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

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

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

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

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

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

From light to heavy assets 

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

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

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

Land availability

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Other property firms purchasing election bonds 

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

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

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

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

Reform the real estate industry to reintegrate women into the workforce.

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Women make up less than 8% of the workforce in construction, and they leave the industry on average after less than four years.

Twelve women were working in the construction sector in India. The report “Pink Collar Skilling: Unleashing Women’s Power in the Real Estate Sector,” published in January 2023, focused on this topic. The World Trade Center and Primus Partners produced the report, which quoted Colliers’ projections showing that, of the 57 million people employed in the construction sector in 2021, only 7 million were women. 

Construction companies estimate that this percentage is less than 8% in the wake of the lockdowns imposed by COVID-19, although official statistics are not yet available. The fact that women are paid 40% less on average than men in the same industry exacerbates the situation. 

While the number of women entering the construction industry at the executive level has significantly increased over the past ten years, keeping them there has proven to be challenging. Many women use their newly acquired skills to transition from construction to more manageable industries like consulting, finance, or even marketing following two or three years in the field. It is because the multi-level skills needed in construction are transferable to many other industries. Pay is higher, and jobs in these industries are less demanding. Seldom does this workforce return to the construction industry. If they do, it is never at the operational levels and always at the top of the management hierarchy. Women make up only 1-2 percent of construction workers at the senior executive level. 

Women cannot survive on construction sites due to the harsh working conditions and frequent isolation from urban centers. These areas have few well-established childcare and creche facilities, especially after childbirth. Transferring to industries in urban centers with more facilities catering to women is simpler. The allure of the city lights frequently makes up for migrant workers’ pitiful pay. Even these attractions wear off on distant construction sites, making it challenging to draw in women. COVID-19 made frontline workforces vulnerable, which caused a further decline. Many people struggle to make a living in remote locations with different dietary and linguistic customs. Even after-work entertainment options are scarce in these situations.

Filling local jobs for women with ITI training in rural areas will help close the skills gap in the workforce. The Construction Industry Development Council (CIDC) is collaborating with startups like Salam Kisan to provide drone operating skills training to rural women. As a result of the training, the team will be able to conduct various projects, including site surveys, surveillance, and project monitoring. 

A few contracting companies have also started installing coaches on construction sites. Rehiring women into the workforce requires significant benefits. They have to appear as fair, secure, and welcoming to women. It is necessary to provide safe housing and child-rearing facilities such as schools or hospitals and to establish compensation for the distance from in-demand city centers. Workers who leave the workforce to raise a family or for other reasons must be able to renter the workforce without hindrance; in some instances, they may even be allowed to retrain and pursue vocational certification.  

Lastly, it concerns how employers view the scarcity of workers, education, and upskilling. Establishing pay parity is equally crucial. If India’s severe labor shortage in the real estate and infrastructure construction sectors is to be dealt with fairly, workplaces and compensation packages must become child-women-friendly. 

Shevgaon: After illegal PMSes take root in a peaceful Maharashtra tehsil, the real estate market declines, and suicide rates rise.

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To invest with these unregistered entities, which have been offering astronomical returns, people have been moving from safer options and even taking out loans.  

Her history has been mainly quiet. Shevagaon lies in the Ahmednagar district of central Maharashtra. Renowned for its cotton commerce and sugarcane cultivation, the Thesil gained notoriety in the 1970s due to flooding caused by the overflow of the Jayakwadi Dam and recently due to an uncommon altercation among the residents in 2023. 

Shevgaon faces a new challenge from the sub-brokers running illegal portfolio management services (PMS) and promising people the stars.

Money is moving toward safer options like bank deposits and away from more conventional investments like real estate.

Financial advisor Hitesh Oberoi, based in Shevgaon and Ahmednagar, told Moneycontrol that “most people I know have withdrawn their fixed deposits and are dabbling in the equity markets for better returns.”  

More concerningly, individuals borrow money to invest with these illegal PMSs by taking out loans against gold and real estate. What is worse about this is that these arrangements are causing severe financial losses, thuggery, and suicides.  

Who owns these illicit businesses? 

Twenty-five-year-old Sai Kawade is one of the dream sellers. With a bold marketing campaign for Asitech Portfolio Management Services, he promises returns of 7 percent or 84 percent annually. Asitech is not a registered PMS and is thus an illegal service. 

In contrast, the top-performing legally registered PMSs in the country generated 50% returns over the previous year. People flock to unregistered entities because of the substantial difference in returns promised; they are often unaware that these are illegal establishments. 

We will update this article with Kawade’s response. 

Kawade presents himself on Facebook as an authorized person at Zrodha, but on Instagram, he appears as an Angel One sub-broker. As stated, Kawade is neither an authorized person nor a sub-broker; instead, Angel One and Zerodha informed Moneycontrol that he is unrelated to their brokerages. 

Unlike other PMS service providers in Shevgaon, Kawade does not transfer the client’s securities into his account. Instead, he asks clients to provide him with their login information, including their username and password and states that he will trade them through the client’s account. 

According to Kawade’s posts, he advises his clients to open accounts with Zerodha because he says he can avoid two-factor authentication with this brokerage’s account. 

Brokers must enable two-factor authentication (2FA), which entails a one-time password and a PIN/Password, before granting a client access to a trading or demat account. Software that gets around this for a Zerodha account, according to Kawade, is available.

According to Zeodha, who told Moneycontrol that there is no way to bypass 2FA on its platform, this is untrue. 

Phantasy luck 

Kawade uses standard techniques to promote his sell puts and call strategy, writing extensively about it on social media and sharing his trading account’s profit and loss (P&L) statements.  

Moneycontrol has written a great deal about how simple it is to create these P&L statements with easily accessible apps. Because statements can appear as though they came from respectable brokerage houses, it is simple to convince investors of them. 

Illegal PMSs typically fall short of expectations. These PMS managers take the capital of another client, promise returns for a few months, and then disappear with the majority of the client’s capital. 

This section of the story has a darker twist in Shevgaon. People have been hiring goons to get their money back from these PMS sub-brokers. 

According to news reports, the PMS managers are killing themselves because they can not return their client’s money, and they fear retaliation. 

Inhumane tactics 

A broker in Shevgaon reportedly ingested poison after investors demanded their invested capital and the promised return, according to a report published in Pudhari, a regional language newspaper in Maharashtra. Embankment of millions of rupees was the charge brought against the individuals in charge of this operation.

