Tag: Real Estate

Budget 2024: Real estate experts pitch for tax rebate increase and affordable housing measures

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

Listen to the Article (6 Minutes)

With all eyes on February 1, despite it being a vote on the account Budget or interim Budget, the real estate industry continues to remain hopeful. 

Chairman of ANAROCK Group, Anuj Puri, emphasises the need to enhance the deduction for home loans (u/s 24) by increasing the current ₹2 lakh tax rebate on home loan interest rates to at least ₹5 lakh.

This, according to Puri, could stimulate the housing market, particularly the budget homes segment, which witnessed a decline in demand post-pandemic.

Dhruv Agarwala, Group CEO of Housing.com, Proptiger.com, and Makaan.com, underlines the importance of the upcoming budget in shaping a resilient future for the real estate industry.

Advocating a comprehensive approach that not only promotes affordable housing but also addresses fundamental challenges, Agarwala proposes a tax rebate increase to ₹4 lakh to sustain demand and stimulate the economy.

With several interest incentives expiring recently, experts stress the urgency to revive and extend benefits, like tax breaks, to encourage developers to construct more affordable housing.

Puri suggests modifying qualifying standards for affordable housing to expand eligibility for additional deductions, citing the need for adjustments in property cost criteria within city segments.

Moreover, they propose releasing sovereign land for affordable housing, pointing to lands owned by various government bodies that, if allocated specifically for affordable housing at lower costs, could significantly reduce overall real estate prices.

In the real estate market, 2023 saw record-high residential sales and a surge in demand and supply across top cities, including Mumbai, Pune, and Hyderabad, marking a 20% YoY increase in new launches.

Stable interest rates are expected to further encourage home purchases, setting a positive tone for growth in 2024.

Vikas Wadhawan, Group CFO of Housing.com, Makaan.com, and PropTiger.com, commends the industry’s resilience amid challenges like rising interest rates and global uncertainties.

He notes the pent-up demand post-pandemic and the RBI’s decision to pause rate hikes in 2023 as pivotal factors boosting buyer confidence.

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

Property market heats up with rising demand and sales; 2024 to see continued rush for real estate

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

Listen to the Article (6 Minutes)

India’s housing market defied logic this year to register all-time high sales as home buyers snapped up deals despite a jump in asking prices and the highest interest rates in six years. Market experts strongly believe the demand will not only sustain in 2024 but rise further, albeit slower, on high economic growth and expectations of a fall in home loan interest rates.

The real estate industry saw record sales of residential properties in terms of both volumes and value, real estate market data showed that consumers are increasingly buying into the idea of home ownership post-Covid pandemic. The ouster of dubious developers from the real estate market thanks to greater regulatory oversight via RERA helped boost confidence among home buyers. The insolvency law too has played a role in the elimination of defaulting builders.

According to real estate consultant Anarock, housing sales are estimated to rise by 30% this year to a record 4.74 lakh units in primary (fresh sales) markets of the top seven cities — Delhi-NCR (National Capital Region), Mumbai Metropolitan Region (MMR), Chennai, Kolkata, Bengaluru, Hyderabad and Pune. In value terms, the sales of residential properties are seen at a whopping ₹4.5 lakh crore, supported by higher ticket prices.

Also Read: Decks clear for homebuyers’ registry, benefits to builders in stuck projects in Noida, Greater Noida

Housing prices, which started moving up last year after remaining stagnant for almost a decade, continued an upward trend and appreciated by an average of 14% this year, encouraging investors to return to the primary residential market. ”The changing sentiments of homebuyers — wherein not only are home-renters converting into buyers but also buying bigger homes — has played a huge contributing hand to sectoral and economic growth. The consumer has realised the importance of owning a home and we expect this sentiment to continue in the foreseeable future,” realtors’ apex body CREDAI President Boman Irani told PTI.

Property developers and consultants believe that the industry is witnessing the ”best time” and it is possibly in the first or second year of a long-term upcycle. Sales were strong across price brackets, be it affordable, mid-income, premium and ultra-luxury homes, but what surprised everyone was the huge demand for properties starting from ₹3-4 crore range to as high as ₹100 crore.

”The Indian residential real estate sector experienced remarkable growth in 2023, reaching a pinnacle not seen in the past 15 years. On the back of a strong Indian economy, real estate sector is seeing this robust end user-led growth in the residential demand and supply,” Anarock’s Chairman Anuj Puri said. He expressed confidence that the real estate market will grow further next year.

