate sector outperforming other asset classes and attracting investments of nearly $693 million. 

In recent quarters, the residential sector has been on an upward trend, driven by strong housing demand and resurgent supply. It has also attracted a great deal of capital from investors in Q1 2024, who are banking on the segment’s bull run, which accounted for more than 63% of total realty investments in the quarter. 

In absolute terms, the Q1 2024 investment inflow into the residential market is twice the quarterly average over the previous eight quarters. 

Furthermore, nearly 48% of investment in the residential sector was concentrated in the early stages of development across the top eight cities, indicating increased investor interest, a steady rise in residential capital values across cities, and a growing share of high-end luxury launches.  

Who is investing the most? 

According to the report, domestic investors maintained a strong investment momentum, accounting for 57% of total quarterly investments. Foreign investors and collaborative (or mixed) deals accounted for 43% of the inflows in Q1 2024. This is consistent with the trend observed in 2023 when domestic investors participated in Indian real estate. 

In terms of city-specific split, Bangalore led the way, accounting for 25.6% of total investments in Q1 2024, with more than half of the share going to the city’s office sector. Pune ranked second in terms of investment volume, accounting for 14%. 

Investment in equity

Equity investments in the real estate sector stood at 58% in Q1 2024, while debt investments increased to double the quarterly average level of the previous eight quarters, with almost all of that going to the residential sector. 

The office sector remained the preferred sector among equity investors, accounting for 43%, closely followed by residential investments (38%). Despite a slowdown from the previous quarter, early-stage deals remained consistent with the average in-flows over the last eight quarters. 

In addition, corporate transaction volumes increased by 65% year on year, reaching INR 12.78 billion (USD 0.15 million). Mumbai continued to drive transaction value, accounting for 57% of the total, followed by Pune at 33%. 

According to Somy Thomas, MD of valuation & advisory and capital markets at Cushman & Wakefield, “Q1 2024 saw another strong quarter of capital inflow into the Indian real estate sector, with residential dominating due to renewed customer and investor confidence. This strong performance has piqued investors’ interest, prompting them to invest in a market that is expected to grow even more. 

“Domestic investors increased their investment in the quarter, providing additional protection against potential global headwinds while strengthening India’s domestic market and investor interests. As we start the new fiscal year, we expect this momentum to continue, with potentially more diverse investments in the future. 

Hiring in real estate and construction surges by 86%; Delhi, Bengaluru, and Mumbai lead: report

Posted on by

A strong business environment, an increase in warehousing and industrial needs, commercial housing requirements as migration grows, the opening of manufacturing facilities, and other factors may all contribute to this trend.

Between March 2023 and March 2024, the number of construction and real estate employees increased by 86%. According to Indeed, the surge in demand has been accompanied by a 57% increase in job seekers’ interest, with Delhi, Bengaluru, and Mumbai leading the way. 

According to Indeed Data, Delhi had the highest construction hiring rate, at 5.05 percent, followed by Bengaluru (4.68 percent) and Mumbai (4.13 percent). A strong business environment, an upsurge in warehousing and industrial needs, increased commercial housing requirements as migration rises, the opening of manufacturing facilities, and other factors could all contribute to this trend. 

“Smaller cities such as Ernakulum (2%), Kochi (1.50%), Lucknow (1.38%), and Calicut (1.25%) are among the top regions attracting job seekers’ attention. This trend could be attributed to low living costs or local job opportunities that allow people to work closer to home. Indeed lists Ernakulum, Calicut, and Kochi as Tier 2 and 3 cities with the most job postings. 

Engineers (17.18 percent), project leads and supervisors (8 percent), and architects (5 percent) are the most popular job roles, according to job postings. In line with demand, job seekers are interested in engineers (21.31 percent), project leads and supervisors (9.33 percent), and architects (4.27 percent). As construction becomes more complex and technical, the industry requires more skilled workers. 

According to the findings, Sashi Kumar, head of sales at Indeed India, stated, “The construction industry continues to be a key driver of economic growth, providing enormous opportunities for skilled professionals and semi-skilled labor. The significant increase in hiring points to promising prospects for job seekers and employers, while the increase in job seeker interest reflects the industry’s strong momentum.” 

Global investors are shifting to alternative assets; institutional investments in Indian real estate are up 16% since 2021

Posted on by

The COVID019 pandemic, as well as interest rate fluctuations, have had a significant impact on the Asia-Pacific real estate sector. While COVID-19 is no longer considered a global health emergency, interest rate changes continue to play a role in the market’s direction. 

Global volatility has made the real estate market unpredictable. Owners and investors now value consistent yields over capital gains. Furthermore, investors and occupiers are increasingly aware of their ESG credentials. Quantifying the positive impact of green practices on property values requires collaboration among industry stakeholders. In an uncertain world, regular valuation reviews can help manage portfolio risk. 

India’s real estate investments have increased by 16% since 2021, thanks in part to central banks enforcing stricter monetary policies, slowing commercial real estate (CRE) growth in developed countries, and global investors shifting their focus to alternative investments. 

Bengaluru, India’s largest commercial real estate (CRE) market, has seen an increase in foreign and domestic investment. However, no significant cap rate compression has been detected. This lack of compression can be attributed to macroeconomic factors such as inflation, credit conditions, and interest rate policies, which affect asset valuations. 

Bengaluru’s commercial real estate (CRE) sector is expected to expand rapidly in the coming year, with rents rising modestly. These positive trends are influenced by macroeconomic factors, which keep cap rates relatively stable. While retail consumption growth is expected to slow, this will result in more consistent net operating income (NOI) growth and potentially fewer transactions in the retail asset market. Meanwhile, industrial cap rates may be slightly lower due to increased capital exposure and demand. 

Looking at the Mumbai region, there was a noticeable increase in consumption demand following the pandemic. This growth was most visible in average trade densities, which resulted in higher in-place rents for organized retail assets. These retail properties used a model that combined minimum rent with revenue sharing, resulting in higher Net Operating incomes (NOIs) and thus higher valuations.  

This hyper-growth was primarily limited to the luxury and premium market segments, with little benefit to the overall retail market, including high streets. Yields stabilized, maintenance capital expenditures increased, and gross rents remained flat, causing retail capitalization rates to remain range-bound in recent years. Cap rates for retail and commercial real estate (CRE) assets are expected to remain stable, as capital allocations and trades show no significant improvement from an institutional standpoint. 

Continued growth in private consumption, business demand, and supportive policy measures led to significant investments in industrial assets, particularly warehousing and data centers. As a result, asset valuations improved as cap rates fell 150-200 basis points below 2020 levels. Industrial cap rates are expected to decline slightly due to increased capital exposure, strong demand, and supportive incentive programs to encourage investment in this sector.   

Understanding Property Types and Investment Opportunities in Real Estate

Posted on by

Despite a spike in home loan interest rates, the residential real estate market performed well, indicating a positive industry sentiment. 

Investing in the stock market is a game-changer for those who can monitor it regularly, as it requires investors’ full attention from 8:30 a.m. to market close. Because of its volatility, equity is no longer the best investment. People are now turning to real estate because it offers long-term benefits. It is regarded as the correct move, particularly when the sector is at its highest level. 

For example, despite the local water crisis, Gurugram has set all-time highs in property prices. Because of the proximity of offices in the surrounding areas, Delhi/NCR has become the preferred destination for IT professionals. As demand in Noida, Greater Noida West, and New Noida grows, many large projects have relocated there. 

Why do prices increase? 

As the government has announced numerous infrastructure projects in Uttar Pradesh, it is clear that NCR will be a new residential and rental income source for many people. At the E&Y Infrastructure Roundtable, Ajit Krishnan, EY India Partner International Tax and Transaction Services, stated, “Investments in renewable energy and roads drive India’s infrastructure growth, paving the way for sustainable development.” 

