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17-Sept-2019
17-Sept-2019
CREDAI Bengal Daily News Update | 17.09.19
Water availability, security main factors for home seekers: Report
In Gurugram, nearly 77% buyers search for homes with rainwater harvesting,
considering the water issues some societies face, according to a recent Magicbricks report.
Home buying pattern keeps changing with time. What buyers want today may not be the same
they look for tomorrow. The market adjusts accordingly and ensures that homes are made as per
the expectations of buyers. New trends suggest that buyers give high preference to water,
security as key factors while buying homes.
In Gurugram, nearly 77% buyers search for homes with rainwater harvesting, considering the
water issues some societies face, according to a recent Magicbricks report.
On the other hand, people are not ready to wait long for their homes so they are scouting for
ready-to-move-in homes more than under construction ones. Over 70% of consumers were
looking for ready to move in properties across states.
"Given that a majority of burglaries and thefts go unreported or unresolved, having a security
system in place can actually act as a deterrent, as well as a means to identify (god forbid) the
perpetrators that have committed the crime," says Nimish Gupta, MD, South Asia, RICS.
Take the example of Delhi-NCR where over 70% people search for homes with CCTVs. This
certainly proves that people are concerned about their security in high-rise societies. Security
remains one of the key factors which influences a buying decision. Many developers are making
sure that CCTVs are installed not just at the entrance gate but in the lift lobbies and parks as
well, so residents feel safe.
Home buyers prefer swimming pool as a must-have facility in cities such as NCR, Bengaluru,
Pune and Thane. Kolkata, Pune and Bengaluru prefer one or two balconies, whereas Mumbai
doesn’t prefer any balcony.
In terms of property type, people prefer apartments over independent houses and builder floors.
A 3BHK is most preferred in Greater Noida and Gurugram, a 2BHK is more popular in Delhi,
Bengaluru and Chennai while Mumbai prefers 1BHK flats. A servant room is mostly preferred
by Gurugram and Noida residents. A store room is most preferred in Ahmedabad.
Affordable homes topped the demand with nearly 46% searching for homes within the Rs 20-50
lakh bracket. The 750-1000 sq ft property size has emerged as buyer's preferred choice for
renting and buying.
Newspaper/Online ET Realty (online)
Date September 16, 2019
Link https://realty.economictimes.indiatimes.com/news/residential/water-availability-security-main-factors-for-home-seekers-report/71152913
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Blackstone signs deal to buy CCD's Tech park for Rs 2,700 crore
Blackstone, along with South-based developer Salarpuria Sattva will acquire the 90-acre,
IT-focussed Global Village Tech Park held by subsidiary, Tanglin Retail Realty.
The Blackstone Group has signed a definitive agreement to buy Global Village Tech Park,
owned by a subsidiary of Coffee Day Enterprises Ltd (CDEL), for about Rs 2,770 crore.
Blackstone, along with South-based developer Salarpuria Sattva will acquire the 90-acre, IT-
focussed Global Village Tech Park held by subsidiary, Tanglin Retail Realty.
A formal announcement of the deal is expected as early as Tuesday.
When contacted Blackstone declined to comment. Coffee Day was not immediately available
for comments.
ET first reported about the potential deal on August 2. Coffee Day Enterprises said in an
exchange notification on August 14 that a non-binding letter of intent between CDEL and
Blackstone was signed after the former’s board approved the divestment.
The deal will help India’s largest coffee chain, stricken by the death of founder VG Siddhartha
in July, repay some of its debt.
CDEL is estimated to have debt of Rs 5,200 crore.
Mape Advisory Group advised Coffee Day on the transaction.
Talks between Blackstone and Siddhartha had reached an advanced stage last December with
both sides close to signing a term sheet for a deal pegged at about Rs 2,575 crore.
Blackstone is said to have revised the deal size upward by about Rs 150 crore as a goodwill
gesture, one of the sources said.
Newspaper/Online ET Realty (online)
Date September 17, 2019
Link https://realty.economictimes.indiatimes.com/news/commercial/blackstone-signs-deal-to-buy-ccds-tech-park-for-rs-2700-crore/71159865
Coffee Day Enterprises has total debt of Rs 4,970 crore, according to its regulatory filing on
August 17.
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Piramal, Poddar may help develop DHFL’s SRA projects
Three industry sources told ET that both the companies have signed non-binding term
sheets to bid as lead developers for the projects that seek to transform congested
neighbourhoods across Mumbai.