”Given the ongoing developments and sustained momentum in the Indian economy and residential real estate sector, the upcoming year is poised for continued growth, although the rate of increase may be more moderate due to high base effect,” Puri said. Sales are expected to surpass supply or maintain equilibrium, he said, adding that prices might rise 8-10% in 2024 across major markets.

Big branded developers having a good track record of executing projects reported sales of entire inventories in their project within a few days, as potential homebuyers and investors queued up to book their flats in large numbers, outstripping the supply. DLF, the country’s largest real estate firm, announced sales of 1,137 luxury apartments in March, priced ₹7 crore and above in its housing project in Gurugram for over ₹8,000 crore within 3 days.

DLF, Prestige Estates, Macrotech Developers and Godrej Properties all reported sales bookings between ₹12,000 crore and ₹15,000 crore during the last fiscal year and they expect to better their performance in the 2023-24 fiscal. The consolidation in the housing market, in terms of both supply and demand, gained further momentum towards branded and trusted developers, prompting them to aggressively expand their land bank for future development.

Also Read: Piramal Consumer Products to acquire Mumbai’s Piramal Tower in Lower Parel for ₹875 crore

Among other segments of real estate, the demand for office space is estimated to remain flat this year at 37-39 million square feet across seven major cities. There were apprehensions that the leasing or absorption of office space would decline this year because of geopolitical concerns and the global economic slowdown. The flexible space segment expanded its portfolio in a big way to meet demand from corporates who have started adopting managed workspace instead of conventional office to save cost and also get rid of facility management.

Leasing of retail space in shopping malls and major high-street locations also increased as retail consumption surged. The year also saw India’s first retail assets-backed REIT — Nexus Select Trust — sponsored by global investment firm Blackstone, which also made a complete exit from the country’s first REIT — Embassy Office Parks — by selling 23.5% stake for ₹7,100 crore this month in open market transactions.

REITs are Real Estate Investment Trusts. Builders also diversified their portfolio to develop warehousing projects and data centres projects. Co-living, which was badly hit during the pandemic, recovered a lot.

In a nutshell, builders are upbeat that the housing market sustained strong demand and was able to post a healthy growth. Since 2022, the sector has been on an upswing and seems to have overcome disruptions caused by demonetisation, implementation of RERA and GST laws, the NBFC crisis and the Covid pandemic.

”The prospect of being the world’s fastest-growing nation, coupled with current affordability levels, is expected to sustain the real estate momentum in 2024. Hopefully with inflation and interest rates getting moderated, we may see 2024 as a record year ahead of 2023 on both supply and demand for residential from end users,” Puri said. If the growth trend continues, the size of the Indian real estate market will expand in a big way and may reach $5.8 trillion by 2047 from $477 billion last year, according to a recent NAREDCO-Knight Frank report.

Also Read: DLF launches commercial project in Gurugram, residential unit in Haryana’s Panchkula

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

Morgan Stanley bullish on real estate upcycle, increases target price for these stocks

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

Listen to the Article (6 Minutes)

Global brokerage firm Morgan Stanley has raised target price of leading realty stocks with a bullish outlook as it expects a multi-year upcycle in the sector.

Demand supported by a robust macro and positive industry structure could provide a multi-year upcycle in the real estate sector, global brokerage Morgan Stanley said. However, meaningful downsides exist as well, it added.

The industry upcycle started in 2021 in terms of average selling price (ASP) growth and could continue with the help of a strong macro and favourable industry structure, the financial services firm said in a note.

A favourable industry structure could be defined as lower leverage, industry consolidation, and measured price increases.

The brokerage house has raised the target price of leading realty stocks such as DLF, Prestige, Macrotech Developers, Godrej Properties and Oberoi Realty.

Morgan Stanley has “overweight” ratings for DLF and Prestige stocks. It has increased the target price of DLF to ₹770 from ₹549 apiece, and increased Prestige’s target to ₹1,300 from ₹524 per share.

It has ‘equal-weight’ ratings for Macrotech Developers and Godrej Properties. The target price of Macrotech Developers has been increased to ₹960 from ₹572 per share and that of Godrej Properties has been increased to ₹ 2,050 from ₹1,354 apiece.

In contrast, Morgan Stanley has downgraded its rating on Oberoi Realty to “underweight”, although it raised the target price for the stock to ₹ 1,180 from ₹885 apiece.

Last month, Prashant Thakur, regional director and head of research at Anarock Group, stated that the recent surge in property prices was partly a catch-up from seven stagnant years pre-COVID, where the industry was flat and prices didn’t rise.

While affordable housing (under ₹40-45 lakhs) is still struggling, the real market activity is in the ₹80 lakh to ₹1.5 crore range, predominantly in the top seven cities, he stated.

