June 08, 2021 - CREDAI Bengal Homes
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June 08, 2021
CREDAI Bengal Daily News Update | 08.06.21
Newspaper/Online Money Control ( online )
Date June 07, 2021
https://www.moneycontrol.com/news/business/real-estate/residential-realty-
Link sales-across-top-eight-cities-touch-85-million-sq-ft-in-q4fy2021-despite-covid-
19-listed-players-perform-well-icra-6998131.html
Residential realty sales across top eight cities touch 85 million sq ft
in Q4FY2021 despite COVID-19: ICRA
However, in the absence of additional measures, the recovery period post the second wave may
get elongated, thereby placing higher stress on developer cash flows, especially for the smaller
ones.
The residential realty sector has recorded one of its best quarters in Q4 FY2021, with sales
across the top eight cities nearing 85 million square feet (msf), reflecting amongst the highest
level of sales over the last 20 quarters. This comes after the sector witnessed one of the worst
demand crashes in recorded history during Q1 FY2021, triggered by COVID-19, an analysis by
ICRA said.
Growth was driven by an increased focus on homeownership and betterment, given the
elongation in work-from-home requirements. Improved affordability has acted as an enabler
and is expected to sustain post the second wave, it said.
Many listed players also recorded high performance levels, with key players such as Brigade
Enterprises and Godrej Properties declaring all-time high residential sales and collections
during the quarter.
As against the Q4 FY2021 record, the pan-India quarterly average sale in FY2019 and FY2020
stood at 84 msf and 81.5 msf, respectively, it said.
In terms of demand, as per market reports, housing sales have declined by around 40-50 percent
in April 2021, relative to pre-COVID monthly averages, thereby de-railing the strong demand
recovery witnessed post the first wave.
Some of the key demand drivers that supported the recovery in H2 FY2021 remain in place,
including low home loan rates and income tax sops, particularly for affordable housing, and
these are expected to support recovery going forward. However, the stamp duty reduction
effected in the state of Maharashtra has now expired. This reduction had bumped up sales in key
cities like Mumbai and Pune from August 2020 to March 2021.
Other cities, such as Hyderabad and Chennai also recorded a fast pace of recovery, on the back
of continued commercial real estate activity, which, in turn, supported residential demand, and a
high proportion of lower-ticket-size housing.Reinstatement of stamp duty measures in Maharashtra, extension of the same by other states, and developer focus on right-pricing and inventory liquidation would support a quicker recovery in sales once the initial impact of the second wave recedes, given that the fundamental demand driver relating to the importance of owned housing has been further strengthened now. While policy roll-outs in the form of RERA and GST, together with developer focus on deliveries, had started supporting demand from FY2019 onwards, the onset of the liquidity crisis impacted sales in FY2020, and COVID-19 served as a double whammy thereafter. However, recovery post the first wave was quick, with the increased importance of home- ownership after the start of the pandemic serving as a fundamental growth driver, given the extended period of work-from-home and consequent requirement for bigger/better housing, it said. “Potential home-buyers, fence-sitters and home-renters increasingly took the plunge towards home-ownership, with the improvement in affordability over the past year further supporting their decision. The low home-loan rates, together with attractive discounts/payment schemes, resulted in improved affordability. Stamp duty reductions in Maharashtra and Karnataka (for units priced up to Rs 35 lakh) also stimulated house purchases,” said Mahi Agarwal, sector head and assistant vice president at ICRA. Now, however, the second wave of the pandemic is impacting housing sales levels once again. While the essential underlying growth drivers have been reinforced by this wave, thereby supporting the likelihood of a quick recovery once the initial impact tapers off, continuation/extension of support measures such as interest rate and stamp duty reductions would remain key to reinstating the high recovery momentum in a timely manner, he said. Supply side impacted; Smaller real estate developers may need support The supply-side will also need more support, especially for the smaller developers, who make up around 80 percent of the market. Developers will need adequate liquidity and/or refinancing flexibility to tide over the disruption in cash flows and meet debt obligations, at least till demand recovers, the analysis said. During the first wave, the moratorium on debt servicing had aided in conservation of liquidity, particularly for those developers with maturing debt obligations. Extension on RERA timelines by six-nine months provided additional flexibility to defer outflows in case of weakness in collections. Certain states also reduced approval costs/construction premiums for developers for a limited period. However, no such measures have been extended post the onset of the second wave, thereby creating an increasingly challenging operating and financing environment for developers. While the larger, organised players have maintained considerable liquidity buffers, and have low levels of leverage, together with high financial flexibility, smaller players would find it difficult to cope with the prevailing market conditions. Moreover, the larger developers also were better equipped to manage issues relating to labour availability through the provision of onsite labour camps, organisation of vaccination drives for the workers, etc., whereas smaller developers faced issued pertaining to reverse migration and overall labour availability, it said.