According to market insiders, investors are resorting to these drastic measures due to the use of leveraged capital.  

The market watchdog has issued directives prohibiting unlawful PMSs. Through the Sebi Complaints Redress System (SCORES), investors can voice their complaints against registered entities, including the brokerages that have hired these sub-brokers. Additionally, they can file a complaint via registered mail or email to the relevant Sebi department regarding unregistered, illegal PMSs. 

Investors who file complaints with the regulator may also include screenshots of their correspondence with these companies, including call recordings and WhatsApp conversations.  

Creating the Future: Guiding Indian Real Estate in the Direction of Sustainable Growth

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To turn Indian real estate into a sustainable success story, everyone involved must work together. In addition to promoting cultural diversity, economic stability, and enhanced living standards, this endeavor also entails protecting the environment. 

One of the main pillars of the Indian economy, the real estate industry, is undergoing a dramatic transformation. The demand for residential and commercial spaces is increasing as urbanization accelerates, with projections showing that 40% of India’s population will live in urban areas by 2030. Although this growth is encouraging, it also brings with it the urgent need to find a way to reconcile social responsibility, environmental sustainability, and economic growth. This issue is not specific to India; it is a problem that faces all countries as they work to establish fair, future-proof development models. 

The Foundations of Ecological Infrastructure

The core of India’s real estate revolution is the shift to sustainable infrastructure. It involves a paradigm change away from traditional building techniques and toward tactics incorporating green building materials, energy-efficient designs, and eco-friendly practices. The market has enormous potential to promote sustainable practices because it could grow to a $1 trillion industry by 2030. 

Leading the way are projects like Godrej Garden City in Ahmedabad and Mahindra World City in Chennai, which demonstrate how incorporating solar power and rainwater harvesting can lower environmental impact while enhancing quality of life. But the problem goes beyond specific initiatives and includes more general issues like waste management, air pollution, and water scarcity. Establishing a new benchmark for the sector, the Indian Green Building Council (IGBC) is instrumental in advancing sustainable practices throughout the lifecycle of building projects.  

Technology and Innovation: The Way Ahead 

The real estate industry in India is evolving primarily due to innovation and technology. Intelligent building technologies, sustainable construction practices, and renewable energy systems are imperative. Using 3D printing to build affordable homes in Noida is an excellent example of how technological advancements can reduce costs and improve sustainability in the building industry. 

Smart cities, like Gujarat’s Dholera, are redefining urban living by combining e-governance, digital infrastructure, and citizen participation. Building management systems incorporating IoT devices, intelligent sensors, and big data analytics is a significant step toward creating more waste-free, efficient, and health-promoting structures. One of the main projects in Ayodhya’s Vedic City Sustainability Index is a ground-breaking idea that uses the UN Sustainable Development Goals to assist policymakers in balancing quality of life and infrastructure planning. 

Cooperation in Support of Sustainable Growth

Real estate sustainable development necessitates a multisectoral strategy. Encouraging private-sector investment in green buildings and infrastructure requires public-private partnerships, government incentives, and regulatory frameworks. This cooperative effort must involve civil society alongside the government and corporate sectors to guarantee that developments meet higher social and environmental goals.  

Community Engagement and Inclusivity 

The real estate industry needs to put inclusivity first to grow sustainably. It includes creating affordable housing, guaranteeing access to necessary services, and establishing public areas that foster social cohesiveness. Incorporating local communities into the development process ensures projects align with the needs and preferences of the populace, thereby cultivating a shared dedication to sustainability.  

Raising Awareness and Developing a Sustainable Culture 

Education and awareness are also essential for a sustainable real estate industry. The initiatives vary from offering specialized training to real estate and construction professionals to integrating sustainability into school curricula. Such educational initiatives are essential to developing a sustainable culture in the sector. 

Overcoming Obstacles: A Coordinated Method 

There are many challenges in sustainable real estate, such as budgetary constraints, legal barriers, and cultural opposition. It requires collaboration from all stakeholders, a well-coordinated approach, and supportive legislation. Clever funding solutions are also necessary. 

A Request for Action 

It will take cooperation from all parties to make Indian real estate a sustainable model. This path includes preserving the environment by promoting social inclusion, economic stability, and improved quality of life. Collaboration, innovation, and a dedication to sustainable practices will be critical as the industry develops. 

The time to act is now. We must unite in our commitment to sustainable growth to lay the foundation for a future in which Indian real estate drives national development and sets a global standard for sustainability. Let us embark on this historic journey together to build an inclusive and sustainable future for Indian real estate, one project at a time.  

MAHARERA Cancels 13,785 Real Estate Agents’ Registrations

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The Maharashtra Real Estate Regulatory Authority (MAHARERA) took a significant step and revoked the registrations of 13,785 real estate agents. This ruling demonstrates the authority’s dedication to upholding integrity in the real estate industry and enforcing regulatory compliance. 

The reason for the cancellation of registrations is that the individuals did not follow the regulations and did not behave professionally and ethically. To protect the interests of stakeholders and homebuyers, MAHARERA has taken strict action to enforce accountability and transparency in real estate transactions. 

A wide range of real estate agents in Maharashtra have had their registrations revoked, underscoring the authority’s proactive stance in resolving non-compliance issues within the sector. Enforcement actions by MAHARERA function as a disincentive to unscrupulous practices and emphasize the significance of conformity to regulatory standards.

Deactivating registrations creates a ripple effect in the real estate market, making things more transparent and accountable for buyers and sellers. It highlights how vital regulatory supervision is to maintaining moral behavior and just business practices in the sector. 

Stakeholders expect increased trust and confidence in the real estate market as long as MAHARERA maintains regulatory standards and monitors compliance. By acting decisively, the authority sets a clear precedent that failure to comply is unacceptable, encouraging a culture of professionalism and integrity within the industry.

Mumbai has had the fastest coworking space rental growth since FY20, at 27%.

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Mumbai has seen an increase in coworking average monthly rentals over the last four years, at 27%, followed by Gurgaon at 19%, per a recent MyHQ by Anarock report. 

According to a recent MyHQ by Anarock report, Mumbai has seen an average monthly rental growth for coworking spaces over the past four years (27%), followed by Gurgaon (19%). 

The report encompasses six towns: Bengaluru, Delhi, Mumbai, Gurgaon, and Noida.  

In Mumbai, the average monthly rental cost for a flex space seat was Rs 15,900 in FY 2024 compared to Rs 12,500 in FY 2020. 

