30-aug-2019€¦ · this trend continues to grow stronger ... definitely boost the demand of...

30-Aug-2019

CREDAI Bengal Daily News Update | 30.08.19

NRI EYE INDIAN PROPERTY MARKET AS A SAFE BET

GCC-based NRIs are investing heavily in the Indian property market with the rupee now

expected to touch Rs20 against UAE currency. India is increasingly perceived as a safe haven

for Indian expatriates.

A fluctuating rupee, and introduction of various regulations to bring in transparency and

accountability, are making real estate more lucrative for NRIs, experts say.

Rupee is hovering near 73 against the US dollar since the past one week. "The drop in rupee can be

seen as an investment opportunity for individual buyers as well as institutional investors. Over the

past few months we have witnessed a lot of interest from NRIs. This trend continues to grow stronger

due to the timely reforms introduced that brought transparency and accountability in the sector," said

Anshuman Magazine, CBRE Chairman, India, Southeast Asia, Middle East and Africa.

With the real estate industry estimated at about Rs3 trillion annually, about seven to eight per cent of

the inventory is being bought and held by NRIs each year.

"This amounts to about Rs21,000-30,000 crore of annual purchases by NRIs each year. Due to

weaker rupee, a 10 per cent depreciation allows NRIs to enter at a 10 per cent discount compared to

the domestic resident counter parts," Nisus Finance Managing Director and CEO Amit Goenka

added.

Given the current trend of enquiries and purchases in the last two-three months, it is being estimated

that this consumption will rise to about 10-12 per cent.

"Hence three to five per cent increase in NRI consumption of residential and commercial inventory

will further boost project sales and suck up significant unsold inventory," Goenka maintained.

According to Naredco national president Niranjan Hiranandani, for NRIs, this situation (rupee fall) is

a déjà vu of sorts as it is the same as the scenario the country witnessed in 2012.

"Home buying is regaining traction and RERA has made it better and in a situation where property

prices at primary level are down by 10-15 per cent, and the currency valuation adds another 10-15

Newspaper/Online Khaleej Times (online)

Date August 29, 2019

Link https://www.khaleejtimes.com/nris-eye-indian-property-market-as-a-safe-bet

per cent, it definitely is a scenario where the NRI buyer is back," he added.

Property portal Zvesta.com's founder Rajat Dang seconded that, saying fall in the rupee will

definitely boost the demand of properties in India and NRIs are willing to invest in realty market

especially in the metro cities to get good returns.

"Online property aggregators are also getting much benefit through this with their increase in traffic

numbers from day to day. NRIs are easily searching for the best properties in India with having a

golden opportunity to buy it at an affordable price," he added.

Omkar Realtors, which is marketing its recently launched integrated realty project 'Sereno OID' in

Andheri in the suburban Mumbai in both domestic and global markets, has received almost 100

bookings from NRIs, which is 20 per cent of total inventory, averaging a total cost of Rs125 crore,

into its project.

"For NRIs, depreciating Indian rupee seems to be encouraging further investments back home in a

property due to lesser dependence on finance and lesser outgo of EMI," Omkar Realtors' Director

Devang Verma said.

"We see investment interest bouncing back as expat Indians are not only keen on purchasing a home

in their homeland, but have also shown an increased interest in purchasing purely for investment

purposes," he said.

Over the years, NRIs have expanded their foothold in the primary Indian housing market. Currently,

it is estimated that almost a quarter of the purchase are emanating from the NRI sphere.

Amongst the NRI source market, the GCC region has a lion's share constituting around 46 per cent of

the investments. Out of the estimated $12.5 billion to be invested in financial year 2019-2020, GCC

based NRIs are expected to contribute around $5.75 billion. This will be up by 15 per cent when

compared to the year before. A major portion of the investments is directed towards major Indian

metropolises such as Mumbai, Delhi-NCR, Hyderabad, Bengaluru, and Pune, etc.

As per the World Bank estimates, in 2019, the GCC region is expected to grow by 2.1 per cent,

inching up from two per cent growth in 2018. There have been laudable efforts by the GCC

economies towards economic diversification.

"NRIs are now preferring to buy a home in India. As property prices are viable and the market is well

regulated now, buying a home in India is perceived as a risk-mitigating step," said Ankit Kansal,

Founder & MD, 360 Realtors.

360 Realtors is one of the first Indian Real Estate advisories that has a very extensive ground-

presence across the region. It has offices in almost all the major Indian cities in the GCC region.

Around 30 per cent of its revenues come from the GCC region.

NRI inflow into India will continue to rise in the times to come. The expats will look into a range of

property options from smaller units such as studio & 1 BHK to the larger units such as 3 & 4 BHK.

The surge in GCC-based NRI investments will stem from a host of factors such as growing

contingencies in the region, formalisation in Indian property market & affordable property options.

As RERA has been enforced in India, the market is now transparent & very well regulated, thereby

resulting in a spurt in NRI confidence levels. Price options are also affordable, which will be a force

multiplier.

Investment by NRIs in domestic property market is from $5 billion in 2014 to $10.2 billion in 2018

and the market is expected to touch $180 billion by 2020.

