Housing sales in 30 tier II cities drop 13% to 41,871 units: Jul-Sep
New Delhi, Housing sales across 30 major tier-II cities fell 13 per cent to 41,871 units during JulySeptember period on higher base effect and drop in new supply, according to PropEquity.
Data analytic firm PropEquity, which is part of listed entity P E Analytics Ltd, on Monday released the housing report of top 30 tier II cities.
Sales in top 30 tier-II cities have fallen by 13 per cent in July-September quarter of 2024 while new launches have declined by 34 percent. Housing sales fell to 41,871 units in the third quarter of 2024 calendar year as against 47,985 units in the same period last year.
Launches (new supply) fell to 28,980 units in July-September quarter of 2024 from 43,748 units in the same period last year. The west zone comprising Ahmedabad, Vadodara, Gandhinagar, Surat, Goa, Nashik and Nagpur, contributed 72 per cent to the total sales.
Commenting on the data, Samir Jasuja, CEO & Founder, PropEquity said, “The decline in sales and launches is on account of higher base effect as year 2023 had recorded historic highs.
Real estate institutional investment rises 31% to $4.61B Jan-Sep
New Delhi:Institutional investments in the Indian real estate sector increased 31 per cent year-on-year to USD 4.61 billion in January-September 2024 amid strong consumer demand, according to Vestian.
Real estate consultant Vestian on Monday released its report on ‘Investment in Indian Real Estate’, observing that funds’ inflow from institutional investors in the first nine months of 2024 has already surpassed the total for 2023.
During the latest July-September quarter, institutional investments in real estate rose 41 per cent to USD 960.8 million from USD 679.9 million in the year-ago period.
Finance
Paytm aims for profitability, plans aggressive UPI customer push
After registering profit powered by one-time gains, Paytm has now drawn a plan to drive growth and profitability in the business with certain major focus area including revival of its customer base, following action by the Reserve Bank of India earlier this year.
The company plans to adopt a compliance-first approach across its businesses after the RBI barred Paytm Payments Bank (PPBL) from onboarding new customers owing to non-compliance with banking regulations and supervisory issues.
Indel Money launches NCD issue, offering up to ₹150 crore
Gold loan NBFC Indel Money on Sunday announced the fifth public issue of secured NCDs of the face value of Rs 1,000 each. The issue opens on October 21, 2024, and closes on November 04, 2024.The issue includes a base issue size for an amount of up to Rs 75 crore with an option to retain oversubscription up to Rs 75 crore aggregating up to Rs 150 crore. The coupon yields up to 13.44% per annum with tenure ranging from 366 days to 66 months. The minimum application size is Rs 10,000 across all series of NCDs. The funds raised through this issue will be used for onward lending, financing, repayment/ prepayment of principal and interest on borrowings of the company (at least 75%) and general corporate purposes (maximum of up to 25%).
HDFC Bank shares rise 3% on Q2 beat, IPO approval: Buy, sell?
Shares of HDFC Bank on Monday jumped 3% to Rs 1,734 on BSE after India’s largest private sector lender reported steady performance in Q2 with PAT growth of 5.3% year-on-year (YoY) beating Street estimates. HDFC Bank’s board approval to launch the IPO of its NBFC subsidiary – HDB Financial Services – to the tune of Rs 12,500 crore (including OFS of Rs 10,000 crore) to meet regulatory guidelines will also unlock value for shareholders.
Global brokerage firm Goldman Sachs has retained a ‘buy’ call on the stock with a target price of Rs 2,156 citing in-line core operating profits and a slight beat on PAT in its Q2 with strong quality and better visibility of earnings.
Stocks to watch: Zomato, Paytm, Bajaj Finance, Ola, Eicher
Domestic markets experienced volatility and ended nearly flat, primarily in response to mixed earnings reports.
In today’s trade, shares of Zomato, Paytm, Bajaj Finance, Ola Electric, Eicher Motors among others will be in focus due to various news developments and second quarter results.