Gurgaon saw a 19% increase in that period, going from roughly Rs 8,500 per month per seat in FY2020 to roughly Rs 10,100 per month per seat in FY2024. Rentals for Delhi’s flexible workspace increased by 18% between FY2020 and FY2024, going from Rs 10,000 to roughly Rs 11,800 per space per month.  

The average monthly rent for flexible spaces in Bengaluru increased from Rs 7,800 per seat in FY2020 to Rs 9,000 per seat in FY2024, representing a 15% increase. According to the report, the average monthly rental price of flex spaces in Noida increased by 14% over the previous four years, from Rs 6,500 per seat in FY2020 to Rs 7,400 per seat in FY2024. 

“In recent years, the Asia-Pacific area has become a significant market for coworking spaces, and demand is rising quickly. Japan, China, India, and Hong Kong are a few of the major cities that are experiencing rapid expansion. According to Utkarsh Kawatra, Senior Director of myHQ by ANAROCK,” India, as a hotbed for startups across various sectors and industries, is witnessing a steady demand for flexible, economical workspaces.” 

In the current fiscal year, coworking accounted for 18% of the office supply in the top seven cities’ office leasing market. A report by MyHQ by Anarock estimates that the flexible office real estate market will grow from 55 million square feet to 100 million square feet by 2030. 

Financial support for the coworking space has also been encouraging, with more funding coming in after COVID-19 than before. 

An average coworking space of 20,000 square feet can fetch an internal rate of return of 40-70%.  According to the report, up to 70% of businesses  use a hybrid work style. 

According to two out of three industry experts, by 2030, coworking spaces will become more in demand than traditional office spaces. Opening coworking spaces is another move by hotels and food and beverage establishments to increase revenue from their daytime unsold inventory. 

In various areas of Delhi, DDA provides over 600 apartments at discounts of 15 and 25 percent.

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445 of the 656 apartments for sale are 2 BHK MIG apartments, and 211 are 1BHK LIG apartments. 2 BHK apartments in Narela typically cost between Rs 1 crore and Rs 1.02 crore, but after discounts, these units will only cost between Rs 75 lakh and Rs 87 lakh. 

Registration for the more than 600 apartments in various categories that the Delhi Development Authority (DDA) has floated began on March 14, 2024, according to officials with knowledge of the situation. Prices for the apartments will vary between fifteen and twenty-five percent. 

In addition, the Authority listed 1042 apartments in the lower income group (LIG) and higher income group (HIG) categories for sale at the previous rates. 

According to officials, these two deals are a part of the Diwali Special Housing Scheme 2023, which is currently in progress and will sell apartments gradually. These apartments will be distributed according to the first come, first served (FCFS) rule. 

According to a senior DDA official, the scheme offers flats at discounts of 15 and 25 percent for various categories, including the middle-income group (MIG) and lower-income group (LIG). 

“Narela and Ramgarh Colony, which are close to Jahangirpuri, are the locations of these discounted 2BHK and 1BHK apartments. We are giving the general public a 15 percent discount and all government employees— including those in the federal, state, and local governments, autonomous organizations, PSUs, and DDA— a 25 percent price reduction,” the unnamed official stated. 

The official went on to say that the goal of the action is to increase sales of mid-segment and affordable homes by clearing out inventory. 

445 of the 656 apartments for sale are 2 BHK MIG units, and 211 are 1 BHK LIG units. After a discount, 2 BHK apartments in Narela will be available for between Rs 75 lakh and Rs 87 lakh, compared to their usual price range of Rs 1 crore to Rs 1.02 crore. 

Similarly, the prices of LIG flats range from Rs 15.3 lakh to Rs 16.9 lakh, but after a discount, these flats will be available for Rs 13.1 lakh to Rs 14.5 lakh. 

Furthermore, the 1042 apartments in Jasola, Siraspur, Rohini, and Loknayakpuram will be available at the previous prices. The remaining 1034 apartments in Jasola fall into the 1 BHK LIG category; only 8 HIG flats (3 BHK) are available under the scheme. 

445 of the 656 apartments for sale are 2 BHK MIG units, and 211 are 1 BHK LIG units. 2 BHK apartments in Narela typically cost Rs 1 crore and Rs 1.02 crore, but after discounts, these units will only cost between Rs. 75 lakh and Rs. 87 lakh. 

Similarly, LIG apartments have a price range of Rs 15.3 lakh to Rs 16.9 lakh; however, after a discount, these apartments will only cost Rs 13.1 lakh and Rs 14.5 lakh. 

In addition, the 1042 flats in Jasola, Rohini, Siraspur, and Loknayapuram are available at previous rates. The scheme only offers 8 HIG flats (3 BHK) in Jasola; the remaining 1034 apartments fall into the 1 BHK LIG category.  

These apartments have prices ranging from Rs 14 lakh to Rs 2.18 crore. According to officials, all these apartments are available on an FCFS basis. 

77% of foreign real estate investments in India between 2019 and 2023: report

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A report released on Wednesday stated that between 2019 and 2023, foreign inflows accounted for 77% of all institutional investment in Indian real estate, indicating “continuing confidence” in the industry.  

According to real estate consultancy Colliers, the average yearly total investment in that period was $ 5.1 billion (see 2024 Investor Insights—Country Spotlight Series’ report). Four billion dollars came from outside sources. 

Managing director of Colliers India’s Capital Markets & Investment Services, Piyush Gupta, stated, “Global investors have always remained at the forefront and consistently infused an average of $4 billion annually in the last five years, showcasing continued commitment and confidence towards the sector.” With an average inflow of $2 billion, the office sector saw the highest. 

The alternatives sector is worth $0.5 billion, with the remaining sectors being residential, mixed-use, industrial, and logistics, each worth $0.4 billion.  

“Residential, industrial, and alternative properties are likely to witness renewed interest, even though income-yielding office assets continue to enjoy strong preference,” the report stated.

The top two investors in Indian real estate are the United States and Canada, and interest from Asia–Pacific (APAC) nations like Singapore, Hong Kong, South Korea, and Japan is growing.   

According to the data in the report, inflows into Indian real estate from APAC doubled to $1.8 billion in 2023 from $0.9 billion in 2019. The region brought in 41.1 billion in 2022 but only $57% of the amount in 2023. 

APAC nations are interested in residential, industrial, and warehousing assets and invest 70% of their money in office space in India. 

