Kreeva Targets Rs 6,000 Crore Revenue in Luxury Real Estate

Residential

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October 25, 2024

Kreeva Targets Rs 6,000 Crore Revenue in Luxury Real Estate

Kreeva, the real estate venture of Kanodia Group, has set an ambitious target of generating Rs 4,000-6,000 crore revenue from its three upcoming ultra-luxury projects in the National Capital Region (NCR). The company’s ambitious plans align with the growing demand for luxury housing in Delhi-NCR. Kanodia Group’s five-year strategy involves acquiring prime land in established sectors of Delhi-NCR, including Golf Course Road, Golf Course Extension Road, Southern Peripheral Road, South Delhi, and Noida Expressway.

This strategic focus reflects the company’s confidence in the potential of these areas to attract affluent buyers seeking exclusive and high-end living spaces. Gautam Kanodia, the founder of Kreeva and Kanodia Group, has expressed his optimism about the luxury housing market. He emphasized the company’s commitment to innovation, design excellence, and sustainability, aiming to set new benchmarks in the sector. Kreeva plans to launch at least one major project each year, catering to the discerning tastes of affluent buyers.

The company’s CEO highlighted the strategic focus on acquiring land in high-demand areas and leveraging state-of-the-art construction technologies. By doing so, Kreeva aims to deliver projects that not only meet but exceed market expectations. Kreeva’s ambitious plans reflect the growing demand for luxury housing in Delhi-NCR. As the region continues to develop and attract affluent individuals, the demand for premium residential properties is expected to remain strong. Kreeva’s strategic focus on prime locations and commitment to quality will undoubtedly position the company as a leading player in the luxury real estate market.

Festive Season Fuels Real Estate Demand

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Homes and buildings

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October 25, 2024

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The festive season in India has long been considered an auspicious time for real estate investments. This year, the confluence of favorable economic conditions and evolving buyer preferences has made homeownership an even more attractive proposition. The real estate market has witnessed a surge in activity during the festive season, driven by factors such as discounts, offers, and attractive payment plans.

The growing confidence of buyers and the positive economic backdrop have contributed to the sustained demand for properties. A significant trend observed this year is the rising demand for luxury homes. With higher disposable incomes and changing lifestyles, buyers are seeking larger, more aesthetically appealing residences that offer comfort, exclusivity, and world-class amenities. The luxury housing market has experienced substantial growth, particularly in cities like Mumbai, Delhi, and Bengaluru. The data indicates a strong preference for premium properties, with gated communities, integrated townships, and well-being facilities becoming increasingly sought after.

The combination of luxury, appreciation potential, and flexible payment options has made luxury real estate an attractive investment choice for both domestic and international buyers. Government policies promoting homeownership and favorable market conditions have further fueled the demand for real estate. Stable mortgage rates and easy financing options have made it easier for buyers to realize their homeownership dreams. Additionally, the government’s continued focus on affordable housing schemes and tax benefits has provided further incentives for property purchases.

The Reserve Bank of India’s efforts to maintain stable interest rates have instilled confidence in the market, making it an ideal time for homebuyers and investors. The combination of low interest rates, festive discounts, and favorable government policies has created a conducive environment for real estate transactions. The festive season of 2024 has witnessed a surge in real estate activity, driven by favorable economic conditions, evolving buyer preferences, and government support. The growing demand for luxury homes and the positive outlook for the market make homeownership an attractive investment choice.

Godrej Properties Reports 400% Surge in Q2 Net Profit

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Homes and buildings

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October 25, 2024

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Godrej Properties Reports 400% Surge in Q2 Net Profit

Godrej Properties, a prominent player in India’s real estate sector, has announced a remarkable 400% surge in its consolidated net profit for the September quarter, reporting ₹335 crore compared to ₹67 crore in the same period last year. This impressive financial turnaround, bolstered by a tax write-back of ₹169 crore, signals a robust recovery and renewed investor confidence in the company’s strategic direction.