Leading developers Piramal Realty and Poddar Housing are keen to become master developers
in Mumbai’s slum rehabilitation projects that Dewan Housing Finance (DHFL) has funded,
ensuring future cash flows to the home financier and giving comfort to lenders crafting a
resolution package for its outstanding debt.
Three industry sources told ET that both the companies have signed non-binding term sheets to
bid as lead developers for the projects that seek to transform congested neighbourhoods across
Mumbai.
―We have signed non-binding term sheets to evaluate certain projects of them,‖ said Vishal
Kokadwar, CFO, Poddar Housing, which will soon start the evaluation process. DHFL and
Piramal declined to comment.
DHFL has a builder loan book of about 40,000 crore. Of this, 25-30% would be loans given to
real estate builders engaged in the slum rehabilitation projects. There are about 10 such
developers.
A master developer is normally engaged in a large pool of projects. It is responsible for aiding
smaller builders in executing them. Their involvement will help all cash-strapped builders that
could not repay DHFL loans.
A master developer provides corporate guarantee against loans taken for those projects. Such a
scenario will boost the creditworthiness of the projects and increase the proceeds for DHFL,
which was seen trying to sell those loans.
Earlier, textile group Welspun was in the race to partown such projects. ET reported on May 28.
Piramal Realty, the real estate development arm of the Piramal Group, was looking to double its
portfolio of under-construction projects to nearly 30 million sq ft over the next two years
through a combination of outright land buys and alliances, ET reported on May 16.
Piramal Realty, which counts Goldman Sachs and Warburg Pincus as its investors, is open to
roping in more foreign investors to support its growth, going forward.
The company has projects with total 15 million sq ft space under construction in Mumbai. Of
this, a fifth is commercial, while the rest is residential development.
Newspaper/Online ET Realty (online)
Date September 16, 2019
Link https://realty.economictimes.indiatimes.com/news/industry/piramal-poddar-may-help-develop-dhfls-sra-projects/71147623
Poddar Housing builds mostly residential projects. Promoters own 61% in Poddar Housing, and
public shareholding is 16.2% Mutual funds, foreign portfolio investors, and non-resident
Indians own the rest.
Lenders are closely working to stitch the DHFL resolution plan before September 25, the date
beyond which banks may have to mark it as NPA. Lenders are considering 7,000 crore in
emergency funding to the debt-laden financier. The home financier has begun repayments,
paying off around ?1,000 crore of commercial papers and bonds, a source said.
________________________________________________________________
SBI chief slams 'selfish' private sector bank for Altico crisis
The default by Altico has resulted in concerns over the wider implications.
State Bank of India chairman Rajnish Kumar has slammed a ―selfish‖ private sector lender for
the crisis at Altico Capital, as its unilateral move to secure its own money can potentially cause
troubles to the wider financial system.
The realty-focused non-banking lender Altico, which owes over Rs 4,500 crore to the system
(mostly banks), defaulted on a nearly Rs 20 crore interest payment late last week on an external
commercial borrowing (ECB) loan.
The default by Altico has resulted in concerns over the wider implications.
According to reports, a leading private sector bank allegedly moved in to secure its exposure by
―netting-off‖ money from a fixed deposit maintained by Altico.
―If any bank makes a selfish move, it can have a negative impact on the rest of the system,‖
State Bank of India (SBI) chairman Rajnish Kumar told reporters here over the weekend.
―You have taken care of the Rs 50-100 crore (exposure), and felt happy for saving your money,
but if you are damaging the system, then it is not proper,‖ Kumar said, without naming the
private sector lender.
―Even in the case of the biggest of the companies, if a bank pulls the trigger or stops credit flow,
the negative impact can come,‖ he added.
The need is for bankers to mount coordinated efforts which help the entire financial system, he
said, pointing out that the same is being used for biggest of the stressed cases.
The comments from the SBI chairman come days ahead of a bankers' meeting to find a solution.
Altico owes Rs 660 crore to the UAE-based Mashreq Bank, Rs 400 crore to SBI, and Rs 200
crore to UTI MF and Rs 150 crore to Reliance Nippon, as per India Ratings estimates.
Altico has defaulted on interest payment of Rs 19.97 crore to Mashreq Bank last week. On
September 3, it was downgraded to junk status by rating agencies India Ratings and Care
Ratings.
Altico is backed by marquee investors like Clearwater Capital Partners, Abu Dhabi Investment
Council and Varde Partners.
