Monthly Archives: July 2024

Bangalore’s real estate: These are the top 5 neighborhoods for techies to rent in the city

Posted on by
Reply

Techies, good news! MK Stalin, the chief minister of Tamil Nadu, recently announced plans to build a new airport at Hosur, which could help Bengaluru’s Electronic City. 

Tamil Nadu Chief Minister MK Stalin recently announced the construction of a new airport in the border city of Hosur, located 40 km from Bengaluru and only 25 km from the city’s tech hub, Electronic City. This development is good news for Bengaluru’s IT professionals, especially those who have made their home in the southern part of Electronic City. 

For those who do not know, Kempegowda International Airport in Bengaluru is more than 60 km from Electronic City. The commute from Electronic City to the airport currently takes one to three hours. 

Various IT professionals are employed in Hosur’s Electronic City, which offers faster internet and more reasonably priced housing than many other Bengaluru neighborhoods. 

A local broker recounted a recent experience in the property-starved market of IT hub Bellandur in Southeast Bengaluru: “A couple that wanted to move from Electronic City to Bellandur had to pay Rs 5,000 more than the initial rental price cited for a 2 BHK because of high demand.   

According to Saurabh Garg, the founder and chief business officer of NoBroker.com, rentals have increased in some of Bengaluru’s well-known IT hubs due to a mismatch between supply and demand. 

These are five Bengaluru real estate hotspots that are well-liked by the city’s IT workforce. 

Bellandur 

Sarjapur Road borders Bellandur, a well-known IT hub in South East Bengaluru, to the South, and the HSR Layout borders it to the west. Numerous massive corporations call it home, including Wells Fargo, Adobe India, Linkedin, Intel Technology, and Adobe. 

Bellandur offers a good selection of contemporary apartments and gated communities, with projects from prominent real estate companies like Prestige Estates, the Embassy Group, and Sobha Ltd. The region also benefits from the presence of multiple coliving brands. 

“But it is hard to find good options and the rents are too high,” an Amazon India employee who lived in the neighborhood said. 

According to NoBroker data, the average rental price of a two-bedroom apartment in Bellandur is currently Rs 40,000. According to local brokers, rents in this area have increased by 20% in the last 12 months. They attributed the sharp rise to a shortage of land parcels and a supply constraint.  

Whitefield 

Whitefield is a posh IT and residential district located on Bengaluru’s eastern outskirts. 

The average cost of a residential property in this area is currently Rs 10,850 per square foot, based on data available on 99 acres. A 1-BHK apartment can set you back anywhere between Rs46.25 and 87.50 lakh. 

According to NoBroker, the average rental price for a fully furnished 1 BHK is Rs 28,000, while a 2 BHK can be rented for Rs 35,000. According to the Proptech unicorn, Whitefield rent increases have been between 7 and 10% since the Purple Line metro opened for business in March of this year. 

Real estate companies based in Bengaluru, and those from other cities have placed bets on the Whitefield market with several projects, such as Godrej Properties, Prestige Estates, Sumadhura Group, and Sobha Ltd. 

Marathahalli

Marathalli, an East Bengaluru residential neighborhood on the Outer Ring Road, is highly sought-after because of its advantageous 8.6-kilometer proximity to Whitefield. 

As per NoBroker, the current average rent in Marathalli for a 2BHK apartment is Rs 32,000. A local broker stated, “Yet, land in Marathalli is not available for upcoming projects.” He said that prices have increased by 10% to 15% annually. 

According to Propertywala, this neighborhood’s average price per square foot for real estate transactions is currently Rs 9,151. 

Electronic City 

Local real estate brokers in the South Bengaluru tech hub report a 10-15% increase in rentals year over year. 

The price increase in this location cannot be compared to other areas because of the large amount of unsold inventory, according to Kiran Kumar, vice president of Hanu Reddy Realty. He stated, “The share held by apartment landlords is also declining due to the availability of multiple options for paying guests. 

A 2-BHK apartment in Electronic City is currently for rent for an average of Rs 28,000, according to NoBroker. 

Hennur 

Hennur in North Bengaluru has become increasingly popular with IT professionals in the IT city as a preferred residential area after the COVID-19 pandemic. Six kilometers separate it from the well-known Manyata Tech Park. 

According to Kumar, property values in this area have increased by 10% to 15% over the past 12 months. He also mentioned to expect a greater demand for 2 and 3 BHKs in this area. 

According to Square Yards, a 950-1,200 square foot 2 BHK unit in Hennur currently rents between Rs 32,300 – 40,000. A 1,250- 1,630 square feet 3BHK rents for Rs 43,100 -55,600. 

The Kempegowda International Airport is located in North Bengaluru, while Hebbal is 25 kilometers away. 

According to Propertywala the average residential property rate in Hennur is $10,850 per square foot. 

Gurgaon and Dwarka are leading the premium real estate boom, with prices rising by up to 53%

Posted on by
Reply

The average capital values of completed and under-construction properties in Gurgaon reached a new high of 30% and 37%, respectively, with year-over-year growth recorded at the city level. 

According to an analysis by global consulting firm Savills India, the top-performing micro real estate markets in the nation are New Gurgaon and Dwarka Expressway, with average capital values of under-construction properties growing by 34% and 53%, respectively, annually over the past year. 

The consulting firm also noted that due to the rise in “work from anywhere” or remote working and relatively high rental yields, North Goa, the second home location, saw a sharp increase in villa prices of 28% over the year. 

The average capital values of completed and under-construction properties in Gurgaon reached a new high of 30% and 37%, respectively, with year-over-year growth recorded at the city level. The average capital value of residential plots increased by 43%, the Dwarka Expressway saw the biggest price increase. 

In Noida, the average capital values of completed and under-construction properties saw notable annual increases of 29% and 30%, respectively. Sector 150 in Noida had the largest growth in capital value for properties still under construction, a growth of 43 percent annually. 

With an annual growth rate of 43%, the sector 150 micro market has the biggest increase in capital value among properties still under construction. 

The average capital value of luxury floors increased by 16 percent annually in Delhi. With luxury floor prices rising by 27% annually, South-East Delhi saw the largest price appreciation. The South-West, which saw a year-over-year increase of 21%, comes next. 

At the city level, the average capital values of residential plots increased by 25% annually. The micro-markets in the South-Central and South-West regions drove this trend, registering the highest YoY growth rates at 29% for each. 

“As new launches offered newer amenities and configurations, the under-construction projects in the top 3 cities of Delhi, Gurgaon, and Noida witnessed higher price appreciation of up to 30% over the year compared to ready properties.” The premium housing market is experiencing strong demand, as evidenced by the ongoing price movement. Savills India claims that the RBI’s decision to keep interest rates unchanged for the sixth consecutive time is another element bolstering the rising demand and should support the expansion of the residential market. 

