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News18
08-07-2025
- Business
- News18
Land Deals Remain Upbeat In H1 2025, Transactions Seen For 2,900 Acres Worth Rs 31,000 Crore: Report
Real Estate Deals: The total market value of the land transacted in January-June stood at Rs 30,885 crore. India's real estate market show an impressive growth post pandemic with major develpers acquiring land for various real estate developments, including residential, commercial, logistics, and warehousing, according to a report by real estate consultant Anarock. At least 2,900 acres of land deals, having a market value of Rs 31,000 crore, were transacted in the first six months of 2025, according to Anarock. It clarified that the land deals include both outright as well as joint development agreements between realtors and landowners. The value is based on the rates prevailing in the markets and not the actual price considerations. In a statement on Tuesday, Anarock said, 'Over 2,898 acres of land were transacted in 76 deals across India in H1 2025." The total market value of the land transacted in January-June was Rs 30,885 crore, the consultant said. The total revenue potential of these land parcels is about Rs 1.47 lakh crore and a total development potential of over 233 million sq ft. Bulk of these land deals were for development of housing, commercial and mixed use projects. Of the total 76 land deals in the first half of this year, Anarock said as many as 17 were joint development agreements (JDAs) spread over 782 acres with a market value of Rs 6,765 crore. Anarock highlighted that the total volume of the land transacted in the first six months of 2025 is already 1.15 times compared to the entire 2024, which saw about 133 deals involving 2,515 acres. Geographically, Anarock said of the 76 land deals in H1 2025, 67 deals for 991 acres took place in the top-seven cities. The remaining nine deals for 1,907 acres were in tier-2 and tier-3 cities like Ahmedabad, Amritsar, Coimbatore, Indore, Mysuru, and Panipat. At least 54 separate deals for over 1,200 acres are proposed for residential developments, while eight deals involving 48.41 acres are proposed for commercial projects. Six deals totalling 1,034 acres are proposed for mixed-use development. Around 537 acres in three separate deals are proposed for industrial & logistics parks, the consultant said. Mayank Saksena, MD & CEO (land services) of ANAROCK Group, said, 'The post-pandemic years from 2021 onwards have seen a relentless spate of land deals. Between 2021 and H1 2025, over 11,858 acres have been transacted in 423 deals across the country for various developments. The scale and sophistication of these deals, which account for a combined development potential of 841 million square feet, underscore the real estate market's maturation — and the strategic importance of land as a cornerstone resource." The emergence of tier II/III cities as significant contributors to the national land transaction ecosystem is also noteworthy, said Saksena. 'These markets, once considered peripheral to mainstream real estate activity, now represent an inalienable component of the Indian real estate growth horizon – challenging the historical metro-centric model and inducing a healthier geographic distribution of economic opportunity," he added.
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Business Standard
02-07-2025
- Business
- Business Standard
Home payment plans in India: What CLP, PLP, flexi, and subvention mean
Buying a home is one of the biggest financial decisions most people make. But for many first-time buyers, figuring out how to pay for it can be confusing. From upfront down payments to staggered instalments linked to construction milestones, there are several options, each carrying its own set of risks. How payment plans work in real estate A real estate payment plan is an agreement between the buyer and the developer that lays out when and how payments will be made. Instead of paying the full amount at once, buyers can opt for structured schedules, often tied to project stages or timelines. These plans give homebuyers more flexibility. They help spread out the financial load and offer the chance to match payment schedules with project progress. Among the plans commonly used by Indian homebuyers are: • Down payment plan • Construction-linked plan (CLP) • Possession-linked plan (PLP) • Flexi plan • Subvention scheme Each model suits different financial situations and levels of risk tolerance. How CLP, PLP and subvention differ Explaining the most widely used model, Rahul Phondge, chief operating officer at ANAROCK Group, said, 'Construction Linked Plan (CLP) requires payments directly linked to the project's construction milestones. For a ₹2 crore apartment, buyers typically pay 10-15 per cent as a booking amount, followed by staged payments of 15-20 per cent at foundation, plinth, floor completion, and finishing stages. This spreads payments over 3-4 years based on actual construction progress.' In contrast, the Possession Linked Plan offers a different structure. 