Monthly Archives: April 2024

The Migsun Group will invest Rs 426 crore to build a mixed-use property project in Lucknow

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Migsun Group said in a statement that it will spend Rs 426 crore to develop a mixed-use real estate project in Lucknow.  

It is anticipated that the project will include studio apartments and retail spaces. RERA has approved the project as well. 

Mendanta sold the land to the Migsun Group, the statement stated. 

“The company plans to invest Rs 426 crore in constructing a mixed-use project with studio apartments and retail space. RERA approval has also been granted to the project, the company said in a statement. 

Shaheed Path in Lucknow is where you can find  Migsun Lucknow Central. It occupies a space of about 20,239 square meters on land. 

The cost of the land is included in Rs 426 crore, according to the business. 

With a price tag of approximately Rs 49 lakh, each unit caters to both investors and end users. It offers high-street retail, food court, and business suites. According to the statement, the first phase has seen the launch of about 500 units. 

The company will fund the project using client advances and internal accruals. The project would be carried out in stages over 36 months. 

The buyers will receive the first phase in 2027. 

We are excited to introduce Migsun Central. We are working on our second business project in Lucknow. Yash Miglani, Managing Director of Migsun Group, states, “Our first project, Migsun Janpath, has been hugely successful and emerged as the city’s landmark. 

The business has finished 40 projects to date. 

Report: Over 3 crore jobs were created in India’s real estate sector in the last ten years

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The Real Estate Unboxed: The Modi Effect report, written by real estate consultant Anarock and realtor association  NAREDCO, was made public on Monday.  

The employment rate in Indian real estate has increased significantly over the last ten years. A joint report released on Monday by the National Real Estate Development Council (NAREDCO) and real estate consultancy Anarock states that the number of people employed in the real estate industry has increased from 4 crore in 2013 to 7.1 crore. 

According to the report, it is fueled by the nation’s housing sector’s robust growth, which is encouraged by various policies implemented by the Modi administration. 

According to a report titled “Real Estate Unboxed: The Modi Effect” by realtor association NAREDCO and real estate consultant Anarock, the Modi-led government’s reforms have made a major difference in the Indian residential real estate market. It has not only made the industry stronger, but it has also enabled it to reach new heights. 

According to reports, more than 18% of India’s workforce is employed in the real estate industry. 

From 2014 to 2023, 29.32 lakh residential units were supplied and 28.27 lakh units were sold in the seven largest Indian residential markets.

In the meantime, G Hari Babu, National President of NAREDCO, stated in the report that “the government has aimed to reshape the landscape of the real estate sector in India in the past ten years with profound initiatives like the Real Estate Regulation and Development Act (RERA), Goods and Services Tax (GST), and various housing schemes like Pradhan Mantri Awas Yojna (PMAY).”

In addition, Anuj Puri, Chairman of Anarock, stated that the top seven markets have seen growth in housing prices due to a notable demand for housing. It includes  Delhi-NCR, MMR (Mumbai Metropolitan Region), Kolkata, Chennai, Bengaluru, Hyderabad and Pune. 

The study documents a decade of transformation in the real estate sector, driven by several innovative laws and regulations. As per the most recent government data, over 1.21 lakh consumer grievances have been resolved, and approximately 1.23 lakh real estate projects have been registered since the start of RERA. 

But as of December 2023, the SWAMIH Fund had finished building roughly 26,000 homes across the country, and an additional 80,000 were scheduled to be completed in the next three years. 

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

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

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

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

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

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

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

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

Global diversification 

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

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

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

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

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

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

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

Property sales increase 9% year over year in Q12024, while office leasing increases 43%: report

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Knight Frank India claims that the office market was driven by demand from global capacity centers. 

Knight Frank India’s quarterly update on the sector, home sales saw a 9% increase to 86,345 units across the top eight cities in India in the first quarter of 2024, while office leasing saw a 43% rise to 16.2 million square feet. 

India remains a country where many people buy homes, with sales growth slightly outpacing supply growth. The first quarter saw the launch of 93,254 units in total, an increase of 7% from the previous year. 

Demand from global capacity centers (GCCs), which had experienced a sharp upturn in the previous few months following a sluggish start, propelled the office market. 

Residential sales 

Mumbai witnesses the highest growth during the quarter. Knight Frank data shows that 23,743 units were sold during the quarter, representing an increase of 17% over the prior year. Hyderabad and Pune were the next two top-performing markets. 

During the quarter, there was a 1 percent increase in the National Capital Region, the city with the second-greatest volume after Mumbai, and a 2 percent decline in Bengaluru. 

Sales were almost flat with a downward bias overall, and Pune, Bengaluru, Mumbai, and NCR all reported lower sales. 

Except for Kolkata and Mumbai, every other city experienced a rise in the supply of homes. Ahmedabad saw growth of just 1%, while Chennai experienced the largest expansion at  89 percent. 

The inventory shortage occurred at 5.9 quarters to sell, down from 6.7 quarters a year ago due to the increased demand for homes. However, due to new launches, the amount of unsold has increased. At the end of March, it was 480,420 units.  

More residences in the price range of more than Rs 1 crore have been sold. A price increase could be the cause of this. The bulk of home sales in the quarter prior fell between Rs 50 lakh and Rs  1  crore. 

In a year, prices have risen by  2-13 percent, with Hyderabad seeing the biggest increase and Ahmedabad seeing the lowest. There has been a consistent rise, ranging from 1 to 14 percent, and Mumbai and Ahmedabad have not seen any change. 

Office Demand 

According to Shishir Baijal, the chairman and managing director of  Knight Frank India, the country may end 2024 with record leasing volumes. 

Every city except Bengaluru and Kolkata reported strong increases in office lease transactions. The leasing volume increased by 261 percent in Hyderabad and 146 percent in Pune. Bengaluru saw no change, while Kolkata saw a nine percent decline. 

The figures show that there needs to be a sufficient amount of newly constructed office space. The amount of completed office space was only 1.2 million square feet in the quarter under review, and this has essentially stayed the same over the previous quarters. 

Office rental rates are buoyant as a result of the supply and demand imbalance. Bengaluru, Mumbai, and NCR have seen 4-5 percent growth in rents. There also has been a marginal reduction in vacancy level though it is still above  15 percent. 

The report predicts that a reduction in interest rates towards the second half of the year will improve sentiment in the residential and office markets.

MahaRERA directs Godrej, a real estate developer, to reimburse a portion of the amount that the buyer forfeited.

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Experts predict that more real estate developers may encounter situations similar to the one described in the ruling, in which the amounts forfeited due to booking cancellations exceed the legally allowable limit. 

The Maharashtra Real Estate Regulatory Authority (MahaRERA) has ordered Godrej Greenview Housing Private Limited of Godrej Properties to refund the remaining amount to a homebuyer who canceled their booking of an apartment worth Rs 92 lakh at the Godrej Emerald project in Thane, near  Mumbai, and only deduct 2% instead of 5%. 

Ajit Dabhade, the buyer, paid an earnest money of Rs 5 lakh in June 2019 to reserve a flat worth Rs 92.17 lakh. However, Dabhade opted to revoke the reservation because of difficulties getting the promised loan to cover registration and stamp duty. Godrej Properties then lost all of the money that Dabhade had paid. 

MahaRERA ordered the developer to deduct only 2% of the flat’s total consideration value in response to Dabhade’s complaint; this would mean that the homebuyer would receive a refund of the remaining amount. 