Price patterns: 

  • In Mumbai, the increase in capital values for properties still under construction is greater than that of ready properties, which saw a 3% year-over-year rise, and under-construction properties saw a 5% YoY increase. 
  • The capital values of Central Mumbai and Western Suburbs (others) experienced a noteworthy YoY increase of 12% -21% due to new launches at prices exceeding the current market average. 
  • The demand for the luxury segment saw notable growth in the market. 
  • The growing trend of hybrid working, particularly among professionals in the financial services and legal domains, made larger spaces in bungalows and premium residences more desirable. 

Bengaluru 

  • Capital values in Bengaluru’s upscale residential market increased by 5-6% YoY during the year. Due to strong demand and higher prices for newly launched projects, under-construction projects experienced higher growth, averaging 7.2% YoY, compared to just completed projects that saw an increase of roughly 5.2% YoY. 
  • After East Bengaluru, which grew by 6.2%, Central Bengaluru saw the largest increase in capital values of completed projects, at 7.5%. 
  • The main drivers of capital appreciation in these markets have been the completion of the new metro route in Eastern Bengaluru and the high demand from HNIs in Central Bengaluru. 

North Goa 

  • North Goa’s average capital villa values increased by a major 28% year-over-year increase. Due to its high rental yields, growing appeal for gated villas, and demographic shift towards younger, lifestyle-focused buyers, it is becoming increasingly popular among homebuyers as a second home location, which is why prices have increased. 
  • The market is seeing a trend of young professionals relocating to Goa, particularly from big cities like Bengaluru, Delhi, and Mumbai. These professionals frequently pursue better work-life balance as digital nomads or in creative industries. 
  • Gated villas in coastal belt areas like Anjuna, Arpora, Baga, Calangute, Candolim, and Vagator were preferred by buyers.
  • The availability of villas in North Goa has drastically changed due to growing land prices. Over the previous five years, the typical size of a villa has decreased by nearly half, from 5,400 square feet to 2,700 square feet.  

The following were the main trends these cities saw all year long: 

Mumbai 

  • Rental values increased in all micro-markets, with estimates ranging from 3% to 8% year over year. The pent-up demand for rental properties brought on by the city’s abandoned building redevelopment can be partially blamed for the increase in rental values. 
  • The market grew as more and more end users began considering renting larger homes in amenity-rich projects. 
  • Real estate near metro stations saw a sharp rise in rental values. The convenience of a quick and reliable commute to major business hubs and entertainment districts is highly sought after by homebuyers.  

Bengaluru

Premium residential developments in South and North Bengaluru witnessed a notable 3% year-over-year increase in rental income. The rate of premium property growth in East and Central Bengaluru was also 2% YoY. 

Delhi

  • At the city level, rental values rose by 31% YoY in H1 2024. 
  • The Central 1 micro market saw a 36% year-over-year rent rise, while the South-Central micro market saw the largest annual at 38%. 

Gurgaon

  • The average rental rate increased by 18% YoY in the city. 
  • The two roads with the largest rental increases were Golf Course Road and Dwarka Expressway, with 19% and 28% YoY growth, respectively. 

New launches across key cities: 

  • There were 1,300 new luxury apartment launches in Delhi in H1 2024, an X4 increase. 
  • In H1 2024, Gurgaon saw a 1–2X increase in new launches, totaling roughly 9,500 luxury units. 
  • Noida has seen a significant increase in newly constructed luxury apartments, with an expected 2,200 units added in H1 2024. 
  • With 5,632 new units introduced, Bengaluru’s premium segment experienced a 156% year-over-year growth in H1 2024. 23% of new launches occurred in North Bengaluru and 55% in East Bengaluru. 

“Buyer confidence was high in the first half of 2024, with investors showing a preference for recently launched properties and end users looking for properties ready for them to move into. Buyer and tenant demand for older developments in grade A corridors increased. Large balconies and green spaces improved the sales velocity of villas and apartments. More attention was also paid to the 4-BHK in the luxury market, which is relevant to both primary and secondary markets. A growing number of new developments in Delhi and Gurgaon indicates a rising need for luxury homes. Shveta Jain, Savills India’s Managing Director of Residential Services. “It is noteworthy that picky purchasers also pursued green buildings, indicating an increasing desire for high-end, eco-friendly living beyond conventional conveniences.” 

India’s atrocities are writing a new chapter in the real estate growth story: Report

Posted on by
Reply

India is witnessing a surge in the popularity of atrocities, in line with global trends. They are emerging as early indicators of the modern Indian urban lifestyle, conceptualized as sub-urban areas centered around the airport. 

Atrocities, fully operational business districts centered around airports, are a new phenomenon that urban India is witnessing. According to the most recent report prepared by 360 Realtors and Axon Developers, there are nine Aerocity projects across 14,000 acres of land in the nation. 

India has about 22%, or 3050 acres, of operational Aerocity land. There are activities in Delhi, Hyderabad, Mohali, and Durgapur. A little over 18%, or 2585 acres, of Aerocity land, is currently under development and should soon be available for purchase. 

Several projects are currently under construction, including a 150-acre project close to the recently opened Valmiki International Airport in Ayodhya, a 463-acre mixed-use project close to Devanahalli Airport, and the 172-acre Aerocity project close to the soon-to-open Jewar Airport. 

The 740-acre Aerocity project, located close to the Navi Mumbai International Airport, is currently under full construction. Together with CIDCO, Adani is developing the project. 

The UP state government has announced several important projects, including constructing a 1500-acre cityside development next to the Lucknow airport. 

The world was first exposed to Aerocities in the 2000s, when self-sustaining urban ecosystems were created near airports in Singapore, Kuala, Lumpur, London City, Dallas, and Dubai. These thriving business districts began to change as parallel central business districts, reshaping the city’s development. 

During the 2010 Common Wealth Games, India had its first Aerocity close to IGI Airport. Currently one of the most sought-after neighborhoods in the NCR, it is a 200-acre community that runs parallel to Cyber Hub, Golf Course Road, and Vasant Kunj. There are 15+ upscale hotels located in the GMR Aerocity. Aerocity is home to more than 100 of the top fast-food chains in addition to plenty of specialty shops, high streets, and lifestyle merchants. At MOPA (232 acres) and Hyderabad (1500 acres), GMR is also building other upscale Aerocities. 

Capturing the interest of both large and new companies

Atrocities are signs of the contemporary Indian way of life. “The original plan for Atrocities was to serve as commercial transit hubs for domestic and foreign travelers. Over time, however, they have developed into fully operational commercial suburbs with several upscale hotels, chic retail establishments, fine dining establishments, affluent office buildings, etc., making them a popular destination for tourists and locals. According to Ankit Kansal, MD of 360 Realtors, “They also include logistic parks, business parks, e-commerce warehousing, etc. functioning as commercial catchments.” 

There are 200-1500 acres of atrocities in the airport’s immediate vicinity (usually 1-3 km from the main airport premise.) Businesses, MNCs, and corporations are keen to locate their regional or corporate headquarters in the Aerocity region. Not only does it reduce travel expenses, but it also gives companies access to elite talent. Atrocities provide a comfortable yet laid-back environment for idea sharing, business networking, and semi-formal get-togethers; these events are quickly gaining popularity among startups and established companies,” continues Kansal. 

