Post on 24-Aug-2020
30-Aug-2019
CREDAI Bengal Daily News Update | 30.08.19
NRI EYE INDIAN PROPERTY MARKET AS A SAFE BET
GCC-based NRIs are investing heavily in the Indian property market with the rupee now
expected to touch Rs20 against UAE currency. India is increasingly perceived as a safe haven
for Indian expatriates.
A fluctuating rupee, and introduction of various regulations to bring in transparency and
accountability, are making real estate more lucrative for NRIs, experts say.
Rupee is hovering near 73 against the US dollar since the past one week. "The drop in rupee can be
seen as an investment opportunity for individual buyers as well as institutional investors. Over the
past few months we have witnessed a lot of interest from NRIs. This trend continues to grow stronger
due to the timely reforms introduced that brought transparency and accountability in the sector," said
Anshuman Magazine, CBRE Chairman, India, Southeast Asia, Middle East and Africa.
With the real estate industry estimated at about Rs3 trillion annually, about seven to eight per cent of
the inventory is being bought and held by NRIs each year.
"This amounts to about Rs21,000-30,000 crore of annual purchases by NRIs each year. Due to
weaker rupee, a 10 per cent depreciation allows NRIs to enter at a 10 per cent discount compared to
the domestic resident counter parts," Nisus Finance Managing Director and CEO Amit Goenka
added.
Given the current trend of enquiries and purchases in the last two-three months, it is being estimated
that this consumption will rise to about 10-12 per cent.
"Hence three to five per cent increase in NRI consumption of residential and commercial inventory
will further boost project sales and suck up significant unsold inventory," Goenka maintained.
According to Naredco national president Niranjan Hiranandani, for NRIs, this situation (rupee fall) is
a déjà vu of sorts as it is the same as the scenario the country witnessed in 2012.
"Home buying is regaining traction and RERA has made it better and in a situation where property
prices at primary level are down by 10-15 per cent, and the currency valuation adds another 10-15
Newspaper/Online Khaleej Times (online)
Date August 29, 2019
Link https://www.khaleejtimes.com/nris-eye-indian-property-market-as-a-safe-bet
per cent, it definitely is a scenario where the NRI buyer is back," he added.
Property portal Zvesta.com's founder Rajat Dang seconded that, saying fall in the rupee will
definitely boost the demand of properties in India and NRIs are willing to invest in realty market
especially in the metro cities to get good returns.
"Online property aggregators are also getting much benefit through this with their increase in traffic
numbers from day to day. NRIs are easily searching for the best properties in India with having a
golden opportunity to buy it at an affordable price," he added.
Omkar Realtors, which is marketing its recently launched integrated realty project 'Sereno OID' in
Andheri in the suburban Mumbai in both domestic and global markets, has received almost 100
bookings from NRIs, which is 20 per cent of total inventory, averaging a total cost of Rs125 crore,
into its project.
"For NRIs, depreciating Indian rupee seems to be encouraging further investments back home in a
property due to lesser dependence on finance and lesser outgo of EMI," Omkar Realtors' Director
Devang Verma said.
"We see investment interest bouncing back as expat Indians are not only keen on purchasing a home
in their homeland, but have also shown an increased interest in purchasing purely for investment
purposes," he said.
Over the years, NRIs have expanded their foothold in the primary Indian housing market. Currently,
it is estimated that almost a quarter of the purchase are emanating from the NRI sphere.
Amongst the NRI source market, the GCC region has a lion's share constituting around 46 per cent of
the investments. Out of the estimated $12.5 billion to be invested in financial year 2019-2020, GCC
based NRIs are expected to contribute around $5.75 billion. This will be up by 15 per cent when
compared to the year before. A major portion of the investments is directed towards major Indian
metropolises such as Mumbai, Delhi-NCR, Hyderabad, Bengaluru, and Pune, etc.
As per the World Bank estimates, in 2019, the GCC region is expected to grow by 2.1 per cent,
inching up from two per cent growth in 2018. There have been laudable efforts by the GCC
economies towards economic diversification.
"NRIs are now preferring to buy a home in India. As property prices are viable and the market is well
regulated now, buying a home in India is perceived as a risk-mitigating step," said Ankit Kansal,
Founder & MD, 360 Realtors.
360 Realtors is one of the first Indian Real Estate advisories that has a very extensive ground-
presence across the region. It has offices in almost all the major Indian cities in the GCC region.
Around 30 per cent of its revenues come from the GCC region.
NRI inflow into India will continue to rise in the times to come. The expats will look into a range of
property options from smaller units such as studio & 1 BHK to the larger units such as 3 & 4 BHK.
The surge in GCC-based NRI investments will stem from a host of factors such as growing
contingencies in the region, formalisation in Indian property market & affordable property options.
As RERA has been enforced in India, the market is now transparent & very well regulated, thereby
resulting in a spurt in NRI confidence levels. Price options are also affordable, which will be a force
multiplier.
Investment by NRIs in domestic property market is from $5 billion in 2014 to $10.2 billion in 2018
and the market is expected to touch $180 billion by 2020.
"Being the hub for Bollywood celebrities, Transcon Developers' Uber Luxury project 'Transcon
Triumph' at Andheri West has seen an upsurge in sales from NRI's residing in Dubai and GCC. This
year the NRI investments in the project were seen at 18 per cent at Rs30 crore as compared to 8 per
cent at Rs11 crore last year," said Sarojini Ahuja -- VP, Sales & Marketing, Transcon Triumph.
