08 May 2024

ASK Property Fund, the real estate private equity arm of ASK Asset & Wealth Management Group, has exited an INR 200 crore investment in three projects developed by QVC Realty Developers. Over four years, the fund generated a return of INR 354 crore, achieving a 1.8x multiple on their initial investment and an Internal Rate of Return (IRR) of approximately 20%. Amit Bhagat, CEO and MD of the fund, attributes their success to strategic project selection and timely market opportunities, emphasizing their commitment to identifying investments with a 3-5-year horizon. Sunil Rohokale, Managing Director and CEO of ASK Asset & Wealth Management Group highlights the positive real estate market dynamics and the importance of the residential sector within their investment portfolio, which includes logistics and data centers.Read more

08 May 2024

The "Construction Cost Guide India: 2024" by JLL reveals a significant 6% average increase in construction costs across sectors for FY 23-24, posing challenges for developers. Mumbai remains the most expensive city for construction due to soaring prices of materials like cement and steel. Jipu Jose James of JLL stresses effective cost management for project viability. Developers like Goel Ganga Developments and 4S Developers have adopted strategies like price adjustments and cost-saving measures. MRG Group and Shriram Properties have adjusted pricing strategies while focusing on value for buyers. Navigating rising costs demands innovation and adaptation, emphasising efficient project management and informed decision-making for buyers.Read more

08 May 2024

Leptos Estates, a 64-year old family-run real estate firm renowned for properties in Greece and Cyprus, is entering the Indian market. It aims to offer Indian buyers the opportunity to purchase homes in Greece and Cyprus while also obtaining permanent residency. Indian buyers of Cypriot homes qualifying for residency must invest a minimum of EUR 300,000 plus VAT. For Greek homes, the minimum investment is EUR 250,000 with 0% VAT until the end of 2024. With a focus on quality living and investment incentives, Leptos aims to cater to Indian families seeking Mediterranean homes. Their seamless process and commitment to customer satisfaction make them a compelling choice for Indian investors eyeing overseas real estate opportunities.Read more

08 May 2024

The Indian real estate sector is witnessing a strong recovery, supported by various positive factors. Following the HDFC-HDFC Bank merger, banks have injected INR 1.51 lakh crore into the sector, reflecting renewed confidence in its stability and growth potential. Residential property sales in the top eight cities reached a 10-year high in Q1 2024, exceeding 90,000 units. Tier 2 and 3 cities are also experiencing increased activity, driven by improving infrastructure and rising disposable incomes. Factors such as RERA, PMAY, and economic growth are further fueling demand. Analysts predict continued growth, with office space rentals and residential developer volumes expected to increase. However, sustainable growth practices and technology adoption are essential considerations.Read more

08 May 2024

On April 23, 2024, the Income Tax Department issued a circular providing relief to many homebuyers who had received tax deduction at source (TDS) notices due to the property sellers' Permanent Account Numbers (PAN) being inoperative. The circular stated that homebuyers would not be liable for any TDS shortfall notices received before March 31, 2024, if the seller's PAN is linked to Aadhaar by May 31. This gave relief to over 16,000 homebuyers who had received notices demanding an additional 19% TDS payment amounting to at least INR 9.5 lakh per property transaction. As per IT regulations, homebuyers must deduct TDS at 1% of the sale value if the property purchase exceeds INR 50 lakh.Read more

07 May 2024

Embassy Office Parks REIT faces challenges in its plan to raise INR 3,000 crore for acquiring a business park in Chennai. Major unitholders, holding 17.29% stake, oppose the proposal due to concerns of dilution and decreased value of existing holdings. The discrepancy between the fund raise amount and acquisition cost raises questions about transparency. Embassy REIT clarifies that part of the funds will optimise their balance sheet and support ongoing projects. However, without addressing specific concerns, the proposal's success hinges on securing a special majority vote. This highlights the importance of transparency and communication between REITs and investors in navigating complex financial decisions.Read more

07 May 2024

Brookfield Asset Management plans to invest USD 10 billion in India's real estate sector over the next three to five years, doubling their existing assets under management (AUM). Managing Partner Ankur Gupta sees India's rapid economic growth as fertile ground for investment, with plans to double their investment in the future. While Brookfield already dominates the Indian office space, their new strategy involves diversifying into housing, industrial, and retail sectors. This move aligns with India's underdeveloped real estate market compared to its GDP, presenting ample investment opportunities. Brookfield's investment, alongside other global players like Blackstone and GIC, highlights growing confidence in India's real estate market amidst urbanisation and a growing middle class.Read more

07 May 2024

Aurum PropTech, a real estate software solutions provider, reported a consolidated net loss of INR 4.65 crore for Q4 FY24, showing improvement from the previous year's loss of INR 9.83 crore. Despite the loss, their Q4 FY24 revenue grew by 28.07%, reaching INR 65.74 crore. For FY24, total income surged to INR 233.07 crore, a 68% increase from FY23. Onkar Shetye, Executive Director, noted a sustained EBIDTA margin improvement, indicating effective expense management. Aurum also underwent strategic restructuring, divesting subsidiaries to focus on core business areas. With India's PropTech market expected to boom, Aurum's revenue growth trajectory and ability to capitalize on this trend will determine future profitability.Read more

07 May 2024

In March 2024, apartment registrations in the Kolkata Metropolitan Region (KMR) increased by 17% year-on-year, totaling 3,936 units, indicating a preference for budget-friendly homes. Notably, apartments under 500 square feet rose to 45%, reflecting a 21-point increase from the previous year. While units between 501 and 1,000 square feet still hold a significant share at 48%, affordability remains paramount. Abhijit Das of Knight Frank India emphasises the need for large, affordable projects with good connectivity. The real estate sector pushes for a permanent stamp duty rebate extension to sustain sales momentum, while infrastructure development enhances market appeal, especially in South and North zones known for affordable options.Read more

06 May 2024

Can Fin Homes Ltd (CFHL), a leading housing finance company sponsored by Canara Bank, reported a 26.08% rise in net profit for the quarter ending March 2024. Net profit increased to INR 209.02 crore compared to INR 165.79 crore in the same quarter last year. Total income grew 21.37% to INR 927.64 crore. The board recommended a final dividend of INR 4 per share for FY 2023-24. Vikram Saha was appointed additional director while Ajay Kumar Singh resigned as deputy managing director. With a stable outlook, prudent provisioning and a strong balance sheet, CFHL is well positioned to capitalize on growth opportunities in the housing finance sector.Read more