According to documents accessed by SquareFeatIndia, provided by Zapkey, the deal was signed on January 4.

The rental deal is for 36 months, the deposit amount is Rs 9.3 lakh.

The monhtly rent for the first year is Rs 3.1 lac, for the second year it is Rs 3.25 lakh per month and for the third year the is Rs 3.41 lakh per month.

While the owner is Rohit Sharma who also is the Captain of Indian Cricket Team the tenant is Shiva Malani.

The property is located on 14th floor of Karma CHSL, 15th road, Bandra West.

The total area of the apartment is 1047 sq ft.

Also Read: Rohit Sharma Sells Villa for Less than He Bought it for

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By Varun Singh

A home buyer approached MahaRERA with an interesting plea. The home buyer had booked an apartment in the project Hi Life.

The buyer then cancelled the booking, after the builder hiked the price. The builder then sold the apartment at a higher price.

Buyer stated that builder earned profit by selling the flat to another buyer at higher price. Hence, he sought interest on the money paid by him to the builder.

The case pertains to a Pune project where a home buyer, approached, MahaRERA against, the developer of project Hi Life at Thergaon Pune.

The complainant according to the complaint, had booked the flat for Rs 53.07 lakh plus 12% GST on August 23, 2018. He even paid Rs 2 lakh token amount and Rs 3.48 lakh for stamp duty and registration.

Thereafter the builder sent an email on January 18, 2019 to the buyer stating that the price was revised and the flat now cost Rs 54.94 lakh plus 8% GST.

According to the complaint, since the developer increased the cost of the flat, the complainant cancelled the booking and money was refunded.

But as the developer made profits as he sold the flat at a higher cost. Hence, the complainant sought interest on the money he paid to the builder.

The builder in his plea stated that, the complainant had no locus standi as he cancelled the booking in March 2019. Post which the entire amount was paid back to the buyer, and asked for dismissal of the complaint, as he wasn’t an allottee.

However, MahaRERA maintained the complaint as it was filed in February 2019, which is before cancellation of the booking, when he was an allottee.

Dr Vijay Satbir Singh, Member-1, MahaRERA, stated that under section 18(1) of RERA, a builder has to refund the amount along with interest, to allottee on demand, if the date of possession gets lapsed,

In this case, Singh found no agreement of sale or allotment letter with a date of possession. Thus he pointed out that the claim of the buyer seeking interest cannot be considered under section 18 of RERA.

Singh stated that MahaRERA couldn’t find any merit in the complaint and hence dismissed it for want of merits.

Also Read: Action against residents for occupying flats without OC

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By Varun Singh

Warehousing stock has grown at 25% y-o-y. The total stock of warehousing is expected to cross 375 mn sq ft by 2023. This what a report by JLL an international real estate consultancy firm says.

In what could be a key indicator of consumer demand and growing confidence, the Indian warehousing sector has shown a robust growth at 25% y-o-y with the total warehousing space at 211 mn sq. ft. at the end-2019 compared to 169 mn sq. ft., a year ago.

Not just that, the the total warehousing stock of India is expected to cross 375 mn sq ft by 2023 with an increased share of Grade A stocks. Strong demand is expected to drive the market absorption and keep the vacancy below 10%.

Gross absorption In 2019 touched 40.7 msf while Net Absorption in 2019 grew to 36.4 msf

In the latest report by JLL India Industrial Services, 2019 witnessed a 15% y-o-y growth in total net absorption in Grade A & B warehousing space in top eight cities. The Delhi NCR region followed by Mumbai and Bengaluru remained the top three cities in terms of warehouse space absorption in 2019. These three cities together account for more than 20 mn sq. ft of absorption. Interestingly, other cities such as Kolkata, Chennai and Pune continued their strong show.

The market has also witnessed 3PL (third party logistics) emerging as the largest occupier of space as the sector received two pronged growth: one from the sector’s self-expansion and other from demands transcending form other sectors who are shifting to asset or less liability or asset light model of leases through 3PL players.

“Sectors such as 3PL and ecommerce are prompting the market to develop more Grade A warehousing space as occupiers make the transition to spaces with global level specifications. This is further being enabled by liquidity infusion by global investors as in the longer run, increased capital will ensure that more quality space is being built to fulfill the demand for warehouses not only in tier I but going forward in tier II cities”, said  Yogesh Shevade, Head – Industrial Services, JLL India.

Given that transportation, contribute to a significant operation cost of logistics, if the infrastructure challenges are addressed, India’s logistics and warehousing sector will see significant growth, and foreign capital will remain an integral part of this.

