PNT Reporter

15 Mar 2024

Prime Minister Narendra Modi recently inaugurated the 29-kilometer Dwarka Expressway, focusing on the Gurugram section to ease Delhi-Gurugram traffic. The eight-lane elevated expressway connects Dwarka in Delhi to Gurugram's Kherki Daula toll plaza, promising reduced travel time. Analysts foresee a 10-15% property price surge along the corridor, attracting developers and buyers. Well-connected to key areas, the expressway is anticipated to spur economic growth with over 51,500 units launched between 2013 and Q1 2023. With its potential to alleviate congestion and boost connectivity, the Dwarka Expressway signifies a significant infrastructural leap for Delhi-NCR.Read more

14 Mar 2024

Jaiprakash Associates Limited (JAL), burdened with INR 17,700 crore debt, saw potential relief as the National Asset Reconstruction Company of India (NARCL) proposes acquiring INR 10,000 crore of its debt from banks. This could lead to NARCL taking over JAL's core businesses. With the State Bank of India (SBI) as the largest lender, the resolution could streamline the ongoing legal process, including pending insolvency proceedings. However, success hinges on the lender and Jaypee Group's cooperation. If accomplished, it could restore operations, set a precedent for NARCL, and accelerate the banking sector's cleanup, bringing hope for JAL's stability.Read more

14 Mar 2024

The Central Government has directed banks to compile and share details of stalled housing projects eligible for the SWAMIH fund. Procedural delays were identified as a key reason for lower exposure of public sector bank projects in the fund. Lenders will share feasibility reports with the fund, which aims to complete stressed projects by providing finance. Over 25% of capital has been returned and more than 26,000 homes completed so far. Banks have also approached RBI seeking exemption from 2023 guidelines which restricted regulated entities' investments in funds like SWAMIH, to ensure its continued operations.Read more

13 Mar 2024

SEBI introduced new regulations for Small and Medium REITs, making real estate investment more accessible. With a lower minimum asset value of INR 50 crore, these trusts offer diverse property investment opportunities. Investors can participate with smaller initial investments, enjoy fractional ownership, and benefit from professional management. While SM REITs aim to generate income through rents, investors should conduct thorough research and consider risks such as limited track records and minimum investment amounts. Overall, SEBI's move expands the real estate investment landscape, offering potential benefits and requiring careful consideration before investing.Read more

12 Mar 2024

The board of directors at Macrotech Developers has approved the issue price for equity shares designated for qualified institutional buyers, with a floor price set at INR 1,129.48 per share. The company's robust performance, highlighted by a total consolidated income of INR 6,385.60 crore and a net profit of INR 887.20 crore for the nine months ending December 31, 2023, enhances investor confidence. Strategic allocation of bonus equity shares and a dividend payout of INR 2 per share reflect the company's commitment to optimizing capital structure and enhancing shareholder value. As Macrotech Developers moves forward with its strategic initiatives, the approval of the issue price marks a crucial milestone, positioning the company favorably in the real estate sector.Read more

12 Mar 2024

In Mumbai's Chembur, the revival of the Sky Annex slum rehabilitation project by Stans Buildtech Homes brings relief to homebuyers after years of delays. With SWAMIH Fund's INR 160 crore injection, construction is set to resume, addressing tenant, approval, and financing hurdles. Colliers India facilitated negotiations among stakeholders, ensuring a win-win solution. Launched in 2019, SWAMIH Fund tackles stalled housing projects nationwide, backed by a INR 15,530 crore corpus, showcasing government commitment. This investment not only aids homebuyers but also boosts the real estate market and economy. Yet, streamlining approval processes remains crucial for sustained progress.Read more

11 Mar 2024

The Pune Municipal Corporation (PMC) is revolutionizing property tax collection through specialized software, aiming to expedite real-time data entry and curb revenue losses. Integration of departments like building permissions, property tax, and IGR ensures seamless inclusion of properties into the tax system post issuance of occupancy certificates (OC) or registration. Automation streamlines assessment and collection processes, eradicating historical delays caused by manual data sharing. Utilizing assessment software and auto-DCR, coupled with API integration, enhances operational efficiency and data accuracy. With an estimated 11.6 lakh properties eligible for taxation, PMC targets INR 115 crore in holding taxes this fiscal, affirming its commitment to revenue enhancement through technological advancement and streamlined processes.Read more

11 Mar 2024

The FICCI-ANAROCK Consumer Sentiment Survey (H2 2023) indicates Indian homebuyers are increasingly favouring larger apartments, especially 3 BHKs, with a preference for suburban living in major cities. Despite rising costs, interest in luxury homes has doubled, while the INR 45-90 lakh budget range remains popular. Priorities have shifted towards spacious living, improved construction quality, and open spaces. While real estate remains a top investment choice, fixed deposits are gaining traction. Rising interest rates haven't significantly deterred buyers, signaling a dynamic market with evolving preferences and investment patterns.Read more

11 Mar 2024

Real estate developers are facing challenges due to new GST rules impacting project costs. Authorities are demanding 18% GST on royalty payments for brand usage in SPVs and on corporate guarantees. Developers argue SPVs are crucial for project financing and transparency, warning that GST charges will hike costs and reduce profits. The Finance Ministry is reviewing concerns and will possibly discuss the matter in the next GST Council meeting. DGGI sees brand usage as a taxable service, estimating potential tax evasion of INR 3,500 crore. This conflict underscores the struggle between tax compliance and industry needs, with implications for homebuyers. A resolution awaits the upcoming GST Council meeting.Read more

08 Mar 2024

Sion East, nestled in Mumbai, epitomizes a vibrant blend of residential and commercial spaces, boasting dynamic markets and cultural diversity. Renowned for its amenities and accessibility, the locality is a prime living destination. January witnessed 18 apartment transactions across 10 buildings, split between developer sales and resale. Dosti Mezzo 22 and Kings My Home led the sales, with Vaibhav Pinnacle showcasing the highest-priced apartment at INR 7.5 crores. Prices ranged from INR 11,000 to INR 39,000 per square foot, with a weighted average of INR 24,267. Most transactions occurred within the INR 1-5 crore range, while some fell below INR 1 crore, with one notable sale exceeding INR 10 crores.Read more