Tag Archives: Indian real estate

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

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

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

The Foundations of Ecological Infrastructure

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

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

Technology and Innovation: The Way Ahead 

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

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

Cooperation in Support of Sustainable Growth

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

Community Engagement and Inclusivity 

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

Raising Awareness and Developing a Sustainable Culture 

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

Overcoming Obstacles: A Coordinated Method 

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

A Request for Action 

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

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

MAHARERA Cancels 13,785 Real Estate Agents’ Registrations

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Conciliation forum

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

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

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

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

Grievances

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

Ways to raise the rate of success?  

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

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

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

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

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

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

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

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

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

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

Investment in real estate

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

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

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

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

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

Rental Profits

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

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

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

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

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

Investing in Europe

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Global capital markets director Harry Rogers joins Knight Frank India.

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Shishir Baijal, Chairman of Knight Frank, emphasized the importance of Rogers’ appointment regarding the new hire when India’s real estate market is flourishing. 

Harry Chaplin Rogers has joined Knight Frank India as the director of International Capital Markets, the real estate consulting firm announced on Monday. It will be entrusted to Rogers to spearhead the company’s efforts to assist local and foreign clients in locating investment opportunities in the Indian real estate capital markets. According to a press release from the company, “He will play a critical role in connecting offshore capital requirements with the Indian real estate client base.” 

Rogers will work with clients from the beginning of the transaction, investigating different funding options up to the capital stack. According to the company, Knight Frank’s global capital markets network combines the strengths of Knight Frank and Berkadia, a top US capital advisory firm owned by Berkshire Hathaway and Jefferies. 

In response to his appointment, what did Harry Rogers say? 

Rogers praised India’s stable economy as a growth accelerator and described his appointment as an exciting opportunity. “Being one of the world’s most stable economies with consistently high growth rates, the Indian real estate market offers an exciting opportunity for domestic  and global funds.” A robust mid-to long-term economic outlook, coupled with recent growth in office, warehousing, logistics, and other core and non-core sectors, presents many reasons for global and domestic investors to support investments in India. “I am excited to be joining Knight Frank, a truly global business with an unmatched track record spanning more than a century,” he said. 

According to the company, Rogers’ responsibilities include transaction structuring for offshore investors and Indian investment managers. Frank is eager to gain from Rogers’ expertise in global markets, especially in London. Knight Frank stated, “Among his responsibilities were leading transactions involving residential and commercial assets, personally helping his company to transact on deals worth over $300 million in the last three years.”

Concerning the most recent addition, what did Knight Frank say?

Regarding the new hire, Knight Frank Chairman Shishir Baijal emphasized the importance of Rogers’ appointment during a period of expansion for the Indian real estate industry. “India’s economy is expanding at one of the fastest rates in the world, and by 2030, it will continue to rank third in terms of GDP. It is becoming increasingly known as a desirable place to invest for foreign and domestic investors because of its strong domestic demand, long-term economic stability, and extensive infrastructure development. Following the COVID-19 pandemic, investors are inclined to diversify their portfolios to mitigate risk. India presents a good chance in this situation because of its solid foundation. He remarked, “I am excited to work with Harry to demonstrate to international investors the possibilities of investing in India.

What is the better long-term real estate stock to choose between Godrej Properties and DLF?

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With the real estate index plunging 125% over the last year, the market has experienced a notable upswing. It is possible to attribute this surge to high pre-sales numbers. In this context, let us compare the stocks of Godrej Properties and DLF to see which offers better long-term investment prospects. 

The real estate market has experienced a notable upswing in the last year, as evidenced by the realty index’s explosion of over 125 percent. Excellent pre-sales numbers from real estate companies are responsible for this increase. Real estate companies’ stock prices have stayed high, partly because they announced upcoming projects, encouraging pre-sales numbers and market expansion. 

In this context, let us compare the real estate stocks of Godrej Properties (GPL) and DLF to see which offers better long-term investment prospects. 

Trend of Stock Prices

To date this year, DLF and Godrej Properties have outperformed the benchmark. GPL has increased by 24% in 2024 YTD, compared to DLF’s nearly 29% increase. In contrast, Nifty has grown by 3%, while the Nifty Realty index has increased by more than 18%. 

Thus far in 2024, both stocks have produced positive returns in both months. DLF increased by 13 percent in February, bringing its winning streak to six months. In January, it increased by 9.7%. GPL saw gains for the fifth month in a row, adding 1.2 percent in February. It increased by about 18% in January. 

Meanwhile, DLF and GPL have produced multi-bagger returns over the past year. While GPL has increased by 114 percent, DLF has grown by over 159 percent. Conversely, Nifty Realty has experienced a growth of more than 125%, whereas Nifty has grown by more than 27%. In intraday transactions today, March 4, DLF and Godrej Properties reached their 52-week highs. On March 14, 2023, DLF reached its one-year high of Rs 932, surging 177 percent from its 52-week low of Rs 336.50. GPL also reached its 52-week high of Rs 2,524, rising 151 percent from its March 29, 2023, 52-week low of Rs 1,005. 

Meanwhile, DLF has come out on top over the next three years. While GPL is up just  67 percent, the stock has returned 194%. 

Earnings 

Due to increased revenue and decreased expenses, DLF reported a 27% increase in consolidated net profit to Rs 655.71 crore for the December quarter. Its net profit for the previous year was Rs 517.94 crore. In the October – December quarter of the 2023-24 fiscal year, total consolidated income increased to Rs 1,643.51 core from Rs 1,59 crore during the same period the previous year. Thanks to several launches throughout the quarter, DLF, the big real estate player by market capitalization, recorded its highest quarterly sales booking of Rs 9,047 crore. In addition to generating Rs 1,108 crore in operating cash, the company reported strong liquidity. 

In contrast, Godrej Properties’ net profit in Q3FY24 increased 6% YoY to Rs 62.47 crore. Revenues for the company were Rs 330.44 crore, up 68.39 percent. In the December quarter of FY24, the company achieved its highest-ever pre-sales, totaling Rs 5,700 crore, a 76 percent increase over the prior year. Eight project launches between October and December helped the pre-sales and accounted for about 69% of the bookings. According to the company, bookings for the nine months that end on December 31, 2023, totaled Rs 13,000 crore, or 93% of the company’s goal for FY 24. 

Which real estate stock offers the best chances for long-term financial gains?

Director and senior technical analyst Shhersham Gupta of Rupeezy favors DLF over Godrej Properties. 

Godrej Properties and DLF have cooperated on several projects for the past year, resulting in excellent outcomes. But of the two, the DLF is the most promising due to its ambitious project launch pipeline. DLF plans to significantly increase its operating flows and profitability, with planned launches having a gross development value (GDV) of Rs 32,000 crore, representing considerably more than previous years’ figures. 

Conversely, SAMCO Securities research analyst Moorjani believes Godrej Properties is more suitable. 

Both DLF and Godrej Properties are currently selling at ridiculous prices. Therefore, even though current owners may decide to hang onto their shares, new investors should steer clear of these stocks. Godrej Properties recently reported its highest-ever quarterly sales bookings for the second consecutive quarter. When it acquired a 12.5-acre plot of land in Hyderabad with a massive 3,500 crore revenue potential, it also caused a stir. Furthermore, contrary to many others in the industry, Godrej Properties has reported growth in its profits and revenue. Godrej Properties is an excellent option for investors considering its financial performance and potential for growth.  

In the interim, international brokerage firm Jefferies has called for a “buy” position in both real estate stocks. Godrej Properties’ target price has increased to Rs 2,700 (from Rs 2,635), signifying a gain of more than 7%. Conversely, the brokerage has already surpassed its target of Rs 875 for DLF. With two consecutive record-breaking pre-sales quarters and a robust launch pipeline for the fourth quarter, Godrej Properties expects to see at least 50% more sales growth this year. Due to the lack of noteworthy project deliveries during the quarter, its revenue of Rs 330.44 crore was below expectations. Worli (MMR), Ashok Vihar (NCR), and Sarjapur (Bengaluru) are just a few of the projects that GPL has said are probably going to be delayed. According to Jefferies on GPL, the launch pipeline for 4QFY24 is still strong, excluding these projects. A 15-year high quarterly profit, an all-time high in pre-sales, and more than Rs 1000 crore in free cash flow generation were made public for DLF in Q3. Additionally, according to the brokerage, DLF’s updated project pipeline indicates that launches for FY24 have taken place, but the pipeline for FY25 and FY26 has been steadily growing. It also added that the lease performance remained stable, with an 8% YoY rental growth.   

Yet, CLSA has a “sell” call on both equities. 

Ultimately, buyers and sellers of real estate need to consider these divergent viewpoints and carry out their due diligence. 

Note: These are the opinions of individual analysts or brokerage firms; Propertywala does not endorse any of the ideas or opinions expressed above. Before making any investment decisions, we advise investors to consult with qualified specialists. 

The Gurugram real estate regulator fines a developer for running deceptive advertising

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The policy is known as the Deen Dayal Awas Yojna (DDJAY) 2016 by the Authority, but the newspaper advertisement captions it as DDJAY 2024, which is “incorrect and misleading.” 

