+
Tier-2 realty developers receiving funds post-pandemic
Real Estate

Tier-2 realty developers receiving funds post-pandemic

Realtors told the media that developers in Tier-2 cities have started getting institutional funding after the Covid-19 pandemic hit housing and commercial space in smaller cities.

Developers, including Sushma Group, Bhumika, and Omaxe, which primarily have operations in Tier-2 cities, have recently received funding and will raise more funds for the next development phase.

Director and CEO of Motilal Oswal Real Estate (MORE), Sharad Mittal, said that with the increase in internet penetration, adoption of technology and the Covid-19 pandemic, Tier-2 cities are gradually increasing their contribution to the overall Gross Domestic Product (GDP) and real estate. The company will focus on investing in Tier-1 and Tier-2 cities.

MORE made a Rs 100 crore investment in a Chandigarh residential project with Sushma Group in the quarter ended on 31 March. The company will continue to explore such opportunities in the future. Till now, it has invested in more than 100 projects and obtained about 50 exits from Tier-1 cities.

Bhumika Group has recently raised about Rs 100 crore between debt and two Lease Rental Discounting (LRD) transactions. The company will fundraise another Rs 200 crore in debt to fund the construction of Phase-2 of its 3.5 lakh sq ft retail space in Udaipur mall.

Managing Director of Bhumika Group, Uddhav Poddar, said that the company is now getting a better rate of interest, and large funding institutions are interested in funding. Demand for organised retail has increased, with more projects being expected to execute. The developers will need funding to sustain the momentum.

Omaxe has recently raised Rs 440 crore from Varde Partners for expediting the construction and delivery of its projects and investment in new projects.

Most of the projects are in Tier-2 cities, present in 27 cities across eight states, including Uttar Pradesh, Madhya Pradesh, Punjab, Haryana, Uttarakhand, Rajasthan, Delhi, and Himachal Pradesh.

As per a report, private equity investment inflows in the Indian real estate sector stood at $1 billion during the first quarter (Q1) of 2022, almost five times the quantum recorded during the fourth quarter (Q4) of 2021.

Image Source

Also read: Budget 2022 focuses on new smart-tier 2-3 cities

Realtors told the media that developers in Tier-2 cities have started getting institutional funding after the Covid-19 pandemic hit housing and commercial space in smaller cities. Developers, including Sushma Group, Bhumika, and Omaxe, which primarily have operations in Tier-2 cities, have recently received funding and will raise more funds for the next development phase. Director and CEO of Motilal Oswal Real Estate (MORE), Sharad Mittal, said that with the increase in internet penetration, adoption of technology and the Covid-19 pandemic, Tier-2 cities are gradually increasing their contribution to the overall Gross Domestic Product (GDP) and real estate. The company will focus on investing in Tier-1 and Tier-2 cities. MORE made a Rs 100 crore investment in a Chandigarh residential project with Sushma Group in the quarter ended on 31 March. The company will continue to explore such opportunities in the future. Till now, it has invested in more than 100 projects and obtained about 50 exits from Tier-1 cities. Bhumika Group has recently raised about Rs 100 crore between debt and two Lease Rental Discounting (LRD) transactions. The company will fundraise another Rs 200 crore in debt to fund the construction of Phase-2 of its 3.5 lakh sq ft retail space in Udaipur mall. Managing Director of Bhumika Group, Uddhav Poddar, said that the company is now getting a better rate of interest, and large funding institutions are interested in funding. Demand for organised retail has increased, with more projects being expected to execute. The developers will need funding to sustain the momentum. Omaxe has recently raised Rs 440 crore from Varde Partners for expediting the construction and delivery of its projects and investment in new projects. Most of the projects are in Tier-2 cities, present in 27 cities across eight states, including Uttar Pradesh, Madhya Pradesh, Punjab, Haryana, Uttarakhand, Rajasthan, Delhi, and Himachal Pradesh. As per a report, private equity investment inflows in the Indian real estate sector stood at $1 billion during the first quarter (Q1) of 2022, almost five times the quantum recorded during the fourth quarter (Q4) of 2021. Image Source Also read: Budget 2022 focuses on new smart-tier 2-3 cities

Next Story
Real Estate

MoHUA Sanctions 1.47 Lakh Additional Houses Under PMAY-U 2.0

In a major push towards the Government’s Housing for All mission, the Ministry of Housing and Urban Affairs (MoHUA) has approved 1,46,582 additional pucca houses under Pradhan Mantri Awas Yojana – Urban 2.0 (PMAY-U 2.0) for 14 States/UTs, bringing total sanctions under the revamped scheme to 8.56 lakh.The decision came during the fourth meeting of the Central Sanctioning and Monitoring Committee (CSMC), chaired by Srinivas Katikithala, Secretary, MoHUA, at the Ministry’s Kasturba Gandhi Marg office. Senior officials, State Principal Secretaries, and PMAY-U Mission Directors participated ..

Next Story
Real Estate

Piyush Goyal Inaugurates Expanded ISA Building at Intellectual Property Office

Union Minister of Commerce and Industry, Piyush Goyal, today inaugurated the newly expanded International Searching Authority (ISA) building at the Intellectual Property Office (IPO) in Dwarka, New Delhi, marking a major step forward in India’s intellectual property ecosystem.Addressing the gathering, Goyal highlighted that innovation has been central to India’s heritage for centuries, citing the engineering brilliance of the Konark Temple as a historic example. He emphasised that innovation is not just intellectual property but a symbol of sovereignty, and a key driver in India’s journe..

Next Story
Real Estate

SIEGER Boosts Automation in Mumbai Realty

SIEGER, a leading automation solutions provider, is expanding its advanced manufacturing capabilities to meet the surging demand for precision, high-speed automation in Mumbai’s rapidly growing real estate sector.Operating from a 21,000 m² advanced production hub in Coimbatore—part of a 40,000 m² integrated campus—SIEGER offers complete solutions from design and prototyping to manufacturing and deployment. The fully digitalised facility features CNC machining, QR-coded component tracking, conveyorized powder coating, and a Government of India–certified R&D centre, ensuring unmatc..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?