Tag: Real Estate

Education costs on the rise: Where should you invest for securing your child’s future?

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Education costs have been skyrocketing in recent years. While general inflation hovers around 5-5.5%, the cost of education has reached around 11-12%. It is said that education expenses could potentially double every 6-7 years, putting a significant financial burden on families.

Moreover, for those considering studying abroad, it’s essential to factor in the impact of currency depreciation, which can further amplify the costs.

With the rupee depreciating at a rate of 4-5% annually against major currencies, the outflow for education expenses can increase substantially over time.

Given these daunting statistics, planning for your children’s education has become more critical than ever. But how do you navigate this financial challenge?

One common strategy is through mutual funds, offering a structured and potentially lucrative investment avenue.

Suresh Sadagopan, Founder of Ladder7 Financial Advisories, emphasises the importance of starting early when it comes to education planning.

He suggests initiating the process as soon as the child is born, acknowledging the uncertainty surrounding their future career path.

By starting small and gradually increasing investments over time, parents can build a substantial education corpus.

While there are dedicated children’s education plans available, Sadagopan advises that they might not always be the most efficient option.

These plans are tailored for individuals who lack expertise in portfolio management and asset allocation.

However, for those seeking more flexibility and control over their investments, mutual funds offer a viable alternative.

ALSO READ | Child’s education planning: Finsafe India’s Mrin Agarwal suggests these mutual fund schemes

Mutual funds provide a diverse range of investment options, from largecap to midcap funds, catering to varying risk appetites and investment horizons.

Sadagopan recommends constructing a well-balanced portfolio comprising mutual funds and other securities to achieve the desired growth while ensuring stability.

In addition to mutual funds, Sadagopan suggests considering real estate as part of the investment strategy, particularly for those with a long-term investment horizon of 10 years or more.

However, he advises a caution here, noting the lack of a consistent track record compared to mutual funds.

Real estate returns can vary significantly based on location and market conditions, necessitating careful consideration before allocating funds.

Watch this video for more.

Also Read | Here’s how to do financial planning for your child’s education

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Vietnamese real estate moghul sentenced to death in multi-billion fraud case

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Vietnamese real estate tycoon Truong My Lan was sentenced to death on Thursday by a court in Ho Chi Minh City in the country’s largest financial fraud case ever, according to a media report.

The 67-year-old chair of the real estate company Van Thinh Phat was accused of taking out $44 billion in loans from the Saigon Commercial Bank, according to a BBC report. The verdict requires her to return $27 billion, a sum prosecutors said may never be recovered, it added.

The trial was the most dramatic chapter so far in the “Blazing Furnaces” anti-corruption campaign led by the Communist Party Secretary-General, Nguyen Phu Trong, the report further said.

She illegally controlled the Saigon Joint Stock Commercial Bank between 2012 to 2022 to siphon of these funds through thousands of ghost companies and by paying bribes to government officials.

Lan’s arrest in October 2022 was among the most high-profile in an ongoing anti-corruption drive in Vietnam that has intensified since 2022.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Residential properties worth ₹1.11 lakh crore sold during Q1: PropTiger.com report

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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In a testament to the increased confidence of buyers in investing in real estate, India’s top eight primary residential markets witnessed residential sales of about ₹1.11 lakh crore during January-March 2024.

According to the quarterly report — ‘Real Insight Residential – January–March 2024’ by digital real estate brokerage platform — PropTiger.com, the country saw a strong demand during January-March (Q1 2024) this year with sales rising by 68% in value terms ₹1,10,880 crore in January-March 2024 from ₹66,155 crore in the year-ago period.

In terms of top locations, the highest percentage growth in sales was witnessed by Ahmedabad, where sales increased by 130%, in value terms. Residential sales worth ₹9.090 crore were recorded during January- March 2024, as against sales worth ₹3,954 crore during the same period last year.

Also Read: Godrej Properties sells homes worth ₹22,500 crore in FY24; beats guidance by 61%

However, when considered the highest amount of sales, the Mumbai MMR region, topped the charts, with sales worth ₹34,340 crore recorded during January- March 2024, as against sales worth ₹26,167 crore during the same period last year which is 31% growth, said the report.

