Future Outlook: Sustaining Growth in India’s Real Estate Sector

According to a Motilal Oswal report, listed Real Estate developers are expected to gain market share as the sector’s momentum continues for at least three to four years due to an existing demand-supply balance, low inventory, favorable affordability, and gradual price hikes.

“If we take the average of pre-sales growth forecasts by various property consultants, the top 12 listed businesses are likely to record 46 percent pre-sales growth in CY23, compared to industry growth of 20 percent. DLF was the primary driver of growth, with both of its premium projects sold out in CY23. Excluding DLF, growth was 35 percent year on year, which was still much greater than industry growth, according to the brokerage’s analysis.

Over the calendar years 2019-2023, listed real estate businesses exceeded sector growth in terms of bookings by 1.4 times, resulting in a constant increase in their market share to 16.5 percent from 12 percent, the report stated.

According to the report, the majority of listed developers have a strong launch pipeline and are targeting at least two additional regions in addition to their home markets, which will result in a further increase in listed peers’ market share.

For example, Oberoi Realty’s primary market is Mumbai, but they are currently expanding into Gurugram real estate. Similarly, the SOBHA group is expanding its footprint in NCR, Hyderabad, and Pune, but its key market is Bengaluru.

Observing that the affordable segment’s share fell to 29 percent in CY23, it predicted that lower lending rates would lead to an increase in affordable housing demand. Furthermore, the government is anticipated to create incentives for low-cost housing, which would be a significant positive trigger, the report stated.

Absorption in the Mumbai Metropolitan Region (MMR) and Pune has eclipsed the previous cycle’s high, with 87,000 and 49,000 units, respectively. Despite a robust commercial cycle in CY15-19, markets such as Bengaluru and Chennai have yet to reach their full potential. According to the brokerage business, as supply in Noida improves, demand in the National Capital Region (NCR) would increase further.

The analysis predicted that on the macro level, an increase in per capita income exceeding $3,500 ($2,400 as of CY23) would be a primary driver of the growth in homeownership witnessed in China between CY2008 and CY2015. These variables might lead to a sustained increase in demand over the next three to four years.

“Inventory is yet to witness a significant increase, but prices have climbed by 14 percent on an absolute basis over the last two years, compared to 25-70 percent in the last two cycles, indicating that the sector is in the midst of an upcycle. “We believe that the current demand-supply balance, low inventory, favorable affordability, and gradual price increases will keep the momentum going for at least three to four years,” the research stated.

The United Nations predicts that more than 400 million people will live in Indian cities by 2030. Rising incomes, favorable affordability, and rising urbanization will continue to drive housing demand in urban and metropolitan areas, according to the research.

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Source : Money Control

DLF Q3 Results: Net profit rises 26% YoY at Rs 649 crore

DLF Q3 Results: Total income increased to Rs 1644 crore in October-December 2023-24 from Rs 1559.66 crore in the previous year, according to a regulatory filing.

DLF Limited declared a consolidated net profit of Rs 649 crore for the third quarter of this fiscal year on January 24, up 26% year on year, according to a regulatory filing. It further stated that DLF achieved its best quarterly sales booking of Rs 9,047 crore, owing to various launches throughout the quarter.

According to a regulatory filing, the company’s consolidated sales increased to Rs 1644 crore in October-December 2023-24, up from Rs 1559.66 crore the previous year.

DLF posted a total net profit of Rs 629 crore in the second quarter of current fiscal year, up 29 percent YoY.

DLF’s EBITDA in the third quarter was Rs 633 crore, with an operating surplus of Rs 1108 crore. The company’s EBITDA was Rs 591 crore in the second quarter.

“We generated our best quarterly sales booking of Rs 9,047 crore, owing to various releases throughout the quarter.

Throughout the quarter, we introduced three new products totaling more than 5 million square feet (msf) across several categories. The launches during the quarter were DLF Privana South, Gurugram, a premium high-rise development, Central 67, Gurugram, a shop-cum-offices planned development, and The Valley Orchard, Panchkula, low-rise independent floors,” the real estate company stated in the statement.

DLF reported strong demand for all of these goods, with both Gurugram projects selling out in record time.

“With this robust performance, new sales bookings for the nine-month period totaled Rs 13,316 crore, comfortably exceeding our full-year target. “We increased our net cash position to Rs 1,246 crore at the end of the quarter,” the business stated.

DLF’s office portfolio performed consistently, while the retail section continued to develop strongly.

DLF Cyber City Developers Limited (DCCDL)’s consolidated revenue for the office portfolio in Q3FY24 was Rs 1,476 crore, an increase of 8% year on year. The consolidated profit for the quarter was Rs 434 crore, a 21% year-on-year increase, according to the business.

DCCDL’s credit rating was improved to ICRA AA+/Stable this quarter, demonstrating the intrinsic soundness and quality of our rental portfolio, according to the business.

