27 - 08 - 2020

*Urgent attention to KMC advisory *

Dear Sirs,

We have received an advisory from Director General (Building), KMC and

the same is reproduced below.

“All are directed to take urgent action on illegal stacking of building

materials on KMC roads and passages. All such materials should be removed

forthwith. In cases of noncompliance KMC shall remove such materials.”

You are therefore requested to take necessary action as may be deemed fit.

https://www.credaibengalhomes.com/emi-calculator/.

Benefits Of Choosing a Right Plumbing System

Dear Member,

Please find below the Youtube Link to the Webinar on Plumbing which had

been organised on 21st August. For members, who had sought the

presentations, the same is embedded in video.

Thank you.

https://www.youtube.com/watch?v=wn8TAgvCN0s&feature=youtu.be

CREDAI Bengal Daily News Update | 27.08.20

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Tweet by Satish Magar, President, CREDAI National

Newspaper/Online The Times of India ( online )

Date August 26, 2020

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Bright spots amid gloom: Housing segment recovers after brutal

April–May 2020

Housing sales and launches are seeing upward trends across top cities like Bangalore,

Hyderabad and Mumbai with both demand and launches seeing higher growth.

"With June being the first month of Unlock 1.0 in India, activity in the housing space marks

encouraging recovery," said a recent report by Edelweiss Research.

Demand plunged 68% QoQ in Q2CY20; however, the sharp recovery witnessed in May (up

52% MoM) and June (up 71% MoM) is a harbinger of hope. Supply plummeted 82% On q-o-q

basis during the quarter; however, it improved sharply in June, it mentioned.

According to the report, new launches during June 2020 grew 8.9x MoM on a low base, but

were down 49% YoY. "Bengaluru accounted for 39% of launches during the quarter, followed

by MMR (24%) and Pune (23%); while other markets together contributed the remaining 15%.

On the demand front, MMR contributed 40% of the absorption with Pune (22%) and Bengaluru

(13%) coming next," the report mentioned.

Prices during June bounced back 7–11% YoY in Chennai, Bengaluru and MMR, but slid in

Kolkata and Hyderabad (down 5–8% YoY). YTD average prices rose in Bengaluru and

Chennai by 6–7% YoY, but corrected 4% YoY in MMR and Kolkata. Prices in other markets

remained in a narrow range, it mentioned.

Hyderabad and Pune remained the best markets with 22-23 months of inventory, followed by

Chennai and Bengaluru at 37-38 months. NCR remains the worst real estate market with 71

months of inventory; inventory levels in MMR and Kolkata were 40 months and 44 months,

respectively.

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Newspaper/Online The Times of India ( online )

Date August 26, 2020

Link https://content.magicbricks.com/property-news/bright-spots-amid-gloom-housing-

segment-recovers-after-brutal-aprilmay-2020/115621.html

Govt working actively to bring new norms to push affordable

rental housing: Housing Secretary

In June Mishra had said the Ministry of Housing and Urban Affairs (MoHUA) is planning

to soon approach the Cabinet for its nod to the Model Tenancy Law that would bolster

rental housing across the country. In 2019, the ministry had floated the draft model

tenancy law.

The government is actively working on bringing new norms soon to give a big push

to affordable rental housing in the country, said Durga Shanker Mishra, Secretary, Ministry of

Housing and Urban Affairs.

“We are soon bringing a new law on rental housing and this will lead to more structured

approach in this sector both in urban as well as rural areas," he said at an ASSOCHAM web

conference.

In June Mishra had said the Ministry of Housing and Urban Affairs (MoHUA) is planning to

soon approach the Cabinet for its nod to the Model Tenancy Law that would bolster rental

housing across the country.

In 2019, the ministry had floated the draft model tenancy law.

More than a crore houses are vacant at present in the country because many owners have their

own apprehensions on renting them out.

"Also, there is so much of land empty just outside the city limits and even inside. We must think

if a tweak in our master plans is possible so that we can use the empty areas for affordable

rental housing," Mishra added.

The government has already come up with guidelines of the Affordable Rental Housing

Complexes (ARHC) for urban poor and migrants that was announced by the Finance

Minister Nirmala Sitharaman recently.

According to Niranjan Hiranandani, president, ASSOCHAM, whiile ownership of houses for all

may not be possible, this provides the rationale for a policy focus on the promotion of rental

housing in urban areas. A fair combination of both the affordable ownership and affordable

rental housing will act as a catalytic force to achieve the overall goal of Housing for All.

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Newspaper/Online ET Realty ( online )

Date August 27, 2020

Link

https://realty.economictimes.indiatimes.com/news/industry/govt-working-actively-

to-bring-new-norms-to-push-affordable-rental-housing-housing-

secretary/77776192

Lenders seek higher security, receivables cover for builders'

funding

Given the various risks associated with execution and demand in the backdrop of the

ongoing Covid-19 pandemic, the lenders want their exposure well insured.

