Taxation & Finance

link

Bengaluru and Delhi NCR witnessed steep price movements at 19% and 16% YoY growth respectively

The Indian residential real estate market demonstrates robust performance in Q1 2024, with a notable 10% year-on-year price appreciation nationally across major cities. Bengaluru, Delhi NCR, Ahmedabad, and Pune lead with price hikes exceeding 10%. Despite a marginal 3% year-on-year increase in unsold inventory nationally, Pune sees a significant 10% decline, signaling strong demand. Mumbai Metropolitan Region (MMR) holds nearly 40% of unsold inventory. Average apartment prices per square foot showcase variations, with Bengaluru leading at INR 10,377. Bengaluru records the highest annual price surge at 19%, driven by demand in IT hubs. Delhi NCR sees a 16% annual increase, notably along Dwarka Expressway. Pune registers a 10% drop in unsold inventory, coinciding with a 13% annual price rise. Luxury demand and infrastructure projects drive price growth. Going forward, areas like Baner and ...
Read more
cover photo
link

Over INR 43.5 trillion spent on massive infrastructure between 2014-2023

Finance Minister Nirmala Sitharaman highlighted the Indian government's massive infrastructure spending of INR 43.5 trillion between 2014-2023, which boosted GDP growth and lowered logistics costs. A study cited by the minister estimated that every INR 1 spent on capital expenditure increases economic output by INR 4.80 due to the multiplier effect on consumption and investment. Better road connectivity from expanded networks was estimated to potentially lower annual logistics costs by INR 2.4-4.8 trillion. The increased infrastructure spending reflected in capex rising to over 21% of total spending in 2023-24 from 12% in 2013-14....
Read more
cover photo
link

CBI arrests former DHFL director Dheeraj Wadhawan in bank fraud case

The CBI has arrested Dheeraj Wadhawan, former director of Dewan Housing Finance Limited (DHFL), in connection with allegedly defrauding a consortium of 17 banks of INR 34,000 crores. Wadhawan and his brother Kapil Wadhawan, who was earlier arrested, have been charged by the CBI along with 73 other entities. While the special court had granted them bail citing an incomplete investigation, the High Court and Supreme Court overturned this decision. DHFL allegedly committed financial irregularities, diverted funds, fabricated books and routed money to entities linked to the Wadhawans. Currently, Dheeraj Wadhawan, Kapil Wadhawan and another accused Ajay Nawandar are in judicial custody....
Read more
cover photo
link

LIC Housing Finance Q4 FY24 net profit declines 9.14% to INR 1,082 crore amidst strong loan growth and improved asset quality

LIC Housing Finance (LIC HFL) reported a net profit of INR 1,082 crore for Q4 FY24, a 9.14% decline from INR 1,190 crore in Q4 FY23. Despite the dip, the company showcased strength in key areas, including a 14% rise in total loan disbursements to INR 18,232 crore and a 12% increase in net interest income to INR 2,238 crore. With improved asset quality, evidenced by a reduction in GNPAs to 3.31%, and a healthy debt-to-equity ratio of 8.77, LIC HFL remains a leading player in India's mortgage market, focusing on growth and financial health amidst rising interest rates....
Read more
cover photo
link

Artemis Medicare secures INR 330 crore investment for expansion

Artemis Medicare, a leading healthcare provider in North India, is poised for significant growth with a new INR 330 crore investment from the International Finance Corporation (IFC). The funding will boost bed capacity by at least 200 beds across existing facilities, enhancing patient care. Artemis plans to introduce advanced specialty services and expand beyond Delhi NCR, establishing cardiac care centers in Tier 2 and Tier 3 cities. With a strong reputation and revenues exceeding INR 922 crore in FY24, this investment underscores confidence in Artemis' growth strategy and commitment to improving healthcare accessibility nationwide....
Read more
cover photo
link

Pune real estate booms as April 2024 sees 57% rise in property sales

Pune's real estate market is thriving amidst a national slowdown. Knight Frank India's report reveals a 57% year-on-year increase in property transactions, with 13,734 units sold in April 2024. This surge is driven by affordable housing options, attracting young professionals. Homes priced between INR 50 lakh and INR 1 crore dominate the market, representing 34% of sales. Smaller apartments under 500 sq. ft are also in high demand, comprising 39% of transactions. Central Pune remains the prime residential hub, while West Pune is emerging as a new hotspot. Millennials are the primary buyers, accounting for 58% of purchases....
Read more
cover photo
link

Repco Home Finance reports 9% growth in net profit, driven by rising loan disbursements

