08 Aug 2024

From January to June 2024, Millennials and Gen Z accounted for over 60% of property purchases in Bengaluru, marking a significant shift in the real estate market. Data from NoBroker reveals that Gen Z, aged 11-26, made up 16% of these sales, while Millennials, aged 27-42, dominated the rest. Properties ranged from INR 70 lakh to INR 1.1 crore, reflecting young buyers' willingness to invest significantly. Notably, 67% of these buyers are from dual-income households. The trend includes increasing female participation and a preference for under-construction projects, signalling a transformative phase in the housing market driven by younger generations.Read more

08 Aug 2024

Bengaluru tops India's residential real estate market, with JLL Research reporting 18,548 housing units sold and 16,537 new homes launched between April and June 2024. The city represents 21% of national new launches and 23% of home sales. The majority of new launches are in the upper-mid segment, priced between INR 1 - INR 3 crore. Whitefield and areas like Hosur Road have driven much of this activity. The average property price rose by 15%, and unsold inventory dropped by 21% year-on-year. Bengaluru's robust performance underscores its strong demand and dynamic real estate sector.Read more

08 Aug 2024

Nexus Select Trust reported an 8% YoY increase in net operating income for Q1 FY25, reaching INR 412.7 crore. Revenue from operations rose 6% to INR 553.8 crore, driven by rental-escalations and increased retail occupancy. Tenant sales hit INR 3000 crore, with malls' occupancy at 97.4%. The REIT signed term-sheets for two acquisitions totaling 8 lakh square-feet and plans to acquire five more assets, aiming to double its retail NOI by FY29. The board approved raising INR 1700 crore through debt-securities. A distribution of INR 325.3 crore was declared, with a record-date of August 7, 2024.Read more

07 Aug 2024

Embassy Office Parks REIT reported 3% increase in net-operating-income to INR 757.5 crore for Q1 FY25. The board declared a INR 531 crore distribution, or INR 5.60 per-unit. Leasing activity rose 70% YoY, totaling 1.9 million sq. ft. Key areas like Bengaluru, Noida, Chennai show strong demand, driven by Global Capability Centres. The company reaffirmed its NOI guidance of INR 3,210-3,350 crore for FY25. The portfolio includes 51 million sq. ft. across major cities, with strategic amenities like hotels and a solar park. Debt raised totaled INR 1,450 crore at an 8.06% rate.Read more

07 Aug 2024

The WSB Real Estate Partners has raised over INR 700 crore through its fourth SEBI-registered Category II Alternative Investment Fund (AIF) to invest in mid-income and affordable housing projects in tier I and select tier II cities. The fund aims for a INR 1,000 crore corpus, expandable by another INR 1,000 crore. It has a six-year term, extendable by two years. Key investors include family offices, corporates, offshore investors, and HNIs. WSB has initiated two investments and has a strong pipeline. The fund focuses on structured debt, secured by collateral, with an aim to deliver favorable risk-adjusted returns.Read more

07 Aug 2024

Last week, SEBI banned real estate company Omaxe, along with its Chairman Rohtas Goel, Managing Director Mohit Goel, and three others from the securities market for two years due to discrepancies in financial statements. The ban includes prohibitions on serving as directors or holding key managerial roles in any publicly traded company. Additionally, a fine of INR 47 lakh was imposed on 16 entities, with penalties ranging from INR 1 lakh to INR 7 lakh, payable within 45 days. SEBI's 126-page order revealed that the company engaged in fraudulent activities, misrepresenting financials to stabilise its stock price while misleading investors.Read more

07 Aug 2024

Singapore's Vantage Point Asset Management has acquired the financially troubled Alchemist Infra Realty for approximately INR 470 crore through a bankruptcy process. The National Company Law Tribunal (NCLT) approved the acquisition, with lenders unanimously supporting the revival plan. Initially triggered by a default on INR 401 crore in dues, the resolution plan aims to address INR 1,293 crore in claims. Experts suggest that takeovers are crucial for reviving stalled real estate projects. Despite legacy challenges, rising property values and investor interest indicate potential recovery for the Indian real estate sector.Read more

07 Aug 2024

The Income Tax (I-T) Department has clarified new guidelines for calculating long-term capital gains (LTCG) taxes on real estate acquired before April 1, 2001. Property owners can now choose between using the fair market value (FMV) as of that date or the original purchase price to determine their acquisition cost. For properties acquired before April 1, 2001, the FMV cannot exceed the stamp duty value. The indexed acquisition cost, calculated using the 2024-2025 Cost Inflation Index (CII) of INR 363, impacts taxable gains and LTCG tax, which is 20% on gains exceeding this indexed cost. This flexibility allows property owners to select the lower taxable amount, potentially reducing their LTCG tax liability. As property transactions rise, investors can use these guidelines to optimise their tax outcomes.Read more

06 Aug 2024

Private equity (PE) investments in Indian real estate soared to USD 3 billion in the first half of 2024, marking a 15% increase from USD 2.6 billion in H1 2023, according to Knight Frank India. The warehousing sector led with 52% of total investments, reflecting a shift from the traditional office sector dominance. Mumbai and Bengaluru were key beneficiaries, attracting substantial investments, particularly in warehousing and residential properties. Economic recovery, favorable policies, and infrastructure development are driving this growth, though challenges like regulatory hurdles remain.Read more

06 Aug 2024

In June, the Kolkata Metropolitan Area saw a record 25% increase in residential property registrations compared to the previous year. This surge occurred while a stamp duty discount was available. The state government will now end these benefits, including a 2% stamp duty reduction and a 10% circle rate cut, on July 1, 2024. Since these incentives began in July 2021, approximately 140,000 homes were registered. Despite the rebate ending, Knight Frank anticipates continued market growth due to strong demand. The company also reported new trends in the important zones, such as the South and North, within the city.Read more