South Mumbai’s Real Estate Revival Hinges on New Infrastructure

Commercial

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September 24, 2024

South Mumbai’s Real Estate Revival Hinges on New Infrastructure

South Mumbai, colloquially known as Sobo, once the crown jewel of India’s real estate market, has seen a gradual decline in prominence over the past decade. The limited availability of Grade-A office spaces, except in key areas like Nariman Point, has contributed to its diminished status. However, with major infrastructure projects like the Mumbai Coastal Road and Mumbai Metro-3 nearing completion, there’s renewed optimism about the region’s potential revival in the commercial real estate space.

The Mumbai Coastal Road, a 10.58 km stretch connecting Marine Drive to the Bandra-Worli Sea Link, and the soon-to-be-launched Metro-3 line between Seepz and Colaba, promise to significantly improve accessibility to South Mumbai. These infrastructure projects are expected to reduce travel times and enhance the area’s appeal, both for businesses and residents. Improved connectivity could serve as a catalyst for the real estate market, potentially drawing investment and interest back to the area.

However, industry experts remain cautiously optimistic. While these projects will undoubtedly enhance South Mumbai’s connectivity, it may not be enough to reinstate the region as a premier commercial destination on par with the Bandra-Kurla Complex (BKC). BKC continues to dominate as India’s most expensive and sought-after commercial district, with modern, state-of-the-art developments that have attracted businesses. South Mumbai, on the other hand, struggles with aging infrastructure and a lack of new, high-quality office spaces.

For South Mumbai to truly regain its former glory, significant investments in modernising existing buildings and developing new Grade-A office spaces will be critical. Furthermore, businesses that have already migrated to other parts of Mumbai for better amenities and lower operational costs may be hesitant to return unless these efforts are made. The recent trend of commercial relocation has been a challenge for Sobo, but the infrastructure boost could stem the tide and make existing spaces more viable.

From a sustainability perspective, the Coastal Road and Metro-3 projects present an opportunity to integrate greener practices in urban development. Reduced traffic congestion and increased public transport usage could lower the area’s carbon footprint, contributing to environmental goals. However, sustainable growth will require ongoing efforts to modernise infrastructure and incorporate energy-efficient designs in both new and existing buildings. Ultimately, while the infrastructure projects lay a strong foundation for a possible resurgence in South Mumbai’s real estate market, it will take a sustained push, focused investments, and a commitment to creating modern, sustainable spaces to truly revitalise the area. The road to reclaiming South Mumbai’s commercial prominence will be long, but the developments represent crucial steps towards a brighter future.

Bollywood Star Invests in Mumbai Prime Retail Space

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September 24, 2024

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Bollywood Star Invests in Mumbai Prime Retail Space

Bollywood actress Tamannaah Bhatia has made a significant splash in Mumbai’s real estate sector, recently acquiring prime retail space for ₹24 crore in a strategic move to bolster her investment portfolio. This latest transaction, confirmed by property registration records from real estate data aggregator Zapkey.com, marks her third property acquisition within the month of June alone.

The newly purchased retail space is located in the upscale Bharat Altavista tower in Andheri West and encompasses a total area of 2,197 square feet. The transaction comprises two units: one on the ground floor, covering 900 square feet, and a more spacious first-floor unit measuring 1,297 square feet. Additionally, the purchase includes two dedicated parking slots. The property was sold by Bharat Realty Ventures Pvt Ltd, while the buyer is listed as Tamannaah Gems and Jewellery Limited, a venture co-directed by Bhatia’s parents. Insiders reveal that this acquisition is primarily aimed at investment, with potential plans for leasing the space in the future. Registered on June 27, 2024, the transaction underscores Bhatia’s strategic intent to diversify her investment portfolio amidst Mumbai’s lucrative commercial real estate landscape.

On the same day, Bhatia made headlines with two additional acquisitions: a 6,065-square-foot commercial property in Juhu, which is expected to generate rental income of ₹18 lakh per month, and three residential units in Andheri West, mortgaged for ₹7.84 crore with Indian Bank. These moves highlight her proactive engagement in Mumbai’s vibrant real estate market, which has become a hotspot for numerous Bollywood celebrities. Mumbai’s property market is a favoured investment hub for the entertainment industry, characterised by high rental yields and significant potential for capital appreciation. Experts indicate that this trend is fuelled by the city’s reputation as India’s financial capital, offering diverse investment opportunities that attract prominent figures from various sectors.

