When you read in the media that the housing market is on fire, you get pessimistic with FOMO (Fear of Missing Out) gripping your investment strategy. When the market speculators suggest the house price might drop, you rush to sell and/or put your buying decision on hold for a better deal. Track2Realty analyses whether home buyers can time the market.
For FY24, sales stood at INR 5,914 crores, a staggering 90% Y-o-Y increase. Sales volume increased by 84% to 7.36 mn sq ft with INR 3,609 crores in collections (+60% Y-o-Y). Total revenue increased by 61% Y-o-Y to INR 2,260 crore. Operating cash inflows for FY24 stood at INR 3,948 crores (+41% Y-o-Y), while net operating surplus was INR 513 crores (+598% Y-o-Y). Focused on value creation and future business growth, the company has incurred expenses for marketing and sales to increase pre-sales by 90% and towards General and Administrative (G&A) costs for new acquisitions in new geographies, which is reflected in the P&L.
The stock market in general and banks, realty stocks & shares of infrastructure finance companies in particular reacted sharply to the draft proposal of the Reserve Bank of India (RBI) that suggested tighter project financing norms of banks to project financing. The Indian real estate projects already weathering headwinds to attract project finance immediately swung into cost & benefit analysis. Though most of the leading developers were cautious in giving critical reactions, privately they all maintained that the RBI should have rather looked into the funding gap of the viable under construction real estate projects with cash receivables in the pipeline. A Track2Realty analysis.
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.
The median age of the country is likely to gradually increase from about 29 to 38 by 2050. Similarly, the proportion of aged people (above 60 years) is likely to increase from about 11% in 2024 to 21% in 2050. At the global level, over the next three decades (by 2050), of the 2.1 billion people above 60 years, India would account for a 17% share indicating a significant demand growth for senior care including housing in the country.
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.”
Mother’s Day & property market! The topic has been debated the world over and it has mostly revolved around whether a house could be a perfect Mother’s Day gift. Or else whether one should buy a house near mother’s place. However, mother as a factor in the property world is not just confined to a limited scope of her being a recipient or just an emotional comforting factor. In fact, she has always been an influencer and with economic independence is fast emerging as a catalyst to property buying. On this Mother’s Day Track2Realty explores as to how much the mom factor is “the factor” in the property market.
Provident Housing aims to stand out as a top brand in the large property landscape of Mumbai Metropolitan region (MMR). Sensing that below INR one crore housing is the most desired but least served segment of housing in the region, the developer with expertise in catering to mass housing has big plans in the pipeline across west zone. In an exclusive interview with Ravi Sinha, Rajat Rastogi, CEO-West & Commercial Assets (Pan-India), Puravankara Limited, sounds optimistic that the brand has good recall and acceptance among the home buyers of the 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.
hBits, a fractional ownership platform, has marked its entry in the second largest city of Maharashtra with the acquisition of the 44,328 square feet campus – CyberCity Magarpatta. A city within a city, the campus houses a commercial zone, a shopping mall, multiple restaurants, two schools, residential neighborhoods, a gymkhana as well as a large 25-acre serene park. Through this asset, hBits aims to create an investment opportunity worth INR 55 crore, thus democratizing access to Grade A commercial real estate for investors.