The Real Estate Regulatory Authority (RERA), Gurugram, has fined Yashvi Homes Pvt Ltd Rs 25 lakh for publishing a “misleading advertisement” of a real estate project under the state government scheme, Deen Dayal Jan Awas Yojna (DDJAY) 2016, in a mainstream daily. 

In a suo motu ruling, RERA Gurugram described the advertisement as “completely misleading.” Yashvi Homes is developing Golden Gate Residency, a residential project in Sector 3, Farukhnagar, Gurugram, under the DDJAY scheme. 

The policy is known as the Deen Dayal Awas Yojna (DDJAY) 2016, as per the Authority, but the newspaper advertisement captions it as DDJAY 2024, which is “incorrect and misleading.” 

The Authority stated that the promoter failed to supply the required project registration number and website address.

By Section 11(2) of the RERA Act of 2016, the promoter must prominently display the Authority’s web address in any advertisement or prospectus that it publishes. This website should contain all the information about the registered project that needs to be entered correctly, including the RERA registration number. 

The Authority spokesperson said, “The amenities promised in the advertisement do not correspond with the project’s approved layout plan submitted by the promoter at the time of registration does not include provisions for amenities like a school, clubhouse, swimming pool, badminton court, half basketball court, among others.” 

According to a spokesperson for the Authority, real estate promoters face legal action if they continue to use “misleading advertisements.” 

Examining the Patterns and Forecasts of Bengaluru’s Real Estate Renaissance

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Bengaluru saw a 29% increase in housing sales, from 49,480 units in 2022 to 63,980 in 2023.  

Over the past few decades, Bengaluru—often known as India’s Silicon Valley— has seen a remarkable transformation in the residential real estate market. Numerous factors, including better infrastructure, supportive government policies, a rise in the supply of IT professionals, and urbanization, have contributed to this change.

Bengaluru saw a 29% increase in housing sales from 49,480 units in 2022 to 63,980 lots in 2023. Bengaluru’s rise as India’s center of technology lies at the core of the city’s residential real estate boom. However, it is also critical to remember that, in 2023, 23% of the sales momentum came from the premium and mid-market (INR 50-75 lakh) segments, respectively. 

The main rivers of demand were the growing return to work in the IT/ITeS sector, the expansion of global firms already in place, and the establishment of Global Capability Centers (GCCs). Moreover, the excellent supply that renowned developers brought in was a significant factor in the sales increases in many of these cities.  

The city has been a magnet for highly skilled professionals from all over the nation and abroad due to its reputation as an innovation hub, numerous research institutes, start-ups, and multinational corporations. This talent inflow has led to a strong demand for housing, especially near large IT parks and tech campuses, which has sparked a rush of construction activity in these sought-after locations.

Due to its reputation as a livable city that boasts pleasant weather, lush green spaces, and a vibrant cosmopolitan culture, Bengaluru has become even more appealing to prospective homebuyers. The city’s vibrant lifestyle, excellent educational opportunities, and numerous dining options appeal to individuals and families, making it a great place to settle down and raise a family. 

The growth of Bengaluru’s infrastructure has been essential to the city’s residential real estate growth. The city has made significant investments in the road and metro rail systems and other public transportation networks to improve accessibility and connectivity between different micro-markets. The development of satellite townships and growing suburbs that will satisfy the evolving needs and preferences of city dwellers has been made possible by this increased connectivity, which has also expanded the housing options available to residents. 

Government policies and initiatives have also played a significant role in speeding up the real estate boom in Bengaluru. To serve the wide range of socioeconomic strata that constitute a community, initiatives like Housing for All and the Smart City Mission have encouraged developers to invest in affordable housing projects. 

In addition, the Real Estate Regulation and Development Act (RERA) has increased investor and homebuyer confidence by ushering in a new era of transparency and accountability. 

A new paradigm in Bengaluru’s residential real estate market has emerged with the emergence of co-living and co-working spaces, which meet the growing needs of a dynamic workforce. 

The gig economy and flexible work arrangements are becoming increasingly common, which has increased demand for shared living and workspaces aimed toward young professionals and entrepreneurs. 

Developers have quickly capitalized on this trend by providing creative solutions that combine affordable housing with numerous amenities— from wellness centers and community events to high-speed internet connectivity—–redefining what is in a modern urban setting. 

In addition, the proliferation of financing alternatives has democratized homeownership by increasing its accessibility to a broad range of individuals. In addition to offering attractive home loan programs with competitive interest rates, banks, and other financial institutions have also fueled the growth momentum of the real estate industry with the introduction of alternative financing models like peer-to-peer lending and crowdfunding.  

But even amid all the excitement surrounding Bengaluru’s residential real estate boom, it is essential to recognize the difficulties that still lie ahead. There is an immediate need for sustainable urban planning and development in the city because of its issues with traffic congestion, urban sprawl, and environmental degradation. 

Onward, Bengaluru’s comeback in residential real estate is evidence of the city’s tenacity, inventiveness, and vibrancy. The real estate sector is a prime location for investment and growth due to the convergence of progressive policies, infrastructural development, economic dynamism, and changing lifestyle preferences. 

To address problems and seize opportunities as Bengaluru grows and transforms, stakeholders must collaborate in a coordinated manner to move the city toward a more inclusive and sustainable urban future. 

The Real Estate Regulatory Authority (RERA) may soon receive clarification on tax exemptions from the GST Council.

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According to an official, the Goods and Services Tax (GST) Council plans to provide clarification shortly that the Real Estate Regulatory Authority (RERA) will not be obliged to pay the GST.  

The official argues that Article 243G of the Constitution, which addresses the responsibilities, authority, and powers of panchayats, applies to RERA, which acts as both a regulator and a facilitator for the real estate sector. 

To safeguard consumer interests, promote transparency in real estate projects, and create a fast-moving dispute resolution process, several states established RERA.

According to the official, it has come to light that RERA employees are exempt from GST due to discussions regarding the nature of their roles. 

The official went on to say that since state governments fund RERAs, charging GST would essentially be taxing those governments. 

The Model Code of Conduct for the general election scheduled for April-May is likely to be imposed following a meeting of the GST Council, which will be presided over by the Union Finance Minister and include state ministers.  

On October 7, 2023, the GST Council met for the last time. 

A specialist claims that before July 18, 2022, several services offered by significant Indian regulatory bodies were GST-exempt. These bodies included the Reserve Bank, the Securities Exchange Board of India (SEBI), the Insurance Regulatory and Development Authority (IRDA), the Food Safety and Standards Authority of India (SSAI), and the Goods and Services Tax (GST) network. 

The removal of this exemption on July 18, 2022, sparked debate about the tax ramifications for RERA organizations.  

“In addition, the Input Tax Credit (ITC) is not applicable in the residential real estate industry. It implies that eliminating RERA authorities from the GST  calculation may result in lower costs for developers and purchasers of real estate. So industry would greatly benefit from an explanation from the GST Council on this issue,” he continued.  

Real estate trends: Why are wealthy Indians purchasing opulent homes before the fiscal year’s end?

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Real estate experts estimate that the ticket sizes for this year’s real estate transactions range from less than Rs 10 crore to more than Rs 100 crore. 

There was a surge in the quantity of luxury real estate transactions recorded nationally before the close of the fiscal year. The ticket sizes for these properties range from Rs 10 crore to more than Rs 100 crore. Real estate advisors point out that there are financial considerations in addition to the fear of missing out (FOMO) on the most desirable properties in town due to the limited supply of luxury properties, which is one of the main driving forces behind such decisions. 

According to them, one of the explanations might be that several investors who have profited from the financial markets are booking profits by buying real estate in anticipation of possible election-related volatility. 

The range of ticket sizes, which begin at Rs 10 crore and go up to over Rs 100 crore, is another trend that has come to light. They suggested that this might be because of the Rs 10 crore cap on long-term capital gains reinvestment under Section 54F enacted in the Budget in 2023. 

Here are a few recent high-value deals that happened in Mumbai and Delhi-NCR. 

A 10,000-square-foot apartment at the Cameliias by DLF on upscale Golf Course Road in Gurgaon recently sold for Rs 95 crores.

For Rs 10 crore, Bollywood actor Mrunal Thakur and her father bought two apartments from Kangana Ranaut’s family in Mumbai’s Andheri West neighborhood. 

Earlier this year, eight members of the Halan family—investors in stocks and other asset classes– paid a total of Rs 104 crore for four sea-facing twin apartments in K Raheja Corp’s opulent south Mumbai project. The apartments total 16,000 square feet. 

Vratika Gupta, the creator of the well-known decor brand Maison SIA, paid over Rs 116 crore to purchase an opulent apartment in Mumbai’s Oberoi 360 West. 

Demand for luxury homes is not limited to posh areas of Mumbai or Gurugram but also spreads to suburban locations. Krishna Kuppuswami Dasarakothapalli, known for films such as The Family Man, Stree, and Go Goa Gone, bought a duplex in Mumbai’s Goregaon suburb for Rs 30.50 crore this year. 

According to Anuj Puri, chairman of ANAROCK Group, sales of ultra-luxury homes (worth more than Rs 40 crore each) have experienced an unparalleled surge in CY2023, setting new records for both quantity and quality. According to the most recent data from ANAROCK Research, the total sales value of ultra-luxury homes increased by an astounding 281% in CY2023 compared to CY2022.

He continues, “CY2023 has already made Indian real estate history in ultra-luxury property sales before it is over.” 