On February 8, 2024, Uttar Pradesh Chief Minister Yogi Adityanath announced infrastructure projects and public welfare schemes, including plans for 21 new airports in the city. Tourism in Ayodhya had already peaked with the opening of the Ram Mandir, with 1.12 crore visitors arriving before the temple was open to the public.

This is not the only factor influencing the current state of the real estate market. The geopolitical landscape has exerted significant pressure on the sector. According to Anarock Capital’s Flux report for the first nine months of FY24, PE investments declined by approximately 26%. During this time, foreign and domestic investors saw a decline in activity. 

Despite the presence of many bankrupt builders, Noida and Greater Noida West have attracted several large projects. It demonstrates that the real sector has the potential for regular income and significant lump sum gains. Gurugram has become a dream for those earning between Rs 15 lakh and Rs 20 lakh as property prices skyrocket. To match and reduce the huge price gap within Delhi/NCR, Uttar Pradesh has increased infrastructural development with basic amenities in the region to attract more buyers. 

To better understand this investment opportunity, consider Uttar Pradesh. The fluctuations in property values over the last few years demonstrate how dynamic real estate investing can be, with both growth and risk involved. 

Profitable investments. 

Although single-room sets are no longer as affordable as five years ago, they remain a sound investment.

Rental income is also at an all-time high in 2024. In 2020, two three-bedroom flats generated rental incomes ranging from Rs 10,000 to 12,000. However, they have risen to Rs 19,000 -25,000. 

As an adjacent city to Delhi, people are migrating to make a living and require a place to call home.  Purchasing or renting a home in Delhi has become costly, paving the way for the NCR region. 

Consider the following scenario to comprehend the investment and income: Assume someone invests Rs 10-12 lakh to create a one-bedroom kitchen set. In just seven months, this newly built one-bedroom apartment will begin to generate an average monthly rental income of Rs 15,000-16,000. With an initial investment of Rs 10-12 lakh, the average return on investment (ROI) is 15-18%. 

This example demonstrates the potential profit from investing in single-family homes. Even with modest investments, rental income can generate significant returns, making it an appealing option for real estate investors looking for consistent cash flow and long-term appreciation.

Residential Property: 

During unprecedented times, the real estate sector encountered significant challenges. However, the post-COVID scenario revealed a very different landscape. With many businesses returning to in-office work environments and discontinuing work-from-home arrangements, the residential real estate sector experienced a significant resurgence. 

Despite rising home loan interest rates, the residential market performed well. Recent studies have shown that escalating rental values are one of the key drivers of this demand surge.  Investing in ready-to-move projects is becoming increasingly appealing to buyers. 

A ready-to-move property presents a win-win situation based on past experiences. In contrast to new projects with uncertain possession timelines, ready-to-move projects offer immediate gratification and peace of mind. 

Several examples of this point can be found along the Gurugram-Dwarka Expressway and Greater Noida West, which serve as valuable case studies for investors. 

In 2023, 4.77 lakh residencies were sold in new projects. In pre-pandemic 2019, the share of freshly launched supply sales was substantially smaller, accounting for only 26% of the approximately 2.61 lakh dwellings sold that year. 

According to Anarock real estate research, NCR has the lowest absorption of newly launched homes among the top seven cities, with only 27 percent of the 65,625 units sold in 2023 being launched during the year. The remaining units were sold in projects that opened before 2023. Interestingly, Gurugram outpaced other markets in the NCR region, with at least 35% of the 36,970 units sold in Millennium City in 2023 being freshly launched. 

Godrej camps cannot compete for six years, except in the real estate industry

Posted on by

Mumbai: Following a split in the 27-year-old locks-to-land development group, the Godrej family has agreed not to compete for six years, except in real estate. After the non-compete period, they can enter each other’s domains, but not under the Godrej name. 

As part of the family settlement agreement, Adi Godrej and his younger brother Nadir will be granted exclusive rights to use the Godrej brand in FMCG (cosmetics, cleaning supplies, toiletries, foods, beverages), financial services, pharmaceuticals, diagnostics, and chemicals businesses. 

Their cousin Jamshyd and his sister Smita Crishna will have exclusive rights to use the Godrej brand in the defense, consumer durables, medical devices, construction materials, interior design, electric mobility, software services, and security product industries. 

However, both groups may use the brand name in the real estate development and marketing industries. Jamshyd and Smita have real estate interests through the unlisted Godrej & Boyce, while Adi and Nadir own the listed Godrej Properties. 

None of the Godrej group companies will have to pay royalties on the brand. The non-compete clause went into effect on April 30. The agreement states that after six years, “a family group can enter  into the exclusive business of the other family group, without the use of the Godrej brand including in their corporate names.” 

Both groups, however, can venture into areas where neither has a presence, leveraging the Godrej brand with group-level differentiators, as these have been designated as shared business spaces.  

For example, medical services, hospitals, hospitality and education. 

Non-compete covenants are common in family settlement agreements. 

In March, the TVS family agreed to avoid competition for a set period. 

From promoters to public shareholders. 

Once the ownership realignment in the Godrej group’s listed entities is completed siblings Jamshyd and Smita Crishna will become public shareholders. 

They are currently part of the promoter group for listed Godrej entities. According to Sebi regulations, if a promoter wishes to be classified as a public shareholder, they cannot own more than 15% of a listed entity. According to the family settlement arrangement, Janshyd and Smita, classified as promoters once the realignment is completed, will apply for it. 

This expert believes that the power of real estate is at the heart of India’s transformation

Posted on by

According to Ankur Gupta of Brookfield Asset Management, local businesses are upgrading office spaces. Indians are looking for higher-quality homes, hotels, restaurants, and vacations, reflecting significant lifestyle changes over the last few decades. 

According to Ankur Gupta, Managing Partner and Head of APAC and ME Real Estate at Brookfield Asset Management, the sector contributes significantly to the economy directly and indirectly and thus is at the heart of India’s recent transformation. 

“Real estate provides that house, that backbone, not only by directly contributing to GDP but also by increasing productivity. A good quality real estate establishment, whether a manufacturing hub, logistics infrastructure, offices, high-quality homes, or hospitality, is the foundation for various industries. Gupta cited steel, cement, paints, and tourism as examples of direct users or secondary contributors to hotels. 

He cited the fact that local businesses are increasingly looking to transform their office spaces, and Indians want to live in higher-quality homes, visit higher-quality hotels and restaurants, and take vacations that were less desirable several decades ago.

Brookfield, he says, is very interested in these shifts in demand, and the next major motivator would be to support the growth of the country’s manufacturing system and the development of logistics and industrial hubs. 

These transformations will necessitate massive amounts of capital, a collaborative approach with the government and various state bodies, and the cooperation of organizations such as Brookfield. 

India’s unique combination of services and manufacturing will propel it to global leadership. It makes no difference if it is second or third. He believes that it is currently the best market in the world to invest in. 

In Jan-March 2024, luxury homes priced above Rs 4 crore saw a 10% year-year increase across the top seven cities

Posted on by

From January to March 2024, sales of luxury housing units priced at Rs 4 crore or higher increased by 10% yearly in even major cities. According to CBRE South Asia’s India Market Monitor Q1 2024 report, the luxury segment accounted for approximately 5% of total residential unit sales. 

According to the data, total sales in this price category were 4,140 units across seven major cities in January-March this year,  up from 3,780 units the previous year.

Between January and March 2024, there was a nearly 64% increase in new luxury segment unit launches yearly.  

Mumbai saw a 15% year-on-year increase in luxury housing unit sales worth Rs 4 crore or more in the most recent quarter. Sales in Delhi-NCR fell from 1,880 to 1,150 units during the review period. 

Sales in Bengaluru fell from 70 to 10 units. Kolkata’s population fell from 110 to 70 units. Sales in Pune increased dramatically, from 150 to 700 units. In Hyderabad, sales increased from 380 to 800 units.  

45% of the luxury housing stock was injected in the last five years.