'A Possession-Linked Plan (PLP), on the other hand, might just be asking for 10-20 per cent, which is ₹20-40 lakh on commencement, with 80-90 per cent at other stages (usually handover). This is generally going to be much safer for end users to pay just then! Also avoid subvention,' said Aman Gupta, director at RPS Group. Why subvention plans can be risky Subvention schemes are often marketed as a low-stress way to buy a flat. The builder takes on the EMI burden during construction, while the buyer starts paying only after possession. But beneath the surface, the arrangement can expose buyers to financial shocks. Rahul Phondge explained, 'Subvention schemes involve third-party financing where builders absorb interest costs during construction, allowing buyers to defer payments until possession.' However, he added, 'The primary risks include substantial financial exposure when projects face delays, with buyers potentially becoming liable for interest payments and principal amounts on incomplete projects.' These schemes rely on a three-way contract between the buyer, builder, and bank. If the builder fails to honour the EMI promise, the responsibility quietly shifts to the buyer, regardless of whether the home is delivered or not. Gupta warned that in speculative markets like Gurgaon, subvention remains popular with investor-driven projects. 'If trader-heavy projects (often promoted), beware of the risks of PLP, if a weak builder has funding issues and delayed possession. If there are provisions for sale cheap or transfer, aggressive subvention emails, and unnaturally low deposits required to enter PLP, you are likely seeing trader-heavy methods. Always check if your builder has a prior record,' he said. Phondge added, 'These schemes attract investors seeking minimal initial commitments, inflating demand artificially and creating price volatility. When speculation-driven demand collapses, genuine homebuyers face delayed possessions, price corrections, and financing challenges.' Legal grey areas and regulatory caution Vikram Sobti, partner and head of dispute resolution practice at Chandhiok and Mahajan, said subvention plans occupy a regulatory grey area. 'They are not explicitly illegal, but they are neither fully regulated nor openly supported by financial authorities. The Reserve Bank of India (RBI) and the National Housing Bank (NHB) have issued cautionary guidelines discouraging banks from disbursing full loan amounts upfront to builders.' According to Sobti, Rera does not directly regulate subvention schemes either, though it does require that such arrangements be clearly disclosed. 'In practice, many subvention schemes are poorly explained to homebuyers. The tripartite agreement often contains fine print that buyers do not fully understand. In several cases, courts have criticised both banks and builders for misusing these schemes and shifting the burden to buyers unfairly.' The Supreme Court has recently restrained banks from taking recovery action in cases where builders failed to deliver homes. It has also directed the CBI to probe alleged builder-bank collusion where loans were disbursed in violation of rules. What can go wrong for buyers? Sobti said if a builder defaults on EMIs during the subvention period, buyers could face: • Damage to their credit score • Loan recovery notices from banks • Financial strain while the property remains incomplete 'In the worst-case scenario, the builder could go insolvent, leaving the buyer saddled with debt but no home. While Rera provides relief for delays and delivery issues, it doesn't cover banking liabilities,' he said. Red flags to watch for in payment plans Phondge pointed out several warning signs that buyers should stay away from. These include: • Booking amounts below 10 per cent • Extended payment holidays • Unusually flexible schedules not tied to construction 'These signs suggest a project is geared more towards traders than end users,' he said. 'Genuine buyer-focused projects have clear timelines, transparent milestone definitions, and simple terms in the agreement. The pricing usually reflects the real market rather than speculative bubbles.' How to handle pre-possession transfers During the construction stage, some builders allow the original buyer to transfer their booking to someone else before possession. This usually happens after the 'Agreement for Sale' has been signed. While not illegal, skipping certain steps can lead to serious problems. 'If the builder doesn't approve the transfer in writing, and a new agreement isn't registered in the name of the new buyer, Rera will still treat the original allottee as the legal owner,' said Sobti. 'Even if the new buyer has paid the full amount, they may not be eligible for possession or compensation in case of delays.' To stay protected, buyers must ensure that: • The builder formally approves the transfer • A new, registered agreement is signed in the buyer's name Without this, legal ownership stays with the original allottee, leaving the transferee vulnerable. 'Book now, pay later'—but at what cost? 'Book a home now, pay later,' they said. But for many homebuyers, 'later' became a painful reality, paying full EMIs without possession while battling stalled or delayed projects. What began as a marketing convenience ended in costly litigation and shattered trust. In the current Rera-regulated environment, buyers are better off choosing CLP or PLP schemes, where payment outflows align with construction progress or actual possession,' said Abhilash Pillai, partner at Cyril Amarchand Mangaldas.