Additionally, of the 62 ultra-luxury homes sold in CY2023, at least 12 had prices above Rs 100 crore, compared to just nine in 2022, according to Anarock data. In 2023, fifty opulent residences were sold for amounts between Rs 40 crore and Rs 100 crore. There were only four deals in this price range in 2022. 

He continues, “This demonstrates the country’s current appetite for ultra-luxury homes.” 

According to Amit Goyal, Managing Director of India Sotheby’s International Realty, who spoke with HT Digital, there has been an increase in high-end real estate transactions toward the end of the fiscal year.

Many investors who have profited from the stock market are now real estate investors. After all, the stock market is expected to remain volatile during the elections. 

“That is to say that ticket sizes are smaller than last year after the announcement in Budget 2023 and the changes to Section 54 and 54F went into effect,” he added. 

According to him, a surge of transactions surpassing Rs 100 crores was recorded in March 2023 as an increasing number of wealthy individuals utilized their earnings to acquire real estate before April 1, 2023, when the exemption from long-term capital gains tax for buying residential properties was limited to Rs 10 crores.  

According to Ritesh Mehta, Senior Director and Head of Residential Services & Developer Initiatives, West and North, JLL, several buyers are investing in real estate, the majority of which they intend to use for their use and booking profits from the share market.  

“This is one of the causes of the comparatively small ticket size compared to the prior year. Most of the deals in the previous year were above Rs 90 crores, especially after the long-term capital tax exemption for purchasing residential units at Rs 10 crores. Before the end of the fiscal year, most deals in the premium segment range from Rs 10 crores to more than Rs 100 crores,” he said. 

In the future, he says, “the trend is expected to continue.” 

The real estate fund of Motilal Oswal contributes. First close of Rs 1,250 crore.

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Across India’s top 8 cities, IREF VI will strategically concentrate on early-stage investments in mid-income/affordable residential projects. 

The first close of the sixth real estate fund, India Realty Excellence Fund VI (IREF VI), was announced by Motilal Oswal Alternates (MO Alts). Launched with an aim corpus of approximately Rs 2,000 crore, the fund has committed Rs 1,250 crore after its first close. 

MO Alts has made capital investments in the real estate sector through five real estate funds. The company oversees additional stand-alone and in-house real estate investments. As an experienced real estate manager, MO Alts has funded approximately Rs 7,500 crore across 50 Indian developers and completed more than 150 investments. In addition, they have profited from over 20% of their pre-approval wagers. 

The early-stage investments in mid-income/ affordable residential projects in India’s top 8 cities—Mumbai, Delhi-NCR, Pune, Bangalore, Chennai, Hyderabad, Kolkata, and Ahmedabad—will be the primary strategic focus of IREF VI.   

High net-worth individuals, Indian non-residents, family offices, and corporations have raised this fund. The fund is set up as an alternative investment fund (AIF Category II). MO Alts is the name of Motilal Oswal Financial Services Limited’s alternative investment platform. 

In the growth stages of real estate and private equity, MO Alts manages assets worth over $2 billion in aggregate. 

“This marks the largest and fastest first close for our real estate funds to date,” stated  Vishal Tulsyan, MD & CEO, MO Alts. This successful fundraising endeavor amid a rising stock market shows our investors are in our abilities. We are very optimistic about the real estate market and believe it will experience strong growth shortly. We are committed to strengthening our position as the leading capital provider for the real estate sector by taking advantage of as many opportunities as we can in the years to come.” 

“The Indian real estate market has exhibited remarkable resilience and growth in recent years,” stated MO Alts co-head (real estate) Saurabh Rathi. The demand for residential real estate has been exceptionally high, and the office market has exhibited robust absorption as it approaches the pre-pandemic peaks. The need for early-stage capital is more apparent than ever, with sectoral indicators indicating sustained momentum. We are committed to meeting this need by utilizing our solid risk management framework, conservative underwriting procedures, and proven track record.” 

Co-head of MO Alts’ real estate department, Anand Lakhotia, stated, “We are incredibly appreciative of our investors’ continued faith in our investment knowledge, especially those who have previously invested in our funds. We are in an excellent position to take advantage of new opportunities because of the tightening restrictions on banks and NBFCs regarding capital utilization and the positive outlook for the real estate market. Our robust pipeline of investment opportunities in major cities being evaluated at various stages and offering competitive risk-adjusted yields makes the deal flow look extremely promising.” 

Five trends are influencing the residential real estate market in India.

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The rapid expansion of the middle class in India is mainly to blame for the significant changes occurring in the Indian real estate market. Development professionals, investors, and potential end users are all very interested in this revolutionary shift, characterized by a sharp increase in population and economic growth. Urbanization, rising incomes, and easier access to education all contribute to this phenomenal growth. 

The Indian residential market is a leading indicator of changing regulations, economic vitality, and societal aspirations due to its novel opportunities and trends. The value of India’s residential real estate market reached an all-time high of Rs.3.47 lakh crores in FY23, representing a strong 48% annual growth. The sales number also showed an upward growth trajectory, increasing by 36% to 379,095 units sold. 

The nation is changing swiftly, and every part of the industry beats in time. The following are the main developments influencing India’s residential real estate market:

  1. Rise of Low-Density Housing: Plotted developments, townhouses, and villas are among the low-density housing options currently in high demand. Low-density housing uses less energy, such as electricity, air, and water, and is similar to small neighborhoods or single-family homes. Long-term residents of this kind of housing are encouraged to lead sustainable lives. Reducing the need for additional infrastructure in neighborhoods by forming them with fewer houses and preserving the land largely intact can help save resources. Buyers are becoming more aware of the benefits of low-density housing. Low-density housing is becoming more popular for people to escape congested urban areas and prioritize privacy, space, and harmony with nature. Developers are introducing carefully planned, low-density projects in response to this trend, emphasizing the value of open spaces, lush greenery, and a feeling of exclusivity. This change reflects a rising desire for well-balanced homes that combine contemporary conveniences with the peace of suburban settings. According to India Sothby’s International Realty’s annual Luxury Outlook Survey 2023, roughly one-third of HNIs and UHNIs are willing to spend over Rs 10 crores on real estate. For instance, Landmark Group sold out of its plots in record time at Landmark Avana, a new low-density housing project in Gurugram, particularly to a younger demographic looking for more space and a better standard of living. 
  1. Technological Integration: By improving comfort, security, and convenience, technology integration is completely changing the residential landscape. Ad IoT devices, home automation systems, and AI-powered assistants biome standard features in smart homes set new standards for futuristic living while providing residents with a seamless living experience. India’s smart home market is expected to generate US$6.5 billion in revenue by 2024. Based on research and markets for smart homes, India ranked third globally in 2020. Furthermore, by 2025, there will be 442 million smart homes in India, an increase over the current number of homes, according to Statista’s Digital Market Outlook for 2021. 
  2. Growing Preference for Owning a Home: The start of the COVID-19 pandemic has caused a significant shift in the way that society views home ownership. Purchasing a home is becoming more and more important to people than renting one. People now recognize the benefits of living in their own space with areas set aside for work, study, and leisure. As a result, people are more conscious of the inherent worth of owning a home since it provides a greater sense of stability and security during uncertain times. Like the pre-COVID housing loan levels, Indian banks advanced housing loans totaling approximately 2 trillion Indian rupees in FY22. As more Indians were investing in residential real estate, this suggested that homebuyer confidence was returning. 
  1. Elegant living: The market focuses on pricey, showy real estate. These upscale residential developments draw discriminating buyers looking for an unmatched quality of life with their first-rate amenities. According to a recent India Sotheby’s International Realty study, the number of affluent people planning to buy luxury real estate in the upcoming years has considerably increased. The luxury real estate market has seen substantial disruption due to growing income levels, deeper technological integration, and evolving consumer preferences brought about by shifting demographics. Millennials are becoming interested in luxury real estate as their incomes rise and their urban lifestyles change. Luxurious properties are in high demand due to the possibility of substantial rental income and a high return on investment. The sales of luxury homes in India increased by 130% in the first half of 2023 compared to the last year. Set to open in Dwarka Expressway, Landmark Group’s new residential project promises to be the ideal residential complex with its endless luxury services and state-of-the-art amenities that are best suited for the changing way of life. 
  1. Tier 2 becomes a powerful force: After the pandemic, many people assessed their living situations and looked for sale houses in their hometowns to feel more stable. The consequence has been an increase in the visibility of Tier 2 cities, which are growing hubs for real estate. The discernible increase in investment activity is causing significant changes in these cities’ real estate markets. With a robust housing market supporting them, Tier 2 cities are rapidly expanding their infrastructure and offering various opportunities for residential and commercial use. Furthermore, the government’s support of cities helps the real estate industry expand. Projects to develop townships and settlements may receive up to 100% FDI approval from the government. Tier 2 cities real estate growth has surpassed Tier 1 cities. For example, at the end of the fiscal year 2021-22, Ahmedabad’s residential real estate market size of INR 83,390 crores exceeded the market sizes of some Tier 1 cities, like Chennai and Kolkata, with INR 52,554 crore and INR 38,440 crore, respectively. This expansion was also apparent in Tier 2 cities like Nashik, Jaipur, Vadodara,  and Gandhinagar. 