The resurgence of India’s luxury residential real estate has fueled rapid growth, accounting for approximately 45% of total luxury stock injections in the last five years. Since 2019, the segment has grown at a CAGR of more than 9% in gateway cities. 

In addition, Mumbai dominates the luxury segment, accounting for more than 40% of the country’s total luxury inventory from January to March 2024. The city is a well-known and highly desirable market, attracting many HNIs and UHNIs, including top executives and Bollywood celebrities. 

Mumbai’s premium locations, including Altamont Road, Nepean Sea Road, Worli, Prabhadevi, Juhu, and Bandra (West), have high capital values, with average ticket sizes ranging from Rs 20 to over 60 crores. Occasionally, apartments priced over Rs 100 crore are also recorded. 

Delhi-NCR follows closely, accounting for more than 25% of the country’s luxury inventory between January and March 2024. 

The Delhi-NCR luxury market 

Luxury properties in Delhi, similar to Mumbai, are concentrated in the southern part of the city, with areas such as Amrita Shergill Marg, Golf Links, and Prithviraj Road commanding average ticket sizes ranging from Rs 40 to Rs 60 crore. Gurgaon has recently emerged as the region’s leading luxury market. 

The demand for gated communities increased during the COVID-19 pandemic, enhancing Gurgaon’s reputation as a luxury destination. Average ticket sizes at DLF Phase ½, Golf Course, and Golf Course Extension range from Rs 10 to 20 crore. 

Furthermore, Hyderabad, experiencing remarkable growth thanks to a pro-business environment, ranks third with nearly 10% of the country’s luxury inventory. The city has seen an influx of luxury apartments and a surge in demand for this segment. In Jubilee Hills, Banjara Hills, Hitech City, Raidurg, and Neopolis, average ticket sizes range from Rs 20 to over Rs 40 crore. 

Homes priced between Rs 45 lakh and Rs 1 crore accounted for 47% of total sales. 

Overall residential sales across categories reached nearly 85,000 units from January to March 2024, representing an 8% year-over-year increase. Demand remained strong, prompting development to build 80,000 new housing units in the first quarter of 2024. From January to March 2024, mid-end projects (priced between Rs 45 lakh to Rs 1 crore) accounted for 47% of total sales, followed by high-end (Rs 1 to Rs 2 crore) and affordable (up to Rs 45 lakh). 

Pune, Mumbai, and Bengaluru accounted for approximately 65% of total sales. However, from January to March 2024, unit launches in Mumbai, Pune, and Hyderabad account for nearly 69% of the total. 

“The Indian luxury real estate sector has strong fundamentals for sustained growth, supported by consistent increases in household income and consumer spending power. These factors are expected to create a segment of discerning buyers who value quality, financial prudence, and a desire for an elevated living experience,” said Anshuman Magazine, CBRE’s chairman and CEO for India, South-East Asia, the Middle East, and Africa. 

Get Returns From Real Estate Without Buying Property: Understanding REIT Investment In India

Posted on by

REITs must distribute a significant portion of their earnings as dividends to shareholders, making them appealing to income-seeking investors.  

A Real Estate Investment Trust (REIT) in India is a business that owns, operates, or finances income-producing real estate in one or more property sectors, REITs enable investors to pool their funds and invest in a diverse portfolio of real estate assets. These assets may include office buildings, shopping malls, residential properties, and hotels. 

In India, the Securities and Exchange Board of India (SEBI) introduced  REITs in 2014 to allow investors to invest in the Indian real estate market without directly owning the properties. 

REITs must distribute a significant portion of their earnings as dividends to shareholders, making them appealing to income-seeking investors. 

REITs are organized into three tiers: sponsors, trustees, and managers.

  • The sponsor initiates the formation of the REIT by transferring their owned properties or real estate to the trust. Typically, real estate developers seeking capital act as REIT sponsors. 
  • The sponsor appoints the trustee who holds the assets for unitholders.
  • The trustee appoints a manager to oversee REIT assets and make investment decisions. Typically, the manager is a privately held company closely related to the sponsor. 

How do real estate investment trusts work in India?

Consider a REIT to be a real estate-specific mutual fund. Here’s a sample breakdown: 

  • Investors like you can contribute funds to the REIT.
  • The REIT invests this money in income-producing real estate.
  • The income from rents and other sources is distributed to investors as dividends, typically around 90% of their earnings as mandated by SEBI. 

Can you invest in India’s REITs? 

Yes, REITs are listed on the stock exchange, allowing you to buy and sell units like stock. This makes it an attractive option for individuals looking to invest in real estate without the hassle of directly purchasing and managing properties. To invest in a REIT in India, you must typically purchase REIT units through a stockbroker, just as you would buy stock in a company. REIT units trade on stock exchanges, providing investors with liquidity. However, it is critical to conduct extensive research and understand the risks of investing in REITs, such as market fluctuations, interest rate changes, and property market conditions. 

REITs in India 

According to Sebi’s official website, India currently has five registered REITs. These include Brookfield India Real Estate Trust, Embassy Office Parks REIT, Mindspace Business Parks REIT, Nexus Select Trust, and One Real Estate Investment Trust. 

Here are some additional points to consider:

  • REITs are a relatively new instrument in India, with the first launched in 2014. 
  • There are various REITs, each with a specific property (office, retail, etc.).
  • Additionally, consider consulting with a financial advisor to determine if REITs align with your investment goals and risk tolerance. 

Mumbai Real Estate Market Records: Property registrations are up 9% this month.

Posted on by

Mumbai real estate update: Real estate buyers in April 2024 were millennials, or people aged 28 to 43, accounting for 37% of the total. 

Property registrations in Mumbai’s real estate market increased by approximately 9% to 14, 149 in April 2024, up from 11,514 the previous year. 

Stamp duty collections from property registrations increased by 16 percent to Rs 1,043 core in April 2024 from Rs 900 crore the previous year, according to Maharashtra government data. 

Every month,  there were 14,149 property registrations in March 2024, with stamp duty collections totaling Rs 1,123 crore. 

According to Knight Frank India, which analyzed the data, residential units accounted for 80% of the properties registered in the Mumbai real estate market as of April 2024. According to data, properties measuring up to 500 square feet were the most purchased size in April 2024, with 45 percent of registrations in this category. 

GenZ and millennials account for the majority of homebuyers. 

According to Knight Frank India, property buyers in April 2024 were millennials (aged 28 to 43), accounting for 37% of the total. Individuals from Generation X, aged 44 to 59, followed closely behind, accounting for 36% of all buyers. 

Furthermore, 6% of homebuyers were Generation Z under age 28, while 18% were between ages  60 and 78. 

“Bountiful market conditions have significantly boosted the state treasury, resulting in its highest-ever revenue collection in April. Property registrations in April increased by 9% over the previous year, highlighting the market’s appeal to prospective buyers,” said  Shishir Baijal, chairman and managing director of Knight Frank India. 

Highest stamp duty collections. 

Over the past 12 years, the Mumbai real estate market has had the second-highest property registrations and the highest stamp duty collections in April. 

Knight Frank reports that rising incomes and positive attitudes towards homeownership contribute to this trend. 

Central and western suburbs accounted for more than 73% of total property registrations, as these areas are hotbeds for new launches with a range of modern amenities and good connectivity.

India’s Commercial Real Estate Is On Track For Successful Growth This Year

Posted on by

India’s real estate shows growth potential for investment opportunities after the pandemic. 

Amid global economic challenges, India’s real estate sector is experiencing a significant resurgence, attracting international investors as the economy recovers. Despite challenges in the US real estate market, India’s real estate landscape thrived in 2023, with significant activity across segments. Institutional investment in Indian real estate totaled USD 5.8 billion, with commercial properties accounting for more than half of that amount. This increase in investment following the pandemic reflects growing market confidence, as evidenced by companies encouraging employees to return to physical workspaces and expanding global operations in India. 