Expanding Transition to NAR

Airport operators are increasingly moving toward Non-Aeronautical Revenues (NAR). Large sums of money must be invested in the development and operation of airports; parking and hanger fees, airline fees, and passenger fees alone will not cover these costs. Therefore, to create new revenue streams, airport developers and operators seek opportunities in several potential sectors, including food and beverage, lifestyle, hospitality, destination marketing, real estate, etc. 

The pandemic has further highlighted how crucial it is to diversify sources of income into fresh, workable ideas. Nearly 60% of the global share is made up of NAR. It is still low in India, except for larger airports like Delhi (60%) and Mumbai (55%). It is restricted to about 15-25% in smaller airports. But times are changing, and given their attractive real estate opportunities, Atrocities will be important. 

A bustling hub for the hospitality sector 

With the increasing connection of luxury hotels, upscale hotels, corporate guest houses, long-term rental projects, serviced apartments, etc., atrocities are a hive for the hospitality industry. The total number of branded rooms in Atrocities is estimated to be around 5,500, according to data from a 360 Realtors study. It is expected to reach approximately 12,000 by 2030, with a compound annual growth rate of 16.9%. 

There are about 4,000 rooms in Delhi Aerocity alone and a large pipeline of about 3,000 more rooms. The Bangalore Aerocity has a large pipeline with approximately 2500 rooms. In Hyderabad Aerocity, a 290-room Novotel hotel is operational. Boston Living is building a posh co-living complex with 1500 beds nearby. When the Hyderabad Aerocity is finished, it will rank among India’s biggest real estate developments. 

Prominent areas near Jewar International Airport with room to grow

Posted on by
Reply

Despite construction delays, one of the innovative projects that has altered the NCR skyline is the Noida International (Jewar) Airport. Once it’s operational, real estate goldmines like Noida, Greater Noida, and Yamuna Expressway will certainly take off. This list of the top communities that Jewar Airport will benefit from can be used by investors hoping to take advantage of this opportunity. 

The operational timeline of the Noida International Airport, also known as the Jewar Airport, was recently pushed back, moving from the final quarters of 2024 to April 2025. The demand for real estate in Jewar’s surrounding areas is nevertheless persistently high due to the excitement surrounding this significant development. New residential developments are being dotted throughout the planned cities of Noida, Greater Noida, and Yamuna Expressway, as they attempt to capitalize on this situation. But as buyers, which neighborhoods should be our top priorities given the size of these cities? 

Top 5 areas where Jewar Airport will be beneficial 

Here is a list of the top five locations to invest in close to Jewar International Airport, based on factors such as the availability of residential stock and the potential for price appreciation brought about by additional upcoming developments. 

Jewar, Greater Noida 

Jewar is a suburban area only 2 km from the Yamuna Expressway. It is home to the notorious Dau Ji Mela and will soon be the location of the Noida International Airport. One of the main factors influencing buyer sentiment in this situation is connectivity, whether it be via road or air. 

Other options are available to Jewar residents via the NH-334DD, which goes through the region. 

The Noida Airport Rapid Metro corridor will also run through the area once the Jewar Airport is operational, linking it to the Delhi area’s Indira Gandhi International Airport, And that is not all! Other improvements to connectivity will improve Jewar’s vicinity, including: 

  • The proposed 28-kilometer expressway from Jewar Airport to Kalindi Kunj in Delhi will connect Chola to Palwal Station via the new railway line. 
  • An expected 28-kilometer expressway would run from Delhi’s Kalindi Kunj to Jewar Airport. 

Property prices in Jewar have increased by 25% in the last few years as the many civic projects currently under construction. The residential inventory here is dominated by plots and land parcels, with an average plot rate of Rs 2,200 per sq ft currently found in Jewar. 

This is comparatively cheap when you look at some of the larger nearby areas, such as Noida or Greater Noida. 

Regarding the accessibility of fundamental facilities close to Jewar Airport, a few of the options that are within 3 km of the location are as follows: 

  • Pragyan Public School
  • Blue Bird Public School
  • Kailash Hospital 
  • Assaka Hospital 
  • Amba Mall 

The Yamuna Expressway’s Sector 22D 

Situated on the Yamuna Expressway, Sector 22D is a rapidly developing residential hub and just a half-hour’s drive from the future Jewar Airport. The availability of well-known developers offering residencies at various costs draws prospective buyers to this neighborhood. 

For example, investors seeking high-rise properties in recently launched projects might consider high-end developers such as Ace Group. However, Sector 22D Greater Noida provides ready-to-move-in flats by Supertech Builders, Orris Group, and Authority Flats by Yamuna Expressway if you want instant possession. A wide range of planned developments are also available to purchasers; the majority of these are governed by the Yamuna Expressway Industrial Development Authority (YEIDA). 

At the moment, the average cost of real estate in Sector 22D is approximately Rs 8,300 per square foot for plots and lands, and approximately Rs 8,100 for apartments. However, Sector 22D Yamuna Expressway is regarded as one of the best areas to benefit from Jewar Airport for reasons other than the fact that apartments are readily available close to the airport. 

Dankaur, Greater Noida 

Another neighborhood, Dankaur, is only a 30-minute trip from Jewar Airport and provides prospective homeowners with several reasonably priced house options. In Dankaur, residential resale plots are widely available for Rs 11 lakh and above, with an average selling price of Rs 2,200 per square foot. 

Since the Yamuna Expressway primarily facilitates connectivity near Jewar Airport, communities like Dankaur rely on this stretch for their commutes to Noida and Greater Noida. The Surajpur Industrial Area is only a 20-minute away. So Damnkaur homeowners can benefit from year-round rental advantages. Dankaur has many social amenities available, all within a 10-kilometer radius. Here, some of the most popular amenities are: 

Situated on the Yamuna Expressway, Sector 22D, Greater Noida provides excellent access to neighboring social amenities. For example, the locality is only 8 km from Galgotias University, Noida International University, Krishna Hospital, and other places. The Sector 148 Metro Station on the Noida Aqua Metro Line is another alternative commute node; it is a 23-minute drive. 

Educational Institutes Healthcare Institutes Recreational Spots 
Gautam Buddha UniversityShri Banke Bihari Hospital Dhanauri Wetlands 
N.S.P.D Public SchoolKalash Hospital Yamuna City Mall 
Udai Public SchoolGuru Dayal Hospital Sector-22B Shopping Center 

Sector 150, Noida 

A little further out of the suburbs, Noida’s Sector 150 is another excellent area that takes advantage of Jewar Airport. Despite being 45 km away, the proposed airport is readily accessible by car in 40 minutes because of Yamuna Expressway’s constant connectivity. The Noida-Greater-Noida Expressway and the Sector 148 Metro Station (Aqua Line) are two more important commuter hubs in this area. 

The neighborhood has a great location advantage in addition to connectivity, as major business and commercial hubs like Sector 135, Sector 142, Sector 144, and Sector 153 Noida are only 14 km away. The neighborhood’s nearly 80% green open space content contributes to its overall liveability. 