“Our non-SEZ division continues to run at a robust 97% occupancy rate. Our new office complexes in Gurugram and Chennai continue to attract considerable interest from big occupiers, resulting in a pre-leasing of around 91 percent. The government’s plan to change SEZ laws to allow floor-wise denotification should also contribute to a rebound in the SEZ market. “We anticipate that occupancy levels in this segment will return to normal in the coming quarters,” DLF stated.

The firm stated that it will continue to focus on expanding its retail offering across numerous geographies.

DLF is the largest real estate firm by market capitalization. It has produced over 153 real estate projects totaling more than 330 million square feet. The Group has 215 million square feet of development potential in the residential and commercial areas. The company’s commercial portfolio spans more than 40 million square feet and generates rent.

Source : Money Control

Delhi-NCR’s real estate market: Here’s why wealthy Indians are buying luxury houses.

Few launches in the luxury housing segment and the fear of missing out on the most desirable properties is making these units fly off the shelf in Delhi-NCR

Recently, two listed real estate developers in Delhi-NCR launched luxury properties ranging from ₹7 crore to ₹12 crore, which realtors reported were quickly sold out. Demand for luxury and ultra-luxury residences among rich Indians has increased, according to real estate experts, owing mostly to a lack of launches in the luxury housing market and a fear of missing out (FOMO) on the best properties in town.

There is less supply to meet rising demand for luxury residences, particularly in places like Gurgaon and Delhi. Rich investors in Delhi, who used to buy bungalows, are now seeking housing complexes with contemporary facilities, particularly dedicated parking, which is a huge difficulty, according to real estate specialists.

DLF sold over 1000 premium home units at Privana South in Gurugram for ₹7200 crore in just three days of pre-launch. The enclave will have 1,113 premium homes spread across seven storeys. These would be four-bedroom flats with penthouses. ‘DLF Privana South’ will be part of a bigger development, DLF Privana, which spans roughly 116 acres in Sectors 76 and 77.

TARC Ltd, a listed real estate business, proposes to invest over ₹1200 crore in a premium housing complex with over 400 apartments in Central Delhi. TARC Kailasa is a 1.7 million square foot complex sprawled over 6 acres of land on Patel Road in Kirti Nagar. Andy Fisher Workshop, a Singapore-based architectural studio, will design the five high-rise structures, each with 35 stories. Arabian Construction Company is the building contractor.

TARC MD and CEO Amar Sarin stated that luxury housing is here to stay as customers, particularly those who live in bungalows, seek to upgrade to apartments with modern amenities that meet all of their needs, particularly in terms of security and parking.

Luxury initiatives gain traction.

“This is a continuation of the pattern that began in March of last year. Overall, demand in luxury residences is high, particularly among experienced real estate developers. This trend is likely to continue till 2024. “We can expect more launches in the luxury category as developers continue to buy land,” said Mudassir Zaidi, Executive Director – North at Knight Frank India.

According to Ashim Chowdhury, Vice President – Research at ANAROCK Group, the DLF Project, which was successfully launched in Sector 76/77 Gurgaon on the Southern Peripheral Road (SPR), demonstrates the micro market’s future potential.

The proximity to the National Highway, as well as the additional access to the Dwarka Expressway and the Mumbai Expressway, make it a sought-after position in the city. A premium product of this size, with over 1,000 units, is expected to pave the way for many more luxury releases in the near future, as well as create a new price standard. Prices in Gurgaon are already rising as the focus switches from inexpensive and mid-range to high-end and luxury developments in burgeoning micro markets, he added.

According to ANAROCK Research, 4,76,530 units were sold in the top 7 cities in 2023. Luxury house sales priced over ₹1.5 crore accounted for 25% of the total, with around 1,19,130 units sold. In terms of market share, luxury sales increased by 7% between 2023 and 2022. If we look at the data by unit, the number of luxury units sold in 2023 has increased by 81% year on year, from around 65,677 in 2022 to over 1,19,130 in 2023. This reflects the increasing demand for luxury properties in the top seven cities.

NRIs are increasingly investing in luxury houses.

DLF’s recent Privana South project in Gurugram sold over 1000 luxury home units for ₹7200 crore within three days of pre-launch, indicating strong demand for such properties

“Buyers continue to invest in trustworthy developers with a proven track record. According to Amit Goyal, managing director of India Sotheby’s International Realty, the demand for luxury residences is strong since capital markets are performing well, individuals have more cash at their disposal, and they want to move to nicer houses.

The fact that a large amount of demand for this product originated from NRIs illustrates that the sector continues to look to India for their retirement requirements.

The rise in demand is primarily due to lifestyle upgrades.

