16 Apr 2024

Housing Finance Companies (HFCs) are tightening lending for new construction due to a rise in defaults and stressed assets. With the builder loan mix shrinking to 6.7%, caution prevails among HFCs, who are dealing with high non-performing assets (NPAs) of up to 34%. While this cautious approach may slow down new construction, it could benefit homebuyers by ensuring timely project completion and reducing financial risks for developers. The wholesale GNPA ratio has improved to 10.3%, signaling recovery. As the situation improves, HFCs may resume lending, focusing on financially stable developers and viable projects, fostering a more stable real estate market.Read more

15 Apr 2024

Aadhar Housing Finance Ltd. has received SEBI's approval for an INR 5,000 crore initial public offering (IPO) after filing initial papers in February 2023. The IPO comprises fresh equity issuance of INR 1,000 crore and an offer for sale (OFS) of existing shares worth INR 4,000 crore by Blackstone Group Inc.'s affiliate, BCP Topco VII Pte Ltd. Aadhar caters to low-to-middle-income housing needs, offering various mortgage products. With 471 branches nationwide as of September 30, 2023, and Blackstone's support, Aadhar aims to expand its reach and contribute to India's "Housing for All" initiative.Read more

15 Apr 2024

The recent tax tribunal ruling clarifies that married couples can claim tax benefits under Section 54F of the Income Tax Act when reinvesting the sale proceeds of an asset in a new home, even if they jointly own another flat. This ruling comes after confusion regarding eligibility arose due to conflicting interpretations. The Mumbai bench of the Income Tax Appellate Tribunal (ITAT) clarified that joint ownership of a flat with a spouse does not disqualify individuals from claiming tax exemptions. Taxpayers should disclose all relevant information in their tax returns and consider seeking professional advice, as interpretations may vary across jurisdictions.Read more

15 Apr 2024

The Indian real estate market is improving, thanks to initiatives like the SWAMIH Fund, which completed over 28,000 homes by February 2024. This led to a decrease in unsold inventory and increased liquidity. Buyer demand is strong, with sales rising and construction activity surging. In 2022, completed units increased by 44%. With government support and growing industry recovery, the market offers promising opportunities for homebuyers. The positive trend in the Indian real estate market reflects renewed confidence among investors and developers, signaling a potential for sustained growth in the sector.Read more

12 Apr 2024

IIFL has successfully sold INR 71,800 crore worth of real estate developer loans to Phoenix ARC, backed by Kotak Mahindra Bank, improving its financial health. The sale, fetching an estimated 83% recovery, involved cash (15%) and security receipts (85%). These loans, associated with projects in Noida and Jogeshwari, Mumbai, were auctioned exclusively to Phoenix ARC. This move helps IIFL reduce risky assets, reflected in lower gross and net non-performing assets (NPAs). Challenges persist, including a recent RBI directive limiting gold loan activities, impacting overall AUM. However, with Fairfax India's support and a focus on managing the loan portfolio, IIFL remains poised for growth.Read more

12 Apr 2024

Gameskraft, an online gaming company, purchased an 8.61-acre plot of land in Gurugram, Haryana, for INR 90 crore. Documents revealed the transaction's completion on March 11, 2024, with Gameskraft Technologies Private Limited paying stamp duty of INR 6.3 crore and a registration fee of INR 50,005. The land, designated as agricultural, is situated in Balola village within Gurugram district's Wazirabad sub-tehsil. Despite legal challenges, Gameskraft reported a profit of INR 1,061.86 crore for the fiscal year 2022-23, marking a 14.1% increase. Additionally, the company contested a notice in the Karnataka High Court, resulting in its dismissal in May 2023.Read more

11 Apr 2024

Embassy Office Parks REIT (Embassy REIT) makes a significant expansion move by acquiring Embassy Splendid TechZone (ESTZ), a business park in Chennai, for INR 1,269 crore. This marks Embassy REIT's entry into the Chennai market and aims to raise INR 2,500 crore by selling units to investors, enhancing its financial position for future growth. ESTZ comprises 1.4 million sq. ft of office space, with 95% occupancy by global firms like Wells Fargo and BNY Mellon. The park also offers 1.6 million sq. ft under construction and 2 million sq. ft of development potential, positioning Embassy REIT for further growth in Chennai's thriving office market. Aravind Maiya, CEO of Embassy REIT, emphasizes the acquisition's value addition to their portfolio, expanding it to over 50 million sq. ft and diversifying its presence across India.Read more

11 Apr 2024

The Reserve Bank of India's decision to maintain the repo rate at 6.5% is welcomed by the real estate market, especially homebuyers, ensuring stability in home loan interest rates. Industry experts anticipate sustained momentum in home purchases, driven by robust sales in major cities like Mumbai, Delhi NCR, and Bengaluru. Stable interest rates are expected to boost demand in the affordable and mid-segment housing market. This decision reinforces investor confidence and supports future investment and development in the real estate sector, aligned with a projected GDP growth rate of 7% for FY2025.Read more

10 Apr 2024

Starting from April 1, 2024, Jaipur's circle rates surged by 10%, impacting property purchase costs. This increase, implemented by the Rajasthan government as part of its annual budget, aims to boost stamp duty revenue. Jaipur's diverse property market spans from premium areas like C-Scheme and MI Road, with rates ranging from INR 90,000 to INR 1,25,000 per sq. ft, to more affordable options in Amer-Jal Mahal, priced between INR 12,000 and INR 42,000 per sq. ft. While this hike may elevate registration and stamp duty fees, previous year's stamp duty rebates remain unchanged, potentially mitigating some additional costs. Despite the increase, Jaipur remains an appealing destination with various options catering to different budgets and preferences.Read more

10 Apr 2024

Indian investors are increasingly turning to Real Estate Investment Trusts (REITs) and Infrastructure Investment Trusts (InvITs) as avenues for stable returns and capital appreciation. Fundraising through these trusts saw a significant surge, reaching INR 17,116 crore (USD 2.7 billion) in the fiscal year 2023-24, an increase from the previous year's INR 1,166 crore (USD 18.2 million). SEBI's regulatory changes, such as reducing minimum lot sizes and allowing bank loans for purchases, have facilitated easier access to these investment options. Additionally, the government's focus on infrastructure development provides a steady pipeline of assets for InvITs, appealing to investors seeking stable returns. SEBI's amendments enabling fractional ownership through Small and Medium (SM) REITs further democratize real estate investment, potentially growing the market to over USD 5 billion by 2030.Read more