The real estate sector will see positive changes in the budget for 2024

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This budget’s extensive measures demonstrate the government’s dedication to the real estate industry’s overall growth, which makes it a major driver of the country’s economic expansion. 

The Finance Minister, Nirmala Sitharaman, unveiled the 2024 Union Budget, which includes some ground-breaking initiatives expected to have a big effect on the real estate market. These programs provide the industry with much-needed support and cover affordable housing, infrastructure development, and urban planning.

Affordable Housing Initiatives

One crore low- and middle-class families will have the housing requirements met by the PM Awas Yojana-urban 2.0. This large-scale project will increase building activity and benefit developers and construction firms operating in the affordable housing market. Furthermore, over the next five years, the budget has set aside a sizeable Rs 2.2 lakh crore for urban housing. This increased funding will attract more capital into the urban real estate market by expediting housing projects, improving city life, and improving urban infrastructure.

Emphasis on Industrial Laborers

The budget suggests PPP (Public Private Partnership) rental housing with dorm-like accommodations to meet the housing needs of industrial workers. In addition to generating new opportunities for real estate developers specializing in rental and affordable housing, this initiative is anticipated to support industrial growth and stability in labor-intensive sectors.

Encouragement of Industrial and Urban Growth 

One notable step in encouraging real estate growth in these areas is to create an industrial hub that includes Gaya along the Amritsar-Kolkata Industrial Corridor. This will improve connectivity and economic activity while increasing demand for residential and commercial real estate. In addition, the development of mixed-use properties surrounding transit hubs will be encouraged by transit-oriented development plans for 14 major cities with populations greater than 30 lahks, to enhance urban [planning and spur real estate activity. 

Infrastructure Investment 

The budget’s plan to construct “plug and play” industrial parks in or near 100 cities will attract industrial investments, increasing the market for industrial real estate. This program encourages residential development and growing services in these areas.

Travel and Cultural Advancement

The world-class pilgrimage and tourism destinations that the Vihnipad and Mahabodhi Temple Corridors will soon offer will stimulate the tourism and hospitality industries and increase demand for commercial real estate, including lodging, dining establishments, and retail stores. An increase in the region’s cultural and educational significance will result from the revitalization of Nalanda University and its development as a tourist destination, drawing investments in learning infrastructure and associated real estate projects.

Rural Development and Connectivity 

Enhancing connectivity in rural areas will encourage rural development and make these areas more accessible for investments. Phase IV of the PM Gram Sadak Yojana will be launched in 25 rural habitations. As the infrastructure improves, these areas will likely see a rise in real estate activity. 

Long-Term Loans Without Interest 

Real estate markets will benefit from the budget’s allocation of Rs 1.5  lakh crore in long-term, interest-free loans to states for infrastructure creation. These loans will improve connectivity and amenities. As a result, areas will attract more investment from businesses and homeowners. 

Overall Impact of Budget on the Real Estate Market  

The 2024 budget’s focus on housing, infrastructure development, and urban planning is anticipated to accelerate the real estate sector’s expansion. The budget seeks to establish a more equitable and inclusive growth environment by attending to the needs of multiple segments, such as industrial workers, affordable housing, and urban infrastructure projects. The budget seeks to establish a more equitable and inclusive growth environment by attending to the needs of multiple segments, such as industrial workers, affordable housing, and urban infrastructure projects. In the upcoming years, real estate developers, investors, and stakeholders can anticipate more opportunities and a supportive policy environment.

The government’s commitment to the real estate sector’s overall growth is evident in the numerous initiatives included in this budget, making it a key engine of the nation’s economic growth. 

The elimination of indexation benefits in real estate will discourage secondary market sellers

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The real estate industry warned that eliminating indexation benefits for long-term capital gains would stunt its expansion, negatively affecting property owners and potentially increasing taxes. While experts thought low returns could still be a problem, authorities disagreed, citing high real estate returns. Leaders in the industry felt that the lower long-term capital gains tax rates would help new investors. 

The government’s proposal to eliminate indexation benefits for long-term capital gains in real estate has raised concerns among the real estate industry about how it stunts the industry’s expansion.

Property owners who have held their assets for more than ten years will likely be greatly impacted by removing the indexation benefit for long-term capital gains in real estate. Heritage homeowners might pay more in taxes when they sell because they cannot adjust the cost basis of their properties for inflation. After all, indexation is not in place. “The change may result in higher taxes for individuals who wish to sell assets held for more than ten years,” says Niranjan Hiranandani, Chairman of NAREDCO

A flat 12.5% tax on capital appreciation on the sale of a property, with no indexation benefits, has been proposed in the budget for 2024-2025.

The income tax department, however, disagrees with Hiranandani’s viewpoints. The Income Tax Department refuted the claim that people will pay higher taxes on profits from house sales on social media on Wednesday. The department based this on the idea that nominal real estate returns are typically between 12 and 16 percent annually, significantly higher than the inflation rate, 4 to 5 percent.

Real estate leaders concur that the new regime might be more effective when there is greater capital appreciation due to growth factors, a bullish economy, and a simplified tax structure.

However, real estate experts have clarified that the Income Tax department’s clarification that real estate returns are typically higher than the inflation rate is also not true in absolute terms.

Eliminating the indexation benefit for real estate sales will discourage sellers in the secondary market because of higher taxable capital gains, even if there is a lower LTCG (Long Term Capital Gains Tax) tax rate. However, it will not have an impact on first-time homebuyers. According to Ritesh Mehta, Senior Director/Head, North, East & West, Residential Service, India JLL, “the consistent growth of Reddy Reckoner rates across cities ensures no increase in unaccounted money in real estate transactions.”

New investors who hold properties longer than two years will still benefit from the lower long-term capital gains tax, which could make short-term investments more attractive.

The income tax department also stated that simpler tax computation, filing, and record-keeping compliance are advantages of streamlining any tax structure. The new proposal also eliminates the various rates for many asset classes. 

Triplexes and duplexes are becoming more common in the ultra-luxury real estate market

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Mumbai’s wealthy citizens, who seek forward-thinking and upward-looking homes, prefer a novel idea of ultra-luxury living. In Mumbai, duplex and triplex apartments redefined the definition of living in luxury.

Duplex and triplex apartments are becoming increasingly popular in Mumbai’s ultra-luxury residential market; they bring back memories of the bygone era when sprawling bungalows typified luxury living in this megacity. Mumbai’s wealthy citizens, who seek forward-thinking and upward-looking homes, prefer a novel idea of ultra-luxury living.

This change in the real estate market is especially noticeable in affluent areas like Worli, Bandra, Borivali, and Malabar Hill, where quiet neighborhoods provide an amazing setting for these lavish residences. These dwellings stand in stark contrast to the conventional horizontal ones. Large families will find plenty of room and privacy in these vertically designed spaces.

To put things in perspective, duplexes normally have two stories connected by an internal staircase or elevator, whereas triplexes have three stories connected by an internal staircase or elevator. The numerous bedrooms and living spaces on each floor add to the feeling of luxury and exclusivity.

Imagine a living area that is two stories high with a ceiling that reaches 24 feet. It gets a boost from wide balconies and terraces. Luxurious modern living is available to inhabitants of these architectural wonders, perched high above the busy city. These belong to the ultra-luxury housing market, which is currently very active. A discriminating group of purchasers is driving the demand for such opulent homes. High-net-worth individuals (HNIs) and NRIs are driving the hunt for luxurious real estate showcases of distinction. For these buyers, duplexes and triplexes provide opulent living quarters and are excellent investment opportunities. These opulent residences are affordable for a limited number of people, with starting prices as low as Rs 12.5 crore and prices that can reach over Rs 100 crore.

Duplexes and triplexes are becoming more and more popular as real estate investments that offer luxurious lifestyles and significant returns on investment. The emphasis has shifted to vertical expansion as redevelopment projects have sprung up throughout Mumbai, many of which are limited to small land parcels. Additionally, even in locations that have little room for horizontal development, developers now have the option to include duplex and triplex units.

These spacious residencies appeal to more people than just the wealthiest NRIs or conventional luxury buyers. A new customer demographic is developing, keen to modernize and reflect sophistication and finesse in their lifestyle choices. This change suggests that luxury in Mumbai is more about the caliber and distinctiveness of the living experience provided by the buyer’s chosen neighborhood rather than being restricted to particular regions.

Luxury duplex and triplex units with a sea view are 10% to 15% more expensive because of their stunning views. Homebuyers seeking an opulent lifestyle have a strong preference for these units. Despite their high prices, the appeal of living in a sky duplex or triplex with large, open areas and abundant amenities keeps affluent buyers interested.

Mumbai’s performance on the international scene is also a reflection of the growing demand for ultra-luxury real estate. Mumbai made a spectacular ascent from 37th place in 2022 to 8th place in 2023 on Knight Frank’s  Prime International Residential Index (PIRI). This places  Mumbai firmly among the top 10 leading luxury residential markets and shows an impressive 10% year-over-year growth in annual luxury residential prices. 

Upmarket is extremely sought-after due to several factors, including the dynamically shifting nature of the market, intense pricing competition, and government initiatives aimed at promoting greater transparency. The demand for ultra-luxurious residential properties has significantly increased due to India’s rapid modernization and urbanization. The emergence of duplex and triplex residences in Mumbai’s ultra-luxury real estate market bears witness to the city’s changing goals, as can be observed upon closer examination.

Attracting the most affluent and discriminating buyers, these vertical living spaces offer an unmatched blend of luxury, space, and height. As long as buyers are drawn to vertical homes, Mumbai’s luxury living standards will be redefined, eventually elevating these multi-level residences to new heights of elegance and sophistication. 

Mumbai Rains: During the monsoon, the walk-in homebuyer’s activity slows down, impacting housing transactions

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The real estate industry in Mumbai has suffered the most as a result of the heavy rains and the numerous cases of waterlogging that have been reported. Real estate experts claim that between July and August, during the monsoon, walk-ins are significantly lower, and real estate transactions are relatively lower. The Ganesh festival heralds the beginning of the holiday season, causing a surge in the Mumbai real estate market.

“Compared to other quarters of the year, housing sales typically decline during the monsoon season (July-September). This has less to do with a real decline in demand and more to do with potential homeowners’ incapacity to visit possible properties during rainy seasons, which significantly impair Mumbai’s mobility” said Rajkumar Singh, Head of Residential Services (West), ANAROCK Group, a real estate consulting firm. 

Additionally, many people wait to buy a house until the holiday season, which falls between October and December and is thought to be the most auspicious time to do so. Considering past data trends, Singh said the fourth monsoon quarter (July-Sept) 2019 has the lowest sales of the four.

Statistics show that in the main market of the Mumbai Metropolitan Region (MMR), sales reached 17,180 units in Q3 of 2019 compared to 24,000 units in Q1 of 2019, roughly 21,630 units in Q2, and more than 18,320 in Q4.

Comparatively, in MMR in Q1 of 2022, 29,130 homes were sold during the post-COVID-19 pandemic period; in Q2, 25,785 homes, 26,400 homes, and in Q4, 28,148 homes.

A real estate consulting company called Knight Frank India shared data regarding property registrations, showing 31,836 property registrations in Mumbai in the first quarter of 2023, 30,656 in Q2, 31,817 in Q3, and 32,598 in Q4.

Due to pent-up demand and an uptick in the Mumbai real estate market’s real estate cycle, the trend of fewer transactions during the monsoon season did not continue after COVID-19. 

Though fewer transactions were closing during the monsoon season, which runs from July to August, real estate brokers did notice this.

Mumbai real estate values are impacted by flooding

Real estate advisors claim that waterlogging affects Mumbai real estate project costs. Waterlogging can cause major disruptions to daily life, which impacts the city’s real estate market and rental income.