Investments in 2019 – YTD, January 2020

Larger funds and developers willing to create a mark in the bigger spectrum of Indian warehousing are evaluating regional developments having strong tenant profile with a combination of land & stabilised assets. It provides them with the opportunity of having a stable source of financials from the existing occupiers while they are also able to build and create inventory in future years catering to the upcoming demand. Below investments concluded in 2019, reflect similar trend where the likes of Blackstone, ESR or Morgan Stanley have invested in a combination of platform or project level deals.

“2019 was rounded off with the entry of some large players in the Indian warehousing market like Blackstone. The larger investors have adopted customized investment strategies to tide over slow supply of ready-made investment grade assets vis-à-vis demand and at the same time ensuring that they own quality-rent yielding warehousing space in the future. The existing players have expanded their footprint not just in existing locations but also in newer locations to in order to widen their offerings to the occupiers”, said Sandeep Narayan Singh Deo, Head – Industrial Capital Markets, JLL India.

Also Read: Mumbai Sees A Decline Of 3% In Home Prices.

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By Varun Singh

Home sales in the country have seen an upward trend. According to a study by PropEquity, a real estate data, research and analytics firmHome sales pan-India saw a surge of 12%, and new launches are up by 37% in Q4.

The study shows that, home sales or absorption of housing units increased by 12% across top 9 cities in India in the fourth quarter of 2019 to 60,453 units versus 53,909 units in Q3 2019.

New supply of housing units also jumped 37% in the same period to 44,459 units from earlier 32,565 units. The last calendar quarter of 2019 was relatively better as demand led to some recovery in the housing sector in India.

Residential real estate in India continues to be an end user driven market as ready to move-in or nearing completion properties are being preferred. Developers with excellent track record in terms of quality and execution continued to witness solid sales numbers across projects.

Pune, Bengaluru and Thane were top cities on the basis of supply and absorption in Q4 2019. Also, the unsold stock decreased by 3% as compared to the previous quarter as housing sales improved.

“Housing market has definitely improved and we are witnessing green shoots of recovery as evident from the latest Q4 report. However, it will take mid to long term time for the sector to come out from its lows. Q4 is seasonally a better quarter for the housing market due to various schemes and new launches offered by developers because of festive period. We continue to expect market to recover in 2020 and also expect govt. to announce positive budgetary measures in the forthcoming budget,” Samir Jasuja, founder and managing director at PropEquity said.

Cities

Gurgaon

Gurgaon saw a massive increase of 339% in new launches in Q4 at 1217 units. Sales Increase by 78% in the sequential quarter at 2,175 units.

Noida

Noida saw 372 % increase in new launches in Q4 and sales increasedby 55% to 1,615 units.

Mumbai

New launches witnessed an increase of 136% in Q4 at 3,501 unitswith absorption increased by 28% to 5,996 units.

Kolkata

Kolkata saw an increase of 66% in new launches in Q4 at 5,026 units with sales increasing by 52% to 4,743 units.

Hyderabad

Hyderabad saw a decline of 12% in new launches in the quarter at 3,332 units, sales also fell by 4% to 4,643 units.

Bengaluru

India’s IT capital saw anincreaseof 4%in new launches in the quarter at 9,073 units. Housing sales alsoincreased 4% to 10,263 units.

Pune

Pune witnessed an increase of 55% in new launches at 12,468 units in Q4, absorption also increased4% to 15,453 units.

Chennai

Chennai saw a decline of 2% in new launches in Q4 at 2,946 unitsbut sales increased by 9% to 3,632 units.

Thane

Thane witnessed an increase of 42% in new launches in the quarter at 5,608 units, absorption increasedby 9% in Q4 at 11,933 units.

Also Read: India To Add 100 New Malls by 2022

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By Varun Singh

MahaRERA (Maharashtra Real Estate Regulatory Authority) has till date granted registration to 24,009 projects. It is mandatory that every project that is ongoing and is selling or advertising to sell flats, apartments, plots or space has to be registered with MahaRERA.

Since its inception in 2017 till now, the housing authority has received 10,163 complaints. Of which 9485 complaints were against registered projects and 678 against unregistered projects. MahaRERA has passed 7242 orders till now, of which 6741 are of registered projects, while the remaining 501 are in cases of unregistered projects.

There are thousands of home buyers who have approached MahaRERA because of it’s simple procedures and many even have got relief. the complaints vary from delay in possession by developers. Developers not fulfilling their promises made to home buyers and in some cases developer goes missing and project gets stuck.

All these cases are heard, but there are many who still think it is hard to get at MahaRERA, for them we approached lawyers to help our readers understand the procedure. Advocate Prakkash Rohira & Advocate Sunil Kewalramani helped us with it.

