Mr. Aman Sharma, Managing Director of Aarize Group

In the thriving commercial real estate dynamics of Delhi-NCR, Dwarka Expressway has evolved as a hot-button name, catching the attention of both investors and property buyers.

In the growth story of Gurugram’s development, this 29-km-long stretch has set a significant milestone in fueling the economic growth of the region, opening the gateway of opportunities for commercial activities.

Hinging on easier traffic between the national capital and Gurugram, accessibility to IGI Airport, and major business districts around, Dwarka Expressway has become the most sought-after micro-market of the National Capital Region for investment destination and commercial bustling.

After its inauguration by the honorable Prime Minister Narendra Modi, this expressway region heralds a new era of holistic development for the real estate market, creating a dynamic ecosystem for business, commercial operations, logistics hubs, shopping malls, and vibrant office complexes. This remarkable boom has resulted in capital appreciation and upward rental yields, making the area conducive for investments.

Dwarka Expressway has witnessed a surge in demand for commercial activities. The area has become a paradise for partygoers, shopaholics, and commercial operations with the overwhelming presence of malls-retail chains, high-end F&B outlets, shopping arcades, and entertainment zones, among others.

It has perked up the prices of properties, including residential, commercial, and industrial. According to 99 acres, Dwarka Expressway has seen a significant surge of 25 percent with a price hike from Rs 11,100 per sq. ft. to Rs 13, 250 per sq. ft. in the last year.

With Gurugram turning into a business hub, its neighboring areas, including Dwarka Expressway, are also following close to its heels. The Millennium City, according to a Knight Frank report, witnessed an extraordinary soar of 58 percent in office space transactions in 2023, zooming past from 13.2 million square feet in 2022 to a massive 20.8m square feet.

This phenomenal growth highlights the market opportunity of real estate in Gurugram and its surrounding areas. This phenomenal growth highlights the market opportunity of real estate in Gurugram and its surrounding areas.

The key factor behind Dwarka Expressway shaping up India’s next business hub is its strategic location. The proximity to the national capital makes this region a standout choice for professional and commercial activities.

Excellent connectivity through expressway and metro, pleasant environment, and sustainable construction fitted with state-of-the-art technologies have increased its appeal.

Sensing the market potential of these areas, top-notch developers and builders have capitalized on its business dynamics by setting up swanky commercial and expensive office complexes.

The influx of budding startups, multinational office spaces, and modern healthcare centers have propelled the Dwarka Expressway region into an employment and business hub.

The sectors along with Dwarka Expressway encompass commercial, retail, and residential hubs, harboring relatively peaceful neighborhoods with less traffic congestion in comparison with other significant parts of the NCR.

The Dwarka Expressway is heading to a robust hotspot, and it has come a long way in establishing itself as the crown jewel of Delhi-NCR’s real estate, attracting multiple business opportunities and commercial footfalls.

With an emphasis on sustainable development, excellent infrastructure, and strategic location, Dwarka Expressway stands as a strong competitor to established commercial complexes across the country.

It is going to be a game changer in driving the economic growth of the country as the region evolves, constantly positioning itself as a major player globally.

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This increase in outstanding home credit was ascribed by real estate and banking experts to pent-up demand and a robust rebound in the residential real estate market following the COVID outbreak.

The credit outstanding for housing (including priority sector housing) stood at Rs 27,22,720 crore in March 2024, up from Rs 19,88,532 crore in March 2023 and Rs 17,26,697 crore in March 2022, according to data from the Reserve Bank of India (RBI) on sectoral deployment of bank credit for March 2024.

Additionally, the data indicated that as of March 2024, the outstanding credit for commercial real estate was Rs 4,48,145 crore. March 2022 saw it at Rs 2,97,231 crore.

Numerous real estate advisors have reported large increases in both housing sales and prices throughout the last two fiscal years.

When contacted, Bank of Baroda Chief Economist Madan Sabnavis stated that the housing boom observed across all categories is the reason for the significant increase in home loans.

Sabnavis mentioned that the government’s initiative has specifically led to an increase in the affordable housing market.

“There was also some pent up demand for buying homes in the last two years after COVID which is getting reflected here,” he explained.

According to Sabnavis, the increase in housing loans would continue to be strong but would slow down to 15–25% because of the greater base.

Samir Jasuja, CEO and MD of PropEquity, a top provider of real estate data and analytics, commented on the RBI data and stated that the substantial increase in the number of homes launched and sold in the last two fiscal years is the main cause of the rise in the amount of housing loans outstanding.

