Affordable Housing Finance Companies (AHFCs) witnessed a remarkable resurgence in growth during FY23, expanding by 27% year-over-year, as per a CareEdge Rating report. Forecasts suggest a sustained growth trajectory, with a projected 29% growth in FY24 and a further 30% in FY25 for AHFCs. Despite elevated costs and margin pressures, asset quality remains stable with a GNPA ratio around 1.2%. The report also anticipates a rise in the non-housing segment share to 27% by March 31, 2024, amidst high competition.Read more

HDFC Bank's home loan book reached INR 6.84 lakh crore in December, nearing SBI's INR 6.94 lakh crore. SBI had surpassed HDFC in February 2021 with a market share of 23.5% to HDFC's 17%. Despite HDFC Bank's rapid growth post-merger, it lost market share. However, HDFC Bank's sequential growth outpaced competitors at 3.6%. SBI aims for a INR 10 lakh crore home loan book in five years. HDFC Bank focuses on reducing loan processing time and increasing cross-selling opportunities. They plan to introduce home refurbishment loans and a home saver product to enhance customer offerings and digital connectivity.Read more

The National Housing Bank (NHB) of India has launched an initiative to bolster the housing finance market, focusing on Residential Mortgage-Backed Securities (RMBS) in collaboration with the Reserve Bank of India. The plan includes forming the RMBS Development Company Limited (RDCL), with NHB as the major shareholder and significant investments from insurance companies, private banks, and Housing Finance Companies (HFCs) like Grihum Housing Finance Ltd (Grihum). With India's housing finance market expected to double soon, especially in catering to economically weaker sections, lower-income, and middle-income groups, this initiative aims to drive economic growth, financial inclusion, and affordability while diversifying funding sources for HFCs.Read more

The Indian commercial office sector is experiencing a substantial surge, as per the latest findings from ICRA, a leading credit rating agency. Their report indicates a remarkable potential for Real Estate Investment Trusts (REITs) within the office market. The report reveals that the REIT-ready office supply market could boost the office REIT market size by 6.0-6.5 times, with Bengaluru leading the way at 31% of the supply. Presently, three listed office REITs in India represent about 9% of the total office supply. Despite challenges like high vacancies in SEZ space, office REITs maintain a healthy 84% occupancy rate. ICRA projects a revival in SEZ attractiveness, supporting a stable outlook for India’s commercial office sector due to its appeal to global capability centers.Read more

Private equity giants Bain Capital, Advent International, and CVC Capital, along with Warburg Pincus, vie for Shriram Housing Finance Ltd (SHFL), a subsidiary of Chennai's Shriram Finance. Initial offers fell short of Shriram's INR 6,500 crore valuation, prompting renewed talks after last year's unsuccessful stake sale. SHFL's impressive growth has driven the need for capital infusion, aiming to reach INR 20,000 crore assets under management by FY25. The company's focus on affordable housing attracted investor interest amidst India's booming market. The potential acquisition signals a transformative shift in India's housing finance landscape, offering promising opportunities for growth and innovation.Read more

Property registrations in Pune surged by 46% year-on-year in January 2024, totaling 17,700 units compared to 12,166 in January 2023, according to the Maharashtra government’s Department of Registrations and Stamps. Stamp duty collections for the same period also witnessed substantial growth, reaching INR 589 crore compared to INR 441 crore in January 2023. Notably, residential units priced between INR 50 lakh and INR 1 crore dominated transactions with a 32% market share, followed closely by units priced between INR 25 lakh and INR 50 lakh at 31%. The data reflects a thriving real estate sector in Pune across various price ranges, apartment sizes, and buyer demographics.Read more

In a noteworthy decision, the Income-tax Appellate Tribunal (ITAT), Delhi bench, ruled in favor of a non-resident taxpayer regarding the taxation of the variance between the stamp duty value and the agreement value of a property in Mumbai. The case of Shyamkumar Madhavdas Chugh highlighted the discrepancy between the agreement and registration dates, leading to differing values. The ITAT held that this difference cannot be deemed 'Income from other sources,' citing Section 56(2)(vi)(b) and emphasizing the importance of considering the stamp duty value on the agreement date. This ruling sets a significant precedent in clarifying tax treatment for property transactions, especially concerning timing disparities.Read more

The Magicbricks Rental Update for October-December 2023 highlights a robust 17.4% YoY surge in rents across 13 major Indian cities, led by Gurugram (31.3% YoY), Greater Noida (30.4% YoY), and Bengaluru (23.1% YoY). Rental demand modestly increased by 1.6% YoY, with Greater Noida, Ahmedabad, and Chennai witnessing the highest growth. However, rental supply decreased by 16.9% YoY, particularly in Noida, Hyderabad, and Greater Noida. Economic expansion, job markets, rising incomes, and migration to Tier 1 cities drove rental demand, while interest rates surpassing rental yields deterred investors. Millennials constituted 67% of rental demand, with 2 BHK units dominating the market at 41%.Read more

India Shelter Finance Corp Ltd. demonstrates robust performance in Q3 FY24, with a 42% year-over-year increase in Asset Under Management (AUM) and a notable 55% surge in Profit After Tax (PAT) to INR 62 Crores. As of December 31, 2023, Gross and Net Stage 3 NPAs improved to 1.2% and 0.9%, respectively, from 2.3% and 1.8% in December 2022. The company's Net Worth reached INR 2,209 crore with a liquidity reserve of INR 1,488 crore. Despite market challenges, the company maintains a stable cost of funds and enhances Return on Assets (RoA) and Return on Equity (RoE). Significant reductions in Non-Performing Assets (NPAs) underscore resilience and growth potential in the housing finance sector.Read more

Adani Realty and L&T Realty lead the race for a 24-acre development in Mumbai's Bandra Reclamation, following a stringent tender process by Maharashtra State Road Development Corporation (MSRDC). Originally attracting interest from major players like Godrej Properties and Mahindra Lifespaces, strict eligibility standards narrowed submissions to three contenders: L&T Realty, Adani Realty, and Mayfair Housing. Positioned near the Bandra-Worli Sea Link toll booth, the project holds significant commercial value, estimated at over INR 30,000 crore, with plans for a 45 lakh sq. ft. mini-township and an INR 8,000 crore payment obligation to MSRDC over the next decade-plus. Supervised by JLL, the tender imposed strict criteria, triggering opposition from locals citing environmental concerns and past agreements, potentially leading to legal challenges from groups like BRAVO.Read more