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  • Re : Indian Real Estate News

    Construction of PMAY houses in Punjab, Haryana & Himachal Pradesh marred by slow pace of work

    Read more at:
    https://realty.economictimes.indiati...-work/93205910



    Out of 3,02,502 houses sanctioned in the three states, only 1,15,645 have been completed. The region’s completion rate of 38.22% is far lower than the national average of 50%.


    CHANDIGARH: Construction of houses under the Pradhan Mantri Awas Yojana (Urban) in the region of Punjab, Haryana and Himachal Pradesh has been marred by the slow pace.

    Out of 3,02,502 houses sanctioned in the three states, only 1,15,645 have been completed. The region’s completion rate of 38.22% is far lower than the national average of 50%.

    The central government launched the ambitious ‘Housing for All Mission’ on June 25, 2015, which is being implemented Union ministry of housing and urban affairs under Pradhan Mantri Awas Yojana-Urban (PMAY-U) by giving central assistance to states/Union territories (UTs) for providing all-weather pucca houses to eligible urban beneficiaries.

    Haryana has the lowest completion rate of 32.09% as it has managed to complete only 53,088 houses, while 87,656 have been grounded construction out of 1,65,427 sanctioned, according to data tabled in Lok Sabha on Thursday. The neighbouring state of Punjab has completed 44.23% by delivering 54,857 houses, while 1,00,290 units are currently grounded for construction out of 1,24,022 sanctioned houses. The hill state of Himachal Pradesh emerged as the best performer among the three states by completing 58.99% of the 13,053 approved houses.

    The analysis shows that under the beneficiary-led construction (BLC) component of PMAY-U in which the central government provide financial assistance up to Rs 1.5 lakh to beneficiaries belonging to the economically weaker sections (EWS) category for either construction of houses or upgradation of their existing houses, only 17.21% of the sanctioned 67,649 houses have been completed in Haryana, 19.63% out of 76,230 in Punjab and 53.68% of 10,409 houses sanctioned in Himachal Pradesh have been finished.

    In the affordable housing in partnership (AHP) component of PMAY-U, in which financial assistance is provided to EWS houses being built in various partnership models by states/UTs, including private sector and industries, 50,000 houses have been sanctioned in Haryana, of which none has been grounded for construction and completed. In Punjab, 176 houses out of 570 sanctioned have been completed.

    Under the in situ slum redevelopment (ISSR) component of PMAY-U in which Rs 1 lakh per house is given for all houses built for eligible slum dwellers, 39.43% of the sanctioned 3,593 houses have been completed in Haryana. The completion rate of Punjab in this component stands at 58.61% while in Himachal 300 houses have been sanctioned of which 104 are grounded for construction but no house is complete.

    The central government has advised the states to expedite the construction of sanctioned houses so that all houses are completed within the stipulated timeline as per the detailed project report submitted by them.








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    • Re : Indian Real Estate News

      DLF's net profit up 39% at Rs 469.57 crore in Q1 FY23

      Read more at:
      https://realty.economictimes.indiati...-fy23/93212998



      In a statement, DLF said its sales bookings jumped two-fold to Rs 2,040 crore during the April-June period of this fiscal year, compared with the year-ago period.


      NEW DELHI: Realty major DLF Ltd on Friday reported a 39 per cent increase in its consolidated net profit to Rs 469.56 crore in the quarter ended in June on better sales. Its net profit stood at Rs 337.16 crore in the year-ago period.

      Total income rose to Rs 1,516.28 crore in the first quarter of this fiscal from Rs 1,242.27 crore in the corresponding period of the previous year, according to a regulatory filing.

      In a statement, DLF said its sales bookings jumped two-fold to Rs 2,040 crore during the April-June period of this fiscal year, compared with the year-ago period.

      "Residential demand continues to exhibit sustained momentum. The high demand for luxury homes has been a key trend that is expected to continue," the company said.

      DLF also highlighted that its luxury project 'The Camellias' contributed Rs 352 crore to sales bookings during the quarter.

