Author Archives: supriya

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

Posted on by

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Posted on by

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

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

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

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

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

The impact on western suburbs’ rents 

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

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

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

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

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

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

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

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

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

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

How do you define premium? 

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

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

What drives Patna, Lucknow, and fifteen other developing cities’ real estate boom? A real(i)ty check

Posted on by

The top 17 high-impact emerging real estate hotspots in India are Amritsar, Ayodhya, Jaipur, Kanpur, Lucknow, and Varanasi in the north; Patna and Puri in the east; Dwarka, Nagpur, Shirdi, and Surat in the west; Coimbatore, Kochi, Tirupati, and Visakhapatnam in the South; and Indore in central India.  

India is rapidly becoming the third-largest economy globally, and its emerging cities are expected to be crucial to the country’s economic development. According to Colliers’ Equitable Growth and Emerging Real Estate Hotspot report, India is predicted to have eight megacities and nearly 100 cities with a population of one million or more by 2050. The next wave of urban growth in these places will be driven by infrastructure development, tourism, digitization, and changing office landscapes.

The top 17 high-impact emerging real estate hotspots in India, according to the report, are Indore in Central India; Patna and Puri in the East; Dwarka, Nagpur, Shirdi, and Surat in the West; Amritsar, Ayodhya, Jaipur, Kanpur, Lucknow, and Varanasi in the North; and Coimbatore, Kochi, Tirupati, and Visakhapatnam in the South. In the top 17 cities, residential was considered the high-impact segment in 13 cities, warehousing in 10 cities, and retail in 13 cities. These cities’ high-impact segments are residential, warehousing, and retail. 

The report lists other high-impact segments: office, hospitality, senior living, and data center. Seven cities identify the hospitality industry as their high-impact segment, while only four identify offices as such. Data centers and senior living were identified as the segments with the greatest impact in seven cities. 

It is interesting to note that better infrastructure, reasonably priced real estate, qualified labor, and government initiatives are all helping smaller towns become vital contributors to India’s economy. According to Colliers India CEO Badal Yagnik, “this growth is set to propel the real estate sector to an estimated  $1 trillion by 2030 and potentially $5 trillion, a 14-16 percent share in GDP by 2050.” 

Additionally, the National Infrastructure Pipeline (NIP) and PM GatiShakti’s flagship infrastructure projects are expected to lead the dispersion and expansion of growth centers beyond tier-1 cities due to improved connectivity and increased manufacturing activity. The growth of factories and MSMEs is anticipated to lead to the rising demand for warehouse space in developing hotspots along infrastructure corridors. 

Why is there an increase in tier-2 cities’ demand for real estate across all segments? 

The report claims that businesses are embracing the hub and spoke model more frequently due to the growing popularity of hybrid working, setting up satellite offices in smaller towns. The likely causes include factors like the situation with technology today, the startup ecosystem, the talent pool of highly qualified individuals, planned and ongoing infrastructure improvements, and the area’s closeness to well-established office markets. Kochi, Indore, and Coimbatore are a few cities with lots of potential as satellite office markets. 

Employers and employees gain from office rental arbitrage along with the generally cheaper and more reasonable housing market in these areas, which ranges from 20% to 30%. According to Vimal Nadar, Senior Director and Head of Research at Colliers India, “This surge in demand is set to ignite a wave  of interest from leading real estate developers, ushering in an influx of high-quality supply in these markets.” 

The increase in real estate activity in smaller towns can be attributed to increased digitization in the warehousing and data center industries. E-commerce is expected to support the expansion of online retailers as they grow, leading to distribution hubs, fulfillment centers, and warehouses in key locations. 

The growth of data centers and smart infrastructure in these developing cities will also be fueled by the increase in data consumption, leading to these towns’ allure as real estate investment destinations. Jaipur, Kanpur, Lucknow, Nagpur, Patna, Surat, and Visakhapatnam were listed in the report as the cities most likely to see an increase in digitalization-driven real estate activity. 

Another factor supporting the idea that spiritual tourism is a major growth engine for the Indian temple towns is this. Long-term organized real estate players may be drawn to these spiritual locations by improved roads, flagship trains, and new airports, among other forms of infrastructure and improved connectivity. This is especially true for the hospitality and retail sectors. Regarding the growth spurred by spiritual tourism, Amritsar, Ayodhya, Dwarka, Puri, Shirdi, Tirupati, and Varanasi have merged as cities to watch out for. 

Finding high-impact locations for spiritual tourism required analyzing several factors, such as approved allotments under different government initiatives, yearly visitor numbers at major pilgrimage sites, future real estate development plans, and land price growth. 

Why are Bengaluru and Mumbai the top destinations for real estate developers?

Posted on by

At least six real estate developers from Bengaluru and Mumbai have increased their footprint in the two cities during the last ten years. Numerous companies, including the Delhi-based DLF, the Bengaluru-based Prestige Group, and Puravankara, have announced or entered the Mumbai real estate market. Realtors from Mumbai, including Lodha and Godrej, have also set foot in Bengaluru.  

However, why do developers wish to have a piece of the real estate markets in Bengaluru and Mumbai? Real estate experts say the main goal is to increase and establish their presence in more cities. 

According to experts, the growth pattern of listed real estate developers in these cities is more pronounced than that of unlisted or mid-sized realtors. 

Mumbai attracts developers due to its high sales velocity and better margins. 

Puravabkara Limited, a Bengaluru-based company, made market entries in Pune in 2017 and Mumbai in 2021. The company has been expanding quickly into Pune and Mumbai in recent years. The company also has a substantial portfolio in the Pune and Mumbai commercial markets. 

“There are several reasons why expanding into the Mumbai real estate market makes sense. The first is that the size of the real estate market in the Mumbai Metropolitan Region (MMR) is nearly the same as that of the entire South Indian real estate market, making it the largest in the nation. Rajat Rastogi, CEO of Puravankara Limited’s West and Commercial Assets, stated, “Secondly, MMR offers products across price segments that range from ultra-luxury to affordable housing thus enabling a wide product range.” 

Approximately 4.5 million square feet are currently under development in Puravankara, the residential real estate market in Mumbai and Pune. This includes several projects in both cities. “In Pune and Mumbai, we intend to launch six or seven projects in the upcoming year.” Our plans include creating a substantial commercial real estate portfolio for Pune and Mumbai. Therefore, We are deepening our presence in Mumbai and Pune in addition to having a footprint,” Rastogi stated. 

As of FY24, Prestige Group, another developer based in Bengaluru, has 37 active projects. The company’s investors’ presentation for FY24, of these projects, seven are in Mumbai, twenty are in Bengaluru, and the rest are in places like Hyderabad, Calicut, Bengaluru, Kochi, and Ooty. 

Thirteen of the thirty projects the company has in the works are in Bengaluru and three are in Mumbai. 

An anonymous developer from Mumbai informed HT Digital that despite having a solid portfolio in Mumbai, he began a project in Pune. “I will need to build 20 square feet in Pune to make the same amount of money as one square foot in Mumbai. Thus, it makes sense for firms with listings to join the Mumbai market. The demand for luxury housing puts you on different scales and price points, so mid- and small-sized developers should keep working in their home market of Mumbai, said the speaker. 

Mumbai realtor moves into Gurgaon; North Indian developer ventures into Mumbai 

Mumbai’s Andheri is expected to see the launch of a project by Delhi-based DLF this fiscal year. Together with Trident Group, DLF is developing the Slum Rehabilitation Authority project. 

Oberoi Realty declared in November 2023 that it would buy 14.81 acres of land in Gurgaon, Haryana’s Sector 58 for Rs 597 crore. Up to 2.6 million square feet of floor area are believed to be attainable with this land. 

The company plans to construct a luxurious residential group housing project on this land. 

Are developers from Mumbai moving to Bengaluru because of the lower land prices? 

Bengaluru is the first choice for Mumbai-based developers looking to expand across multiple cities or the nation. Bengaluru is the first choice for Mumbai-based developers looking to expand across several cities or the entire country. Speaking with HT Digital, industry insiders cited high end-user demand and land availability over investment options as key draw factors for this market. 

“There is a lot of demand in Bengaluru, the country’s largest commercial market. According to Shantanu Mazumder, executive director of Knight Frank India’s Bengaluru division, other developers’ attention started turning towards the city at that point and has since grown. 

Additionally, he clarified, that lower land prices in Bengaluru relative to Mumbai aid developers in maintaining profit margins because building costs are relatively constant across cities. 

Over the last ten years, several well-known Mumbai brands, including Tata Housing, Mahindra Lifespaces, and Godrej Properties, have successfully entered the garden city. 

For instance, Lodha recently launched two opulent residential projects in Bengaluru’s eastern and southern regions, making its first foray into the business. 

According to data accessible on the integrated real estate platform Square Yards, Godrej Properties has expanded its presence in Bengaluru with over 30 projects across various categories. 

On the other hand, Tata Housing has yet to finish any projects in the city. After moving to Bengaluru in 2015, Mahindra Lifespaces has started work on four residential developments. 

The final consumer drives the real estate market in Bengaluru.

Experts stated that attracting Bengaluru’s astute consumers necessitates fierce competition due to having a diverse range of seasoned home brands, including Sobha, Puravankara, provident Housing, RMZ, and Brigade, among many others.  

Bangalore is a sizable market. Within the Grade A space, there are a minimum of 17-18 established operators. Mazumder clarified that many developers who relocated to Bengaluru struggled with their first one or two projects since they needed to establish a track record of success to gain trust. 

He claimed the patrons here are seasoned because they have watched home players grow. Consequently, a novice player typically completes the life cycle of two to three projects before branching out.  

“Bengaluru is a very evident end-user-driven market; it is not a speculative market,” Mazumder declared. 

“Identifying, building, and leasing are the first steps in the commercial segment. Thus, the player must continue to invest in the project for four to five years before leasing. Consequently, most of them are eager to begin with residential properties before gradually expanding into the commercial market,” he continued. 

Goa real estate market: Young professionals are buying more and more villa properties due to the appealing rental yields

Posted on by

Gated villas in Goa are an appealing investment option for young professionals due to the segment’s attractive capital appreciation and rental yields. Grade A locations like Anjum, Arpora, Baga, Calangute, and Candolim have seen a 22% capital appreciation in villa prices in the FY 2023-2024, even though the return on rentals is only about 5-8%. 

According to data supplied by Savills India Research, some of the newly built villa properties in Goa are priced between Rs 7-10 crore, comparable to apartments in South Delhi and South Mumbai. 

Younger professionals are increasingly relocating to Goa, particularly from large cities like Bengaluru, Delhi, Mumbai, and other well-known cities. According to the data, these new residents frequently work in creative industries or are digital nomads looking for a better work-life balance. 

According to Savills India’s research, buyers are mainly people in their 30s to 60s, including business owners and salaried professionals. These purchasers seek wealth diversification opportunities with gross yields of 10-12% annually, drawn by the prospect of capital appreciation and rental returns. 

It was evident that buyers of the second homes were not only end users but also retail investors looking for both capital appreciation and rental returns due to the emergence of asset management companies and hospitality operators managing individual properties. 

Savills India’s gated villas with three to four bedrooms and sizes between 2,000 and 4,000 square feet are becoming increasingly popular, according to Savills India. Savills India research provided data indicating that the plot sizes of these gated villa projects range from 190 to 400 sq m. 

Villa sizes decrease as a result of rising land costs. 

Due to higher land prices, the standard size of villas in Goa has fallen over the past five years from 500 square meters to 250 square meters, according to the data. 

Although still in demand, premium views are becoming increasingly rare, and investment goals frequently take precedence over end-use goals. According to the data, Assagaon and Siolim are popular with lifestyle-conscious buyers who value address and quality over beach access, even though beach proximity is still preferred. 

While larger properties are still available in emerging areas, the average size of a home in prominent locations has decreased to 300 square meters. The data indicated two primary buyer categories: end-users, professionals, industrialists, those looking to deploy capital gains, and investor-aspirational buyers. 

High rental income from vacation rentals in well-liked micro markets gives investors a competitive return on investment and a consistent. Families and groups are increasingly choosing private villas, according to the report. 

This is how Goa’s villa capital values compare. 

During the fiscal year 2023-2024, villa prices in grade A locations such as Anjum, Arpora, Baga, Calangute, Candolim, Vagator, Morjim, Assagao, Siolim, Mapusa, Pilerne, Reis Margos, Caranzalem, and Dona Paula– went up by 22%. The average capital rate in Q2 2024 was about Rs 25,504 per square foot, while in Q2 2023 it was about Rs 20,914 per square foot. They were Rs 15,6667 per square foot in Q2 2022. 