Newspaper/Online ET Realty (online)
Date September 16, 2019
Link https://realty.economictimes.indiatimes.com/news/allied-industries/sbi-chief-slams-selfish-private-sector-bank-for-altico-crisis/71147561
The default was on the troubled company's ECB loan, but was not reportedly allowed by the
Reserve Bank of India to be used for interest repayments, leading to the default. As per they
central bank's norms, ECBs by lenders can only be used for on-lending.
According to reports, the ECB money was kept with the private sector lender as a fixed deposit
and it moved in swiftly to secure its loans on the news of its default.
__________________________________________________________________
IL&FS to sell over 450 acres situated in Telangana, Andhra &
Uttar Pradesh
While IL&FS holds nine per cent, the other two firms hold 40 per cent and 31 per cent
stake, respectively in HCPL.
Debt-ridden IL&FS Group has put on block nearly 494 acres of land parcels across three states
including Telangana, Andhra Pradesh and Uttar Pradesh, held by its subsidiary Hill County
Properties (HCPL).
IL&FS, through its group firms IL&FS Township and Urban Assets and IL&FS Engineering
and Construction Company holds a total of 80 per cent equity stake in HCPL.
While IL&FS holds nine per cent, the other two firms hold 40 per cent and 31 per cent stake,
respectively in HCPL.
The company has appointed Jones Lang LaSalle Property Consultants to assist the potential
transaction.
Hill County Properties houses various land parcels and development rights for properties
aggregating to 494 acres spread across six sites including three in Hyderabad (437 acres) and
one each in Vijayawada and Visakhapatnam and Meerut.
The company has invited expressions of interest from interested parties for a potential equity
stake divestment.
The Group's fund-based outstanding debt was Rs 94,216 crore as of October 8, 2018.
The Uday Kotak-led board of the IL&FS group, as part of the resolution process has initiated
the sale of several group assets including education, waste management, technology, real estate
and key international assets.
The group has recently received 14 binding financial bids of around Rs 13,000 crore for 10
domestic road assets.
On August 28, 2019, the Mumbai bench of NCLT cleared the sale of seven operating wind
energy SPVs (of the IL&FS Group) to ORIX, Japan for an equity value of approximately Rs
593 crore.
Newspaper/Online ET Realty (online)
Date September 17, 2019
Link https://realty.economictimes.indiatimes.com/news/industry/real -estate-projects-must-be-registered-before-sale-hardeep-singh-puri-housing-minister/71159796
In addition, ORIX has also agreed to take over the entire SPV debt totalling around Rs 3,700
crore.
________________________________________________________________
Rs 20,000 crore enough to see through completion of stuck projects:
Keki Mistry, HDFC
The creation of the fund as well as the clarification on ECB are very good measures.
One has to understand whether the definition of NPA under this scheme is different from the
way NPA is normally understood, says Keki Mistry, VC & CEO, HDFC. Excerpts from an
interview with ETNOW.
Do you think the announcements on realty made by the FM, are the steps in the right
direction? Would they help revive demand?
Absolutely, it is a step in the right direction. More than demand, we have to ensure that existing
projects which are stuck across the country, get a boost. As I understand from the finance
minister’s statement, a fund will be created where the government will make a contribution.
The private sector too can make a contribution to that fund and then you can look at leveraging
that up 0.3-0.4 times so that there is a reasonably sizable sum of money which can be used for
investment in the stuck projects.
There are a number of projects all over the country where 60-70-80%, in some cases even 85-
90% of the work is completed and only that last mile funding is required, which is not being
done, because the developer has run short of money. These kind of projects can be identified by
this fund.
It is very important that the finance minister has said that it will be run professionally, by a
bunch of professionals who will be in a position to identify and make investments in these kind
of projects. Under their supervision, the construction would get completed. That will bring
confidence back to the home buyers.
And what do you make of the special window of Rs 20,000 crore? Do you think perhaps
Rs 10,000 crore is enough for funding needs?
Yes too much, but I do not know what. It is very difficult to quantify this but Rs 20,000 crore is
a lot of money. The size of the projects or the amount money that is required in some of these
projects is not very large. There are projects where you need just Rs 40-50-60 crore and there
are of course projects where you need a much larger sum of money. So, Rs 20,000 crore plus
leverage can see through the completion of a number of such projects. I do not see that money is
a problem.
Newspaper/Online ET Realty (online)
Date September 16, 2019
Link https://realty.economictimes.indiatimes.com/news/industry/rs-20000-crore-enough-to-see-through-completion-of-stuck-projects-keki-mistry-hdfc/71149460
The only thing one needs to understand a little bit is that the finance minister said that this will
not apply to projects which are NPAs. Now if a project is stuck, it means that the developer
does not have the money to complete the project. If he has not completed the project, he
probably is not servicing the interest on the loan he has taken or not paid that the loan on time.
