Abhishek Kiran Gupta, Author at CRE Matrix Blog

January 18, 2024January 18, 2024

Commercial Real Estate Predictions for 2024

Explore the future of commercial real estate in India through our blog, where we delve into the surge of green leasing, the dynamic world of flex spaces, and key market insights for 2024.

The Rise of Green Leasing

What is Green Leasing: Green leasing involves renting or leasing commercial spaces in buildings that adhere to environmentally friendly and sustainable practices. These buildings are designed to minimize their impact on the environment through energy efficiency, waste reduction, and the use of eco-friendly materials.

In 2024, we foresee a remarkable surge in green leasing, a well-established preference among market clients. Historically, green leases accounted for approximately 15% of total leasing, but this figure is set to soar beyond 25%.

The allure of green buildings is undeniable, prompting landlords to position them as a key differentiator.

Premium Rentals: Green buildings will command a premium rental, with the gap between green and non-green leases widening to 15% in 2024. This underlines the growing emphasis on sustainable practices in the commercial real estate sector.

Flex Leasing

What is Flex Leasing: Flex leasing is a dynamic approach to office spaces that allows businesses to rent flexible and customizable workspaces. These spaces are designed to provide a versatile and adaptive environment, allowing companies to scale their office space based on their needs.

The contribution of flex leasing to total leasing in India is poised to rise from 11% in 2023 to an impressive 15% in 2024.

Major occupiers are expected to explore flex spaces, driven by the need for enhanced flexibility, a better work experience for employees, and increased convenience.

Supply and Demand Insights

Looking at the supply and demand game, Pune and Hyderabad are set to supply 60% of new offices in the next three years.

Why Does This Matter?: It opens the door for cities like Pune, Noida, and Navi Mumbai to offer more affordable options for businesses who aren’t fixed on being in the South.

Hotspots: The Macro Markets of 2024

The pulse of office leasing in India will resonate in five macro markets:

Gachibowli & High-tech City (Hyderabad)
Noida (NCR)
Navi Mumbai (Mumbai Region)
Nagar Road Kharadi (Pune)
Outer Ring Road (Bangalore)

These markets are destined to play a pivotal role in defining the trajectory of office leasing in the country in 2024. Subscribe to CRE Matrix for more in-depth Real Estate Data Analytics.

January 16, 2024January 17, 2024

Chintels India gives rights to Sobha Group for two land parcels for Rs 121.82 crore near Dwarka Expressway

The transaction is the most recent in a series of important land deals in the NCR. The sale transaction was executed on December 22, 2023, and the company paid stamp duty of Rs 6.07 crore for the 5.78-acre plot and Rs 2.45 crore for the 2.06-acre property piece, according to documents.

Chintels India, a Gurugram-based real estate developer, has transferred ownership of two land parcels valued at Rs 121.82 crore and covering a total area of 7.85 acres to listed real estate developer Sobha Ltd in Gurugram, according to documents accessed by CRE Matrix.

Both developers stated that the land parcels were part of their joint venture project, ‘International City’.

According to the documents, one land piece, totaling 5.788 acres, is in sector 108, and the second plot, measuring 2.06 acres, is in sector 109. Both properties are in Babupur village, close the Dwarka Expressway, which is expected to be operational soon.

According to the records, the 5.7-acre land costs Rs 86.82 crore, while the 2.06-acre plot is worth Rs 35 crore. The total worth of both plots was Rs 121.82 crore.

The conveyance deed was executed on December 22, with Sobha Ltd paying a total stamp duty of Rs 8.53 crore for both plots, according to the documents. The company paid stamp duty of Rs 6.07 crore for the 5.78-acre property and Rs 2.45 crore for the 2.06-acre land parcel.

Chintels India was embroiled in controversy after six floors of Tower D in the Chintels Paradiso housing complex in Sector 109, Gurugram, collapsed in February 2022, killing two ladies. Following the incident, a structural safety audit of the housing complex determined that five of Chintels Paradiso society’s nine buildings were “unsafe to live” in.

According to a representative for Chintels India, the 5.7-acre site is the commercial portion of the leased land known as ‘International City’, and it is entirely allocated to Sobha under our existing JD Agreement. Ownership was transferred to Sobha in December 2023, and we received no consideration because it was always part of Sobha’s allocation. The 2.06 acres are the clubhouse of International City, which was originally assigned to Chintels but has since been transferred to Sobha.”