When buying or renting an apartment in an area prone to flooding or waterlogging, experts say that property rates in the micro market can be as much as 10%-20% less.

“A buyer will work hard to negotiate a 5% to 20% discount on the property price if he or she is buying or renting an apartment in an area prone to waterlogging,” a property consultant from Mumbai’s suburbs who wished to remain anonymous said.

Waterlogging is a recurring problem that affects property prices in several areas, such as Gandhi Market in Sion, Hindmata near Dadar, Nana Chowk in Grant Road, Milan Subway in Vile Parle, and Dahisar subway. 

IMD issued a yellow alert due to rain in Mumbai.

There will be heavy rainfall in Mumbai through July  24th, according to the India Metrological Department’s (IMD) yellow alert. Mumbai has experienced over 1,000 mm of rain in the last two weeks. 

Govt should prioritize housing to boost the real estate market, according to developers

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This year’s budget, which sets up the housing sector, will not only help the one crore urban poor and middle-class families who lack a place to reside.  It will also boost the real estate market and open new doors for developers and homebuyers. 

The real estate industry received a major boost from the Union Budget 2024, it was unveiled by Finance Minister Nirmala Sitharaman on Tuesday and highlighted urban development as a cornerstone of “Viksit Bharat.” Under the PM Awas Yojana-Urban, a pledge to invest Rs 10 lakh crore to meet the housing needs of one crore urban poor and middle-class families could change the game.

Along with Rs 2.2 lakh crore in central assistance over the following five years, this allocation shows how seriously the government is taking the urban housing crisis and promoting economic growth. Establishing industrial parks with a Plug & Play model near 100 cities and focusing on rental housing for industrial workers in PPP mode with VGF support enable more infrastructure improvements and affordable housing options. These programs will benefit related industries by creating millions of jobs and reviving the construction industry. Furthermore, developers and purchasers will gain from the emphasis on urban development and open rental markets, which will promote a more robust and inclusive real estate market, according to Avneesh Sood, Director, of Eros Group.

This year’s budget, which emphasizes the housing sector, will not only help the one crore urban poor and middle-class families who lack a place to live but will also boost the real estate market and open up new doors for developers and homebuyers.

Incorporating an interest subsidy in loans for affordable housing is particularly beneficial since it will make ownership accessible to more people. Furthermore, the PPP mode purposefully opted for rental housing, especially dorm-style accommodations. It will create a more diverse housing market by providing industrial workers with much-needed housing options. “The initiative will also encourage the private sector to invest in rental housing projects, further expanding the housing supply,” says Shiwang Suraj, Director & Founder of InfraMantra.

There is currently an excess of available properties compared to the demand from buyers, resulting in an inventory bubble in the real estate market.

According to Solomon & Co. partner Haroon Asrar, “the government’s proposal to the States, for further reducing the stamp duty for women property purchasers, represents a welcome intervention in this regard.”

An important step forward in India’s response to its urban housing crisis is the Pradhan Mantri Awas Yojna (PMAY) Urban 2.0 scheme, which seeks to bring Rs 10 lakh crore investment to urban housing. The central government’s pledge to house one crore families demonstrates its steadfast dedication to promoting inclusive urban development.

“An effective and open rental housing market will be established by the government’s proposal to implement enabling policies and regulations. Residential rental markets in urban areas will consequently become more streamlined and effective. Furthermore, digital land record digitization in urban areas will integrate GIS mapping technology. An IT-based system will also be established to manage taxes and property records. Asrar said, “This initiative would make it easier for the average man to obtain land-related paperwork, which is a positive step toward the effective management of land records.” 

Five things the real estate industry anticipates from the finance minister’s budget in 2024

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Finance Minister Nirmala Sitharaman is scheduled to present Budget 2024 today, and the real estate industry anticipates that the government will prioritize affordable and middle-class housing in the plan. To increase affordability, it has advocated for an enlargement of the definition of affordable housing, tax breaks for homeowners, and financial incentives for builders to build more affordable housing.

More tax breaks are urgently needed for buyers and developers looking to build affordable and middle-class housing projects. Real estate experts believe that the government should increase the annual deduction limit for interest paid on home loans from the current Rs 2 lakh to Rs 5 lakh, as this will boost the demand for housing.  

  1. Raise the interest payment deduction cap 

To stimulate housing demand in the face of rising housing prices and mortgage rates, the National Real Estate Development Council (Naredco), a body that represents builders, has recommended that the tax exemption on interest on loans for self-occupied property be raised to Rs 5 lakhs in the upcoming budget from Rs 2 lakhs currently.

Developers have also sought tax breaks to increase the supply and demand for affordable homes. According to NAREDCO, the maximum deduction for interest on loans for self-occupied property is Rs 2 lakh, as stipulated in Section 24 of the Income Tax Act.

  1. Permit builders to pay GST at a discounted rate instead of an input tax credit.

NAREDCO has also urged the government to allow builders to pay GST at a concessional rate without an input tax credit (ITC) or a higher tax rate claiming an ITC. The GST rate is 1% without ITC for affordable housing units and 5% without ITC for other residential units. Developers would save money on taxes and have improved cash flows if they could select between higher rates ITC and concessional rates without it, resulting in advantages for end users.

In its wish list for Budget 2024, the Confederation of Real Estate Developers Associations of India (CREDAI), a body that represents real estate developers, suggests that the government consider granting unlimited interest deductions for self-occupied property or raising the deduction limit to Rs 5 lacks for homebuyers.

  1. Encouragements for reasonably priced  housing

The present growth trajectory is biased in favor of luxury and mid-range housing. Affordable housing is still in short supply, so higher-priced homes can’t sustain this momentum despite the unique housing needs of India’s lower-class populations. According to experts, the government should concentrate on offering more subsidies for mid-range and affordable housing.

According to ANAROCK Research, following COVID-19, the sales share of affordable housing fell sharply, from over  26% in 2022 and over  38% in 2019 to about 20% in Q1 2024. This segment’s share of the total housing supply in the top 7 cities decreased to 18% in Q1 2024 from nearly 40% in 2019 due to low demand. In FY23-24, total sales hit a record high of roughly 4.93 lakh units, despite the launch of 4.47 lakh units.

Anuj Puri, Chairman of ANAROCK Group, states that many interest stimulates previously provided to affordable housing builders and consumers have expired over the past two years. High-impact measures like tax breaks are needed to revive this significant market sector. This will help buyers by bringing down the cost of homes, and developers by motivating them to focus more on building affordable housing.

PMAY Credit-linked Subsidy Scheme

To encourage first-time purchasers of reasonably priced homes throughout cities, the EWS/LIG program, which was set to expire in 2022, ought to be brought back. This will stimulate demand in this market segment once more. CLSS was previously available for housing loans to EWS/LIG buyers in new building projects and for adding rooms, kitchens, toilets, etc. to existing dwellings, subject to criteria specified under government guidelines. According to Puri, if the qualifying requirements are met, all “kaccha” homes being converted into “pucca” ones may also be eligible for this subsidy under PMAY (Rural).

Provide developers of affordable housing a 100% tax holiday once more. 

To boost supply and incentivize developers to build more affordable housing, the government may bring back the “100% Tax Holiday” benefit previously provided under section 80-IBA of the Finance Act, 2016. The profits from developing and constructing affordable housing projects were subject to significant tax relief under this section. 

Change the definition of affordable to include more homebuyers and expand the benefits of additional deductions. 

The Ministry of Housing and Urban Affairs states that a buyer’s income, cost, and size all play a role in determining affordable housing. In large cities, a house or apartment that fulfills the requirements for affordable housing can be valued up to Rs 45 lakh, and in non-metropolitan areas, it can have a carpet area of up to 90 square meters. Loans from banks are given to individuals to help them build houses or buy apartments based on the central bank’s definition.

The government must carefully consider how to modify home prices within the affordable housing budget, considering the unique characteristics of each city’s real estate market. The size of the units is 60 sq.m. The carpet area is appropriate according to the current definition. However, most cities cannot afford the prices of units, which can reach Rs 45  lakh.

For instance, a budget of Rs 45 lakh doesn’t matter in a metropolis like Mumbai. It would have to be raised to Rs 85 lakh minimum. The budget should be increased to Rs 60-65 lakh in other cities. According to Puri, more homes would be eligible for the affordable price tag with such price revisions, allowing more buyers to take advantage of government subsidies and lower GST rates at 1% without ITC.

It is also necessary to revise the definition of an affordable residential apartment, which presently includes requirements for carpet area and a price cap. Only the carpet area condition should be kept, NAREDCO advises, with no upper price limit. A greater percentage of the lower and middle class could purchase homes thanks to this adjustment, which would account for rising land prices in major cities and expand the benefits of affordable housing to more projects.

The criteria for affordable housing are based on the cost of the property (Rs 45 lakh), carpet area (60 to 90 sq.m), and income of the homebuyer (EWS/LIG), according to Anshuman Magazine, chairman and CEO-India, South-East Asia, Middle East & Africa, CBRE. The government should consider extending the cost, size, and income restrictions to, prove the scheme’s inclusivity. Given that capital values in larger metropolises (Mumbai, Delhi-NCR) can be significantly higher than in other cities, the government should think about raising the size criteria for metro cities to 90 sq.m. and establishing three to four brackets of unit sizes and prices to define the eligibility criteria depending on city/state dynamics.

Boost the amount of money allotted to PMAY  

Along with the recent announcement from the Cabinet to provide financial support for the construction of an additional three crore rural and urban houses under the scheme, the government should consider increasing the budgetary allocation towards the Pradhan Mantri Awas Yojana (PMAY) compared to the previous year. This shows the government’s continued commitment to supporting the affordable housing sector. The prompt implementation of the scheme possesses considerable potential to stimulate the industry even more.

According to Magazine, “We also eagerly await further details concerning the PMAY-Urban scheme, given the announcement made about the government’s plan to launch an initiative to help deserving sections of the middle class living in rented accommodations, slums, chawls, and unauthorized colonies to buy or build their own houses in the Interim Budget 2024-25.”

Additionally, the government offered a 100% tax deduction for profits and gains from the business of creating and constructing affordable housing projects under Section 80IBA. The tax holiday did, however, end in 2022. According to the magazine, developers of affordable housing projects would gain from the resuscitation of the program because these projects usually have narrow profit margins.

  1. Utilize land lots that the government and public sector businesses have available. 

The government or public sector organizations have access to multiple underutilized or inadequately utilized land parcels. These might include Port Trust property, railroads, abandoned military land, etc. When the land and necessary permits are obtained, we advise unlocking these land lots and forming partnerships with reputable private developers to build affordable housing. These land lots might also be for industrial parks and associated infrastructure. This will help the government take advantage of the operational efficiencies of the private sector while also lowering the risk associated with development,” he stated.

Magazine went on, “We also implore the government to provide a comprehensive framework regarding changes in land usage.” to expedite construction and facilitate land acquisition.

CREDAI National Chairman and Gaurs Group CMD Manoj Gaur states, “The real estate industry has set high expectations for the upcoming budget.” First and foremost, the goal of resuming the interest subsidy program is to support the housing industry as a whole. Secondly, we are also seeking a redefinition of affordable housing. The present limit should be increased from 90 sq meters, and Rs 45 lakhs in space and pricing, respectively. These will be a much-needed intervention as a considerable demand exists in the affordable housing segment. Lastly, we look forward to announcements on GST input credit to stimulate growth and foster a more resilient real estate environment.”

Over the past three years, there have been fluctuations in the supply and demand for affordable homes in tier 1 and tier 2 cities, according to Dhruv Agarwala, Group CEO of Housing.com and PropTiger.com.

