Tag Archives: Indian real estate

Five Factors That No Homebuyer Should Ignore When Selecting a Luxurious Property

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Are you trying to find a cozy haven with a view of the city skyline? The desire for luxurious living is growing, and renowned builders like Nitara Projects are fostering this desire by offering strong, innovative, and tastefully designed premium homes. But if you’re purchasing a luxury home, how can you guarantee your investment will be profitable? 

A home reflects your identity and your labors of love, and it is more than just four walls and a roof. Thus, why accept less than optimal when you can have cutting-edge features, cutting-edge technology, and reliable partners like Nitara Projects to assist you in obtaining the house of your dreams? One of the Delhi NCR’s fastest-growing developers, Nitara Projects provides custom construction services and pre-built luxury homes. However, purchasing a luxury home is an expensive endeavor, so it is imperative to double-check the fundamentals before committing.

Below are the top five factors to think about before investing in an opulent modern villa or separate floor in the heart of a bustling city like Delhi or Gurgaon.

What should I think about before selecting an opulent home?

Reliable developer

Someone with the same passion for your house as you do is needed to turn an idea into a physical reality. So, picking a reputable developer is essential if you are looking for contemporary homes that are distinctive, practical, and ahead of their time.

For example, builders such as Nitara Projects require no introduction according to luxury homes. They work together to create a sanctuary by getting to know the thoughts, opinions, and goals that the owner has! Their goal is to seamlessly integrate the buyer’s vision throughout the entire project, from the planning stage to the final finishing stage, every while maintaining the project’s budget, timeliness, and construction quality.

According to Nitara Projects Limited’s Managing Partner for Construction and Procurement, Chandrashekhar Sao, “Quality is the life of any residential project.” However, quality also encompasses the mindset of those working on the project and the materials and procedures utilized.”

Place and Communication

One of the most important considerations when purchasing a luxury home is location. It provides privacy, prestige, exclusivity, and ease of use. Therefore, ensure that the house you buy is close to public transportation, significant landmarks, business districts, educational institutions, retail centers, and cultural venues.

Nitara Projects provides residential developments in some of the most desirable locations in Delhi NCR because it recognizes the value of location. For example, the Nitara Independent Floors project is five km from the Delhi-Jaipur Highway and is available for immediate occupancy.

It is located along Sohna Road in Sector 71 Gurgaon. Business hubs such as JMD Megapolis, Orchid Business Park, and Vipul Trade Center are also easily accessible. Prominent hospitals like Medanta and Polaris are only 4-5 km from the project, and well-known hotels like Radisson and Park Inn are roughly 6 km away. NH-48 leads directly to the Indira Gandhi International Airport, just 21 km away.

A home in a self-sufficient area will guarantee convenience and an increase in value compared to homes in remote areas with inadequate infrastructure.

Construction and technology

Many factors contribute to a house’s sense of place, but well-designed architecture and infrastructure are crucial. Nitara Homes is raising the bar for quality in the real estate industry, offering everything from turnkey construction to building indestructible structures.

A prime example of the developer’s exceptional construction quality is the Sector 65, Gurgaon-based Emerald Hills project, which has received RERA certification. These standalone low-rise villas have seamless designs, constructions, and modern architecture, and are in a class by themselves.

Nitara Projects uses reinforced cement concrete (RCC) framework constructions. This guarantees the connection between footings, beams, columns, and slabs. These sturdy constructions can tolerate a range of loads, such as wind and seismic forces, which helps them meet the criteria for building complaints with Seismic Zone 4. Nitara Projects seeks to redefine quality living by fusing cutting-edge German technology with ancient Vastu principles. 

Social facilities and ease of access 

Custom features are incorporated into the design of luxury homes to suit the tastes and preferences of the buyer. They have to include convenience and amenities that improve quality of life. Consider the Anant Raj Estate in Gurgaon. This independent villa project by Nitara Group is registered under H-RERA with number GGM/589/321/2022/64. It is a luxurious estate with amenities like 24/7 security, shops and hypermarkets, gyms, and exercise areas. There are also nearby options for fine dining and restaurants with open skies. In addition to these, the ultra-luxurious facilities include yoga and meditation centers, contemporary workspaces, and a stage.

Buyers should search for add-ons that enhance their rather than being influenced by ostentatious features. The goal is to make functional homes enjoyable and convenient, and these need to be considered when designing.