Bhatia’s recent property acquisitions not only reflect her acumen in real estate but also emphasise the importance of diversification and long-term value creation in a competitive market. As she expands her portfolio, her strategic investments could serve as an inspiring model for other industry professionals seeking to navigate the complexities of Mumbai’s real estate landscape. This growing trend among celebrities to invest in commercial and residential properties signals a broader shift towards financial stability and wealth management within the industry. As sustainability and community engagement become increasingly important, Bhatia’s investments may also inspire future developments that focus on eco-friendly practices and sustainable living environments.

New Rules Standardise Senior Housing in Mumbai and Pune

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September 24, 2024

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New Rules Standardise Senior Housing in Mumbai and Pune

In a progressive move, the Maharashtra Real Estate Regulatory Authority (MahaRERA) has introduced a set of comprehensive guidelines aimed at ensuring senior-friendly amenities in housing projects across the state. The guidelines, mandatory for builders focusing on senior citizen housing in cities like Mumbai and Pune, establish key standards for accessibility, safety, and sustainability. By focusing on these aspects, MahaRERA hopes to elevate the living conditions for India’s growing elderly population, ensuring that senior citizens have access to safer and more comfortable living environments.

The guidelines, which were open for public consultation earlier this year, have incorporated valuable feedback from senior citizens and other stakeholders. Aligned with the Ministry of Housing and Urban Affairs’ model guidelines, the new regulations reflect the growing nationwide emphasis on senior citizen well-being. They require developers to implement crucial design elements such as wheelchair-accessible elevators, wider doorways, and ergonomically designed spaces. These features aim to facilitate ease of movement and reduce potential hazards for elderly residents, fostering a more inclusive and comfortable environment.

A key provision of the guidelines is the emphasis on accessibility and mobility. Multi-storey buildings must include elevators large enough to accommodate wheelchairs and mobility equipment, ensuring that senior citizens can move freely within the premises. Other design requirements include ramps, wide doorways, and easy-to-grip door handles. Safety is a priority, with additional mandates for furniture design, slip-resistant flooring, and well-illuminated corridors and common areas to prevent accidents and injuries among the elderly.

From a sustainability perspective, the guidelines also focus on green building practices. Developers are encouraged to adopt environmentally responsible construction methods and materials. This not only contributes to environmental protection but also promotes the health and well-being of senior residents by improving air quality and reducing energy consumption. The emphasis on sustainability aligns with the increasing demand for eco-friendly construction, which has gained prominence in the urban real estate landscape.

MahaRERA’s initiative represents a significant step forward for the real estate sector, setting a benchmark for the future of senior housing projects. By enforcing these guidelines, the regulator ensures that builders deliver projects that meet the specific needs of elderly residents, while also addressing broader concerns around accessibility and sustainability. These measures are expected to enhance the quality of life for senior citizens across Maharashtra, providing them with a safer, more comfortable, and greener living environment.

Luxury Housing Drives Mumbai MMR Sales

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Homes and buildings

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September 24, 2024

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The Mumbai Metropolitan Region (MMR) has witnessed a remarkable surge in the average registered home sales value, reaching a record high of Rs 94 lakh in the second quarter of 2024. This 10% year-over-year (YoY) growth is a testament to the region’s thriving real estate market, despite a decline in the total number of registered transactions. While the overall registered sales value decreased by 6% YoY, the average sales value’s significant increase indicates a robust demand for high-value homes.

This trend is particularly evident in peripheral suburbs, which have emerged as the leaders in the MMR market. Kalyan-Dombivli and neighboring localities accounted for 21% of the overall registered residential transactions, with Dombivli taking the lead. In terms of registered home sales value, Mumbai’s Western Suburbs dominated, capturing a 31% share. Thane West, Dombivli East, and Mira Road East led in total registered residential transactions, with Thane West recording the highest registered sales value. The Southern micro-market of Mumbai achieved the highest average registered sales value, at a staggering Rs 3.65 crore. The Lodha Group continued to dominate in terms of both total registered transactions and registered sales value.

