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Reliance Industries invested in commercial real estate business

Reliance Industries has invested Rs 1,00,000 in the equity shares of RSOUL. “The company has incorporated a wholly owned subsidiary named Reliance SOU (RSOUL) to carry on, inter alia, the business of development of properties for commercial use,” it said in a BSE filing.

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It already has another company developing industrial, residential and commercial township in Haryana, Jhajjar, in the name of Model Economic Township, which is a subsidiary of Reliance Ventures, which in turn is a wholly-owned-subsidiary of Reliance Industries.

Residential And Office Transaction At A Nine-Year High

In the year 2022 as many as 3,12,666 residential units were sold across top eight markets of India, registering a growth of 34 per cent year on year (YoY), according to Knight Frank India’s latest report. New home launches also witnessed a 41 per cent increase YoY in 2022. Residential sales were led by Mumbai with 85,169 units, followed by the National Capital Region (NCR) with 58,460 units, and Bengaluru with 53,363 units.

The report further stated that the office sector in India recorded gross office leasing of 51.6 mn sq ft, a rise of 36 per cent YoY. New office space completions also grew by 28 per cent YoY to 49.4 mn sq ft. In terms of the office space demand, Bengaluru led with 14.5 mn sq ft, followed by NCR with 8.9 mnsq ft transacted area during the year.

In 2022, top office markets of India registered total gross leasing activities of 51.6 mn sq ft which was higher by 36 per cent YoY over last year. Interestingly, this is historically the second-best year for office transaction volume with the peak achieved in 2019. While the last quarter of the year was marred with some uncertainty owing to global economic disruptions, the stronger domestic economic environment allowed the office market to remain buoyant. Additionally, as more corporations push for return-to-work policy, demand for office has been steadily rising.

Service sectors like e-commerce, education, healthcare, and logistics companies among others accounted for the highest share at 30 per cent, followed by Information Technology (IT) sector at 22 per cent of the total space transacted during H2 2022. Co-working sector also witnessed a considerable growth in share of total transactions from 18 per cent in H2 2021 to 21 per cent in H2 2022.

Realty PE investment records 1.3x growth in investment inflows, in Q3-22

Real Estate private equity investment recorded nearly 1.3x growth with a total inflows of Rs 13120 crore for the third quarter of CY 2022, said Cushman and Wakefield in its latest report.

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The report mentions that the office segment attracted highest investor interest with inflows of around Rs 7990 crore. On a city-level, Bengaluru (21%) witnessed a high share in fund flow, followed by Delhi (18%) and Mumbai (15%). Multi-city investments accounted for close to 26% of the fund inflows for Q3.

“A lot of investors are backing commercial developments in cities like Bengaluru, Mumbai and Delhi NCR as the demand for office space is on an upward trajectory on the back of more and more employees returning to office,” the report mentioned.

“The recovering inflow of investments driven by foreign investors is a strong indicator that despite global headwinds, the Indian economy and the real estate sector are in sync to tackle the imminent macroeconomic risks. With strong demand observed in Grade A office and retail spaces alongside healthy performance in the residential segment, the overall investment sentiment will be optimistic in the coming years.

The report further mentioned that Q3 recorded corporate office space transaction volumes of Rs1340 crore, a q-o-q increase of 16.30%. Mumbai constituted a majority share of 59% of the total investment volume during the quarter, followed by Bengaluru with a 28% share.

The growth in this investment inflow can be attributed to the resilience shown by the Indian economy and the robust growth of GDP in the June-22 quarter. The report observed that India’s real GDP grew by 13.5% y-o-y as of the quarter ending June-2022, it mentioned.

Foreign investors constituted a majority share of 67% in the quarter’s investment volume with the majority of them coming into the office segment. Debt investments held a lesser share of 8% in the fund flows for Q3 with notable debt inflows from BPEA credit and Credit Suisse, while equity investments, with 92% share, constituted a larger share in the quarter.