Protection and safety

The built-in security features of a luxury home are among their best features. These facilities strengthen security and guarantee residents’ peace of mind. Numerous opulent residences, such as those built by Nitara Projects, feature biometric access systems at entry-exit points, smart visitor management services, 3-5 tiers of security coverage, and round-the-clock safety supervision.

Additionally, each home’s intruder alarm systems provide a tranquil stay. Seismic Zone IV-complaint architecture is a feature of Nitara homes that safeguard occupants and buildings during seismic activity. Purchasing a luxury home can be a big deal in a country with a booming real estate market like India. While some developers aim to capitalize on the profitable label of premium housing, others, such as Nitara Projects, want to redefine luxury.

Performing market research and considering the previously mentioned factors are crucial to determining the return on your investment. These might be very helpful in getting you into your ideal house. 

Godrej Properties moves into Indore and purchases a 46-acre plot for planned development

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Godrej Properties Ltd has announced the acquisition of a roughly 46-acre land parcel in Indore. According to the company’s July 31 regulatory filing, the development on this land will mostly consist of plotted residential units and offer an estimated saleable area of roughly 1.16 million square feet.

Situated in a significant residential and commercial area of Indore, the land is close to the Indore-Ujjan Road, a major upcoming corridor planned to be expanded to a 6-lane highway.

According to a regulatory filing from the company, the location provides good connectivity to important landmarks like the Indore International Airport, the Indore Junction railway station, educational institutions, and medical infrastructure.

According to the report, the city’s residential real estate market has expanded due to ongoing infrastructure development, the planned extension of Metro lines, and the expansion of the corporate and IT sectors.

Declaring our arrival in Indore, Madhya Pradesh brings us immense pleasure. According to Godrej Properties’ MD and CEO Gaurav Pandey, “Residential plotted development has gained significant traction in recent years and the Indore-Ujjain Road is a promising micro-market to expand our presence in this space.”

This fits nicely with our current expansion strategy, which involves entering rapidly expanding cities from the standpoint of planned development. We want to develop an exceptional, sustainable community that benefits its citizens in the long run and capitalizes on Indore’s growth potential,” he stated.

The real estate sector is well-known in cities like Bengaluru, Pune, Mumbai Metropolitan Region (MMR), and Delhi-NCR (National Capital Region).

Godrej Properties was the largest listed real estate company in the most recent fiscal year, with sales bookings exceeding Rs 22,000 crore. 

How India’s Tier 2 cities are growing in response to global real estate trends

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Property in India’s Tier 2 cities has a bright future, presenting residents and investors with unmatched opportunities. 

The global real estate market is changing dramatically, and new trends are changing the way cities expand and change. Greater infrastructure, faster urbanization, and heightened investor interest contribute to growth in India’s tier 2 cities, where this shift is particularly noticeable.

Uttar Pradesh’s Lucknow, Meerut, Mathura, Moradabad, Dehradun, Ayodhya, and Bareilly are leading the way in this change, and are part of a larger trend driven by international real estate practices.

Initiatives  for Smart Cities 

Implementing initiatives for smart cities is one important trend. Cities worldwide are growing smarter and implementing cutting-edge technology to enhance urban living. The Smart City Mission in India reflects the global trend towards smart cities and has a major effect on the development and planning of tier 2 cities. This mission led to the development of advanced lighting, digital governance, and intelligent waste management systems in tier 2 cities. These improvements are making cities more livable and efficient urban environments, which attracts investors and residents alike.

Sustainable and Green Development

Growth that is environmentally friendly and sustainable is another important trend. Tier 2 cities in India exhibit the growing global trend of prioritizing sustainability in real estate. Green areas, eco-friendly architectural styles, and sustainable methods are becoming more and more commonplace in the projects developers work on. For example, environmentally conscious buyers are drawn to new developments with eco-friendly features in cities like Dehradun and Lucknow. In keeping with international sustainability standards, these projects provide residents with modern conveniences in an eco-friendly manner.

Elegance and Exquisite Lifestyle

Globally, there is a growing demand for luxury and high-end living, and India’s tier 2 cities are leading the way in this trend. 

The demand for upscale housing options in these areas along with wealth. Leading developers have launched ultra-luxury projects in several tier 2 cities. These projects have international-level facilities at a minimal density. They satisfy the rising demand for lavish living with their verdant surroundings, opulent clubhouse, commercial spaces, and sports facilities.

