By Varun Singh

Construction cost of existing greenfield and interior fit-out projects has increased by 8-9% in Q4 2021 (Oct-Dec) as against Q4 2020 (Oct- Dec), as per JLL’s Q4 2021 Construction Price Report.

This is primarily driven by procurement challenges, leading vendors to procure from the first available source at a higher price, increased cost towards health and safety and skilled labour availability. The major impact has been on services, especially Long Lead imported items where there is limited local sourcing of materials. Long Lead Item refers to items whose delivery/supply time is longer as they may be imported from other countries like China, Malaysia and so on. They may also be items that are built as per design. Therefore, these items are not bought off the shelf and take a longer time to reach construction sites.

The impact of the first wave of the pandemic on market benchmark rates has been neutral to significant depending on the asset classes. There are a few challenges like idleness of plant and machinery along with enormous market competition which is compelling contractors to discount their margin as they bid for new projects. This discount is not sufficient to offset the overall hike in construction material and labour costs.

The second wave has given an overall image that the Covid-19 restrictions are there to last for years and with lockdown, transportation, manufacturing challenges, all the stakeholders are anticipating material cost increase for the forthcoming months. The cost impact post-second wave has been significant. The cost of new projects is up by 10-12% while the existing projects went up by 8-9%. The supply chain breakdown is the key reason as the cost of material and its freight account for 50-60% of construction budgets.

“With the combination of market re-emergence and survival from the hard-hit of Covid-19, construction prices been quite volatile since Q1 2020 that has made investors, developers, contractors take cautious decisions, although the price surge was far above all the assessments. As the market slowly started to recover, the long wait for projects to start have begun, there is always hope for prospects. The Indian construction industry is the key area of global real estate investments, the recovery pace can double fold in the upcoming quarters which will help all the stakeholders to narrow down the loss made in the previous quarters since the Covid-19 outbreak. The volatility is here to stay for a while until industry shows a steady sign of recovery along with other sectors like manufacturing, hospitality, FMCG, infrastructure, leisure and so on,” said MV Harish, Executive Managing Director, Project Development Services, JLL India.

So what’s making the home expensive? Spike in raw materials cost and labour cost leading to costlier homes.
The findings of JLL’s report demonstrates a price increase of overall 10-12% for new projects and 8-9% for existing projects. Contractors are increasing the overheads and profit, anticipating the uncertainty in the market majorly due to labour and material challenges.

The cost of labour has risen 10-15%, besides the regular increase, due to the knock-on impact of Covid-19 protocols and its associated costs. This includes costs related to compliance to new protocols like RT-PCR tests, idle time until test results, increased accommodation space for the same amount of labour, quarantine facility and sanitation measures. In addition to that, additional labour retention and transportation costs put together have contributed to the increase.

Overall Cost Impacts- the Ups and Downs

Since Q1 2020, steel is up 45-47% to INR 62,300/MT, copper also at 70-75% to INR 745,000/MT, followed by aluminium at 55-50% to INR 203,385/MT, PVC items by 80-90% to INR165,000/MT, and last, but not the least, fuel (primarily diesel) by a whopping 43-47% to about INR 94/liter.

While upsurge in construction cost per sq. ft for existing projects and new projects was at par (105%) in Q4 2020, new project cost went up substantially, from 105% in Q4 2020 to 113% Q4 2021 translating to an 8% hike.

While the markets continue to be volatile, it is anticipated that by Q2-Q3 2022 the construction prices will stabilize. The price rise that we have witnessed is going to be the “new normal”.

Also Read: Home Prices To Go Up Or To Remain The Same?

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By Varun Singh

When an year ends we look back at achievements, downfalls and many other things that makes one remember the year gone by.

In real estate, what matter the most is sale of homes and Mumbai, Delhi, Hyderabad and other prominent cities of the country witnessed many expensive deals.

Here we are listing the top 10 most expensive deals of the year 2021. These are all above Rs 100 crore and one amongst them is worth Rs 1001 crore too.

Here it is:

No 1: D Mart Owner Radhakishna Damani along with Gopikishan Damani paid Rs 1001 crore to buy a two storey property in Malabar Hill. The deal was registered on March 31. The property measures a whooping 5752.22 square meters, which translates into 61,916 square feet.

