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Surging Home Rents Signal Housing Affordability Crisis

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    Surging Home Rents Signal Housing Affordability Crisis
    Surging Home Rents Signal Housing Affordability Crisis

    Surging Home Rents Signal Housing Affordability Crisis

    India’s rental market is witnessing an unprecedented surge, with home rents increasing by 9-21% across major cities in 2024. A combination of rising housing demand, supply constraints, and urban migration trends has pushed rental prices to record highs. Metropolitan cities like Mumbai, Delhi-NCR, Bengaluru, Hyderabad, and Pune have been hit hardest, where rental costs have surged due to increased demand for premium housing, a growing workforce, and an influx of new residents. Industry analysts note that rental yields are improving, benefiting landlords and investors, while tenants struggle to keep up with escalating costs.

    A primary driver of this surge is the post-pandemic recovery in urban employment. As businesses resume full-scale operations, professionals are returning to city centres, increasing the demand for well-located rental properties. Additionally, a slowdown in new residential completions has tightened availability, exacerbating rent hikes. Experts suggest that while higher rental returns attract investors, affordability concerns are mounting, particularly for middle-class renters and young professionals seeking budget-friendly accommodation. If the rental surge continues, urban housing affordability could become a major policy challenge.

    Urban Housing Demand and Supply Constraints

    The surge in rental prices is also attributed to the growing concentration of economic opportunities in urban centres. Cities such as Bengaluru, Pune, and Hyderabad, known for their IT and corporate hubs, have seen a sharp increase in rental demand as professionals seek housing near workplaces. However, the lack of adequate rental housing supply in prime locations is causing disproportionate price hikes. In Mumbai, for instance, the limited availability of rental apartments in key business districts has pushed rents in certain neighbourhoods up by over 20% compared to last year.

    This rental price inflation is reshaping urban housing patterns. Many tenants are relocating to peripheral areas where rental rates remain relatively affordable. This shift is increasing commute times, adding pressure to public transport networks, and amplifying urban congestion issues. Civic experts warn that unless cities expand rental housing supply, improve infrastructure, and encourage decentralised business hubs, the rental crisis will worsen housing inequalities and strain urban liveability.

    Impact on Real Estate and Investment Trends

    The soaring rental prices are also influencing real estate investment patterns. Higher rental yields are attracting investors into the buy-to-let market, especially in cities where capital appreciation remains strong. Developers are responding by launching premium rental projects, targeting professionals and expatriates looking for fully serviced, well-connected rental options. As a result, the concept of built-to-rent housing models is gaining traction, with institutional investors entering the rental housing market.

    However, affordability concerns persist. Tenants facing steep rental increases are reconsidering homeownership, pushing demand for mid-range housing projects. Experts predict that if rents continue to rise at this pace, a larger segment of renters may transition into homebuyers, shifting demand dynamics in the residential market. While this may provide a boost to property sales, it also raises concerns about the long-term sustainability of rental affordability in Indian cities.

    Sustainability and the Need for Policy Interventions

    The rising cost of urban housing presents sustainability challenges, particularly in terms of social equity and environmental impact. The forced displacement of lower-income tenants to city outskirts leads to longer commutes, increased carbon emissions, and a heavier reliance on private transport. Experts argue that the government must intervene with rental regulations, tax incentives for affordable rental projects, and policies to encourage decentralised urban development.

    A sustainable rental market requires a balance between rental yields and tenant affordability. Cities like Singapore and London have implemented rental control measures and incentives for affordable housing projects—models that Indian policymakers could consider. Expanding green housing initiatives, incentivising public transport-linked developments, and promoting energy-efficient rental properties could also help reduce environmental strain while ensuring fair housing access.

    As India’s urban population continues to grow, the rental market will remain a crucial segment of real estate. Ensuring that rental housing remains affordable, accessible, and sustainable will be key to long-term urban resilience and economic stability.

    Unlocking prosperity in real estate new era

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      Unlocking prosperity in real estate new era
      Unlocking prosperity in real estate new era

      Unlocking prosperity in real estate new era

      India’s real estate sector is entering a new phase of growth, driven by strong housing demand, rapid urbanisation, and infrastructural expansion. Over the past year, the market has seen record-breaking sales, rising property prices, and a shift towards premium developments. Cities such as Mumbai, Hyderabad, and Bengaluru have led the surge, with developers launching large-scale residential and commercial projects to meet increasing buyer interest. According to industry reports, 2024 saw a 20% rise in residential property transactions, reinforcing the sector’s resilience and investor confidence.

      However, this growth is not without challenges. The imbalance in urban planning, affordability concerns, and infrastructure bottlenecks continue to create hurdles. While prime real estate zones thrive, many peripheral areas lack the necessary civic amenities, leading to unequal development. Experts believe that for sustained prosperity, policymakers must prioritise balanced urban expansion, ensuring affordable housing availability and better connectivity across metropolitan regions.