“Major Tier-1 cities have seen high rates of price appreciation ranging from 50-100 per cent since FY 2021, which has influenced an increase in average loan size per property,” he stated.
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Jasuja believes that as long as there is a high demand for residential real estate, the home loan market would continue to grow.

The Indian real estate market, which provides support to over 200 auxiliary industries such as steel and cement, has been seeing robust demand since 2022. Prior to this, the market had been stagnant for over ten years due to low sales and steady prices.

In addition to the disruptions brought about by the new real estate law, RERA, GST, and demonetisation, the real estate industry suffered from a lack of confidence as many developers failed to complete projects after collecting money from clients. Nonetheless, the industry recovered after COVID since the pandemic highlighted the value of owning a home again.

Industry insiders predict that by 2030, the sector will have crossed the $1 trillion mark.

Senior Vice President and Group Head at rating agency ICRA Karthik Srinivasan stated that the merger of Housing Development Finance Corporation Ltd (HDFC) with HDFC Bank, which became effective in July 2023, is the reason behind the notable increase in retail housing loans that banks deployed in FY’24.

“Mortgage saturation level is steadily rising in India (around 12 per cent as of March 2024; the amount of housing loans due as a proportion of GDP), but remains fairly lower than developed economies, implying significant room for growth,” said the economist.

In the near to medium term, ICRA anticipates that the trend will continue, with overall home finance growing by 12–14% yearly, helped by strong demand.

The demand for homes has increased to an unprecedented level over the last two years, especially in the wake of COVID, according to Aakash Ohri, Jr. Managing Director of DLF Home Developers.

This increase highlights how people’s views on homeownership have fundamentally changed and how important it is to have a place to call home more than ever. In addition to providing a haven for end users, residential real estate has become a desirable place to invest, the speaker claimed.

Ohri went on to say that favorable government policies, alluring financing choices, and the public’s growing ambitions toward homeownership are some of the reasons for the extraordinary rise in home loan advances.

According to Mohit Jain, Managing Director of Krisumi Corporation, purchasers are giving priority to designated workspaces and comfortable living rooms, and demand for large homes has genuinely surged.

“We are witnessing a surge in interest for properties with separate home offices and outdoor space features that were once regarded luxuries, but are now essential for the modern homeowner,” he stated.

According to Jain, there is still a very bright future for the property sector, which means that house loan growth will probably likewise continue to be robust.

According to realtors, the industry is most likely in the second or third year of a protracted up cycle. Real estate trade associations CREDAI and NAREDCO have been pleading with the government to raise the tax breaks on home loans in order to further stimulate the demand for housing. They are asking for an increase in the deduction allowed for interest paid on home loans from the existing Rs 2 lakh to Rs 5 lakh.

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In the instance of Deepak Jain, the petitioner, who rented out his property to a private limited company that operated a back office, the AAR noted that, until July 17, 2022, residential dwelling rentals for residential use were GST-free, whereas rentals for commercial use were subject to an 18% tax.

But starting on July 18, 2022, there will be changes to the taxability of renting residential property. Services provided by renting a residential dwelling used as a habitation will be subject to the reverse charge mechanism if they are rented to a registered person.

In this instance, the Jaipur Development Authority’s lease deal specified that the property would be used for residential purposes.

But Jain and the private company signed a contract stating that the property may only be used for business purposes. The AAR states that, even in cases where municipal authorities may classify a property as residential, the primary business use will ultimately determine the amount of GST that must be paid.

Commercial rentals are subject to an 18% tax and forward charge basis GST for the applicant.

In response to the particular queries that prompted the request for an early ruling, the AAR determined that because of its commercial use, the property will not fall under the category of a residential dwelling under the terms of the July 13, 2022 announcement. The nature of the property is also determined by how users use it and how long they stay there.

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The majority of defaulters have not deposited their dues within the allotted time frame. In accordance with Municipal Act Section 138, the city council may begin attachment procedures. According to the amount owed, we have identified 2,000 defaulters, and we will take action against them first, an official stated.

According to Section 138 of the Municipal Act, the MC may attach and sell a defaulter’s real estate in order to recoup any unpaid balance owed on the amount of taxes owed, together with recovery expenses.

The majority of the outstanding balances have been accumulated during the previous few years. To get them back, the MC has been acting strictly. A top official stated that there are over Rs 150 crore in outstanding property dues, of which approximately Rs 8 crore are from residential properties alone.

The MC had issued attachment orders for 339 premises in the previous fiscal year. Additionally, after the dues were deposited, the MC de-sealed 13 properties and sealed 17 others.

