01 - 10 - 2020

CREDAI Bengal Daily News Update | 01.10.20

Why real estate is now seen as best investment hook by buyers;

concept of ‘Roti, Kapda, Makaan’ returns

Housing demand is higher than ever as people are realizing the value of owning a home as

it is a sense of emotional security in a bleak global scenario such as the current pandemic.

The pandemic has definitely changed everything and created a ‘New Normal.’ The residentia l

real estate market is the silver lining out of the entire pandemic. It ranks among the top asset

classes today. Demand is in fact higher than ever as people are realizing the value of owning a

home as it is a sense of emotional security in a bleak global scenario such as the current pandemic.

People have realized the importance of basics, and the concept of ‘Roti, Kapda, Makaan’ is back

once again. People have realized that owning a home is one of the basic necessities and brings

along a sense of security and comfort. They look at it as an important space that provides

belonging, identity, control and privacy among other benefits.

As the corporate world is embracing work from home as a long-term concept, many are seeking

to upgrade their homes and look for bigger spaces. The rental culture which had gained some

prominence with the young buyers has witnessed a sea change in the past few months. The

demand for ready to move in and luxury homes has increased as customers are looking forward

to investing in quality homes. Not just the elite class group, but also the middle-class income

group will look forward to an upgrade. As there has been a downfall in jobs and income, the

upgrade may not be instant but they will surely plan a better lifestyle; as no matter what,

aspirations always have a value. With many Indian citizens residing in foreign countries planning

to come back to their land; real estate in India is surely going to see a boost.

Along with owning a home, the buyer today demands developments that are well planned and

host a variety of facilities and amenities so that co-users of these spaces are known to each other

and hence, a person knows that they and their family are in a safe environment. Most importantly

Newspaper/Online Financial Express ( online )

Date September 30, 2020

Link

https://www.financialexpress.com/industry/why-real-estate-is-now-

seen-as-best-investment-hook-by-buyers-concept-of-roti-kapda-

makaan-returns/2094760/

buyers will ensure that their surroundings have proper sanitisation facilities, educational institute s

are close by and a locality where social and lifestyle amenities are vibrant.

Homebuyers also want to ensure that no space is wasted and each area is efficiently utilized with

flexibility for creating home offices etc. Work from home becoming the new normal is a major

factor for buyers looking to update to homes with extra rooms/half room.

Developers too, at least most of them, have been nimble to embrace the new normal and adapt to

the altered requirements of the new buyer. These include making architectural changes to fit the

‘work from home’ scenario, which may become a way of life for many businesses; to making

alterations in project amenities. Business centres are a new fad among upcoming luxury projects.

Residents can utilize the same for virtual meetings, video calls, or just simply a professiona l

environment to work at. Every adversity brings opportunity, and currently, there is plenty of

opportunity in residential real estate for both developers as well as homebuyers to grab.

_____________________________________________________________________

Sales in residential sector reached to 65% of the pre-Covid level:

Report

The report said that 29,520 units were sold in Q3 2020, which is 65% of the Q1 2020. NCR,

MMR, Bengaluru, and Pune together accounted for 84% of the sales in the quarter. Also,

new launches in the top 7 cities witnessed 32,530 nee launches against 41,220 in Q1 2020,

reaching nearly 79% of the pre-COVID-19 quarter.

Sales in the residential sector has reached to 65% of the pre-covid level as developers focused on

launching campaign offering discounts, according to a report by property consultant Anarock.

The report said that 29,520 units were sold in Q3 2020, which is 65% of the Q1 2020. NCR, MMR, Bengaluru, and Pune together accounted for 84% of the sales in the quarter. Also, new launches in the top 7 cities witnessed 32,530 nee launches against 41,220 in Q1 2020, reaching

nearly 79% of the pre-COVID-19 quarter.

“Reduced stamp duty charges (in Maharashtra) topped with developers’ discounts and freebies are now a major attraction for several prospective homebuyers in the prevailing scenario. This gives a somewhat positive indicator for the upcoming festive season quarter (Oct-Dec) where we

anticipate housing sales to recover and reach almost the pre-COVID-19 levels,” said Anuj Puri, Chairman, ANAROCK Property Consultants.

Interestingly, Hyderabad, Kolkata and NCR saw their new supply increase by 45%, 24% and 10% respectively during the period. Affordable and mid segments (priced up to INR 80 Lakh)

comprised over 72% share (approx. 23,290 units) of the total new supply in the July-Sept period. Realty developer M3M said that it has delivered eight real estate projects in three months having

sales value of Rs 3200 crore, and 90% of these projects are already sold out.