Shares of DLF were trading 2.45% higher at ₹666.1 apiece on BSE at 10:12am, while shares of Macrotech Developers were trading 0.15% higher at ₹919.05 apiece on BSE. Godrej Properties shares were 0.37% up at ₹1,936.4 apiece on BSE while Oberoi Realty shares were trading 0.79% lower at ₹1,435.15 apiece on BSE.

Also Read: Subros shares hit record high after government makes AC cabins mandatory in trucks

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

DDA housing scheme 2023: Registration for 32,000 super-HIG, MIG, LIG, EWS flats starts tomorrow

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

Listen to the Article (6 Minutes)

The Delhi Development Authority (DDA) is offering about 32,000 new flats, including luxury penthouses, in its biggest housing scheme of the year. Registration for the ‘Festival Special Housing Scheme 2023’ will open on November 24.

The flats are located in Dwarka, Loknayakpuram, and Narela. The prices range from ₹11.5 lakh to ₹5 crore. The DDA will charge a nominal fee for registration and allow applicants to inspect the flats before buying.

The prices of flats for different categories are as follows:

Applicants can apply online and get instant demand letters after paying the booking amount. They can also buy a DDA flat even if they already own a house in Delhi.

Also Read: Homebuyers, not investors, driving current property boom: Puravankara CEO

The scheme was approved by the DDA board on November 15. This is the first time that the DDA is offering more than 1,100 luxury flats, including penthouses, in Dwarka Sector 19B, overlooking the Golf Course.

The luxury flats, along with some MIG flats, will be allotted through e-auction. The EWS and LIG flats will be allotted on a first-come, first-served basis. The DDA launched a similar scheme in July 2023, offering 5,623 flats. In 2021, it offered 18,000 flats in different categories.

To apply for the scheme, applicants will have to visit the DDA website and log in using their PAN and other details. For more details, visit the DDA’s official website.

Also Read: Property registrations in Mumbai up 30% over last year: Knight Frank India

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

What drives Sanjeev Prasad’s optimism for the real estate sector

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

Listen to the Article (6 Minutes)

Sanjeev Prasad, Managing Director and Co-Head of Kotak Institutional Equities is optimistic about the real estate sector’s prospects as “…there’s a lot of pent-up demand, affordability is great at this point in time, and prices have just started to move up.”

In a discussion with CNBC-TV18, Prasad highlighted that real estate cycles tend to be prolonged, often lasting more than just a few years. He pointed out that the Indian real estate market had been stagnant from 2012 to 2021, with prices in most areas remaining flat, effectively reducing real-term prices. This stagnation, he believes, has led to significant pent-up demand.

Prasad observed that in the last 12 to 18 months, there have been price increases in certain markets, which could be encouraging potential buyers who were previously waiting for prices to start moving.

Residential sales in the country during the first nine months of 2023 rose 5% year-on-year (YoY) to 2.3 lakh units, per a CBRE report released in October.

Also Read | NRI real estate investments in India surge, 3BHKs preferred

Also Read | Oberoi Realty is the top gainer on the Real Estate index after foraying into the NCR market

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

Global energy-tech majors want a slice of the real estate sustainability pie 

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

Listen to the Article (6 Minutes)

At the headquarters of American energy technology major Honeywell, in Charlotte, the building tech team displays a series of demos on its connected buildings technology. Much of what is seen, including CO2 capture, cooling and efficiency controls, may find relevance in the Indian real estate market.

Earlier this year, the Indian real estate sector announced that it would target 2050 as the year it turned carbon-neutral — a whole two decades ahead of the national target of 2070. A NAREDCO and Knight Frank study, released in August, estimates that the sector could be valued at $5.8 trillion by 2047 — three years ahead of its net-carbon-zero deadline.

Honeywell, for one, is positive that the Indian market will offer it a huge opportunity, especially given its large stable of sustainable technology. “We want to be the number one energy-tech player soon,” said Manish Sharma, VP and Chief Product Officer, Connected Buildings at Honeywell.

“Our solution allows you to switch dynamically different power sources, and use the right source at the right time of the day because of tariff, up-time, and to cut peak-power, because peak (power) saving is also equally important”, he added.

Honeywell has firmly set its sights on taking pole position in the real estate energy-tech space; Manish said he would like for this to happen by 2030 when CREDAI has pledged to construct 4,000 green buildings. But this won’t be easy; competition is heating up.

At the launch of its innovation centre in Bengaluru, American HVAC, fire and security firm Johnson Controls said it was prioritizing de-carbonization of buildings through digitisation, as its primary goal in India. This target comes even as internal estimates project that buildings account for 40% of carbon emissions all the world over.