In the recently concluded budget, the Government proposed NRI portfolio investment route to be
merged with foreign portfolio investment route. This will lead to increase in NRI investments in
Indian capital market.
The decision to allow foreign institutional investors to subscribe to REITS and INVITs is also a
welcome move.
The Government has also proposed to relax local sourcing norms for FDI. FDI in real estate will
provide a significant boost to the sector in terms of greater foreign capital inflows thus creating more
job opportunities and revitalising the growth of the realty sector.
BKC sees newer residential developments in the luxury budget category eyeing high rental income
As India's financial capital Mumbai sees the emergence of Bandra Kurla Complex (BKC) as the
premier Central Business District (CBD), the residential demand from the corporates in this micro
market is witnessing a spiraling effect.
The micro market is transforming parallel in terms of growing social infrastructure, be it healthcare
adding newer hospitals, consulates, international educational institutions, public facilities such as
gardens and entertainment and cultural zones, along with new transport system being the metro
network. BKC's all-round development seen in the last years has transformed this commercial zone
into a mixed-use zone - a simple live-work space.
This centrally located business-cum-leisure hub in India's financial capital now boast of corporates,
banks, blue-chip companies, government, banks, foreign firms, consulates have made BKC as their
address in Mumbai has witnessed a growth of more than 300 per cent in just over a decade's time.
Today, BKC has become the most sought-after destination for commercial and housing requirement
making it second most expensive office market in India and 20th in the world. This had led to
property rates touching a whopping Rs32,000 to Rs35,000 per square foot for office space while the
residential space is pegged Rs28,000 to Rs30,000 per sq ft, while the rentals yields are pegged at
Rs75-100 per square foot again depending on the location in and bordering BKC.
BKC's residential rental YoY income is appreciating by 10 per cent per cent plus annually as the
location sees the advent of domestic corporate migration and arrival of expats.
"The commercial success of BKC has put tremendous pressure on the housing demand within
bordering and surrounding areas as India's younger corporates prefer a "Walk to Work" concept in a
congested city like Mumbai, remarks Babulal Varma, Managing Director (MD), Omkar Realtors &
Developers which has developed two boutique luxury residential projects off BKC.
Leading developers such as Omkar Realtors, Sunteck Realty, Radius, Wadhwa, Rustomjee, Kanakia
have introduced luxury residences in and around BKC to cater to the rising need of apartments be it
outright or on rental for corporates and their workforce. Omkar Realtors project VIVE located across
the road to BKC is an HBA-designed, furnished and fully equipped luxurious apartments project
offering 1&2 BHK Plug & Live apartments.
"BKC today is in a clear race to offer a corporate lifestyle and living comparable to global finance
hubs be it Singapore, Hong Kong or Shanghai, from the perspective of safety, convenience,
infrastructure, leisure, hospitality, etc. It is the preferred location for all MNCs and Fortune 500
companies entering India or looking to shift to a bigger setup. BKC is seeing a visible enhancement
in the number of space requirements being floated with most of them coming in from the Fortune
500 clients," said Navin Makhija, Managing Director of The Wadhwa Group.
BKC, as a financial, commercial and retail central hub make it as a perfect destination to experience
a global lifestyle. It has spawned an immediate surge for premium lifestyle in and around the
commercial hub. Adding to this is the much favoured 'Walk-to-Work' lifestyle preferred by the new-
gen millennial, making it a hub with millions of professionals involved on a daily run is seeing a
surge in rental income, says Himanshu Kanakia, Managing Director, Kanakia Group for the story.
According to leading IPC's and realty channel partners closely following the BKC growth story over
the years, the residential supply to cater to the BKC need is surely falling behind with its limited
quality inventory. And this puts lease rentals at an advantage over other prime markets in Mumbai.
"In terms of lease rental itself, the limited inventory available in BKC micro market has a distinct 15-
20 per cent markup compared to the current prevailing trend in other markets," points out a leading
channel partner.
Ashutosh Limaye, director and head-consultancy services at Anarock Property Consultants, said:
"The real estate market has seen many phases. Of late, due to the slow down there has been a shift to
buyers' market from investors market. The market will continue to remain a buyer's market for a few
months more. A small component of it is investors who are looking at duel objective of making it
their own home after some years and earning rents in the interim."
'Investors- end users' is a new category of buyers taking shape and growing. There is also a category
of 'end users-sellers'. This is typically a small town/ district located rich buyer a house in metros for
his children to live while studying, and selling it off after the studies are over.
In the case of investors, they were traditionally investing in mid segment and luxury market due to
price appreciation. Fence sitting investors are looking at buying resale houses that have a chance of
redevelopment and making the returns after redevelopment.
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Newspaper/Online The Times of India
Date August 29, 2019
Government’s booster dose for automobile industry to lift affordable
housing
The automobile sector workforce is one of the biggest drivers of affordable housing segment
with homes priced below ₹40 lakh in the country.
The government‘s slew of measures to revive various sectors, including the automobile industry,
isn‘t just a booster shot for these industries‘ stakeholders. It will curtail the deeper impact of the
slump on other sectors, including housing.
In less than a year, car and two-wheeler sales sunk to historic lows while job cuts in the industry
breached historic highs. Unfortunately, the Indian auto industry‘s rough ride through its biggest-ever
crisis in decades also has a spill-over impact on other industries like real estate,
specifically affordable housing.
