Author name: dreamspersqftmagazine

Mumbai, 6th December 2024: The Reserve Bank of India (RBI) announced its fifth bi-monthly monetary policy for FY25 today, December 6, 2024. The Monetary Policy Committee (MPC), led by Governor Shaktikanta Das, has once again decided to keep the benchmark repo rate unchanged at 6.5%. This marks the eleventh consecutive meeting with no change, as the central bank maintains a neutral stance amidst global uncertainties and domestic inflationary pressures. The decision to hold the repo rate at 6.5% brings mixed sentiments for the real estate sector. While the unchanged rates ensure stability in borrowing costs for developers and homebuyers, the lack of a rate reduction means that existing home loan borrowers will continue to pay high Equated Monthly Installments (EMIs). The rate hold also dampens hopes of increased affordability, which could have spurred greater housing demand. However, developers remain optimistic about the sector’s growth, supported by government initiatives and the continued momentum in urbanization and infrastructure development. Experts point out that the current repo rate levels have already encouraged significant real estate investments, especially in the residential segment. Prashant Sharma – President, NAREDCO Maharashtra: “The RBI’s decision to maintain the repo rate at 6.5% for the eleventh consecutive meeting reflects a measured approach to managing inflation without hampering economic growth. The neutral stance provides much-needed stability in the financial markets, which is crucial for the real estate sector. The unchanged rates will help maintain buyer sentiment, especially in the affordable and mid-segment housing categories. However, the industry continues to look forward to more government support, such as tax benefits and incentives, to further boost housing demand.” Kuldeep Jain, Founder & CEO of Build Capital: “The RBI’s neutral stance and focus on balancing inflation and growth are positive signals for the real estate sector, ensuring stable home loan rates as well. With repo rates unchanged, stable borrowing costs will sustain momentum across residential and commercial segments. We urge the RBI to consider long-term measures to enhance liquidity and credit flow in the industry.” Vikas Sutaria, Founder, Iraah Lifespaces: “The decision to keep the repo rate unchanged is a welcome move, especially for the luxury and holiday home markets. Stability in interest rates enhances buyer confidence, particularly in emerging markets like Alibaug and Lonavala, which have been witnessing increased interest in these segments. The focus should now shift to infrastructure development and supportive policy measures to sustain demand.” Anil Mutha – Chief Visionary & Co-Founder, Nandivardhan Group: “The real estate sector appreciates the RBI’s commitment to maintaining economic stability. A neutral stance supports steady growth in home loans and project funding, ensuring that housing remains accessible. However, we believe a 25 bps rate cut would have been helpful to stimulate further growth in real estate.” Shraddha Kedia-Agarwal – Director, Transcon Developers: “An unchanged repo rate allows the market to sustain its momentum, particularly in metro cities where housing demand continues to rise. The policy’s stability is a boon for luxury housing, enabling developers to plan innovative projects without the pressure of fluctuating interest rates. We hope to see further incentives to accelerate urban infrastructure development.” Rohan Khatau – Director, CCI Projects: “The neutral stance taken by the RBI ensures predictability in the market, which is critical for sustaining homebuyer confidence. While the steady repo rate is encouraging, we also look forward to policies that could ease liquidity challenges and promote faster approvals for real estate projects.” Samyak Jain, Director, Siddha Group welcomed the RBI’s decision to maintain the repo rate at 6.5%. “The Indian economy has been resilient given the current geopolitical landscape and rising inflation across global markets. This move will usher in growth and maintain economic stability whilst enhancing consumer purchasing power, making it easier for individuals to invest in long-term assets like homes. For first-time homebuyers, this is an opportune time to take advantage of favorable borrowing conditions and secure their dream homes at more competitive rates.” Govind Krishnan Muthukumar, Managing Director & Co-Founder, Tridhaatu Realty: “The RBI’s focus on balancing inflation and growth resonates well with the real estate sector’s goals. Stable borrowing costs will help developers cater to the growing demand for sustainable and climate-resilient housing. This policy is a positive step toward fostering investor and homebuyer confidence.” Vedanshu Kedia – Director, Prescon Group: “The RBI’s balanced approach ensures that homebuyers remain confident, especially in the premium housing segment. This continuity is crucial for maintaining liquidity in the market and supporting long-term projects. Collaborative efforts from policymakers and the banking sector can further strengthen this positive trajectory.” Abhishek Jain, COO, Satellite Developers Private Limited (SDPL) welcomed the Reserve Bank of India’s decision to maintain the repo rate at 6.5%. He stated, “This prudent move will effectively control inflation while simultaneously fostering economic growth. By putting more money in the hands of consumers, it is expected to encourage homeownership and boost demand in the real estate sector.”