Combine this with the availability of renowned builders that provide contemporary, high-rise luxury homes, such as Godrej Properties, ATS Group, Eldeco Group, Mahagun Group, and others. However, what kind of appreciation in property value can buyers anticipate from this busy neighborhood? The flat/apartment rates in Sector 150 Noida and its historical price appreciation history are displayed in the table below. 

Locality Average Apartment Price Price Appreciation in the 1 year Price Appreciation in the last 3 yearsPrice Appreciation in the previous five years 
Sector 150, Noida Rs 10,700 per sq ft27%89%98%

There is more! The extensive array of social amenities in Sector 150 Noida, some of which lie within ten kilometers, is another reason for preference. Below is a table that lists some of the most popular choices: 

Educational FacilitiesMedical FacilitiesRecreational Facilities 
GNIOT Group of InstitutionsPrakash HospitalThe Grand Venice Mall
Galgotias College of Engineering Apollo Cradle & Children’s HospitalInox Cinema 
KR Mangalam WorldYatharth Super Speciality Hospital MSX Mall
Greater Valley SchoolGulshan One29

Chi 5, Greater Noida 

Greater Noida’s Chi 5 comes last on our list of the best places to benefit from Jewar Airport. Chi 5 is only 40 minutes away by car from the soon-to-be airport, roughly 44 km away, and can be reached via the Yamuna Expressway. Furthermore, the location is only 17 km away from thriving commercial hubs such as Sector 132, Sector 135, and Sector 142 Noida due to its proximity to the Noida-Greater-Noida Expressway (5 km). The Surajpur Industrial Area (4.5km), Ecotech 2 (12 km), and Ecotech 111 (17 km) make Chi V one of the best housing hubs in terms of location. 

Still, what kinds of properties should buyers search for in Chi V Greater Noida? The majority of the housing stock in the area is made up of contemporary, gated high-rise apartments, though there are a few isolated villas and plots. Purvanchal Projects, Nimbus Group, Earthcon Constructions, Amrapali Group, Proview Construction, and other prominent builders are leading the way for this reason. 

Let us quickly review the average apartment prices in Chi V as shown in the table below, along with a glance at the historical price growth trajectory. 

Locality Average Apartment Prices Price Appreciation in the last 1 year Price Appreciation in the past three years Price Appreciation in the previous five years 
Chi VRs 8,300 per sq ft38%132%122%

What’s more? Chi V, one of Greater Noida’s fastest-growing neighborhoods, is close to a variety of social amenities; some of the more well-liked ones are just five kilometers away and include: 

  • The Great Venice Mall
  • JP International School
  • Samurja International School
  • Apollo Cradle & Children’s Hospital 
  • Yatharth Superspeciality 
  • MSX Mall 

Considering the earlier stated details, Jewar International Airport is anticipated to yield substantial benefits and influence India’s aviation sector. The airport will open the door for more residential and commercial real estate development in and around its environs, so better connectivity is just one benefit. However, significant civic improvements are still being made to these prime locations that Jewar Airport will benefit. It is always preferable to consult a local real estate office to determine where to invest. 

More than 1,500 acres of land that real estate developers have recently acquired through JDAs: a JLL report

Posted on by
Reply

According to JLL, landowners and real estate, developers collaborated to develop 1,546 acres of land during the previous 18 months, from January 2023 to June 2024. There were 56 different Joint Development Agreements (JDAs) signed during this time. Development agreements have shown to be very effective in enabling developers to enter new markets and cities while giving landowners additional benefits. Furthermore, several renowned foreign developers who have recently joined the Indian real estate market have chosen to employ this tactic with encouraging outcomes. 

Approximately 990 hectares of the 1,546 acres total JDAs were signed in 2023 alone, with the remaining 556 acres being signed in the first half of 2024. 

Joint development agreements are still an option for national developers seeking to expand into new areas while sticking to an asset-light strategy, even though many now prefer outright land acquisitions. Over eighteen months, developers and landowners have come together to generate over 120 million square feet of development potential. 

“Over the past 18 months, the residential sector has signed the most land Joint Development Agreements (JDAs). According to Dr. Samantak Das, chief economist and head of research and REIS, India, JLL, “proposed residential developments have a significant share of more than 97% (1,501 acres) in these signed agreements offering a development potential of 110 million sqft with an estimated gross development value of around Rs 99,460 crore.” “Real estate developers have been introducing new housing projects regularly due to the rising demand for housing in recent years. The number of new housing units introduced in India’s top 7 cities increased significantly in 2023, showing a 19% increase over 2022,” he continued. 

Out of the 1,546 total acres, 45 acres were set aside for the development of commercial projects, most of which were office buildings with leases. 

According to the city share analysis, smaller cities like Ahmedabad and Surat top the charts according to area transacted, while larger cities like Delhi NCR, Bengaluru, and Mumbai lead in the number of deals. The three larger cities accounted for just 26% of the total area, but together they hosted 36 deals, accounting for 64%. Smaller-scale transactions are primarily driven by land availability and cost in these larger urban areas. Nishant Kabra, head of JLL’s capital markets (North and West India), India, stated that the three cities– Delhi NCR, Bengaluru, and Mumbai— accounted for a significant Rs 83,927 crore, or over 84% of the total residential GDV (Rs 99,460). 

Delhi NCR has been at the forefront of various transactions; since 2023, 20 JDAs totaling about 233 acres of land have been signed. There is a 36.5 million square foot potential development from these agreements. Most of these agreements, totaling 151 acres in the Delhi NCR, were signed in Gurgaon alone. Several legally binding deals have been entered into by prominent real estate players in Gurgaon, mainly along the developing Dwarka Expressway and Southern Peripheral Road corridors. Sonipat, Ghaziabad, Faridabad, and the NCT of Delhi accounted for the remaining deals in the NCR. 

With nine deals totaling more than 102 acres and approximately 11 million square feet of development potential, Bengaluru came in second. Several deals were documented in Old Madras Road, Whitefield, and Yelahanka. Notably, a transaction involving more than 60 acres was recorded in North Bengaluru. Seven transactions totaling 62.5 acres, with a 9.9 million square foot development potential, were recorded in Mumbai. 

Today marks the release of Kalki 2898 AD, starring Amitabh Bachchan, who purchased properties valued at more than Rs 100 crore in the past year

Posted on by
Reply

Amitabh Bachchan, the star of Kalki 2898 AD, has been in the news lately due to his real estate holdings, particularly in the Mumbai real estate market. The Bollywood actor has spent more than Rs 100 crore on real estate in the temple town of Ayodhya and the financial hub of Alibaug during the past year. 

Amitabh Bachchan registered three office units in Mumbai’s Signature building on June 20, 2024, paying approximately Rs60 crore. According to documents accessed from Floortap, the Bollywood actor paid Rs59.58 crore for three office units totaling 8,429 square feet in area. 