The forthcoming budget should prioritize reinvigorating the supply and demand for residential properties within the Rs15-75 lakh per unit price range. Potential homebuyers could be effectively encouraged by the introduction of interest subsidy programs” he said. 

Agarwala stated that the government could strategically use its vast land banks in collaboration with private developers to increase supply by providing capital and land at discounted prices.

  1. The condition of the property market

Director of County Group Amit Modi said, “One of the most persistent demands the sector emphasizes is the need to grant industry status to enable easier access to low-cost financing, which benefits consumers directly. “Moreover, timely project completion and cost-effectiveness depend on the implementation of single-window clearance.”

Real estate experts said that the sector should also be classified as infrastructure.

By 2030, the real estate industry will likely account for 13-15% of the Indian GDP. As such, stakeholders have long demanded that the sector be granted “infrastructure” status. This could significantly reduce the cost of borrowing for developers and increase the availability of institutional credit, thereby stimulating growth and investment. According to the report, “Standardizing the definition of affordable housing can also enhance uniformity in financing requirements amongst institutions and possibly make it easier for eager homebuyers to obtain credit.” 

Delhi’s Top 5 Rental Income Spots in Dwarka

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In Delhi, Dwarka is a possibility for investors who want to earn a lot of money from their investments but can’t find the perfect neighborhood. Its abundance of residential options attracts tenants and end users, and it is supported by infrastructure projects like the Dwarka Expressway and its proximity to Gurgaon’s employment hubs. Are you looking for some hidden rental gems in Dwarka? Continue reading to discover the best Dwarka neighborhoods with high rental income. 

The planned Delhi suburb of Dwarka has quickly grown to become a sanctuary for investors looking for high rental yields. Its advantageous location and strong road and metro rail connections to Delhi’s and Gurgaon’s premier business and residential areas are the main causes. The presence of several educational institutions adds to its allure as a place to live.

The growth of business hubs in Sectors 24, 25, and 26 may cause a rise in rental demand in the region’s real estate market. Let us investigate the best places in Dwarka that have the potential to generate large rental income. 

Best places in Dwarka to rent a property for the most money

Dwarka is one of the best areas of Delhi to live in because of the abundance of educational institutions and easy access to business centers. Due to Dwarka’s growing appeal as a residential area, several neighborhoods have emerged as the best places to obtain high rental income. 

Read this article through to learn more about the area.

Sector 10, Dwarka 

The demand for rentals in Sector 10, Dwarka, is driven by prestigious educational institutions like Guru Gobind Singh Indraprastha University (GGSIPU) and Netaji Subash Institute of Technology. Urban Extension Road 2 further makes it simple for Sector 10 Dwarka to travel thirty minutes to two major employment centers: DLF Cyber City and Udyog Vihar. These elements contribute to Sector 10’s popularity as a residential area in Dwarka among young people and professionals, placing it among the best areas in the city to rent an apartment. Three-bedroom flats, which range in price from Rs 1.85 to Rs 3.98 crore, compose the bulk of the housing stock in Sector 10, Dwarka. 

The average property rate in Dwarka Sector 10 is Rs 12,750 per sqft. 

Also mentioned favorably by the locals in their evaluations of Sector 10, Dwarka, are the accessibility of key social amenities and modes of transportation.

The following highlights a few of the well-known ones: 

  • The area is home to Vandana International School, GD Goenka International School, and Venkateshwar International School.
  • Ayushman, Max Super Speciality, and Indira Gandhi are just a few of the medical facilities that border the area.
  • Having a dedicated metro station enhances the connectivity of the Delhi Metro Blue Line. 

Sector 19, Dwarka 

To the list of the greatest locations in Delhi Dwarka for the highest rental income, add Sector 19, Dwarka. There are many different kinds of apartments in the area, the most common are three and four bedrooms. While 4BHK apartments in Sector 19, Dwarka, start at about Rs 2.3 crore, 3BHK apartments start at Rs 1.2 crore. The average property rate in Dwarka’s sector-19 is Rs 12, 350 sqft. 

Furthermore, people have realized the advantages of residing in Sector 19, Dwarka because of its strong connectivity to the employment hubs of DLF Cyber City and Udyog Vihar in Gurgaon via Urban Extension Road-2. Housing demand is anticipated to increase due to the planned Dwarka stretch of the Dwarka Expressway, which will only improve connectivity. 

Many residents’ reviews surprisingly list easy access to schools, hospitals, and malls as one of the best things about Sector 19, Dwarka.

Dwarka’s Sector 17 

Sector 17, Dwarka, is one of the best neighborhoods in Dwarka for high rental income, with employment centers like Udyog Vihar and DLF Cyber City within a 15-kilometer radius. A fair amount of the housing supply includes builder floors alongside residential apartments. A three-bedroom apartment in Sector 17, Dwarka, costs approximately Rs 1.35 to Rs 3 crore. The average property rate of Dwarka’s Sector-17 is Rs 10,000 sq ft. 

Reviews of Sector 17, Dwarka, indicate that because of police presence, it is a safe area to rent an apartment. Additionally, the sector has easy access to metro and e-rickshaw transportation options. 

Because Sector 17, Dwarka, is close to many social and retail amenities within a four to five-km radius, it is also well-liked by tenants and buyers. These amenities include:  

  • Schools: Sarvodaya Vidyalaya, Mother’s Pride, and Government Co-ed Senior Sec.
  • Hospitals: Ayushman Hospital, Venkateshwar Hospital, and Grace Hospital 
  • Shopping malls: Vegas Mall, Soul City Mall, and City Centre Dwarka

Sector 11, Dwarka

The Delhi Development Authority’s (DDA) Sector 11, Dwarka, is a posh housing destination with multiple residential communities. Due to its convenient proximity to employment centers and educational institutions, this sector benefits from a strong demand for housing and rentals. The buyer is looking for 3 BHK apartments in Sector 11, Dwarka, with a budget of Rs 1.5 crore and Rs 4 crore. Dwarka Sector Rate’s average property rate is Rs 13,000 per sqft. 

Although LBS Institute of Management is located in the area, several colleges of Delhi University, IP University Campus, and Netaji Subash Institute of Technology are all five kilometers away. Furthermore, it is easily accessible to Gurgaon’s DLF Cyber City through UER-2.

Additionally, DDA intends to establish new business hubs in Dwarka’s Sector 24, 25, and 26, all within a 15-minute drive. This commercial expansion will likely increase demand for housing in the area, making it one of the best places in Dwarka to get the highest rental income.

A further reason for the generally positive reviews of Sector 11, Dwarka is its convenient access to daily amenities. Prominent social services in the vicinity of the sector include: 

  • St. Gregorios School, MDH International School, and MBS International School are the schools. 
  • Hospitals: Medeor Hospital, Max Super Speciality Hospital, and BENSUPS Multispeciality Hospital 
  • Shopping Hubs: Sector 11, Market, Vegal Mall, and Soul City Mall 

Sector 18A, Dwarka

One of the best places in Dwarka, to get the highest rental income is Golf Course Road, Sector 18 A. One of the main factors contributing to its popularity as a well-known housing hub is its easy access to important locations, such as: 

  • Golf Course Road makes it only a 30-minute drive to Udyog Vihar and  DLF Cyber City.
  • Nearby colleges include National Law University, IP University, and several others. 
  • In the vicinity of Dwarka Sectors 24, 25, and 26, the soon-to-be business hub

In their evaluations of Sector 18A, Dwarka, the locals have mentioned how convenient it is to the Delhi Metro’s Blue Line and how many schools, colleges, hospitals, and other recreational facilities are nearby.

Plenty of 3BHK and 4BHK apartments are available for purchase in Sector 18A, Dwarka, with prices ranging from Rs 2 crore to Rs 4 crore. The current average property price in Dwarka Sector 18A is Rs 13,100 sqft.

India’s commercial real estate market: Surpassing the global recession

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Due to severe downturns in the global economy in 2023, the commercial real estate market saw a 66% annual decline in investments. Significant markets such as the US and Europe saw a 25% decline in leasing activity. The global commercial market is in crisis mode! 

The Indian commercial real estate market, on the other hand, attracted $5.4 billion in investments, the most since 2020, the year before the pandemic, demonstrating remarkable growth and resilience. The office sector in India has been particularly vibrant, drawing over $3 billion in investments, a 53% increase from the previous year. The growth in demand from Global Capability Centers (GCCs) and the strong leasing activity of Indian corporations, which now make up 46% of all market leasing activities, are the main drivers of this surge. 

India’s office sector is growing primarily due to demand from the GCCs. India’s GCCs are expanding rapidly as international corporations look for cost-effective outsourcing solutions in the face of economic pressure. With a projected 10% compound annual growth rate (CAGR), the GC industry is predicted to rise from its current $465 billion by 2027. With a 30% market share in the GCC overall, India employs up to 2 million professionals.

The GCC model is evolving, with hubs driven by technology and customer experience replacing centers primarily concerned with standardization and cost arbitrage. This pushes these developments to increase the spending per square foot and the space per square foot, which raises the investment in Grade A commercial real estate even more.

There is plenty of room for growth because only 40-45% of Fortune 500 companies currently have GCCs. Our estimates indicate that India will have 3.5.-4 million workers employed in GCC countries over the next three to four years, implying a doubling of the Grade A space needed, given the country’s demographic advantage (we will add 80-90 million people to the working age population by 2027).

The increasing percentage of domestic investors and capital entering this market relative to previous foreign capital inflows is another interesting development. Prequin data reveals a dramatic fall in foreign fund activity in India in light of the geopolitical unrest and state of global interest rates. The Indian real estate market is resilient despite these obstacles, and a growing proportion of ultra-high-net-worth individuals and family offices are among this new class of investors.

Approximately Rs. 3 trillion has already been invested by these investors, who are drawn to the regulated environment of Alternative Investment Funds (AIFs) and the tangible security of asset-backed investments. This has a significant impact on the real estate market. This change highlights a dynamic shift in investment patterns, encouraging the sector’s growth to be driven more domestically.

Tier 2 towns will likely emerge as new centers of development and investment in commercial real estate. The Fortune 500 companies’ headquarters are dispersed across 51 cities in the US, whereas in India, the major corporations are centered in just 5-6 cities. Although the infrastructure for transportation has advanced significantly, these cities urgently require an upgrade to their urban infrastructure to improve their quality of life and draw in more businesses and workers.

As investment flows increase twofold to tier 2 cities, pioneering firms are shifting their focus to undeveloped land parcels in these cities. For local and regional developers, this trend underscores the importance of enhancing their offerings and attracting foreign investors.

Through this realignment, not only will Tier 1 cities be addressed, but diversified and sustainable, urban development will be enabled across the nation. As we move forward, these changes are expected to play a crucial role in shaping the real estate investment landscape over the coming years, heralding a new era of growth beyond the traditional hubs.  

The Indian commercial real estate market, on the other hand, attracted $5.4 billion in investments, the most since 2020, the year before the pandemic, demonstrating remarkable growth and resilience. The office sector in India has been particularly vibrant, drawing over $3 billion in investments, a 53% increase from the previous year. The growth in demand from Global Capability Centers (GCCs) and the strong leasing activity of Indian corporations, which now make up 46% of all market leasing activities, are the main drivers of this surge. 

India’s office sector is growing primarily due to demand from the GCCs. India’s GCCs are expanding rapidly as international corporations look for cost-effective outsourcing solutions in the face of economic pressure. With a projected 10% compound annual growth rate (CAGR), the GC industry is predicted to rise from its current $465 billion by 2027. With a 30% market share in the GCC overall, India employs up to 2 million professionals.