Swiss-headquartered Hitachi Energy, meanwhile, is banking on its new global technology centre in Chennai to drive its work in energy-transition in sectors like mobility and buildings, in India and overseas. The newly inaugurated centre will see 2,500 engineers work on over a thousand projects across 40 countries.

“We need to continue to enable the integration of more renewables into the energy system, and India is doing great work there,” said Claudio Facchin, CEO at Hitachi Energy, in an exclusive chat with CNBC-TV18, “Then there’s the need to electrify, transport, industry and buildings. In order for us to do that demand-supply, we need to continue to invest in our core, which is the grid.”

Facchin added, “We need some key technologies that are here at the centre — power electronics, because you need power across the value chain; and then there’s digitalization — the system will be more complex, but the good news is that the technology is there and digitalization is an essential part of that.”

Earlier this week, a NITI Aayog study projected that India’s GDP would hit $30 trillion by 2047. The Knight Frank and NAREDCO study added that real estate would contribute 15.5% to the GDP by this time, more than double its present-day share of 7.3%. Green technology firms believe there’s a strong chance that these projections will drive investment in sustainability initiatives.

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

Ajmera Realty says on track to achieve ₹1,000 crore revenue target

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

Listen to the Article (6 Minutes)

Mumbai-based real estate company, Ajmera Realty, is on track to hit revenue guidance of ₹1,000 crore with a strong lineup of launches expected in the second half of FY24.

Dhaval Ajmera, Director of Ajmera Realty told CNBC-TV18 that the initial plan was to introduce four new projects this year, and one of those is already complete. “We are gearing up to launch three more in the upcoming two quarters. We are confident that our sales revenues will definitely reach the ₹1,000 crore mark.”

The three projects the company is currently focusing on collectively span around six to seven lakh square feet.

While the company’s primary focus remains on the Mumbai Metropolitan Region (MMR) and Mumbai itself, they are also exploring opportunities in Bengaluru as a micro-market.

The company currently has nine projects in progress, totalling approximately a million square feet. They also have an additional seven projects in the pipeline, and are set to deliver about 1.3 million square feet within the next year to a year and a half.

Read Here | Lodha eyes No 3 position in Pune, to launch 1st Bengaluru project in November

“We are looking at launching seven more projects, which will contribute approximately ₹2,750 crore to our top line,” he said.

In the second quarter of FY24, Ajmera Realty’s net profit dropped 34% to ₹23 crore from ₹34 crore in the previous year. The revenue also decreased by 22% to ₹145 crore from ₹185 crore in the same period last year. The EBITDA fell by 33% to ₹37 crore from ₹55 crore trimming profit margin to 25.5% from 29.7%.

Shares of Ajmera Realty have declined more than 1% over the past month.

Also Read | Facilities management revenues likely to be ₹200 crore in 3-4 years: Max Estates

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

Share of real estate recoveries under IBC rises to 18.8%, says report

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

Listen to the Article (6 Minutes)

India’s real estate sector accounted for more than 50% of the total realisations under the Insolvency and Bankruptcy Code (IBC) proceedings. However, subsequent to release of data by Insolvency and Bankruptcy Board of India, a large key case went sub judice resulting in the real estate sector accounting for 18.8% of total realisations under IBC, compared to 1.2% in the period between FY17 to September 2022.

This is according to a joint report by Anarock India and law firm Khaitan & Co. The report also suggests that the total number of Corporate Insolvency Resolution Process (CIRP) cases filed has risen from an average of 208 in each quarter of FY22 to an average of 313 in each quarter of FY23.

FY24, however, has commenced on a weak note with 238 cases admitted overall in the first quarter.

Of the total number of CIRP cases, real estate cases have averaged about 18-20 in each quarter between October 2021 and December 2022. However, this jumped sharply in March 2023 to 44 corporate debtors being admitted into CIRP.

The report adds that the total admitted claims from the real estate sector between Oct 2022 to June 2023 stands at Rs 377 billion. With a view to further streamline the CIR process, the Ministry of Corporate Affairs (MCA) has invited comments on changes being considered to the IBC. The report covers the several key changes that are being considered. Significantly, these also include the increased use of technology in the IBC eco-system to make it more efficient and effective.

Sudip Mullick, partner in the Real Estate and Construction Practice Group, Khaitan & Co, says, “While CIRPs of real estate companies have increased in the last few quarters, it would be interesting to see how effectively these cases are resolved. Positive outcomes in the ongoing CIRPs of real estate companies would be the key to drive confidence of homebuyers and give a boost to the sector.”