In that case, the loan could theoretically become a non-performing (NPA) loan even though
there is a lot of equity in the project. One has to understand whether the definition of NPA
under this scheme is different from the way NPA is normally understood.
This fund comes with a rider of non-NPA and non-NCLT. What happens in case of stuck
projects where equity value in the project is eroded significantly?
There will be hundreds or thousands of projects which are stuck. In some cases, the equity
would have run out and those projects will have a tough time. But there will be so, many more
projects where equity is still left in the project and the developer simply does not have the
liquidity to complete the project.
Are you happy with the revised definition for affordable housing for ECB funding? Could
this lower the cost of borrowing for the end user?
It may lower the cost of borrowing by a few basis few bps, but at the end of the day, it will not
be very significant. The more important thing is that it gives a different avenue of funding to the
lender. HDFC borrows money from a variety of sources. We do not borrow money through
external commercial borrowing (ECB) because it is a lower cost of funding.
We borrow money through ECB because it diversifies our sources of funding. This is a very
good move. There were some ambiguity on the definition of end use for external commercial
borrowing and this will clarify that completely. That also is a very good move. Both these
moves -- the creation of the fund as well as the clarification on ECB -- are both very good
measures.
How do you think the government will go about funding the last mile projects which are
stuck?
We are talking of stuck projects, where already 30-40% of the project has got sold and more
than 60% has got completed. I do not know about pricing, but the important thing is that the
mandate given to these individuals will be to identify the projects which are stuck, where as FM
said 60% of the work has been completed and there is equity left.
Probably through a project management company or some close monitoring, this fund will have
to ensure that the money that they are putting into the project is used exclusively for the
construction of the project and it gets completed.
________________________________________________________________
Thane: Bombay HC's efforts revives stalled Silverline project
Bombay High Court Justice SJ Kathawalla’s efforts bear fruit as developer restarts
Silverline project
A group of 70 home buyers from Thane, who had virtually lost all hope of ever getting their
dream homes, have none other than Bombay High Court’s Justice SJ Kathawalla to thank for
finding a way through legal cobwebs to ensure that a stalled half-constructed project
in Kasarvadavali gets revived.
The construction for Silverline, a 12-storey project by MS Shah Developers, was stopped in
2013 due to a dispute between the partner brothers Abdul and Salim Mapkhan Shah.
In 2015, the buyers filed police complaints, leading to their arrests, and the matter went to the
Bombay High Court.
Justice Kathawalla then held several hearings of the matter with all stakeholders. Mumbai
Mirror first reported the plight of Silverline buyers in October 2017.
On court’s orders, the developer Abdul Mapkhan Shah agreed to restart the construction of the
project and held a meeting with the buyers in December 2017. He drew up a new plan
proposing a 22- to 24-storey highrise at the site.
However, a new claim on the 5,150 square metre land was made by Sandeep Dalvi, a tribal. The
landowner being a tribal, under Section 36A of Maharashtra Land Revenue Code, prior
permission of the Thane collector was necessary before Dalvi could sell or surrender the land in
favour of any person. Another legal complication occurred when one Ayub Asar, who has a
house adjoining the plot and held the development rights and possession of the project land,
also raised objections to relocation of his house.
The project dates back to pre-RERA and was not registered with MahaRERA.
―Just when developer was ready to restart the project, these turn of events demoralised us. It
looked like these complications would now take years to resolve. We had no option but to go
back to Justice Kathawalla, who has relentlessly supported us,‖ said Dilip Jaiwar, one of the
buyers who has been spearheading efforts to get justice.
It took several months for Shah to get Section 36 A claim from the land. In February 2018, the
sub-divisional officer, Thane, finally removed the 30 and 36A claim on the land.
In June 2018, Shah then worked out a settlement with Sandeep Dalvi and promised to give
Newspaper/Online ET Realty (online)
Date September 16, 2019
Link https://realty.economictimes.indiatimes.com/news/regulatory/thane-bombay-hcs-efforts-revives-stalled-silverline-project/71143103
4,000 sq ft constructed area of Silverline project to him in return for the conveyance of the
entire 5,150 sq m land.
Justice Kathawalla directed the Thane collector to consider the application for sale of the land
from Dalvi to Shah on an urgent basis taking into consideration the plight of various flat
purchasers in his June 18, 2018 order.
In August 2019, Justice Kathawalla also resolved the second dispute involving Shah and Ayub
Asar who had differences over 500 sq m plot adjoining the project site.