      "While rising interest rates may pose some challenges, we expect this structural recovery in the residential segment to continue," DLF said.

      The company would continue to bring newer offerings across multiple segments and geographies.

      It would also remain committed to surplus cash generation from operations.

      "We generated surplus cash of Rs 421 crore during the quarter which led to further deleveraging and consequently our Net Debt at the end of quarter stood at Rs 2,259 crore, one of the lowest levels," the company said.

      DLF is the largest real estate company in terms of market capitalisation.

      It has so far developed more than 153 real estate projects comprising over 330 million square feet of area.

      The Group has 215 million square feet of development potential across residential and commercial segments.

      The group has a rent yielding commercial portfolio of over 40 million square feet.
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      • Re : Indian Real Estate News

        Unitech founder Ramesh Chandra granted medical bail by Delhi HC

        Read more at:
        https://realty.economictimes.indiati...hi-hc/93247419



        The court noted that from the medical record, it was clear that Chandra's condition was "quite serious" and his ailments "have assumed larger proportions" on account of age.


        NEW DELHI: The Delhi High Court has granted eight-week medical bail to realty firm Unitech's founder Ramesh Chandra in a money laundering case against him. Justice Jasmeet Singh released Chandra on medical grounds and asked him to furnish a personal bond to the tune of Rs 25,000 with a surety bond of the like amount.

        The court noted that from the medical record, it was clear that Chandra's condition was "quite serious" and his ailments "have assumed larger proportions" on account of age.

        "He is suffering from cognitive impairment and dementia. He is also in need of cardiological as well as neurological assistance and has had numerous falls, weight loss, memory loss, etc.," noted the court in its order dated July 28.

        "For the above reasons, I am of the view that the petitioner needs to be enlarged on medical bail for a period of eight weeks," the court said.

        While directing his release, the court asked Chandra not to use any mobile phone and to remain in his house except for visits to the hospital.

        Chandra, represented by advocate Vishal Gosain, submitted that he was 85 years old and was suffering from cognitive impairment, neurological and cardiological ailments and was in urgent need of medical attention.

        There may be a situation where urgent life-saving medication, oxygen, and injection may also be required but the same will not be available while he is in custody, he further said.

        In the order, the court asked Chandra not to communicate with, or come into contact with any of the prosecution witnesses, or any member of the victim's family, or tamper with the evidence of the case.

        The court also said that for every trip to and from the hospital, he shall inform the investigating officer concerned before leaving and after returning back.

        The Enforcement Directorate told the court that all necessary medication as well as medical assistance was being provided to the accused in jail and if he is released on medical bail, he would interfere with the investigation.
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        • Re : Indian Real Estate News

          HC restrains ED from taking coercive steps against Piramal Realty assets

          Read more at:
          https://realty.economictimes.indiati...ssets/93286607



          ED has alleged that Omkar Group took a Rs 410 crore loan from Yes Bank to construct buildings for slum dwellers under the Slum Rehabilitation Authority (SRA) scheme at Wadala (in Mumbai) but redirected the money to other companies.


          The Delhi High Court last week restrained the Directorate of Enforcement (ED) from taking coercive steps against properties worth ₹410 crore of M/s Piramal Realty Pvt Ltd that the federal agency had provisionally attached in January.

          ED has alleged that Omkar Group took a Rs 410 crore loan from Yes Bank to construct buildings for slum dwellers under the Slum Rehabilitation Authority (SRA) scheme at Wadala (in Mumbai) but redirected the money to other companies.

          The agency is probing an alleged ₹22,000 crore SRA scandal by the promoters of Omkar Realtors and Developers (Omkar), Kamal Gupta and Babulal Verma. It has recently trained its focus on their association with the Piramal Group's real estate arm.

          The high court has also restrained the petitioner company (Piramal Realty) from "disposing of or creating third-party rights or encumbering" the property till the next date of hearing, January 18.

          Omkar's promoters were charged under various sections of the Prevention of Money Laundering Act (PMLA) for allegedly misusing various permissions given under the SRA schemes and availing loans worth Rs 22,000 crore which were then diverted or siphoned.