Repco Home Finance demonstrated a stable performance in Q4 FY24, with a 9% growth in net profit to INR 108 crore (USD 1.3 million) compared to the previous year. This growth is attributed to a significant rise in loan disbursements, totaling INR 895 crore (USD 10.7 million), reflecting increased demand for homeownership, particularly among the self-employed segment. With over half of its outstanding loan portfolio catering to self-employed individuals, Repco addresses a critical gap in the housing finance landscape. Boasting a healthy capital adequacy ratio of 31.9% and an AUM of INR 13,513 crore (USD 162.7 million), Repco Home Finance is well-positioned for continued success in providing affordable housing solutions to diverse demographics in India....
Read more
cover photo
link

Investment firms close USD 7 billion gap in commercial real estate loans

Major investment firms are leveraging a collective USD 7 billion in new lending capacity to capitalize on the rebounding commercial real estate market. With banks constrained, firms like PGIM, LaSalle, and M&G target sectors like logistics, data centers, and high-end offices, projected to reach a combined value of USD 760 billion by 2026. Yet, concerns over the "shadow banking" trend persist, as non-bank lenders in Europe rise to 20-30%. Regulators stress robust risk assessment amid worries about systemic risks. While bridging a USD 7 billion market gap, transparency and regulation are essential for long-term financial stability and innovation in lending practices....
Read more
cover photo
link

Shriram Finance exits housing market in INR 4,630 crore deal with Warburg Pincus

Leading non-banking financial company (NBFC) Shriram Finance has announced the sale of its housing finance subsidiary, Shriram Housing Finance (SHFL), to private equity giant Warburg Pincus for INR 4,630 crore. This deal, Warburg Pincus' largest investment in India to date, marks a strategic shift for Shriram Finance, allowing them to concentrate on their core vehicle and small business lending segments. Warburg Pincus plans to infuse an additional INR 1,000 crore into SHFL post-acquisition, highlighting their commitment to the rapidly growing affordable housing finance market in India. This transaction, pending regulatory approvals, underscores significant confidence in SHFL's growth potential and the broader Indian financial sector....
Read more
cover photo
link

Mumbai's USD 2 trillion redevelopment opportunity

With large parts of Mumbai built 60-80 years ago and no open land available, redevelopment of the city's aging housing stock is the only way for developers to access prime real estate in India's financial hub. Over 25,000 housing societies across the city have been earmarked for redevelopment by authorities, presenting a USD 2 trillion opportunity for builders according to industry estimates. While legal and logistical complexities exist, increased FSI incentives and cluster redevelopment policies are driving momentum in the market. Major developers are actively bidding for redevelopment projects, with some announcing plans worth billions. Coordinated efforts by authorities and builders will be key to tackling issues and realizing the true potential of Mumbai's redevelopment....
Read more
cover photo
link

ASK Property Fund doubles investment with Avon Vista exit

ASK Property Fund, affiliated with ASK Asset & Wealth Management Group, has exited the Avon Vista housing project in Pune, developed by Naiknavare Developers. The firm doubled its initial INR 80 crore investment to INR 156 crore, achieving a 21% IRR and 2x capital multiple. The timely completion and robust sales of the 613-unit project facilitated this successful exit. CEO Amit Bhagat highlighted the investment's self-liquidating nature, driven by cash flow from sales and milestone-linked collections. This strategic move underscores the firm's adeptness in real estate investment and project management....
Read more
cover photo
link

Rising office rents: Delhi-NCR leads with 8.8% rise, flex spaces gain momentum

Office rents rose up to 8% in Q1 2024, led by Delhi-NCR with an 8.8% rise, surpassing pre-pandemic levels. Colliers' report highlighted robust demand and high-quality supply as driving factors. Delhi-NCR saw a weighted average quoted rent increase to INR 101.5 per sq ft/month. Chennai and Pune followed with 6.6% and 4.2% growth respectively. Flex spaces gained prominence, constituting 8.7 million sq ft of leasing in 2023. Global Capability Centre (GCC) leasing activity in India accounted for 37% of total office leasing, with 5 million sq ft leased. GCC activity is projected to further solidify India's position as a premier hub....
Read more
cover photo
link

Builders in Mumbai grapple with skyrocketing TDR prices

Over the past six months, slum redevelopment TDR (Transfer of Development Rights) rates in Mumbai have spiked sharply, impacting builders' profit margins and construction project timelines. TDR rates have doubled in some areas like Mulund and Borivali, with developers now paying 120% of the ready reckoner rate compared to 50-55% earlier. The recent release of 30,000 square meters of additional TDR has failed to ease market pressures, with the limited supply being quickly absorbed. Most developers are reluctant to purchase at current inflated prices due to the significant hit on their estimated profit. While some have no alternative but to buy to meet delivery commitments, others are deferring TDR purchases or exploring non-TDR redevelopment options....
Read more
cover photo
link