Mumbai, 5th December 2024 The Indian real estate market is projected to catapult from $350 billion in 2023 to a staggering $1 trillion by 2030, driven by rapid urbanization, digital adoption, and innovative technological solutions, according to the AURUM PropTech report released at India PropTech Summit, 2024. With the urban population expected to reach 680 million by 2047, the market is witnessing a fundamental transformation that extends far beyond traditional real estate paradigms. This population growth necessitates 230 million additional housing units. Bridging the Demand-supply gap with technology  AURUM PropTech findings identified that 2 crore urban residents across top 8 Indian cities are seeking rental housing, yet only 8 lakhs organized, and institutional rental units exist. This imbalance offers a 25x opportunity to bridge the gap between demand and supply with PropTech-driven rental solutions. The influx of urbanization, changing consumption patterns of Gen-Z and millennials and rapid tech adoption are transforming residential rental real estate in India. The report further revealed that conducive regulations like Small and Medium Real Estate Investment Trusts (SM-REITs) are democratizing investments in real estate by allowing individual investors to participate in high-quality commercial assets. The regulation provides an opportunity to address financing of 32.8 Crore Square Feet SM-REITAble supply across the country. Digitalization to dominate the future trends   AURUM PropTech report also highlighted the tectonic shift in India’s real estate market, with digital platforms becoming the primary conduit for real estate transactions. An astounding 75% of homebuyers now rely on digital platforms, while 50% engage in virtual property tours, signaling profound technological disruption. The Indian real estate market is witnessing a surge in demand for luxury and branded housing, coupled with significant growth in Tier-II and Tier-III cities. This expansion is increasingly powered by a growing dependency on digital marketing strategies that leverage cutting-edge technological solutions. With annual real estate marketing expenditures reaching ₹38,000 crore, there is a clear and strategic shift towards allocating more resources to digital marketing channels. PropTech 3.0, the decade of 2020, is further revolutionizing the industry through artificial intelligence (AI), blockchain, and immersive technologies like AR/VR, creating unprecedented opportunities for investors, developers, and consumers alike. AI applications are redefining customer engagement, marketing, and sales by offering personalized property recommendations and automated content generation. It also helps streamline transactions with AI-generated visualizations and enhanced customer service via virtual assistants. Onkar Shetye, Executive Director, Aurum PropTech said, “The ongoing advancement in technology has embraced real estate across enterprises, consumers and service providers. The convergence of technology, changing consumer behavior, enterprise adoption and conducive regulatory framework are creating unprecedented opportunities for innovation and disruption. We look forward to capitalizing on these factors. “ He further added, “We felt the need to take initiative and create visibility for India PropTech- which offers a USD 100 billion opportunity across Real Estate Rentals, Distribution and Capital financing. This summit saw an assimilation of industry experts who engaged in discourse around the industry’s ongoing and future trends. Through thought leadership and networking, we aim to catalyze the growth in India PropTech.” India PropTech Summit, 2024: Rental, Distribution & Capital Opportunities, organized by AURUM PropTech at Jio World Convention Centre in Mumbai, saw industry stalwarts gather under the same roof to discuss the growth and opportunities in the Indian real estate ecosystem.