"Being the hub for Bollywood celebrities, Transcon Developers' Uber Luxury project 'Transcon

Triumph' at Andheri West has seen an upsurge in sales from NRI's residing in Dubai and GCC. This

year the NRI investments in the project were seen at 18 per cent at Rs30 crore as compared to 8 per

cent at Rs11 crore last year," said Sarojini Ahuja -- VP, Sales & Marketing, Transcon Triumph.

In the recently concluded budget, the Government proposed NRI portfolio investment route to be

merged with foreign portfolio investment route. This will lead to increase in NRI investments in

Indian capital market.

The decision to allow foreign institutional investors to subscribe to REITS and INVITs is also a

welcome move.

The Government has also proposed to relax local sourcing norms for FDI. FDI in real estate will

provide a significant boost to the sector in terms of greater foreign capital inflows thus creating more

job opportunities and revitalising the growth of the realty sector.

BKC sees newer residential developments in the luxury budget category eyeing high rental income

As India's financial capital Mumbai sees the emergence of Bandra Kurla Complex (BKC) as the

premier Central Business District (CBD), the residential demand from the corporates in this micro

market is witnessing a spiraling effect.

The micro market is transforming parallel in terms of growing social infrastructure, be it healthcare

adding newer hospitals, consulates, international educational institutions, public facilities such as

gardens and entertainment and cultural zones, along with new transport system being the metro

network. BKC's all-round development seen in the last years has transformed this commercial zone

into a mixed-use zone - a simple live-work space.

This centrally located business-cum-leisure hub in India's financial capital now boast of corporates,

banks, blue-chip companies, government, banks, foreign firms, consulates have made BKC as their

address in Mumbai has witnessed a growth of more than 300 per cent in just over a decade's time.

Today, BKC has become the most sought-after destination for commercial and housing requirement

making it second most expensive office market in India and 20th in the world. This had led to

property rates touching a whopping Rs32,000 to Rs35,000 per square foot for office space while the

residential space is pegged Rs28,000 to Rs30,000 per sq ft, while the rentals yields are pegged at

Rs75-100 per square foot again depending on the location in and bordering BKC.

BKC's residential rental YoY income is appreciating by 10 per cent per cent plus annually as the

location sees the advent of domestic corporate migration and arrival of expats.

"The commercial success of BKC has put tremendous pressure on the housing demand within

bordering and surrounding areas as India's younger corporates prefer a "Walk to Work" concept in a

congested city like Mumbai, remarks Babulal Varma, Managing Director (MD), Omkar Realtors &

Developers which has developed two boutique luxury residential projects off BKC.

Leading developers such as Omkar Realtors, Sunteck Realty, Radius, Wadhwa, Rustomjee, Kanakia

have introduced luxury residences in and around BKC to cater to the rising need of apartments be it

outright or on rental for corporates and their workforce. Omkar Realtors project VIVE located across

the road to BKC is an HBA-designed, furnished and fully equipped luxurious apartments project

offering 1&2 BHK Plug & Live apartments.

"BKC today is in a clear race to offer a corporate lifestyle and living comparable to global finance

hubs be it Singapore, Hong Kong or Shanghai, from the perspective of safety, convenience,

infrastructure, leisure, hospitality, etc. It is the preferred location for all MNCs and Fortune 500

companies entering India or looking to shift to a bigger setup. BKC is seeing a visible enhancement

in the number of space requirements being floated with most of them coming in from the Fortune

500 clients," said Navin Makhija, Managing Director of The Wadhwa Group.

BKC, as a financial, commercial and retail central hub make it as a perfect destination to experience

a global lifestyle. It has spawned an immediate surge for premium lifestyle in and around the

commercial hub. Adding to this is the much favoured 'Walk-to-Work' lifestyle preferred by the new-

gen millennial, making it a hub with millions of professionals involved on a daily run is seeing a

surge in rental income, says Himanshu Kanakia, Managing Director, Kanakia Group for the story.

According to leading IPC's and realty channel partners closely following the BKC growth story over

the years, the residential supply to cater to the BKC need is surely falling behind with its limited

quality inventory. And this puts lease rentals at an advantage over other prime markets in Mumbai.

"In terms of lease rental itself, the limited inventory available in BKC micro market has a distinct 15-

20 per cent markup compared to the current prevailing trend in other markets," points out a leading

channel partner.

Ashutosh Limaye, director and head-consultancy services at Anarock Property Consultants, said:

"The real estate market has seen many phases. Of late, due to the slow down there has been a shift to

buyers' market from investors market. The market will continue to remain a buyer's market for a few

months more. A small component of it is investors who are looking at duel objective of making it

their own home after some years and earning rents in the interim."

'Investors- end users' is a new category of buyers taking shape and growing. There is also a category

of 'end users-sellers'. This is typically a small town/ district located rich buyer a house in metros for

his children to live while studying, and selling it off after the studies are over.

In the case of investors, they were traditionally investing in mid segment and luxury market due to

price appreciation. Fence sitting investors are looking at buying resale houses that have a chance of

redevelopment and making the returns after redevelopment.

_____________________________________________________________________

_________________________________________________________________________________

Newspaper/Online The Times of India


Government’s booster dose for automobile industry to lift affordable

housing

The automobile sector workforce is one of the biggest drivers of affordable housing segment

with homes priced below ₹40 lakh in the country.

The government‘s slew of measures to revive various sectors, including the automobile industry,

isn‘t just a booster shot for these industries‘ stakeholders. It will curtail the deeper impact of the

slump on other sectors, including housing.

