16 May 2024

A recent ANAROCK report analysed housing trends across the top 7 cities in India from Q1 2019 to Q1 2024. A key finding was the rising prominence of luxury housing segments compared to affordable housing. In Q1 2024, luxury homes accounted for 21% of unit sales versus just 4% in Q1 2019. New luxury housing supply also increased from 9% of total launches in Q1 2019 to 25% in Q1 2024. Meanwhile, affordable housing sales declined from 37% to 20%. Non-luxury segments gained greater share in cities like Bengaluru, Chennai, Hyderabad and Pune. The data indicates developers are aligning new project launches more towards prevailing demand for higher-priced luxury properties.Read more

15 May 2024

Bajaj Housing Finance and Bajaj Finance, two entities within the Bajaj Group, collectively raised INR 12,095 crore through bond issuances, capitalizing on favorable debt market conditions driven by recent central bank actions. Bajaj Housing Finance secured INR 4,500 crore through two non-convertible debenture issuances, with ICICI Securities Primary Dealership facilitating the transactions. Bajaj Finance raised INR 7,595 crore through bonds maturing in 2034, with HDFC Bank as the sole arranger. The surge in borrowing activity coincides with a notable decline in government bond yields, spurred by the Reserve Bank of India's announcement of a sovereign bond buyback, injecting liquidity into the banking system.Read more

15 May 2024

Outstanding loans for housing have grown substantially over the past two years, according to RBI data. Housing credit increased nearly INR 10 lakh crore between FY22-FY24 to reach a record high of INR 27.23 lakh crore in March 2024. This growth can be attributed to pent-up demand during the pandemic and rising sales across segments. The government's push for affordable housing has increased accessibility. Reports show price appreciation of 50-100% in major cities over the past two years, leading to larger average loan sizes. Commercial real estate lending has also risen significantly from INR 2.97 lakh crore to INR 4.48 lakh crore between March 2022-2024.Read more

15 May 2024

Home First Finance Company India Ltd reported a robust performance for the March quarter, with net profit surging 30.5% to INR 83.5 crore and quarterly interest income rising 38% to INR 283 crore. Assets under management grew by 35% to INR 9698 crore, with loan disbursement up 32% to INR 3963 crore. The company aims to expand its portfolio by 30% in FY 2025, with plans to open 20-25 branches. They recommended a 170% dividend and approved raising INR 700 crore through debentures.Read more

14 May 2024

Grihum Housing Finance reported a 21% rise in net profit to INR 140 crore for FY24, driven by a 32% increase in assets under management to INR 8,277 crore. Organic disbursements reached a record INR 2,914 crore, up 26% year-over-year. The company expanded sourcing channels and added 28 new branches, taking the total to 210. Revenue grew 46% to INR 1,046 crore with net interest margin of 8.3% and cost of borrowings at 8.1%. MD and CEO Manish Jaiswal credited the results to Grihum achieving a 30% CAGR and establishing itself as a national housing finance company serving over 77,000 customers.Read more

14 May 2024

In FY2025, India's construction industry anticipates robust growth, following a stellar FY2024. With the government's commitment to infrastructure evident in increased capital expenditure, ICRA maintains a stable outlook, projecting moderate margin expansion despite competition challenges. While profitability may remain below pre-Covid levels due to the expiration of certain schemes, the moderation in commodity prices, notably steel, offers relief. Stakeholders must navigate challenges with vigilance, leveraging opportunities as they arise. Monitoring market dynamics and policy shifts will be crucial for success in the upcoming fiscal year.Read more

14 May 2024

The Securities and Exchange Board of India (SEBI) has proposed lowering the minimum trading lot size for privately placed infrastructure investment trusts (InvITs) from the current INR 1-2 crore to INR 25 lakh. This aims to increase liquidity in the secondary market for InvIT units by allowing more individual and retail investors to participate. A smaller lot size would help diversify investment portfolios and better manage risks. In addition, SEBI has put forth several measures to reduce compliance burden for InvITs and real estate investment trusts (REITs), including setting a timeline of 5 days for profit distributions and giving flexibility to set record dates with 2 days' notice to exchanges.Read more

13 May 2024

HDFC Capital, the real estate private equity arm of HDFC Group, has exited the "Pursuit of a Radical Rhapsody" project in Bengaluru, generating a remarkable return of close to INR 300 crore, surpassing their initial investment of INR 229 crore. Developed by Total Environment, the project comprises 4.4 million square feet of residential space and 500,000 square feet of commercial development. This successful exit underscores HDFC Capital's strategic investment approach and ability to create value. Partnering with esteemed developers like Total Environment, known for quality, reflects HDFC Capital's commitment to promoting affordable and mid-income housing in India. This achievement highlights the potential for strong returns in Bengaluru's real estate market and HDFC Capital's pivotal role in shaping India's housing landscape.Read more

13 May 2024

Aptus Value Housing Finance saw continued growth in FY24 with a 22% rise in PAT to INR 612 crore. Total disbursements for the housing financier jumped 31% to INR 3,127 crore for the full year, reflecting robust demand for housing loans. In Q4FY24 alone, disbursements grew 45% to INR 968 crore. Aptus expanded its reach through the addition of 31 new branches, taking its total network to 262 branches across seven states. Commenting on the results, MD P Balaji expressed satisfaction with the company's performance and stated that significant accomplishments were made during the fiscal.Read more

13 May 2024

Data from the Reserve Bank of India shows that scheduled commercial banks' commercial real estate portfolios grew nearly 23% year-on-year in March 2024, significantly higher than the 8.52% growth seen the previous year. This surge in commercial real estate lending by banks reflects positive changes in the sector in recent years, including regulatory reforms, growth of real estate investment trusts, and developers taking on less debt, which have boosted banks' confidence. Industry experts expect banks' commercial real estate lending to continue growing strongly due to healthy demand, a clearer regulatory framework, and avenues like REITs mitigating risks.Read more