The success and momentum of 2023, marked by high demand, absorption rates, and emerging trends such as the demand for flexible workspaces and sustainability initiatives, paved the way for the real estate industry’s future. Favorable economic conditions and government policies also contribute to strong market sentiment, indicating the possibility of continued growth and investment opportunities in the commercial real estate sector. 

Investment Opportunities 

In the case of commercial real estate in India, investors have several options. Office spaces in major markets, data centers, warehouses, and other commercial properties are in high demand. The rise of technology-driven industries has increased the demand for office space and data centers, making them appealing investment targets. India’s commercial real estate sector is a tempting investment opportunity due to market size, government support, and potential return on investment. 

Forecast for commercial real estate in 2024: 

Commercial real estate is expected to perform well in 2024, thanks to several factors that indicate potential returns for investors. Institutional and foreign direct investments (FDI) boost market confidence and growth. Furthermore, fractional ownership emerges as a compelling investment opportunity, allowing investors to diversify their portfolios while potentially earning high returns. This alternative investment method allows individuals to pool their resources and invest in high-value commercial properties, gaining access to previously unavailable assets. With the potential for high yields and the ability to spread risk across multiple properties, fractional ownership contributes to commercial real estate’s positive outlook in 2024, offering investors appealing opportunities for growth and profitability. 

Rise in NRI Interest:

 The growing interest of NRIs, particularly those from the Middle East, is reshaping India’s commercial real estate market. These NRIs recognize the potential for profitable investments in Indian real estate, which helps to drive the sector’s growth and dynamism. As a result of their participation, the market is stronger and more resilient, as they are also helping to diversify the investor base. As NRIs continue to express interest in Indian commercial real estate, the sector’s outlook for this year and beyond improves, emphasizing its appeal to domestic and international investors. 

Should you consider investing? 

High net-worth individuals (HNIs) can use numerous investment strategies tailored to their financial objectives and risk tolerance. Diversification across asset classes helps to mitigate risk and ensure long-term returns. Asset allocation is critical, with HNIs determining the proportion of their portfolio invested in various assets based on risk tolerance and investment horizon. Dynamic rebalancing entails proactively reviewing and adjusting the portfolio in response to market movements and financial objectives, thereby improving risk management and optimizing returns. Seeking professional advice from wealth advisors and financial experts can help HNIs align their investment decisions with their goals and minimize risks while increasing returns. 

Conclusion

To summarize, India’s commercial real estate sector is on track for a bull market in 2024, building on the momentum gained the previous year. However, investors should conduct due diligence and seek professional advice to make informed decisions consistent with their financial goals. Investors can capitalize on the potential of India’s commercial real estate sector in the coming year by carefully evaluating market dynamics and understanding individual risk tolerance. 

With knowledge and strategic planning, investors can maximize the potential of India’s commercial real estate market in the coming year. 

A study predicts that residential real estate prices in India will increase by 4-6% this year

Posted on by

According to a report released on Tuesday, home prices in India are expected to rise by 4-6% this year, with rising per capita income driving demand. 

CRISIL Ratings believes that moderate inflation, stable commodity prices, lower fiscal deficit, and a drop in global policy rates will pave the way for interest rate cuts to boost housing demand. 

“Range-bound growth in capital values and a likely moderation in interest rates in the second half of this fiscal year will ensure affordability improves after a decline in the previous two fiscal years due to a sharp increase in interest rates and capital values,” it said. 

In terms of sales, the market share of India’s 11 listed real estate developers is expected to double to 30-32 percent this year, up from 15% in the pre-pandemic fiscal year 2018-19. 

DLF Limited, Brigade Enterprise, Godrej Properties, Kolte-Patil Developers, Microtech Developers, Mahindra Lifespace Developers, Prestige Estates Projects, Puravankara, Sobha, Shriram Properties, and Sunteck Realty have a track record of delivering on time and with quality. 

According to CRISIL Ratings, “continuing premiumization,” affordability, and rising per capita income should help large, listed residential developers achieve a 10-12 percent increase in sales volume this year, up from an estimated 14% growth last year. 

“Large developers have already strengthened their credit profiles by deleveraging balance sheets through strong sales and collections over the last two years and focusing more on asset-light models, such as joint ventures and joint development,” said Pallavi Singh, associate director at CRISIL Ratings. 

Real state supply has shifted towards mid-to-high-end and luxury homes, while launches in the affordable segment are expected to remain muted. According to the report, the share of launches in the mid-to-premium and luxury segments is expected to be 55-60% in 2023-24, up from 30-35% before the pandemic. 

India’s ultra-rich are shifting their investment focus to residential real estate

Posted on by

The ultra-rich in India devote a sizable portion of their wealth to residential properties, which account for 32% of their investment portfolio. 

For some time now, India’s affluent class has been shifting its investment focus to residential real estate, indicating a significant shift in the country’s investment landscape. This transition highlights changing investment preferences and reflects the motivations behind the elite’s decision to invest in residential properties. 

According to a recent Knight Frank report, India’s ultra-rich are allocating a significant portion of their wealth to residential assets, with 32% of their investment portfolio devoted to this sector. A growing number of ultra-high-net-worth individuals (UHNWIs) plan to buy a new home by 2024, indicating an increasing appetite for residential real estate investments in India. 

Parvinder Singh, CEO of Trident Realty, commented, “This growing interest of elites in the residential real estate sector reflects a shift towards quality living spaces that cater to evolving  lifestyle preferences.” 

Elites are drawn to high-quality residential projects that provide sustainable and multifunctional living spaces, which satisfy their desire for exclusivity and modern amenities. The residential sector is expected to grow significantly by 2024, driven by urbanization, rising incomes, and a desire to live in harmony with nature. To appeal to affluent buyers, we designed our projects to offer privacy, space, and connection to nature. Our developments provide a distinct blend of luxury, sustainability, and comfort to meet the discerning tastes of elite homebuyers.” 

Knight Frank’s flagship report, The Wealth Report 2024, predicts a significant increase in the Indian UHNWIs, rising to 19,908 by  2028 from 13,263 in 2023. This equates to a massive 50.1% increase, the fastest growth rate in the number of UHNWIs in any country over the next five years. 

Aman Trehan, Executive Director of Trehan Iris, says, “The surge in residential property investment among India’s elite class represents a remarkable shift in preferences, fueled by a thriving economy and evolving lifestyle choices. According to Knight Frank India’s 2024 Wealth Report, 32% of UHNWIs are considering investing in real estate, with 12% planning to buy new homes in 2024. This report highlights the sector’s unprecedented growth and reveals Delhi’s rise in the real estate sector. With a combination of high demand, favorable mortgage rates, and a strong economy, the allure of luxury properties and alternative assets is likely to persist among high-net-worth individuals and ultra-high-net-worth individuals. This year, 22% of wealthy individuals intend to invest in residential properties and 19% in commercial properties. 

Furthermore, the ongoing expansion of infrastructure and connectivity initiatives, particularly in the National Capital Region, is expected to open up new opportunities for elite investors, promising capital appreciation and improved lifestyles. As we look ahead, the trajectory of India’s real estate market is poised for further evolution, implying a promising outlook for the market in the coming years,” he adds. 

Furthermore, people exhibit a positive economic sentiment, reflecting the Indian economy’s resilience and potential. This shift in sentiment coincides with a broader recognition of real estate’s enduring value and potential for long-term financial growth. Investors are positioning themselves to accumulate wealth and create multigenerational wealth through real estate investment. 

Aman Sharma, Founder & Managing Director of Azrize Group, says, “Seeing India’s super-rich devote 32% of their wealth to housing properties is extremely encouraging. There is a strong belief that real estate is a significant driver of wealth preservation and growth. This data demonstrates our dedication to delivering high-quality projects that appeal to the discerning tastes of affluent buyers. We recognize the importance of providing luxurious yet secure options consistent with this demographic’s investment preferences. Such insights guide our strategic planning, ensuring that we continue to meet the market’s changing demands while maintaining our position as a reliable provider of premium real estate.” 