Shares of Bajaj Finance, Adani Green, Zomato, Paytm, Adani Energy Solutions, Varun Beverages and ICICI Pru Life will be in focus ahead of the second quarter results today.
Epigral has launched a qualified institutional placement on Monday. The company has fixed a floor price at Rs 2,203.29 per share.
Disclaimer: The information in this newsletter has been compiled from various public domain sources and is presented as asummary for general informational purposes. Our research team verifies all content, but we do not claim originality of the research or images included.
International news
International mutual funds top returns with up to 3% last week.
ICICI Pru Strategic Metal and Energy Equity FoF, an international fund, led the returns with approximately 3.29% last week. Following closely, PGIM India Global Select Real Estate Securities FoF delivered a return of 2.13%. Edelweiss ASEAN Equity Off-Shore Fund provided a return of 1.35%, while Invesco India – Invesco Global Equity Income FoF generated 1.02%. Lastly, DSP World Mining FoF recorded a return of 0.89% in the same period.
In September, mutual funds had a cash balance of ₹1.86 lakh crore, or 5.02% of total Assets Under Management (AUM). Six mutual funds held over ₹10,000 crore in cash, with ICICI Prudential Mutual Fund leading at ₹31,976 crore (7.85% of its AUM). SBI Mutual Fund, the largest by assets, had ₹27,126 crore in cash, making up 3.71% of its AUM.
The fund house held ₹23,701 crore in cash, accounting for 6.22% of its total Assets Under Management (AUM). Another fund house maintained ₹5,673 crore in cash, which constituted 18.06% of its total AUM. Additionally, Quant Mutual Fund reported a cash portfolio of ₹12,614 crore, representing 13.74% of its total AUM.
Fidelity International to slash around five hundred jobs in China
Fidelity International (FIL) will cut around 500 jobs at one of its Chinese operations, two people with knowledge of the matter said, marking the largest downsizing in recent years of a global financial firm in the world’s second largest economy. UK-headquartered FIL told staff about the job cuts at one of its tech and operation centres located in China’s northern city of Dalian on Monday, according to the people, who declined to be named as they were not authorised to speak to the media.
Norwegian bank DNB to buy Sweden’s Carnegie from Altor for $1.14 bn
Norway’s largest bank DNB has agreed to buy Swedish investment bank and asset manager Carnegie from private equity firm Altor and minority owners for around 12 billion Swedish crowns ($1.14 billion), it said on Monday.
The acquisition is set to enhance DNB’s presence in the Nordic region and increase its fee-based income, Chief Financial Officer Ida Lerner told Reuters.
Trump inspects North Carolina post hurricane, criticises FEMA
Former President Donald Trump recently attacked federal emergency workers during his inspection of Hurricane Helene’s damage in North Carolina. This criticism comes amid challenges faced by the workers, including harassment and misinformation.
Trump dismissed concerns about the hurricane impacting North Carolina’s upcoming election results. He addressed questions about his comments on the Federal Emergency Management Agency (FEMA), defending his criticism despite threats from armed militias causing FEMA to pause their work.
Delhi NCR analysis
Office Market
The office market in Delhi NCR has shown significant resilience, driven by the region’s economic growth and increasing demand for flexible workspace solutions. As companies adapt to hybrid work models, there is a notable rise in the demand for Grade A office spaces equipped with modern amenities.
Key areas like Gurugram, Noida, and the Delhi CBD have witnessed new developments and a gradual increase in rental rates. The influx of multinational corporations and tech firms continues to bolster the market, with a focus on sustainability and smart building technologies gaining prominence.
Retail Market
The retail market in Delhi NCR has rebounded significantly as consumer confidence returns postpandemic. Major shopping malls and high-street retail areas are experiencing increased footfall, with a diverse mix of domestic and international brands establishing their presence.
The growth of e-commerce has prompted traditional retailers to enhance their omnichannel strategies, seamlessly integrating online and offline shopping experiences. New retail formats, such as experience centers and pop-up stores, are also gaining traction, offering unique shopping experiences.
