Tag Archives: Indian real estate

Indian Real Estate Market: Over 101 Land Deals Closed in FY24

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The Indian real estate market is experiencing a surge in activity, driven by an upsurge in land transactions throughout the country. This trend is due to high residential demand, particularly for luxury living spaces.

Land deals are on the rise. 

During fiscal year 2023-24, developers and other entities closed numerous real estate transactions. This involved 101 separate transactions totaling nearly 2,989 acres of land. This is a significant increase from the previous year, with land transactions up 58% since 2022.  

The growth is even more pronounced in the first quarter of 2024. During this period alone, builders and entities closed at least 29 land transactions totaling 721 acres, indicating a strong appetite for land in the real estate sector. 

Tier 2 and 3 cities are gaining traction. 

Interestingly, land deals are not limited to major metropolitan areas. According to Anarock’s data, while over 83 deals for approximately 1,135 acres were closed in the top seven cities, a significant number of deals (18 deals for more than 1,853 acres) were completed in various tier 2 and 3 cities.  This emphasizes the emerging markets’ growing potential, which is fueled by factors such as improved infrastructure and expanded economic opportunities. 

Luxury Living is Leading the Charge. 

While the global residential sector is experiencing strong demand, one notable trend is the rise in luxury living spaces. This is reflected in the types of land transactions that are closed. Developers are now more focused on acquiring land for projects aimed at this high-end market segment.  

Homebuyers’ changing preferences, such as a desire for spacious and well-equipped living spaces, could be influenced by the COVID-19 pandemic and the rise of remote work arrangements. 

Market Outlook: A Balancing Act. 

The increase in land transactions demonstrates the health of the Indian real estate market, particularly for luxury housing. However, experts warn that focusing solely on this segment risks ignoring the ongoing demand for affordable housing options, particularly among first-time homebuyers in smaller cities. 

Moving forward, the Indian real estate sector must strike a balance between catering to the luxury market and ensuring the availability of affordable housing alternatives. Strategic government policies and incentives can help encourage developers to participate in inclusive development projects, resulting in a more sustainable and equitable growth trajectory for the real estate sector. 

NAREDCO Praises REITs for Changing the Game in Indian Real Estate Investing Accessibility

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The National Real Estate Development Council (NAREDCO) and Kedia Corporate Advisors Pvt. Ltd. co-presented a February webinar on Small and Medium Real Estate Investment Trusts (SM REITs). Since the Securities and Exchange Board of India (SEBI) has recently made significant regulatory changes, it is important to grasp the details of SM REITs in light of the importance of the webinar. During the session, CA Amit Kumar Kedia, Director of Kedia Corporate Advisors Pvt. Ltd., explored the advantages and regulatory framework of SM REITs and shared his insights. 

“We discussed in the webinar how important it is for regulatory frameworks to support entrepreneurship and innovation in the real estate industry. By putting a premium on compliance and openness, we strengthen investor confidence and enable SM REITs to reach their full potential as reliable investment options. By introducing SM REITs, the stringent disclosure and compliance requirements aim to align the REIT market with the Indian equity market, fortifying the regulatory framework and projecting India as an appealing destination for local and foreign investors, augmenting our stature as a worldwide investment hub. 

The goal of the launch of SM REITs, based on the “schematization movement” in financial products, is to democratize ownership by making ownership accessible and affordable for a broad spectrum of investors. The objective of India to become a developed nation by 2047 is supported by initiatives such as these. Let us embrace this historic policy change as we all work together to embrace this major policy change as we all work together to build an empowered and developed India,” he stressed. 

Many subjects were covered in the webinar, such as the idea of SM REITs, the regulatory environment, market analysis chances to draw in investors, risk management techniques, potential tax ramifications, and future outlooks. To answer questions from the participants, a lively Q&A session was held. 

“The SM REIT webinar was a game-changer for the real estate industry in India. Delving deeply into creative methods and tackling challenges, served as an impetus to progress. Through this webinar, we aimed to empower the workforce, foster sustained growth, and drive development within the sector, focusing on alternative financing through Real Estate Investment Trusts (REITs), “stated G Hari Babu, National President of NAREDCO. 

“As the world’s fastest-growing major economy, India is expected to see faster real estate market growth in 2024, with all real estate indicators at record highs. An encouraging step to facilitating real estate investment in India is the introduction of small and medium-sized REITs. By attracting more retail and institutional investors and lowering entry barriers, these Real Estate Investment Trusts (REITs) hope to boost market confidence by offering opportunities for diversification. This new regulatory framework is expected to boost investments, liquidity, and the influx of both foreign and domestic capital into the real estate industry, according to NAREDCO Chairman Dr. Niranjan Hiranandani.