The automobile sector workforce is one of the biggest drivers of affordable housing segment with
homes priced below ₹40 lakh in the country.
―A crisis in the automobile sector creates a significant perception of job risk, which causes this key
clientele to desist from home-buying decisions. It now seems that the government has averted the
further escalation of the automobile sector crisis by giving a new lease of life to the various sectors,
including automobile and MSMEs,‖ said Prashant Thakur,Prashant Thakur, Director & Head –
Research, ANAROCK Property Consultants.
While the automobile crisis would not have caused affordable housing sales to come to a screeching
halt, sales would definitely shift into low gear. Last year, affordable housing sales in three major
hubs including Pune, Chennai and the National Capital Region were firing on all cylinders.
Overall affordable housing sales in Pune, Chennai and NCR combined have been on the rise since
2017 - these cities together saw sales of over 32,000 units priced at or below ₹40 lakh in 2017. Sales
increased by 18% to nearly 37,800 units in 2018. In the first half of 2019, more than 27,000
affordable homes were sold in these three cities, showed data from ANAROCK.
―In a short span of announcing the Union Budget, the government has acted to ensure that various
industries receive the much-needed support just ahead of festival season. Any move after this may
have resulted in disaster. We are optimistic that the upcoming festival season will bring good demand
for affordable housing,‖ said Jaxay Shah, National Chairman, the Confederation of Real Estate
Developers Association of India (CREDAI).
Newspaper/Online ET Realty (online)
Date August 29, 2019
Link https://realty.economictimes.indiatimes.com/news/industry/governments-booster-dose-for-automobile-industry-to-lift-affordable-housing/70889908
In a bid to boost economic growth, the government last week announced series of measures,
including a package to tackle auto sector distress, upfront infusion of ₹70,000 crore to public sector
banks, lifting credit flow and prompt lower rates for housing and auto loans.
Among the three cities NCR has the largest pile-up of unsold budget homes with around 67,250
units. The Gurugram-Manesar belt is home to two automotive giants - Maruti Suzuki India and one
unit each of Hero MotoCorp and Honda Motorcycle and Scooters India. Pune has nearly 46,360
unsold units priced within Rs 40 lakhs, while Chennai has just 10,590 units.
According to Thakur, had it not been for the incumbent government's determined interventions to
make affordable housing the 'new black', the residential sector faced the prospect of a rather deep
implosion.
Due to the inevitable symbiosis between the automobile crisis and the real estate slowdown,
affordable housing - the industry's 'poster child' in recent times - could have faced a backlash. Both
these industry slowdowns are the product of dampened consumption sentiment, and there was a dire
need for a slew of solutions.
According to industry experts, the government has made its move in the nick of time, intervening
directly or indirectly for various industries. The Finance Ministry‘s much needed boost to the
slowing economy gives affordable housing developers in these three cities to get off ‗red alert‘ and
focus on marketing their offerings in the all-important festive season.
___________________________________________________________________
Mhada to give permission for redevelopment of cessed buildings in
Mumbai
Mhada will also be the SPA for all cluster redevelopment projects in the island city if the
cluster includes cessed and non-cessed buildings.
The Maharashtra Housing Area Development Authority (Mhada) will now be the special planning
authority (SPA) for redevelopment of all cessed buildings in the island city.
Mhada will now be empowered to sanction building permissions for cessed structures instead of
the BMC.
Mhada will also be the SPA for all cluster redevelopment projects in the island city if the cluster
includes cessed and non-cessed buildings.
The cabinet on Wednesday gave its approval to a proposal to take away from the BMC the powers to
grant redevelopment permission in such cases and give it to Mhada.
―In areas like Dongri and Pydhonie there are numerous buildings in close proximity to one another
and redevelopment of a single building was simply not possible,‖ vice-president of Mhada Milind
Mhaiskar said.
Mhaiskar said the authority would focus on old and dilapidated buildings that have been taken up for
redevelopment and left midway by developers as the projects became financially unviable.
Also once a building is declared as old and dilapidated residents will be allowed six months to
appoint a developer. In case they fail to do so, Mhada will acquire the land and carry out the
redevelopment.
Activists greeted the move with caution, saying there was a danger that buildings that are old but
wellmaintained may also be declared old and dilapidated if they are in prime areas.
Mhaiskar said the cost of acquisition was now accepted as 25% of the ready reckoner rate as the land
is encumbered and landlords are unable to get them vacated.
While Mhaiskar claimed that acquisition cost would not be an issue, in the past Mhada has refused to
take up redevelopment of cessed buildings saying it did not have the funds for land acquisition.
Newspaper/Online ET Realty (online)
Date August 29, 2019
Link https://realty.economictimes.indiatimes.com/news/industry/mumbai-mhada-to-clear-cessed-building-redevelopment/70891691
Cluster redevelopment is the solution for crowded areas like Dongri and Pydhonie, where there are
illegal buildings spread around the area as well.
In areas like Walkeshwar, Marine Drive and Opera House, where there is space around buildings,
Mhada will carry out redevelopment of single buildings, said Mhaiskar.
___________________________________________________________________
DHFL lenders plan to put builders' loan worth Rs 32,000 crore in SPVs
These special purpose vehicles (SPVs) could also work like pooled entities, such as alternative
investment funds (AIFs), said multiple people aware of the discussions over a debt resolution
plan for DHFL.