In terms of operational achievements, Godrej Properties delivered a substantial 9.3 million square feet of space in the first half of FY25, with 6.6 million square feet completed in the second quarter alone. This accomplishment puts the company well on track to achieve its ambitious booking guidance of ₹27,000 crore for the fiscal year, having already secured ₹13,835 crore, which accounts for 51% of its target. Notably, this translates to achieving 62% of its projected 15 million square feet bookings, underscoring the company’s effective market engagement and demand responsiveness. Despite a slight decline of 2% in area sold during Q2 to 5.15 million square feet, the booking value rose by 3% to ₹5,198 crore, demonstrating a resilient market performance. Customer collections soared by 68% year-on-year, reaching an impressive ₹4,005 crore, while overall cash collections for the quarter hit ₹7,017 crore, representing 47% of the company’s annual guidance of ₹15,000 crore. This milestone marks the highest-ever collections recorded by Godrej Properties for both the September quarter and the first half of any financial year, reinforcing its operational strength.

The company’s commitment to sustainable growth is evident in its focus on environmentally conscious development practices. By integrating sustainable technologies and materials into its projects, Godrej Properties is not only catering to the increasing demand for eco-friendly living spaces but also contributing to a greener future. This resonates with the evolving consumer sentiment that prioritises sustainability alongside luxury and comfort in residential spaces. As the company continues to expand its portfolio, there is a palpable sense of optimism among investors and stakeholders. Many view Godrej Properties as a beacon of resilience in a recovering real estate market, where quality and sustainability are increasingly becoming the benchmarks for success. The company’s strategic vision aligns well with the aspirations of urban dwellers, who are seeking not just homes, but sustainable communities that enhance their quality of life.

Average Office Rents Surge Beyond Pre-Pandemic Levels in India

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Homes and buildings

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October 25, 2024

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Average Office Rents Surge Beyond Pre-Pandemic Levels in India

In a remarkable turnaround, average office rents across India’s six major markets—Delhi-NCR, Mumbai, Pune, Hyderabad, Chennai, and Bengaluru—have surpassed pre-pandemic levels for the first time in 2024. According to a report by Colliers, this upward trend marks the culmination of a swift recovery trajectory following a significant downturn during the pandemic years. After a period of subdued demand in 2020 and 2021, leasing activity rebounded fully by 2022, with each subsequent year achieving record highs in Grade A office space uptake across the country.

Hyderabad and Pune were early achievers, reaching pre-pandemic rental levels in 2022. Bengaluru and Chennai followed suit in 2023, while Delhi-NCR and Mumbai completed their recovery in 2024. The report highlights that although Delhi-NCR was among the last to recover, it has recorded the highest rental growth compared to 2019, with an impressive rise of about 8%. Pune mirrored this growth, while Mumbai and Chennai experienced increases of 5-6% over the same period. Notably, prime micro-markets in Delhi-NCR, such as Golf Course Extension Road and Cyber City, witnessed rental surges of up to 25% in the last five years, underscoring the robust demand in these locations.

The demand-supply dynamics present an interesting picture. While Mumbai has seen a substantial decrease in vacancy levels since 2019, reaching approximately 20%, Hyderabad, typically a high-supply market, continues to grapple with a 25% vacancy rate. This imbalance reflects the differing recovery patterns across the markets. As occupancy rates stabilise, the demand for flexible and modern office spaces is anticipated to rise, with annual space take-up projected to reach around 60 million square feet in the medium term.

From a sustainability standpoint, the resurgence in the office market underscores a renewed commitment to eco-friendly practices in commercial real estate. The construction of energy-efficient buildings and the integration of sustainable design elements have become focal points for developers and occupiers alike. This shift not only caters to the evolving needs of tenants but also addresses civic concerns regarding urban development. By prioritising sustainability, cities can create healthier work environments while contributing to their long-term resilience. The ongoing growth in office space leasing not only reflects economic recovery but also highlights a collective move towards building smarter, more sustainable urban landscapes.

Guardians Real Estate Advisory Breaks INR 350 Crore Sales Barrier

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Homes and buildings

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October 25, 2024

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Guardians Real Estate Advisory Breaks INR 350 Crore Sales Barrier

The Guardians Real Estate Advisory has once again demonstrated its prowess in the Indian real estate market, achieving a remarkable milestone with over INR 350 crore in sales during the Dussehra weekend. This achievement follows the company’s record-breaking performance during Akshaya Tritiya, cementing its position as a leading player in the industry.