Dabhade claimed that his inability to receive the entire loan amount as promised made it difficult for him to move through with the purchase. Dabhade chose to cancel, which led to Godrej Properties’ Forfeiture even though the developer offered an amnesty program in 2021 to lessen the interest that has to be paid. 

In its March 11, 2024 ruling, MahaRERA found the developer’s forfeiture of the entire amount be unlawful, citing provisions under the Real Estate (Regulation and Development) Act, 2016 (RERA).  

Although the booking application form permitted forfeiture of up to 5%, the authority clarified that Godrej Properties’ actions went beyond the bounds of the law. 

Upon canceling the booking, the developer lost all the funds the buyer had paid, which amounted to over 5% of the flat’s total consideration value. According to the terms of the booking application from dated June 22, 2019, the developer has forfeited this amount. But according to the RERA’s provisions, the developer’s forfeiture of this amount– more than 5% of the flat’s total consideration — is not right or appropriate,” the MahaRERA order stated. 

Additionally, MahaRERA upheld its previous August 2022 order, allowing a maximum forfeiture of 2% of homebuyers who decide to cancel. The authority clarified that Godrej Emerald and other registered projects are subjected to its directives retroactively. 

As a result, Godrej Greenview Housing Private Limited has been given 45 days from the order’s receipt to return the money Dabhade paid, less than 2% of the entire flat value. 

Godrej Properties did not respond to an email request for comments. 

According to experts in the field, the RBI’s decision to maintain repo rates will not stop the housing expansion

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In Q1 2024, over 1.30 lakh dwellings were sold in the top seven cities, according to ANAROCK Research. This is the highest sales in the previous ten years. 

The Reserve Bank of India (RBI) has decided to maintain the repo rate at 6.5 percent, which will keep the housing demand strong and the monthly interest rates on home loans unchanged for the time being, according to real estate developers and experts.  

The Monetary Policy Committee (MPC) of the Reserve Bank of India decided on April 5 to maintain the repo rate at its current level for the seventh consecutive meeting. 

Experts in real estate say that by making this change, the housing boom will continue on its current trajectory and prospective homeowners can move forward. 

It was anticipated that the RBI would maintain the repo rates at 6.5 percent, according to Anuj Puri, Chairman of ANAROCK Group. “The choice to preserve the status quo will ensure that the current momentum in residential real estate continues unhindered. Prospective homeowners planning a purchase will move forward with assurance. Despite steadily rising prices, the top 7 cities have seen phenomenal housing sales in recent quarters. Home loan borrowers will benefit from the appropriate and much-needed respite that the RBI’s stable repo rate will offer,” Puri stated. 

The top seven cities saw overall home sales in Q1 2024 of over 1.30 lakh units, the highest quarterly sales in the previous ten years, according to ANAROCK Research. Mumbai, Delhi NCR, Bangalore, Chennai, Hyderabad, Kolkata, and Pune are among the cities. In the past year, there has been a notable increase in average residential prices in these cities; the difference between Q1 2023 and Q1 2024 is between 10 and 32 percent. 

The RBI’s decision to maintain the repo rates at 6.5 percent, according to Manju Yagnik, senior vice president of NAREDCO Maharashtra, expands the favorable circumstances for homebuyers as those who are thinking about buying can still take advantage of low-interest rates on home loans. 

“The housing market is expanding rapidly, and to control the market and boost consumer confidence overall, stable home loan rates are crucial. In light of growing costs, homeowners will greatly benefit from and receive much-needed relief from the RBI’s decision. Yagnik, vice chairperson of Nahar Group, stated that this decision “lays the foundation for the housing sector’s long-term stability and expansion and boosts the optimistic attitude currently permeating the market.” 

Purchasing a home with greater accessibility 

In agreement, Pradeep Aggarwal, the flounder and chairman of the publicly traded real estate company Signature Global (India) Limited, stated, “ A table repo rate gives the average homebuyer credibility and assurance that they can be assured while taking home loans.” This stability has a direct bearing on the real estate market’s growth, which in turn significantly improves India’s GDP and future growth prospects.”

“Managing price stability in the face of inflationary pressures is highlighted by the RBI’s steadfast position.  Future homeowners will benefit from lower borrowing costs, which will make homeownership more accessible, according to Anshuman Magazine, Chairman and CEO of CBRE’s operations in India, Southeast Asia, the Middle East, and Africa. 

What effect does the water crisis in Bengaluru have on real estate?

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According to a Knight Frank report, Bengaluru’s housing sales have decreased by 2% to 13,133 units from 13,390 units a year ago. This decline is attributed to lower sales in the affordable category, despite the IT city’s office demand remaining unchanged at 3.5  million square feet. 

“The first quarter of 2024 saw a nearly  65% to 70% decline in sales in the less than Rs 50 lakh housing segment, which has reduced the overall numbers. Sales in the residential segment between Rs 50 lakh and Rs 1 crore have decreased by 7%. This is mostly because purchasers in this market segment struggle with affordability. At the launch of Knight Frank’s  India Real Estate: Office and Residential Report (January-March 2024), head of research Vivek Rathi stated, “This might just be a short-term anomaly.” 

That said, he added, even though the city’s taps are running dry, sales of homes priced at more than Rs 1 crore have increased by nearly 50%. 

Responding to a question about whether the Bengaluru water crisis had affected the real estate market, Knight Frank chairman and managing director Shishir Baijal said that the issue “has not had too much of an impact on the housing sales trajectory and cannot be attributed to the decline in sales or the market  performance.” Nevertheless, since Bengaluru is a popular city for office space occupants and a significant commercial market, the problem needs to occupants and a significant commercial market, the problem needs to be resolved. It is the nation’s epicenter for commercial leasing  Government agencies must eventually address the water problem,” he continued. 

This is the Bengaluru housing sales data stacked up. 

Bengaluru’s residential market saw 13,133 units sold overall with 13,135 units introduced and an annual growth rate of 9% YoY in Q1 2024. According to the report, during Q1 2024, the average weighted residential price increased by 9% YoY to Rs 6,145 sq ft, the second highest value among the eight Indian cities. 

As many as 993 housing units were sold in the less than Rs 50 lakh category in Q1 2024, representing a 68% decline; 6065 housing units were sold in the Rs 50 lakh to Rs 1 crore category, representing a 7% decline in sales; and 6075 units were sold in the Rs 1 crore plus category, representing a 50% increase, according to the report. 

In Q1 2024, office space transactions in Bengaluru totaled 3.5 million square feet. 

In the first quarter of 2024, Bengaluru recorded office space transactions totaling 3.5 million square feet (mn sq ft). According to the report, the nation’s IT capital drove the expansion of the commercial market and accounted for 22% of 16.2 million square feet of transactions in the top eight Indian cities. 

From 1.3 million square feet in Q1 2023 to 5 million square feet in Q1 2024, office completions in the city increased by  275%. Almost 38.46% of the new office completions in the top eight markets in the nation were in Bengaluru. 

In Q1 2024, Global Capability Centers accounted for 51% of the city’s occupancy and leasing activity. The city’s Global Capability Centers (GCC) oriented transactions grew by 38% YoY, from 1.3 million square feet in Q1 2023 to 1.8 million square feet in Q1 2024.  