“The real estate industry has been going through significant transformations, with increased organization and the entry of new corporate players,” stated NAREDCO Vice Chairman Rajan Bandelkar. The industry benefits from this evolution in several ways, including increased stakeholder faith and trust, which were lacking previously. Moreover, there is now a stronger relationship between the real estate market and the share market, with rises in the former typically having a favorable effect on the latter.  

The March 8, 2024 approval of SM REITs is one noteworthy development. Real estate investment trusts (REITs) offer a fresh approach to real estate investing, facilitating quicker access to funds benefiting individual investors. Even those with smaller savings can invest in real estate thanks to REITs, as they allow for fractional ownership and market participation. The advantages are exclusively available to larger investors and are now available to regular people thanks to the democratization of investment opportunities.” 

Beyond Site Visit: Revealing Revolutionary Real Estate Trends

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Emerging consumer preferences, changing economic realities, and technological advancements are driving a significant evolution of the real estate landscape. The real estate market is set to undergo revolutionary changes by 2024, which could completely alter how we interact with real estate— from the purchasing and selling procedures to our daily lives and occupations.  

In the real estate industry, 2024 will see the emergence of sustainable living and smart home technologies as major trends. Modern Internet of Things (IoT) technology makes it simple for homeowners to integrate smart devices, enhancing energy efficiency, convenience, and security. Smart technologies improve home comfort and increase a property’s market appeal. Examples of these technologies include automated lighting systems and smart thermostats.

As more and more people demand environmentally friendly features like solar panels, energy-efficient appliances, and green building materials, sustainability is also experiencing a major renaissance. Buyers are expected to place a higher priority on living sustainably by 2024, which will have an impact on residential building design and construction.  

How prospective buyers view properties is revolutionized by virtual reality (VR) and augmented reality (AR) technologies. These immersive technologies will allow buyers to virtually tour properties from the comfort of their own homes by 2024.

Professionals in real estate are also using AR to improve the visualization of properties. Using AR, purchasers can see their dream home by superimposing virtual furniture and decor on actual spaces using AR glasses or smartphones. 

The global trend toward remote work has had an important effect on real estate trends, and this influence will not decrease in 2024. As more people and businesses accept flexible work schedules, buyers are reconsidering their requirements and searching for homes that fit new work-from-home lifestyles. 

As people strive to create practical and inspiring workspaces, dedicated office spaces, ergonomic designs, and high-speed internet connectivity will become necessary home features. Suburban and rural areas are becoming ever more popular among people looking for larger homes, outdoor spaces, and a calmer environment, which is challenging the allure of urban living. 

Real estate transactions are beginning to use blockchain technology, which promises to increase efficiency, security, and transparency. By 2024, blockchain applications for property transactions, title management, and general real estate process optimization may grow significantly. 

The decentralized structure of blockchain lowers the possibility of fraud and simplifies the whole real estate process. With the help of blockchain technology, smart contracts can automate several transitional processes, such as payments, inspections, and legal paperwork, for all parties concerned. This speeds up and improves the reliability of the process. 

The conventional homeownership model is changing as younger generations value experiences and flexibility more than long-term obligations. Co-living arrangements, in which single people or families share communal living spaces to promote a sense of community and lessen the cost of housing, are predicted to increase in popularity by 2024. 

A growing number of flexible housing options are becoming available to meet the needs of digital nomads and others who value mobility and the freedom to try out different living arrangements without the commitments of long-term ownership. Examples of these options include furnished apartments and short-term rentals. 

Significant changes to the real estate market are expected in 2024 and beyond due to advancements in technology, shifting work environments, and shifting consumer preferences. The real estate market is becoming more responsive, human-centered, and dynamic for buyers and sellers as the industry adjusts to these revolutionary changes. 

Mumbai-The way micro markets are defining real estate

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Global diversification 

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

The buyers will receive the first phase in 2027. 

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

The business has finished 40 projects to date. 

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Global diversification 

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

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

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

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

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

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

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

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

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

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

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

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

Residential sales 

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

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

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

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

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

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

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

Office Demand 

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Purchasing a home with greater accessibility 

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

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

How connectedness fuels the expansion of real estate

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

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

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

The Growth of Telecommuting and Digital Nomadism 

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

Getting to Transit Hubs 

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

The Revolution of Coworking 

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

Smart City Coordination 

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

Opening the Door for New Property Values and Amenities

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

Aspects and Sustainability

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Mumbai comes in first place. 

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

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

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

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

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

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

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

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

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

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

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

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

Infrastructure upgrades enable peaks in spiritual tourism. 

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

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

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

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

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

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

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

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

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

Is it possible for someone to sell a joint property? 

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

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

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

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

What separates co-ownership from joint ownership of a property 

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

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

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

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

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

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

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

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

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

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

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

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

From light to heavy assets 

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

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

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

Land availability

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Other property firms purchasing election bonds 

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

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

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

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

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

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

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

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

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

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

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

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

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