New CGDCR Set to Transform Gujarat’s Landscape

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October 8, 2024

New CGDCR Set to Transform Gujarat's Landscape

The Gujarat government is on the cusp of implementing significant revisions to the Comprehensive General Development Control Regulations (CGDCR), a move aimed at modernising the regulatory framework and stimulating growth in the real estate sector. As the state seeks to adapt to evolving market demands, these proposed changes could pave the way for a revitalised construction landscape.

The amendments under consideration include a range of enhancements designed to streamline and enhance building regulations. Key proposals feature tighter fire safety standards to ensure the security of future developments, alongside incentives aimed at promoting green buildings. These measures reflect a growing recognition of the importance of sustainability within the real estate sector, encouraging developers to integrate eco-friendly practices into their projects. Additionally, modifications to Floor Space Index (FSI) norms are proposed to optimise land use, enabling more efficient project planning and execution. The revisions could also facilitate conditional approvals for construction plans during the Non-Agricultural (NA) process, significantly expediting project timelines and reducing bureaucratic delays. This is particularly crucial for the information technology (IT) sector and public utility projects, which are essential for sustaining Gujarat’s economic growth. The CGDCR serves as a pivotal framework governing construction and development practices in the state. The anticipated reforms not only aim to address current regulatory challenges but also signify the government’s commitment to fostering a dynamic, environmentally conscious real estate market. By introducing stricter fire safety measures, the authorities aim to enhance the resilience of new developments against potential hazards.

The anticipated incentives for green buildings could lead to a substantial increase in sustainable constructions, aligning with global trends towards environmental responsibility. As other states grapple with outdated regulations, Gujarat’s proactive stance sets a commendable precedent. By creating a conducive environment for real estate investment and development, the overhaul of the CGDCR is expected to contribute significantly to the sustained expansion of the sector. In summary, this comprehensive review of regulations not only aims to foster growth but also aligns with broader sustainability goals. By prioritising safety, sustainability, and efficiency, Gujarat is poised to enhance its position as a leading destination for real estate investment, ensuring a brighter future for its industrial landscape.

Mumbai’s Real Estate Market Set to Surpass ₹2 Lakh Crore by 2030

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October 8, 2024

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Mumbai’s Real Estate Market Set to Surpass ₹2 Lakh Crore by 2030

Mumbai’s residential real estate sector is on the brink of significant transformation, with projections indicating that the sales value will exceed ₹2 lakh crore by 2030. According to estimates from JLL, a global consultancy firm, this robust growth is driven by favourable market fundamentals and ongoing infrastructure developments. In 2023, the sales value of residential properties in Mumbai surpassed ₹1 lakh crore, with forecasts suggesting a rise to ₹1.35 lakh crore in 2024. This upward trajectory is largely attributed to critical projects such as the Mumbai Trans Harbour Link (MTHL) and new Metro lines, enhancing connectivity between the city and its suburbs, including Thane and Navi Mumbai.

As these transit projects commence, they are poised to catalyse growth in Mumbai’s peripheral areas, leading to the emergence of new residential hubs. By 2030, these developments are expected to revitalise existing localities, thereby facilitating new project launches and increasing sales volumes, particularly in Navi Mumbai and the Western Suburbs. The demand for housing in these regions is already palpable, supported by improved accessibility and the availability of land for new developments.

The JLL report highlights a remarkable improvement in inventory turnover, evidenced by a significant reduction in the Months to Sell (MTS) metric, which has decreased from 58 months in March 2022 to 31 months by June 2024. This indicates a faster absorption of residential units in the market, a clear sign of heightened demand. Furthermore, the momentum has shifted from Mumbai’s traditional southern regions to its northern and eastern suburbs, reflecting changing buyer preferences and evolving urban dynamics.