Square Feat India with the help of these two advocates gives you a step wise understanding on how to register you complaint with MahaRERA.

1. Before starting your complaint or meeting with your lawyer/representative keep the following documents ready
   a. Agreement / allotment letter
   b. Payment Receipts / Proofs
   c. All communication with Agent/developer
2. Identify the problem, ensure it falls within the definition and scope of the RERA Act and Rules. (The lawyer will help you understand this, as he’s read the act.)
3. Register your account online as a complainant.
4. Fill in the relevant tabs/forms.
5. Pay the Complaint fees.
6. Complaint is registered.
7. Thereafter you will get email from Maharera regarding the 1st date of hearing.

These seven steps are sufficient to help you get your complaint to the benches of MahaRERA, where it will be heard.

Also Read: To Protect Home Buyers, MahaRERA Takes Suo-Motu Action Against 23 Projects.

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By Varun Singh

Now India’s leading bank State Bank of India (SBI) shall be safeguarding home buyers financially. The bank has come up with a scheme named Residential Builder Finance with Buyer Guarantee (RBBG). Where the bank shall guarantee safeguards for completion of projects to customers availing SBI Home Loans. Housing experts says the underlying provision of this scheme is that the bank commits to refund the principal loan amount if a developer fails to complete the project.

Home buyers will be able to secure their investment in the ongoing home projects financed by the bank itself. RBBG will focus on affordable housing segment with home price of upto Rs. 2.50 crores in seven Indian geographies initially. Under this product, all reputed builders fulfilling the prescribed criteria by the bank can avail loan between Rs. 50 crores to Rs. 400 crores. Criteria includes Star rating and CIBIL score.

Rajnish Kumar, Chairman, SBI said, “We believe that RBBG will build confidence among home buyers by securing their hard-earned money and at the same time will boost under-stress real estate sector. This product is yet another effort by SBI to make affordable housing conveniently accessible to the individuals with dreams of owning their desired home. Based on the response from both builders and customers, we may consider extending this product to other parts of the country.”

Realty experts have hailed this scheme.

Anuj Puri, Chairman – ANAROCK Property Consultants says, “SBI’s scheme is an extremely good move and positive for the residential real estate sector as a whole. It will certainly help attract homebuyers. The underlying provision of this scheme – that the bank commits to refund the principal loan amount if a developer fails to complete the project – will ensure that SBI remains highly selective in its approach and work only with the most reliable and trustworthy developers.

To mitigate the risk of having to issue refunds, it will also keep a regular check on the progress of the project and see to it that it is completed on time. This will eventually give major assurance to all homebuyers who will opt for loans under this scheme from the SBI, and help in boosting their confidence. The unique scheme has all the hallmarks of becoming a major success.

“The scheme can be availed for projects where the maximum home price is up to INR 2.5 crore, and this will ensure that a large number of projects across all budget segments will get covered under it,” says Puri.

Developers Happy Too

State Bank of India (SBI) has already entered into Memorandum of Understanding with Sunteck Realty Limited (SRL) under the Bank’s “Sapna Aapka – Bharosa SBI Ka” scheme with Bank Guarantee to Home Buyers under the Builder Finance scheme.

Kamal Khetan, CMD, Sunteck Realty Ltd. said, “We are humbled to be the first partner of the biggest bank of India. This is an endorsement of our strong brand and product offerings, our track record of timely delivery, our pristine balance sheet and adherence to compliance. This MoU is a win-win for our customers who would get the best value proposition for the best quality homes.”

Launched with a tag line “Sapna Aapka Bharosa SBI Ka”, Residential Builder Finance with Buyer Guarantee will offer home buyers to choose their dream home from SBI approved projects in 10 cities with complete trust and transparency.

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By Varun Singh

Actor Shraddha Kapoor a few months ago gifted father Shakti Kapoor, her 50 per cent share in a Juhu property. The property measuring 81.84 sq Mts is located in the building named Silver Beach Heaven on Juhu Tara Road.

Shakti Kapoor within a few weeks of acquiring the property from his daughter and wife leased it out on rent.

Daughters are known to be benevolent especially and love to shower their father with a lot of gifts. Hence, no wonder Shraddha gifted her share of 40.92 sq Mts in the prime Juhu property to her father.

The property was jointly owned by Shraddha Kapoor and her mother Shivangi Kapoor. Interestingly unlike Shraddha her mother Shivangi decided to sell her 50 per cent share to Shakti Kapoor. Shivangi sold her share of 40.92 sq Mts to Shakti for a price of Rs 1.30 crore.

