Tag Archives: Real estate of India

The real estate fund of Motilal Oswal contributes. First close of Rs 1,250 crore.

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Across India’s top 8 cities, IREF VI will strategically concentrate on early-stage investments in mid-income/affordable residential projects. 

The first close of the sixth real estate fund, India Realty Excellence Fund VI (IREF VI), was announced by Motilal Oswal Alternates (MO Alts). Launched with an aim corpus of approximately Rs 2,000 crore, the fund has committed Rs 1,250 crore after its first close. 

MO Alts has made capital investments in the real estate sector through five real estate funds. The company oversees additional stand-alone and in-house real estate investments. As an experienced real estate manager, MO Alts has funded approximately Rs 7,500 crore across 50 Indian developers and completed more than 150 investments. In addition, they have profited from over 20% of their pre-approval wagers. 

The early-stage investments in mid-income/ affordable residential projects in India’s top 8 cities—Mumbai, Delhi-NCR, Pune, Bangalore, Chennai, Hyderabad, Kolkata, and Ahmedabad—will be the primary strategic focus of IREF VI.   

High net-worth individuals, Indian non-residents, family offices, and corporations have raised this fund. The fund is set up as an alternative investment fund (AIF Category II). MO Alts is the name of Motilal Oswal Financial Services Limited’s alternative investment platform. 

In the growth stages of real estate and private equity, MO Alts manages assets worth over $2 billion in aggregate. 

“This marks the largest and fastest first close for our real estate funds to date,” stated  Vishal Tulsyan, MD & CEO, MO Alts. This successful fundraising endeavor amid a rising stock market shows our investors are in our abilities. We are very optimistic about the real estate market and believe it will experience strong growth shortly. We are committed to strengthening our position as the leading capital provider for the real estate sector by taking advantage of as many opportunities as we can in the years to come.” 

“The Indian real estate market has exhibited remarkable resilience and growth in recent years,” stated MO Alts co-head (real estate) Saurabh Rathi. The demand for residential real estate has been exceptionally high, and the office market has exhibited robust absorption as it approaches the pre-pandemic peaks. The need for early-stage capital is more apparent than ever, with sectoral indicators indicating sustained momentum. We are committed to meeting this need by utilizing our solid risk management framework, conservative underwriting procedures, and proven track record.” 

Co-head of MO Alts’ real estate department, Anand Lakhotia, stated, “We are incredibly appreciative of our investors’ continued faith in our investment knowledge, especially those who have previously invested in our funds. We are in an excellent position to take advantage of new opportunities because of the tightening restrictions on banks and NBFCs regarding capital utilization and the positive outlook for the real estate market. Our robust pipeline of investment opportunities in major cities being evaluated at various stages and offering competitive risk-adjusted yields makes the deal flow look extremely promising.” 

Five trends are influencing the residential real estate market in India.

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The rapid expansion of the middle class in India is mainly to blame for the significant changes occurring in the Indian real estate market. Development professionals, investors, and potential end users are all very interested in this revolutionary shift, characterized by a sharp increase in population and economic growth. Urbanization, rising incomes, and easier access to education all contribute to this phenomenal growth. 

The Indian residential market is a leading indicator of changing regulations, economic vitality, and societal aspirations due to its novel opportunities and trends. The value of India’s residential real estate market reached an all-time high of Rs.3.47 lakh crores in FY23, representing a strong 48% annual growth. The sales number also showed an upward growth trajectory, increasing by 36% to 379,095 units sold. 

The nation is changing swiftly, and every part of the industry beats in time. The following are the main developments influencing India’s residential real estate market:

  1. Rise of Low-Density Housing: Plotted developments, townhouses, and villas are among the low-density housing options currently in high demand. Low-density housing uses less energy, such as electricity, air, and water, and is similar to small neighborhoods or single-family homes. Long-term residents of this kind of housing are encouraged to lead sustainable lives. Reducing the need for additional infrastructure in neighborhoods by forming them with fewer houses and preserving the land largely intact can help save resources. Buyers are becoming more aware of the benefits of low-density housing. Low-density housing is becoming more popular for people to escape congested urban areas and prioritize privacy, space, and harmony with nature. Developers are introducing carefully planned, low-density projects in response to this trend, emphasizing the value of open spaces, lush greenery, and a feeling of exclusivity. This change reflects a rising desire for well-balanced homes that combine contemporary conveniences with the peace of suburban settings. According to India Sothby’s International Realty’s annual Luxury Outlook Survey 2023, roughly one-third of HNIs and UHNIs are willing to spend over Rs 10 crores on real estate. For instance, Landmark Group sold out of its plots in record time at Landmark Avana, a new low-density housing project in Gurugram, particularly to a younger demographic looking for more space and a better standard of living. 
  1. Technological Integration: By improving comfort, security, and convenience, technology integration is completely changing the residential landscape. Ad IoT devices, home automation systems, and AI-powered assistants biome standard features in smart homes set new standards for futuristic living while providing residents with a seamless living experience. India’s smart home market is expected to generate US$6.5 billion in revenue by 2024. Based on research and markets for smart homes, India ranked third globally in 2020. Furthermore, by 2025, there will be 442 million smart homes in India, an increase over the current number of homes, according to Statista’s Digital Market Outlook for 2021. 
  2. Growing Preference for Owning a Home: The start of the COVID-19 pandemic has caused a significant shift in the way that society views home ownership. Purchasing a home is becoming more and more important to people than renting one. People now recognize the benefits of living in their own space with areas set aside for work, study, and leisure. As a result, people are more conscious of the inherent worth of owning a home since it provides a greater sense of stability and security during uncertain times. Like the pre-COVID housing loan levels, Indian banks advanced housing loans totaling approximately 2 trillion Indian rupees in FY22. As more Indians were investing in residential real estate, this suggested that homebuyer confidence was returning. 
  1. Elegant living: The market focuses on pricey, showy real estate. These upscale residential developments draw discriminating buyers looking for an unmatched quality of life with their first-rate amenities. According to a recent India Sotheby’s International Realty study, the number of affluent people planning to buy luxury real estate in the upcoming years has considerably increased. The luxury real estate market has seen substantial disruption due to growing income levels, deeper technological integration, and evolving consumer preferences brought about by shifting demographics. Millennials are becoming interested in luxury real estate as their incomes rise and their urban lifestyles change. Luxurious properties are in high demand due to the possibility of substantial rental income and a high return on investment. The sales of luxury homes in India increased by 130% in the first half of 2023 compared to the last year. Set to open in Dwarka Expressway, Landmark Group’s new residential project promises to be the ideal residential complex with its endless luxury services and state-of-the-art amenities that are best suited for the changing way of life. 
  1. Tier 2 becomes a powerful force: After the pandemic, many people assessed their living situations and looked for sale houses in their hometowns to feel more stable. The consequence has been an increase in the visibility of Tier 2 cities, which are growing hubs for real estate. The discernible increase in investment activity is causing significant changes in these cities’ real estate markets. With a robust housing market supporting them, Tier 2 cities are rapidly expanding their infrastructure and offering various opportunities for residential and commercial use. Furthermore, the government’s support of cities helps the real estate industry expand. Projects to develop townships and settlements may receive up to 100% FDI approval from the government. Tier 2 cities real estate growth has surpassed Tier 1 cities. For example, at the end of the fiscal year 2021-22, Ahmedabad’s residential real estate market size of INR 83,390 crores exceeded the market sizes of some Tier 1 cities, like Chennai and Kolkata, with INR 52,554 crore and INR 38,440 crore, respectively. This expansion was also apparent in Tier 2 cities like Nashik, Jaipur, Vadodara,  and Gandhinagar. 

The government has increased its efforts to provide affordable housing in response to the recent spike in housing demand, and developers have modified their business plans. The term “affordable housing” describes real estate with prices within the reach of low- and middle-class families. The affordable housing project Landmark the Homes in Sector 81 is anticipated to be completed by December 2024, according to the Landmark Group. One can look into government-funded programs created especially for low-income groups or home loan options from private lenders/NBFCs to purchase affordable housing in India. A commitment of Rs 79,000 crore (US$9.64 billion) for the PM Awas Yojna has been announced in the Union Budget 2023-24, a 66% increase over the previous years.  

Government initiatives such as the Rajiv Awas Yojna and Pradhan Mantri Awas Yojana have encouraged developers to take on projects to offer affordable housing, thereby promoting accessibility and inclusivity in the real estate market. Meeting the demand for 40 million urban housing units is necessary, given that the population is growing at an average annual rate of 2.1% and that a large portion of our population has low purchasing power.

 India’s growing urban population is driving up demand for homes, changing the country’s skylines and city spaces. 

Real estate developers are purchasing more land

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Due to the overwhelming demand for homes, real estate developers have accelerated their plans to acquire land. A pattern discovered in 2023 continues this year, with builders going on a land-buying binge, particularly in major cities. However, why are land deals skyrocketing, and which acquisitions are grabbing the news in 2024? Propertywala finds out. 

Industry reports indicate that as real estate tycoons continue their widespread land acquisition binge, real estate will rise by roughly 10-15 percent, reaching nearly 3,00,000 units in 2024. With an emphasis on metropolitan areas, developers have been looking for underserved local markets to cash in on the rising demand for homes. Land deals in well-known Indian cities have significantly increased due to this. The subsequent piece delineates the land-acquisition patterns of builders for the years 2023 and 2024 thus far, in addition to the elements propelling the rapidly increasing demand for housing. 

Large-scale land grabs by real estate developers

Major developers throughout India are seeing an increase in land ownership momentum due to deals involving direct acquisitions and joint ventures. For example, DLF Ltd. recently paid Rs 825 crore to purchase a 29-acre plot in Gurgaon’s Golf Course Extension. The land has 7.5 million square feet of development potential. A 100-crore land deal on Gurgaon’s Golf Course was closed by TREVOC Group concurrently. 

LikewiseJan 25, 2024, Lodha Developer, a company listed as Macrotech, completed the acquisition of a 100% stake in Pune’s Goel Ganga Venture. As for a business-known developer, Gulshan Homz paid Rs 150 crore for a 2.5-acre plot in Sector-129, Noida. In collaboration with regional partners in Uttar Pradesh, Gulshan Homz is also building a residential project in Moradabad. There are plans to build 90 residential units as part of the project. 

Godrej Properties’ recent acquisition of a 4-acre plot of land in Bangalore also helped to start the trend. Godrej anticipates that the project will have a development potential of about Rs 1,000 crore as they look to solidify their position in the Bangalore real estate market. 

Godrej gained attention in the previous fiscal year for its meticulous land acquisitions, adding 18 new land parcels to its list. An approximate revenue potential of Rs 32,000 crore will result from these acquisitions, with a cap of Rs 15,000 crore for 2024. 