Sanand GIDC Faces Major Production Losses

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October 8, 2024

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Sanand GIDC Faces Major Production Losses

The Gujarat Industrial Development Corporation (GIDC) estate in Sanand is currently in the throes of a significant power crisis, exacerbated by recent heavy rainfall that has resulted in widespread outages. The adverse weather conditions have severely impacted over 100 industrial units, leading to production halts and substantial financial repercussions. On Tuesday, the Sanand GIDC experienced a catastrophic power supply failure due to the inundation of a crucial substation, which was overwhelmed by persistent downpours.

This flooding has disrupted power and water supply to around 300 factories in the region, creating a challenging environment for local businesses. As of Friday, efforts to restore normalcy remain ongoing, yet more than 100 factories continue to suffer from power outages. The estimated production loss at Sanand GIDC is around ₹100 crore per day, presenting a formidable challenge to the local industrial sector. Officials from the Sanand Industries Association (SIA) have reported that while local authorities are actively addressing the power supply issues, the inadequacy of existing infrastructure to manage water drainage has worsened the crisis. The SIA President has emphasised the urgent need for a dedicated stormwater drainage system at Sanand GIDC to prevent similar flooding incidents in the future. The lack of adequate water management infrastructure has emerged as a critical factor contributing to the ongoing disruptions. In contrast, other GIDC estates across Gujarat, including those in Vadodara, are showing signs of recovery.

According to a former president of the Gujarat Chamber of Commerce and Industry (GCCI), most GIDC estates in Vadodara are resuming operations more swiftly than initially expected. Many units in Vadodara and Rajkot are currently operating at approximately 50% capacity, while facilities in Porbandar and Dwarka remain largely idle. This contrast highlights the urgent need for improved infrastructure to manage heavy rainfall effectively and ensure the resilience of industrial operations during adverse weather conditions. Restoring full operational capacity at Sanand GIDC is crucial to mitigate the economic impact on the region’s industrial output. As the industrial landscape evolves, the need for sustainable infrastructure becomes increasingly apparent. Implementing efficient drainage systems and enhancing the resilience of power supply networks will not only support current operations but also safeguard against future disruptions, aligning with broader sustainability goals in industrial management.

Real Estate Surges in Hurun India Rich List 2024

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October 8, 2024

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Real Estate Surges in Hurun India Rich List 2024

The recently released Hurun India Rich List 2024 highlights a significant shift in the Indian economic landscape, with the real estate sector climbing to fifth place, boasting 91 entrants—42 of whom are new to the list. This remarkable surge underscores the sector’s increasing importance, fuelled by robust demand and substantial capital appreciation. The evolving dynamics of urbanisation, coupled with a burgeoning middle class, continue to drive growth in this segment, reflecting the optimistic trajectory of the Indian economy.

Leading the real estate charge is Rajiv Singh, Chairman of DLF, who stands as the wealthiest developer in India, securing the 14th position overall with a net worth surpassing ₹1.37 lakh crore. Following him is Mangat Prabhat Lodha from Macrotech Developers at 17th, with a wealth of over ₹1.03 lakh crore. Chandru Raheja of the K Raheja Group occupies the third spot among property tycoons, ranking 44th with ₹51,000 crore. The significant climb in wealth for Irfan Razack of Prestige Estate Projects is noteworthy, as he jumped 278 ranks to secure the 51st position, driven by an astonishing 178% increase in wealth over the past year, highlighting the buoyancy of the real estate market.

This year’s rich list showcases not only established magnates but also reflects the changing economic realities, with the real estate industry witnessing a surge from the ninth position in 2023 to fifth in 2024. The growth narrative is reinforced by a forecasted rise in residential sales by 10-12% for FY 2024-25, backed by an anticipated influx of around $4 billion in foreign investments. A Hurun India spokesperson noted that the middle class is expected to swell to 547 million by 2030, further solidifying the sector’s potential for growth.

