New Rules Standardise Senior Housing in Mumbai and Pune

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September 24, 2024

New Rules Standardise Senior Housing in Mumbai and Pune

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

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

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

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

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

Luxury Housing Drives Mumbai MMR Sales

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Homes and buildings

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September 24, 2024

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

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

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

Real Estate Giants Invest ₹10,000 Crore in Hotels

Commercial

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September 24, 2024

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Real Estate Giants Invest ₹10,000 Crore in Hotels

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

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

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

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

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

Blackstone’s Strategic Play in Snack Industry

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September 24, 2024

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Blackstone’s Strategic Play in Snack Industry

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

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

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

Bengaluru Flat Owners Cry Foul Over Property Rights

Bangalore

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September 24, 2024

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Bengaluru Flat Owners Cry Foul Over Property Rights

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

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

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

India’s Data Centres A $5.7 Billion Opportunity

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September 24, 2024

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India’s Data Centres A $5.7 Billion Opportunity

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

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

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

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

Anant Raj’s Rise in Delhi NCR Realty

Residential

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September 24, 2024

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

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

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

Karnataka Consumer Court Slams Builder

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Homes and buildings

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September 24, 2024

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

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

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

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

Raymond Realty’s New Era, Demerger Approved

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September 24, 2024

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Raymond Realty’s New Era, Demerger Approved

Raymond Ltd announced a significant restructuring move by approving the demerger of its real estate division, Raymond Realty Limited. This strategic decision is aimed at consolidating all real estate operations under a singular entity, enhancing the company’s appeal to new investors and strategic partners eager to explore growth opportunities in the sector.

Raymond, a well-known player in both the textile and real estate industries, plans to issue 6.65 crore shares of Raymond Realty, each with a face value of ₹10. Under the demerger scheme, shareholders of Raymond Ltd will receive one share of Raymond Realty for each share they hold, facilitating a smooth transfer of ownership without any cash considerations. This straightforward approach is designed to ensure an uncomplicated transition for shareholders. In its regulatory filing, Raymond Ltd articulated that the demerger is intended to harness the growth potential of the real estate segment and attract a fresh wave of investors. By consolidating its real estate operations into a dedicated entity, the company aims to sharpen its focus on a sector that has demonstrated substantial promise and expansion potential. This restructuring is expected to yield enhanced operational efficiencies and unlock shareholder value by delineating the real estate business from the textile division. With the real estate market evolving rapidly, Raymond Ltd’s initiative reflects its commitment to optimizing its business operations and tapping into high-growth segments.

Raymond Realty has been a vital contributor to the group’s overall portfolio, boasting several high-profile projects. The demerger is anticipated to bring heightened transparency and attract more focused investments, enabling accelerated growth and development within the real estate space. The decision underscores Raymond Ltd’s strategic intent to refine its corporate structure and amplify the value proposition for shareholders. As the real estate market continues to thrive, this move positions Raymond Realty to seize emerging opportunities, bolstered by increased investor confidence and strategic alliances. This demerger represents a pivotal step in Raymond Ltd’s journey towards operational streamlining, ensuring that Raymond Realty can pursue ambitious growth strategies as an independent entity. The seamless transfer of shares to existing shareholders exemplifies a shareholder-friendly approach, setting the stage for substantial future growth in the burgeoning real estate market.

Hyderabad’s Luxury Market Shines Bright

Hyderabad

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September 24, 2024

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Hyderabad, once overshadowed by traditional luxury hubs like Delhi and Mumbai, is rapidly emerging as a formidable player in India’s luxury market. Driven by a significant increase in high-net-worth individuals (HNWIs), the city is attracting the attention of global luxury brands and investors. The latest data from Hurun India reveals a remarkable surge in Hyderabad’s wealthy population.

In just a decade, the number of individuals on the Hurun Rich List has skyrocketed from three to 87. This year alone, Hyderabad welcomed 26 new entrants to the rich list, and 64 individuals experienced a significant increase in their wealth. This surge positions Hyderabad as a major contender in India’s luxury segment. Luxury brands are taking notice of this growing affluence. Renowned fashion designers Sabyasachi Mukherjee and Rahul Mishra have both announced plans to expand their retail presence in Hyderabad.

Mishra remarked, “2024 is an important year for the brand as we straddle growth and retail expansion.” The hospitality sector is also recognizing Hyderabad’s potential. Radisson Hotel Group, the third-largest hotel chain in India, chose Hyderabad for the debut of its luxury brand Radisson Collection, highlighting the city’s emerging status as a vibrant hub for luxury consumption. Industry insiders believe this trend will continue as more affluent individuals and billionaires emerge from Hyderabad. The city’s strategic positioning and growing wealth make it an attractive destination for luxury brands seeking to expand their footprint in India.

This trend is not limited to fashion and hospitality. Other luxury sectors, such as automobiles, real estate, and high-end services, are also expected to see increased activity in Hyderabad. As the city continues to grow economically, it is poised to become a significant center for luxury consumption in the country. The rise of Hyderabad as a luxury market is a testament to its economic growth and increasing prosperity. With a burgeoning rich list and a growing number of HNWIs, the city is set to redefine its status in India’s luxury landscape.

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