Due to strong demand and a favorable business climate, India’s real estate market “witnessed increased activity” in 2024. “Security about the policy environment, closing the gap between buyers and sellers, and investor intent to deploy more capital across real estate asset classes are some of the causes why heightened activity is predicted,” the report stated. 

Wish to live next door to Amitabh Bachchan? Your chance to purchase a 3,000-square-foot property close to Jalsa

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The auction’s managing bank, Deutsche Bank, has set the starting price at Rs 25 crore. 

For those interested, it might be feasible to reside next door to Bollywood star Amitabh Bachchan. Nevertheless, the cost is high.

A bungalow close to Bachchan’s renowned home, Jalsa, within Mumbai’s upscale Juhu area will soon go up for auction. Deutsche Bank has set the starting price at Rs 25 crore. The auction is scheduled for March 27 and will include over 3,000 square feet of indoor and outdoor space, according to Moneycontrol. 

Segmentation and Reconstruction of Financial Assets and Enforcement of Security Interest Act (SARFAESI) of 2002 applies to this sale. The bank had demanded repayment of the Rs 12.89 crore debt from Seven Star Satellite Pvt. Ltd. and other borrowers and co-borrowers. 

The bank put the property up for auction after they couldn’t make the required payments. The bank requests that potential buyers provide an earnest money deposit (EMD) of Rs 2.50 crore.  

Purchasing a home at a bank auction carries risks. 

People frequently believe that properties sold at auction by banks are free of legal problems. However, the notice typically states that the bank considers the property to be in good condition. It shall not, however, be liable for any unreported legal matters or subsequent claims brought by outside parties.

When selling properties at auction, legalese expressions like “as is where is” and “whatever there is” are there. These demonstrate that every potential encumbrance is legal and physical in the price. 

Any issues that arise after the property is sold during auction belong to the buyer. According to experts, buyers may discover that a court order opposing the bank’s auction or that the property is involved in legal disputes. Furthermore, it is possible that banks only own the property on paper. Therefore, the former owner may still be residing there. 

Before bidding, it is essential to review each aspect carefully. Banks have information about the properties and provide advance notice of online auctions. It is not wise to take the Bank’s words at face value. Your new property may be co-owned by someone else, in which case the bank is unlikely to assist you. 

Gurgaon’s Signature Global real estate developer will deliver 17 million square feet by the end of FY 26

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These units, launched in Gurgaon and Sohna in 2021-2022, are all in the mid-segment and affordable category. The revenue recognition for these projects is Rs 11,000 crore. 

According to a top company executive who spoke to Moneycontrol, listed real estate developer Signature Global will finish and deliver over 17 million square feet of space in its 28 distinct projects across the Gurgaon and Sohna regions by the financial year 2025-2026 with potential revenue of Rs 11,000 crore. These will all be affordable, mid-segment units that will go on sale in 2021-2022. 

According to Signature Global’s Chairman and Whole-Time Director, Pradeep Aggarwal, these initiatives are underway in Gurgaon and nearby suburbs like Sohna.  

“By FY 2025-2026, we hope to deliver and finish these 17 million square foot projects. The revenue recognition for these projects is Rs 11,000 crore. We plan to begin completing these projects in 2025. According to Aggarwal, Moneycontrol, “The projects are a mix of mid-segment and affordable categories in a ratio of 70:30.”

According to him, the mid-income segment apartments at Signature Global start at Rs 1 crore, while the affordable category flats begin at Rs 25-30 lakh.

Twenty-eight projects -23 residential and five commercial and retail — are scheduled for completion by 2026, according to data provided by Signature Global. Of the twenty-three housing projects, eight are in the Gurgaon mid-income category, six are in the Sohna mid-income category, and nine are in the affordable segment.

218.5 acres of land in Sohna and Gurgaon are part of the overall development. These projects will likely require a total investment between Rs 7,500 and Rs 8,000 crore.

In addition, Signature Global intends to introduce new projects with a top line of between Rs 10,000 and Rs 12,000 crore in the upcoming fiscal year and 10 million square feet of saleable space. Agarwal says the company will develop ten million square feet of land in the next fiscal year.

“The new launches will comprise three projects, which will come up in Gurgaon sectors 71, 84, and Sohna region of the district. These will be premium projects with a ticket size starting from around Rs 3 crore,” he said.  

According to Aggarwal, these projects will require an investment of about Rs 6,500 crore, including the cost of the land, with an estimated top line of about Rs 12,000 crore. 

In an attempt to raise Rs 730 crore, Signature Global successfully conducted its first public offering in September 2023. 11.88 times as many shares as there were in the public offering, which included an Offer for Sale (OFS) for Rs 1277 crore and a new issue of shares valued at Rs 603 crore.

Signature Global has supplied ana rea of 6.7 million square feet through December 2023. In addition to the 16.9 million square feet it is now developing, there are another 28.4 million square feet of potential saleable space in the works.

Due to increased revenue, the real estate company reported a combined net profit of Rs 2.17 crore for the quarter that ended in December. During the comparable period in 2017, the company reported a net loss of Rs 44.89 crore.  

MahaRERA reports that the success rate of agreements between developers and homebuyers is approximately 50%

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The RERA Act mandates that MahaRERA provide a forum for consumer or promoter associations to establish dispute resolution to promote the peaceful resolution of conflicts between developers and homebuyers. 

The success rate of MahaRERA’s conciliations in settling disputes between real estate developers and homebuyers was 35 to 50 percent. Data given to MahaRERA indicates that approximately half of them proceed with hearings following the failure of conciliation. 

According to MahaRERA’s data, since the conciliation forum’s establishment in 2018, the organization has handled over 1,200 cases. 

“The conciliation process is going well, with a 35-50% sensation. As things are closed, it is much faster, and there are no more appeals. We do handle cases that go back to us. Ajoy Mehta, Chairman of MahaRERA, told Moneycontrol 50% of the cases, which is a respectable rate. 

Of the 1,231 conciliation cases handled, 1,061 have been settled, and 170 are still pending. However, according to MahaRERA, the success rate of conciliation is between 35% and 50%. 

Conciliation forum

As per the Real Estate (Regulation and Development) Act, 2016, Section 32 (g), MahaRERA must allow developers and homebuyers to settle their disputes amicably using dispute resolution forums established by the promoter or consumer associations. 

The forum consists of promoters’ association representatives from Mumbai Grahak Panchayat. This forum handles disputes between developers and homebuyers resulting from the RERA Act. 

It occurs following the buyer’s registration with the conciliation forum. The MahaRERA conciliation forum holds hearings after the developers approve the request to resolve conflicts. 