Founded in 2016, The Guardians Real Estate Advisory offers a comprehensive range of real estate services, including strategic advisory, project management, transactions, and marketing. With a strong presence in multiple cities across India and Dubai, the company has established itself as a trusted partner for developers and investors. Dussehra, a festival celebrated for its themes of victory and renewal, is considered an auspicious time for real estate investments. The festival’s symbolism of good over evil inspires many to embrace new beginnings, making it an ideal time for property purchases.

The Guardians Real Estate Advisory’s success during Dussehra is a testament to the company’s ability to capitalize on favorable market conditions and offer exceptional value to its clients. The strong response from buyers reflects the growing trust and confidence in the company’s expertise and services. Jayesh Rathod, Director and Co-founder of The Guardians Real Estate Advisory, expressed his delight at the company’s achievement. He emphasized the significance of festivals in India for home purchases and highlighted the company’s commitment to delivering quality, trust, and excellence to its clients.

The Guardians Real Estate Advisory’s consistent success throughout the festive season is a testament to its strong market position and ability to attract and retain clients. The company’s focus on providing unmatched service and innovative solutions has played a crucial role in its growth and success. As the Indian real estate market continues to evolve, The Guardians Real Estate Advisory is well-positioned to capitalize on emerging opportunities and maintain its leadership position. The company’s dedication to customer satisfaction and commitment to excellence will undoubtedly drive its future growth and success.

Afcons Infrastructure Secures ₹1,621 Crore from Anchor Investors Ahead of IPO

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Homes and buildings

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October 25, 2024

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Afcons Infrastructure Secures ₹1,621 Crore from Anchor Investors Ahead of IPO

Afcons Infrastructure, the flagship construction arm of the Shapoorji Pallonji Group, has successfully raised ₹1,621 crore from a diverse consortium of anchor investors ahead of its much-anticipated initial public offering (IPO), which opens for public subscription on October 25, 2024. This substantial backing underscores the strong market confidence in Afcons, a key player in India’s infrastructure landscape.

The anchor investment was notably supported by a mix of domestic and foreign institutions, including GIC, HDFC Mutual Fund, BlackRock, Goldman Sachs, and Fidelity Investments, among others. This diverse participation reflects a robust institutional interest in Afcons’ growth potential, particularly as India ramps up its infrastructure development in response to urbanisation and economic growth. The IPO, which is expected to fetch up to ₹5,430 crore at the upper end of the price band, allows investors to bid for a minimum of 32 equity shares, with allocations made in multiples thereafter. Eligible employees bidding in the reservation portion are entitled to a discount of ₹44 per equity share, making this opportunity more appealing to those within the organisation. The allocation strategy for the IPO is designed to ensure a balanced distribution, with no more than 50% of the net offer reserved for qualified institutional buyers, at least 15% for non-institutional bidders, and a minimum of 35% earmarked for retail individual investors. This thoughtful structure aims to attract a broad spectrum of investors, from institutions to everyday retail participants, reflecting a commitment to inclusive growth.

The involvement of renowned book-running lead managers—ICICI Securities Limited, DAM Capital Advisors, and Jefferies India, among others—further establishes credibility in the offering. Link Intime India will serve as the registrar for the issue, ensuring a smooth subscription process. From a sustainability perspective, Afcons Infrastructure is poised to play a pivotal role in building India’s future, especially as the nation looks to improve its infrastructure while addressing environmental concerns. The company has increasingly focused on sustainable construction practices, aiming to minimise ecological footprints through innovative engineering solutions. As the urban population continues to surge, the demand for sustainable infrastructure will only intensify, making Afcons’ commitment to eco-friendly practices not just a moral obligation but a business imperative. The enthusiasm surrounding the IPO is palpable, with many investors and industry watchers recognising the potential for substantial returns in a market that increasingly values sustainability and innovation. For ordinary citizens, Afcons’ projects promise to enhance connectivity and improve living standards, resonating with a shared aspiration for progress and development.

Hyderabad Home Sales Surge by 34% in 2024

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Homes and buildings

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October 25, 2024

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Hyderabad Home Sales Surge by 34% in 2024

Hyderabad’s residential real estate market has shown remarkable resilience and growth in 2024, registering home sales worth ₹36,461 crore during the first nine months. This figure reflects a substantial 34% increase year-on-year, driven by robust demand across various segments. The report from Knight Frank India indicates that the number of registrations rose to 59,386, marking a 13% uptick compared to the previous year. However, September 2024 saw a decline in sales, with an 18% drop to ₹2,820 crore, attributed to the Shradh/Pitra Paksha period, traditionally viewed as an inauspicious time for property transactions in Hindu culture.

