Author Archives: supriya

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

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

Virtual Reality Home Tours: A Growing Trend in Real Estate 

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

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

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

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

The Technological Developments Enabling Everything 

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

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

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

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

VR-Powered Real Estate Showings and Their Consequences 

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

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

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

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

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

Possible Difficulties with VR for Sellers and Buyers 

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

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

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

The Prospects for VR Home Tours in the Real Estate Industry 

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

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

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

Mumbai-The way micro markets are defining real estate

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

The case 

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

As  prestige estate projects  proliferate

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

Financial Benchmarks 

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

Vision and Spirit of Entrepreneurship

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

Growth and Originality 

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

Family Involvement and Legacy 

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Global diversification 

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

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

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

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

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

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

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

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

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

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

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

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

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

Gudi Padwa provides.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

The buyers will receive the first phase in 2027. 

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

The business has finished 40 projects to date. 

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Global diversification 

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

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

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

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

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

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

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

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

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

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

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

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

Residential sales 

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

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

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

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

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

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

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

Office Demand 

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Purchasing a home with greater accessibility 

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

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

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

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

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

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

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

This is the Bengaluru housing sales data stacked up. 

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

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

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

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

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

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

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

How connectedness fuels the expansion of real estate

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

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

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

The Growth of Telecommuting and Digital Nomadism 

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

Getting to Transit Hubs 

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

The Revolution of Coworking 

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

Smart City Coordination 

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

Opening the Door for New Property Values and Amenities

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

Aspects and Sustainability

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Mumbai comes in first place. 

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Infrastructure upgrades enable peaks in spiritual tourism. 

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Is it possible for someone to sell a joint property? 

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

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

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

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

What separates co-ownership from joint ownership of a property 

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

From light to heavy assets 

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

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

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

Land availability

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

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

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

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