      Urban Expansion and Civic Challenges

      As India’s real estate sector flourishes, it also exposes significant gaps in urban infrastructure. The overburdening of metro corridors, traffic congestion, and strain on public utilities are growing concerns. Cities such as Delhi and Bengaluru are witnessing increased residential development, but commuter woes and civic inefficiencies persist. In regions where real estate is booming, the demand for water, electricity, and public transport is rising rapidly, placing immense pressure on existing infrastructure.

      Moreover, the gap between luxury developments and affordable housing solutions continues to widen. While high-end projects in prime locations command record prices, middle-income buyers face limited options within city limits. Experts suggest that smart city initiatives and government-backed affordable housing projects must be accelerated to ensure inclusive urban growth. Unless these challenges are addressed, India’s real estate boom may deepen inequalities, rather than fostering long-term economic prosperity.

      The Commercial Real Estate Shift

      Beyond residential growth, India’s commercial real estate segment is undergoing a transformation. With Grade A office spaces in high demand, companies are expanding their corporate footprints in Bengaluru, Hyderabad, Pune, and Mumbai. IT hubs continue to drive demand, but sectors such as healthcare, fintech, and logistics are also emerging as key contributors to commercial space absorption. In 2024, India witnessed a 15% increase in leasing activity, with multinational corporations securing long-term commercial spaces in major cities.

      However, commercial developers are facing new challenges in adapting to hybrid work models. Many companies are shifting to flexible office setups and co-working spaces, reducing the demand for traditional office buildings. This shift is prompting developers to rethink commercial real estate strategies, integrating multi-purpose commercial hubs, green office buildings, and technology-driven workspaces to meet evolving demands.

      Sustainability at the Core of Future Growth

      With the real estate sector expanding at an unprecedented rate, sustainability has become a critical priority. The increasing environmental impact of large-scale urban development has raised concerns over carbon emissions, energy consumption, and water usage. Green building initiatives, solar energy adoption, and rainwater harvesting systems are now essential components of new real estate projects.

      The government’s push towards sustainable construction and energy-efficient buildings is encouraging developers to integrate eco-friendly solutions into their projects. Several developers are adopting LEED-certified building designs, reducing their carbon footprints while ensuring long-term cost savings for buyers. Additionally, EV infrastructure and smart city planning are gaining momentum, ensuring that future real estate developments contribute to a greener, more resilient urban landscape.

      As India’s real estate market continues its upward trajectory, the challenge lies in ensuring that growth remains sustainable, inclusive, and adaptable to future demands. Developers, policymakers, and urban planners must work together to bridge infrastructure gaps, address affordability issues, and create a balanced real estate ecosystem that benefits all.

      Bridging The Gap In Residential Water Conservation

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        BRIDGING THE GAP IN RESIDENTIAL WATER CONSERVATION

        “The primary challenge lies in raising awareness about water conservation in domestic households. While industries extensively discuss water conservation, residential water management remains fragmented and underemphasised. Unlike electricity, where usage is centrally monitored, water is managed separately across kitchens, bathrooms, and other areas, limiting a cohesive approach,” explains SHAILABH RATHORE, Director of Fluidmaster India, in an exclusive interview with ADITI THAKUR.

        What are the current trends in the water solutions industry that are shaping the market?

        The water solutions industry in India is witnessing significant advancements, driven by pressing issues like water scarcity, rapid urbanisation, and industrial growth. There is a growing demand for advanced, intelligent water solutions with Internet of Things (IoT) integration, enabling users to monitor and manage water consumption efficiently.
        A key focus area is desalination and water reuse, with technologies like desalination plants and wastewater recycling gaining traction to ensure water availability for agriculture and industrial purposes. Energy-efficient and modular systems are becoming increasingly popular, particularly in urban areas, for their flexibility and sustainability benefits. Emerging niche applications, such as zero-liquid discharge systems, solar-powered water purification, and eco-friendly treatment processes, are also gaining momentum. These solutions cater to high-demand sectors and offer sustainable alternatives for water management.

        How have consumer preferences shifted in aesthetics and functionality over time?

        Consumer preferences have undergone a remarkable transformation. With increased technological awareness, people are comfortable adopting solutions that monitor and control water usage, reflecting a heightened consciousness about water conservation. Consumers are seeking products that seamlessly blend aesthetics with functionality. Minimalistic and clean designs are in high demand, offering practicality and visual appeal. Sustainability has also become a priority, with eco-friendly, energy-efficient, and water-saving solutions gaining popularity. Personalisation is another trend; consumers want products that reflect their unique tastes and lifestyles. Moreover, features such as durability and intelligent water-monitoring technology are now considered essential, along with enhanced comfort and ease of use. This shift underscores a preference for products that combine utility, design, and eco-consciousness to cater to modern lifestyles.