According to the report, Flex office spaces comprised 26% of the city’s leasing activity. Businesses with an Indian focus and Third-Party IT Services in second and third, respectively, at 14% and 95% 

How connectedness fuels the expansion of real estate

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When searching for their next project, real estate investors consider several important factors, including pedestrian crossings, proximity to transportation hubs, and accessibility to co-working spaces. 

The old real estate adage, “Location, location, location,” is gradually being replaced by the idea of the local area’s attractiveness in today’s technologically advanced and rapidly evolving world. 

While a project’s location is important, accessibility has been even more important and is now the most important consideration for homes and businesses. One of the most important things real estate investors look for in a property is if it has access to co-working spaces, pedestrian crossings, and transportation hubs nearby. 

The Growth of Telecommuting and Digital Nomadism 

The COVID-19 pandemic and telecommuting contribute to the growing number of digital nomads worldwide. More and more people need reliable internet to avoid losing out on effective options like remote jobs because of problems with internet connectivity. Because remote work is increasingly becoming the norm, having high-speed internet is now essential for residential and business settings, rather than just being a luxury. 

Getting to Transit Hubs 

Regarding location, being close to transportation has always been valued in reality, but it is now even more so. “Accessibility related to airports, train stations, and major highways is highly significant for organizations and people,” notes LC Mittal, Director of Motia Group. It enables easy mobility for tourists and employees heading to the ideal getaway destinations.”

The Revolution of Coworking 

We have changed our business practices as a result of co-working spaces. They draw in a new kind of worker that values community, creativity, and teamwork. “Co-working spaces provide conferring, useful contacts, requisite materials, and stimulation for productivity,” says Anurag Goel Ganga Developments. They therefore benefit greatly from the strong desire to exist. 

Smart City Coordination 

The concept of “smart cities” is becoming more pertinent as urban areas consider integrating technology into their infrastructure. The connections between the technologies enable this integration. According to Sanjoo Bhadana, Managing Director of 4S Developers, smart cities should optimize resources, enhance quality of life, and promote sustainability. Consequently, the seamless operation of all systems depends heavily on connectivity. It helps guarantee energy management, and smart transportation and offers useful services to citizens. 

Opening the Door for New Property Values and Amenities

A real estate’s value and property prices are determined by its connectivity, an appreciated attribute. Properties with strong internet infrastructure, convenient access to transportation hubs, and coworking spacing that facilitate office setups are essential in today’s competitive rental market, according to RPS Group partner Suren Goyal. Today, investors and developers are deeply grateful for this revolution, which goes beyond mobility to create projects where connectivity is a key component. 

Aspects and Sustainability

As such, there is a sustainability component, which lessens the environmental impact, alongside the ease of connectivity. People can choose where and when to work, which reduces their carbon footprint because they can commute less. This trend is seen as more and more work is done remotely and coworking spaces spring up. Furthermore, the efficient connectivity of all the other components that effectively optimize the use of natural resources and encourage environmentally friendly practices also helped to advance the idea of the smart city. Real estate and connectivity will develop so quickly in the future that they will eventually become essential components of the economic equilibrium and our daily lives. 

As technology develops more, integrating connectivity into real estate will become easier. Suren Goyal said, “We have everything planned so that connectivity is planned. Like electricity and water, internet infrastructure will be vital.” 

The adage “Location, location, location” is undoubtedly still relevant, but in the modern world, connectivity is more crucial than ever. The properties that prioritize occupations, accessibility to transit and workspaces, integration with co-working spaces, and flexibility in response to changing needs will be chosen by businesses and individuals who depend on the services offered by these establishments. Embracing connectivity is a crucial first step in maintaining the real estate ecosystem’s rapid development. 

Indian Real Estate Market: Charting the Country’s Course for, Economic Growth

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Over the years, the Indian real estate market has been crucial to the growth of the nation’s economy. The industry includes a wide variety of activities, such as the development of infrastructure, retail and industrial spaces, and residential and commercial real estate. The sector is one of the main forces behind India’s economic growth because of its significant impact on GDP. One of the most recent reports from CREDAI, the body that apexes the builder, shows this contribution. 

According to a new report from the Confederation of Real Estate Developers’ Association (CREDAI), the market size of the real estate sector is predicted to reach $ 1.3 trillion (or 13.8% of GDP) by FY 2034 and $5.17 trillion (or 17.5% of GDP) by FY 2047. The report also forecasts an increase in housing demand of Rs 7 crore by 2030. 

“With the increasing demand for real estate, the sector holds the potential to be the primary economic pillar of this country,” stated Manoj Gaur, President of CREDAI-NCR and CMD of Gaurs Group. Delhi-NCR, one of the nation’s largest real estate hubs and the site of a 3% increase in housing sales, emerged as a major contributor to this development. The growth of the economy as a whole as well as  other macroeconomic indicators, such as employment, government and banking system revenues, and  rising per capita income, have all been strongly impacted by the Indian real estate market.” 

The current value of the real estate market is 24 lakh crore, which emphasizes the split of 80% for residential properties and 20% for commercial properties. The residential segment has aspirational growth for Indian homebuyers amidst housing demands. 

“The residential real estate is the key driver of the construction sector in India,” said  Ankush Kaul, Chief Business Officer of Ambience Group, emphasizing the sector’s contribution. The residential real estate market influences the nation’s economy and stimulates the creation of local infrastructure such as schools, roads, and utilities. Millennium City in Gurgaon is among the best illustrations of how improved infrastructure boosts the local economy by enhancing lifestyles. We envision that the rising housing demands will benefit homebuyers and investors, thus impacting the country’s overall economic growth.” 

“Commercial real estate includes large-scale infrastructure development, including office buildings, malls, hotels, industrial parks, etc., which brings forth jobs in construction, architecture, property management, and many other fields,” stated Sanchit Bhutani Managing Director of Group 108. Cities with high-quality commercial real estate draw domestic and foreign companies, which promotes business growth and increases productivity. Among the many cities, Noida stands out as it is developing into a bustling center offering plenty of commercial spaces. Businesses in the area contribute to the GDP and revenue generation of the nation as they expand and thrive. 

In addition, the CREDAI report states that 61% of the existing supply in the residential segment is priced higher than Rs. 45 lakh. Over 87.4% of housing demand will likely be satisfied by homes priced over Rs 45 lakh by 2030. 

“India’s GDP is growing thanks largely to the residential and commercial real estate sectors, which stimulate economic activity, generate jobs, facilitate wealth creation, and support the country’s financial markets and infrastructure. The estimates provided by CREDAI provide insight into the industry’s role in the nation’s advancement toward becoming Viksit Bharat, according to Trisol RED MD Pawan Sharma. 

“India’s urbanization rate has sustainability increased and is expected to increase to 40% by 2030,” stated Nayan Raheja of Raheja Developers. We anticipate that as urbanization increases, demand  for housing, business and retail space, and better infrastructure will soar.” 

India’s high-end residential and commercial real estate market will draw domestic and foreign investors. Productivity will rise, and company growth will be encouraged as a result. The economy of the nation will grow  as businesses flourish and grow, according to Vidush Arya, Head of Strategy at Orris Group. 

“The residential real estate sector significantly boosts India’s economic growth and catalyzes the infrastructural development in the nearby areas,” stated Amit Modi, Director of County Group. Cities like Noida are becoming more and more popular among investors and homebuyers as a result of the growth in upscale residential properties with contemporary amenities. This improves the residents’ quality of life even more and boosts the local economy.  We anticipate that in the long run, this increased demand for housing will affect the nation’s economic growth. 

