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