        How is technology influencing the design and functionality of modern water solutions?

        Technology is revolutionising the water solutions industry, making systems more efficient, sustainable, and user-friendly. Smart sensors, advanced purification methods, and IoT-enabled systems address global challenges like water scarcity, contamination, and climate change.
        At Fluidmaster, our manufacturing facilities are fully tech-enabled, incorporating AI-powered automation to optimise processes, reduce waste, and enhance productivity. By leveraging technology, we improve operational efficiency and contribute meaningfully to sustainability goals. Technological advancements are steering the industry toward creating more adaptive and environmentally friendly water solutions that align with the evolving needs of consumers and businesses.

        What are challenges the you biggest have encountered in creating water-resilient products?

        The primary challenge lies in raising awareness about water conservation in domestic households. While industries discuss water conservation extensively, residential water management must be more cohesive and emphasised. Unlike electricity, where usage is centrally monitored, water is typically managed across areas like kitchens and bathrooms, limiting a holistic approach.
        Another challenge is designing sustainable products that balance cost and functionality. Developing eco-friendly products involves extensive research, testing, and development, increasing costs. While Fluidmaster absorbs some margin losses to promote sustainability, many customers remain price-sensitive, often prioritising cost over long-term benefits. This makes it challenging to push eco-friendly solutions in a cost-driven market.

        What new design elements are being incorporated to enhance the overall bathroom experience?

        Bathrooms are evolving into multifunctional spaces that merge luxury, functionality, and sustainability. Smart technologies, like touchless faucets and showers, make bathrooms more efficient and user-friendly. Wellness features, such as steam showers, aromatherapy, and heated floors, transform bathrooms into spa-like sanctuaries.
        Innovative storage solutions and enhanced lighting designs are also gaining prominence, ensuring that spaces are both practical and aesthetically pleasing. Universal design principles, catering to people of all ages and abilities, are becoming standard. Materials like marble, brass, and quartz add sophistication, while multifunctional layouts integrate spaces for vanity, laundry, or even small work areas. These trends underscore a move toward bathrooms that offer personalisation, comfort, and sustainability.

         

        Northwest Hyderabad leads real estate boom with ₹71,926 crore sales

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        Northwest Hyderabad leads real estate boom with ₹71,926 crore sales
        Northwest Hyderabad leads real estate boom with ₹71,926 crore sales

        Northwest Hyderabad leads real estate boom with ₹71,926 crore sales

        Hyderabad’s real estate market witnessed a phenomenal surge in 2024, with 65,177 residential units sold, amounting to ₹1.13 lakh crore in total sales. A recent report by CREDAI Hyderabad, in collaboration with CRE Matrix, underscores the dominance of Northwest Hyderabad, which alone accounted for 70% of total unit sales, translating to 45,405 units worth ₹71,926 crore. This region, encompassing Madhapur, Miyapur, Manikonda, Serilingampally, Tellapur, Narsingi, Patancheru, and Gandi Maisamma, has emerged as the city’s strongest real estate hotspot, fuelled by its proximity to IT corridors and rapid infrastructural advancements.

        Meanwhile, Southwest Hyderabad, which includes areas near Rajiv Gandhi International Airport, Katedan, Attapur, and Balapur, recorded 9,109 unit sales valued at ₹29,342 crore. In contrast, Northeast Hyderabad (6,279 units, ₹7,147 crore) and Southeast Hyderabad (4,384 units, ₹5,522 crore) saw comparatively lower sales volumes, highlighting an imbalanced urban growth pattern. Experts argue that the city’s heavy reliance on its western corridors has contributed to traffic congestion, infrastructure overload, and rising property prices, urging policymakers to diversify development focus towards underutilised regions.

        Urban Development and Growing Civic Concerns

        While Northwest Hyderabad continues to drive the city’s real estate momentum, concerns around civic infrastructure and urban planning are intensifying. With a majority of Hyderabad’s population living and working in the western region, the strain on roads, utilities, and public services is becoming increasingly evident. Experts warn that excessive focus on the west has created development lopsidedness, neglecting the potential of the eastern corridors. Traffic congestion, water supply management, and waste disposal inefficiencies are growing civic issues, prompting calls for a balanced urban expansion strategy.

        Industry leaders believe that if the government prioritises infrastructural projects in Northeast and Southeast Hyderabad, developers will naturally expand into these areas, creating more evenly distributed real estate growth. Affordable housing projects and commercial hubs in the east could reduce excessive dependency on the western IT belt, easing pressure on key transport arteries like Outer Ring Road and NH-65.