In the 2023-2024 period, prices at Grade B locations like Aldona, Moira, Nachoinola, Panjim, Chapora, Nerul, Mandrem, Parra, Saligao, Verla Canca, Saipem, Guirim, Tivim, Bicholim, Penha de Franca, Sangolda, and Bambolim changed by 30%. Rs 17,286 per square foot in Q2 2023 and  Rs 22,410 per square foot in Q2 2024. The cost of a villa in Q2 2022 was Rs 14,564 per square foot. 

As a component of Goa Home Fest 3.0, we offer a venue where sellers can highlight their finest properties and buyers can look for properties that meet their needs. It includes more laid-back coastal areas like Nachinola, Moira, and other North Goa neighborhoods, alongside more upscale ones like Anjuna, Vagator, and Candolim. It also includes ready-to-move-in and under-construction homes in Goa. According to Shveta Jain, MD of Savills India’s Residential Services division, the showcase highlights Goa’s rich history and culture in addition to independent bungalows and Portuguese homes. 

A fascination with commercial property 

Goa’s market for commercial real estate has been expanding along with its growth and tourist appeal, according to the data. 

Map, route, cost, completion date, and most recent updates for the Delhi-Amritsar-Katra Expressway

Posted on by

The Delhi-Amritsar-Katra Expressway is one of ten expressways that are to be built as part of “Bharatmala Pariyojana.” This 670 km long expressway, a combination of brownfield and greenfield expressways, links the states of Haryana, Punjab, Jammu and Kashmir, and Delhi. Currently an eight-lane access-controlled expressway, its width could eventually increase to four lanes. 

The expressway, which connects Delhi to Vaishno Devi in Katra and the Golden Temple in Amritsar, will facilitate religious tourism. The Ministry of Road Transport and Highways has approved the construction of an additional road connecting the Amarnath shrine. Important Sikh holy sites Tarn Taran, Goindwal Sahib, Khadoor Sahib, and Dera Baba Nanak will all be connected by the expressway. 

The Union Minister predicts that by December 2025, the expressway will probably be accessible to the general public. Permission to link the Delhi-Katra Expressway and the Bahadurgarh Bypass was recently granted by the central government to the Haryana government. 

Let us examine the Delhi-Amritsar-Katra Expressway in more detail, covering its main features, history, route map, current state, and breaking news. 

Project Specifics: Delhi-Katra Expressway 

  • The project was revealed in 2016, and the comprehensive report was completed in 2019. 
  • The expressway will run from the Punjab cities of Gurudaspur and Nakodar to the Bahadurgarh border in Delhi and Katra. 
  • The Greenfield expressway divides in two close to the Punjab town of Nakodar. 
  • The first Greenfield section would end close to Sri Guru Ram Dass Jee International Airport near Amritsar, after passing through Sultanpur Lodhi, Goindwal Sahib, Khadoor Sahib, and TarnTarn. 
  • The Brownfield and Greenfield Expressways are both included in the second section. It avoids Kathua and Jammu and travels directly to Katra. 
  • Around 14,000 acres from Punjab and 5,000 acres from Haryana are anticipated to be purchased. 

Delhi-Katra Expressway: Crucial Details 

The New Delhi-Katra Expressway is a game changer connecting numerous pilgrimage sites in Punjab and Jammu & Kashmir. 

Let us examine some of the Delhi-Katra Expressway’s main features: 

Particulars Facts 
Project Length 670 km 
Start PointJasur Kheri village near Bahadurgarh border, Delhi 
End Point Sri Guru Ram Dass Jee International Airport, Amritsar, Punjab Katra, Jammu & Kashmir 
Lanes 4-lane, expandable to 8 
Operational Date December 2025 
Project Cost Rs 35,000 crore 
Operational Date December 2025 
Status Under construction 

Route: Delhi-Katra Expressway 

Twelve packages are planned for the 397 km long Delhi-Nakodar section’s construction. Three packages will be created to work on the remaining section, the areas between Nakodar and Amritsar. At the Mullanpur Dakha-Kang Sahbu section, this section will merge with the Delhi-Nakodar section. 

Map of the Delhi-Katra Expressway 

The Sri Guru Ram Dass Jee International Airport in Amritsar, Punjab, and Katra, Jammu and Kashmir, mark the beginning and end of the expressway, which begins in the village of Jasaur Kheri, close to the Bahadurgarh border in Delhi. Below is the route map.  

Building of the Delhi-Amritsar-Katra Expressway 

In April 2021, NHAI was awarded the task of constructing the Delhi-Amritsar-Katra. There are two stages to the expressway’s construction:

A greenfield expressway is Phase 1. 

  • Phase 1 includes the 397.7  km Delhi-Nakodar-Gurdaspur segment. This phase has twelve packages, with work currently allocated to each package. 
  • Three packages cover the 99-km Delhi-Katra Expressway stretch between Nakodar and Amritsar; two have already been awarded, and the third package’s tender was released in September 2021. 

Phase 2 expressways will be a combination of brownfield and greenfield areas. 

  • Phase Two’s Gurdaspur-Katra section is broken up into four packages. In September 2021, the technical bid for Phase 2 was started. 

Katra-Delhi Expressway: Shorter commute 

There are currently 669 kilometers separating Delhi and Katra. The expressway will be shortened to 588 km once it is operational. It would take about six hours to complete the route, which currently takes about fourteen. Thanks to the Delhi Amritsar Katra Expressway, the trip from Delhi to Amritsar will take just four hours and cover a distance of only 405 km. There would also be a 2-hour trip from Delhi to Chandigarh. 

The Delhi-Katra Expressway is expected to be finished in two years, or by 2023, according to a September 2021 statement issued by Nitin Gadkari, the Union Minister of Road Transport and Highways. However, there has been a delay in the project’s schedule. By December 2025, the eagerly awaited Delhi-Amritsar-Katra expressway is anticipated to open to traffic. An estimated Rs 47,000 crore will be needed for the project; some of that amount will go toward purchasing land and the remainder towards building. 

Delhi-Amritsar-Katra Expressway: Timeline 

  • A comprehensive project report (DPR) was created in November 2019 for the Delhi-Amritsar Expressway. 
  • A comprehensive project report (DPR) was created in November 2019 for the Delhi-Amritsar-Katra Expressway. 
  • Land acquisition for the project began in January 2020. 
  • June 2020 marked the finalization of the expressway’s route map. Additionally, land acquisition in Punjab started near Sri Guru Ram Das Jee International Airport in Raja Sansi and extended to Kang Sahib Rai Village near Nakodar. Amritsar also has a new Greenfield Expressway added to it. 
  • Land acquisition in some areas of Jammu and Kashmir started in July 2022. The Delhi-Nakoar-Gurdaspur section was given to NHAI for construction in two stages. 
  • August 2022: Prime Minister Narendra Modi laid the expressway’s cornerstone. Between Bahadurgarh and Sangrur sections, the construction work began. 
  • December 2023: The entire expressway will be finished by the end of 2025, though some subsections will open gradually before then. 
  • February 2024: The plan to link Jhajjar, Haryana’s Bahadurgarh Bypass, and the Delhi Katra Expressway has been approved by the Central Government. 

Facilities for the proposed Delhi-Amritsar-Katra Expressway 

  • Bus depots 
  • Truck stops 
  • Food courts 
  • Recreational centers 
  • Trauma Centres
  • Traffic Police Stations
  • Fire Brigades 
  • Ambulance 

Real estate impact of the Delhi Katra Expressway 

In Punjab and Jammu & Kashmir, the Delhi-Amritsar-Katra expressway will pass numerous significant religious sites. The expressway will facilitate travel to numerous significant religious sites. The expressway will facilitate travel to several holy locations, including Tarn Taran, Golden Temple, Vaishno Devi, Goindwal Sahib, Sultanpur Lodhi, and Khadoor Sahib. The tier-2  and tier-3 localities along the expressway route can anticipate a boom in commercial activities, employment, social infrastructure, and real estate because tourism in and around these places will experience a surge. Therefore, the planned expressway will enhance connectivity while creating opportunities for more housing demand and tourism.  

Current Update on the Delhi-Amritsar-Katra Expressway 

The Union Ministry of Road Transport and Highways approved connecting the Delhi-Katra Expressway and the Bahadurgarh Bypass. The Haryana government suggested this connection. Following completion, it will take only four hours to travel from Delhi to Amritsar and roughly six hours to get to Katra. The highway will link up with Jhajjar, Haryana’s Bahadurgarh Bypass. 

Here are the reasons behind developers’ and buyers’ objections to the UP RERA model format for possession letters in Delhi-NCR real estate

Posted on by

According to the Uttar Pradesh Real Estate Regulatory Authority, developers can only give possession letters to buyers once they have obtained occupancy certificates from the development authorities. The regulatory authority has said that the model format has been prepared to protect homebuyers and prevent arbitrariness on developers’ part through the offer of possession. 

The offering possession model format has been rejected by both real estate developers and homebuyers. The deemed approval clause in RERA, states that if the authority does not respond to a request for occupancy or a completion certificate within a certain amount of time, the approval is automatically deemed to have been granted, which is something that builders want the authority to take into consideration when making their decision. 

Homebuyers believe that if the builders do not pay their bills, they will be the ones who suffer the most in any conflict between the government and the builders as a result of the ruling. The flats’ transfer would be further delayed as a result. 

According to which UPRERA order, what? 

Real estate developers are not permitted to include demand notices in possession letters, according to UPRERA’s directive. 

“The promoters use the name and language of an “offer of possession,” which confuses the allottees and carries some binding conditions, in their “final demand letter” and “final demand notice.” According to UP RERA  Chairman Sanjay Bhoosreddy, an “offer of possession” should only be intended for taking possession. 

Since any other letter format is invalid, we have provided a sample ‘Offer of Possession’ on the portal. This will clear up any misunderstandings among the parties involved and assist in resolving any conflicts that might arise, “Boosreddy continued. 

Following receipt of the project’s OC/CC (occupancy certificate/ completion certificate), the promoter will send a written offer of possession letter to the allottees’ registered email addresses and residential addresses via postal mail, as stated by the UP RERA. The allottees will also receive an SMS on their phones and mobile numbers. 

The promoter “should also display information at the project site and its head office in this regard,” according to RERA. 

“The  Regulatory Authority has uploaded a model format of Offer of Possession so that uniformity can be achieved in the language and purpose of this letter,” the statement continued, “keeping in mind the complaints received regarding the Offer of Possession letter issued to the allottees by the promoters and  the variety of formats of the letter.” 

The letter’s main goal about the “offer of possession” should be to extend an invitation to the allottee to transfer ownership of their unit. A promoter must indicate the remaining finishing work and the estimated duration if the unit is still to be built.

“If the allottee is liable in any way, it should be covered  by the Agreement for Sale  and substantiated by evidence.”  

Homebuyers disagree with the directive  

Homeowners point out that they are still suffering and paying both rent and EMIs in some legacy projects where the builder refuses to pay land cost dues or show up to get the occupancy certificate. 

The UP RERA Authority has not given thought to the possession issue. This is just an eyewash notification. The real issue with possession is that promoters force allottees to sign a declaration, indemnity bond, or other document stating that they are taking possession only after ensuring that everything is in order and that they will have no further claims against the promoter “said Abhay Upadhyay, president of the Forum for People’s Collective Efforts, an organization founded to address concerns raised by home buyers, particularly those about RERA. 

Furthermore, he said the use would be denied by an allottee who declines to sign such a document if he finds flaws in the apartment, the common areas, or the unfinished facilities and amenities. 

He notes that the Act stipulates that the promoters may only offer possession after receiving OC/CC, making it difficult to comprehend the reasoning behind this notification. 

“Instead of sending out a notice, action against promoters offering possession without obtaining OC/CC should have been taken, if the UP RERA Authority is receiving complaints from allotted to that effect. It is unreasonable to expect builders to follow this notice if they are not complying with the Act’s requirements. He queries. 

Second, it is customary for the final payment to be due at the time of possession. Therefore, if money is still owed to the builder, it makes no difference to allottees whether the demand notice is sent with the possession letter or not. He notes that the notification does not address the pointless issue of whether the demand– whether made in conjunction with or apart from a possession letter— is legitimate. 

The only requirement of this notification is that demand notices be sent separately. Since promoters cannot combine their demand notices with the possession letter, it could cause issues if they begin sending their last and final demand notices ahead of schedule. According to him, in that case, the allottee would wind up paying the full consideration amount without obtaining possession. 

