10 11 - 2020 CREDAI Bengal Homes
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10 - 11 - 2020
CREDAI Bengal Daily News Update | 10.11.20
Newspaper/Online Live Mint ( online )
Date November 09, 2020
Link https://www.livemint.com/industry/infrastructure/luxury-home-sales-
witness-rebound-post-covid-11604929598928.html
Luxury home sales witness rebound post covid
The covid period has created a reset in the luxury residential market, and sales are better
compared to even pre-covid levels
Bengaluru-based Embassy Group has homes at a wide price range from ₹5.5 crore
to ₹20-25 crore
Luxury home sales are seeing a rebound, after a prolonged dry patch, largely led by ready
inventory, stable prices and festive offers, and stamp duty cut in states like Maharashtra.
The pace of recovery however remains slower than sales of lower priced homes, which saw sharp
uptick in the September quarter and in October.
The covid period has created a reset in the luxury residential market, and sales are better
compared to even pre-covid levels, with buyers looking at bigger and upgraded living spaces,
said Reeza Sebastian, president- residential, Embassy Group.
Bengaluru-based Embassy Group has homes at a wide price range from ₹5.5 crore to ₹20-25
crore.
“Both demand and sales are stronger compared to pre-covid. Ready- to-move in was also a factor
in driving sales. Post covid, homebuyers are also becoming more discerning about which
developer they are buying from and many are also looking at managed residences. At Embassy,
we focused on completing these projects in the last 1.5 years and we are seeing much better
traction now," Sebastian added.
Home sales saw a sharp recovery in the July-September quarter in all top cities compared to the
preceding quarter, with Kolkata and Ahmedabad clocking maximum rise in sales, followed by
Mumbai Metropolitan Region (MMR) and Bengaluru.Mumbai-based Lodha Group said it has clocked ₹1,000 crore of sales in October alone, led by ready homes. Bengaluru developers said 60-65% of customers still prefer homes that are either ready or would be completed in six months, to avoid risks and delays. "We have seen a considerable spike in the luxury and premium segment with over ₹400 crore sales out of its ₹1000 crore sales in October. With the latest stamp duty reduction, lowest interest rates, and an increase in demand for ready homes, we are seeing exceptional demand including NRI audiences," said Prashant Bindal, chief sales officer, Lodha Group. Lodha’s luxury portfolio is priced between ₹5 crore and ₹50 crore, most of which are in south- central Mumbai. Separately, its London-based arm Lodha UK recently sold a penthouse at London’s No. 1 Grosvenor Square for GBP 140 million, in the most expensive real estate sale transaction this year. “On a per sq ft basis, at GBP 9200 per sq ft (almost ₹9 lakh per sq. ft.), it is the most expensive home ever sold in London," Gabriel York, co-CEO of Lodha UK said in a statement. South-central Mumbai locations witnessed luxury home sales worth ₹500 crore in October, according to estimates by Anarock Property Consultants, compared to ₹150 crore of sales in the corresponding period in 2019. Anuj Puri, chairman, Anarock said the limited period stamp duty cut of 3% up to December and 2% between January-March 2021 has had an impact even in Mumbai’s hyper-expensive luxury locales. For Gurugram-based M3M Group, around 40% of luxury inventory is priced at ₹1.2 crore, 40% at ₹2.5 crore and 20% at ₹5 crore and above, and sales have also been in a similar proportion. Pankaj Bansal, director, M3M Group said the customer profile in Gurugram-National Capital Region is changing with price not being the only factor.
“Earlier, it was mainly people who lived in Delhi bought apartments in Gurugram for investment but now we have corporate and startup CXOs buying in our projects," Bansal said. ____________________________________________________________________
Newspaper/Online ET Realty ( online )
Date November 09, 2020
https://realty.economictimes.indiatimes.com/news/industry/realty-
Link developers-urge-govt-to-set-up-regulatory-body-for-cement-
sector/79126659
Realty developers urge govt to set up regulatory body for cement
sector
Builders Association of India (BAI), the apex body of the construction industry with over
20,000 business entities, has stated in its letter that such regulatory authority will prevent
manufactures from indulging in unethical trade practices.
In the backdrop of frequent allegations of cartelisation and undue profiteering in the cement
manufacturing industry, realty developers have urged Prime Minister Narendra Modi to set up a
regulatory authority for the sector.
