Monthly Archives: May 2024

NAREDCO Praises REITs for Changing the Game in Indian Real Estate Investing Accessibility

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The National Real Estate Development Council (NAREDCO) and Kedia Corporate Advisors Pvt. Ltd. co-presented a February webinar on Small and Medium Real Estate Investment Trusts (SM REITs). Since the Securities and Exchange Board of India (SEBI) has recently made significant regulatory changes, it is important to grasp the details of SM REITs in light of the importance of the webinar. During the session, CA Amit Kumar Kedia, Director of Kedia Corporate Advisors Pvt. Ltd., explored the advantages and regulatory framework of SM REITs and shared his insights. 

“We discussed in the webinar how important it is for regulatory frameworks to support entrepreneurship and innovation in the real estate industry. By putting a premium on compliance and openness, we strengthen investor confidence and enable SM REITs to reach their full potential as reliable investment options. By introducing SM REITs, the stringent disclosure and compliance requirements aim to align the REIT market with the Indian equity market, fortifying the regulatory framework and projecting India as an appealing destination for local and foreign investors, augmenting our stature as a worldwide investment hub. 

The goal of the launch of SM REITs, based on the “schematization movement” in financial products, is to democratize ownership by making ownership accessible and affordable for a broad spectrum of investors. The objective of India to become a developed nation by 2047 is supported by initiatives such as these. Let us embrace this historic policy change as we all work together to embrace this major policy change as we all work together to build an empowered and developed India,” he stressed. 

Many subjects were covered in the webinar, such as the idea of SM REITs, the regulatory environment, market analysis chances to draw in investors, risk management techniques, potential tax ramifications, and future outlooks. To answer questions from the participants, a lively Q&A session was held. 

“The SM REIT webinar was a game-changer for the real estate industry in India. Delving deeply into creative methods and tackling challenges, served as an impetus to progress. Through this webinar, we aimed to empower the workforce, foster sustained growth, and drive development within the sector, focusing on alternative financing through Real Estate Investment Trusts (REITs), “stated G Hari Babu, National President of NAREDCO. 

“As the world’s fastest-growing major economy, India is expected to see faster real estate market growth in 2024, with all real estate indicators at record highs. An encouraging step to facilitating real estate investment in India is the introduction of small and medium-sized REITs. By attracting more retail and institutional investors and lowering entry barriers, these Real Estate Investment Trusts (REITs) hope to boost market confidence by offering opportunities for diversification. This new regulatory framework is expected to boost investments, liquidity, and the influx of both foreign and domestic capital into the real estate industry, according to NAREDCO Chairman Dr. Niranjan Hiranandani.

“The real estate industry has been going through significant transformations, with increased organization and the entry of new corporate players,” stated NAREDCO Vice Chairman Rajan Bandelkar. The industry benefits from this evolution in several ways, including increased stakeholder faith and trust, which were lacking previously. Moreover, there is now a stronger relationship between the real estate market and the share market, with rises in the former typically having a favorable effect on the latter.  

The March 8, 2024 approval of SM REITs is one noteworthy development. Real estate investment trusts (REITs) offer a fresh approach to real estate investing, facilitating quicker access to funds benefiting individual investors. Even those with smaller savings can invest in real estate thanks to REITs, as they allow for fractional ownership and market participation. The advantages are exclusively available to larger investors and are now available to regular people thanks to the democratization of investment opportunities.” 

Beyond Site Visit: Revealing Revolutionary Real Estate Trends

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Emerging consumer preferences, changing economic realities, and technological advancements are driving a significant evolution of the real estate landscape. The real estate market is set to undergo revolutionary changes by 2024, which could completely alter how we interact with real estate— from the purchasing and selling procedures to our daily lives and occupations.  

In the real estate industry, 2024 will see the emergence of sustainable living and smart home technologies as major trends. Modern Internet of Things (IoT) technology makes it simple for homeowners to integrate smart devices, enhancing energy efficiency, convenience, and security. Smart technologies improve home comfort and increase a property’s market appeal. Examples of these technologies include automated lighting systems and smart thermostats.

As more and more people demand environmentally friendly features like solar panels, energy-efficient appliances, and green building materials, sustainability is also experiencing a major renaissance. Buyers are expected to place a higher priority on living sustainably by 2024, which will have an impact on residential building design and construction.  

How prospective buyers view properties is revolutionized by virtual reality (VR) and augmented reality (AR) technologies. These immersive technologies will allow buyers to virtually tour properties from the comfort of their own homes by 2024.

Professionals in real estate are also using AR to improve the visualization of properties. Using AR, purchasers can see their dream home by superimposing virtual furniture and decor on actual spaces using AR glasses or smartphones. 