“The four residential projects located in sector 68, Gurugram are amongst our key offerings that have been conceptualized with the vision of a plush lifestyle. With the announcement of these four residential condos, we have added 1000 apartments to our 'ready-to-move-in' inventory, ”

said Pankaj Bansal, Director, M3M Group.

According to Anarock, unsold inventory in top cities shrunk by nearly 3% on yearly basis – from 6.56 lakh units back in Q3 2019 to 6.36 lakh units in Q3 2020. It reduced by 1% between Q1 2020 and the third quarter.

On q-o-q basis, the jump has been massive for both new launches and sales as Apr-Jun was more

of an outlier quarter with majority activity being grounded.

Newspaper/Online The Economic Times ( online )

Date September 30, 2020

Link

https://economictimes.indiatimes.com/industry/services/property-/-

cstruction/sales-in-residential-sector-reached-to-65-of-the-pre-covid-

level-report/articleshow/78400038.cms

“The residential sector has been witnessing positive market sentiments since the unlocking phase. There might be a change in the consumer behavior pattern that has come along with the ambiguity created by the pandemic but the sector has been successful in regaining the investors and end

consumers' confidence,” said Amarjit Bakshi, CMD, Central Park.

“The sector has also witnessed renewed interest from NRIs in Q3 2020 which outlines the strong prospects of the market. With the festive season ahead and improved market sentiments, we expect the housing segment to emerge strongly in the coming months,” Bakshi added.

Of the 29,520 units sold in Q3 2020, nearly 9,200 units were sold in MMR as against 13,910 units

in Q1 2020, which is 66% of the pre-pandemic quarter. Sales in Bengaluru and NCR were 5,400 units and 5,200 units respectively in Q3 2020 – rebounding by 63% and 64% of the pre-Covid levels. ____________________________________________________________________________________________

‘Upbeat on commercial real estate; to invest Rs 7,000 crore for

developing 12 million sq ft’: Purvankara MD Ashish The realty space has been very encouraging of technology, the rate of tech-penetration has

especially accelerated in last five years.

As the real estate sector gradually tries to find its new normal, Purvankara is already working

on its various expansion plans. The Bengaluru-based developer is further expanding in

commercial real estate. Its managing director, Ashish Puravankara told FE’s Rishi Ranjan Kala

that the company plans to invest Rs 7,000 crore by 2027 to build assets across 12 million sq ft

(msf). This is besides its launch plans for residential space. Excerpts:

Covid-19 forced developers to explore unique ways of engaging homebuyers. What has been

your experience?

In initial days of lockdown, the focus was mainly on safety and security of our stakeholders,

especially workers at construction sites. Next priority was to create a roadmap to provide hassle -

free service for customers. We also ensured there is no delay in handover (apartment) during

lockdown. Our CRM team shifted to online handovers and also set up a digital desk to address

the queries of NRI customers. We identified individuals to perform essential tasks like collection

of agreements, or documents and financial instruments from customers and deposit it in banks on

their behalf.

How are you leveraging digital medium? What has been your experience?

The realty space has been very encouraging of technology, the rate of tech-penetration has

especially accelerated in last five years. Most importantly, data driven marketing has an edge over

traditional marketing tools, as it creates performance-based campaigns through better analysis of

consumer data. At Puravankara, we allocate 1-3% of project costs to budget for software

technologies.

Newspaper/Online Financial Express ( online )

Date October 01, 2020

Link

https://www.financialexpress.com/industry/upbeat-on-commercial-real-

estate-to-invest-rs-7000-crore-for-developing-12-million-sq-ft-

purvankara-md-ashish/2095431/

Early adoption of technology has kept us ahead of the curve and address operational issues that

arose due to Covid. One example would be, first-of- its-kind virtual property launches in

residential segment. We did three virtual project launches in June and July. It generated immense

interest and saw participation of more than 30,000 attendees for all our 3 projects.

What are your plans for commercial real estate and warehousing segments?

For our commercial real estate portfolio we have planned investments of Rs 7,000 crore over the

next 7 years to build assets across 12 msf. Delivering office, retail and mixed-use property will

only reinforce our position as a reputable developer of diversified projects, while also adding

value to our residential mix. We have identified Bengaluru, Hyderabad, Mumbai and Pune and

excellent location of our assets within these markets, combined with the credibility of our

development partners and our technical expertise in design and innovation will only support our

expected take up rates, going forward. Also we are focusing on expanding our product offerings

in commercial/industrial asset classes to cater to increased long-term needs for quality office

space, logistics hubs and other industrial facilities. For realising our aspirations in this business,

we are leveraging on the expertise and network of international players via strategic partnership s.