Strategic Investments and Connectivity

Strategic investments in infrastructure and improved connectivity are on the rise globally. The progress of India’s tier 2 cities is indicative of this. Urban centers such as Lucknow and Dehradun are renowned for their swift urban growth and enhanced transportation infrastructure. Because of their proximity to important industrial hubs and improved infrastructure, Meerut and Moradabad are being used to capitalize on their strategic location to draw in new residents and businesses. Ayodhya’s transformation is propelled by cultural and religious tourism, mirroring the global trend of leveraging unique local characteristics to boost real estate growth. 

Case Study: The Metamorphosis of Bareilly

Bareilly is a shining example of effectively localizing global real estate trends to create dynamic urban environments. Bareilly is becoming more and more of a modern urban center. It is well-known for its rich cultural legacy, which includes the renowned Zari Zardozi embroidery and its historical significance as Naath Nagari. The city is developing under the Smart City Mission, to its appeal as an investment destination. Major infrastructure projects valued at crores are part of this development.

The development of tier 2 cities, such as Bareilly, emphasizes luxury living, sustainable development, and smart development, reflecting broader global real estate trends. Some developers are driving this shift and giving India’s developing urban centers world-class living standards. The future of real estate in India’s tier 2 cities appears bright, with unmatched opportunities for residents and investors as these trends continue to impact local markets. 

What occurs in India if property taxes are not paid for ten years?

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Property owners may face serious legal and financial ramifications if they fail to pay their property taxes. Therefore, timely paying such taxes is necessary to continue taking advantage of the municipal amenities. Owners must take immediate action if a property tax is not paid for ten years. Read this article about missing property taxes’ legal requirements and consequences to discover why. 

Basic services like infrastructure, sanitation, and public safety are all possible due to property taxes. Local governments levy property taxes in exchange for a higher standard of living, and homeowners should pay them on time. But if someone does not pay their taxes– sometimes for a long time– they may find themselves in difficult circumstances. This can happen for five to ten years. Property tax arrears can result in severe fines and possibly legal action against the owner. Therefore, it is essential to comprehend the property tax payment cycle and make on-time payments. 

The cycle  of property tax payments in India 

Property taxes are a crucial source of funding for municipalities to provide other essential services like infrastructure. In India, state and city-specific property tax payment schedules are determined by local municipal authorities. However, it is typically paid out once a year. If taxes are not paid on time, authorities notify the owners of tax details, including the amount owed and the payment deadline. The method a particular municipality accepts can be used to pay the fees. 

What occurs in India if property taxes are not paid for ten years? 

Failing to pay property taxes for over a decade may result in serious repercussions. 

The following are the potential issues that could arise:

Resulting from failing to pay property taxes

Not paying property taxes can result  in serious legal and financial issues:

  • Interest and penalties occurring: Overdue property taxes are subject to interest and penalties from the municipality. Penalties may accumulate if you have not paid taxes for over a decade. 
  • Legal actions and notices: Property owners who fail to pay taxes on time receive numerous notices from the authorities. Legal action, including court proceedings to recover the dues, may be taken against property owners who ignore these notifications. 
  • Risk of foreclosure and property lien: If property taxes are not paid, the government may be able to place a lien on the property. The municipality may eventually recover unpaid taxes by foreclosing on the property with the help of this lien.

Resolving property tax arrears 

Property owners who frequently miss deadlines or are in arrears on their property taxes ought to know how to handle these situations. Here are the steps to follow.

Address the issue: Contact the neighborhood municipal office if you want an accurate breakdown of the total amount owed, including interest and penalties. Make sure you are aware of the due dates and payment processes. 

Let us talk about payment plans: Many municipalities offer payment plans to assist property owners in paying off their debts and streamlining their lives. 

Seek legal counsel: Speak with a lawyer who can help with negotiations with authorities and offer alternative debt resolution strategies. 

Is it possible to reduce or forgive unpaid property taxes? 

Additionally typically do not waive these levies or fines. Municipalities may, however, propose to lower the fine or interest rate as part of unique plans or initiatives. These programs are typically restricted to a particular group of people. It’s advisable to look into and confirm relief options with your local tax office.