The global trend toward remote work has had an important effect on real estate trends, and this influence will not decrease in 2024. As more people and businesses accept flexible work schedules, buyers are reconsidering their requirements and searching for homes that fit new work-from-home lifestyles. 

As people strive to create practical and inspiring workspaces, dedicated office spaces, ergonomic designs, and high-speed internet connectivity will become necessary home features. Suburban and rural areas are becoming ever more popular among people looking for larger homes, outdoor spaces, and a calmer environment, which is challenging the allure of urban living. 

Real estate transactions are beginning to use blockchain technology, which promises to increase efficiency, security, and transparency. By 2024, blockchain applications for property transactions, title management, and general real estate process optimization may grow significantly. 

The decentralized structure of blockchain lowers the possibility of fraud and simplifies the whole real estate process. With the help of blockchain technology, smart contracts can automate several transitional processes, such as payments, inspections, and legal paperwork, for all parties concerned. This speeds up and improves the reliability of the process. 

The conventional homeownership model is changing as younger generations value experiences and flexibility more than long-term obligations. Co-living arrangements, in which single people or families share communal living spaces to promote a sense of community and lessen the cost of housing, are predicted to increase in popularity by 2024. 

A growing number of flexible housing options are becoming available to meet the needs of digital nomads and others who value mobility and the freedom to try out different living arrangements without the commitments of long-term ownership. Examples of these options include furnished apartments and short-term rentals. 

Significant changes to the real estate market are expected in 2024 and beyond due to advancements in technology, shifting work environments, and shifting consumer preferences. The real estate market is becoming more responsive, human-centered, and dynamic for buyers and sellers as the industry adjusts to these revolutionary changes. 

Pune’s property market data for March 2024 saw a 52% YoY increase in property registrations

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 The Maharashtra government collected Rs 804 crore in stamp duty in Pune in March 2024, a 30% YoY increase from Rs 621 crore in the same month in the previous year.  

In March 2024, 21,744 properties were registered in Pune, a 52% increase from 14,309 the previous year. The Maharashtra government’s Department of Registrations and Stamps (IGR) reports that stamp duty collections during this period amounted to Rs 804 crore, indicating a 30% YoY increase. 

The sum in stamp duty collected as of March 2023 was Rs 621 crore. 

An increase in the number of properties purchased in March 2024 for more than Rs 1 crore 

March 2024 saw the largest residential unit registrations, or 33% of all housing transactions, for units priced between Rs 50 lakh and Rs 1 crore. Comparably, 32% of the market share was accounted for by properties priced between Rs 25 lakh and Rs 50 lakh. According to a Knight Frank analysis, the percentage of properties priced under Rs 25 lakh also increased significantly, rising from 16% in March 2023 to 21% in 2024. 

There was a rise in the market share of the higher value segment, which includes properties priced at Rs 1 crore and above. The proportion of properties in this category increased from 10% in March 2023 to 13% in March 2024, suggesting a growing inclination towards properties within this price range. 

An increase in the desire for larger apartments 

The market share of apartments between 500 and 800 square feet was 40% in March 2024. Comparably, units smaller than 500 square feet also garnered much attention; in March 2024, they accounted for 35% of all transactions, making them the second most popular apartment size. It demonstrated that the market share of larger apartments— those larger than 1000 square feet– stayed steady at 13%. 

“Pune’s real estate market is still growing thanks to a robust demand for homes, reasonable prices, and ideal circumstances. A notable 52% increase in registrations in March 2024 over the same month the previous year set a positive tone for the upcoming quarter, according to Knight Frank India Chairman and Managing Director Shishir Baijal.  

52% of buyers in the 30 to 45 year old range range 

Homebuyers between the ages of thirty and forty-five made up the largest buyer segment in the Pune market, with a sustainable 52% share. Homebuyers between the ages of 45 and 60 made up 18% of the market, while those under 30 made up 24%. 

The analysis revealed that professionals make up a significant portion of the market, especially in the 30-to-45-year-old age range, which is the largest segment. 

The Goa SCPCR calls for the Labour Commissioner and the MD of Ambiance Real Estate Developers

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Several infractions of the 1996 Buildings and Other Construction Workers Act have been brought to the attention of the Commission. 

  • Unsafe Living Conditions: Without basic utilities and in makeshift housing with potentially dangerous materials, the children and their families were discovered to be living in risky conditions. 
  • Lack of Creche Facilities: The location flagrantly disregarded the necessity to provide creche facilities, which is essential for the safety of the kids employed in construction. 
  • General safety violations: There was a compromise to the site’s overall safety because no measures were taken to guarantee basic sanitation or prevent injury. 