Lodha Upper Thane and Lodha Malabar recorded the highest numbers in their respective categories. Birla Estates also made a notable entry into the top developers by registered sales value. This report underscores the growing preference for high-value homes in Mumbai MMR, despite a downturn in transaction volumes. The performance of the peripheral suburbs, particularly in terms of transaction volumes, highlights their increasing appeal among homebuyers. Meanwhile, the strong sales figures in Mumbai’s Southern micro-market and Western Suburbs underscore the continued demand for premium properties in these areas.

Real Estate Giants Invest ₹10,000 Crore in Hotels

Commercial

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September 24, 2024

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Real Estate Giants Invest ₹10,000 Crore in Hotels

India’s real estate giants are expanding into the hospitality industry, with a combined investment of ₹10,000 crore into hotel projects. This strategic move, led by major developers like Prestige Estates Projects and DB Realty, is poised to reshape the landscape of India’s hotel sector. As these companies venture into the hospitality space, they aim to capitalise on the sector’s growth potential while enhancing infrastructure and service quality.

Prestige Estates, a leading real estate player primarily operating in southern India, has forged a partnership with global hospitality leader Marriott International. Under this agreement, Marriott will manage six upcoming hotel projects under Prestige’s portfolio. The Bengaluru-based firm has earmarked ₹4,250 crore for these ventures, signalling its commitment to expanding into hospitality. By leveraging Marriott’s operational expertise, Prestige is expected to deliver world-class hotel properties, contributing to the sector’s overall growth and meeting the rising demand for luxury accommodations.

DB Realty, another significant real estate player, recently unveiled plans to restructure its hospitality business. The company is de-merging its hospitality arm into a new entity called Advent International Ltd., with a dedicated focus on hotel management and development. DB Realty’s plans include managing assets worth ₹2,300 crore under the leadership of hospitality expert Rahul Pandit, showcasing its strategic move towards carving out a strong presence in this evolving sector.

The foray of real estate companies into hospitality is seen as a significant opportunity for growth and high returns, especially in a post-pandemic market that is witnessing a resurgence in domestic travel and a gradual return of international tourists. Industry analysts believe this trend will not only enhance India’s hospitality infrastructure but also create jobs and spur economic activity. The expertise of real estate developers in large-scale projects, combined with hotel management, is expected to yield innovative and high-quality properties.

From a sustainability perspective, this investment in hospitality by established real estate developers offers an opportunity to build energy-efficient and eco-friendly hotels. Incorporating green building practices, renewable energy solutions, and smart technologies in hotel infrastructure can significantly reduce carbon footprints. This shift aligns with the growing demand for responsible and sustainable tourism, which is becoming increasingly important for travellers and industry stakeholders alike. The focus on sustainability in hotel development ensures that the industry’s growth is not only economically beneficial but also environmentally responsible.

Blackstone’s Strategic Play in Snack Industry

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September 24, 2024

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Blackstone’s Strategic Play in Snack Industry

Blackstone, the renowned global private equity firm, is currently in advanced negotiations to acquire a significant stake in Haldiram’s, the beloved Indian snack and sweets manufacturer. This high-profile transaction has been under discussion for several months, with Blackstone collaborating alongside its consortium partners, the Abu Dhabi Investment Authority and Singapore’s GIC. However, progress has been hampered by ongoing disputes regarding the company’s valuation, as reported by industry sources.

Recent developments indicate that talks between Blackstone and the Agrawal family, who manage the Haldiram’s brands in Delhi and Nagpur, have picked up pace. According to insiders, there has been considerable back and forth concerning the valuation. The Agrawal family is reluctant to relinquish a controlling stake of 76 percent as initially sought by Blackstone, expressing a preference to maintain a larger share in the business they have cultivated over generations. While Blackstone aimed to secure a controlling interest, the family’s desire to sell only a 51 percent stake complicates negotiations. The discussions are now gravitating towards a potential compromise of approximately 74 percent, balancing the family’s wish to retain significant control with the investors’ aspirations for substantial ownership. Haldiram’s has evolved into a multi-billion-dollar enterprise, renowned across India for its diverse range of snacks and sweets. The brand’s extensive distribution network and solid market presence render it an enticing prospect for global investors eager to tap into the flourishing Indian consumer market. Valuation disagreements underscore the intricacies of such negotiations, as Blackstone and its partners seek a strategic foothold in a burgeoning sector.