Read More: D Mart Founder Buys Malabar Hill Property For Rs 1000 Crore

No 2: Real estate tycoon Raheja family, bought three duplexes spread over five floors comprising of 18 apartments in Worli’s Artesia building for Rs 427.81 crore. The total area when calculated comes to 6202 square meters. This translates into 66811 square feet. This deal was registered in April 2021.

Read More: 3 Duplexes Comprising Of 18 Flats, 42 Parking, Sold In Worli For Rs 427 Crore

No 3: JK Paper Ltd, bought a 3,731-square yard bungalow on Prithviraj Road in Lutyens Bungalow Zone for Rs 253 crore in one of the biggest transactions in Delhi.

No 4: Sanitary ware company Jaquar Group purchased three farmhouses in Delhi’s Westend Greens for around Rs 235 crore. The farmhouses bought by the company are spread over 2.5 acres each.

No 5: Panhar bungalow in Worli was sold to a Surat-based diamond firm headed by Ghanshyambhai Dhanjibhai Dholakia for Rs 185 crore. Panhar bungalow’ consists of a basement and ground-plus-six storeyed structure located opposite Worli sea face, one of the sought-after locations in Mumbai. It occupies an area admeasuring 19,886 square feet.

No 6: Aakash Educational Services Ltd founder J C Chaudhry has bought a 2,000 square-yard property in South Delhi’s Vasant Vihar for around Rs 150 crore.

No 7: Anil Gupta, chairman and managing director of KEI Industries, manufactures of cable and wire, bought a 2000 square yard property at Delhi’s Shanti Niketan for Rs 140 crore.

No 8: Pranabh Mody and Purbi Asher, of J B Chemicals & Pharmaceuticals, bought two sea-view luxury apartments in JSW Realty’s under-construction project Morena House in South Mumbai’s Carmichael Road for Rs 138 crore. Mody, bought the apartment spread over 5,341 sq ft on the 5th floor for Rs 70 crore, his sister Asher bought the 5,284-sq-ft apartment on the 4th floor for Rs 68 crore.

No 9: Shailesh Dalmia and his wife Natasha bought four sea-view luxury apartments in under-construction high rise in Artesia building, Worli for Rs 125 crore. All four apartments are spread over nearly 11,000 sq ft on the 33rd floor.

No 10: Abeey’s Realcon LLP of Avinash Bhosale invested Rs 103.8 crore to buy a duplex in the building Sesen, Napeansea Road, the duplex is spread on the 53rd and 54th floor of the building. The total carpet area of the duplex is 7118 square feet and the terrace measures 3503 square feet.

Read More: Avinash Bhosale Buys Rs 103 Crore Duplex In Mumbai

There are other many deal that took place in several cities of the country. However, we restricted ourselves to the top 10 real estate deals, where the consideration amount was above Rs 100 crore.

Most of the deals were reported by documents provided by Zapkey.com, to SquareFeatIndia.com

Also Read: Bhushan Kumar Of T-Series Paid Rs 167 Crore For Juhu Bungalow

The post 10 Most Expensive Real Estate Deals of India in 2021 appeared first on Square Feat India.

By Varun Singh

A big ticket real estate deal took place recently in Mumbai’s Napean Sea Road. It is the same area which has seen several expensive real estate deals taking place in the past.

The flat measures 5,165 square feet and to register the deal, a stamp duty of Rs 3.05 crore was paid.

While the doucmentation in regards to the registration was carried out on August 31, the real estate deal was registered on September 7.

Napean Sea Road houses the who’s who of India’s buisness sector, most of the big businessmen of the nation own a house in the area or the vicinity.

A real estate deal in Napean Sea Road always catches the eye of the industry as it does end of up setting some sort of record.

Recently one more deal took place in the area, of which the consideration is a huge amount.

The flat sold is located on the 20th floor (10th habitable floor) of the building named The Residence.