The government has increased its efforts to provide affordable housing in response to the recent spike in housing demand, and developers have modified their business plans. The term “affordable housing” describes real estate with prices within the reach of low- and middle-class families. The affordable housing project Landmark the Homes in Sector 81 is anticipated to be completed by December 2024, according to the Landmark Group. One can look into government-funded programs created especially for low-income groups or home loan options from private lenders/NBFCs to purchase affordable housing in India. A commitment of Rs 79,000 crore (US$9.64 billion) for the PM Awas Yojna has been announced in the Union Budget 2023-24, a 66% increase over the previous years.  

Government initiatives such as the Rajiv Awas Yojna and Pradhan Mantri Awas Yojana have encouraged developers to take on projects to offer affordable housing, thereby promoting accessibility and inclusivity in the real estate market. Meeting the demand for 40 million urban housing units is necessary, given that the population is growing at an average annual rate of 2.1% and that a large portion of our population has low purchasing power.

 India’s growing urban population is driving up demand for homes, changing the country’s skylines and city spaces. 

Real estate developers are purchasing more land

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Due to the overwhelming demand for homes, real estate developers have accelerated their plans to acquire land. A pattern discovered in 2023 continues this year, with builders going on a land-buying binge, particularly in major cities. However, why are land deals skyrocketing, and which acquisitions are grabbing the news in 2024? Propertywala finds out. 

Industry reports indicate that as real estate tycoons continue their widespread land acquisition binge, real estate will rise by roughly 10-15 percent, reaching nearly 3,00,000 units in 2024. With an emphasis on metropolitan areas, developers have been looking for underserved local markets to cash in on the rising demand for homes. Land deals in well-known Indian cities have significantly increased due to this. The subsequent piece delineates the land-acquisition patterns of builders for the years 2023 and 2024 thus far, in addition to the elements propelling the rapidly increasing demand for housing. 

Large-scale land grabs by real estate developers

Major developers throughout India are seeing an increase in land ownership momentum due to deals involving direct acquisitions and joint ventures. For example, DLF Ltd. recently paid Rs 825 crore to purchase a 29-acre plot in Gurgaon’s Golf Course Extension. The land has 7.5 million square feet of development potential. A 100-crore land deal on Gurgaon’s Golf Course was closed by TREVOC Group concurrently. 

LikewiseJan 25, 2024, Lodha Developer, a company listed as Macrotech, completed the acquisition of a 100% stake in Pune’s Goel Ganga Venture. As for a business-known developer, Gulshan Homz paid Rs 150 crore for a 2.5-acre plot in Sector-129, Noida. In collaboration with regional partners in Uttar Pradesh, Gulshan Homz is also building a residential project in Moradabad. There are plans to build 90 residential units as part of the project. 

Godrej Properties’ recent acquisition of a 4-acre plot of land in Bangalore also helped to start the trend. Godrej anticipates that the project will have a development potential of about Rs 1,000 crore as they look to solidify their position in the Bangalore real estate market. 

Godrej gained attention in the previous fiscal year for its meticulous land acquisitions, adding 18 new land parcels to its list. An approximate revenue potential of Rs 32,000 crore will result from these acquisitions, with a cap of Rs 15,000 crore for 2024. 

Small-time local developers are finding it challenging to acquire land because of the recent development by large developers. Developers, for example, are not happy with the bidding guidelines for a 24-acre land parcel in Bandra, Mumbai, and are criticizing the eligibility and financial requirements. Developers claim that limiting the bidder’s net worth to an astounding Rs 15,000 core will prevent many small developers from participating in the Bandra Reclamation Project. 

Cause of the increase in housing demand 

According to the Confederation of Real Estate Developers’ Associations of India (CREDAI), housing demand needs to reach 93 million by 2036, confirming the longevity of the rising residential sales trend. But given rising living expenses, what might be the motivating factor behind such steadfast demand? 

“Homebuyers’ demand has an increased interest cost environment resulting from elevated inflation, the strong domestic economic fundamentals, and the increasingly aspirational attributes of residential real estate,” says Shishir Baijal, Chairman and Managing Director of Knight Frank India. However, the trend is apparent in the primary residential markets across the country.”  

Significant land purchase initiatives during the previous year  

While land acquisition activity in the first quarter of 2024 got off to a great start, some notable deals occurred in the year prior. Here are a few noteworthy land purchase transactions from 2023: 

  • In Gurgaon, near the Dwarka Expressway, BPTP Developers paid Rs 87 crore for a 5.2-acre land parcel. 
  • Chintels India gave the Sobha Group land parcels close to the Dwarka Expressway for Rs 121.82 crore. 
  • Graphite India sold 1.02 lakh square meters of land to TATA Realty in Bangalore for Rs 986 crore. 
  • Casa Grande paid Rs 56.8 crore to secure a four lakh square foot deal in Hyderabad. 
  • With a land purchase in Gurgaon for Rs 597 crore, Oberoi Realty made its real estate debut in the Delhi NCR area. 
  • Birla Estates purchased a 28-acre plot of land in Sarjapur, Bangalore, for a residential development. 

Trends to watch in land investment 

In light of the current circumstances, industry experts have identified a few prominent investment trends that can help investors and developers make better decisions for the upcoming fiscal years. For example, because large builders are purchasing land parcels for development in and around Tier-1 cities, the focus on these areas is still prevalent. 

However, there is also a ton of investment potential in cities in Tiers 2 and 3. Recent reports claim that builder brands are focusing on the undeveloped markets of Nagpur, Panipat, and Ludhiana. Investor’s first choice is also the Mumbai Metropolitan Region (MMR). Due to their lower initial costs and potential for appreciation, buyers are eager to purchase new properties. 

Developers intend to seize the opportunity while it is still favorable, acknowledging that the current surge in housing demand is here to stay. Industry insiders predict that land acquisition will continue to be popular in 2024, with Tier-1 cities and developing areas continuing to be the hotspots. 

Are you planning to surprise your partner with an apartment on Valentine’s Day?

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Present for wife on Valentine’s Day: If you intend to give your partner an opulent apartment this year, ensure your gift deed is registered. 

A whole new apartment for your sweetie on Valentine’s Day? Although the suggestion might seem a little over the top to some, the gift idea might be perfect for wealthy husbands. However, there are a few things wealthy husbands should be aware of before they get too carried away. 

Is the apartment completed or still under construction?

Choose a finished project over one that is still in progress. You can avoid paying 5% in Goods and Services Tax (GST) if you buy an apartment after the occupation certificate is issued.  

Who is going to have to pay taxes?

The wife is exempt from paying taxes on the property that her husband gifts her. When The wife takes control of the replacement of both the cost and the holding period, However, according to Sonu Iyer, partner of People Advisory Services (tax), EY India, any income from the property, such as rental income, can be combined with the husband’s income. 

Gift deeds, stamp duty, and other things you should know 

Giving your wife a piece of real estate is a way to give your spouse financial stability.

“The thing to be kept in mind while making such a transfer is that it has to be effected by way of a written instrument (gift deed) that has been signed by the husband and attested by at least two witnesses,” says Mona Dewan, managing associate at ZEUS Law Associates. 

In addition to registering the gift deed at the subregistrar’s office, there is an upfront stamp duty and registration fee.

A few states have announced stamp duty reductions. For example, if the property passes to the spouse, Haryana offers a stamp duty exemption, according to her. 

If a husband gives his wife a residential or agricultural property in Maharashtra, there is an applicable stamp duty of Rs 200 (Rupees two hundred only). 

The Uttar Pradesh government recently set a maximum stamp duty of Rs 5000 for stamp duty on gifts of residential or agricultural property between husband and wife. 

In Uttar Pradesh, there was a 7% stamp duty on real estate transfers between blood relatives or family members before the reduction took effect. The stamp duty was either 7% of the property’s value or 7% of the circle rate for such immovable property, whichever was higher. 

However, there is a catch if the property is bought with a gift deed and given as a gift by the recipient before the five-year registration period ends. Accordingly, the reduced stamp duty benefit will not be available if the property received through a gift deed is later by the recipient within five years of the registration date, according to Dewan. 

Nevertheless, she notes that there is no such exemption in Delhi and that stamp duty on a gift deed from a husband to wife is equal to 2% of the property’s circle rate value plus any applicable transfer duty assessed by the Municipal Corporation of Delhi and registration fees.  

How would a wife feel about giving her husband an apartment?

It is important to note that if a wife chooses to give her husband immovable property, she can also receive similar exemptions in Haryana, Maharashtra, and Uttar Pradesh.

It’s important to remember that stamp duty in Delhi is due on a gift deed from a wife to her husband and is equal to 3% of the property’s circle rate value plus any applicable transfer duty and registration fees. 

Recall that the gift deed is final. 

It is vital to be aware that once a husband gives his wife property through a gift deed that was duly executed and registered, the gift is final, enforceable, and cannot be modified. 

According to Dewan, this implies that the done, or wife, becomes the owner of the gifted immovable property and that the donor, or husband, typically lacks the right to revoke or cancel such a gift once it has occurred. 

Due to high inflation, foreign investments in the Indian real estate sector are declining

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Due to rising inflation and geopolitical concerns, foreign investments in the Indian real estate market, led by the US, decreased in 2023. The most popular investment asset was, remarkably, office space. 