Similarly, Bachchan paid Rs29 crore in September 2023 for four more apartments in the same Signature building, totaling over 8,396 square feet. Sara Ali Khan, Kartik Aaryan, and Manoj Bajpayee are among the other Bollywood celebrities who own office space in the same building. 

Big B also bought a plot last year in Ayodhya, close to the Ram Temple, in The Sarayu, a plotted development project being built by The House of Abhinandan Lodha (HoABL), a Mumbai-based real estate developer. 

The Kaun Banega Crorepati host paid Rs 10 crore to The House of Abhinandan Lodha (HoABL) in April of this year for a 10,000-square-foot piece of land in Alibaug, Maharashtra, which is close to Mumbai. 

His son Abhishek Bachchan had previously registered six apartments in the Oberoi Sky City development in Mumbai’s Borivali West neighborhood on May 28, 2024. The Rs 15.42 crore purchase included six apartments with 4,894 square feet of RERA carpet.  

High net-worth individuals, Bollywood stars, investors, and industrialists typically prefer investing in Grade A properties. Real estate consultants say commercial office spaces provide better returns than residential projects. 

In Metro cities, commercial assets such as office space, retail space, and warehouses yield 6-10% gross rental yield, and in certain cases, even more. On the other hand, residential properties yield gross rental yields that range from 3% to 5%. On the other hand, advisors claim that land is among the most profitable investments if it helps for a long period and offers a higher capital appreciation.  

“The goal of investment is the same whether discussing Bollywood celebrities or wealthy people. Capital appreciation and rental yields are the two key variables. This is the rationale behind real estate investments made by Bollywood celebrities and ordinary investors alike, according to Swapnil Anil, executive director and head of Colliers India’s Advisory Services division. 

“New Bollywood stars tend to invest in established markets that offer a steady from rent cash and healthy capital growth. According to Swapnil Anil, capital appreciation is an investor’s primary concern when buying land. 

The Dwarka Expressway is driving the real estate revival in Gurgaon

Posted on by
Reply

With the Dwarka Expressway, businesses, residents, and investors stand to gain much from the promise of better accessibility and enhanced connectivity. 

Gurgaon’s real estate market has experienced a surge in activity due to the Dwarka Expressway, drawing interest from investors and homebuyers. In the history of Gurgaon’s development, this corridor marks a critical turning point that will transform the city’s skyline and spur economic growth. In addition to increasing property values, the expressway has spurred economic activity nearby and electrified infrastructure to expand. Gurgaon is currently a leader in India’s growing real estate market, drawing interest from domestic and international markets. The Dwarka Expressway is creating a lot of talk, highlighting how important it will be in deciding Gurgaon’s status as a vibrant and future metropolis. 

The real estate market in Gurgaon is experiencing a notable upswing, primarily due to improved connectivity between Delhi and Gurgaon. Maintaining the growth pace relies heavily on the central peripheral road, which is essential between the Dwarka Expressway and Sohna Road via the Southern Peripheral Road (SPR). The recent opening of the Dwarka Expressway’s Haryana segment by Prime Minister Narendra Modi is expected to improve traffic flow and reduce congestion between Delhi and Gurgaon. Experts in real estate note that the Dwarka Expressway in Gurgaon is growing in popularity as a residential area and predict the construction of opulent residential complexes shortly. Furthermore, a rise in housing prices is inevitable due to the expressway’s operationalization, as this will reflect its increased accessibility and desirability. 

The Dwarka Expressway Gurgaon corridor has become a popular residential area, attracting buyers with its varied housing options and better infrastructure. Reputable builders have contributed to this boom by starting several projects nearby, enhancing Gurgaon’s standing as a top destination for real estate investment. 

Over the last ten years, the area has witnessed the arrival of about 53,000 new housing units, of which more than 80 percent have already been snatched up by eager buyers, according to data from real estate consultancy Anarock. The primary residential market along the Dwarka Expressway has experienced a surge in average property rates due to strong demand. As of the end of 2013, the rates have risen from Rs 4,530 per square foot to Rs 8,300. This demonstrates the corridor’s appeal and bright future for successful real estate endeavors. 

The Dwarka Expressway passes through several important Gurgaon sectors, including 81 to 115. Its catchment area includes sectors 36A, 36B, 37D, 88B, 99, 102, 103, 104, 106, 107, 108, and 109. It is noteworthy for having connections to the Delhi Mumbai Expressway, Manesar Road, and Pataudi Road. With the completion of the Haryana section of the expressway, developers are hopeful that their recent investments will finally pay off. This corridor is said to have delivered about 150 residential projects, and more high-end projects are expected to be launched soon. The opening of this crucial road infrastructure is expected to have a major effect on neighboring Delhi, especially on the residential zones in different villages, as well as revitalize areas within Gurgaon. 

The Dwarka Expressway may also be of major benefit to the economy, directing the development of Gurgaon. Its revolutionary effects on the real estate industry and the broader economy highlight the significance of infrastructure in prompting growth and prosperity. Gurgaon is positioned to become a model for sustainable urban development and economic prosperity in India due to the expressway’s opening up new investment and connectivity opportunities. 

Wide-ranging effects include increased economic activity, job creation, and improved liveability for the region, expected from this infrastructure project. With the Dwarka Expressway, businesses, residents, and investors stand to gain much from the promise of better accessibility and enhanced connectivity. Gurgaon is well-positioned to demonstrate its potential as a dynamic and vibrant economic hub that will propel innovation, growth, and prosperity for years as it embarks on this path of significant change. 

Stamp duty collections increased by 15% while property registrations in Mumbai rose 11% year over year in June 2024

Posted on by
Reply

In the Mumbai real estate market, there were 12,000 property registrations reported in May 2024. 

In June 20214, the number of property registrations in the Mumbai real estate market increased by over 11% to 11,443 from 10,319 the previous year, as per the data released by the Inspector General of Registration and Controller of Stamps of Maharashtra. In the Mumbai real estate market, there were 12,000 property registrations reported in May 2024. 

According to Maharashtra government data, stamp duty collections from property registrations in the Mumbai real estate market increased by over 15%, from Rs 859 crore in June 2023 to 986 crore in May 2024. Stamp duty receipts were Rs 1,034 crore as of May 2024. 

Sectoral estimates indicate that residential units account for approximately 80% of all monthly property registrations in Mumbai.  

While there was a YoY increase in Mumbai property registrations in Hune, the average recorded registrations for the first half of 2023 were 12,044 units, higher than the average of 10,578 units for the same period in 2023. As per the findings of a real estate consultant named Knight Frank India, this suggests that Mumbai’s residential market is resilient and buyers remain confident.  

Furthermore, the government’s average revenue collection in the first half of 2024 was Rs 974 crore, 8% more than the average of Rs 906 crore in 2023. Many contributing factors, including the increased volume and value of properties being registered, can be attributed to the increase in revenue, according to a report by Knight Frank India. 