According to documents made available to SquareFeatIndia by Indextap.com, the flat measuring 5,165 square foot (RERA carpet) was sold for a total consideration of Rs 61.11 crore. The buyer as per the document is Ashish Goel

When calculated based on the per square feet rate, the cost of the apartment goes to Rs 1.18 lakh.

Along with he new apartment, the owners will also have access to 4 car parks in the building.

Some Big ticket deals

• Jiten Doshi and Hetal Doshi, Jiten a reputed and well known name in the Capital Markets had bought a flat for Rs 61 crore in 33 South, Peddar Road, the per square feet rate was Rs 1.66 lakh. This deal took place in February.
• Business tycoon Anurang Jain bought an apartment in Carmichael Residencies in 2020 for Rs 1.56 lakh per square feet.
• The Daftary’s bought an apartment in 2020 in Carmichael Residencies for Rs 1.58 lakh per square feet.
• The Motilal Oswal Family Trust paid Rs 1.48 lakh per square feet in 33 South, Peddar Road in 2020.
• Sadbhav Land Pvt Ltd’s Arjun Betkekar paid Rs 1.13 lakh per square feet for a flat in Carmichael Residencies in January 2021

Also Read: Sunny Leone Buys Andheri Flat For Rs 16 Crore

The post Stamp Duty Paid for Napean Sea Flat is Rs 3 Crore, Imagine its Cost appeared first on Square Feat India.

By Varun Singh

December has not just set a record when it comes to registering highest sales in the year. It also will be known as a month in which India’s most expensive deal has been registered.

On December 24, the country witnessed its most expensive deal being registered in Mumbai.

Two flats each measuring 3183 square feet were sold in South Mumbai’s Carmichael Residencies.

The flats are bought by Pharma industry bigwigs, Akshay and Karan Daftary and are located on the 20th floor of the building.

Akshay Daftary bought flat number 2001 while Karan’s flat is numbered 2002. Both of them paid Rs 50.50 crore each for the flats.

The total area of the flat comes to 6366 square feet and the total consideration amount is Rs 101 crore.

When calculated the per square feet rates goes to Rs 1,58,655, thus making this the most expensive apartment sold in the country in the year 2020.

Along with the apartments the buyers have also access to a total of eight car parks in the building. A total of Rs 2.02 crore was paid as stamp duty for the registration of the apartments.

The stamp duty for each flat is Rs 1.01 crore.

TOP DEALS OF 2020

The second most expensive deal in the year 2020 also is from the same building Carmichael Residencies.

In July businessman Anurang Jain paid Rs 1.56 lakh per square feet for an apartment in Carmichael Residences in July 2020.

The third most expensive deal would be Motilal Oswal Family Trust buying an apartment in 33 South in Malabar Hill for Rs 1.48 lakh per square feet. This deal also took place in December.

This is followed by businessman Shushilkumar Jain’s purchase, where he paid Rs 1.30 lakh per square feet for an apartment in Bandra’s Navroze building.in July 2020.

Also Read: Tardeo Flats Sold For Rs 1.18 lakh Per Sq Ft

The post This Is 2020’s Most Expensive Realty Deal appeared first on Square Feat India.

By Varun Singh

Bandra is called the queen of suburbs, and this deal could be the kohinoor in the queen’s throne.

Two flats sold on the same floor of Pali Hill building have fetched a combined value of Rs 1.30 lakh per sq ft.

Bandra’s Pali Hill is the Beverly Hills of Mumbai suburbs, and is house for most of the film celebrities.

The building we are talking about is Navroze built by Kryshnajay developers at Bandra. The total amount paid by the buyer is Rs 66.01 crore for an area of 5064 sq ft.

The flats are located on the 16th floor of the building. There are two registrations carried out for both the flats.

While flat number 16 A was registered in the name of Indo Borax and Chemicals Ltd. The other flat 16 B was registered by its directors Shushil Kumar Jain, Sreelekha Jain and Sajal Jain.

16 A measures 2934 sq ft and the consideration paid is Rs 39.33 crore. While 16 B was sold for Rs 26.68 crore and measures 2129 sq ft.

The combined area of both the flat is 5064 sq ft and the total amount paid is Rs 66.01 crore. The ready reckoner rate of both the flats would come to Rs 24.6 crore.