Aside from economic factors, lifestyle changes are spurring demand for luxury and larger homes among India’s upper classes. The ultra-luxury housing sector’s unprecedented growth in 2023 reflects affluent individuals’ strong desire for premium living experiences. This emphasis on enhancing lifestyle offerings is a major reason the wealthy prefer to invest in residential properties, as they seek to improve their living conditions and indulge in luxurious living experiences. 

“The surge in luxury housing sales among India’s elite is up 130% Y-O-Y, signaling a seismic shift in the industry,” says Ashish Sharma, AVP operations at Brahma Group. According to Knight Frank’s Wealth Report 2024, they allocate 32% of their wealth to residential properties.

A strategic pivot towards tangible assets both luxury and long-term capital appreciation. 

The desire for luxurious urban living, combined with an increasing number of high-net-worth individuals, has prompted wealthy investors to design spaces that embody luxury, comfort, and exclusivity. The decision to invest in luxury real estate has evolved into an important statement of status and intent. Furthermore, in the coming years, the industry can expect to see a rise in participation from India’s elite as it continues to grow. 

According to Ashish Sharma, AVP operations at Brahma Group, “the surge in luxury housing sales among  India’s elite, up 130% year on year, signals a seismic shift in the real estate landscape.” According to Knight Frank’s Wealth Report 2024, they now invest 32% of their wealth in residential properties, up from 20%. This strategic shift toward tangible assets offers both luxury and long-term capital appreciation. Driven by the allure of upscale urban living and a growing population of high-net-worth individuals, affluent investors tend to invest in environments that exude comfort, exclusivity, and status. Luxury real estate has evolved beyond mere acquisition into a profound statement of status and purpose. Furthermore, the sector is expected to experience a surge from India’s elite, with an upward growth curve in the coming years.” 

This trend opens up exciting opportunities for the Indian real estate market. Luxury developers can meet the growing demand for exclusivity, comfort, and long-term value among ultra-high-net-worth individuals seeking prime residential investments. However, stay ahead of the curve by anticipating changing preferences and offering innovative solutions to the elite’s ever-changing needs. 

Investing for the future: The rise of co-working spaces in commercial real estate

Posted on by

As the commercial real estate market evolves, one key trend that continues to shape the industry is the proliferation of co-working spaces. These shared work environments, which provide flexible lease terms and amenities, have altered how businesses and individuals view workspaces. Incorporating co-working spaces into a real estate investment portfolio can be a strategic move that capitalizes on changing trends while providing financial benefits. 

The expansion of coworking spaces 

Co-working spaces emerged as a solution for freelancers and small businesses seeking flexible, cost-effective work environments. Over time, these spaces have evolved into innovative hubs that cater to a wide range of clients, from startups to multinational corporations. The rapid expansion of remote and hybrid work arrangements has only fueled this trend, making co-working spaces an essential component of modern office culture. 

As companies adopt more flexible work policies, the demand for adaptable and dynamic workspaces increases. Co-working spaces enable businesses to easily scale their operations, whether downsizing or expanding, without being limited by traditional long-term lease agreements. 

The financial appeal of coworking spaces 

Co-working spaces provide significant benefits to real estate investors. One of the primary advantages is the ability to generate multiple income streams from a wide range of tenants. This diversification helps to spread risk across various industries and business sizes. 

Furthermore, co-working spaces tend to have higher occupancy rates than traditional office spaces, maximizing revenue potential per square foot. Moreover, these spaces frequently command high prices due to the extensive amenities and services such as meeting rooms, private offices, and community events. 

Development of real estate investment portfolios. 

Integrating co-working spaces into a real estate investment portfolio can result in significant long-term returns. By incorporating these spaces, investors can position themselves at the forefront of a rapidly changing market and capitalize on shifting preferences in office environments. 

Coworking spaces allow for property appreciation. As the demand for flexible workspaces increases, the value of properties that house co-working operators is expected to rise. This potential for asset appreciation provides additional financial incentives to investors. 

Furthermore, investing in co-working spaces enables a more dynamic and resilient portfolio. Co-working operators’ flexibility can help them weather economic downturns and changing market conditions, as these spaces can quickly adapt to new situations. 

Navigating risk and challenges 

While co-working spaces offer numerous benefits, investors should consider the risks. The success of coworking operators can be influenced by management quality, competition, and market trends. Furthermore, the industry’s rapid growth has resulted in some market saturation in certain areas, potentially affecting the profitability of individual co-working spaces. 

Choosing established co-working brands with a proven track record of success can increase stability and reduce the likelihood of failure. Furthermore, understanding local market dynamics and competition is essential for making sound investment decisions. 

Summary  

Co-working spaces have emerged as a transformative force in the commercial real estate industry, reshaping how businesses and individuals approach workplaces. Co-working spaces can provide significant financial rewards for real estate investors but only if they are mindful of the risks. 

As demand for flexible workspaces rises, investors who believe in this trend will be well-positioned for long-term success. Understanding the benefits and challenges of co-working spaces, and selecting the right partners can help investors to capitalize on this dynamic market and secure a profitable future in commercial real estate.   

Non-resident Indians from the US dominate real estate sales in Bengaluru: 2BHK and 3BHK housing units are the most popular

Posted on by

Bengaluru continues to attract non-resident Indian buyers, who account for nearly 15% of total housing sales in the city. The demand for real estate in the IT capital is primarily by NRIs from the United States, Singapore, the UAE, Australia, and Saudi Arabia, with the majority preferring to invest in 2 and 3BHK units. 

Regarding requests and transactions, the United States has far outpaced other countries. According to No Broker data, demand has also increased from NRIs in Singapore, the United Arab Emirates, Australia, and Saudi Arabia. 

Preferred Investment Options in Bengaluru

The most popular investment options are  2 and 3 BHK apartments, accounting for 78% of sales. 

North Bengaluru was the most popular investment destination for NRIs, accounting for nearly 39.7%, followed by East Bengaluru (37.7%), South Bengaluru (18.1%), West Bengaluru (3.9%), and Central Bengaluru (18.1%). 

The North has the highest traction of NRI buyers, accounting for nearly 40% of sales, followed by the East (38%), and the South (18%). According to Saurabh Garg, co-founder and chief business officer at Nobroker, the average ticket size varies by region: Rs 1.1 crore in the North, Rs 1.51 crore in the East, and Rs 1.13 crore in the South. 

Sarjapur, Varthpur, Gunjur, and Whitefield are the most popular micro-locations in the East, while the Devanahali and Hebbal micro-markets are in the North.  

The most popular investment options are 2 and 3 BHK apartments, accounting for 78% of sales. According to the data, 2 BHK units account for 41%, 3 BHK units for 37%, and plots and 4  BHK/duplex/ villas contribute 9% each. 

These buyers are primarily working professionals looking for investment properties with high rental income and potential for future appreciation. NRI buyers prefer projects with no premiums, but they will only invest or buy from reputable Grade  A developers. 

According to Garg, NRI buyers actively seek other services, such as management and legal assistance, to smooth their property transactions. 

NRIs account for 15% of the housing sales in Bengaluru. 

Concorde’s chairman, Nesara B S, says NRI buyers account for nearly 15% of, their total sales. “This has risen in the past two years. Previously, this stood at 10%. The highest demand comes from the Gulf countries, followed by the Indian diaspora in Europe, the United States, and Australia. Most of them are three-bedroom apartments and villas,”  he said. 

While NRIs prefer to invest 2, 3, and 4BHKs. They typically target the higher end of the spectrum. In terms of sales, NRI contributions would be around 15% year on year. “The majority of our bookings are either through our GCC office or through trade expos that take place abroad. We occasionally receive inquiries when they visit Bengaluru on vacation,” said Viswa Prthap Desu, COO of Residential, Brigade Group.   

