Noida, Greater Noida , and YEIDA resume work on unfield land allocation policy 

Brigade Group has signed a joint development agreement to develop a residential project of around one million sq ft in Chennai. The project, located in West Chennai will be developed as part of a 1.5 million sq ft mixed-use development and will have a gross development value (GDV) of about Rs 800 crore. In June 2024, the company had said that it plans to invest over Rs 8,000 crore by 2030 to expand its portfolio in Chennai with a pipeline of over million sq ft. The gross development value (GDV) of the residential projects is estimated to be over Rs 13,000 crore
 

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IBBI proposes reforms to streamline insolvency process for real estate companies under IBC rules 

The Insolvency and Bankruptcy Board of India (IBBI) on Thursday proposed reforms to streamline the insolvency process for real estate companies and enhance protection for stakeholders. These amendments have been proposed to enhance the efficiency and effectiveness of real estate insolvency proceedings under the Insolvency and Bankruptcy Code (IBC) rules. In a discussion paper issued on Thursday, IBBI said one of the major proposals is the inclusion of land authorities in Committee of Creditors (CoC) meetings as invitees without voting rights. In corporate insolvency resolution processes (CIRP) involving real estate companies, land authorities play a crucial role but currently lack mandatory representation in the CoC. Currently, only financial creditors have representation in the CoC, leaving out land authorities despite their critical role in real estate projects, Their inclusion will enhance and bring clarity on regulatory compliance, and ultimately improve the feasibility of resolution plans, it added. The discussion paper also highlighted issues related to cancelled land allotments in insolvency cases, wherein the IBBI proposed that resolution professionals report such cancellations to the CoC, allowing stakeholders to make informed decisions on whether to pursue liquidation or continue with the resolution process. Accordingly, the IBBI has asked stakeholders to provide comments on the proposals by November 27. After considering the comments, the board proposed to make rules under clause of section 196 of the code. 
 

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Ashiana Housing to develop senior living projects in Karantaka and Jaipur

Ashiana Housing has entered into a memorandum of understanding (MoU) to develop a senior living project on a land admeasuring around 12.50 acres located at Kanakpura Road, Harohalli, Karnataka. The saleable area of the proposed group housing project is estimated at around 11 lakg sqft. The MoU has been entered with three individuals who are owners of the land and the joint development agreement will be executed within the next six months. Separately the company also informed that it has entered into an agreement to lease to develop a group housing project on a land admeasuring around 20 acres located in the social infrastructure zone of Mahindra World City, Jaipur. The saleable area of the proposed group housing project is estimated at around 20 lakh sq ft. Agreement is entered into with Mahindra World City (Jaipur) and lease deed will be executed within the next 90 days.

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Yes Banks rs 4733 crore loan for DHFL was diverted to builders in Mumbai CBI

The Central Bureau of Investigation in its latest charge sheet in the alleged Yes Bank scam stated that loans of rs 4,733 crore provided by the lender to erstwhile Dewan Housing Finance Corporation Ltd (DHFL) were diverted to a "coterie of Mumbai-based builders" who had failed toto settle their previous liabilities with the private bank. The federal agency alleged that bank cofounder Rana Kapoor sanctioned these loans in lieu of ?600 crore received as gratification from DHFL as loans in companies linked to his family members, according to court documents ET has seen. The CBI recently filed the fresh supplementary charge sheet against 41 accused, including Indiabulls Housing Finance, builders Shahid Balwa, Vinod Goneka, Avinash Bhosale Sanjay Chhabriaa and companies linked to them. As per the agency, between 2009 and 2017, the accused builders availed of multiple loans from Yes Bank. However, they failed to deliver these properties to buyers who had paid a part or full price.
 

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Tamil Nadu Government sets 15 to 30 days deadlines for buildings NOCs

Getting clearances for buildings just got simple with the state govt setting deadlines for 11 departments to issue no objections certificates (NOCs). If a department misses the deadlines  15 foe some, 30 for other), NOC wiil be given deemed as given. Home buyers and developed welcomed the system that enables clearances through a single-window portal that cuts red tape. Since launching online plan permission in May 2022, Chennai Metropolitan Development Authority (CMDA) has been approving an average of 70 plans a month, with more than 70 high-rise buildings approved annually. This is nearly double the annual number before 2022. Since launching online plan permission in May 2022, Chennai Metropolitan Development Authority (CMDA) has been approving an average of 70 plans a month, with more than 70 high-rise buildings approved annually. This is nearly double the annual number before 2022, Following a recommendation by CMDA member secretary Anshul Mishra, the govt identified 11 departments including geology & mining, NOCs. Nine departments must issue NOCs within 30 days, while the state highways department and fire and rescue services (non-highrise buildings) have a 15-day timeline. Buildings between 12 and 18 meters tall also require NOCs from fire services, CMRL and WRD. NOCs from these departments previously took months to come. 
 