The GCC model is evolving, with hubs driven by technology and customer experience replacing centers primarily concerned with standardization and cost arbitrage. This pushes these developments to increase the spending per square foot and the space per square foot, which raises the investment in Grade A commercial real estate even more.

There is plenty of room for growth because only 40-45% of Fortune 500 companies currently have GCCs. Our estimates indicate that India will have 3.5.-4 million workers employed in GCC countries over the next three to four years, implying a doubling of the Grade A space needed, given the country’s demographic advantage (we will add 80-90 million people to the working age population by 2027).

The increasing percentage of domestic investors and capital entering this market relative to previous foreign capital inflows is another interesting development. Prequin data reveals a dramatic fall in foreign fund activity in India in light of the geopolitical unrest and state of global interest rates. The Indian real estate market is resilient despite these obstacles, and a growing proportion of ultra-high-net-worth individuals and family offices are among this new class of investors.

Approximately Rs. 3 trillion has already been invested by these investors, who are drawn to the regulated environment of Alternative Investment Funds (AIFs) and the tangible security of asset-backed investments. This has a significant impact on the real estate market. This change highlights a dynamic shift in investment patterns, encouraging the sector’s growth to be driven more domestically.

Tier 2 towns will likely emerge as new centers of development and investment in commercial real estate. The Fortune 500 companies’ headquarters are dispersed across 51 cities in the US, whereas in India, the major corporations are centered in just 5-6 cities. Although the infrastructure for transportation has advanced significantly, these cities urgently require an upgrade to their urban infrastructure to improve their quality of life and draw in more businesses and workers.

As investment flows increase twofold to tier 2 cities, pioneering firms are shifting their focus to undeveloped land parcels in these cities. For local and regional developers, this trend underscores the importance of enhancing their offerings and attracting foreign investors.

Through this realignment, not only will Tier 1 cities be addressed, but diversified and sustainable, urban development will be enabled across the nation. As we move forward, these changes are expected to play a crucial role in shaping the real estate investment landscape over the coming years, heralding a new era of growth beyond the traditional hubs.  

Tenant news to rejoice about! The April-June quarter saw an average price correction of 5-10% in Bengaluru’s rental housing market

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Bengaluru’s rental housing market saw an average price correction of 5-10% during the April-June quarter of the current calendar year, according to local brokers who spoke with HT.com. This news should cheer up tenants in the city. The primary reasons for this are the large number of tenants who have relocated to the city’s outskirts, where new housing stock is available at lower rental prices than in desirable neighborhoods, and the growth of co-living options, which provide better value for the money.

The second quarter of the year usually sees an increase in rental activity due to several factors, including families moving before the start of the new school year, a new wave of professionals moving into the city, and so forth.

The price correction is the result of several factors. According to Manoj Agarwal, founder of Agarwal Estates, “many tenants  are shifting to the outskirts of the city where rents are lower compared to the prime areas surrounding IT corridors given a more specific hybrid work culture in place.”

He continued, “The average vacancy rate in his portfolio of rental properties throughout the city has increased to 5% from the previous 2-3%.

With a decline in rental rates of more than 10%, the trend was most noticeable in areas bordering the IT corridors, such as Whitefield in East Bengaluru and Sarjapur Road. According to a local brokerage firm, a 1 BHK apartment rented out for Rs28,000 per month in the first quarter of the year is currently rented for Rs 25,000.

However, data from prop-tech company  Square Yards revealed that a 750-1,175 square foot, 2BHK that was previously available for between Rs 28,900 and 45,200 per month is now listed for a rental cost between Rs 33,600 and 40,300.

Property consultants saw less evidence of this trend shift in the areas surrounding the central business districts. They added that contrary to standalone Grade B buildings, rents in Grade A projects built by well-known brands have decreased less. 

Multiple justifications

Vice president of Hanu Reddy Realty Kiran Kumar noted that the previous modification also addresses Bengaluru’s growing inventory levels as developers counter the city’s real estate demand surge. 

In Bengaluru, 12,432 residential units were introduced in the June quarter of 2024, an 8% yearly increase, according to a Knight Frank India report. 14,271 units were sold then, an 11% increase from the previous year. According to brokers, many purchasers who reserved their homes during the COVID-19 pandemic are now getting their possession.

According to Saurabh Garg, co-founder and chief business officer of proptech unicorn NoBroker, “Bengaluru’s rental market is returning to normalcy this year.”

Other participants noted that the number of co-living options in the city has also reduced the share of the rental housing market. This quarter, Kumar predicts a further 10% decline in rent, especially in the city’s periphery. 

Trends in Q2 2024

Bengaluru had the highest rental yield (4.5%) in the first quarter of 2024 out of the top 7 Indian cities, according to a report from a real estate consulting firm.

A property’s rental yield is the proportion of its total value that is rented out earned in rental over a year.

Rents have risen by over 40% in some prime areas of the city after the COVID-19 pandemic as workers returned to work and landlords attempted to recover annual price increases lost. 

How are the landlords reacting?

 It is common to refer to Bengaluru as a landlord’s market. They have recently gained notoriety due to a number of their unusual demands. Nevertheless, they appear to take note of the changing tide.

“In Bengaluru, landlords are starting to recognize that tenants do not want to pay exorbitant rent.

A local broker said, “Instead of keeping the property empty for months while searching for the perfect tenant, we suggest they reduce the rent slightly.”

In a recent instance, a landlord in East Bengaluru’s Indiranagar locality, who had originally hoped to receive Rs1.20 lakh/ month for his 4 BHK apartment, revised the rental amount to Rs 1 lakh, the person cited. 

Do rents still stay the same?

While local brokers reported a drop in overall rentals and rising for properties on the outskirts, some stakeholders insisted that prices have stayed steady.

According to data from Square Yards, and the integrated prop-tech platform, a 950-1,200 square feet 2BHK in Electronic City is currently available for Rs 32,600-41,400 per month during the first quarter of 2024. The original price was Rs 32,500 – 40,800. In the meantime, the monthly rental cost of a one-bedroom apartment that was previously available for Rs 21,000 -22,100 is now Rs 21,900– 23,000. 

By 2030, Bengaluru will possess 330-340 million square feet of office space in India: report

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The primary demand generators for Bengaluru’s office market are anticipated to be the technology, engineering, manufacturing, and BFSI sectors. 

The Confederation of Indian Industry and CBRE report projects that Bengaluru, the country’s IT hub, will maintain its dominant position in its commercial real estate market by 2030, with 330-340 million square feet of office stock.

Bengaluru has seen its office stock more than double to over 223 million square feet as of June 2024, from 100 million square feet in 2013, to comprise the highest share in the segment among all major cities in the country, according to a report titled “Karnataka Horizon: Navigating Real Estate Excellence in the South,” which was released on July 10.

The total stock in India as of June 2024 was 880.7 million square feet, with Bengaluru contributing the most at 25%, according to the report. It also stated that over the previous few years, the city’s annual absorption of roughly 15016 million square feet had occurred on average.

Bengaluru is anticipated to grow significantly in the periphery over the next few years. According to Anshuman Magazine, Chairman and CEO-India, South-East Asia, Middle East and Africa, CBRE India, “the commercial sector is slated to expand significantly in the northern, eastern, and southern parts coupled with the availability of large-sized land parcels and multiple upcoming infrastructure initiatives.”

Which sectors are driving demand?

Technology, engineering and manufacturing, and BFSI are predicted to be the main sectors driving demand for Bengaluru’s office market until 2030. Emerging sectors like life sciences, aviation, and automobile are also anticipated to contribute to the rise in demand.

According to the report, the technology sector currently makes up 30-35% of the city’s annual absorption, mostly in the commercial centers of Outer Ring Road and Whitefield.

According to the report, between 2022 and June 2024, Bengaluru accounted for 41% of demand among India’s global capability centers (GCCs). It attributed this achievement to several of Garden City’s offerings, such as its highly qualified talent pool, first-rate Grade-A assets, and a robust  IT ecosystem.

Karnataka’s thriving IT sector needs to keep developing if it wants to stay competitive. According to Ram Chandani, Managing Director of Advisory and Transactions Services at CBRE India, “developing premium, sustainable tech spaces with cutting-edge facilities will be the key.”

Shailendra Naidu, a senior executive director of advisory and transaction services at CBRE, lists a few of the market’s long-term challenges ease of doing business, the high cost of land, and effective space utilization. “Many development companies in this area use joint ventures to purchase land. In that model, there can be challenges going ahead,” he said.

Home goods, fashion, and entertainment drive demand in the retail sector.

Bengaluru’s retail real estate stock, which held the second-highest share among the top Indian cities at 24%, more than doubled to over 16 million square feet as of June from 7.2 million square feet in 2013, according to the report. According to the research, this measure will rise to 20-30 million square feet by 2030, a 1.4-fold increase.

According to the report, the main drivers of absorption in Bengaluru’s retail market are department stores, fashion and apparel stores, and entertainment. Together, these segments account for roughly 20-30% of the city’s annual demand. According to the statement, the capital city’s average yearly absorption in this sector is between 1.5 and 2 million square feet.

As per the report, Bengaluru is a high-achieving city that houses three of the 17 listed malls in the country.  

Bengaluru is the top option for Indian non-residents looking to buy mid-range and affordable homes

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Data gathered from several consulting firms by HT Digital indicated that Bengaluru has maintained its position as the top option for non-resident Indians wishing to invest in India’s residential real estate market, particularly those seeking affordable and mid-segment homes. 

The main draws for this group of homebuyers are the city’s pleasant weather, rising property values, cosmopolitan culture, high rental yields, and a bustling commercial district. 

Though most non-resident Indians are drawn to the region for investment opportunities, the IT capital market is driven by end users regarding sales among domestic homebuyers.

According to Shalin Raina, Managing Director, Residential Services, Cushman & Wakefield, the data about NRI home purchases in Bengaluru shows that 35% of the transactions are for end-use, and 65% of the deals are for investment purposes. 

Prooptech unicorn Among its NRI clientele, NoBroker reported a  60:40 split in favor of investing. 

Developers and consultants noted that most of these purchases are the second or third additions to the portfolios owned by non-resident Indians.

“Principal Partner and Sales Director of SquareYards.com, Sharad Sharma, added that NRIs are displaying interest in senior living communities and plots, broadening their investment portfolio beyond apartments.” 

From and to where exactly? 

The US, UAE, and Singapore are the top three regions influencing demand from non-resident Indian buyers for the real estate projects developed by Bengaluru-based developers Concorde and Brigade.

NRI buyers account for 10% of our sales on average. “These sales occur either in India when the NRIs visit India or abroad during our events, or through our international team’s outreach,” says Viswa Prathap Desu, COO of Residential, Brigade Group. 

According to Saurabh Garg, co-founder and chief business officer of  NoBroker, the NRI clientele prefers to invest in reputable brand projects and high-demand rental areas, typically near IT corridors. 

He mentioned that popular areas for NRI investors were Kanakapura Road in the southern part of the city, Thanisandra in the north, and Whitefield and Sarjapur Road in East Bengaluru.

According to NoBroker data, the average price of a property currently ranges between Rs 9,000 and Rs 12,000 per square foot in these areas.

Others mentioned the proximity to the airport, the presence of Grade A developers, and the reasonably priced real estate in Hebbal and Devenahalli as reasons why they are desirable choices for NRIs.

According to the report, more than 55% of purchasers also sign up for property management services at the time of purchase.

What draws in this particular group of clients?

Developers and property consultancies shared that, contrary to popular belief, NRIs purchasing real estate in the IT capital have demonstrated, NRIs purchasing real estate in the IT capital have demonstrated a greater preference for mid-range and affordable homes.