Lenders to Dewan Housing Finance Corporation Ltd (DHFL) are considering hiving off a chunk of
the mortgage firm‘s loans outstanding from builders and transferring that to companies created
specifically to hold the debt.
These special purpose vehicles (SPVs) could also work like pooled entities, such as alternative
investment funds (AIFs), said multiple people aware of the discussions over a debt resolution plan
for DHFL.
Under such an arrangement, DHFL‘s lenders will transfer as much as Rs 30,000-32,000 crore of its
Rs 42,000 crore wholesale loans outstanding to the SPVs. If they go ahead with this plan, DHFL will
become a predominantly retail-focussed shadow bank with a much lighter balance sheet, making it
easier for its lenders to rope in a strategic partner.
They are currently evaluating the ownership structure of the SPVs, which may even house a project
each, and the process by which they will enforce the conditions on the loans given by DHFL, the
people said.
Development managers are expected to be appointed for each project to complete the work. DHFL‘s
lenders will get paid from the cash flows of the SPVs, after servicing fees to the development
managers and servicing of any additional debt infused in the projects for their completion.
The new development managers will infuse fresh funds either through equity or fresh working capital
loans, kickstart the stuck real estate projects and generate cash flows through the sale of the
inventory to pay back the loans, the people said.
Cash Flow Beneficiaries
DHFL and SBI didn‘t respond to emails until press time Thursday. AIF is a trust like structure where
the collection of the debt extended by DHFL to the wholesale book will happen and the lenders will
be serviced out of that, the people aware of the discussions said.
The SPV or the AIF is expected to be the beneficiary of all future cash flows — the repayment of
Newspaper/Online ET Realty (online)
Date August 30, 2019
Link https://realty.economictimes.indiatimes.com/news/allied-industries/dhfl-lenders-plan-to-put-builders-loan-worth-rs-32000-crore-in-spvs/70902344
loans given to the projects. They will distribute the proceeds to the unit holders or the banks. The
idea is to create a legally tenable structure that gives the lenders a direct access to the underlying real
estate assets and its cash flows.
The lenders have been in discussions with business groups with interests in real estate, such as the
Adani, Tata, Piramal groups, to come on board as the development managers of the projects and
complete those in lieu of a development management fee.
The Adani Group is expected to pick up several of the projects, the people said.Emails to the Adani
and Tata groups did not generate a response. The Piramal Group called the news speculation, and
declined to comment further.
Although the lenders are pushing for one manager for each project, there could also be multiple
managers roped in, each managing a cluster. According to the people ET spoke to, to facilitate the
new asset managers to complete the projects and help servicing the debt obligations, the security or
the collateral (land, FSI approvals, etc.) for the underlying assets against which loans are outstanding
will be enforced. This will also help ringfence the development manager from any future legal
challenges.
This step is likely to follow an immediate intervention whereby lenders are looking to take a 51%
stake in the company by converting a part of the debt into equity at par and facilitating a change of
management.
DHFL‘s board is scheduled to meet on Friday, where it would consider a proposal for issuance of
equity shares and other securities, including by way of preferential issue, against debt as part of a
resolution plan.
The company had borrowed from banks, mutual funds, insurers and retail depositors to bankroll
realty projects which subsequently got stuck. An official said an AIFlike structure would suit the
lenders and project managers. ―AIF is a trustee structure. The assets move but not the liabilities.
They are payable when able. In any other structure like an NBFC, the debt liabilities will also move
and the new manger will have to honour these obligations,‖ said the official. ―An AIF manager is not
borrowing; he is managing as a trustee. Unit holders will economically benefit.‖
___________________________________________________________________
New property cards for flat owners across Maharashtra
The Maharashtra cabinet on Wednesday cleared the “vertical property rules” to create a
database of all flats, buildings and commercial complexes in a bid to check fraudulent
transactions.
All flat owners in the state will soon get supplementary property cards, which will have details such
as carpet area, amenity space and bank loan information, along with their 7/12 extracts.
The Maharashtra cabinet on Wednesday cleared the ―vertical property rules‖ to create a database of
all flats, buildings and commercial complexes in a bid to check fraudulent transactions. ―The cabinet
will now put up the draft for suggestions and objections,‖ a senior government official said.
The Settlement Commissionerate and Directorate of Land Records had been pushing the proposal to
ensure that city survey offices in urban areas and collectorates in the rural belt have detailed records
of all vertical properties — flats, buildings and commercial complexes.
At present, Maharashtra has nearly 56 lakh property cards in urban areas and about 2.5 crore 7/12
extracts in the rural belt with details of the horizontal properties.
―This will be a path breaking initiative. The vertical property rules, cleared by the state cabinet, will
help create property records for all flats. This may be the first-of-its-kind initiative in the country,‖
settlement commissioner and director of land records S Chockalingam told TOI.
―The proposal will provide buyers and sellers, as well as government departments, with firm
ownership records. This will also protect the property owners‘ rights,‖ he said.
Chockalingam said the ―vertical property rules‖ would prevent property-related frauds, where one
flat or commercial unit is sold or mortgaged to multiple buyers or financial institutions. ―The
commissionerate had sent a proposal to the state government to formulate the Maharashtra Land
Revenue Record of Rights and Registers for Apartments and Buildings rules under the Maharashtra
Land Revenue Code (MLRC), 1966,‖ he said.
Department officials said that at present, no government department maintained ownership records of
vertical properties because the evidence of ownership has to be proved through a chain of documents,
such as agreements with builders or society records.
