30 Apr 2024

Sundaram Home Finance, a prominent provider of property-related financing, is expanding its presence beyond South India, recently opening a branch in Kota, Rajasthan, with plans for another in Udaipur. With existing branches in Rajasthan and a goal to disburse INR 300 crore in loans over the next few years, Sundaram aims to capitalize on Rajasthan's growing urban population and demand for housing units. Managing Director Lakshminarayanan Duraiswamy emphasized the company's growth strategy, targeting states like Rajasthan, Maharashtra, and Gujarat alongside their established presence in South India. Sundaram offers a range of financial products beyond home loans, catering to diverse property-related needs, reflecting a broader trend of financial institutions tapping into India's housing demand.Read more

30 Apr 2024

In India's major cities, rising rental yields signal challenges for young professionals seeking affordable housing. Historic highs in rental yields, reaching 4.5%, hint at future cost hikes for renters. Demand for rental properties in cities like Bengaluru, Mumbai, and Gurugram has surged, outpacing supply and giving landlords greater leverage to raise rents by over 50% in some areas. This trend, with some locations seeing a 60% increase since 2019, prompts consideration among renters to buy property. However, complexities such as limited transparency and high house price-to-rent ratios present hurdles for potential buyers, amid uncertainty regarding future rental yield stabilization.Read more

30 Apr 2024

WeWork India is undergoing a significant transformation with Enam Holdings taking a substantial stake in the company. Enam Holdings, led by Akash Bhansali and his family, is acquiring a 40% stake for INR 1,200 crore (USD 145 million) through a secondary share sale, demonstrating confidence in India's flexible workspace market. Meanwhile, the Embassy Group, WeWork India's majority owner, is acquiring WeWork Inc.'s 27% stake for approximately INR 700 crore (USD 85 million), marking WeWork Inc.'s exit from India. Despite WeWork Inc.'s global challenges, WeWork India has shown strong growth, boasting over 70,000 members and plans for further expansion. This restructuring, with a total deal value of INR 2,100 crore (USD 230 million), signals a renewed commitment to India's flexible workspace market, positioning WeWork India for continued success under new leadership.Read more

29 Apr 2024

India's residential real estate sector is witnessing an increase in debt financing as developers seek to meet the escalating demand for homes amid rising project costs. With over 1.4 billion potential homebuyers in the country, developers require significant working capital, estimated at USD 30-35 billion, to complete ongoing projects. This demand has attracted private equity firms and real estate credit funds, exemplified by recent deals such as Prestige Group securing INR 2,001 crore and Nisus Finance investing INR 105 crore. With strong sales exceeding 74,486 units in Q1 2024, experts anticipate sustained growth, attracting a diverse range of investors and facilitating further development in the sector.Read more

29 Apr 2024

InvestoXpert, a leading player in the real estate sector, achieved remarkable success in fiscal year 2023-24, facilitating property sales worth INR 2050 crore, marking a remarkable 95% year-over-year growth compared to the previous fiscal year. This growth translated into revenue of INR 56 crore, a significant 55% increase over the previous year. Covering 2 million square feet of property space, InvestoXpert saw residential sales constituting 95% of the total volume. Looking ahead, InvestoXpert has set ambitious sales targets of INR 4000 crore for the upcoming financial year, with plans to hire 600 people to further fuel growth. Operating as a one-stop solution for all real estate needs, InvestoXpert remains dedicated to driving continued success in the evolving Indian real estate market.Read more

29 Apr 2024

In March 2024, Hyderabad witnessed a decline of 8% in residential property registrations, totaling 6,416 properties, although the total value surged by 12% year-on-year to INR 4,039 crore. The most common price range was between INR 25-50 lakhs, constituting 45% of registrations, while properties over INR 1 crore saw a significant increase to 16%. Apartments sized 1,000-2,000 sq ft dominated registrations, comprising 70% of the total. Rangareddy district led registrations with 46%, followed by Medchal-Malkajgiri at 40%. The weighted average transaction price rose by 12% year-on-year, with plush properties over 3,000 sq ft and valued upwards of INR 5.3 crores dominating the top deals. Q1 2024 launches primarily focused on 2-BHK and 3-BHK units. This underscores the dynamic nature of real estate demand and supply in Hyderabad, with developers adapting their strategies to meet changing preferences.Read more

26 Apr 2024

NARCL has made a firm offer to acquire INR 988 crore of debt from lenders for Essel Infraprojects' road project in Ludhiana. NARCL's offer includes INR 270 crore for the debt, providing lenders with a recovery rate of 27%. The project involves constructing a 78-kilometer four-lane highway between Ludhiana and Talwandi Bhai, passing through Moga in Punjab. Lenders are also open to considering counter-offers from other asset reconstruction companies, as indicated in a notice from BoB Caps. The project has faced significant challenges, including changes in contractors and delays in obtaining necessary clearances from various authorities. These hurdles have delayed the completion of the project, which was initially aimed for a September 2014 finish.Read more

26 Apr 2024

The Yamuna Expressway Authority has relaunched its group housing scheme, offering six plots in sector 22D near Noida International Airport. Aimed at generating at least INR 450 crore in revenue, the scheme follows an unsuccessful tender in 2013. Plots vary in size, with prices ranging from INR 61.5 crore to INR 135.3 crore. Bidders must submit applications and earnest money by May 20, with an e-auction scheduled for June 10, 2024. Payment flexibility allows developers to pay in installments over five years. Proximity to key developments like the proposed film city and Eastern Peripheral Expressway enhances the scheme's appeal.Read more

26 Apr 2024

State-owned construction giant NBCC is considering establishing its own non-banking finance company (NBFC) to lower borrowing costs for critical infrastructure projects, a move unprecedented for an Indian public sector entity. Currently relying on external NBFCs with interest rates between 12% and 14%, NBCC anticipates potential savings of 1-2 percentage points with an in-house NBFC, translating to substantial savings. This initiative could save NBCC over USD 108 million in interest costs over two years. While awaiting approval from the new Indian administration and a license from the Reserve Bank of India (RBI), NBCC's proposed NBFC aims to streamline financing for its projects and potentially support redevelopment projects for other public sector entities. However, challenges such as expertise acquisition and regulatory compliance remain significant hurdles to overcome.Read more

25 Apr 2024

India's office space market is experiencing a surge in demand, driven by the practice of offshoring, wherein businesses relocate operations to foreign countries for cost savings or talent access. According to Knight Frank, India has become a top destination for offshoring, with companies leasing 46% (27.3 million sq. ft) of total office space in 2023. Gulf Cooperation Council (GCC) firms are major players, drawn by India's cost-effectiveness and skilled workforce, increasing their leasing share from 25% to 35% (20.8 million sq. ft) in 2023. While IT remains dominant, diversification into sectors like semiconductors and pharmaceuticals showcases India's appeal. This growth benefits both India's economy and global businesses, with projections indicating continued expansion.Read more