Property owners’ rights regarding unpaid taxes 

Even in cases where property taxes are not paid, real estate owners have several legal rights. Examine your options:

Informational rights: Owners are entitled to comprehensive information regarding the principal, interest, and penalties associated with their tax obligations.

Right to contest the amount: You have the legal right to dispute the tax assessment through the appropriate channels if you think it is inaccurate.

Right to Bargain: Property owners can bargain with the local government to arrange a reasonable payment plan.

Right to legal representation: When faced with court or foreclosure procedures, owners are entitled to legal counsel. 

In conclusion, property taxes— especially for municipalities– are an essential source of funding for the government. One way an owner can contribute to the development of a community is by paying taxes on time. Authorities can apply fines and interest on the outstanding amount if an owner does not comply. Owners can speak with a lawyer to handle the situation and get relief from unpaid property taxes. Staying informed and paying your property taxes on time are the steps in defense of potential legal trouble. 

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. 

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.” 

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.

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. 

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. 

Top 8 cities’ home sales fell 6% between April and June

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The data shows that during the April-June quarter, housing sales decreased by 6% to 113,768 units from 120,642 units during the January-March quarter. 

Due to investor and builder caution over the Lok Sabha polls, housing sales in the top eight cities fell 6% in the April-June quarter compared to the previous quarter, according to PropTiger.

Thursday saw the release of the quarterly data on housing supply and demand by real estate brokerage platform PropTiger, a division of REA India, the company that owns Housing.com.

From 120,642 units in the previous quarter of January-March to 113,768 units in April–June, housing sales decreased by 6%, according to the data.

Nonetheless, from 80,245 units sold in April to June of last year, home sales increased by 42%.

According to Vikas Wadhawan, Group CFO, REA India, and Business Head, PropTiger.com, “Demand for homes moderated during the April-June period on account of the general elections even though consumer sentiment continues to remain extremely positive about real estate investments on the back of strong fundamentals.”

He continues, “A decrease in new launches in half of the cities sampled in PropTiger analysis indicates that the developer community, too, exercised caution.”

“We have reason to believe that sales numbers would strengthen in the coming quarters, especially during the festive months,” Wadhawan stated, “especially with expectations of a pro-investment Union Budget  following the formation of a new government at the Center.”

According to him, half of the cities included in the PropTiger analysis saw a decrease in new launches, indicating that the developer community has also been cautious.

According to data comparing quarters, Ahmedabad’s housing sales decreased by 26% from 12,915 units in January to 9,500 units in April to June.

On the other hand, sales in Bengaluru increased by 30% to 13,495 units from 10,381 units.

Chennai saw a 10% decline in residential property sales, from 4,427 to 3,984 units.

Sales in the Delhi-NCR increased by 10% to 11,065 units from 10,058 units.

Hyderabad saw a 14% decline in housing sales, from 14,298 units to 12,296 units. 

Sales in Kolkata dropped from 3,857 units to 3,237 units. 

The Mumbai Metropolitan Region (MMR) saw an 8% decrease in home sales, from 41,594 units to 38,266 units.

Pune saw a 5% decline in sales from 23,112 units in the previous quarter to 21,925 units in April-June.

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.” 

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.” 

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.

India’s atrocities are writing a new chapter in the real estate growth story: Report

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India is witnessing a surge in the popularity of atrocities, in line with global trends. They are emerging as early indicators of the modern Indian urban lifestyle, conceptualized as sub-urban areas centered around the airport. 

Atrocities, fully operational business districts centered around airports, are a new phenomenon that urban India is witnessing. According to the most recent report prepared by 360 Realtors and Axon Developers, there are nine Aerocity projects across 14,000 acres of land in the nation. 

India has about 22%, or 3050 acres, of operational Aerocity land. There are activities in Delhi, Hyderabad, Mohali, and Durgapur. A little over 18%, or 2585 acres, of Aerocity land, is currently under development and should soon be available for purchase. 

Several projects are currently under construction, including a 150-acre project close to the recently opened Valmiki International Airport in Ayodhya, a 463-acre mixed-use project close to Devanahalli Airport, and the 172-acre Aerocity project close to the soon-to-open Jewar Airport. 

The 740-acre Aerocity project, located close to the Navi Mumbai International Airport, is currently under full construction. Together with CIDCO, Adani is developing the project. 

The UP state government has announced several important projects, including constructing a 1500-acre cityside development next to the Lucknow airport. 

