Nagpur Improvement Trust to Redevelop Sanskrutik Sankul into 13-Storey Mixed-Use Complex

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January 7, 2025

Nagpur Improvement Trust to Redevelop Sanskrutik Sankul into 13-Storey Mixed-Use Complex

the Nagpur Improvement Trust (NIT) has announced plans to redevelop its ageing Sanskrutik Sankul into a modern 13-storey commercial and residential complex. Located on North Ambazari Road, opposite the NIT Swimming Pool, this high-rise development will provide much-needed commercial and residential space in a prime area of Nagpur.

The redevelopment is set to take place under a Public-Private Partnership (PPP) model. The project will be carried out by a private developer who has already been awarded the contract following a competitive bidding process. The tender was awarded after the NIT’s board of directors approved the proposal, and the successful contractor agreed to pay Rs 120.46 crore upfront, surpassing the base price of Rs 120 crore. With a total construction cost estimated at Rs 200 crore, the final project expenditure, including the premium paid to NIT, is expected to be around Rs 320 crore. This cost covers both the construction and the additional expenses borne by the contractor. The redevelopment project will involve the construction of a commercial-cum-residential complex on a plot of over 43,000 square feet. The new building will feature a built-up area of more than 1.75 lakh square feet. The 13-storey structure will include two floors dedicated to parking, while the remaining floors will cater to various commercial and residential purposes. The development will provide a much-needed boost to the area, as it is located next to the MahaMetro Aqua Line, benefiting from the metro corridor’s added connectivity. With the Floor Space Index (FSI) of four, the complex will efficiently utilise the available land to accommodate both business and residential needs. The new complex will be designed with a mix of commercial spaces, residential units, and even a starred hotel. While some floors will be leased to commercial establishments, the higher floors will contain residential units. Additionally, a banquet hall is proposed for hosting events and gatherings. This development aims to meet the growing demand for modern urban spaces that cater to both commercial activities and residential living in Nagpur.

For existing tenants of the Sanskrutik Sankul, the developer will pay rent until the project is completed. Once finished, these tenants will be accommodated in the new complex. The NIT will also receive two floors within the building to house its offices. Although the tender has been awarded and the plans are in motion, the exact timeline for the demolition of the current Sanskrutik Sankul building and the commencement of construction has yet to be decided. Nevertheless, the project signifies a step towards modernising Nagpur’s infrastructure and improving urban amenities. It is also part of the NIT’s broader efforts to oversee and manage urban projects across the city, with investments valued at over Rs 3,000 crore. This redevelopment reflects the growing demand for mixed-use spaces in Nagpur, where urbanisation is rapidly transforming the landscape. With state-of-the-art amenities and better connectivity, the new complex promises to be a significant contribution to the city’s real estate and economic growth. As this ambitious project progresses, it is expected to provide a new face for North Ambazari Road, offering both residents and businesses a vibrant and modern space to thrive.

India’s real estate investments reached a record $6.5 billion in 2024

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January 7, 2025

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India’s real estate investments reached a record $6.5 billion in 2024

India’s real estate sector has seen an unprecedented surge in institutional inflows in 2024, with total investments reaching a remarkable $6.5 billion, marking the highest level of investment since 2020. This surge reflects a robust 22% year-on-year growth compared to the previous year’s $5.4 billion, with the fourth quarter alone accounting for $1.9 billion in inflows. The positive momentum seen in Q4 is a crucial indicator of market confidence, underpinned by a mix of both domestic and international investors. Domestic investors contributed significantly to the final quarter’s surge, representing 43% of the total inflows. This trend is indicative of a growing trust among India-based institutional players, alongside continued optimism from global investors.

A significant development this year has been the industrial and warehousing sector’s dominance in investment volumes, securing 39% of the total inflows. The surge in demand for logistics and warehousing facilities comes as India continues to witness a rise in manufacturing and industrial growth, mirrored by positive indicators such as the Manufacturing Purchasing Manager’s Index (PMI) and the Index of Industrial Production (IIP). In contrast to this, the office space sector has faced a slight decline, with investments down 23% year-on-year, totalling $2.3 billion. However, residential real estate has also shown encouraging growth, with inflows reaching $1.1 billion, marking a significant 46% increase from 2023 levels.