Asar agreed that he will permit the developer to enter the property and start construction on the
entire plot barring the 500 sq m, which will be separately demarcated and the developer will not
be able to use that plot’s FSI. The court directed that all objections/contentions regarding the
demarcated 500 sq m be kept open and heard.
―Now everything is over, and I have got the conveyance for entire 5,150 sq m. So, we have
started the work to demolish the old structure and start construction of two 18-storey towers.
Out of the 70 original flat buyers, 40 people want to withdraw and I have agreed to refund their
money with interest. The remaining 30 buyers will be given their flats with free parking. I have
taken money from these buyers and it is my duty to complete the project,‖ Abdul Mapkhan
Shah told Mirror.
The project, located at a walking distance from Metro 4 line from Kasarvadavali to Wadala, is
expected to generate great value when complete.
________________________________________________________________
Maradu flat owners defy SC order, won't leave homes
The five-day deadline to vacate their flats ended on Sunday at 5 pm, but none of the
residents left nor shifted their belongings.
The residents of four apartment complexes in Maradu area defied an eviction notice issued by
the municipality and protested for the sixth day on Sunday against the local body's action,
saying that they will not leave their homes.
The 1,200 owners in four apartment complexes near the backwaters of Kochi have been
opposing the move to demolish the flats, as ordered by the Supreme Court for violation
of Coastal Regulation Zone rules.
The five-day deadline to vacate their flats ended on Sunday at 5 pm, but none of the residents
left nor shifted their belongings. They also welcomed the government's decision to convene an
all-party meeting to discuss the issue and they termed the decision a victory of the first phase of
their protest. Residents also said that they would take forward the protest and move the high
court submitting the notice was in violation of their human rights.
Municipal authorities said they had submitted a report to the district collector. "The report has
been submitted to S Suhas and we are awaiting his reply. The municipality cannot take any
action on its own without getting the support of the district administration and the state
government," said Maradu municipality chairperson T H Nadira.
Various political parties and socio-cultural organisations have extended their solidarity to the
protest. On Sunday, CPM leader and former minister P K Sreemathi inaugurated the protest.
It was on Tuesday, municipality secretary M Mohammed Arif Khan served the notices to the
residents of all the four apartment complexes – Jain’s Coral Cove, Alfa Serene, Golden
Kayaloram and Holy Faith H2O. The notice said that the residents should vacate their flats and
shift their belongings within five days and cooperate with the authorities to implement the SC
verdict. It also stated that strict actions including prosecution, would be initiated against those
who did not obey the order.
The residents of all the apartment complexes, except a few from Golden Kayaloram apartments,
refused to accept the notice, following which the authorities had to paste the notice on the walls
of respective buildings and leave. The residents said that the notice was addressed to the
builders, who are the legal owners of the properties.
Meanwhile, the builders denied the reports that they had ditched the flat owners. ―The builder is
not the legal owner of the property as all the apartments are registered in the individual owners’
names through registered sale deeds and the municipality is collecting tax from those
Newspaper/Online ET Realty (online)
Date September 16, 2019
Link https://realty.economictimes.indiatimes.com/news/regulatory/maradu-flat-owners-defy-sc-order-wont-leave-homes/71152069
individuals admitting them as owners. Since the company has no ownership or possession of
any apartments in the project, we don't understand why such an order was issued to us. I had
written to the municipality pointing out this, and some media reported that the builders had
ditched the apartment owners. All the builders are supporting the protest,‖ said J Paul Raj,
director, Alfa Ventures Pvt Ltd.
________________________________________________________________
Chennai: PWD proposes water audit for new housing layouts
The PWD would seek the housing and urban development department’s mandatory water
impact assessment for the layouts before issuing approval for carving out housing plots.
Waking up after consecutive droughts in Chennai and its surroundings, public works
department (PWD) has mooted a water audit for new housing layouts.
The PWD would seek the housing and urban development department’s mandatory water
impact assessment for the layouts before issuing approval for carving out housing plots.
According to official sources, the water impact assessment should be on the lines of
environmental impact assessment for construction projects. ―We would be soon writing to the
planning authorities (of the housing and urban development department) to study the water
situation in the property where approvals are sought for housing layout,‖ a senior PWD official
told TOI.
Noting that the crucial issue of water availability is not taken into consideration for approving
layouts, PWD sources said, such issues have a bearing on groundwater levels after construction
is allowed.
The number of housing plots approved by the Chennai Metropolitan Development Authority
(CMDA) is on the rise. While 2,075 approved plots were carved out in 2016, it shot up to nearly
4,900 the next year and jumped to 6,115 in 2018.
