Mumbai Leads India’s Co-Working Rental Surge

By

-

September 24, 2024

Mumbai Leads India's Co-Working Rental Surge

Mumbai has emerged as the leader in India’s co-working rental growth, registering a significant 27% surge since FY20, according to the latest report by Anarock, a top real estate consultancy firm. The city outpaced other flexible workspace hubs such as Gurugram, which saw a 19% rise in the same period. This trend highlights the growing demand for co-working spaces, driven by the evolving needs of businesses and an increasingly flexible workforce.

The report reveals that average monthly rentals per seat in Mumbai’s co-working spaces have jumped from ₹12,500 in FY20 to ₹15,900 in FY24. In comparison, Gurugram saw rentals climb from ₹8,500 to ₹10,100 per seat, reflecting a strong demand for co-working environments. Other key markets like Delhi, Bengaluru, and Noida have also experienced notable rental growth at 18%, 15%, and 14%, respectively, underscoring the nationwide shift towards flexible workspaces.

Co-working spaces have now become a substantial part of the commercial real estate market in India. In the current financial year, co-working accounted for 18% of total office space supply across the top seven cities. Since 2017, nearly 34 million square feet of new co-working spaces have been added to the market. This steady growth reflects the increasing reliance on flexible work models, especially from startups, small and medium enterprises (SMEs), and even large corporations adopting hybrid work models. From a sustainability perspective, co-working spaces represent an environmentally friendly solution. By optimising space usage and reducing the need for large, permanent offices, these spaces contribute to lowering energy consumption and supporting sustainable urban development. The sector’s continued integration of green technologies and shared resources further enhances its sustainability credentials, providing an additional incentive for businesses prioritising environmental goals.

The rise in co-working rentals is propelled by the increasing flexibility that these spaces offer to businesses. Startups and SMEs find co-working spaces particularly appealing due to their cost-effectiveness and scalability. Moreover, the shift towards hybrid working models by larger corporations has further fuelled demand. This trend not only allows businesses to reduce long-term real estate commitments but also fosters a collaborative work environment that boosts productivity and employee well-being. Looking forward, the co-working sector is poised for sustained growth. The integration of cutting-edge technology, focus on collaboration, and commitment to employee wellness are expected to keep driving demand. Mumbai’s lead in rental growth signals the dynamic nature of India’s flexible workspace market, with other cities contributing significantly to this upward trajectory. As the sector evolves, it is likely to play an even more critical role in shaping the future of office leasing across the country.

Indian Real Estate Hits $2.5 Billion Milestone

By

Homes and buildings

-

September 24, 2024

0

Indian Real Estate Hits $2.5 Billion Milestone

Indian real estate investments surged to a record $2.5 billion in the second quarter of 2024, the highest level seen in three years. Major metropolitan areas, particularly Bangalore and Delhi NCR, have emerged as prime hotspots for investment, with a distinct focus on the industrial and warehousing sectors. According to a recent report by Colliers India, a leading real estate consultancy, these segments have captured the lion’s share of capital inflows, marking a notable shift in market dynamics.

The industrial and warehousing segment emerged as the standout performer, accounting for an impressive 61% of the total investment, equating to approximately $1.5 billion. This growth trajectory is largely propelled by the rapid expansion of India’s burgeoning e-commerce sector and a heightened emphasis on domestic manufacturing. High-quality warehouses and logistics facilities are becoming critical to support this boom, making them particularly attractive to investors keen on capitalising on the sector’s potential. Investment momentum saw a significant uptick in Q2 2024, following a more subdued start in the first quarter. The residential real estate segment also posted remarkable growth, with investments increasing by 7.5 times compared to the same period last year. This rise underscores a growing investor confidence in residential properties as secure and profitable investments.

Conversely, the office real estate segment has faced challenges, with investments plummeting by 83% year-over-year. However, the quarter-over-quarter decline was a more moderate 41%, hinting at possible stabilisation and a gradual recovery in the coming months. Foreign investors, primarily from the United States and the UAE, accounted for a significant 81% of these investments. This influx of global capital reflects a burgeoning confidence in the Indian economy and its real estate sector. Colliers India’s report further noted that the residential segment attracted 21% of total institutional inflows, securing a robust presence despite the overall downturn in office investments. The industrial and warehousing segment witnessed an astounding 11-fold increase in investments compared to the previous year, driven by several large transactions indicative of strong demand. Both domestic and global investors are expected to play a pivotal role in consolidating industrial and warehousing properties across India, spurred by the rise of e-commerce and retail consumption, which will likely increase demand for AI-enabled warehouses and micro-fulfilment centres.

Notably, multi-city deals dominated the landscape, constituting 72% of total investment inflows during Q2 2024. Bangalore and Delhi NCR accounted for around 23% of total inflows, primarily driven by foreign investments. In Bangalore, 56% of quarterly inflows were channelled into residential assets, while Delhi NCR experienced a robust 86% year-over-year surge in investment, particularly within the office segment. This boom in real estate investments reflects the evolving landscape of the Indian property market, with industrial and warehousing assets leading the charge. As this sector continues to expand, it is poised to attract further investment, underscoring its essential role in India’s economic development.

Smart Technologies Key to Water Crisis Solutions

By

Homes and buildings

-

September 24, 2024

0

Smart Technologies Key to Water Crisis Solutions

Grundfos, a global leader in advanced pump solutions and water technology, recently concluded its 10th Annual Sustainable Water Management Conclave. This significant event brought together key stakeholders from government, industry, and academia to address the pressing challenges of water scarcity and quality in India.

Central to the discussions was the transformative potential of smart technologies in water management. The conclave emphasized the need for innovative solutions to create sustainable water systems capable of withstanding the pressures of climate change and increasing water demand. Grundfos showcased its commitment to making cities water-positive through its advanced water solutions. The company’s focus on optimized water solutions for utility applications and comprehensive water treatment systems is helping nations achieve water security.

One of the key highlights of the conclave was the exploration of collaborative approaches to address the water crisis. Government bodies, private sector players, and international partners were urged to work together to develop resilient water management systems. Grundfos’s efforts in promoting water sustainability were lauded, particularly its initiatives aimed at enhancing water efficiency and promoting the use of renewable energy in water management systems. The company’s projects across various countries demonstrate its commitment to sustainable development.

The 10th Annual Sustainable Water Management Conclave served as a crucial platform for sharing knowledge, experiences, and best practices in water management. It reinforced the importance of innovation, collaboration, and sustainability in addressing one of the most pressing global challenges of our time. As the world grapples with the impacts of climate change and water scarcity, events like this conclave play a vital role in fostering dialogue and driving action towards sustainable water management solutions. The insights and strategies discussed at the conclave are expected to contribute significantly to the ongoing efforts to secure a sustainable water future for all.

South Mumbai’s Real Estate Revival Hinges on New Infrastructure

Commercial

By

Homes and buildings

-

September 24, 2024

0

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

By

Homes and buildings

-

September 24, 2024

0

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

By

Homes and buildings

-

September 24, 2024

0

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

By

Homes and buildings

-

September 24, 2024

0

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

By

Homes and buildings

-

September 24, 2024

0

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

By

Homes and buildings

-

September 24, 2024

0

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

By

Homes and buildings

-

September 24, 2024

0

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.

ABOUT US