• ‘Gross Transaction Value’ or ‘Sales Value’ pertains to the total value of properties sold within a city during the first quarter of 2024. This value is derived by multiplying the total number of units sold by the weighted average price and further by the weighted average size of the properties. Essentially, it encapsulates the monetary worth of all sales transactions in that city within the specified period.”

In terms of area, housing sales total sales surged 63% to 162 million square feet from 99 million square feet on a year-on-year basis.

Similarly, PropTiger.com data showed that housing sales grew by 41% to 1,20,640 units in the first quarter of this calendar year from 85,840 units in the corresponding period of the previous year.

Vikas Wadhawan, group CFO of REA India and Business Head of PropTiger.com said, “Growth in housing sales both in volume and value terms augurs well for the overall economy as more than 200 ancillary industries, including cement and steel, are dependent on the real estate sector.”

“India’s housing market is having a dream run. Sales of residential properties in the top eight primary markets have been growing at a rapid pace, buoyed by robust growth, steadfast mortgage rates, and an escalating desire for homeownership. As investor confidence gradually resurfaces, coupled with a robust demand from Non-Resident Indians, the trajectory of housing demand appears poised for solid growth, barring any unforeseen spikes in prices,” Wadhawan said.

Also Read: Prestige Estates reports highest ever annual sales in FY24, surpasses ₹20,000 crore guidance

Ankita Sood, Head of Research, PropTiger.com & Housing.com, added, “The first quarter saw an extraordinary 68% surge in property sales’ Gross Transaction Value compared to last year’s Q1.  Notably, major cities like Mumbai, Hyderabad, Delhi NCR, and Pune collectively accounted for 76% of the total transaction value of ₹1.11 lakh crore.

This surge not only signifies heightened demand but also reflects a remarkable 15–20% uptick in property prices within key business districts. We expect the momentum to continue in the coming two quarters, driven by economic growth and strong demand.”

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Nuvama upbeat about housing sales in most cities, bullish on Mumbai real estate

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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India’s real estate market is thriving across geographies, with property sales in Mumbai’s western and central suburbs performing particularly well, according to a recent report by brokerage firm Nuvama.

Sharing the outlook on the residential property market with CNBC-TV18, Parvez Akhtar Qazi, an Executive Director at Nuvama Group said “Even mid-priced homes in the western and central suburbs (of Mumbai) are doing well. We are positive about Mumbai’s real estate market because of big infrastructure projects.”

He believes the improving infra will also increase housing sales in areas around the main city.

Qazi expects the real estate market to grow by 15 to 20% in the fourth quarter and a 25-30% jump in home sales for most big developers in FY24 and FY25.

In February this year, the demand for homes in India’s top seven cities increased by 20% compared to the same month last year and 7% over the previous month.

However, the number of new launches declined by 20% compared to last year. It increased by 1% over the previous month.

For the calendar year up to February, the demand for homes grew by 13% compared to last year, while supply dipped by 28%.

Read Here | Markets In FY24: Realty index surges 133% marking its best fiscal since inception

Prices have gone up in most cities, with the highest increase seen in Bengaluru, where prices surged by as much as 20% compared to last year.

Qazi said, “We are not really in a range where you are likely to see price correction either in Mumbai or in any other market.”

On a broader level, Qazi observes luxury real estate doing well across the board, whether it is Mumbai, NCR, or Bengaluru.

He also mentioned that the unsold inventory among most listed developers is currently quite low.

Nuvama likes companies that work in both home and office real estate.

The brokerage firm has a ‘buy’ rating on DLF, Prestige Estates, and Brigade Enterprises and ‘hold’ on Godrej Properties and Oberoi Realty.

Read Here | Net office space leasing up 44% at 115 lakh sq ft during Jan-Mar in top 8 cities: Report

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Net office space leasing up 44% at 115 lakh sq ft during Jan-Mar in top 8 cities: Report

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Net leasing of office space rose 44% annually in this quarter across eight major cities on higher demand from corporates for expansion of their businesses, according to Cushman & Wakefield.