The wealthy prefer ultra-luxury residences for a variety of reasons. These apartments are more than simply a status symbol; they represent a lifestyle shared with others. “The demand for these homes is driven by a desire for superior amenities, a healthy lifestyle, spacious living areas, distinctive designs, and a prestigious address,” stated Ramesh Ranganathan, CEO of K Raheja Corp houses.

“Ultra-luxury developments account for 70-75% of our sales, followed by the mid-premium/luxury market. A major portion of our luxury sales come from Mumbai, where we have projects ranging from 3 crore to 50 crore. These selective clientele choose to invest in a personalized and unique lifestyle when it comes to luxury real estate,” he explained.

Delhi against Mumbai

Buyers in Delhi have always preferred bungalows over apartments, resulting in a horizontal real estate market.

Delhi is facing a pattern that Mumbai experienced decades ago. The restricted availability of premium residential homes contributes to their success. Also, the developer’s track record is driving increasing sales traction. In contrast, Mumbai buyers have several options in the luxury category, which is one of the reasons why it can take a developer six months to a year to exhaust inventory in the segment,” explained Ritesh Mehta, senior director and head (West and North) of residential services and developer initiatives at JLL.

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Source : Hindustan Times

Year-End 2023: The Top 10 Exotic Home Purchases in India for 2023

India real estate: In 2023, a number of affluent individuals purchased and sold opulent residences in Mumbai, Delhi-NCR, and Bengaluru, with prices ranging from around Rs 20 crore to over Rs 1,200 crore.

Year-end special 2023: In February 2023, family members and associates of D’Mart founder Radhakrishna Damani purchased up to 28 home units in Mumbai’s Worli district for a total of Rs 1,238 crore, in what is arguably the biggest real estate transaction in the nation this year.

Luxury was the order of the day in the residential market in 2023. High-net-worth people (HNIs) and their families bought opulent residences in Bengaluru, Delhi-NCR, and Mumbai, among other three important cities.

Urbanplus presents to you the top 10 luxury house deals that HNIs made in 2023 as the year comes to an end.

Mumbai real estate market

1) Radhakrishna Damani and family

In February 2023, family members and associates of D’Mart founder Radhakrishna Damani purchased up to 28 house units worth a total of Rs 1,238 crore in what is arguably the most talked-about real estate deal in the nation. The Worli district of Mumbai was the location of the transaction. One of the largest retailers in India, his partners, and their businesses have purchased 1,82,084 square feet of carpet, including 101 parking spaces.

The purchasers bought the flats in Tower B of Oberoi Realty’s Three Sixty West, which is now under construction. The majority of these flats average between Rs 40-50 crore and have a carpet space of 5,000 square feet. The agreement was almost immediately preceded by a clause in the Budget 2023 recommendations that was predicted to affect the selling of ultra-luxury real estate starting on April 1. Reinvesting capital gains from the sale of long-term assets, like as real estate, is subject to a maximum of Rs 10 crore. There was never such a cap in place before.

2) Taparia family

Two developments in the Mumbai real estate market, Oberoi Three Sixty West and Lodha Malabar, generated a lot of discussion and were the subject of reports of high-end luxury apartment sales. One of the transactions involved the acquisition of six seafront homes in Mumbai from Macrotech Developers Ltd. by family members of industrialist J P Taparia, the creator of the contraceptive company Famy Care, for around Rs 369 crore.

The agreement was signed in March 2023, and the units have 20 parking spaces. The residential units have a total space of 27,160.6 sq ft. According to the paperwork, the units are on the 26th, 27th, and 28th levels. The purchase price was Rs 369.55 crore. The units were subject to a stamp fee of Rs 19.07 crore.

3) Niraj Bajaj of Bajaj Auto

The purchase of a sea-facing triplex flat from Macrotech Developers in upscale Malabar Hill in Mumbai by Bajaj Auto Chairman Niraj Bajaj for Rs 252.5 crore in March 2023 was one of the most talked-about residential purchases in Mumbai. Lodha Malabar Palaces by the Sea is a 31-story building.

According to papers, the three apartments have a total size of 18,008 square feet (carpet area 12,624 square feet) and eight parking spaces. The transaction cost Rs 15.15 crore in stamp duty.

4) Welspun Group

Welspun Group chairman BK Goenka paid Rs 230 crore for a penthouse in Worli’s Tower B of Three Sixty West. The penthouse, located on the 63rd floor, has a carpet area of 29,885 square feet and a deck of 4,815 square feet. The transaction was completed in February 2023, with the buyer paying a stamp duty of Rs 13.83 crore. It included 14 parking spots.

Delhi-NCR

5) Rohatgi Family

Vasudha Rohatgi, the wife of former Attorney General of India Mukul Rohatgi, paid Rs 160 crore in February 2023 for a 2,160-square-yard bungalow in Delhi’s upscale Golf Links neighbourhood.