Small-time local developers are finding it challenging to acquire land because of the recent development by large developers. Developers, for example, are not happy with the bidding guidelines for a 24-acre land parcel in Bandra, Mumbai, and are criticizing the eligibility and financial requirements. Developers claim that limiting the bidder’s net worth to an astounding Rs 15,000 core will prevent many small developers from participating in the Bandra Reclamation Project. 

Cause of the increase in housing demand 

According to the Confederation of Real Estate Developers’ Associations of India (CREDAI), housing demand needs to reach 93 million by 2036, confirming the longevity of the rising residential sales trend. But given rising living expenses, what might be the motivating factor behind such steadfast demand? 

“Homebuyers’ demand has an increased interest cost environment resulting from elevated inflation, the strong domestic economic fundamentals, and the increasingly aspirational attributes of residential real estate,” says Shishir Baijal, Chairman and Managing Director of Knight Frank India. However, the trend is apparent in the primary residential markets across the country.”  

Significant land purchase initiatives during the previous year  

While land acquisition activity in the first quarter of 2024 got off to a great start, some notable deals occurred in the year prior. Here are a few noteworthy land purchase transactions from 2023: 

  • In Gurgaon, near the Dwarka Expressway, BPTP Developers paid Rs 87 crore for a 5.2-acre land parcel. 
  • Chintels India gave the Sobha Group land parcels close to the Dwarka Expressway for Rs 121.82 crore. 
  • Graphite India sold 1.02 lakh square meters of land to TATA Realty in Bangalore for Rs 986 crore. 
  • Casa Grande paid Rs 56.8 crore to secure a four lakh square foot deal in Hyderabad. 
  • With a land purchase in Gurgaon for Rs 597 crore, Oberoi Realty made its real estate debut in the Delhi NCR area. 
  • Birla Estates purchased a 28-acre plot of land in Sarjapur, Bangalore, for a residential development. 

Trends to watch in land investment 

In light of the current circumstances, industry experts have identified a few prominent investment trends that can help investors and developers make better decisions for the upcoming fiscal years. For example, because large builders are purchasing land parcels for development in and around Tier-1 cities, the focus on these areas is still prevalent. 

However, there is also a ton of investment potential in cities in Tiers 2 and 3. Recent reports claim that builder brands are focusing on the undeveloped markets of Nagpur, Panipat, and Ludhiana. Investor’s first choice is also the Mumbai Metropolitan Region (MMR). Due to their lower initial costs and potential for appreciation, buyers are eager to purchase new properties. 

Developers intend to seize the opportunity while it is still favorable, acknowledging that the current surge in housing demand is here to stay. Industry insiders predict that land acquisition will continue to be popular in 2024, with Tier-1 cities and developing areas continuing to be the hotspots. 

DLF is one of the real estate companies on the list of the fifteen most valuable companies in India

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DLF, at position 30, is India’s leading real estate developer, followed by Macrotech Developers, at position 58. In third place, at position 105, is Godrej Properties.

Axis Bank’s private banking divisions Burgundy Private and Hurun India have released a list of fifteen real estate firms in India. These companies include DLF, Macrotech, and Godrej Properties. 

With a market capitalization of Rs 15.65 lakh crore, Reliance Industries holds the third year’s top position. In second place, valued at Rs 12.4 lakh core, is Tata Consultancy Services; at  Rs 11.3 lakh crore, is HDFC Bank.  

The qualifying amount for the 2023 Burgundy Private Hurun India 500 is Rs 6,700 crore threshold from the year prior. 

On the list of real estate developers, DLF is at number 30, and Macrotech Developers is 58. According to the list, Godrej Properties comes in third place with a score of 105. 

Oberoi Realty is at position 115, The Phoenix Mills is at position 138, and Prestige Estates Projects is at position 151. The list places Bagman Developers at number 230, Mindspace Business Parks REIT at number 228, and Embassy Office Parks REIT at number 154. 

The list places Brigade Enterprises at number 275, DB Realty at 428, Signature Global at 451, NoBroker at 455, AnantRaj at 462, and Sobha at 500. 

This year has seen some notable changes in the real estate industry. Three new entrants have joined the market, demonstrating the industry. Anas Rahman Junaid, Founder and Chief Researcher of Hurun India, stated, “It is impressive that nine major companies have seen significant wealth growth. With an outstanding 70% lead, DLF closely follows Prestige Estate Projects at 44% and Microtech Developers at 54%. 

“Mumbai and Bengaluru each have six real estate firms, indicating the strength of these markets. Beyond the individual achievements, the sector’s overall growth contributes significantly to India’s GDP, demonstrating the industry’s critical role in the country’s economic structure. The current trend points to bright futures and an exciting time for the real estate industry,” he stated. 

Are you planning to surprise your partner with an apartment on Valentine’s Day?

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Present for wife on Valentine’s Day: If you intend to give your partner an opulent apartment this year, ensure your gift deed is registered. 

A whole new apartment for your sweetie on Valentine’s Day? Although the suggestion might seem a little over the top to some, the gift idea might be perfect for wealthy husbands. However, there are a few things wealthy husbands should be aware of before they get too carried away. 

Is the apartment completed or still under construction?

Choose a finished project over one that is still in progress. You can avoid paying 5% in Goods and Services Tax (GST) if you buy an apartment after the occupation certificate is issued.  

Who is going to have to pay taxes?

The wife is exempt from paying taxes on the property that her husband gifts her. When The wife takes control of the replacement of both the cost and the holding period, However, according to Sonu Iyer, partner of People Advisory Services (tax), EY India, any income from the property, such as rental income, can be combined with the husband’s income. 