          The company, it was also alleged, diverted ₹410 crore taken by way of a loan from Yes Bank in relation to which Piramal Realty's properties were attached.

          Advocate Vijay Aggarwal, counsel for the petitioner company, contended the agency had provisionally attached the properties in Worli, Mumbai in January.

          Since then, 180 days from the date of passing of the provisional attachment of the property had elapsed and Adjudicating Authority has become functus officio (an agency whose mandate has expired), Aggarwal argued.

          It was further contended there was no nexus between the company's bona fide interest in the attached properties and any alleged offence or proceeds of crime.

          Similarly, there was also no nexus between the company and the Yes Bank loan, the defence further claimed, adding that the property of the company attached by the ED predates the alleged offence and that the petitioner company was a bona fide secured creditor.

          It was also argued that the attachment of properties is a coercive measure, the proceedings before the Adjudicating Authority PMLA are summary in nature and are bound to be concluded within a statutory time span of 180 days in terms of the Act.

          Since the proceedings before the Adjudicating authority were still going on post the expiry of 180 days, the provisional order of attachment had also ceased to have effect, the defence counsel argued.
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          • Re : Indian Real Estate News

            Flexible workspace providers hiking rentals by up to 15%

            Read more at:
            https://realty.economictimes.indiati...to-15/93311923



            The last few years have been a catalyst for large corporations to re-evaluate their priorities about workspace needs; flexibility and employee wellbeing have become priorities, and these conveniences come at a price.


            Flexible workspace providers have raised their rentals by up to 15% due to higher demand from corporates and a spike in raw materials prices that led to escalation in fit-out costs, multiple operators told ET.

            Most operators are reporting more than 90% occupancy, with no space available for immediate lease.

            “With a surge in demand and limited amount of grade A office space available in metros, quality workspaces are commanding a higher premium,” said Nidhi Marwah, Group Managing Director, The Executive Centre. “We have mirrored the increase in rentals and fixed expenses ranging from 1-5% in our costs. However, other factors or deal terms drive final costs.”

            The last few years have been a catalyst for large corporations to re-evaluate their priorities about workspace needs; flexibility and employee wellbeing have become priorities, and these conveniences come at a price.

            “The cost of everything has gone up in the past few months and in line with the market prices, we have increased the rentals by up to 15%,” said Akshita Gupta, Co-founder and CEO of ABL Workspaces, which has recently raised funds from Canada based Ethik Inc in Series A funding round. “We believe the market will absorb the cost as corporates are focusing on flexibility and employee wellbeing,”

            Several companies, including multinationals, have embraced the managed space concept after the Covid-19 pandemic.

            “We haven’t seen a drastic rise in the pricing as of now; however, our costs have definitely gone up due to multiple factors such as inflation, operational costs, rise in cost of raw materials etc,” said Manas Mehrotra, Founder, 315Work Avenue, which has raised rentals between 5% and 10%.

            “There is a direct correlation between the pricing and the market conditions and we feel this will affect the pricing soon due to heightened demand of coworking space in the recent scenario,” he said.

            Grade A Coworking and flex office operators are seeing occupancy levels between 80% and 95% across their centres, say experts.

            “Clients are demanding more flexibility in the tenure of the agreements and hence lock-in terms have been reduced to anywhere between 6 and 12 months. This has led to a 10-15% increase in closing seat costs over the last quarter,” said Shweta Sawhney, MD, Delhi-NCR, Savills India.

            There are a few other factors that determine the pricing of the workspace such as location, design, contract period, amenities etc. Growth in office leasing indicates that the overall market fundamentals are strong and that demand for coworking will continue to remain robust because of implementation of return-to-work policies, healthy hiring outlook of corporates and expansion plans by a lot of corporates.

            However, some operators have not raised rentals.