Foreign investments continued to be the primary driver of India’s real estate market, contributing $4.3 billion or 66% of total investments in 2024. Asia-Pacific (APAC) investors, in particular, played a pivotal role, accounting for nearly one-third of the foreign inflows. The continued emphasis on infrastructure development, coupled with government initiatives such as the ‘Make in India’ programme, has enhanced India’s appeal to international investors. Tier-I cities, particularly those with robust infrastructure and business-friendly policies, remain at the centre of investment activity. As we look ahead to 2025, it is anticipated that domestic players will increasingly channel capital into residential, office, and industrial sectors, contributing further to India’s real estate growth.

The geographical spread of investments in India continues to reflect the country’s shifting real estate dynamics. While Mumbai remains a dominant player, accounting for 24% of total investments with inflows of $1.6 billion, cities like Bengaluru, Chennai, and Delhi NCR are also emerging as attractive destinations for real estate investments. These cities collectively hold around 8-9% of the market share each, driven by expanding infrastructure and the growing demand for both commercial and residential spaces. In Mumbai, the office segment continues to draw the largest share of investments, but industrial and warehousing assets are also receiving significant attention.

From a sustainability perspective, India’s real estate market is increasingly aligning with global trends towards green buildings and eco-conscious developments. As industrial and warehousing investments grow, the demand for sustainable and energy-efficient properties is rising. Warehousing developers are adopting green building standards to reduce environmental footprints, focusing on energy-efficient designs, water conservation, and waste management systems. As the country’s real estate sector continues to develop, these sustainable initiatives will play a crucial role in reducing the sector’s carbon footprint and promoting long-term environmental sustainability.

PM Modi Launches Rs 12,200 Crore Development Projects in Delhi, Boosting Connectivity and Healthcare

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January 7, 2025

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PM Modi Launches Rs 12,200 Crore Development Projects in Delhi, Boosting Connectivity and Healthcare

Prime Minister Narendra Modi inaugurated and laid the foundation for development projects worth over Rs 12,200 crore on Sunday. The inauguration comes just ahead of the anticipated Delhi Assembly elections, marking a key moment in the city’s ongoing urban development and growth.

Among the highlight projects was the inauguration of the Delhi-Meerut Regional Rapid Transit System (RRTS), which aims to revolutionise travel between Delhi and Meerut. The Prime Minister unveiled a 13-km stretch of the Delhi-Ghaziabad-Meerut Namo Bharat corridor, which runs from Sahibabad to New Ashok Nagar. With a budget of Rs 4,600 crore, this project is set to drastically reduce travel time between the two cities to under an hour. The RRTS will connect bustling urban centres, easing daily commutes and reducing road congestion. To mark the occasion, PM Modi took a ride on the Namo Bharat train, travelling from Sahibabad to New Ashok Nagar, bringing to life the vision of faster, more efficient regional connectivity. In an effort to further enhance urban mobility, the PM also inaugurated a 2.8-km segment of Delhi Metro Phase-IV, linking key locations like Janakpuri, Krishna Park, and parts of Vikaspuri. The Rs 1,200 crore stretch promises to improve connectivity in West Delhi, offering much-needed relief to daily commuters in the area.
Additionally, the Prime Minister laid the foundation stone for the Rithala-Kundli section of Phase-IV, a massive 26.5-km extension that is estimated to cost Rs 6,230 crore. The extension will provide better connectivity between Delhi and Haryana, linking areas like Rohini, Bawana, Narela, and Kundli. The extended Red Line will not only improve travel within Delhi but also connect residents to key regions in Haryana and Uttar Pradesh, making cross-border travel more seamless.