India Gazette
30-06-2025
- Business
- India Gazette
Home sales in top 7 cities drop by 32% in first half of 2025
Mumbai (Maharashtra) [India], June 30 (ANI): The top 7 cities recorded around 1,89,570 units sold between January and June 2025 -- a steep 32 per cent drop compared to the same period last year, according to ANAROCK Research. The Mumbai Metropolitan Region (MMR) was among the worst-hit, with sales falling 34 per cent, from 84,465 units in H1 2024 to just 62,890 units in H1 2025. India's housing market witnessed a sharp slowdown in the first half of 2025, with home sales falling significantly across major cities. Along with more registrations, the state government earned a record Rs 6,699 crore in revenue, which is 14 per cent higher than last year's Rs 5,874 crore. In June alone, 11,211 properties were registered, bringing in Rs 1,004 crore in revenue. Though slightly fewer than the 11,673 registrations in June 2024, this year's revenue was almost the same - showing buyers are spending more on costlier homes. Anuj Puri, Chairman of ANAROCK Group, said, 'While registrations dipped slightly - about 4% lower than June 2024's 11,673 deals - this year's revenue held firm, matching almost last year's figure. In fact, June 2025's revenue was just 1% lower than last year, highlighting the market's resilience despite a marginal drop in transactions. Mumbai's real estate continues to deliver strong numbers, even as the pace has cooled a bit.' Interestingly, even though housing sales across the Mumbai Metropolitan Region (MMR) dropped by 32 per cent in H1 2025, registrations in Mumbai city remained high. This is largely because of a rush in March 2025, when buyers hurried to register properties before the 3.9 per cent increase in ready reckoner rates for FY26. That month alone saw 15,501 registrations and over Rs 1,589 crore in revenue. Another trend this year is the rise in average home prices. In H1 2025, the average ticket size of homes was Rs 1.60 crore, higher than Rs 1.56 crore in H1 2024, and much higher than Rs 1.02 crore in 2021. This shows that Mumbai is seeing more sales of high-value homes than affordable ones. (ANI)
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Business Standard
30-06-2025
- Business
- Business Standard
Inside Gurugram's real estate boom: How traders are flipping the game
Gurugram's housing market is being driven less by families looking for homes and more by traders, who place early bets on price jumps and exit before the dust settles. This otherwise well-known trend within real estate circles took on renewed public interest after a video went viral, wherein real estate commentator Vishal Bhargava described Gurugram's market as 'a gripping movie with a bad ending'. He explained that unlike Mumbai or Bangalore, where most buyers are either end-users or investors, Gurugram's ecosystem gives centre stage to traders, people who buy units during launch and sell them off quickly, often before making the next payment. Why builders prefer traders over investors 'Builders love traders,' Bhargava said. 'They offer three incentives. First, a small down payment that traders can afford. Second, a payment plan where the next instalment is due one to two years later. Third, they allow the unit to be resold before the next payment is due under a scheme called 'first transfer free'.' The logic, he said, is straightforward. 'If an investor has Rs 5 crore, they buy one apartment. A trader with the same Rs 5 crore can book five apartments by paying just Rs 1 crore per unit upfront. They don't have the money for all five, but they're not planning to hold long either.' According to Bhargava, these early traders create the illusion of a blockbuster sell-out. 'That boosts hype and marketing. Prices jump. A unit booked for Rs 5 crore can be sold for Rs 6 crore in three months. With Rs 1 crore invested, the trader earns Rs 1 crore— 100 per cent return.' Who are these traders and how do they operate Dr Prashant Thakur, regional director and head, research and advisory at ANAROCK Group, said traders are entirely different from investors or genuine homebuyers. 