The civic organization had previously given a 20% refund if taxes were paid between April 1 and May 31.

An assessee was subject to a 25% penalty after the rebate period ended, in addition to interest charged at a rate of 12% annually on the unpaid tax balance between the day the tax bill was issued and the date it was actually paid.

“Demand notices were delivered and property owners were given several chances to pay their dues for both the current and prior financial years after the rebate period ended. However, since so many people disregarded the instructions, the MC is now forced to begin the attachment procedures, the official stated.

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Andheri’s prime location within Mumbai is one of its most significant assets. Situated on the city’s western side, it enjoys proximity to major commercial and financial districts like Bandra-Kurla Complex and Lower Parel.

This accessibility makes Andheri a preferred choice for professionals and businesses looking for a central location to operate from. Marol Industrial Area is a prominent industrial zone located in Andheri East. It is known for housing a wide range of manufacturing, commercial, and service-based industries.

Marol Industrial Area’s strategic location near the Chhatrapati Shivaji International Airport and the Western Express Highway makes it an attractive destination for businesses. The area’s development has been driven by the increasing demand for industrial and commercial spaces in Mumbai.

Moreover, its proximity to the Mumbai International Airport and well-developed transportation infrastructure, including the Western and Harbour railway lines and the Mumbai Metro, ensures seamless connectivity within and beyond.

Andheri’s residential real estate market has experienced a surge in demand, attracting both homebuyers and investors. The suburb offers a wide array of residential options, ranging from luxury high-rises to budget-friendly apartments.

With its diverse neighborhoods, such as Lokhandwala, 4 Bungalows, and 7 Bungalows prospective buyers can find a place that suits their preferences and lifestyle. The presence of quality schools and colleges like NMIMS College, hospitals like Kokilaben Hospital shopping centers, and recreational facilities adds to the allure of Andheri as an ideal residential location.

Andheri has evolved into a bustling commercial hub, hosting a plethora of offices, corporate parks, and business centers. Many renowned national and international companies have set up their operations here, taking advantage of the area’s commercial significance and accessibility. As a result, the demand for commercial spaces in Andheri has been consistently high, making it a lucrative investment opportunity for those interested in commercial real estate.

The steady growth in the real estate sector in Andheri is also attributed to the continuous focus on infrastructure development by both public and private entities. Various initiatives, such as the improvement of roads, flyovers, and the expansion of public transportation networks, have significantly contributed to enhancing the overall living and working experience in the area.

Additionally, ongoing and planned infrastructure projects promise a promising future for real estate investors in Andheri, Andheri’s unique social fabric adds to its charm, making it an appealing destination for people from various cultural backgrounds.

The area is home to a rich tapestry of communities, and this multicultural ambiance fosters a sense of inclusivity and acceptance. This, coupled with the availability of diverse culinary delights, entertainment options, and recreational activities, ensures that residents enjoy a vibrant and fulfilling lifestyle in Andheri. 

Andheri West’s growth story is a testament to its unwavering potential as a real estate investment destination. Its strategic location, robust infrastructure, and vibrant lifestyle have made it an unmissable opportunity for those seeking both a dream home and a lucrative investment. As the neighborhood continues to evolve, investing in Andheri West today could be a decision that pays dividends in the future.

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According to a directive released on September 4, failure to follow the directives might result in fines of up to 10% of the project’s estimated cost, up to three years in prison, or both.

Anand Kumar, the chairman of Delhi-RERA, told PTI that there have been a number of instances when developers in Delhi have failed to register their residential and commercial projects, which are covered by RERA.

He claims that RERA registration is mandatory for four different types of projects.

“The real estate projects that are being developed, in whole or in part, with the aim of leasing or selling on plots larger than 500 square meters fall under the first category.

The second group includes projects that call for the development of more than 8 flats, apartments, floors, shops, commercial, or office units over the course of all phases on any sized site with the intention of leasing or selling them, according to Kumar.

He classifies projects where plots are sold or leased on land areas larger than 500 square meters as falling into the third category.

No matter when they were started, any ongoing projects that lacked a certificate of completion before May 1, 2017, fall under the fourth category.

If, for example, a builder sold all ten of his apartments to customers prior to May 1, 2017, without acquiring a completion certificate, the builder or the plot owner must nevertheless register the project today in order to avoid legal repercussions, Kumar explained.