        Commercial Real Estate Sees Strong Demand

        Beyond the residential boom, Hyderabad’s commercial real estate sector is witnessing robust expansion. The demand for office spaces reached 13 million sq ft, exceeding the available supply of 12.4 million sq ft. Among notable transactions, Google leased 5.5 lakh sq ft at Elegans Emperia, while Metlife Services, HCA Global, and Cigna secured large office spaces across the city. The Phoenix Group emerged as the dominant developer, holding a staggering 70% market share, followed by Pranava Group (17%) and Modi Realty (13%).

        The IT and IT-enabled services (ITES) sector continues to drive demand, accounting for 49% of the total office space uptake, followed by healthcare (18%), BFSI (10%), and the automobile sector (8%). According to experts, Hyderabad’s Grade A office stock has now reached 151.1 million sq ft, with an additional 82.9 million sq ft under construction, reinforcing the city’s reputation as a corporate hub.

        Sustainability and Future Urban Planning

        With Hyderabad’s property market reaching new heights, sustainability remains a crucial consideration for long-term viability. Rapid urban expansion has heightened concerns over environmental degradation, water resource depletion, and inefficient energy consumption. To ensure sustainable growth, developers must incorporate green building designs, rainwater harvesting systems, and solar energy solutions in upcoming projects.

        Additionally, the increasing adoption of electric vehicles (EVs) necessitates widespread charging infrastructure, particularly in newly developed residential and commercial spaces. Hyderabad’s urban planners must also integrate sustainable transport solutions, such as metro rail extensions and pedestrian-friendly city layouts, to mitigate congestion and reduce carbon emissions. Experts emphasise that while the city’s western corridors have thrived, a holistic development approach focusing on equitable urban growth and environmental responsibility is essential for Hyderabad’s continued success.

        The ₹71,926 crore surge in Northwest Hyderabad signifies strong investor confidence, but unless policymakers prioritise balanced development, Hyderabad’s urban landscape may struggle with uneven growth, infrastructure deficits, and sustainability challenges in the coming years.

        Godrej Properties Expands Portfolio with ₹23,450 Crore Housing Projects

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          Godrej Properties Expands Portfolio with ₹23,450 Crore Housing Projects
          Godrej Properties Expands Portfolio with ₹23,450 Crore Housing Projects

          Godrej Properties Expands Portfolio with ₹23,450 Crore Housing Projects

          Godrej Properties, one of India’s leading real estate developers, has made a significant move to expand its portfolio, acquiring 12 land parcels between April and December 2024. These acquisitions are set to fuel housing projects with a total value of ₹23,450 crore, as the company continues to ride on the back of strong consumer demand in the real estate sector. In a recent interview with PTI, Pirojsha Godrej, the Executive Chairperson of Godrej Properties, revealed that business development was especially robust during the December quarter. The company exceeded its full-year guidance by signing new projects worth ₹11,000 crore in just the third quarter, surpassing its original forecast of ₹20,000 crore for the entire fiscal year.

          The 12 land parcels acquired by Godrej Properties cover a total saleable area of 169 lakh square feet. This expansion will contribute to a booking value potential of ₹23,450 crore in the first three quarters of the fiscal year alone. Pirojsha Godrej stated that the company remains optimistic about its future growth and expects to meet its business development target of ₹30,000 crore by the end of the fiscal year. “The strong market momentum is reflected in our achievements, and we’ve already surpassed our business development guidance for the year,” said Pirojsha, emphasising the company’s confidence in its expanding real estate presence.

          Alongside its land acquisitions, Godrej Properties has been actively raising funds to support its growth. In December 2024, the company successfully raised ₹6,000 crore through a Qualified Institutional Placement, which enhanced its balance sheet and provided financial flexibility for its ongoing expansion. The company has also experienced a significant rise in its sales performance. Godrej Properties reported pre-sales of ₹19,281 crore in the first nine months of the current fiscal year, a notable increase from ₹13,008 crore in the same period the previous year. With this performance, the company is on track to meet its full-year sales bookings guidance of ₹27,000 crore. On the financial front, the company’s net profit saw an impressive jump, increasing to ₹1,017.90 crore for the April-December 2024-25 period, compared to ₹254.01 crore in the same period last year. Total income also surged to ₹4,285.99 crore, up from ₹2,419.40 crore in the previous year.

          Godrej Properties is expanding its reach in key urban markets such as the Mumbai Metropolitan Region, Pune, Delhi-NCR, Bengaluru, and Hyderabad. Additionally, the company is eyeing growth in tier-II cities, where it plans to focus on plotted developments. This expansion into new markets reflects the company’s commitment to diversifying its portfolio and capitalising on emerging real estate opportunities across India. With a clear focus on meeting rising demand for residential properties and a firm commitment to further business development, Godrej Properties remains well-positioned to maintain its leadership in the Indian real estate sector. The company’s combination of strategic land acquisitions, impressive sales growth, and financial resilience reinforces its status as one of the country’s most dynamic property developers. As the Indian real estate market continues to show strong momentum, Godrej Properties is not only expanding its presence but also solidifying its future in an industry that is poised for continued growth.