According to data released on March 30 by real estate consultant Cushman & Wakefield (C&W) India, the net leasing of office space stood at 115.14 lakh (11.5 million) square feet (sq ft) during January-March as against 80.09 lakh (8 million) sq ft in the year-ago period.

“This is the third-highest level recorded in the last five years, demonstrating a robust appetite for office space among businesses,” the consultant highlighted.

Net absorption or leasing rose in Bengaluru, Mumbai, Delhi-NCR and Chennai but fell in Pune, Hyderabad, Kolkata and Ahmedabad.

“The Indian office market is experiencing a robust momentum. We haven’t witnessed 20 million square feet of gross leasing being recorded for two consecutive quarters in recent history.

“This strong performance may signal a shift and has the potential to become the new standard for the Indian market,” Anshul Jain, Chief Executive, India & Southeast Asia and Head of Asia Pacific Tenant Representation at C&W, said.

Gross leasing of office space across eight cities rose 33% to 201.31 lakh (20.13 million) sq ft in January-March from 151.57 lakh sq ft in the corresponding period of the previous year.

The strong leasing signifies a surge in tenant interest in office space, he added.

“As witnessed in the previous quarters, the impressive surge in office demand is primarily driven by fresh leasing. We are confident that a balanced supply pipeline and continued tenant demand will propel further growth in the Indian office market,” Jain said.

Among cities, Mumbai witnessed a more than three-fold jump in net office leasing to 24,69,912 sq ft from 7,23,735 sq ft.

In Bengaluru, the net absorption of office space jumped more than two times to 35,98,732 sq ft from 15,65,599 sq ft.

Net office space leasing in Chennai surged 77% to 8,75,783 sq ft from 4,95,886 sq ft.

Delhi-NCR saw a modest growth of 18 per cent in net leasing to 14,51,214 sq ft from 12,34,254 sq ft.

However, the demand for net leasing fell in Pune, Hyderabad, Kolkata and Ahmedabad.

In Kolkata, the net leasing fell 82% to 1 lakh sq ft from 5.51 lakh sq ft.

Ahmedabad saw a 53% fall in net leasing to 1,08,551 sq ft from 2,32,733 sq ft.

In Pune, the net office leasing fell 17% to 13,04,107 sq ft from 15,65,754 sq ft.

The net office space leasing in Hyderabad declined marginally by 2% to 16,05,953 sq ft during January-March 2024 from 16,40,242 sq ft in the year-ago period.

Gross leasing of office space means all leasing activity in the market, including renewals of contracted term by corporates.

Net absorption or leasing means new space occupied, adjusted for exits, if any.

Nikhil Madan, co-founder of coworking operator The Office Pass, said, “Similar to the previous quarters, we continued witnessing the robust demand for our flex space solutions in Q1 of 2024 as well.” As more and more companies pushing for work from office or hybrid working for their employees, the enquiries for spaces are constantly on rise, he said.

“Owing to this strong demand, we added two more coworking offices at Golf Course Road, Gurugram in this quarter and looking to add another 25,000-30,000 sq ft in couple of months to remain the front-runner in the highest number of coworking offices in Delhi NCR,” Madan said.

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Mahindra Lifespace Developers acquires 2 acre land at Whitefield, Bengaluru

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Mahindra Lifespace Developers on Wednesday, March 27, said it has acquired 2 acre land at Whitefiled in east Bengaluru. The land has a developing potential of around 0.2 million square feet of saleable area and a gross development value of approximately ₹225 crore, which will mainly comprise mid-premium residential apartments.

The company’s managing director and CEO Amit Kumar Sinha said the acquisition marks another significant step in the firm’s strategy of expanding its footprint in key micro markets. “The city’s strong market potential makes it a strategic choice for our continued growth,” he said.

The location offers seamless connectivity to commercial offices and tech parks and social infrastructure including healthcare facilities, education institutes and retail options, the company said in a stock exchange filing. It added that the neighbourhood has premium residential communities, educational institutions, shopping malls and a plethora of entertainment venues.