In a step towards enhancing healthcare, PM Modi also laid the foundation stone for a Rs 185 crore state-of-the-art facility for the Central Ayurveda Research Institute (CARI) in Rohini. This new facility will include an administrative block, outpatient and inpatient care units, and a specialised treatment block. By integrating research and treatment under one roof, the complex aims to strengthen India’s holistic healthcare system and promote the growing interest in Ayurveda. CARI’s efforts will provide a space for advanced research, while also offering patients access to traditional healing methods in a modern, well-equipped environment. These projects are part of the government’s broader vision for creating a connected, sustainable, and healthcare-focused Delhi. The Rs 12,200 crore worth of initiatives are set to enhance both the quality of life and the ease of mobility for Delhi’s residents, making the city a more vibrant and accessible place.
For the people of Delhi, these infrastructural advancements will soon provide tangible benefits in terms of faster commutes, better public transport options, and improved healthcare facilities. The government’s commitment to modernising the city is clear, and these projects serve as a testament to its ongoing efforts to build a better, greener, and more connected future for India’s capital. The inauguration of these large-scale projects underlines PM Modi’s continued push to modernise urban infrastructure and healthcare in India, bringing tangible benefits to citizens. As Delhi moves into a new era of growth and development, these projects will play a key role in shaping its future.

Gensol Engineering Wins Major 275MW Solar PV Project in Gujarat

Power And Energy

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January 7, 2025

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Gensol Engineering Wins Major 275MW Solar PV Project in Gujarat

Gensol Engineering, a leading player in India’s renewable energy sector, has kicked off the year 2025 with a significant achievement. The company has secured an Engineering, Procurement, and Construction (EPC) contract for a 275MW solar photovoltaic (PV) project at the RE Solar Park in Khavda Rann, Kutch, Gujarat. With a total bid value of approximately Rs 1061.97 crores, including Goods and Services Tax (GST), the project will be a key part of India’s growing commitment to clean and sustainable energy.

This contract, awarded by a prominent public sector undertaking, marks a major milestone for Gensol Engineering as it strengthens its role in the country’s renewable energy landscape. The project will also include a three-year operation and maintenance (O&M) agreement, underscoring the company’s long-term commitment to the development and sustainability of renewable energy infrastructure. Shilpa Urhekar, CEO of Solar EPC (India) at Gensol Engineering, expressed excitement about the company’s latest win: “We have started Calendar Year 2025 on a high note. We have been awarded a prestigious Solar PV project contract from a renowned public sector undertaking at the RE Solar Park, Khavda Rann of Kutch, Gujarat. This partnership holds immense value for us, and we are grateful for the continued trust and confidence placed in us by such a large renewable energy corporation.” Gensol Engineering’s win comes at a time when India is ramping up efforts to meet its renewable energy goals, particularly in the solar sector. The country has set ambitious targets for clean energy capacity, aiming for 500GW of non-fossil fuel energy by 2030. With its long-standing experience in solar EPC, Gensol Engineering is well-positioned to contribute significantly to these goals.

For Gensol, the contract not only marks an important business achievement but also highlights its alignment with the Indian government’s vision to meet the growing demand for sustainable energy solutions. As a homegrown company, Gensol’s leadership has consistently emphasised the importance of adopting cutting-edge technologies and creating a culture of excellence to drive the nation’s renewable energy ambitions. The RE Solar Park in Kutch, Gujarat, is one of the most ambitious renewable energy projects in India. Located in the arid regions of Kutch, the park takes advantage of the area’s abundant sunlight, making it an ideal site for large-scale solar power generation. The 275MW solar PV project awarded to Gensol Engineering will not only contribute to the region’s energy needs but also support India’s broader clean energy goals. Gensol’s approach to the project underscores its commitment to the development of sustainable energy infrastructure. By combining innovation with operational excellence, Gensol aims to play a pivotal role in advancing India’s renewable energy sector, ensuring that clean energy becomes an integral part of the nation’s future.

As the project progresses, Gensol Engineering’s success in securing this contract further reinforces the importance of collaboration between private companies and public sector organisations in achieving India’s renewable energy targets. The company’s dedication to delivering high-quality, sustainable energy solutions will continue to impact India’s energy landscape in the years to come, contributing to a greener, more sustainable future for all. Gensol Engineering’s success in winning the 275MW solar PV project in Kutch is a testament to the company’s expertise and its ability to align with India’s renewable energy vision. With such promising projects underway, Gensol Engineering is poised to continue making a meaningful impact in the Indian clean energy sector.