“These transactions are both old and part of our existing JDA for International City and the conveyance has taken place recently post fulfillment of mutual obligations,” stated a representative for the company.

Similarly, a spokeswoman for Sobha Ltd stated that the transaction is part of an old payment of a continuing partnership account, which culminated in the registration of specific land in ‘International City’.

According to experts, the anticipated opening of the 26.7 km Dwarka Expressway, which connects Dwarka in New Delhi to the Kherki Dhaula toll plaza on NH-48 in Gurugram, has made this area one of the most sought-after micro markets in the National Capital Region, with several new projects emerging in recent years.

The land transaction is the latest in a string of major deals in the NCR. Countrywide Promoters, a subsidiary of developer BPTP Group paid Rs 87.27 crore in November for a 5.24-acre land in Gurugram’s Sector 113, near the Dwarka Expressway.
Last September, Aamor Inox, a stainless steel bar maker, paid Rs 87.5 crore for 12 bighas of farmland and a farmhouse from Mastcraft Properties in Rangpuri, South Delhi.

January 15, 2024January 15, 2024

Bhuvan Bam bought a bungalow for Rs 11 crore

The sale deed was signed in Bam’s name on August 7, 2023. Bam paid a stamp duty of Rs 77 lakh on the transaction.

According to documents accessed by CRE Matrix, Bhuvan Bam, a YouTuber, comedian and actor purchased a property in South Delhi’s Greater Kailash Part 3 region for Rs 11 crore.

The sale deed was signed in Bam’s name on August 7, 2023. Bam paid a stamp duty of Rs 77 lakh on the transaction. The documents have only recently become available.

According to the documents, Bam purchased a Bungalow that measures 207.41 square meters (2,233 square feet). The home is situated on a 180 square meter plot in Greater Kailash 3, a premium suburb in South Delhi.

According to the records, the property is worth around Rs 4.78 crore based on the circle rate.

Big-ticket deals.

This is the most recent in a series of high-value real estate deals in the Delhi-NCR region. In October 2023, an 11,000 sq ft flat at The Camellias by DLF on Gurgaon’s Golf Course Road was resold for more than Rs 100 crore.

In the same month, MakeMyTrip group CEO Rajesh Magow paid Rs 33 crore for a 6,428 sq ft apartment at DLF Magnolias in Gurugram, while Genpact chief human resources officer Piyush Mehta paid Rs 32.60 crore for a 6,462 sq ft unit in the same complex.

Similarly, Vasudha Rohatgi, wife of former Attorney General of India Mukul Rohatgi, paid Rs 160 crore in February 2023 for a 2,100 square yard (18,900 square foot) villa in Delhi’s posh Golf Links.

Peyush Bansal, the co-founder of Lenskart, paid Rs 18 crore for a house in Neeti Bagh, an affluent neighbourhood in May 2023.

In February 2023, Bhanu Chopra, the creator of RateGain, paid Rs 127.5 crore for a bungalow in Golf Links.

If you are a developer or broker, you can empower your decision-making with data-driven insights through CRE Matrix. You can get details such as the entire tenure, tenant names, expiry dates, lock-in expiry dates, CAM charges, deposits, and more for any real estate asset in India. Book a demo at CRE Matrix to unlock the full potential of real estate data.

January 4, 2024January 4, 2024

BPTP Group’s Countrywide Promoters Secures 5.24 Acre Plot

With the upcoming completion of the 26.7 kilometer Dwarka Expressway, the surrounding neighborhood has become one of the most sought-after micro markets in the National Capital Region.

According to documents accessed by CRE Matrix, Countrywide Promoters, a subsidiary of developer BPTP Group, paid Rs 87.27 crore for a 5.24-acre plot in Gurugram near the Dwarka Expressway.

The sale deed was executed on November 16, 2023, and the company paid a stamp duty of Rs 6.11 crore for the deal.

According to the records, the land was purchased from Vikram Rana and Paramjeet Rana of Bijwasan village in New Delhi. The site is located in Chauma village in Gurugram’s Sector 113, close to the Dwarka Expressway, which is expected to open soon.

