Kirti Sanon closes a Rs 2 crore Alibaug real estate deal

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

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

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

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

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

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

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

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

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?

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?

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

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. 

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

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. 

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

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

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

Elections 2019: The Impact on the Real Estate Market

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

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

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

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

Price trends for the last three elections 

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

Impact on Homebuyers 

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

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

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

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

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

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

How will the election results affect the real estate market? 

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

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

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

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

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

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

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

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

Will future housing prices be stable or increase? 

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

Should homebuyers decide whether to buy now or wait? 

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

Impact on Commercial Real Estate 

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

Rental housing and affordable housing 

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

APAC countries show increased interest in Indian real estate. 

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

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

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

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

Indian REITs are expanding rapidly as office demand surges

With a market capitalization of $8 billion, three office REITs collectively own approximately 100 MSF of space, or about 12.5% of the total office stock. 

All metrics of office demand in India are showing positive momentum, and real estate investment trusts are rapidly expanding their portfolios through acquisitions. 

When Embassy Office Parks REIT was launched in 2019, it had slightly more than 24 million square feet. In five years, it has increased its completed area by 47%, adding 12 million to 12 million square feet through acquisitions. It now has over 45 million square feet of gross leasable area. 

The three office REITs- Embassy REIT, Brookfield India Real Estate Trust, and Mindspace Business Parks REIT– collectively own approximately 100 million square feet of office space, accounting for 12.5% of India’s total office stock, with a market capitalization of $8 billion.  

India’s office sector demand is growing by double digits. The monthly rental square foot is approaching the Rs 100 mark. Occupancies have risen to the mid-80s. Most significantly, globally capability centers have focused on India, with approximately 800 GCCs expected to be added over the next 6-7 years, increasing demand for offices. 

Acquisitions 

Embassy REIT acquisitions have primarily come from its sponsor, the Embassy group, based in Bengaluru, and all of its assets are concentrated in India’s IT capital. Last month, it arrived in Chennai with another acquisition from its sponsor, a 5 MSF business park that will take its total portfolio above 50 MSF. It also has a future development area of 2 MSF.

Brookfield REIT increased its operating area by 47% last year, primarily through acquisitions, and another 16% increase is expected following an acquisition announced last week.  

In FY24, it acquired 6.5 million square feet of space in the National Capital Region and Mumbai, and it plans to add another 3.3 million square feet by purchasing Bharti Enterprises’ 50% stake in a joint venture with its parent entity Brookfield. The REIT has the first right to offer the remaining stake, while other properties developed by Bharti Realty in Delhi are potential acquisition targets.  

Its parent, Brookefield, owns 54 million square feet of office space in India, which serves as an opportunity pipeline for the REIT. 

Last year, Mindspace REIT made two small acquisitions in Chennai and Pune, while also developing a mixed-use asset for its sponsor in Mumbai. It also has the right to first offer on other assets that its sponsor owns. Its sponsor, K Raheja Corp, has approximately 15 million square feet of pipeline in the form of completed or in-development assets. This presents a potential growth opportunity for the REIT since it’s also looking into third-party assets. 

According to a recent CREDAI-CRE Matrix report, office demand will exceed 70 million square feet by 2024, due to the government’s emphasis on manufacturing expansion and investing in digital and physical infrastructure. Each of these is expected to boost office absorption and create new opportunities for REITs. 

Fractional ownership is driving a paradigm shift in real estate investment

Fractional Ownership is an investment model aimed at retail investors who can gain access to the high-value commercial segment. 

With the real estate sector expanding across key markets, driven by demand sales, investors are increasingly looking for ways to capitalize on the bullish run. The real estate sector has matured due to regulatory changes, which has sparked investor interest. What truly democratized the industry was the introduction of investment concepts such as Fractional ownership, which allows individual or retail investors to invest in high-value properties while earning fixed returns on rent-generating assets. 

While alternative investment options such as AIFs and REITs are gaining popularity in India as profitable and effective investment vehicles, they are primarily geared toward institutional and high-net-worth investors. On the other hand, investment models such as Fractional Ownership are aimed at retail investors, who can access the high-value commercial segment through this model. The good news is that this model provides new avenues for retail investors yet allows developers to consider various funding options.  

According to a report by a leading real estate consultant, the market for fractional ownership in India was USD 5.4 billion in 2020 and is expected to reach USD 8.9 billion by 2025, growing at a 10.5%  CAGR. This is an unambiguous sign of fractional ownership’s rapid growth as a viable investment opportunity. 