In less than a year, car and two-wheeler sales sunk to historic lows while job cuts in the industry

breached historic highs. Unfortunately, the Indian auto industry‘s rough ride through its biggest-ever

crisis in decades also has a spill-over impact on other industries like real estate,

specifically affordable housing.

The automobile sector workforce is one of the biggest drivers of affordable housing segment with

homes priced below ₹40 lakh in the country.

―A crisis in the automobile sector creates a significant perception of job risk, which causes this key

clientele to desist from home-buying decisions. It now seems that the government has averted the

further escalation of the automobile sector crisis by giving a new lease of life to the various sectors,

including automobile and MSMEs,‖ said Prashant Thakur,Prashant Thakur, Director & Head –

Research, ANAROCK Property Consultants.

While the automobile crisis would not have caused affordable housing sales to come to a screeching

halt, sales would definitely shift into low gear. Last year, affordable housing sales in three major

hubs including Pune, Chennai and the National Capital Region were firing on all cylinders.

Overall affordable housing sales in Pune, Chennai and NCR combined have been on the rise since

2017 - these cities together saw sales of over 32,000 units priced at or below ₹40 lakh in 2017. Sales

increased by 18% to nearly 37,800 units in 2018. In the first half of 2019, more than 27,000

affordable homes were sold in these three cities, showed data from ANAROCK.

―In a short span of announcing the Union Budget, the government has acted to ensure that various

industries receive the much-needed support just ahead of festival season. Any move after this may

have resulted in disaster. We are optimistic that the upcoming festival season will bring good demand

for affordable housing,‖ said Jaxay Shah, National Chairman, the Confederation of Real Estate

Developers Association of India (CREDAI).

Newspaper/Online ET Realty (online)


Link https://realty.economictimes.indiatimes.com/news/industry/governments-booster-dose-for-automobile-industry-to-lift-affordable-housing/70889908

In a bid to boost economic growth, the government last week announced series of measures,

including a package to tackle auto sector distress, upfront infusion of ₹70,000 crore to public sector

banks, lifting credit flow and prompt lower rates for housing and auto loans.

Among the three cities NCR has the largest pile-up of unsold budget homes with around 67,250

units. The Gurugram-Manesar belt is home to two automotive giants - Maruti Suzuki India and one

unit each of Hero MotoCorp and Honda Motorcycle and Scooters India. Pune has nearly 46,360

unsold units priced within Rs 40 lakhs, while Chennai has just 10,590 units.

According to Thakur, had it not been for the incumbent government's determined interventions to

make affordable housing the 'new black', the residential sector faced the prospect of a rather deep

implosion.

Due to the inevitable symbiosis between the automobile crisis and the real estate slowdown,

affordable housing - the industry's 'poster child' in recent times - could have faced a backlash. Both

these industry slowdowns are the product of dampened consumption sentiment, and there was a dire

need for a slew of solutions.

According to industry experts, the government has made its move in the nick of time, intervening

directly or indirectly for various industries. The Finance Ministry‘s much needed boost to the

slowing economy gives affordable housing developers in these three cities to get off ‗red alert‘ and

focus on marketing their offerings in the all-important festive season.

___________________________________________________________________

Mhada to give permission for redevelopment of cessed buildings in

Mumbai

Mhada will also be the SPA for all cluster redevelopment projects in the island city if the

cluster includes cessed and non-cessed buildings.

The Maharashtra Housing Area Development Authority (Mhada) will now be the special planning

authority (SPA) for redevelopment of all cessed buildings in the island city.

Mhada will now be empowered to sanction building permissions for cessed structures instead of

the BMC.

Mhada will also be the SPA for all cluster redevelopment projects in the island city if the cluster

includes cessed and non-cessed buildings.

The cabinet on Wednesday gave its approval to a proposal to take away from the BMC the powers to

grant redevelopment permission in such cases and give it to Mhada.

―In areas like Dongri and Pydhonie there are numerous buildings in close proximity to one another

and redevelopment of a single building was simply not possible,‖ vice-president of Mhada Milind

Mhaiskar said.

Mhaiskar said the authority would focus on old and dilapidated buildings that have been taken up for

redevelopment and left midway by developers as the projects became financially unviable.

Also once a building is declared as old and dilapidated residents will be allowed six months to

appoint a developer. In case they fail to do so, Mhada will acquire the land and carry out the

redevelopment.

Activists greeted the move with caution, saying there was a danger that buildings that are old but

wellmaintained may also be declared old and dilapidated if they are in prime areas.

Mhaiskar said the cost of acquisition was now accepted as 25% of the ready reckoner rate as the land

is encumbered and landlords are unable to get them vacated.

While Mhaiskar claimed that acquisition cost would not be an issue, in the past Mhada has refused to

take up redevelopment of cessed buildings saying it did not have the funds for land acquisition.



Link https://realty.economictimes.indiatimes.com/news/industry/mumbai-mhada-to-clear-cessed-building-redevelopment/70891691

Cluster redevelopment is the solution for crowded areas like Dongri and Pydhonie, where there are

illegal buildings spread around the area as well.

In areas like Walkeshwar, Marine Drive and Opera House, where there is space around buildings,

Mhada will carry out redevelopment of single buildings, said Mhaiskar.