Duties of Promoter under RERA

In the last section,clearance is necessary for RERA. So what is RERA? The full form of RERA is Real Estate Regulatory Authority. It is built up for taking the action against any problem in this real estate department. It makes clarity. It takes care of A to Z in the real estate department. And solves any kind of doubt related to this field.Most of the developers around decided that they want to build real estate under RERA. They demand a RERA purview. Because Raw Materials prices are not checked regularly. Also, approval is not regulated daily.

Duties of rera

Day to day it became a bigger challenge.Because procuring approval is delayed. Besides approval is not happening for daily purposes. It is a very critical situation in the real estate department. When asked, what changes they want in the RERA act. Maximum percentage claim that they want real estate development under RERA. They do not want to face procedural work delays, late infrastructure approval, arbitrary charges increase, and dispute land problems. 30% want an agreement. They have an experience of price increases in Raw Materials. For that, they need an agreement on where they can fix this problem.

In a press conference, CREDAI-NCR president Manoj Gaur said that authority will give approvals within 90 days. They are dependent on authority. Only authority can provide the clearance of the project. Authority will provide the basic framework of the project. Electricity and water on-time approval both are sections of authority. State law declares the above information very clearly.It is usually taken time more than one year. Launching a project is not a matter of a jock. Place approval is the main thing. The cost of the product plays a vital character in this field. Housing product cost hangs on the cost of obtaining approvals.

He said that for the timely finishing of the project, single-window clearance is important. He also told that those maximum projects are delayed before the approval of RERA. CREDAI-NCR general secretary Gaurav Gupta said that project could be hopeless if the rise section is not properly clear in the sale agreement. It takes the major part. To avoid this hopeless situation they will write down in the agreement about the rise section. And they will submit this to RERA. Maximum framework projects last more than 36 months. In the same way, real estate matteris included. Approx. 70% of developers in Delhi said that no changes in housing demand after the home loan hike interest.
Between 21 to 30 June survey was performed. Around 150 members including over 120 organizers all holders and administrators were joined there. The survey said too about launching a new housing project. They discussed this in brief. They said 80% of inventors are planning to launch a new project this year. Of the more than 75% are interested in the housing project. And the half-percentage inventors showed interest in low-priceprojects. They said that they want to keep the square feet price range within 3000-5000. This kind of housing project is suitable for them.

The maximum investors said that they cannot run their project because of pollution. And 56 % of investors showed official form as the reason for delayed work. RERA build-up in many States. The example of Karnataka, Delhi, West Bengal, Punjab, Goa, etc. RERA helps in many sections. They help to decrease the project delay. They also save from property fraud. For that, all builders must take the RERA registration certificate. They have to take this before they enter their first project.

High value properties rise as big families look to sell jointly-owned homes

Supply of high-value properties in the national capital and other metro cities is being driven by families wanting to sell jointly-owned bungalows in some of the most sought-after residential areas, said top realtors. Most of the properties are either owned by elderly people or by several members of the younger generation. Covid-19 has brought a fair bit of uncertainty into people’s lives. We see a keenness among families, especially the elderly, to formalise the distribution of assets to the next of kin, in their lifetime.

High value properties rise as big families look to sell jointly-owned homes

Most of such real estate, particularly the high-value properties priced around 25 crore and above, which were not on sale prior to Covid, have come onto the market now,” said Goyal. “In several cases, the original owner is not alive,and the next generation prefers to sell the jointly-inherited property sooner than later and divide the sale proceeds.

The Covid-19 pandemic has raised several queries about properties held in joint ownership. Never before, except perhaps in times of war, has the prospect of sudden, unexpected mortality of individual HNI joint owners without proper delegation of vested ownership rights become an issue which needs to be dealt with immediately.

Properties held in joint ownership can be very valuable family heirlooms or jointly acquired trophy assets in some of the most aspirational addresses in the country.

The real estate markets of Mumbai and Pune have seen the positive impact of slashed stamp duty charges in Maharashtra.

There has been astonishing demand in South Delhi’s premium colonies, with multiple buyers bidding for a single house. In most of the sales, the seller wants to move from joint ownership to single ownership, and that is also one of the reasons for the increase in demand. Prices in colonies like Anand Lok, Neeti Bagh or Defence Colony are now at par with Vasant Vihar due to the gap in demand and supply.