A senior official said, ―With the new development, the present property cards of 7/12 extracts will
become the principal documents of ownership. Besides, there will be an additional supplementary
property card. Both the cards will be issued together.‖
Newspaper/Online ET Realty (online)
Date August 29, 2019
Link https://realty.economictimes.indiatimes.com/news/residential/new-property-cards-for-flat-owners-across-maharashtra/70888652
Once the rules are approved, the department will launch pilot projects separately in the urban and
rural areas. ―The respective offices will have to conduct a survey by visiting each individual
building. It will be initially difficult, as the entire process will be manual. We will eventually work
out a mechanism to update the details online,‖ he said.
__________________________________________________________________
FAR may be revised in Gurugram in two months: Haryana CM
Since the assembly elections are likely to take place in mid-October, the decision may be taken
only after it.
A decision to revise the city‘s floor area ratio (FAR) will be taken by the state government in next
two months, said chief minister Manohar Lal Khattar on Wednesday. His assurance comes amid
growing demand by realtors for a revision in FAR.
Since the assembly elections are likely to take place in mid-October, the decision may be taken only
after it. The CM was addressing a gathering during an event organised by Gurugram Home
Developers and Plot Holders Association on Wednesday.
―If the demand for increasing FAR were raised on the day when construction of fourth floor was
allowed, it would have been resolved on the same day. We have been working for the development
of Gurugram, and have received immense support from the developers. Now if you continue to
support us, the pace of development in Gurugram can be doubled,‖ Khattar said.
The demand to increase FAR was raised by developers in the city after the government allowed the
construction of fourth floor. The existing FAR in Gurugram is 1.98. Developers in the city want the
government to increase it to 3. I
f FAR is increased, plot owners will be able to construct and occupy more area on their land. As per
existing norms, where FAR is 1.98, the plot owner can construct on around 66% of the area. If FAR
is revised to 3, this can increase to around 80%.
Elaborating on the state‘s performance in ease of living and doing business, the CM claimed
that Haryana‘s performance graph is unmatchable. ―Building multiple storeys on smaller plots is not
a good idea. The decision to increase FAR would still take two more months, and I would request all
not to violate the norms till the final decision is taken.‖
Moreover, the realtors‘ association has welcomed the announcement by the CM and hopes the
decision would be in its favour.
―The CM was here, and he has assured that the decision on revision of FAR will be taken in two
months. The government will constitute a committee and take a decision in our favour,‖ said Ramesh
Singla, president, Gurugram Home Developers and Plot Holders Association.
___________________________________________________________________
Newspaper/Online ET Realty (online)
Date August 29, 2019
Link https://realty.economictimes.indiatimes.com/news/industry/far-may-be-revised-in-gurugram-in-two-months-haryana-cm/70892261
Jaipur development body to auction plots from September
In the past, the civic body failed to earn revenue after selling its plots.
As the real estate market is reviving gradually and demand for Jaipur Development Authority‘s
commercial and residential property is slowly increasing, the civic body has decided to organise
auctions from September.
Unlike the present system of auctioning one property a day, the JDA has equipped itself to sell
multiple properties in a day. A senior JDA official said , ―To expedite and simplify the process, we
have opened four counters. The details of the properties that will be auctioned will be uploaded on
the JDA website.‖
In the past, the civic body failed to earn revenue after selling its plots. JDA‘s projects is staring at an
uncertain future as civic body coffers are drying fast at a time when it has projects worth more than
Rs 2,500 crore in its kitty. The situation has turned worse due to prolonged slump in the real estate
market.
According to official sources, in the absence of inflow of funds, it was a challenge to complete these
projects. ―Hoping to fill its coffers, the JDA recently launched three new housing schemes. However,
not many buyers showed interest to purchase plots in JDA schemes. Auctioning its prime land was
the only option to earn revenue. However, it is a challenging task, too,‖ said a source.
The craze that was witnessed among buyers to purchase shops at the newly constructed SMS
Hospital underpass faded just after JDA increased the base price for auction.
Source said, ―At SMS underpass, JDA has constructed 21 shops. So far, three shops have been sold.
But in the last four auctions, not a single bidder participated in the process. Moreover, buyers who
purchased shops are not coming forward to deposit the entire amount.‖
___________________________________________________________________
Newspaper/Online ET Realty (online)
Date August 29, 2019
Link https://realty.economictimes.indiatimes.com/news/industry/jaipur-development-body-to-auction-plots-from-september/70889531
Goa: Ports minister assures relief for seven houses on GTDC land
During an inspection of the area, Lobo told reporters that seven houses exist on land that was
acquired by the government from a local landlord in 1976 to create tourism-related
infrastructure.
The long-pending issue of tenants living on land belonging to the Goa Tourism Development
Corporation (GTDC) at Saunta Vaddo, Calangute, will be resolved soon, ports minister Michael
Lobo and GTDC chairman Dayanand Sopte said on Wednesday.
During an inspection of the area, Lobo told reporters that seven houses exist on land that was
acquired by the government from a local landlord in 1976 to create tourism-related infrastructure.
The seven households have been struggling since then to hold on to their part of the land, with the
matter moving through various courts for decades.
In recent years, the GTDC developed public toilets and parking facilities on the land in its
possession. But the land on which the seven houses are located remained disputed.
Lobo said a final settlement was imminent following Wednesday‘s visit by the GTDC chairman.