___________________________________________________________________

DHFL lenders plan to put builders' loan worth Rs 32,000 crore in SPVs

These special purpose vehicles (SPVs) could also work like pooled entities, such as alternative

investment funds (AIFs), said multiple people aware of the discussions over a debt resolution

plan for DHFL.

Lenders to Dewan Housing Finance Corporation Ltd (DHFL) are considering hiving off a chunk of

the mortgage firm‘s loans outstanding from builders and transferring that to companies created

specifically to hold the debt.

These special purpose vehicles (SPVs) could also work like pooled entities, such as alternative

investment funds (AIFs), said multiple people aware of the discussions over a debt resolution plan

for DHFL.

Under such an arrangement, DHFL‘s lenders will transfer as much as Rs 30,000-32,000 crore of its

Rs 42,000 crore wholesale loans outstanding to the SPVs. If they go ahead with this plan, DHFL will

become a predominantly retail-focussed shadow bank with a much lighter balance sheet, making it

easier for its lenders to rope in a strategic partner.

They are currently evaluating the ownership structure of the SPVs, which may even house a project

each, and the process by which they will enforce the conditions on the loans given by DHFL, the

people said.

Development managers are expected to be appointed for each project to complete the work. DHFL‘s

lenders will get paid from the cash flows of the SPVs, after servicing fees to the development

managers and servicing of any additional debt infused in the projects for their completion.

The new development managers will infuse fresh funds either through equity or fresh working capital

loans, kickstart the stuck real estate projects and generate cash flows through the sale of the

inventory to pay back the loans, the people said.

Cash Flow Beneficiaries

DHFL and SBI didn‘t respond to emails until press time Thursday. AIF is a trust like structure where

the collection of the debt extended by DHFL to the wholesale book will happen and the lenders will

be serviced out of that, the people aware of the discussions said.

The SPV or the AIF is expected to be the beneficiary of all future cash flows — the repayment of



Link https://realty.economictimes.indiatimes.com/news/allied-industries/dhfl-lenders-plan-to-put-builders-loan-worth-rs-32000-crore-in-spvs/70902344

loans given to the projects. They will distribute the proceeds to the unit holders or the banks. The

idea is to create a legally tenable structure that gives the lenders a direct access to the underlying real

estate assets and its cash flows.

The lenders have been in discussions with business groups with interests in real estate, such as the

Adani, Tata, Piramal groups, to come on board as the development managers of the projects and

complete those in lieu of a development management fee.

The Adani Group is expected to pick up several of the projects, the people said.Emails to the Adani

and Tata groups did not generate a response. The Piramal Group called the news speculation, and

declined to comment further.

Although the lenders are pushing for one manager for each project, there could also be multiple

managers roped in, each managing a cluster. According to the people ET spoke to, to facilitate the

new asset managers to complete the projects and help servicing the debt obligations, the security or

the collateral (land, FSI approvals, etc.) for the underlying assets against which loans are outstanding

will be enforced. This will also help ringfence the development manager from any future legal

challenges.

This step is likely to follow an immediate intervention whereby lenders are looking to take a 51%

stake in the company by converting a part of the debt into equity at par and facilitating a change of

management.

DHFL‘s board is scheduled to meet on Friday, where it would consider a proposal for issuance of

equity shares and other securities, including by way of preferential issue, against debt as part of a

resolution plan.

The company had borrowed from banks, mutual funds, insurers and retail depositors to bankroll

realty projects which subsequently got stuck. An official said an AIFlike structure would suit the

lenders and project managers. ―AIF is a trustee structure. The assets move but not the liabilities.

They are payable when able. In any other structure like an NBFC, the debt liabilities will also move

and the new manger will have to honour these obligations,‖ said the official. ―An AIF manager is not

borrowing; he is managing as a trustee. Unit holders will economically benefit.‖

___________________________________________________________________

New property cards for flat owners across Maharashtra

The Maharashtra cabinet on Wednesday cleared the “vertical property rules” to create a

database of all flats, buildings and commercial complexes in a bid to check fraudulent

transactions.

All flat owners in the state will soon get supplementary property cards, which will have details such

as carpet area, amenity space and bank loan information, along with their 7/12 extracts.

The Maharashtra cabinet on Wednesday cleared the ―vertical property rules‖ to create a database of

all flats, buildings and commercial complexes in a bid to check fraudulent transactions. ―The cabinet

will now put up the draft for suggestions and objections,‖ a senior government official said.

The Settlement Commissionerate and Directorate of Land Records had been pushing the proposal to

ensure that city survey offices in urban areas and collectorates in the rural belt have detailed records

of all vertical properties — flats, buildings and commercial complexes.

At present, Maharashtra has nearly 56 lakh property cards in urban areas and about 2.5 crore 7/12

extracts in the rural belt with details of the horizontal properties.

―This will be a path breaking initiative. The vertical property rules, cleared by the state cabinet, will

help create property records for all flats. This may be the first-of-its-kind initiative in the country,‖

settlement commissioner and director of land records S Chockalingam told TOI.

―The proposal will provide buyers and sellers, as well as government departments, with firm

ownership records. This will also protect the property owners‘ rights,‖ he said.

Chockalingam said the ―vertical property rules‖ would prevent property-related frauds, where one

flat or commercial unit is sold or mortgaged to multiple buyers or financial institutions. ―The

commissionerate had sent a proposal to the state government to formulate the Maharashtra Land

Revenue Record of Rights and Registers for Apartments and Buildings rules under the Maharashtra

Land Revenue Code (MLRC), 1966,‖ he said.

