Brookfield plans $10 billion investment in Indian real estate in 3-5 years
Apr 29 2024
Brookfield Asset Management, a leading global institutional investor, is set to inject over $10 billion into India's real estate sector over the next three to five years. This ambitious investment strategy aims to seize the burgeoning opportunities presented by India's dynamic real estate market.
Ankur Gupta, Managing Partner and Head of Real Estate for Asia Pacific at Brookfield, expressed confidence in India's growth potential, reaffirming the firm's dedication to pursuing strategic avenues for expansion. Currently managing a portfolio exceeding 51 million sq ft across seven major Indian cities, Brookfield is poised to double its real estate assets under management (AUM) within the specified timeframe.
Brookfield's roadmap for growth in India revolves around diversification and expansion across residential, industrial, and retail segments. Gupta highlighted the untapped potential within India's real estate landscape relative to its advancing economy, underlining the firm's commitment to urban development and affordability through mixed-use projects.
The firm's strategy encompasses holistic asset management and strategic partnerships to navigate various market scenarios effectively. Notably, Brookfield's substantial investments in India's hospitality sector, particularly The Leela hotel portfolio, underscore its long-term commitment and execution capabilities within the Indian market.
Looking ahead, Gupta foresees promising growth prospects for The Leela and India's real estate sector as a whole, buoyed by positive industry trends and economic expansion. Brookfield remains actively engaged in identifying opportunities for portfolio expansion and capital optimization to sustain momentum.
With a diversified portfolio spanning listed Real Estate Investment Trusts (REITs) and segments such as commercial offices, hospitality, housing, industrial warehousing, and coworking spaces, Brookfield is poised to capitalize on India's evolving real estate landscape. Gupta stressed the significance of consistency and strategic focus in leveraging past successes to drive future growth initiatives.
Despite the intricacies of the Indian market, Brookfield views India as a premier investment destination with robust returns. Gupta attributed the firm's stellar track record in India to its relentless pursuit of operational excellence and adeptness in aligning with the favorable macroeconomic environment to drive business objectives forward.
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Macrotech Developers to invest Rs 5,000 crore in FY25 on construction of realty projects
Apr 29 2024
Macrotech Developers, led by MD and CEO Abhishek Lodha, is gearing up to escalate its investment in construction projects to over Rs 5,000 crore in the current fiscal year, aligning with the growth in sales and new supply. With a target to deliver more than 10,000 apartments during 2024-25, the company is strategically positioned to capitalize on the strong housing demand.
Lodha emphasized the successful achievement of all major targets for the previous fiscal year, including pre-sales, land acquisition, and debt reduction, amid robust housing demand. He highlighted the sustained demand in India's housing sector, driven by robust economic growth and increasing preference for home ownership.
In line with its growth trajectory, Macrotech Developers plans to launch more projects and acquire additional land for future development, ensuring consistent and predictable growth. The company intends to surpass its construction spending target by investing over Rs 5,000 crore in the current fiscal year, following a spending of Rs 3,700 crore in the previous year.
Despite some delays in project launches, Macrotech Developers aims to fulfill its commitment by scaling up unit deliveries to more than 10,000 units during 2023-24. The company, known for its presence across Mumbai Metropolitan Region (MMR), Pune, and Bengaluru, is expanding its footprint in the Bengaluru market following successful sales in initial projects.
Encouraged by the positive response in Bengaluru, the company is contemplating a potential housing project in another major tier I city. Additionally, Macrotech Developers has set a sales target of Rs 17,500 crore for the current fiscal year, reflecting a 21% growth from the previous year.
Lodha highlighted the company's robust performance in the previous fiscal year, marked by a three-fold jump in profit and significant growth in total income. With a focus on debt reduction and business expansion, Macrotech Developers has demonstrated its operational prowess and brand strength.
Having delivered around 100 million square feet of real estate and currently developing more than 110 million square feet, Macrotech Developers continues to cement its position as a key player in India's real estate sector.
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Amitabh Bachchan buys land parcel from HoABL to build luxury villa in Alibaug
Apr 29 2024
Bollywood icon Amitabh Bachchan has acquired a parcel of land in Alibaug, a coastal town near Mumbai, aiming to build a luxury villa in the renowned beachside area favored by affluent personalities. The transaction, valued at over Rs 10 crore, involved purchasing a quarter-acre plot from The House of Abhinandan Lodha. This acquisition follows Bachchan's recent investment in another property near the Shri Ram Janmabhoomi Temple in Ayodhya.
The Bachchan family already possesses several properties in Mumbai, including Jalsa, Prateeksha, and Janak bungalows in the upscale Juhu locality. Notably, they gifted their lavish Prateeksha bungalow to their daughter Shweta Nanda. Additionally, Bachchan leased out four office properties in Mumbai's Andheri suburb to Warner Music India last December.
