CREDAI Forecasts 25% Growth in Chennai Apartment Sales for 2025

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December 24, 2024

CREDAI Forecasts Growth in Chennai Apartment Sales for 2025

Chennai’s real estate market is gearing up for a promising year ahead. The Confederation of Real Estate Developers’ Associations of India (CREDAI) has projected a significant 25% growth in apartment sales for the city in 2025. The prediction comes as the residential market continues to show signs of resilience, with new project launches expected to rise by 20%.

CREDAI Chennai president A Mohamed Ali expressed confidence in the market’s performance, attributing the positive outlook to the robust sales momentum during the festive season. This surge in buyer sentiment is expected to carry over into 2025, propelling the market forward. “The anticipated growth in sales and project launches underscores the resilience of the Chennai residential sector, which is set to conclude the year on a high note,” he stated. According to Mohamed Ali, the fourth quarter of 2024 is projected to witness a 15%-20% growth in apartment sales compared to previous quarters. New project launches are also expected to grow by 10%-15%. This trend is expected to continue into 2025, with sales increasing by 20%-25% and new launches growing by 15%-20%, particularly in emerging areas benefiting from enhanced infrastructure and urban expansion.

In 2024, South Chennai led the way in residential demand, with areas like Medavakkam, Tambaram, Velachery, and Porur seeing a surge in sales. The improved infrastructure in these regions has made them increasingly attractive to buyers. However, demand is also gaining ground in North Chennai, especially in areas such as Manali and Korukkupet, thanks to new development projects. Central Chennai’s popular neighborhoods like T Nagar, Nungambakkam, and Chetpet continue to attract buyers due to their proximity to commercial hubs and lifestyle amenities. Meanwhile, areas in Western Chennai, including Ambattur and Avadi, have gained traction for their affordability and better connectivity, appealing to buyers seeking value for money.

To sustain this growth, Mohamed Ali urged the government to streamline approval processes and support utility providers such as TANGEDCO. He also suggested that policy measures promoting inclusivity, like stamp duty discounts for women homebuyers (similar to Maharashtra’s successful initiative), could further enhance affordability and improve buyer sentiment. Chennai’s residential real estate market is on an upward trajectory, with projections for strong growth in apartment sales and new project launches in 2025. The city’s appeal, coupled with strategic infrastructure improvements and favorable policies, makes it an attractive destination for homebuyers and investors alike.

Mitra Investment Partners Acquires Thornapple Self Storage

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December 24, 2024

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Mitra Investment Partners Acquires Thornapple Self Storage

Mitra Investment Partners, a rising player in private real estate, has made a significant move by acquiring Thornapple Self Storage in Middleville, Michigan. This state-of-the-art facility, built in 2023, enhances Mitra’s Diversified Fund I portfolio and solidifies its position in identifying high-potential investments. The acquisition was structured uniquely through a master lease agreement, allowing Mitra to lease the property for a year before finalizing the purchase. This innovative approach minimizes initial risks while evaluating the property’s performance, reflecting a forward-thinking strategy in real estate. Thornapple Self Storage is distinguished by its advanced security systems and efficient design, catering to modern consumer demands for convenience and quality.

Praveen Reddy, Co-Founder of Mitra Investment Partners, highlighted the strategic nature of the acquisition, which aligns with the firm’s mission to create value for both investors and sellers. Sumeet Patel, his partner, expressed satisfaction with the first year of operations under their management company, Forward Storage, which allowed them to refine leasing strategies and confirm the facility’s market potential. Mitra’s approach marks a shift in real estate transactions, with a growing trend toward innovative deal structures that balance risk and reward. The acquisition not only reinforces the firm’s reputation but also positions Mitra for continued growth, potentially expanding into other real estate sectors aligned with evolving market trends. This move exemplifies Mitra Investment Partners’ commitment to shaping the future of real estate investment by blending innovation with operational excellence.