Department officials said that at present, no government department maintained ownership records of

vertical properties because the evidence of ownership has to be proved through a chain of documents,

such as agreements with builders or society records.

A senior official said, ―With the new development, the present property cards of 7/12 extracts will

become the principal documents of ownership. Besides, there will be an additional supplementary

property card. Both the cards will be issued together.‖



Link https://realty.economictimes.indiatimes.com/news/residential/new-property-cards-for-flat-owners-across-maharashtra/70888652

Once the rules are approved, the department will launch pilot projects separately in the urban and

rural areas. ―The respective offices will have to conduct a survey by visiting each individual

building. It will be initially difficult, as the entire process will be manual. We will eventually work

out a mechanism to update the details online,‖ he said.

__________________________________________________________________

FAR may be revised in Gurugram in two months: Haryana CM

Since the assembly elections are likely to take place in mid-October, the decision may be taken

only after it.

A decision to revise the city‘s floor area ratio (FAR) will be taken by the state government in next

two months, said chief minister Manohar Lal Khattar on Wednesday. His assurance comes amid

growing demand by realtors for a revision in FAR.

Since the assembly elections are likely to take place in mid-October, the decision may be taken only

after it. The CM was addressing a gathering during an event organised by Gurugram Home

Developers and Plot Holders Association on Wednesday.

―If the demand for increasing FAR were raised on the day when construction of fourth floor was

allowed, it would have been resolved on the same day. We have been working for the development

of Gurugram, and have received immense support from the developers. Now if you continue to

support us, the pace of development in Gurugram can be doubled,‖ Khattar said.

The demand to increase FAR was raised by developers in the city after the government allowed the

construction of fourth floor. The existing FAR in Gurugram is 1.98. Developers in the city want the

government to increase it to 3. I

f FAR is increased, plot owners will be able to construct and occupy more area on their land. As per

existing norms, where FAR is 1.98, the plot owner can construct on around 66% of the area. If FAR

is revised to 3, this can increase to around 80%.

Elaborating on the state‘s performance in ease of living and doing business, the CM claimed

that Haryana‘s performance graph is unmatchable. ―Building multiple storeys on smaller plots is not

a good idea. The decision to increase FAR would still take two more months, and I would request all

not to violate the norms till the final decision is taken.‖

Moreover, the realtors‘ association has welcomed the announcement by the CM and hopes the

decision would be in its favour.

―The CM was here, and he has assured that the decision on revision of FAR will be taken in two

months. The government will constitute a committee and take a decision in our favour,‖ said Ramesh

Singla, president, Gurugram Home Developers and Plot Holders Association.

___________________________________________________________________



Link https://realty.economictimes.indiatimes.com/news/industry/far-may-be-revised-in-gurugram-in-two-months-haryana-cm/70892261

Jaipur development body to auction plots from September

In the past, the civic body failed to earn revenue after selling its plots.

As the real estate market is reviving gradually and demand for Jaipur Development Authority‘s

commercial and residential property is slowly increasing, the civic body has decided to organise

auctions from September.

Unlike the present system of auctioning one property a day, the JDA has equipped itself to sell

multiple properties in a day. A senior JDA official said , ―To expedite and simplify the process, we

have opened four counters. The details of the properties that will be auctioned will be uploaded on

the JDA website.‖

In the past, the civic body failed to earn revenue after selling its plots. JDA‘s projects is staring at an

uncertain future as civic body coffers are drying fast at a time when it has projects worth more than

Rs 2,500 crore in its kitty. The situation has turned worse due to prolonged slump in the real estate

market.

According to official sources, in the absence of inflow of funds, it was a challenge to complete these

projects. ―Hoping to fill its coffers, the JDA recently launched three new housing schemes. However,

not many buyers showed interest to purchase plots in JDA schemes. Auctioning its prime land was

the only option to earn revenue. However, it is a challenging task, too,‖ said a source.

The craze that was witnessed among buyers to purchase shops at the newly constructed SMS

Hospital underpass faded just after JDA increased the base price for auction.

Source said, ―At SMS underpass, JDA has constructed 21 shops. So far, three shops have been sold.

But in the last four auctions, not a single bidder participated in the process. Moreover, buyers who

purchased shops are not coming forward to deposit the entire amount.‖

___________________________________________________________________



Link https://realty.economictimes.indiatimes.com/news/industry/jaipur-development-body-to-auction-plots-from-september/70889531

Goa: Ports minister assures relief for seven houses on GTDC land

During an inspection of the area, Lobo told reporters that seven houses exist on land that was

acquired by the government from a local landlord in 1976 to create tourism-related

infrastructure.

The long-pending issue of tenants living on land belonging to the Goa Tourism Development

Corporation (GTDC) at Saunta Vaddo, Calangute, will be resolved soon, ports minister Michael

Lobo and GTDC chairman Dayanand Sopte said on Wednesday.

During an inspection of the area, Lobo told reporters that seven houses exist on land that was

acquired by the government from a local landlord in 1976 to create tourism-related infrastructure.

The seven households have been struggling since then to hold on to their part of the land, with the

matter moving through various courts for decades.

