REAL ESTATE AGENCY
Small REITs to broaden investor base with strong regulatory oversight
The Securities and Exchange Board of India’s (SEBI) recent regulations for small and medium real estate investment trusts (SM REITs) are likely to drive investor interest towards fractional ownership of real estate assets, said CRISIL Ratings.
Moody's assigns Ba3 rating to Piramal Capital and Housing Finance, outlook Stable
he rating agency said that Piramal Finance is driven by its high capitalization and an increasingly diversified portfolio mix, offset by its relatively low profitability, risks from its legacy real estate exposures and wholesale funding.
Low unsold housing stock makes room to absorb slower pre-sales growth
The tier I residential real estate inventory in India's top eight cities remains manageable, with a quarter-to-sales ratio of 11, lower than the six-year high of 13. Pune and Bengaluru have favorable unsold stock levels, while Mumbai and Chennai face high inventory build-up. Despite strong pre-sales and housing launches in FY24, the absorption rate remains comfortable. Pre-sales for tier-1 players grew 71% on-year in March. Collections increased by 29%, although leverage remains high. The gross debt to collections ratio slightly rose to 2.4x in FY24.
Govt’s PMAY move to help boost affordable housing, drive economic growth
In the interim budget earlier this year, Finance minister Nirmala Sitharaman had announced support for the construction of an additional 2 crore homes in the next five years under the PMAY - Gramin (PMAY Rural). The PMAY budgetary allocation was also increased to Rs 80,671 crore for 2024-25 from Rs 79,590 crore in 2023-24.
Pune Porsche crash: Juvenile's father booked in one more cheating case
Another case of cheating has been registered against the father of the minor boy involved in the Porsche car crash in Pune on May 19. Two IT professionals were killed in the crash. The father, a real estate developer, along with others, is already in jail in connection with the incident. The new case stems from a complaint filed by a resident claiming the father did not allot open space to a residential society and developed additional wings without consent. The complaint led to the registration of an offense under relevant sections of the IPC and Maharashtra Ownership Flats Act.
Higher property prices, changes in law to boost debt recovery from stressed realty projects: Report
The recovery of debt from stressed residential realty projects is expected to increase in the current financial year due to rising property prices and regulatory changes. Crisil forecasts a bad loan recovery rate of 16-18% by FY25, driven by improved project viability, strong demand, and investor interest. Recent amendments to IBBI regulations are also seen boosting real estate asset resolution. With residential realty demand projected to grow by 10-12% and low unsold inventories, ARCs are expected to expedite the turnaround of stressed projects.
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ARCs to see 5-7% higher recoveries from residential realty in FY25: CRISIL Ratings
Additionally, recent amendments to the Insolvency and Bankruptcy Board of India (IBBI) regulations are expected to expedite the resolution of stressed real estate assets in the medium term, enhancing the overall recovery process for ARCs.
Father, grandfather of juvenile in Porsche crash case booked for cheating, criminal intimidation
A cheating and criminal intimidation case was filed against the father and grandfather of the juvenile accused who caused a fatal accident in Kalyani Nagar, Pune, which garnered national headlines due to efforts to absolve the juvenile.
Past reforms will continue to drive economy over next 2 years: Neelkanth Mishra
In fact, with the RBI dividend being significantly better than what was budgeted, I would not be surprised if in the July budget, the government chooses to bring down its FY25 fiscal deficit target from 5.1% to 4.9% because that money is there.
Thematic focus on infra, renewables and real estate likely to continue: Harsh Gupta Madhusudan
Chinese valuations are roughly half of India's, but Chinese earnings growth is also significantly lower. The China trade is more tactical and opportunistic.
Pune Porsche accident: Juvenile Court cancels bail of teenager involved in car crash, sends him to Rehabilitation Home
Pune juvenile court cancels bail of 17-year-old accused who caused the death of 2 techies. Accused remanded to a Rehabilitation home till June 5 amid public outcry. Bail conditions include community service, reflective essay, psychiatric counselling, seeking doctor's help to quit drinking, and father of the accused sent to 2-day police custody.
China allocates billions of dollars to bailout its crisis-hit property sector
China has taken decisive measures to tackle the crisis in its property sector, which has been a crucial driver of its economic growth. The People's Bank of China has announced a 300-billion-yuan relending facility to support government-subsidized housing projects. Local state-owned enterprises are encouraged to purchase completed commercial homes to provide affordable housing. Commercial banks have issued significant loans for real estate development and individual housing.
China expected to announce new measures to fix property crisis, spur growth
China's housing prices dropped in the first four months of the year, while factory output increased by almost 7%. This has lead to officials planning new measures to boost the struggling property industry. The National Bureau of Statistics noted insufficient domestic demand. The State Council announced a news conference to address the property market challenges, including defaults by developers.
We wish to grow in SOBO market which will see resurgence of residential developments: Boman Rustom Irani, Keystone Realtors
Keystone Realtors, led by Boman Rustom Irani, are expanding into SOBO due to city infrastructure growth. FY25 outlook is positive, with FY24 surpassing expectations. Strong OCF, acquisitions, and partnerships contribute to the company's success. The real estate sector in Mumbai is poised for growth, driven by infrastructure development and a surge in redevelopment projects.
Luxury homes overtake the affordable segment. What gives?
