Mahindra Lifespace Developers reports profits of rs 12.74crore in Q1 FY25 

Realty firm Mahindra Lifespace Developers Ltd on Wednesday reported a consolidated net profit of Rs 12.74 crore for the June quarter. The company posted a net loss of Rs 4.27 crore in the year-ago period. Its total income increased to Rs 206.70 crore during the April-June period of this fiscal year from Rs 110.05 crore in the corresponding period of the preceding financial year, according to a regulatory filing. On operational metrics, Mahindra Lifespace achieved pre-sales (sales bookings) of Rs 1,019 crore in residential business. It achieved land leasing of 18.8 acres in the integrated cities and industrial clusters business for Rs 76.1 crore. Mahindra Lifespace, which is a real estate arm of Mahindra Group, has a development footprint of 37.95 million sq ft of completed, ongoing and forthcoming residential projects across seven Indian cities. It also has over 5,000 acres of ongoing and forthcoming projects under It also has over 5,000 acres of ongoing and forthcoming projects under clusters across four locations.
 

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What real estate industry gained from Budget 2024-25

Nirmala Sitharaman, minister of finance, announced several measures for the urban development , infrastructure and real estate in the Union Budget 2024-25. and real estate in the Union Budget 2024-25. Nirmala Sitharaman, minister of finance, presented the union budget 2024-2025 in Lok Sabha on July 23, 2024. Presenting her seventh straight budget, Sitharaman said, India’s inflation continues to be low, stable and moving towards the 4 per cent target. Core inflation (non-food, non-fuel) currently is 3.1 per cent. She also said this budget envisages sustained efforts on the following nine priorities for generating ample opportunities for all: Productivity and resilience in agriculture, employment & skiling, inclusive human resource development and social justice, manufacturing & services, urban development, energy security, infrastructure, innovation, research & development and next generation reforms. 

Here is what real estate industry gained from Union Budget 2025-25:
Pradhan Mantri Awas Yojana (PMAY)
Under the PM Awas Yojana Urban 2.0, housing needs of 1 crore urban poor and middle-class families will be addressed with an investment of Rs 10 lakh crore. This will include the central assistance of Rs 2.2 lakh crore in the next 5 years. A provision of interest subsidy to facilitate loans at affordable rates is also envisaged.

Transit Oriented Development

Transit oriented development plans for 14 large cities with a population above 30 lakh will be formulated, along with an implementation and financing strategy.
 

Stamp Duty

FM said that centre will encourage states which continue to charge high stamp duty to moderate the rates for all, and also consider further lowering duties for properties purchased by women. This reform will be made an essential component of urban development schemes.

Rental Housing

In addition, enabling policies and regulations for efficient and transparent rental housing markets with enhanced availability will also be put in place. Rental housing with dormitory type accommodation for industrial workers will be facilitated in PPP mode with VGF support and commitment from anchor industries.
 

Land-related reforms by state governments

Land-related reforms and actions, both in rural and urban areas, will cover (1) land administration, planning and management, and (2) urban planning, usage and building bylaws. These will be incentivized for completion within the next 3 years through appropriate fiscal support. 

Rural Land related actions

Rural land related actions will include (1) assignment of Unique Land Parcel Identification Number (ULPIN) or Bhu-Aadhaar for all lands, (2) digitization of cadastral maps, (3) survey of map sub-divisions as per current ownership, (4) establishment of land registry, and (5) linking to the farmers registry. These actions will also facilitate credit flow and other agricultural services.

