Real Estate Surges in Hurun India Rich List 2024

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October 8, 2024

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

Bangalore

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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.

Home Registrations Drop 18% in Kolkata

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October 8, 2024

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The city’s housing market is reeling from a significant downturn, with home sales plummeting by 18% in July compared to June, and a staggering 13% year-on-year decline. This drop follows the state government’s withdrawal of financial incentives that had previously invigorated the real estate sector, marking a critical turning point for both buyers and sellers.

In July, a mere 3,506 residential properties were registered, down from 4,292 in June, and drastically lower than the 6,709 registrations recorded in July of the previous year. The cessation of incentives that included a 2% reduction in stamp duty and a 10% cut in circle rates has been pivotal in this market contraction, as these measures had significantly stimulated activity in a sector struggling for stability over the past three years. A closer examination of the data reveals that mid-sized homes, defined as those ranging from 501 to 1,000 square feet, accounted for the largest segment of transactions in July, comprising 47% of total sales. This figure reflects a slight decline from 51% in July 2022. Conversely, smaller homes under 500 square feet have surged in popularity, now capturing 45% of the market share, a notable increase from 27% last year. On the other hand, larger apartments exceeding 1,000 square feet have suffered greatly, now constituting only 8% of the total transactions.

The abrupt withdrawal of financial incentives has distinctly altered buyer behaviour, leading to a pronounced decrease in property registrations. The notable shift towards smaller homes suggests a recalibration of buyer preferences in response to heightened economic uncertainties and affordability issues. As the Kolkata housing market grapples with this new reality, industry experts are closely monitoring potential responses. The future trajectory of the market hinges on whether new stimulating measures will be introduced to bolster demand or if conditions will self-correct over time. The ongoing adjustments reflect broader economic sentiments, urging stakeholders to reconsider strategies in light of changing market dynamics. From a sustainability perspective, the rise in demand for smaller homes may suggest a shift towards more efficient living spaces, aligning with environmental concerns and urban planning trends aimed at minimising resource consumption. As the sector navigates these challenges, the emphasis on sustainable development will likely play a crucial role in shaping future real estate trends.

Godrej Properties Wins Big in Greater Noida Land Auction

NCR

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October 8, 2024

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Godrej Properties Wins Big in Greater Noida Land Auction

Godrej Properties Limited (GPL) has once again demonstrated its strong presence in the National Capital Region (NCR) real estate market, emerging as the highest bidder in a land auction conducted by the Greater Noida Industrial Development Authority (GNIDA). The company secured two prime land parcels with a combined bid value of INR 842 crore, further expanding its footprint in the region.

The acquired land parcels, strategically located in Sector Sigma-III and Sector 12 of Greater Noida, offer significant development potential with a total area of 17.5 acres. The estimated revenue potential from these projects is projected to exceed INR 5,000 crore, driven by the development of premium residential apartments with various configurations. Greater Noida’s appeal lies in its robust infrastructure, broad roads, and strategic proximity to both Delhi and Noida. Its connectivity to the upcoming Jewar airport further enhances its attractiveness for high-quality residential developments.

This recent acquisition follows GPL’s successful launch of two major projects in FY 2023, Godrej Tropical Isle and Godrej Jardinia, which collectively generated over INR 4,400 crore in sales within a span of just three quarters. The strong demand for GPL’s projects in the NCR region reflects the trust and confidence that customers place in the company. This latest acquisition reinforces GPL’s commitment to creating exceptional residential communities that offer long-term value to residents. As the company continues to expand its presence in the NCR market, it is well-positioned to capitalize on the growing demand for premium residential properties.

Dwarka Expressway Sees 79% Surge in Property Prices

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October 8, 2024

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Dwarka Expressway Sees 79% Surge in Property Prices

The Dwarka Expressway in the National Capital Region (NCR) has emerged as a frontrunner in real estate performance, showcasing a staggering 79% increase in property prices over the past five years. According to data analysed by property consultancy Anarock, this remarkable growth positions the Dwarka Expressway fourth among the top ten micro-markets for price appreciation. The average property price surged from Rs 5,359 per square foot in 2019 to over Rs 9,600 per square foot by mid-2024, a trend driven by enhanced connectivity, extensive infrastructure development, and a growing preference for suburban living.

In comparison, Bengaluru’s Bagaluru tops the list with a 90% increase in property prices, where values soared from Rs 4,300 per square foot in 2019 to approximately Rs 8,151 per square foot in H1 2024. This growth was bolstered by the introduction of around 17,065 new housing units, predominantly in the mid and premium segments. Following closely, Hyderabad’s Kokapet recorded an 89% increase, with prices climbing from Rs 4,750 to Rs 9,000 per square foot, largely fueled by a significant presence of ultra-luxury properties. Whitefield in Bengaluru also made an impressive showing with an 80% rise, highlighting a robust demand across the spectrum of urban housing.

The report indicates a broader trend of accelerated price growth in key markets, particularly post-pandemic. Among the top seven cities, Hyderabad experienced the most significant overall increase of 64%, while Bengaluru followed closely at 57%. Notably, Greater Noida West in NCR achieved the highest price appreciation of 129%, underscoring the dynamic shifts in demand and supply. This situation reflects changing buyer preferences towards suburban areas, driven by improved infrastructure and lifestyle aspirations.

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