Andheri Mumbai’s Commercial Real Estate Powerhouse on Rise

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January 7, 2025

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Andheri Mumbai’s Commercial Real Estate Powerhouse on the Rise

Andheri, an increasingly dynamic area in Mumbai, is quickly becoming a prime commercial real estate destination, showcasing the city’s rapid evolution as a business hub. With its blend of established business districts and emerging growth corridors, Andheri is now the go-to place for entrepreneurs and businesses seeking to thrive in one of the world’s most vibrant commercial landscapes. Offering both prime spaces and strategic advantages, Andheri is positioning itself as a goldmine for commercial real estate investors and occupiers alike.

Historically, Andheri has been home to some of Mumbai’s most renowned business centres, including the Veera Desai Industrial Estate and the bustling Link Road. In recent years, this area has seen a wave of high-profile investments, with celebrities such as Amitabh Bachchan, Sara Ali Khan, and Kartik Aryan making a collective investment of ₹47.82 crore in office spaces. These business districts host multinational companies, corporate giants, and banking institutions, providing a prestigious environment for commercial ventures. Andheri’s connectivity to other parts of Mumbai, courtesy of the Western Express Highway and Mumbai Metro, further strengthens its appeal. The area’s infrastructure improvements continue to propel its growth, drawing increasing demand for office space and commercial properties.

In terms of real estate absorption, Andheri East is proving itself a key player in the sector. A hub for affordable commercial properties, it offers businesses a cost-effective solution without compromising on proximity to the city’s economic core. The area’s growing infrastructure, coupled with its strategic location near Powai and Vikhroli, offers a compelling proposition to businesses looking to expand their footprint in Mumbai. Additionally, Andheri East’s development of modern office complexes equipped with Grade-A amenities is meeting the increasing demand for high-quality commercial spaces. The area’s burgeoning status makes it a prime location for businesses across multiple industries, from technology to finance, positioning Andheri as a critical node in Mumbai’s commercial expansion.

Mumbai’s real estate market continues to experience remarkable growth, with data from CBRE’s India Office Figures for Q2 2023 showing a significant increase in office leasing activity. The commercial absorption rates in Mumbai remain strong, with key sectors like BFSI, technology, and manufacturing driving demand. Factors such as the increasing pace of urbanisation and government initiatives in infrastructure development have created a favourable environment for investment. The Mumbai Metropolitan Region Development Authority (MMRDA) plays a pivotal role, enhancing connectivity with new metro lines and highways, further fueling real estate growth. Amidst this growth, Andheri stands out due to its strategic location and continuous development, attracting businesses eager to tap into the city’s expanding commercial ecosystem.

From a sustainability perspective, Andheri’s commercial real estate sector is not only focusing on business growth but also prioritising environmentally conscious development. New office complexes in the area, such as the Atharv Aaradhyam development, are integrating green building features, maximising energy efficiency, and offering eco-friendly amenities. These developments are designed to support sustainable business practices and are increasingly aligning with the global trend towards green construction. The implementation of cutting-edge technologies, sustainable design, and eco-conscious development strategies in Andheri is a testament to Mumbai’s commitment to sustainable urban growth, ensuring that its commercial spaces contribute positively to both the economy and the environment.

$579 Million Real Estate Acquisition by Palladius Capital

Residential

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January 7, 2025

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$579 Million Real Estate Acquisition by Palladius Capital

Palladius Capital Management, an investment manager known for its vertically integrated strategies, has successfully acquired a portfolio of nine residential real estate assets, totalling $579 million in capitalisation. The acquisition includes five multifamily properties and four student housing communities, which collectively comprise more than 2,500 residential units across key markets in the United States. This significant transaction comes under the umbrella of Palladius’ value-add investment strategy, targeting high-potential, opportunistic assets that are primed for long-term value creation.