One of the key reasons for prolonged delay in resolution of insolvencies has been the large number of vacancies in the National Company Law Tribunals (NCLT). With a view to strengthen the bench, the government has recently appointed 21 members, which will take the bench strength closer to the sanctioned number of 63. This is expected to reduce the delays faced in the resolution of insolvent companies. However, it will be critical for the government to continue this momentum and ensure that vacancies are filled on time, the report says.

Aashiesh Agarwaal, SVP — Research & Investment Advisory, Anarock Capital, says, “A Committee constituted by the Ministry of Housing and Urban Affairs (MoHUA) recommended the project-wise CIRP of real estate companies as opposed to company-wise CIRP. Further, it was recommended that necessary amendments be made to the enabling RPs to transfer the ownership and possession of sale units to the allottees while the CIR process is underway. Finally, the report recommended creation of five additional fast-track benches at the NCLT, to expedite the cases including real estate cases.”

The report details the proposed amendments by MCA and the recommendations by MoHUA, and also examines updates on several real estate companies undergoing CIRP or having completed CIRP. These include Jaypee Infratech, Unitech, Supertech, Lavasa Corporation, Amrapali, D S Kulkarni, Three C Homes, Radius Estates, and others.

Also Read:What ails India’s affordable housing sector? Anarock’s Anuj Puri weighs in

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

Ajmera Realty shares gain 6% after company bags residential redevelopment project in Mumbai

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

Listen to the Article (6 Minutes)

Ajmera Realty on Tuesday, October 17, informed the stock exchanges that it has bagged the redevelopment project of a housing society in Versova, Mumbai.

The redevelopment project will primarily comprise 3 BHK residential apartments and is estimated to generate sales of around Rs 360 crore. “Ajmera Realty’s redevelopment project in Versova signifies a strategic move into a highly sought-after micro-market, drawing interest from homebuyers and notable individuals, including business leaders and celebrities,” the company said in its statement.

It added that the emerging area, benefitting from redevelopment efforts and convenient metro access, is poised for substantial growth in both demand and property values.

The company’s director Dhaval Ajmera said  redevelopment of and repurposing old housing societies into modernised residential asset classes has gained significant prominence in the Mumbai Metropolitan Region (MMR), thus opening doors to newer opportunities backed by redefined interest from homebuyers. “Versova as a location has gained momentous demand in the last decade. Given the upcoming infrastructure projects, this sentiment will only strengthen further,” he said.

“As we chart the perceived growth of Ajmera Realty, this redevelopment project represents a strategic step towards achieving the 5x growth through JV/JDA/low capex acquisition via inorganic strategy,” Ajmera said. JV refers to joint venture and JDA refers to joint development agreement.

On Tuesday, Ajmera Realty shares jumped as much as 6.2 percent to hit an intra-day high of Rs 433.90 apiece on BSE on Tuesday, October 17, morning. The stock has gained over 42 percent in the last six months and 72 percent in the past one year.

Also Read: Angel One plans to have its own insurance, AMC and wealth management business

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

‘Property prices rising across India’: Puravankara pegs 8-9% growth annually

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

Listen to the Article (6 Minutes)

Abhishek Kapoor, Group CEO and Director of Bengaluru-based real estate firm, Puravankara, expects an annual appreciation of 8 to 9% in property prices.

“What may happen is that if I was looking at a new launch, today the price is x, and then a new launch tomorrow price may not be significantly higher, maybe 3%- 4% higher. But I personally believe that anywhere between 8 to 9% price appreciation definitely you can count on as far as the market is concerned annually,” Kapoor said In an interview with CNBC-TV18,

Kapoor also talked about the surging land prices. “Land prices have definitely gone up across India. And I think that’s a challenge because you are replacing the inventory. Therefore, again, there will be some amount of upward pressure on the pricing because of the land costs itself, and approval costs,” he said.

Shares of Puravankara closed nearly 10% higher at Rs 135.8 after the company reported a two-fold jump in Q2 sales at Rs 1,600 crore from Rs 791 crore the previous year.

The company’s sales bookings surged close to 89% to 2.01 million square feet in the second quarter from 1.07 million last year, the company said in a regulatory filing.

The average realisations improved 7% to Rs 7,947 per square feet for the second quarter from Rs 7,396 a year ago.

“The second half is better than the first half as the real estate industry is seeing a consolidation phase. The organised players will continue to gain market share, while current growth momentum will continue due to new launches,” Kapoor said.

Also Read | Luxury homes are outselling affordable houses for the first time ever. Here’s why

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