Earlier this month as well, the company had acquired 9.4 acre land at Whitefield, Bengaluru.  In a press statement, the company said the land will have 1.2 million square feet of FSI potential and a gross development value of ₹1,700 crore. It will primarily comrpise mid-premium residential apartments. acquired 9.4 acre land at Whitefield, Bengaluru.

Mahindra Lifespace Developers shares ended 2.84% higher at ₹569 apiece on Wednesday, March 27. The stock has gained 73.5% in the past year.

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Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Puravankara launches residential project ‘Purva Kensho Hills’ in Bengaluru

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Puravankara on Saturday, March 23, said it has launched a residential project ‘Purva Kensho Hills’ at Medahalli, Sarjapura in Bengaluru.

The project is registered with Karnataka RERA.

Earlier this year,  it was reported that the Bengaluru-based real estate developer Puravankara is eyeing a bigger share of the Mumbai redevelopment market with an aim to increase the contribution of the Western parts of India to 50% of overall business from 10-12% now.

Abhishek Kapoor, the company’s Group CEO, told CNBC-TV18 that the Mumbai redevelopment opportunity is massive, with gross development value (GDV) estimated to be in excess of ₹3 lakh crore over the next 7-10 years.

Puravankara’s revenue grew 46% year-on-year (YoY) to ₹574 crore for the October-December quarter. Net profit surged to ₹79 crore from ₹23 crore. Earnings before interest, tax, depreciation, and amortisation (EBITDA) grew 79% to ₹199 crore with margin at 34.7% versus 28.3% YoY.

Sales value in the third quarter this year was up 56% year-on-year (YoY) at ₹1,241 crore. Sales volume rose 60% to 1.63 million square foot (msf) from 1.02msf last year. Average price realisation declined 2% to ₹7,610 per square feet in Q3FY24 from last year.

Puravanka shares ended 4.26% higher at ₹214.2 apiece on Friday, March 22. The stock has gained 187.9% in the past year.

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Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Man Infra gains over 3% on securing luxury residential project in South Mumbai

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Man Infraconstruction Limited (MICL) shares jumped more than 3% on Friday, March 22, after the company said it has bagged an ultra-luxurious residential project in South Mumbai.

In a stock exchange filing, Man Infra said it has acquired an iconic uber-luxurious sea-facing residential project near Marine Lines, making it a prestigious addition to the company’s real estate portfolio in South Mumbai.

The said new residential project is set to become among the other tallest residential structures constructed in India, which will be done by MICL Group and will be exceeding the height of over 800 feet.

The project is expected to generate a total sales value of more than ₹2,100 crore, given its total construction area of nearly 22 lakh square feet, along with a RERA carpet area of approximately 5.3 lakh square feet for sale.

The company expects to garner a likely profit before tax (PBT) of over ₹400 crore from this new project in Marine Lines, which will constitute the DM fees, poroject management consultancy (PMC) fee on construction and an interest income on the initial investment made by Man Infra into the project.

The MICL group has set a five-year time frame to construct the project, from launch date, given the company’s track record of delivering all of its 16 projects before time.

The company informed the stock exchanges that the execution of the project has been done under its asset-light development management (DM) model. Further, Man Infra has received a Letter of Intent (LOI) from Shreepati Zaoba Housing LLP.

“This project is poised to redefine Mumbai’s skyline, offering an unparalleled view of the ocean to a select few. Notably, this marks MICL Group’s second venture into uber-luxurious residential projects in South Mumbai, following the launch of our first project, ‘Aaradhya Avaan’ at Tardeo, which shall be one of the tallest towers in the country, surpassing 1,000 feet in height,” said the Managing Director of the Mumbai-based company, Manan P Shah.

Shares of Man Infraconstruction Ltd were trading 2.48% higher at ₹208.4 apiece on BSE at 11:31 am.

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Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Alchemy Cap’s Hiren Ved sees significant growth potential in this segment

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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The organised retailing space in India is still in its nascent stages and there is room for significant growth for companies that can execute well, says Hiren Ved, Director and CIO of Alchemy Capital Management.