―The seven houses that are in a dilapidated condition can soon be repaired and renovated. They will
be separated from the rest of the GTDC property by a compound wall,‖ Lobo said.
Sopte said the issue had dragged on for many years and needed to be resolved. ―They (tenants) have
not got what is rightfully theirs. We‘re working on a final solution to this issue,‖ he said.
__________________________________________________________________
Newspaper/Online ET Realty (online)
Date August 29, 2019
Link https://realty.economictimes.indiatimes.com/news/residential/goa-ports-minister-assures-relief-for-seven-houses-on-gtdc-land/70891871
TNSCB invites consultants for housing project in Chennai
TNSCB has applied for financing from the World Bank to meet the cost of the project.
Tamil Nadu Slum Clearance Board (TNSCB) has invited applications for consulting services in the
roles of gender specialist, communication specialist and procurement consultant for its Tamil
Nadu Housing and Habitat Development Project.
TNSCB has applied for financing from the World Bank to meet the cost of the project.
The last date for the submission of expression of interest (EOI) is September 16 (till 5.45pm).
EOI shall be sent to the superintending engineer, project monitoring unit- Tamil Nadu Housing and
Habitat Development Project, TNSCB, Chennai.
___________________________________________________________________
Newspaper/Online ET Realty (online)
Date August 29, 2019
Link https://realty.economictimes.indiatimes.com/news/residential/tnscb-invites-consultants-for-housing-project-in-chennai/70885095
Revised Kanpur metro plan spares GSVM buildings
The new drawing of Metro alignment has been provided to the medical college authorities by
UPMRC, which will carry out the construction work, college authorities told TOI on
Wednesday.
The alignment of Kanpur Metro at GSVM Medical College and its associated Lala Lajpat Rai (LLR)
hospital has been changed to avoid demolishing a portion of the newly constructed reception
complex on the hospital campus. The new alignment also spares the oxygen plant and canteen on the
hospital campus, which were to be shifted for the Metro project.
The new drawing of Metro alignment has been provided to the medical college authorities
by UPMRC, which will carry out the construction work, college authorities told TOI on Wednesday.
The shifting of the oxygen plant, according to the medical college authorities, would have affected
medical and emergency services. The college authorities at a meeting chaired by principal secretary
(housing & urban planning department) Deepak Kumar last week, had put forth their objections
against the Metro alignment (route), mentioning in detail how it would impact the medical services.
It was then decided to review the existing alignment and look for an alternative so that the medical
services were not affected. A team of UPMRC along with officials of Kanpur Development
Authority (KDA) reviewed the alignment and found possibilities of change in the alignment. A new
alignment was then proposed, which is now acceptable to the medical college administration.
Dr RK Maurya of GSVM Medical College, who represented the college at the meeting held last
week, said that the college administration received the new drawing of the Metro alignment on
Monday and this new alignment was acceptable to it.
Dr Maurya, who holds the charge of superintendent-in-chief (SIC) of LLR Hospital, said, ―Now, we
don‘t have any objection to the new Metro alignment since all our facilities — reception complex,
emergency block, canteen and liquid oxygen plant — would not be touched and remain intact. When
the Metro work is carried out in our vicinity, some portion of our boundary wall would be
demolished but we are okay with it. We will face some hardships due to the work, but are ready to
contribute our bit for a good cause.‖
―When the Metro work would be carried out close to the hospital boundary wall, we will have to
provide an alternate route to the patients and their attendants so that they can easily reach the hospital
without facing any hiccup. This will be required as our main entrance route would be affected by the
construction work,‖ he added.
In the first phase, Kanpur Metro would run between IIT and Motijheel in Swaroop Nagar. All nine
Newspaper/Online ET Realty (online)
Date August 29, 2019
Link https://realty.economictimes.indiatimes.com/news/residential/revised-kanpur-metro-plan-spares-gsvm-buildings/70897251
stations on this route will run overground. The construction work is expected to begin in October and
is likely to be completed by December 2021.
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Tamil Nadu eases permission procedures for construction of small
houses
The Tamil Nadu government issued an order to this effect, which was made public on
Wednesday.
Planning to construct a house within 1200 square feet built up area? You may need to just apply
online seeking planning permissionand commence constructions.
The Tamil Nadu government issued an order to this effect, which was made public on Wednesday.
The order of the municipal administration and water supply department dated August 21, 2019 said
that the new exemption to ease the planning permission procedures for smaller constructions can be
utilised for constructions that are carried out in an area within 2500 square feet with built up area
under 1200 square feet.
While applications for planning permissions can be filed online, the existing process of physical
inspection by officials from the respective local bodies at the construction site has been kept aside for
such constructions.
Constructions will be allowed only on approved plots.
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Newspaper/Online ET Realty (online)
Date August 29, 2019
Link https://realty.economictimes.indiatimes.com/news/residential/tamil-nadu-eases-permission-procedures-for-construction-of-small-houses/70892157
Maharashtra cabinet approves Nashik metro project worth Rs 2,100
crore
The Central and state governments will together pitch in Rs 939.3 crore for the Rs 2,100.06-
crore project. The MahaMetro will raise the remaining Rs 1,161.3 crore through loans.
The state cabinet on Wednesday gave its approval to the Nashik Metro‘s detailed project report
(DPR), which was prepared by the MahaMetro.
The DPR will now be sent to the Centre for its final nod. The project will be known as ‗Nashik
Metro Neo‘.