The majority of builders in Delhi choose not to seek completion certificates because they alter projects in ways that are both compoundable and non-compoundable, avoiding the scrutiny of the local authorities. He felt that a completion certificate ought to be required before enabling employment.

“A completion certificate from the local government guarantees that a building is constructed in accordance with approved plans and is structurally sound.

In addition to encouraging builders to make unauthorized improvements, allowing occupancy of any structure without a completion certificate also endangers the lives of its occupants, according to Kumar.

The three-member Delhi RERA has also requested that regular people contact them if such real estate developments are not registered by sending an email to gcrera.delhi@gmail.com or by sending a letter of protest to the RERA office.

According to Kumar, the Authority is also requesting that the relevant municipal entities give Delhi RERA the specifics of all such projects so that it can identify the offenders and apply penalties.

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DTCP has previously shut down more than 50 homes in exclusive residential communities due to violations of building standards. Manish Yadav, the district town planner responsible for enforcement, stated that eight residential properties whose owners were conducting businesses had been sealed.

Around 12 apartments where commercial activities were taking place were discovered vacant during the examination. During the drive, owners of eight residential buildings sought permission to perform business operations under the non-nuisance activity standards.

Yadav claimed that several property owners were observed locking down their apartments in the residential area and vacating the premises even during the sealing campaign.

“Over the course of the past week, we have sealed more than 50 properties and already covered Suncity, Sushant Lok 1, and Golf Course Road. In order to prevent commercial activity in these residential homes, property dealer offices, guest houses, and business offices were sealed, he claimed.

The enforcement wing is conducting a sealing drive on the directive of DTCP Director General TL Satyaprakash to halt the commercial activities taking place in residential homes of licensed colonies. According to an official, warnings have been sent to more than 800 activities thus far, and more than 300 have received orders for restoration.

In DLF Phase 1, 2, 3, 4, Sushant Lok 1, 2, 3, Suncity, Vatika India Next, and South City – 1, the department only focuses on illicit commercial activity.

Officials added that the sealing campaign’s effects had begun to be seen on the ground. “People have started getting rid of businesses inside their homes.

Many homeowners have requested permission to engage in the activities allowed by the Non-Nuisance Rules. Real estate offices, CA and lawyer offices, doctor clinics, etc. are some of these applications, an official added.

The official claims that this month’s goal is to seal about 150 economic activity.

Officials have constantly urged the public to quit engaging in commercial activity because sealing action will be taken if it is discovered.

The infrastructure is currently overloaded as a result of unauthorized development and illegal commercial activity on residential plots, which has been a source of complaints from the locals.

According to Deepak Sharma, a resident of DLF 1, “Despite numerous reminders, the property owners have not obtained mandatory permissions from the appropriate authorities for operating non-nuisance activities, like offices, which are allowed on 25% area on the ground floor.”

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MahaRera will be given a separate method by the agency to verify the “real-time status of the project,” which will include onsite images and a progress bar. The organization will work with MahaRera to take corrective action against any project whose developer gives inaccurate information or gives no information at all.

The compliance cell at MahaRera keeps track of the development of residential and commercial projects that have been registered with it. To support the work of the cell, we appointed this agency.

The agency not only has a substantial database and status of state real estate projects but also the technological know-how to evaluate the development of any project, according to a MahaRera representative.

In the beginning, the agency planned to give information about the regions where more than 80% of the state’s projects are located, including the Mumbai Metropolitan Region (MMR), Pune, Nashik, Aurangabad, and Nagpur, among others.

The agency may be required to check on the status of projects that have expired, been flagged, or haven’t been providing progress and compliance reports on a quarterly and annual basis.

The projects could include both those where homebuyers received their homes with occupancy certificates and those where they may have taken possession of their homes without them. Additionally, some projects can be moving very slowly or have stopped altogether.

Classifications can be formed and appropriate action pursued after the agency delivers the exact status, the source added.

Up to 313 significant projects in the state that require investments of more than Rs 50 crore have been identified by MahaRera after an auditing firm it employs expressed concerns about some of the projects.

The project’s promoters spending more than 75% of the expected total expenditure when less than 50% of the work has been accomplished are examples of red flags. In certain cases, the project’s completion date is only six months away yet less than half of the work has been accomplished.

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It also said that the housing sector is prospering, with sales growing by 21.6% in the fourth quarter of 2022-23 (January-March). In addition to increased sales, new product introductions maintained healthy growth, indicating that end-user demand is strong.

According to the study, the share of residential housing loans in total loans has risen over the last eleven years to 14.2% in March 2023, up from 8.6% in March 2012.