The property sale registrations’ consistent year-over-year growth highlights Mumbai’s real estate market’s tenacity. Strong GDP growth, rising income levels, and a favorable environment for interest rates are all expected to contribute to this positive trend, leading to more potential buyers, according to Shishir Baijal, Chairman & Managing Director of Knight Frank India. 

Properties with 1,000 square feet or less continue to be the most popular. 

Apartments between 500 and 1,000 square feet saw a notable spike in June 2024, making up 46% of all property registrations. Conversely, 36% of registrations were for apartments up to 500 square feet, a decrease from 41% in June 2023. 

This shows a distinct preference for larger apartments, as the proportion of units under 500 square feet is declining. According to Knight Frank India’s report, 15% of all registrations were for homes with an area of 1,000 square feet or more. 

“The home sales registrations for June 2024 have witnessed a rise compared to June 2023, reflecting decent growth over the past year. The influence behind this upward trajectory of housing demand continues to be the connectivity boost across the city and the redevelopment boom. This upbeat sentiment is here to stay, and we will continue to witness the demand to further amplify across all segments and micro-markets in this region, especially in the western suburbs and eastern belt of Sewree-Wadala,” said Dhaval Ajmera, Director, of Ajmera Realty and Infra India Ltd. 

This is what it will cost you to be neighbors with Sara Ali Khan, Arjun Kapoor and Shatrughan Sinha

Posted on by
Reply

Sara Ali Khan, Arjun Kapoor, and Shatrughan Sinha— three Bollywood actors– might soon have new neighbors. A public notice to sell their properties has been served to the owners of Indus Projects Limited and the Union Bank of India for failing to pay. The prime property going up for auction has a reserve price of Rs 104.11 crore. 

Sara Ali Khan, Arjun Kapoor, Shatrughan Sinha, and his family are among the Bollywood celebrities who live in the same neighborhood as the building. 

The notice states that the bank plans to hold an auction for the promoters’ nine-story residential building. Located in Mumbai’s Juhu Vile Parle Development (JVPD), Kapolei Society in Vile Parle West, the building consists of seven 4BHK  apartments and a duplex. 

The nine-story residential property is situated in Nutan Laxmi CHS Ltd. According to the bank notice shared by Kecta, a platform that markets repossessed properties up for auction by banks and financial institutions, the plot is 800 square yards and is located in the Nutan Laxmi Co-operative Housing Society Ltd., North South Road, JVPD Scheme, Vile Parle (West), Mumbai. 

The building is owned by Indus Projects Limited, a public company established in 1997. The notice listed Kishor Mehta, Abhai Mehtax, Mahavir Mehta, Madhur Mehta, and Indus Mechanical Engineering Company Private Limited as bank debtors. 

The entire amount owed is approximately Rs 90.46 crore. According to the notice, the owners owe State Bank of India Rs 18.60 crore plus interest at the applicable rate, costs, dues, and expenses that may accrue from April 23 until the full repayment and settlement of dues. 

They also owe the Union Bank of India approximately Rs 71.85 crore plus interest at the applicable rate, costs, dues, and expenses. 

Under the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act (SARFAESI) of 2022, the Union Bank of India is holding an auction for the bungalow. 

According to Section 13(4) of the Act and Rule 8 of the Security Interest (Enforcement) Rules, 2002, the Authorized Officer has taken possession of the immovable secured assets because you did not comply with the notice within the allotted time. 

The notice stated, “The immovable secured assets that the bank’s authorized officer has taken possession of will be sold by holding a public E-auction on June 20, 2024, by inviting bids from the public online on www.mstcecommerce.com, since the owners have failed to clear the dues of the secured creditor.” 

There is a 25% off the list price on this offer. The entire transaction is cashless, and payment must be made through banking channels within 15 days of the auction date, according to Hecta’s founder and CEO, Sridhar Samudrala. 

These are premium location ready-to-occupy floors that are ready to be owned. We hardly ever have access to such upscale properties, much less at a discount,” he continues. 

Do you want to purchase a home at a bank auction? This is important for you to know. 

Since banks only auction these properties when a loan borrower misses several payments, most of these real estate assets are offered below market value. The lender uses the auction to recoup the principal and interest balance owed for the loan. 

Potential buyers of real estate at a bank auction should verify the property’s details, especially its legal specifications, before bidding. 

Buyers are cautioned that expenses such as maintenance, property taxes, and electricity which are the buyer’s responsibility are not included in the reserve price listed. 

The prospective buyer should also confirm whether the bank that promoted the sale took physical possession of the property after completing the necessary legal processes. 

According to a legal expert, these properties are sold on an “as is where is,” “whatever is there is,” or “no recourse basis,” which means that the buyer must review the inclusions and exclusions and cannot back out of the agreement after the auction ends (unless there are extraordinary legal circumstances). 

According to a legal expert, purchasers of apartments or bungalows up for auction should ascertain whether the properties are subject to any liabilities. 

What factors will dominate India’s real estate market in 2024?

Posted on by
Reply

An active real estate market in 2024 is due to the interaction of changing consumer preferences, government policies, and market dynamics. 

In recent years, there has been notable growth in the Indian real estate sector. The first quarter of 2024 broke nearly the record set in the previous year, with 2023 announcing the most new projects over the prior ten years. According to a report, the residential real estate market anticipates a significant influx of new launches in 2024, with an estimated range of 280,000-290,000 units. This has paved the way for a successful 2024, demonstrating that the industry is not only expanding but also showing signs of continued expansion in the years to come. 

What market factors will influence 2024? 

India’s real estate industry has long been one of the main forces behind economic expansion, contributing significantly to the GDP. The industry has proven resilient and adaptable in the face of challenges to the GDP. The industry has proven resilient and adaptable in the face of challenges in recent years, including the COVID-19 pandemic, regulatory changes, and liquidity crunch. A gradual recovery in the market was observed in 2023, driven by favorable government policies, pent-up demand, and a rise in the industry’s adoption of digital technology. According to former Housing and Urban Affairs Minister Hardeep Singh Puri, the Indian real estate market is projected to grow to a $1 trillion sector by 2030 and contribute roughly 15% of the country’s GDP by 2025. 

The Indian real estate market is viewed as a worldwide investment opportunity in addition to meeting local demand. NRIs in particular actively participate in the market in addition to being investors as a way of keeping ties to their home country. About 10% of all market investments as of the 2019-2020 fiscal year were made by non-resident individuals (NRIs). Currently, this percentage is at 15%, and by the end of 2025, it is expected to reach 20%. This demonstrates the market’s widespread appeal and the trust that non-resident investors have put in. 

The Indian real estate industry’s upward trend is evidence of its resilience rather than the product of chance. The industry has maintained a consistent rise in rental yield despite the ongoing devaluation of the Indian rupee and the difficulties presented by the state of the world economy. This has fueled the sector’s growth, providing confidence in its stability and potential for further progress, favorable economic policies, and an emotional bond with the home country. 

Buyer Trends and Market Dynamics: The trend of Upscale Living 

India’s growing economy has made it more desirable for those with more disposable income to live lavish lives. The populace also looks for homes with extra features like swimming pools, fitness centers, and lovely gardens. Beyond HNIs and UHNIs, people in the upper middle class also want bigger living areas and higher income levels. 

