SEBI is inviting public comments on the proposed amendments to the REIT and InvIT rules. These amendments aim to clarify the unitholders' rights to nominate directors to the boards of investment managers or managers of REITs and InvITs. Currently, unitholders with the significant holdings can nominate the directors, but the amendments state that restrictions won't apply if the right is available under the SEBI (Debenture Trustees) regulations. This clarification addresses the market participants' requests. Public comments on the draft circulars are open until July 29. Amendments are proposed to the Master Circulars for InvITs and REITs dated May 15, 2024.Read more

Chennai's real estate landscape sees a modest uptick as the Tamil Nadu government's revised guideline values, effective from July 1st, lead to a 10% rise in property acquisition costs. For example, Alandur Road now values at INR 6,100/sq ft, up from INR 5,500/sq ft. This adjustment, prompted by a court's 2023 ruling, aims to standardize stamp duty calculations across 2.19 lakh streets. Builders, while acknowledging the necessity of fair valuation, highlight implementation challenges in districts like Alandur and Pallavaram. Despite marginal cost impacts, broader market conditions are likely to drive future pricing trends in Chennai's real estate sector.Read more

India's booming economy has led to a remarkable rise in family offices, from just 45 in 2018 to over 300 in 2024, reflecting a nearly seven-fold increase. These private firms manage the investments of wealthy families, diversifying beyond traditional sectors like real estate into stock markets, private equity, and venture capital. Family businesses contribute 60-70% to India's GDP, and as they expand, managing wealth becomes more complex. Despite challenges like the lack of a tailored ecosystem and succession planning issues, the trend signifies a tech-savvy, diversified approach to wealth management, ensuring continued economic contribution.Read more

Hyderabad is becoming a major hub for global BFSI (banking, financial services, and insurance) companies, with several significant acquisitions in the first half of 2024. Notable transactions include Cigna Healthcare securing approximately 900,000 sq ft and Metlife obtaining around 250,000 sq ft of office space. Companies like DTCC and Ameriprise have also established smaller spaces. SwissRe and Lloyds Bank expanded their existing footprints. The BFSI sector has become one of the top three office space occupiers in H1 2024, accounting for 30% of the share, driven by Hyderabad's strategic location and skilled talent pool.Read more

In a significant shift for India's financial sector, Vikram Pandit, former CEO of Citigroup, is exiting the real estate financing business he co-founded. INH Mauritius, managed by Pandit, is selling its 49% stake in JM Financial Credit Solutions (JMFCS) to JM Financial for approximately INR 3,000 crore (USD 420 million). This acquisition raises JM Financial's ownership in JMFCS to 96%. The move reflects challenges in the real estate sector, with JMFCS' valuation lower than its reported net worth of INR 4,200 crore (USD 590 million). Additionally, JMFCS will acquire a 72% stake in an asset reconstruction company for INR 856 crore (USD 120 million), aiming to capitalise on distressed debt recovery opportunities.Read more

A recently released report by Cushman & Wakefield emphasises India's strong preference for main-street retail leasing due to limited mall openings and high demand for top-tier retail spaces. In Q2 2024, high-street leases constituted 70% of total leases, with notable rent increases in Kolkata, Bangalore, Hyderabad, and Mumbai. Mall vacancy rates declined in major cities, with Grade A/A+ malls maintaining low vacancies. H1 2024 saw no new mall openings, but H2 is expecting 4.5 MSF of Grade-A malls. Nexus Select REIT saw 98% occupancy and plans to double its portfolio. Leasing activity surged in Delhi-NCR, Mumbai, Bengaluru, Hyderabad, Kolkata, Pune, Chennai, and Ahmedabad.Read more

Bengaluru's BBMP has collected INR 463.03 crore in property taxes through its One-Time-Settlement (OTS) scheme, with INR 624.88 crore still outstanding as the July 31 deadline nears. Launched on February 27, the scheme aimed to ease tax burdens by waiving 50% of penalties and interest but saw limited participation, with only 1.52 lakh out of 5.51 lakh defaulters settling dues. Despite issuing notices to 3.95 lakh property-owners, only 70,000 responded. BBMP Chief Commissioner Tushar Giri Nath urges eligible property-owners to utilize the scheme. Overall property tax-collection decreased to INR 1,758 crore this year.Read more

The West Bengal government has ended temporary tax breaks for the real estate industry, including a 2% reduction in stamp duty and a 10% decrease in the circle rate, which were introduced in October 2021 to aid pandemic recovery. These breaks, extended multiple times, expired on June 30th, 2024. The real estate industry, led by Sushil Mohta of CREDAI West Bengal and Merlin Group, expressed disappointment, highlighting that these breaks significantly boosted the sector and state revenue. Mohta urged the government to reconsider, suggesting further reductions in stamp duty and circle rate revisions. Despite concerns, the industry remains hopeful due to increasing urbanisation and rising disposable incomes.Read more

The Greater Noida Authority is auctioning five plots of land to raise at least INR 500 crore (approx. USD 61.7 million USD) and create around 8,000 new apartments. The online auction begins on July 2nd, with 99,000 square metres available across plots ranging from 3,999 to 30,470 square metres. Highlighting Greater Noida's green spaces, infrastructure, and NCR connections, the Authority aims to attract developers. Registration ends on July 23rd, with final document submissions due by July 29th. Successful bidders will gain immediate land possession, potentially transforming the city's housing landscape.Read more

The Securities and Exchange Board of India (SEBI) has introduced regulations for Small and Medium Real Estate Investment Trusts (SM REITs), offering small investors a new avenue into the real estate market. Unlike existing fractional ownership platforms, SM REITs will adhere to stricter rules, ensuring investments are made in completed, leased properties and providing clear cash flow management. With a minimum investment of INR 10 lakh, SM REITs make real estate more accessible, allowing investors to choose specific schemes and receive regular updates. This move promises to democratise real estate investment while maintaining transparency and security for investors.Read more