Amidst global uncertainties, American institutions’ investments in the Indian real estate market dropped by 39% in 2023 to $1.35 billion, according to JLL India. Despite this, foreign institutional investors remained the primary contributors to the Indian real estate market, accounting for 63% of all investments in 2023 after increasing by 14% from the previous year. 

Since 2006, investors worldwide have found India’s real estate market particularly appealing, especially those from the US. US investments have regularly made up 40-45 percent of total investment inflow over the last five years.  

India has grown economically despite obstacles like the global economic downturn and geopolitical unrest. 

In 2023, the country’s real estate market brought in over $5.8 billion in institutional investments through 53 deals, up 14% from the year before, according to JLL India. 

Lata Pillai, senior managing director and head of capital markets at JLL India, stated that inventors are becoming more cautious due to the current mix of inflationary pressures and geopolitical uncertainties in the US economy. 

Several foreign investors, including Blackstone, GIC, Abu Dhabi Investment Authority, Brookfield India Real Estate Trust, and Canada Pension Plan Investment Board, are involved in the Indian real estate market. 

With $50 billion in assets under management as of December 2023, investment firm Blackstone stands out as one of the largest investors in the nation. The company specializes in real estate investments in malls, hotels, data centers, and warehouses. 

Office space remains the most popular investment option based on industry tastes; by 2023, it will account for 52% of all investments. 

In the upcoming years, Pillai predicted, “new-age sectors like student housing, data centers, and housing are also gaining attention from inventors and will continue to attract a substantial share of institutional investments.”

According to Vestian, a commercial real estate services company with $4.6 billion in investment deals and platform commitments, the office sector has remained the most popular. As of 2023, it held the highest percentage of all declared investments (52%); the following highest percentages went to residential (32%) and logistics and industrial (13%). 

Vestian highlighted that because of their higher returns, the prominence of organized players, and their transparency, commercial assets have always been the “preferred choice” of foreign investors. 

“In India, the average rental yield for residential properties is between 2-3 percent, while the average for commercial properties is 7-8 percent. Additionally, organized players and a transparent business environment increase investor confidence,” stated Vestian CEO Shrinivas Rao. 

After Embassy Real Estate Investment Trust departed, Blackstone became India’s office property owner, covering 70 million square feet. In addition, Blackstone has worked with the Embassy Group, K Raheja, Panchshil, Salarpuria, and Hiranandani on multiple projects. 

According to Vestian, foreign investors looking for higher investment returns will pour money into the Indian real estate market as soon as the global economy stabilizes. 

“Planned infrastructure developments and the strong performance of the Indian economy are expected to drive growth, even in the face of a global slowdown,” stated Pillai. 

In addition, Pillai predicts that new investment opportunities such as data centers, flexible spaces, real estate investment trusts, and infrastructure investment trusts will expand rapidly in the upcoming years due to intrinsic domestic demand. 

All the information a prospective homeowner needs to know about Isnapur, Hyderabad

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Building extensions to the farthest locations has made Isnapur one of Hyderabad’s many new residential hubs. Isnapur, a short drive from Patancheru’s business district, is a well-known investment destination with easy access via NH-65, a tranquil atmosphere, and housing developments from renowned builders like Ramky Group. 

Isnapur, a developing neighborhood in North Hyderabad, is beside Cheruvu Lake and offers easy access to the city’s other regions via NH-65 and the Outer Ring Road. The region’s affordability and proximity to the Patancheru Industrial Hub– about 10 km away–contribute to its appeal. As a result of these factors, more and more housing projects, including Ramky Nextown by the well-known Ramky Group, have been established in Isnapur. 

Purchasing real estate in a place like Isnapur could be profitable because land prices have risen by about 80%. However, where should I invest in Isnapur, and what is the state of the local infrastructure like? Let’s find out!

Reasons to Invest in Hyderabad’s Isnappur 

The following is a thorough summary of the elements that draw investors to Inapur: 

The existence of well-known developers 

On the outskirts of North Hyderabad lies a residential neighborhood called Isnapur, which is rapidly developing. The Nehru Outer Ring Road, which connects the area to various parts of Isnapur, is located within four kilometers of the city, even though NH-65 passes through it. The many residential hubs that encircle Isnapur contribute to its vibrancy. Pahamylaram, Pocharam, Citizens Colony, and Lakdaram are a few of the surrounding locations. Ramky Estates and Farms Hyderabad has introduced Ramky Nextown, a new housing project in the area, in light of Isnapur’s strategic location. 

Expected to be finished by December 2026, Ramky Nextown is a gated community spanning 7.78 acres (4.8 acres in Phase 1). Starting at Rs 55 lakh, the project offers roomy 2 BHK residential apartments with large balconies. Each Ramky Nextown unit has a super built-up area of approximately 1000-1010 square feet. Three towers with ten stories each and 550 units total will be part of the project when it concludes. Ramky Nextown’s RERA number is P01100007370. 

Prospective homeowners in Ramky Nextown can take advantage of over twenty amenities, including a car wash area, swimming pool, football field, salon, spa, and child care center. Ramky Nextown also provides its residents with the benefits of modern amenities and a natural setting, as 70% of the space. 

Location strategy 

Inapur is a residential area with good transportation links. Therefore, purchasing real estate here would enable hassle-free access to Hyderabad’s most well-known locations. Major transit hubs close to Ramky Nextown include: 

  • NH-65 is about 400 meters away, and Nehru Outer Ring Road is about 4 kilometers away. 
  • By NH-65, Patancheru and Nagalapalli railway stations are roughly 7 to 12 km apart. 
  • The Nehru Outer Ring Road takes approximately one hour to reach Rajiv Gandhi International Airport.  

Proximity to work areas 

In addition to saving money and time on commutes, owning a home close to one’s place of work also opens up future rental opportunities. Ramky Nextown’s project site, Isnapur, is one such location with numerous nearby commercial establishments. A selection of them is enumerated as follows: 

  • Isnapur is roughly 6-10 km from Patancheru Industrial Area and Pashamyalaram Industrial Park. 
  • Easily accessible via Nehru Outer Ring Road are the well-known IT hubs of Gachibowli (27 km) and Financial District (25 km). 
  • There is roughly a 15-kilometer divide in BHEL Township. 

A well-liked vacation spot 

Pashamylaram Lake is one of Isnapur’s other noteworthy features. Isnapur is a popular tourist destination because of its lush, abundant vegetation and the picturesque Pashamylaram Lake, about three kilometers away. Pashamylaram Lake, well-known for its serene atmosphere and breathtaking scenery, welcomes plenty of tourists. It remains a popular destination for those seeking peace and tranquility. Many residents from the neighborhood visit this place to spend time together and go for walks in the morning and evening. Many people visit the nearby natural sanctuary of Cheruvu Lake.

The possibility of investment

Isnapur’s closeness to industrial areas and IT hubs, along with its easy access via NH-65 and the Outer Ring Road (ORR), are the main reasons for the spike in demand for real estate in the area. Tenants and home buyers alike now find the area a desirable place to live. According to PropertyWala, the average cost of real estate in Isnapur, Hyderabad, is about Rs 3,000 per square foot, following an astounding 80% increase in land prices over the previous five years. The average monthly rent for a two-bedroom apartment in Isnapur is between Rs 12,000 and 16,000, making it the most sought-after rental option. 

One key benefit of Iasnapur is its affordability, which offers investors a good chance to profit from future price growth, particularly in light of impending infrastructure projects. The following infrastructure initiatives are a few that should benefit Isnapur: 

  • The planned four-kilometer road would reduce traffic close to Isnapur and link Pashamyalaram Industrial Hub to the Outer Ring Road. 
  • The NH-65 connects Isnapur directly to Sangareddy, where the four-lane Hyderabad Regional Road would pass. 
  • Another significant project that may change the game is the Hyderabad-Bengaluru High-Speed Rail Corridor. According to the plans, there would be stations for the rail corridor at Yelahanka in Bangalore and Secunderabad in Hyderabad. Isnapur is approximately an hour’s drive from Secunderabad. 

Residents’ opinions 

According  to a tenant in the area, “Isnapur is a growing residential hub close to the well-known Patancheru Industrial Area and has excellent public transportation connections to other parts of the city.” One of the advantages of residing in Isnapur over other areas of Hyderabad is the affordability of housing options. Several gated communities and apartment complexes with contemporary amenities and facilities have emerged in the area due to the recent rapid growth in residential development. It is a handy place for families with kids because of its numerous educational facilities such as colleges and schools. Furthermore, hospitals, restaurants, and retail centers are all close by.” 

Obtain Environmental Clearance for Building Projects

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Environmental clearance is one of the most crucial factors to consider when planning a construction project. It is the requirement for appropriate environmental clearance for construction projects in many cities. 

The environment may be significantly impacted by construction projects, both during and after the project concludes. Therefore, construction companies acquire environmental clearance from the relevant authorities before starting a project. 

Getting an EC clearance can be a challenging and drawn-out procedure. But it is crucial to wrap up the project environmentally conscious.  

This blog post will discuss the notification process for environmental impact assessments in India. We will discuss the meaning of EIA draft notification and its implications for building projects. We will also examine how India’s environmental clearance procedure ensures that building projects happen with the least possible negative environmental impact. 

EIA: What is it? 

