04 Jan 2024

In 2023, the Indian real estate sector exhibited resilience and growth with institutional investments totaling USD 5.4 billion, marking a significant 10% YoY increase. However, the sector faced a 37% decline in institutional investments in Q4 2023, amounting to USD 822.3 million, attributed to reduced fund inflows. A granular look shows a 23% drop in office segment investments and a substantial 79% decline in housing investments in Q4 2023. Despite these challenges, the sector remains optimistic with alternate asset classes diversifying the portfolio for institutional investments in real estate.Read more

04 Jan 2024

Between April 1 and December 31, 2023, the BMC generated Rs 638 crore, constituting 10% of the property tax target for 2023–24. Legal complexities in retrospective tax assessment led to delayed bill distribution, making the Rs. 6,000 crore targets by March 31 challenging. The BMC faced revenue declines due to property tax exemptions and pandemic-induced deferrals. In 2022–23, the revised target of Rs 4,800 crore was surpassed with a collection of Rs 5,575 crore. Property tax bills for 2023–24, recently distributed with objections, involve provisional bills to be settled by taxpayers in two installments, concluding on March 25, 2024.Read more

03 Jan 2024

In November 2023, Kolkata's real estate market experienced a notable upswing with 3,656 apartments registered, marking a substantial 20% year-on-year growth compared to the same period in 2022. This positive momentum is attributed to the current stamp duty rebate, incentivizing apartment registrations. Despite an 18% month-on-month decline from October 2023, the cumulative registrations for the year stand at an impressive 39,123 units in Kolkata Metropolitan Area (KMA). The stability in RBI policy rates, consistent home loan rates, and positive macro-economic sentiment are contributing factors, with ongoing new project launches expected to sustain the upward trend in the coming year.Read more

03 Jan 2024

The BMC's online property tax bills, issued with an apparent hike, led to confusion and concerns among citizens. A footnote in the bills referred to invalidated rules and ad hoc issuance, sparking questions. Municipal Commissioner Chahal clarified the online terms emphasizing no tax increase this year. He further said that they would generate actual property tax bills, mentioning only the payable amount. The BMC is navigating challenges in property tax regulations after a Supreme Court Order. Former corporator Asif Zakaria raised queries on the apparent increase, emphasizing the importance of clear communication and legal consistency in municipal tax processes.Read more

02 Jan 2024

The Ahmedabad Municipal Corporation (AMC) has announced the auction schedule for eight plots, including a prominent Bodakdev plot valued at Rs 333.14 crore. After an unsuccessful February auction, the re-auction includes six commercial and two residential plots with a collective reserve price of Rs 835.77 crore. Bidders must register by January 17, with the online auction scheduled for January 29–31. The AMC expects to raise about Rs 1,000 crore from these plots, showcasing a strategic effort to leverage real estate potential, attract diverse investors, and contribute to Ahmedabad's overall growth.Read more

02 Jan 2024

Over the past three years, 70% of India's urban local bodies (ULBs) witnessed a surge in property tax collections, aligning with their state's five-year Gross State Domestic Product (GSDP) growth rate. This reform, crucial for accessing Central funding, follows the 15th Finance Commission's recommendations. Of the allocated Rs 1,21,055 crore, Rs 5,705 crore has been disbursed. Cities like Mumbai, Chennai, and Hyderabad, including 40 out of 50 million-plus population cities, reported increased collections. The move, initiated by the Ministry of Housing and Urban Affairs and Jaanagraha, aims for ULBs' financial sustainability, emphasizing property tax as a key revenue source.Read more

01 Jan 2024

Bank of America (BofA) has secured a landmark office space deal in 2023, leasing 1.1 million sq ft in Chennai, marking a significant expansion of its offshore operations. The property, located at DLF Downtown in Taramani, will house the bank's back office operations in India. The first phase, covering 710,000 sq ft, is set to commence operations in Q2 2024, with an expansion option of 390,000 sq ft. DLF Downtown, a joint venture between DCCDL and TIDCO, is a sought-after commercial space with notable tenants, reflecting Chennai's growing significance in corporate real estate. Bank of America's strategic move underscores its commitment to expanding operations in India, contributing to the robust demand for premium office spaces in Chennai's evolving commercial real estate landscape.Read more

01 Jan 2024

Kansai Nerolac Paints recently approved a sale of a land parcel in Lower Parel, Mumbai, along with its building, to Aethon Developers, a subsidiary of Runwal Developers, for Rs 726 crore. This decision aligns with the company's aim to monetize idle land parcels, turning them into valuable assets through strategic partnerships. Despite robust financial performance, with a 57.79% growth in net consolidated profit for Q2 FY24, the move reflects a broader industry trend of companies unlocking the value of unused real estate assets to enhance liquidity and reinvest in core operations or growth opportunities.Read more

01 Jan 2024

India's debt markets are undergoing a notable evolution as companies with repayment defaults manage to attract investors and raise funds. Mumbai-based Damji Shamji Realty, rated as 'D' after defaulting on HDFC Bank's loan, successfully raised Rs 95 crore from the private placement bond market. This rare instance of a rated, secured, and listed bond by a D-rated company indicates a shift in the perception of junk bonds. The move, facilitated by ASK Real Estate Special Opportunities Fund IV, highlights the potential development of the bond market in India and offers distressed companies an avenue for fundraising, emphasizing the role of cash flow stability over traditional credit ratings.Read more

01 Jan 2024

The New Delhi Municipal Council (NDMC) unveiled its budget plan for the fiscal year 2024–25, projecting a surplus of Rs 240.2 crore and anticipated revenues of Rs 5,069.6 crore. Chairman Amit Yadav envisions transforming NDMC into a global-standard city, emphasizing financial prudence. The budget aims to exceed the current fiscal year's revised estimates, focusing on revenue collection from property tax and license fees. The introduction of geo-tagging for all properties and initiatives like electric vehicles, green bonds, and the 'One Day, One Road' campaign underscore NDMC's commitment to environmental sustainability and operational efficiency. The budget also allocates funds for education, local initiatives, and beautification projects, signalling a comprehensive approach to urban development and a positive trajectory for New Delhi's future.Read more