Industry Leaders Gather for NICMAR Conference

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October 8, 2024

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Industry Leaders Gather for NICMAR Conference

The National Institute of Construction Management and Research (NICMAR) University recently hosted its eighth International Conference on Construction, Real Estate, Infrastructure, and Project Management (ICCRIP) on August 23-24, 2024. Held at NICMAR’s Pune campus, this biennial conference has solidified its reputation as a premier forum for industry professionals and academics alike, fostering dialogue on crucial advancements in construction and real estate sectors.

This year’s conference focused on six pivotal themes: research papers, case studies, practitioners’ perspectives, a doctoral colloquium, a hackathon, and an editors’ conclave. Each segment was meticulously designed to stimulate interactive discussions and showcase innovations relevant to the themes of Construction, Real Estate, Infrastructure, and Project Management (CRIP). The diverse range of topics facilitated a rich exchange of ideas, ensuring that participants were not only informed but also inspired. ICCRIP 2024 attracted an impressive turnout of over a thousand participants, comprising leading industrialists, eminent academics, research scholars, and industry professionals. Notably, engineering and architecture students from various national and international institutions also participated, reflecting the conference’s inclusive approach to fostering the next generation of industry leaders. A staggering 465 papers were submitted for consideration, with 250 selected for presentation, demonstrating the conference’s robust scholarly engagement. The accepted papers spanned a wide array of subjects, mirroring current trends and anticipating future directions in construction and real estate management.

The enthusiasm and engagement witnessed at ICCRIP 2024 signify a growing recognition of the importance of collaborative platforms for knowledge advancement in these fields. As the industry navigates evolving challenges, such conferences serve as crucial venues for dialogue and innovation, reinforcing the value of research-driven practices. From a sustainability perspective, the conference also underscored the necessity of integrating sustainable practices in construction and real estate development. Discussions centred around eco-friendly materials, energy-efficient designs, and sustainable project management strategies. By prioritising sustainability, the industry can not only address environmental concerns but also meet the growing demand for responsible construction practices among consumers and investors. In summary, ICCRIP 2024 reaffirmed NICMAR’s pivotal role in shaping the future of construction and real estate. As the industry continues to evolve, such gatherings are essential in fostering collaboration, driving research, and encouraging sustainable practices that will define the landscape for years to come.

Kartik Aaryan Leases Luxury Juhu Apartment for ₹4.5 Lakh

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October 8, 2024

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Kartik Aaryan Leases Luxury Juhu Apartment for ₹4.5 Lakh

Bollywood actor Kartik Aaryan has recently leased his opulent apartment in Juhu, Mumbai, for a monthly rental fee of ₹4.5 lakh. The 1,912-square-foot residence is located in the Siddhi Vinayak Building within the Presidency Co-operative Society and was jointly acquired by Aaryan and his mother, Mala Tiwari, for ₹17.5 crore earlier this year. This transaction illustrates the rising trend of high-value property investments by celebrities in Mumbai’s competitive real estate market.

The lease agreement was officially registered on 28th August, with a stamp duty of ₹42,500 attached. Aaryan’s acquisition included two dedicated parking spaces, alongside significant financial commitments, such as a stamp duty of ₹1.05 crore and a registration fee of ₹30,000 at the time of purchase. The formal registration of the property took place on 30th June 2023. The apartment’s rental yield stands at a noteworthy 3.1%, which reflects a healthy return for properties in Mumbai’s luxury segment, where rental yields are often a key consideration for investors.

This latest lease adds to Aaryan’s expanding real estate portfolio, which encompasses both residential and commercial properties. Notably, in 2022, he acquired a 2,099-square-foot office space in the prestigious Signature Tower on Veera Desai Road for ₹10 crore, marking his strategic entry into the commercial sector. Aaryan’s mother, Mala Tiwari, also had a noteworthy rental experience; she previously rented a 3,681-square-foot apartment from actor Shahid Kapoor for ₹7.5 lakh per month, underpinned by a substantial security deposit of ₹45 lakh.