Approximately 69% of the NRI transactions made possible by SquareYards.com involved affordable and mid-range housing, which includes apartments under Rs 1 crore. According to Ravi Shankar Singh, Managing Director, Residential Transaction Services, Colliers India, 70% of the unit level demand for real estate consultancy Colliers has been in the range of Rs 1.5 to 2 crore.

Brigade Group’s Desu claims that the class of NRI workers in the clerical and administrative fields is the main source of demand in the affordable and mid segments. With their savings, these workers purchase a 2BHK or a small 3 BHK apartment, which they can either move into when they return to India or use as a rental.

However, C-suite executives like villas and the mid-segment draw techies who typically choose a 3BHK, according to Kranti Alladi, Head of Sales and Marketing at Concorde.

Two main depressants are poor infrastructure and heavy traffic. 

The city’s traffic problems and infrastructural problems have been the biggest deterrents for NRI investors, despite Bengaluru’s strong demand and high rental yields helping the city dominate its choices.

“One of the primary deterrents for NRI property purchases in Bengaluru is traffic congestion, which has been consistently identified as a significant concern,” said Rana.

Others concurred. “Purchasing a home in an establishment is another barrier. However, finding inventory at their preferred location presents a challenge, as noted by Garg of NoBroker. 

Across the nation, NRI’s interest in the housing market is growing.

In North India, the tale is the same. Approximately 14% of DLF’s total sales in the fiscal year 2022-2023 came from NRI investors, with the GCC, USA, UK, and Singapore contributing significantly to the company’s sales exceeding  Rs 2,000 crore. DLF is based in Gurgaon. It anticipates a 20% increase in this fiscal year.

25% of sales (or about Rs 1,800 crore) for the company’s most recent project, DLF Privana South, came from NRI markets, with the US and Canada, Southeast Asia, and the GCC making major contributions. Aakash Ohri, Joint Managing Director and Chief Business Officer, of DLF Home Developers Ltd., told Hindustan Times Digital from Africa, particularly from Tanzania and Kenya, showed interest in the project. 

Which hotel chain has the highest market value in India?

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The report includes a list of the nation’s wealthiest real estate investors. The figures for wealth and value represent a snapshot of May 31, 2024.

“We are extremely proud and honored to reaffirm our long-standing partnership with Hurun India for the 2024 GROHE-Hurun Indian Real Estate 100,” stated Priya Rastogi, Leader, India and Subcontinent, LWT IMEA. The Indian real estate industry has experienced rapid development, propelled by forward-thinking leaders who constantly push the envelope about creativity and quality. The most current rankings demonstrate the adaptability and tenacity of these industry pioneers and their dedication to promoting a progressive and sustainable future for the sector.

We are committed to helping these leaders in their endeavors and are excited to witness the ongoing development of the Indian real estate market. The seasoned professionals have our gratitude for their innovative ideas and brains.”

“The 2024 GROHE-Hurun India Real Estate 100 confirms our prediction of the breakout of Indian real estate brands post-COVID,” Hurun India’s founder and chief researcher, Anas Rahman Junaid, stated. This year’s list of companies saw an impressive 86% rise in their values, adding INR 6.2 lakh crore. This indicates the sector’s dynamic recovery and robust growth.

Government restrictions and slowing demand hinder China’s real estate market. India is quickly overtaking China to become Asia’s real estate capital, outpacing China’s growth rate, with 36 billion-dollar real estate companies in the 2024 GROHE-Hurun India Real Estate 100. India’s market benefits from a growing middle class, rising urbanization, and a youthful population. Furthermore, the Real Estate (Regulation and Development) Act’s (RERA) implementation has improved accountability and transparency, which has increased investor confidence. In contrast, China’s market struggles with excess supply, high debt levels among property developers, and strict government regulations, making India’s real estate sector a more attractive and stable investment destination. 

India is experiencing a booming real estate market! Businesses with expertise in residential, commercial, hospitality, and co-working spaces are included in the 2024 GROHE-Hurun Real Estate list of India’s 100 most valuable real estate enterprises. India’s real estate market is booming, largely due to the country’s robust economic growth, expanding middle class, and rising investment. Residential sales are predicted to increase by 10-12% in FY  2024-2025, with the middle class expected to reach 547 million by 2030. An additional $4 billion in foreign investments annually are driving growth.

Although the report offers insights into the real estate sector, the following are some highlights related  to the hospitality sector: 

  • In the 2024 GROHE-Hurun India Real Estate 100, Indian Hotels Company, also known as the Taj Group of Hotels, came in third place with a valuation of INR 79,150 crore, indicating a 43% growth. 
  • The Oberoi Group, headed by Arjun Singh Oberoi, came in at number fourteen with a valuation of 28,430 crore, or a 103% growth. 
  • The most valuable hospitality company is IHCL/Taj Group.
  • Indian Hotels Company, Gera Developments, Oberoi (Hospitality), BCD, Macrotech Developers, and Skyline are among the 100 companies listed in the 2024 Grohe-Hurun India Real Estate 100 with a global presence. 
  • The most significant participant in Delhi’s real estate market is reportedly the Oberoi Group.
  • Following residential and commercial real estate, the hospitality industry dominated the market. IHCL, Oberoi, and Lemon Tree were three of the top ten companies in the hospitality industry.
  • Hotel Leela Venture, under the direction of Vivek Nair, came in fourth place with a 140% YoY growth. Ashish Jakhanwala’s Samhi Hotels came in second with a 129% YoY growth, and Patanjali Govind Keswani’s Lemon Tree came in third with a 111% growth. 
  • IHCL is the second-oldest company, founded in 1899; Oberoi Group, founded in 2010, is the fourth-oldest; and Samhi Hotel, founded in 2010, is the ninth-youngest. 
  • IHCL came in fourth place for debt reduction, falling from 1,388 crore in 2022 to 331 crore in 2023, with an overall debt change of 1,057 crore. 
  • With a debt-to-equity ratio of 0.03x, Hotel Leela Venture, Apeejay Surrendra Park Hotels, and IHCL had the second-lowest ratio.
  • With 13,359 workers, Oberoi Group is the sixth-largest employer in workforce size, followed by Mahindra Holiday & Resorts India in ninth position with 5,262 workers. 
  • Two hospitality businesses from the 2024 GROHE-Hurun India Real Estate List 100 that went public in 2023 were Juniper Hotels and Samhi Hotels. 

How come India’s luxury real estate marketing is rebounding?

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This edition of Forbes India explores everything from the developers creating those opulent homes to building the architectural and design features in these residencies. 

The upward trend of premium real estate and equity prices, albeit not necessarily at the same rate, indicates a healthy economy. Among the more liquid investment options, stocks yield higher returns than other asset classes. This enables investors to partially book their profits and reinvest the excess into real estate.

Investors, especially the higher net-worth ones, would be inclined to take some profits off the table as the Sensex from 70,000 to 80,000 in just 58 trading sessions— the fastest 10,000-point gain in its history. A prudent use of those profits would be in luxury real estate, where many properties are available, from lavish apartments and penthouses in brand-new urban towers to villas and vacation homes outside major cities.

Property has seen a renaissance thanks to the rush of liquidity, especially at the upper end. This edition of Forbes India explores everything from the developers creating those opulent homes to designing the architectural and design features in these residences.

According to The Capgemini Research Institute’s 2024 World Wealth Report, there will be approximately 36 lakh high-net-worth individuals in India in 2023. According to the report, these people had net worths of at least $1 million (Rs 8.3 crore) and had an astounding $1,446 billion in wealth in 2023.

Moving up a notch, there were slightly more than 13,200 ultra HNIs (Indians with a net worth of at least $30 million, or roughly Rs250 crore) in 2023, according to Knight Frank’s 2024 Wealth Report. Due mainly to this extremely wealthy group, DLF, the most valuable developer in India, sold Rs 1,500 crore worth of ultra-luxury apartments in the fiscal year 2024. 

Apartments in buildings such as Oberoi Realty’s 360 West in Mumbai can cost up to Rs 45 crores, as Samar Srivastava notes in ‘Homes That Last Generations’, page 44. The fact that buyers include billionaire Radhakrishnan Damani, the founder of DMart, and Bollywood star Shahid Kapoor is not surprising.

India’s financial capital is ranked eighth by Knight Frank’s Wealth Report for its price growth for luxury housing. Discover why by taking a laid-back, if slightly rushed, tour of this still-developing city. Chawls and slums are being replaced by ultramodern skyscrapers featuring multipurpose sports courts and reflexology gardens.

For this reason, Maximum City is an essential feature for any real estate developer worth their nine-hole putting (yes, it is included in the amenities package). The Menons, who are part of the Sobha Group, have become the third-biggest real estate group in Dubai, and are featured on the cover of Forbes India for this edition. The patriarch PNC Menon believes Sobha can make “about Rs 100,000 crore over 10 years” in the US, where the tour will next stop.

Then there is Mumbai, where Menon tells Manu Balachandran, the writer of the cover story, “We have to show something India has not seen.” Mumbai is the only city in India where we can repay the money we can afford to spend. Check out Balachandran’s “Brick by Brick” for additional information on the Mumbai— and the US—gambit.

This opulent real estate special offers a lot more. Mexy Xavier and Pankti Mehta visit the ultra-wealthy homes of India’s elite to seize elements that range from the conventional to the glitzy, which frequently mirror the characters of this fashionable group. Benu Joshi Routh also explores architecture and design revolutionizing the concept of luxury living. 

Why real estate in Mumbai is so desirable to everyone?

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After the pandemic, Mumbai’s real estate market reached all-time highs in quantity and cost.

Bengaluru: A 17-acre plot of land in central Mumbai that was formerly home to a textile mill was sold by DLF Ltd. to Lodha Developers Ltd. for Rs 2,725 crore eleven years ago. This year, a developer based in Gurgaon, the largest listed realtor in India, announced that it would be returning to the busiest real estate market in the nation.

DLF and Trident Group, a builder based in the National Capital Region (NCR), are collaborating on a slum rehabilitation project in the suburban Mumbai area.

DLF wants to diversify beyond Gurgaon amid a housing boom if its 2012 decision was to pull out non-core markets to concentrate on its home ground at the beginning of a multi-year residential slowdown. Mumbai would naturally be its first destination.

It propels you to a different scale and price point because you are the financial capital. We finally took the risk after examining opportunities in recent years, said Aakash Ohri, DLF’s group executive director and chief business officer.

In a similar vein, Godrej Properties Ltd. is situated in Mumbai. After assembling a sizable portfolio of projects in the NCR, the company will focus on its home market. The company’s chief executive officer (CEO), Gaurav Pandey, stated, “We have done about seven transactions in Mumbai in the last two years, and we are optimistic because the market has seen good price and volume growth.”

The Mumbai Metropolitan Region (MMR) secured the highest percentage of sales as the housing market recovered and reached all-time highs following the pandemic. Premium and luxury projects have been a major factor in MMR sales. It comes as no surprise that seasoned developers from MMR and beyond want a piece of the action.

MMR is undoubtedly a difficult market to break into. Though the costs are higher than in Bengaluru and the NCR, the profit margins are better. Getting project approvals can be difficult, and finding land can be difficult. Still, it is a market that cannot be disregarded, as Ohri alluded to.  

Deliverer from B’lore 

Most lenders and institutional investors became cautious about investing in Mumbai, preferring to concentrate on more stable markets in south India, following the non-banking financial company Infrastructure Financing and Leasing Service Ltd.’s repeated defaults in 2018. These events sent shockwaves through the financial services sector.

Developers in Mumbai had the highest level of leverage and NBFCs had the greatest overall exposure to the city’s real estate market. Post-pandemic, that was different. Opportunities for new and experienced developers were presented by the turmoil in MMR that led to the collapse of many developers.