          UC Punawale Skyscrapers buys prime Pune land for ₹129 crore

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          UC Punawale Skyscrapers buys prime Pune land for ₹129 crore
          UC Punawale Skyscrapers buys prime Pune land for ₹129 crore

          UC Punawale Skyscrapers buys prime Pune land for ₹129 crore

          Pune’s real estate market continues to witness strategic investments as UC Punawale Skyscrapers LLP acquired a 28,465 sq m land parcel in Punawale, Pimpri-Chinchwad for ₹129 crore. The deal, registered on 4 February 2025, saw the Radkar family as the seller, with stamp duty amounting to ₹9.03 crore and a registration fee of ₹30,000. The transaction underscores growing developer interest in the Pimpri-Chinchwad belt, which has become a hotspot for residential projects due to its connectivity and affordability. Market experts note that despite Pune’s expanding real estate footprint, localities such as Punawale, Ravet, and Tathawade remain in high demand, attracting both homebuyers and developers.

          Over the past year, Punawale has witnessed 5,169 transactions worth ₹2,827 crore, reflecting a steady demand for residential developments. Currently, the average residential property price in Punawale stands at ₹9,666 per sq ft, making it an attractive alternative to central Pune’s skyrocketing real estate prices. UC Punawale Skyscrapers LLP, a recently established entity, is expected to contribute to the area’s urban transformation, aligning with the city’s demand for well-planned, sustainable housing. Industry observers suggest that land acquisitions like this reinforce confidence in Pune’s real estate market, particularly in emerging micro-markets that offer both infrastructural advantages and competitive pricing.

          Urban Growth and Civic Infrastructure Challenges

          Pimpri-Chinchwad has solidified its position as one of Pune’s fastest-growing residential hubs, accounting for 40-45% of Pune’s quarterly residential transactions. The region’s proximity to Hinjewadi IT Park and seamless connectivity via NH-48 makes it a preferred location for professionals. However, the rapid pace of urbanisation also brings challenges, particularly in terms of infrastructure bottlenecks, traffic congestion, and civic amenities. Experts highlight the need for enhanced road networks, drainage systems, and public transport connectivity to accommodate the area’s burgeoning population. The local government must also accelerate approvals for new projects to ensure the seamless integration of upcoming developments into the city’s urban fabric.

          Sustainability and Long-Term Urban Planning

          As Pune continues to expand, sustainable urban development remains a critical factor in ensuring long-term liveability. Developers investing in regions such as Punawale must prioritise eco-friendly infrastructure, energy-efficient buildings, and green spaces. Given the increasing stress on water resources and waste management, city planners must implement smart urban policies that promote rainwater harvesting, waste segregation, and energy-efficient construction techniques. Additionally, as electric vehicles (EVs) gain popularity, newer projects should incorporate EV charging stations and smart mobility solutions to align with Pune’s evolving sustainability goals.

          The ₹129 crore acquisition by UC Punawale Skyscrapers LLP signals a strong investment outlook in Pune’s real estate sector, reinforcing the city’s position as one of India’s most dynamic property markets. With continued infrastructural improvements, regulatory support, and sustainable urban planning, the Pimpri-Chinchwad region is set to remain a prime residential and investment destination in the years ahead.

          Q3 Realty Performance Reflects Mixed Trends Amid Sales Moderation

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            Q3 Realty Performance Reflects Mixed Trends Amid Sales Moderation
            Q3 Realty Performance Reflects Mixed Trends Amid Sales Moderation

            Q3 Realty Performance Reflects Mixed Trends Amid Sales Moderation

            India’s real estate sector witnessed a mixed performance in Q3 FY25, with leading developers reporting varied results in home sales and pre-sales bookings across major cities. Data suggests a 11% drop in overall sales and a 26% decline in new launches year-on-year (Y-o-Y), indicating a slowdown in demand, particularly in cities like Bengaluru, Hyderabad, and the National Capital Region (NCR). While developers such as DLF, Macrotech Developers, and Oberoi Realty recorded significant growth, others like Prestige Estates, Godrej Properties, and Sobha reported a decline, primarily due to regulatory delays and approval bottlenecks. Mumbai remained stable, whereas markets such as Bengaluru faced approval hurdles, affecting new launches and overall project execution.