Fractional Ownership became more popular among investors after SEBI proposed various Fractional Ownership Platforms (FOPs) to register with SEBI MSM REITs and made it mandatory to follow some specific registration procedures. According to the proposal published by a leading real estate firm, MSM REITs should include separate and distinct entities serving as trustees, sponsors, and investment managers. SEBI also proposes that MSM REIT be established as a Trust under the Indian Trusts Act, with the ability to create separate schemes for owning real estate assets. This would be accomplished through SPVs (Special Purpose Vehicles) established as companies under the Companies Act of 2013. MSM REIT Scheme shall have complete control and 100% equity share capital in all SPVs. 

These regulatory changes benefited investors because they can now leverage benefits such as fair pricing, transparent transactions, and the flexibility and opportunity to exit or liquidate their investment at any point. 

With the digitization and technological advancement of the real estate industry, investors can also benefit from easy tracking via web-based FOPs, making it easier for them to make data-driven decisions. It also provides visibility previously unavailable when proper real estate investment space was not in place. 

Diversification is another important factor that has redirected investors to fractional ownership, particularly since the pandemic, when the stock and commodity markets have become volatile. The uncertainties caused by global economic headwinds necessitated the exploration of more promising avenues and markets. In contrast, India’s real estate market has continued to show promise, with the commercial segment breaking records for leasing and demand. According to a report, the Indian Commercial Real Estate Market is expected to grow at a CAGR of 21.1% between now and 2028, from USD 33.62 billion to USD 87.57 billion. 

As India’s ease of doing business index ranking improves in the coming years, more global corporations will establish their headquarters here. Global occupiers in sectors IT, manufacturing, BFSI, startups, and the booming service industry will require high-quality workspaces for their employees. These will result in more Global Occupier Centers (GCCs) operating from India’s key cities, thus increasing and accelerating demand for Grade-A office assets. In this scenario, fractional ownership will benefit both developers and investors. As the sector grows, fractional ownership will continue to open up new opportunities for investors in the coming years. 

The survey reveals strong post-COVID growth in the Indian real estate market

According to a recent survey by Shree Katariya & Associates (SKAA), the Indian real estate sector has demonstrated remarkable resilience and growth following the outbreak of the COVID-19 pandemic. The survey, titled “Consumer Outlook on Indian Real Estate Market- Post Covid-19 Growth Analysis,” sought to understand home buyers’ evolving preferences and sentiments in the aftermath of pandemic-induced changes. 

Positive Growth Trends 

Despite global economic uncertainties, the Indian real estate market is expected to reach an all-time high in 2023, with over 2.82 lakh units sold. Forecasts predict that sales will exceed 3,00,000 units by 2024, with annual growth of 10-15%. 

Several factors contribute to this resilience, including government initiatives, consistent economic indicators, and infrastructure projects such as the Smart City initiative. Low unemployment, inflation, and significant wage increases contribute to a positive market outlook. 

Changing Consumer Preferences. 

The survey reveals significant shifts in buyer preferences and budget allocations since COVID-19. The growing demand for larger homes and dedicated office spaces reflects the changing dynamics of remote work culture. Homeownership is increasingly recognized as a tangible asset in investment portfolios. 

Investment Preferences 

Real estate is the preferred asset class for investment in 2024, with 58% of respondents indicating a preference for property. This sentiment stems from the perceived importance of homeownership and the potential for high returns on investment. While stocks and mutual funds receive 26% of the votes, gold and fixed deposits receive only 4% and 12%, respectively. 

Optimistic market outlook 

The vast majority of respondents (71%), see the current period as an ideal opportunity to buy property, citing the importance of homeownership during the pandemic and the promise of higher returns on investment. Only 2% hesitate due to rising property prices and personal circumstances. 

Property Price Expectations

The survey shows widespread optimism about property prices, with 87% expecting further growth. Sixty-nine percent expect a steady increase, while 18% believe they will rise, but not as quickly after COVID-19. 

Ideal property types and budgets. 

Residential plots are the top choice for 41% of respondents, followed by villas/row houses (27%), and flats/apartments (24%). 78% of property seekers prefer properties under Rs 50 lakhs, making affordability a top priority. 

End users vs. Investors 

While 53% of respondents buy property for personal use, 47% are investors, indicating a balanced market dynamic. Surprisingly, 67% of investors are salaried, showing a shift in investment behavior toward long-term property ownership. 

Prefer ready-to-move properties. 