            “Given the rise in demand, we have increased our footprint from 2.5 mn sq ft pre-pandemic to 6.5 mn sq ft across 14 cities and 133 centres. In line with the same, hiking prices is not a solution we believe in,” said Sumit Lakhani, Deputy CEO, Awfis.
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            • Re : Indian Real Estate News

              Godrej Properties posts Rs 43.30 crore net profit in Q1 FY23

              Read more at:
              https://realty.economictimes.indiati...-fy23/93304029



              Godrej Properties also announced its CEO succession plan. Gaurav Pandey will take over from Mohit Malhotra as managing director and chief executive officer of the company effective January 1, 2023.


              NEW DELHI: Godrej Properties (GPL) has reported 154 per cent growth in its net consolidated profit during the quarter ended June 30, 2022. Its profit after tax (PAT) stood at Rs 43.30 crore in Q1 FY23 as against Rs 17.03 crore it registered in the corresponding quarter in the previous fiscal, the company said in a BSE filing.

              The company's net consolidated income stood at Rs 426.40 crore in Q1 FY23, a growth of 62.75 per cent from Rs 261.99 crore it recorded in the similar quarter last year.

              Godrej Properties also announced its CEO succession plan. Gaurav Pandey will take over from Mohit Malhotra as managing director and chief executive officer of the company effective January 1, 2023. Pandey is currently the chief executive officer of the North Zone of GPL.

              Pirojsha Godrej, executive chairman of the company said, "Having delivered our highest ever Q1 bookings of Rs 2,520 crore, we are on track to meet our FY23 objective of achieving Rs 10,000 crore booking value. The sector is likely to continue to strengthen in the quarters ahead and we will be focused on significant market share gains through new project acquisitions and launches."

              During the quarter ended June 30, 2022, the holding company has granted 29,771 new stock to eligible employees under the Employee Stock Grant Scheme (ESGS). Further, during the quarter ended June 30, 2022, the holding company has allotted 12,281 equity shares upon exercise of stock grants under the Employee Stock Grant Scheme.

              The company said that Q1 FY23 witnessed total booking value of Rs 2,520 crore and total booking volume of 2.83 million sq. ft. as compared to total booking value of Rs 497 crore and total booking volume of 0.77 million sq. ft. in Q1 FY22.

              It added a new project in Nagpur spread across 58 acres with saleable area of about 1.5 million sq. ft during the said quarter. The estimated revenue potential from the project is approximately Rs 575 crore.
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              • Re : Indian Real Estate News

                Brookfield REITs declares Rs 171 crore dividend

                Read more at:
                https://realty.economictimes.indiati...idend/93335224



                The company said the distribution comprises Rs 82.1 crore or 2.45 per unit in the form of interest payment on shareholder loans and CCDs, and Rs 2 crore or 0.06 per unit in the form of dividend.


                MUMBAI: Brookprop Management Services, manager of Brookfield India Real Estate Trust, on Wednesday declared a dividend of Rs 170.8 crore or 5.10 per unit to unitholders for June quarter buoyed by timely rental payments and higher occupancy.

                The company said the distribution comprises Rs 82.1 crore or 2.45 per unit in the form of interest payment on shareholder loans and CCDs, and Rs 2 crore or 0.06 per unit in the form of dividend.

                It also includes Rs 85.7 crore or 2.56 per unit in the form of repayment of SPV debt and the balance Rs 1 crore or 0.03 per unit in the form of interest on fixed deposit and income tax refunds, chief executive officer Alok Aggarwal said.

                Brookfield India Reit is the only 100 per cent institutionally managed Reit.

                The company said rent payments have been near total at 99 per cent.

                Aggarwal said the company has generated NDCF (net-distributable cash flow) of Rs 170 crore or Rs 5.13 per unit for the quarter, in line with guidance.

                The NDFC is equivalent of profit that can be shared with shareholders and this is a novel concept in the country and is applicable only to Reits.

                Operating lease rentals rose 26 per cent to Rs 200 crore over the corresponding quarter last year, primarily due to the addition of Candor Techspace N2 into the portfolio.

                Adjusted net operating income rose 38 per cent to Rs 230 crore on- year and it continues to maintain a strong balance sheet with 31 per cent loan-to-value.