The hearing will cover all of these topics in detail. The parties responsible must submit a thorough report and plans to improve the existing circumstances. Serious legal action under applicable statutes will follow noncompliance with these expectations.   

The Goemkapronn desk 

PANAJI: In response to the horrific abuse and death of a 5- 5-year-old girl, the Goa State Commission for Protection of Child Rights (GSCPCR) has taken a strong stance against violations of children’s rights at the New Vaddem Vasco construction site. This incident has exposed the appalling and harsh living conditions that children and their families are subject to at this location. 

The GSCPCR is a legally mandated statutory body tasked with monitoring the protection of children’s rights and examining complaints alleging these rights have been violated. By the law, the Commission has called a crucial hearing for May 2, 2024, including the Chief Labor Commissioner and the Managing Director of Ambiance Real Estate Developers. The purpose of this meeting is to discuss the violations in detail and make sure that thorough corrective action is taken right away. 

Strongly denouncing the abuse and neglect discovered during the inspections was Chairperson Mr. Peter F. Borges. “Defending our children’s rights is more than just an act of kindness; it is ingrained in the legal system and permeates every aspect of our society. We now have a situation where and permeates every aspect of our society. We now have a situation where our kids are fighting for their lives in dangerous living circumstances rather than having fun and learning. 

Mr. Borges said, “Under our supervision, this cannot and will not continue.” 

He continues, saying, “The most defenseless people in our society should not be treated with such flagrant contempt. This Commission will guarantee justice and accountability. 

Chairperson Mr. Peter F. Borges’ visit to the construction site revealed the terrible conditions.  

The grave circumstances were made public when Chairperson Mr. Peter F. Borges visited the construction site. “The victim’s family was found living in extremely inhumane conditions directly at the construction site during an inspection led by the Hon’ble Chairperson of the Goa State Commission for Protection of Child Rights,” reads the official notice. 

The grave circumstances were made public when Chairperson Mr. Peter F. Borges visited the construction site.

In New Delhi and Mumbai, Tesla looks for showroom space in shopping centers, high streets, and commercial districts

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According to people familiar with the situation who spoke with HT Digital, Elon Musk’s Tesla has held preliminary discussions for showroom space in high streets, mall locations, and commercial districts in New Delhi and Mumbai with several real estate developers, including the biggest player DLF and Maker Maxity. 

Musk is anticipated to make a major announcement regarding a major investment in the third-largest automobile market in the world when he visits New Delhi the following week to meet Prime Minister Narendra Modi. 

“They require between 3,000 and 4,000 square feet of showroom space, which they need soon. Rental prices will vary depending on the location,” one of the individuals remarked, requesting anonymity. 

DLF did not reply to HT Digital’s questions. 

It should be noted here that DLF has leased retail space to Porsche in Capitol Point in Connaught Place and to Kia in DLF Cyber Hub, Gurugram. Vehicle dealership rentals are location-specific, according to real estate experts. “In the Connaught Place area, it may be anything above Rs 600 per sq ft. Car showrooms generally can pay higher rentals, often a premium of 25% to 30%. “They frequently become the standard for more expensive commercial rentals in a given area,” they stated. 

Moreover, rumors are circulating that Tesla is reportedly looking for showroom space in the Maker Maxity commercial development in Mumbai’s Bandra-Kurla Complex. 

Tesla and MakerMaxity have received emails from HT Digital. 

How do high-end automakers choose their parking lots? 

According to experts, showroom locations with easy access to the main road are typically sought after by luxury car manufacturers. 

These are frequently found in areas of the city that are easily accessible to wealthy customers. “The showroom ought to be situated somewhere where automobile deliveries are convenient. Better accessibility infrastructure ought to be present. Large hallways, spotless sidewalks, and a layout that enhances visibility were mentioned. 

Several international car brands have showrooms in Gurugram along Golf Course Road. Mercedes and BMW are a couple of these. High net-worth individuals live in this area. According to sources, Maserati is anticipated to open a showroom along this stretch. According to them, the expense of renting a car showroom at this location can reach Rs 600 per square foot. 

According to a different real estate expert, residential clusters home to the wealthy and well-known are the first choice for luxury car showroom spots alongside those with prestigious corporate offices. 

Aralias, Magnolias, and DLF Camellias are a few of the lavish residential developments along Golf Course Road. 

Renting out a luxury car showroom is based on how much room is available for branding, signs, and ads. A real estate expert states that a corner showroom space with two-sided visibility will bring in more money for rentals. 

According to a recent Reuters report, Tesla is making right-hand drive vehicles at its Berlin facility with plans to export them to India later this year. The report claims that Tesla executives started actively looking for locations in March. They have already had initial discussions about it with real estate developers.   