Puravankara’s business is also heavily influenced by NRIs, who prefer larger homes, and gated communities that prioritize amenities, security, and property management services. NRI contributions to our overall business range between 12 and 15%, and we are seeing increased traction in markets such as the GCC, the United States (both East and West Coast), Southeast Asia, and Europe (including the United Kingdom),” said Abhishek Kapoor, Group CEO of Puravankara Ltd.  

What’s in your portfolio for fiscal year 2025? Here are five real estate investment options.

Posted on by

Real estate in India remains a top investment choice in 2023, owing to economic growth and Indian households’ high asset allocation. The article discusses various investment options, including luxury rentals, second homes, ETFs, REITs, and fractional ownership. 

In 2023, the real estate sector demonstrated resilience to various changes in trends. The global economic recovery boosted demand for residential properties in India, thanks to low-interest rates and a preference for smart living and luxurious ownership. With India’s status as one of the world’s fastest-growing economies, fueled by private spending and capital accumulation, the real estate sector remains a popular investment destination. 

Typically, Indian households allocate 77% of their assets to real estate because it provides opportunities for high growth, strong returns, and stable income streams. Furthermore, SEBI’s new directives on fractional ownership and small REITs position the sector for significant growth in 2024. 

However, newcomers may navigate the real estate market and select the best investment opportunities based on current government regulations and interest rates. 

This article examines various real estate investment options, investor profiles, and risk tolerances.

  1. Rental Properties 

The traditional approach entails purchasing residential properties to generate rental income. While simple, this method necessitates significant initial investment and ongoing maintenance costs. Before investing, confirm that the property is free of legal issues. Leasing, outright purchase, and loan financing are all viable acquisition options. 

Notably, there is an increasing trend of investing in luxury rental properties, particularly in major Indian cities like Mumbai, Delhi, and Bangalore. Industry data show that luxury residential real estate in these cities consistently outperforms other traditional assets, with annual price growth ranging from 4% to 7%. 

  1. Vacation homes and house flipping

Affluent buyers are diversifying their property portfolios beyond primary residences, including lucrative second homes. In India, demand for secondary residences has skyrocketed following the pandemic, reaching a staggering $1.394 billion by the end of 2021– an impressive 88.63% increase from pre-COVID levels. 

Combined with strategies such as house flipping, in which properties are renovated for increased resale value, Indians are capitalizing on their second homes by converting them into vacation homes, generating significant tourist interest. 

  1. REIT and ETF 

ETFs and mutual funds offer indirect exposure to real estate by investing in related assets. ETFs focused on real estate stocks, such as publicly-traded builders, or REITs (Real Estate Investment Trusts) are among the options. 

Mutual funds and REITs raise money from investors to buy income-generating assets. These assets generate rental income, which is then paid to investors as dividends. 

REITs offer many advantages, including immediate liquidity, affordability, regulatory protection, and tax breaks. REITs provide a consistent income stream that is often tax-exempt, with dividends accounting for 90% of profits. 

Commercial real estate ownership is in fractions. 

This novel approach entails multiple investors pooling their funds to buy commercial real estate together. This reduces individual investment costs and risk exposure while generating shared rental income. Industry experts predict significant growth in this segment, with India’s fractional ownership properties expected to reach $8.9 billion by 2025, growing at a 10.5% annual rate. 

Commercial properties typically have higher rental yields than residential options. A 25 lakh investment in fractional ownership could generate Rs 2 lakh in annual rental income (8-12 percent rental yield) and at least Rs 1.25 lakh in capital appreciation, resulting in wealth creation and improved monthly cash flow. 

Choosing the correct option 

Several factors influence the best investment option, including available capital, liquidity preferences, preferred cash flow frequency, and risk tolerance. Owning, leasing, and flipping properties typically necessitates a significant investment of money and real estate experience. 

Although ETFs offer high liquidity and low costs, they don’t pay dividends and must be sold to realize returns. 

Despite still being in their infancy, REITs and fractional ownership are giving retail investors access to the lucrative commercial real estate (CRE) sector. Even though CRE offers good returns, it has traditionally required a high level of capital investment. 

Fractional ownership is a lucrative opportunity, with potential annual rental yields ranging from 8 to 12 percent and internal rates of return (IRR) ranging from 13 to 17 percent. Prime properties and retail complexes in business hubs such as Gurugram, which have recently emerged as one of the most promising real estate markets, provide consistent rental income and capital growth opportunities. 

This suggests that fractional ownership of commercial real estate may produce higher and more consistent returns in the long run than other options, making it an important consideration for those looking to diversify their investment portfolios and build long-term wealth. 

India’s Real Estate Set to Grow by 2030, Pioneering a Trillion-Dollar Transformation

Posted on by

Historically, growth rates have been determined by industrial, agricultural, and service sector expansion, but the trading market is also an important source of new capital.

According to Dr. (h.c) Tushar Deochakke, real estate has long been the most popular form of investment for those who can afford it. An interest in real estate has meant purchasing private property primarily for self-residence. Cross-country comparisons, individual country studies, and industry and firm-level analyses all point to a positive relationship between financial system sophistication and economic growth. While some gaps exist, the financial system is said to be inextricably linked to economic performance. In 1952, Nobel laureate Joan Robertson stated, “Where enterprise leads, finance follows.” According to this viewpoint, economic development generates demands for various financial arrangements, which the financial system automatically meets. 

 Traditionally, growth rates have been determined by the growth of the industrial, agricultural, and service sectors; however, the trading market is also a significant source of capital formation and plays an important role in the global economy. As a result, the stock market in developing economies such as India is rapidly expanding, and the Indian real estate market is expected to be worth trillions of dollars by 2030. Liquid markets improve capital allocation and long-term economic growth prospects by allowing for longer-term and more profitable investments. Furthermore, by reducing investment risk through Blockchain technology for governance, stock market liquidity can result in more savings and investments. 

Real estate assets are recorded at cost, even though the market value of many properties could be significantly higher. Listing these assets on the platform broadens their trading opportunities by making them available to a wider variety of investors and liquid with cash flow generation potential, increasing market capitalization and having an economic impact on the local and national economies via transactions and taxes. 

The Indian property market is expected to quadruple over the next 6-8 years. New infrastructure development in India will require approximately USD 4.5 trillion for everyone to maintain the pace of growth and become the second-largest economy by 2036. 

The REIT regulations have recently been tweaked to accommodate smaller asset owners. But, it is crucial to understand and accept that Indians are conservative by nature, and real estate investments are used to hedge against capital market volatility. Thus, while the number of dormant accounts registered has tripled in the last five years, the actual investor base is much smaller. REITs were first introduced in the 1960s. But, they still account for less than 2% of global real estate asset valuations. 

Small investors’ ROI from REITs has been low, while real estate developers, asset owners, and managers continue to investigate various funding options for new development assets and their pipelines.  Further banks have sectoral restrictions for lending. On the other hand, Indians invest up to twenty lakh crores per year in bank fixed deposits, where inflation-adjusted returns are negligible, even though the entire economy had around rupees 188 lakh crore in fixed deposits at the end of last year. 

While the Jan-Dhan Yojna (Banking for the Poorest of the Poor), which was previously ridiculed, accumulated Rs. two lakh crore in a short period, this allows users to visualize the impact a middle-class retail investor can have on the economy if given the right opportunity. While global fund managers are allocating larger absolute amounts to their India desk, it remains a small percentage of their entire global portfolio. This comes after the Ministry of Finance established the National Asset Monetisation Pipeline and the National Bank for Infrastructure Development. 

Global pension funds and private equity funds invest in India, but the fact that repatriation for strategic exits takes years, if not decades, discourages them. RERA has significantly changed the perspective of large global fund managers looking to invest in a project’s early stages. Being classified as a promoter entails a slew of RERA obligations, such as regulatory filings, obtaining completion or occupation certificates, ensuring the project, and so on, with failure to comply resulting in severe penalties. While investment documents are typically drafted  to give investors broad rights to protect their investments, it is now worthwhile to structure investments so that an investor can avoid participating in the entity’s day-to-day affairs and management, as  well as project implementation. 