K-shaped recovery expected going forward While fundamental demand drivers have strengthened, continued/further support measures, both on the demand and the supply side, would serve as key enablers towards a timely recovery in the residential realty industry. However, in line with ICRA’s earlier expectations, the recovery would not be uniform, and would instead take the form of a K-shaped recovery, with large listed players recovering at a much better pace than smaller, unorganised players, the analysis said. In the absence of additional measures though, the recovery period may get elongated, thereby placing higher stress on developer cash flows, especially for the smaller ones who have built up unsustainable debt levels on account of slow-moving inventory or high investment in land assets, said Agarwal. _____________________________________________________________________________
Newspaper/Online Live Mint ( online )
Date June 07, 2021
Link https://www.livemint.com/industry/infrastructure/recovery-of-residential-
sector-may-take-longer-icra-11623061337371.html
Recovery of residential sector may take longer: Icra
Post a sharp demand crash in the January-March period in 2020, Brigade Enterprises
Ltd and Godrej Properties Ltd declared all-time high residential sales and collections
during the March quarter
Residential sales across the top eight cities neared 85 million sq ft in the March quarter, and
many listed developers recording high performance, rating agency Icra said on Monday.
Brigade Enterprises Ltd and Godrej Properties Ltd declared all-time high residential sales and
collections during the quarter. This came after the sector witnessed a sharp demand crash in the
January-March period in 2020, triggered by covid-19. Pan-India quarterly average home sales
in 2018-19 and 2019-20 stood at 84 million sq ft and 81.5 million sq ft respectively.
While policy rollouts in the form of RERA and GST along with developer focus on deliveries
were a positive, the onset of the liquidity crisis impacted sales in 2019-2020 and covid-19
served as a double whammy thereafter.
However, recovery post the first wave was quick, with the increased importance of home-
ownership after the start of the pandemic serving as a fundamental growth driver, given the
extended period of work-from-home and the consequent requirement for bigger homes, Icra
said.
Mahi Agarwal, sector head and assistant vice-president, ICRA, said, “Potential home-buyers,
fence-sitters and home-renters increasingly took the plunge towards home-ownership, with the
improvement in affordability over the past year further supporting their decision. The low
home-loan rates, together with attractive discounts/payment schemes, resulted in improved
affordability. Stamp duty reductions in Maharashtra and Karnataka (for units priced up to ₹35
lakh) also stimulated house purchases."
However, the second wave of the pandemic is impacting housing sales again.As per market reports, housing sales declined by 40-50% in April 2021, thereby de-railing the strong demand recovery witnessed post the first wave. Some of the key demand drivers that supported the recovery in the second half of 2020-21 remain in place, including low home loan rates and income tax sops, particularly for affordable housing, and these are expected to support recovery going forward. However, the stamp duty reduction effected in Maharashtra has expired. Other cities such as Hyderabad and Chennai also recorded a fast pace of recovery, on the back of continued commercial real estate activity, which in turn, supported residential demand, and a high proportion of lower-ticket-size housing. Reinstatement of stamp duty measures in Maharashtra, extension of the same by other states, and developer focus on right-pricing and inventory liquidation would support a quicker recovery in sales once the initial impact of the second wave recedes, the report said. The supply-side will also need more support, especially for the smaller developers, who make up around 80% of the market. Developers will need adequate liquidity and refinancing flexibility to tide over the disruption in cash flows and meet debt obligations, at least till demand recovers. During the first wave, the moratorium on debt servicing had aided in the conservation of liquidity, particularly for those developers with maturing debt obligations. Extension on RERA timelines by six to nine months provided additional flexibility to defer outflows in case of weakness in collections. Certain states also reduced approval costs or construction premiums etc. for developers for a limited period. However, no such measures have been extended post the onset of the second wave, thereby creating an increasingly challenging operating and financing environment for developers. While the larger, organized players have maintained considerable liquidity buffers, and have low levels of leverage, together with high financial flexibility, smaller players would find it difficult to cope with the prevailing market conditions. “While fundamental demand drivers have strengthened, continued support measures, both on the demand and the supply side, would serve as key enablers towards a timely recovery in the residential realty industry. In the absence of additional measures, the recovery period may get elongated, thereby placing higher stress on developer cash flows, especially for the smaller ones
who have built-up unsustainable debt levels on account of slow-moving inventory or high investment in land assets," Agarwal added. ____________________________________________________________________
Newspaper/Online ET Realty ( online )
Date June 08, 2021
https://realty.economictimes.indiatimes.com/news/infrastructure/andhra-
Link pradesh-cm-writes-to-pm-seeks-infrastructure-development-in-pmay-
colonies/83329732
Andhra Pradesh CM writes to PM, seeks infrastructure
development in PMAY colonies
Jagan, in his letter to the Prime Minister, mentioned that the Central government in past
7 years has sanctioned more than 3 crore houses to Andhra Pradesh with the release of
Central assistance of almost Rs 3 lakh crores.