For the Agrawal family, the challenge lies in harmonising the infusion of capital and expertise from international investors while retaining influence over their long-established business. Despite these hurdles, industry experts maintain a positive outlook regarding the likelihood of an agreement. The recent momentum in talks suggests a shared commitment to achieving a mutually beneficial outcome. A successful deal could set a significant precedent for future investments in India’s dynamic food and beverage sector, which continues to draw interest from global players. The negotiations between Blackstone and Haldiram’s reflect broader trends within India’s economic landscape, where traditional family-owned businesses increasingly engage with global private equity firms. As discussions progress, the outcome will be keenly observed by market analysts, potentially signalling a notable shift in the dynamics of India’s snack food industry.

Bengaluru Flat Owners Cry Foul Over Property Rights

Bangalore

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September 24, 2024

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Bengaluru Flat Owners Cry Foul Over Property Rights

Bengaluru’s flat owners are demanding urgent legal reforms to protect their property rights amidst mounting uncertainty regarding title, ownership, and maintenance of group-housing residential properties. Associations representing flat owners have raised concerns about builders exploiting loopholes in existing laws to retain control over undivided land, allowing them to mortgage the land, construct additional structures, and claim compensation during property acquisitions.

The Bangalore Apartments Federation (BAF) has appealed to Deputy Chief Minister DK Shivakumar, urging the government to expedite legal reforms. “There are significant gaps in the Karnataka Apartment Ownership Act (KAOA), 1972, that need to be fixed,” said BAF President Vikram Rai. “We had represented the problem to the government last year, but the committee to address this issue hasn’t been formed yet.” Legal experts and flat owners’ associations have long criticized the existing laws, arguing that they benefit certain lobbies at the expense of homeowners.

The current legal framework in Karnataka comprises the KAOA, 1972; the Karnataka Ownership Flats (Regulation of the Promotion of Construction, Sale, Management, and Transfer) Act (KOFRA), 1972; and the Real Estate (Regulation and Development) Act (RERA), 2016. The call for legal reforms highlights the urgent need for a comprehensive and clear legislative framework to safeguard property rights and ensure fair practices in the real estate sector. The state government’s response to these demands will be crucial in addressing the ongoing challenges faced by flat owners and ensuring transparency and accountability in property transactions.

India’s Data Centres A $5.7 Billion Opportunity

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September 24, 2024

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India’s Data Centres A $5.7 Billion Opportunity

The Data Centre (DC) industry in India is on the verge of a transformative phase, poised to add an impressive 791 MW of capacity by 2026, according to a recent report by JLL India. This anticipated expansion is projected to require approximately 10 million sq. ft. of real estate space and is expected to attract a staggering $5.7 billion in investments. The driving force behind this burgeoning demand is the increasing adoption of Artificial Intelligence (AI) across various sectors. As AI utilisation escalates, the need for data centres in India is forecasted to range between 650-800 MW during the 2024-26 period, signalling a robust growth trajectory for the sector.

A landmark development came in 2023 when the Indian government granted infrastructure status to data centres. This strategic initiative aims to facilitate easier access to institutional credit at reduced interest rates, making it more attractive for investors. Such a move is expected to catalyse the development and expansion of data centres nationwide, further solidifying India’s position in the global digital economy. This governmental support, combined with a favourable business climate, is likely to enhance investor confidence and drive long-term growth within the sector.

The data centre industry has emerged as one of the top three preferred alternative asset classes for investors in the Asia-Pacific (APAC) region, as highlighted by a recent CBRE report. This burgeoning sector has witnessed significant investments from global operators, real estate developers, and private equity firms eager to seize opportunities in India’s expanding data centre market. Between 2018 and 2023, India attracted over $40 billion in investment commitments from both global and domestic investors, underscoring the growing interest in this sector. With the convergence of technology and infrastructure, the data centre landscape in India is set to flourish, presenting a wealth of opportunities for stakeholders.

Sustainability is an increasingly vital consideration as the data centre industry evolves. The environmental impact of data centres, particularly regarding energy consumption and carbon emissions, has prompted the need for eco-friendly designs and operations. By adopting renewable energy sources, implementing energy-efficient cooling systems, and focusing on sustainable building practices, data centres can significantly reduce their carbon footprint. This shift towards sustainability not only aligns with global environmental goals but also meets the growing consumer demand for responsible business practices. As India invests in this critical infrastructure, the emphasis on sustainable operations will be essential to ensuring a greener future for urban development, benefiting both the environment and the economy.

