July 16, 2021 - CREDAI Bengal Homes
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July 16, 2021
CREDAI Bengal Daily News Update | 16.07.21
WEST BENGAL NEWS
Newspaper/Online ET Realty ( online )
Date July 16, 2021
Link https://realty.economictimes.indiatimes.com/news/industry/kolkata-soon-all-
high-rise-must-have-rooftop-gardening-rainwater-harvesting/84463971
Kolkata: Soon, all high-rise must have rooftop gardening &
rainwater harvesting
The authorities are in the process of making the necessary modifications in the building
rules. NKDA has already developed rooftop gardening in some of its market complexes.
The New Town Kolkata Development Authority (NKDA) will soon issue the final notification
for all high-rise buildings in the township to have mandatory provision for rooftop
gardening and rainwater harvesting, along with a few other rules.
The authorities are in the process of making the necessary modifications in the building rules.
NKDA has already developed rooftop gardening in some of its market complexes.
NKDA had issued an advisory in March, urging residents to take up rooftop gardening and
develop rainwater harvesting systems in their housing complexes, along with a few other
measures, like planting trees in all plots, setting up electric vehicle charging points at car
parking spaces inside housing complexes and developing waste water recycling systems.
NKDA officials said the aim of mandatory provisions for rainwater harvesting and rooftop
gardening is to have a green and clean New Town and develop a sustainable environment for
the township to keep up with its ‘green city’ tag. New Town has been awarded the ‘platinum-
rated Green City certificate’ by the Indian Green Building Council (IGBC) for its initiatives on
creating a sustainable environment.
According to the advisory, a waste water recycling system should be developed in all buildings,
including group housings, that have a minimum discharge of 25,000L and above per day for
flushing of toilets, gardening, car wash-ing and other uses. The roof area of each building
should also have reflecting paint and solar panels to minimize heat absorption.
NKDA has also proposed a maximum permissible limit of potable water supply of 120 litres per
capita per day for the residential population and 40 litres per capita per day for the floating
population. To increase the green cover, NKDA has set a target of planting 10,000 trees this
season.
________________________________________________________________
OTHER NEWS
Newspaper/Online The Week ( online )
Date July 15, 2021
Link https://www.theweek.in/news/biz-tech/2021/07/15/impact-of-stamp-duty-cuts-
is-very-real-and-happy-for-indian-real-estate.html
Impact of stamp duty cuts is very real and happy for Indian real
estate
Sales rose and prices remained stable, shooting the sector with optimism
Despite being pounded by the second wave of COVID-19, India’s residential real estate has
held its ground through 2021 so far, according to a report released on Thursday by consultants
Frank Knight India. Sales rose and prices remained stable, shooting the sector with optimism
for the coming months.
And they have a new mantra to chant for that success — stamp duty cuts.
Of the 67% year-on-year sales in the first six months of this year, two cities constituted nearly
half of the total sales amongst key markets. Mumbai and Pune posted 45% of the total sales, and
experts attribute the reason, beyond all other factors, to one simple, yet significant government
move. The decision to cut stamp duty.
Aiming to boost housing sales and nearly 260 industries associated with the real estate sector,
Maharashtra’s Uddhav Thackeray government had cut stamp duty from 5% of the agreement
value down to just 2% from September till the end of the year. Energised by the results, the
government later further extended the sop, this time at a rate of 3%.
“We are in a much better position this year than last year,” analyses Shishir Baijal, chairman
and managing director of Knight Frank India after launching the report. “One market did
extremely well—demand was phenomenal in Mumbai and Pune. And we see similar stimulants
in Kolkata and Bengaluru.”