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Residentals in Tamil Nadu struggle to form apartments  associations 

Apartment politics and a lack of awareness about the Tamil Nadu Apartment Ownership Act are impeding the registration of residents associations with the state govt. In many apartment complexes, residents are yet to reach a consensus on who will be president and secretary, while some remain unaware of the rules altogether. The recently unveiled Tamil Nadu Apartment Ownership Rules stipulate that a minimum of four apartment owners must form an association, draft bylaws, and register it before pursuing redevelopment. The recently unveiled Tamil Nadu Apartment Ownership Rules stipulate that a minimum of four apartment owners must form an association, draft bylaws, and register it before pursuing redevelopment. The rules also outline penalties for those who fail to pay maintenance charges Despite these provisions, the state registration department has not seen a significant increase in registrations. This year, only 150 associations registered in the Chennai zone, with around 6,000 registered to date. The rules should also mention the maintenance of the building including whitewash at least once in eight years. At least one resident should have owned the apartment for 10 years and more. Residents of older apartments are still hesitant to form associations due to internal conflicts. "As long as there is no sense of unity among residents, many hurdles will remain before properties can be V S Jayaraman from T Nagar residents welfare association said more clarity about the rules is needed. "The govt has provided model bylaws, but many associations are confused whether they can include clauses specific to their needs.
 

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Brigade Hotel Venture Files draft IPO papers with Sebi to raise rs 900 crore

Brigade Hotel Ventures Ltd, owner and developer of hotel in South India, has filed draft papers with capital markets regulators Sebi to raise rs 900 crore through an initial public offering (IPO). The proposed IPO is entirely a fresh issue of equity shares with no Offer-for-Sale (OFS) component, according to the draft red herring prospectus (DRHP). Proceeds from the issue to the tune of Rs 481 crore will go towards payment of debt, Rs 412 crore will be allocated to the company and Rs 69 crore to its material subsidiary, SRP Prosperita Hotel Ventures Ltd. The company may raise up to Rs 180 crore through a Pre-IPO Placement. If the placement is undertaken, the issue size will be reduced. Brigade Hotel Ventures Ltd is a wholly-owned subsidiary of Brigade Enterprises Ltd (BEL), which is one of the leading Indian real estate developers in India.  BEL entered the hospitality business in 2004, with the development of its first hotel -- Grand Mercure Bangalore, which commenced operations in 2009. The company has a portfolio of nine operating hotels across Bengaluru (Karnataka), Chennai (Tamil Nadu), Kochi (Kerala), Mysuru (Karnataka) and the GIFT City (Gujarat) with 1,604 keys.  The hotels are operated by global marquee hospitality companies such as Marriott, Accor and InterContinental Hotels Group.  JM Financial and ICICI Securities are the book-running lead managers to the issue. 
 

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Office space demand to reach 70 million sqft in 2024

The office space market in the country is expected to absorb over 70 million sq ft this year, according to a report from Savills India. The demand reached 55.1 million sq ft between January and September 2024, marking a 30% year-on-year (YoY) increase across six cities. The year-to-date (YTD) leasing activity has set a new benchmark for the January-September period, aligning with 2022’s full-year performance.With only seven million sq ft remaining to surpass 2023’s total, 2024 is expected to achieve absorption levels in the range of 70 to 74 million sq ft. The Q3 FY25 saw office absorption hit 20.2 mn sq ft, a 28% increase from Q3 FY24. Bengaluru, Delhi-NCR, and Mumbai collectively contributed 66% of the  overall leasing activity during this period. Bengaluru, Delhi-NCR, and Pune driving more than 50% of their respective leasing through such transactions. While demand soared, new office completions slowed down during the first nine months of 2024, with a total of 32.6 million sq ft added, reflecting a 12% year-on-year decline. As a result, vacancy rates decreased to 15.5% by the end of September. Gurugram, with 64% share contributed highest in the leasing activity in  Q3 2024. Within Gurugram, Gurugram SBD topped the chart with 49% of the city leasing coming from this micromarket. Noida stood second with 27% share in the overall leasing followed by Delhi with 9% share. Mumbai recorded 3.2 million sq ft of absorption in Q3 2024, registering a 35% increase year-on-year. Mid-sized deals (25,000 sq ft to 99,999 sq ft) continued to dominate the leasing activity, with a 36% share. Pune added 2.0 million sq ft of gross absorptionin Q3 2024, registering a 42% year-on-year increase. This was driven by financial services occupiers pre-leasing large spaces, totaling 1.1 million sq ft.
 