In recent years, the GTDC developed public toilets and parking facilities on the land in its

possession. But the land on which the seven houses are located remained disputed.

Lobo said a final settlement was imminent following Wednesday‘s visit by the GTDC chairman.

―The seven houses that are in a dilapidated condition can soon be repaired and renovated. They will

be separated from the rest of the GTDC property by a compound wall,‖ Lobo said.

Sopte said the issue had dragged on for many years and needed to be resolved. ―They (tenants) have

not got what is rightfully theirs. We‘re working on a final solution to this issue,‖ he said.

__________________________________________________________________



Link https://realty.economictimes.indiatimes.com/news/residential/goa-ports-minister-assures-relief-for-seven-houses-on-gtdc-land/70891871

TNSCB invites consultants for housing project in Chennai

TNSCB has applied for financing from the World Bank to meet the cost of the project.

Tamil Nadu Slum Clearance Board (TNSCB) has invited applications for consulting services in the

roles of gender specialist, communication specialist and procurement consultant for its Tamil

Nadu Housing and Habitat Development Project.

TNSCB has applied for financing from the World Bank to meet the cost of the project.

The last date for the submission of expression of interest (EOI) is September 16 (till 5.45pm).

EOI shall be sent to the superintending engineer, project monitoring unit- Tamil Nadu Housing and

Habitat Development Project, TNSCB, Chennai.

___________________________________________________________________



Link https://realty.economictimes.indiatimes.com/news/residential/tnscb-invites-consultants-for-housing-project-in-chennai/70885095

Revised Kanpur metro plan spares GSVM buildings

The new drawing of Metro alignment has been provided to the medical college authorities by

UPMRC, which will carry out the construction work, college authorities told TOI on

Wednesday.

The alignment of Kanpur Metro at GSVM Medical College and its associated Lala Lajpat Rai (LLR)

hospital has been changed to avoid demolishing a portion of the newly constructed reception

complex on the hospital campus. The new alignment also spares the oxygen plant and canteen on the

hospital campus, which were to be shifted for the Metro project.

The new drawing of Metro alignment has been provided to the medical college authorities

by UPMRC, which will carry out the construction work, college authorities told TOI on Wednesday.

The shifting of the oxygen plant, according to the medical college authorities, would have affected

medical and emergency services. The college authorities at a meeting chaired by principal secretary

(housing & urban planning department) Deepak Kumar last week, had put forth their objections

against the Metro alignment (route), mentioning in detail how it would impact the medical services.

It was then decided to review the existing alignment and look for an alternative so that the medical

services were not affected. A team of UPMRC along with officials of Kanpur Development

Authority (KDA) reviewed the alignment and found possibilities of change in the alignment. A new

alignment was then proposed, which is now acceptable to the medical college administration.

Dr RK Maurya of GSVM Medical College, who represented the college at the meeting held last

week, said that the college administration received the new drawing of the Metro alignment on

Monday and this new alignment was acceptable to it.

Dr Maurya, who holds the charge of superintendent-in-chief (SIC) of LLR Hospital, said, ―Now, we

don‘t have any objection to the new Metro alignment since all our facilities — reception complex,

emergency block, canteen and liquid oxygen plant — would not be touched and remain intact. When

the Metro work is carried out in our vicinity, some portion of our boundary wall would be

demolished but we are okay with it. We will face some hardships due to the work, but are ready to

contribute our bit for a good cause.‖

―When the Metro work would be carried out close to the hospital boundary wall, we will have to

provide an alternate route to the patients and their attendants so that they can easily reach the hospital

without facing any hiccup. This will be required as our main entrance route would be affected by the

construction work,‖ he added.

In the first phase, Kanpur Metro would run between IIT and Motijheel in Swaroop Nagar. All nine



Link https://realty.economictimes.indiatimes.com/news/residential/revised-kanpur-metro-plan-spares-gsvm-buildings/70897251

stations on this route will run overground. The construction work is expected to begin in October and

is likely to be completed by December 2021.

___________________________________________________________________

Tamil Nadu eases permission procedures for construction of small

houses

The Tamil Nadu government issued an order to this effect, which was made public on

Wednesday.

Planning to construct a house within 1200 square feet built up area? You may need to just apply

online seeking planning permissionand commence constructions.

The Tamil Nadu government issued an order to this effect, which was made public on Wednesday.

The order of the municipal administration and water supply department dated August 21, 2019 said

that the new exemption to ease the planning permission procedures for smaller constructions can be

utilised for constructions that are carried out in an area within 2500 square feet with built up area

under 1200 square feet.

While applications for planning permissions can be filed online, the existing process of physical

inspection by officials from the respective local bodies at the construction site has been kept aside for

such constructions.

Constructions will be allowed only on approved plots.

___________________________________________________________________



Link https://realty.economictimes.indiatimes.com/news/residential/tamil-nadu-eases-permission-procedures-for-construction-of-small-houses/70892157

Maharashtra cabinet approves Nashik metro project worth Rs 2,100

crore

The Central and state governments will together pitch in Rs 939.3 crore for the Rs 2,100.06-

crore project. The MahaMetro will raise the remaining Rs 1,161.3 crore through loans.

The state cabinet on Wednesday gave its approval to the Nashik Metro‘s detailed project report

(DPR), which was prepared by the MahaMetro.

The DPR will now be sent to the Centre for its final nod. The project will be known as ‗Nashik

Metro Neo‘.