Bengaluru to Lead India’s Office Leasing Surge in 2024

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December 24, 2024

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Bengaluru to Lead India’s Office Leasing Surge in 2024

Bengaluru is set to lead India’s office space leasing boom in 2024, with an unprecedented absorption of 21.7 million square feet, representing a remarkable 40% year-on-year growth, according to the latest report by real estate consultancy firm Colliers. This milestone highlights Bengaluru’s position as a key hub for business expansion, innovation, and talent attraction.

The top six cities in India are collectively expected to achieve 66.4 million square feet of office leasing activity in 2024, marking a robust 14% annual increase. Alongside Bengaluru, Hyderabad and Mumbai are forecast to witness significant growth, with projected leasing volumes of 12.5 million and 10.0 million square feet, respectively. Both cities are set to record double-digit demand growth for the first time, underlining the sustained appetite for high-quality office spaces in India’s metropolitan markets.

Arpit Mehrotra, Managing Director of Office Services at Colliers India, highlighted the resilience of India’s office market:
“Grade A office demand has broken all records, reaching 66.4 million square feet of leasing activity in 2024. With more than 10 million square feet absorbed annually in three major cities, and new supply exceeding 50 million square feet, vacancy rates have remained stable. This strong momentum is likely to continue, setting a new benchmark for annual demand at over 60 million square feet in the coming years.”

Behind the numbers is a human story of a vibrant job market and renewed corporate confidence. Bengaluru, often called India’s Silicon Valley, continues to attract multinational companies, start-ups, and tech giants alike. The rise in office leasing reflects not only economic growth but also the city’s evolving infrastructure and appeal as a workplace destination.

The report also underscores the ongoing shift towards Grade A office spaces, driven by organisations prioritising employee-centric designs and sustainable infrastructure. This trend is expected to elevate leasing activities across other metropolitan areas, further stabilising India’s commercial real estate market at new heights.

As businesses reimagine workspaces for a dynamic future, Bengaluru’s record-breaking performance sets the tone for India’s office leasing market, making 2024 a landmark year for the industry.

Oberoi Realty to Build 150 Luxury Villas and Resort in Alibaug

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December 24, 2024

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Oberoi Realty to Build 150 Luxury Villas and Resort in Alibaug

Oberoi Realty, known for its luxury real estate developments, has secured a deal to develop a vast 81.05-acre plot of land in the scenic coastal village of Tekali, Alibaug. The project, aimed at meeting the growing demand for high-end residential and leisure properties, will consist of both an exclusive luxury resort and a collection of branded residential villas.

Alibaug, a coastal town near Mumbai, has become increasingly popular among affluent buyers seeking second homes or luxury retreats. Its proximity to the city, combined with its serene environment, has made it an attractive destination for those looking to escape the urban hustle. Oberoi Realty’s development is expected to capitalize on this trend by offering a combination of luxury and privacy in a tranquil setting. The first component of the project will be a luxury star hotel and resort, which will occupy approximately 8.6 acres of the total land area. The resort will feature a range of world-class amenities, including luxury accommodations, spa services, fine dining, and premium recreational facilities, all designed to cater to affluent travelers seeking an exclusive experience. The hotel will utilize a Floor Space Index (FSI) of around 30,000 square meters, ensuring ample space for top-tier resort features.

The remaining 72.45 acres will be dedicated to the development of approximately 150 fully serviced, branded residential villas. These villas will be designed with high-net-worth individuals in mind and will offer large, luxurious homes equipped with state-of-the-art facilities. The villas will occupy around 1,20,000 square meters of FSI, offering expansive spaces and privacy, ideal for those desiring a retreat away from the city. The project will follow a revenue-sharing model with the landowners, wherein they will receive compensation based on the profits generated from the residential component of the development. This arrangement ensures a flexible and mutually beneficial partnership between Oberoi Realty and the landowners. With its luxurious offerings, Oberoi Realty’s development is poised to further elevate Alibaug’s status as a premium destination for high-end living. The project is expected to draw significant interest from both investors and luxury homebuyers, contributing to the transformation of the region into a hub for exclusive residential and leisure developments.