The stamp duty on the registration document between Shraddha Kapoor and Shakti came up to Rs 5.14 lakh, while it was Rs 7.80 lakh for the document signed between Shivangi and Shakti Kapoor.

The flat which, Shraddha gifted her father is located on the first floor of the building. Shakti Kapoor leased the property to a High street travel wear company’s proprietor, who paid a deposit of Rs 3 lakh.

On the work front Shraddha Kapoor will be seen with Varun Dhawan in Street Dancer 3D, which releases on January 24, her upcoming movies her Baaghi 3 and Stree 2.

The post Exclusive: Shraddha Kapoor Gifts Father Shakti Kapoor Her Share In Juhu Property. appeared first on Square Feat India.

By Varun Singh

A report launched by Knight Frank India shows that the Mumbai Metropolitan Region’s residential marker has taken a hit when it comes to sales. The sales in the year 2019 according to the report were down by 5%.

Knight Frank India today launched the 12th edition of its flagship half-yearly report – India Real Estate: H2 2019 – which presents a comprehensive analysis of the residential and office market performance across eight major cities for the July-December 2019 (H2 2019) period.

 The report showed that the number of homes launched in Mumbai increased by 7% YoY to 79,810 units in 2019 but recorded a 6% YoY decline to 35,988 units in H2 2019. While the number of homes sold fell by 5% YoY to 60,943 units during the calendar year 2019, a more pronounced 14% YoY decline to 27,212 units was registered in the second half of the year (H2 2019).

Affordable houses continued to dominate launches in MMR with 61% of the new launches in H2 2019 coming in the sub-INR 7.5 million (INR 75 lakh) category.

Thane market recorded the highest growth (36% YoY) of new launches in H2 2019 on account of many mega launches by some of the top developers of the city.

Residential real estate in MMR faced a difficult year with sales declining by 14% YoY in H2 2019 and by 5% YoY in 2019. The annual sales in 2019 came close to the lowest sales of this decade which was recorded in 2016, the year of demonetisation.

 While sales have declined across micro-markets in H2 2019, the extent of decline was lower in the affordable and mid-segment markets of Peripheral Suburbs and Thane.

The ongoing economic slowdown, national and state elections in 2019, and the prolonged NBFC crisis have had their share of impact on consumer sentiments and affected the demand for real estate.

Weighted average home prices in MMR continued to correct in 2019, although marginally, by 2% YoY to INR 7,014 per sq ft. The prices have corrected by 14% from the peak of H2 2016.

Apart from reduction in base prices, several freebies such as no-floor rise, two-year free maintenance, free clubhouse membership, various subvention plans, GST waivers, assured two-year rental schemes and a host of other indirect discounts continue to remain in the market.

The actual discount offered during the transaction would also be higher as developers are more than happy to negotiate on the pricing in order to ensure that the deal is closed.

 Quarters-To-Sell (QTS) for the MMR market went up from 8 quarters in H2 2018 to 9.3 quarters in H2 2019 due to slower sales velocity in this period.

 MMR had the highest quantum of unsold inventory in India at 145,301 units, registering a 15% growth over 2018.

Gulam Zia, Executive Director– Valuation & Advisory, Retail & Hospitality, Knight Frank India, said, “The Indian economy has faced a challenging year in 2019 with the GDP growth rate slowing down and the resultant impact being witnessed across several industries. The residential sector in Mumbai was also impacted by the general slowdown as well as the continued effects of the credit crunch and NBFC crisis which has impacted end-user sentiments with sales declining by 14% YoY in H2 2019. We hope that the series of reforms that the government is undertaking would augur well for the revival of the economy as well as real estate sector.”

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By Varun Singh

The coworking segment continued to grow and established itself as a buzzing real estate segment in 2019. Top 7 coworking players alone have more than 350 centres across India – no. set to double or treble in next 2 years.

“With hip working spaces high on technology, experience and sociability, coworking is no longer just the go-to option for new-age start-ups and entrepreneurs – it has now expanded its reach to mainstream corporates, as well,” says Anuj Puri, Chairman, Anarock Property Consultants.

Major coworking players increased their footprint across the country, institutional funding kept the momentum going. 2019 also witnessed a growing wave of consolidation in the sector, in the form of mergers and acquisitions.

Puri says, “Despite the WeWork debacle in US dominating headlines and raising questions about the future of the coworking business, the segment has emerged as a viable asset class for landlords and operators in India. The coworking market has grown by leaps and bounds and is a significant factor in the strategy for occupiers.”

Millennials & Start-ups to Drive Demand

Millennials are set to form 50% of the global workforce by 2020. This segment has been at the core of the coworking story in India and will continue to drive demand.