Q1 2024 home sales in Bengaluru decline as the market for affordable housing contracts

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However, residential sales worth Rs 1 crore and more in the top 8 cities including Bengaluru— rose 40% from the same quarter last year. 

According to real estate consulting firm Knight Frank, Bengaluru’s housing sales fell to 13,133 units in the first quarter of 2024, a 2 percent decrease from the previous year. 

The affordable housing market saw a steep decline, which was the cause of this decline. “This is primarily because the housing market selling for less than Rs 50 lakh saw a drop in sales in Q1,  nearly 68 percent. 

On the other hand, sales of tickets priced above  Rs 1 crore have increased the most, with the Rs 50 lakh –Rs 1 crore segment growing by 8%,” stated Vivek Rathi, head of research at Knight Frank India, on April 4.  

Housing sales in Bengaluru have declined over the last few quarters, and buyers are reevaluating their plans in light of the ongoing water crisis caused by unplanned development in the tech city. 

Sales of 26,247 units in the first half of 2023 saw a further 2 percent decline in the city. According to earlier reports, the city’s sales increased by  1% overall in 2023 to 54,046 units.  

According to Moneycontrol, investors considering purchasing real estate in the city have put off their purchases because there are dry spots in many areas, particularly those near the IT corridors.  

Similar to the same time frame in 2016, office leasing in the city stayed steady at  3.5 million square feet (MSF) in the first quarter. Officing leasing fell 19 percent to 5.5 million square feet in the second half of  2023. The city saw a 14% decrease in office space transactions overall in 2023. 

According to the Knight Frank India report, the percentage of sales in units priced at Rs 50 lakh and below decreased by 10% to 23,026 units from the same period last year across the top 8 cities. 

The persistent negative effects of the pandemic on this industry, alongside rising prices and higher home loan rates, had suppressed demand. 

In contrast to the identical period in 2017, the Rs 1 crore and above segment saw a notable 40% growth in the first quarter. Sales of homes in the Rs 50 lakh to Rs 1 crore segment fell by 6% as buyers’ attention was diverted to the more expensive range. 

The eight largest cities are Bengaluru, Pune, Ahmedabad, Delhi-NCR, Chennai, Hyderabad, Kolkata, and Hyderabad. 

Mumbai comes in first place. 

Mumbai with 23, 743 units sold in the January-March period, a 17 percent increase over the previous year, had the highest sales and annual growth among the eight cities. 

A 259 percent increase in sales of units costing more than Rs 1 crore was the primary driver of the upsurge. During the quarter, sales increased by 15% in Hyderabad and 14% in Pune. 

In the eight cities, 93,254 residential units were introduced during the quarter, an increase of 7% from the last year. With a record 6,021 launches, Kolkata saw the most, 89 percent more than the previous year. 

With a 13 percent growth to 10,527 units, Mumbai saw the largest growth in the affordable segment. Together, Pune (5,399), Mumbai (5,815), and Bengaluru (6,065) accounted for over 60% of sales in the Rs 50 lakh– Rs 1 crore. 

NBCC sold commercial real estate in South Delhi for Rs. 1,905 crore

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Public sector organizations have acquired roughly 4.38 lakh square feet, or approximately Rs 1,740 crore, of the total area sold. 

The government has sold 4.8 lakh square feet of commercial space in South Delhi for Rs 1,905 crore, according to state-owned construction company NBCC (India) on Wednesday. 

With the sale of 4.8 lakh square feet of commercial space for Rs 1,905 crore in the 25th e-auction for commercial space at the World Trade  Centre (WTC) in Nauroki Nagar, NBCC achieved the highest sale realization. 

The statement is, “The main organizations that bought space during this e-auction are Power Finance Corporation Ltd, Security Printing and Minting Corporation of India Ltd, and Solar Energy Corporation of India Ltd.” 

Of the total area sold, about 4.38 lakh square feet, or about Rs 1,740 crore in sales value, were sold to public sector units (PSUs). 

Two private organizations and three PSU bidders were among the five successful bidders. 

With a sale value of more than Rs 12,100 crore, NBCC has sold over 30 lakh square feet of commercial space through 25 e-auctions as of this writing. 

The WTC is a notable development that has drawn high-profile purchasers from various sectors.  94% of progress in the physical construction is moving quickly toward completion. 

The World Trade  Center is being rebuilt as a commercial hub, replacing 628 outdated and decaying apartments with approximately 34 lakh square feet of built-up commercial space. 

Shops, homes, and faith: places of worship ready for a surge in visitors

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The boom in retail in India has also had an impact on significant religious infrastructure. While visitors to Shirdi can now purchase FabIndia Kurtas, there is a Spykar store in Somnath. There are Zudio and Blackberry stores in Varanasi and Bodh Gaya, respectively. 

Fast-food restaurants such as Domino’s, KFC, and Burger King have not lagged, establishing their presence in remote religious locations such as Puri, Katra, Ajmer, and beyond.

Though the growth of Ayodhya’s retail and hospitality sectors has drawn attention, the nation’s retail chains have grown gradually but steadily. 

This pattern suggests that tourists’ tastes are shifting as more and more visitors look for life-changing experiences outside of customary activities. According to a report by real estate consulting firm CBRE, the growth of urban spiritual tourism is satisfying this demand by drawing tourism to locations recognized for their profound religious and spiritual significance. 

According to the report, the major cities experiencing this retail boom are Madurai, Ajmer, Varanasi, Katra, Somnath, Shirdi, Ayodhya, Puri, Tirupati, Mathura, Dwarka, Bodh Gaya, Guruvayur, and Madurai. 

The products retail brands offer are changing for high-street locations and small clusters. Businesses and local governments are collaborating to develop distinctive retail experiences. This involves incorporating regional customs into the layout and amenities of stores, eateries, and lodging facilities,” claims CBRE. 

To offer visitors a taste of a city beyond spirituality, cities like Amritsar, Varanasi, Madurai, Puri, Guruvayur, and others use their distinctive culinary traditions and Local fashion expertise. 

Infrastructure upgrades enable peaks in spiritual tourism. 

According to a report by Jefferies, despite the current infrastructure bottlenecks, the most visited religious sites in India welcome 10-30 million tourists each year. Such cities are now undergoing an infrastructural upgrade– which will bolster their growth. 

The state and federal governments are constructing airports, public transportation systems, and well-connected roads. It supports the development of lodging establishments such as hotels, guesthouses, and wellness centers to ensure that travelers have a comfortable stay. 

“India’s faith-based economy is expanding rapidly due to the country’s growing spiritual tourism industry. Government programs to enhance connectivity between pilgrimage sites and to boost tourism are speeding up this growth even more. Another important factor is the growth of online retail platforms that make it simple to obtain faith-based goods and services, according to Anshuman Magazine, chairman and CEO of CBRE’s operations in India, South-East Asia, the Middle East, and Africa. 

While Jefferies anticipates 50 million visitors per year on average to Ayodhya, other pilgrimage sites are also expanding quickly. “India offers a vast array of tourism experiences, such as beaches, hill stations, cultural & heritage sites, historic monuments, and more. The largest category of tourism in India is still religious travel, the report continues. 

High-end hospitality brands are also entering these cities, in addition to retail chains. Other chain brands that are opening boutique and experience hotels in these cities include Taj, ITC, Lemon Tree, Novotel, JW Mariott, and Mayfair. 