A rising number of lenders are seeking higher security and receivables cover from companies

seeking financial support even as liquidity for real estate developers continues to be tight

despite several funds stepping forward to provide financing options for stalled projects.

Given the various risks associated with execution and demand in the backdrop of the

ongoing Covid-19 pandemic, the lenders want their exposure well insured.

The security cover for these loans has gone up to 1.66 times based on the funds sanctioned so

far this year as against 1.62 times a year ago.

The rise in these covers indicates that the recovery is likely to take longer than expected by all

stakeholders.

Interestingly, the smaller loans--up to Rs 50 crore--have higher security covers at 1.79 times.

In contrast, if the loan is for over Rs 500 crore, the security cover eases to 1.48 times, showed

data from real estate data analytics firm, Propstack.

“The impact of Covid-19 on the business environment and the economy has led to the rise in

collaterals and mortgage requirements. Larger amounts and longer tenures are seen as less risky

as they are being sought by larger developers. Higher tenures also include rental discounting

loans for over 10 years and are less risky as against construction funding,” said Sandeep Reddy,

director, Propstack.

Also, loans with shorter tenure of up to 12 months are attracting higher security cover of 2.1

times against 1.55 times for a 5-year term loan.

The number additionally goes up to 1.86 times for loans with interest rate of over 15% and dips

to 1.44 times if the interest rate is less than 10%.

“Other than security cover, two factors are being discussed more critically. First being the

receivables cover and this is nothing but free cash-flows available to service debt. In broader

Newspaper/Online ET Realty ( online )

Date August 27, 2020

Link https://realty.economictimes.indiatimes.com/news/industry/lenders-seek-higher-

security-receivables-cover-for-builders-funding/77776178

terms, it is measured by debt service coverage ratio (DSCR), and a minimum of 1.5 times can

create a shield in falling prices scenario,” said Subbhash Hotchand Udhwwaani, founder of real

estate-focused boutique investment bank, Elysium Capital.

According to him, other critical discussion taking place between lenders and developers while

taking the funding call is with respect to promoter equity at all stages, any shortfall in that is not

being seen as a great sign for the project.

COVID-19 has created an additional challenge for the housing sector that has been facing

various other issues including slower sales, debt and inventory pile up.

Institutional investors will also be selective while picking up opportunities as not all projects

and developers may make the cut.

The segment, except for affordable housing, has already been under pressure generating

negative cash flows from operations that have led to higher leverage and refinancing risks.

The widening cash-flow gaps and its impact on debt, interest servicing may prove to be an

existential crisis for smaller developers who may not have new project funding lines, balance

sheet liquidity or support from diversified operations.

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Chandigarh: 1990s' flats in Manimajra need urgent alteration, says

RWA

For need-based changes to the Modern Housing Complex (MHC) flats, officials of the

Manimajra resident welfare association (RWA) met Chandigarh Housing Board (CHB)

chairman A K Sinha recently

For need-based changes to the Modern Housing Complex (MHC) flats, officials of the

Manimajra resident welfare association (RWA) met Chandigarh Housing Board (CHB)

chairman A K Sinha recently.

The team claimed that even though the CHB’s mission was to provide people with affordable

accommodation and keep minimum profit, still it had been charging them an exorbitant fee for

anything and everything, including even need-based changes.

The RWA wrote to the CHB that the residents of sector 45-A and 39-B were allowed to use the

garage top as terrace under certain conditions. Manimajra RWA president Colonel Gursewak

Singh: “Residents of the MHC seek similar relaxations.”

The association said the CHB disallowed ground-floor residents to maintain lawns or short

hedges in their adjoining space on the plea that it was government land. Col Gursewak Singh

said: "However, it is the block's common land and the CHB should have no objection if the

allottees maintain this space with the consent of the block management committee for

beautification and privacy.

A small door from the balcony to this space is an absolute necessity.” RWA general secretary S

A Qureshi said: “Most of these issues would not have risen if the board had consulted the

RWAs in the planning stage. We request the board chairman to visit the site to see ground

reality.”

In the early 1990s, when the MHC flats were constructed, a straight iron ladder was provided

through a small opening for access to the rooftop, but this arrangement was hazardous for the

elderly.

Col Gursewak Singh said: “Residents need to check rooftop water tanks from time to time, but

because of the design of these flats, it means risking either life or a limb. Enlarging the rooftop

access is a dire necessity.”

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Newspaper/Online ET Realty ( online )

Date August 26, 2020

Link https://realty.economictimes.indiatimes.com/news/residential/chandigarh-1990s-

flats-in-manimajra-need-urgent-alteration-says-rwa/77758437