Factors contributing to the luxury housing boom in India include rising incomes, the trend of premiumization, and pent-up demand post-pandemic. Additionally, the investment appeal of luxury real estate, shortage of luxury apartments in prime locations, and growing NRI investments further fuel this segment's growth.
Two Chinese megacities lift home purchase curbs to attract buyers
Hangzhou and Xian lifted home purchase limits to revive the real estate market impacted by the pandemic and borrowing rules. The move aims to attract buyers and support the sector, following a decline in prices.
India's bull market based on very fundamental, structural factors: Hiren Ved
I think trying to make event-based decision based on long-term investing is not something that makes sense to us. So, I think we are sitting put. Our positioning is very clear and we are doing none of these like raising cash or trying to change the composition of the portfolio. No, we are not doing any of those things.
Regulatory tightening over? Time to revisit. 5 housing finance stocks with upside potential of up to 39%
To some the news of the possible changes in project finance by banks and other sectoral lenders might appear to have come out of the blue. But the fact is that RBI has been in a process of tightening and cleaning up the system of every segment and subsegment of banking and financial services for more than the last one and a half years. Infact the first set of companies where the tightening of the norms was implemented were housing finance companies. Right from raising capital to disbursement norms, everything was tightened. Whenever there is tightening of norms, stocks from that sector tend to correct. Same has been the case with housing finance companies, they have underperformed in the last one year of bull run. But as the companies adjust to new norms, there will be some players who probably would make a comeback faster. Given the fact that despite all the problems which the sector has faced, it has still grown on an overall basis and there is no reason to believe that this will not happen in future.
SM REIT Rules may create around Rs 70,000 crore opportunity for small offices
The capital market regulator Securities & Exchange Board of India (SEBI) has announced that it will regulate fractional ownership platforms (FOPs) offering real estate assets through SM REIT.
Growth momentum stays strong for large residential developers, CRISIL Ratings
Large residential developers are set for growth with doubled market share. Inventory management and real estate prices improve. Per capita incomes impact prices, interest rate cuts expected. Cash accruals, downcycles resilience, leverage maintenance are crucial.
Prestige Estate Projects set to double hospitality portfolio with Rs 1,700 crore investment
Prestige Estate Projects plans to double its hospitality portfolio over the next three to four years, investing Rs1700 crore. The company currently manages 1849 keys of hospitality assets across India, with the potential to generate revenue of Rs 1800 crore. The company is exploring new markets and expanding its portfolio in existing ones. The hospitality assets are generating an average occupancy rate of 70%, and the company is evaluating monetizing the portfolio to unlock value and alleviate cash flow stress.
Real estate sector needs more hands to plan, build & sell in boom time
The real estate sector in India has undergone significant transformation in recent years, from the increasing volume of sales to the implementation of regulatory reforms including RERA. These changes have brought about a heightened demand for professionalism, transparency, and expertise, not just in the primary market but also within the secondary market, particularly in the high-end luxury segments.
Steady absorption, modest supply growth in commercial realty to continue in FY25
Ind-Ra maintains neutral outlook for Indian CRE sector in FY 2024-25, with stable rating Outlook for CRE entities. Expectations include improved metrics, growth in absorption rates, and steady rental increases, driven by demand from various sectors.
'Golden visa' programs, once a boon, lose their luster
In an effort to close huge budget deficits, six eurozone nations granted the visas in 2012, during the height of Europe's fiscal crisis. Spain, Ireland, Portugal, and Greece were among the nations in need of international bailouts. These nations were in particular short of cash to pay back creditors and saw an opportunity to attract investors while reviving their stagnant real estate markets.
How Vietnam's real estate tycoon got caught in a 'Blazing Furnace' in country's biggest $12.5-billion corruption scam
Truong My Lan, chairwoman of Van Thinh Phat Holdings Group, has been sentenced to death for her role in a $12.5 billion financial fraud, the largest in Vietnam's history. The verdict is part of Vietnam's crackdown on corruption led by General Secretary Nguyen Phu Trong, with 84 defendants receiving sentences ranging from probation to life imprisonment. Lan's case highlights the pervasive nature of corruption in Vietnam's state and economy, with the "Blazing Furnace" campaign targeting senior officials and business executives.
Stocks in news: Infosys, Wipro, Tata Chemicals, Prestige Estates, Tata Communications
Prestige Group announced its latest acquisition of 62.5 acres of prime land in Indirapuram Extension, NCR. This strategic acquisition marks a significant milestone for Prestige Group as it expands its footprint in the dynamic real estate market of NCR.
ED questions Niranjan Hiranandani in FEMA probe
The Enforcement Directorate questioned Niranjan Hiranandani and his son, Darshan Hiranandani, in a foreign exchange violation case. The agency searched four premises of Hiranandani Group in and around Mumbai last month. They are also probing the beneficiaries of a British Virgin Islands-based trust linked to the group's promoters.
Realty players upbeat in a rosy economy
Real estate stakeholders in Mumbai express optimism due to a resilient Indian economy and sustained domestic demand. Residential and commercial office sector deals have seen positive growth, indicating a favorable outlook for the real estate industry.
Realty stakeholders business outlook moves up optimistic zone on steady India economy
Stakeholders in the real estate industry are confident in the business outlook, backed by India's resilient economy and sustained growth. The Knight Frank-NAREDCO Real Estate Sentiment Index reflects increased optimism. Record residential sales and office space transactions highlight the country's economic robustness.
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