Infrastructural spiritual tourism: 17 tier-⅔ cities are the upcoming real estate hot spots

Posted on by

Real estate consulting firm Colliers has identified 17 cities as possible hubs for the sector. Companies opening satellite offices in smaller towns and moving to hybrid work models are the main drivers of the growth. Other factors include increased digital penetration, government initiatives, infrastructure development, and spiritual tourism. According to the report, the Indian real estate market is expected to grow to $1 trillion by 2030 and $5 trillion by 2050. 

The real estate consulting firm Colliers has determined which 17 cities will soon become real estate hotspots. Companies opening satellite offices in smaller towns and moving to hybrid work models are the main drivers of the growth. Additional factors include government initiatives, infrastructure growth, a greater reliance on digital technology, and spiritual tourism. According to the report, the Indian real estate market is expected to grow to $1 trillion by 2030 and $5 trillion by 2050. 

To assess the real estate demand and growth potential of these more than 100 emerging cities over the next five to six years, Colliers has identified them in its report. Out of a universe of more than 100 cities, Colliers identified 30 as possibly high-growth cities after thorough analysis. According to the report, 17 of these 30 cities will become hotspots for real estate. 

To accommodate increasing visitor numbers, these locations are anticipated to draw investments in the hospitality and retail sectors. Cities like Varanasi, Jaipur, Kanpur, Lucknow, Ayodhya, Amritsar, and Ayodhya stand to gain from increased economic activity and better infrastructure. These areas are desirable places to invest in real estate because they are positioned to benefit from government initiatives and improved connectivity. The eastern cities of Patna and Puri are considered potential growth centers because of their improved infrastructure and increased commercial activity. In the west, cities like Dwarka, Nagpur, Shirdi, and Surat should develop rapidly thanks to improving infrastructure and industrialization. 

With the help of robust local economies and improved infrastructure, the southern cities of Coimbatore, Kochi, Tirupati, and Visakhapatnam are becoming important centers for residential and commercial developments. 

The office and residential markets in smaller cities are about to experience an enormous shift as tech giants and creative start-ups take advantage of the highly qualified workforce that emerges in these emerging hubs. These locations offer a win-win situation for businesses and employees due to office rental arbitrage, usually 20-30% lower, and a reasonably priced housing market. Leading real estate developers are expected to become interested in these markets because of the rise, which will bring in a flood of high-quality supply. According to Vimal Nadar, Senior Director & Head of Research at Colliers India, “the emergence of flexible spaces in these dynamic hubs  will also effortlessly bridge the demand-supply gap for premium office spaces, fostering a new era of growth and opportunity.” 

Even though Noida and Gurgaon are oversaturated, Faridabad’s luxury home market is expanding

Posted on by

Gaining momentum quickly, Faridabad is emerging as a leading destination for upscale residential development thanks to its improved connectivity and growing infrastructure.  

Because of its affordable luxury housing, the residential luxury market in Faridabad presents a strong alternative to the more established upscale markets in the National Capital Region (NCR) of Noida and Gurgaon. Faridabad offers an opportunity for both affordability and growth, in contrast to the oversaturated markets of Gurgaon and Noida, where exorbitant prices make it difficult to find spacious flats within a gated and well-maintained society for even INR 1 crore. 

On the Delhi-Mathura Road lies Faridabad, one of the oldest industrial suburbs of Delhi. One of the most sought-after places to live has always been the city. However, the action moved to Gurgaon and Noida as real estate development hotspots because of improving connectivity and growing infrastructure.

After Ghaziabad, Faridabad is the oldest residential suburb of Delhi. It is home to numerous large corporations, medium- and small-sized businesses, and large-scale industries, particularly in the manufacturing sector, which has spurred the growth of the real estate market. 

Recent initiatives to enhance the city’s connectivity and infrastructure have also raised the value of the Faridabad brand, particularly in the Greater Faridabad area, also referred to as Neharpar Faridabad. Road construction in the recent past has not only accelerated traffic but also Gurgaon, Noida, Greater Noida, and the Yamuna Expressway.  

The prospects for Faridabad have also improved with the construction of the Faridabad-Noida-Ghaziabad (FNG) Expressway. The 135-kilometer Eastern Peripheral Expressway (EPE), which runs along Delhi’s eastern edge, has also contributed to Faridabad’s residential appeal. Faridabad’s appeal has also been increased by the KGP Expressway, which links Kundli, Ghaziabad, and Palwal at Manjhawli as part of the recently created Comprehensive Mobility Plan (CMP). Important developments include the construction of the Manjhawali Bridge and the 1380-km Delhi Mumbai Expressway, which connects urban centers in Delhi through the Delhi-Faridabad-Sohna section of the corridor and has a spur to Jewar Airport. Through these projects, the distance between Noida, Greater Noida, Faridabad, and Greater Faridabad has decreased and the city’s connection to Jewar Airport has improved, giving Faridabad a fresh appeal. 

Because of its affordability without sacrificing amenities, Faridabad has been drawing in an increasing number of premium and higher-income homebuyers and investors. For example, a larger luxury apartment in Faridabad can be had for prices comparable to those in Noida and Gurgaon–roughly 1.2 to 1.5 times larger. Faridabad has seen a notable price rise, caused by infrastructural improvements and the growing demand for upscale amenities and luxury housing. 

Furthermore, the city’s infamous traffic bottlenecks have been lessened by upgrades to the road system. Because of these developments, Faridabad has become more appealing, drawing attention away from Noida and Gurgaon and inspiring forward-thinking real estate developers to build luxurious residential complexes with cutting-edge amenities. 

In the last three to four years, the cost of a square foot has nearly doubled in Gurgaon and Noida; in contrast, Faridabad offers spacious properties at lower prices, with the possibility of a price increase shortly. Property appreciation rates in Gurgaon and Noida are predicted to slow down as they have already peaked, offering a special opportunity to invest in the Faridabad region are also expected to rise by as much as 40% after the Faridabad-Jewar expressway is completed. Developers are now concentrating on Greater Faridabad for new luxury residential projects, as most of Faridabad’s upscale sectors are nearly completely occupied. 

Faridabad’s ascent in the Kearney Index, which evaluates the performance of India’s top 20 cities according to several retail metrics, has been another significant factor. Faridabad significantly improved from its 2021 ranking to occupy 13th place in the nation in 2023. This rise indicated a change the city was going through in addition to showcasing its prowess in retail, improved ease of doing business, presence of power brands, and growing population. The information is encouraging for Faridabad’s upscale and luxurious housing projects. A notable change in the dynamics of the city is indicated by the rising population and power brands drawn to this progress. This shows a trend in the right direction for the growth of Faridabad’s upscale and luxurious housing developments. 

Amritsar and Jaipur are two of India’s seventeen burgeoning real estate hubs. Does the list include your city?

Posted on by

Many demand and supply side parameters related to the social, economic, financial, and real estate sectors were evaluated as part of an extensive examination of these cities. 

India is rapidly becoming the third-largest economy in the world, and emerging cities are expected to be crucial to the country’s economic development. In addition to its eight megacities, India is predicted to have almost 100 cities with a population of one million or more by 2050. Important factors like tourism, digitization, infrastructure development, and changes in the office landscape will propel the next wave of urban growth in these locations.

In its most recent report, “Equitable Growth and Emerging Real Estate Hotspots,” Colliers identified and assessed over 100 emerging cities, keeping the previous variables as its main considerations, to levy their real estate attractiveness and growth potential over the next five to six years. 

Numerous social, economic, financial, and supply-side parameters unique to the real estate industry were evaluated as part of an extensive examination of these cities. To determine the relative importance and impact of these parameters on different real estate segments in the respective cities, including office, residential, warehousing, retail, hospitality, and alternatives (data centers, senior living, second homes, etc.), Colliers conducted a comprehensive assessment while developing an objective framework that included the previously mentioned factors. 

Out of the 100+ cities where real estate development is expected to strengthen in the medium to long term, this detailed analysis helped identify 30 cities that have the potential to expand rapidly. Amazingly, in 17 of these 30 high-potential cities, faster real estate development across three or more asset classes is predicted. The distribution of these 17 high-impact emerging real estate hotspots across the nation’s Northern, Southern, Western, Eastern, and Central regions demonstrates equitable growth.

“Affordable real estate, skilled labor, better infrastructure, and government initiatives are propelling smaller towns to become dynamic contributors to India’s economy. The real estate industry is expected to grow to a projected $1 trillion by 2030 and possibly $5 trillion by 2050, accounting for 14-16% of the GDP. The retail, hospitality, commercial, residential, and industrial segments are all predicted to experience significant growth. Other asset classes, like senior housing, data centers, and second homes, are also expected to see a lot of activity in these newly developed real estate hotspots.” CEO of Colliers India Badal Yagnik stated. 

Infrastructure development will continue to be a major driving force behind real estate growth in India. Growth centers will disperse and expand outside Tier 1 cities due to improved connectivity and increased manufacturing activity caused by flagship infrastructure projects under PM GatiShakti and the National Infrastructure Pipeline (NIP). This will lead to significant economic growth in smaller towns, causing a rise in the rise and warehousing real estate markets. Furthermore, there will be a growing demand for storage space in developing hotspots along infrastructure corridors as factories and MSMEs thrive in a supportive setting. Colliers’ analysis utilized several supply-side and demand-side factors, such as the proximity to important infrastructure projects, the concentration of warehouses and MSME registrations in the designated locations, the allocation of infrastructure throughout the city, etc., to evaluate the overall impact of infrastructure on real estate. 

The technology sector and changing work models will drive demand for offices and homes in emerging cities. 

Companies are embracing the hub-and-spoke model and opening satellite offices in smaller towns due to the growing popularity of hybrid working. Through a thorough analysis that included several factors, such as the start-up ecosystem and current state of technology, the availability of skilled labor, planned and actual infrastructure upgrades, and the locations’ proximity to well-established office markets, Colliers was able to identify the high-impact locations. Among other places, Coimbatore, Indore, and Kochi were identified as having a lot of potential as satellite office markets. 

Smaller cities are poised for a revolutionary boom in the office and residential markets as tech giants and creative start-ups take advantage of their highly skilled talent pools of emerging hubs. The combination of office rental arbitrage and the generally 20-30% lower and more reasonably priced housing market in these areas results in a win-win situation for employers and employees. Leading real estate developers’ interest is expected to surge in response to this surge in demand, bringing in a flood of superior supply to these markets. Furthermore, the growth of flexible spaces in these energetic centers will effectively close the gap between supply and demand for high-end office space, ushering in a new phase of expansion and opportunity, according to Vimal Nadar, Senior Director & Head of Research at Colliers India. 

Higher digital adoption to encourage the expansion of data centers in smaller towns 

Real estate activity in smaller towns is expected to increase significantly due to increased digitization, especially in the data center and warehousing sectors. The expansion of e-commerce will make it easier for online retailers to expand, resulting in the construction of distribution hubs, warehouses, and fulfillment centers in key locations. The growth of data centers and smart infrastructure in these developing cities will also be fueled by the increase in data consumption, leading to these towns’ allure as real estate investment destinations. 

Colliers examined the effects of digitization on real estate and the following factors: population, GDP per capita, online shopping inclination, adoption,  digital payments, presence of leading retail brands, etc. Cities like Jaipur, Kanpur, Lucknow, Nagpur, Patna, Surat, and Visakhapatnam were highly recommended on the list of places where real estate activity is predicted to increase due to digitization. 

Temple towns will grow as a result of spiritual tourism 

Supported by infrastructure advancements and government policy, spiritual tourism is expected to play a major role in the growth of various Indian temple towns. Long-term organized real estate players may be drawn to these spiritual locations by infrastructure upgrades and enhanced connectivity, particularly in the hotel and retail sectors, thanks to new airports, flagship trains, and better roads. 

Finding high-impact sites for spiritual tourism required analyzing several factors, such as approved allotments under different government initiatives, yearly visitor traffic at major pilgrimage sites, future real estate developer plans, and land price growth. With growth spurred by spiritual tourism, Amritsar, Ayodhya, Dwarka, Puri, Shirdi, Tirupati, and Varanasi have emerged as cities to watch out for. 

Chennai vs Hyderabad: Where to Live and Invest in 2024

Posted on by

Whenever an individual plans to shift or find a location that suits their lifestyle, the Southern side of India is always on the list, and when searching thoroughly, Chennai and Hyderabad are the two locations that click in everybody’s mind. And, why not? Both cities have robust economies, unique attributes, and a promising real estate market. 

In today’s blog, I will share my insights between these two cities, a comparison to decide which city is a better option to invest in and to live in. 

Overview of Chennai and Hyderabad

Geographic Location and Climate

Chennai: Located along the Bay of the Bengal in the eastern coast of India, Chennai’s climate is tropical. Summer can be extremely humid, the rainy season promises pours and mild winters. 