“Big hotel chains are adjusting to the changing needs of spiritual travelers by providing pristine, sanitary, and kid-friendly lodging at premium rates. According to CBRE, “Branded hotels are starting to emerge as major players, providing a fusion of comfort and traditional hospitality catered for spiritual seekers.”

RERA update: The Uttar Pradesh Real Estate Regulatory Authority issues five directives to protect the interests of purchasers

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UPRERA has instructed real estate brokers to register projects with the same name as those shown on the approved map and to only sell homes based on carpet area. 

Over the past few weeks, the Uttar Pradesh Real Estate Regulatory Authority has issued several directives to safeguard the interests of purchasers. Real estate developers have been told to register their projects under the same name as it appears on the approved map and to only sell housing units based on carpet area. Including neighbors in homebuyers’ complaints is the subject of another order. 

Additionally, it now requires real estate developers to provide documentation proving their ownership of the land they want to develop a real estate project. 

  1. Developers must continue to refer to project brands by the names listed on their maps. 

As a precaution against misunderstandings among potential homeowners, the Uttar Pradesh Real Estate Regulatory Authority (UP RERA) has instructed real estate developers to use the project names indicated on their maps that were approved by local authorities and registered with the RERA to avoid ambiguities.

The promoters must register their projects using the same name that appears on the approved map, and the names of the towers and blocks must match the names on the approved map, according to a statement by UP RERA. 

It’s difficult to ascertain the completion status of the projects as well as to decide the promoter’s application for closure of the project accounts, RERA stated. “As a result of differences between the names of the projects and the towers registered with it and the names in the OC (Occupancy Certificate) or CC (Completion certificate), RERA had to issue these directions.”

Additionally, promoters were using project brand names that differed from those registered with RERA, which cast doubt on the intentions of both current and potential homeowners. Consequently, to rectify these irregularities, RERA has instructed the promoters to advertise the projects under the same name registered with RERA,” it continued.

2 Homebuyers must include names of co-allottees in their complaints

UPRERA requests that homebuyers include the names of co-allottees in their complaints. In a few cases, the complainants had skipped over the co-allottees in their complaints. Consequently, the issues were resolved, and the RERA Benches had only heard from one of the allottees during the hearing.

The co- allottee’s name will now appear as a co-complainant in the complaints that the allottees file. UP RERA said in a statement that the portal offers the necessary functionality.

The method of allocating shops or houses jointly, with co-allottees including husband and wife, father and son, siblings, and other blood relatives, was widespread. In a few cases, a partner or other non-blood relative may also be a co-allottee, and occasionally more than two people. 

3 UPRERA will instruct both aspiring and seasoned real estate brokers. 

According to the state RERA authority, it will offer certificates and training to new and seasoned real estate agents throughout the state. It announced that it will begin offering a unique certification and training program in which they will study the UPRERA regulations and the terms of the RERA Act. It is comparable to the MahaRERA circular from the previous year, which mandated that real estate agents take a course and show up for an exam. 

4 UP RERA requests that promoters give buyers QR codes containing project details. 

UPRERA has also asked real estate developers to offer residents and prospective buyers project registration certificates embedded with QR codes. 

“The project’s name, the promoter’s name, the registration number with month and year details, the project’s duration with start and finish dates, and the promoter addresses are all included in the registration certificate,” the statement read. 

Moreover, the QR code contains vital registration requirements, such as the promoter’s requirement to place 70% of the proceeds realized from the allottees and all funds raised through project finance into a different bank account to be used exclusively for project and construction costs. 

To make the project registration certificate visible to potential and current homeowners from a distance, UP RERA has instructed the promoters to print the QR code-loaded certificate and place it prominently in its office and the project site marketing office. 

“Homebuyers can view project details, such as information about the land, approvals, quarterly progress reports, etc., on the authority’s website by scanning the QR code on the certificate with their smartphones. It continued, “Form-C is being used to issue the project  registration certificate.”  

5.  UP RERA requires developers of housing projects to sell units based on carpet area. 

Real estate developers are required by UPRERA to only sell houses or apartments based on the carpet area. According to a statement from UP RERA, “Super Area” has no justification by the provisions of the RERA Act alongside other laws and contracts.

The RERA Act’s provisions state that purchasing and selling apartments is only permitted based on carpet area, so selling apartments on this basis will be deemed unlawful, the statement reads. 

“The RERA Act does not define or abbreviate the term Super Area. UP RERA Chairman Sanjay Bhoosreddy says, “Allottees must consider the Carpet Area as the actual area of the unit or apartment and pay the promoter according to this area.”

There is an example of a sale agreement between an allottee and a promoter on the UP RERA portal. The carpet area is another basis for this sample sale agreement. Thus, the statement states that selling flats or apartments on the foundation of a “Super Area” is against the RERA Act’s provisions. 

Promoters must thus make sure that only the Carpet Area is for unit sales. Legal action could result from breaking the clause, the UP RERA stated.

A few weeks earlier, the pan-Indian Association of Homebuyers, Forum for People’s Collective Efforts (FPCE), suggested that the housing ministry create a department to supervise all state real estate regulatory authorities (RERAs). 

Is it possible to sell real estate without co-owner approval?

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Property owners in India have the legal right to sell their possessions. However, before selling jointly owned properties, the law requires the approval of each co-owner. Thus, what happens if the asset goes under without the joint owner’s approval? What is the national legal system regarding the selling of properties held jointly? What are my legal options if the property is already for sale?  

Mr. Satendra Pal Singh and his brother share ownership of a property. He needs the money, so he wants to sell this property. But soon after, selling jointly owned property puts Mr. Singh in a difficult situation. Does his co-owner have to approve it before he can sell it? By answering the question, “Can a property be sold without the consent of the other co-owners?” this article seeks to address the concerns of many joint property owners, including  Mr. Singh. 

Is it possible for someone to sell a joint property? 

If the following two requirements meet the criteria, then an individual can sell a jointly-owned property in India: 

  • Co-owners may sell their respective portions of jointly owned property without the other’s permission if their respective shares of equity in the individual shares are left out. However, selling jointly-owned property requires approval from the co-owner.  
  • Every co-owner must consent to the sale conditions and the distribution of the proceeds. 

Is it possible to sell a family property without the approval of other members? 

Hindu Family Law states that it’s unlawful to market family property without the approval of additional family members. All family members must agree to sell it because everyone works together to acquire it. However, it is crucial to remember that a family-owned property is not always an ancestral one. For at least four generations, great-grandfathers have been the custodians of an ancestral property. 

What separates co-ownership from joint ownership of a property 

The death of a co-owner is the only circumstance that distinguishes co-ownership from joint ownership of property. When a co-owner passes away, their portion of the property passes to the remaining co-owner or owners. 

What can be done legally for a property without the co-owner’s approval? 

If a seller transfers their jointly owned property without the consent of the co-owners, the co-owners may take the following legal actions: 

Bring a civil lawsuit: The resentful co-owner may bring a civil lawsuit to challenge the property sale. The court ordered the other party to stop disposing of the property. 

File a criminal case: The other co-owner may do the same if the other co-owner sells the jointly-owned property for a false sum. 

It varies from case to case regarding the possibility of selling a shared property with or without the co-owner’s approval. Property owners must thus ensure fair and legal property transactions and be aware of their rights and responsibilities. 