The Central and state governments will together pitch in Rs 939.3 crore for the Rs 2,100.06-crore

project. The MahaMetro will raise the remaining Rs 1,161.3 crore through loans.

While the Centre‘s share is Rs 387 crore, the state government‘s share (including Cidco and NMC) is

Rs 552.19 crore. The NMC‘s contribution will come in the form of land for three depots.

―The state cabinet has given its nod to the Nashik Metro Neo project. It‘s a milestone and proud

moment for the Nashik city. We will now submit the proposal to the ministry of housing and urban

affairs (MOHUA). We will immediately start work on the project once we get MOHUA‘s nod,‖ said

Brijesh Dixit, the MD of MahaMetro.

Swanky rubber-tyred coaches would run on two elevated corridors covering 32 km — with a total of

25 stations.

Two corridors have been planned initially. Corridor one will stretch from Gangapur to Mumbai Naka

covering a length of 10 km. This stretch will have 10 stations. Corridor two, meanwhile, will be from

Gangapur to Nashik Road, covering 22 km and 15 stations.

CBS will be an interchange station where both the corridors meet. There will be two feeder corridors.

Feeder corridor one will cover Satpur colony-Garware-Mumbai Naka stretch, while feeder corridor

two will run cover Nashik Road-Nandur Naka-Shivaji Nagar.

The electric bus coaches will be 25m and 18m in length and they will have carrying capacity of 200

and 300 passengers, respectively. The buses will have rubber tyres and draw power from the

overhead electric wire having 600-750 V DC supply.

The buses will be air-conditioned with automatic door closing system, level boarding, comfortable

seats, passenger announcement and passenger information systems with electronic display.



Link https://realty.economictimes.indiatimes.com/news/infrastructure/maharashtra-cabinet-approves-nashik-metro-project-worth-rs-2100-crore/70891117

The stations will have staircases, lifts and escalators with passenger information displays. The station

entries and exits will be on both sides of roads.

The three depots, which are to be developed for bus operation and maintenance, will be located at the

starting and endpoints of the routes.

___________________________________________________________________

Analysts expect Ramco Cement's EPS to rise 35-50%

On enhanced capacity, Ramco Cements is expected to see volume growth in the range of 8-15

per cent for the next two years.

The Ramco Cements could surprise the Street on earnings per share (EPS) gains, and odds are

shortening on the mid-sized cement maker beating estimates of linear profit growth.

At the vanguard of that effort is cost control when growth, particularly in peninsular India, was rather

uneven. This provided an edge relative to peers. Ramco was circumspect with capacity expansion

and instead focused on improving cash-flows.

As a result, Ramco‘s debt to EBITDA (operating profit before tax) ratio fell from its peak range of 3-

5 to 1.5 in FY19. By implementing this strategy, the company has achieved capacity utilisation of 90

per cent in FY19 on integrated capacity. This is higher than the industry's capacity utilisation of 67

per cent.

At such elevated utilisation level and well-managed balance sheet, Ramco is now seeking to add

capacity by 45 per cent to 20 million tonnes in the next two years.

On enhanced capacity, Ramco Cements is expected to see volume growth in the range of 8-15 per

cent for the next two years.



Link https://realty.economictimes.indiatimes.com/news/allied-industries/analysts-expect-ramco-cements-eps-to-rise-35-50/70891593

This growth range would be little lower than that for sector leader UltraTech Cement.

With increasing expectations of stable demand growth of 5-6 per cent in the second half of the

present fiscal, Ramco‘s enhanced capacity should boost its earnings from selling per tonne of

cement.

Ramco Cement is expected to benefit from stable demand in the eastern region, which would offset

any volatility in demand in the southern markets.

In FY18, the company generated EBITDA per tonne of Rs 1,129, which fell to Rs 921 in FY19.

Analysts expect the company's EBIDTA per tonne to improve to Rs 1,100-1,200 range in the next

two years due to the expansion.

More importantly, cement realisations could improve in the range of 3-4 per cent for the next two

fiscals.

Given these factors, according to various estimates, Ramco‘s EPS in the next two years is expected

to improve in the range of 35-50 per cent.

On the valuation front, considering one-year forward earnings, the company is trading at an

EV/EBITDA of 13.3, which is at a premium to its peers due to its size, high capacity utilisation and

low cost.

__________________________________________________________________

Johnson Lifts sets sights on government deals to maintain growth

The closely held Chennai based company has bagged tenders worth ₹250 crore for providing

lifts and escalators for multiple phases of the Mumbai Metro project, which is currently under

construction.

Johnson Lifts, India‘s largest elevator and escalator maker, is eyeing government projects including

metro projects and modernisation of railway stations to maintain growth amid continuing slowdown

in the real estate sector as it aims to double its sales by 2025.

The closely held Chennai based company has bagged tenders worth ₹250 crore for providing lifts

and escalators for multiple phases of the Mumbai Metro project, which is currently under

construction.

It has also won orders totalling ₹120 crore for modernisation of railway stations falling under

Western and Central Railways that came under the government‘s scrutiny after the Elphinstone Road

railway station stampede in 2017 that killed over 25 commuters.

―Over the last couple of years, the builder segment in residential real estate has seen subdued demand

with few takers for projects, but there has been a significant growth in opportunities due to major

urban infrastructure programmes,‖ Yohan K John, director, Johnson Lifts told ET.