Builders Association of India (BAI), the apex body of the construction industry with over 20,000
business entities, has stated in its letter that such regulatory authority will prevent manufactures
from indulging in unethical trade practices.
In May, developers had sought government’s intervention alleging cartelization among cement
and steel manufacturers following a sudden increase in prices.
The developers’ body has substantiated its demand with the rulings and observations of various
statutory bodies, committees and submissions in supreme institutions like Parliament and its
statutory committees.
“The Competition Commission of India (CCI) in case No.29/2010 filed by BAI, conclusively
found on June 20,2012 the existence of cartel arrangement amongst the cement manufacturers
resulting in the manipulation of sale price of cement. The CCI imposed a penalty of Rs.6,307.32
crore on 10 cement manufacturers and Cement Manufacturers Association (CMA),” the letter
said.
It further adds that CCI also issued ‘cease and desist order’, against which the manufacturers
moved in appeal before National Company Law Appellate Tribunal (NCLAT). The NCLAT in
its order dated July 25, 2018 upheld the penalty. The cement manufacturers have now filed an
appeal before the Supreme Court on October 5, 2018, where it is pending since then.
“Infrastructure and housing sector being an enabler of economic growth and cement is the basic
input for the construction sector. Cement industry, however, indulges in cartelisation for
profiteering…it is of the utmost importance to safeguard the interest of the sector, the common
man and give push to economic growth of the country by establishing a regulatory authority for
the cement sector,” said Mu Moahan, President, Builders Association of India.
The letter has also cited an observation by Parliamentary Standing Committee of Ministry of
Commerce which in its 95th report on ‘Performance of Cement Industry’ tabled on February 24,2011 in Rajya Sabha, has recommended the need of the constitution of a regulatory authority. Citing the above-mentioned facts, the BAI has urged the Prime Minister to constitute the Cement Regulatory Authority on the lines of the ones constituted for the telecom, real estate, insurance sectors. Cement Industry was de-controlled in 1989 and de-licensed in 1991 under the policy of economic liberalization. Decisions of installation of new plants are taken by the industry based on market demand. ________________________________________________________________
Newspaper/Online The Times of India ( online )
Date November 09, 2020
https://content.magicbricks.com/property-news/bangalore-real-estate-
Link news/karnataka-tech-glitches-in-online-property-registration-hamper-
recovery/117160.html
Karnataka: Tech glitches in online property registration hamper
recovery
The state government's move for a complete shift to online property registration has caused
concern for the state exchequer at a time when the real estate sector is showing signs of recovery.
The department of stamps and registration last month decided to migrate property registration
entirely online and the portal Kaveri Online Services was strengthened. Inaugurated in 2018, the
service is currently limited to sub-registrar offices and its officials across 250 locations for
uploading documents for buyers.
The plan was to extend it to the entire state after implementing the pilot project in areas coming
under three sub-registrar offices of Tumakuru, Jala (Bengaluru Rural) and Chincholi (Belagavi).
The portal developed glitches ever since it went live on November 2 and there have been user
complaints like denial of card payment, session expiry and error messages after completing all
steps.
As Pune-based Centre for Development of Advanced Computing (C-DAC) tried to fix the bugs,
the government was forced to keep the project in abeyance. C-DAC told the government it will
try to sort out the problems over the next 45 days.
Undervaluing of properties was a major concern in the offline process. While a buyer has to pay
5% of stamp charges and registration duty on the selling price, which is mostly above the guidance
value fixed by the government, sellers and buyers connive to show the selling price low and pay
lesser duty.
Festive fervour
Technical glitches haven't deterred buyers during the festive season.
After the slowdown during post-pandemic lockdown, property registration started picking up in
August — during the Ganesha festival — and improved in September-October thanks to Dasara.Stakeholders say it will continue in November due to Deepavali festivities. In these three months, 7.2 lakh documents were registered fetching Rs 2,735 crore compared to 6.5 documents registered and Rs 2,720 crore in the same period last year. MS Shankar, general secretary, Forum for Peoples' Collective Efforts, believes revenue collection is disproportionate to registration and is perhaps linked to quicker economic recovery in rural areas where large-scale property purchases may have happened. "Since guidance value is less compared to urban pockets in Bengaluru, the cumulative revenue is lesser," he said. ________________________________________________________________________
Newspaper/Online ET Realty ( online )
Date November 09, 2020
https://realty.economictimes.indiatimes.com/news/regulatory/hc-
Link directs-mhada-to-disclose-info-on-premises-that-it-receives-as-
surplus/79122430
HC directs MHADA to disclose info on premises that it receives as
surplus
The court referred to a June 29, 2019, order by the MHADA chief officer that said the
petitioner Nenshi A Gala was eligible for allotment of a shop as per rules, but MHADA has
not complied with the order.