According to the statement, the ideal locations will likely be at possible malls and high street locations. Tesla has declared that it wants to begin building as soon as possible, with an opening date of 2024 likely. 

VR House Tours: The Next Big Thing in Real Estate Displays

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Virtual reality (VR) could soon replace images as the common visualization tool for online real estate listings. How will this technology change the real estate market and affect buyers and sellers? 

Virtual Reality Home Tours: A Growing Trend in Real Estate 

With virtual reality technology, you can virtually visit every room of a rental property and have face-to-face conversations with the agent from the comfort of your living room couch. Its global market value in the real estate industry may have increased from $800 million in 2020 to $2.6 billion in 2025. 

Accessibility is one of the main benefits of virtual home tours. VR allows you to walk through a property regardless of whether it is under construction or occupied by the owners. Even if you and the listing agent are on different sides of the nation, you can arrange an aided walkthrough to obtain insider knowledge about the property. 

To fully appreciate the potential of a fixer-upper, consider using virtual reality (VR) technology to overlay remodeling or design changes onto the real model. Because of these characteristics, this kind of tour is among the most intimate and immersive, which explains why it is becoming so popular quickly. 

The demand for real estate is slowing down due to rising interest rates. For example, the average interest rate on 30-year  mortgages increased from 3.02% in 2020 to 5.8%-6.1% in 2024. This is the application of VR. It offers a special chance to help buyers and sellers by speeding up the process of getting properties off the market and improving the efficiency of tours. 

The Technological Developments Enabling Everything 

A virtual home tour relies heavily on VR technology, yet it’s also made possible by a few other breakthroughs. The first is 360-degree camera scanning of the property for high-resolution 3D imaging. After that, the seller uses specialist software to stitch the photos together to create an accurate virtual replica for tours. 

The Internet of Things is the second innovation that enables VR home tours. Vendors can add dynamic elements to the virtual world by feeding real-time data through networked sensors. Rather than burdening end users with computation and bandwidth, they can use edge devices connected to the internet. 

Technological developments in motion sensors and controllers have enabled interaction. Rather than following a prerecorded guided tour, you can explore the property at your own pace. Animations such as those that lower blinds or open cabinets can also be initiated with a simple hand motion. 

Considering that consumer applications make up 53% of the VR market, the number of technological advancements aimed at real estate should be no surprise. The cost of conducting research, developing software, designing, and hosting platforms for these applications is high. 

VR-Powered Real Estate Showings and Their Consequences 

Virtual Reality technology increases the accessibility of home tours, increasing the number of potential buyers. Experts claim that compared to the conventional approach, they reach more potential customers. They are more engaging in addition to drawing in more visitors. 

Typically, a property’s listing only allows you to view the layout. With any luck, you will also obtain many wonderful photos. They still do not capture the essence of what it is like to be in the house, though. Because virtual reality immerses you in an authentic, lifelike replica where you have agency and control, it increases user engagement.  

Although the former may be more evident, sellers benefit more from virtual home tours than buyers. The selling prices of properties that use VR real estate showings are 7.25% higher than the benchmark. 

Heightened buyer engagement and broadened accessibility lead to a competitive advantage. The process moves more quickly since virtual tours don’t require in-person assistance or scheduling. 

Some experts claim properties using VR real estate showings spend 20%-30% fewer days on the market. As a result, agents can take on more listings at once. 

Possible Difficulties with VR for Sellers and Buyers 

Virtual Reality (VR) home tours can help buyers and sellers, but they pose some challenges. One of the biggest of these is the inaccessibility of VR headsets. Immersion experiences require mid- or high-end equipment, but virtual viewings can still be done without one. This problem is more likely to affect properties in low-income areas. 

Agent accessibility is another issue that buyers and sellers must deal with. Although an assistant is not necessary for virtual home tours, many serious buyers request one to ask questions. However, scheduling can become more difficult due to the increased attention VR listings receive. 

The accuracy of virtual property replicas is the final potential source of difficulty. Even though the average cost of creation is less than $300, some sellers might not be able to afford to have theirs redone for each update or renovation. Customers may feel misled if the tour does not resemble its real-life counterpart.  

The Prospects for VR Home Tours in the Real Estate Industry 

Sellers can see where buyers are coming from and which properties they are most interested in by using VR to track eye movement, location, data, and interaction information. They can then optimize their pricing, risk assessment, marketing, and demand forecasting strategies. 

Buyers can simultaneously virtually inspect properties from any location, in any condition. The accessibility and engagement benefits of VR technology will probably change the nature of a typical real estate transaction. 

VR technology has the potential to revolutionize the real estate industry forever, making it the preferred option for buyers and sellers. It may become commonplace to include it alongside layout and property photos as its popularity grows and becomes something that people anticipate seeing. 