More than 42% of respondents prefer ready-to-move-in properties to avoid delays and ensure immediate occupancy. However, as the pandemic fades, Millennials and Generation X are turning towards properties in their early stages, indicating a shift from end-users to investors. 

Challenges ad Opportunities 

Lack of funds, a limited understanding of financing options, exploring other options, and personal circumstances are all major roadblocks to deciding on a product. However, there is some hope because 37% of respondents are willing to buy if they find the right deal. 

Summary 

Anil Katariya, Founder & CEO of Shree Katariya & Associates, emphasizes the importance of SKAA’s survey, which provides valuable insights into the changing landscape of the Indian real estate market. Despite challenges, the sector is growing due to changing consumer preferences, positive market sentiment, and attractive investment opportunities.  With this information, stakeholders can make more informed decisions about the best way to handle the market’s fluctuations. 

Are you considering investing in real estate? Here’s why non-metro cities are your golden ticket!

Tier 2 cities are outpacing traditional metros in their economic growth, thanks to numerous fields like manufacturing, information technology, education, and healthcare. For example, Nagpur is expanding in manufacturing, logistics, and information technology, whereas  Surat is rising in textiles, petrochemicals, and information technology. 

Real estate markets in non-metros or Tier-2 cities continue to grow swiftly, outperforming many metros in terms of investment and demand. Several factors contribute to the massive increase in real estate investment in non-metros. 

According to a recent analysis by Cushman and Wakefield and the Confederation of Real Estate Developers’ Associations of India (CREDAI), approximately 35% of India’s population currently lives in cities, with projections indicating that this figure will rise to 50% by 2050. 

This population growth is putting a strain on Tier 1 cities, where space is becoming more scarce. As a result, there is a greater emphasis on developing alternative urban areas with the potential to become new economic and real estate hubs. These are classified as Tier-2 cities. According to CREDAI, India’s urbanization rate is expected to exceed 50% by 2050, potentially leading to significant population migration to Tier 2 cities. 

Manaki Parulekar, Co-Founder of Claravest Technologies, shared her insights into the factors driving real estate investment growth in Tier 2 cities. 

According to Parulkar, this rise of integrated townships, which provide a mix of residential and commercial spaces, is helping Tier-2 cities grow. “For example, Panvel in Navi Mumbai is rapidly developing, with townships such as Hiranandani and Godrej, aided by projects such as the Navi Mumbai International Airport and the Atal Setu Bridge (MTHL).” 

The rise of commercial Grade A properties, affordable residential property values, and improved connectivity are driving accelerated growth in other cities like Jaipur, Bhubaneswar, Nagpur, Surat, and Kochi. 

These cities and regions have distinct advantages over traditional metro markets, attracting investors with promising opportunities for Parulekar, the following factors contribute to increased real estate investment in non-metros or Tier 2 cities.  

Diverse economic  development: 

Tier 2 cities are outpacing traditional metros in their economic growth, thanks to many industries such as manufacturing, information technology, education, and healthcare. For example, Nagpur is expanding in manufacturing, logistics, and information technology, whereas Surat is rising in textiles, petrochemicals, and information technology. 

Cost advantages: 

Tier-2 cities are significantly less expensive than Tier-1 cities. Low operational costs in these areas contribute to this advantage, making them appealing to businesses and investors.

Improved Quality of Life: 

Tier-2 cities offer a more relaxed lifestyle than larger metropolitan areas, with less traffic congestion, lower pollution levels, and a generally quieter environment. This improved quality of life appeals to businesses seeking a dedicated workforce and individuals seeking a better work-life balance. 

The government’s initiatives include: 

Government investments in transportation networks, airports, highways, and reliable power and communication systems support the growth of Tier-2 cities. 

Real-estate market growth: 

The real estate market in Tier 2 cities is thriving, particularly in the residential segment. Professionals want to live in larger apartments, remote work is becoming more popular, and there is a growing middle class with more purchasing power. Despite rising property prices, they remain less expensive than those in Tier-1 cities, creating appealing investment opportunities. 

Advancements in education and healthcare: 

Tier 2 cities are increasingly home to reputable educational and healthcare facilities, making them more appealing places to live and work. 

To summarize, these factors make non-metro areas attractive real estate investment destinations, often offering more sustainable growth and profitability than traditional metro areas saturated and high-cost environments.  

