Construction and real estate development company Panchshil Realty has roped in internationally acclaimed design company, Yoo Design Studio, to design ‘Yoopune’, a residential project that is coming up in Pune. For Yoo, a company promoted by Philippe Starck and John Hitchcox, a renowned property entrepreneur, it is the debut project in India.
It’s ironic that a sector worth $140 billion that has weathered the market crash twice in the last around a decade and still emerged as the fastest growing contributor to the GDP has not been granted even industry status in India.
India has 105 operational (21,214 hectares) and another 631 Special Economic Zones (SEZs) under various stages of approval (see DTZ report on ‘SEZs in India’ June 2010). These zones are the only tax havens in India after the likely expiry of STPI/EOU scheme in March 2011 and have seen healthy interest from occupiers as well as developers. The new Direct Taxes Code (DTC 2010) bill, proposes to alter the tax framework of SEZs.
The question here is why are these builders not executing registries even after obtaining the OC (Occupancy Certificate) & CC (Completion Certificate) from the authorities concerned. The fact is that these smart developers delay & often deny registries to the home buyers to get maintenance of society when it is not registered. They continue to charge hefty amount in the name of society maintenance. Add ot it, revenue that they get from inflated power bills. After the registry of the apartment, majority of apartments buyers are free to form AOA (Apartment Owners’ Association).
Very few budget announcements in recent past have raised as many queries as the LTCG (Long Term Capital Gains) Tax. After all, it concerns all of us, the common citizens of India, whether they are lower class or middle class. For the rich, it has always been a case of more tax reliefs than burden. Track2Realty is regularly getting queries with the underlying worry as to whether the LTCG Amendment makes the tax computation simpler or more complicated.
India continues to exhibit strong economic growth prospects and business optimism is reflected in the increasing number of Initial Public Offerings (IPOs) in recent years. The traction in the number and volume of public issues lends credibility to an environment of higher corporate earnings, rising participation by retail and institutional investors, and availability of adequate liquidity in the market. With 123 fresh issues (As of 20th October 2024) across multiple sectors, 2024 has already surpassed the total number of IPOs witnessed in 2023.
As the education sector evolves, factors such as technology permeation, revamped building designs, and focus on health & safety are likely to define education real estate. Besides, modern educational building design must prioritise flexibility so that spaces can be reconfigured to adapt to various teaching methods and activities, developing a dynamic learning environment. To address this and move away from traditional classroom setups, educational buildings now include collaborative spaces to encourage teamwork and group learning. Moreover, sustainable, and eco-friendly design elements, such as energy-efficient systems and natural lighting, are becoming increasingly common to reduce the environmental impact of educational buildings.
Residential assets were the first preference for domestic investors during Q3 2024 whereas foreign investors accounted for 64% of the commercial deals. Growing prominence of work-from-office mandates and GCCs (global capability centres) lured foreign investors, leading to an increase in the share of commercial investments from 24% in Q3 2023 to 71% in Q3 2024. On the other hand, the share of residential sector reduced to 19% in Q3 2024 from 44% in the same period a year earlier. However, investment in residential assets is expected to grow in the coming quarters as niche asset classes such as co-living, senior housing, and serviced apartments are gaining traction.
In a report ‘India Market Monitor Q3 2024 – Investments’, CBRE indicates a robust 46% Y-o-Y growth in real estate equity investments, totalling USD 8.9 billion in Jan-Sep ’24 —the highest-ever recorded since CY 2018, surpassing the USD 7.4 billion total equity investments for CY 2023. On a quarterly basis, equity investments in real estate stood at USD 2.6 bn in the Jul-Sep’24 period. Domestic investors (predominately developers) took the lead with ~79% share in equity capital inflows in Jul-Sep ‘24. Singapore-based investors accounted for nearly 73% of the total foreign capital inflows, followed by the United States (~22%). Developer activity picked pace in Jul- Sep ’24 quarter, accounting for a share of nearly 47% in total equity investments, followed by institutional & collective vehicle investors (~36%).
This long-term growth in real estate is underpinned by six salient growth levers which includes, rapid urbanization, infrastructure development, digitalization, demographic shifts, sustainability and investment diversification; all of which will form the bedrock for a quantum leap in Indian real estate by 2047. These long-term growth ingredients will be pivotal in the expansion of Indian real estate – from under a trillion currently, to potentially a USD 10 trillion market by 2047, accounting for a 14-20% share in the country’s GDP.