Anant Raj’s Rise in Delhi NCR Realty

Residential

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September 24, 2024

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The Indian real estate sector is witnessing a remarkable transformation, driven by rapid urbanisation and demographic shifts that are reshaping the landscape of metropolitan living. As more individuals migrate to urban areas seeking improved socio-economic opportunities, the demand for both residential and commercial spaces is escalating. This urban influx is further compounded by the corporate sector’s increasing need for office spaces, sustaining a robust growth trajectory in the metropolitan real estate markets.

As a vital pillar of India’s economy, the real estate sector significantly contributes to GDP and employment. Projections indicate that the market could expand to a staggering US$ 1 trillion by 2030, a substantial rise from the US$ 200 billion recorded in 2021. This growth is supported by a projected compound annual growth rate (CAGR) of 9.20% from 2023 to 2028. In the first quarter of 2024, the Indian residential market sustained a sales growth rate of 9% year-on-year, while the commercial real estate sector saw an impressive 43% increase during the same period. In this thriving environment, Anant Raj Limited emerges as a key player, boasting a substantial land bank of approximately 300 acres across prime locations such as Gurugram, Najafgarh, and Mehrauli. These strategic acquisitions, made during the early years when the Delhi Development Authority oversaw real estate development in the National Capital Region (NCR), have solidified Anant Raj’s position in the competitive market. The company’s diversified portfolio spans residential, commercial, and hospitality projects, allowing it to cater to the surging demand for luxury living and premium office spaces.

Anant Raj’s strategic investments have not only expanded its footprint but also established a strong presence in the Delhi NCR region. Central to Anant Raj’s philosophy is a commitment to sustainable development and innovative architectural design, setting new benchmarks within the industry. By integrating green building practices and cutting-edge technology, the company enhances residents’ quality of life while simultaneously promoting environmental sustainability in urban areas. Anant Raj’s ambitious projects are redefining the Delhi NCR skyline, offering world-class amenities and elevating living standards. As the sector continues to flourish, the company’s forward-thinking approach and judicious land utilisation ensure its prominent role in the ongoing real estate boom. The commitment to sustainability is particularly noteworthy; by embracing eco-friendly practices, Anant Raj is not only contributing to the environment but also appealing to a growing segment of environmentally conscious buyers.

Karnataka Consumer Court Slams Builder

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September 24, 2024

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A Bengaluru-based builder, Dee Mandala Infrastructure (P) Ltd, has been held accountable for failing to complete a construction project within the promised timeframe. The Karnataka State Consumer Disputes Redressal Commission has ordered the builder to refund Rs 49.5 lakh to a buyer, along with additional compensation for service deficiency and litigation costs. The buyer had initially paid Rs 19.4 lakh upfront for a flat in the builder’s Hennur project, with the expectation of receiving possession within 18 months.

However, the project remained incomplete for over three years, leading to significant frustration and financial loss for the buyer. Despite multiple notices and legal actions, the builder failed to address the buyer’s concerns. The commission’s investigation revealed a clear deficiency in service on the part of the developers. As a result, they were ordered to refund the buyer Rs 49.5 lakh with an annual interest rate of 12% from the respective dates of payment. Additionally, the commission awarded Rs 2 lakh to the buyer for the mental anguish and financial loss endured due to the delay, along with Rs 25,000 for litigation expenses.

This ruling underscores the accountability of real estate developers towards timely project completion and adherence to contractual commitments. The consumer protection framework ensures that developers cannot escape liability for service deficiencies, safeguarding buyers’ investments and interests. The buyer’s persistence in seeking redressal through the legal system highlights the importance of holding developers accountable for project delays. This case serves as a reminder to the real estate industry about the critical need for timely project execution and transparent communication with buyers.

Legal experts view this decision as a significant precedent, reinforcing the principle that developers must meet their contractual obligations or face financial consequences. The order to refund the substantial amount, along with interest and additional compensation, sends a strong message to the real estate sector about the importance of maintaining trust and reliability in transactions. As the real estate market continues to evolve, regulatory bodies and consumer courts play a vital role in ensuring fair practices and protecting buyers from potential exploitation. This case is a testament to the effectiveness of legal recourse available to consumers and the stringent measures in place to address grievances in the sector.

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