Seasonal festivities and promotional activities have further boosted retail sales, making Delhi NCR a vibrant hub for retail activities. Government initiatives aimed at supporting the retail sector, along with a growing emphasis on sustainability, are positioning the region as a dynamic landscape for retail growth and innovation. As the market continues to evolve, the focus on sustainability and local sourcing is becoming increasingly important, positioning Delhi NCR as a dynamic landscape for retail innovation and growth.
Residential Market
The residential market in Delhi NCR is witnessing a steady recovery, fueled by demand for affordable housing and improved infrastructure. Recent data indicates that property prices have stabilized, attracting both first-time buyers and investors. Various government initiatives, such as the Pradhan Mantri Awas Yojana (PMAY), aimed at boosting home ownership, have contributed to a noticeable uptick in buyer sentiment.
Areas like Gurugram and Noida are gaining popularity for their emerging residential projects, offering a mix of luxury and budget-friendly options. Furthermore, the trend of buying larger homes, influenced by remote working arrangements, has led to a surge in demand for spacious apartments and villas.
According to recent reports, the sales volume in the residential segment has seen a year-on-year increase, reflecting a growing confidence among homebuyers. Additionally, the rise of integrated townships and smart city initiatives is enhancing the appeal of suburban locations, indicating a positive outlook for the residential sector in the coming years.
Overall Market Overview
The Delhi NCR real estate market is witnessing growth across office, retail, and residential sectors. The office market shows resilience with rising demand for flexible workspaces in Gurugram and Noida. Retail has rebounded postpandemic, attracting more foot traffic as brands adopt omnichannel strategies. The residential market is recovering, driven by demand for affordable housing and government initiatives like the Pradhan Mantri Awas Yojana (PMAY). Overall, the market is poised for continued growth, supported by evolving consumer preferences and sustainable development.
New Listings
Commercial properties For Sale
JMD Megapolis, Sector 48, Gurugram 2970 Sqft || Price ₹11,500 Per sqft
INDEPENDENT BUILDING, SECTOR-32 60,000 Sqft || ₹ 65 Crore
Time Tower, M.G Road, GURUGRAM 2,500 Sqft || ₹ 25,000 Per
Residential properties For Sale
Safdargunj Enclave, NewDelhi 500 Sqyds || Price ₹16 Crs
Hauz Khas Enclave, NewDelhi 1.215 Sqyds || Price ₹33 Crs
Vasant Vihar, New Delhi 600 Sqyds || Price ₹21Crs
Commercial properties For Rent
Himalaya House, C.P 2,300 Sqft || ₹ 200 per Sqft.
TDI Centre, Jasola District Centre 15,000 Sqft || ₹ 90 Per Sqft
Eros Corporate Tower, Nehru Place 6,000 Sqft || ₹ 250 Per Sqft
Residential properties For Rent
Green Park, Independent Kothi 340 Sqyds || ₹ 5 lakhs Per month
Chanakyapuri, Independent Kothi 375 Sqyds || ₹18 Lakhs Per month
Kautilya Marg, Chanakyapuri 2,000 Sqft || ₹ 2.5 Lakhs Per Month
Pre-rented properties
Retail
Lemon Tree Corporate Park 8250 Sqft || ₹ 30,000 Per sqft
Ocus Medley Sector 99, Gurgaon 2,000 Sqft || ₹ 35,000 Sqft
DLF South Court, Saket 4,400 Sqft || Rent ₹180 Per sqft
Commercial
SOHNA ROAD, GURUGRAM 10,000 Sqft || ₹ 2.36 Crs
Golf Course Extension Road, Gurugram 1,465.26 Sqft || 1.96 Crs
Independent Building – Sector 44, Gurugram 22,000 Sqft || ₹ 34 Crs
NH-8, Gurugram 15,000 Sqft || ₹ 21.13 Crs
Sector 39, Gurugram 8,000 Sqft || ₹ 8.96 Crs