When calculated the per sq ft rate for the deal is Rs 1.30 lakh. Which is the second highest realty deal of the year 2020.

This deal gains prominence because of the time it took place. According to documents available, the deal was finalized on April 6 and April 8, when the country was under a lockdown.

The deals were registered on July 17, by paying a stamp duty of Rs 3.29 crore. The buyers even got five car parks with the flats.

On July 9, Anurang Jain registered two flats worth Rs 100 crore in Carmiachel Residencies in South Mumbai. Jain paid Rs 1.56 lakh per sq ft for the apartment.

Actor Ranbir Kapoor, in 2016 had bought an apartment in Bandra by paying Rs 1.42 lakh per sq ft.

In 2018, Karisma Kapoor had sold a Bandra flat for Rs 1.03 lakh per sq ft. While in December 2017, Priya Duty sold a flat in Bandra for Rs 93,000 per sq ft.

A detailed e-mail sent to Indo Borax and phone calls made to contact Jains got us no response. While Ajay Ashar of Kryshnajay Developer Pvt Ltd assured that he shall call back, but didn’t respond later.

Also Read: India’s costliest realty deal of 2020 at Rs 1.56 lakh psf

Big ticket deals

• In June this year, businessman Pratik Agarwal registered a flat in Samudra Mahal, for Rs 1,12 lakh per sq ft.
• Veteran banker Romesh Sobti along with his wife bought an apartment for Rs 76 crore in Worli’s Three Sixty West.
• In 2019 Manish Patel paid Rs 1.29 lakh per sq ft for an apartment in Lodha Altamount.
• In July 2018, a flat exchanged hands in Mumbai’s Breach Candy, or Bhulabahai Desai Road, for Rs 1.49 lakh per sq ft. The nearly 2,422-sq ft apartment, in Ashford Palazzo, was sold by Ashford Construction Pvt Ltd to Satish and Sarita Patwari for Rs 36.11 crore.
• In March 2018, a 2,300-sq ft sea-facing flat in Worli’s Champagne House was sold at a staggering rate of Rs 2.32 lakh per square foot, setting a new record for Mumbai by fetching Rs 53.5 crore. Its current owners, the Kotak family, paid Rs 275 crore for the entire Champagne House.
• In 2018 two top businessmen sealed two major deals. Harsh Goenka of RPG Group bought a flat measuring 3,500 sq ft in IL Palazzo for Rs 45 crore. And Niraj Bajaj bought a 16,000-sq ft apartment at Worli’s Three Sixty West for Rs 120 crore.
• In May 2019, in a big-ticket deal, the sprawling RK Studios, was sold by the five Kapoor siblings to Godrej Properties Ltd for Rs 250 crore.

The post Bandra flats sold for record Rs 1.30 lakh per sq ft appeared first on Square Feat India.

By Varun Singh

Managing Director of Sterlite Power, Pratik Agarwal has shelled out Rs 1.12 lakh per sq ft to buy a sprawling duplex in Worli.

The duplex apartment is located on the fourth floor of Samudra Mahal, the most sort out address in Worli.

The total area of the duplex bought by Agarwal is 3,639 sq ft for which he has paid Rs 41 crore.

The deal was registered on June 17, 2020, however, someone close to the deal said that it was carried out quite some time ago.

Going by registration document details, this would be the expensive deal of the year 2020 up till now.

Pratik Agarwal already owns a house in Samudra Mahal and resides on the third floor of the building.

Along with the apartment the Sterlite Power MD also got a covered car parking space admeasuring 200 sq ft.

Talking about the building, Rajiv Jain, of Ruchika Shelters says, “Samdura Mahal has braved all storms, this is one building which always stood strong. Also in this deal if you notice, the buyer is a resident of the building. When you buy a next door apartment you tend to pay a premium.”

Samudra Mahal is a premium property in South Mumbai and has been in news for quite some time now. It has apartments where Nirav Modi, Rana Kapoor resided. This building is built on a land parcel where once stood a palace owned by the royal family of Gwalior, the Scindias.

When compared to previous deals, where Nandan Nilekani had paid Rs 1.29 lakh per sq ft this one is a slight lesser. But this would be the most expensive per sq ft deal registered in 2020.