BDA to Develop 50,000 Residential Sites Along Bengaluru’s PRR-2

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December 24, 2024

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BDA to Develop 50,000 Residential Sites Along Bengaluru’s PRR-2

The Bengaluru Development Authority (BDA) is set to embark on an ambitious project to develop six residential layouts with a total of 50,000 sites along the proposed Peripheral Ring Road (PRR)-2. This road, designed to link Hosur Road to Bengaluru-Mysuru Road, will pass through key areas such as Bannerghatta and Kanakapura roads. This development is part of BDA’s long-term plans to address Bengaluru’s growing housing demand and improve urban connectivity.

According to BDA commissioner Jayaram N, the high cost of acquiring land has been a major challenge for the authority. “The cost of acquiring land is very high, and our land acquisition act is not very compensation-friendly,” he explained. To navigate these challenges, BDA has adopted a public-private partnership (PPP) model for the project. This model aims to ensure fair compensation for farmers who will be providing land for the development. The project will require the acquisition of approximately 3,000 hectares of land, including both government and private land. However, the exact compensation rates for the landowners have not yet been finalized. As part of the compensation strategy, farmers providing land will receive plots in the same layouts they contribute to, following a 40:60 ratio for compensation.

Currently, BDA is in the preliminary stages of identifying the required land, with surveys and assessments underway. Special teams led by land acquisition officers are gathering essential details about landholders and other relevant issues. The BDA is also working to ensure that the land acquisition process is smooth and fair for all involved. PRR-2 is one of the two key legs of the Bengaluru Business Corridor, with the other leg, PRR-1, planned to connect Tumakuru Road to Hosur Road. The 30-kilometer-long PRR-2 will be flanked by commercial plots extending 24 meters on either side, which will help create a vibrant commercial ecosystem alongside the residential development. The BDA has stated that the draft notification for land acquisition for PRR-2 is already prepared. The process of land acquisition is expected to be completed in the next 6-8 months, with the entire project, including the construction of the road and associated layouts, set for completion within two years. This project is expected to meet the growing demand for residential plots in Bengaluru while addressing infrastructure challenges. With a population of over 12 million, the city is grappling with a housing crisis, and the development of new layouts along PRR-2 is a crucial step in easing the pressure.

AI and automation are addressing labour challenges in real estate

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December 24, 2024

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AI and automation are addressing labour challenges in real estate

The Indian real estate sector is undergoing a paradigm shift, driven by the integration of artificial intelligence (AI) and automation. As the industry stands on the cusp of the fourth industrial revolution, these cutting-edge technologies offer transformative solutions to long-standing labour management challenges, which have historically impeded productivity and project timelines. Labour shortages, inefficiencies, and safety issues are now being addressed through innovative AI tools and automated systems, ushering in a new era of efficiency and growth.

One of the most impactful applications of AI is predictive analytics, which enables real estate developers to harness vast datasets for strategic decision-making. This technology empowers stakeholders to anticipate market trends, analyse investment opportunities, and tailor projects to customer preferences. Predictive models also mitigate risks by guiding developers on demand forecasts, ensuring optimal resource allocation, and enhancing project execution. For instance, AI-driven systems help optimise construction timelines and reduce errors, offering developers a competitive edge.

From a sustainability perspective, AI-powered drones and automation tools are revolutionising construction site management. These technologies enable real-time monitoring of worker safety, productivity, and environmental compliance, ensuring adherence to sustainable practices. Additionally, automation reduces wastage by streamlining resource utilisation and minimising errors. Energy-efficient systems, keyless entry, and smart home technologies further highlight the industry’s commitment to eco-conscious development, aligning with the aspirations of environmentally aware homebuyers.

Beyond operational efficiency, AI and automation are reshaping urban landscapes by democratising access to advanced tools for smaller developers, brokers, and agents. This technological inclusivity fosters healthy competition and promotes smarter, more sustainable communities. By addressing labour challenges and enhancing customer experiences, AI and automation are not just resolving present issues but also laying the foundation for future-ready cities that blend innovation, safety, and sustainability seamlessly.