For instance, our JV with Morgan Stanley to develop warehouses in south India.

How is your residential projects launch timeline looking?

At this juncture, we are working towards zero deviation from our planned launches for FY21

across both our brands, Puravankara and Provident Housing. We are geared with our plan of

launching 11 projects for this fiscal spreading over close to 10.5 msf.

These include six under the Puravankara luxury brand and five under Provident affordable

housing brand. While Covid remains a concern, we are confident that our projects will address

the changing needs of consumers in these times. We are currently planning and designing new

aspects in our upcoming projects to suit needs of the post-Covid world.

For our launch pipeline in FY21, we will be investing close to Rs 3,000 crore and anticipat ing

revenue of over Rs 6,000 crore. Out of which, we have successfully launched closed to 2.5 msf,

which comprises three of our projects — Provident Woodfield, Purva Atmosphere in Bangalore

and Purva Aspire in Pune.

What is the rationale behind entering plotted development?

At Puravankara, we understand the ever-evolving need of buyers. An integral part of our R&D

involves identifying locations, which will be most conducive for living and provide for a better

quality of life and is a sound investment. Our first plotted development project, Provident

Woodfield was purely catering to the lacuna that existed in supply-demand equation. Plotted

development as an asset has gained significant traction in all major and tier II cities. A deep dive

would validate that demand for plotted development projects in Southern India is far better in

comparison to other parts of India. Response to Provident Woodfield, was phenomenal, and we

sold nearing 70% of inventory in less than 24 hours. With the kind of momentum that has been

built around this project over last few months, we expect to close 100% of our inventory, in next

6 months.

What are your views on consolidation in real estate?

Industry has seen consolidation begin almost immediately post-RERA, where cost of regulat ion

could not be borne by all. As we move forward, consolidation will get accelerated and resilient

developers with established legacies will emerge stronger and bigger. It is our belief and

experience that divergence of performance amongst branded and organised players will widen

going forward. Even before Covid, we have always been looking for viable business

opportunities. ____________________________________________________________________________________

DDA Housing Scheme 2020: Pay 1-3% preferred location charges

to choose flat of your choice

The Delhi Development Authority (DDA) is going to launch its housing scheme 2020 in

December with amenities such as rain-water harvesting, multi-level parking, three-tier in-house

water management to supply recycled water for bathrooms among others. The construction of

these flats has been carried out as per the National Building Code 2016.

This new DDA housing scheme also allows prospective buyers to choose the unit of their choice.

They can choose a floor in the tower, corner locations, and green area facing units as well, by

paying 1-3% extra. In the earlier schemes, buyers could only mark their three preferred locations

but would not be given the option to choose a particular flat or unit.

More than 800 flats will be offered in the Higher Income Group with high-end amenities near

Jasola vihar-Shaheen Bagh metro station and more than 300 flats will be up for sale under the

Middle Income Group (MIG) in Dwarka. Nearly 300 flats to be sold to economically weaker

sections in Manglapuri area of Delhi.

DDA is in the process of giving finishing touches to these newly constructed flats for three

categories of buyers. "We are near finishing these flats and hopeful of launching the scheme in

the month of December. Apart from rain-water harvesting, RO-treated water for drinking will be

supplied. The flats have been constructed as per the National Building code 2016 which ensure

structural and fire safety, design provisions for wind and seismic loads, LED and induction lights

and faster lifts," said DDA spokesperson.

"The price for a 3BHK flat is expected to be more than Rs 2 crore, the MIG may command a

price over Rs 1 crore. EWS flat will cost less than Rs 25 lakh," said the DDA official.

In the past schemes, it has been seen that many buyers have returned their flats after allotment

owing to water, structure, amenities and smaller size issues but the DDA has ensured that they

provide modern amenities this time to ensure buyers don't surrender their allotted flats. More than

3,000 allottees of 2017 housing scheme surrendered their flats within a month of the draw of lots,

due to small size and lack of basic facilities. Allottees claimed that there are no roads and not

even drinking water facility.

To avoid the same problem this time, the government agency is now offering only new flats in

locations with metro connectivity and better amenities. DDA will issue details on the amount a

prospective buyer has to pay for applying.