While the rest of the world has gone digital, real estate markets continue to use ancient and archaic methods of asset management, trading, and settlement. This is especially evident in the property markets, which use highly manual and time-consuming methods for administering and trading assets. As, a result, the real estate market is notoriously illiquid and inaccessible. 

HRERA penalizes real estate promoters for misleading ads

Posted on by

The Haryana Real Estate Regulatory Authority (HRERA), Gurugram, imposed a Rs 50 lakh penalty on a real estate promoter for publishing a misleading advertisement in an English daily about their real estate project Green Oaks. 

According to an HRERA spokesperson, the authority took strong notice of the advertisement published on March 2 and sent a show cause notice to Countrywide Promoters Private Limited, requesting a response. 

According to the spokesperson, the authority observed that, despite mandatory provisions under Sections 11(2) and 13 (1) of the Real Estate (Regulation and Development) Act 2016, the promoter failed to properly describe the details in the advertisement, which is a punishable offense under Section 61 of the act.  

“It is established that the promoter published a misleading advertisement to prevent prospective allottees from making an informed decision. The authority imposes a Rs 50 lakh penalty under Section 61 of the Act 2016, according to an HRERA order. 

According to the HRERA spokesperson, Countrywide Promoters Private Limited is developing an affordable plotted colony, Green Oaks, in Sector 70-A Gurugram, under the Deen Dayal Jan Awas Yojna (DDJAY) Affordable Plotted Housing Policy-2016, and will obtain RERA registration in 2021.  

“It is abundantly clear that the promoter has issued a misleading advertisement for a DDJAY plotted colony, using alluring images to lead prospective investors to believe that the project includes a clubhouse and other amenities that do not exist in the project. This is a violation of section 7(1)(A)(i). According to the order, no details, information, or visuals of the project’s layout or site plan were provided to allow the prospective allottee to make an investment decision. 

In FY-24, Delhi-NCR closed 29 land deals totaling approximately 314 acres, with Gurugram topping the list

Posted on by

According to Anarock data, 29 land deals spanning 314 acres were closed in Delhi-NCR in FY 2024, compared to 23 land deals covering approximately 273.9 acres in FY 2023.

Among the top cities, NCR had 29 land deals for more than 313 acres, followed by MMR with 19 deals for more than 157 acres. 

In Delhi, a 5-acre residential development deal was completed. In Gurugram, 22 transactions totaling 208.22 acres were closed. These included one deal for educational, residential, and retail purposes, with the remaining 20 deals solely for residential development. In Faridabad, a 150-acre residential land deal was finalized. 

A residential development deal for 8.9 acres in Greater Noida has been secured.  A 62.5-acre township project in Ghaziabad has been signed off on. Noida closed three other deals totaling 13.96 acres for residential and commercial developments.

“About 26 separate land deals, totaling approximately 298 acres, were proposed for residential and township projects to meet the region’s growing demand for housing and urban development, “said Santhosh Kumar, Vice Chairman of the Anarock Group. 

“At least two land transactions involving more than 7 acres each were intended solely for commercial real estate projects.  A separate transaction involving about 8. 61 acres was dedicated to an educational project,” he explained.  

According to data shared by Anarock, real estate developers and entities dealt with approximately 101 separate land transactions in fiscal year 2023-24, totaling nearly 2,989 acres across the country. 

In FY-24, over 83 land deals totaling over 1,135 acres were completed in the top seven cities alone, with the remaining 18 deals totaling 1,853 acres closing in tier 2 and 3 cities as Ahmedabad, Ayodhya, Jaipur, Nagpur, Mysuru, Ludhiana, and Surat. 

Amitabh Bachchan purchased land in Alibaug for Rs 10 crore. What makes a beach town a desirable real estate destination?

Posted on by

According to sources, Amitabh Bachchan paid Rs 10 crore to The House of Abhinandan Lodha (HoABL) for a 10,000-square-foot land parcel in Alibaug, near Mumbai. The transaction was registered last week. 

According to sources, Bachchan has purchased a plot in the A Alibaug project, a 20-acre plotted development in Alibaug that was launched in April of last year. 

The residence of Abhinandan Lodha did not respond.

Amitabh Bachchan previously purchased a land parcel from the same builder in Ayodhya for its project The Sarayu, a 7-star mixed-use enclave in the temple town. According to real estate industry sources, Bachchan plans to build a home on a 10,000-square-foot plot worth Rs 14.5 crore.  

Alibaug has recently emerged as a popular real estate destination for high-net-worth individuals (HNIs) seeking luxury retreats and investment opportunities. As a result of its proximity to Mumbai, well-developed infrastructure, and coastal landscape, high-end properties have become more in demand. 

In 2023, actor Amitabh Bachchan and his wife, Jaya Bachchan, will leave Pratiksha bungalow, the first of five family homes in Juhu, to their 49-year-old daughter Shweta Nanda as a gift. Pratiksha was the couple’s first bungalow in Juhu, purchased shortly after the success of the blockbuster Sholay in 1975. 

Other properties owned by Amitabh Bachchan’s family in Juhu include the Janak bungalow, which is primarily used as an office, and two other bungalows, Vasta and Ammu, part of which was leased to Citibank and re-leased to State Bank of India in 2021. 

In 2021, Bachchan sold the Sopaan bungalow in Gulmohar Park, New Delhi, for Rs 23 crore to Avni Bader, CEO of the Nezone group of companies. The 2.100-square house was registered in Teji Bachchan’s name, and his parents lived there before moving to Pratiksha. 

Bollywood actors have bought properties in Alibaug. 

Shah Rukh Khan’s daughter Suhana Khan, who made her film debut with the Archies, bought farmland in Thal village in Alibaug for Rs 9.5 crores in February. Last year, she paid Rs 12.91 crore for 1.5 acres of agricultural land in Alibaug, Raigad district, which included three structures. Suhana’s father, Shah Rukh Khan, also has a sea-facing property in Thal with a swimming pool and helipad, and he enjoys hosting parties for his Bollywood friends. 

Several celebrities and industrialists own bungalows in Alibaug, including Navin Agarwal of Vedanta Resources, Gautam Singhania of Raymonds, Prakash Mody of Unichem Labs Ltd, Salil Parekh of Infosys, Sanjay Nayar of KKR, Falguni Nayar of Nyka, and equity investor Deven Mehta, brokers said. 

Alibaug’s coastal villages have long been popular vacation destinations for celebrities and corporate executives. 

In February 2023, Anushka Sharma-Virat Kohli paid Rs 6 crore for a 2,000 sq ft villa in Aditiya Kilachand’s luxury bungalow project, Avas Living, in Awas Village. In September 2022, the couple purchased a 3,350 sqm (36,059 sq ft) farmhouse in Zirad village for Rs 19.24 crore. In 2021, Rohit Sharma bought four acres of land in Mhatroli village.

Is there an investment opportunity? 

Alibaug’s connectivity improved after Ro-Ro and speed boats were established from Mumbai. The Mumbai Trans Harbour Link Sea bridge, which connects Sewri and Nahava Sheva, has also improved road connectivity to Alibaug. 

According to industry reports, Alibaug plans to invest around Rs 3000 crore and develop 250 acres of land in stages to build integrated townships and luxury villas. 

“The Maharashtra government is working to improve Alibaug’s infrastructure, including public transportation, waste management, and water supply.” This is also a part of the ambitious Alibaug Smart City project. Over 40 developers from India’s residential and commercial real estate sectors, financial institutions, and potential buyers, have invested in Alibaug, according to Ritesh Mehta, Senior Director and Head of West and North, Residential Services and Developer Initiatives at JJL. 

Indian Real Estate Market: Over 101 Land Deals Closed in FY24

Posted on by

The Indian real estate market is experiencing a surge in activity, driven by an upsurge in land transactions throughout the country. This trend is due to high residential demand, particularly for luxury living spaces.

Land deals are on the rise. 

