New Era of Redevelopment of Mumbai’s Kamathipura

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September 24, 2024

New Era of Redevelopment of Mumbai’s Kamathipura

The Maharashtra state government has unveiled an ambitious initiative that seeks to transform one of Mumbai’s most dilapidated areas. This announcement comes ahead of the upcoming assembly elections and is set to energise the long-stalled redevelopment process. Under Regulation 33(9) of the Development Control Promotion and Regulations (DCPR)-2034, the housing department has issued a Government Resolution (GR) designed to facilitate cluster redevelopment.

The GR outlines a plan to offer landowners in Kamathipura a complimentary 500-square-foot carpet area apartment as an incentive to engage in the redevelopment efforts. For plots measuring up to 50 square metres, landlords will receive one free apartment, with further entitlements scaling with plot size—landowners of plots between 51 to 100 square metres will get two flats, while those with plots of 101 to 150 square metres will receive three, and so on. This structured approach aims to motivate landlords to participate actively in the redevelopment process, which is essential for its success. This initiative has been propelled by persistent advocacy from the Kamathipura Punarvikas Samiti, representing both landlords and tenants, who have long sought government support to overcome financial barriers that impede individual redevelopment efforts. Following a comprehensive survey conducted by the Maharashtra Housing and Area Development Authority (MHADA) and the engagement of a project management consultant, the state has established a high-powered committee to oversee compensation and redevelopment decisions.

An official from the housing department remarked, “The allocation of free apartments to both landowners and tenants reflects a balanced approach to urban revitalisation. This measure aims not only to modernise living conditions but also to alleviate the financial burden on landlords, facilitating the much-needed overhaul of Kamathipura’s infrastructure.” The cluster redevelopment under Regulation 33(9) is pivotal in Mumbai’s urban planning narrative, addressing the pressing issues of ageing infrastructure and cramped living conditions that are prevalent in historic areas. This initiative signals the government’s commitment to urban renewal and equitable redevelopment, strategically positioning Kamathipura as a key beneficiary of progressive urban policy ahead of the state elections.

From a sustainability perspective, this redevelopment plan highlights the necessity of modernising old structures while maintaining the cultural essence of the area. By providing incentives for redevelopment, the government not only seeks to enhance living standards but also aims to promote sustainable urban development, ensuring that Kamathipura evolves into a vibrant community that meets contemporary needs without compromising its historical significance.

Rustomjee Group Diversifies into Data Centres Sector

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September 24, 2024

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Rustomjee Group Diversifies into Data Centres Sector

Keystone Realtors, widely recognised as the Rustomjee Group, is making significant strides toward expanding its business portfolio by entering the rapidly growing data centres sector and launching plotted development projects. Traditionally known for its expertise in redevelopment within the Mumbai Metropolitan Region (MMR), the group’s latest move signifies a strategic shift aimed at tapping into the evolving infrastructure demands of India. To support this expansion, Rustomjee is also preparing to raise funds through a qualified institutional placement (QIP) of equity shares, strengthening its financial capability to embark on these new ventures.

Rustomjee Group’s foray into data centres comes at a time when the demand for such facilities is soaring, driven by the ever-increasing need for digital infrastructure. Data centres are critical hubs where large amounts of data are stored, processed, and distributed. As India advances towards greater digital integration across sectors, the need for secure and scalable data centre infrastructure has grown. Rustomjee’s significant land holdings and development expertise position it well to contribute to this burgeoning industry, which is typically measured in megawatts (MW) and gigawatts (GW) for capacity. Industry analysts see this as a natural diversification for the group, leveraging its real estate capabilities while moving into high-demand, future-forward verticals.

The real estate developer’s venture into plotted development marks another key growth area, particularly as demand for individualised housing options continues to rise in India’s tier 2 and 3 cities. The shift towards plotted development reflects changing consumer preferences, with many opting for independent plots over high-rise residential properties, especially post-pandemic. This move could further solidify Rustomjee’s reputation as a versatile developer, catering to different market segments while maintaining its core focus on urban redevelopment.

From a sustainability standpoint, the data centre segment offers opportunities for Rustomjee to implement green building practices, ensuring energy-efficient operations. Modern data centres are designed to reduce their carbon footprint through energy optimisation and renewable energy integration. By investing in eco-friendly infrastructure, Rustomjee can address both the growing digital economy and the pressing need for sustainable real estate development, aligning with global environmental goals. Sustainable data centres, designed to lower energy consumption and manage operational emissions, represent a crucial aspect of the future real estate landscape.