Hyderabad: is situated in the southern part of Telangana, in southeastern India. The weather in this city is hot and humid in summer but cooler and comfortable in winter. 

Population and Demographics

  • Chennai: Famous for its historical places like the government museum and Valluvar Kottam, Tamil Nadu’s capital Chennai is also an IT hub, and reflects traditionality and modernity in its culture. Currently, Chennai is home to approximately 12 million people. 
  • Hyderabad: With a growth rate of 2.48%, Telangana’s capital Hyderabad resides 11 million people. Among the attractions in this city are Charminar, Hussain Sagar Lake, and Ramoji Film City.

Key Industries and Economic Drivers

  • Chennai: Chennai is known for its software services, Hardware manufacturing, automobile manufacturing, healthcare, and financial services. The cultural significance of Chennai is Marina Beach, Kapaleeshwarar Temple, and Mahabalipuram. 
  • Hyderabad:  We all know that Hyderabad is the major center of Tech industries, pharmaceutical companies, and biotech firms. Golconda Fort, HITEC City, a hub for IT, and business parks are famous locations. 

Investing in Chennai

Real Estate Market

Chennai offers a diverse real estate market where you can invest in residential and commercial properties. The city has seen steady growth over the last few years because of the infrastructure development and strong economic base. 

Cost of Living and Infrastructure

  • Cost of Living: The living cost in Chennai is reasonable compared to other metro cities. The daily and monthly expenses are also manageable.
  • Infrastructure Development: The transportation facility in Chennai is convenient for the residents. Buses, suburban trains, and metro are the public transportation that increases connectivity. Projects like CMRL (Chennai Metro Rail Lines) are growing real estate market values. 

Job Market and Growth Potential

Chennai’s job market promises a steady lifestyle, especially in the automobile, IT, and healthcare sectors. Multiple MNCs and startups offer employment to every kind of person seeking a job.  

Promising Sectors and Neighborhoods

  • Promising Sectors: Automobile industries near Oragadam, IT parks in Taramani and Sholinganallur, and the healthcare industries. 
  • Neighborhoods: Residential areas like OMR (Old Mahabalipuram Road), ECR( East Coast Road), and Adyar are famous because of their connectivity to the IT hubs, schools, and entertainment. 

Investing in Hyderabad

Real Estate Market

The real estate market in Hyderabad is growing and becoming a top-notch place for the IT industries and MNCs to set up their businesses in this city. Whether an individual wants to reside or invest in it, this city has interesting offers in both residential and commercial properties. 

Cost of Living and Infrastructure

  • Cost of Living: Hyderabad is cheaper than most of the Indian cities. Transportation, food, and housing costs are manageable. 
  • Infrastructure Development: The infrastructure of Hyderabad has great connectivity throughout the city, the outer ring road, the metro line, and an international airport. Projects like  Regional Ring Road and the expansion of the metro line are still in progress and will provide convenient connectivity to the residents. 

Job Market and Growth Potential

Hyderabad’s IT hubs and Pharmaceutical sectors offer multiple opportunities for job seekers. Companies like Amazon, Google, and Microsoft intrigue job seekers to come to Hyderabad. 

Promising Sectors and Neighborhoods

  • Promising Sectors: Areas like Gachibowli, Genome Valley, and HITEC City are in demand. 
  • Neighborhoods: Most individuals decide to reside in Gachibowli, HITEC City, and Kondapur due to the convenience of modern amenities, IT hubs, and educational institutions. 

Recommendation: Chennai or Hyderabad?

Quality of Life

Both of the cities offer a convenient quality of life. But, settling in Hyderabad will be a better option as it is affordable and the weather conditions are better. However, Chennai is a cultural hub with rich traditions and vibrant art scenes. 

Economic Prospects

The growth of tech industries and the expanding infrastructure of Hyderabad is attracting multiple investors to invest. On the other hand, With the mix of tradition and set up of old industries, Chennai guarantees you steady growth.

Long-Term Growth Potential

The growth potential of these two cities is interesting. However, Hyderabad’s growth rate reflects that it may surpass Chennai in the upcoming years. The increasing rate of IT industries and business-friendly environments in Hyderabad shows increasing demand for real estate and attracts investors to invest. 

Conclusion

After researching the current trends, growth potential, culture, lifestyle, weather, and the development of these two cities, I am choosing Hyderabad over Chennai to live and invest. The robust infrastructure, low cost of living, and vast job market make Hyderabad a better option for investing and living. 

People interested in experiencing rich cultural heritage and steady growth can opt to settle in Chennai. 

Before finalizing your decision consider the above factors to get a rough idea to choose and tick off the list that matches your lifestyle and financial objectives. 

Is the number of wealthy Indians and NRIs investing in real estate in India experiencing an unprecedented rise?

Posted on by

JJL recently released a report estimating that strong demand and high-quality launching will propel India’s residential sector to sales of between 290,000 and 300,000. The premium segment has experienced a 22% increase in sales, while the mid-segment price category has dominated sales. Developers are launching projects to meet the demand trend, and sales in the luxury segment have increased by 83% as well. As a result of changing consumer preferences and technological advancements, there is an increasing demand for luxury real estate in India. 

Furthermore, the COVID-19 pandemic is also blamed for the striking rise in large luxury homes, as well-off individuals seek livable environments with lots of security and convenience. 

The growing affluent class 

Last year, 54% of homebuyers in India were millennials, 36 percent of the country’s population, and have an estimated combined spending power of over US $330 billion. As their disposable income rises, they invest in luxury real estate and look for larger homes; as a result, sales of luxury real estate in India’s top seven cities increased five-fold between 2018 and 2023. 

According to certain studies, in the past few years, Mumbai, India’s financial center, has produced more millionaires than Romw thanks to the efforts of global wealth managers and private equity firms. Eventually, these emerging young millennials will put a lot of demand on the Indian real estate market. 

Similar patterns can be seen in a survey conducted by Sotheby’s International Realty, which indicates that an increasing number of wealthy people– including NRIs — are thinking about buying luxury real estate in India. The growing affluent class’s aspirations for superior amenities, large living areas, unique designs, prestigious addresses, a healthy lifestyle, and a high return on investment are increasing demand for luxury homes amid these developments. 

Furthermore, the increase in NRI involvement is indicative of their growing trust in the Indian real estate sector as well as their attraction to investing in upscale and luxurious real estate, especially in Goa, Mumbai, and Delhi-NCR. 

The Luxury Outlook Survey 2024 unveils a very intriguing fact. The survey’s conclusions show that most people who purchase vacation homes favor Goa as a second home location. 

Let us examine the key characteristics of Goa real estate that both HNIs and NRIs find appealing. 

Goa’s stunning location, pleasant climate, and ideal blend of modern comforts and natural living have made it India’s top destination for luxury and ultra-luxury real estate. Residents now emphasize the importance of smart homes and healthy living since these things reflect their social standing and work-life balance. With their safety features and larger living areas, second homes and amenities are now considered necessities for purchasers.  

With the opening of the MOPA airport, Goa’s already excellent connectivity is predicted to get even better, resulting in more flights and growth in the tourism industry. Modern healthcare facilities are another factor driving the growth of lavish homes. The future of luxury vacation rentals is driven by sustainability, focusing on intangibles like forging deep connections with clients and protecting the environment. 

Many tourists have been drawn to Goa by its undiscovered natural and cultural beauty, and as the work-from-home trend gains traction, more people are looking to relocate permanently to Goa. Prestigious villas, second homes, farmhouse communities, luxury housing, and plotted developments thrive in Sindhudurg and North Goa. This area will remain a popular place to invest because of the strong demand for housing, increasing income stability, and infrastructural improvements. 

The profitable Indian real estate market draws in NRIs. 

From 2023 to 2028, the Indian luxury real estate market is projected to grow at a compound annual growth rate (CAGR) exceeding 5%. Luxury residential properties have cutting-edge amenities and prime locations. Non-resident Indians, or NRIs, have been investing in India’s luxury real estate at an increasing rate; they entered the market with $13.1 billion last year. NRIs, or non-resident Indians, have been making more and more investments in India’s luxury estate; just this year, they brought $13.1 billion into the market. 20% of all real estate investments made in the nation are anticipated to come from NRIs by 2025. 

NRIs should strategically diversify their investment portfolios by purchasing luxury real estate in India, as these assets offer prestige, long-term value appreciation, and a hedge against market volatility. NRIs looking for long-term investment gains and capital appreciation find major destinations like Goa tempting due to their competitive pricing, rising rental yields, and potential for property appreciation. 

Modern security systems, smart home technology, wellness centers, and first-rate concierge services are just a few of the upscale amenities that Indian real estate developers offer NRIs to suit their sophisticated international lifestyle. The partnership between premier developers and NRIs demonstrates how sophisticated and globally desirable luxury real estate in India is becoming. 

In short, the rising wealth class, which makes up 36% of the population, bought homes in 2017 in 54% of cases, with an estimated combined spending power of more than US $330 billion. The Indian economy is attracting investment, which boosts demand for real estate and raises prices in promising locations like Goa. Due to its outstanding performance in the global economy and its political stability, India is expected to maintain its upward trajectory in the coming years. 

Current Trends and Prospects for the Indian Real Estate Market

Posted on by

By 2024 and beyond, the Indian real estate market will likely undergo a dramatic upheaval. 

Changes in Regulation and the Economy’s Effect on Real Estate 

Housing Plans and Government Policies 

Changes in the nation’s economy and regulations in 2024 will impact the real estate market in the industry. Government policies, interest rates, and inflation are a few variables that will greatly influence market dynamics. Government policies, interest rates, and inflation are just a few variables that will greatly influence market dynamics. Government policies conducive to industry growth are expected to boost industry growth and may lead to steady investment inflows. 

The Economic Factors Affecting Real Estate 

The state of the economy will be crucially affected by trends in employment, inflation, and domestic growth. Demographic factors and urbanization will impact housing demand. Global economic conditions will also be important, with developed economies experiencing stable growth and emerging markets experiencing faster but more volatile growth. 

Market dynamics and regulatory reforms 

The laws governing the regulatory environment, such as the Real Estate (Regulation & Development) Act (RERA), will continue to affect the market’s economics. It will be important to consider tax laws and regulatory frameworks; certain nations have strict rules that guarantee compliance. To reduce project risks and ensure operational effectiveness, it is crucial to streamline regulatory procedures and deal with compliance obstacles. 

Novel Patterns in Residential Property 

Growth in Accessible Housing 

A notable development in the residential real estate market is the growing emphasis on cost-effective housing options that provide a better quality of life. The mid-segment market wants upscale living amenities at reasonable costs, especially for luxury properties. 

Transition to Sustainable Living 

With the increasing prominence of environmental issues, there is a growing trend toward sustainable living. In response to the rising demand for sustainable homes, developers are increasingly implementing energy-efficient technologies and green building practices. 

Remote Work’s Effect on Housing Demand 

The demand for housing has been greatly impacted by the rise in remote work, with many buyers looking for homes with designated workspaces and improved connectivity. The residential real estate market in India is expected to change this trend. 

Technological Progress Real Estate’s Shape 

Digitalization in the Real Estate Sector 

India’s real estate market is going through a major digital revolution. Prop Tech, or the application of technology to the real estate industry, is a major innovation engine. Apps that use virtual and augmented reality improve the viewing process by enabling prospective tenants or buyers to do remote property explorations. The process is becoming more transparent, effective, and user-friendly as a result of this digital shift. 

PropTech Innovations 

Real estate is being revolutionized by PropTech innovations. The marketing and sale of properties are being transformed by technologies such as home automation and artificial intelligence. AI in data analysis enables more accurate market predictions and property valuations. In 2024, innovation and technology will fuel a surge in real estate growth. 

Role of AI and Big Data 

Artificial intelligence and big data are transforming real estate transactions and the marketing landscape. Developed markets frequently lead in implementing advanced PropTech solutions, leading to more streamlined and efficient real estate procedures. AI’s ability to analyze massive amounts of data enables more precise market insights and improved decision-making, increasing the overall efficiency of the real estate industry. 

Conclusion

As we approach 2024 and beyond, the Indian real estate market is to undergo a substantial upheaval. Economic conditions, government regulations, and technical breakthroughs have all contributed to the sector’s potential for growth and innovation. The patterns discussed in this article emphasize the market’s dynamic nature and the opportunity it provides for investors, developers, and homeowners alike. As the landscape evolves, remaining aware and adaptable will be critical to managing India’s complex real estate market. With the correct strategies and insights, stakeholders may capitalize on emerging trends while contributing to the sector’s long-term growth and resilience. 

What will happen to Hyderabad real estate prices now that Amarvati is back in the spotlight following Naidu’s election as CM?