The firm expects to increase its billing revenue to ₹2,000 crore in this financial year from ₹1,850

crore last year. The sales on its books are much higher but they have not been realised owing to

delays in execution by builders, said John.

He said the company is also seeing incremental demand from tier-2 and -3 cites, which it is

leveraging to tide over the ongoing patch of stagnation in the housing sector.

―Some years back we were only selling in metros and state capitals, but now we have launched

competitive models tailored for satellite towns as well,‖ said John. With a 20% market share,

Johnson Lifts dominates the country‘s elevator market.

___________________________________________________________________



Link https://realty.economictimes.indiatimes.com/news/allied-industries/johnson-lifts-sets-sights-on-government-deals-to-maintain-growth/70891283

UP-RERA resolves 11 complaints against builders

Among those heard, maximum cases were related to Supertech. Out of 10 cases against the

company, seven were resolved.

The Uttar Pradesh Real Estate Regulatory Authority (UP-RERA) on Wednesday resolved 11 of the

sixteen cases filed against the builders in its eight Conciliation Forum meeting.

Among those heard, maximum cases were related to Supertech. Out of 10 cases against the company,

seven were resolved. For the other cases various options were suggested by the conciliator to

consider and find a viable solution to resolve the matter.

Apart from Supertech, one case each from APV Realty, Gaursons Promoters, Strategic Developers

and Mahagun (India) were amicably resolved.

The complaint regarding Ajnara India was referred back to court while in the case of Jaiprakash

Associates various options were suggested by the conciliator to consider and find a viable solution to

resolve the matter.

In the NCR Conciliation Forum, more than 600 conciliation requests have been received till date.

___________________________________________________________________



Link https://realty.economictimes.indiatimes.com/news/industry/up-rera-resolves-11-complaints-against-builders/70889159

Jaycee Homes' developer gets bail after 18 months

Bhagtani, who is associated with the Jaycee Homes group of companies, surrendered to the

Mumbai police in January 2018 after the Bombay High Court withdrew the interim protection

granted to him.

Developer Diipesh Bhagtani, who was arrested by the Economic Offences Wing on charges of

allegedly cheating home buyers in four housing projects, was granted bail by a metropolitan court on

Wednesday.

Bhagtani, who is associated with the Jaycee Homes group of companies, surrendered to the Mumbai

police in January 2018 after the Bombay High Court withdrew the interim protection granted to him.

He would be released from judicial custody upon furnishing personal bail bond of Rs 10 lakh and

additional cash sureties.

During the hearings of the bail application, the investigating officer had told that court that the EOW

froze 125 bank accounts of Bhagtani and it contained only Rs 1 crore, while over 1,000 buyers were

duped in the over Rs 500 crore scam.

The officer also pointed out that Bhagtani's father and brother, who were also named in some of the

seven FIRs lodged by the EOW, were holed up in Dubai.

Bhagtani group companies had collected investments from home buyers for projects in Mira Road,

Dahisar, Kanjurmarg and Powai - none of which were constructed and only one of them is registered

with the Maharashtra Real Estate Regulatory Authority.

Home buyers were shocked and disappointed with the development and plan to appeal against the

order.

___________________________________________________________________



Link https://realty.economictimes.indiatimes.com/news/regulatory/jaycee-homes-developer-gets-bail-after-18-months/70891406

National security act slapped on Greater Noida builder

This is the first case in Uttar Pradesh in which a builder has been detained under the stringent

NSA, which prohibits bail to an accused for 12 months, subject to judicial review, the

administration said.

The Noida administration on Wednesday invoked the National Security Act (NSA) against a builder

who had illegally constructed a multi-storey building which collapsed last year, leaving nine people

dead.

This is the first case in Uttar Pradeshin which a builder has been detained under the stringent NSA,

which prohibits bail to an accused for 12 months, subject to judicial review, the administration said.

On July 17, 2018, two adjoining buildings had collapsed in Greater Noida's Shahberivillage, leaving

nine people, including a child and two women, dead.

"Builder Shahbuddin, a native of Meerut, has already been arrested. He has been booked under the

Gangsters Act," District Magistrate, Gautam Buddh Nagar, B N Singh told reporters in a joint press

conference with SSP Vaibhav Krishna.

"Now, his bail plea is due to be heard in high court in coming days and the administration has

decided to detain him under the National Security Act," he added.

"Shahbuddin, 47, is in judicial custody since July 25 and if he comes out there is a likelihood of

disturbance to public order," Singh said further.

Probe reports by administration and local authorities found that the buildings had come up illegally

and without any proper approval, as did several others which mushroomed over the years in

Shahberi, less than 50 km from Delhi.

Shahberi falls under the notified area of the Greater Noida Industrial Development Authority

(GNIDA), which had acquired the land from local villagers in 1994, the officials said.

So far, 71 FIRs have been registered against rogue builders over illegal constructions in Shahberi and

nearby areas.

As many as 257 people have been accused in these cases and more than 50 arrested so far, the

officials said.

___________________________________________________________________



Link https://realty.economictimes.indiatimes.com/news/regulatory/national-security-act-slapped-on-greater-noida-builder/70889373

30-aug-2019€¦ · this trend continues to grow stronger ... definitely boost the demand of...

Documents