The Central and state governments will together pitch in Rs 939.3 crore for the Rs 2,100.06-crore
project. The MahaMetro will raise the remaining Rs 1,161.3 crore through loans.
While the Centre‘s share is Rs 387 crore, the state government‘s share (including Cidco and NMC) is
Rs 552.19 crore. The NMC‘s contribution will come in the form of land for three depots.
―The state cabinet has given its nod to the Nashik Metro Neo project. It‘s a milestone and proud
moment for the Nashik city. We will now submit the proposal to the ministry of housing and urban
affairs (MOHUA). We will immediately start work on the project once we get MOHUA‘s nod,‖ said
Brijesh Dixit, the MD of MahaMetro.
Swanky rubber-tyred coaches would run on two elevated corridors covering 32 km — with a total of
25 stations.
Two corridors have been planned initially. Corridor one will stretch from Gangapur to Mumbai Naka
covering a length of 10 km. This stretch will have 10 stations. Corridor two, meanwhile, will be from
Gangapur to Nashik Road, covering 22 km and 15 stations.
CBS will be an interchange station where both the corridors meet. There will be two feeder corridors.
Feeder corridor one will cover Satpur colony-Garware-Mumbai Naka stretch, while feeder corridor
two will run cover Nashik Road-Nandur Naka-Shivaji Nagar.
The electric bus coaches will be 25m and 18m in length and they will have carrying capacity of 200
and 300 passengers, respectively. The buses will have rubber tyres and draw power from the
overhead electric wire having 600-750 V DC supply.
The buses will be air-conditioned with automatic door closing system, level boarding, comfortable
seats, passenger announcement and passenger information systems with electronic display.
Newspaper/Online ET Realty (online)
Date August 29, 2019
Link https://realty.economictimes.indiatimes.com/news/infrastructure/maharashtra-cabinet-approves-nashik-metro-project-worth-rs-2100-crore/70891117
The stations will have staircases, lifts and escalators with passenger information displays. The station
entries and exits will be on both sides of roads.
The three depots, which are to be developed for bus operation and maintenance, will be located at the
starting and endpoints of the routes.
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Analysts expect Ramco Cement's EPS to rise 35-50%
On enhanced capacity, Ramco Cements is expected to see volume growth in the range of 8-15
per cent for the next two years.
The Ramco Cements could surprise the Street on earnings per share (EPS) gains, and odds are
shortening on the mid-sized cement maker beating estimates of linear profit growth.
At the vanguard of that effort is cost control when growth, particularly in peninsular India, was rather
uneven. This provided an edge relative to peers. Ramco was circumspect with capacity expansion
and instead focused on improving cash-flows.
As a result, Ramco‘s debt to EBITDA (operating profit before tax) ratio fell from its peak range of 3-
5 to 1.5 in FY19. By implementing this strategy, the company has achieved capacity utilisation of 90
per cent in FY19 on integrated capacity. This is higher than the industry's capacity utilisation of 67
per cent.
At such elevated utilisation level and well-managed balance sheet, Ramco is now seeking to add
capacity by 45 per cent to 20 million tonnes in the next two years.
On enhanced capacity, Ramco Cements is expected to see volume growth in the range of 8-15 per
cent for the next two years.
Newspaper/Online ET Realty (online)
Date August 29, 2019
Link https://realty.economictimes.indiatimes.com/news/allied-industries/analysts-expect-ramco-cements-eps-to-rise-35-50/70891593
This growth range would be little lower than that for sector leader UltraTech Cement.
With increasing expectations of stable demand growth of 5-6 per cent in the second half of the
present fiscal, Ramco‘s enhanced capacity should boost its earnings from selling per tonne of
cement.
Ramco Cement is expected to benefit from stable demand in the eastern region, which would offset
any volatility in demand in the southern markets.
In FY18, the company generated EBITDA per tonne of Rs 1,129, which fell to Rs 921 in FY19.
Analysts expect the company's EBIDTA per tonne to improve to Rs 1,100-1,200 range in the next
two years due to the expansion.
More importantly, cement realisations could improve in the range of 3-4 per cent for the next two
fiscals.
Given these factors, according to various estimates, Ramco‘s EPS in the next two years is expected
to improve in the range of 35-50 per cent.
On the valuation front, considering one-year forward earnings, the company is trading at an
EV/EBITDA of 13.3, which is at a premium to its peers due to its size, high capacity utilisation and
low cost.
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Johnson Lifts sets sights on government deals to maintain growth
The closely held Chennai based company has bagged tenders worth ₹250 crore for providing
lifts and escalators for multiple phases of the Mumbai Metro project, which is currently under
construction.
Johnson Lifts, India‘s largest elevator and escalator maker, is eyeing government projects including
metro projects and modernisation of railway stations to maintain growth amid continuing slowdown
in the real estate sector as it aims to double its sales by 2025.
The closely held Chennai based company has bagged tenders worth ₹250 crore for providing lifts
and escalators for multiple phases of the Mumbai Metro project, which is currently under
construction.
It has also won orders totalling ₹120 crore for modernisation of railway stations falling under
Western and Central Railways that came under the government‘s scrutiny after the Elphinstone Road
railway station stampede in 2017 that killed over 25 commuters.
―Over the last couple of years, the builder segment in residential real estate has seen subdued demand
with few takers for projects, but there has been a significant growth in opportunities due to major
urban infrastructure programmes,‖ Yohan K John, director, Johnson Lifts told ET.