Posted on by

As Andhra Pradesh’s chief minister for the fourth term, Chandrababu Naidu is anticipated to focus more on business-friendly policies and infrastructure in both Telugu states, particularly in Hyderabad, the state capital. Real estate experts, however, assert that given Amaravati’s comeback, there might be some business and resident out-migration to Andhra Pradesh, which might cause a brief correction in Hyderabad real estate values. 

A day before his official swearing-in as the chief minister of Andhra Pradesh, N Chandrababu Naidu, the leader of the Telugu Desam Party, said that Amaravati would serve as the state capital. 

Naidu, the state’s first chief minister from 2014 to 2019, suggested Amaravati as the new capital. It was intended to be environmentally sustainable and was spread across 29 villages between Vijayawada and Guntur. Naidu used land pooling to purchase about 30,000 acres of land from farmers to build Amaravati. However, the 2019 TDP-YSRCP power vacuum severely hampered the plan. 

Real estate experts predict that, given the focus on Amaravati, which is anticipated to see a boom in development along the new growth corridors, the volume of residential real estate launches in Hyderabad may also rationalize as buyers and investors search Andhra Pradesh for competitive opportunities. 

“There are now compelling signs that this fantastic project might be resurrected, even though the previous administration abandoned it. On the other hand, creating a new capital city and the enormous ecosystem it requires is a huge task. It will take time to materialize and become a genuine rival to Hyderabad, even with all the political will and support,” stated Prashant Thakur, Regional Director and Head of Research at ANAROCK Group. 

How the numbers add up: Hyderabad’s real estate launches and prices 

Anarock Research released data showing a 45% increase in Hyderabad’s average property prices between Q2 2021 and Q1 2024.  Between Q1 2024 and Q2 2021, 1.54 lakh residential units were sold in Hyderabad, and 2.18 lakh new homes were launched. 

Between Q1 2024 and Q2  2021, Hyderabad’s residential market grew, with 154,300 new residential units sold and a yearly total of about 218,800 new residential units launched. An all-time high of approximately 76,300 units launched and 61,700 units sold was reached in 2023. Comparing these to information from 2021, there has been a notable increase of 48% and 143% respectively. 

According to Thakur, there was a significant increase in Hyderabad property values from Q1 2024 to Q2 2021. From Rs 4,372 per sq ft in 2021 to Rs 6,350 per sq ft in Q1 2024, prices increased by 45% on average.  

The land price in Hyderabad has also risen by over thirty percent in the preceding three years. The Anarock Research indicated that this had affected price increases in the city across all asset classes. 

The area of West Hyderabad, which has the highest density of office buildings, has experienced even faster growth. The average capital value of residential properties in this region has risen by 52% over the same period. According to Thakur, the average cost per square foot is currently  Rs 7,200. 

The potential growth of Andhra Pradesh may have both positive and negative effects on Hyderabad real estate. But overall, things should work out well because Andhra Pradesh’s development may have a knock-on effect that draws foreign companies and investors to the whole region said the speaker. 

This might lead to an increased demand for commercial and office space in Hyderabad, particularly along important thoroughfares such as the Hyderabad-Vijayawada highway. This area is already being primed for development with infrastructure projects and industrial parks, making it a potential growth engine for Hyderabad real estate. 

Not likely to witness a significant decline in Hyderabad property values

“In the future, there may be modest increases in property prices. But considering the robust underlying demand, a sharp decline seems improbable” said Thakur. “The future is generally bright for Hyderabad’s real estate market. Thakur went on, though, saying it’s vital to monitor developments in Andhra Pradesh alongside national market trends. 

The obstacles that lie ahead 

Hyderabad’s real estate market appears to have a bright future, but there are obstacles. There could be some business or resident out-migration to Andhra Pradesh, particularly if the state provides attractive incentives. According to Anarock Research, this may deter some investors from investing in Hyderabad, which could result in a brief correction in the city’s real estate values and a possible decline in the commercial real estate market. 

On the other hand, it might be challenging for businesses to expand into a new state due to the abundance of skilled labor and the city’s advanced infrastructure, which offers improved connectivity. It went on to say that although Hyderabad’s established infrastructure, thriving IT industry, and multiculturalism are unlikely to suffer significantly, the real estate market in the city will be impacted by Andhra Pradesh’s growth. 

According to Ritesh Mehta, Senior Director and Head (North and West), of residential services and developer initiative, JLL India, Hyderabad’s commercial real estate market is expected to grow despite the recent political developments because of the industry’s strong infrastructure, substantial IT presence, and large talent pool. The city’s enhanced connectivity and strategic initiatives make it an appealing site for businesses.” 

Hyderabad’s robust job market helps to maintain the city’s need for high-quality housing. He continued by saying that overall, it is anticipated that the residential and commercial real estate markets will continue to be robust. 

Everything about the property market in Hyderabad

The people of the nearby cities and towns are drawn to Hyderabad because it is the most accessible mega-cosmopolitan center for Telangana and Andhra Pradesh. The city provides opportunities for higher education, employment, entertainment, advanced healthcare needs, and shopping for special occasions, making it a preferred location for people from Andhra Pradesh. As a result, quite a few residents began purchasing properties in the adjacent state. 

Strong fundamentals are driving the real estate boom in Hyderabad. The study predicts that the city’s expanding infrastructure, general business ecosystem, and IT-ITeS sector will support the demand for premium residential and commercial real estate. 

The city’s diverse economy is not solely derived from the services sector. In addition to the healthcare and educational sectors, the city’s real estate market is driven by the industrial, manufacturing, and logistics sectors.  

Here are the reasons behind developers’ and buyers’ objections to the UP RERA model format for possession letters in Delhi-NCR real estate

Posted on by

According to the Uttar Pradesh Real Estate Regulatory Authority, developers can only give possession letters to buyers once they have obtained occupancy certificates from the development authorities. The regulatory authority has said that the model format has been prepared to protect homebuyers and prevent arbitrariness on developers’ part through the offer of possession. 

The offering possession model format has been rejected by both real estate developers and homebuyers. The deemed approval clause in RERA, states that if the authority does not respond to a request for occupancy or a completion certificate within a certain amount of time, the approval is automatically deemed to have been granted, which is something that builders want the authority to take into consideration when making their decision. 

Homebuyers believe that if the builders do not pay their bills, they will be the ones who suffer the most in any conflict between the government and the builders as a result of the ruling. The flats’ transfer would be further delayed as a result. 

According to which UPRERA order, what? 

Real estate developers are not permitted to include demand notices in possession letters, according to UPRERA’s directive. 

“The promoters use the name and language of an “offer of possession,” which confuses the allottees and carries some binding conditions, in their “final demand letter” and “final demand notice.” According to UP RERA  Chairman Sanjay Bhoosreddy, an “offer of possession” should only be intended for taking possession. 

Since any other letter format is invalid, we have provided a sample ‘Offer of Possession’ on the portal. This will clear up any misunderstandings among the parties involved and assist in resolving any conflicts that might arise, “Boosreddy continued. 

Following receipt of the project’s OC/CC (occupancy certificate/ completion certificate), the promoter will send a written offer of possession letter to the allottees’ registered email addresses and residential addresses via postal mail, as stated by the UP RERA. The allottees will also receive an SMS on their phones and mobile numbers. 

The promoter “should also display information at the project site and its head office in this regard,” according to RERA. 

“The  Regulatory Authority has uploaded a model format of Offer of Possession so that uniformity can be achieved in the language and purpose of this letter,” the statement continued, “keeping in mind the complaints received regarding the Offer of Possession letter issued to the allottees by the promoters and  the variety of formats of the letter.” 

The letter’s main goal about the “offer of possession” should be to extend an invitation to the allottee to transfer ownership of their unit. A promoter must indicate the remaining finishing work and the estimated duration if the unit is still to be built.

“If the allottee is liable in any way, it should be covered  by the Agreement for Sale  and substantiated by evidence.”  

Homebuyers disagree with the directive  

Homeowners point out that they are still suffering and paying both rent and EMIs in some legacy projects where the builder refuses to pay land cost dues or show up to get the occupancy certificate. 

The UP RERA Authority has not given thought to the possession issue. This is just an eyewash notification. The real issue with possession is that promoters force allottees to sign a declaration, indemnity bond, or other document stating that they are taking possession only after ensuring that everything is in order and that they will have no further claims against the promoter “said Abhay Upadhyay, president of the Forum for People’s Collective Efforts, an organization founded to address concerns raised by home buyers, particularly those about RERA. 

Furthermore, he said the use would be denied by an allottee who declines to sign such a document if he finds flaws in the apartment, the common areas, or the unfinished facilities and amenities. 

He notes that the Act stipulates that the promoters may only offer possession after receiving OC/CC, making it difficult to comprehend the reasoning behind this notification. 

“Instead of sending out a notice, action against promoters offering possession without obtaining OC/CC should have been taken, if the UP RERA Authority is receiving complaints from allotted to that effect. It is unreasonable to expect builders to follow this notice if they are not complying with the Act’s requirements. He queries. 

Second, it is customary for the final payment to be due at the time of possession. Therefore, if money is still owed to the builder, it makes no difference to allottees whether the demand notice is sent with the possession letter or not. He notes that the notification does not address the pointless issue of whether the demand– whether made in conjunction with or apart from a possession letter— is legitimate. 

The only requirement of this notification is that demand notices be sent separately. Since promoters cannot combine their demand notices with the possession letter, it could cause issues if they begin sending their last and final demand notices ahead of schedule. According to him, in that case, the allottee would wind up paying the full consideration amount without obtaining possession. 

Driving sustainability: The real estate sector is taking measures to address environmental concerns

Posted on by

The sustainability of India’s real estate sector, particularly in cities like Mumbai, Bengaluru, and Delhi NCR, is a growing cause for concern and scrutiny, especially issues like water scarcity and environmental degradation. Bengaluru’s water crisis is a stark reminder of the consequences of rapid urbanization and ineffective water management practices, prompting a rethinking of development strategies in other major cities. 

In Delhi NCR, a major real estate hub, there are concerns about the sustainability of development practices and their potential impact on water resources. However, leading developments are making noteworthy efforts to address these concerns and transition to more sustainable construction and operation models. 

One example is DLF, India’s largest publicly traded real estate developer, which has been at the forefront of sustainable construction initiatives. DLF has been able to recycle millions of liters of water per day by implementing zero-discharge water systems and sewage treatment plants, putting less strain on local water sources. Furthermore, DLF’s inclusion in prestigious sustainability indices such as the Dow Jones Sustainability Index demonstrates its commitment to environmentally responsible development. 

DLF is a pioneer in sustainable real estate development in India, as evidenced by our notable achievements. DLF, the only Indian real estate company to appear in the Dow Jones Sustainability Index for the past three years, demonstrated its commitment to environmental, social, and governance excellence. DLF’s flagship projects demonstrate its commitment to sustainability. Camellias, India’s first LEED Platinum-certified residential building, establishes the standard for environmentally conscious living. In addition, The Crest is the world’s largest LEED Platinum-certified residential building, demonstrating our commitment to sustainable construction. DLF has also achieved several firsts, including India’s first residential building certified as LEED Platinum by USGBC. 

Aakash Ohri, Jt Managing Director & Chief Business Officer, DLF, shared insights, saying, “Sustainability is deeply embedded in our operations.” Our sewage treatment plants recycle over 14 million liters daily, benefiting horticulture, secondary water usage, and lake replenishment while reducing reliance on groundwater. We prioritize greenery preservation by transplanting mature trees, ensuring that Gurgaon’s green landscape remains intact despite infrastructure development. We strive to set the industry standard for sustainability through innovative practices, community engagement, and responsible development, ensuring that our projects not only meet current needs. Our strategy emphasizes energy efficiency and sustainability throughout the design and management processes. DLF continues to lead the way in sustainable real estate, shaping a greener, more resilient future for future generations.

On the other hand, Bharti Real Estate is attempting to create a green supply chain by implementing a sustainable procurement policy and involving suppliers. The company is also adapting recommendations from the Taskforce on Climate-related Financial Disclosures (TCFD) and assessing its Physical and transition climate risks. 