                He said the company saw a 6 percent increase in organic growth from the previous quarter as the gross leasing remained positive at 311,000 million square feet with robust leasing demand from new clients coupled with an increase in leasing momentum from existing tenants.

                He said the company has an acquisition pipeline of 6.4 million sqft, as the there is sustained demand for high-quality assets.

                During the quarter, the company achieved gross leasing of 311,000 sqft at a 27 per cent re-leasing spread and also signed expansion options of 94,000 sqft during the quarter. As much as 85 per cent of the new leasing demand in the quarter was from existing occupiers as they continue to execute their return to office plans.
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                • Re : Indian Real Estate News

                  Low property tax tops PM's agenda for Niti Aayog meeting

                  Read more at:
                  https://realty.economictimes.indiati...eting/93383814



                  The agenda for the meeting, to be chaired by Prime Minister Narendra Modi, has pointed to the dismal revenue of civic bodies and suggested an overhaul, by linking property tax to electricity or water bills.


                  NEW DELHI: A packet of trash bags costs around Rs 50 on an e-commerce site, almost twice the per capita property tax in a city like Kota (Rs 28) and one-third the level in Amritsar (Rs 150) in 2017-18. Mumbai, which is at the top, had a per capita mop up of a little over Rs 4,000, but the average for India is just Rs 688 - the cost of a 5kg bag of basmati rice.

                  Given the level of resources that municipal bodies generate, it is no surprise that they find themselves with little funds to meet their developmental needs, an issue that is going to be deliberated in detail at the Niti Aayog governing council meeting on Sunday.

                  The agenda for the meeting, to be chaired by Prime Minister Narendra Modi, has pointed to the dismal revenue of civic bodies and suggested an overhaul, by linking property tax to electricity or water bills. In fact, the agenda flows from a recent meeting the PM had with state chief secretaries.

                  Besides, it will also suggest that municipal bodies be tasked with collecting professional tax instead of states. The issue of professional taxes on the non-salaried is an issue that is close to several states, given that they now have limited sources to raise revenues.

                  Collection of property tax is one of the major sources of municipalities' own revenue and the municipal bodies often hesitate to increase property tax due to political considerations. There have been several instances when civic bodies have announced waiver of house tax before municipal polls. Currently, property tax accounts for less than half the revenue generated by the municipalities. According to the agenda, the own revenue generated by municipal entities is barely 0.15% of the GDP, compared to 0.6% in developing countries and 2.1% in developed nations.

                  What makes the equation more lopsided is that half the spending is on administrative and establishment expenses, leaving little to spend on development activities.

                  The Centre will also suggest thatstates bring all properties falling under every municipality under the property tax net by using IT tools, space and GIS technology to improve the tax collection.
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                  • Re : Indian Real Estate News

                    Executive Centre FY22 revenue up 7 pc at Rs 289 cr; to invest Rs 50 cr on 4 new co-working centres

                    The demand for flexible workspace has increased of late as corporates look to optimise their capex across and mitigate risks.


                    The IT/ITeS sector has been hiring aggressively.


                    The Executive Centre’s revenue rose 7 per cent to Rs 289 crore last fiscal on the rising demand for flexible office space, and it will invest Rs 50 crore to open four new co-working facilities this year.

                    Hong Kong-based The Executive Centre (TEC) entered India in 2008 with its first property in Mumbai. It currently has over 30 centres with a total area of about 1 million (10 lakh) square feet across major cities.

                    “Our India’s turnover has grown by nearly 7 per cent during the last fiscal to Rs 289 crore from Rs 271 crore in the 2020-21 financial year as office market revived after the second wave of the COVID pandemic,” TEC Group Managing Director South Asia and GCC Nidhi Marwah told PTI.

                    The demand for flexible workspace has further improved since March this year, she said, adding that the company expects to achieve higher growth in the 2022-23 fiscal.

                    To encash the rising demand, Marwah said the company will expand its portfolio and open four new centres in India, with a total investment of more than Rs 50 crore. While the two new centres in Bengaluru, located in UB City and Safina Towers, will be operational this quarter, the centre in DLF Downtown Gurugram and Olympia Tech Park in Chennai will be functional in the last quarter of 2022.

