REALITY Of Gurugram's Real Estate Market Decoded: Is It A House Of Cards?
Is Gurugram's property market a house of cards, ready to collapse with a small push? Is the price rise of 300% since 2021 that Gurgaon has seen too much, too soon? Most importantly, should YOU stay away from this overheated market? It can be confusing, especially because influencers are giving opinions and there is fear gripping the market. However, does this fear have a solid base or is it just a theory? What are the numbers saying? In this video, we analyse EXACTLY that for you - the hard numbers and data. Tune in to watch Manisha Natarajan's conversation with PropEquity founder Samir Jasuja on this episode of Let's Get Real!
Copyright © 2025 HT Digital Streams Ltd All Right Reserved
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Hindustan Times
3 days ago
- Hindustan Times
Should You Invest in India's Biggest Office REIT IPO – Knowledge Realty Trust?
On August 5th, 2025, Indian investors will be offered a front-row seat to some of the country's most iconic office buildings—without ever needing to own one. The Knowledge Realty Trust REIT, or KRT REIT, opens its ₹6,200 crore initial public offering (IPO) this week, with ₹900 crore reserved for retail investors, at a price band of ₹95-100. In her column "Let's Get Real," Manisha Natarajan writes about The Knowledge Realty Trust REIT, or KRT REIT, that opens its ₹ 6,200 crore initial public offering (IPO) this week, with ₹ 900 crore reserved for retail investors And if the names behind it — Blackstone and Sattva Group weren't enough to stir investor excitement, the assets on offer might do the trick. We're talking about trophy addresses like One BKC and One World Centre in Mumbai, and Knowledge City in Hyderabad. Big, brand-name tenants like Amazon, Google, Cisco, and Goldman Sachs are already paying rent here. On paper, it feels like a great opportunity: owning a slice of India's finest commercial real estate and earning regular rental income. Big Question: Should You Invest? But is it really that simple? Or more importantly, is it worth your money? Before we dive into KRT's specifics, let me first take a step back, especially for readers new to REITs. Real Estate Investment Trusts, or REITs, allow regular investors to buy into high-quality commercial real estate such as offices, malls, and industrial parks — that you and I can't even afford to buy! You earn through dividends (a share of the rent collected) and, hopefully, from an increase in the REIT's unit price. In essence, it's a hybrid: part-debt, part-equity. SEBI regulates REITs, and you can buy or sell them just like any stock on NSE or BSE. India's REIT market is young but maturing fast. So far, we've had three listed office REITs — Embassy Office Parks, Mindspace Business Parks, and Brookfield India REIT. Knowledge Realty Trust is the fourth, and it comes in as the biggest yet, by Gross Asset Value ( ₹62,000 crore) and Net Operating Income ( ₹3,432 crore in FY25). It also promises a unique proposition — a highly diversified portfolio across six cities, with a sharp focus on India's three strongest office markets: Mumbai, Bengaluru, and Hyderabad. Nearly 96% of KRT's assets are in these three cities, which continue to lead the country in office demand and rental growth. So far, so good. But let's not gloss over the fact that REITs, like stocks, demand careful timing and entry. While they offer regular income, returns across the current 3 listed REITs have been varied — some as low as 8%, others closer to 13-14%. Just like a stock, buying a REIT at the right price and fair valuation matters. Also Read: Are REITs the stability your stock portfolio needs now? KRT's management claims their IPO is being offered at a discount. According to Ashish Mohta, Senior Managing Director, Blackstone, the NAV (Net Asset Value) is around 10% lower than current market value. In some cases, such as their One BKC property in Mumbai, the discount he insists is even deeper — nearly 30-35% lower than comparable strata sales in the area. If these numbers hold true, there's potentially value left on the table for new investors. One of the compelling features of KRT IPO is what's known as 'mark-to-market' potential. Many tenants have been in these buildings for years, paying rents negotiated five to ten years ago. As leases expire and are renewed at today's market rates, there's a chance to lift overall income significantly — as much as 20% according to management's estimates. Also Read: Sattva Group, Blackstone sponsored REIT raises ₹1,400 cr in pre-IPO round What About REITs' Performance? But here's where we have to get real. Historically, REITs in India haven't always passed on their full income growth to investors. Net Operating Income (NOI) may grow 8-10%, but dividend distributions — the money that actually lands in your bank account, have often grown just 2-3%. Why the disconnect? Shirish Godbole, CEO of KRT REIT, addressed this head-on in my conversation with the management. He insists that KRT will not only distribute 100% of available cash flows, but most of their projected growth is also already contracted, not speculative. 'We're confident that the 13% CAGR on net operating income, will be delivered,' he said, adding that over 60% of that growth is already locked in through signed deals. The REIT is projecting a starting yield of 7.2%, which it expects to rise to 7.7% or higher in the years ahead. Combine that with targeted annual growth of 13% in cash flows, and you're looking at a potential total return of 14–15%. That's what makes the proposition tempting, especially in this market where safe, predictable returns are hard to come by. Another point worth noting is KRT's relatively low debt level. With a Loan-to-Value (LTV) ratio of just 19%, the REIT has significant headroom to raise capital and acquire new assets — without diluting returns. This could be a real advantage in a competitive market where prime office properties are becoming harder to come by. Interestingly, KRT is positioning itself as India's first brand-agnostic REIT, open to acquiring high-quality assets from smaller developers and HNIs looking to monetise commercial properties without giving up their own branding. Sattva Group, the equal partner in Knowledge Realty Trust has already moved nearly 50% of its portfolio into the REIT and committed four additional buildings under ROFO (right of first refusal) agreements. But the real momentum, it appears, will come from this inclusive strategy. As Bijay Agarwal, Managing Director of Sattva Group puts it: 'This is strategy is designed to unlock value for developers and HNIs who've built commercial assets but lacked a clear, tax-efficient exit. It allows them to retain their own branding while benefiting from the institutional structure, stability, and yield of a REIT. That's the real differentiator.' That said, if Sattva and Blackstone were to move their own assets into KRT: will valuations be fair and add value for unitholders? Here too, the management's answer is measured. Godbole insists that the REIT will be disciplined in acquisitions, use third-party valuers, and ensure every deal adds to distributions per unit (DPU). With both Sattva Group and Blackstone holding substantial stakes, there is a system of checks and balances. 'We're here for the long run,' Ashish Mota said, emphasising Blackstone's decade-plus belief in India's office story. And that story is indeed powerful. India is now the GCC capital of the world, with a 58% global share. What began as back-end support has evolved into high-value functions in AI, robotics, design and digital transformation, with its vast English-speaking STEM qualified workforce. Office demand continues to be driven by this shift. Add to that India's unbeatable cost advantage: top-grade office rents in cities like Bengaluru, Hyderabad and Mumbai average $1–3 per square foot per month — versus $7–9 in London or $10–14 in midtown Manhattan. So yes, there's momentum behind India's office REITs. And on paper, KRT has the right ingredients to do well by your investment. If you're after long-term, stable income go ahead, apply to the IPO.