Gift deeds, stamp duty, and other things you should know 

Giving your wife a piece of real estate is a way to give your spouse financial stability.

“The thing to be kept in mind while making such a transfer is that it has to be effected by way of a written instrument (gift deed) that has been signed by the husband and attested by at least two witnesses,” says Mona Dewan, managing associate at ZEUS Law Associates. 

In addition to registering the gift deed at the subregistrar’s office, there is an upfront stamp duty and registration fee.

A few states have announced stamp duty reductions. For example, if the property passes to the spouse, Haryana offers a stamp duty exemption, according to her. 

If a husband gives his wife a residential or agricultural property in Maharashtra, there is an applicable stamp duty of Rs 200 (Rupees two hundred only). 

The Uttar Pradesh government recently set a maximum stamp duty of Rs 5000 for stamp duty on gifts of residential or agricultural property between husband and wife. 

In Uttar Pradesh, there was a 7% stamp duty on real estate transfers between blood relatives or family members before the reduction took effect. The stamp duty was either 7% of the property’s value or 7% of the circle rate for such immovable property, whichever was higher. 

However, there is a catch if the property is bought with a gift deed and given as a gift by the recipient before the five-year registration period ends. Accordingly, the reduced stamp duty benefit will not be available if the property received through a gift deed is later by the recipient within five years of the registration date, according to Dewan. 

Nevertheless, she notes that there is no such exemption in Delhi and that stamp duty on a gift deed from a husband to wife is equal to 2% of the property’s circle rate value plus any applicable transfer duty assessed by the Municipal Corporation of Delhi and registration fees.  

How would a wife feel about giving her husband an apartment?

It is important to note that if a wife chooses to give her husband immovable property, she can also receive similar exemptions in Haryana, Maharashtra, and Uttar Pradesh.

It’s important to remember that stamp duty in Delhi is due on a gift deed from a wife to her husband and is equal to 3% of the property’s circle rate value plus any applicable transfer duty and registration fees. 

Recall that the gift deed is final. 

It is vital to be aware that once a husband gives his wife property through a gift deed that was duly executed and registered, the gift is final, enforceable, and cannot be modified. 

According to Dewan, this implies that the done, or wife, becomes the owner of the gifted immovable property and that the donor, or husband, typically lacks the right to revoke or cancel such a gift once it has occurred. 

Vision for 2024: Booming prospects in the Indian real estate sector

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With its diverse news and aspirations, the Indian real estate market is a vibrant tapestry set to grow even more in 2024. There are numerous opportunities for investors, developers, and stakeholders in this ever-changing landscape. To maximize potential benefits and navigate this complex environment, one must be well-versed in the developments, forecasts, and challenges to come. 

Residential: Meeting a range of requirements 

In 2024, the residential sector– the cornerstone of the Indian real estate market— is anticipated to keep growing. The need for affordable housing will increase due to a growing middle class and rapid urbanization, particularly in tier 2 and 3 cities. In response, developers emphasize smaller units, adjustable payment plans, and integrated townships that provide a full range of lifestyle choices. 

Environmental awareness also fuels the trend toward sustainable housing solutions. Green buildings, which are gaining popularity, use eco-friendly materials and energy-saving technologies. These buildings appeal to investors and consumers who want to find a way to reconcile modern living and environmental responsibility. Proptech is one of the key players in the way that technology is further revolutionizing the residential market. Finding and managing properties is becoming more and more convenient thanks to innovations like virtual tours, online booking tools, and AI-powered property management systems. These innovations are also improving the buyer experience and streamlining procedures. 

Commercial: Adjusting to a transforming environment 

The demand landscape for commercial real estate is shifting due to changing consumer behavior and evolving business needs, resulting in a paradigm shift in the market. The emergence of flexible workspaces, which meet the demands of established companies, freelancers, and startups looking for adaptable and affordable solutions, is one of the most noteworthy trends. 

Furthermore, the demand for intelligent buildings like features like data centers, automation systems, and high-speed internet connectivity stands by the need for seamless connectivity and advanced technology. It enables companies to meet the increasing demand for technology-driven solutions while operating more profitably. In reaction to the growth of internet shopping, retail solutions while operating more profitably. The retail landscape is evolving due to the surge in online shopping. To draw customers and create a distinctive shopping experience, malls, and retail spaces are introducing dining, entertainment, and leisure options. There is a move away from the mere consumption of products and toward an immersive experience. 

Industrial: Advancing the economy 

In 2024, the industrial real estate market— vital to India’s economic expansion—will undergo several significant changes. The growing e-commerce sector is driving the need for logistics and storage facilities. In response, developers are constructing contemporary warehouses with effective floor plans, cutting-edge technological integration, and proximity to transit hubs to guarantee quicker and more effective deliveries. 

Government programs like “Make in India,” attracting foreign investments and supporting the manufacturing sector, contribute to the increasing need for industrial land and production facilities. The influx of capital will help strengthen India’s claim to prominence in the global manufacturing landscape. 

Technological developments encourage automation and robotics in the industrial sector, causing a rise in demand for specialized facilities capable of handling cutting-edge technologies. Higher output and efficiency will solidify India’s position as a vital participant in the global manufacturing industry. 

Opportunities and challenges: striking a balance 

Despite the positive trends, the Indian real estate market will struggle in 2024. Complex regulations and bureaucratic processes may impede market expansion and investment activity. Simplifying bureaucratic procedures and streamlining regulatory processes are imperative in creating a setting that’s better suited for market expansion. Infrastructure deficiencies can restrict market accessibility and growth potential, especially in tier 2 and 3 cities. A more equitable and inclusive growth trajectory and the realization of the full potential of the real estate market will depend on investments in infrastructure and development, particularly in emerging cities. 