The world was first exposed to Aerocities in the 2000s, when self-sustaining urban ecosystems were created near airports in Singapore, Kuala, Lumpur, London City, Dallas, and Dubai. These thriving business districts began to change as parallel central business districts, reshaping the city’s development. 

During the 2010 Common Wealth Games, India had its first Aerocity close to IGI Airport. Currently one of the most sought-after neighborhoods in the NCR, it is a 200-acre community that runs parallel to Cyber Hub, Golf Course Road, and Vasant Kunj. There are 15+ upscale hotels located in the GMR Aerocity. Aerocity is home to more than 100 of the top fast-food chains in addition to plenty of specialty shops, high streets, and lifestyle merchants. At MOPA (232 acres) and Hyderabad (1500 acres), GMR is also building other upscale Aerocities. 

Capturing the interest of both large and new companies

Atrocities are signs of the contemporary Indian way of life. “The original plan for Atrocities was to serve as commercial transit hubs for domestic and foreign travelers. Over time, however, they have developed into fully operational commercial suburbs with several upscale hotels, chic retail establishments, fine dining establishments, affluent office buildings, etc., making them a popular destination for tourists and locals. According to Ankit Kansal, MD of 360 Realtors, “They also include logistic parks, business parks, e-commerce warehousing, etc. functioning as commercial catchments.” 

There are 200-1500 acres of atrocities in the airport’s immediate vicinity (usually 1-3 km from the main airport premise.) Businesses, MNCs, and corporations are keen to locate their regional or corporate headquarters in the Aerocity region. Not only does it reduce travel expenses, but it also gives companies access to elite talent. Atrocities provide a comfortable yet laid-back environment for idea sharing, business networking, and semi-formal get-togethers; these events are quickly gaining popularity among startups and established companies,” continues Kansal. 

Expanding Transition to NAR

Airport operators are increasingly moving toward Non-Aeronautical Revenues (NAR). Large sums of money must be invested in the development and operation of airports; parking and hanger fees, airline fees, and passenger fees alone will not cover these costs. Therefore, to create new revenue streams, airport developers and operators seek opportunities in several potential sectors, including food and beverage, lifestyle, hospitality, destination marketing, real estate, etc. 

The pandemic has further highlighted how crucial it is to diversify sources of income into fresh, workable ideas. Nearly 60% of the global share is made up of NAR. It is still low in India, except for larger airports like Delhi (60%) and Mumbai (55%). It is restricted to about 15-25% in smaller airports. But times are changing, and given their attractive real estate opportunities, Atrocities will be important. 

A bustling hub for the hospitality sector 

With the increasing connection of luxury hotels, upscale hotels, corporate guest houses, long-term rental projects, serviced apartments, etc., atrocities are a hive for the hospitality industry. The total number of branded rooms in Atrocities is estimated to be around 5,500, according to data from a 360 Realtors study. It is expected to reach approximately 12,000 by 2030, with a compound annual growth rate of 16.9%. 

There are about 4,000 rooms in Delhi Aerocity alone and a large pipeline of about 3,000 more rooms. The Bangalore Aerocity has a large pipeline with approximately 2500 rooms. In Hyderabad Aerocity, a 290-room Novotel hotel is operational. Boston Living is building a posh co-living complex with 1500 beds nearby. When the Hyderabad Aerocity is finished, it will rank among India’s biggest real estate developments. 

More than 1,500 acres of land that real estate developers have recently acquired through JDAs: a JLL report

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According to JLL, landowners and real estate, developers collaborated to develop 1,546 acres of land during the previous 18 months, from January 2023 to June 2024. There were 56 different Joint Development Agreements (JDAs) signed during this time. Development agreements have shown to be very effective in enabling developers to enter new markets and cities while giving landowners additional benefits. Furthermore, several renowned foreign developers who have recently joined the Indian real estate market have chosen to employ this tactic with encouraging outcomes. 

Approximately 990 hectares of the 1,546 acres total JDAs were signed in 2023 alone, with the remaining 556 acres being signed in the first half of 2024. 

Joint development agreements are still an option for national developers seeking to expand into new areas while sticking to an asset-light strategy, even though many now prefer outright land acquisitions. Over eighteen months, developers and landowners have come together to generate over 120 million square feet of development potential. 