            Market Disparities: Growth vs. Decline

            The quarter saw DLF and Macrotech Developers posting strong Y-o-Y growth of 33.7% and 32.3%, respectively, driven by high-value projects in Mumbai and Gurgaon. DLF’s luxury development, The Dahlias in Gurgaon, was a standout success, selling 173 units worth ₹11,820 crore in just nine weeks. Macrotech’s performance was largely propelled by South & Central Mumbai, which accounted for nearly half of its pre-sales mix. However, Prestige Estates reported a 43.42% drop in pre-sales, citing regulatory delays in Bengaluru, including challenges related to e-Khata approvals. Similarly, Godrej Properties saw a 4.8% decline, attributing the dip to the postponement of two key projects. Meanwhile, Brigade Enterprises defied the slowdown, reporting a 63.5% increase in bookings, thanks to its latest launch in Hyderabad. Oberoi Realty emerged as the biggest winner of the quarter, with pre-sales soaring by 143.8%, following an overwhelming response to its Thane luxury project.

            Sustainability and Civic Challenges in Real Estate

            Despite the uneven quarterly performance, the sector faces larger concerns related to sustainable urban development. The slowdown in approvals reflects growing regulatory challenges, particularly in cities like Bengaluru and Chennai, where environmental compliance and land acquisition hurdles have slowed down project timelines. Additionally, rapid urbanisation has intensified the strain on infrastructure, with many cities struggling to balance housing demand with environmental conservation. Experts argue that sustainable growth in real estate requires a strategic approach, incorporating green building practices, efficient land use policies, and regulatory streamlining to reduce bureaucratic roadblocks. The ongoing delays in approvals, especially for large-scale residential developments, highlight the need for a more cohesive urban planning framework that prioritises both growth and environmental responsibility.

            Future Outlook: Can Developers Regain Momentum?

            With a strong launch pipeline expected in Q4 FY25, major realtors remain optimistic about meeting or surpassing their annual sales targets. DLF has already exceeded its guidance, while Lodha and Godrej Properties remain confident about recovering lost ground. Prestige Estates has announced a ₹30,000 crore launch plan for Q4, contingent on regulatory clearances in Mumbai, Hyderabad, and Chennai. Industry analysts believe that election-related market uncertainty and the impact of monsoons in the preceding quarters also contributed to the Q3 slowdown. However, with improving economic conditions and strong housing demand in premium and mid-income segments, developers are expected to rebound in the coming months. While luxury projects continue to perform well, the real estate industry must focus on affordability, regulatory compliance, and sustainability to ensure long-term resilience in an evolving market.

            ADVOCATING FAIR PLAY IN SECONDARY STEEL SECTOR

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              ADVOCATING FAIR PLAY IN SECONDARY STEEL SECTOR

              “The major hurdle for the secondary steel sector lies in the government approval process, which often lists specific brand names instead of focusing on product specifications. This practice can be limiting, as it excludes other eligible suppliers who meet the required standards,” notes YASH ANIL GOYAL, Executive Director, Kalika Steel Alloys Pvt. Ltd. during
              an exclusive interaction with MEENAKSHI SINGH

              Can you tell us about Kalika’s legacy in the once fragmented and now consolidated Indian steel industry?

              Kalika Steel has a rich legacy spanning 21 years. We began manufacturing ingots, progressed to rolling mills, and operate a fully integrated plant today. This remarkable plant stands out as the first Siemens unit in the secondary steel sector across India. Such advanced technology is typically found only in the primary sector with industry giants like JSW and Tata Steel. Our rolling mill, furnaces, and other operations are Siemens-based, operating under the Primetals banner, one of the world’s leading manufacturers and suppliers of steel products. Over two decades, we have made significant strides, establishing ourselves as a trusted supplier across Maharashtra, Gujarat, Madhya Pradesh, Rajasthan, and Goa. Our relentless focus on quality and innovation has helped us build a reputation as a market leader.

              What key challenges do secondary steel manufacturers like yours face in a market dominated by the Big 3?

              The most significant challenge is maintaining the focus on quality amidst price-driven competition. Many buyers prioritise cost over the value of quality, and educating the market on the importance of quality is an ongoing Yash Anil Goyal effort for us. Another major hurdle lies in the government approval process, which often lists specific brand names instead of focusing on product specifications. This practice can be limiting, as it excludes other eligible suppliers who meet the required standards. If approvals were based on specifications rather than brand names, it would foster a level playing field, benefiting suppliers and consumers.

              How challenging is it to keep pace with innovations, and how are you integrating technology to achieve efficiency in steel manufacturing?

              Innovation lies at the heart of our operations. In 2014, we adopted Siemens technology to ensure we stayed ahead of the curve. Innovation is essential to remain competitive; with it, costs stay high, and efficiency increases. One of our key milestones has been the implementation of slit-rolling technology. Initially, we produced 8mm steel in three passes. After two years of technological advancements, we improved this process to five passes and have now achieved six passes. This progression has significantly boosted production within the same unit, exemplifying our commitment to continuous improvement and ensuring we remain at the forefront of the steel industry.