Interest rate increases and changes in the world economy can affect investor mood and market liquidity. The preservation of economic stability and the execution of policies that foster investor confidence are imperative to mitigate the effects of exogenous factors and guarantee the ongoing expansion of the Indian real estate market. 

Conclusion: A cooperative strategy 

In 2024, the Indian real estate market offers a vibrant environment with plenty of room for expansion. To realize its full potential and support the nation’s economic development, the Indian real estate market has to embrace technological innovations, adjust to changing demands, and tackle pressing issues. 

To influence the future of the Indian real estate market, stakeholders, investors, developers, and the government must collaborate. By working together and embracing innovation and adaptability, stakeholders can ensure the market’s ongoing success and realize its full potential to promote economic growth and create a dynamic and sustainable future for the Indian real estate industry. 

How might real estate investors benefit from SEBI’s approval of small and medium-sized REITs?

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SEBI’s decision to encourage investments in Small and Medium REITs (SM REITs). The REITs (Real Estate Investment Trusts) Regulations, 2014, were amended yesterday by the SEBI board. These amendments aim to establish a regulatory framework that will facilitate the establishment of SM REITs, which will have an asset value of at least Rs 50 crore as opposed to the existing REITs’ minimum asset value of Rs 500 crore. The decision received approval at the Securities and Exchange Board of India (SEBI) meeting in Mumbai.

Experts in the industry welcomed Sebi’s decision to regulate fractional ownership of real estate. “We applaud SEBI’s progressive move in regulating the fractional ownership framework with the amendments to the REIT Regulations,” stated Aryaman Vir, CEO of WiseX, “as the pioneers of the Fractional Ownership model and neo-realty investments in India.” 

The Small and Medium Real Estate Investment Trusts (REITs) aim to significantly expand the market so that more retail investors can own a fractional interest in REIT units, according to Madhabi Puri Buch, the Chairperson of the Sevi. She added that the regulator is willing to consider developing more goods of this kind.

The CEO of WiseX praised SEBI for recognizing the expanding trend of fractional ownership platforms and expanding regulatory oversight.

“We think it will guarantee investor protection, standard disclosure procedures, and a strong redressal mechanism in addition to stimulating investor interest in the real estate sector,” he continued.

Vir went on, “In addition, investors looking for more accessible entry points into real estate ownership will have exciting opportunities thanks to the lowered minimum asset value of Rs 50 crore for small and medium REITs. SM REITs’ ability to establish distinct schemes enhances the flexibility and inventiveness of real estate portfolio structuring. We anticipate that these regulatory changes will positively impact the ecosystem of fractional ownership, encouraging greater diversity and inclusivity in real estate investments.” 

The Dubai Real Estate Show honors Indian leaders and the expansion of the industry.

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The JW Marriott Marquis Hotel in Business Bay, Dubai, hosted the 4th Edition of the Indian Real Estate Show (IRES) 2023, which took place over two days on November 25 and 26 and included investments in Khaleej Times & Realty + and powered by VTP Realty. The event included a conference and exhibition showcasing Indian real estate’s profitable investment potential.

Leading Indian real estate developers, including Birla Estates, Balaji Technocity, Hero Realty, VTP Realty, Godrej Properties, Tata Realty, and Provident Housing, were there at the exhibition. 

Majid Al Marri, CEO of the Dubai Land Department’s Real Estate Registration Sector, officially opened the UAE-India Real Estate Show 2023.

The partnership between two prominent media groups in the UAE and India, plus its contribution to the real estate industry of both countries, was highlighted in Michael Jabri-Pickett’s welcome address as Editor-in-Chief of Khaleej Times.

During his keynote address, Satish Kumar Sivan, the Indian Consul General to Dubai and the Northern Emirates, stressed the importance of the government of the United Arab Emirates and India working together to promote economic opportunities and support each other. “Real estate is one of the main drivers of the economics of India and the United Arab Emirates, and events like these can encourage cooperation between policymakers and decision-makers while increasing public awareness,” he said. 

India Club, UAE Taxation Society, Gulf Maharashtra Association, Institute of Chartered Accounts-Dubai, All Kerala Colleges Alumni Forum, Jain International Trade Organization (JITO), IBPC-Business Group, and Rajasthani Business all supported the event. The community members gave the organization the most traction.

The event’s main draw was the awards given to notable Indian real estate leaders. Michael Jabri-Pickett, Editor-in-Chief of Khaleej Times; Majid Al Marri, CEO of the Real Estate Registration Sector, Dubai Land Department; and Satish Kumar Sivan, Consul General of India to Dubai and the Northern Emirates, presented the awards. 

The following recipients of the Iconic Leaders of Indian Realty Awards from IRES 2023:

Sankey Prasad- Global Indian Icon of the Year

Sachin Bhandari- Visionary Business Leader of the Year 

Pradeep Agarwal- Affordable Housing Leader of the Year 

Dharmesh Shah- Innovative Real-estate Entrepreneur of the Year

Discussions on knowledge-sharing took place during the concurrent conference at IRES. 

The speakers, Sachin Bhandari, ED and CEO of VTP Realty, and Shajai Jacob, MD& Country Head- Apna Complex & Anacity, Anarock Group, discussed the prospects and potential of real estate investments with Sapna Srivastava, Editor Realty. They also discussed the advantages of different real estate classes in India for foreign buyers and investors, the issues that need addressing for post-sales services to NRIs, and the various factors to consider when investing in India.  