“Improving sustainability in the real estate industry is critical. The industry has a significant role in increasing energy efficiency, lowering carbon emissions, and conserving natural resources. At Bahrti Real Estate, we have a set of clear and measurable objectives for our ESG Journey and developed a detailed plan to achieve them. We actively contribute to a greener future through responsible practices and innovative solutions. Our structures are designed and developed using sustainable materials, topsoil conservation techniques, energy efficiency maximization, water conservation techniques, waste management practices, and strict air quality monitoring, thus greatly reducing our environmental impact. As we work to bring our Worldmark portfolio assets online and operational, we plan to generate electricity from renewable sources by installing solar panels on the rooftops of our upcoming assets and entering into Power Purchase Agreements with the country’s leading renewable energy companies. We endeavor to ensure that we adopt green energy practices, minimize carbon emissions, and remain aligned with India’s goal of achieving Net Zero. Ravinder Arora, Director and Chief Operating Officer, Bharti Real Estate

Similarly, Signature Global India Limited has made significant strides toward promoting sustainability in the real estate industry. Signature Global has demonstrated a proactive approach to environmental issues by achieving IGBC Gold Ratings on multiple projects and collaborating with organizations such as the Council on Energy, Environment, and Water (CEEW). The collaboration with CEEW on the ‘Cleaner Air and Better Health’ project exemplifies a concerted effort to reduce air pollution from construction activities, highlighting the company’s commitment to sustainable development. 

Lalit Aggarwal, Co-Founder and Vice Chairman of Signature Global (India) Ltd., stated, “Signature Global has always taken a proactive approach to ESG.” Most of our projects are either EDGE-certified or IGBC gold-rated, demonstrating our dedication to the environment. We save approximately 52% of our water usage by implementing various optimum water use practices. These features include low-flow faucets and toilets, rainwater collection systems, and wastewater treatment and reuse facilities. The use of these techniques not only reduces our impact on local water resources but also increases the resilience of urban water systems. Signature Global recognizes the importance of sustainable practices in ensuring the long-term survival of our cities, and we are committed to continuing our efforts to conserve natural resources such as water, the elixir of life. 

The initiatives not only conserve water and reduce environmental impact but also highlight the financial benefits of sustainable practices, such as energy efficiency and cost savings for homeowners. Furthermore, the emphasis on worker self-regulation and behavioral changes demonstrates a comprehensive approach to addressing environmental challenges in the construction industry. 

While challenges persist, proactive measures taken by developers such as DLF and Signature Global are encouraging steps toward ensuring the long-term viability of India’s real estate sector, particularly in Delhi NCR. Continued collaboration among industry stakeholders, government officials, and environmental experts is critical to advancing these efforts and protecting urban communities’ environmental and social well-being. 

10 Things You Should Know About Election’s Impact on the Real Estate Sector

Posted on by

During general elections, the real estate sector tends to slow down; there are fewer launches, and investors prefer a ‘wait and see’ approach. However, end-users may not be directly impacted, as they may decide to purchase a house when they find the right project in the market and the best deal that suits their pocket. 

When uncertainty surrounds election results, real estate investors become cautious and anticipate potential policy changes. According to experts, there are fewer transactions and new launches during elections, and investors’ decisions may be influenced by market sentiment, share market performance, and even the impact of exit polls on markets. 

Elections 2019: The Impact on the Real Estate Market

During its first term (2014), the government accelerated infrastructure development by implementing major policy overhauls such as DeMo, RERA, and GST, amending old Acts such as the Insolvency and Bankruptcy Code and the Benami Transactions (Prohibition) Act, and launching schemes such as 100 Smart Cities, Housing for All by 2022, Make in India, and AMRUT  Cities.  According to experts, the last five years (beginning in 2019) have seen the overall impact of their implementation on the real estate sector.  

Also, during the 2019 elections, the primary and secondary markets slowed, and aspiring buyers and investors chose to wait and see. The momentum increased following the results, and buyers and investors were reassured of the government’s commitment to building new infrastructure. 

It should be noted that India’s residential real estate sector experienced a significant slowdown from 2016 to 2019. The major market shake-up caused by policy reforms between 2016 and 2017 led to the NBFC crisis after the IL&FS issue in 2018. This created significant turmoil in the residential real estate industry. 

According to Anarock Research, enough evidence suggests that housing sales and new launches may peak again in 2024. 

Price trends for the last three elections 

Examining price trends over the last three election years reveals that 2014 was better than 2019. According to ANAROCK data, average prices in the top 7 cities increased by over 6% in 2014, rising from Rs 4,895 per sq. ft. in 2013 to Rs 5,168 per sq. ft.  In 2019, average prices increased by only 1% per year, from Rs 5,551 per sq. ft. in 2018 to Rs 5,588 in 2019. 

Impact on Homebuyers 

While it is true that many prospective homebuyers are waiting for the elections to be over before making a purchase, experts point out that end-users will be unaffected by any such factor and will buy a home as soon as they find the right product on the market. 

Only investors will wait and see. Elections affect market sentiment but have little impact on end users. So, suppose a buyer finds a property that is populated. In that case, infrastructure has already developed, the price is right, and all of the fundamentals are in place, election or no election, he is obligated to buy it,” said experts. 

According to Anuj Puri, Chairman of the ANAROCK Group, elections frequently signal the end of fence-sitting and a confident move to ‘buy’ positions for homebuyers. 

The elections may impact markets where investors are the majority and speculators dominate. 

Investors who intend to make ‘aggressive’ real estate purchases may prefer a ‘wait and watch’ strategy, but homebuyers will continue to buy based on their needs. According to experts, an investor’s decision today may be influenced by market sentiment or the ‘feel good’ factor, capital market performance, and whether the new government’s emphasis on infrastructure development will continue. 

Elections also have an impact on builders. “During elections, the number of new launch announcements is often reduced because approvals may not be received due to the code of conduct. According to an unnamed developer, several projects in multiple categories, including mid-segment, affordable, and luxury, could be launched in the coming quarter. 

How will the election results affect the real estate market? 

A healthy absorption-to-supply ratio of 1.02 in 2022 rose to 1.17 in Q1 2024. According to the data shared by Anarock, controlled launches, and increasing sales, particularly in the high-end and luxury segments, have resulted in a drop in unsold inventory and a rise in prices. 

“The residential real estate segment will probably reach a new high in 2024. This also suggests that home buyers are optimistic about the real estate market’s performance,” Puri explained. 

Will there be an increase in the number of new launches after the 2024 elections? 

In recent quarters, the residential real estate market in the top seven cities has set several benchmarks. Quarterly launches in these cities used to total more than 80,000 units per quarter in 2022. In recent quarters, the residential real estate market in the top seven cities has set several benchmarks. Quarterly launches in these cities used more than 80,000 units per quarter in 2022.  However, it passed the 1 lakh unit mark last year, with launches exceeding 1 lakh in the previous five quarters. According to Anarock Research data, major developers have already acquired land for future development at a rate that is 125% higher than in 2021. 

As of March 2024, unsold inventory had dropped to less than 6 lakh units, with an inventory overhang of only 14 months, down from 21 months a year earlier. 

Will these new launches be in the middle, top, or affordable segments? 

Launches in the mid-segment and higher-end have dominated accounting for more than 55% of the total supply. It is also noticeable that the share of luxury and ultra-luxury segments is increasing, accounting for nearly 25% of the total supply as of Q1 2024. “The new launches will primarily target these segments,” Puri explained.

Signature Global (India) Limited’s founder and chairman, Pradeep Kumar Aggarwal, believes that future launches will span all segments. 

Will future housing prices be stable or increase? 

Reducing unsold inventory, sales exceeding supply, and rising input costs are the key ingredients that will likely drive prices in the future. “We have already seen annual price increases ranging from 10% to 32% in various cities,” Puri said.  

Should homebuyers decide whether to buy now or wait? 

Unless homebuyers are looking for a luxury or high-end product in their preferred location, built by a preferred builder, or with a specific layout, view, or orientation, the average homebuyer should carefully evaluate the available options and close the deal by negotiating for the best offer. 

Impact on Commercial Real Estate 

The country’s expected GDP growth of $3.5 trillion to $7 trillion by 2030 can be sustained without significant changes in circumstances. “This sustained economic expansion will increase India’s appeal to global corporations, cementing its position as a prominent hub for establishing Global Capability Centers (GCC) and manufacturing facilities. Knight Frank India Chairman and Managing Director Shishir Baijal said growth significantly impacts the construction sector and improves employability.

Rental housing and affordable housing 

A persistent decline in affordable housing demand is one of Baijal’s hopes for the new government. Keeping interest rates low and other enabling conditions can help achieve this goal. “We hope the government will take a closer look at the policy for affordable housing and provide more incentives to the supply side,” he told HT Digital. 

The Green Revolution is reshaping India’s property market

Posted on by

A significant shift toward sustainability is reshaping the trajectory of Indian real estate. The rise of green construction is more than a fad; it is a strategic move to foster an environmentally responsible and resilient real estate sector. The paradigm shift encompasses a variety of sustainable practices, including utilizing sustainable-friendly building materials and energy-efficient designs. 

Green construction is gaining momentum. 

The Indian real estate sector is undergoing a major shift, driven by rising demand for sustainable and energy-efficient buildings. The Indian Green Building Council (IGBC) reports a remarkable 20% annual increase in the green building footprint, indicating a significant shift toward environmentally conscious construction practices. This growth is driven not only by market demand but also by regulatory initiatives that promote green spaces. 

Economic incentives for green buildings 

Beyond its environmental benefits, green construction has significant economic benefits. According to the World Green Building Council, implementing green practices can result in a 7% reduction in operating costs, a 20% increase in asset value, and a 6% increase in return on investment. These financial incentives promote sustainable practices as both ethical and profitable, making green construction an appealing option for real estate developers.  

Increasing consumer awareness drives change. 

The growing awareness of environmental issues among Indian consumers is a major factor driving the rise of green construction. According to a Nielsen survey, 73% of Indian consumers are willing to pay a higher price for environmentally friendly products and services. This shift in consumer behavior has spread to the real estate industry, with homebuyers actively seeking eco-friendly features such as energy-efficient appliances, rainwater harvesting, and green spaces integrated into residential complexes. 

Regulatory impetus 

Government initiatives have a significant impact on India’s future of green construction. The introduction of certifications such as Leadership in Energy and Environmental Design (LEED) and the enactment of the Energy Conservation Building Code (ECBC) have contributed to advancing sustainable practices. The ECBC requires energy-efficient design and construction in commercial buildings, compelling developers to incorporate green building principles. 

Corporate commitment to sustainability 

Leading real estate developers in India understand the strategic importance of sustainable practices. Beyond mere compliance, businesses are including environmental responsibility in their strategies to attract environmentally conscious investors and tenants. In a ground-breaking move, some of India’s largest real estate developers have pledged to make all their projects carbon-neutral by 2030, setting an inspiring example for the industry. 

Showcasing success: case studies.

Green Building Principles have been applied to several well-known commercial development projects in India. The Infosys Mysore Campus is an excellent example of this. Infosys is a pioneer in implementing green building principles on its campuses. The Mysore campus is an outstanding example, with energy-efficient infrastructure, water conservation systems, and environmentally friendly landscaping. The campus has received several prestigious green certifications, demonstrating Infosys’ commitment to socially responsible corporate development. The Wipro Tech Park in Bangalore is well-known for its commitment to sustainability, and its Electronic City campus exemplifies this dedication. The campus uses energy-efficient technologies, waste management systems, and environmentally friendly building materials. It has received green certifications, demonstrating Wipro’s commitment to creating green responsible corporate spaces. Another example of sustainable green development is the ITC Green Centre in Gurgaon, a flagship commercial development that exemplifies green building techniques. It uses advanced energy management systems, water-saving techniques, and environmentally friendly materials. The project has received several green certifications, highlighting its contribution to sustainable corporate real estate in India.  

On the resident front, the House of Hiranandani in Chennai is a well-known residential development focusing on sustainability. The project includes green spaces, energy-efficient appliances, and water-saving initiatives. Its use of environmentally friendly materials and practices distinguishes it as an example of eco-conscious resident development. Furthermore, the Magicbricks Western Expressway Towers in Mumbai is another prime example of a residential complex with environmentally friendly amenities. This Mumbai residential complex is well-known for its environmentally friendly features and sustainable design. It includes rainwater harvesting systems, energy-efficient lighting, and solar panels. The project aims to reduce environmental impact while providing residents with a comfortable and sustainable living environment. 

Challenges and Opportunities

While the trend toward green construction is encouraging, challenges remain. Many developers are still concerned about the initial costs of implementing eco-friendly technologies and materials. However, the long-term advantages of operational savings and marketability frequently outweigh the initial costs. Furthermore, addressing the shortage of skilled workers trained in sustainable construction practices provides an opportunity for collaboration among government agencies, educational institutions, and industry stakeholders. 

Future Horizons: Creating a Sustainable Landscape. 