Anarock Group targets INR 1,500 crore revenue by 2027

Anarock Group, a leading real estate consultancy in India, achieved remarkable financial success in FY24, with revenue soaring by 36% to INR 566 crore, compared to INR 416 crore in the previous fiscal year. This growth, attributed to a booming residential market driven by increased demand from first-time buyers, underscores Anarock's strategic positioning and advanced technology platform. Diversification across key business verticals contributed to overall growth, with plans for further expansion through private equity funding and workforce augmentation. With ambitious revenue targets set for FY27, aiming to reach INR 1,500 crore, Anarock remains optimistic, leveraging technology and expertise to capitalize on India's evolving real estate landscape and propel future growth....
Read more
cover photo
link

Progress in Noida real estate: 20 builders deposit 25% dues for homebuyers' registry

In Noida, 20 out of 57 real estate developers involved in stalled housing projects have paid 25% of their dues to complete homebuyers' registration, yielding approximately INR 450 crore for the Noida Authority. Four builders have already deposited INR 83.47 crore, with a total of INR 224.45 crore received by May 9, 2024. Pending registries and delayed possession remain critical issues. 18 builders have agreed to pay, with assurances from some in sectors 76, 78, and 168. 1,604 registries await completion. CREDAI representatives attended meetings with Noida and Greater Noida Authorities to address these challenges, following UP government directives....
Read more
cover photo
link

Patna Municipal Corporation surpasses revenue target, collects INR 11.76 crore in April

In April, the Patna Municipal Corporation (PMC) earned INR 11.76 crore in property taxes and waste collection costs, representing an 88.16% increase over the previous year. The increase in revenue can be ascribed to PMC's 5% rebate incentive for timely filers and the use of online payment platforms. Municipal Commissioner Animesh Kumar Parashar emphasised the tremendous increase in online tax payments, with 58% of taxpayers using digital transactions. PMC's creative initiatives, such as QR code-enabled demand notifications and door-to-door visits, demonstrate its dedication to increasing tax compliance and revenue collection....
Read more
cover photo

Advertisement

link

Bengaluru and Delhi NCR witnessed steep price movements at 19% and 16% YoY growth respectively.

The Indian residential real estate market demonstrates strong performance in Q1 2024, with a notable 10% year-on-year price appreciation nationally across major cities. Bengaluru, Delhi NCR, Ahmedabad, and Pune lead with price hikes exceeding 10%. Despite a marginal 3% year-on-year increase in unsold inventory nationally, Pune sees a significant 10% decline, signaling strong demand. Mumbai Metropolitan Region (MMR) holds nearly 40% of unsold inventory. Average apartment prices per square foot showcase variations, with Bengaluru leading at ?10,377. Bengaluru records the highest annual price surge at 19%, driven by demand in IT hubs. Delhi NCR sees a 16% annual increase, notably along Dwarka Expressway. Pune registers a 10% drop in unsold inventory, coinciding with a 13% annual price rise. Luxury demand and infrastructure projects drive price growth. Going forward, areas like Baner and Chi...
Read more
cover photo
link

Brihanmumbai Municipal Corporation (BMC) collects INR 3905 crore, faces INR 595 crore property tax shortfall

The Brihanmumbai Municipal Corporation (BMC) is dealing with a substantial shortfall in property tax collection for FY24, despite revising its target down to INR 4,500 crore from the initial INR 6,000 crore. To bridge this gap, Municipal Commissioner Bhushan Gagrani has devised a multifaceted strategy. This includes expediting the auctioning of assets seized from large defaulters, conducting comprehensive property inspections to reassess tax assessments, and imposing stricter penalties for late payments. The success of these measures is critical for maintaining essential civic services in Mumbai, underlining the urgency of addressing the shortfall in property tax revenue....
Read more
cover photo
link

IDFC Capital gains INR 298 crore from Total Environment project in Bengaluru

HDFC Capital exited a Total Environment project in Bangalore, yielding nearly INR 300 crore. Initially, it invested INR 229 crore in a residential project in Whitefield, Bangalore, aiming to develop 1 million square feet under "Pursuit of a Radical Rhapsody." Founded in 1996, Total Environment has delivered 5.5 million square feet of residential and commercial space, with 14 million square feet currently under construction. The Bangalore-based developer generated INR 527 crore returns, providing an exit to HDFC Capital while also returning INR 250 crore against other investments in FY 2023-24. HDFC Capital manages four SEBI-registered Category II Alternative Investment Funds, forming a USD 3 billion platform....
Read more
cover photo
link