Rustomjee’s diversification into data centres and plotted development demonstrates the group’s strategic vision to grow beyond its core redevelopment business in MMR. With an eye on emerging markets and digital infrastructure, the group’s forward-looking approach is set to shape its future as a multi-faceted player in India’s real estate and infrastructure sectors. As urban centres evolve, these new initiatives offer solutions to both civic challenges and sustainability imperatives, reinforcing Rustomjee’s commitment to responsible development.

Hiranandani’s Centaurus Leads in Smart Building Certification

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September 24, 2024

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Hiranandani’s Centaurus Leads in Smart Building Certification

House of Hiranandani has set a new benchmark in India’s commercial real estate landscape with its latest achievement: WiredScore pre-certification for Centaurus, a 21-storey commercial tower in Hiranandani Estate, Thane. This prestigious recognition makes Centaurus one of the first buildings in India to attain WiredScore status, positioning it as a leader in digital connectivity and smart building technology. The developer aims to further solidify this reputation by securing SmartScore certification, underscoring its commitment to innovative and sustainable property management practices.

The digital infrastructure of Centaurus is driven by advanced technologies, including artificial intelligence (AI), the Internet of Things (IoT), and machine learning (ML), integrated seamlessly with the building’s sophisticated Building Management System (BMS). This setup ensures an optimised, resilient, and sustainable working environment. With its focus on enhancing tenant experience through high-speed connectivity and smart technological features, Centaurus is not just a commercial space but a future-ready hub, prepared to accommodate the evolving needs of businesses in the digital age.

WiredScore, a globally recognised certification body, assesses buildings based on their digital infrastructure, connectivity resilience, and technological capabilities. The certification process evaluates key elements such as internet speed, mobile network strength, and power redundancy, ensuring that Centaurus offers robust digital services and uninterrupted operations. The WiredScore certification adds significant value by reassuring tenants that the building will support their business operations seamlessly in the long term. By securing this pre-certification, Centaurus sets a new standard for commercial properties across India, demonstrating how critical technological infrastructure is in today’s business environment.

From a sustainability perspective, Centaurus’ pursuit of SmartScore certification further cements its position as a forward-thinking building. SmartScore evaluates how buildings utilise smart technologies to reduce operational carbon footprints and optimise energy efficiency. As the world moves toward greener, more sustainable urban environments, Centaurus demonstrates the role that commercial buildings can play in reducing environmental impact while delivering world-class technological solutions. By incorporating cutting-edge green building practices, Hiranandani’s Centaurus proves that luxury and sustainability can co-exist in India’s fast-evolving real estate market. Centaurus’ achievement is not just a win for House of Hiranandani but also for the entire Indian real estate sector. It highlights the increasing demand for smart, tech-forward buildings and the importance of sustainability in modern developments. By leading this shift, Centaurus sets an example for future commercial developments, offering a model that blends efficiency, resilience, and environmental responsibility.

Lodha Achieves Carbon Neutrality on World Environment Day

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September 24, 2024

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Lodha Achieves Carbon Neutrality on World Environment Day

On the occasion of World Environment Day, Lodha, a leader in India’s real estate sector, marked a significant achievement by announcing its attainment of carbon neutrality for scope 1 and 2 emissions. This milestone reflects the company’s steadfast commitment to reducing its carbon footprint and aligns with its larger goal of becoming a net-zero carbon company by 2050. Lodha’s efforts come as part of a broader shift within India’s real estate industry towards sustainability, supporting the nation’s goal of achieving net-zero emissions by 2070.

Lodha’s remarkable reduction in emissions—an impressive 82% over the past five years—was driven by strategic initiatives such as the transition to renewable energy sources in both its construction processes and operational assets. The developer’s reliance on renewable electricity surged from less than 1% to an outstanding 83% between FY20 and FY24. This achievement positions Lodha as a front-runner in the Indian real estate market, setting a benchmark for sustainability and responsible development practices. As noted by Lodha’s Head of ESG, the company’s approach extends beyond meeting milestones to fostering long-term environmental and social impacts, advancing a more sustainable and equitable future for India.

This transition is part of Lodha’s broader philosophy of “Do Good, Do Well,” a guiding principle that underpins the company’s vision of sustainable development. With a strong focus on energy efficiency, integrating renewable energy, and investing in carbon reduction projects, Lodha continues to deliver luxury developments without compromising environmental stewardship. This year, Lodha also became the first Indian real estate firm to have its long-term net-zero targets validated by the Science Based Targets initiative (SBTi), reinforcing its leadership in sustainable real estate.