Mumbai-The way micro markets are defining real estate

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These smaller-scale micro markets cater to particular demographics and present distinctive prospects. They meet the community’s demands of work, connectivity, and way of life. 

Mumbai: The real estate landscape in Mumbai is changing due to micro markets. Developers are finding smaller, niche markets within the metropolis in this space-constrained city. These smaller-scale micro markets cater to particular demographics and present distinctive prospects. These smaller-scale micro markets offer unique opportunities and target specific demographics. They meet the community’s requirements for work, connectivity, and way of life.  

“In the  Mumbai Metropolitan Region (MMR), neighborhoods like Dombivali, Thane Ghodbunder Road, Goregaon, Kandivali, Mulund, Nahur, Kanjurmarg, Vikhroli, and  Chembur are expanding and developing as micro markets. In these markets, improving connectivity and infrastructure are critical components People who want to investigate the walk-to-work concept are finding a lot of commercial and residential buildings in these areas, according to Dominic Romell, director of Romell Group and president of CREDAI MCHI. 

“As more people have options for commuting to work outside local trains, the growth is also primarily driven by the increasing metro connectivity.” According to Romell, these micro-markets offer 2 BHK apartments with a carpeted area ranging from 600-645 square feet and one parking space. They would rather take a comfortable transit option that drives down and exacerbates the traffic jam.”

These apartments range in price from around Rs 1.75 crore and less, though prices will depend on the location and amenities. In response to the issue of whether we can refer to these as “Affordable dwellings,” Romell said that although the size of these apartments is reasonable, the price is not because it is directly tied to the cost of land that the developer bought. 

CEO of Runwali Bliss, Lucy Roychoudhury, stated that Mumbai’s architecture is changing due to the construction of high rises and skyscrapers in areas that were not as popular ten years ago as they are now for home buyers. “Localities like Kanjurmarg, Vikhroli, Dombivli, and Kandivali amongst others have gained momentum in the past few years and are locations much sought-after by home buyers today,” Roychoudhury said. The luxury of gated  communities with expansive green open spaces, first-rate amenities, and improved connectivity is available at these locations.” 

“The younger generation of homebuyers is looking for larger living spaces without sacrificing access to convenient places for their way of life or employment. Recent data indicates a significant demand for homes for ownership and rental purposes, due to the ease of commuting, the availability of projects, and good social infrastructure. These neighborhoods encourage homebuyers to upgrade their lifestyles because they offer the perfect balance of luxury and convenience” Roychoudhury said.

Micromarkets serve a variety of purposes. Young professionals value vibrant nightlife and cultural scenes, while families value proximity to schools, supermarkets, and hospitals. Mumbai’s real estate market changes as micro markets do. Beyond the usual hotspots, homebuyers scour the city for fresh opportunities. 

MahaRERA instructs L&T to take only 2% when canceling an NRI homebuyer’s reservation

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A second criticism leveled at the prospective buyer came from the state real estate regulator for failing to fulfill payment obligations despite numerous reminders.  

While considering a complaint submitted by an Abu Dhabi homebuyer, the Maharashtra Real Estate Regulatory Authority (MahaRERA) has instructed Larsen & Toubro (L&T) to take only  2% of the amount already paid and return the remaining amount.  

This is the regulator’s second decision following a comparable case involving Godrej Properties.  

The conglomerate’s real estate division, L&T Realty, developed a project in Mumbai’s Kurla neighborhood. The non-resident Indian (NRI) paid more than Rs 25 lakh toward the project’s overall cost of Rs 2.29 crore. 

However, because the remaining amount was not paid, L&T eventually canceled the reservation. With a cancellation charge of more than Rs 8 lakh, or roughly 3.49 percent of the total flat price, L&T offered the buyer Rs 17 lakh.

When a booking is terminated, MahaRERA’s order instructs L&T to deduct no more than 2 percent of the total amount paid. 

On April 8, Moneycontrol reported that MahaRERA had ordered Godrej Greenview Housing Private Limited, a division of Godrej Properties, to take out a mere 2 percent, instead of 5 percent, and return the remaining funds to a buyer who had reserved and canceled an apartment worth Rs 92 lakh at the Godrej Emerald development in Thane, close to Mumbai. 

The case 

The buyer, currently in the United Arab Emirates, reserved a unit and got an allotment letter in March 2018 at the Emerald Isle-T10 project in Kurla, Mumbai. 

The buyer paid approximately Rs 25 lakh, which made up 10.50 percent of the total cost.

Due to the bank subvention scheme’s termination, the buyer could not finish the transaction. 

In a subvention scheme, the buyer, developer, and buyer’s lender enter into a three-way agreement whereby the buyer contributes up to 10% of the total cost, with the financial institution bearing the remaining amount. Equivalent monthly installments start once the buyer receives possession of the property.