Akshaya Tritiya: Five important factors to consider when investing in real estate

Akshaya Tritiya, traditionally a festival of prosperity and success, is becoming a day for strategic investments, particularly in real estate. Fractional ownership of commercial properties is becoming increasingly popular, providing investors with accessibility, diversification, and higher returns. 

We, as Indians, value our traditions and cultural beliefs and find meaning in the rituals that shape our lives. The auspicious festival of Akshaya Tritiya, which falls on the third day of the Hindu month of Vaishakha, sends a sacred message of prosperity and success. As a result, buying gold on this day is expected to yield good long-term returns. Traditionally associated with gold purchases, this festival has become a day for foresightful investments. 

Initially, people turned to gold for financial gain, moving from physical holdings to gold ETFs and bonds. Real estate is currently undergoing a similar transformation. Fractional ownership of commercial real estate is increasingly becoming the preferred option, rather than traditional home purchases. This shift heralds a new era of investment strategies, with the advantages of fractional ownership— accessibility, diversification, and the potential for higher returns— attracting increased investor interest.  

As we honor tradition while embracing innovation, Akshaya Tritiya is recognized as a symbol of progress and an auspicious day to invest in a better future. Here are some things to consider when investing in real estate. 

Residential vs. Commercial Properties 

One of the first decisions investors must make is whether to invest in residential or commercial properties. Residential properties appeal to both homeowners and investors seeking rental income. However, residential properties may present difficulties in tenant management and offer lower rental yields than commercial properties. 

According to a recent industry report, housing prices have risen by 13 to 33 percent in seven major cities over the last three years, while commercial real estate markets have seen a 15 percent increase during the same period.  

Commercial properties, such as grade A office spaces, provide good rental yields of 8-9 percent, compared to 2-3 percent for residential properties. This enables investors to benefit from verified tenants while avoiding certain risks associated with residential properties. 

Opportunities for fractional ownership. 

As we know, Akshaya Tritiya is important for long-term real estate investments. This day seems ideal for purchasing valuable items with the expectation that they will bring prosperity and fortune.  Moreover, India’s real estate investment landscape is evolving similarly to a “mutual fund” moment, with regulators supporting fractional ownership. 

SEBI’s regulatory support for REITs, including establishing standards for Small and Medium REITs (SM REITs), marks a watershed momentum for investors, bolstering their confidence even further. These developments make real estate investment more accessible by allowing retail investors to participate in high-value properties through fractional ownership. With a lower minimum investment threshold of INR 10 lakhs, real estate investment becomes more accessible, aligning with the festival’s theme of prosperity and abundance. 

Benefits of investing through fractional ownership. 

Fractional real estate ownership offers investors several benefits, including regular income, asset security, liquidity, tax breaks, and ease of possession. This is an excellent choice for investors seeking both income and capital appreciation. 

Navigating the regulatory and legal frameworks 

Real estate transactions involve intricate regulatory and legal frameworks that differ depending on the location and type of property. Investors must follow all legal requirements and perform due diligence to ensure the authenticity of property titles, approvals, and ownership records. Seeking professional help from legal experts or real estate advisors can help investors navigate these complexities more easily.  

Tracking long-term growth potential

While short-term gains may be appealing, investors should focus on long-term growth potential when investing in real estate. Assessing infrastructure development, urbanization trends, and demand-supply dynamics can shed light on the property’s future appreciation potential. Investing in emerging markets or growth corridors with strong economic fundamentals can generate significant long-term returns. 

In conclusion, investing in real estate during Akshaya Tritiya is an appealing opportunity for those looking to increase their wealth and secure their financial future. Using these measures, investors can make informed decisions and take advantage of the favorable timing of this opportunity to embark on a successful real estate investment journey. 

A comprehensive analysis of how elections affect Indian real estate

Akash Pharande, managing director of Pharande Spaces, discusses past real estate trends during elections and predicts future trends. 

The political atmosphere in India, as in other countries, has a major effect on the property market, particularly during general election seasons. Election cycles have had a noticeable impact on the real estate market in the last twelve years. What can end users and investors expect following the upcoming general elections? Let us look at the Indian housing market’s behavior before and after the general election. 

Trends before the election

In the past, we have seen that the Indian real estate market slows in the run-up to general elections. Buyers and investors become cautious when there is uncertainty about election results and potential policy changes. Pre-election data usually show a trend of lower transaction volumes and a slower rate of property price increases. 

During the 2014 general elections, for example, sales and new product launches dropped significantly. Home sales in India’s top seven cities fell by nearly 30% in the quarters leading up to the elections. Similar patterns emerged in 2019, with both the primary and secondary markets showing as prospective buyers and investors chose to wait and see. 