From a sustainability perspective, Lodha’s commitment is a critical step toward creating greener urban spaces, particularly as the construction and real estate industries are significant contributors to global carbon emissions. By pioneering carbon-neutral initiatives, Lodha not only reduces its own environmental impact but also sets a precedent for other developers to follow, paving the way for a more sustainable future in India’s urban landscape. Furthermore, the integration of green building practices and the use of renewable energy enhances the company’s contribution to India’s sustainability goals. As Lodha continues its journey towards carbon neutrality and beyond, it exemplifies how the real estate sector can align economic growth with environmental responsibility. The company’s holistic approach ensures that sustainability remains at the core of its operations, influencing the wider built environment and setting a new standard for what the future of real estate should look like.

Mumbai’s Housing Redevelopment Challenges and Insights

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September 24, 2024

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Mumbai's Housing Redevelopment Challenges and Insights

The journey of housing redevelopment reveals the intricate challenges faced by residential societies embarking on ambitious revitalisation projects. After twelve years of expectation, residents find themselves still yearning for the modern homes they were promised, lamenting their initial decision to partner with a developer lacking in credibility. Danish Patel, a resident involved in the redevelopment process, reflects on the disillusionment: “The developer’s initial promise faded as mismanagement halted our project midway.”

As urban density and deteriorating infrastructure drive redevelopment efforts across India’s major cities, the potential benefits of these initiatives are considerable. Anuj Puri, Chairman of ANAROCK Group, highlights the transformative power of redevelopment, citing enhanced living standards and optimal land utilisation as key advantages. Mumbai stands at the forefront, with over 31,000 redevelopment projects approved as of May 2024. Other cities like Pune, Delhi-NCR, Ahmedabad, and Surat are also experiencing a surge in activity. Once dominated by smaller developers, this sector is now attracting industry giants such as Ajmera Realty and Mahindra Lifespaces, enticed by lucrative opportunities from surplus inventory sales following redevelopment.

However, the road to successful redevelopment is fraught with potential pitfalls. Neha Gupta, Principal Associate at Athena Legal, warns that internal discord can derail projects, emphasising the importance of cohesive community support. “Lack of consensus and transparency breeds mistrust, undermining project viability,” she asserts. Blind trust in society officials and unrealistic expectations among residents further exacerbate these risks. “Members must rigorously vet developers, prioritising their track record over mere promises,” advises an industry expert. Legal clarity in agreements is crucial for preventing disputes, with experts urging thorough documentation and ensuring resident consent throughout the process.

Despite these challenges, the potential for redevelopment to modernise infrastructure and enhance property values remains substantial. Experts note that redevelopment also offers critical safety and compliance improvements for ageing structures, which is increasingly important in urban settings. The protracted journey of redevelopment in Mumbai serves as a potent reminder that meticulous planning and community engagement are essential to mitigate risks and fulfil promises. By employing prudent oversight and implementing robust legal safeguards, housing societies can effectively navigate the complexities of redevelopment, paving the way for sustainable and upscale living environments for future generations.

India’s Real Estate Market Speeds Up

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September 24, 2024

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Real estate developers in India’s top seven cities have significantly reduced project completion times, showcasing a remarkable improvement in efficiency. A recent report by Anarock, a leading real estate consultancy, reveals that average completion times for both small and large projects have decreased by 18-20% over the past decade.

Anarock’s analysis of projects launched and completed between 2010-2019 and 2014-H1 2024 indicates that smaller projects (fewer than 500 units) now take an average of four years to complete, down from 4.9 years in the 2010-19 period. Larger projects (more than 500 units) have also seen a significant reduction, with completion times dropping from 6.1 years to 4.9 years. The report attributes this improvement to stringent regulatory measures and the adoption of advanced construction technologies. An official from Anarock stated, “The stringent rules imposed on project delays by regulatory authorities have been a key factor in reducing completion times.”

Chennai emerged as the most efficient city, with the shortest completion times for both small and large projects. Kolkata, on the other hand, reported the longest completion times for large projects, while the Mumbai Metropolitan Region (MMR) and Delhi-NCR had the highest completion times for small projects. For projects launched and completed between 2014 and H1 2024, Chennai recorded an average completion time of 3.6 years for large projects and 3 years for small projects. In contrast, Kolkata’s builders took 5.7 years for large projects and 4.4 years for small ones.