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Keppel acquires One Paramount 1 tech park in Chennai for rs 2100 crore

Singapore-based global asset manager and operator Keppel has acquired One Paramount 1 tech park in Chennai for about ?2,100 crore, said three people aware of the deal. The prime office asset is jointly owned by realty developer RMZ Corporation and Canadian pension fund CPP Investments. The property in Chennai's Porur area is spread over more than 12.6 acres of land. It has gross leasable area of 2.4 million sq ft comprising three Grade A office towers. Cap rate is a ratio of a property's net operating income to purchase price, indicating potential return on investment. Genpact, Hitachi Energy, Maersk, NielsenIQ, UPS, VMware and Wabco are some of the tenants in this commercial complex. The exit is only from one asset in Chennai. CPP continues to be a partner of RMZ in other assets. Private equity investment in Indian real estate remained resilient in the first half of the year. Institutional investment in Indian real estate surged to $4.8 billion across 40 deals in the first half of 2024, when the world was battling economic challenges, showed a recent report. Investment volumes in the first six months of 2024 have already reached 81% of the total made in 2023, which was at $5.8 billion. The Indian office sector has been seeing sustained growth in demand, bucking the global trend of sluggishness.
 

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Tamil Nadu government handed over free Pattas to 6.52 lakh poor since 2021

The Tamil Nadu government said that free pattas had been handed over to 6.52 lakh poor people ever since chief minister MK Stalin took change in 2021. The revenue department also handed over 2.75 crore e-certificates in the last three years under 26 heads, including, community, income, nativity, first graduate, and inter-caste marriage in the corresponding period. Highlighting the achievements in the rural development and panchayat raj department in the last three years, an official release said the DMK govt allocated Rs 5,337 crore towards old age pension, which is Rs 1,250 crore higher than the previous AIADMK regime. The state government extended Rs 2,477 crore from the state disaster relief fund towards relief and restoration measures in the wake of cyclone Michaung in Chennai and neighbouring districts and to the southern districts affected by heavy rains and floods in December last year. A scheme launched in 2022 enabled transfer of 41.81 lakh pattas through online. A web-based system for online applications and processing was launched last year for measurement and identification of boundaries of lands resolving the land. “Of the 186 towns in the state, the town survey land records (TSLR) of 179 have become online. 
 

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Aadhar Housing Finance experts 20 percent increase in disbursement 

Blackstone backed Aadhar Housing Finance Limited (AHFL) is expecting over 20% increase in order book and disbursement in home loan for low-income housing as the upcoming budget is likely to give push to housing for all. Rishi Anand, MD and CEO of the company said that it has requested the government to redefine income criteria of economically weaker section (EWS) to Rs 5 lakh and low income group (LIG) to Rs 10 lakh. The company has disbursed Rs 6,000 crore in FY 23 and Rs 7,100 crore in FY 24. Uttar Pradesh is the biggest market for the company contributing almost 15% of the revenue. Areas in metro cities like Delhi and Mumbai also contributing significantly to the revenue. The company is also exploring Northeast and Jammu and Kashmir as a market. AHFL is one of the largest low-income segment focused Housing Finance company with AUM of Rs 16,566 crores as on 31st December 2022, with a geographical reach across 20 states and union territories and a network of 424 branches and offices. Owing to rising cost of construction, the government could also consider, redefining priority sector lending limits from current Rs 35 lakh in a metro location to Rs 50 lakh and Rs 25 lakh in a non-metro to Rs 35 lakh and merging both PMAY Urban and PMAY Rural schemes for CLSS subsidy while keeping the subsidy amount the same.

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Dalmia Bharats net profit up 0.69 percent in Q1 FY25 