During fiscal year 2023-24, developers and other entities closed numerous real estate transactions. This involved 101 separate transactions totaling nearly 2,989 acres of land. This is a significant increase from the previous year, with land transactions up 58% since 2022.  

The growth is even more pronounced in the first quarter of 2024. During this period alone, builders and entities closed at least 29 land transactions totaling 721 acres, indicating a strong appetite for land in the real estate sector. 

Tier 2 and 3 cities are gaining traction. 

Interestingly, land deals are not limited to major metropolitan areas. According to Anarock’s data, while over 83 deals for approximately 1,135 acres were closed in the top seven cities, a significant number of deals (18 deals for more than 1,853 acres) were completed in various tier 2 and 3 cities.  This emphasizes the emerging markets’ growing potential, which is fueled by factors such as improved infrastructure and expanded economic opportunities. 

Luxury Living is Leading the Charge. 

While the global residential sector is experiencing strong demand, one notable trend is the rise in luxury living spaces. This is reflected in the types of land transactions that are closed. Developers are now more focused on acquiring land for projects aimed at this high-end market segment.  

Homebuyers’ changing preferences, such as a desire for spacious and well-equipped living spaces, could be influenced by the COVID-19 pandemic and the rise of remote work arrangements. 

Market Outlook: A Balancing Act. 

The increase in land transactions demonstrates the health of the Indian real estate market, particularly for luxury housing. However, experts warn that focusing solely on this segment risks ignoring the ongoing demand for affordable housing options, particularly among first-time homebuyers in smaller cities. 

Moving forward, the Indian real estate sector must strike a balance between catering to the luxury market and ensuring the availability of affordable housing alternatives. Strategic government policies and incentives can help encourage developers to participate in inclusive development projects, resulting in a more sustainable and equitable growth trajectory for the real estate sector. 

The cost of building real estate in India is predicted to increase by 6% by 2024, with Mumbai being the most expensive city

Posted on by

JLL’s most recent Construction Cost Guide predicts that in the financial year (2024) across all sectors, the nation’s overall construction costs will rise by an average of 6%. 

With higher prices, Mumbai remains the most expensive city overall, but Chennai is a more cost-effective option. The increased cost of necessary building supplies like cement, structural steel, reinforcement steel, and stones is the cause of Mumbai’s higher prices. 

The handbook offers information on real estate asset construction costs and market trends in important Indian markets. It contains an analysis of market trends for key building materials and a cost matrix representing various styles and quality levels.  

“To maximize expenditure, businesses are currently reevaluating their real estate decisions. The general trend is clear: construction costs are rising, even though the precise impact of the pandemic on these costs is still up for debate, according to Jipu Jose James, Managing Director, Project Development Services  (PDS), JJL, India. 

Customer spending is therefore anticipated to prioritize functions that improve the end-user experience. Cost management is essential to maintaining budget control and completing commercially and qualitatively viable projects. 

An increase in labor costs  

While several factors affect building costs in India, labor is also a key component in the country’s economic expansion. As a result, the supply-demand gap is narrowing as construction shifts to non-metropolitan and rural areas, resulting in a more stable labor market and lower wage inequality, according to the report. 

Labor rates have risen by an average of 6% per year over the last three years, increasing construction costs by about 2%. The industry heavily relies on its workforce, as evidenced by its increase to approximately 71 million employees in FY2023, up from 63.98 million the previous, year, due to urbanization and rising infrastructure demands. 

However, this growth is primarily in unskilled labor, exacerbating the skilled worker shortage. Lack of vocational training institutions impedes skill development, according to the report. 

According to the report, global construction costs will rise in the coming year. 

The US, EU, and UK are potential areas for real estate expansion for Bengaluru-based RMZ Corporation

Posted on by

RMZ Corporation, a Bengaluru-based company, is headed west. “Indian-founded but global alternative asset owner” is the company’s stated global. In the next 12 to 15 months, it hopes to close free real estate deals in the US, EU, and UK, according to Mihir Menda, RMZ Corporation’s Supervisory Board Member. 

He disclosed to HT Digital that the business intends to grow internationally. “It is undoubtedly rooted in risk management. The tale of India is amazing. However, we aspire to be an Indian-founded, worldwide owner of alternative assets,” he declared.

The business has been “actively examining the UK and the EU.” And moving out of India is a fantastic transition. In the years to come, the US will also be on our minds, especially because the country’s commercial real estate is now experiencing a mini-depression. With the capital-rich structure, now is the perfect moment for someone to enter the picture. There are many options available to you for rapidly recycling your capital. Additionally, he told HT Digital, “There are good opportunities where you can invest for the long term.” 

Mihir Menda is a supervisory board member and a second-generation leader currently based in the US. He is involved in establishing strategic alliances and researching potential new international markets. 

By 2032, RMZ hopes to own $100 billion in value of assets in its portfolio. 

Menda made the following statement regarding the company’s goal: “It is ambitious but achievable.” 

With a shorter investment horizon, he stated that the ‘next generation’ at RMZ “wants to invest in opportunities.” Brownfield sites “where a developer may have defaulted” may fall under this category.

“We could dive in and finish it by contributing our expertise. That eliminates the need for the first two to three years of foundation work, excavation, obtaining permits, and other associated hazards. Furthermore, earning your first dollar takes three years instead of seven.  

The business might also be “happy to consider the acquisition and investment of certain core portfolio opportunities in addition.” And that might be Grade B plus Grade A less any assets we believe have room for additional value.” 

For a $2 billion price, RMZ Corporation sold Brookfield a sizable portion of its commercial portfolio in December 2020, including co-working space and 18% of its commercial assets. Thus far, the business has sold 12.8 million square feet. 

The Menda brothers’ privately held company, RMZ, has chosen to expand into other real estate markets after specializing in building Class-A office buildings. In November 2023, RMZ Corporation announced a significant investment of $7 billion over the following five years to develop $25 billion worth of office, residential, warehousing, hospitality, and mixed-use projects across major cities as part of its business expansion strategy.   

RMZ intends to concentrate on asset classes with higher dollar returns. 

The company is concentrating on asset classes and regions that “give better dollar returns,” according to Mihir Menda.  

“It is that simple. If the residential prices are comparable today, it could be Manhattan or Mumbai, or it could be, you know, one or the other wherever the deal looks sweeter,” he continued. 

RMZ is also examining properties in distress. 

The business is willing to consider distressed assets as well. 

“In general, we are considering investments, assets, and project developments— both green and brownfield—that have the potential to add value. 

You might be able to invest 20 cents to a dollar because the asset itself generates rent, even though the current owner might have, for example, fallen behind on the loan. It could be an opportunistic investment or, occasionally,  a core investment. Simply put, you are investing at the right time to ensure it will be profitable,” he clarified. 

When asked if the business would invest internationally through a subsidiary, he responded that the real estate company is not considering doing business with other entities. 

“…..our goal is to have RMZ, the owner of global alternative assets with funding from India. As a result, RMZ will be handling it rather than a set amount of capital,” he said. 

Mumbai and Manhattan are also being compared in the business’s consideration of an “international foray.” We simply compare the areas where we receive higher returns before investing. He stated, “We are not comparing sources or setting aside any quantum for this. 

Timelines 

According to him, the business is “aggressively pursuing” opportunities for global expansion and should be closing a few deals “within the next 12 to 15 months.” 

Indian versus international real estate  markets 

Contrary to other regions, Menda claimed that commercial real estate in India is relatively shielded from the real estate problems faced by other nations. 

He sated that due ti mismanagement of cash flows, rising finance costs, and asset refinancing difficulties, Class A  commercial assets in Manhattan, for instance, are trading at 25 to 30 cents on the dollar. 

However, none of this takes place in India. And  the beauty of India is that, despite  being on the verge of overtaking the United States as the world’s third-largest economy, it remains relatively immune to the real estate crises plaguing most of the other economies we discuss, particularly those in Europe and the United Kingdom.