Newspaper/Online The Times of India ( online )

Date September 30, 2020

Link

https://content.magicbricks.com/property-news/delhi-ncr-real-estate-

news/dda-housing-scheme-2020-pay-1-3-percent-preferred-location-

charges-to-choose-flat-of-your-choice/116370.html

A computerised draw will be held in the presence of judges and media for the scheme. DDA will

also issue a prescribed timeline for surrendering flats and cancellation.

________________________________________________________________________

South Delhi civic body plans to levy compensatory regulatory

charges for building plans

The proposal of SDMC’s executive wing states that the new charge will be calculated at the

rate of 0.2% of circle rates for houses of more than 50 square metre area and 0.1% of circle

rates for plots smaller than that.

After introducing garbage user charges, approving professional tax, hiking licensing fee and increasing commercial property tax rates, the cash-strapped South Delhi Municipa l

Corporation is planning to introduce ‘compensatory regulatory charges’. The civic body proposes to levy this new charge when building plans are sanctioned and it is likely to vary on the basis of

area categorisation and prevailing circle rates.

The proposal of SDMC’s executive wing states that the new charge will be calculated at the rate of 0.2% of circle rates for houses of more than 50 square metre area and 0.1% of circle rates for

plots smaller than that. The circle rates in Delhi vary according to the category of the location and range from Rs 7.7 lakh for A category colonies to Rs 23,000 for H category.

According to the proposal that has to be approved by SDMC’s standing committee, while the new

Newspaper/Online ET Realty ( online )

Date September 30, 2020

Link

https://realty.economictimes.indiatimes.com/news/regulatory/south-

delhi-civic-body-plans-to-levy-compensatory-regulatory-charges-for-

building-plans/78402497

compensation/regulatory charge is expected to be Rs1,548 for A category colonies, Rs 491 for B

category and Rs319 for C category colonies, the impact will be double for industria l units and three times for consumers who apply for sanction of building plans for commercial units. The maximum impact will relate to agricultural land and low-density residential areas, for which 2%

of the circle rate will be charged,

The municipal commissioner argues that such a development charge is already being levied in cities like Mumbai, Kolkata, Nagpur and Pune, where it is called development cess, FSI charges, even drainage development charges. Explaining the rationale behind the proposal, a corporation

official said that SDMC is financially in dire straits allegedly because Delhi government hasn’t releasing grants due to it and new sources of revenues have to be identified to undertake the

development works needed in many areas to bring them at par with grade A cities. The official said, “At the time of sanctioning the building plan, various charges, such as additiona l FAR charges and betterment levy, are received, but the civic body has to also take care of

unauthorised colonies, special areas, villages, etc, where services are being provided by the corporation without much revenues coming from there.”

The proposal submits that after the introduction of Master Plan Delhi 2021, the densification of areas increased and the notifiying of 2,500 streets as commercial- and mixed-land-use areas plus

the multi- fold increase in dwelling units across the city led to increase in the demand for services from these areas. “Where there used to be one dwelling unit, 4-5 or more have come up,” the

official said. “Redevelopment of old buildings was also carried out, necessitating more services from the municipal corporations. So, funds for maintenance and upkeep are required.”

An SDMC official said that the additional fee will have to be paid when applying for a new

building plan or when approval is needed for plans to carry out modifications in the existing

structure.

________________________________________________________________

Pune civic body forms special recovery team for property tax

amnesty scheme

According to the scheme, the property tax defaulters have been given waiver of around 80%

of the penalty. They will have to pay the tax and 20% penalty.

The Pune Municipal Corporation (PMC) has formed a special recovery team to implement the

amnesty scheme for property tax defaulters.

As many as 61 people have been roped in to recover the tax from around 3.5 lakh properties. According to the scheme, the property tax defaulters have been given waiver of around 80% of the penalty. They will have to pay the tax and 20% penalty.

The PMC has to recover property tax dues of around Rs4,500 crore, out of which around Rs2,500

crore was penalty, while around Rs2,100 crore were actual tax dues.

“The team will follow up on the pending tax. They will carry out visits to the defaulters’ homes.

The notices have been issued to them,” a senior PMC official said.

He said at present, some of these civic officials were working on Covid-19 duties. They would

now be reassigned the task of tax collection.

“The civic body has decided to keep a cap on the recovery amount for the property tax. The

waiver will be given to all the properties below Rs50 lakh to make sure those property owners in

need were given benefit of this scheme. Mostly residential property would be benefited,” Hemant

Rasane, chairman of the standing committee, said.

As per the civic data, around 10.5 lakh properties were liable for tax in PMC’s jurisdiction. They

include residential as well as commercial properties. Even open plots and government properties

were liable for the tax.