The process of acquiring data regarding the possible environmental effects of a proposed project is known as an environmental impact assessment, or EIA. The development of mitigation strategies to lessen or completely eradicate those effects comes next. 

There are usually multiple steps in the EIA process. 

Screening: The proposed project undergoes screening to determine whether it will likely have significant environmental impacts before moving forward with an EIA. Further assessment is not necessary if there is no possibility that the project will have an impact before construction can begin. 

Scoping: Should the screening step indicate that there may be significant effects, the study region must decide which particular impacts need to undergo assessment.  

Assessment: Information about the possible environmental effects of the proposed project is gathered following the establishment of the study region. Numerous sources, such as computer models, field research, and lab tests, may provide this data.  

Mitigation: Based on the results of the assessment step, mitigation measures are put in place to lessen or eliminate all of the observed effects. These could be adjustments to the project’s blueprint, alternative construction methods, or requirements for post-construction monitoring. 

Making a decision: Compiling and evaluating all available data will determine whether or not to proceed with the project. If serious environmental problems continue, changes could be made or even scrapped. 

What is an Environmental Impact Assessment Notification?  

Government action to preserve the natural world resulted in the 1986 Environment Protection Act. The government issues an Environmental Impact Assessment Notification under section 3 of this act, which mandates that parties seeking to initiate new projects or alter current ones notify the government in advance and adhere to specific guidelines to protect the environment.  

What is the EIA Draft Notification? 

A formal notice that construction projects will be subject to the EIA process is the draft notification for the EIA. Usually, the notice is posted on the project website and in a local newspaper. The notification contains details about the project, the reason for the EIA, and how to take part in the proceedings. 

A crucial step in the EIA process is the notification of the draft EIA. The alert should include all pertinent project information clearly and succinctly. Included should be the contact information for those who would like to learn more or contribute. 

Among the most important recommendations are those found in the newly published draft of the EIA notification 2020, which includes shortened periods for public comment and hearings. The draft has shortened the public hearing notice period from 20 to 30 days and the hearing completion time from 40 to 45 days. 

The analysis was missing several projects classified as A, B1, or B2. Furthermore, proponents must follow specific guidelines outlined in the EIA report following approval from the relevant authority, known as post-clearance compliance. 

Projects lacking environmental clearance can now apply for a post-facto clearance through the notification, allowing them to resume regular operations.  

Construction projects with a built-up area of up to 1,50,000 sq meters are exempt, which marks a significant increase over the previous exemption of 20,000 q meters. These projects must still undergo evaluation by a state-level expert appraisal committee before obtaining environmental clearance. 

India’s Environmental Clearance Procedure

The Environmental Impact Assessment (EIA) notification 2006 governs the environmental clearance process for construction projects in India. All projects needing an EIA must register with the relevant State Pollution Control Board or Pollution Control Committee, per the Notification. 

The notification also outlines the steps involved in conducting an environmental impact assessment (EIA), including holding public meetings, submitting reports, and getting approval from expert appraisal groups or EACs.  

In India, the goal of the entire environmental clearance process for building projects is to reduce any potential harm to the environment. 

Below is an explanation of the Indian environmental clearance procedure. 

  1. Locating and Choosing the Site 

To start the project, the proponent must find a site that satisfies all applicable siting guidelines. The proponent has to find another location if the project site needs to be better. 

  1. Evaluation of Categories 

The next step is for the proponent to determine whether the project’s proposed environmental clearance is needed. The proponent carries out an independent or assisted EIA study if the notification schedule permits it. 

  1. The SPCB-submitted EIA report and evaluation. 

The investor then gives the EIA report to the relevant State Pollution Control Board and the state-based forest department (if located adjacent to or inside the forestland). 

The SPCB assesses the quantity and quality of pollutants or effluent that the project will likely generate and the efficacy of the proposed control measures to comply with the regulations. If the SPCB finds no irregularities and approves, it will issue a No-objection certificate. 

  1. Public Discussion 

Since it allows citizens to voice concerns about the project, the public hearing is essential for environmental clearance. This procedure also occurs before the no-objection certificate is issued.  

The chair of the hearing committee is the District collector. Before proceeding to the approval stage, the hearing committee reviews all suggestions and objections from the general public. 

  1. Sending a request for consideration to MoEF. 

The project proponent applies to the Ministry of Forest and Environment for the necessary environmental clearance in the case of Project A and the state government in the case of Project B. The supporting documentation for the application includes the EMP, NOC, EIA report, and details about the public hearing. 

  1. Evaluation of the Environment. 

Workers at the Ministry of Environment and Forets have reviewed the documentation, and if more inspections are required, they can stand on location. Moreover, the applications are received by and regularly met with the environmental appraisal committees, which are for each industry sector, including mining, river valley, and industries. 

The committee may also arrange public hearings to foster community involvement in development decisions for specific initiatives that spark public interest. After that, the appraisal committees draft their recommendations for accepting or rejecting specific projects.

Getting around India’s constantly changing real estate laws

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India’s real estate market has a long history of being associated with complexity and opportunity. Stakeholders, from large international investors to individual homebuyers, have seen the regulatory framework change over time to strike a balance between sustainable development and rapid growth. The real estate industry’s legislative environment is currently changing, indicating a move in the right direction toward efficiency, accountability, and transparency. 

By 2024, the real estate sector will have a value of Rs. 65,000 crores, and by 2025, it will contribute 13% of the country’s GDP. As a result, the regulatory framework will evolve to encourage the growth of this actor. We must cope with this changing environment by recognizing and responding to these progressive developments revolutionizing the industry.   

The Start of Reforms in Regulations 

A turning point for the industry was the introduction of the Real Estate (Regulation and Development) Act of 2016 (RERA). An essential first step in revitalizing the real estate sector has been RERA, which attempts to protect buyers and increase developers’ accountability. The Act provides a systematic approach to resolving disputes by guaranteeing the timely completion of projects and establishing a regulatory body to oversee transactions. 

The Benami Transactions (Prohibition) Amendment Act amendment, which has been crucial in reducing illicit transactions and enhancing transparency, is another significant achievement. It fosters an environment of efficiency and trust, along with the government’s push to digitize municipal and panchayat papers and land records through the Digital India Land Records Modernization Programme (DILRMP). Legislative trends indicate that the liberalization of the Indian economy will continue to be prioritized, with a renewed emphasis on transparent real estate development and affordable housing initiatives. 

Inventiveness in Adherence 

We now reside in a more convenient and accessible era thanks to the digitization of compliance procedures. The red tape that formerly limited the industry’s agility has been reduced thanks to online portals for RERA-mandated project registration, complaint filing, and project progress reports. Significant improvements have occurred to the ease of doing business, boosting investor confidence domestically and internationally. Furthermore, buyers can now make better-informed decisions about the projects they invest in thanks to the transparency that RERA has brought about. 

Financial Regulations: A Step in the Right Direction 

The Goods and Services Tax (GST) has simplified the structure of real estate taxes, thus reinforcing financial discipline. Furthermore, the Pradhan Mantri Awas Yojana (PMAY) is bolstering the affordable housing market, drawing in investments and guaranteeing that the populace can realize their dream of owning a home. Affordable housing saw a significant boost with the announcement during the Union Budget 2023-24 of a commitment of Rs 79,000 crore (US $ 9.64 billion) for the PM Awas Yojana. 

By lowering lending standards for home loans and updating the sector’s risk weights, the Reserve Bank of India (RBI) has also contributed positively. It has encouraged banks to lend more money to developers and homebuyers, increasing the sector’s liquidity. 

Furthermore, India’s real estate market has historically been strongly protected and heavily shielded from foreign investment by stringent laws that only allow foreign companies to make local partnerships or joint venture investments, emphasizing particular project types like townships. But under the ‘Make in India’ initiative, 100% foreign direct investment (FDI) is now permitted for large-scale infrastructure and real estate developments, including townships, industrial parks, shopping centers, and more, thanks to reforms begun in 2005 and further enhanced in 2016. This method keeps smaller-scale real estate ventures for Indian businesses safe from being overtaken by foreign corporations by strategically directing foreign investments toward large, capital-intensive projects. 

These regulatory policies do have a positive effect; this is not just theory. It is a reality that is beginning to take shape and is already providing noticeable advantages. 

Promoting Sustainable Development 

The government’s emphasis on energy transition and reaching Net Zero targets is India’s real estate industry toward a sustainable revolution. The introduction of the Green Rating for Integrated Habitat Assessment (GRIHA) is driving the creation of energy and environmental efficiency. This change indicates a clear path toward environmentally, socially, and economically beneficial sustainable practices. An additional ambitious project is the Smart Cities Mission, which seeks to integrate urban development and sustainability into a model that could emulate. 

India’s real estate laws are evolving, which indicates potential for future development and improvement. Cooperation amongst regulators, consumers, developers, and the government highlights a dedication to a sector that sustains sustainability and makes a substantial economic contribution. This adaptable governance structure satisfies both the demands of the general public and market dynamics. Maintaining and strengthening these rules is essential to creating an open, effective, and equitable ecosystem, which is necessary for a robust real estate market and economy. Despite its complexity, this shifting landscape creates opportunities for a more stable and reliable real estate sector, which is critical to India’s continued economic development.  

Discover the top Indian cities for commercial real estate investments.