The opening of the 26.7 km Dwarka Expressway, connecting Dwarka in New Delhi to the Kherki Dhaula toll plaza in Gurugram, has made this area a hotspot in the National Capital Region. Many new projects have sprung up in recent years because the improved connectivity has made it a popular choice for real estate development and investment.

This is the latest in a string of major transactions in the NCR. Aamor Inox paid Rs 87.5 crore to Mastcraft Properties in South Delhi’s Rangpuri in September 2023 for 12 bighas of farmland and a home.

Also that month, Laxmi Devi Agarwal, the wife of Devkinandan Agarwal, the proprietor of GR Infraprojects, paid Rs 86 crore for a 1,200 square-yard bungalow in Vasant Vihar, a prominent Delhi locality.

In February 2023, a 2,160-square-foot bungalow in Delhi’s affluent Golf Links neighborhood was purchased for Rs 160 crore in the name of Vasudha Rohatgi, wife of former Attorney General of India Mukul Rohatgi.
Elevate your decisions in real estate as a developer or broker with CRE Matrix‘s data-driven insights. Book a demo now.

December 12, 2023December 12, 2023

Air India Secures 6.2 Lakh Sq Ft in Gurugram: 21-Year Lease at ₹90 Cr/Year

After being acquired by the Tata Group in January 2022, the airline now occupies blocks B, C, and E, which together cover 3.61 lakh square feet.

Blocks in E-Novation Centre, Sector 75, Gurugram, have been leased by Innovative Techno Park Pvt Ltd to Air India.

According to documents accessed by CRE Matrix, Air India has signed a lease deal to occupy commercial space spanning 6.2 lakh sq ft in Gurgaon, Sector 75, at an annual rent

of around ₹90 crore for 21 years.

The airline, which was acquired by the Tata Group in January 2022, has leased blocks B, C, and E at E-Novation Centre, Sector 75, Gurugram, from Innovative Techno Park Pvt Ltd for an average rent of ₹2.40 crore per month and ₹43.29 crore annually. The blocks span an area of 3.61 lakh square feet.

A ₹14.40 crore security deposit is included in the rent, which starts at ₹2.40 lakh per month. According to the records, the transaction involved the payment of ₹3.89 crore in stamp duty.

On October 18, the lease deed was registered.

Additionally, the airline has leased a space of 2.66 lakh square feet for ₹2.85 crore per month and ₹48.04 crore annually. it has paid a ₹17.10 crore security deposit for the transaction. On October 18, 2023, the lease was recorded, and ₹4.32 crore in stamp duty was paid.

The land has – 450 parking spaces.

According to the records, there is a 4 percent rent escalation clause in the agreement at the end of each year.

An earlier arrangement was inked by Air India Ltd to commercially lease Vatika One on One in Gurugram Sector 16 for five years at an annual rate of ₹24.05 crore, spanning seven floors and 1.80 lakh square feet.

Elevate your decisions in real estate as a developer or broker with CRE Matrix‘s data-driven insights. Book a demo now.

December 8, 2023

HCC sells a land parcel near Mumbai for Rs 95 crore

According to documents obtained by CRE Matrix, the HCC board of directors voted on November 9 to sell the land as part of the asset monetisation of debt resolution.

Infrastructure behemoth Hindustan Construction Company (HCC) sold a 2.35 lakh sq mtr land block in Panvel near Mumbai to Oak & Stone Construction Pvt Ltd for Rs 95 crore, according to registration documents accessed by CRE Matrix.

The property is in Karnala village, Panvel, Raigad district. The transaction cost Rs 5.70 crore in stamp duty and was recorded on December 4, according to the records.

The Board of HCC passed a resolution on November 9 to sell the land as part of the debt resolution plan’s asset monetisation.

In another major land deal in October, Bombay Dyeing and Manufacturing Company Limited (BDMC) finalized a significant land deal. BDMC signed the conveyance deed with Goisu Realty Private Limited, a subsidiary of Sumitomo Realty & Development Company Limited. As part of the deal, BDMC received Rs 4,675 crore for the sale of a 22-acre land parcel in the Worli area of Mumbai, including the associated Floor Space Index (FSI).

Elevate your decisions in real estate as a developer or broker with CRE Matrix‘s data-driven insights. Book a demo now.