The bungalow’s plot size is 1806.35 square meters, while the building’s total covered area is 1869.7 square meters. The family paid Rs 6.4 crore in stamp duty for the acquisition, and the property was fully registered in February 2023.

Golf Links is located in the Lutyens’ zone, the nation’s center of power, where influential bureaucrats and businesspeople mingle with prominent politicians. Being a designated heritage zone, the neighborhood has one of the most expensive real estate markets in the nation, with strict regulations on construction.

6) Bhanu Chopra

The founder of RateGain, businessman Bhanu Chopra, paid Rs 127.5 crore in February 2023 for a home at Delhi Golf Links. His admittance into the exclusive group of corporates, businessmen, and bureaucrats with opulent homes in upscale neighborhoods of the nation’s capital was signaled by the multi-crore deal.

According to the deal’s registry paperwork, which Zapkey.com was able to get, the property was registered on February 24 in Bhanu and Megha Chopra’s names. For the deal, the couple paid stamp duty of Rs 6.79 crore.

High net worth individuals continue to favor Lutyens’ Delhi’s Golf Links because of its limited availability and consistent costs.

7) Rs 100 crore flat in Gurugram

A luxurious condominium at The Camellias by DLF on Golf Course Road was sold for about Rs 114 crore in 2023 in a resale that was first for Gurugram. The opulent apartment was 11,000 square feet. The sale was being contrasted with transactions in the upscale neighborhoods of New Delhi, which are home to some of the most expensive residences in the nation.

The agreement reduced the price differential between the relatively new Gurugram market and the more established, older micro-markets in the National Capital Region that are renowned for their good positions. The price was comparable to some high-end seaside residences in Mumbai as well as bungalows in the upscale neighborhoods of the nation’s capital.

Bengaluru real estate

Deals on luxury homes continued to rise in the first half of 2023, despite global headwinds and IT layoffs that hurt Bengaluru’s real estate industry.

8) Micro Labs

Dilip Surana, the chairman and managing director of the pharmaceutical company Micro Labs Ltd., paid Rs 66 crore for a mansion in Bengaluru in 2023, one of the largest sales for luxury real estate in the city.

According to the sale deed, the land and bungalow, which together comprise 8,373.99 square feet, are situated in the Fair Field layout along Devaraj Urs Road, formerly known as Racecourse Road. The land is spread across a total area of 12,043 square feet. On March 8, 2023, a stamp duty of Rs 3.36 crore was paid for the deal registration.

9) TVS Motors

In January 2023, TVS Motors paid Rs 20.93 crore for a home in the Koramangala neighborhood of Bengaluru. The house is spread across a 5,000 square foot lot and has two storeys, four bedrooms, a basement, and a covered garage.

10) NRJN Family Trust

A property in Bengaluru’s Billionaire Street Koramangala neighborhood was sold by the NRJN Family Trust, which was established by Infosys chairman and co-founder Nandan M. Nilekani, for Rs 54.70 crore in January 2023.

The 9,488 square foot site was sold to V Seetha, the businessman C Valliappa’s wife and the man who founded the Sona Valliappa Group, which is a branch of The Sona Group. Sreepriya Nellicherry Sivaraman represented NRJN.

(Contributions from Ashish Mishra in Delhi-NCR, Souptik Datta in Bengaluru, and Mehul R. Thakkar in Mumbai)

Source : Moneycontrol

DLF AIMS TO GENERATE 1,400 CRORE THROUGH ITS PROJECTS IN GURUGRAM AND PANCHKULA

In New Delhi, DLF Home Developers Ltd., under the guidance of Aakash Ohri, Joint Managing Director, aims to achieve a sales milestone of Rs 1,400 crore through its recent commercial venture in Gurugram and a residential project in Panchkula. Ohri revealed that the company is well-positioned to surpass its forecast of launching luxury residential projects valued at Rs 12,400 crore in the fiscal year 2023-24, leveraging the ongoing surge in premium property prices.

Notably, DLF Home Developers recently unveiled the Central 67 project, covering 8.69 acres in Gurugram, offering shop-cum-office spaces. This project is anticipated to yield revenue of Rs 700 crore and has already garnered significant interest, being fully sold out. Ohri emphasized the high demand for the high street segment and highlighted the strategic location’s advantage, with several residential developments nearby, promising increased foot traffic to the complex.

The project, situated at the Shone Elevated Corridor, ensures seamless connectivity to the major Mumbai Industrial Corridor, enhancing convenience for residents and businesses alike. With plot sizes starting at 140 square yards, the project provides dedicated spaces for various commercial activities, contributing to its overall appeal.

Additionally, DLF Home Developers is optimistic about generating another Rs 700 crore from the Valley Orchard low-rise residences in Panchkula, Haryana, spread across 15.833 acres. This project boasts 1.1 million sq ft of low-rise development, further solidifying the company’s robust presence and growth in the real estate sector.

Source: The Economic Times