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Real estate investing has long been considered a prudent financial move, and commercial real estate has always set the standard for available options. Several Indian cities present enticing returns for investors in commercial investment while compiling a list of India’s top cities. 

Everyone says, “Investments are subject to market risk,” but very few guide where to put your money. This article may be helpful if you are considering investing in commercial real estate in India and are looking for options. 

Even though our nation is still developing, some cities have incredibly developed real estate markets with excellent investment opportunities. This article lists the top three cities for investing in commercial space with their benefits. 

What is a commercial property? 

Any real estate used for purposes other than residential is considered a commercial property. These properties, which can be office spaces, retail stores, industrial warehouses, or hospitality establishments like hotels and restaurants, are all intended to bring in money. 

Advantages of owning commercial real estate

Whether it is a home or business, real estate investment continues to be considered the better choice. Compared to other real estate investment options, commercial property has certain advantages. They are as follows:  

Consistent Revenue 

The possibility of a consistent income stream is one of the main benefits of investing in commercial real estate. Unlike residential spaces, commercial spaces usually involve long-term lease agreements with businesses. For investors, this guarantees a steady stream of rental income that is predictable and stable.  

Greater returns on rentals 

When compared to residential properties, commercial properties typically offer higher rental yields. Because the returns are typically higher, it is an appealing option for people looking to maximize their investment returns. 

Greater duration of leases 

Generally speaking, commercial leases are deeper than residential ones. As an investor, you can profit from long-term income stability, which lowers the risk of vacant properties and fluctuations in income. 

An increase in property value

Commercial properties in prime locations frequently increase in value over time. Property values rise in response to an improvement in the local business climate, which raises demand for commercial space. 

India’s top cities for commercial real estate investments 

Risks, future potential, and return on investment (ROI) are a few variables that determine which city is best for commercial investment. The top three Indian cities for commercial space investment have been ranked. Take a look at the list: 

Bangalore 

Bangalore, sometimes known as the Silicon Valley of India, is a popular place to invest in real estate both residentially and commercially. Due to its close ties to the thriving IT actor, there are numerous employment opportunities in the real estate sector. 

Astute investors believe Yelahanka, Hebbal, and Electronic City are great choices. Large companies like Dell, Aegis, Infosys, Wipro, Hewlett-Packard, Accenture, Tata Consultancy Services, and Tech Mahindra have chosen Bangalore’s IT sector, which boosts the city’s real estate market. 

Considering this, real estate investing is still very common in Bangalore. The dynamic real estate market presents an ideal opportunity for investors seeking to increase and stabilize their real estate holdings. 

Mumbai 

Mumbai, India’s financial hub, has added residential and commercial space to its real estate portfolio. Mumbai is one of the priciest places to invest in real estate investments, making it one of the most expensive places to do so. 

The strategic features of the city, such as the Mumbai Trans Harbour Link, Atal Setu, and several metro links, are crucial in promoting the growth of commercial real estate. As a result of this advancement, builders and developers have aggressively promoted investment by providing significant discounts on real estate. The Maharashtra government’s discounts and reductions in stamp duty have increased consumer confidence and interest in the market. 

Pune 

Pune, a megacity in Maharashtra, has established itself as a city with potential commercial investment, contributing 13 percent of the state’s GDP. The city is a center for technology, and major companies in the sector are in high demand for commercial space. The city’s excellent connection to Mumbai has contributed to the recent explosive expansion of the housing market. 

Pune’s real estate values have shown investors an excellent return on their investment. The purchase of real estate (both residential and commercial) saw a notable uptick in 2021. Experts in real estate predict that the city will maintain its current trend and emerge as a viable center for commercial investments. 

Summarize 

India and its developing cities offer investors plenty of space and investment potential. Therefore, the ideal location for your commercial real estate investment if you want a higher return on investment. Bangalore, Pune, and Mumbai are the best places to invest in commercial real estate. Before investing in any type of real estate, whether commercial or residential, it is advisable to conduct in-depth market research.

The top 5 most important questions to ask your builder when buying a property that is still under construction.

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While making a real estate investment, buyers frequently need help to choose between an under-construction and ready-to-move-in project. Though both are available, people frequently hesitate to invest in under-construction properties because of the lengthy construction periods. Before investing your hard-earned money in a property still under construction, find the answers to the five crucial questions you should have asked the builder by reading on. 

Under-construction properties are highly appealing to investors and end users due to their relatively lower prices when compared to ready-to-move-in units. Purchasing an under-construction unit can also allow you to select the preferred Vastu direction of the unit, the flooring, and, in certain situations, the floor. An under-construction property does, however, come with some drawbacks. Although Godrej Properties Limited, a Grade A developer, completes projects on time, the nation’s real estate market is chock-full of postponed under-construction projects. With that in mind, this piece aims to equip purchasers with a few essential inquiries to ask if purchasing a property that is still under construction. 

Industry experts feel that as long as due diligence occurs, buyers should not let the risk associated with any investment prevent them from purchasing an under-construction property. Furthermore, buyers now find it easier to select reliable developers and projects thanks to the Real Estate (Regulation and Development) Act (RERA) 2016. Customers feel more confident about purchasing real estate now that the RERA has emerged. From the project’s current phase to the permissions obtained or pending by the developer, every detail about the project is available on each state’s RERA website. The innovative legislation’s penalty provisions protect purchasers from construction delays and subpar work. 

To what extent has your project gained recognition since its inception? 

There are effects between a real estate project and its surrounding area. For this reason, choosing whether to invest in an appreciating or depreciating project is essential. It also applies to the project’s surrounding area. To put it in perspective, the homebuying values of Godrej Hillside, an unfinished residential project in Mahalunge, Pune, have increased by more than 50% during the past three years. Over the same period, Mahalunge’s real estate prices have increased by more than 20%. Godrej Hillside anticipates raising prices to complete several units beginning in October 2024. Investing in such a project yields a positive Return on Investment (ROI) for the buyer. You have to ask the builder this kind of question to ascertain the performance of your investment. 

How many units in the project have sold out? 

Even though a builder is more likely to provide an exaggerated response, it is still crucial to ask this question. The investigation is necessary since sluggish sales could indicate issues with the specific project. Asking the builder how many inquiries they receive in a week or month can also help you gain a better understanding. A reasonable exception for the conversion should be one or two percent of the quoted amount. Real estate experts caution against adopting a herd mentality when making investments. It is advisable to carefully examine the project, investigate the neighborhood, verify the project’s RERA registration status, and get a sense of the builder’s popularity by speaking with previous purchasers. 

What is the total number of units sold in the project? 

Even though a builder is more likely to provide an exaggerated response, it is still crucial to ask this question. Investigating sluggish sales is essential as it could indicate issues with the specific project. Asking the builder how many inquiries they receive in a week or month can also help you gain a better understanding. A reasonable expectation for the conversion should be one or two percent of the quoted amount. Nevertheless, you should not copy a project because other buyers flock to it. Real estate experts caution against adopting a herd mentality when making investments. 

It is advisable to carefully examine the project, investigate the neighborhood, verify the project’s RERA registration status, and get a sense of the builder’s popularity by speaking with previous purchasers. 

Can you tell us more about your prior projects? 

Verifying a builder’s history is extremely important. If the builder has completed projects on time and with structural integrity, you can expect the pattern to continue. Developers like Godrej Properties can build a solid reputation by meeting the needs of their customers with well-executed projects on schedule. 

Which commercial rights in the project will you keep? 

Developers typically maintain a commercial stake in a project long after it ends and ownership passes on. When buyers learn that the builder has kept some rights, like the clubhouse, and has only shared membership with them, they frequently feel duped and let down. It is best to talk about this with the builder and get it included in the agreement before you sign on the dotted line. 

Even though investing in a project still under construction may seem intimidating, there are benefits, such as being somewhat more affordable initially, offering better returns over time, and offering more customization options. However, it is advisable to invest in a project accredited with the RERA, use a property portal, and consider any future developments in the neighborhood before finalizing the deal–as with any real estate transaction. However, it is advisable to invest in a project accredited with the RERA, use a property portal, and consider any future developments in the neighborhood before finalizing the deal –as with any real estate transaction. 

A beginner’s comparison between investing in Indian real estate and the stock market

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Purchasing financial instruments has been a method for people to increase their wealth. The stock market and real estate are India’s two main investment options. Each has advantages and disadvantages of their own. Let us compare investing in real estate and the stock market for beginners in India in this article, considering key elements like growth potential, taxation, liquidation, flexibility, emotional connection, control, and return on investment (ROI). 

Return on Investment (ROI)

Real estate: 

Investing in real estate frequently offers a steady, growing return over time. Growth in property values and rental income affects the overall return on investment. Nevertheless, the return might be slower in contrast to other investment options. 

For instance, investing in a residential property in an expanding area may result in rental income and future value growth.  

Stock market: 

A more rapid return on investment is possible by investing in the stock market, which also offers dividends and capital gains. However, unpredictability of volatility can also result in a decline in investment. 

Example: Investing in reputable businesses with a record of paying dividends can increase stock value and provide income. 

Prospects: If investments happen at the right moment, the stock market could yield faster and possibly higher returns, but market trends are unpredictable. Real estate is a long-term wealth-building option because it provides stability and tangible assets. 