The firm’s acquisition strategy is underscored by a keen focus on high-growth residential markets with strong economic fundamentals. For multifamily properties, Palladius has targeted markets that exhibit positive trends in employment growth, wage increases, urban development, and improved infrastructure. In particular, cities with significant re-urbanisation movements and rising employment opportunities make for promising multifamily investment landscapes. For student housing, Palladius concentrated on universities with strong application and enrolment growth, particularly those near flagship institutions that benefit from student spillover, creating an elevated demand for housing. By investing strategically in these high-growth areas, Palladius aims to generate attractive, risk-adjusted returns for its investors.

The acquisitions were executed on behalf of Palladius’ recently closed private real estate investment fund, which raised around $112 million in equity from the private wealth channel. This funding success is a testament to Palladius’ adaptability, as the firm navigates the challenges posed by constricted capital markets and fluctuating transaction volumes. According to Marko Velazquez, Senior Managing Director at Palladius, the company’s strategic acumen in acquiring properties during a pivotal shift in interest rates has been key to its success. While many of their competitors faced difficulties in securing funding and executing deals, Palladius leveraged its expertise and local market knowledge to acquire assets at an attractive basis, positioning itself for future growth in the competitive residential market.

Palladius’ rapid growth and successful deployment in a highly challenging environment reflect the strength of its investment strategies. “We are pleased with the outcome of this acquisition, which positions us well to continue generating value for our investors, both institutional and private wealth,” commented Nitin Chexal, CEO of Palladius Capital. The firm’s approach is informed by decades of experience in both investment management and property-level operations. With a growing asset base currently valued at approximately $950 million across the U.S., Palladius has built a robust platform capable of delivering consistent results despite the evolving macroeconomic environment.

The firm’s commitment to sustainable development is equally noteworthy. By focusing on value-add investments, Palladius is not only enhancing the economic viability of its portfolio but also improving the quality of life for residents. The properties under acquisition are expected to undergo significant upgrades in terms of energy efficiency, community spaces, and environmental sustainability. As urban landscapes increasingly prioritise green building standards, Palladius is positioning itself as a key player in creating residential spaces that align with modern sustainability goals. The firm’s forward-thinking approach incorporates eco-conscious development practices, ensuring that the portfolio is future-proof and resonates with both investors and tenants who increasingly value environmental responsibility.

2025 Could be Turning Point for Commercial Real Estate Recovery in India

Commercial

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January 7, 2025

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2025 could be a turning point for commercial real estate recovery in India

2025 Could be Turning Point for Commercial Real Estate Recovery in India

The commercial real estate sector, which endured a prolonged period of disruption and uncertainty due to the pandemic, is poised for a possible recovery in 2025. As businesses adapt to new work models and the economy continues to stabilise, commercial properties are gradually regaining attention. The year 2025 could see the sector undergoing a profound shift, driven by evolving business dynamics, rising infrastructure investments, and a strong demand for sustainable, flexible workspaces.

One of the primary catalysts for a recovery in the commercial real estate sector is the widespread acceptance of hybrid work models. During the pandemic, businesses transitioned rapidly to remote work, but many are now reconsidering office space requirements. While some companies remain fully remote, a growing number are embracing hybrid models that require office spaces for collaboration, team-building, and in-person meetings. This shift is expected to increase demand for high-quality, adaptable office spaces. In particular, companies are seeking flexible leasing options and office layouts that can accommodate both individual workstations and collaborative spaces. In 2025, demand for Grade A office spaces in major business hubs like Bengaluru, Mumbai, and Gurugram is projected to rise, with companies willing to pay a premium for modern and innovative office environments that promote productivity and employee well-being.

Additionally, infrastructure developments and urban expansion are likely to drive commercial real estate growth. Several Indian cities are witnessing significant upgrades to their transportation and connectivity systems, such as metro projects, expressways, and dedicated business corridors. These improvements are enhancing the accessibility of key commercial zones, making them more attractive to companies. The expansion of smart cities, for instance, is creating new opportunities for commercial real estate, offering businesses the chance to establish a presence in emerging urban centres. The increasing integration of technology in urban infrastructure also promises to make these areas more conducive to future business activities. As a result, commercial real estate developers are focusing on developing mixed-use properties that combine office spaces, retail outlets, and residential units, creating vibrant, self-sustaining business districts.