Lucknow Reigns Supreme in Tier 2 Mall Space

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October 8, 2024

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Lucknow Reigns Supreme in Tier 2 Mall Space

Lucknow has cemented its position as a dominant force in the Tier 2 retail landscape, boasting the highest gross leasable area (GLA) of shopping centers among 21 cities in India. This notable achievement is highlighted in a recent research report by Knight Frank India. The comprehensive study, which analyzed 340 shopping centers across 29 cities, revealed that Lucknow has a substantial GLA of 5.7 million square feet for its shopping centers.

This figure surpasses the operational shopping center stock of other prominent cities like Kolkata and Ahmedabad as of 2023, placing Lucknow at a significant 7th position nationally in terms of shopping center stock. Within the context of the 21 Tier 2 cities surveyed, Lucknow stands out with an impressive 18.4% share of the total 30.8 million square feet of GLA. This highlights the city’s robust retail infrastructure and its pivotal role in the regional retail landscape. Knight Frank India’s analysis indicates that Lucknow has achieved a notable shopping center density of 1,439 square feet per 1,000 residents. The city’s operational shopping centers host over 580 retail outlets, with a notable proportion—about 50%—comprising Indian-origin brands.

International brands also constitute a significant portion, reflecting Lucknow’s growing appeal as a retail destination. A spokesperson from Knight Frank India’s Retail Agency commented, “As the capital of Uttar Pradesh, Lucknow is instrumental in driving economic activity within the state. The burgeoning demand for retail real estate in the city is a reflection of its growing aspirational population. Lucknow’s substantial shopping center density is indicative of its advanced commercial infrastructure, which effectively caters to urban consumer needs.” Lucknow’s dominance in the Tier 2 mall space is a testament to its thriving retail landscape and growing consumer demand. The city’s robust infrastructure, coupled with its strategic location, has made it an attractive destination for retailers and shoppers alike.

Dharavi Redevelopment Project Set to Begin Construction in 2025

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October 8, 2024

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Dharavi Redevelopment Project Set to Begin Construction in 2025

The much-anticipated Dharavi Redevelopment Project (DRP) is on track to commence construction within the next six to eight months, as confirmed by SVR Srinivas, CEO of the project. Speaking at the Real Estate Forum 2024, organised by the National Real Estate Development Council (NAREDCO), Srinivas noted that the comprehensive survey of Dharavi’s tenements is expected to conclude by March 2025. This project is seen as a transformative effort aimed at revitalising one of Asia’s largest slum clusters and improving living conditions for its residents.

The initial phase of construction will focus on the railway land within Dharavi, marking a crucial milestone in this significant urban renewal initiative. “We have thus far surveyed around 10,000 tenements, both eligible and ineligible, although a complete tally will only be available after the survey concludes,” Srinivas remarked. The project is characterised by its inclusive nature, as both eligible and ineligible tenement dwellers will be accommodated in new housing solutions. However, the requirement for approximately 550 acres of land to support the ineligible tenements is still pending allocation, highlighting ongoing challenges in the project’s implementation.

A joint venture between the Government of Maharashtra and the Adani Group, the Dharavi Redevelopment Project Pvt Ltd (DRPPL) is undertaking extensive data collection to gather information about the vast number of informal residents in the area. This redevelopment initiative is not only one of the largest urban rejuvenation projects globally but also a pivotal step towards a slum-free Mumbai. The Adani Group’s successful bid in November 2022, which included an initial investment of ₹5,069 crore towards a total estimated cost exceeding ₹20,000 crore, underscores the project’s financial significance.

IBM Signs Major Office Lease in Bengaluru

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October 8, 2024

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IBM Signs Major Office Lease in Bengaluru

IBM India Private Ltd has announced a major real estate deal, leasing an impressive 8.3 lakh square feet of office space in the esteemed Embassy GolfLinks Business Park. This substantial lease agreement, which is set to take effect in January 2025, spans a decade and features a starting monthly rent of ₹140 per square foot. Notably, the agreement includes a six-month rent-free period, providing IBM with a valuable opportunity for initial cost management as it transitions into the new space.