Mumbai, 3rd December 2024 Godrej Properties Limited (GPL), a prominent name in the Indian real estate industry, has successfully raised ₹6,000 crore through a Qualified Institutional Placement (QIP). This marks the largest QIP by a real estate developer in India and underscores strong investor confidence in the company’s growth trajectory. The offering witnessed overwhelming demand, nearly four times the initial size of the QIP. The investor pool included renowned global and domestic entities such as GIC, BlackRock, Aberdeen, Norges Bank, SBI Pension Fund, and ICICI Prudential Life Insurance. Following the capital infusion, GPL’s net worth has surged by over 50%, with an equity dilution of 7.68%. The company’s net debt-to-equity ratio has improved significantly, dropping to below 0.2:1 from 0.7:1 as of September 30, 2024. Speaking on the development, Pirojsha Godrej, Executive Chairperson of Godrej Properties, said, “We are thrilled by the overwhelming response to our QIP. This support from the investment community is a testament to our strategy and performance. With this capital, we aim to scale our operations, strengthen our balance sheet, and accelerate business development while continuing to deliver value to our stakeholders.” A Strong Growth Trajectory Godrej Properties has demonstrated remarkable growth in recent years, with a 56% increase in bookings in FY23, 84% in FY24, and a staggering 90% growth in the first half of FY25. The company has already surpassed its FY25 business development guidance of ₹20,000 crore in estimated booking value within the first seven months of the fiscal year. Pirojsha Godrej added, “Over the last few years, GPL has redefined its scale, achieving consistent growth in bookings and strengthening its market position. This capital raise will allow us to expand our project pipeline, execute launches across key markets, and maintain a strong balance sheet. We are committed to driving market share gains and margin improvements while delivering sustainable growth.” Strategic Utilization of Funds The funds raised will be used to expand GPL’s project pipeline, allowing the company to capitalize on opportunities in India’s growing real estate market. With launches planned across seven cities in the upcoming quarters, GPL aims to sustain its momentum and surpass its FY25 booking value guidance of ₹27,000 crore. Industry Leadership In FY25, Godrej Properties emerged as the largest real estate developer in India by bookings and the fastest-growing large business across sectors in FY24, achieving an impressive 84% sales growth. The QIP was managed by Jeffries, Morgan Stanley, Bank of America, and Kotak Mahindra Bank, ensuring a seamless and successful fundraising process.

Mumbai, 3rd December 2024: The real estate sector has emerged as the top beneficiary of Alternative Investment Funds (AIFs) in the first half of FY25, attracting a significant ₹75,468 crore, accounting for 17% of the ₹4,49,384 crore AIF investments across all sectors, as per SEBI data compiled by Anarock. This marks a 10% rise from ₹68,540 crore at the close of FY24. In addition to AIFs, the sector raised ₹12,801 crore through Qualified Institutional Placements (QIPs) during the same period, representing another 17% of total investments. These numbers underscore the robust investor confidence in India’s real estate market, driven by growing demand and declining unsold inventory across major cities. The real estate sector’s performance was bolstered by an increasing reliance on equity financing, particularly through Category II AIFs, which include real estate funds, private equity, and debt funds. Category II AIFs have accounted for nearly 80% of total AIF commitments over the last five years, showcasing their flexibility and tailored investment strategies. Foreign Portfolio Investors (FPIs) have also ramped up their participation in Category II AIFs, matching domestic investors in funding key real estate projects. Mr. Prashant Sharma, President of NAREDCO Maharashtra, highlighted the pivotal role of AIFs in bridging critical funding gaps in the real estate sector. “The record ₹75,468 crore invested in real estate through AIFs in H1 FY25 underscores the sector’s resilience and growth potential. With robust sales in major cities and a consistent decline in unsold inventory, investors recognize the sector’s long-term value. AIFs are not just funding projects; they are shaping the future of urban infrastructure and housing in India.” Adding to this, Mr. Kuldeep Jain, Founder and CEO of Build Capital, emphasized the role of AIFs in transforming the real estate investment landscape. “The growing reliance on Category II AIFs highlights their transformative role in reshaping the real estate sector. These investment vehicles not only channel significant capital into the industry but also bring in-depth expertise in partnering with reputed developers, ensuring strategic asset selection and prime location analysis, and achieving timely financial closure. This comprehensive approach not only facilitates project completion and delivery but also drives higher and secured returns for investors. By addressing the increasing demand for housing and urban infrastructure, AIFs reaffirm real estate as a preferred asset class for institutional investors, combining stability with consistent value creation to enhance its long-term investment appeal.” As per Anarock data, more than 1.36 million units have been launched in the top seven cities between 2021 and end-September 2024. Concurrently, about 1.44 million housing units have been sold in these cities year-to-date. Strong demand led to a more than 10% decline in unsold housing inventory in this period, despite the high rate of supply addition. These trends are a testament to the sector’s growing appeal to institutional investors. The consistent rise in AIF commitments, supported by both domestic and foreign investors, is expected to further fuel the growth of India’s real estate sector. As developers tap into these resources to meet rising housing demand and infrastructure needs, the sector is poised to maintain its dominant position in the investment landscape. With innovative funding mechanisms like AIFs leading the charge, real estate is set to remain a cornerstone of India’s economic growth story.