Another driving force in the recovery of commercial real estate is the growing emphasis on sustainability. In 2025, businesses are increasingly prioritising sustainability, not only to reduce their environmental impact but also to align with consumer preferences for eco-conscious operations. Corporate sustainability has become a crucial factor in office space decisions, with organisations seeking buildings that adhere to green building certifications such as LEED and BREEAM. Developers are responding to this demand by incorporating energy-efficient technologies, such as solar panels, low-carbon construction materials, and waste reduction systems, into their projects. Sustainable office spaces are now viewed as a long-term investment, promising lower operational costs and a reduced environmental footprint. Moreover, eco-friendly offices contribute to employee satisfaction and productivity, reinforcing the importance of sustainable practices in business operations.

While these factors point to a positive outlook for commercial real estate, challenges remain. Rising construction costs and land acquisition difficulties in key urban areas continue to limit the availability of prime office spaces. Additionally, some businesses may continue to scale back their real estate footprints, either by downsizing or transitioning to remote work. However, with strong infrastructure support, a renewed focus on sustainability, and increased demand for innovative workspaces, 2025 holds promise for a significant recovery in commercial real estate. It will be critical for developers and investors to adapt to the changing needs of businesses and build environments that offer flexibility, sustainability, and functionality.

What Will Drive India’s Real Estate Market in 2025

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January 7, 2025

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South Hyderabad sees a decline in real estate prices

What Will Drive India’s Real Estate Market in 2025

The Indian real estate market, after enduring years of uncertainty and fluctuating demand, is poised for significant growth in 2025, with several factors positioning it for a strong recovery. From an upturn in the housing sector to infrastructure advancements, various elements are expected to steer the market in a positive direction. Real estate developers, homebuyers, and investors are all looking to the new year with optimism, as trends point to increased demand, improved affordability, and a growing focus on sustainability.

One of the key drivers expected to boost real estate in 2025 is the continued recovery of the housing market, particularly in affordable and mid-segment housing. Following a period of stagnation, the demand for residential properties has begun to show encouraging signs of growth. Government interventions, including the Pradhan Mantri Awas Yojana (PMAY) and other affordable housing schemes, are likely to further increase homeownership among India’s growing middle class. According to industry analysts, the demand for homes priced below ₹40 lakh is expected to rise, driven by the post-pandemic shift in homebuyer priorities, with more people now favouring larger living spaces and better amenities. In 2025, this sector could see a substantial boost, with homebuyers opting for more affordable yet spacious homes in emerging localities.

In addition to housing, the commercial real estate market in India is also set to benefit from significant changes in the business landscape. As hybrid work models stabilise and businesses increasingly realise the importance of quality office spaces, demand for modern, flexible workspaces will likely surge. Moreover, India’s rapid urbanisation and the expansion of key business districts are expected to spur growth in commercial leasing. The government’s focus on boosting infrastructure projects, such as smart cities and metro expansions, will further support the growth of commercial properties, particularly in Tier-2 and Tier-3 cities, where the demand for office spaces is on the rise.

Another critical factor influencing the 2025 real estate market is the increased emphasis on sustainability. With growing awareness of climate change and its impact on urban areas, both developers and consumers are becoming more conscious of environmentally friendly building practices. Green buildings, energy-efficient homes, and sustainable construction methods are expected to take centre stage in 2025. Developers are increasingly incorporating sustainable materials and technologies into their projects, aligning with both regulatory requirements and consumer preferences. According to reports, sustainable buildings have seen a rise in demand, with buyers increasingly favouring eco-friendly homes that offer long-term cost savings through reduced energy consumption. This trend reflects a broader shift towards sustainable living, which is expected to become a driving force in the real estate sector in the coming years.

