Hyderabad’s Real Estate Set for Exponential Growth

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September 24, 2024

Hyderabad’s Real Estate Set for Exponential Growth

Hyderabad’s real estate market is positioned for significant expansion, with the city set to add between 35 to 38 million square feet of top-tier business parks over the next two years. This growth offers promising opportunities for homebuyers, investors, and entrepreneurs alike, as various segments of the real estate sector in Hyderabad continue to expand rapidly. The city’s business-friendly environment has been a major draw for global corporations, with several establishing outsourcing centres, R&D facilities, and regional offices, resulting in an unprecedented demand for premium office spaces.

According to a report by CBRE, Hyderabad’s office stock crossed the 100 million square foot mark in 2022, with projections indicating it will touch 119 million square feet by the close of September 2023. This marks an impressive 63% growth in just four years. The city is now among the top three markets for office space leasing in India, with a notable 35% year-on-year growth, driven by high-demand sectors like life sciences, BFSI, and technology. This surge in corporate activity is fueling Hyderabad’s transformation into a business hub, with substantial investments flowing into office infrastructure.

In addition to commercial real estate, Hyderabad’s residential sector is witnessing rapid development. Over 130,000 new residential units are expected to be launched in the next two to three years, primarily in key micro-markets such as the IT Corridor and the Extended IT Corridor. This growth is driven by the influx of professionals employed by multinational companies and the city’s improving infrastructure. Popular residential areas such as Gachibowli, Kondapur, Kokapet, and Narsingi are seeing high demand, thanks to their proximity to IT hubs, good connectivity through the Outer Ring Road, and essential amenities like schools and healthcare facilities.

Mumbai’s Luxury Housing Market Booms

Residential

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September 24, 2024

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The luxury housing market in India is experiencing a robust resurgence, with seven major cities reporting a remarkable 10% year-on-year growth in sales during the first quarter of 2024, according to a recent report by CBRE South Asia. Mumbai, in particular, has emerged as the frontrunner in this upscale real estate boom, showcasing a significant uptick in high-value transactions.

In the past year, Mumbai’s luxury property prices have surged by an impressive 11.5%, securing the city a commendable third position globally in Knight Frank’s Prime Global Cities Index, trailing only Manila and Tokyo. This ranking, based on annual property price changes, highlights Mumbai’s escalating prominence on the international luxury real estate scene. The thriving demand for high-end residences in Mumbai is primarily fuelled by a surge of substantial deals involving high-net-worth individuals (HNIs) and investors. An official from CBRE noted, “Mumbai’s luxury real estate market is currently witnessing an influx of interest from HNIs and investors eager to secure prime properties, reflecting a growing appetite for ultra-luxury living.” This trend is particularly evident in notable developments such as Palais Royale, which have attracted considerable attention. The report emphasizes that the demand for upscale residential properties has been driven by several factors: increasing disposable incomes, shifting lifestyle preferences, and the pursuit of larger living spaces in the wake of the pandemic.

While Mumbai leads this trend, other metropolitan areas, including Delhi-NCR, Bengaluru, Hyderabad, Chennai, Pune, and Kolkata, are also witnessing a similar trajectory. The dynamism of the luxury housing market is underscored by a marked preference for ultra-luxury living. As affluent buyers gravitate towards high-end properties, projects like Palais Royale have seen an upsurge in interest. This phenomenon reflects broader national patterns where luxury housing sales have increased due to improved financial capabilities and a shift toward expansive living in a post-pandemic world. Mumbai’s allure as a prime destination for high-end property investments is reinforced by ongoing strategic developments and a steady influx of new luxury projects. The city’s exceptional growth in the luxury real estate sector underscores its significant role in shaping the future landscape of high-end housing in India. With sustained demand for premium properties, Mumbai is poised to maintain its status as a pivotal hub for luxury real estate, capturing the attention of both domestic and international investors alike.