India’s revolution in real estate: The rise of opulent living

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The rise of luxury living has been the primary driver of a significant evolution in India’s real estate market. This shift reflects evolving consumer preferences, rising disposable incomes, and a growing desire for high-end lifestyles. In India, modern luxury developments prioritize environmental sustainability while providing wellness amenities such as organic gardens, yoga centers, and spas. Furthermore, elite localities are now the go-to for luxury home seekers. Gurgaon, for example, has become a popular destination for buyers looking to purchase luxury real estate because of its first-rate amenities, excellent standard of living, and proximity to business centers, upscale retail centers, and premier entertainment venues.

Luxurious living: A fusion of contemporary conveniences and sustainable methods

In today’s Indian real estate market, luxurious living is defined by more than just sumptuous furnishings and first-rate facilities. It includes an increasing focus on implementing sustainable practices such as solar energy, sewage treatment plants, rainwater harvesting systems, and intelligent lighting systems. These methods improve inhabitants’ quality of life and modern conveniences while improving the environment. This evolution reflects people’s increasing awareness of energy conservation, the environment, and their desire for high-quality living.

Aside from this, modern technology integration is an attribute that distinguishes high-end residences with features like sophisticated climate control and intelligent security systems. These homes are automation systems-equipped smart homes, which are becoming the standard. 

Examining the trends in the luxury real estate market in more detail

India’s luxury home market is expanding in a promising way. One clear trend illustrating the increasing importance of luxury living is the increased demand for lavish homes.

Growing affluence and urbanization

 The country’s expanding middle and upper classes are the primary drivers of the demand for luxury real estate. As a result of rising incomes and urbanization, an elite class of buyers seeking homes with numerous features has developed. This shift in population has increased demand for roomy, luxurious apartments and villas with first-rate features and interior designs. 

Shifting needs of the buyer

Developers are complying with the demand of luxury home buyers for customized offerings. Custom features that meet the needs of specific clients are becoming a hallmark of the luxury market. With a growing preference for features like personal pools, gyms, spas, and smart home automation, modern buyers seek a holistic lifestyle experience. 

Attention to NRIs and global investments 

The premium housing market has benefited from foreign investment and Non-Resident Indian (NRI) interests. Premier residential zones have developed due to these investments, sometimes with the collaboration of global real estate titans.

Due to upscale infrastructure developments, non-resident Indians (NRIs) are now selecting luxury homes in India to achieve substantial returns and luxurious stays during trips home.

Upgrades to the infrastructure and connectivity 

Modern transportation systems, such as highways, international airports, and metros, have made formerly inaccessible places more appealing. With these new locations, luxury developers now have the opportunity to create distinctive communities.

Enhanced real estate laws 

The RERA law shows real estate transparency has helped restore buyer confidence. Because it fosters market trust, luxury buyers especially appreciate this transparent approach. 

A steady economy and favorable investment opportunities

India views luxury real estate as a reliable investment prospect for homes. Properties of this kind exhibit resilience to fluctuations in the market, guaranteeing future growth prospects. There is a greater demand for luxury real estate due to the stable Indian economy and this investment opportunity. 

Conclusion

India’s luxury lifestyle trend points to a promising future. International developers and investors are increasingly interested in India’s luxury real estate market. The trend will continue even more as foreign luxury brands enter the market. Homebuyers will flock to luxury living as the Indian real estate market develops. The confluence of urbanization, economic progress, and changing consumer demands guarantees that the luxury real estate market offers buyers, developers, and investors. 

A fresh approach to owning expensive assets: India’s fractional ownership model

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The post-pandemic surge in mobility and leisure travel has led to an increasing mainstreaming of India’s fractional ownership. Furthermore, although economies like the US, UK, and China—all of which have sizable populations of the world’s wealthy- have seen a sizable market for fractional ownership, the Indian market was small until recently. That, however, is changing fast.

Fractional possession enables people to invest in pricey assets like real estate, private planes, yachts, etc. Splitting their ownership costs into more affordable shares has caused a shift in the domestic luxury market in recent years. Another name for it is co-ownership, which enables several investors to profit from increases in an asset’s market value and rental income.

Through platforms for fractional ownership, a substantial amount of investments made in this model are finding their way into the residential and commercial real estate markets. Through these business ventures, high-net-worth investors can access assets typically owned by more affluent peers. The hassle-free model helps owners overcome the drawbacks of sole ownership, which is hampered by costly outlays, lack of transparency, and management issues. Additionally, professionally managed finances, upkeep, and legal matters are typical in fractionally owned properties. These benefits, which give owners a hand-off investing experience, are further propelling the trend.

According to the co-founder and CEO of your fractional ownership company, Sravan Gupta, this is the personalized experience each owner receives upon check-in. The company recommends owners write down their requirements before check-in to provide a seamless experience. Many options are available, ranging from how many cans of chilled beer to have on hand to which air freshener to use to greet visitors. In addition, offerings like specially trained personnel and on-demand chefs have enhanced the model’s appeal. The market for fractional ownership properties in India grew by 65%, from $ 5.4 billion in 2020 to $8.9 billion in 2025, at an annualized rate of 10.5%, according to data from Knight Frank.