                    All the four centres, comprising about one lakh square feet area and 1,200 desks, are located across central business districts and cater to thriving niche markets in the metro cities. Post-expansion, the company’s total seating capacity in India will cross 10,000.

                    “India has always been a priority region for us and our investments over the past years mark a testament to this commitment,” Marwah said.

                    Apart from these four centres, she said the company is scouting for good Grade-A properties across major cities and plans to tie up with developers for another one lakh square feet area by March next year.

                    “As we enter a new era where hybrid work model become a priority for organisations, we believe in offering an exemplary experience to our members by curating value-driven customised spaces. This helps our members to reflect their company’s identity and culture for their employees,” Marwah said.

                    The demand for flexible workspace has increased of late as corporates look to optimise their capex across and mitigate risks. Moreover, the IT/ITeS sector has been hiring aggressively.

                    In its latest report, Cushman & Wakefield said the leasing of flexible workspace by corporates rose 59 per cent in April-June to 28,167 desks across the top eight cities.

                    Enterprises leased 17,691 seats in coworking centres in the April-June quarter of last year across eight major cities — Delhi-NCR, Mumbai, Pune, Bengaluru, Hyderabad, Chennai, Kolkata and Ahmedabad.

                    TEC offers an array of flexible workspace solutions, including private office space, enterprise solutions, coworking, virtual office, and meeting rooms, among others.

                    Globally, TEC has over 165 centres in 33 cities and 15 markets. It is the third-largest serviced office business in Asia.








                    Executive Centre FY22 revenue up 7 pc at Rs 289 cr; to invest Rs 50 cr on 4 new co-working centres | The Financial Express
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                    • Re : Indian Real Estate News

                      Over 400 insolvency cases in real estate sector were going on as of June 2022: Government

                      Read more at:
                      https://realty.economictimes.indiati...nment/93443874



                      In last financial year, 210 applications pertaining to real estate sector were admitted for CIRP under the Code. Out of them, 18 cases have been resolved, 60 have been settled or withdrawn and in 63 cases, liquidation has been ordered.


                      NEW DELHI: As many as 1,999 cases of corporate insolvency resolution process were going on under the insolvency law as of June this year, according to the government. The resolution for corporate debtors is done under the Insolvency and Bankruptcy Code which provides for resolution through a market-driven process.

                      In a written reply to the Lok Sabha on Monday, Minister of State for Corporate Affairs Rao Inderjit Singh said the time taken for Corporate Insolvency Resolution Process (CIRP) depends on several factors, including the nature of business, business cycles, market sentiments and marketing effort.

                      "As on 30th June 2022, total 1,999 CIRPs are ongoing out of which only 436 are in real estate sector. During COVID-19 pandemic period, there has been a general slowdown in the distressed asset market," the minister said.

                      He was responding to queries related to resolutions in the real estate sector.

                      In last financial year, 210 applications pertaining to real estate sector were admitted for CIRP under the Code. Out of them, 18 cases have been resolved, 60 have been settled or withdrawn and in 63 cases, liquidation has been ordered. The process is going on in the rest of the cases, Singh said.

                      Responding to another query, the minister said the realisation by creditors through CIRP under the Code is dependent on quality assets at the time of its resolution.

                      In a separate written reply, Singh said the Insolvency and Bankruptcy Board of India (IBBI) receives complaints and grievances from Centralised Public Grievance Redress and Monitoring System (CPGRAM), the Prime Minister's Office, the corporate affairs ministry and other authorities.

                      "Till 31st July, 2022, the IBBI had received 6,231 such complaints and grievances, of which 6,172 have been disposed after examination.

                      "Further, as per information available, Directorate of Enforcement has received one complaint against an RP (resolution professional)of one CIRP in which appropriate action under applicable law has been taken," he said.

                      Further, CBI has received one complaint regarding abuse of process in one CIRP matter which was forwarded to the regulator and on examination, the regulator has not found any actionable material, Singh added.
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