Top real estate developers give political parties over Rs 630 crore in electoral bonds

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The largest recipient of donations was the Bharatiya Janata Party, which received over Rs 314 crore; the India National Congress received about Rs 98 crore. More than Rs 90 crore went to BRS, while TMC took home Rs 41 crore. 

According to data released by the Election Commission and compiled by the State Bank of India, the top 25 real estate developers have donated more than Rs 630 crore to political parties in the form of electoral bonds, with the Bharatiya Janata Party (BJP) receiving the largest share of Rs 314 crore. 

The All India Trinamool Congress (TMC) received Rs 41 crore, the Congress received approximately Rs 98 crore, the Shiv Sena received approximately Rs 87 crore, and Bharat Rashtra Samithi (BRS) received over Rs 90 crore. 

With donations from subsidiaries like DLF Commercial Developers Ltd, DLF Luxury Homes Ltd, and DLF Garden City Indore Pvt Ltd, DLF became the largest real estate developer donor to the BJP, giving a total of Rs 180 crore between 2019 and 2023. 

In October 2019 and April-July 2023, respectively, Prestige Group and its subsidiaries gave more than Rs 45 crore to the Bharat Rashtra Samithi, the Indian National Congress, and the Bhartiya Janata Party. 

Other noteworthy donors include K Raheja Corp Private Ltd, based in Mumbai, which gave the BJP, Shiv Sena, and Bharat Rashtra Samithi a total of Rs 21 crore in April 2019 and October 2021. 

In October 2021 and January 2022, Anbee Constructions LLP, connected to Mindspace Business Parks Real Estate Investment Trust, gave over Rs 10 crore to the All India Congress Committee and Bharat Rashtra Samithi.

January-July 2022 and January-November 2023 saw gifts of over Rs 22 crore from commercial real estate developers such as LuLu India and Inorbit Malls to political parties like the BJP, Indian National Congress, and Bharat Rashtra Samithi. 

According to data provided by the State Bank of India (SBI) to the Election Commission of India on March 14, the Bharatiya Janata Party was by far the largest beneficiary of the electoral bonds scheme, receiving Rs 6,061 crore in political donations over the last five years. 

It represents 48% of all electoral bonds that political parties have cashed since the beginning of 2019-20 before its being declared unconstitutional by the Supreme Court earlier this year. 

With Rs 1,610 crore, the Trinamool Congress comes in second, and the Indian National Congress comes in third with Rs 1,422 crore.

Mumbai moves up one spot in the Q4 2023 Prime Global Cities Index, behind Dubai and Manila

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Mumbai’s luxury real estate is seeing an annual price increase of 10%, primarily due to wealthy buyers seeking to upgrade their lifestyle. 

According to Knight Frank’s Prime Global Cities Index, the average annual price of luxury homes increased in Q4 2023 in Mumbai (10%), Delhi-NCR (4.2%), and Bengaluru (2.2%). New Delhi also saw an increase in luxury home prices. 

Mumbai moved up the ranking table five spots to third place from its eighth position in Q4 2022, with the third-highest year-over-year (YoY) growth in prime residential prices in Q4 2023. NCR saw a 4.2% YoY increase, rising from 28th place in Q4 2022 to 16th in Q4 2023. Bengaluru, however, saw a drop in rankings, going from 20th in Q4 2022 to 27th in Q4 2023, despite the city recording a 2.2% YoY increase in residential prices. 

Manila took first place in the Knight Frank Prime Global Cities Index Q4 2023, with an annual price increase of 26.3%. The success of the capital city is due to robust inward and outbound investments. Mumbai is ranked third with 10% YoY growth, and Dubai is ranked second with 15.1% YoY growth in the index. 

A valuation-based index that tracks changes in prime residential prices in 45 cities across the globe is called the Prime Global Cities Index. In local currency, the index tracks nominal prices. 

Throughout the 45 markets, the increase in the global prime residential price index was 3.7% in the year that ended in December 2023. With 82% of cities experiencing annual growth, this is the highest growth rate since Q3 2022. 

“The significant increase in prime prices is a direct result of the spike in demand for this residential market in India’s markets. According to Shishir Baijal, Chairman and Managing Director of Knight Frank India, “This segment should likely see price levels continue to elevate in the near term as homebuyers prioritize lifestyle upgrades more and more, bolstered by the nation’s stable economic outlook and positive market sentiment.” 

According to Liam Bailey, Global Head of Research at Knight Frank, “Sales volumes have decreased by 10% to 20% in most markets over the last 12 months due to the interest rate tightening cycle.” 

As rates increased in 2022, prices began to fall, but as supply became more scarce, prices gradually increased. Rate reductions in the second half of 2024 will give the market even more traction.” 

In FY24, land deals will total 3,000 acres as developers purchase real estate

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Aiming to maintain the launch momentum, real estate developers in India expect land deals to reach 3,000 acres in FY24, up 59% from the previous year. 

Anarock, a property consultant, provided data indicating that homes sold for 2,258 acres in the first nine months of FY24. Anecdotal evidence and exchange filings from listed developers that Businessline tracks suggest that the momentum in land acquisition has continued, with the possibility of another 600-700 acres added this quarter. 

For example, Godrej Properties went on a purchasing binge in the March quarter, spending over Rs 400 crore on over 15 acres in Hyderabad and Rs 506 crore on a 6.5-acre plot of land in Noida. In a joint venture, it will develop a 62-acre township in Bengaluru. Mahindra Lifespace recently purchased a 9.4-acre plot of land in Bengaluru.

The managing director and co-head of Motilal Oswal Alternates, Saurabh Rathi, claims that both listed and unlisted players have been very busy. The availability of land parcels from corporations, the government, and other landowners, in addition to developers, has increased transactions, he said, particularly in the Delhi-National Capital Region and the Mumbai Metropolitan Area. In Gurgaon alone, land deals totaling more than Rs 3,000 crore have concluded in the past two years.  

According to Anarock’s data, the two main metropolitan areas saw the most transactions, with Bengaluru and Hyderabad, two of the real estate hotspots, trailing closely behind. 

From light to heavy assets 

Since the middle of 2022, there has been a shift toward land acquisitions, according to Rathi. As they pursued an asset-light model, developers joined joint development projects in 2019-2021 and the first few months of 2022. While smaller developers faced project delays because of inadequate funding, landowners sought to make money from their real estate holdings. 

Developers are turning to carry out full buyouts or purchase their former development partners, according to Rathi. 

While the new supply was at 4.5 lakh units, an all-time high of 5.3 lakh were sold in 2023. Players in real estate are building up their land banks in anticipation of volumes. The difference in supply and demand has fueled an increase in prices. 

Land availability

More land is now available. To generate revenue, corporations are selling non-core land assets. For example, last year Bombay Dyeing, owned by Nusli Wadia, sold a 22-acre plot of land in the heart of Mumbai for Rs 5,200 crores to a division of Sumitomo Realty. Runwal Developers paid Rs 726 crore to Kansai Nerolac in December for a 4.13-acre plot in Lower Parcel. It had previously received Rs655 crore for the dale of a 24-acre Thane plot to the house of Hiranandani. 

Local state authorities, like the CIDCO in Maharashtra and the Haryana State Industrial and Infrastructure Development Corporation, regularly auction plots for residential and commercial use.  

The extraordinary demand for land, says Rathi, has driven up prices. The price per acre has increased by 50-60% in Pune and MMR over the past two years, while land prices in Hyderabad have doubled. 