Mint
5 days ago
- Mint
₹200 crore to retire? How social media is making us all deluded about money.
I recently conducted a leadership workshop where I asked a group of 30-something middle managers, 'What is your FIRE number?" FIRE stands for 'financial independence, retire early', and your FIRE number is how much money you would need to retire right now. What's interesting is that the median answer was ₹200 crore. That got me thinking about how many people have unrealistic goals, and where else this kind of collective delusion shows up. Let's look at the most common areas. Investment myths Another common myth is related to the state of real estate in India. The popular narrative is buying property is a once-in-a-lifetime opportunity, and that there is huge demand and limited supply. But according to PropEquity, residential housing sales declined by 9% in 2024 compared to 2023. Only the super-premium segment seems to be growing and garnering all the media attention. According to Anarock, real estate inventory is still hovering around 12-16 months, which is considered a highly liquid market. If you can put aside the narrative and be patient, it's still a buyer's market. Similarly, many people believe the stock market is a magical place that gives you a 20% return every year. However, stock market returns are highly volatile and provide a return in line with India's nominal GDP, which is in the range of 9 - 12%. Futures & options is another space that many claim to have cracked. But according to a Sebi report, 93% of retail investors lost an average of ₹2 lakh each in FY22-24, for ca ollective loss of more than ₹1.8 trillion. Only 1% of individual traders managed to earn profit exceeding ₹1 lakh after adjusting for transaction costs. 'College is overrated' Another common delusion relates to education. There are stories of influencers who dropped out of college and now own a ₹40-crore business empire. The first thing to note is there is no way to verify such stories. Even if it were true, this would be an extreme outlier. A quality education from a tier-1 institute offers a good quality of life and a safety net to boot. True, social media is the main culprit behind these collective delusions. There are short videos in which unicorn founders speak eloquently about unit economics, scale and building a profitable business. Ironically, their unicorn businesses have never generated a rupee in profit or positive cash flow. There are also videos in which young people are asked how much they expect their future spouse to earn. Some proudly said, ' ₹100 crore a month." Somebody should ask them a follow-up question: 'How many zeros are there in 100 crore?" Such delusions are truly damaging to common sense. At the end of the day, we are all living in a bubble that represents 0.01% of India. It is important to step out and talk to regular people – your security guard, the person who sells you coconut water, or your auto driver – to realise basic common sense is worth much more than ₹200 Das is the author of 'How Business Storytelling Works' and 'Why your strategy sucks'.
Hans India
26-07-2025
- Hans India
Residential plot launches hit slow lane in Hyderabad
Hyderabad: New launches of housing plots have been more than halved in Hyderabad during a period of one year. The city based real estate developers have launched 20,902 residential plots in 2024 which was 54 per cent less when compared to 44,974 units launched in 2023, according to a report by property data analytics firm PropEquity. In 2023, Hyderabad was the top city across tier I and tier II cities in India with the highest number of residential plots launched, while it has become third in the list next to Indore and Chennai with 26,538 units and 22,745 units respectively in 2024. As per the report, nearly 4.7 lakh residential plots across the top 10 cities have been launched by developers between 2022 and 2025 (till May). Hyderabad, Bengaluru and Chennai were the only tier I cities that featured in the top 10 accounting for the supply of nearly 2.25 lakh residential plots or 48 per cent supply share. The realtors in the top seven tier II cities have supplied 2.43 lakh plots, accounting for 52 per cent share. In the first five months of 2025, 45,591 plots have been launched, which is 36 per cent of the supply in 2024. Samir Jasuja, CEO, PropEquity, said, 'The estimated launch value of the residential plots in top 10 tier I and II cities between 2022 and 2025 (May) is more than Rs. 2.44 lakh crore. The residential plots have emerged as a safe haven for investors looking at them for self-use or investment post-pandemic owing to their liquidity, faster appreciation and desire to customise their living space.' 'The residential plot market saw heightened interest since 2022 as investors chased higher returns and developers looked for quick cash flow. For developers, the residential plots generate quick cash flow as they involve faster sales and less upfront investment as compared to apartments. The demand for plots was quite pronounced in tier II cities and top southern cities,' he said. The CEO further said, 'As the demand for apartments/ floors/ villas has shown some signs of weakness in the first half of 2025, the shift of investment towards plots is very likely going forward. Bengaluru in tier I, and tier II cities like Indore, Raipur, Coimbatore and Mysore have seen robust price escalation in 2024.'