Homebuyers can file a complaint with MahaRERA if the developers refuse to participate in conciliation. If a developer or homebuyer fails to comply with the terms of the agreement reached at the conciliation forum, the aggrieved party may choose to complain with MahaRERA. 

Grievances

The MahaRERA has received 24,379 complaints from homebuyers against developers, or vice versa; orders have been in more than 16,474 cases from Maharashtra.

Ways to raise the rate of success?  

Members of the conciliation forum assert that party-centricity is the cornerstone of any mediation or conciliation process, and the success rate will only rise when all parties involved approach the process with a settlement mindset. 

“A conciliator functions as a mediator, and for there to be a settlement, all parties must cooperate. According to Hitesh Thakkar, a partner at Prem Group and conciliator of the MahaRERA conciliator forum on behalf of NAREDCO, the apex body of developers, “the hearings at the forum do not happen on merits, and all concerned parties have to come with that mindset considering the success of conciliation is also depending on that.”  

To construct a housing project worth Rs 1,700 crore, Mahindra Lifespace purchases a 9.4-acre plot of land in Bengaluru

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According to the report, the land’s potential gross development value is Rs 1,700 crore, with 1.2 million (12 lakh) square feet of FSI, mainly consisting of mid-premium residential projects. 

Mahindra Lifespace Developers Ltd., a real estate company, announced on Tuesday that it had purchased 9.4 acres of land in Bengaluru to build a housing complex that would bring in an estimated Rs. 1,700 crore. 

The Mahindra Group, a business conglomerate, announced via a regulatory filing that it has acquired 9.4 acres of land in Whitefield, Bengaluru. It also stated that the land would primarily consist of mid-premium residential apartments with a gross development value of approximately Rs 1,700 crore and approximately 1.2 million (12 lakh) square feet of FSI potential. 

Bengaluru is still a target for Mahindra Lifespace Developers, and we are eager to increase our presence there, according to Managing Director and CEO Amit Kumar Sinha. It is consistent with our plan to strengthen our position in India’s growing cities, especially in the areas that are important to us. In response to the dynamic demands of Bengaluru’s home buyers — who have demonstrated an eagerness to recognize and purchase high-quality projects– he stated that the company remains to deliver top-notch projects.  

Mahindra Lifespaces anticipates starting the project’s first phase in the next 12 months. The company’s development portfolio includes seven Indian cities and 35.06 million square feet is finished, ongoing, and upcoming residential projects. Additionally, it manages and develops more than 5,000 acres of current and future projects at its four integrated developments and industrial clusters.  

Gurugram real estate prices after the opening of the Dwarka Expressway

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One of Gurgram’s primary residential hubs is now the Dwarka Expressway. Plans call for constructing upscale residential structures alongside business and retail ventures. 

On March 11, Prime Minister Narendra Modi officially opened the Haryana section of the Dwarka Expressway. It will improve traffic flow and lessen congestion on NH-48 between Delhi and Gurugram. Real estate experts say the Dwarka Expressway in Gurgram has become a significant residential hub. Plans call for the opening of commercial and retail buildings in addition to upscale residential properties. With the expressway now operational, housing prices should also gradually increase. 

At an approximate cost of Rs 4,100 core, the 10.2-km Delhi-Haryana Border to Basil Rail-over-Bridge (ROB) and the 8.7-km Basai ROB to Kherki Daula compromise the two packages of the Dwarka Expressway’s Haryana segment.  

I will offer direct access to the Gurugram Bypass and Delhi’s IGI Airport. A backup connection between Delhi and Gurgaon has to help ease traffic congestion. 

Residential clusters are starting to appear alongside the Dwarka Expressway.

The Dwarka Expressway has enhanced connectivity between Delhi and Gurgram and allowed the growth of residential clusters alongside it, according to a JLL analysis. The region’s transition into a priority development zone is the primary driver of the cluster’s overall growth. 

In 2023, 12,409 residential units were sold in this submarket, making up 66% of all sales in Gurgaon. In comparison to 2022, sales increased by 67%. The incredible value of these residencies was Rs 25,000 crore. 97% of these 12,409 units were still in construction when they arrived for sale. According to the JLL analysis, customer confidence in these under-construction projects is rising with their timely completion. 

The new hub for upscale debuts in Delhi NCR is the Dwarka Expressway-New Gurgaon cluster. This submarket was home to 11,270 dwelling units in total in 2023, accounting for 69% of Gurgaon’s total launches. According to the analysis, 4,231 units went on sale in 2022, a 166% increase over the previous year. 

Notably, this submarket is also seeing the launch of high-end projects. Up to 38% of the new launches in this cluster had a budget of at least Rs 2.5 crore. 

A few project launches saw all of their sales within a few days of their launch, and the launches received demand, according to Samantak Das, Chief Economist and Head of Research at REIS, India, JLL. 

Since CY2022, real estate developers have spent over Rs 3,100 crore purchasing roughly 175 acres of land in this submarket over 17 different transitions.

Since 2022, real estate developers have purchased about 175 acres of land in this submarket through 17 transactions totaling more than Rs 3,100 crores. Ritesh Mehta, Senior Director and Head (North and West), Residential Services and Developer Initiative, JLL India, stated that in addition to outright purchases, developers have signed JDAs/JVs for over 30 acres in this submarket to develop real estate projects in the past year. 

In 2023, this cluster saw the construction of over 11,000 housing units. In this submarket, 29,742 units are presently under construction. RRemarkably, 13, 476 (45%) of the projects listed as still in progress should be completed by 2024. 

The average capital value of the submarket increased by 15% from 2022 to Rs 10,000 per square foot in 2023. A more equitable price increase could happen as more products arrive in each submarket category. According to the JLL analysis, new phases of earlier projects are entering at higher prices due to the strong demand from buyers. 

“Even though the project missed a lot of deadlines, the better infrastructure in and around the area as of today will undoubtedly improve the real estate prospects of the region. In the meantime, more than 10,515 housing units in the area will get ready for occupancy, according to Santosh Kumar, vice chairman of ANAROCK Group. 

Effect on pricing and demand 

End users’ demand has increased due to improved connectivity from Dwarka and other areas of West Delhi. Most of these buyers want to move into apartments with modern amenities, like assigned parking spaces, to raise their quality of life. 