This is because both West Bengal and Karnataka have now jumped on to the bandwagon of
cutting stamp duty to kickstart property sales that had bit the dust after the pandemic and
lockdown. Chief minister B.S. Yediyurappa while proposing the state budget last month spoke
of cutting stamp duty from 5% to 3% for flats valued between 35 lakh and 45 lakh rupees, while
Mamata Banerjee went the whole hog in its state budget last fortnight, offering a stamp duty
rebate of 2% for registration of deeds and slashing of circle rates by 10%This has perked up the sector. Of course, it remains to be seen whether the Mumbai-Pune ‘boom’ will replicate elsewhere, as stamp duty cuts to properties worth less than 45 lakh rupees would leave out a good chunk of the inventory available in a pricey market like Bengaluru, for instance. “Glad West Bengal did not put a restriction on the price category,” quipped a Knight Frank India official. “Fundamentally, there is demand,” argues Baijal. “What we are doing is trying to stimulate that pent-up demand. Today, we feel all the things are in place — requirements, low interest rates, price correction and affordability. There is no reason why such a stimulus shouldn’t work,” he added. ____________________________________________________________________
Newspaper/Online Money Control ( online )
Date July 15, 2021
Link https://www.moneycontrol.com/news/business/real-estate/residential-sales-up-
67-yoy-in-h1-2021-despite-covid-19-second-wave-7176651.html
Residential sales up 67% YoY in H1 2021 despite COVID-19
second wave
A clear outcome of the pandemic was seen in the share of mid-range and high-end
property segments. The share of sales of homes costing less than Rs 50 lakh constituted
42% of all sales in the January-June 2021 period
Residential sales recorded a 67% increase on a year-on-year basis in H1 2021 despite the
COVID-19 second wave. Launches also jumped 71% YoY, a report titled India Real Estate –
Residential, January-June 2021 by Knight Frank India has said.
A total sales of 99,416 residential units were recorded in the first half of 2021 (H1 2021) across
top markets, while new launches in the same period (January – June 2021) were recorded at
103,238 units, it said.
The second quarter of 2021 recorded a 185% YoY rise as the second wave of Covid-19
remained less disruptive for the sector despite severity, the report said.
H1 2021 saw a rise of 67% YoY in sales volume with the first half of this period recording the
larger part of the total volumes. During the early part of this year, sales volumes were greatly
influenced by two markets – Mumbai and Pune, that together constituted over 45% of the total
sales amongst key markets, the report said.
These two markets were given their orbital velocity by the Maharashtra government’s decision
to lower stamp duty rates for a limited period. While residential sales started to show a
resurgence, the momentum got impacted by the second wave of the pandemic starting towards
the end of March 2021.
Interestingly, the period of the second wave coincided with that of the first wave last year which
had brought the residential sales market to a screeching halt. Fortunately, the second wave,
despite its extremely morbid potency, was less severe on the residential real estate market.
As sales volumes stabilised, especially in the early part of H1 2021, unsold inventory reduced
by 1% over the same period last year. Prices remained mostly contained with a reduction of -1%
to -2% Year on Year (YoY), the report said.
A clear outcome of the pandemic was seen in the share of mid-range and high-end property
segments. The share of sales of homes costing less than Rs 50 lakh reduced by around 500 basis
points (BPS) and constituted 42% of all sales in the January-June 2021 period.Homes costing over Rs 1 crore constituted about 19% of all sales, while units at Rs 50 lakh to 1 crore improved by approximately 400 BPS to be at 39%. The reducing proportion of affordable homes (less than 50 lakh) is directly related to the challenges thrown up by the pandemic which reduced the economic confidence of home buyers in that category due to the threat of job loss, reduced income, inching CPI and other challenges, it said. New launches in H1 2021 were higher by 71% YoY and were not surprisingly led by the two markets of Mumbai and Pune in Maharashtra. All markets saw launches increase significantly as developers took measures to capitalize on the strength of demand. A majority of the new launches were recorded in the first quarter of the year, while the impact of the second wave in Q2 2021 was felt in equal proportion by developers which impacted launches as well. Q2 2021 accounted for a little more than 1/4 of all launches in the first half of 2021. However, a comparison with the pandemic affected quarter from a year ago shows that Q2 2021 has recorded a YoY growth of 388% over Q2 2020. “The gradual resumption of economic activity and increasing availability of the vaccine had sparked market traction in the second half of 2020 and this momentum carried over into Q1 2021. The second wave of COVID-19 infections has impeded this momentum but should be seen as more of a speed bump as YoY growth in market volumes remains strong in half-yearly and quarterly terms in the January to June 2021 period,” said Shishir Baijal, Chairman and Managing Director, Knight Frank India. The limited period stamp duty cut which spiked home sales in Mumbai and Pune adequately demonstrates the need for policy level intervention to revive the residential market. Going by the tremendous success of the stamp duty cut in Maharashtra, other states may also consider similar demand stimuli at appropriate times that will not only help sales velocity but also propel economic activity, he said. The significant increase in sales activity stemmed the fall in residential prices that was seen in 2020. Price levels in four of the eight markets were observed to remain at the same level or grow marginally YoY in H1 2021. In comparison, just one market had been able to maintain price stability in H2 2020. While developers offered flexible payment schemes to push sales across markets, the incidence of direct discounts was markedly lower during H1 2021. The last four quarters marked by the pandemic have given rise to different sets of considerations for home buyers which has led to a renewal of buyer interest. Whether for want of larger homes or housing security, or indeed for the purpose of long-term investment, there has been a strong revival. Barring the affordable segment which was impacted by the uncertainties arising from the economic disruptions of the pandemic, the strength of the market was adequately demonstrated. “We expect the residential segment to remain buoyant due to the attitudinal shift in mindsets of potential buyers and as and when normality returns, we expect the sales volumes to pick up pace,” Baijal said. The unsold inventory has seen a reduction over the last year, albeit at a modest rate, reflecting the healthy pick-up in sales right across the markets. These markets have shown excellent promise in the demand appetite that had been holding back due to the second phase of the pandemic.