Recovery for the following election 

The housing market usually recovers significantly following elections. Clarity in government policy and restored consumer confidence are frequently the driving forces behind this recovery. Following the 2014 elections, which led to the creation of a stable government, the market experienced a substantial rise. According to reports, positive consumer sentiment and increased investment led to a nearly 50% increase in sales in the following months. 

These patterns were repeated in the 2019 elections. Again, the guarantee of political stability aided the market’s recovery. Another factor to consider was that people now had confidence in the Real Estate (Regulation and Development) Act or RERA. By the end of 2019, new investments were flooding the market, not only in the residential space but also in commercial real estate. 

Current market and future outlook 

Despite the tensions surrounding the general elections, the Indian housing market has held up well this year. The current administration has taken several steps to boost housing demand, develop infrastructure, and implement economic reforms. The general belief that this government will remain in power has provided significant protection against the typical pre-election downturn. 

Following the election, the Indian housing sector is expected to remain optimistic. The market will undoubtedly rise if the ruling party can maintain policy and economic stability. There are also industry expectations that the GST on building supplies will be moderated with upcoming regulations. 

Aside from that, there is hope that financing for the housing sector will improve and that affordable housing will once again become a government priority. All of this will undoubtedly contribute to the housing market’s ongoing improvement. 

Investment implications

The post-election period will provide excellent opportunities for buyers and investors in residential real estate. When the government announces additional measures to boost the market and stabilize the economy, real estate will rise and yield significant returns as prices rise and demand rises. Such measures will be very compatible with the growing trend of digitization and transparency in real estate transactions. 

Real estate employment skyrockets

According to recent findings, Sashi Kumar, Head of Sales at Indeed India, stated, “The construction industry provides enormous opportunities for skilled professionals and semi-skilled labor. 

According to Indeed’s recent survey, hiring in the construction and real estate sectors increased by 86% between March 2023 and 2024. This surge in demand has conceded with a 57% increase in job seeker’s interest, with Delhi, Bangalore, and Mumbai leading the way.  

According to Indeed data, the top three cities for construction hiring are Delhi (5.05%), Bangalore (4.68%), and Mumbai (4.13%). A strong business environment, a rise in warehousing and industrial needs, increased commercial housing requirements as migration rises, the opening of manufacturing facilities, and other factors could all contribute to this trend. 

However, smaller cities like Ernakulum (2%), Kochi (1.50%), Lucknow (1.38%), and Calicut (1.25%) are among the top regions attracting job seekers. This trend could be attributed to low living costs or local job opportunities that allow people to work closer to home. Ernakulum, Calicut, and Kochi are the top Tier 2 and 3 cities for job postings.  

Engineers (17.18%), project leads and supervisors (8%), and architects (5%) are the most popular job roles, accounting for the majority of job postings. Engineers (21.31%), project leads and supervisors (9.33%), and architects (4.27%) are also popular among job seekers, which is consistent with the demand. As construction becomes more complex and technical, the industry requires more skilled workers. 

The construction industry remains a key driver of economic growth, offering numerous opportunities for skilled professionals and semi-skilled workers. The significant increase in hiring signals promising opportunities for job seekers and employers, while the increase in job seeker interest reflects the industry’s strong momentum. 

Mumbai’s real estate players predict robust growth within MMR

According to a report released by property consultants Knight and Frank, Mumbai recorded 11,504 property registrations in April 2024. 

With property registrations increasing by 16% in revenue to the exchequer and the state government maintaining the status quo on ready reckoner rates, real estate developers in the Mumbai Metropolitan Region (MMR) predict strong growth in the sector. They are optimistic about larger purchases in areas where connectivity has been resolved through the implementation of infrastructure projects such as the expansion of Mumbai Metro, Mumbai Trans Harbour Link (MTHL), Coastal Road, and others.

Prashant Sharma, President of the National Real Estate Development Council (NAREDCO) Maharashtra, stated, “We are optimistic about the future of the real estate sector in MMR.” Our projections show a strong growth trajectory, driven by several key factors. First, the rising demand for residential properties, particularly in the affordable and mid-segment markets, is a good sign. We also see a resurgence in commercial real estate, fueled by the expanding IT and finance industries.”  

