realestate2022

Lodha Developers bets on commercial leased assets for future growth Lodha Developers is shifting its commercial real estate business model to “build and lease” rather than outright sale of properties Lodha Developer’s plan to ramp up its commercial real estate is part of the larger plan to own substantial leased assets in the next five years. After building a sizeable residential portfolio, India’s largest realty firm in terms of sales, Lodha Developers Pvt. Ltd, is looking at commercial real estate for its next level of growth. The firm is planning to build around 9 million sq. ft of office space, 1 million sq. ft of retail space and a warehousing and logistics park in Mumbai on 150 acres with an investment of nearly Rs2,500 crore in the next five years. With these plans, the Mumbai-based real estate firm is also shifting its commercial real estate business model for the first time to “build and lease” rather than outright sale of the properties as it looks to develop a substantial co...

PE inflows in real estate hit a nine-year high in 2016 Private equity investments in real estate inflows in 2016 were seen at their highest in nine years at Rs. 399 billion, registering a 26% increase from Rs. 316.7 billion in 2015 Mumbai saw the highest share of inflow at 32% of the total private equity investments in real estate. Photo: Aniruddha Chowdhury/Mint Private equity investments in the real estate sector increased by 26% during 2016 and touched a nine-year high of nearly Rs40,000 crore, according to property consultant Cushman & Wakefield. Mumbai saw the highest share of inflow at 32% of the total private equity investments in real estate (PERE). “PERE inflows in 2016 were seen at their highest in nine years at Rs399 billion ($5.97 billion), registering a 26% increase from Rs316.7 billion ($4.8 billion) in 2015,” the consultant said in a statement. The number of deals closed during the year also rose only 5% with 119 deals. Average deal size increased to Rs340 crore ($50...

Mutual funds can now invest in REITs, InvITs : Sebi Sebi to make REITs and InvITs more attractive for investors, notifies norms allowing mutual funds to invest their money in such entities The move is part of Sebi’s effort to get more number of investors into REITs and InvITs. Photo: Mint To make real estate and infrastructure investment trusts more attractive for investors, regulator Sebi has notified norms allowing mutual funds to invest their money in such entities. The move comes after Sebi in its board meeting last month permitted mutual funds to invest in real estate investment trusts (REITs) and infrastructure investment trusts (InvITs). A mutual fund is permitted to invest only up to 5% of its net asset value in units of a single issuer of alternative securities. The maximum allowed investment in alternative instruments by a single fund will be capped at 10%. The cap will not be applicable in the case of index fund or sector- or industry-specific scheme. “A mutual fund may inve...

Should you give up on a good property because of imperfect Vastu? To what extent are Vastu Shastra norms important,  if all the other aspects of a property meet the home seeker’s requirements? We look at the Vastu principles and remedies, to help buyers arrive at a decision  Consider this scenario: after a prolonged search, you get an unbelievable offer on a property. However, you find that the property does not conform to Vastu norms. Should you drop the offer? This is a dilemma that many home buyers face. While some home seekers may persist and purchase a flat despite Vastu faults, others may reject it outright. The question is, to what extent should one heed Vastu norms? Vastu Shastra is a ‘science of architecture’ and its principles have been followed in India for centuries. It incorporates many Hindu beliefs and the designs are intended to integrate the functional aspects of structures and geometric patterns, with nature and forces like the sun and wind. “Vastu holds an e...

The end-user’s guide to investing in REITs Real estate investment trusts are intended to enable more people to invest in the Indian property market and boost funding in the sector. How does it work and why haven’t more people flocked to this investment avenue? We examine The Indian real estate sector has been lucrative for savvy investors over the last decade, but it has not been without accompanying uncertainties. The introduction of real estate investment trusts (REITs), will provide a platform that will allow all kinds of investors (even those with smaller budgets) to make safe and rewarding investments in the Indian property market. With REITs, investors can start with as small a sum as Rs 2 lakhs, to secure units in exchange. The REIT platform has already been approved by the Securities and Exchange Board of India (SEBI) and like mutual funds, it will pool the money from all investors across the country. The money collected from the REIT funds, will subsequently be invested in com...

Why Real Estate Is A Safe Bet For Older Investors (Dreamstime) Real Estate as a necessity might have seen a paradigm shift from being a middle-aged proposition to young buyer’s fancy but real estate as an investment continues to be the niche of older investors. Buying a property for end-use remains a priority for young investors who have started earning huge salaries but to be a serial investor, it’s not just the funds which are imperative but the experience and the patience are equally important. Here are a few reasons why real estate investments suit elderly investors. Investors with experience can diversify their portfolio Portfolio diversification in real estate is as important as choosing the right kind of asset for investment. Moreover, there is less risk when an investor forays into different types of the segment. Since there are different kinds of returns in every property segment, deriving returns from these segments can further lower the risk and investor can continue t...