It is expected that demand will revive as the unlocking progresses and people are able to complete their sales process. _______________________________________________________________________
Newspaper/Online Money Control ( online )
Date July 15, 2021
Link https://www.moneycontrol.com/news/business/real-estate/the-curious-case-of-
lapsed-real-estate-project-maps-and-rera-registration-7172801.html
The curious case of lapsed real estate project maps and RERA
registration
Several Noida and Greater Noida developers are finding it difficult to secure loans to complete
projects as they do not have valid maps or an authority registration
There are over 100 realty projects in Noida and Greater Noida that are finding it difficult to
renew their Real Estate (Regulation and Development) Act (RERA) registration.
Why? The validity of their project maps has expired.
The resultant spinoff is that securing a loan for project completion has become a challenge for
these developers.
That has, in turn, triggered a chain reaction. Many of these projects include promoters who have
not paid their dues to the Noida or Greater Noida housing authorities, on account of which their
plans are not getting renewed.
This has led to UP RERA not renewing their registration.
Unwilling banks
That’s not all – banks are not willing to lend to such projects in the absence of up-to-date maps
and RERA registration. The net losers are the hapless homebuyers who have invested their life
savings into these projects.
The Uttar Pradesh Rear Estate Regulatory Authority (UP RERA) was set up in March 2017 in
Lucknow under the RERA Act, 2016. The exclusive bench in Greater Noida started functioning
from September 2018.
“In 2017, all new real estate projects in Uttar Pradesh were registered under UP RERA and had
their maps validated by the authorities for a period of five years. Currently, there is no problem
with projects that have a valid map. RERA registration of projects is valid until maps are valid,”
explains Balwinder Kumar, member, UP RERA.
100 plus projects
However, there were more than 100 ongoing real estate projects in 2017 who had to register
with the RERA Authority after the Act was implemented.
Most of these projects do not have maps that are validated as their timeline has lapsed.“This is either because their dues with the authorities have not been cleared as they are under financial stress or are abandoned or are being heard by the NCLT (National Company Law Tribunal) bench,” Kumar told Moneycontrol. He adds: “This is all inter-connected. The validity of their maps has not been extended by the authorities due to non-clearance of dues on account of which, they could not seek extension for their RERA registration. There are currently hundreds of projects whose RERA registration has lapsed because of non-extension of maps. They cannot approach financial institutions for a loan for completing projects, on account of this.” So, what’s the solution to the logjam? UP RERA solution UP RERA has suggested to builders, whose projects are on the verge of completion, to submit extension of map applications before the authorities. “Their registration can be extended by RERA for 1.5 years if they deposit the application for extension of maps with the authorities,” said Kumar, adding that the biggest challenge right now is that even if “we offer 1.5 years of extension, it cannot be done beyond 2021.” Developers receive a one-year relaxation on registration validity and UP RERA has offered an additional exemption of six months for all under-construction projects since the onset of the pandemic. The authorities intend to help promoters whose projects are under construction and are willing to hand them over to buyers soon. "We are working out a way to help such 40-50 project promoters so that the projects can be salvaged," Kumar pointed out. “We have currently undertaken inspection of 150-200 real estate projects of which 76 have been inspected and reviewed by inspection teams. After this exercise, we will work out a strategy to complete these projects,” he stated. UP RERA has already held talks with several developers and it may take another 15 days to put a strategy in place, Kumar said. According to him, these developers have been asked to submit a plan for completion of the delayed projects within the time fixed by the authority at the review meeting. _____________________________________________________________________________
Newspaper/Online ET Realty ( online )
Date July 16, 2021
Link https://realty.economictimes.indiatimes.com/news/industry/odisha-cm-
releases-rs-385-crore-for-26-lakh-construction-workers/84464176
Odisha CM releases Rs 385 crore for 26 lakh construction workers
The state government had also paid a sum of Rs 1,500 to each construction worker in the
state during the first wave of the COVID-19 pandemic last year.