“Over the past 18 months, the residential sector has signed the most land Joint Development Agreements (JDAs). According to Dr. Samantak Das, chief economist and head of research and REIS, India, JLL, “proposed residential developments have a significant share of more than 97% (1,501 acres) in these signed agreements offering a development potential of 110 million sqft with an estimated gross development value of around Rs 99,460 crore.” “Real estate developers have been introducing new housing projects regularly due to the rising demand for housing in recent years. The number of new housing units introduced in India’s top 7 cities increased significantly in 2023, showing a 19% increase over 2022,” he continued. 

Out of the 1,546 total acres, 45 acres were set aside for the development of commercial projects, most of which were office buildings with leases. 

According to the city share analysis, smaller cities like Ahmedabad and Surat top the charts according to area transacted, while larger cities like Delhi NCR, Bengaluru, and Mumbai lead in the number of deals. The three larger cities accounted for just 26% of the total area, but together they hosted 36 deals, accounting for 64%. Smaller-scale transactions are primarily driven by land availability and cost in these larger urban areas. Nishant Kabra, head of JLL’s capital markets (North and West India), India, stated that the three cities– Delhi NCR, Bengaluru, and Mumbai— accounted for a significant Rs 83,927 crore, or over 84% of the total residential GDV (Rs 99,460). 

Delhi NCR has been at the forefront of various transactions; since 2023, 20 JDAs totaling about 233 acres of land have been signed. There is a 36.5 million square foot potential development from these agreements. Most of these agreements, totaling 151 acres in the Delhi NCR, were signed in Gurgaon alone. Several legally binding deals have been entered into by prominent real estate players in Gurgaon, mainly along the developing Dwarka Expressway and Southern Peripheral Road corridors. Sonipat, Ghaziabad, Faridabad, and the NCT of Delhi accounted for the remaining deals in the NCR. 

With nine deals totaling more than 102 acres and approximately 11 million square feet of development potential, Bengaluru came in second. Several deals were documented in Old Madras Road, Whitefield, and Yelahanka. Notably, a transaction involving more than 60 acres was recorded in North Bengaluru. Seven transactions totaling 62.5 acres, with a 9.9 million square foot development potential, were recorded in Mumbai. 

Today marks the release of Kalki 2898 AD, starring Amitabh Bachchan, who purchased properties valued at more than Rs 100 crore in the past year

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Amitabh Bachchan, the star of Kalki 2898 AD, has been in the news lately due to his real estate holdings, particularly in the Mumbai real estate market. The Bollywood actor has spent more than Rs 100 crore on real estate in the temple town of Ayodhya and the financial hub of Alibaug during the past year. 

Amitabh Bachchan registered three office units in Mumbai’s Signature building on June 20, 2024, paying approximately Rs60 crore. According to documents accessed from Floortap, the Bollywood actor paid Rs59.58 crore for three office units totaling 8,429 square feet in area. 

Similarly, Bachchan paid Rs29 crore in September 2023 for four more apartments in the same Signature building, totaling over 8,396 square feet. Sara Ali Khan, Kartik Aaryan, and Manoj Bajpayee are among the other Bollywood celebrities who own office space in the same building. 

Big B also bought a plot last year in Ayodhya, close to the Ram Temple, in The Sarayu, a plotted development project being built by The House of Abhinandan Lodha (HoABL), a Mumbai-based real estate developer. 

The Kaun Banega Crorepati host paid Rs 10 crore to The House of Abhinandan Lodha (HoABL) in April of this year for a 10,000-square-foot piece of land in Alibaug, Maharashtra, which is close to Mumbai. 

His son Abhishek Bachchan had previously registered six apartments in the Oberoi Sky City development in Mumbai’s Borivali West neighborhood on May 28, 2024. The Rs 15.42 crore purchase included six apartments with 4,894 square feet of RERA carpet.  

High net-worth individuals, Bollywood stars, investors, and industrialists typically prefer investing in Grade A properties. Real estate consultants say commercial office spaces provide better returns than residential projects. 

In Metro cities, commercial assets such as office space, retail space, and warehouses yield 6-10% gross rental yield, and in certain cases, even more. On the other hand, residential properties yield gross rental yields that range from 3% to 5%. On the other hand, advisors claim that land is among the most profitable investments if it helps for a long period and offers a higher capital appreciation.  