In a ruling aimed at bringing transparency into the process, the Bombay High Court has directed
Maharashtra Housing and Area Development Authority (MHADA) to disclose details of surplus
flats and shops that accrue to the authority when MHADA buildings are redeveloped by
developers.
The interim order by Justices SJ Kathawalla and Anuja Prabhudesai asked MHADA file affidavit
within two weeks, disclosing details of all the flats, shops or any other premises that come to the
authority as surplus or under any development conditions, including for Project Affected People.
The court referred to a June 29, 2019, order by the MHADA chief officer that said the petitioner
Nenshi A Gala was eligible for allotment of a shop as per rules, but MHADA has not complied
with the order. The court directed MHADA to disclose details sought by the petitioner in the
prayer clauses before posting the matter for hearing on December 3.
The order came on the petition of Gala, a senior citizen who has been following up with MHADA,
and Mumbai Repairs and Reconstruction Board (MBRRB) for 13 years for permanent alternative
accommodation in lieu of his 600 square foot shop at Colaba Market, which came to MHADA as
surplus when it amalgamated four plots and redeveloped a seven-story building.
Shop No 4, on Rajwadkar Street, had a 300 square foot carpet area on the ground floor, and 300
square foot on the mezzanine level.
While Gala was re-allocated 300 square foot in Colaba Market, the petition pertained to the re-
allotment of mezzanine area, which was never done till June 29, 2019, when MHADA finally
gave the order holding him eligible, but the order was not complied with. When he tried to follow
up with the authorities, they offered to give the mezzanine premises in Kala Chowki, where the
real estate value of the property is much lower than in Colaba.
The petition said the inaction by MHADA, MBRRB and the planning authority the BMC betrays
a lack of transparency and arbitrariness in allotting premises as there is no proper record
maintained by the three agencies regarding the surplus flats and shops.The petition alleged that it is a breach of public duty on part of MHADA and MBRRB, which monitors redevelopment of old and dilapidated buildings, and incumbent on their part to maintain proper indexation and a record identifying all projects by MHADA in Mumbai. The petition said the BMC, as the planning authority, must also maintain a separate record of surplus units and flats. ________________________________________________________________
Newspaper/Online ET Realty ( online )
Date November 09, 2020
Link https://realty.economictimes.indiatimes.com/news/regulatory/hc-
directives-on-crz-violation-not-open-for-review-ngt/79122513
HC directives on CRZ violation not open for review: NGT
The NGT held that GCZMA had passed the order after earlier issuing a show cause notice
on October 20, 2018 and giving an opportunity of being heard to the appellant.
Even if Goa Coastal Zone Management Authority (GCZMA) had ordered demolition of illegal
structures in coastal regulation zone (CRZ) area ‘without application of mind’, high court
directives on such constructions have to be enforced and cannot be considered for review by
the National Green Tribunal (NGT), the tribunal said in an order.
“We are unable to accept the submission. The matter was earlier duly considered and rehearing
cannot be allowed in review. The construction has been found to be in violation of CRZ
notification. Accordingly, the review application is dismissed,” the NGT told Shrem Resorts.
The resort owners had appealed before the NGT seeking review of GCZMA’s demolition order
issued in December 2019.
The NGT held that GCZMA had passed the order after earlier issuing a show cause notice on
October 20, 2018 and giving an opportunity of being heard to the appellant.
The tribunal also referred to the proceedings before the high court in the matter and the
undertaking given by the resort owners in the high court.
“It is argued that the order issued by the respondent no. 1 (GCZMA) is without jurisdiction and
without application of the mind and thus is not to be complied with. It is to be noted that even if
the order as stated by the appellant is without application of the mind, but it was contested for
more than two times before the high court and it was passed by a competent authority having
jurisdiction to decide it, the appellant is bound to follow the orders especially the directions issued
by the high court,” the NGT stated, quoting the high court order.
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