In conclusion, 2025 could well be a pivotal year for India’s real estate market. Several factors, including a recovery in housing demand, infrastructure advancements, and an increasing focus on sustainability, are likely to propel the industry forward. For developers, this presents an opportunity to tap into the growing middle-class homebuyer segment and the demand for commercial spaces in emerging business hubs. However, challenges remain, particularly in terms of rising construction costs and land availability in key urban areas. Addressing these issues while maintaining a focus on sustainability will be crucial in ensuring the long-term growth and success of the sector.

Realty Sector Pushes for Affordable Housing Reforms

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January 7, 2025

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Realty Sector Pushes for Affordable Housing Reforms

The Indian real estate sector is looking to the upcoming Union Budget for FY26, scheduled to be presented on February 1, 2025, for much-needed reforms to revive the ailing affordable housing market. After the setback in the previous budget when the government removed the indexation benefits on housing loans, industry players are hoping for substantial changes to reignite market sentiment. They are seeking a rise in the tax exemption limit on housing loans, an overhaul of affordable housing criteria, and the reinstatement of the Credit-Linked Subsidy Scheme (CLSS) under the Pradhan Mantri Awas Yojana (PMAY). These measures, they argue, are crucial to addressing the slowdown in the real estate market and making housing more accessible for the masses.

Affordable Housing Struggles Amid Declining Demand

Affordable housing, once seen as the growth engine of the real estate sector, has been struggling to meet demand post-pandemic. Homes priced under ₹40 lakh, which were once in high demand, have seen their sales share drop significantly. According to data, the share of affordable housing sales in India fell to 18% in 2024, down from over 38% in 2019. Anuj Puri, Chairman of ANAROCK Group, highlights that the primary reason for this decline is the reduced focus on affordable housing and the lack of necessary reforms. “Affordable housing requires dedicated attention and targeted benefits, which have been lacking over the past two years,” said Puri, emphasising that tax breaks alone will not solve the crisis.

He further stated that the shortage of urban land, especially in high-demand areas, remains a critical issue for the affordable housing market. Puri suggested that the government could release centrally controlled land, particularly land managed by organisations such as Indian Railways, Port Trusts, and the Department of Heavy Industries, to ease the land scarcity and facilitate affordable housing projects. This, he argued, would help revive the affordable housing segment and make it more accessible to middle and lower-income groups.

Rising Property Prices and the Shift to Luxury Segment

Beyond affordable housing, the broader real estate market is showing signs of slowdown, primarily due to the rapid rise in property prices over the past three years. For many, the dream of owning a home has become increasingly elusive as construction costs and property prices have soared. In response to the stagnant demand in the lower price brackets, leading real estate players have increasingly shifted their focus towards the luxury segment. Pradeep Aggarwal, founder and chairman of Signature Global, noted that a revision of the current tax exemption limit on housing loans to ₹5 lakh, in line with the rising cost of property and construction, could offer much-needed relief to homebuyers in the middle-income category.

However, the growing emphasis on luxury homes in a time of declining affordability raises questions about the sustainability of this shift. While the high-end segment continues to thrive, it’s clear that the real estate market needs a more inclusive approach that balances both luxury and affordable housing. Industry experts argue that the government must take proactive steps to stimulate demand in all segments of the housing market, ensuring that homes remain within reach for a wide range of buyers.

A Sustainable Approach to Affordable Housing

While the demand for affordable housing continues to grow, it’s important to consider the sustainability angle in addressing this crisis. For real estate to thrive in the long run, it must be built in a way that supports both economic and environmental sustainability. As urbanisation increases and more people move to cities, the pressure on housing and infrastructure will intensify. In light of this, developers and policymakers must prioritise eco-friendly designs, energy-efficient buildings, and sustainable construction practices. Implementing green initiatives like rainwater harvesting, solar power, and waste management in affordable housing projects will not only contribute to environmental sustainability but also reduce the cost of living for residents.

As we move towards a future where sustainability is key, it is essential for the government to align housing policies with these long-term goals. Only by embracing sustainable development principles can the government ensure that the affordable housing sector not only recovers but thrives, meeting the needs of millions while preserving the environment for future generations.