Piramal Enterprises approves merger of subsidiary Piramal Capital & Housing Finance with parent company

The board of directors of Piramal Enterprises, a diversified non-bank finance company, has approved the merger of its wholly-owned subsidiary Piramal Capital & Housing Finance (PCHFL) with the parent company Piramal Enterprises (PEL). The new entity will be named Piramal Finance Limited (PFL) post-merger. The primary objectives of the consolidation are to simplify the group structure, create a more flexible entity and give shareholders direct access to the entire lending business. It is applying to RBI to convert its HFC license to an NBFC-ICC (non-banking financial company-investment and credit company) license. Piramal Enterprises reported a net profit of INR 137 crore for Q4 FY24....
Read more
cover photo
link

Shifting Trends: The rise of luxury housing in India's real estate market

A recent ANAROCK report analysed housing trends across the top 7 cities in India from Q1 2019 to Q1 2024. A key finding was the rising prominence of luxury housing segments compared to affordable housing. In Q1 2024, luxury homes accounted for 21% of unit sales versus just 4% in Q1 2019. New luxury housing supply also increased from 9% of total launches in Q1 2019 to 25% in Q1 2024. Meanwhile, affordable housing sales declined from 37% to 20%. Non-luxury segments gained greater share in cities like Bengaluru, Chennai, Hyderabad and Pune. The data indicates developers are aligning new project launches more towards prevailing demand for higher-priced luxury properties....
Read more
cover photo
link

Outstanding credit in the housing sector reaches record high of INR 27.23 lakh crore

Outstanding loans for housing have grown substantially over the past two years, according to RBI data. Housing credit increased nearly INR 10 lakh crore between FY22-FY24 to reach a record high of INR 27.23 lakh crore in March 2024. This growth can be attributed to pent-up demand during the pandemic and rising sales across segments. The government's push for affordable housing has increased accessibility. Reports show price appreciation of 50-100% in major cities over the past two years, leading to larger average loan sizes. Commercial real estate lending has also risen significantly from INR 2.97 lakh crore to INR 4.48 lakh crore between March 2022-2024....
Read more
cover photo
link

Home First Finance posts 30.5% increase in net profit this quarter, reaching INR 83.5 crore

Home First Finance Company India Ltd reported a robust performance for the March quarter, with net profit surging 30.5% to INR 83.5 crore and quarterly interest income rising 38% to INR 283 crore. Assets under management grew by 35% to INR 9698 crore, with loan disbursement up 32% to INR 3963 crore. The company aims to expand its portfolio by 30% in FY 2025, with plans to open 20-25 branches. They recommended a 170% dividend and approved raising INR 700 crore through debentures....
Read more
cover photo
link

Bajaj Group raises record INR 12,095 crore in bond issuances

Bajaj Housing Finance and Bajaj Finance, two entities within the Bajaj Group, collectively raised INR 12,095 crore through bond issuances, capitalizing on favorable debt market conditions driven by recent central bank actions. Bajaj Housing Finance secured INR 4,500 crore through two non-convertible debenture issuances, with ICICI Securities Primary Dealership facilitating the transactions. Bajaj Finance raised INR 7,595 crore through bonds maturing in 2034, with HDFC Bank as the sole arranger. The surge in borrowing activity coincides with a notable decline in government bond yields, spurred by the Reserve Bank of India's announcement of a sovereign bond buyback, injecting liquidity into the banking system....
Read more
cover photo
link

Grihum Housing Finance reports 21% rise in net profit, AUM grows by 32% in FY24

Grihum Housing Finance reported a 21% rise in net profit to INR 140 crore for FY24, driven by a 32% increase in assets under management to INR 8,277 crore. Organic disbursements reached a record INR 2,914 crore, up 26% year-over-year. The company expanded sourcing channels and added 28 new branches, taking the total to 210. Revenue grew 46% to INR 1,046 crore with net interest margin of 8.3% and cost of borrowings at 8.1%. MD and CEO Manish Jaiswal credited the results to Grihum achieving a 30% CAGR and establishing itself as a national housing finance company serving over 77,000 customers....
Read more
cover photo
link