Compared to two years ago, when the transaction’s value was projected to be between Rs 25,000 and 30,000 crore, he now places it between Rs 35,000 and 40,000 crore. 

“Korean” and “Japanese” cities in Noida: How the development next to Jewar Airport will benefit real estate

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Both projects have the potential to receive a significant boost from the opening of the Jewar airport in Noida, which lies close to the proposed locations of these cities. 

By increasing demand for residential and commercial properties, the “Japanese” and “Korean” industrial cities in Noida will likely stimulate the real estate market. This development also has the potential to improve overall living standards for locals, strengthen investor confidence, and improve infrastructure. 

According to industry experts, the Yamuna Authority’s decision to designate two areas of Gautam Buddh Nagar district as “Japanese” and “Korean” industrial cities has the dual effect of bolstering bilateral ties between Japan and Korea and elevating Noida’s profile on the International investment scene.  

The rise of these industrial cities could boost the Noida real estate market by attracting foreign investment, encouraging economic growth, and accelerating infrastructure development. The founder of Geetanjali Homestate, Sunil Sisodiya, said, “It represents a promising chapter in Noida’s journey towards becoming a preferred destination for international businesses and investors.”  

According to Vishal Raheja, Founder & MD of InvestoXpert.com, “Noida aims to redefine its landscape, offering a conducive environment for economic growth and cultural exchange by leveraging the expertise and best practices from these dynamic urban centers.”

Both projects will receive a boost from the opening of the Jewar airport in Noida, which lies just 10 kilometers from the locations of these cities. 

For investors and homebuyers, the area’s closeness to the future Jewar airport increases its allure. According to Vishal, more job opportunities and infrastructure development could lead to a spike in property values. 

According to Geetanjali Homestate Founder Sunil Sisodiya, the emergence of such industrial towns could boost the real estate market in Noida by drawing in foreign capital, encouraging economic growth, and quickening the pace of infrastructure developments. This development is a significant step forward in Noida’s efforts to become a sought-after global hub for businesses and investors. 

According to a report from Live Hindustan, companies from Korea and Japan plan to locate their industrial facilities in these cities. The Korean city will be in Sector 4A of the motorway, and the Japanese city will be in Sector 5A. Furthermore, housing for foreign laborers will go up in these cities. 

The top six cities in India saw a 20% increase in housing sales in Q1 2024

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Despite obstacles brought on by rising prices, the Indian real estate market saw a bright start in 2024 with a spike in demand for residential properties. 

The top six Indian cities— Delhi NCR, Mumbai, Bengaluru, Hyderabad, Chennai, and Pune— saw a 20% increase in housing sales from January to March. NoBroker says the total number of housing units sold has surpassed 1,47,000. 

As a result of continuous advancements and investments in the real estate sector, the market will continue to grow, demonstrating its resilience and potential. 

The Indian real estate market did not take off in 2024. Propelled by a surge in demand for residential properties despite challenges posed by rising prices. With several new project launches underway and many more in the works, this momentum will continue in the upcoming months. 

In addition, homebuyers should benefit from the RBI’s recent decision to keep the repo rate at its current level. 

“The average rent increase has been higher than average salary increments across cities that have prompted potential home buyers to take the plunge,” stated Amit Agarwal, CEO and co-founder of NoBroker.com, in response. 

Even though rents might stabilize as more supply gradually enters the market, they will not decrease.” 

This year has gotten off to a fantastic start with increased demand and a compound increase in real estate transactions. The nation’s economy is growing, and this, along with a controlled environment for economic policy, has given buyers more confidence to take the risk. “We anticipate strong sales despite the ongoing increases in real estate prices, which is a sign of the positive sentiment surrounding home buying and the determination of buyers to acquire a physical asset. The comparatively lower interest rates on house loans, which currently range from 8.30% to 11.5% annually, further support this outlook,” he continued. 

Among homebuyers, a new trend that suggests a “K-type” growth trajectory is worth nothing. People who had their eye on properties between Rs 80m lakh and Rs 1 crore are now upgrading their preferences above that amount. Within gated communities, they are selecting larger unit sizes and properties. There has been a downward shift in the housing choices of those initially considering homes between Rs 60 lakh and Rs 80 lakh as they choose more affordable options. This divergence in consumer behavior highlights how different market dynamics affect various population segments, which in turn contributes to the growth patterns’ bifurcation. 

We have even seen some projects get taken up within a day of their launch against an environment of rising demand, which shows how quickly things move in the market. 

In addition, there has been a noticeable increase in the price of completed properties, making buyers more desperate to secure their purchases before prices continue to rise. A noticeable trend adding to this dynamic landscape is that Grade B builders are starting to command prices comparable to those of their Grade A competitors, pointing to a leveling of the playing field regarding pricing dynamics, according to Agarwal. 

There will probably be ongoing pressure on property prices due to the high demand for residential real estate and the hike in input costs, leading to more upward revisions. Also, by increasing affordability, facilitating better loan terms, and creating a more favorable market climate for real estate transactions, India’s reduction in retail inflation may benefit real estate purchasers. 

According to NoBroker’s annual real estate report 2023, investors continue to view real estate as a top investment option. 74% of respondents preferred it over other, riskier options like SIPs, stocks, gold, and bitcoin, which indicates how much people liked it. Bengaluru and Delhi-NCR make up half of the major cities’ combined sales. Compared to 2023, Bengaluru anticipates growing by more than 25% annually. 

India Needs a Highly Matured Real Estate Sector by 2047, Says Housing Minister

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India wants to become a developed country by 2047, and the housing minister has emphasized how vital it is to establish a highly developed and mature real estate sector. To realize this vision, the real estate industry must work together to improve sustainability, efficiency, and transparency. 

The minister’s comments emphasize how vital the real estate industry is as a pillar of urban and economic development. Encouraging economic growth, ensuring social inclusion for all societal segments, and building livable cities depends on a healthy and well-regulated real estate market. 

The professionals in the real estate sector will be essential in promoting innovation, investment, and legislative change as India plots its path to becoming a developed country. The minister’s demand for a highly developed real estate market highlights the necessity of all-encompassing reforms and teamwork to overcome obstacles and realize the market’s full potential. 

The Housing Minister’s emphasis on the importance of a highly developed real estate sector demonstrates the government’s commitment to promoting sustainable urbanization and economic advancement. India hopes to build thriving, inclusive cities that will act as catalysts for future growth and prosperity by giving the real estate industry top priority.  

How will this massive real estate settlement affect the buying and selling of homes?

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Real estate agents’ compensation will now be genuinely negotiable instead of essentially being a standard commission, thanks to a settlement reached last week between the influential National Association of Realtors and a lawsuit. 

Why it matters: In a world where business models are still mainly based on tradition, the deal may allow real competition in a tightly controlled market. 

  • It might reduce broker fees in real estate, much like the internet did for stock trading. 

The result: Since sellers filed the lawsuit as a class action, that should result in lower expenses. The effect on purchasers is more intricate. 

Currently, sellers pay a commission of between 5% and 6% of the sale price of their house. 

  • A commission split is customary between the buyer’s and seller’s agents. 
  • It indicates a conflict of interest because the buyer’s agent represents the seller. 

(Agents, of course, dispute this statement, claiming that upholding their reputations depends on serving buyers well.)

By NAR guidelines, sellers must disclose the buyer agent commission on the Multiple Listing Service, the online platform where real estate brokers list properties for sale. 

  • A particular box exists just for this number. 
  • Buyers’ agents see the number; the buyers do not. 