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Tamil Nadu CM union minister review Chennai metro rail phase 2 project

Tamil Nadu Chief Minister M K Stalin and Union Urban Affairs Minister Manohar Lal on Saturday reviewed the progress of Rs 63,246 crore Chennai Metrorail phase 2 project, recently approved by the central government. CM Stalin, speaking to reporters after the meeting said that the state government has urged Manohar Lal to release Centre's funds for the phase 2 project. The CM said all efforts are being made by his government to complete work as per the deadline. According to Chennai Metro Rail, phase 2 project is proposed to be completed by the end of 2026.An official relese here said the union minister was urged to give priority to proposals related to Chennai airport - Kilambakkam line and implementing Metrorail projects in Coimbatore and Madurai. Kilambakkam is on the city outskirts and a bus terminus, with a capacity to operate over 2,000 buses, was inaugurated there last year by CM Stalin. On October 3, 2024, the Union Cabinet approved the Chennai Metro Rail Phase Project as the Central Sector Project. Two corridors under phase 1 covering 54.1 km caters to over 3.1 lakh passengers on an average everyday. When the phase 2 becomes functional, Metro rail in Chennai will cover about 172 km linking various areas. Chief Secretary N Muruganandam, Additional Secretary, Union Ministry of Housing and Urban Affairs, D Thara and senior officials took part in the review meeting here. 
 

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CMDA working on third master paln of Chennai

Unlocking land potential through increased floor space index (FSI) and affordable processed land are essential to tackling Chennai’s housing and office space shortage, according to Anshul Mishra, member secretary of the Chennai Metropolitan Development Authority (CMDA). Speaking at Infra Next 2024 organized by CII Chennai Zone on Wednesday, Mishra emphasized that resolving key urban issues would be crucial as Chennai gears up to become a major contributor to Tamil Nadu's vision of a $1 trillion economy by 2030. During the summit, a CII-JLL white paper on the Transformation of Industrial Estates was also released. Srivats Ram, chairman of CII Tamil Nadu State Council, emphasized that Chennai's rapid industrial and urban growth is supported by significant infrastructure development. Sanjay Chugh, city head and director at Anarock Property Consultants Pvt Ltd, pointed out some reasons for the limited number of new residential project launches in Chennai. They are: 1 Acquiring suitable land for residential development can be a challenge due to high land costs, disputes, and limited availability of land in prime areas. 2 If required physical and social infrastructure (roads, schools, hospitals) is not in place or planned for certain areas, developers may choose to delay launches until conditions improve. 3 Developers in Chennai prioritise completing ongoing projects rather than launching new ones to restrain the inventory of unsold units.
 

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NGT directs Tamil Nadu government to revise incomplete coastal maps

National Green Tribunal (NGT) southern zone has directed the Tamil Nadu govt to revise its draft Coastal Zone Management Plan (CZMP) maps after finding them incomplete and ordered ground truthing verifying satellite data on the ground to accurately mark ecological zones and fishing areas critical for coastal communities. The tribunal's order follows complaints from fishermen, who argued that the maps did not comply with the Coastal Regulation Zone (CRZ) Notification, 2019. The NGT noted missing details such as fishing zones, village boundaries, and fish breeding areas, which are essential for safeguarding coastal resources and planning sustainable development. Applicants Jesu Rethinam and K Saravanan, representing the fishing community, pointed out that 105 maps for key districts such as  Nagapattinam, Ramanathapuram and Villupuram omitted several other important ecological zones such as turtle nesting grounds, sand dunes,  and mangrove buffers. They complained that proper long-term housing plans for fishermen were ignored, even as climate change and rising sea levels pose increasing threats. The scale dispute was also addressed, with applicants calling for the mandated 1:4,000 scale for better accuracy, while the TNCZMA clarified that 1:25,000 scale maps were provided for consultation, with 1:4,000 scale maps to follow. 
 

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Prestige Estates to invest rs 7000 crore to develop township in Ghazibad

Realty firm Prestige Estates Projects Ltd will invest around Rs 7,000 crore to expand business in Delhi NCR property market. Bengaluru-based Prestige Estates is building a commercial project at Aerocity in the national capital. It has also forayed into Delhi-NCR housing market by acquiring three land parcels in Delhi, Noida and Siddharth Vihar, Ghaziabad. Prestige Group Chairman and Managing Director Irfan Razack is bullish on Delhi-NCR residential market and said there is a potential to achieve Rs 10,000 crore worth of housing sales annually if the company is able to acquire land parcels consistently. Prestige Group, one of the leading real estate developers in the country, has a legacy of over three decades in real estate development. It has diversified business model across various segments -- residential, office, retail, hospitality, property management and warehouses with operations in more than 13 major locations in India. During 2023-24 fiscal, Prestige Estates clocks a record sales booking of Rs 21,040 crore and has given a guidance of Rs 24,000 crore for the current financial year. Prestige Estates recorded sales of Rs 4,022.6 crore during July-September as against Rs 7,092.6 crore in the year-ago period. During April-September, the company's sales bookings fell to Rs 7,052.2 crore as against Rs 11,007.3 crore in the corresponding period of the preceding year.
 

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