Odisha Chief Minister Naveen Patnaik Thursday released COVID-19 assistance to the tune of
Rs. 385 crore for 26 lakh construction workers in the state. Under this package, every
construction worker will get an assistance of Rs 1,500, an official press release said.
The state government had also paid a sum of Rs 1,500 to each construction worker in the state
during the first wave of the COVID-19 pandemic last year.
Describing the construction worker as "Biswakarmas" who sacrifice their happiness for the
comfort of others, Patnaik said, "No one can deprive poor people of their rights. The poor have
every right to live with dignity.
"They build big buildings with their backs exposed to the scorching Sun. They build good
houses for others while staying in inhospitable conditions. On every page of our progress lies a
story of the sacrifice and hard work of the workers."
Speaking on the occasion, the chief minister said, the financial assistance will help alleviate the
plight of the construction workers during the pandemic.
Construction workers from all the 314 blocks of the state participated in the programme through
video conferencing.
Earlier, Patnaik had announced COVID-19 assistance packages for landless farmers, dairy
farmers, street vendors, and other poor people.
________________________________________________________________Newspaper/Online Financial Express ( online )
Date July 15, 2021
https://www.financialexpress.com/industry/delhi-ncr-gets-more-luxury-
Link houses-17-of-total-housing-units-launched-in-the-last-6-months-are-
luxury/2291024/
Delhi-NCR gets more luxury houses: 17% of total housing units
launched in the last 6 months are luxury
Amid pandemic, investments in residential real estate is now looked at as a trend with
more people buying houses.
Amid pandemic, investments in residential real estate is now looked at as a trend with more
people buying houses. It’s not just affordable housing that people are looking at, but sales of
luxury and ultra-luxury houses (having prices above Rs 1.5 crore) have increased. On the back
of this growing trend, real estate developers in Delhi and NCR region have supplied more
houses in the luxury segment. Of the 10,570 housing units launched in Delhi-NCR during the
first six months of this year, 17 per cent of houses belonged to the luxury segment, said
Anarock Property Consultants. Last year, luxury houses were not more than 9 per cent of the
overall houses constructed.
From 2018 till June 2021, as many as 11,300 new luxury units have been launched in the entire
Delhi-NCR. The year 2020 saw the lowest share of luxury housing supply.
Santhosh Kumar, Vice Chairman at Anarock Property Consultants said, “Noida accounted for
the maximum new luxury share (73 per cent) in the first half of this year, followed by
Gurugram with a 22 per cent share, and Greater Noida with a 5 per cent share.” However, other
regions of NCR like Ghaziabad, Faridabad and Bhiwadi did not see any new luxury housing
launches in this period. According to the report, Godrej Properties Limited, DLF Group, ATS
Green, Sobha Limited, and Birla Estates among others were the top providers of luxury housing
this year.
Gaurav Pandey, CEO- North, Godrej Properties Limited, said that the demand in the luxury
segment is strong now. “For us, the bookings have exceeded the initial estimates for luxuryhouses developed in Noida. Given the rise in demand and people’s interest in luxury houses, Godrej Properties is coming up with another luxury housing project in Noida itself,” Pandey told Financial Express Online. Meanwhile, the overall demand in residential real estate has increased significantly. JM Financial Institutional Securities in its report last week highlighted that 85% of houses under construction for this year have been booked and residential markets are now witnessing a rise in clearance of inventory across ready to move in properties as well. _____________________________________________________________________
Newspaper/Online Financial Express ( online )
Date July 16, 2021
Link https://www.financialexpress.com/industry/despite-declining-trend-covid-19-
impact-muted-on-mmr-pune-residential-prices/2291226/
Despite declining trend, Covid-19 impact muted on MMR, Pune
residential prices
In comparison, the fall in prices over the last one year has not been much, with MMR seeing a
decline of 2% in H1 2021 versus H1 2020, and Pune a decline of 1.5% during the same period.
The Mumbai Metropolitan Region (MMR), the most expensive real estate market in India, and
Pune have seen a decline of 17% and 17.5% respectively, in prices of residential properties in
the last five years. However, the impact on prices has been muted in the last one year, despite
the disruptions caused by the Covid-19 pandemic.
According to property consultants, the continuous decline in prices, historically low interest
rates and additional discounts offered by real estate developers have made these two buyer’s
markets.