Signature Global Expands Footprint in Delhi-NCR

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September 24, 2024

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Signature Global Expands Footprint in Delhi-NCR

Signature Global, a prominent real estate developer, has announced a significant investment of Rs. 25 billion in residential projects for the fiscal year 2024-25. This substantial investment underscores the company’s commitment to bolstering its housing portfolio and meeting the escalating demand for affordable housing options in the Delhi-NCR region.

Chairman and Managing Director Pradeep Aggarwal emphasized the strategic allocation of funds towards developing new residential properties, aligning with the company’s vision to provide modern and cost-effective housing solutions. Signature Global has already secured necessary land parcels and regulatory approvals, streamlining the execution process for its upcoming ventures. The company’s reputation for timely delivery and superior construction standards further strengthens its position within the competitive real estate sector.

The substantial investment reflects Signature Global’s confidence in the growth potential of the affordable housing segment, pivotal to promoting economic development and fulfilling urban housing needs. The firm’s aggressive expansion plans are poised to make significant contributions towards enhancing residential infrastructure and fostering sustainable urban growth.

Kriti Sanon Makes Waves with Alibaug Property

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September 24, 2024

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Kriti Sanon Makes Waves with Alibaug Property

Bollywood actress Kriti Sanon has made headlines with her recent acquisition of a premium 2,000 sq ft plot in the upscale coastal town of Alibaug, valued at over ₹2 crore. This strategic investment forms part of a prestigious development project by The House of Abhinandan Lodha (HoABL) and places her in the vicinity of renowned actor Amitabh Bachchan, who previously purchased a 10,000 sq ft plot in the same area for ₹10 crore.

Alibaug has rapidly evolved into a coveted destination for high-net-worth individuals (HNIs) seeking luxurious retreats and lucrative investment opportunities. Its proximity to Mumbai, coupled with enhanced infrastructure and breathtaking coastal vistas, has significantly driven demand for high-end properties. The recent inauguration of the Mumbai Trans Harbour Link (MTHL) has further bolstered connectivity, making Alibaug increasingly appealing to affluent buyers. The HoABL project offers a harmonious blend of natural beauty and modern conveniences. Development plans indicate the establishment of comprehensive sewerage and stormwater drainage systems, while plot owners will be responsible for constructing their individual properties in compliance with local regulations. Upon receiving the Occupation Certificate (OC), a society will be formed for the expansive 20-acre development, which will feature over 150 plots ranging from 2,000 to 5,000 sq ft. Amenities include two clubhouses and a natural water stream, enhancing the project’s overall allure and livability.

Earlier this year, Amitabh Bachchan’s land purchase has drawn attention, as his 10,000 sq ft plot is now valued at approximately ₹14.5 crore. This underscores the escalating property values and the increasing desirability of Alibaug as a luxury enclave. Sanon’s investment underscores a growing trend among celebrities and HNIs gravitating towards serene yet opulent retreats within an accessible distance from Mumbai. Alibaug, with its pristine beaches and tranquil environment, exemplifies the rising prominence of premium locales in the real estate market as both residential and investment hotspots.

Kriti Sanon’s foray into Alibaug’s elite neighbourhood not only augments her personal real estate portfolio but also highlights the surging demand for premium plots in this coastal town. With ongoing infrastructure improvements and a thriving market for luxury properties, Alibaug is well-positioned to sustain its status as a premier destination for high-end real estate investments.

Aldar and DP World Join Forces for Logistics Hub

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September 24, 2024

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Aldar and DP World Join Forces for Logistics Hub

Aldar Properties and DP World have entered into a strategic partnership to develop a cutting-edge logistics park at the National Industries Park (NIP) in Jebel Ali, Dubai. This 1.55 million square feet project, located near Jebel Ali Port and Al Maktoum International Airport, aims to meet the escalating demand for high-quality warehousing facilities in the region.