Consider the Prestige Group. The Bengaluru-based developer has acquired the troubled projects in Mumbai from banks, investors, developers, and the National Company Law Tribunal. 

With sales in Mumbai of Rs 2,700 crore in 2022-2023, it plans a 25-30% growth this year. “Sales velocity will follow if you choose the locations well and price it sensibly,” stated Venkat Narayana, CEO of Prestige Group. “The demand is good.” 

Puravankara Ltd., a different developer based in Bengaluru started its first project in Mumbai in 2021 and is searching for mid-segment and premium acquisition opportunities.

Group CEO Abhishek Kapoor stated that although there are obstacles to overcome before entering Mumbai, there are lucrative opportunities. In Mumbai, the average price realization is at least Rs 15,000 – 25,000 per square foot, whereas in other markets it is Rs 8,000–10,000.

We are accustomed to seeing a lot of building, but Mumbai adds value and margins, and it will play a bigger role in our future growth, says Kapoor.

Many developers currently just want to take advantage of the value that the luxury market offers. 

The opulent peak 

The year, the prices of the sea-view homes in Lodha Malabar, an under-construction project on Walkeshwar Road in South Mumbai, set a benchmark at Rs 1.5 lakh per square foot. 

Private purchasers paid between Rs 250 and Rs 350 crore for several apartments. The biggest developer in MMR is Macrotech Developers Ltd., which offers projects under the Lodha brand. In 2022-2023 the company made Rs 12,064 crore in sales, with Rs 10,000 crore coming from Mumbai alone. Homes costing Rs 5 crore or more account for about 40% of its revenue.

“There is a strong demand for larger, luxurious homes, particularly among families who have always resided in their ancestral homes,” Prashant Bindal, chief sales officer of the company, stated.

There is ample room for high-caliber developers in the premium and luxury segments because there are not enough players in MMR to meet demand. Anuj Puri, chairman of the real estate advisory Anarock Group, said, “It is like a combination of two or three cities within it, and there are discerning buyers who are willing to pay for premium projects.”

Every six months, Mumbai has recorded sales of luxury homes worth approximately Rs 5,300 crore since 2018. That doubled in the first half of 2023, as sales of homes priced at Rs 10 crore and above increased by almost 50% to Rs 11,400 crore, per a July report from Sotheby’s International Realty and CRE Matrix.

The ultra-luxury market, with prices ranging from Rs 40 crore to Rs 70 crore expanded even more quickly.

Developers and analysts predict that the luxury home market will continue to grow. “The way the financial services sector has gained post-COVID has had an immediate effect on buying real estate.” The financial services sector’s post-COVID gains directly affect purchases. According to Amit Bahgat, managing director (MD) and CEO of ASK Property Investment Advisors, the luxury market will grow as wealth is generated. 

Competitors?

MMR has the highest sales and launches compared to NCR and Bengaluru. Unsold inventory has increased, but that’s because the rise in launches has surpassed sales, said Pankaj Kapoor, MD of Liases Foras.

Yes, other markets are catching up, especially Gurgaon. A 10,000-square-foot apartment in DLF’s Camellias project on Golf Course Road was sold for RS 100 crores, setting a new price record of Rs 1 lakh per square foot. 

Thus, Gurgaon might eventually give Mumbai serious competition, according to DLF’s Ohri. 

Mumbai real estate market: Is it possible to lease a home for two to six months in the city of finance?

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According to brokers, you can rent a property in Mumbai for two to six months, but the landlord might charge more because the lease is only for a short time. 

Although a minimum of one year is the ideal time to rent a property in Mumbai, whether it be residential or commercial, there are cases where properties are rented for as little as two to six months.

Real estate brokers claim that although there is no law against property owners renting out their private residences for a shorter time, they must charge a premium rent usually 20% higher than the current rate.

Everything about renting out real estate in Mumbai 

Tenants and property owners in Mumbai sign a leave and license agreement. Stamp duty is required to be paid at the time of registering the leave and license agreement. The monthly rental and deposit the property owner charges determines the amount of stamp duty.

The Maharashtra government’s registry office receives and files up to 30,000 signed agreements about leave and license. 

Shorter rental terms are subject to higher fees. 

Brokers claim that because there are few options in the market, property owners who rent out their apartments for shorter periods typically charge higher rentals.

“If a property is leased for six months, it can bring in either Rs 600 or Rs 700 per month, as opposed to Rs 550 per square foot if it is leased for five years. This is because fewer homes are available on the market for shorter leases than for longer leases, according to Dhiren Doshi, a property consultant with offices in Mumbai. 

The property owner has the right to request a higher rent because the apartment is being rented for a shorter period. The premium might, however, slightly decrease if the property owner is looking for a shorter-term lease, he added. 

These properties in Mumbai are available for short-term lease. 

IMC India Securities Pvt Ltd recently leased approximately 5830 square feet of commercial space in Mumbai’s BKC from Agni Commex LLP for Rs 700 per square foot per month, according to documents obtained by Propstack.

IMC India Securities Pvt Ltd is leasing the commercial space at Maker Maxity 4, an office space in BKC, for Rs 40.81 lakh per month, or Rs 700 per square foot.

Real estate brokers, however, stated that because the rental is only for six months, the rent per square foot is Rs 700, which is more than the typical BKC rent of Rs 500 to 550. 

Kirti Sanon closes a Rs 2 crore Alibaug real estate deal

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Actress Kirti Sanon becomes Amitabh Bachchan’s neighbor when she purchases a premium plot in Alibaug from The House of Abhinandan Lodha. The House of Abhinandan Lodha. Demand for luxury real estate is rising in Alibaug.  

Actor Kirti Sanon, a recipient of numerous national awards, bought a home in Alibaug, a beach town. As part of a project by The House of Abhinandan Lodha (HoBAL), the 2,000-square-foot premium plot, which cost more than Rs 2 crore, looks over a sizable green area. Amitabh Bachchan’s new neighbor, Sanon, acquired a 10,000-square-foot plot in April of this year. 

High-net-worth individuals (HNIs) looking for luxurious getaways and investment opportunities have recently favored Alibaug as a real estate destination. Its proximity to Mumbai’s developed infrastructure, and beautiful coastal surroundings have contributed to the recent spike in demand for upscale real estate. 

For these affluent investors looking to retreat into Alibaug’s real estate market, the recently launched MTHL connectivity further improves connectivity. 

According to the plans, HoABL will develop the stormwater and sewage drains, but plot owners will be responsible for building the property by state and local laws. Society for the 20-acre plot where more than 150 plots are sold will be established upon receipt of the Occupation Certificate (OC). The sizes of these plots range from 2,000 to 5,000 square feet. In addition to a natural water stream that runs alongside these plots and shares a plot with the main road, there are two clubhouses. 

Kriti Sanon said, “I am now a proud and happy landowner at The House of Abhinandan Lodha, beautiful development, Sol De Alibaug,” about her first investment with HoABL. My experience of purchasing land on my own has been empowering, and I have had my sights set on Alibaug for a while. My search was fairly specific: tranquility, seclusion, and a valuable addition to my investment portfolio. This investment impressed even my father. This opportunity met all the requirements and impressed even my father. This opportunity met all the requirements because it is in a prime location in the center of Alibaug, less than 20 minutes from Mandwa Jetty. The easiest thing about purchasing land from HoBAL was how simple the process was for me. It is the best time to invest in Alibaug. 

Earlier this year, Bachchan paid Rs 10 crore for a 10,000-square-foot piece of land valued at Rs 14.5 crore from HoABL.

“The House of Abhinandan Lodha has reached a major milestone with Kriti Sanon’s investment in Sol de Alibaug, further solidifying our position as premier land investors. Her selection highlights the charm of our beautifully designed retreat. The CEO of The House of Abhinandan Lodha, Samujjwal Ghosh, stated, “At HoABL, we are committed to reinventing opulent living, and with Sol de Alibaug, we offer not just land but an unmatched lifestyle.” 

Best real estate deal: a Rs 37 crore 12,000 square foot penthouse in Pune

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Pune’s most costly real estate transaction was the sale of a 12,000-square-foot penthouse, which went for Rs 37 crore. According to a statement from the business, the property is in Lodha One, Bund Garden, a project developed by Lodha, a listed real estate developer. Macrotech Developers is the developer of the property. 

Pune has registered 32 luxury apartment deals over the past two years (April 2022), with an agreement value exceeding Rs 10 crore. The highest value was Rs 18.5 crore. 

According to a statement from the company, the Lodha One (Bund Garden) penthouse is the most expensive in this segment after registration on RERA, with a price per square foot ranging from Rs 28,000 to Rs 29,000. 

Lodha One is the developer’s first luxury project in Pune. The penthouse in the project is called Emperor Palace. 

According to the company, Lodha’s decision to implement Bund Garden is a response to this demand and Pune’s growing land shortage. 

Three stories make up Lodha One Bund Garden, which offers homeowners a private terrace and a pool. Saint Amand, Lodha’s private hospitality service, provides a range of exclusive services to cater to the needs of its residents. The Singapore-based Sitetectonix firm created it with Lodha’s philosophy in mind. 

The tallest tower in Pune Camp is called Lodha One. According to the organization, the centerpiece of the project’s landscape design will be two magnificent banyan trees preserved for 150 years.

Real estate market registrations for properties  in Pune 

The data provided by real estate consultancy Knight Frank India indicates that the average number of property registrations in the Pune real estate market is between 14,000 and 20,000 units throughout the entire Pune district. Most properties in Pune’s real estate market are registered for between Rs 50 lakh and Rs 1 crore. 

For example, according to Knight Frank India data, in March 2024, out of over 21,000 property registrations in the Pune district, 33% were in the range of Rs 50 lakhs to Rs 1 crore; 32% were in the range of Rs 25 lakh to Rs 50 lakh; 14% in the range of Rs 1 crore to Rs 5 crores; and slightly less than 1% in the price range of above Rs 5 crores. 

Budget 2024: The real estate industry anticipates legislative changes to expedite procedures and spur expansion

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Reducing construction costs, granting industry status, and putting in place a single-window clearance system are still the main goals of the policy reforms developers and industry leaders are pushing for. 

The Indian real estate market is anticipating changes in the next Union Budget 2024, following periods of strong performance. By 2025, the sector’s share of India’s GDP will likely rise from 8% to 13%. According to the long-term forecast, the real estate market will grow to $1 trillion by 2030. 

Prominent industry figures anticipate that policy changes will improve transparency, expedite procedures, and spur expansion. 

“NITI Aayog’s Forecast of the Indian real estate industry reaching a market size of $1 trillion by  2030 underscores its favorable long-term outlook,” states Neeraj Sharma, MD, Escon Infra Realtors. The industry anticipates government programs that will reduce the cost of fuel, steel, and cement as inputs. Fulfilling the long-standing requests for industry status and expedited clearance producers would enable developers to apply for loans with lower interest rates and benefit from tax advantages. These actions would significantly improve the sector and encourage further expansion.” 

The real estate sector is one of the primary industries that increases GDP. Reducing construction costs, granting industry status, and putting in place a single-window clearance system are still the main goals of the policy reforms developers and industry leaders are pushing for. 

Mukul Bansal, MD of Motiaz, “India’s real estate market is expanding quickly due to rising housing demand. Strong expectations exist for the industry to receive industry status and implement a more effective single-window clearance system with the Union Budget 2024-25 drawing near. Fulfilling these enduring requests would invigorate the industry. But high taxes on basic goods like steel and cement have driven up the price of building a house. The 28% on cement is especially concerning because it highlights how quickly policy needs to change to keep up with demand.” 

Furthermore, the fact that the real estate industry employs a sizable number of casual laborers and is a major employer underscores the importance of supporting it. The importance of supporting the real estate industry is further demonstrated by the fact that it is a major employer and employs plenty of casual laborers. 