From 2013 to 2023, almost 53,030 units in a range of price points were introduced here, according to ANAROCK Research. Between 2020 and 2023, the average price of real estate in the area increased by a substantial 41%, from Rs 5,890 per square foot in 2020 to almost Rs 8,300 in 2023. Now that the Expressway is starting to operate, this may continue north. 

The project will completely transform Delhi to Gurgaon connectivity. In addition to cutting down on travel time, the expressway’s route through important locations like Harsaru, Pataudi Road, Farrukhnagar, and several Gurgram sectors will help to boost demand for real estate in recently developed areas, which has dropped because of poor accessibility. 

“This groundbreaking connection between Indira Gandhi International Airport and Dwarka Sector 21 is evidence of the government’s dedication to improving the quality of life for its citizens and promoting development in the surrounding area,” stated Mudassir Zaidi, Executive Director– North at Knight Frank India. 

The founder and CEO of Simplease, Gundeep, notes that property values along the Dwarka Expressway have increased. Going forward, new launches for major developers should cost more than Rs 20,000 per square foot. 

Recent months have seen a spike in the area’s real estate prices due to demand from Delhi. “Due to the area’s proximity to the capital, several individuals from Dwarka and particular parts of South Delhi are considering moving there. He claims that local residential developments’ amenities and lifestyles appeal to buyers. 

According to Pradeep Mishra, the founder of Homents and an expert in real estate, the Dwarka Expressway’s opening will facilitate access to the area and encourage more end users to buy property along the belt. 

The History 

Brokering properties in the market since 2011, Mishra says most of the developments launched along the stretch back in 2011 have prices between Rs 2500 and Rs 2700 per square foot. In 2012, these went up to about Rs 3,500 per square foot. At the close of 2013, a few developers entered the market with projects priced between Rs 6000 and Rs 7000 per square foot. After COVID-19, prices only marginally increased to Rs 7500 per square foot, with the focus being on unsold inventory. 

The news that the road would eventually open affected 2022-2023 real estate prices, with almost all new projects starting at about Rs 10,000 per square foot. Future releases are anticipated in the market, primarily in the luxury segment, pierced between Rs 18,000 and Rs 19,000 per square foot thanks to improved connectivity. According to him, the price per square foot of housing units in the secondary market is between Rs 13,000 and Rs 15,000. 

“Recently, the market has seen a rise in interest from buyers from West and South Delhi who wish to relocate to apartment buildings with contemporary features and assigned parking spaces. Non-resident Indians have also invested in projects along Dwarka Expressway,” he said.

According to Vineet Chellani, CEO and founder of Asset Deals, property values have increased in the market during the last four years. Buyers are end users who sold their South and West Delhi properties and moved into apartments with modern amenities. He thinks that prices in the area are likely to go up further. He predicted that “commercial properties too will witness increased traction going forward.”

The residential segments along the belt have seen a significant price increase, particularly in the premium and luxury segments, according to CBRE India. Luxury project prices (above Rs 4 crore) increased from 12% in 2022 to 26% in 2023. In 2022 and 2023, prices in the premium segment
(Rs 2 crore and Rs 4 crore) rose by 19% and 34%, respectively. The cost of projects in the mid-segment (Rs 45 lakh to Rs 1 crore) increased from Rs 10% in 2022 to 12% in 2023.

Are you thinking of renting an apartment? 

The cost of a 1500-1800 square foot apartment in a gated community near the Dwarka Expressway can range from Rs 30,000 to Rs 40,000 per month for a 3BHK unit. A 2 BHK has a marginally lower rent. According to him, the monthly rental costs of 4BHK apartments range from Rs 45,000 to Rs 50,000, while villas cost between Rs 1 lakh and Rs 1.5 lakh. Along the belt, there are also a few studio options accessible, claims Mishra.  

Unsold stock 

The Dwarka Expressway will undoubtedly change the surrounding real estate market. The ten-year wait for the expressway has already sparked a boom in residential construction, particularly in the areas that connect Delhi and Gurgaon. 

“We are seeing a promising decline in unsold inventory levels in these sectors, from a significant 25-30% 8-10 years ago to a mere 7-8% now,” stated Anshuman Magazine, chairman and CEO of CBRE’s India, South-East Asia, Middle East & Africa. “With the expressway now complete.”

Prospects for the future 

All parties involved in this significant public infrastructure project will profit once the expressway opens. It will also positively affect all kinds of assets. Future developments will include retail and commercial spaces, according to the JLL analysis. 

In the coming years, the belt will see an increase in premium residential properties and commercial and retail developments. In response to the growing demand, developers will continue to buy land parcels to begin new residential developments. It stated that residential launches will pick up steam in all price ranges.  

Investors flock to Coimbatore as the residential real estate market outperforms Tier-1 cities.

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Relying on its industrial and economic growth, Coimbatore has become one of the leading real estate development stories. Investment appeal has increased due to significant strategic projects like defense industrial parks, airport expansion, bypass institutions, and IT development. The recent floods in places like Chennai and Thoothukudi have accelerated the city’s transformation into a real estate hub as investors’ attention has shifted from major cities to Tier 2 cities. Coimbatore is a safer and more promising place to invest because of its pleasant climate and quality of life.  

The investment hub

Due mainly to its variety of real estate options, which include both residential and commercial spaces, Coimbatore is becoming an increasingly attractive destination for real estate investors. In particular, there has been a spike in activity and investments in real estate projects in Coimbatore Western Bypass. Due mainly to its variety of real estate options, which include both residential and commercial spaces, Coimbatore is becoming an increasingly attractive destination for real estate investors. In particular, there has been a spike in activity and investments in real estate projects in Coimbatore Western Bypass. This trend is because Coimbatore attracts investors looking for growth and value in the real estate industry because of the city’s lower costs relative to larger cities and the substantial returns these investments can produce. 

Real Estate Property Value Appreciation 

Coimbatore’s land value has been rising, indicative of the city’s increasing economic vitality, potential as an IT hub, and allure as an investment destination. Near Coimbatore, neighborhoods like Kovaipudhur, Edayapalayam, Chinnamettupalayam, Vellakinar, Thudiyalur, Palathurai Road, Nanjundapuram, are becoming more well-known for their tranquil surroundings that are suitable for residential development and have more room for appreciation in the future.  

This course is seeing a new age of change in the residential real estate market, with advanced types of living spaces like plotted development communities. 