“The goal of investment is the same whether discussing Bollywood celebrities or wealthy people. Capital appreciation and rental yields are the two key variables. This is the rationale behind real estate investments made by Bollywood celebrities and ordinary investors alike, according to Swapnil Anil, executive director and head of Colliers India’s Advisory Services division. 

“New Bollywood stars tend to invest in established markets that offer a steady from rent cash and healthy capital growth. According to Swapnil Anil, capital appreciation is an investor’s primary concern when buying land. 

The Dwarka Expressway is driving the real estate revival in Gurgaon

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With the Dwarka Expressway, businesses, residents, and investors stand to gain much from the promise of better accessibility and enhanced connectivity. 

Gurgaon’s real estate market has experienced a surge in activity due to the Dwarka Expressway, drawing interest from investors and homebuyers. In the history of Gurgaon’s development, this corridor marks a critical turning point that will transform the city’s skyline and spur economic growth. In addition to increasing property values, the expressway has spurred economic activity nearby and electrified infrastructure to expand. Gurgaon is currently a leader in India’s growing real estate market, drawing interest from domestic and international markets. The Dwarka Expressway is creating a lot of talk, highlighting how important it will be in deciding Gurgaon’s status as a vibrant and future metropolis. 

The real estate market in Gurgaon is experiencing a notable upswing, primarily due to improved connectivity between Delhi and Gurgaon. Maintaining the growth pace relies heavily on the central peripheral road, which is essential between the Dwarka Expressway and Sohna Road via the Southern Peripheral Road (SPR). The recent opening of the Dwarka Expressway’s Haryana segment by Prime Minister Narendra Modi is expected to improve traffic flow and reduce congestion between Delhi and Gurgaon. Experts in real estate note that the Dwarka Expressway in Gurgaon is growing in popularity as a residential area and predict the construction of opulent residential complexes shortly. Furthermore, a rise in housing prices is inevitable due to the expressway’s operationalization, as this will reflect its increased accessibility and desirability. 

The Dwarka Expressway Gurgaon corridor has become a popular residential area, attracting buyers with its varied housing options and better infrastructure. Reputable builders have contributed to this boom by starting several projects nearby, enhancing Gurgaon’s standing as a top destination for real estate investment. 

Over the last ten years, the area has witnessed the arrival of about 53,000 new housing units, of which more than 80 percent have already been snatched up by eager buyers, according to data from real estate consultancy Anarock. The primary residential market along the Dwarka Expressway has experienced a surge in average property rates due to strong demand. As of the end of 2013, the rates have risen from Rs 4,530 per square foot to Rs 8,300. This demonstrates the corridor’s appeal and bright future for successful real estate endeavors. 

The Dwarka Expressway passes through several important Gurgaon sectors, including 81 to 115. Its catchment area includes sectors 36A, 36B, 37D, 88B, 99, 102, 103, 104, 106, 107, 108, and 109. It is noteworthy for having connections to the Delhi Mumbai Expressway, Manesar Road, and Pataudi Road. With the completion of the Haryana section of the expressway, developers are hopeful that their recent investments will finally pay off. This corridor is said to have delivered about 150 residential projects, and more high-end projects are expected to be launched soon. The opening of this crucial road infrastructure is expected to have a major effect on neighboring Delhi, especially on the residential zones in different villages, as well as revitalize areas within Gurgaon. 

The Dwarka Expressway may also be of major benefit to the economy, directing the development of Gurgaon. Its revolutionary effects on the real estate industry and the broader economy highlight the significance of infrastructure in prompting growth and prosperity. Gurgaon is positioned to become a model for sustainable urban development and economic prosperity in India due to the expressway’s opening up new investment and connectivity opportunities. 

Wide-ranging effects include increased economic activity, job creation, and improved liveability for the region, expected from this infrastructure project. With the Dwarka Expressway, businesses, residents, and investors stand to gain much from the promise of better accessibility and enhanced connectivity. Gurgaon is well-positioned to demonstrate its potential as a dynamic and vibrant economic hub that will propel innovation, growth, and prosperity for years as it embarks on this path of significant change. 

This is what it will cost you to be neighbors with Sara Ali Khan, Arjun Kapoor and Shatrughan Sinha

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Sara Ali Khan, Arjun Kapoor, and Shatrughan Sinha— three Bollywood actors– might soon have new neighbors. A public notice to sell their properties has been served to the owners of Indus Projects Limited and the Union Bank of India for failing to pay. The prime property going up for auction has a reserve price of Rs 104.11 crore. 