“The real estate industry plays a crucial role in driving growth in the Indian economy,” says Trisol RED’s MD, Shorabh Upadhyay. “One of its pressing needs is to obtain industry status.” With this designation, developers would receive lower-interest loans, tax breaks, and other benefits. This kind of support is necessary when finances are tight. Even with a robust rebound in recent years, the industry still needs  continuous  support from the government to maintain its upward trend.” 

“Commercial real estate stands as a pivotal driver of the country’s GDP growth, warranting high expectations from the government ahead of the Union Budget 2024-25,” says Sundaram Group CEO Harsh Gupta. The sector would benefit from easier access to credit and lower financing costs if it were given industry status, which is essential to meet the rising demand for commercial real estate. The industry awaits actions to address the 28% GST on cement and reduce the cost of steel and fuel inputs. Additionally, maintaining momentum and encouraging entrepreneurship in commercial real estate requires establishing a single-window clearance system.” 

These steps might accelerate the sector’s growth when combined with incentives for eco-friendly and effective procedures. 

Pyramid Infrstructure’s Ashwani Kumar states, “Despite industry optimism, challenges still exist. Prices play a big role in the real estate market, and building new projects becomes more expensive due to high taxes on basic materials like steel and cement. We expect a streamlined approval process and implore the government to address this matter. One of the main industries in the country that creates jobs is real estate, so policies that encourage it will benefit the economy as a whole.” 

Enhancing Jaipur’s High-End Properties: The Unique Perspective of Akshat Developers

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The real estate market in the Pink City is undergoing a dramatic upheaval. Known for its rich architectural and cultural legacy throughout history, Jaipur is becoming a luxury real estate hotspot. A combination of infrastructural improvements, economic growth, and a rise in demand for upscale housing developments are propelling the city’s expansion. This increase is consistent with patterns observed in Indian metropolis, where opulent living quarters are regarded as evidence of comfort and status.  

Industry reports state that urbanization, rising income, and changing lifestyles have all contributed to the luxury housing segment’s strong growth of over 30% in India in recent years. Although historically leading this sector have been cities like Delhi, Mumbai, and Bangalore, Jaipur is currently making a name for itself. 

Jaipur’s Akshat Developers: Raising the Bar 

The skyline of Jaipur has been molded for more than three decades by Akshat Developers, a reputable name in the real estate sector. Under the inspiring direction of Mr. Sunil Jain, MD, Akshat has finished several projects in desirable Jaipur locations. Sawai, their newest product, is a testament to their dedication to excellence and quality. 

The Pinnacle of Regal Living: Sawai 

Sawai, the project by Akshat Developers, is expected to change Jaipur’s definition of luxury living. Sawai is more than just a residential development; it is a lifestyle philosophy, crafted on the canvas of rich heritage and painstaking reinterpretation of Jaipur’s architecture. It is situated in Jaipur’s esteemed Statue Circle. 

Across a spacious five acres, of which one is devoted to green areas, Sawai blends in perfectly with the surrounding environment. The project evokes the spirit of royal living with its expansive landscapes and open architecture reminiscent of Jaipur’s forts and palaces. Sawai comprises five opulent villas and 91 exclusive apartments arranged over 11 towers. Sawai is one of the most prestigious addresses in Jaipur, with unit sizes ranging from 5500 to 8200 sq. ft. and prices between 10 and 15 crores. 

The project features a large 32,000-square-foot clubhouse carefully designed to provide an unmatched level of luxury living. Aside from well-kept, patterned gardens inspired by Amber Fort’s Mughal Garden, the amenities ensure each resident requires that every resident’s need is met. With landscape design assistance from P Landscape in Thailand, Sawai was created by renowned architects Mr. Sharad and Ms. Sangeeta Maithel of MA Architects, guaranteeing that every detail embodies refinement and quality. 

Sawai’s prime location affords its residents breathtaking views of the Aravalis, the central park, and the cityscape. The development’s abundant greenery inside and outside the building creates a tranquil atmosphere that makes it the ideal getaway from the bustle of the city. Sawai is the perfect example of regal living, with every part of the hotel reflecting the grandeur of Jaipur’s royal heritage while providing contemporary comforts.

Projects like Sawai by Akshat are the bar for luxury and exclusivity as Jaipur develops into a center for high-end real estate. Akshat’s integration of contemporary amenities with conventional design elements creates beautiful houses and a way of life that embodies balance and magnificence. Sawai is more than just a place to live; it is a lavish experience that redefines luxury in the Pink City. 

Five things to be aware of when Yamuna Expressway Authority begins selling over 350 plots close to Noida airport

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These residential plots are close to the Yamuna Expressway and the Noida International Airport. Aug 5, 2024, is the deadline for applications to the program. An allotment of plots will take place via a lucky draw on Sep 20, 2024. 

The Yamuna Expressway Industrial Development Authority (YEIDA), encouraged by the success of its residential plots scheme last year, has once again put over 350 residential plots in four different sectors near the future Noida International Airport up for sale, according to officials with knowledge of the situation. 

The Authority offers approximately 361 plots in seven different sizes as part of the scheme. August 5 is the deadline for registering for the plot scheme. Plots will be distributed using a luck draw in September. 

“Demand has increased across all market segments–residential, commercial, and industrial– as the Noida airport in Jewar is anticipated to commence operations shortly. Because of how quickly the area is developing, people want to live and invest close to the airport. The Authority has introduced a residential construction plot scheme to profit from these variables. The last day to register for the program is August 5, and registrations have already started,” YEIDA CEO Arun Vir Singh stated. 

YEIDA conducted a draw for 1,184 residential plots across three sectors earlier in October 2023. For the 1,184 residential plots in YEIDA sectors 16, 17, and 20, as many as 1.4 lakh people submitted applications. 

Plot count and location 

The scheme document states that these 361 plots are spread across four distinct sectors: 16, 18, 20, and 22D. The Yamuna Expressway, which links Greater Noida with the historic towns of Agra and Mathura, is next to these plots. The proposed Film City, the Eastern Peripheral Expressway (EPE), and the future Noida International Airport are all close to these plots. 

Sizes 

The residential plots scheme has seven distinct categories in which the plots are available. Along with larger residential plots ranging in size from 500 to 4,000 square meters, the scheme also features mid-size residential plots measuring 120 and 200 square meters. The offerings from the YEIDA include 84 200-square-meter plots, 77 162-square-meter plots, three 200-square-meter plots, and eight 4000-square-meter plots. The plan provides the highest number of residential plots –131—in the 300 square meter range. 

The scheme document states that these residential plots will cost Rs 25,900 per square meter. The 162-square-meter plot will cost roughly Rs 41.95 lakh, while the 120-square-meter plot is the smallest and will cost Rs 31.08 lakh. The approximate costs of the 200-square-meter, 300-square-meter, and 500-square-meter mid-size plots are Rs 51.8 lakh, Rs 77.7 lakh, and Rs 1.29 crore, respectively.

According to the document, the price of the large plots, which measure 1000 and 4000 sqm, respectively, will be approximately Rs 2.59 crore and Rs 10.36 core, excluding taxes and preferred location fees. The Yamuna Expressway Authority hopes to allocate these residential plots for a total revenue collection of Rs 343.04 crore. 

How will these stories be divided up? 

According to officials, a lucky draw will be held on September 20, 2024, to determine the distribution of these residential plots. Interested parties may pay a fee of Rs 600 to download the application form and brochure from Authrotiy’s website, www.yamunaexpresswayauthority.com. 

Payment schedules

According to officials, the Authority has implemented three payment plans to facilitate payment plans to ease the payment process for successful allottees. In option one, the entire premium — including the registration fee— must be paid in full upfront within 60 days of the allotment letter’s issuance date. 

Option two stipulates that half of the premium, including the registration fee, must be paid within 60 days of the allotment letter’s issuance date. According to the YEIDA scheme document, the remaining 50% must be paid in two equal half-yearly installments, which are calculated starting on the 61st day after the date of allocation, and interest is calculated at the rate of 10% annually. 

Option three requires allottees to pay thirty percent of the total premium within sixty days of the allotment letter’s date of issue. The remaining 70% must be paid in ten equal half-yearly installments, with 10% interest per year, starting on the 61st day after the date of allotment. 

The Bengaluru lease for the Bagmane property is renewed, and Samsung R&D Institute pays more than Rs 50 crore in rent each year

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The 4.2 lakh square foot property has a 60-month lease, is situated in Bagmane Goldstone, and is a component of the Bagmane World Technology Centre. Beginning on Jun 4, 2024, Samsung made a deposit payment of Rs 40.4 crore to complete the lease. 

The largest software research and development center of Samsung outside of South Korea, Samsung R&D Institute India-Bangalore Pvt Ltd, has extended its lease for five years at a rent of Rs 4.3 crore per month at Bagmane’s IT/ITeS Special Economic Zone (SEZ), which is situated in the Outer Ring Road IT corridor. Propstack, a data and consulting firm, obtained the documents. 

The 4.2 lakh square foot property has a 60-month lease and is situated in the Bagmane World Technology Centre’s Bagmane Goldstone building. According to the document, the lease began on June 4, 2024, and the monthly rent will increase by 5% annually. 

For the transaction, Samsung paid a deposit of Rs 40.4 crore, and the annual rent is approximately Rs 51.6 crore. The monthly lease payment made by the company for the Bengaluru property is approximately Rs 102 per square foot. SBG Software Private Limited is the property’s owner, and the company is leasing the space over 11 floors. 

The document indicated that the leased property has 10 exclusive elevators and 562 parking spaces in the building.

Samsung did not respond to inquiries sent to it. 

Samsung R&D Institute is the name of the conglomerate’s largest research and development facility located outside of its home country of South Korea (Samsung R&D Institute (SRI-B) is the name of the conglomerate’s facility that operates outside of its home country of South Korea. 

The documents indicate that the company leased the space in February 2019. The Bagmane WTC Park has a built-up area of 6 million square feet on 52  acres of land. 

A subsidiary of Redbrick Offices pays Rs 267.5 crore for 22 office spaces in Mumbai

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Including both transactions, the built-up area acquired at the Times Square building in Mumbai exceeds 87,000 square feet. According to the documents, the buyer has paid a total stamp duty of Rs 8.02 crore for these transactions. 

Documents viewed by CRE Matrix, a real estate analytics platform, show that Red Fox IT Infra LLP, a subsidiary of managed workspace provider Redbrick Offices, paid roughly Rs 267.5 crore in two separate deals for 22 office units in the Times Square building at Marol in Mumbai.

Including both transactions, the total built-up area acquired exceeds 87,000 square feet. According to the documents, the buyer has paid a total stamp duty of Rs 8.02 crore for these transactions.

The total number of parking spaces from the two agreements is 88, it was added. We bought the office buildings from NTPL Developers LLP.

Documents show that the first deal, in which Red Fox IT Infra LLP paid Rs 218.9 crore to buy up to 18 office units in the Times Square building in the Marol neighborhood of Andheri East, Mumbai, was executed on May 3, 2024. 

The purchaser of the 72,150 square-foot deal paid a stamp duty of Rs 6.56 crore. There are 73 parking spaces included in the accord. 

For Rs 48.54 crore, the company paid for as many as four office units on the sixth and eighth floors of the Times Square building during the second deal. These four office spaces total 15,468 square feet in built-up area, and the purchase includes 15 parking spaces. 

The sale deed for this deal was executed on May 8, 2024, and Red Fox IT Infra LLP paid a stamp duty of Rs 1.45 crore, per the documents. 

The buyer and seller of the deal were slow to respond. Upon receiving a response, the copy will be updated. 