Dalmia Bharat, a cement manufacturing company, has reported a marginal growth of 0.69 per cent in its net profit during the quarter ended June 2024. It profit after tax stood at Rs 145 crore in Q1 FY25 as against Rs 144 crore it registered in the corresponding quarter of the previous fiscal, the company said in a BSE filing. The company's net consolidated total income stood at Rs 3,671 crore in Q1 FY25, a minor dip of 0.27 per cent from Rs 3,681 crore it recorded in the similar quarter last year. Its installed cement capacity on June 30 stood at 45.6 MnT and net debt to EBITDA stood at 0.17x. In the said quarter, its volume increased 6.2% year-on-year to 7.4 MnT, renewable energy consumption increased to 35%. year-on-year to 7.4 MnT, renewable energy consumption increased to continued to be weak during the quarter, but we saw a notable improvement in margins due to better input prices and reversal of certain cost inefficiencies of the previous quarter. We have added 2 MnT of cement capacity in South and are on track to add another 2.9 MnT in North East & East region during FY25."  The company commissioned 1 MnT cement capacity each at its existing units at Ariyalur, Tamil Nadu and Kadapa, Andhra Pradesh respectively. This takes company’s overall installed capacity to 17 MnT in South and 46.6 MnT in India, and is in line with the long-term growth strategy of increasing the total capacity to 110-130 MnT by the 2031.
 

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Government may reduce income cap for PMAY homes in urban areas 

In the next phase of PM Awas Yojna  (PMAY) in urban areas, government is looking to slab the income threshold foe middle-income group beneficiaries from rs 18 lakh to 10 lakh to traget it better, while also spreading the disburement of the subsidy over five years , instead of one shot payments, to ensure better monitoring. Although officials are tight-lipped about the interest subsidy for MIG beneficiaries, sources said it may be around Rs 2.6 lakh as was provided in the last phase of the scheme. Financial allocation for the scheme is likely to be part of the budget to be presented on Tuesday. In the first leg, govt had put the MIG under two categories - those having an annual income of Rs 6 lakh to Rs 12 lakh and households with annual income of Rs 12 lakh to Rs 18 lakh. Now there may only be one MIG category. The scheme has been redesigned keeping in mind the PM's announcement from the Red Fort last year - to give relief in bank loan interest by providing a help of "lakhs of rupees" to families living in rented houses, unauthorised colonies and shanties in cities, to build their own house, officials told TOI. They added several new provisions have been made based on the learnings from the earlier scheme, seeking to eliminate the scope to beat the system.

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NAREDCO pitches for raising tax exemption limit on home loan interest to rs 5 lakh

Realtors' body NAREDCO on Tuesday suggested that the tax exemption on interest on self-occupied property loans should be increased to Rs 5 lakh in the upcoming budget from Rs 2 lakh currently to boost housing demand amid a rise in housing prices and mortgage rates. Builders also sought some tax incentives to boost demand and supply of affordable homes. NAREDCO noted that under Section 24 of the Income Tax Act, the deduction allowed on interest on loans for self-occupied property is limited to Rs 2 lakh.  The realtors' body mentioned that currently the annual value of property held as stock-in-trade and not let out is considered nil for up to two years from the end of the financial year in which the construction completion certificate is obtained. After this period, the notional income is taxed. Moreover, longstanding sector demands, such as granting industry or infrastructure status and raising tax exemption limits on home loan repayments, should be considered to sustain long-term growth in the housing sector. 
 

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NBCC interested in taking over all of Supertech's pending projects

State-owned construction company NBCC has shown interest in taking over all the pending projects of real estate developer Supertech, which has been facing multiple cases from homebuyers over delayed deliveries besides an Enforcement Directorate investigation into alleged money laundering. During the insolvency proceedings of one of the group companies of Supertech, the interim resolution professional (IRP) had approached NBCC. NBCC has informed IRP and lender Union Bank of India that it is ready to take all the projects of Supertech, provided it is given complete access to the details of the projects and all the data related to them. The Noida-headquartered real estate developer has to deliver over 15,000 homes. National Company Law Appellate Tribunal (NCLAT) order on July 8, attorney general Venkat Ramani has submitted before the court that he has received instructions that NBCC is interested in undertaking the projects subject to due diligence and that lenders of the Supertech are not averse to the proposal of NBCC. The bankruptcy court had ordered Corporate Insolvency Resolution Process (CIRP) against Supertech Ltd, one of the companies of the Supertech group, based on a petition filed by Union Bank of India for non-payment of around Rs 432 crore of dues. The company has already submitted a proposal to the Uttar Pradesh government for the revival of the company. According to the proposal, the dues to the land authority amount to Rs 2,670 crore, with almost half of this being interest on the land cost. The company also owes Rs 830 crore to various banks. It also requested about Rs 5,000 crore from lenders to complete the stuck projects.
 