The firm expects to increase its billing revenue to ₹2,000 crore in this financial year from ₹1,850
crore last year. The sales on its books are much higher but they have not been realised owing to
delays in execution by builders, said John.
He said the company is also seeing incremental demand from tier-2 and -3 cites, which it is
leveraging to tide over the ongoing patch of stagnation in the housing sector.
―Some years back we were only selling in metros and state capitals, but now we have launched
competitive models tailored for satellite towns as well,‖ said John. With a 20% market share,
Johnson Lifts dominates the country‘s elevator market.
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Newspaper/Online ET Realty (online)
Date August 29, 2019
Link https://realty.economictimes.indiatimes.com/news/allied-industries/johnson-lifts-sets-sights-on-government-deals-to-maintain-growth/70891283
UP-RERA resolves 11 complaints against builders
Among those heard, maximum cases were related to Supertech. Out of 10 cases against the
company, seven were resolved.
The Uttar Pradesh Real Estate Regulatory Authority (UP-RERA) on Wednesday resolved 11 of the
sixteen cases filed against the builders in its eight Conciliation Forum meeting.
Among those heard, maximum cases were related to Supertech. Out of 10 cases against the company,
seven were resolved. For the other cases various options were suggested by the conciliator to
consider and find a viable solution to resolve the matter.
Apart from Supertech, one case each from APV Realty, Gaursons Promoters, Strategic Developers
and Mahagun (India) were amicably resolved.
The complaint regarding Ajnara India was referred back to court while in the case of Jaiprakash
Associates various options were suggested by the conciliator to consider and find a viable solution to
resolve the matter.
In the NCR Conciliation Forum, more than 600 conciliation requests have been received till date.
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Newspaper/Online ET Realty (online)
Date August 29, 2019
Link https://realty.economictimes.indiatimes.com/news/industry/up-rera-resolves-11-complaints-against-builders/70889159
Jaycee Homes' developer gets bail after 18 months
Bhagtani, who is associated with the Jaycee Homes group of companies, surrendered to the
Mumbai police in January 2018 after the Bombay High Court withdrew the interim protection
granted to him.
Developer Diipesh Bhagtani, who was arrested by the Economic Offences Wing on charges of
allegedly cheating home buyers in four housing projects, was granted bail by a metropolitan court on
Wednesday.
Bhagtani, who is associated with the Jaycee Homes group of companies, surrendered to the Mumbai
police in January 2018 after the Bombay High Court withdrew the interim protection granted to him.
He would be released from judicial custody upon furnishing personal bail bond of Rs 10 lakh and
additional cash sureties.
During the hearings of the bail application, the investigating officer had told that court that the EOW
froze 125 bank accounts of Bhagtani and it contained only Rs 1 crore, while over 1,000 buyers were
duped in the over Rs 500 crore scam.
The officer also pointed out that Bhagtani's father and brother, who were also named in some of the
seven FIRs lodged by the EOW, were holed up in Dubai.
Bhagtani group companies had collected investments from home buyers for projects in Mira Road,
Dahisar, Kanjurmarg and Powai - none of which were constructed and only one of them is registered
with the Maharashtra Real Estate Regulatory Authority.
Home buyers were shocked and disappointed with the development and plan to appeal against the
order.
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Newspaper/Online ET Realty (online)
Date August 29, 2019
Link https://realty.economictimes.indiatimes.com/news/regulatory/jaycee-homes-developer-gets-bail-after-18-months/70891406
National security act slapped on Greater Noida builder
This is the first case in Uttar Pradesh in which a builder has been detained under the stringent
NSA, which prohibits bail to an accused for 12 months, subject to judicial review, the
administration said.
The Noida administration on Wednesday invoked the National Security Act (NSA) against a builder
who had illegally constructed a multi-storey building which collapsed last year, leaving nine people
dead.
This is the first case in Uttar Pradeshin which a builder has been detained under the stringent NSA,
which prohibits bail to an accused for 12 months, subject to judicial review, the administration said.
On July 17, 2018, two adjoining buildings had collapsed in Greater Noida's Shahberivillage, leaving
nine people, including a child and two women, dead.
"Builder Shahbuddin, a native of Meerut, has already been arrested. He has been booked under the
Gangsters Act," District Magistrate, Gautam Buddh Nagar, B N Singh told reporters in a joint press
conference with SSP Vaibhav Krishna.
"Now, his bail plea is due to be heard in high court in coming days and the administration has
decided to detain him under the National Security Act," he added.
"Shahbuddin, 47, is in judicial custody since July 25 and if he comes out there is a likelihood of
disturbance to public order," Singh said further.
Probe reports by administration and local authorities found that the buildings had come up illegally
and without any proper approval, as did several others which mushroomed over the years in
Shahberi, less than 50 km from Delhi.
Shahberi falls under the notified area of the Greater Noida Industrial Development Authority
(GNIDA), which had acquired the land from local villagers in 1994, the officials said.
So far, 71 FIRs have been registered against rogue builders over illegal constructions in Shahberi and
nearby areas.
As many as 257 people have been accused in these cases and more than 50 arrested so far, the
officials said.
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Newspaper/Online ET Realty (online)
Date August 29, 2019
Link https://realty.economictimes.indiatimes.com/news/regulatory/national-security-act-slapped-on-greater-noida-builder/70889373