High-profile business transactions in Mumbai 

Mumbai has recently seen several high-profile commercial real estate transactions. In June, the Kalpataru Infinia building in Santacruz East, Mumbai, was bought by ICICI Prudential Asset Management Company Limited for Rs 315 crore. 

In the same month, Santacruz East in Mumbai saw the purchase of multiple floors in a commercial building totaling over 70,000 square feet by Unity Small Finance Bank, which is owned by Centrum Group and BharatPe, for a sum of Rs 227 crore. 

In June 2024, Bollywood star Amitabh Bachchan paid approximately Rs 60 crore for three office units in Mumbai’s Veer  Savarkar Signature building. 

The Fort area headquarters of Tata Digital Private Limited (TDPL), a subsidiary of Tata Sons Private Limited, had its lease renewed in May 2024 for a monthly rental of Rs 2.98 crore. 

The importance of green certifications in Indian commercial real estate

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According to McKinsey, commercial real estate contributes 40% of global carbon emissions. There is, however, a beacon of hope: green building certifications. 

Though there is a worrying environmental shadow associated with India’s commercial real estate boom– according to McKinsey studies, the sector contributes an astounding 40% of global carbon emissions– there is cause for optimism: green building certifications serve as guidelines for creating environmentally friendly workplaces that will help Indian businesses and the environment grow sustainably. 

Energy Efficiency

Envision offices well-lit by natural light, furnished with energy-efficient appliances, and managed by intelligent technology that maximizes energy consumption. These are made feasible by green buildings. Consider the Infosys campus in Hyderabad, the world’s first IT SEZ building to receive the LEED Platinum certification. Its distinctive double-skin facade reduces heat gain and optimizes natural light, greatly reducing energy use. 

Water Conservation 

Green buildings handle water like a precious commodity. They use water-saving landscaping techniques, low-flow faucets, and rainwater collection for irrigation. Rainwater harvesting is used by its Green Centre in Gurgaon, the nation’s first LEED Platinum-rated building, to meet all its landscaping needs. 

Sustainable Materials 

The building materials of an office have a big effect on the environment. Green certifications encourage people to utilize recycled sustainable, and locally sourced materials to lower transportation-related emissions. A prime example is the World Trade Centre Noida, the first commercial building in India to receive a LEED Gold certification. It was built with minimal environmental impact using fly ash and recycled steel. 

Green buildings have many advantages that go well beyond protecting the environment. They result in observable financial gains for companies. Utility bills decrease as a result of less energy and water used. Furthermore, tenants are very interested in renting out green buildings due to the growing number of environmentally conscious consumers. For building owners, this means increased rental income and property values. Reputable corporations like GIC, Blackstone, and Brookfield have recognized this trend and are prioritizing their office buildings’ green certifications. 

There are further benefits to green buildings: 

Strengthened Reputation: 

Accompany’s brand image and reputation are strengthened by its commitment to sustainability through green certifications. 

Future- Proofing: 

As environmental laws change frequently, green buildings make it easy to comply with their new requirements. 

Technology is further revolutionizing green buildings: 

  • The Smart Joules system automatically adjusts energy consumption based on occupants and time of day. 
  • Intelligent Water Management: Water helps identify leaks, promotes water-saving practices amongst employees, and utilizes IoT technology to detect and address water leakages efficiently. 
  • Employee Well-Being: Caleedo uses technology to monitor temperature and air quality, creating a comfortable and healthy work environment that improves employee well-being. 
  • Wireless Security Solutions: Organizations such as Spintly provide wireless security systems, which do away with the construction waste that comes with conventional wired systems. 

The need for healthy work environments and the welfare of employees is growing, especially for foreign businesses looking to lease office space in India. Grade A office buildings are adopting this innovation due to this trend. Leaders in the industry understand that adopting green practices is not only wise for the environment but also prudent for business. 

Developers and investors can design and operate environmentally friendly offices by embracing PropTech solutions and green building certifications. These green procedures save money, draw premium tenants, and guarantee long-term success. This dedication to sustainability will influence how offices are built in India going forward, opening the door to a more environmentally friendly and healthful future for all. 

Why do wealthy Indians own the most real estate in London?

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 High and ultra-high-net-worth individuals (HNIs/ UHNIs) from India have long favored London as a foreign real estate investment destination. The clientele has evolved from industrialists and Bollywood celebrities to Indians who want to invest in London’s real estate market for their children who are going to be attending university there. 

One of the largest groups of property owners in London is comprised of Indians. According to Akash Puri, Director of International at India Sotheby’s International Realty, “Some are students and families who buy homes while traveling to the UK for education, others are UHIs with vacation homes abroad, and others have lived in the UK for generations. 

These days, the cost of real estate in London is similar to that of Mumbai and Delhi at home; a 1BHK unit costs Rs 3.2 crore, while a 3BHK costs Rs 5 crore and more. Rich Indians have a few favorite spots in London, including Oxford Circus on the west side of the city and Mayfair and Marylebone in the city’s center. 

Important complete factors 

Wealthy Indians are drawn to London as a destination for real estate investments for multiple reasons, according to an expert who spoke with HT Digital. According to them, the city offers possibilities for business growth, steady capital growth, currency diversification, effective taxation, a good standard of living, and residence options through real estate investments. 

“Investing in a property on the outskirts of London makes more sense than paying exorbitant rents for an extended period, and we wanted to secure a safer, higher-quality future for our children,” stated a couple who recently made their purchase. 

“Real estate prices in the region have continued to grow in the past few years, despite Brexit, which was expected to disrupt London’s prominence as a property market,” stated  Vivek Rathi, head of research at property consultancy Knight Frank India. He said that London’s liberal culture and reputation as a center of high-quality education are other advantages. 

Indians are also purchasing real estate in London due to the consistent capital growth and rental yield caused by a supply-demand imbalance. 

Demand for housing in London is higher than supply, with a typical 35% shortfall. The city remains resilient despite economic challenges because of this disparity. HNIs have invested in London for the past few years due to the city’s favorable property prices and stamp duty holiday for buyers. 

There are ultra-rich Indians who view owning prominent properties in desirable cities like Mumbai, New York, and London as a matter of prestige and status. 

This is how the figures add up. 

A Knight Frank report states that in 2023, the number of ultra-high-net-worth individuals in India increased by 6.1% annually, outpacing the global average growth of 4.2%. A person with a net worth of at least $30 million is considered ultra-high net worth.  

“Wealth transfer to foreign destinations is likely to increase as the number of NHIs and UHNIs in India increase, and this should find expression in London’s property market,” Rathi said. 

According to the report, residential real estate accounts for about 32% of the wealth of India’s ultra-rich, with 14% of that property situated outside that nation. In 2024, about 12% intend to buy a new house. 

According to a survey conducted by the consultancy, when asked which nations or regions have high net worth individuals would most likely invest in real estate, as many as 47% of UHNIs from India stated that they would want to buy a property in the UK, 41% in the UAE, and 29% in the US. 

UK-based Indian developers

Due to the various benefits that the UK property market offers, several Indian developers have made an effort to include London in their global portfolio. 

As Macrotech Developers, the Mumbai-based Lodha Group entered the London market in 2013. It proceeded with two residential developments in the downtown area, No. 1 Grosvenor Square in 2017 and Lincoln Square in 2016. 

A more recent example is the $200 crore investment made by commercial real estate investment platform Property Share into the UK’s warehousing industry. The advantages of the location will allow the company to expand its operations further into the city.  

Marquee clientele 

Numerous powerful businessmen, such as Neeraj Kanwar, Lakshmi Mittal, Ravi Ruia, Mukesh Ambani, and the Hinduja brothers, are known to own real estate in London. 

Adar Poonawalla, the CEO of Serum Institute of India, reportedly paid Rs 1,446 crore for a 25,000 square-foot Mayfair mansion, making it the most expensive house in London in 2023. 

However, there are rumors that Mukesh Ambani owns Stoke Park, a 900-year-old hotel outside of London. There are thirteen tennis courts, fourteen acres of private gardens, and a 27-hole golf course on this 49-bedroom estate. According to reports, the billionaire purchased the hotel for 57 million pounds, or Rs 529 crore, in 2020.

Section 106 of the Transfer of Property Act: Important Information for All Property Owners

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Section 106 of the Transfer of Property Act (TPA) governs lease termination to ensure a good landlord-tenant relationship. By serving a lease termination notice, the section gives owners the legal ability to reclaim possession of the property. Propertywala provides a template notice to vacate the premises and explains the legal responsibilities of owners and tenants under section 106 of the TPA. 

Tenancy and ownership obligations are also well-served by the Transfer of Property Act (TPA), which handles property transfers and related issues. The owner has the legal right to specify the conditions of the lease and, if necessary, to issue a notice of vacuity under Section 106 of the TPA. An example will help us better understand it: 

Landlord Mr. Rajendra Gupta is the owner of multiple rental properties. He returns to one of his stores one day to launch a new venture. But for the next three years, Mr. Ramesh, who has been operating a salon, has been in charge of the home. Mr. Gupta must now give written notice that he is leaving the property for his use. The process can be carried out easily by adhering to the guidelines provided in TPA Section 106. This article will explain the purpose of TPA Section 106 and what should be included in a formal notice to the tenant. 

Section 106 of the Transfer of Property Act: 

Section 106 of the Transfer of Property Act of 1882 governs the duration of certain leases in the absence of a contrast. In this section, the lessor or leases of immovable property shall serve a six-month notice period. This section applies to properties that are used for manufacturing and agriculture. To lease real estate for any other purpose, the lessor or lessee must serve a 15-day notice. The notice, which must be in writing and indicate the tenant’s intention to end the lease, must be sent by the day the tenancy is about to expire. 

An illustration of a notice under Section 106 of the Transfer of Property Act 

When drafting a notice under section 106, owners or legal counsel must include pertinent details. The notice must contain specifics like the date of the notice, the party’s name, a description of the property, the terms of the lease, and the date of termination. Here is an example of a format. 

[Owner’s name]

[Owner’s address]

[City, State, PIN code] 

[Date] 

[Tenant’s name]

[Tenant’s address]

[City, State, PIN code] 

Dear [Tenant’s Name], 

Subject: Termination of tenancy for [Property address] 

This notice informs you that your tenancy at [Property address] will end as of [Termination date]. Kindly leave the property by the specified date. 

I appreciate your cooperation. 

Sincerely, 

[Owner’s name] 

[Signature] 

Decision of the Supreme Court regarding Section 106 of the Transfer of Property Act

Nand Lal and Jitendra Rai had an oral rental agreement with a public trust headed by Shri Ramanand for two shops. After the tenants stopped paying rent, the trust sent lease termination notices by Section 106 of the Transfer of Property Act. The trust filed an appeal, but the court dismissed it because it was not registered under the Rajasthan Public Trust Act. The court’s initial appeal decision went against the trust, underscoring the significance of the trust’s registration. 

Afterward, the Supreme Court granted the appeal against the decision made by the lower court. The suit could proceed because of the trust’s later registration, even though it was initially barred because of its unregistered status. In favor of the trust, justice was done when the case was sent to the Trail Court for a merit-based decision. This case emphasizes registering and utilizing Section 106 of the TPA when terminating a lease. 

In conclusion, Section 106 of the TPA of 1882 establishes clear communication regarding lease termination. Safeguarding the interests of the landlord and the tenant and preventing disputes, makes the transaction go more smoothly. To prevent misunderstandings, tenants should receive a written notice that includes all the details of their lease. Property owners must understand the legal authority and provisions outlined in Section 106 of the TPA to manage tenants effectively. The purpose of these laws is to prevent potential problems and encourage a better landlord-tenant relationship.