Meanwhile, according to reports, Nilekani had bought the flat from Pravin Agarwal, father of Pratik Agarwal in 2015.

Agarwal didn’t respond to an email sent to Sterlite Power. However, someone aware about the deal said, “Agarwal had bought the flat earlier and registered it in June.”

Many top deals were registered in June this year. For example Veteran Banker, Romesh Sobti registered his flat on June 26.

Sobti along with his wife bought apartments worth Rs 76 crore in Three Sixty West located at Worli.

Also Read: Slowdown? He paid Rs 76 crore for two flats in Worli

Previous big ticket deals

• In 2019 Manish Patel paid Rs 1.29 lakh per sq ft for an apartment in Lodha Altamount.
• In July 2018, a flat exchanged hands in Mumbai’s Breach Candy, or Bhulabahai Desai Road, for Rs 1.49 lakh per sq ft. The nearly 2,422-sq ft apartment, in Ashford Palazzo, was sold by Ashford Construction Pvt Ltd to Satish and Sarita Patwari for Rs 36.11 crore.
• In March 2018, a 2,300-sq ft sea-facing flat in Worli’s Champagne House was sold at a staggering rate of Rs 2.32 lakh per square foot, setting a new record for Mumbai by fetching Rs 53.5 crore. Its current owners, the Kotak family, paid Rs 275 crore for the entire Champagne House.
• In 2018 two top businessmen sealed two major deals. Harsh Goenka of RPG Group bought a flat measuring 3,500 sq ft in IL Palazzo for Rs 45 crore. And Niraj Bajaj bought a 16,000-sq ft apartment at Worli’s Three Sixty West for Rs 120 crore.
• In May 2019, in a big-ticket deal, the sprawling RK Studios, was sold by the five Kapoor siblings to Godrej Properties Ltd for Rs 250 crore.

Also Read: Exclusive: Biggest realty deal of 2020 inked for Rs 136 Crore

The post Power firm MD pays Rs 1.12 lakh psf for Worli duplex appeared first on Square Feat India.

By Varun Singh

This real estate deal has to be the biggest deal of the year 2020. Where a business family has spent Rs 136.27 crore to buy apartments spread over four floors in Mumbai.

This will help you gauge how big the deal is. Only the stamp duty paid for registering the deals can fetch you a spacious 3-BHK in Prabhadevi.

The property was bought by Neeraj Kochhar and Kannika Dhurv Kochhar. Neeraj is Chairman of Viraj Profiles Ltd, a leading manufacturer of stainless steel products.

The Kochhar’s in the month of March bought apartments, on the 46, 47, 48 and 49th level of Indiabulls Blu located at Lower Parel.

According to documents available with SquareFeatIndia.com, the deals were registered on March 16, just few days before the lockdown.

The flat located on 46 and 47th floor is registered on the name of Neeraj Kochhar.

The duplex flat located on 48 and 49th floor is registered on the name of Kannika Dhruv Kochhar and Neeraj Kochhar.

Both the flats measure 10,502 sq ft respectively thus taking the total area bought to 21,004 sq ft.

Stamp duty paid by the buyers for the registration of flats is a total of Rs 8.17 crore. The per sq ft rate for the purchase comes close to Rs 64,878.

The Kochhar’s along with the apartments also got a total of 16 covered car parking spaces. Eight for 46 and 47th floor and the remaining eight for 48 and 49th floor.

Several attempts made to get a comment from Neeraj Kochhar got us no response. Emails sent to his office, also yielded no response.

While this was the biggest deal of 2020, some previous big ticket deals include Niraj Bajaj spending Rs 120 crore for a flat in 360 West, Worli, in March 2018.

RK Studio was bought by Godrej Properties ltd in May 2019 for Rs 250 crore.

Singer Arijit Singh had paid Rs 9.1 croreto buy four flats at one go in Versova earlier this year.

Also Read: Arijit Singh Buys 4 Flats At One Go in Mumbai.

The post Exclusive: Biggest realty deal of 2020 inked for Rs 136 Crore appeared first on Square Feat India.