According to Vimal Nadar, Senior Director and Head of Research at Colliers India, “the trend has been influenced by many factors, including the affordability of premium properties becoming less accessible, shifting investment and lifestyle preferences, and the proliferation of start-ups and investment platforms. “Underlying assets are farms, vacation homes, and commercial real estate, but the second-home segment has the most activity. Furthermore, more and more investors are purchasing second homes in well-known tourist locations like Alibag, Lonavala, Goa, Kodagu, Rishikesh, and Shimla.

Although the market is expanding quickly, according to Amit Goyal, MD of Sotheby’s International Realty in India, it has yet to reach its full potential. “Currently, properties valued between 10-20 crore are being converted into vacation homes. The majority of co-owners are six to ten people. That is where the Indian market is more concentrated, he claims. For example, Yours deals in properties valued at 5-20 crore.

These belong to eight equal shares residing in places like Goa, Alibaug, and Nilgiris. For every property, the co-owners own shares in a purpose vehicle (SPV) set up by the platform. Research from around the world supports this as well; according to our calculations, eight is the ideal number to divide up the ownership of a second residence. It grants each shareholder about 45 days of ownership annually,” adds Gupta.

One company that offers fractional ownership of premium commercial real estate is Strata, which operates in Bengaluru. According to Sudarshan Lodha, co-founder and CEO of the company, professionals, including lawyers, doctors, and even entrepreneurs, are showing interest in the space. “Getting exposure to the real estate market is their primary goal. Additionally, professionally owned and managed commercial assets are currently a profitable option,” he claims. But problems still exist. The desire for fractional ownership among investors is “still limited due to the lack of a standardized framework, independent valuation, and proper due diligence,” according to Colliers’ Nadar. In response to these worries, the Indian market regulator Sebi has suggested that fractional ownership platforms fall under its purview. According to Nadar, HNI’s involvement in the model will raise the regulatory framework’s promotion of supply-side maturity and consolidation.

Beyond real estate, the co-owners are keen on yachts and private planes. The market for these, however, is still nascent, says Sotheby’s Goyal. One of the main disadvantages, he claims, is that Indian cities are not suitable for housing and hosting yachts. “For this reason, it is uncommon to find an Indian-owned yacht parked in India. One of the few companies that provides luxury yacht fractional ownership is Champion Yacht Club, situated in Bengaluru. A fractional owner can spend 1.25 – 24 crore per share annually for six weeks on their yacht. In the meantime, the market for fractional ownership of private aircraft is broader and is growing due to the rise in HNIs in the nation. In addition to offering a premium experience, private jets, unlike yachts, reduce the time spent traveling, even for business rather than just leisure travel. Experts claim that this works in the jets’ favor.

Luxury as we know it is undoubtedly changing, whether with private aircraft, yachts, or second homes at sought-after vacation spots; fractional ownership is also quickly gaining popularity.  

Investment in Real Estate in India

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A wise investment can transform our lives and give us the assets we require to realize our aspirations. Today, most of us have various investments in our investment portfolios, including stocks, gold, bonds, government programs, etc. However, real estate has been one of the most overlooked and underrated investments in recent years. Given the enormous economic growth in most Indian cities, the average income has increased, giving us more incentives to invest in the future. Real estate may be your ideal choice if you want to invest. 

The importance of real estate 

Over the years, kingdoms have fought over land, using every means possible to win that priceless possession. The demand for land has endured despite the lack of kingdoms, with everyone vying for a piece of the pie. Prime real estate can be a wise choice to invest in. It offers far above traditional investment options because its demand and value never decline. Everyone aspires to own a home because it can lead to financial success and potential fulfillment. Due to the lack of available land in cities nationwide, investing in even a tiny dwelling can yield benefits, such as rental income or the ability to resell it for a profit. 

Factors to Take into Account Before Investing in Real Estate

An investor with no prior real estate experience could become seduced by the promise of profits and make a loss on a piece of the property. Before parting with one’s hard-earned money for real estate investment, a novice should consider the following factors. 

  • Keep Calm- Most legitimate property transactions take a few days to complete, making buying a property time-consuming. Although many real estate companies promise to finish paperwork within a day, patience can help you get a good deal. Jumping the gun may result in you paying more for the property or buying one that exceeds your expectations. Additionally, selling can delay projects, testing your patience if your investment does not yield any returns for a while. 
  • Research the Property: In today’s market, it’s vital to research before leaving to search for a property. Choosing the right real estate can be challenging with so many projects in the works, as sellers are frequently known for charming potential buyers. The amenities provided, the history of the building company, the materials used, and the surrounding area can all affect the returns on your investment. If you do not investigate thoroughly before making a purchase, you might regret it later and lose money. 
  • Check the Papers: Considering how easily a buyer unfamiliar with the real estate market can fall into buying a property with phony papers, the papers of a property are the most essential considerations to make. Purchasing a property with cloudy titles can result in protracted legal disputes or court cases, effectively making the investment worthless. Legal professionals should verify the authenticity of all property papers because failing to do so could result in you buying a property with its title in dispute. People frequently sell homes for less than market value, which should raise a red flag as such homes may be the subject of litigation or have internal problems with the owner. 
  • Verify Market Rates: Most local governments offer a guideline value to assist investors in determining an asset’s rate. By keeping track of neighborhood trends with the help of the market rate, you can avoid paying more for a property than it is worth. You can extrapolate the returns you may expect in the future by studying market rates and figuring out developments. 
  • Talk to your neighbors: While most of us overlook this advice, talking to your neighbors is a good idea. By gaining firsthand knowledge of a community’s conditions, you can identify any issues or regions where a purchase might suffer. Speaking with them can also help you learn about current market prices, the past of the area, and the potential for future growth. One can get a clear picture of the real estate they intend to buy because neighbors are not salespeople trying to sell you the property. 
  • Calculate Your Finances: It is essential to determine your financial situation to ensure that you accomplish specific goals. Although getting a bank loan is straightforward, it is crucial to consider the interest rate and other costs. 
  • Remain Positive: It is critical to maintain optimism while carrying out a real estate transaction because there will inevitably be times when things do not go as planned. When dealing with sellers of homes, keeping your composure can help you gain more advantages. 
  • In the Indian real estate market, negotiating is essential because everyone is looking for a deal that will increase their wealth. Understanding the art of negotiation can help you get additional freebies like parking spots, furniture, etc. 
  • Real estate investments are typically safer than other investments, but that does not mean they are risk-free. Take this into consideration. In India, legal obstacles and property disputes are prevalent, so one should verify that the property they are interested in is free of obstacles and legal issues. 