Mumbai, November 26, 2024 CREDAI-MCHI, the apex body of real estate developers, has unveiled its latest research analysis, spotlighting a transformative shift in India’s urban housing markets towards luxury and premium properties. The study reveals significant growth in average ticket sizes and total sales values across India’s top seven metropolitan cities during H1 FY2025 (April-September 2024). The data highlights a remarkable 18% increase in total sales value, which surged to ₹279,309 crore, compared to ₹235,800 crore in the same period of FY2024. Despite a modest 3% decline in total units sold, the average price of homes rose sharply to ₹1.23 crore in H1 FY2025, compared to ₹1 crore in H1 FY2024, underscoring the growing preference for premium homes. Speaking on the findings, Keval Valambhia, Chief Operating Officer, CREDAI-MCHI, stated, “The growth trajectory of India’s luxury housing market is a testament to its resilience and adaptability. Buyers are increasingly gravitating towards premium properties that offer enhanced lifestyle experiences and robust investment value. At CREDAI-MCHI, we remain committed to fostering an environment that supports this growth, ensuring a balance between innovation, quality, and sustainability in urban real estate development.” Key Highlights from the Report The total sales value across the top seven cities surged by 18%, reaching ₹279,309 crore in H1 FY2025, reflecting increased demand for luxury housing. The average ticket size rose to ₹1.23 crore, marking a significant jump from ₹1 crore in H1 FY2024. In city-wise performance, NCR emerged as a leader, with the average ticket size growing by an impressive 56% to ₹1.45 crore and sales value rising by 55% to ₹46,611 crore. MMR demonstrated its consistency, with an average ticket size stable at ₹1.47 crore and sales value increasing by 2% to ₹114,529 crore. Bengaluru showcased robust growth, with the average ticket size rising by 44% to ₹1.21 crore and sales value increasing by 44% to ₹37,863 crore. Hyderabad followed suit, with its average ticket size growing by 37% to ₹1.15 crore and sales value increasing by 28% to ₹31,993 crore. Chennai saw a 31% increase in the average ticket size to ₹95 lakh, with sales value rising by 20% to ₹9,015 crore. Pune’s market reflected strong growth in the affordable luxury segment, as its average ticket size rose by 29% to ₹85 lakh and sales value jumped by 19% to ₹34,033 crore. Kolkata experienced moderate growth, with the average ticket size increasing by 16% to ₹61 lakh. Across the board, buyers are prioritizing larger, well-equipped homes in prime locations, signaling a shift towards premium living. The consistent rise in sales value across cities underscores resilient demand for high-end properties, even in regions where unit sales saw a modest decline. Cities like NCR and Bengaluru stood out with significant growth in high-value property transactions, reflecting their appeal among affluent buyers. With rising disposable incomes and a growing inclination towards premium housing, the luxury real estate segment is poised for sustained growth. Developers are urged to innovate, focusing on sustainability, world-class amenities, and design excellence to meet the evolving needs of buyers. The findings of this report reaffirm CREDAI-MCHI’s role in shaping the future of India’s urban housing landscape, fostering informed decision-making among stakeholders, and driving the real estate sector towards unprecedented heights. ABOUT CREDAI-MCHI CREDAI-MCHI is an apex body comprising members from the Real Estate Industry in the Mumbai Metropolitan Region (MMR). With an impressive membership of over 1800+ leading developers in MMR, CREDAI-MCHI has extended its reach throughout the region, establishing units in various locations such as Thane, Kalyan-Dombivli, Mira-Virar, Raigad, Navi Mumbai, Palghar-Boisar, Bhiwandi, Uran-Dronagiri, Shahapur-Murbad, and most recently in Alibag, Karjat-Khalapur-Khopoli, and Pen. Being the only Government-recognized body for private sector developers in MMR, CREDAI-MCHI is dedicated to promoting the industry’s organization and progress. As a part of CREDAI National, an apex body of 13000 developers across the nation, CREDAI-MCHI has emerged as a preferred platform for regional discussions on housing and habitat by establishing close and strong ties with the government. It is committed to breaking barriers to create a strong, organized, and progressive real estate sector in the MMR. The vision of CREDAI-MCHI is to empower the Real Estate fraternity of the Mumbai Metropolitan Region as it preserves, protects, and advances the right to housing for all. To continue being a trusted ally, guiding their members, supporting the Government on policy advocacy, and assisting those they serve through the ever-evolving real estate fraternity. Website: https://mchi.net/ For further media queries, please contact: Sonia Kulkarni | 9820184099 sonia.kulkarni@hunkgolden.in