Considering the Environment 

The building of sustainable structures has seen a significant shift in the Indian real estate market during the past two years. The real estate industry is improving living standards by employing environmentally friendly building materials, water conservation and management techniques, and energy-efficient building designs. Customers are looking for houses that align with their values and views. Homes with rainwater collection systems, renewable energy systems, and energy-efficient appliances are sought after by today’s buyers, especially those belonging to Generation Y. 

Naturally occurring light and air are also permitted in sustainable homes, creating an impression of greater room and fresh air. This improves moods and lowers stress levels, which boosts productivity— especially for those who work from home. Although building green real estate costs a little more than building traditional homes, people can save a significant amount of money on their bills over time, making it an excellent investment. 

Choices for Housing 

Due to a lack of Ready-to-Move-In (RTMI) inventory and price increases in gated communities, buyers are gravitating toward individual homes, resale properties, and under-construction projects. Resale properties are highly sought after because they offer a nice living space without the hassle or expense of interior design. Homes that are still under construction are preferred because it is expected that after the project is finished, their costs will rise significantly.  

Changes in Investment 

Commercial real estate has historically been favored for investment because of its higher returns and lower maintenance requirements. On the other hand, a significant increase in residential properties’ rental yield during the past two years, combined with their affordability, has shifted the odds in their favor. There is a general expectation that residential properties will capitalize more quickly than their commercial counterparts due to the quick price rise. 

Policies and Government Initiatives

India continues to deliver on its promise of affordable housing through successful government initiatives and programs. Since real estate accounts for more than 50% of household savings in India, these actions have a major impact on the industry. The Reserve Bank of India’s (RBI) decision to maintain its policy rate at this level is helping to support the rapid expansion of the housing sector. If this stability continues, there will likely be an even greater demand for housing. 

Technology Use 

The real estate market is rapidly transforming thanks to technology, making it easier for people to access and invest in properties. Property viewing through virtual tours and buying/selling a house at the click of a button will alter the face of house hunting. People can search for affordable homes outside of their proximity through the use of metro-based filters on Proptech platforms, thus reducing their daily commute time while also being able to access affordable homes. Online channels are gradually becoming a one-stop shop for all real estate services, increasing convenience and efficiency. 

Modern buyers want a home that easily incorporates technology to improve their quality of life, not just any old house. The demand for smart homes is changing the real estate market. Examples include automated lighting and climate control, voice-activated assistants, smart security systems, and elevators with predictive maintenance services. The use of smart home technology has made a significant impact on buyer preferences and purchase decisions by differentiating properties on the market. 

In conclusion, there has been a noticeable uptick in building activity since COVID-19, which has given the real estate market a fresh impetus. Home prices in India will keep rising to provide a stable future for the middle-class population who aspires to a luxurious lifestyle. The market is ready for a recalibration and stability in real estate prices as projects see an uptick and new launches get closer to completion. 2024 is not only a promising year for homeownership, but is also presents a wealth of opportunities due to the convergence of market dynamics, government initiatives, and changing homebuyer preferences. 

Trends and insights are influencing the commercial real estate near the Noida Expressway

Posted on by
Reply

The Noida Expressway is a commercial real estate corridor characterized by its dynamic and rapidly evolving nature. Its strong points include its strategic location, excellent connectivity, and continuous infrastructure development.  

One of the main thoroughfares linking Noida and Greater Noida, the Noida Expressway, has become a popular place to grow commercial real estate. High-street retail and office space are in high demand along this corridor, thus driving significant real estate development in the area. Buyers and investors see it as a one-stop shop for work, play, and entertainment. 

The supply of retail space is expected to increase by 45% from the current 91 million square feet across seven major cities by 2028, supporting developers’ desire to expand their retail footprint. Recent market insights support this data. Delhi-NCR’s retail stock supply is anticipated to increase by 34%. 

The expressway’s advantageous location and first-rate connectivity to other hubs are the key characteristics that make it a popular destination with strong return potential. It connects to the Yamuna Expressway in addition to Noida and Greater Noida, giving direct access to many significant Uttar Pradesh cities. The corridor has changed due to its proximity to the future  Jewar Airport (Noida International Airport), which has made it a hub for office and retail expansion. The upcoming metro expansion in the area has also increased residential and commercial properties. This has boosted local company growth and raised property values, which has improved the socioeconomic development of the region as a whole. 

Parallel to the current Noida Expressway, a new highway is being built thanks to cooperation between the irrigation department, REITS, NHAI, and the Noida Authority. With the construction of the Noida International Airport and the city’s expanding business sector, traffic is likely to rise, which this strategic infrastructure development seeks to handle. The area’s real estate market would benefit even more from this improved connectivity. 

Additionally, a noteworthy trend in this expanding market is the growth of office and retail projects, which can be attributed to the extensive infrastructure development. The growth of small businesses, startups, and established companies has made the expressway a hub for job opportunities. The demand for commercial space in the area has increased as a result. The increased demand for premium office spaces is primarily driven by well-known companies like Tata Consultancy Services (TCS), Axis Bank, and top IT companies that have secured office spaces along the expressway. Astute investors can profit greatly from this trend by investing in these areas. 

Concurrently, end users are seeing mixed-use commercials, high-street projects, and shop-cum offices as the hub of entertainment, leisure, and work all rolled into one, which is driving upshooting of the underlying demand for these projects in the corridor. 

According to recent reports, domestic companies are predicted to account for more than 50% of the demand for offices IN 2024, with GCCs expected to gain even more ground and account for more than 40% of the total need. According to experts, Noida’s commercial real estate has flourished since the construction of the Yamuna and Noida expressways, opening up numerous investment opportunities with the expansion of retail and commercial properties. 

The Noida Expressway offers substantial appreciation potential alongside numerous retail offerings, making it an ideal place to invest in retail. These connected elements solidify the corridor’s standing as one of the best places to find commercial real estate, guaranteeing a sizable influx of customers and excellent returns.

The Noida Expressway is a commercial real estate corridor that is rapidly changing and vibrant due to its strategic location, excellent connectivity, and ongoing infrastructure development. As the area expands, it presents businesses and investors with opportunities never seen before, guaranteeing long-term prosperity and steady growth.  

Real estate hotspots: Among the holy places with rapid development are Ayodhya, Varanasi, and Puri

Posted on by
Reply

According to a Colliers report, 17 high-potential cities, including Ayodhya, Varanasi, Puri, Dwarka, Shirdi, Tirupati, and Amritsar, will experience rapid real estate growth in the upcoming years due to government policy and infrastructure development in spiritual towns.

Spiritual tourism is predicted to contribute significantly to the growth of several temple towns in India. According to the report, long-term organized real estate players may be drawn to these spiritual destinations by improved roads, flagship trains, and new airports that provide improved connectivity and infrastructure. This is especially true for the hospitality and retail sectors. 

