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

29 Dec 2023

In 2023, India's major cities experienced an unprecedented surge in office leasing, reaching a record 62.3 million square feet, a 12% increase from the previous year, according to a report by Savills India. Bengaluru, Delhi-NCR, and Mumbai led, contributing to nearly 60% of gross leasing. Mumbai saw a remarkable 51% increase, totalling 10.1 million square feet, fuelled by tech and consulting occupiers. Bengaluru, despite a 10% YoY decline, dominated with 15.6 million square feet. Delhi-NCR maintained 11.3 million square feet, while Hyderabad and Chennai recorded 34% and 32% increases, respectively. Pune reported 7.1 million square feet, an 11% rise. New supply reached 53.3 million square feet, with Bengaluru and Hyderabad contributing 61%. The resilient and adaptable office market signals a promising future for India's commercial real estate.Read more

29 Dec 2023

Sachin Tendulkar's sports management company, SRT Sports Management, led by the cricket legend and his wife Anjali, has leased two apartments on Mount Mary Road in Mumbai's Bandra suburb. The lease, registered on December 7, involves monthly rentals of Rs 10.83 lakh for both 3,358 sq ft apartments located on the fifth floor of Raheja Bay. The exact lease tenure remains undisclosed. The company secured the deal directly from the developer Ferani Developers. SRT Sports Management is involved in managing the iconic cricketer's social and commercial engagements.Read more

28 Dec 2023

ICICI Securities, the financial services arm of ICICI Bank, secures over 188,000 square feet of office space in Mindspace Juinagar, Navi Mumbai, through a 12-year lease. The deal with Newfound Properties & Leasing entails monthly rentals of Rs 92.15 lakh, escalating 4% annually. Commencing on January 1, 2024, the lease includes exclusive access to 190 parking slots. The BFSI sector's rising office space demand, outpacing IT, is evident in this notable transaction, showcasing sustained growth in India's 2023 office sector. Despite global challenges, the year stands to surpass the 2017–2019 average in office leasing activity in India.Read more

28 Dec 2023

In the current fiscal year, global investors have exercised caution in the Indian real estate sector, with PE inflow registering a significant decline of 44% at USD 3 billion, compared to the previous year's USD 5.36 billion, according to Knight Frank's report. This trend, persisting since 2021, reflects near-record low deal volumes with only 23 transactions in 2023. Geopolitical uncertainties and a high-interest rate environment have restrained investments, notably from the US and Canada. However, Singapore has emerged as a key contributor, representing over 50% of total inflow. Office assets lead PE investments at 58%, followed by warehousing at 23%, and residential properties at 19%. Mumbai attracts the highest investments, signalling potential positive shifts with rising interest from Asian private equity players as global challenges ease.Read more

28 Dec 2023

The Bruhat Bengaluru Mahanagara Palike (BBMP) is undertaking a comprehensive initiative to revamp property tax collection in Bengaluru. Of the city's estimated 4 million properties, only 2.02 million pay taxes, with over 1.5 million lacking 'A' or 'B' khata documentation. BBMP is launching a program to integrate these unregistered properties into the system, enhancing revenue collection. The goal is to collect Rs 4,790 crore in property tax for FY 2023-24, surpassing the previous year's Rs 3,155 crore.Read more