November 30, 2023November 30, 2023

Tata AutoComp Systems sells more than 13 acres in Pune

Titania Industrial Development in Pune purchased a 13.26-acre plot of land and a 1 lakh-square-foot Structure from Tata Autocomp Systems for Rs 134 crore. Pune’s real estate is thriving, thanks to industrial growth.

The transaction was registered on 27/10/ 2023

According to documents accessed by CRE Matrix, Tata Autocomp Systems Ltd sold Titania Industrial Development in Maan, Pune, a land block covering more than 13.26 acres as well as the structure standing on it, measuring 1 lakh sq ft, for Rs 134 crore.

“In recent years, Pune real estate has been on a roll.” In the preceding two years, the city has experienced a rise in property sales as well as a few business lease arrangements, including one with Tesla. The PCMC district in Pune has attracted industrial occupants for manufacturing and warehousing. Hinjewadi is home to major IT/ITeS brands, hotels, manufacturing, and housing developments. “It’s no surprise that the transaction took place in Pune’s growth corridor, Hinjewadi,” said Abhishek Kiran Gupta, CEO and co-founder of CRE Matrix and IndexTap.

India’s office net absorption reached 10.37 million square feet in Q3, the highest level in 18 months. The industrial sector dominated gross leasing activity in the third quarter, while technology firms remained marginally limited. Except for Chennai and Kolkata, the top seven cities saw stronger net absorption of office space during the quarter. Hyderabad took first place with a 26.1 percent share, followed by Bengaluru (22.9%) and Delhi-NCR (16.4%).

If you are a developer or broker, CRE Matrix can help you make better decisions by providing data-driven insights. For any real estate asset in India, you can obtain information such as tenant names, expiry dates, lock-in expiry dates, CAM costs, deposits, and more. Schedule a demo with CRE Matrix to realize the full potential of real estate data.

November 29, 2023November 29, 2023

Aamor Inox purchases a South Delhi property from Mastcraft Properties for Rs 87.5 crore

Located in South Delhi’s Rangpuri area, the homestand is comprised of twelve bighas of agricultural land and a farmhouse. This is the latest of numerous large-scale real estate deals that Delhi has seen this year.

Stainless steel bar manufacturer Aamor Inox Limited paid Mastcraft Properties Private Limited Rs 87.5 crore for 12 bighas of farmland and a farmhouse in Rangpuri, South Delhi. according to the documents obtained by CRE Matrix.

The sale deed was signed on September 27 under Aamor Inox Limited’s name. Based on the evidence, the corporation had to pay a stamp duty of Rs 6.12 crore for the transaction.

The farmland is located in the Malikpur Kohi, or Rangpuri, hamlet of South Delhi. Neither the buyer nor the vendor immediately replied to queries from Moneycontrol.

Delhi has closed a number of notable agreements this year, this being the most recent. In September, Laxmi Devi Agarwal, the spouse of Devkinandan Agarwal, the promoter of GR Infraprojects Limited, spent Rs 86 crore for a 1,200 square yard villa in the upscale Vasant Vihar suburb of Delhi.

An 873-square-yard mansion in Delhi’s affluent Nizamuddin East area was bought by Renu Khuller, director of Global Dent Aids, a company that manufactures interdental brushes, which are comparable to floss alternatives, for Rs 61.70 crore in August.

Lenskart co-founder Peyush Bansal paid Rs 18 crore for a house in Neeti Bagh in May, while former Indian Attorney General Mukul Rohatgi’s wife Vasudha Rohatgi spent Rs 160 crore in March for a 2,160-square-foot home in Delhi’s affluent Golf Links neighborhood.

September 30, 2023October 13, 2023

4 steps to follow to score a great commercial real estate deal

Investing in commercial real estate can prove to be more beneficial when compared to residential properties. Commercial property owners enjoy the extra cash flow, the valuable economies of scale, the comparatively open playing field, the abundant market for good, reasonably-priced property managers, and the chance for a possibly larger payoff from commercial real estate.

But how do you assess the best properties? And how do the great deals differ from the duds?