This year recorded the highest number of layout approvals since 2007 in the Chennai
Metropolitan Area comprising the city and suburbs, numbering 96 from January to August.
Hydrogeologist J Saravanan said the move would help halt constructions in locations with poor
groundwater. ―For instance, highrises are allowed around Kelambakkam on Old
Mahabalipuram Road, where the groundwater is saline. Apartments are marketed with reverse
osmosis as a solution, but homebuyers feel the heat after they start using it,‖ he said.
According to him, Tamil Nadu would be the first state to make water audit mandatory ahead of
approvals if the government idea takes shape.
―But, the groundwater wing of the PWD should take the responsibility of water audit as the
planning authorities such as CMDA do not have the wherewithal for the purpose,‖ Saravanan
said.
On the other hand, CMDA sources said the move may result in overexploitation of groundwater
at locations with abundant water beneath the surface.
Newspaper/Online ET Realty (online)
Date September 16, 2019
Link https://realty.economictimes.indiatimes.com/news/regulatory/chennai -pwd-proposes-water-audit-for-new-housing-layouts/71150579
―If constructions are banned in places without groundwater, it would end up in exploitation of
natural resources in other localities as they would be densely populated,‖ a CMDA official said.
________________________________________________________________
Realtors cut flat sizes in weak market
Average size of apartments has shrunk 27% over the past five years from 1,400 sq ft in
2014 to nearly 1,020 sq ft in 2019.
Market realities of ongoing liquidity crisis, changing buyer preferences and growing concerns
about affordability have forced real estate developers' to reconsider their product strategies and
prompted them to significantly reduce apartment sizes across seven important property markets.
Average size of apartments has shrunk 27% over the past five years from 1,400 sq ft in 2014 to
nearly 1,020 sq ft in 2019. Mumbai, the country's most expensive property market, has seen the
highest decline in apartment size by 45%, followed by Pune with 38% reduction in average unit
size, showed data from Anarock Property Consultants.
Surprisingly, National Capital Region (NCR), one of the worsthit residential markets in recent
years, has seen the least decline of merely 6% during this period to 1,390 sq ft, pulling ahead of
Bengaluru where average flat sizes reduced to 1,300 sq ft in 2019.
―Among the major factors contributing to the escalating claustrophobia effect of shrinking
apartment sizes, demand for affordable homes in metros tops the list. Also, buyers are
increasingly looking to avail the government’s credit subsidy benefits for affordable housing.
These require a home to be priced below .`45 lakh and not exceed 60 sq metre carpet area or
850 sq ft built-up area including overall loading,‖ said Anuj Puri, chairman, Anarock Property
Consultants.
The reduction in sizes, particularly in the affordable segment, helps buyers to avail of the
subsidies. Moreover, buying an affordable home also comes with GST benefits. The GST for
affordable housing is 1%, against 5% for mid-segment homes.
―Home buyers are not interested in any space wastage and need more efficiency. Ticket size is
proving to be a game changer, but liability also needs to be given importance while designing.
We have reduced the sizes of our 3-bedroom apartments at two projects by 15-20% and it is
supporting in sales conversion well,‖ said Rajat Khandelwal, CEO-Mumbai, Ozone Group.
In short, buyers get reduced costs and added benefits, but lose out on space. Developers get to
attract more buyers, but many have had to shed their cherished 'luxury' market categorization.
Mumbai Metropolitan Region (MMR) has the least average apartment size among all top cities
at 530 sq ft now from 960 sq ft in 2014. Average sizes in both MMR and Pune are calculated on
the carpet area while for the remaining cities it is based on the built-up area.
Newspaper/Online ET Realty (online)
Date September 16, 2019
Link https://realty.economictimes.indiatimes.com/news/industry/realtors-cut-flat-sizes-in-weak-market/71159972
The main southern cities of Chennai, Bengaluru and Hyderabad have seen size reduction of 8%,
9% and 12%, respectively, over the past five years. What also makes these cities unique is that
the prevailing average sizes of apartments are among the highest, Puri said.
On further analysis, it emerges that affordable homes priced less than .`40 lakh have seen the
maximum decline in sizes over the previous years, while ultraluxury homes saw the least.
Bengaluru has seen maximum reduction in average affordable property sizes. In 2014, average
size of an affordable unit was 1,070 sq ft area — this fell sharply to around 710 sq ft in 2019.
Though the city has high demand for mid-segment properties, affordable homes are also
attracting contemporary homebuyers.