________________________________________________________________

Newspaper/Online ET Realty ( online )

Date September 30, 2020

Link

https://realty.economictimes.indiatimes.com/news/regulatory/pune-

civic-body-forms-special-recovery-team-for-property-tax-amnesty-

scheme/78402262

Rajasthan: Government beats private sector in launching housing

schemes

The trend could be seen in the Real Estate Regulation Authority (RERA), Rajasthan,

registrations in August. While 18 colonies were registered by government agencies, private

players listed 14.

During pandemic, more housing colonies were launched by the government as compared to those

in the private sector in the state. The trend could be seen in the Real Estate Regulation Authority (RERA), Rajasthan, registrations

in August. While 18 colonies were registered by government agencies, private players listed 14.

The total registrations in August and September are 40, out of which private players registered 21 colonies while civic bodies applied to launch 19 colonies. An official at Urban Development Housing (UDH) said, “Many housing colonies, which were relaunched by government agencies,

are not registered at RERA. If one includes these colonies, the government has outrun private firms in the last two months. ”

Rajasthan Housing Board (RHB) is among the leading civic body, which has registered 14

housing colonies at RERA. The other agencies are Jaipur Development Authority (JDA), urban

improvement trust (UIT), Kota, UIT (Udaipur), Jodhpur Development Authority (JDA), Nigam

Jhalwar and others.

Official said while many private developers are waiting for the market condition to revive,

government agencies are launching schemes to benefit the masses as well as to earn profits .

RHB commissioner Pawan Arora said, “In times of pandemic, our aim is to provide houses and

commercial establishments to consumers at affordable prices. We are developing cost effective

schemes on 20 years instalments. ”

Few claimed the government agencies can never compete with private sector in launching

schemes and developers will launch the schemes once the system to receive approvals would

revive once Covid goes away.

Ankur Tiwari, a middle range developer said, “Developers will start construction once labourers

and other supply is resumed properly. Also, many are not approaching the civic agencies at the

Newspaper/Online ET Realty ( online )

Date September 30, 2020

Link

https://realty.economictimes.indiatimes.com/news/residential/rajasthan

-government-beats-private-sector-in-launching-housing-

schemes/78402096

time of pandemic to get projects approved. However, the market would roll again as demand will

surge.”

________________________________________________________________

Rajasthan: Fresh building bylaws likely to be notified later this

week

The suggestions and objections received against the bylaws draft have been clarified by the

department. The notification will be issued once it receives approval from the UDH

minister.

Having received the legal department’s nod, the Urban Development and Housing (UDH) is set to notify new building bylaws in the state.

The suggestions and objections received against the bylaws draft have been clarified by the department. The notification will be issued once it receives approval from the UDH ministe r.

A senior official at UDH town planning wing said, “The implementation of new bylaws is in the final stage. Minister’s nod is awaited and it would be enforced likely in this week.”

Sources said the proposal to construct just seven apartments on a plot measuring up to 750-sq metres has been rolled back. However, after facing protests from the small developer’s

association, the decision was reversed after several deliberations within the department.

Once the notification is released, a promoter can construct a building up to a height of 18 metres (5 storeys) on a 500 square-metre plot and above. The department has now amended the minimum height for a building under the highrise category to 18 metres from 15 metres earlier.

The department has also allowed small plot owners having plot size 90 square-meter to construct

an additional floor. Town planners claimed during the pandemic it was learnt that in smaller plots, basic per capita built-up area is less than the minimum average in terms of general health. As per the calculation, minimum per capita built-up area should be of 9.5 square metres, but it ranges

from 2 sqm to 8 sqm per built area. Permission to construct extra floor would pave the way for more space in the same plot. “As in

urban areas, more than 60% of the plots are up to 90 square-metres of area. On this size, one can currently construct ground floor + 1 storey, while the requirement of the built-up area is almost the same for all area plots. Therefore, it is necessary to have additional built-up area available for

these small plot holders as well.

“Permission will be granted to construct and additional floor,” said a town planner. The

department has also simplified the process of map approval for construction on plots of area up

to 500 square-metre. One can start construction immediately after submitting site plan and

charges at local bodies. Earlier, this provision was only for owners who had a plot measuring 250

square-metres.

________________________________________________________________

Newspaper/Online ET Realty ( online )

Date September 30, 2020

Link https://realty.economictimes.indiatimes.com/news/regulatory/rajasthan

-fresh-building-bylaws-likely-to-be-notified-later-this-week/78402372

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