The surrounding “Tier 2” areas of Coimbatore also experience significant growth in light of the city’s real estate boom, demonstrating the positive spillover effect of the city’s success. Because of its proximity to Coimbatore’s thriving market and warm weather, Kovaipudhur, for example, has recently become the hub for those looking for high-quality residential and commercial investment opportunities. This growth points to a pattern in which urban overcrowding and the desire for quiet yet convenient living spaces in peripheral areas are more alluring due to their appreciation potential. 

The economic dynamism of Coimbatore, strategic development projects, and a growing number of foreign and domestic investments are driving the city’s real estate market, which will continue to grow as investors and end users alike find the city attractive due to its affordability and high return potential. 

In just five days, Casagrand Suncity smashes real estate records in Chennai by selling over 900 units

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With its innovative township project, Casagrand Suncity, Casagrand has broken all previous records in the city’s real estate market. Nestled on the Kelambakkam- Vandalur road, Casagrand Suncity, Chennai’s most ambitious township project, has achieved a significant milestone by selling more than 900 units in just five days, demonstrating the unmatched demand for high-end real estate in the city. 

The project has the support of well-known actor Silambarasan, is based on Roman architecture, and covers 40 acres with more than 130 top-notch amenities, offering residents an unmatched and opulent lifestyle. The township, a city inside a city, provides its citizens with a vast array of opulent 2,3, and 4BHK apartments with many necessary amenities for a well-balanced combination of luxury, convenience, and sophistication. 

“Casagrand Suncity is not just a residential project; it is a lifestyle destination, bringing the idea of a city within a city,” stated K Ravichandran, Vice President of Marketing at Caagrand. With Casagrand Suncity’s success, Caagrand can maintain its standing as the area’s top real estate developer. Delivering creative and sustainable living solutions that improve the lives of its clients is still the company’s top priority.”

The residents of Casagrand Sucnity enjoy a wide variety of lifestyle options. Apart from its residential developments, this master-planned township features a charming 30-acre park with 10 acres of central landscaping and 3.5 acres of tropical forest. 

The 36-story Casagrand sun city’s Roman facade, massive domes, columns, pediments, and other Roman architectural elements represent a lavish and sophisticated living space for its occupants. Among the many features are a central basilica, two swimming pools, an Aquileia park, a picnic area, a Corinthian canal, a party terrace, and outdoor dining. 

Moreover, the property boasts Santa Clara, a luxurious clubhouse featuring a grand double-height lobby and amenities, ensuring residents a vibrant and fulfilling lifestyle within the community. 

Indian women prefer to invest in real estate, and their top preference is bigger homes

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More Indian women than ever have the means to purchase their own homes. Women can now invest in real estate more easily thanks to reduced stamp taxes on homes registered in their names and unique housing loan programs. Women tend to favor apartments most in the price range of Rs 45 lakhs to 1.5 crores. 

Hyderabad: Women are choosing larger homes and real estate as their preferred investments as they gain financial independence. 57% of participating women homebuyers in an ANAROCK Survey released on International Women’s Day prefer 3 BHKs, indicating a clear preference trend for larger spaces, while 29% prefer 2 BHKs. 

64% of female respondents looking for a home will purchase mid-to premium-class housing (between Rs 45 lakh and Rs 1.5 crore). Surprisingly, 23% of respondents would buy luxury properties costing more than 1.5 crore. According to 71% of the women surveyed, ready-to-move-in or completed properties take less than six months.  

Women can now invest in real estate more easily thanks to reduced stamp taxes on homes registered in their names and unique housing loan programs. 

“Women today are not mere influencers in the home buying process, but independent decision makers who buy homes for either self-use or investment,” states Santosh Kumar, Vice Chairman of ANAROCK Group. As per the most recent ANAROCK Consumer Sentiment Survey, 78% of female buyers prefer to purchase homes for use, with 22% opting to do so as investments. The end-use-to-investment ratio was 74:26 in H2 2021.”

The survey also reveals that the preferred investment asset class, according to 61% of female respondents, is housing. Approximately 16% favor the stock market, while 14% choose gold. Women made up half of the 5,510 survey respondents in total. 

Notably, 3 BHKs are the most favored configurations for 57% of women respondents, followed by 29% of women home seekers voting for 2BHKs. Around 9% are looking for 4BHK homes. 

Regarding price ranges, approximately 36% of female respondents looking for a home prefer to purchase mid-segment properties (costing between Rs 45 and Rs 90 lakhs), with 28% choosing luxury properties costing between Rs 90 lakhs to Rs 1.5 crore. Just 20% of respondents would buy luxury properties that cost more than Rs 1.5 crore, while 23% are willing to settle for less expensive homes under Rs 45 lakhs. 

“A closer look indicates that only 15% of women respondents prefer homes in newly launched projects, even though the survey finds that 24% of all polled home seekers currently prefer newly launched properties,” says Kumar.  

A staggering 71% of respondents will focus on homes that are either finished or set to finish in the upcoming six months. It suggests that most are purchasing for their immediate use.” 

Women’s empowerment has become a significant issue in India in recent years due to the many government initiatives to empower women. The most recent law that the Parliament passed was the Women’s Reservation Bill of 2023. 

In addition to the government’s flagship PMAY program, which prioritizes women’s homeownership, many independent urban women have entered the housing market to purchase homes.  

Because they want to feel secure and independent, more Indian women are purchasing their own homes, and an increasing proportion of single women are living alone in nuclear families. 

Indian real estate investment in the UAE and Europe soars amid high rental yields

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Due to immigration schemes like the Golden Visa and appealing rental yields of more than 7%, Indian investments in foreign real estate, particularly in Europe and the United Arab Emirates, have increased dramatically, according to Propertywala. It’s happening at the same time the UAE’s real estate prices are growing at 16-19% annually. 

Investment in real estate

Indians sent out Rs 240.2 crore in December 2023 to buy real estate overseas, according to RBI data. Comparing this to Rs 206.8 crore during the same period last year, there was a noticeable increase. Similarly, FY23 saw remittances of Rs 2,714 crore, up 38% from Rs 1,961 crore in the previous year. 

Immovable property in the real estate market consists of factories, warehouses, residential buildings, and manufacturing spaces. 

The demand for real estate among European nations experiencing immigration are Greece, Cyprus, Malta, and Spain. 

According to Ritiesh Mehta, Senior Director at Jones Lang LaSalle, “the application process for Golden Visa programs takes about 3-4 months, with investors anticipating citizenship within 5-7 years,” Moneycontrol was informed by Mehta.  

Golden Visa offers residency or citizenship to individuals who invest in government bonds, real estate, or other approved vehicles. 