The developer argued before MahaRERA that the complainant (homebuyer) failed to appear to sign the sale agreement despite its efforts, an assertion that the buyer challenged. 

The developer said at the MahaRERA conciliation forum that he was willing and able to reimburse the buyer for Rs 17 lakh. 

They could not agree on the sum and thus couldn’t sign the consent terms. 

For his inability to travel to India and carry out the sale agreement, he cited  COVID-19. 

Apart from refunding the allegation of sufficient funds, he asserted that he had enough cash on hand and that the sale agreement was unsigned, so he was not required to pay the developer. 

Despite the developer’s request in June 2019, the MahaRERA stated in its order dated March 11 that the buyer had not explained why he had not paid the stamp duty and registration fees required to complete the sale agreement.  

“The MahaRERA order stated that despite the respondent’s repeated correspondences, all of these facts point to the complainant’s flimsy justifications for avoiding timely payment and the execution of the sale justifications for avoiding timely payment and the execution of the sale agreement.”  

Given that the homebuyer had requested to leave the project along with a refund, MahaRERA ordered the developer to return the money paid without interest after deducting 2 percent of the total consideration (value). 

From a Bengaluru tailor shop to a $1.3 billion fortune: Introducing Irfan Razack, MD and Chairman of Prestige Estates Project

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Thanks to a 60% increase in Prestige Estates Projects shares, Irfan Razack and his family’s wealth reached a historic milestone: $ 1 billion. 

One of India’s wealthiest people, Irfan Razack, is the chairman and managing director of Prestige Estates Projects. He describes his rise from modest beginnings. Razack Sattar founded the Prestige Group in 1950 and came from a business family with a history of success. His first store was a modest fabric and tailoring shop in Bengaluru. 

As  prestige estate projects  proliferate

Prestige Estates Projects has become a major force in the Indian real estate market under Razack’s direction. With a varied portfolio that includes endeavors in the residential, commercial, retail, and hospitality sectors, the company has covered an astounding 75 million square feet with 285 completed tasks and 54 ongoing projects. 

Financial Benchmarks 

Thanks to a 60% increase in Prestige Estates Projects shares, Irfan Razack and his family’s wealth reached a historic milestone: $1 billion. The company has become India’s largest listed property firm, second only to DLF, as a result of its success. Global brands such as Apple, Louis Vuitton, Armani, and Caterpillar are among the notable tenants of Prestige properties.  

Vision and Spirit of Entrepreneurship

Razack’s enthusiasm for creativity and entrepreneurial spirit drove him to continue transforming Prestige Estates Projects into a real estate powerhouse, even though he had initially intended to retire after selling his second real estate project in Bengaluru in 1990. He credits careful preparation and a distinct growth strategy for his success.  

Growth and Originality 

The reach of Prestige Estates Projects goes beyond  Bengaluru to include Hyderabad, Mumbai, Chennai, Kochi, Calicut, and Hyderabad. By 2019, the company hopes to quadruple its yearly sales, which reflects Razack’s dedication to innovation and customer satisfaction. Its target market is middle-class buyers. 

Family Involvement and Legacy 

Rezwan and Noaman, Razack’s younger brothers, are crucial players in the family company contributing to its prosperity. Prestige Estates Projects’ real estate endeavors coexist with the Razack family’s fabric and tailoring shop, demonstrating the family’s strong entrepreneurial spirit. 

Rising demand for eco-friendly homes is propelling the market for luxury real estate

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A CBRE survey indicates that sales of homes priced at Rs 4 crore and above increased by 75% last year, indicating a significant surge in demand for luxury real estate.

The market for opulent homes has seen a sharp increase in demand recently. A CBRE survey indicates that sales of luxury properties in the nation that cost Rs 4 crore or more increased by 75% in the previous year. The increasing number of well-to-do millennial homeowners seeking living environments that seamlessly combine sustainability, usability, and beauty is altering the nature of the market. However, this revolution calls for an inventive component in manufacturing and promotion. 

According to Knight Frank’s The Wealth Report 2024, shifts in buyer preferences, particularly in the post-Covid era, have driven the market’s exponential growth in luxury real estate in recent years. There has been a steady rise in premiumization in the market, it continued. 

The ongoing maintenance of environmental consciousness is one of the traits that define this new breed of luxury consumer Sanjoo Bhadana, MD of 4S Developers, says the market is not just about opulence and extravagance anymore. Instead, the emphasis is on creating living spaces that eloquently blend beauty, utility, and sustainability. 

“Goel Ganga Developments Director Gunjan Goel stated that millennials are looking for homes that have these attributes by default, in addition to those that have been built with a green design in mind  and smart home technology to reduce the carbon footprint.” 