Designed to cater to third-party logistics (3PL), eCommerce, and retail sectors, the logistics park will offer flexible modular buildings that can accommodate single or multi-tenanted setups. The project’s prime location and connectivity to major road arteries make it an attractive option for businesses seeking efficient logistics solutions. NIP, encompassing 21 square kilometers, serves as Dubai’s industrial hub, offering a robust ecosystem conducive to manufacturing and processing industries. The integration of multimodal logistics solutions positions NIP as a cornerstone for industrial growth and international trade facilitation.

“The collaboration between Aldar and DP World marks a significant milestone in Dubai’s logistics infrastructure,” commented a spokesperson from Aldar Properties. “This development not only enhances our portfolio but also underscores our commitment to supporting Dubai’s strategic vision for economic diversification and infrastructure excellence.” The logistics park is slated to commence construction in Q4 2024 and is expected to commence operations by Q4 2025. With robust demand from sectors aiming to capitalize on Dubai’s strategic location and logistical advantages, the project is poised to attract significant interest from potential tenants.

This partnership between Aldar and DP World showcases the growing importance of logistics infrastructure in driving economic growth and facilitating trade in the region. The development of the advanced logistics park at NIP is a testament to Dubai’s commitment to providing world-class facilities and services to support its thriving business environment.

GCCs Redefining India’s Office Space Demand

Commercial

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September 24, 2024

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GCCs Redefining India’s Office Space Demand

The influence of Global Capability Centres (GCCs) on India’s commercial real estate landscape is undergoing a profound transformation, positioning these entities as a key driver of office space demand. According to data from Colliers, GCCs have significantly ramped up their leasing activities, occupying over 21.1 million square feet in 2023, a marked increase from 17 million square feet in 2020. This shift underscores the growing role of GCCs post-pandemic, marking their ascendance in a market traditionally dominated by IT services firms.

Currently, India is home to over 1,600 Global Capability Centres, which are playing an increasingly pivotal role in the country’s workforce and economy. In the current fiscal year, hiring by GCCs has outpaced the IT services sector, reflecting a strategic shift towards these centres as a crucial employment hub for white-collar professionals. As these companies continue to expand their Indian operations, the demand for high-quality office space has surged. By 2023, GCCs accounted for 37% of the total office space leased, and this share is projected to rise to 40% within the next two years.

In parallel, real estate firms Cushman & Wakefield and Knight Frank have corroborated these trends, reporting that GCCs were the only segment of the commercial real estate market to witness growth in 2023. Notably, other segments, including co-working spaces and third-party IT firms, saw a decline in activity. Over 80 new GCC establishments or expansions were recorded in the past year alone, underscoring the sector’s resilience and its role in shaping India’s commercial real estate landscape. Key occupiers driving the demand for office space include global giants like Deloitte, Qualcomm, MUFG Bank, Bank of America, Citibank, and Fidelity. The continued growth of these corporations reflects the strategic importance of India’s commercial real estate market for international businesses. Moreover, the increased focus on sustainability is evident in how many GCCs are adopting green office spaces, aligning with broader efforts towards environmental responsibility in urban development.

From a sustainability angle, the rising demand for office space presents both opportunities and challenges. With more corporations embracing green-certified buildings, the push for sustainable office infrastructure is growing. The integration of energy-efficient technologies and eco-friendly materials in commercial spaces not only contributes to environmental sustainability but also enhances long-term value for developers and investors. This trend aligns with India’s broader urban sustainability goals, fostering a real estate ecosystem that is both economically and environmentally viable. While the rise of GCCs offers a promising outlook for India’s commercial real estate market, civic issues such as infrastructural bottlenecks and urban congestion remain pressing challenges. The rapid growth of these centres has placed increased pressure on urban infrastructure, particularly in major cities like Bengaluru, Hyderabad, and Pune. Addressing these civic concerns will be critical in ensuring the sustainable expansion of India’s commercial real estate sector.