“Moreover, government initiatives such as the relaxation of FDI regulations and the emphasis on infrastructure development, including the expansion of the Mumbai Metro, Coastal Road, and several other projects, making real estate investments even more appealing. We are also aware of the challenges, which include regulatory hurdles and the need for faster project approvals. However, with the state government’s commitment to improving the ease of doing business and our collaborative efforts to advocate for policy reforms, we are confident that MMR will remain a vibrant and dynamic market for real estate investment,” Sharma concluded. 

Manju Yagnik, Vice Chairperson of the Nahar Group and Senior Vice President of NAREDCO, Maharashtra, stated, “The residential real estate segment has demonstrated resilience, making it an appealing investment option for those with medium to low-risk tolerance. Despite numerous challenges, this industry has remained, emerging as an excellent choice for many investors. The higher initial cost of commercial properties frequently attracts investors to the residential segment. The higher initial cost of commercial properties frequently attracts investors to the residential segment. For people with limited funds and maintenance skills, residential real estate is a more accessible and practical option. 

Nitin Singhal, the co-founder of PropFina, stated, “With most micro markets experiencing higher supply than ever before, there will be corrections by highly leveraged players.” Those who have financially engineered their project portfolios and maintain control over their brand will have the least impact. Corrections can range from 10-15% and will be specific to micromarket dynamics. There could be higher offtake in areas where connectivity issues are being resolved. 

Commercial and warehousing sectors are on the rise as real estate trends. 

Singhal said that affordable housing will largely remain the same, and “When it comes to the commercial segment, which includes retail and office spaces, lease rates are going up and vacancies are going down. Introducing small and medium real estate investment trusts (SM REITs) creates a significant secondary market absorption opportunity. “This segment may experience a northwards moment,” he said. 

“Similarly, major warehousing players are quickly acquiring the land parcels, some of which are backed by sovereign funds seeking safe havens with higher-than-inflation returns.” Clear title land parcels ranging from 50 to 100 acres will see a rise in pricing, particularly along Samruddhi Mahamag exits, DMIC Virar-Alibag Multi-Modal Corridor (VAMMC), and so on. Singhal concluded that there will be a new segment of multi-level last-mile connectivity warehousing.  

April 2024 Trends and Consumer Preferences 

According to a report released by property consultants Knight and Frank, Mumbai recorded 11,504 property registrations in April 2024, contributing more than INR 1,043 crore to the state exchequer. According to the Maharashtra Department of Stamps and Registrations, in April 2024, there was an increase in registration of apartments measuring up to 500 square feet, accounting for 45% of all registrations. Of all the properties registered, nearly 86% of the Western suburb buyers and 92% of Central suburb consumers choose to buy within their micro market. This decision is influenced by the familiarity of the area and the availability of products that match their pricing and feature preferences. 

Real estate in Kashmir faces a gloomy downturn amid declining demand

Kashmir’s real estate sector is in turmoil, with demand failing dramatically. Brokers and property developers face a concern: an increasing number of sellers but a shrinking pool of buyers. 

According to real estate firms, the percentage of property buyers in Kashmir is steadily declining, which they attribute to the stress in other sectors. “Kashmir’s real estate market is currently down. People do not have sufficient funds to invest in real estate. Imran Bhat, a property dealer at Zakura, said that very few people are coming to buy plots of land these days. 

He highlighted the unusual situation in which firms have far more sellers than buyers. “Let me give you an example: I received up to ten queries today, six of which were from sellers. People are now selling their properties, but only a small proportion of the buyers are willing to buy,” Bhat added.  Sluggish demand in the real estate sector has put downward pressure on property prices across all segments. “Property prices have fallen. For example, if a seller has a property worth Rs 1 crore, they will only receive offers of Rs Rs 70 lakh. “Purchasing power has decreased significantly in the last few months,” Bhat explained.

Another real estate agent, Javid Ahmad, claimed that the market has declined by more than 30 percent. “Several economic factors have influenced the current state of Kashmir’s real estate market. Potential buyers, deterred by economic uncertainties and a cautious approach to investments, are waiting and seeing, resulting in a supply and demand mismatch,” he said. 

However, property developers remain optimistic about the sector’s revival. “Since it is election season, we hope for a revival of the sector; rates and demand are likely to rise with the start shortly,” Ahmad said optimistically. 

As the Kashmir real estate market faces challenges from dwindling demand and economic uncertainty, industry stakeholders are waiting for a turnaround. The sector’s fortunes are inextricably linked  to the broader economic landscape, and recovery depends on restoring consumer confidence and addressing the root causes of the current slump.