Welcome back to the Weekly News Round Up! Let’s see what’s in the bulletin for this week.
- Indian real estate market is witnessing a slump, so as a result, wealthy Indians are looking to buy property abroad. There was an 11% year-on-year increase in the number of Indian home buyers in prime markets of London in the past 12 months. Besides London, other popular locations for buying properties include New Jersey, Atlanta, Toronto, Melbourne and Sydney.
- Lenders want to ensure that if the projects fail to take off despite, they are funding the assets and the assets have to be monetized to recover dues, their money will have priority status. In other words, the fund is expected to have a priority charge as compared to existing investors.
- Smartworks, India’s leading agile workspace provider for large enterprises has leased 500,000 sq ft space in an upcoming project Amar Pristine Eighty-Three (AP83) in Koregaon Park, Pune with Amar Builders, and Pristine Properties.AP83 is the largest deal in terms of space signed by any co-working space provider in India.
- Indian real estate attracted nearly 1 Lakh Crore (USD 14 billion) of foreign private equity (PE) between 2015 and the third quarter of 2019. Sixty-three percent (approximately USD 8.8 billion) of the total foreign investments backed commercial real estate, and the residential sector attracted just USD 1.5 billion of foreign PE in the same period, trailing even the retail sector which saw cumulative inflows of USD 1.7 billion.
- Projects nearing completion are most impacted by the ban on construction activity in Delhi-NCR. This is likely to lead to a delay of at least two months and an increase in project cost by at least 2 percent to 3 percent. Real estate developers have demanded that there should not be a blanket ban on construction to ensure that projects nearing completion are delivered on time and the projects should be granted relief under the force majeure provision of the Real Estate (Regulation and Development) Act (RERA).
That was all for this week, we’ll be back next week until then, be true to yourself and surround yourself with positive people.