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Average time to complete large residental projects dip 20 percent in last decade 

The last decade (2014-H1 2024) has seen homebuyers' wait for possession in large under-construction projects in the top seven cities reduce to 4.9 years, from 6.1 years in the 2010-2019 period, according to Anarock data. For all large projects launched and completed between 2014 and H1 2024, the average compeltion time was lowest in Chennai with 3.6 years, while Hyderabad and Bangalore clocked in at 4.2 and 4.8 years respectively. In NCR, extreme weather conditions and the statutory restrictions imposed on construction when the pollution levels rise also play affect construction timelines in the region. Most developers have gradually reduced their  leverage and with stronger financial conditions, are able to focus on execution. In Kolkata, large projects launched and completed between 2014 to H1 2024 took the longest average time to complete, at 5.7 years while in Mumbai Metropolitan Region (MMR), it took an average of 4.7 years to complete small projects, and around 5.2 years for large projects. In Pune, the average project completion time was 4.3 years for small projects, and 5.4 years for large ones. In Chennai and Hyderabad, the average completion time for small projects was 3 years and 3.1 years respectively, and 3.6 and 4.2 years for large projects, respectively. In Bangalore, it was 3.5 years for small projects and 4.8 years for large ones.

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Supply of affordable housing dips 21 percent in top seven cities in Q1 FY25 

New supply of affordable apartments costing below Rs 50 lakh declined 21 per cent in the April-June period across seven major cities as builders are launching more premium flats, according to JLL India. Real estate consultant JLL India on Friday released data for housing market of major seven cities, showing a 5 per cent increase in fresh supply of apartments to 1,59,455 units during April-June 2024 from 151,207 units in the year-ago period. The data includes only apartments. Rowhouses, villas, and plotted developments have been excluded from the analysis. Of the total new supply in the June quarter, the launches of affaordable flats stood at 13,277 units, a fall of 21 per cent from 16,728 units in the same period last year. The launches of flats, each costing Rs 50 lakh to Rs 1 crore, declined 14 per cent to 47,930 units from 55,701 units. The launches of apartments, each priced Rs 3-5 crore, more than doubled to 19,202 units from 7,149 units. Similarly, in above Rs 5 crore category, the new supply jumped more than two-fold to 9,734 units from 4,510 units.On demand, the consultant said the sales of apartments across seven major cities rose 22 per cent to 154,921 units during April-June 2024. 

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No Project can fail if builders maintain financial discipline Haryana RERA member

No real estate project can fail if developers maintain financial discipline from the very beginning, Sanjeev Kumar Arora, member of Gurugram bench of Haryana regulatory authority, said. Addressing Assocham's National Conference on Changing Dynamics of Real Estate for Viksit Bharat, he also pitched for reduction of interest rates on home loans to boost demand. He spoke about the role of the real estate sector in the Indian economy,  especially in creation of employment opportunities. "There is a need of rationalisation of interest rates, because once the lending rates are reduced, certainly the investors or the homebuyers come forward. And builders are also happy to deliver at least possible costs," Arora said. Talking about real estate law RERA, Arora, a member of Gurugram bench of Haryana Real Estate Regulatory Authority (HRERA), said about 1,25,000 projects have been registered under RERA since the enactment across India while 75,000 brokers also have registered.  Real estate is a Rs 24 lakh crore market, and its GDP contribution is around 13.8 per cent, he added. Urbanbriq Development Management Pvt Ltd Director Vineet Relia said there could be a downcycle if the government doesn't support this sector in the coming years with regards to affordability.

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