Understand What the Insiders Know

To be a participant in commercial real estate, learn to think like a professional. For instance, understand that commercial property is estimated differently when compared to residential property. Income generated on commercial real estate is directly linked to its usable square footage. That’s not the case when it comes to individual houses. When it comes to real estate investment, commercial properties offer a bigger cash flow. Moreover, commercial property leases are longer when compared to single-family residences. This generally paves the way for larger cash flow.

Learn to Detect a Good Deal

The leading real estate experts recognize a great deal when they see one. How do they do that? First, they come up with an exit strategy. The finest deals are the ones you know you can move away from. It helps to have the eye of the landowner – always be on the lookout for damage that needs repairs, understand how to evaluate risk and make sure you get the calculator out to guarantee that the property meets your financial objectives.

Chart a plan of Action

One of the primary parameters of real estate investment of commercial properties is to ask yourself how much can you afford to pay and then shop around for mortgages to get an idea of how much you will pay over the life of the mortgage. Using tools such as mortgage calculators can assist you in coming up with great estimates of the sum cost of your home.

Seek Motivated Sellers

Just like any business, customers are majorly responsible for the growth of real estate. Your job is to seek them, specifically those, who are ready and willing to sell below the market value. The fact is nothing happens until you get a deal, which is generally accompanied by a motivated seller. This is someone with a strong reason to sell below the market value. If your seller isn’t motivated enough, they won’t be ready to negotiate.

Use a Three-Pronged Method to Asses Properties

You need to be adaptable when looking for good deals for real estate investment. Scour on the internet, read the classified ads, and hire experts to seek the best properties. Agents can assist you in seeking lucrative real estate investment in exchange for a referral fee.In a nutshell, these are some of the steps to follow to score a great real estate investment. Head over to CRE Matrix to look for great deals in the commercial real estate sector in India.

September 28, 2023October 13, 2023

How to Avoid Signing a Bad Commercial Deal?

When you sign a commercial lease, it is a big step for your business. It is a new opportunity that can help drive your company to a new level. If the process goes well, you’ll have commercial space that saves your capital, accommodates your growth, matches your brands, and much more. However, if you sign a bad commercial lease, you could end up shelling more than required; acquire a bad space, or both for many years.

Fortunately, the mistakes that result in bad commercial real estate decisions can be easy to avert, though. If you follow the below-mentioned steps, you can shield your business and set yourself to sign a great commercial property for lease.

Before you even begin to think about zeroing in on a specific building or a particular commercial space, you need to take a step back and conduct thorough research. You need to find out:

What do you require?
What you are willing to spend?
Where do you wish to be?
Where do you see your business progressing?

To do this, you will need to take a look at what you’re already doing in your current offices or other commercial spaces. Then, gather all the stakeholders together to comprehend their present as well as future requirements. Once you have completed your research, you will be ready to proceed to the subsequent part of the process.

Here are a couple of things to keep in mind to avoid signing a bad commercial lease:

Thoroughly Go Through the Details of Your Lease:

It’s extremely important to read the details of your commercial lease agreement prior to signing it. It is standard advice but is regularly ignored. Before you zero in on any commercial property for lease, it is vital to read your lease thoroughly as leases are complicated lease documents that can impact economics if a single word is misinterpreted.

Evaluate All Expenses

Signing a commercial property for lease shows you a whole array of different expenditures. Your rent and any proposed raise over the life of your lease are most probably significant, but they are the only expenses you will be paying. Pay close attention to the operating expenses of the building and how you will be accountable for them. If you can, try to get a gist of how the building is managed. If repair and maintenance expenses are less, it could signify greater expenses in the future as deferred maintenance causes more than regular repair bills.

Pay Close Attention to the End of the Lease Tenure

Before you select the commercial property for lease, you need to keep certain parameters in mind. One of them is the end of your lease. The ending of the commercial lease is as significant as the beginning. When your lease expires, you will either wish to leave the office space or continue with it. It’s much easier to prepare for both possible outcomes at the start as opposed to start planning when the end is right around the corner. The key to continuing in the same space is to have renewal options drafted into your initial commercial lease agreement.

In a nutshell, the above-mentioned are some of the factors that you need to take into account before you get a commercial property for lease. In this way, you will be able to avoid signing a bad commercial lease that will prove to be disadvantageous for you.

Head over to CRE Matrix to view various commercial leases across industries in India to understand real estate better.