Putting an agent’s interest in a higher fee ahead of the buyer’s interest in finding a suitable house creates a risk of agents steering clients toward higher-fee deals. 

If the court approves this settlement, that box disappears. Sellers were no longer able to guarantee buyers’ agents a commission. 

  • A box may seem like a little bureaucratic detail, but the ramifications could be enormous. 

Crucial query: How will buyer agents be compensated? A few possibilities: 

  • The buyer’s one-time payment. 
  • The buyer agrees to pay the broker an hourly rate or a portion of the sale price. Perhaps they choose not to use a broker at all. 
  • The real estate sector highlights the chance that a seller could still pay the buyer agent’s commission. However, that would need to come up as a concession later in the deal-making process. Seller may provide a cash credit to cover maintenance or other costs during a transaction. 
  • Monitor the funds: Here, future home sellers stand to gain significantly. When they sell a house, they ought to get a portion of the sale price.
  • TD Cowen mentions online and discount brokerages that offer lower commission rates as another potential winner.
  • Real estate attorney Marty Green, based in Dallas, predicts that there will likely be a cottage industry of raw Realtors.
  • Yes, yet: Things are unclear for first-time purchasers and those on a limited budget.
  • They may have to pay for the real estate agent out of pocket, stealing money from their down payment and other expenses. They will no longer receive a real estate agent for free. And no one is certain if they can roll an agent’s fee into a mortgage. It might necessitate modifying regulations. 
  • Did buyers ever receive a free agent, though? 

In summary, a significant number of agents anticipate a decline in commissions. According to Steve Brobeck, a senior officer of the Consumer Federation of America, it might be as low as 1% -1.5% per agent on each side. 

What comes next: Although the significant changes will not happen, the settlement may take effect as early as July. “A truly competitive marketplace will take a long time to emerge,” states Brobeck, who has spent decades advocating for similar reforms.” “The industry will resist this.”  

Realtors Association approves seismic settlement, eliminating the 6% commission on home purchases or sales

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The customary 6% commission in house purchases is no longer in place. 

The National Association of Realtors announced a settlement with groups of home sellers on Friday, agreeing to end historic antitrust lawsuits by paying $418 million in damages and doing away with commission regulations. 

It’s an important decision that will drastically reduce the price of buying and selling a house.  

A new set of regulations will also take effect, as agreed upon by the NAR, encompassing over a million Realtors. One ban includes agents’ fees in listings on regional multiple listing sites or centralized listing portals. It has come under fire for encouraging brokers to pressure clients into purchasing more expensive properties. Brokers must also be subscribers to multiple listing services. Another new rule will require buyers’ brokers to put their clients into written contracts. 

The deal will end the present home-buying and selling business model, which critics claim has artificially raised house prices because sellers pay their and the buyer’s brokers. 

TD Cowen Insights reports that real estate commissions could drop by up to 25 to 50%. Alternative real estate sales models, such as flat-fee and discount brokerages, that currently exist but have a small market share will have more opportunities. 

With investors fearing that lower agent commission rates would result in less business for real estate platforms, shares of real estate firms Compas and Zillow both fell by more than 13% on Friday. 

Zillow issued a warning last month in a 10-K filing, saying that “it could negatively affect our financial condition and results of operations if agent commissions have a significant impact, which could reduce the marketing budgets of real estate partners or reduce the number of real estate partners participating in the industry.” Shares of brokerage firm Redfin dropped by almost 5%. 

As a result of the news, homebuilders’ stocks increased: Toll Brothers’ shares increased 1.8%, Lennar’s shares increased 2.4%, and PulteGroup’s shares increased 1.1%.  

Brokerage fees for sellers of the $417,000 average price American home are more than $25,000. The buyer bears the additional costs, which drive up the cost of homes in the United States. That charge might decrease by as much as $12,000. It is according to TD Cowen Insights’.

“The benefits the settlement will bring to our industry outweigh the significant cost associated with it,” stated Kevin Sears, President of the NAR.

Among real estate companies that donated more than Rs 1000 crore through electoral bonds, DLF and Chennai Green Woods Private Ltd. were at the top

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Last week, the EC made available SBI’s electoral bonds data. Of the real estate companies that donated more than Rs 1000 crore, DLF and Chennai Green Woods Private Ltd. were at the top. 

Data released by the Election Commission, which also released SBI’s list of entities that purchased electoral bonds for political donations, shows that between 2019 and 2024, over 40 real estate firms gave more than Rs 1000 crore to political parties through these bonds. 

On March 14, the Election Commission made accessible SBI’s electoral bond data in two files: one file contained the names of the bond buyers, and the other contained the names of the political parties that cashed the bonds. 

Several well-known real estate firms, including DLF’s subsidiaries DLF Commercial Developers Ltd, DLF Luxury Homes Ltd, and DLF Garden City Indore Pvt Ltd, contributed Rs 180 core to the electoral bonds. These are in the corresponding years’ books of accounts. There are no more remarks from us,” the company representative stated. 

Chennai Green Woods Private Ltd., a construction company that contributed Rs 70 core, is owned by the Ramky Group. According to the EC’s data, B.G. Shirke Construction Technology Pvt. Ltd., which has “millions of sq. ft of construction encompassing mass housing projects,” contributed more than Rs 80 crore. 

K Raheja Corp made a roughly Rs 20 crore contribution. The business remained silent. 

Real estate companies must obtain over 20 regulatory approvals from local and state bodies before starting construction, which include environmental clearances, zoning regulations, construction permits, and building permits. 

Property transactions were the most common use of cash in 2022, according to a LocalCircles study, based on the value of each transaction. Even though things had gotten better over time, buyers acknowledged that they paid cash for properties they had bought in the preceding seven years, according to the report. 

Benami transactions were once prevalent. In these kinds of transactions, one party transfers or holds property, but a third party pays the consideration to conceal the actual owner’s identity. On November 1, 2016, the Benani Transaction (Prohibition) Amendment Act became operative. The Supreme Court had disapproved of its use retroactively in 2022. 

The Real Estate (Regulations and Development) Act, 2016 (RERA) aims to protect homebuyers’ interests and promote investment in the real estate sector. Real estate projects and agents must register to ensure adherence to project timelines, quality, and fair practices. With the introduction of RERA, homebuyers now have more confidence. 

Other property firms purchasing election bonds 

The Prestige Group has made contributions totaling nearly Rs 45 crore through its businesses, which include Prestige Garden Estates Private Ltd, Prestige Projects  Pvt Ltd, Prestige Habitat Ventures, Prestige Notting Hill Investments, Prestige South City Holdings, Prestige Estates Projects Ltd, and Prestige Management and Services. The company did not respond at all.

The Rustomjee Group made a nearly Rs 5 crore contribution. The business remained silent. The list shows that BKC Properties Pvt. Ltd. and Omkar Realtors Projects Pvt. Ltd. each contributed Rs five crore. 

Lulu contributed Rs 2 crore, while Inorbit Malls  India Pvt. Ltd. contributed approximately Rs 20 crore among retail companies. 

The list included other developers such as Fortune Estate Developers Pvt Ltd, Sohini Developers, SRI Developers, Ashoka Developers, Magarpatta Township Development & Construction Company, Suman Estates Pvt Ltd, Chennai Greenwoods Pvt Ltd, Fortune Estate Developers Pvt Ltd, and Sweta Estates Pvt Ltd.