19 Jul 2024

Hyderabad is becoming a major hub for global BFSI (banking, financial services, and insurance) companies, with several significant acquisitions in the first half of 2024. Notable transactions include Cigna Healthcare securing approximately 900,000 sq ft and Metlife obtaining around 250,000 sq ft of office space. Companies like DTCC and Ameriprise have also established smaller spaces. SwissRe and Lloyds Bank expanded their existing footprints. The BFSI sector has become one of the top three office space occupiers in H1 2024, accounting for 30% of the share, driven by Hyderabad's strategic location and skilled talent pool.Read more

18 Jul 2024

In a significant shift for India's financial sector, Vikram Pandit, former CEO of Citigroup, is exiting the real estate financing business he co-founded. INH Mauritius, managed by Pandit, is selling its 49% stake in JM Financial Credit Solutions (JMFCS) to JM Financial for approximately INR 3,000 crore (USD 420 million). This acquisition raises JM Financial's ownership in JMFCS to 96%. The move reflects challenges in the real estate sector, with JMFCS' valuation lower than its reported net worth of INR 4,200 crore (USD 590 million). Additionally, JMFCS will acquire a 72% stake in an asset reconstruction company for INR 856 crore (USD 120 million), aiming to capitalise on distressed debt recovery opportunities.Read more

18 Jul 2024

A recently released report by Cushman & Wakefield emphasises India's strong preference for main-street retail leasing due to limited mall openings and high demand for top-tier retail spaces. In Q2 2024, high-street leases constituted 70% of total leases, with notable rent increases in Kolkata, Bangalore, Hyderabad, and Mumbai. Mall vacancy rates declined in major cities, with Grade A/A+ malls maintaining low vacancies. H1 2024 saw no new mall openings, but H2 is expecting 4.5 MSF of Grade-A malls. Nexus Select REIT saw 98% occupancy and plans to double its portfolio. Leasing activity surged in Delhi-NCR, Mumbai, Bengaluru, Hyderabad, Kolkata, Pune, Chennai, and Ahmedabad.Read more

18 Jul 2024

Bengaluru's BBMP has collected INR 463.03 crore in property taxes through its One-Time-Settlement (OTS) scheme, with INR 624.88 crore still outstanding as the July 31 deadline nears. Launched on February 27, the scheme aimed to ease tax burdens by waiving 50% of penalties and interest but saw limited participation, with only 1.52 lakh out of 5.51 lakh defaulters settling dues. Despite issuing notices to 3.95 lakh property-owners, only 70,000 responded. BBMP Chief Commissioner Tushar Giri Nath urges eligible property-owners to utilize the scheme. Overall property tax-collection decreased to INR 1,758 crore this year.Read more

17 Jul 2024

The West Bengal government has ended temporary tax breaks for the real estate industry, including a 2% reduction in stamp duty and a 10% decrease in the circle rate, which were introduced in October 2021 to aid pandemic recovery. These breaks, extended multiple times, expired on June 30th, 2024. The real estate industry, led by Sushil Mohta of CREDAI West Bengal and Merlin Group, expressed disappointment, highlighting that these breaks significantly boosted the sector and state revenue. Mohta urged the government to reconsider, suggesting further reductions in stamp duty and circle rate revisions. Despite concerns, the industry remains hopeful due to increasing urbanisation and rising disposable incomes.Read more

17 Jul 2024

The Greater Noida Authority is auctioning five plots of land to raise at least INR 500 crore (approx. USD 61.7 million USD) and create around 8,000 new apartments. The online auction begins on July 2nd, with 99,000 square metres available across plots ranging from 3,999 to 30,470 square metres. Highlighting Greater Noida's green spaces, infrastructure, and NCR connections, the Authority aims to attract developers. Registration ends on July 23rd, with final document submissions due by July 29th. Successful bidders will gain immediate land possession, potentially transforming the city's housing landscape.Read more

17 Jul 2024

The Securities and Exchange Board of India (SEBI) has introduced regulations for Small and Medium Real Estate Investment Trusts (SM REITs), offering small investors a new avenue into the real estate market. Unlike existing fractional ownership platforms, SM REITs will adhere to stricter rules, ensuring investments are made in completed, leased properties and providing clear cash flow management. With a minimum investment of INR 10 lakh, SM REITs make real estate more accessible, allowing investors to choose specific schemes and receive regular updates. This move promises to democratise real estate investment while maintaining transparency and security for investors.Read more

16 Jul 2024

Savills India reports a 42% year-on-year increase in PE investments, reaching USD 1.7 billion (INR 142 billion) in H1 2024. Commercial office assets dominated with 51% (USD 867 million) of the total, while residential investments surged to 47% (USD 803 million), reflecting growing investor confidence. Asian investors contributed 78% (USD 1.33 billion) of the Q2 2024 volume, mainly targeting office and residential properties in Bengaluru and Hyderabad. Arvind Nandan of Savills India attributes this growth to India's strong macroeconomic scenario, highlighting the positive impact on private equity investment activity across both sectors.Read more

16 Jul 2024

The Motilal Oswal Nifty India Defence Index Fund, launched as the first passively managed fund focusing on Indian defence, had a successful start. During the New Fund Offer (NFO) period from June 13th to 27th, 2024, it raised a record-breaking INR 1,676 crore (about USD 20.6 million). Over 248,000 unique investors from various locations across India participated in the NFO. The fund tracks the Nifty India Defence Index, comprising 15 defence companies, reflecting strong growth rates. This initiative aligns with India's push for defence self-reliance and decreasing reliance on foreign imports. The fund's success signifies growing investor confidence in sector-specific funds within India's mutual fund industry.Read more

16 Jul 2024

According to Knight Frank India's latest report, flexible office space leasing in Bengaluru dropped by over 40% in the first half of 2024, falling from 2.9 million square feet in H1 2023 to 1.7 million square feet. However, flexible workspaces remain valuable for startups and companies needing adaptable office solutions. Nationally, co-working spaces accounted for 72% of flex space transactions. Despite the drop in flex leasing, Bengaluru's overall office space market grew by 21%, reaching 8.4 million square feet. This growth is driven by the establishment of Global Capability Centers (GCCs) and increased leasing by IT service companies.Read more