Green construction is becoming increasingly popular in India’s real estate industry, demonstrating the sector’s commitment to sustainable and responsible development. With a favorable regulatory environment, economic incentives, and rising consumer awareness, the transition to eco-friendly construction practices is expected to speed up. As the industry embraces green building principles, India is on track to not only meet its environmental goals, and become a global leader in sustainable real estate development. The green construction movement has grown significantly, with the potential to shape the future of Indian construction. The success stories of eco-friendly projects demonstrate that sustainability is more than just an ethical choice; it is also a path to long-term environmental conservation and economic growth. As the green revolution gains traction, Indian real estate developers have an excellent opportunity to incorporate sustainable practices, meeting the growing demand for environmentally conscious real estate and contributing to a greener, more sustainable future. 

Anarock reports a 57% decrease in unsold homes amid the NCR real estate revolution

Posted on by

Homebuyers in the Delhi NCR area are benefiting from the current market upswing, as the region has seen a  57% drop in unsold homes over the last five years, the largest decrease of any city in the country. 

According to a recent Anarock report, the number of unsold homes in NCR has steadily decreased from around 200,000 units at the end of the first quarter of 2018 to approximately 86,420 units by the end of the first quarter of 2024. During the same period, the main southern cities of Bengaluru, Hyderabad, and Chennai saw their unsold housing inventory fall from over 196,000 units in Q1 2018 to more than 176,000 in Q1 2024.  

Gurgaon now leads the list with a total unsold stock of 33,326 units, down 37% over the last five years, followed by Greater Noida, which had up to 18,668 units at the end of the first quarter. 

According to Pradeep Aggarwal, founder, and chairman of Signature Global (India), Delhi-NCR’s unsold inventory has decreased by 57%, from approximately 200,000 units at the end of Q1 2018 to approximately 86,420 units by the end of Q1 2024, with Gurugram playing a significant role in this positive trend. This will boost the NCR real estate market by instilling buyer confidence and improving market stability. Key contributors to this decrease include extensive economic growth, which increases purchasing power, and significant infrastructure development, particularly the expansion of metro lines and expressways such as the Dwarka Expressways, Southern Peripheral Road Sohna Elevated Road, Delhi-Mumbai Industrial Corridor, and upcoming metro lines. Proactive government policies and regulatory reforms, such as RERA, improve transparency in the real estate sector. Improved connectivity via expanded transportation networks makes distant areas more appealing, lowering unsold inventory stocks. This positive outlook is expected to encourage the creation of new premium and mid-range residential projects for discerning buyers and inventors.” 

However, Greater Noida’s supplies have decreased by a much higher percentage of 70% since Q1 2018. 

Overall unsold housing inventory in Ghaziabad fell to 11,011 units in Q1 2024, down from 37,005 in Q1 2018, representing a 70% reduction in five-year inventory. 

Noida had  7,451 unsold units at the end of the first quarter of 2024, down 71% from the same quarter in 2018 when there were 25,669 units. 

S.K. Narvar, chairman of Trident Realty, says, “The Delhi-NCR real estate market has undergone a tremendous transformation, with a 57% decrease in unsold homes over the last five years. This decline reflects a positive change in the local real estate landscape, indicating improved market stability and a more stable supply-demand situation. The city’s strategic approach to new supply additions has played a significant role in this transformation, resulting in restored buyer confidence and a healthier market environment. The determination of developers to manage new supply additions, combined with regulatory actions such as RERA and GST, have contributed to this optimistic trend. The decrease in unsold inventory indicates  strong demand, modern living preferences, and a bright future for the real estate sector in Delhi NCR.”  

Overall, the top three Southern cities of Bengaluru, Hyderabad, and Chennai trailed by 11% in unabsorbed stock. Unsold inventories have decreased by 8% in MMR and Pune in the region to the west. During the period under review, Kolkata, on the East Coast, experienced a significant decline in unsold inventory, which dropped by 41%. 

Ashish Sharma, AVP of Operations at Brahma Group, stated, “The real estate market in Delhi NCR has evolved significantly, resulting in a remarkable decline of approximately 57% of unsold residential properties in the last five years, highlighting the sector’s dynamism. Furthermore, NCR’s unsold stock fell from about 2 lakh units at the end of the first quarter of 2018 to 86,420 units by the end of Q1 2024. Additionally, regulations like RERA and GST have reduced the new supply developers offer in bringing buyers back into the market.  Furthermore, this positive trend will drive residential launches, including luxury projects, as the NCR’s demand for modern, luxurious, and integrated habitation spaces grows. It reflects the industry’s ability to adapt to changing market dynamics while meeting the rising expectations of discerning investors and buyers considering NCRR’s transformation process.” 

One of the reasons South India has been able to report a relatively low decline in unsold inventory is that supply has arrived at a rapid pace, particularly in Hyderabad, where new supply has been exceptionally high over the last two years. 

Finally, the NCR real estate market has undergone a significant shift, with a 57% decrease in collectively accumulated unsold housing inventory over the last five fiscal years. These reasons suggest that the development of the city’s economic growth, infrastructure, and government policies are among the key factors contributing to this significant decrease. As a result, Gurugram has emerged as a key market in India’s real estate market, attracting investors and end users. 

Why is residential real estate considered one of India’s safest investments?

Posted on by

The Indian real estate market experienced an unprecedented surge in 2023, outperforming all expectations and setting new records. Buyers are increasingly prioritizing homeownership over rental arrangements. 

As we navigate recent times, the Indian residential real estate market has emerged as a beacon of security for investors, allowing the housing market to shine for those seeking stability and growth. In 2023, the Indian real estate market experienced an unprecedented surge, far exceeding expectations and setting new records. Buyers are increasingly prioritizing homeownership over rental arrangements. 

It is expected to have a  promising 2024 as the month progresses, and in India’s ever-changing investment landscape, residential real estate stands out as a pillar of strength and dependability. What is the situation in 2024? As we navigate through recent times, the Indian residential real estate market is emerging as a beacon of security for investors, making the housing market shine for those seeking stability and growth. The Indian real estate market witnessed an unprecedented surge in 2023, surpassing all expectations and setting new records. Buyers are now placing a greater emphasis on owning a home rather than opting for rental arrangements.

It is expected to have a promising 2024 as the months go by, and in the ever-evolving landscape of investment opportunities, residential real estate in India stands tall as a pillar of strength and reliability. What is the situation in 2024? All factors indicate that it is a safe investment compared to other asset classes. 

Residential real estate is resilient 

Despite the challenges posed by the global financial crisis in recent years, India’s residential real estate sector has proven remarkably resilient. Early indications suggest that 2024 will be a promising year for the industry, with increased demand, particularly in urban areas with high development and infrastructure trends. India is positioned at the forefront, and this growth has been attributed to strong economic indicators and consistent demand, creating a positive sentiment among key contributors. 

Affordability and Availability of Luxury Homes 

Indian homebuyers have become more aspirational, seeking to live a luxurious lifestyle. According to a study, residential real estate will remain affordable while increasing threefold by 2024. The real estate sector has grown steadily due to continued urbanization, rental market expansion, and price appreciation. The repo rate cut is expected to be within the normal range, allowing home prices to remain affordable for buyers for an extended period. Metro cities like Bangalore would see affordable luxury, while people could purchase homes regularly. 

Urbanization and increased affordability. 

The Indian real estate sector is undergoing significant transformation, owing largely to the explosive growth of the country’s middle class and rapid urbanization, which is driving demand for affordable luxury housing in tier-1 cities. This segment is the foundation of India’s real estate market and is expected to grow further. The rise in incomes and demand for housing in urban areas has resulted in a massive urbanization process, which is the primary cause of urban India’s growth. 

Breakthrough performance 

The real estate market has been the primary driver of India’s growth story. Not only was the country’s economy the fastest growing, but real estate indicators were also at record highs. In retrospect, 2023 began with global inflation that threatened a full-fledged recession. Despite rising inflation, the real estate market performed well this year. A strong finish was seen across the cities, with Bengaluru leading the pack. The figures were unimaginable in the past, indicating strong expansion-driven growth. 

A thriving outlook. 

As the market prepares for a significant leap this year, there is an increase in demand for residential properties. It has become clear that property markets in India have grown significantly, with an increase in new launches and property sales. Fueled by overwhelmingly high sales and a thriving luxury segment, this instills confidence in developers, driving a supply pipeline and establishing major metropolitan cities as rapid real estate consumers. This promotes economic growth, stable interest rates, and a shift in public perception of property ownership, resulting in property ownership serving as a financial safety net. 

The Indian real estate sector, which is central to the economy and supports a variety of industries, is poised for continued growth. A strong economy, urbanization, rising incomes, government initiatives, and increased demand for various properties indicate a bright future. With a promising outlook, it remains one of the most secure assets for investors to hold in the future. 

Goa’s transition from tourist destination to luxury real estate haven

Posted on by

Goa, once known for its sandy beaches, vibrant nightlife, and as a popular tourist destination, is undergoing a remarkable transformation. This coastal paradise is now an appealing option for wealthy Indians investing in luxury real estate, transforming it from a vacation destination to a prestigious investment haven. 

The Change in Investment Motivations 

Lifestyle upgrades have traditionally fueled real estate investments in Goa. Buyers were primarily drawn to the region’s picturesque landscapes, laid-back lifestyle, and distinct cultural blend. However, recent trends point to a significant shift in investor motivation. Capital appreciation has now surpassed lifestyle and distinct cultural blend. However, recent trends point to a change in investor motivation. Capital appreciation has now surpassed lifestyle as the primary driver of real estate investment in Goa. This shift represents a broader return of investors to the market, fueled by the prospect of high returns on investment. 

Why go to Goa? 

Several factors contribute to Goa’s growing importance as a real estate hotspot. 

  1. There is a strong intrinsic appeal to Goa, despite capital appreciation. The picturesque coastline, lush greenery, and serene environment continue to attract buyers seeking a peaceful and luxurious lifestyle. 
  2. Economic Growth and Infrastructure Development: Goa’s economy has been steadily growing, supported by improvements in infrastructure. Enhanced connectivity through new highways, and bridges, and the development of a second international airport in Mopa have made Goa more accessible, further boosting its real estate market. 
  3. Regulatory Support: The state government’s pro-investment policies have helped to attract high-end real estate investors. Investment in Goa has become more accessible thanks to streamlined processes and developer incentives. 
  4. High Returns on Investment: Goa has significant capital appreciation potential. Properties in prime locations have appreciated significantly over the years, making them an attractive option for investors seeking high returns. 

The Boom in Luxury Real Estate 

The luxury segment of Goa’s real estate market has grown particularly well. High-net-worth individuals and celebrities are increasingly investing in luxury properties. Luxury real estate in Goa is in high demand, and choices vary from opulent villas with beachfront views to high-end apartments in gated communities. 

Developers are capitalizing on this trend by launching exclusive projects tailored to the tastes of the elite. These properties frequently feature cutting-edge amenities such as private pools, landscaped gardens, advanced security systems, and personalized services, which comply with global luxury living standards. 

Long-term Investment 

 Property in Goa is not only luxurious; it also represents a long-term investment. Three strict environmental regulations balance economic development with environmental preservation in the region. As a result, Goa’s natural beauty is protected and its property values are raised in the long run. 

Goa’s transformation from a tourist destination to a luxury real estate haven is a testament to its enduring allure and evolving market dynamics. As capital appreciation becomes the mainstay of investment motivations, Goa continues to attract the country’s wealthy promising both lifestyle upgrades and high returns on investment. 

A premier destination where natural beauty meets modern luxury, Goa stands out as an unbeatable investment choice in this evolving landscape. 

Mumbai Real Estate Deal: 360 One founder purchases two luxury apartments for over Rs 170 crore

Posted on by

Karan Bhagat, founder and CEO of 360 One (formerly IIFL Wealth & Asset Management), has purchased two sea-view properties in Oberoi Realty’s Three Sixty West project in Mumbai’s posh area Worli for over Rs 170 crore, according to documents accessed by Zapkey. 

The two apartments measure 12,896 square feet and are located on the 45th and 46th floors of the Three Sixty West project. 

Bhagat bought an apartment on the 45th floor for Rs 85.03 crore. The apartment has an area of 6448 square feet and four car parking spaces. The documents state the transaction was registered on May 22, 2024. 

The second apartment, on the 46th floor, is 6448 square feet and includes four parking spaces. Bhagat paid Rs 85.03 crore for the property, as per the documents. 

The documents show Bhagat paid over Rs6.44 crore in stamp duty to register the two luxury units. 

Bhagat purchased the apartments directly from Oberoi Realty, who sold them within three years of acquiring them from joint venture partner Sahana Group. Bhagat’s apartments are among the more than 60 units acquired by Oberoi Realty from project developer Oasis Realty. 

Emails were sent to Bhagat and Oberoi Realty. 