Given the shifting dynamics of our times, owning a property may be the wisest course of action. A beginner can choose the right course for investing in real estate by considering these guidelines. 

Plan Of A Building Can Be Protected By

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It is disappointing that after you showed your model homes or custom floor plans to potential clients. Unfortunately, this occurs far too frequently in the residential construction sector. However, by being aware of the copyright protections in place and taking extra care and precautions during the initial design stage, builders can better position themselves to deter or even stop customers from copying their plans. You can safeguard yourself from unwanted, time-consuming, and potentially expensive copyright infringement claims by having some knowledge of copyright laws. 

What is Protected? 

Any original expression fixed in a tangible medium stands by copyright law. It means that, in general, copyright law protects anything ORIGINAL that you create by drawing, writing, typing, painting, recording, or creating something digitally as soon as you put it on paper, save it to the “cloud,” or even just draw it on a napkin. It includes any unique floor plans, illustrations, and sketches you create. Creating a floor plan will grant access to a unique one. 

To obtain copyright protection, remember that your plans must be original or distinctive in some way. Instead of using custom plans created by a different party or replica of a unique house you visited, the designs should be your creation. The distinctive, non-functional components of your designs offer copyright protection. The plans you want to protect should include more than just the practical, typical layouts in all “cookie-cutter” home plans. Unless there is significant customization, it is unlikely that the typical split-level starter home will include many items covered with copyright. 

Why is this Crucial?

Possessing copyright gives you the sole authority to build the plans, as well as 

  • (i) copy them, 
  • (ii) create other custom plans based on them
  • (iii) Most importantly, produce copies of them.

You and you alone have control over a copyright if you own it. Without your consent, the customer who toured your custom-built spec home or looked at your floor plan at the home show can’t recreate your plans or build the same house without violating your copyright and causing you harm.

How Can I better Safeguard myself? 

Even with these safeguards at your disposal, you should still think about taking extra measures to alert others to your rights in the plans after their development. 

Write it down. 

The copyright for the plan belongs to whoever produced or sketched it out. If you frequently hire outside architects or engineers to create your drawings and plans, problems may occur. You must confirm in writing before the development of the scheme begins with the third party that all ownership in the designs, including the copyright, is a work for hire and is assigned to you if you have an original idea or plan that an artist, architect, or engineer helps you finalize. 

Like this, you should consider establishing ownership of the plans with your prospective client by signing a Design Agreement. The client may claim ownership of or joint ownership alongside you of the ideas if they are working with you to develop a unique, customized plan. Although you might want to license the design or build homes with features similar to other people, the customer might be allowed to use the blueprint to construct their own home. The rights to the designs have to be made clear in a signed, written agreement with the client to guarantee that you have the copyright. 

Plan Registration

Make it a habit to submit your plans for approval to the US Copyright Office. Online registration is available. Although copyright registration is not required to win a copyright strategy, it does act to inform others of your rights and provide documentation of the time of the creation of the design. Registration is also necessary to file an infringement lawsuit in Federal Court. You also have the chance to obtain additional remedies like statutory damages, court costs, and attorneys’ fees if you register before someone copies your plans. 

Implement Copyright Notices

Customers frequently ask another architect or builder to use the plans you gave them. You can persuade third parties to think twice before copying or using your designs without first being in touch with you by including a copyright notice on all copies of your plans. The copyright notice need only include your name, the date you created the procedures, and the phrase “All Rights Reserved” in the footer of each page. The plans should include a disclaimer that says they can only be copied, duplicated, or used with your prior written consent. 

How Can I Stay Out of Trouble? 

You should take precautions to ensure that you do not infringe on the rights of the other party’s protected works, just as you should protect your plans. 

Ask about the origin of the country’s plans. 

If a client, architect, or other third party gives you any plans, sketches, or drawings and asks you to build something for them or finish the designs for their property, be sure to ask where they got the plans from and if you can, them to confirm in writing that they have the right to use them and that they will hold you harmless if they don’t. If you copy someone’s original third-party plans, even if you are unaware of the source, you might find yourself accountable for copyright infringement. If the designs contain the logo or name of any other architect, or if it appears that such information has disappeared, proceed with caution and conduct further research before using the plans. 

Legal Variations cannot stop infringement. 

Remember that infringement requires that the plans be substantially similar to occur. Therefore, simply altering the size of a room or moving a window or door or two in an original custom plan without the copyright holder’s consent usually will not prevent a court from finding that you infringed on the original work when building or developing designs from an existing set. It is a general misconception within the industry. 

Even though copyright law and your rights are frequently ambiguous subjects, the information above will better prepare you to protect your intellectual property assets and the money you’ve invested in distinctive custom home plans.