This move by Bachchan reflects the ongoing trend of high-profile individuals, including Bollywood personalities, investing in real estate for both personal and investment purposes. Alibaug, with its scenic coastal charm and proximity to Mumbai, has become a sought-after destination for celebrities. Actress Suhana Khan, daughter of Shahrukh Khan, recently acquired her second property in Alibaug, joining other notable figures like Ranveer Singh, Deepika Padukone, Sachin Tendulkar, and Rohit Sharma in investing in the region.
Government initiatives aimed at enhancing connectivity between Mumbai and Alibaug, such as the Virar-Alibaug corridor and Mumbai Trans-Harbour Link, are further bolstering real estate development in the area. These infrastructure projects are expected to reduce travel time significantly, from over three hours to just over one hour, driving increased interest from developers, homebuyers, and investors alike.
India's luxury real estate sector is experiencing a surge in demand, fueled by high net worth individuals and NRIs looking to invest in upscale properties. The growing interest in luxury real estate, coupled with improved connectivity and infrastructure development, is propelling the growth of Alibaug as a premier destination for luxury living and investment.
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K Raheja Corp Plans Luxury Residential Redevelopment of SOBO Central Mall
Apr 29 2024
K Raheja Corp intends to transform SOBO Central Mall, the nation’s inaugural mall located in south Mumbai, into a sophisticated residential complex. The mall, previously known as Crossroads, has stood since the late 1990s in the esteemed Haji Ali locality, sprawling across 1.3 acres. The envisioned redevelopment aims to erect a striking 50-storey edifice offering panoramic sea views and boasting a potential development area of nearly 250,000 sq ft. Projections based on prevailing property rates suggest a revenue upwards of Rs 2,000 crore for the project.
The acquisition of the property, previously owned by Kishore Biyani’s Bansi Mall Management Company, was finalized by K Raheja Corp for Rs 476 crore. This transaction facilitated the settlement of debts owed by the former owner to creditors, led by Canara Bank. With this acquisition, K Raheja Corp has gained ownership of the mall along with its 150,000 sq ft leasable space.
Positioned amidst the affluent locales of Carmichael Road, Pedder Road, and Altamount Road, often dubbed as India’s Billionaires’ Row, this redevelopment project stands as one of the significant plots in the area. Unlike its smaller counterparts, which typically host housing society redevelopment ventures, this project promises an upscale residential experience.
K Raheja Corp's recent collaboration for the development of a 2.5-acre land parcel in Worli further underscores its commitment to luxury real estate. The proposed luxury residential project in Worli, estimated to yield over Rs 2,000 crore in revenue, reflects the developer's strategic expansion and emphasis on catering to the burgeoning demand for high-end properties.
The surge in demand for luxury housing, particularly evident in Mumbai's upscale neighborhoods like south Mumbai and Worli-Prabhadevi, has prompted realty developers to innovate and introduce premium offerings. With a focus on contemporary designs, world-class amenities, and personalized services, developers aim to meet the discerning preferences of affluent homebuyers, tapping into the lucrative luxury housing market.
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Mumbai Property Market Continues Sales Achieves Higher Targets
Mar 17 2024
In February 2024, Mumbai's real estate market showed a robust performance with a notable increase in property registrations. IGR Maharashtra reported 11,742 registrations, marking a substantial 21% rise from February 2023 and a 7% increase from January 2024. This surge is the highest for any February in the past twelve years, indicating a strong demand for real estate in India's financial hub.
Factors driving this growth include escalating income levels and a positive attitude towards homeownership. Unlike the peak in February 2022, attributed to post-pandemic pent-up demand, the current upswing is primarily fueled by increased income and a favorable homeownership outlook, according to Knight Frank India's analysis.
Despite the significant surge in registrations, stamp duty collections revenue experienced a 22% year-on-year decline, dropping from Rs 1,112 crore in February 2023 to Rs 865 crore in February 2024. This decrease is linked to exceptionally high collections in February 2023, influenced by the government's decision to limit tax deductions on capital gains from residential property sales after March 31, 2023. However, on a month-to-month basis, stamp duty collections saw a positive increase of 14%.
Homebuyer confidence in the Mumbai market remains strong, with a positive sentiment expected to continue. The shift in apartment size preferences was notable in February 2024, with a rise in the share of smaller apartments (500 sq ft and below) to 45%, compared to 34% the previous year.
Preferred locations for property purchases are the Central and Western suburbs, collectively accounting for over 73% of total registered properties. These areas are favored for their modern amenities, good connectivity, and new launches. Western suburb consumers (86%) and Central suburb consumers (92%) tend to buy within their micro-markets due to familiarity with the location and the availability of properties aligning with their budget and preferences.
Shishir Baijal, Chairman and Managing Director of Knight Frank India, commented on the positive market performance, stating that the Mumbai residential market has maintained exceptional strength in February. The sustained growth in property registrations reflects the market's resilience and allure, expected to continue with robust economic momentum and potential interest rate easing.
In summary, the Mumbai property market is currently thriving, driven by a surge in registrations, rising income levels, and a positive homeownership outlook. Despite a decline in stamp duty collections revenue under specific circumstances, the market displays resilience and growth potential, offering promising opportunities for investors, developers, and prospective homebuyers.
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