Developers are taking note of this trend and incorporating cutting-edge technology features like green spaces, rainwater harvesting systems, and energy-efficient systems into their high-end offerings. Aman Gupta, Director of RPS Group, says luxury is no longer just about large rooms and opulent finishes. 

“The goal is to create experiences that enhance everyday life,” he stated, noting that their living areas have been transformed into an integrated setting that accommodates a variety of interests and passions. 

In addition, globalization and technology are important factors in determining preferences. The current generation has grown up with access to a global trend, whereas the previous generation was only exposed to a restricted number of trends and information. 

Why are Indians so eager to buy pricey homes in London and Dubai?

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The recent global trend of India buying up real estate is a component of HNI’s and UHNI’s plan B options. 

Indians are now the largest group of property purchasers in Dubai, according to the recently released Betterhomes Dubai Real Estate Market Report for FY23. This is an intriguing trend.  

UHNIs from all over the world who want to participate in this booming real estate market share this interest in addition to expats already employed in Dubai. 

There are many reasons for this increase in interest, including the appreciation of capital, the high rental yields relative to India, the availability of 100% freehold properties, tax-free investments, world-class infrastructure, currency appreciation, and the golden visa. Furthermore, purchasing real estate in Dubai is more about the satisfaction of becoming a property owner in a major world city like Dubai than investing. 

The recent global trend of Indians buying up real estate is a component of NHI’s and  UHI’s plan B options. The new class of wealthy Indian families aspires to live in a world devoid of national borders that are open, globalized, and interconnected. 

Due to their culture of working from anywhere, these UHNI’s are eager to buy pricey properties outside of India in places like Dubai and London. This will enable them to pursue their professional and personal objectives and spend time abroad.  

Furthermore, as part of their generational planning, these families hope to invest their way into alternative residency or citizenship. Giving their children the best opportunities for a college education, improved career prospects and quality of life, retirement planning, new business opportunities, and visa-free travel to many countries due to their stronger passports is the goal in these situations. 

Global diversification 

Along with the benefits of geographic and currency diversification, international diversification lowers the portfolio’s overall risk. In addition to funds that invest across multiple geographies and provide access to real estate domains such as commercial, residential, land parcels, warehouses, etc., investors should also consider options such as REITs and InvITs when making real estate investments. 

After selecting the portion of their portfolio to be allocated to international real estate, investors should consider the demand and supply dynamics of the area, the likelihood of profits, and the trajectory of interest rates, which will eventually support real estate due to their gradual decline. Comprehending the impact cost, exit cost, and tax laws is imperative, as they play a crucial role in the rental or eventual sale of the properties. 

Before investing in foreign real estate, investors should inquire if their wealth management team has local partnerships in different markets. In the future, collaborating with a local partner can benefit investors in several ways, including advisory, execution, monitoring, and resale. 

This is because after a property is purchased, it requires a lot of supervision, and when it comes time to sell, factors like impact costs, exit costs, and tax laws become important. 

If it is a commercial property, local teams would also have a fair idea of how to rent out the business space. To put it briefly, the local partner will undertake all of the legal and financial due diligence needed to buy, maintain, and resell the property. 

In conclusion, purchasing property overseas is a wise choice, particularly for those who want a backup plan– Plan B— that they can always turn into Plan A. The most popular nations among HNIs and UHNIs considering alternate residency or citizenship are the USA, Portugal, Canada, and the UK.   

Hence, investors looking to acquire international properties should go through a wealth advisor who, with their astute advice and expertise in the local markets, can help simplify and fasten the investment process, which will, in turn, help investors achieve their global mobility goals. 

Mumbai real estate developers anticipate that Gudi Padwa will boost home sales

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Maharashtra real estate developers believe that April 9th’s Gudi Padwa festival will boost sales of new homes. Many companies provide discounts and attractive incentives, such as gold coins, flexible payment plans, and even exemptions from goods and services tax and stamp duty, to entice customers to provide more information.  

Gudi Paadwa, which falls on the same dates as Kerala’s Vishu, Andhra Pradesh’s Yugadi, Punjab’s Baisakhi, and Tamil Nadu’s Puthandu, is celebrated as a time of renewal. Real estate experts say that during this time, there is a noticeable increase in activity in the property market because many Indians associate purchasing a property with auspicious dates.  

“As average property prices rise in the top seven cities, where housing demand is still very high, this is unquestionably the right time to buy. Santosh Kumar, vice  chairman of ANAROCK Group, stated, “Big and leading developers are seeing significant  sales in their projects, so one should not look for major offers and discounts.” 