Rental Profits

India emerged as one of the top investors in Dubai, with cumulative investments of $335 million across 123 projects during the first half of 2023, according to data from the Dubai Land Department, as cited by international real estate consultant Vestian.

Depending on the location and size of the property, the average investment ticket size in Dubai is between Rs 4-4.5 crore, according to Property Junction consultant Vijay Sawlani, who works in Dubai. Generally, the rental yields fall between 7 and 9 percent; however, in desirable areas like Downtown or Business Bay, the short-term rental returns can reach 11 to 13 percent. 

A minimum investment of 2 million dirhams, or roughly Rs 4.5 crore, is required to obtain a Golden Visa for Dubai for five to ten years. 

“Property prices in Dubai’s newer emirates like Sharjah, Ras AI Khaimah, and Abu Dhabi range Rs 25,000-35,000 per square foot, which is more affordable,” Vijay Sawlani told Moneycontrol. “Property costs in upscale Mumbai neighborhoods like Andheri vary from Rs 38,000 to Rs 45,000 per square foot.  

According to Moneycontrol, rental yields in Sharjah and Abu Dhabi range from 6 to 8%, with Dubai offering the highest yields at 9 to 10%. 

Investing in Europe

 An investment of about Rs 4-8 core is needed to be eligible for permanent residency in countries like Greece, Cyprus, Malta, and Spain. According to Moneycontrol, these locations typically have a 4-5% rental yield. 

According to the study, entry-level investments in Europe range from Rs 2.5 crore in rural areas to Rs 8 crore in cities. One of the least expensive residency programs is available in Greece, where popular locations include Athens, Thessaloniki, Mykonos, and Santorini.  

High net worth individuals are the primary target market for other countries such as the US and UK, which have lower rental yields of 3.5-4% and require larger ticket sizes ranging from Rs 8 to 20 crore. 

According to a survey, Indian home prices will rise by 7% amidst the surge in luxury real estate.

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A recent Reuters survey predicts that home prices in India will rise steadily by 7% this year and the following year, driven primarily by an increase in the purchase of luxury real estate.

The poll’s analysts emphasize the ongoing discrepancy between the supply and demand of affordable housing, a problem that will likely continue in the years to come.

The housing market has maintained its robust growth despite multiple interest rate hikes by the Reserve Bank of India between May 2022 and February 2023, thanks to the resilience of Asia’s third-largest economy. 

In 2023, the Indian housing market demonstrated remarkable resilience as home prices increased by 4.3 percent, the highest percentage increase since 2018. 

The Reserve Bank of India’s series of interest rate hikes has little effect on this growth trajectory. 

While rising housing costs are a positive indicator of a thriving market, they also exacerbate poverty and stagnant wages for those in lower socioeconomic groups. 

Aniket Dani, Director of Research at CRISIL Market Intelligence and Analytics, claims that high-net-worth individuals are the main force behind the recent spike in demand for luxury real estate. 

Developers are focusing more and more on starting high-end projects, which makes it harder for the affordable housing market to overcome obstacles.

Experts differ on solutions to concerns about the gap between supply and demand in the affordable housing market over the next two to three years.

There is disagreement over whether the gap will narrow or widen further, underscoring its persistent challenges.

The post-pandemic spike in high-income earners buying homes has driven prices up despite the Reserve Bank of India’s efforts to control inflation through interest rate increases. 

But prospects for interest rate reductions in the coming year are expected to improve affordability, which might help first-time homebuyers. 

Knight Frank India’s national director of research, Vivek Rathi, emphasized the possible effects of interest rate changes on demand dynamics and affordability. 

The survey predicts a noticeable increase in house prices in major cities like Bengaluru, Delhi, and Mumbai, with rises of 5.0 percent, 6.0 percent, and 9.0 percent anticipated for this year. 

These forecasts highlight how India’s real estate market is changing and how its various regions have different dynamics. 

Devastation Descended upon Noida as Real Estate Tycoon Pawan Bhadana’s death rattles Sector 93

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The loss of real estate tycoon Pawan Bhadana has shocked New Delhi. His passing emphasizes how vital it is to raise awareness of mental health issues. 

Pawan Bhasana, a well-known real estate tycoon and Dream Land Builder, was found dead in his Sector 93, Noida Phase-2 home, giving New Delhi’s week a gloomy start. The community and industry are in shock after the awful event on Monday. Though more information is still pending, initial reports suggest that Bhadana’s extreme decision to take his own life may have been motivated by personal distress. 

Deciphering the Disaster 

The local authorities swiftly arrived at the scene to conduct the required investigations upon relieving the distress signal. Preliminary research indicates that Bhadana may have committed suicide as a result of prolonged, severe stress. The specific causes, however, are still unknown and are being investigated. Bhadana, renowned for making significant contributions to the Noida real estate market, has left a legacy of innovation and growth that has significantly impacted the regional economy and housing market. Bhadana, renowned for making significant contributions to the Noida real estate market, has left a legacy of innovation and growth that has significantly impacted the regional economy and housing market.  

Industry and Community Reaction 

The real estate sector, as well as the community at large, have expressed their condolences and tributes following the news of Bhadana’s passing. Coworkers, friends, and acquaintances have highlighted Bhasana’s professionalism, kindness, and commitment to his work in expressing their shock and sadness over the incident. Support for Bhadana’s family is overwhelming as word gets out, with many extending their condolences and helping hand during this trying time. 

Putting Mental Health First 

This tragic incident highlights how important mental health is, particularly for professionals in high-stress fields. It is a sobering reminder of the value of raising public awareness of mental health issues and the necessity of providing easily accessible support networks for those going through difficult times or depression. Considering this, we strongly advise anyone experiencing comparable issues to get assistance from mental health specialists or hotlines devoted to emotional support and suicide prevention. The resources that follow are available right away: 

  • AASRA: We Are Available To Assist: 91-9820466726 (Languages: English, Hindi, Available 24*7) 
  • Sanjeevani (Delhi): (Mon-Fri, 10 am-5:30 pm) 011-24311918, 011-24318883 
  • Fortis Stress Helpline (Delhi): 918376804102 

Pawan Bhadana’s untimely death is a tragic reminder of the challenges and pressures people face in the fast-paced world of real estate and business. While the community grieves, it is imperative to emphasize the importance of mental health support and the resources available for those in need. Bhadana’s contribution to societal development and his legacy in real estate will come to light as efforts to address the underlying causes of these tragic outcomes intensify.