              How are you accommodating the necessity of sustainability and carbon neutrality in steel making?

              Sustainability is a crucial focus for us at Kalika Steel. Our unit in Jalna, Maharashtra, primarily uses industrial scrap, 80 percent scrap and 20 percent sponge iron, minimizing reliance on natural resources. Our emission levels are 50 percent lower than primary steel production, aligning with our sustainability commitment. We proudly identify as a “Green Steel” company, environmentally producing certified products. Moreover, we actively monitor and reduce our CO2 emissions every year. Although our electricity supply from MSEB isn’t green yet, we are actively exploring renewable energy options to further our sustainability goals. Our ultimate aim is to achieve net zero emissions in a few years.

              “Sustainability remains a cornerstone of our operations. We’ve significantly reduced carbon emissions by implementing energy-efficient solutions and environmentally friendly practices, aligning with global sustainability goals.”

               

              What new technologies are being integrated into steel manufacturing, and how do they enhance product quality and user experience?

              Kalika Steel’s integration of cutting-edge technologies, such as Primetals Technology (Siemens-VAI), has transformed our operations, improving product quality and customer satisfaction. One of the critical advancements has been adopting advanced automation systems, enabling precise control over the steel composition. This ensures the steel is more robust, consistent, and error-free during production. Automation also reduces downtime, allowing us to deliver high-quality products faster. Another significant advancement is our use of digital technologies and advanced metallurgy, which provide flexibility to customise products for specific customer requirements. Whether creating specialised alloys or tailoring steel properties for unique applications, we can seamlessly adapt to diverse needs.

              Additionally, sustainability remains a cornerstone of our operations. We’ve significantly reduced carbon emissions by implementing energy-efficient solutions and environmentally friendly practices, aligning with global sustainability goals. From a user perspective, these innovations improve operational efficiency, ensure consistent product quality, and result in faster turnaround times. For our customers, this means dependable solutions catering to their needs.

              How are you enhancing the durability of steel for the real estate and construction sector?

              We are proud to incorporate advanced technologies such as the Integrated Steel Melting Shop (SMS), Primetals Technology, and the Pomini Quenching System (PQS) to enhance our steel products’ durability and ease of maintenance. The SMS ensures consistency by streamlining the melting, refining, and casting processes. This reduces internal defects and inclusions, resulting in more reliable products that require less maintenance over their lifespan. For example, billets produced in this facility are less prone to structural issues, making them ideal for applications where longevity is critical.

              Primetals Technology further enhances steel quality by offering precise control over its composition. This improves mechanical properties such as corrosion and fatigue resistance, enabling our steel to endure harsh conditions and demanding applications. For instance, infrastructure built with this steel experiences less wear and tear, ensuring long-term durability.

              The Pomini Quenching System provides advanced heat treatment, significantly increasing the steel’s hardness, tensile strength, and wear resistance. This makes our products ideal for heavy-duty applications like construction, where materials must withstand high stress and pressure. Steel treated with PQS is especially suited for creating high-strength bars that resist fatigue and endure rigorous environments. Through these innovative treatments and technologies, we deliver steel products that are robust, long-lasting, and maintenance cost-effective, offering our customers superior durability and reliability for their diverse applications.

              Odisha CM Presents ₹2.90 Lakh Crore Budget with Focus on Agriculture and Infrastructure

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                Odisha CM Presents ₹2.90 Lakh Crore Budget with Focus on Agriculture and Infrastructure
                Odisha CM Presents ₹2.90 Lakh Crore Budget with Focus on Agriculture and Infrastructure

                Odisha CM Presents ₹2.90 Lakh Crore Budget with Focus on Agriculture and Infrastructure

                Odisha’s economic landscape, Chief Minister Mohan Charan Majhi presented a ₹2.90 lakh crore budget for the financial year 2025-26, with a strategic focus on agriculture, infrastructure, and industrial development. This budget marks a significant increase from the ₹2.65 lakh crore budget of the previous fiscal year, underscoring the state’s growing ambitions for a prosperous future.

                The budget aligns with Odisha’s broader vision of becoming a $1.5 trillion economy by 2047 and contributing significantly to India’s growth as a “Viksit Bharat” (developed India). Majhi, who also holds the finance portfolio, emphasised that the state’s immediate goal is to achieve a $500 billion economy by 2036, with a focus on inclusive growth, job creation, and providing equitable opportunities for all citizens. “This budget lays the foundation for Samruddha Odisha 2036—a vision of a prosperous, empowered state,” Majhi stated. The term “Samruddhi” extends beyond mere economic growth to include social and infrastructural development that benefits every section of society. As the Chief Minister put it, the focus is on creating a thriving economy that supports sustainable and inclusive progress. A major highlight of the 2025-26 budget is the increase in funding for agriculture, with ₹37,838 crore allocated to the sector—an increase of 12% from the previous fiscal year. The Samrudha Krushak Yojana, a flagship initiative for farmers, has seen its budget rise from ₹5,000 crore to ₹6,000 crore. This is a strong indication of the state’s commitment to enhancing agricultural productivity and ensuring the well-being of farmers.