Rajani Sinha, national director and chief economist research, Knight Frank India, told FE, “This
price reduction is on paper. If one takes into account price negotiations with developers and
discounts, the price decline would be much steeper.”
In MMR, the average price of residential properties hovered around Rs 8,093 per square foot
between January and June 2016, which is down to Rs 6,750 per sq ft in January-June 2021.
MMR still remains the most expensive residential market in the country. In Pune, the price has
dipped from Rs 4,860 per sq ft in H1 2016 to Rs 4,010 per sq ft in H1 2021.
In comparison, the fall in prices over the last one year has not been much, with MMR seeing a
decline of 2% in H1 2021 versus H1 2020, and Pune a decline of 1.5% during the same period.
The findings are a part of ‘India Real Estate January-June 2021’ report by real estate consultants
Knight Frank India.The National Capital Region (NCR) meanwhile, despite being infamous as a purely investor- driven market, has not witnessed much fluctuation in prices. Traditionally high unsold inventory and higher number of stressed properties in the market are possible explanations for this trend. In the last five years, the price decline has been around 4%, with prices now at Rs 4,165 per sq ft in NCR. Bengaluru, which has traditionally been a buyer’s market, has also seen stable prices over the last five years. The city recorded a price of Rs 4,920 per sq ft in January-June 2021, which is a mere 2.3% up from Rs 4,805 per sq ft recorded in the same period in 2016. Another southern city, Hyderabad, seems to be emerging as a real estate hotspot. The market has seen a 30% surge in prices over the last five years, backed by a sharp increase in demand and a pick-up in commercial and office real estate, which is lending support to momentum in the residential real estate segment. In Hyderabad, the prices hover at around Rs 4,720 per sq ft in H1 2021 as against Rs 3,620 per sq ft in H1 2016. “Hyderabad market is doing very well. It’s been a few years since the uncertainty around the bifurcation of the state has been put behind, and the supportive policies of the state government are reflecting in the overall residential momentum. Hyderabad has seen a sharp rise in residential sales as well, which is also driving prices,” Sinha said. The Indian real estate market recorded a year-on-year increase of 67% in residential sales, with 99,416 residential units sold between January-June 2021 across top markets. New launches in the same period surged 71% y-o-y at 103,238 units. As sales volumes stabilised, especially in the early part of H1 2021, unsold inventory reduced by 1% over the same period last year. Prices remained mostly contained with a reduction of -1% to -2% y-o-y, according to Knight Frank. _____________________________________________________________________
Newspaper/Online ET Realty ( online )
Date July 16, 2021
Link https://realty.economictimes.indiatimes.com/news/regulatory/ahmedabad-
civic-body-extends-property-tax-rebate-till-july-30/84464142
Ahmedabad civic body extends property tax rebate till July 30
Property tax collected between April 1 and July 15 this year has registered an increase of
50% as compared to the same period in 2020, said officials.
An increase of Rs 153.68 crore in property tax collection has encouraged Ahmedabad
Municipal Corporation to extend its 10% rebate scheme for advance tax payment up to July 30.
Property tax collected between April 1 and July 15 this year has registered an increase of 50%
as compared to the same period in 2020, said officials. “The response from citizens was very
encouraging so the civic body has decided to extend the scheme. The AMC had announced the
10% rebate scheme for advance property tax payment in June. Then, on June 25, it pushed back
the deadline to July 15. Now, it was extended it to July 30,” said officials, adding: “In 2020, the
advance rebate scheme was extended till August-end.”
The officials said that AMC has seen 70% rise in collection from the eastern parts of the city.
Viratnagar, Nikol, Gomtipur, Odhav, Vastral, and Amraiwadi registered the highest increase of
90%. “This was probably because Odhav, Vastral, and Gomtipur are industrial areas. With
industries getting back to normal, property owners are taking benefit of advance tax payments,”
said officials.
AMC saw only 50% hike in collection from the central zone as well as western parts of the city.
The increase was noticed in advance tax payment on commercial properties more than
residential ones. Civic officials said, “The tax on residential property is a smaller amount.
Hence, a significant increase was not registered.”
Further, officials said that the increase in vehicle tax was also an indication that more
vehicles had been sold this year as compared to last year. As against a collection of Rs 7.32
crore in 2020 between April 1 and July 15, the collection this year was Rs 28.69 crore — an
increase of 292% or Rs 21.37 crore.
The overall tax collection of AMC which included property tax, vehicle tax and professional
tax, was Rs 347.93 in 2020 during the same period which increased by 54% and was Rs 536.45
this year.
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