Oberoi Realty paid Rs 230.55 crore for a luxury penthouse at Three Sixty West in Mumbai’s posh Worli area on February 12, 2023. The company has reportedly acquired approximately 30,000 square feet through its affiliate RS Developers, making it one of the largest single deals in India. 

According to a regulatory filing, Oberoi Realty’s shareholders approved the acquisition of Oasis Reality’s Three Sixty West residential premises for up to Rs 4,000 crore in December 2022. Stamp duty and other expenses totaled Rs 204 crores. Oasis Reality has discharged  Rs 605 crore of its income tax liabilities. 

Kiran Gems promoters paid Rs 97.4 crore for a 16,000 sq ft sea-facing apartment at Oberoi 360 West in Mumbai, according to documents accessed by Zapkey.

 According to documents, the apartment measured 14,911 square feet (Rera carpet) and included 884 square feet of additional space.

In 2023, Welspun Group chairman BK Goenka purchased a penthouse in the same luxury project at Worli for Rs 230 crore, making it the second-biggest transaction in the city last year. The penthouse is located on Tower B’s 63rd floor and has a carpet area of 29,885 square feet. 

Madhav Prasad Agarwal of Sajjan India Group and IGE (India) Pvt Ltd bought two apartments in the Oberoi Realty luxury project in 2022 for Rs 151 crore and Rs 153 crore, respectively. The deal was among the top 10 real estate deals of the year. 

In 2023, Mumbai experienced an increase in high-end transactions after the finance minister removed the capital gain tax benefit for property sales above Rs 10 crore. 

In 2023, Sumir Chadha, co-founder and managing director of the private equity firm WestBridge Capital, purchased a luxury apartment on the 60th floor of the Oberoi Three Sixty West project in Worli for Rs 96.12.  

Last year, Everest Masala Group founder Vadilal Shah’s family purchased two apartments in Mumbai’s Oberoi Three-Sixty West project for Rs 143.50 crore. One apartment cost Rs 73.50 crore and the other Rs 70 crore. These luxury apartments include multiple parking spaces. 

In October 2023, Asha Mukul Agarwal, director at Param Capital Research Pvt Ltd, a leading capital market trading and investment firm, purchased three apartments in Lodha Group’s luxury project Lodha Malabar in South Mumbai for Rs 263 crore. 

D Mart owner Radhakishan Damani’s immediate family and close associate purchased 28 apartments in Three Sixty West’s Tower B FOR rS 1,238 CRORE IN 2023.  

Oberoi Realty’s Three Sixty West project consists of two towers: Tower A, with 66  floors and apartments, and Tower B, with 90 floors and 256 units, including 4BHK, 5BHK, and duplex configurations. It also includes two penthouses of 11,036 square feet each. 

The name for the sea-view project is most likely derived from its 360-meter height and the fact that all apartments face west. It is a ready-to-move-in ultra-luxury housing project. 

According to the MahaRERA portal, the Three Sixty West project is registered in the name of Oasis Reality as a promoter, with four promoters: SkyLark Buildcon Pvt ltd, Shree Vrunda Enterprises, part of Sudhakar Shetty’s Sahana Group, Oberoi Constructions Ltd and Astir Realty LLP, both promoted by Vikas Oberoi. 

Luxury residential housing sales increased by 151% in the January-March quarter of 2023, with Mumbai growing by 44% year on year and Delhi-NCR rising by 216%, according to the ‘India Market Monitor Q1 2023’ report released by CBRE South Asia Pvt ltd, a leading real estate consulting firm. 

In April 2024, 11,504 units were registered in Mumbai, a 9% increase from the previous year and contributing over Rs 1,043 crore to the state exchequer. According to data from the Maharashtra government’s Department of Registrations and Stamps (IGR), revenue from property registrations rose by 16% year on year (YoY) compared to the same period last year. 

Real estate is as safe as houses for FDI

Posted on by

Foreign Direct Investment (FDI) is a major driver of economic growth and a significant contributor to the expenditure that fuels the country’s development goals. The real estate industry is a cornerstone of the economy, employing the second-largest number of people after agriculture and having a multiplier effect on 270 other sectors. Forecasts for growth predict that it will reach USD 1 trillion by 2030. 

Foreign investment has increased significantly as the industry transforms. Certain sectors are currently barred from receiving foreign direct investment via automatic or government-approved channels. The real estate industry is one such sector. A real estate business is any entity that engages or intends to engage in real estate business, farmhouse construction, or trading in transferable development rights. FDI is not permitted in such organizations. 

However, the real estate business excludes the development of townships, building homes and commercial buildings, roads, bridges, and real estate investment trusts (REITs) governed by the Securities and Exchange Board of India (Real Estate Investment Trusts) Regulations 2014. FDI is thus not permitted in businesses that deal in land or immovable property solely for profit.

However, township development, construction of residential and commercial buildings, roads and bridges, educational institutions, hospitals, resorts, hotels, recreational facilities, city and regional-level infrastructure, townships, real estate broking services, and the earning of rent or income on leases of property that do not amount to transfer are not considered real estate business, and FDI is not prohibited. 

Where permitted, FDI is permitted up to 100% via the automatic route. Non-residents can invest in equity shares through compulsory and mandatory convertible debentures through FDI. Foreign direct investment (FDI) can be made in an Indian company’s fully compulsory and mandatory convertible preference shares via the automatic route, which requires no government approval. However, depending on the investment vehicle and industry in which the Indian company operates, both investors and the company may be required to report under the Foreign Exchange Management Act of 1999. They must also follow all relevant laws, regulations, and rules. 

FDI in construction development projects by automatic means is subject to certain conditions. A foreign investor may withdraw and repatriate their investment before the completion of a project or after the development of critical infrastructure such as roads, water supply, street lighting, drainage, and sewerage (trunk infrastructure), provided that a three-year lock-in period has expired. This lock-in does not apply to specific projects such as hotels, tourist resorts, hospitals, special economic zones, educational institutions, old-age homes, and non-resident Indian investments. All projects must adhere to applicable regulations, including land use requirements and community amenities, as laid out by the appropriate agency. The Indian company must obtain all necessary approvals from the relevant authorities and can only sell developed plots with pre-existing trunk infrastructure. 

According to the Department for Promotion of Industry and Internal Trade, real estate-related activities attracted USD 4.026 billion in foreign direct investment from April to December 2023. USD 185 million came from building townships, housing, infrastructure, and other construction projects. Real estate activities attracted USD 60.07 billion in FDI from April 2000 to December 2023, accounting for 9% of total FDI. FDI in the real estate sector has increased due to policy easing, significant growth in the property technology sector, strong demand for high-quality office space, and the emergence of alternative investment vehicles such as REITs.

The real estate market has grown significantly over time. The ever-increasing urban population has driven up demand for residential and commercial development. International investors have contributed capital and implemented global best practices. These have raised the quality of planning, construction, and design. There is a strong and resilient real estate market that attracts both domestic and international investors. It continues to draw domestic and international investors due to its strength and resilience. 

Boney Kapoor’s consortium outbids Akshay Kumar to build a 230-acre film city in Noida with a cinema museum and university

Posted on by

After months of delays, a consortium led by filmmaker Boney Kapoor won the bid to build the 230-acre Noida film city. 

A consortium led by film producer Boney Kapoor has outbid others led by actor Akshay Kumar and producer Bhushan Kumar to build Noida Film City, which will span 230 acres along the Yamuna Expressway. According to a Times of India report, the film city will include a firm university, a cinema museum, and a helipad, among other facilities. It is just  6 kilometers from the upcoming Noida International Airport. 

The final four bidders 

The greenfield project was presented to Uttar Pradesh government officials in June by Super Cassettes Industries Private Limited (T-Series), Supersonic Technobuild Private Limited (Dinesh Vijan’s Maddock Films, Akshay Kumar’s Cape of Good Films LLP, and others), Bayview Projects LLP (backed by Boney Kapoor, real estate company Bhutani Group, and Noida Cyber Park), and 4 Lions Films Private Limited (backed by filmmaker KC Bokadia and others).

The project is being developed using a public-private partnership (PPP) model. Bayview Projects LLB emerged as the company with the highest revenue share to the state government and thus was chosen as the greenfield project developer. The project’s bid was released on September 30, 2023, with a closing date of January 5, 2024. The bid for the development of Film City was floated for the third time in June, following two previous attempts that failed to attract investors. 

Bayview  Projects LLP will sign a concession agreement with the Yamuna Expressway Industrial Development Authority in June to take possession of the land. It will have six months from the signing of the contract to start construction. 

Noida Film City 

The Noida Fim City, a pet project of Uttar Pradesh Chief Minister Yogi Adityanath, is planned as an international project spanning over 1,000 acres (230 acres in the first phase) along the Yamuna Expressway. The project is located in Sector 21 of the Yamuna Expressway Authority, 6 km from the Noida International Airport. 

Of the 230 acres, 155 are reserved for the core film industry, and 75 acres are set aside for commercial development. The Film City will feature amenities such as a cinema museum, a film university, and a helipad, among others. 

Colliers report that foreign investors invest more than $4 billion in Indian real estate each year

Posted on by

Foreign inflows rebounded in 2023, rising 20% over the previous year to $ 3.6 billion. These investments went beyond traditional channels, expanding into alternative asset classes and supporting the strong growth in the domestic office, residential, and industrial segments. 

A favorable investment environment and rapid urbanization have established India as an attractive investment hub in the Asia-Pacific area because of its robust economy. 

As a result, numerous new funds are actively considering the market, while established global and sovereign funds such as Mubadala, Mitsubishi Fudson, PAG Credit & Markets, Cadillac Fairview, Korea Investment Corp, and PNB Malaysia are either increasing their investments or forming new collaborations to capitalize on the Indian market’s burgeoning opportunities. 

“2024 is expected to be a more dynamic year for both the Asia Pacific real estate markets and capital in the region, which will remain the dominant investor in global real estate. “The ability to act quickly, dig deeply into markets and sectors to identify value, and form productive partnerships will be critical to capitalizing on the region’s diversity and increased opportunity,” said Chris Pilgrim, Collier’s Managing Director of Global Capital Markets, APAC. 

Strong economic resilience, a favorable investment environment, and rapid urbanization have made India a highly desirable investment destination for international funds. 

With the International Monetary Fund (IMF) forecasting 5.7% GDP growth by 2024, India remains one of the world’s fastest-growing economies and a top choice among emerging Asia-Pacific (APAC) nations. Its appeal stems from attractive pricing, superior valuations, and promising yields for investors looking for profitable opportunities. 

Foreign inflows rebounded in 2023, rising 20% from last year to $3.6 billion. These investments went beyond traditional changes, expanding into alternative asset classes and bolstering the strong growth in the domestic office, residential, and industrial segments. 

New funds are expected to enter the Indian market shortly, maintaining investor interest. The residential, industrial, and alternative sectors expect renewed interest and income-generating office properties. 

“Investments in Indian real estate have been consistent in recent years, and they are likely to grow further as demand for capital changes structurally. Global investors have always been at the forefront, investing an average of $4 billion annually for the last five years, demonstrating their continued commitment and confidence in the sector. With an increase in performance credit, special situations, portfolio acquisitions, asset reconstruction, and related structures, the sector is expected to attract even more investment in the coming years,” said Piyush Gupta, Managing Director, Capital Markets & Investment Services at Colliers India. 

APAC countries show increased interest in Indian real estate. 

While the United States and Canada remain primary sources of capital, prominent APAC countries such as Singapore, Hong Kong, South Korea, and Japan are increasingly focusing on India’s burgeoning real estate sector. In 2023, investment inflows from the APAC region increased by 57% annually to $ 1.8 billion, with office assets accounting for 70%. 

Aside from office properties, APAC countries have shown interest in residential, industrial, and warehousing assets. The volume of investments has nearly doubled since 2019, indicating a significant increase in investor enthusiasm and confidence in India’s real estate sector. 

Looking ahead to 2024, investors are likely to become more involved in India’s real estate sector. This urge is driven by the country’s strong economic growth, favorable business conditions, and rising demand in numerous industries. The expectation of increased activity indicates confidence in the policy landscape, a narrowing gap between buyers and sellers, and investors’ eagerness to allocate more capital across various real estate asset classes. 

“In 2023, foreign investors accounted for 90% of all investment inflows into India’s office sector, demonstrating the strength of the underlying asset class. The industry is currently transforming. Furthermore, as sustainability becomes more important in investment decisions, the real estate sector, including India’s office market, is poised to align seamlessly with global Environmental, Social, and Governance (ESG) standards,” said Vimal Nadar, Senior Director and Head of Research at Colliers India.