Pune, India’s other IT hub, has seen the least reduction in sizes of affordable units at 20% in the
past five years. This coincides with the fact that within the city, affordable homes have
maximum demand and builders are wary of tampering with sizes.
________________________________________________________________
Over 44,500 buildings in Madurai lack RWH systems
By the first week of September, the officials have covered 1.51 lakh buildings.
After checking close to half of the 3.2 lakh buildings in the city for rainwater harvesting
structures, the Madurai Corporation has found that 22,372 buildings have RWH only in name
and another 44,515 buildings do not have RWH system at all. Notices have been issued to all
the defaulters.
The corporation officials started checking the 3,20,823 residential, commercial and government
buildings in the city for RWH under the Jal Sakthi Abhiyan scheme to enrich ground water
resources and water conservation one-and-a-half-month ago.
By the first week of September, the officials have covered 1.51 lakh buildings. While inspection
of the remaining buildings was under way, notices have been served to 66,887 building owners.
During the inspection, 84,130 buildings were found to have working RWH structures.
―Notices have been served to the defaulters and their buildings will be inspected again after a
fortnight to check whether the RWH rule is complied with,‖ said an official from the
corporation.
Last week, the officials could inspect only 10,884 buildings. Although a target of 40,000 houses
per week was set, they could not meet it last week due to other works. All the remaining
buildings are expected to be covered by the end of this month, the official said.
In order to ensure that the corporation is leading by example, all the buildings of the corporation
were inspected first. Most of the buildings had RWH structures intact.
Six corporation schools have working RWH structures, whereas work is under way to create the
facility in the remaining buildings, the official said.Madurai corporation commissioner S
Visakan had recently said that people will be made to install RWH through sensitization
programs. A couple of awareness meetings involving stakeholders including residents have
been completed.
A few more meetings will also be conducted at zonal-level. The corporation does not believe in
punishing people to make them follow the rules. Taking action against those who have not set
up RWH will only be the last step, he said.
Another official said that the corporation will shortly launch a mobile application to record the
details of buildings, so that handling the data of the buildings will be much easier.
At present, the buildings, which have working RWH is marked by pasting a sticker in front of
Newspaper/Online ET Realty (online)
Date September 16, 2019
Link https://realty.economictimes.indiatimes.com/news/industry/over-44500-buildings-in-madurai-lack-rwh-systems/71146880
the house. Once the app is launched, details can be recorded electronically along with
photographs, he said.
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Funding sources, adequacy likely challenges for proposed
affordable housing last-mile fund: ICRA
These measures, including the creation of a Rs 20,000-crore fund for the last-mile funding
of affordable and mid-segment housing projects, are part of the government’s recent
initiatives to bolster the overall economy.
The government’s proposed creation of Rs 20,000 crore fund for the last-mile financing of
stalled affordable and mid-segment housing projects is likely to face challenges of sources and
adequacy, said rating agency ICRA.
In the backdrop of weak performance of residential real estate sector, as well as the acute
housing shortage currently prevalent, especially for the economically weaker sections, the
government on Saturday announced a further slew of measures.
These measures, including the creation of a Rs 20,000-crore fund for the last-mile funding of
affordable and mid-segment housing projects, are part of the government’s recent initiatives to
bolster the overall economy.
Most of these have achieved around 60% completion but lack cash flows for the balance 40% of
their construction. The fund, which is proposed to be created as a category-II AIF, would
support projects which are net worth positive, and have not been classified as an NPA or
referred to as an NCLT.
―While the initiative provides a structured method of infusing liquidity into stuck projects, and
thereby seeks to address the key issues of project funding, completion and delivery, the
adequacy of the fund, as well as the establishment of funding sources, are issues which are
expected to pose certain challenges in implementation,‖ said Mahi Agarwal, Assistant Vice
President and Associate Head at ICRA.
As per Government estimates, around 3.5 lakh dwelling units would be eligible for funding
support through this measure. Most actual constructed units, however, have largely been in the
range of 80-110 square metres.
Considering this as the typical range for unit size, and assuming an average construction cost of
around Rs 1,700 sq ft and 60% completion, the amount required for funding of the balance 40%
of the project construction cost could spread over a range of around Rs 20,500 – 28,200 crore.
Thus, depending on the actual sizes of the individual dwelling units, the fund size of around Rs
20,000 crore may be sufficient to cover the construction cost for only a part of the eligible
Newspaper/Online ET Realty (online)
Date September 16, 2019
Link https://realty.economictimes.indiatimes.com/news/industry/funding-sources-adequacy-likely-challenges-for-proposed-affordable-housing-last-mile-fund-icra/71149899
houses.