Ease of liquidation

Real estate: 

There is more liquidity in stocks than in real estate. Stocks are more liquid than real estate. A house may take a while to sell, and there may be legal complications. The state of the market may take a while to sell, and there may be legal complications. 

The state of the market may also affect how long it takes to find a buyer. However, if you have invested in a suitable property, the market slowdown might not affect it. 

Example: Outside variables like market demand and economic conditions can affect how quickly you sell your real estate investment if you need to liquidate it. 

Stock market: 

Due to their high liquidity, stocks enable investors to buy or sell shares quickly. Online trading platforms also facilitate quick transaction execution.  

Example: Selling stocks is a way to offer liquidity during a financial emergency. 

Prospects for the Future: Stocks are a good option for investors who value quick access to their money because of their superior liquidity. 

Taxation : 

Real estate:

Several taxes, such as capital gains tax, registration fees, and stamp duty, apply to real estate transactions. Although there are deductions for rental income, rental income itself is taxable. 

For instance, if a property sells after being owned for two years, long-term capital gains tax currently at 20% with indexation may be applicable. 

Stock market: 

The taxation of stock market gains varies depending on how long they remain invested. The tax rate on short-term gains (held for less than a year) is higher than that on long-term gains. 

For instance, short-term capital gains from equity investments are subject to 15% tax, whereas long-term capital gains are tax-free up to a certain amount. 

Prospects: There will be significant tax ramifications, and real estate and the stock market are complex. Investors should consider their tax liability based on their investment horizon.   

Flexibility:

Real estate: 

Compared to stocks, real estate investments are typically less flexible. It takes time and work to sell a property, and diversification can be difficult for smaller investors. 

In the real estate industry, for instance, managing several properties or modifying investment strategies might necessitate more work. 

Stock market: 

Investing in the stock market offers low entry barriers and great flexibility. Investing in mutual funds or buying and selling various stocks allows investors to quickly diversify their portfolios. 

As an illustration, an investor can quickly reallocate their portfolio in response to shifts in the market or their goals for their investments. 

Prospects for the future: The stock market offers more flexibility, enabling investors to better manage their portfolios and adjust to shifting market conditions. 

Emotional connect: 

Real estate: 

Investing in tral estate frequently involves tangible assets like residential or commercial buildings, which evoke strong emotions. Making decisions may be influenced by this emotional connection. 

Example: Even though it might be financially wise, an investor may be find it difficult to sell a family home or vacation property due to sentimental value. 

Stock market: 

Investing in the stock market can be less emotional and more abstract than owning physical assets. Market trends and financial analysis are often the driving forces behind decisions. 

Example: Performance metrics, not sentimental attachments, are usually the basis for stock selling decisions. 

Prospects for the future: Depending on the objectives and circumstances of the investor, the emotional attachment to real estate can be either an asset or a liability. 

Control: 

 Real estate: 

Investors in real etate have more direct control over their holdings. They are capable of making decisions about maintenance, renovations, and property enhancements. 

Example: A real estate investor may choose to upgrade a property in order to increase its value and rental potential. 

Stock market: 

Stock market investors have little control over the management and business practices of the companies in which they invest. Because corporate management and market forces have a significant influence on decisions, there is very little that you can do about it. 

Example: The company’s executives run things on a daily basis, but at annual meetings, share holders have the opportunity to vote on certain issues. 

Future prospects: Because real estate allows for more hands-on control, it may appeal to investors seeking for a tangible, actively managed asset. 

Factor of risk relative to the asset: 

Real estate:

In general, real estate is thought to be a less risky investment than the stock market. Long-term property values are typically more stable, and the tangible aspect of an asset lands security. 

Example: The risk of large losses can be reduced in a growing economy by the steady appreciation of real estate values. 

The stock market: 

Because of this inherent risk, investing in stocks is riskier. Stock prices can be impacted by a number of variables, such as world events, industry trends, and economic conditions. 

Example: A sharp drop in stock prices may be caused by external factors like a global economic  downturn.  

Future Prospects: For investors who are risk averse, real estate presents a more stable investment environment. The possibility of greater returns in the stock market is accompain by greater risk, though. 

Potential for growth: 

Real estate: 

Investing in real estate offers the possibility of capital growth and rental income. Well-located properties can see significant value appreciation as demand is driven by urbanization and population growth. 

Example: As infrastructure develops and demand rises, real estate investments in developing areas can result in significant growth. 

Stock market:

The stock market has the potential to expand significantly and quickly, particularly in developing industries or when there are strong individual stocks. 

As an illustration, investing in technology stocks during a time of industry innovation and expansion can result in a sizable increase in portfolio value.

Prospects for the future: Growth is possible in both the stock market and real estate, but the stock market might yield larger return faster. 

When contrasting real estate and stock market investments in India, each path has particular benefits and drawbacks. An investor’s preferences, risk tolerance, and financial goals will determine which option is best for them. While the stock market offers flexibility and liquidity, real estate offers stability, emotional connection, and control. To capitalize on these advantages and reduce risks, a well-balanced investment portfolio may include a combination of stocks and real estate. For wealth management to be successful in India, it will be essential to stay informed and adjust tactics as market conditions and investor preferences change. 

Do you invest in real estate? Check this out

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Over $5.8 billion in institutional investments were made in 53 deals in the real estate sector in 2023, a 14% increase from 2022. Demonstrating India’s resilience in the face of global economic headwinds. Investor confidence in the Indian growth story is expected to persist through 2024, according to JJL India report titled “Investing in Tomorrow: The Real Estate Journey of 2023.” 

With a 63% stake in the total investments in 2023, foreign institutional investors made up the most contributors. The Americans, historically the most to investments, saw a sharp decline to 23% of total investments from a peak of 43% in 2022. 

Nonetheless, domestic investors saw a sharp rise in market share, with 37% of all investments made, up from an average of 19% over the preceding five years. 

With 81% of all real estate investments made, equity remained the predominant type of investment. Non-core assets make up 53% of all transaction volumes. 

According to the report, the office sector will continue to be the most favored industry in 2024. 

With a 52% share of the investment pie, the office sector by a wide margin. Residential and warehousing came in second and third, respectively, at 13% and 16%. The amount of capital flowing into the office sector increased by 61% in 2023, from $1.8 billion in 2022 to $3 billion in 15 deals.  

Emerging industries to draw capital 

In the upcoming years, many institutional investments will go toward emerging industries like student housing, data centers, and warehousing. Institutional investors in India have been paying more attention to student housing as an asset class. There is a big chance for institutional investment in this space because of the rising number of students going to college and the rising need for high-quality housing. 

Institutional investments in India in 2023 appeared unaffected by inflation or unclear global economic trends. The trend of investments surpassing $5 billion has persisted since 2018. The US and Canada’s investment activity has decreased due to various rate increases in the Americas. Nonetheless, the APAC area made a sizable contribution in 2023. The outlook for the Indian economy is still favorable, and we anticipate this positive trend will last into CY 2024, according to Lata Pillai, senior managing director and head of capital markets at JLL India. 

Pillai continued, “The India growth story will continue to be robust, driven by its inherent strengths and continued focus on economic development, even though the upcoming elections may cause delays in decision-making.”

Platform Assertions 

Furthermore, $2.8 billion in platform commitments to invest over the following few years was made public in 2023. Platform commitments decreased significantly (by 38%) from 2022, the year with the most growth in platform deals—a 174% rise from 2021. 

The global economic slowdown has impacted investor sentiment toward long-term commitments despite increasing investments. With an investment capacity of more than $1.8 billion, Ivanhoe Cambridge and Mapletree struck the largest platform commitment deal in the history of technology-led offices in India last year.  

Exploiting public market opportunities with REITs. 

Real estate businesses and investors now have more ways to access public markets in India thanks to the introduction of REITs, which provide regulated investment structures and liquidity. 

The first retail Real Estate Investment Trust (REIT) in India, Nexu Select Trut REIT, was listed in 2023. Anchor investors responded favorably to the IPO, absorbing 45% of its total size. 

The last two REITs, Brookfield REIT and Nexus Select Trust REIT saw a rise in participation from domestic institutional investors, indicating a growing level of interest and confidence in the Indian REIT market. In 2023, Blackstone sold its 23.5% stake in Embassy Office Parks REIT for $850 million, or Rs 316 per unit, and left the REIT. 

Bain Capital, ICICI Prudential MF, and Capital Group were the top three purchasers, acquiring stakes ranging from 7 to 9%. The robust reaction from institutional investors suggests that this real estate investment tool is becoming increasingly popular and that real estate is beginning to institutionalize. 

2024

The nation’s growth trajectory has generally benefited from the government’s efforts to advance infrastructure development and bring structural reforms. Experts in the market believe that this growth will continue and that investors will continue to feel optimistic about India’s growth story. 

Shortly, the outlook for private equity investment in the Indian real estate market is anticipated to remain positive, having recently improved.  

However, it will be crucial to closely monitor the trends in capital flows going forward into 2024. The capital flow slowdown observed in the fourth quarter suggests the potential cautious approach investors, especially those with foreign experience, may take in 2024. 

Investors may become more risk-averse and careful when making real estate investments due to long-term uncertainty and monetary tightening in developed countries. The upcoming elections may cause delays in decision-making, but overall market sentiment remains positive.