Discussing the stellar stock performance of one such company, Trent , Ved, who manages ₹7,260 crore in funds said, “Trent has out executed everybody in the space. But I think the runway for Zudio and other formats is still significantly large, given the size and scale of our country.”

At the end of 2023, Trent’s portfolio included 223 Westside, 411 Zudio, and 27 stores across other lifestyle concepts .

Shares of the Tata Group retail arm have close to doubled over the past six months.

Ved noted that very few apparel retailers have really hit it big in that sweet value spot. While the low ticket consumption in India has been struggling, the value fashion segment that Trent has executed via the Zudio format, has been extremely successful.

On the flip side, Ved pointed out, retailing is an extremely focused oriented business with thin margins. This means the execution has to be top class.

Currently, there aren’t too many other companies in the sector that have been able to execute as well as Trent, he said advising caution.

Ved also discussed other sectors that he is positive on.

While public sector undertakings (PSUs) have been the leaders of this bull market, he advises a selective approach now.

Brokerage firm Kotak Institutional Equities also recently advised investors to exit their PSU holdings and not get carried away with the rally in these stocks. “We would recommend investors to use the rally in PSU stocks to exit most of their positions,” the note said.

Kotak believes that the government’s benign policies and regulations may benefit PSU stocks in the short-term, but prevent them from addressing the large disruption threats to their business models in the medium-term.

Also Read | Are PSU stocks an attractive bet post the recent sell-off?

Real estate, Ved believes, has a long way to go with intermittent bouts of correction.

Among other sectors, Ved is positive on real estate and tourism. He prefers hotels more than aviation. “Our exposure is to Indian Hotels,” he said.

For more, watch the accompanying video

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow

Exclusive: ‘India on the cusp of a building revolution,’ says Johnson Controls Global CEO

KV Prasad Jun 13, 2022, 06:35 AM IST (Published)

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Johnson Controls’ Global CEO George Oliver is confident that his company’s business will double in India in the next five years. In an exclusive interview with CNBC-TV18, Oliver revealed what fuels his optimism and bullish outlook, underscored by the firm’s substantial increase in its Indian workforce, which has expanded by over 20% in recent years.

“With India on the cusp of a building revolution, now is the time to actualise the benefits of smart and green buildings for India’, Oliver said, while adding, “We create outcomes that ultimately change how buildings operate. We can make buildings much more sustainable and reduce energy by 40–50%.”

Johnson Controls specialises in smart, healthy and sustainable building technology solutions and is focusing on driving the energy transition in India as a priority. It has announced a Net Zero Buildings Initiative to decarbonise India’s commercial, urban residential and public buildings.

Talking about the partnership with the Mahindra Group, Oliver stressed that buildings represent 40% of global carbon.

“We share a lot of the values and the work that we’re doing around sustainability. And that’s what brought us together. There’s a lot of technology that exists today that can be deployed and get you a significant way to getting to net zero just by addressing buildings. Buildings represent 40% of global carbon.”

He further added, “We believe that there is a lot of opportunity that we can work together, even though this is not a commercial agreement, it’s the ability to be able to take our depth and expertise, share that and then be able to scale the industry and accelerate the transition that we believe can occur.”

According to the International Energy Agency, three-quarters of India’s anticipated 2040 buildings have yet to be built. With the sector accounting for 20% of emissions and more than 30% of energy consumption in the country, the transition to smart and sustainable buildings is becoming an environmental and economic imperative, Oliver stressed.

Johnson Controls CEO also stressed how the firm has significantly expanded its workforce in India over the past 18–24 months, indicating a deepening commitment to the country’s market.

“We’ve increased our workforce here by about 20-25% in just the last 18–24 months. We have five engineering centres. A significant amount of our engineering, research and design not just for India, but for the world is happening here.”

Watch the full interview in the accompanying video

Elon Musk forms several ‘X Holdings’ companies to fund potential Twitter buyout

3 Mins Read

Thursday’s filing dispelled some doubts, though Musk still has work to do. He and his advisers will spend the coming days vetting potential investors for the equity portion of his offer, according to people familiar with the matter

KV Prasad Journo follow politics, process in Parliament and US Congress. Former Congressional APSA-Fulbright Fellow