It is an established fact that scheduled infrastructure projects tend to increase the value of properties in the adjoining areas. This occurs because the infrastructure project becomes a part of USP for the developers or property owners. There have been instances where property prices have increased 50-70% from the announcement of an infrastructure initiative until the operational phase.
Nationwide, market rentals across Grade A spaces continued to increase, nearing the INR 100 per square feet milestone, with an 8.7% QoQ increase in Q1 CY 2024. The disparity between market and existing rental rates expanded to approximately 14%, signalling a robust landlord-centric market environment. Specifically, Bengaluru, Pune, and Hyderabad experienced an uptick in rental rates during Q1 CY’24 compared to the preceding quarter.
Amit Bhagat, CEO & MD, ASK Property Fund said, “This was a recapitalisation opportunity and before the NBFC crisis. By providing the requisite and flexible working capital, we ensured the project’s completion, supported by sales during the life of the project. The investment was self-liquidating with regular cash flow from the sales and collection linked to milestone. We truly believe all projects in the established suburbs which are job clusters have healthy absorption if completed as per committed timeline.”
Rajasthan-based real estate developer Trehan Group has launched a new residential project, ‘Shalimar Heights’ in the industrial town of Alwar, Rajasthan. The project is located at a 10-minute distance from India’s longest & costliest highway, the Delhi-Mumbai Expressway, and shares connectivity with metro cities and Tier 2 cities such as Jaipur, Gurugram, and other parts of the National Capital Region.
ASK Property Fund, the real estate private equity arm of Blackstone-backed ASK Asset & Wealth Management Group, has announced a successful exit of INR 354 crore from QVC Realty Developers.
Despite an increase in the share of commercial investments to 42% in Q1 2024 from 39% a year earlier, they declined by 52% in value terms. Similarly, the share of residential investments also increased to 41% in Q1 2024 from 27% in Q1 2023. However, investments declined by 33% annually in value terms. Investments significantly decreased by 73% in the industrial and warehousing sector in Q1 2024 over the previous year.
The proposed project, namely Belicia, has been floated by Prescon Group (The real estate arm of Nitin Castings) and House of Hiranandani. ‘Belicia’ offers a range of apartments with configurations of 2, 3 & 4 BHK homes, featuring carpet areas ranging from 779 sq ft to 1546 sq ft, starting at INR 1.85 crore onwards. Each apartment is designed with marble flooring in the living, dining, and bedroom areas, complemented by large decks, ample natural light, ventilation, and select residences featuring foyer areas for enhanced privacy. The project boasts of providing residents with panoramic views of the city and the serene Yeoor Hills with the first habitable floor starting from the 7th level.
The question is what needs to be done. Or in other words, how could real estate consume more out of ‘Make in India’ manufacturing? The question in itself is flawed, if not in sync with the larger eco system issues. Setting up and making a manufacturing unit in India comes with its own challenges. Cheap labour alone would not give India any edge or cost arbitrage over the export items. ‘Make in India’ has to move beyond the rhetoric of nationalism and reforms have to be introduced at each and every level, ranging from lower corporate tax to labour laws and making the country a happy hunting ground for the manufacturers of the world.
Institutional investments in Indian real estate sector touched USD 1.0 billion in the first quarter of 2024, signalling a steady and positive start to the year. While this was a 40% drop compared to the same period last year, India’s real estate investments showed improvement on a sequential basis registering 21% QoQ rise. Foreign investments retained their dominance, forming 55% of the total inflows during the quarter. Domestic investments too witnessed a notable rise at 15% YoY in Q1 2024. The share of domestic inflows in overall institutional investments continued to rise to 45% in Q1 2024, compared to 24% in Q1 2023.
The report highlights a continued uptrend in aggregate demand across the top 13 cities between January and March 2024, registering a robust growth of 6.9% QoQ. Moreover, after a period of relatively subdued supply, there has been a modest 0.9% QoQ increase this quarter. Despite this, the demand continues to outstrip supply, resulting in a 2.9% QoQ increase in residential prices across these 13 cities. Noida (7.4% QoQ), Greater Noida (7.2% QoQ), and Chennai (5.5% QoQ) recorded the highest appreciation in property prices.