The Hyderabad residential market spans four districts—Hyderabad, Medchal-Malkajgiri, Rangareddy, and Sangareddy—encompassing both primary and secondary markets. Notably, there has been a significant shift in buyer preferences towards premium properties. Homes priced at ₹1 crore and above have surged from 9% to 14% of total sales, with registrations in this segment skyrocketing by 79% year-on-year. This trend underscores a growing inclination for upscale living, with buyers seeking spacious layouts and premium amenities. According to the report, properties sized between 1,000 to 2,000 square feet dominated registrations, accounting for 68% of the total, while the demand for larger homes (over 2,000 sq ft) has also risen.

Among the districts, Medchal-Malkajgiri led with 42% of the market share, slightly down from 45% a year earlier. Rangareddy and Hyderabad districts accounted for 39% and 19% of registrations, respectively. The weighted average price of residential properties increased by 3% year-on-year in September 2024, with Medchal-Malkajgiri witnessing the most significant rise at 7%. This upward trend reflects not only a recovering market but also the increasing aspiration for more luxurious living conditions.

From a sustainability perspective, the shift towards larger, more efficient homes signals an evolving market that is adapting to modern needs and preferences. The launch of 3BHK units increased from 60% to 70% in September 2024, highlighting the demand for spacious homes that can accommodate families and promote a healthier lifestyle. The emphasis on eco-friendly building practices and sustainable urban planning will be critical in meeting the demands of a growing population while ensuring that development does not come at the cost of environmental degradation. The continued growth in Hyderabad’s residential market showcases a city that is not only expanding but also evolving in response to the needs of its residents.

TARC Secures ₹1,000 Crore to Refinance Debt and Boost Growth

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Homes and buildings

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October 25, 2024

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TARC Secures ₹1,000 Crore to Refinance Debt and Boost Growth

TARC Limited, a prominent player in the Indian real estate sector, has successfully raised ₹1,000 crore from a consortium of domestic banks and financial institutions, spearheaded by Kotak Mahindra Bank. This significant funding initiative, secured at an interest rate of 12.75%, is primarily aimed at refinancing the company’s existing debt. Additionally, TARC will have access to ₹250 crore as a working capital facility, enhancing its financial flexibility.

The consortium backing TARC’s fundraising includes notable institutions such as Nomura Capital, Aditya Birla Capital, and STCI. Amar Sarin, Managing Director and CEO of TARC, expressed enthusiasm about the transaction, viewing it as a substantial advancement for the company. He stated, “This funding will enhance our cash flows, facilitating substantial savings and providing the financial flexibility necessary for growth and expansion.” A strategic aspect of this refinancing is its alignment with the expected cash flows from TARC’s two key projects, TARC Kailasa and TARC Tripundra. By anchoring the refinancing on projected revenues from these developments, TARC effectively ties its financial strategy to its operational performance. The remaining debt will be secured against cash flows from TARC Ishva, showcasing a holistic approach to managing finances. TARC is currently investing ₹1,200 crore in the development of TARC Kailasa, a luxury residential project located in Kirti Nagar, western Delhi. The project spans 1.7 million square feet and is expected to generate revenues of approximately ₹4,000 crore. Sarin highlighted the growing demand for luxury residential real estate, noting, “Central Delhi has seen very few gated condominiums, and this project will fulfil the needs of Delhiites who had to move to Noida or Gurgaon.”

Covering a 6-acre land parcel, TARC Kailasa will feature five high-rise towers designed by the renowned Andy Fisher Workshop of Singapore. The company has engaged Arabian Construction Company as the contractor, leveraging their extensive experience in high-rise construction and numerous successful projects across India and the UAE. Previously, TARC had raised ₹1,330 crore from Bain Capital through non-convertible debentures for this project, underscoring strong investor confidence in the luxury segment of the real estate market. As TARC navigates this critical phase of growth, the emphasis on sustainability remains a cornerstone of its strategy. The company is committed to incorporating sustainable practices in its developments, reflecting a broader industry trend towards eco-friendly living spaces. This focus not only aligns with contemporary consumer preferences but also addresses the pressing need for environmentally responsible construction methods. In the eyes of potential buyers and investors, TARC Kailasa represents more than just a luxury home; it embodies a lifestyle choice that resonates with aspirations for quality living and community. As the demand for upscale housing continues to rise in urban centres, TARC’s strategic initiatives position it well to capture this lucrative market.