                The Water Resources Department also saw an increased allocation of ₹14,895 crore, reflecting the importance of irrigation and water management for agricultural growth. With Odisha’s agrarian economy at the heart of its development, these investments are vital for ensuring long-term sustainability. In a major boost to infrastructure, CM Majhi announced the creation of the ‘Highways Authority of Odisha,’ inspired by the National Highways Authority of India (NHAI). This new body is designed to fast-track the development of highways and expressways, with an ambitious target of constructing 75,000 km of world-class roads by 2029-30 under a new progressive road policy. To further accelerate infrastructure growth, the state government has earmarked ₹65,012 crore for capital expenditure, a significant 6.1% of the state’s Gross State Domestic Product (GSDP). This is one of the highest capital outlays among major Indian states, positioning Odisha for rapid development in the coming years.

                Additionally, the budget includes several initiatives to support housing and education. ₹820 crore has been allocated to the PM Surya Ghar Yojana to promote solar energy solutions, and ₹2,603 crore is earmarked for the Antyodaya Housing Scheme, aimed at providing affordable housing to the poorest segments of society. The government has also allocated ₹193 crore for the Gangadhar Meher Education Standard Enhancement Scheme, which includes provisions for providing free bicycles to Class 9 students to help reduce dropout rates. With a projected 3% revenue surplus relative to GSDP and a target to limit the fiscal deficit to 3.2%, Odisha’s budget is focused on sustainable growth and fiscal responsibility. The state government’s commitment to a development-focused agenda underlines its ambition to foster inclusive growth while positioning Odisha as a key economic player on the national stage. Through these budgetary measures, Odisha is not only taking substantial steps towards its long-term economic goals but is also ensuring that its growth benefits every section of society, making the state a model for holistic and inclusive development in India.

                Tripura Focuses on Kamalpur-Santirbazar Road for National Highway Development

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                  Tripura Focuses on Kamalpur-Santirbazar Road for National Highway Development
                  Tripura Focuses on Kamalpur-Santirbazar Road for National Highway Development

                  Tripura Focuses on Kamalpur-Santirbazar Road for National Highway Development

                  The Tripura government is putting significant emphasis on the development of the Kamalpur-Santirbazar road to achieve national highway status. This project is expected to be a major catalyst for the socio-economic development of the region, particularly benefiting the tribal communities in the districts of Dhalai, Gomati, and South Tripura. The state currently boasts six national highways, covering a total of 923.31 km, and the central government has approved the in-principle development of four additional highways in Tripura. However, the Kamalpur-Santirbazar stretch has been prioritised as a key project to enhance regional connectivity.

                  P. Jamatia, Chief Engineer of National Highways in Tripura, highlighted the strategic importance of this 148 km road. Once completed, it will reduce the journey between Ambassa in Dhalai district and Sabroom in South Tripura from 300 km to 200 km, drastically cutting down travel time and enhancing accessibility between the two regions. This development is also expected to boost tourism, as the road will pass through several key tourist destinations such as Dumbur, Narikel Kunja, and Chhabimura. The latter, known for its ancient rock carvings along the Gomati River, attracts history enthusiasts, while Dumbur is celebrated for its picturesque waterbody. These destinations, once connected by a well-developed road, will see an influx of tourists, benefiting the local economy.

                  The Sabroom area, located near the Bangladesh border, has already been positioned as a critical gateway to Southeast Asia. This is evident through the construction of Maitri Setu, an integrated check post, and the development of a Special Economic Zone (SEZ) in the region. The proximity to Bangladesh’s Chittagong port, located just 70 km away, further increases the strategic importance of this area for trade and commerce. Jamatia shared that the project for developing the Kamalpur-Santirbazar road has been estimated at ₹2,000 crore. The next step in the process is the completion of the Detailed Project Report (DPR), which is expected to be ready within six months once the Centre grants approval. The project will not only improve connectivity but is also seen as an essential step toward the region’s economic progress and development. The tripartite focus on improving infrastructure, reducing travel times, and enhancing tourism prospects marks the Kamalpur-Santirbazar road development as an important part of Tripura’s growth strategy. As the state continues to push for a broader national highway network, this project stands out as one that will bring tangible benefits to the people of Tripura, connecting them more closely with the rest of India and beyond.