'A real estate trader purchases properties solely for short-term resale gains. They usually exit within months. Their model is about price arbitrage, not rental income or long-term appreciation,' Thakur told Business Standard. He added, 'They never intend to live in the property. They operate with minimal capital, using builder schemes to control multiple units at once. Their profitability depends entirely on market momentum.' Builder schemes encourage speculative flipping According to Thakur, payment plans like 10:90, low booking amounts, and 'first transfer free' clauses are structured to support trading behaviour. In real estate, a 10:90 payment plan means the buyer pays 10 per cent of the property's cost upfront, and the remaining 90 per cent upon possession. This plan defers the bulk of the payment until the property is ready for handover, reducing the initial financial burden on the buyer. 'These schemes are meant to accelerate sales during construction and improve cash flow. By allowing traders to block multiple units with minimal capital, builders simulate high demand,' he said. Such artificial demand becomes a marketing tool. 'Builders can showcase strong early sales, attract genuine buyers, and even secure better financing,' Thakur said. What happens when prices stop climbing Thakur warned that the trader model depends entirely on rising prices. 'When price growth stalls, traders are stuck. They can't exit and often default on the next instalments. Builders are left holding unsold stock midway through the project.' This creates knock-on effects. 'Resale units at lower prices hurt sentiment. Cash flow dries up. Construction delays follow. End-users suffer, even though they had nothing to do with the trading activity,' Thakur said. How traders inflate prices and crowd out buyers 'Traders artificially inflate demand during launch,' said Thakur. 'That pushes prices beyond what the location or project deserves. They usually take the best units—corner flats, higher floors—leaving end-users with leftovers at inflated rates.' The impact spreads beyond the project. 'Neighbouring prices adjust to the new inflated benchmark, distorting the micro-market,' he said. Spotting trader-heavy projects before you book Thakur advised buyers to look for certain patterns. 'Extremely flexible payment terms, early sell-outs, and schemes that support easy transfer are signs.' He added, 'End-users should watch for resale listings shortly after launch. That's often a sign of speculative presence. Projects by reputed builders with stricter payment schedules and better delivery records are safer bets.' Builders not legally bound to disclose trader deals Raghav Malhotra, founder and director at PRIME Developments, said there's no legal requirement under Rera for builders to disclose whether 'first transfer free' or bulk trader bookings are allowed. 'While RERA requires full disclosure on layout, timelines, and approvals, it doesn't force builders to reveal if they've signed special deals with traders,' Malhotra told Business Standard. Buyers can seek written clarity, but it's not mandatory for builders to provide it proactively, he added. Legal risks of buying units flipped by traders Malhotra said problems may arise if transfers were not properly documented. 'If any prior transaction wasn't officially registered, you may face delays in registration or even ownership disputes,' he said. 'There's also the risk of incomplete documentation or hidden liabilities. If a trader sold the same unit to multiple people, fraudulent claims can surface.' No legal ban on speculative trading under Rera Akshat Pande, managing partner at Alpha Partners, said, 'There's no law banning speculative trading. Rera has checks for overbooking and compliance, but nothing stops a trader from buying and flipping units.' He warned that if the trader defaults and the builder is financially affected, delays can occur even for genuine buyers. Legal remedies if things go wrong Suhael Buttan, partner at SKV Law Offices, said Rera protects buyers even if the builder blames trader defaults. 'Section 18 mandates a refund with interest if the promoter fails to deliver possession. Section 19(4) lets buyers claim refunds if there's non-compliance,' he said. 'The builder can't use trader default as a blanket excuse. Each buyer's rights stand independently.' Buttan pointed to past Rera rulings. 