30 May 2024

IIFL Home Finance (IIFL HFL) has reported impressive financial results for FY24, with a 32% rise in profit after tax to INR 1,017 crore. Revenue from operations increased by 23% to INR 3,317 crore, and their Asset Under Management (AUM) grew by 25% to INR 35,499 crore. Loan disbursements rose by 28% to INR 12,861 crore. The company maintains a robust capital adequacy ratio of 42.7% and reduced gross non-performing assets from 2.1% to 1.5%. Securing over USD 450 million in funding, IIFL HFL continues to drive affordable housing, addressing India's 2.1 crore unit housing shortage.Read more

30 May 2024

Eldeco Housing & Industries saw a 21.54% decline in net consolidated profit in Q4 FY24, reporting INR 11.69 crore compared to INR 14.90 crore in the previous year. However, its consolidated total income grew by 22.79% to INR 51.56 crore. Chairman Pankaj Bajaj highlighted record sales bookings and new land acquisitions. The company proposed a final dividend of 400% and approved increased remuneration for Bajaj. Total area booked surged by 803%, collections rose by 62% YoY, and land purchases totaled 65 acres. Bajaj also noted fresh land acquisition in Lucknow, aiming to launch projects in FY24-25.Read more

30 May 2024

The cost of living crisis in major Indian cities, notably Bengaluru and Mumbai, stems from a stark misalignment between stagnant salary increases and soaring rental prices. Limited housing supply, especially near tech hubs, worsens the situation as demand surges with the return to work from office. Rising rental costs outpacing income growth have pushed residents to allocate more of their earnings towards rent, impacting disposable income and prompting consideration of homeownership. This trend reflects a broader challenge of housing affordability, straining urban living conditions and potentially dampening home-buying sentiment.Read more

29 May 2024

PNB Housing Finance aims to grow its loan portfolio by 17% this fiscal year, focusing on the booming affordable housing segment and expanding its branch network. The company, financially bolstered by a successful INR 2,500 crore rights issue in 2023, is well-equipped for this expansion. Managing Director Girish Kousgi confirmed no additional capital is needed for the next 2-3 years. With an existing loan book of INR 63,000 crore and a burgeoning affordable housing portfolio of INR 1,790 crore, PNB Housing plans to add 50 more branches to its current 300, targeting high-demand areas for affordable housing loans.Read more

29 May 2024

Indian banks face a dilemma following the Reserve Bank of India's (RBI) proposal to raise loan provisions for project, commercial, and real estate loans to 5% from the current 0.4%-1%. This significant increase means banks will need to set aside up to five times more funds to cover potential loan defaults, potentially impacting their profitability. Raising interest rates to offset this cost is challenging due to competitive loan pricing by state-owned financial companies. The phased implementation aims to ease the transition, but banks are concerned about the impact on their earnings and borrower relationships.Read more

29 May 2024

Pune's real estate market experienced a significant boost in Q1 2024, with sales transactions rising by 49% to 27,056 and the total sales value increasing by 56% to INR 17,837 crore (USD 2.2 billion), according to Square Yards Data Intelligence. Leading developers like VTP Realty, Kolte Patil Developers, and Vilas Javdekar Developers drove this growth, with VTP Realty achieving sales over INR 950 crore (USD 1.1 billion). Affordable housing remains in demand, with 45.4% of transactions under INR 50 lakh (USD 625,000). Nearly 200 new projects were launched, covering 1.17 crore square feet, underscoring Pune's continued attractiveness for investment.Read more

28 May 2024

The BBMP has implemented a series of enforcement measures to recover unpaid taxes from delinquent property owners. Despite repeated notices, many owners ignore their obligations, leading authorities to issue Form 13 to register BBMP's claims with the Deputy Registrar's office, thereby creating liens on their properties. To increase transparency and pressure defaulters, BBMP has also publicly released a list of the top defaulters, although past efforts have seen limited success. Despite the introduction of a one-time settlement scheme (OTS), which provides a 5% discount for prompt payments to resolve outstanding dues, compliance rates persist at disappointingly low levels.Read more

28 May 2024

Real estate developers challenge the 18% GST on development rights transfer in Joint Development Agreements (JDAs). Telangana High Court's ruling prompts a Supreme Court appeal, with no stay on the tax mandate. Developers argue that JDAs do not constitute land sales and should not be taxed. The legal debate focuses on whether land development qualifies as a taxable service. The industry is divided, with some highlighting GST's service application, while others emphasise the non-sale nature of JDAs. Pending a Supreme Court verdict, the implications for the real estate sector are significant.Read more

28 May 2024

SEBI fined Reliance Home Finance INR 8 lakh for not disclosing NCLT order and appeals against it, pertaining to a debt resolution plan. The company was required to disclose within 24 hours but failed to do so. NFRA banned auditors of Reliance Home Finance and Reliance Commercial Finance, levying penalties for irregularities in 2018-19 accounts. Price Waterhouse resigned as auditor due to suspected fraud. Auditors issued inappropriate emphasis in audit reports, dismissing suspicions of fraud despite pending investigations. NFRA found similar issues in Reliance Capital. SEBI noted the new auditor's qualified opinion as unreliable. Anil Ambani's financial services group faces insolvency actions and accounting fraud investigations.Read more

27 May 2024

The Indian residential real estate market demonstrates robust performance in Q1 2024, with a notable 10% year-on-year price appreciation nationally across major cities. Bengaluru, Delhi NCR, Ahmedabad, and Pune lead with price hikes exceeding 10%. Despite a marginal 3% year-on-year increase in unsold inventory nationally, Pune sees a significant 10% decline, signaling strong demand. Mumbai Metropolitan Region (MMR) holds nearly 40% of unsold inventory. Average apartment prices per square foot showcase variations, with Bengaluru leading at INR 10,377. Bengaluru records the highest annual price surge at 19%, driven by demand in IT hubs. Delhi NCR sees a 16% annual increase, notably along Dwarka Expressway. Pune registers a 10% drop in unsold inventory, coinciding with a 13% annual price rise. Luxury demand and infrastructure projects drive price growth. Going forward, areas like Baner and Chinchwad are poised for high residential activity.Read more