Real Estate Prices Rise as Construction Costs Surge

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Homes and buildings

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October 25, 2024

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Real Estate Prices Rise as Construction Costs Surge

The Indian real estate landscape has witnessed significant fluctuations in property prices over the past year, with eight prime residential markets showing a robust recovery. According to a recent report by an online property brokerage firm, a subsidiary of REA India, average property prices in most cities have recorded impressive double-digit growth in the third quarter of 2024 (Q3CY2024). This surge can be attributed to increasing demand, particularly for high-end properties, along with the mounting costs of construction materials and labour.

The Delhi-NCR region stands out with an astonishing 57% increase in property prices over the past year. This sharp rise has been driven by a combination of escalating construction costs and a strong demand for luxury residential units. With the Reserve Bank of India maintaining a stable repo rate at 6.5% for the past ten policy meetings, developers and buyers alike face heightened interest costs on loans, further squeezing housing affordability. The report indicates that this imbalance between demand and supply, coupled with renewed investor confidence, has propelled housing prices in the region to new heights.

Other metropolitan areas also experienced notable price increases. For instance, Ahmedabad and Mumbai, along with Bengaluru, saw property price appreciation in the 15-21% range. Meanwhile, Chennai and Kolkata reported growth rates of 22%, reflecting a strong economic pulse in these markets. Pune, traditionally viewed as a more affordable alternative to Mumbai, recorded an 18% increase, underscoring its ongoing appeal to homebuyers. In stark contrast, Hyderabad’s real estate market, despite its robust IT sector, exhibited the slowest growth at just 7%, indicating a more stable and mature market.

Looking ahead, the Indian real estate sector is positioned to play a crucial role in the nation’s economic narrative. Factors such as infrastructure development, smart city initiatives, and the emergence of tier-2 and tier-3 cities are expected to drive long-term growth. This scenario presents diverse opportunities across residential, commercial, and emerging asset classes for investors willing to adopt a strategic, forward-looking approach. From a sustainability standpoint, the emphasis on eco-friendly building practices and responsible urban planning will be vital in maintaining balanced growth, ensuring that the burgeoning demand for housing does not come at the cost of environmental degradation.

Kalyani Developers’ Ambitious Expansion into Residential Real Estate

Residential

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Homes and buildings

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October 25, 2024

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Kalyani Developers' Ambitious Expansion into Residential Real Estate

Bengaluru-based Kalyani Developers has announced plans to invest a substantial Rs 5,300 crore in developing housing and hospitality projects across South India. This marks a significant expansion for the company, which has a strong track record in commercial real estate, hospitality, and automobiles.

The company’s foray into the residential segment is characterized by three ambitious projects in North Bengaluru, Whitefield, and Kanakapura Main Road. These projects are expected to contribute significantly to the growing demand for housing in the region. Additionally, Kalyani Developers is planning a mixed-use development in Hyderabad, further solidifying its presence in the South Indian market. The company’s investment in these projects over the next two years is estimated to reach Rs 4,500 crore. To complement its residential offerings, Kalyani Developers is also investing Rs 800 crore in two hotels, each comprising 300 rooms, in North Bengaluru.

This strategic move aims to cater to the increasing demand for hospitality services in the region. Kalyani Developers’ decision to expand into the residential segment is driven by its confidence in the market’s growth potential. The company’s expertise in commercial real estate and hospitality, coupled with its in-house construction capabilities, positions it well to deliver high-quality residential projects. The company’s commitment to quality is evident in its decision to handle construction in-house. With over 30 years of experience and a successful track record of delivering 12 million+ square feet of commercial spaces, Kalyani Developers’ in-house team is well-equipped to meet the challenges of residential development.

As Kalyani Developers embarks on this ambitious expansion, it is poised to make a significant contribution to the South Indian real estate market. The company’s investment in housing and hospitality projects will not only address the growing demand for quality living spaces but also stimulate economic growth and create employment opportunities in the region.

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