The office space will occupy multiple floors across Blocks A, C, and D of the business park, specifically in the buildings known as Cypress Point, Pacific Dunes, and Peach Tree. Located in the vibrant Domlur area, these facilities are celebrated for their high-quality office environments, catering to the demands of modern businesses. This move signals IBM’s ongoing commitment to reinforcing its footprint in India, particularly in Bengaluru, which has established itself as a pivotal technology and business hub. This transaction is emblematic of a broader trend where major global corporations are increasingly investing in significant office spaces within key Indian cities. The burgeoning demand for technology and business services has propelled Bengaluru to the forefront of this expansion. The strategic nature of the leased space is anticipated to bolster IBM’s operational capabilities, enhancing its capacity to serve its growing client base in the region.

Moreover, this lease reflects a shift in corporate real estate strategies, with companies opting for long-term commitments in prime locations to accommodate expanding operations. As international businesses flock to Bengaluru, such high-profile agreements underscore the city’s robust commercial real estate market and its vital position within the global business ecosystem. From a sustainability perspective, the choice of a large, modern office space in a prime location aligns with sustainable urban development goals. By consolidating operations in a centralised hub, IBM is likely to reduce its carbon footprint and enhance operational efficiencies. This focus on sustainability not only addresses corporate responsibility but also aligns with the growing expectations of consumers and investors for environmentally conscious business practices. As IBM prepares to establish its new office, the implications for both the company and the broader Bengaluru market are significant. The long-term investment reflects confidence in the region’s economic resilience and capacity for innovation, setting the stage for future growth in the technology sector.

PMAY-U 2.0 Receives Warm Welcome from Real Estate Sector

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October 8, 2024

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PMAY-U 2.0 Receives Warm Welcome from Real Estate Sector

The Union Cabinet’s recent approval of the Pradhan Mantri Awas Yojana-Urban (PMAY-U) 2.0 has been met with widespread enthusiasm from the real estate sector in Mumbai. This enhanced iteration of the scheme is designed to provide financial assistance to an estimated one crore urban poor and middle-class families over the next five years, facilitating their ability to construct, purchase, or rent homes at affordable rates.

With a total investment of INR 10 lakh crore, including a government contribution of INR 2.30 lakh crore, PMAY-U 2.0 aims to significantly uplift the quality of life for millions of Indians. The scheme builds on the achievements of its predecessor, which has already approved 1.18 crore houses and delivered over 85.5 lakh homes to beneficiaries throughout urban India. The renewed focus of PMAY-U 2.0 includes targeted support for marginalized groups such as slum dwellers, SC/ST communities, minorities, widows, persons with disabilities, and other disadvantaged sectors. Additionally, specific attention will be given to safai karmacharis, street vendors, artisans, anganwadi workers, and residents of slums and chawls.

The real estate sector has lauded the initiative, recognizing its potential to address the housing needs of a significant portion of the urban population. A spokesperson of NAREDCO Maharashtra commended the scheme’s ambitious target and the substantial government investment, highlighting its positive impact on both living standards and the real estate sector. Similarly, spokespersons from CREDAI-MCHI and Tridhaatu Realty expressed their support for PMAY-U 2.0, emphasizing its potential to reshape the urban housing landscape. The comprehensive financial support of INR 2.30 lakh crore underscores the government’s robust commitment to alleviating the housing deficit and improving living conditions across urban areas.

A representative from The Mentors Real Estate Advisory Pvt Ltd noted that the initiative’s focus on affordability is expected to stimulate demand within the real estate sector, encouraging innovative housing solutions and fostering collaborative efforts between the public and private sectors. Overall, the approval of PMAY-U 2.0 has been welcomed by the real estate sector in Mumbai, which views it as a significant step towards achieving comprehensive housing for all in India. The scheme’s focus on affordability, coupled with the substantial government investment, is expected to drive demand, promote sustainable urban development, and improve the quality of life for millions of citizens.

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