During this time, the proportion of commercial real estate (CRE) loans in total loans has been between 2.0 and 2.9%.

“In March 2023, the banking system’s total exposure to real estate stood at 16.5% of total loans.” Loan defaults remain less than 2% due to the secured nature of these loans and loan to value (LTV) ratio rules,” it stated.

As stated by Pradeep Aggarwal, Founder and Chairman of Signature Global (India), traditionally, Indians have a predilection for avoiding loans, and if they do take one, they desire to repay it as soon as feasible.

“This strategy is especially obvious when it comes to home loans, where buyers strive to pay off their debts as soon as possible.” Individuals are encouraged to prevent loan defaults and the potential loss of their homes because home ownership is seen as a source of pride and accomplishment. As a result, the house loan market’s non-performing asset (NPA) rate stays low,” he explained.

Furthermore, the Reserve Bank of India’s (RBI) home loan laws and standards play a critical part in sustaining this low NPA rate,” Aggarwal noted.

V Swaminathan, executive chairman of Andromeda Sales, stated that the residential housing category has seen a significant surge in demand as a result of reasons such as the introduction of RERA (Real Estate Regulation and Development Act) and the impact of the pandemic. As a result, the proportion of home loans in the entire retail loan portfolio has increased.

“Home loans are secured loans that frequently require the borrower’s equity as a down payment.” Borrowers often prioritize early repayment of their house loans due to the potential loss of equity in the event of failure. As a result, the house loan segment’s non-performing asset (NPA) rate remains low,” he noted.

Based on RBI data, the outstanding housing (including priority sector housing) loan in March 2023 was Rs 19, 36, 428 crore, up 15% year on year. According to the FSR, the all-India home price index (HPI) increased by the most in the last seventeen quarters (4.6% year on year) in the fourth quarter of 2022-23.

It also stated that during the fourth quarter of 2022-23, house sales increased by 21.6%, while new launches increased by a similar amount, suggesting strong demand from both end-users and investors.

Based on the research, the rise in unsold inventory caused an increase in inventory overhang from January to March 2022-23.

It was stated that, due to strong demand for housing in the post-pandemic period, the home price gap (really less trend) is shrinking after a three-year period. A positive house price gap signals credit concentration and vulnerability in the housing sector.

The fraction of loans with interest rates greater than 9% climbed to 56.1% in March 2023 as a result of the RBI’s ‘Basic Statistical Return on Credit by Scheduled Commercial Banks in India – March 2023,’ corresponding with the monetary tightening measures that began in May 2022.

The Reserve Bank began boosting interest rates in May 2022 in response to global supply disruptions caused by the Russia-Ukraine war. The benchmark short-term lending rate has risen by 250 basis points since then. The RBI, on the other hand, did not raise the rate in its last two bi-monthly monetary policy reviews.

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“Notices were sent to the property’s owners and occupants, reminding them of the payment.” However, despite repeated summons, they have not paid the tax, and hence these properties have been sealed.

“The upcoming course of action, including auctioning these properties, will be discussed in due course,” said Ajit Deshmukh, head of the property tax department of the Pune Municipal Corporation (PMC).

According to PMC authorities, the municipal administration must recover approximately Rs 8,000 crore from defaulters. This comprises major tax evaders such as industries, commercial complexes, IT parks, and hospitals, as well as mobile tower tax.

“Many tax defaulters have taken the notices of recovery to court.” In many cases, the PMC lacks the authority to take forceful action. “This is causing recovery delays,” stated a senior PMC official.

According to the official, the civic administration has also received complaints about tax being levied on a single property many times. According to the official, as a result, the total amount of tax to be recovered seems to be exaggerated and inflated, and the administration should take action to write off such inflated tax amounts in order to acquire true tax recovery data.

As stated by civic activists, the PMC does not target significant defaulters and instead offers tax exemptions through various schemes.

“A lot of errant defaulters are not paying the tax.” They think that the PMC will offer some tax savings and a reduction in penalties. According to Vivek Velankar of the citizen’s group Sajag Nagrik Manch, “the implementation of amnesty schemes has frequently delivered the wrong message to taxpayers.”

The civic government resumed a tax recovery drive with musical bands last year. The bands are hired to play loud music in front of tax defaulters’ homes in an attempt to embarrass them into paying their debts. Property tax collectors accompany the bands in order to collect payments on the spot.

In the fiscal year 2022-23, PMC collected Rs 2,000 crore from property tax. For fiscal 2023-24, the municipal administration has set a target of Rs 2,318 crore.

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