Real estate consultant Colliers India has identified thirty potentially high-growth cities from 100 cities, where real estate development is anticipated to accelerate over the next five to six years. According to Equitable Growth and Emerging Real Estate Hotspots, 17 of these 30 high-potential cities will soon experience accelerated real estate development across or more asset classes. 

According to the consultant, identifying high-impact locations for spiritual tourism required analyzing several factors, such as authorized allotments under different government programs, yearly visitor traffic at major pilgrimage sites, future real estate developer plans, and land price growth. 

The distribution of these 17 high-impact emerging real estate hotspots across the nation’s Northern, Southern, Western, Eastern, and Central regions demonstrates equitable growth. The consultant’s list of cities includes the following in North India: Amritsar, Ayodhya, Jaipur, Kanpur, Lucknow, and Varanasi; Patna and Puri in East India; Dwarka, Nagpur, Shirdi, and Surat in West India; Coimbatore, Kochi, Tirupati, and Visakhapatnam in South India; and Indore in Central India. 

In terms of growth spurred by spiritual tourism, Amritsar, Ayodhya, Dwarka, Puri, Shirdi, Tirupati, and Varanasi came out as cities to watch for, according to the consultant. 

In addition to its eight megacities, India is predicted to have almost 100 cities with a population of one million or more by 2050. As per the report, significant factors such as infrastructure development, digitization, tourism, and office landscape changes will propel the next wave of urban growth in these locations. 

“Affordable real estate, skilled labor, better infrastructure, and government initiatives are propelling smaller towns to become dynamic contributors to India’s economy. The real estate industry is expected to grow to $ 1 trillion by 2023 and possibly $5 trillion by 2050, accounting for 14-16% of the GDP. 

According to him, there will also be a lot of activity in these new real estate hotspots for alternative asset classes like data centers, senior housing, and second homes.  

Companies use the hub-and-spoke model more frequently due to the growing popularity of hybrid working, setting up satellite offices in smaller towns. Colliers identified the high-impact locations by conducting a thorough analysis that considered several factors, such as the start-up ecosystem and current state of technology, the availability of skilled labor planned and current infrastructure upgrades, and the locations’ closeness to established office markets. 

Among other places, Coimbatore, Indore, and Kochi were identified as having a lot of potential as satellite office markets. 

The office and residential markets in smaller cities are about to undergo an enormous shift as tech giants and creative start-ups take advantage of the highly qualified workforce that emerges in these emerging hubs. Companies and employees benefit from office rental arbitrage, which is usually 20-30% cheaper than the housing market in these areas, according to Vimal Nadar, senior director and head of research at Colliers India.

Leading real estate developers are expected to become interested in these markets due to the rise in demand, which will bring a flood of high-quality supply. He continued, “Moreover, the emergence of flexible spaces in these hubs will effectively close the gap between supply and demand for premium office spaces, promoting a new era of growth and opportunity.” 

Mumbai real estate: Will the city’s rental growth slow down as remodeled apartments go on the market?

Posted on by
Reply

Rent for a three-bedroom apartment in a posh building in Mumbai’s Andheri district was Rs 77,000 monthly in 2021; however, as the city’s historic building rehabilitation project gained momentum, the monthly rent increased to Rs 1.14 lakh in 2023. The city now has more redeveloped homes accessible, so monthly rents are approximately Rs 1.18 lakh. 

The number of redevelopment projects in Mumbai has increased, adding to the city’s rental growth in recent years. The redevelopment of several old buildings needed short-term rentals, but finding them in the same location was hard because there was not much of it. Real estate brokers and consultants claim that in 2024, this growth appears to have slowed down. 

“After growing by nearly 50-60% in the last two years between 2021-2023 – rental growth across premium gated societies in Mumbai has cooled down to 5-9% in 2024,” data shared by Zapkey.com research indicates. 

“An increase in society redevelopment was the primary driver of Mumbai’s massive rental growth in 2021-2023. In these societies, property owners were forced to rent short-term housing. The market’s mismatch between supply and demand caused rents to soar due to a rise in demand for rental properties. Demand was higher for premium gated societies,” said Sandeep Reddy, co-founder of Zapkey.com. 

Given that the number of new redevelopment projects has slowed down and more new projects are being completed, which has increased the supply of upscale gated communities, Reddy continued, that the growth in rental income in 2024 is expected to be benign and in line with inflation. 

The impact on western suburbs’ rents 

The slowdown in rental growth has affected neighborhoods like Borivali, Malad, Goregaon, and Kandivali. In 2021 and 2023, the monthly rent for a 2BHK apartment in a posh building in Borivali was Rs 39,000 and Rs 58,000, respectively. According to research data shared by Zapkey.com, 2 BHK apartments in the same building are available for rent in 2024 for Rs 65,000. 

In 2021, a 3 BHK apartment in Malad East, close to the Metro station and the Western Express Highway, was for rent at Rs 55,000. The monthly rental fee rose to Rs 85,000 in 2023 and Rs 87,000 in 2024. 

Similarly, a large number of buildings in the Matunga neighborhood of Central Mumbai were slated for renovation in 2021, Due to these approaching or having already offered possession, the market’s supply has expanded. 

“It all began in 2021 with a 50% reduction in premiums. There were more redevelopment projects as a result of this. A mismatch between supply and demand caused rentals to skyrocket as a result. In 2021, there was a greater demand and a restricted supply for rental apartments. 

However, in 2024, the buildings which began being renovated in 2021 are now being turned over piecemeal. Monthly rents have become more reasonable due to the increase in the supply of new housing, according to Harshul Salva, managing partner of M Realty, which operates in the Matunga neighborhood of Central Mumbai. 

The demand for rental housing in western suburbs in 2024 differs from that of 2021, 2022, or 2023. According to Dhiren Doshi, a property consultant based in Mumbai’s Borivali, older buildings that underwent renovation three years ago have now approached possession in neighborhoods like Shimpoli in Borivali West, close to Milap Talkies, and SV Road in Kandivali West. 

As a result, people in the neighborhoods have begun to serve notices to the owners of the rented apartments, asking them to leave. Due to the correction of the demand ratio, this is causing an excess supply to enter the market where demand is different from before. As a result, prices are gradually stabilizing and in certain cases, even declining Doshi continued. 

Why has the Mumbai real estate market seen an increase in redevelopment activity? 

Mumbai has over ten thousand crumbling, ancient buildings. The Maharashtra government announced in 2021 that various premiums paid by developers to the authorities would be waived in full, which provided impetus for the redevelopment of these historic buildings. 

However, developers willing to pay the remaining 50% of the premium upfront could only participate in this program. 

How do you define premium? 

The term “premium” describes the various fees the approving authority imposes. These comprise, among other things, the fungible premium, the premium paid for the floor space index (FSI), the open space deficiency premium paid for more land covered for construction, and the premium for lobbies, lift wells, and staircases. 

Developers in the Mumbai market pay the authorities more than 20 different kinds of premiums. Sectoral estimates place the amount developers pay for premiums at between thirty and thirty-five percent of the project cost.