Oyo’s $525 million acquisition of G6 Hospitality strengthens its North American presence

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December 24, 2024

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Oyo’s $525 million acquisition of G6 Hospitality strengthens its North American presence

Hospitality major Oyo has successfully acquired G6 Hospitality, the parent company of Motel 6 and Studio 6 brands, for $525 million. This strategic move adds approximately 1,500 franchised hotels across the US and Canada to Oyo’s burgeoning portfolio, strengthening its foothold in North America. The acquisition comes at a pivotal time for Oyo, as its US operations show promising growth with a presence in 35 states and nearly 400 properties since its 2019 launch.

This acquisition is projected to significantly enhance Oyo’s financial performance. By FY26, the company anticipates its earnings before interest, taxes, depreciation, and amortisation (Ebitda) to surpass ₹2,000 crore. Motel 6 alone is expected to contribute ₹630 crore to Ebitda within the first year of integration. Additionally, the combined entity is forecasted to generate a gross booking value of approximately $3 billion, with G6 Hospitality accounting for $1.7 billion. Oyo’s success in Europe has provided a roadmap for leveraging strategic synergies, ensuring this acquisition drives value creation.

From a sustainability angle, this move underscores Oyo’s commitment to optimising resources and creating operational efficiencies across its expanding global footprint. By integrating sustainable practices and technologies, Oyo aims to set a benchmark for environmentally conscious hospitality. The company’s focus on energy efficiency and waste management in existing and new properties aligns with its broader ESG goals.

This acquisition also highlights broader urban and civic implications. The influx of hospitality investments in North America is expected to boost local economies, create employment opportunities, and improve tourism infrastructure. While Oyo’s valuation currently stands at $4.6 billion, significantly lower than its peak $9 billion valuation in 2021, the acquisition positions the company for long-term growth and resilience in the competitive global hospitality sector.

Chipi Airport revolutionises Sindhudurg’s real estate with improved connectivity

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December 24, 2024

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Chipi Airport revolutionises Sindhudurg’s real estate with improved connectivity

The Chipi Airport, inaugurated in October 2021, has sparked a transformative wave in Sindhudurg’s real estate market. Strategically located in the Konkan region of Maharashtra, the airport enhances accessibility to this picturesque coastal district, bordered by Goa, Raigad, and Ratnagiri. With improved connectivity, areas such as Malvan, Vengurla, and Sasoli are emerging as promising investment hotspots, attracting developers and homebuyers alike. Sindhudurg’s serene beaches, verdant hillocks, and stunning Western Ghats views make it a natural haven, now poised for urban and economic growth.

Historically a weekend destination, Sindhudurg is now witnessing a surge in demand for residential and commercial properties. The enhanced connectivity brought by the airport is a game-changer, allowing quicker access for tourists, investors, and business professionals. According to a joint report by Axon Developers and 360 Realtors, property prices in the region have seen a steady rise since the airport’s opening, with developers introducing premium projects to meet growing interest. The integration of modern infrastructure with Sindhudurg’s natural beauty offers a unique blend of serenity and development.

From a sustainability standpoint, the development of Sindhudurg’s real estate sector offers opportunities to integrate eco-friendly practices. Builders are now focusing on green architecture, renewable energy solutions, and rainwater harvesting systems, ensuring that the region’s ecological balance is maintained amid growth. The government and private players must also collaborate to promote sustainable tourism and responsible construction, safeguarding the pristine charm of the Konkan coast.

Civic and urban challenges, however, remain. The influx of real estate activity has highlighted the need for better infrastructure, including roads, public utilities, and waste management systems. Addressing these issues proactively will ensure Sindhudurg’s urbanisation benefits its residents while preserving its natural heritage. Chipi Airport is not just a gateway to Sindhudurg; it is a catalyst for holistic regional development.