New FCA Rules Enhance Investment Opportunities

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September 24, 2024

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New FCA Rules Enhance Investment Opportunities

The Reserve Bank of India (RBI) has announced significant reforms to the Liberalised Remittance Scheme (LRS), specifically regarding the establishment of foreign currency accounts (FCA) at the International Financial Services Centres (IFSCs), with a particular focus on GIFT City. This regulatory overhaul is poised to unlock a multitude of opportunities for resident Indians, broadening the scope of permissible activities associated with these accounts.

Historically, foreign currency accounts in IFSCs were mainly utilised for investing in foreign securities and settling educational fees for overseas institutions. The newly announced regulations, however, represent a substantial shift, permitting resident Indians to engage in a diverse array of international financial transactions. Under the revised framework, individuals can now utilise FCAs at GIFT City for purposes such as sending gifts abroad, purchasing property overseas, acquiring insurance, making fixed deposits, servicing education loans, and financing international travel. A spokesperson from GIFT City emphasised the significance of this development, stating, “This pivotal move aligns GIFT IFSC with prominent global financial centres, allowing resident investors to fully leverage our platform for a broader range of overseas investments and expenditures. By clarifying the LRS usage for investments and facilitating transactions like insurance and education loan payments in foreign currency, the RBI has substantially enhanced the attractiveness and utility of GIFT IFSC.”

The enhanced LRS framework empowers resident individuals to tap into an expanded suite of financial services and products available at the IFSC. This not only supports IFSC banks and life insurance companies within GIFT City but also provides Indian residents with enriched international investment avenues. In its official communication, the RBI stated, “It has been decided that authorised persons may facilitate remittances for all permissible purposes under LRS to IFSCs for all current or capital account transactions in any other foreign jurisdiction (other than IFSCs) through an FCA held in IFSCs, availing financial services or financial products as per the International Financial Services Centres Authority Act, 2019 within IFSCs.” The range of activities permissible under LRS now encompasses a vast array, including acquiring immovable property abroad, overseas portfolio investments, private visits, gifts and donations, maintenance of relatives abroad, education, and medical treatment. This comprehensive expansion enables resident Indians to manage and diversify their international financial engagements more efficiently.

By facilitating these transactions through GIFT City, the RBI has markedly enhanced the capabilities and appeal of the IFSC. This strategic initiative not only bolsters India’s position in the global financial arena but also equips resident Indians with robust tools to effectively navigate their international financial affairs.

Luxury Living Comes to Sector 71

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Homes and buildings

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September 24, 2024

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Birla Estates Pvt. Ltd., the real estate arm of Century Textiles and Industries Limited, has made a strategic move to enhance its footprint in the NCR region by acquiring a significant 5-acre land parcel in Sector 71, Gurugram. This acquisition, with a development potential of approximately 10 lakh square feet, is poised to redefine the cityscape with high-end residential towers and luxurious amenities.

Strategically located on Southern Peripheral Road (SPR), the site offers prime connectivity to key areas such as Delhi, Dwarka Expressway, Sohna Road, and Golf Course Extension Road. The upcoming residential development is expected to generate revenues exceeding INR 1400 crore, featuring meticulously designed residences that aim to set new benchmarks in luxury living. The project will include state-of-the-art clubhouse facilities and landscaped areas, enhancing the overall lifestyle appeal for future residents.

Birla Estates’ expansion strategy in the Road, Sector 31 in Gurugram, and Mathura Road in Delhi. This latest acquisition underscores the company’s commitment to delivering excellence in real estate development while catering to the growing demand for premium housing options in Gurugram. “The addition of Sector 71, Gurugram to our portfolio marks a significant milestone in our growth journey,” stated a spokesperson from Birla Estates. “We are focused on creating not just homes but lifestyle experiences that reflect our commitment to quality and innovation.”