―While the Government is committed to providing Rs. 10,000-crore, the balance Rs. 10,000-
crore is proposed to be funded by other investors, like the LIC, banks, sovereign funds, the
development financial institutions? (DFIs) etc. However, given the prevailing macro-economic
weakness, both domestically and internationally, investor ability and appetite to contribute to
the fund remains to be seen,‖ Agarwal added.
The establishment of adequate funding sources, together with an efficient and time-sensitive
process, would go a long way in ensuring the overall efficacy of the fund, and enable the
Government to achieve its twin objectives of giving a much-needed boost to the residential real
estate sector, as well as providing Housing for All by 2022, ICRA added.
The additional measures like relaxation in ECB guidelines for financing of home-buyers under
the PMAY, and reduction of interest charged on housing building advance through linkage to
10-year G-Sec yields, are also expected to provide some stimulus for the sector.
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About 40,000 societies to benefit from Maharastra’s self-
redevelopment plans
A GR issued through a government resolution gave a boost to structures that are over 30
years old.
Of the one lakh registered housing societies in the state, nearly 40,000 will benefit from self-
redevelopment benefits agreed to in-principle by the state government on Friday.
A GR issued through a government resolution gave a boost to structures that are over 30 years
old.
Ahead of the assembly elections, the state government cleared the recommendations put forth
by a high-powered committee for self-development projects of old registered cooperative
housing society projects in Mumbai, Pune, Thane and others urban areas.
Housing department officials told TOI that self-redevelopment means where the existing
housing society comes together to reconstruct its building which is old and dilapidated.
The government resolution talks about several concessions for registered housing societies
opting for self-redevelopment and the prominent features include a single window for all
approvals and a time-frame of six months after submitting the application.
These registered societies that wish to carry out self-redevelopment will be granted 10%
additional FSI along with the permissible FSI as per the development control rules that were
cleared by the government.
The state cooperative housing federation members have said it will pave the way for old
registered societies that were earlier dependent on developers to go on their own to redevelop
their projects. They will not have to face inordinate delays with strict monitoring of a committee
that will have members from the federation too.
On the cash component, the societies will also be able to avail a government subsidy of up to
4% on the loans that these societies can avail for self-redevelopment while Transfer of
Development Rights (TDR) will be made available to housing societies at 50% of the rate and
concessions for premium that planning authorities levy which will benefit the society’s
members.
―Mumbai, Pune and Thane have several such housing projects that are older than 30 years. They
will benefit from this move as the government has several concessions for such projects that
Newspaper/Online ET Realty (online)
Date September 16, 2019
Link https://realty.economictimes.indiatimes.com/news/industry/about-40000-societies-to-benefit-from-maharastras-self-redevelopment-plans/71143207
were stuck due to developers who would give their commitment but would delay the project,‖
vice president of Maharashtra State Cooperative Housing Federation Suhas Patwardhan said.
It will prompt more old societies to register with the cooperative department, he added.
The federation’s members said societies will benefit from the extra floor space index (FSI),
faster and time-bound approvals, rebates on loans, penalising erring contractors who delay
construction work, as well as a reduction in premiums for these buildings.
The GR stated that apart from mandatory registration of contractors, it suggested a vigilance
committee comprising two members of the housing society and one from a bank to keep watch
over the project and submit progress reports to the planning authority every three months.
Several concessions in stamp duty and taxes, suggested by the committee, have been given a
green signal by the government.
As per the GR, if a society completes the self-redevelopment project within the fixed time, they
can be be discounted from Land Under Construction Assessment Tax (LUC Tax). It was also
recommended that Rs 1,000 should be the stamp duty as for Pradhan Mantri Awas Yojana
homes when they carry out the agreement for their new homes. For homes sold in the sale
component, the stamp duty shall be as per prevailing rates.
More In Control
Several old housing projects that had earlier reached out to developers in the city are keen on
this proposal. Their members will chalk out the plan with the federation.
―We will soon call a meeting of our society members and execute the self-redevelopment plan,‖
a senior citizen from a housing project in the Kothrud area said.
Pune resident Varsha Bhandarkar, whose housing project has been stuck in redevelopment for
several years because of the inordinate delay on part of the developer, said the government’s
move will check unscrupulous developers. ― Finally, we can execute our own plan,‖ she said.
Residents of old societies can appoint a contractor and share the benefits that otherwise would
have been taken over by the builder, Patwardhan said. They can now expect bigger houses after
the construction in a time-bound manner.
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