Sara Ali Khan, Arjun Kapoor, Shatrughan Sinha, and his family are among the Bollywood celebrities who live in the same neighborhood as the building. 

The notice states that the bank plans to hold an auction for the promoters’ nine-story residential building. Located in Mumbai’s Juhu Vile Parle Development (JVPD), Kapolei Society in Vile Parle West, the building consists of seven 4BHK  apartments and a duplex. 

The nine-story residential property is situated in Nutan Laxmi CHS Ltd. According to the bank notice shared by Kecta, a platform that markets repossessed properties up for auction by banks and financial institutions, the plot is 800 square yards and is located in the Nutan Laxmi Co-operative Housing Society Ltd., North South Road, JVPD Scheme, Vile Parle (West), Mumbai. 

The building is owned by Indus Projects Limited, a public company established in 1997. The notice listed Kishor Mehta, Abhai Mehtax, Mahavir Mehta, Madhur Mehta, and Indus Mechanical Engineering Company Private Limited as bank debtors. 

The entire amount owed is approximately Rs 90.46 crore. According to the notice, the owners owe State Bank of India Rs 18.60 crore plus interest at the applicable rate, costs, dues, and expenses that may accrue from April 23 until the full repayment and settlement of dues. 

They also owe the Union Bank of India approximately Rs 71.85 crore plus interest at the applicable rate, costs, dues, and expenses. 

Under the Securitization and Reconstruction of Financial Assets and Enforcement of Security Interest Act (SARFAESI) of 2022, the Union Bank of India is holding an auction for the bungalow. 

According to Section 13(4) of the Act and Rule 8 of the Security Interest (Enforcement) Rules, 2002, the Authorized Officer has taken possession of the immovable secured assets because you did not comply with the notice within the allotted time. 

The notice stated, “The immovable secured assets that the bank’s authorized officer has taken possession of will be sold by holding a public E-auction on June 20, 2024, by inviting bids from the public online on www.mstcecommerce.com, since the owners have failed to clear the dues of the secured creditor.” 

There is a 25% off the list price on this offer. The entire transaction is cashless, and payment must be made through banking channels within 15 days of the auction date, according to Hecta’s founder and CEO, Sridhar Samudrala. 

These are premium location ready-to-occupy floors that are ready to be owned. We hardly ever have access to such upscale properties, much less at a discount,” he continues. 

Do you want to purchase a home at a bank auction? This is important for you to know. 

Since banks only auction these properties when a loan borrower misses several payments, most of these real estate assets are offered below market value. The lender uses the auction to recoup the principal and interest balance owed for the loan. 

Potential buyers of real estate at a bank auction should verify the property’s details, especially its legal specifications, before bidding. 

Buyers are cautioned that expenses such as maintenance, property taxes, and electricity which are the buyer’s responsibility are not included in the reserve price listed. 

The prospective buyer should also confirm whether the bank that promoted the sale took physical possession of the property after completing the necessary legal processes. 

According to a legal expert, these properties are sold on an “as is where is,” “whatever is there is,” or “no recourse basis,” which means that the buyer must review the inclusions and exclusions and cannot back out of the agreement after the auction ends (unless there are extraordinary legal circumstances). 

According to a legal expert, purchasers of apartments or bungalows up for auction should ascertain whether the properties are subject to any liabilities. 

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

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

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

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

According to which UPRERA order, what? 

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

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

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

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

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

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

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

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

Homebuyers disagree with the directive  

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Temple towns will grow as a result of spiritual tourism 

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

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

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

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

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

The growing affluent class 

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

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

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

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

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

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

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

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

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

The profitable Indian real estate market draws in NRIs. 

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

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

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

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

Current Trends and Prospects for the Indian Real Estate Market

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

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

Housing Plans and Government Policies 

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

The Economic Factors Affecting Real Estate 

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

Market dynamics and regulatory reforms 

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

Novel Patterns in Residential Property 

Growth in Accessible Housing 

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

Transition to Sustainable Living 

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

Remote Work’s Effect on Housing Demand 

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

Technological Progress Real Estate’s Shape 

Digitalization in the Real Estate Sector 

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

PropTech Innovations 

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

Role of AI and Big Data 

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

Conclusion

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