Commenting on this latest expansion, K. T. Jithendran, MD & CEO at Birla Estates said, “Gurugram has been a pivotal market for us from the outset. The real estate potential in this micro-market is immense and reinforces our strong focus in the Delhi-NCR region. With this acquisition, we aim to cater to homebuyers seeking exclusivity and distinctive living experiences. At Birla Estates, our commitment transcends luxury; our ethos is to embrace a vision of residences that embody a legacy of dedication and excellence.”

REITs in India Unlocking Real Estate Opportunities

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September 24, 2024

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REITs in India Unlocking Real Estate Opportunities

Real Estate Investment Trusts (REITs) have become a dynamic force in India’s real estate market, offering an attractive alternative for investors seeking access to the sector without the burden of direct ownership. Emerging as a key player in recent years, REITs enable investors to pool resources into a diversified portfolio of income-generating real estate assets, primarily in the commercial sector. As India’s real estate market continues its rapid expansion, REITs are well-positioned to democratise access to lucrative opportunities.

The growth of REITs in India has been remarkable, with asset values soaring from $3.6 billion to $15.6 billion over the past five years. Despite this impressive rise, REITs still only account for approximately 10% of the country’s Grade A office stock, highlighting the vast untapped potential within the market. With the commercial real estate sector projected to experience continued growth, REITs offer an opportunity for both seasoned and retail investors to capitalise on these trends.

When comparing REITs to traditional real estate ownership, several benefits come to light. Firstly, REITs eliminate the hassle of property management, enabling investors to benefit from professional asset management without the responsibilities tied to direct ownership. Additionally, REITs provide access to a diversified portfolio, mitigating concentration risk and allowing for steady returns through regular rental yields. Key performance metrics for REITs include Net Asset Value (NAV), Funds from Operations (FFO), and Weighted Average Lease Expiry (WALE), offering insights into a REIT’s asset value, operating performance, and revenue stability.

From a sustainability perspective, REITs can contribute to environmentally responsible development, particularly within commercial real estate. Many REITs are investing in green buildings and sustainable infrastructure, reducing their carbon footprint while enhancing long-term value. This aligns with India’s broader push towards sustainable urbanisation, ensuring that economic growth is matched by ecological responsibility. Despite their benefits, the REIT market in India is still evolving. Operational challenges, including tenant risk and regulatory issues, remain areas of concern for potential investors. However, with the proper due diligence and an understanding of the market, REITs offer an accessible and potentially rewarding entry point into India’s booming real estate sector. As the market matures, investors can look forward to stable rental yields and long-term capital appreciation.

Eight-Year Wait for Plots Sparks Protest in Noida

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September 24, 2024

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Eight-Year Wait for Plots Sparks Protest in Noida

Residents of Noida Sector 145 have staged a protest to demand the immediate handover of their residential plots, which they purchased nearly eight years ago. Despite completing registries, approximately 2,250 plot owners and an estimated 15,000 individuals remain in limbo, awaiting the fulfillment of promises made by the local authorities. Led by the Sector 145 RWA, the protest saw a diverse group of participants marching with banners and posters demanding clarity and action from the Noida Authority.

The residents expressed their frustration over the prolonged delays and lack of transparency, emphasizing that their dreams of owning homes have turned into a prolonged nightmare. The RWA underscored the urgent need for concrete timelines from the authorities regarding the handover of plots and the development of Sector 145. Despite assurances, the residents claim that no clear roadmap has been provided, exacerbating their frustrations. The protesters called upon the Noida Authority and district administration to step up and provide a definitive schedule for plot handovers and sector development.

They stressed that after enduring years of unmet promises and prolonged waiting, their patience has worn thin. The situation reflects a broader issue of accountability in urban planning and development, where delays can have significant repercussions on residents’ lives and investments. As the protest draws attention to these grievances, stakeholders are increasingly demanding transparency and swift action to resolve the longstanding issue in Sector 145, Noida.

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