According to him, comparable patterns were seen during the holiday quarter (October-December 2023), when developers hardly offered any deals or discounts, especially for projects with strong sales. Offers, such as freebies like gold coins and iPhones, are being made to initiatives requiring an extra push to boost sales. 

During this fortunate event last year, “we  achieved 20 bookings, accounting for approximately 25% of our monthly business.” Strong buyer sentiment in the real estate market typically presents an excellent opportunity for consumers to buy homes, according to Anupam Varma, CEO of Rustomjee Urbania at Rustomjee Group. 

Gudi Padwa provides.

Mahindra Lifespace Developers’ Chief Business Officer (Residential), Vimalendra Singh, stated that during this period, developers provided flexible payment options, festive discounts, and other incentives like gold, silver, or even white goods. The company sold over 20 homes in five days on Gudi Padwa last year, an almost 100% increase in sales. 

Demand for real estate has increased dramatically in the first two months of 2024, particularly in the MMR region, where property registrations surpassed 10,000 in January and 11,000 in February.  “We anticipate that Gudi Padwa will contribute to an increase in housing sales volume,” Ashar Group Chairman and Managing Director Ajay Ashar stated. On this occasion, the company has arranged its yearly Ashar Expo. 

Majnu Yagnik, Senior President of NAREDCO-Maharashtra and Vice Chairperson of the Nahar Group, stated that a variety of incentives are available, including cashback programs, waivers of registration and stamp duty fees, personalized payment plans, family vacation packages, free gold coins, appliances, or furniture, and deferred interest payments until full possession. 

This Gudi Padwa, we expect strong sales traction. Sales this year are predicted to rise by 15-25%, making it a remarkable year overall. Parth Mehta, CMD of Paradigm Realty, stated, “We are offering 10gm gold coin plus 0% SDR along with a spot discount upon booking a flat at our 71 Midtown and Paradigm Alaya project.” 

The Person Midtown Bay project, situated in the center of Mahim, offers semi-furnished 2.5 BHK and 3 BHK apartments on higher floors with a modular kitchen fully equipped with white goods. 

For its 2BHK homes in the Tridhaatu Morya development in Chembur, Tridhaatu Realty is giving away IKEA gift cards. GST and stamp duty exemptions are also provided. 

In Pune, Joyville Shapoorji Housing offers 10 gm gold coins at Joyville Sensorium and 50K worth of gold vouchers at Joyville Celestia. To entice fence-sitters, Joyville Virar is providing a multi-coupon offer with benefits of up to 2 lakh. 

Godrej Properties saw sales bookings of Rs 22,500 crore in FY24, an 84% increase from the previous year

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Due to rising housing demand, Mumbai-based real estate company Godrej Properties reported an 84% year-over-year increase in sales bookings to a record of Rs 22,500 crore. 

Due to rising housing demand, Mumbai-based real estate company Godrej Properties reported an 84% year-over-year increase in sales bookings to a record Rs 22,500 crore on April 9, according to a regulatory filing from the business. 

The booking value increased by 135% to over Rs 9,500 crore in the fourth quarter of FY24, and by 84% to over Rs 22,500 crore in the full year. 

GPL surpassed its booking value guidance by 161% for FY24 thanks to an improved project mix, volume growth of 31% to 20 million square feet, and year-over-year improvements. The company sales volume increased by 56% to 8.17 million square feet in Q4FY24.  

Godrej Properties said in a regulatory filing that the company’s sales for the fourth quarter of the previous fiscal year and the entire year 2023-24 were the highest they have ever been.  

“This marks the greatest annual sales any publicly traded Indian real estate developer  has ever disclosed.” The company claims was achieved by selling 14,310 homes totaling 20 million square feet. 

Superlative customer demand propelled sales in a few significant new project launches. According to the statement, Godrej Reserve in MMR and Godrej Zenith in NCR had booking values of over Rs 3,000 crore and Rs 2,690 crore, respectively. 

Four projects in FY24 achieved over Rs 2,000 crore in booking value, including Godrej Tropical Isle in Q2 and Godrej Aristocrat in Q3. In FY 24, GPL’s booking in the NCR increased by 18% to exceed Rs 10,000 crore, while in the MMR, they increased by 114% to exceed Rs 6,500 crore. 

“The scale-up we have accomplished over the last years fills us with great satisfaction. Our annual bookings in FY22 are not as high as the sales bookings of over Rs 9,500 crore in Q4FY24. In FY24, we saw an 84% increase in bookings, totaling more than Rs 22,500 crore. Godrej Properties MD and CEO, Gaurav Pandey, expressed his satisfaction that the company’s sales growth was driven by a strong 31% increase in volume and an improving project mix.  

Along with its recent entry into the Hyderabad market, the company will have an even stronger launch pipeline for the current year.