In MMR, the average completion time was 4.7 years for small projects and 5.2 years for large projects. Pune reported an average of 4.3 years for small projects and 5.4 years for large ones. Delhi-NCR homebuyers waited an average of 4.7 years for small projects and 5.4 years for large ones. Hyderabad developers completed small projects in an average of 3.1 years and large projects in 4.2 years. In Bengaluru, the completion times were 3.5 years for small projects and 4.8 years for large ones over the past decade. The data highlights a significant reduction in completion time for both large and small projects across all seven cities, demonstrating a positive trend in the Indian real estate market.

UPI Drives India’s Digital Payment Growth

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September 24, 2024

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UPI Drives India's Digital Payment Growth

India’s digital payments landscape is experiencing a meteoric rise, driven by a surge in consumer adoption and technological advancements. A recent study conducted by Kearney in collaboration with Amazon Pay predicts that retail digital payments will reach a staggering $7 trillion by 2030, doubling from current levels.

The report, titled “How Urban India Pays,” underscores the profound shift in consumer behavior towards digital transactions. Urban Indians are increasingly embracing digital payments across various demographic segments, with 90% of respondents preferring them for online purchases. Affluent consumers are leading the charge, utilizing digital payment methods for 80% of their transactions. Millennials and Generation X are the primary adopters of diverse digital payment instruments, while gender parity is evident in digital payment usage. The research, based on an extensive survey of over 6,000 consumers and 1,000 merchants, reveals a widespread adoption of digital payments across different regions, income groups, city categories, age brackets, and genders.

India’s e-commerce sector, valued between $75 billion and $80 billion in 2022, is projected to grow at a compound annual growth rate (CAGR) of 21% until 2030. This growth is mirrored in the retail digital payments sector, which has witnessed a dramatic increase from $300 billion in FY18 to $3.6 trillion in FY24. The report forecasts this figure to reach $7 trillion by FY30. The Unified Payments Interface (UPI) has been a key catalyst for this growth, with a remarkable CAGR of 138% in transaction volumes from FY18 to FY24. Other digital payment instruments, such as cards and digital wallets, are also gaining traction.

India’s leadership in the global digital payment arena is undeniable, accounting for 46% of global digital transaction volumes in 2022. This growth is not confined to metropolitan areas; digital payments have also permeated small towns, where 65% of transactions are conducted digitally. The study by Kearney and Amazon Pay highlights the transformative impact of digital payments on India’s economy. The findings suggest that India’s digital journey will significantly shape its financial landscape in the coming decade, solidifying its position as a global frontrunner in digital payments.

Mumbai Redevelopment A Lessons for Housing Societies

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September 24, 2024

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Mumbai Redevelopment A Lessons for Housing Societies

The story of a protracted redevelopment project underscores the significant hurdles that many housing societies face in their pursuit of modern living spaces. After twelve long years since the project’s inception, residents are still waiting for the promised revitalisation of their homes, a process marred by mismanagement and unfulfilled expectations. Danish Patel, a resident, reflects on the initial enthusiasm, stating, “The developer initially showed great promise when others hesitated, but mismanagement has left our project stalled.”

Redevelopment has emerged as a potential solution for ageing residential estates in India’s burgeoning urban centres. Amidst increasing space constraints and declining infrastructure, the allure of revitalised living environments continues to attract interest. According to the ANAROCK Group, Mumbai currently boasts over 31,000 approved redevelopment projects as of May 2024, with significant activity also noted in cities like Pune, Delhi-NCR, Ahmedabad, and Surat. Historically dominated by smaller developers, the landscape is now witnessing the entry of major players such as Ajmera Realty and Mahindra Lifespaces, who are drawn by lucrative profit margins from surplus inventory following redevelopment. However, as Mumbai’s experience illustrates, the road to successful redevelopment is fraught with potential pitfalls. An expert in legal matters warns that internal discord within housing societies can derail projects. “Lack of consensus and transparency breeds mistrust, undermining project viability,” they emphasise. This highlights the importance of cohesive community support in navigating redevelopment complexities.

Another significant risk stems from blind trust in society officials and unrealistic expectations from residents. “Members must vet developers rigorously, prioritising their track record over mere promises,” advises another expert. Legal clarity in agreements is essential to prevent disputes, with experts advocating for thorough documentation and resident consent at every stage. From a sustainability perspective, the lessons gleaned from Mumbai’s redevelopment saga are crucial. Sustainable urban living necessitates meticulous planning and community engagement, ensuring that new developments are not only functional but also environmentally conscious. Emphasising green building practices and efficient resource management can lead to sustainable, upscale living environments that cater to future generations.