ICRA forecasts 12-15% revenue growth for construction sector entities in FY25

In FY2025, India's construction industry anticipates robust growth, following a stellar FY2024. With the government's commitment to infrastructure evident in increased capital expenditure, ICRA maintains a stable outlook, projecting moderate margin expansion despite competition challenges. While profitability may remain below pre-Covid levels due to the expiration of certain schemes, the moderation in commodity prices, notably steel, offers relief. Stakeholders must navigate challenges with vigilance, leveraging opportunities as they arise. Monitoring market dynamics and policy shifts will be crucial for success in the upcoming fiscal year....
Read more
cover photo
link

SEBI proposes measures to ease trading in privately placed InvITs and REITs

The Securities and Exchange Board of India (SEBI) has proposed lowering the minimum trading lot size for privately placed infrastructure investment trusts (InvITs) from the current INR 1-2 crore to INR 25 lakh. This aims to increase liquidity in the secondary market for InvIT units by allowing more individual and retail investors to participate. A smaller lot size would help diversify investment portfolios and better manage risks. In addition, SEBI has put forth several measures to reduce compliance burden for InvITs and real estate investment trusts (REITs), including setting a timeline of 5 days for profit distributions and giving flexibility to set record dates with 2 days' notice to exchanges....
Read more
cover photo
link

HDFC Capital profitably exits Bengaluru project, gains INR 300 Crore in return

HDFC Capital, the real estate private equity arm of HDFC Group, has exited the "Pursuit of a Radical Rhapsody" project in Bengaluru, generating a remarkable return of close to INR 300 crore, surpassing their initial investment of INR 229 crore. Developed by Total Environment, the project comprises 4.4 million square feet of residential space and 500,000 square feet of commercial development. This successful exit underscores HDFC Capital's strategic investment approach and ability to create value. Partnering with esteemed developers like Total Environment, known for quality, reflects HDFC Capital's commitment to promoting affordable and mid-income housing in India. This achievement highlights the potential for strong returns in Bengaluru's real estate market and HDFC Capital's pivotal role in shaping India's housing landscape....
Read more
cover photo
link

Aptus Value Housing Finance reports 21% rise in Q4FY24 PAT

Aptus Value Housing Finance saw continued growth in FY24 with a 22% rise in PAT to INR 612 crore. Total disbursements for the housing financier jumped 31% to INR 3,127 crore for the full year, reflecting robust demand for housing loans. In Q4FY24 alone, disbursements grew 45% to INR 968 crore. Aptus expanded its reach through the addition of 31 new branches, taking its total network to 262 branches across seven states. Commenting on the results, MD P Balaji expressed satisfaction with the company's performance and stated that significant accomplishments were made during the fiscal....
Read more
cover photo
link

Commercial Real Estate lending surges as banks embrace regulatory reforms and REITs

Data from the Reserve Bank of India shows that scheduled commercial banks' commercial real estate portfolios grew nearly 23% year-on-year in March 2024, significantly higher than the 8.52% growth seen the previous year. This surge in commercial real estate lending by banks reflects positive changes in the sector in recent years, including regulatory reforms, growth of real estate investment trusts, and developers taking on less debt, which have boosted banks' confidence. Industry experts expect banks' commercial real estate lending to continue growing strongly due to healthy demand, a clearer regulatory framework, and avenues like REITs mitigating risks....
Read more
cover photo
link

Blackstone in talks to acquire Adani Group's Inspire BKC commercial project

US private equity giant Blackstone is reportedly in advanced negotiations to acquire Inspire BKC, an 800,000 sqft office project in Mumbai developed by Adani Realty. As per reports, Blackstone may invest Rs 1,800-2,000 crore for the acquisition. Located in the Bandra Kurla Complex business district, Inspire BKC currently has tenants like Novartis, Reliance Nippon Life Insurance and MUFG Bank. Co-working operator Bhive recently leased over 62,000 sq ft in the building. Adani has been looking to sell the asset and previous discussions were held with Brookfield and Shapoorji Pallonji. Talks with Blackstone were halted in 2020 due to the pandemic but have now revived with strong demand and occupancy levels....
Read more
cover photo
link

Nisus Finance launches second realty fund in Mauritius

The Indian real estate sector is experiencing an influx of foreign investment, notably in stressed assets. Nisus Finance, based in Mumbai, has launched the Nisus India Opportunity Fund in Mauritius, targeting distressed real estate projects. This initiative aims to attract foreign capital to revitalize stalled developments. Building on the success of their Singapore-based fund, Nisus Finance's new venture signals growing international interest in India's real estate market. By addressing stressed assets, the fund not only offers potential for high returns but also contributes to project revival, job creation, and overall market growth. This move reflects increased investor confidence in India's real estate sector and boosts liquidity while addressing critical market needs....
Read more
cover photo

Advertisement