India’s Residential Real Estate Shines in 2024, but Affordable Housing Faces Challenges

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December 24, 2024

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India’s Residential Real Estate Shines in 2024, but Affordable Housing Faces Challenges

India’s residential real estate market celebrated a stellar 2024, with pre-sales across the top seven cities projected to touch ₹5.1 lakh crore. High demand in the premium and luxury segments has driven a remarkable 10-11% increase in home prices. However, growth in the affordable and mid-income housing segments remains sluggish, raising concerns for 2025. Analysts attribute the challenges to persistent inflation and elevated interest rates, which have disproportionately impacted first-time homebuyers. Despite significant launches and rapid sales in luxury housing, affordable housing appears to be losing its footing, with a recalibration in government policies urgently needed.

Luxury housing stole the spotlight in 2024, driven by record-breaking launches by developers like DLF, Prestige Estates, and Sobha Ltd. Projects such as DLF’s Privana West sold out within days, reflecting surging demand from high-net-worth individuals (HNIs) and non-resident Indians (NRIs). The Mumbai Metropolitan Region (MMR) saw heightened interest from developers traditionally rooted in Delhi NCR and Bengaluru, fostering inter-city competition. Developers like Macrotech and Tribeca are also planning launches in emerging cities, targeting aspirational buyers with cutting-edge technology and world-class amenities.

Sustainability is increasingly becoming a priority for real estate developers. Green building certifications, sustainable materials, and renewable energy integrations are now central to new project launches. The rise of PropTech, which leverages AI and data-driven solutions for smarter infrastructure, is reshaping urban housing to align with environmental goals. As developers expand into newer regions, the integration of sustainability-focused practices could redefine India’s urban housing landscape, benefiting both the environment and communities.

Yet, civic challenges remain. Limited land accessibility and inflated costs hinder affordable housing growth, impacting potential homeowners with tighter budgets. Experts advocate for more tax incentives on homes priced below ₹45 lakh and accelerated infrastructure development to make land viable for affordable housing projects. Urban planners suggest integrated townships with better civic amenities could bridge the gap between demand and supply in this critical segment.

Bengaluru’s rental market stabilises as landlords reduce rents by 5%-10% amid a surge in new housing supply

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December 24, 2024

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Bengaluru’s rental market stabilises as landlords reduce rents by 5%-10% amid a surge in new housing supply

The Bengaluru real estate market is witnessing a shift as landlords begin to reduce rents by 5%–10% in prime localities. After experiencing steep hikes of up to 40% over the past two years, the rental market shows signs of stabilisation. Industry experts attribute this trend to a narrowing supply-demand gap, driven by an influx of new housing options. Localities like Koramangala, Whitefield, and Sarjapur Road, which previously led rental spikes, are now seeing moderated rents. For example, a 2BHK in BTM Layout that once cost ₹40,000 per month is now available for ₹35,000, offering tenants a welcome respite.

The year 2023 marked a surge in new housing developments in Bengaluru, with 16,537 home launches recorded between April and June, accounting for 21% of total residential launches across top Indian cities. Whitefield led the charge, representing 47% of the fresh supply and 57% of total sales in the same period. Other submarkets, including Hosur Road and Bellary Road, also contributed significantly. Between July and September, Bengaluru accounted for 17% of new housing launches in India, underscoring the city’s growing prominence as a residential hub.

From a sustainability perspective, the increase in housing supply is likely to benefit the city’s urban planning efforts by alleviating congestion in high-demand areas. New developments in the eastern IT corridor, such as Bagalur, offer affordable rental options like ₹27,000 for a 2BHK, reducing pressure on city centres. Experts believe that such distributed growth supports a balanced urban ecosystem and reduces over-reliance on established neighbourhoods.

Looking ahead, analysts predict a rental correction of 5%–10% by 2025, particularly in areas with abundant inventory, such as Whitefield and North Bengaluru. While demand remains robust, increased supply provides tenants with greater choice, fostering competition among landlords. This shift could encourage sustainable growth while addressing affordability concerns, reflecting a broader transformation in Bengaluru’s housing market.

CREDAI Forecasts Growth in Chennai Apartment Sales for 2025

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