'In one case, Gujarat Rera took suo motu action against a builder who accepted booking tokens before registration. In another, Haryana Rera forced a refund with 10.45 per cent annual interest to a buyer misled by pre-launch sales.' Such precedents suggest that Rera will act if builders misuse schemes to fake demand or fast-track sales without proper approval. Gurugram's rising home prices According to ANAROCK, residential prices in the National Capital Region rose by 81 per cent between Q1 2020 and Q1 2025. Gurugram alone saw an 84 per cent increase—from Rs 6,150 per sq. ft. to Rs 11,300. ANAROCK Research noted that average residential prices in Gurugram stood at around Rs 6,200 per sq. ft. in 2021, rising to approximately Rs 11,900 per sq. ft. by Q2 2025— a 92 per cent jump over four years. The sharpest rise came in 2024, when prices increased by 30 per cent year-on-year, from Rs 7,660 per sq. ft. in 2023 to Rs 9,980 in 2024. This spike, the firm said, coincided with a surge in new launches within the luxury segment—homes priced above Rs 1.5 crore. 3BHK: Rs 3.7 crore
Time of India
30-06-2025
- Business
- Time of India
High-value homes fuel Mumbai's real estate momentum in H1 2025
Mumbai's real estate market continues to defy domestic and global headwinds, recording its best-ever performance in the first half of 2025, ANAROCK Research said in a statement. According to fresh data from the Maharashtra State Revenue Department, property registrations in the city touched a historic high of 75,672 units between January and June 2025, marking a 4% year-on-year (YoY) growth over the same period last year. Revenue collections from these registrations surged to Rs 6,699 crore, a robust 14% increase compared to Rs 5,874 crore in H1 2024, reflecting continued buyer appetite and rising property prices. 'June 2025 alone witnessed 11,211 property registrations, the second highest for the month in six years,' said Anuj Puri, Chairman, ANAROCK Group. 'Although this figure was 4% lower than the 11,673 registrations seen in June 2024, revenue collection remained resilient at Rs 1,004 crore—just 1% below last year's level. This shows that despite a slight decline in the number of deals, the market is being buoyed by the sale of higher-value properties.' March 2025: A Historic Surge One of the standout months was March 2025, when 15,501 properties were registered, making it the highest March total in the past three years. The surge was largely attributed to a rush by buyers to lock in purchases before the 3.9% hike in Maharashtra's ready reckoner rates for FY26 came into effect. The month raked in over Rs 1,589 crore in revenue, underscoring the urgency among homebuyers to beat the price hike. Only two months in recent memory—December 2020 (19,581 registrations) and March 2021 (17,728)—have surpassed these numbers, both during the pandemic-era stamp duty concessions. High -Value Homes Drive Growth Interestingly, the robust registration data comes at a time when overall housing sales in the Mumbai Metropolitan Region (MMR) saw a decline. According to ANAROCK Research, 62,890 units were sold in MMR in H1 2025, down 34% from 84,465 units in H1 2024. However, the average ticket size of homes sold in Mumbai rose to Rs 1.60 crore, up from INR Rs crore last year and significantly higher than Rs 1.02 crore in H1 2021, reflecting a 55% jump over four years. 'This indicates a clear shift towards premium housing,' Puri noted. Key Highlights: 75,672 properties registered in H1 2025, up 4% YoY Revenue collection: Rs 6,699 crore, up 14% from H1 2024 Average ticket size: Rs 1.60 crore, 3% higher than last year March 2025 registrations: 15,501 units, highest March tally in three years Despite a 34% dip in MMR housing sales, Mumbai's registration activity remains strong T he Road Ahead: Mumbai's property market has once again proven its resilience. Despite geopolitical tensions and fluctuating macroeconomic signals, the city has continued to attract high-value investments in real estate. With premium housing leading the charge, and strategic policy timing influencing buyer behavior, Mumbai's real estate narrative remains one of long-term strength and evolving sophistication.