Why Kanakapura Road is Bengaluru’s Next Real Estate Hotspot

Bangalore

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January 7, 2025

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Why Kanakapura Road is Bengaluru’s Next Real Estate Hotspot

Kanakapura Road, once considered an affordable and relatively quiet part of Bengaluru, is now rapidly gaining attention from both homebuyers and investors alike. With its prime location on the outskirts of south Bengaluru, the area is seeing significant infrastructure developments, driving real estate prices upwards and attracting both high-net-worth individuals and middle-class families. As we look ahead to 2025, experts predict a potential 15% increase in property values, making it an attractive investment option for those seeking affordable housing with promising future appreciation.

Affordability Meets Investment Potential

One of the key factors driving the surge in Kanakapura Road’s real estate market is its affordability. Compared to other parts of Bengaluru, such as the Northern micro-markets or prime central areas, Kanakapura Road offers competitive property prices. Residential rentals in the region range from ₹25,000 to ₹35,000 for apartments, depending on the type and scale of the development. For investors, land costs vary between ₹3,000 and ₹15,000 per square foot, and residential apartment prices fall within the range of ₹7,000 to ₹12,000 per square foot, with Grade A developments typically priced between ₹10,000 to ₹14,000 per square foot. This pricing is appealing to homebuyers like Anshul Soni, an IT professional working in the city’s Outer Ring Road (ORR), who is looking for a budget-friendly, yet strategic location to settle in.

The availability of reasonably priced homes in well-established gated communities such as those developed by Prestige Group and Brigade Group adds to the area’s appeal. Over the past year, the real estate market on Kanakapura Road has seen an uptick, with some developments experiencing price hikes as high as 25%—a reflection of growing demand and investor interest in this emerging hub.

Infrastructure Push Powers Real Estate Appreciation

Infrastructure improvements are playing a pivotal role in the rapid development of Kanakapura Road. The expansion of this route into a four-lane highway, coupled with significant upgrades to NICE Road, which connects Kanakapura Road to the bustling Electronic City—home to tech giants such as Infosys, Wipro, and Tech Mahindra—has vastly improved connectivity to the IT corridor. This ease of connectivity, combined with proximity to major educational and commercial hubs, is drawing in both professionals and families looking for affordable housing options.

In December 2023, the Bruhat Bengaluru Mahanagara Palike (BBMP) announced a ₹1,200 crore investment to build a 2-km flyover along Kanakapura Road, aimed at reducing traffic congestion and further improving the area’s accessibility. With the area also connected to the Mysuru Road and the southern part of the city, this infrastructure development is set to enhance the area’s appeal and stimulate further growth.

Challenges and Opportunities for Sustainable Growth

While Kanakapura Road’s real estate market is set to experience substantial growth, it is not without its challenges. The area remains somewhat disconnected from Bengaluru’s central business districts, which means daily commuting to the city centre may be a concern for some homebuyers. Moreover, while the local IT corridor of Electronic City offers strong employment opportunities, its distance from the eastern IT hub of Whitefield places Kanakapura Road in a unique position, one that may still limit its potential reach.

However, urban planning experts believe that Kanakapura Road’s growth can be sustainably managed through a balanced focus on development and environmental considerations. As the area undergoes transformation, the inclusion of green spaces, energy-efficient buildings, and smart city features could help foster long-term sustainability. Developers are increasingly aware of the need for eco-friendly infrastructure, incorporating water-saving technologies, waste management systems, and energy-efficient designs into new projects. Such developments would not only enhance the quality of life for residents but also contribute to Bengaluru’s broader environmental goals, offering both short-term benefits and long-term sustainability.

Future Outlook: Kanakapura Road’s Bright Future in 2025

Looking ahead to 2025, Kanakapura Road’s real estate market is poised for major appreciation. As developers rush to meet the growing demand for housing, new residential and commercial projects are likely to keep coming up, further enhancing the area’s infrastructure. The upcoming flyover, metro connectivity, and other developments will further cement the region’s place as a prime real estate investment destination. For both buyers and investors, this represents an opportunity to tap into an emerging market at a relatively early stage, setting the stage for significant returns in the years to come.

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