India happens to be the world’s youngest start-up nation with >70% founders less than 35 years of age. According to NASSCOM, the end of 2020 will see India have more than 10,500 start-ups, ranking third behind US and UK. As cities like Bengaluru, Gurugram, Pune and Hyderabad witness the rise of the entrepreneurial wave, the demand for coworking spaces is only set to grow in the coming years.

Coworking is no longer driven solely by start-ups, millennials and SMEs – it now caters to mainstream corporates and large enterprises as well (global tech-giant Google leased office space with coworking operator Simpli Work in Gurugram to expand its operations). Even banks and telecom companies are keen on their teams to operate away from headquarters and closer to entrepreneurs.

In 2020, more large companies will opt for flexible coworking spaces for their short-term expansion plans. Supply has been growing with demand – towards 2018-end, the total supply of flexible workspaces was anywhere between 7 – 7.5 mn sq. ft. area – and crossed 12 mn sq. ft. by the end of 2019.

Large Players to Expand Footprint

The Indian coworking segment is currently populated by players of varying size and scale. There are currently more than 200 players operating across the country. The top 7 players in this space alone have more than 350 centres across multiple cities in the country. These players include Cowrks, WeWork India, Awfis, Regus, Smartworks, 91springboard and OYO’s Workspaces. This number is likely to double or even treble in the next two years, given the rate at which these leading players actively leased spaces across major cities in 2019.

The coworking sector has also witnessed the entry of major realty players. Bengaluru-based developer Brigade Group ventured into the coworking segment with the launch of ‘BuzzWorks’. Hospitality player Roseate Hotels and Resorts has also forayed into this space by opening its first coworking centre at its hotel ‘Roseate House’ in Delhi’s Aero City.

Even as US-based WeWork’s failed IPO raised doubts about the company’s future, WeWork India’s expansion remained on course. Owned by realty firm Embassy Group, the company has been mainly funded by Embassy so far and pays a management fee to the parent company. With 37 operational coworking centres, the company is currently present in Bengaluru, Mumbai, Gurugram, Pune, Noida and Hyderabad.

Funding Set to Grow

Coworking spaces are fundamentally capital-intensive and revolve around multiple variables such as design, technology, and customer service. For a business that thrives on economies of scale, the backing of institutional capital can be the crucial differentiator. Institutional funding to the coworking space has gradually evolved and grown. While in 2017, most of the deals were driven by angel investors and only a few PE players, 2018 saw the maximum deals driven by large PE players and venture capitalists. This trend continued in 2019, which witnessed strong investor confidence in India’s co-working story with three major deals being inked: 

• PE firm ChrysCapital invested USD 30 million in leading player Awfis.
• SmartOwner, a real estate investment fund has put in USD 4.28 mn in Workspace.
• BlackRock & CLSA Capital Partner have invested USD 53 million in GoWork.

PE funds and institutional investors will continue to back bigger players in 2020, allowing them to scale up, expand and offer a standardised experience to customers at more economical prices.

Consolidation

Coworking spaces come in all sizes and variants (even a basement office with about a dozen seats technically qualifies as a coworking space) but not every coworking business is profitable. The success of the business model hinges on the operator’s capacity to scale up, and not every company may have the financial bandwidth or resources to do that. Survival in such a competitive environment will be a challenge for smaller players, and we will see more mergers and acquisitions in 2020.

The consolidation wave had already begunin 2018, with major acquisitions like One Co.Work acquiring IShareSpace and AltF CoWorking acquiring Noida-based Daftar India. The trend continued in 2019 with Oyo taking over Innov8 for INR 220 Cr. In 2020, we will see smaller or city-specific operators merge with national players looking to enter or establish themselves in tier 2 & 3 markets.

Outlook 2020

There’s no doubt that coworking creates an inventive and stimulating work environment, but it also comes with certain risks and conditions. Such a shared format may not be suitable for companies dealing with high volumes of confidential data. It is up to operators to take steps to minimise such risks and scale up cyber security within shared working spaces. The shared work culture also translates into loss of privacy – a major concern for several companies.

To truly realise their potential and grow at a fast clip, coworking players must innovate and re-strategize their business models. The current lease-based structure does not offer much flexibility and cost efficiency. 2020 is likely to see the rise of ownership model developed in partnership with landowners, developers or the space providers. This arrangement will create built-to-suit spaces that are customised as per the tenant’s needs.

There’s no doubt about the scope of coworking sector and its potential for growth in India, but it will take a few more years for co-working to become India’s most-preferred work ecosystem.

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