Chennai Leads in Reducing Project Delays

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September 24, 2024

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Chennai Leads in Reducing Project Delays

Chennai has emerged as a shining example of efficient real estate development, with a significant reduction in project delays. According to a recent report by Anarock Consultants, the waiting time for homebuyers to take possession of their homes in large construction projects has decreased by nearly 36% compared to 2019. This positive trend is a result of stringent enforcement by the Tamil Nadu Real Estate Regulatory Authority (TN RERA) and advancements in construction technology.

The report reveals that Chennai witnessed the most substantial decline in waiting time among major Indian cities, dropping from 5.6 years in 2019 to 3.6 years in the first half of 2024. This trend is mirrored across other major cities, although the average waiting time for large under-construction projects remains higher in some regions. Hyderabad and Bengaluru recorded average completion times of 4.2 and 4.8 years, respectively, for large projects launched and completed between 2014 and the first half of 2024. Kolkata reported the longest average completion time of 5.7 years, followed by NCR and Pune at 5.4 years, and the Mumbai Metropolitan Region (MMR) at 5.2 years.

In the case of smaller projects, Chennai once again led with an average completion time of 3 years, followed closely by Hyderabad and Bengaluru. MMR and NCR had the longest waiting times for smaller projects, but all cities experienced an 8% to 29% reduction in these times. An official from Anarock Chennai attributed the faster completion times in southern cities to the prevalent practice of joint development projects. This approach, where landowners receive a share of the developed units, contrasts with the trend in Delhi-NCR and MMR, where developers typically purchase land outright, leading to longer project durations.

“The funds in southern cities are primarily allocated to construction rather than land acquisition,” the Anarock official explained. “Additionally, developers in the South tend to be more disciplined regarding project deadlines.” The strict regulations enforced by TN RERA have played a pivotal role in reducing completion times. An official from the Anarock Group noted that the regulatory authority’s stringent rules on project delays have significantly contributed to timely project completions.

Modernisation of construction technology has also been a key factor. An official from the Confederation of Real Estate Developers’ Associations of India (Credai) explained that pre-fabrication methods have accelerated construction processes. “The sales velocity is faster, resulting in better cash flow. Financial institutions are more cooperative in funding the final phases of construction. However, the most significant factor is TN RERA, which ensures that projects are completed on time,” he added.

Indian Real Estate Sees 33% Growth in FY24

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September 24, 2024

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Indian Real Estate Sees 33% Growth in FY24

India’s real estate market experienced a robust resurgence in the fiscal year 2023-24 (FY24), with 18 major listed developers collectively reporting sales bookings worth Rs 1.17 lakh crore. This marks an impressive 33% growth from the Rs 88,000 crore recorded in the previous fiscal, demonstrating the sector’s recovery, especially in the housing segment. Godrej Properties led the charge with record sales of Rs 22,527 crore, followed closely by Prestige Estates and DLF.

The surge is largely attributed to the heightened demand for residential properties, particularly in the luxury sector, as homebuyers seek reputable developers with proven track records. According to industry experts, the post-pandemic shift towards security and brand reliability has resulted in homebuyers increasingly favouring established players. The numbers speak for themselves, with Prestige Estates Projects reporting Rs 21,040 crore in sales and DLF, India’s largest real estate company by market capitalisation, achieving Rs 14,778 crore in FY24. Other major contributors included Macrotech Developers, known for the ‘Lodha’ brand, with sales of Rs 14,520 crore. This robust performance underscores the resilience of India’s realty sector, even as unlisted giants like Tata Realty, Adani Realty, and the Hiranandani Group remain major but unreported players in the market. Signature Global, a newer entrant, made headlines by doubling its sales bookings to Rs 7,270 crore, reflecting the broader demand surge across the country’s housing sector.

However, with this growth comes the need to address sustainability challenges. As cities expand vertically, particularly in high-demand zones like Mumbai, Bengaluru, and Delhi-NCR, real estate developers must focus on eco-friendly construction practices. This involves incorporating green building technologies, energy-efficient designs, and renewable energy sources to minimise environmental impact. Developers are now under pressure to ensure that this growth is aligned with global sustainability targets, making it crucial to balance economic progress with ecological responsibility. On a broader urban development level, the rising demand for branded developers highlights a consolidation of market power among fewer, more reliable players. This trend benefits homebuyers seeking security and timely delivery, yet it also raises concerns about urban planning. Local governments must step up in terms of improving urban infrastructure, from public transport to waste management, to support this real estate boom.

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