Andhra Pradesh Chief Minister Jagan Mohan Reddy wrote a letter to Prime Minister Narendra
Modi seeking intervention to incorporate the creation of basic infrastructure in greenfield
colonies as part of assistance given to state governments under Pradhan Mantri Awas
Yojana (PMAY).
Jagan, in his letter to the Prime Minister, mentioned that the Central government in past 7 years
has sanctioned more than 3 crore houses to Andhra Pradesh with the release of Central
assistance of almost Rs 3 lakh crores.
"The government of Andhra Pradesh has acquired 68,381 acres of land and allotted house sites
to almost 31 lakh beneficiaries spread across 17,005 greenfield colonies," the letter reads.
Andhra CM said that the state government is assisting the beneficiaries to construct 28.30 lakh
pucca houses with an estimated cost of Rs 50,944 crores under PMAY rural and urban schemes.
The state government has created a post of 'Joint Collector Housing' for the development of
these greenfield colonies.
Jagan further said that the state government cannot bear the huge cost of developing basic
infrastructure in such colonies.
He also requested PM Modi to direct ministries of Housing and Urban Affairs and the Ministry
of Rural Development to incorporate the creation of basic infrastructure in greenfield colonies.
________________________________________________________________Newspaper/Online ET Realty ( online )
Date June 08, 2021
Link https://realty.economictimes.indiatimes.com/news/regulatory/panel-to-verify-
green-nod-for-parking-area-of-sra-project-ngt/83329932
Panel to verify green nod for parking area of SRA project: NGT
The interim order was passed by the NGT principal bench at Delhi in an application that
sought “compliance of EC conditions in providing parking by Skylark Buildcom Pvt Ltd
and Oberoi Realty Ltd, Mumbai”.
The National Green Tribunal (NGT) constituted a joint committee to inspect if there is any
alleged violation of Environmental Clearance (EC) conditions in the parking requirements at a
major Slum Rehabilitation Authority (SRA) project coming up in Worli.
The interim order was passed by the NGT principal bench at Delhi in an application that sought
“compliance of EC conditions in providing parking by Skylark Buildcom Pvt Ltd and Oberoi
Realty Ltd, Mumbai”.
The panel will comprise representatives of the Central Pollution Control Board (CPCB),
Maharashtra Pollution Control Board (MPCB) and State Environment Impact Assessment
Authority (SEIAA), said the June 4 order uploaded on Monday.
No lawyers appeared for the builders, noted the NGT, but the order by a five-member bench
headed by chairperson Justice Adarsh Kumar Goel stated, “We have considered the application
and find that the grievance needs to be gone into by a joint committee of CPCB, MPCB and
SEIAA, Maharashtra.”
A spokesperson for Oberoi Realty declined to comment on Monday.
The application claimed the SRA project for Sai Sundar Nagar CHS and other amalgamated
societies is coming up on a 21-acre plot in Worli with “260 super luxury flats”.
Mumbai residents Santosh Patil and Manoj Salvi, through their advocate Aditya Pratap, had
filed the application before the NGT for directions to provide 500 parking slots as set out in the
January 28, 2016, EC issued by the SEIAA. The EC condition stated, “Traffic congestion near
the entry and exit points from the roads adjoining the proposed project site must be avoided.
Parking be fully internalised and no public spaces should be utilised. Parking for existing and
proposed development (1,726 for sale building and 500 for rehab building).”
The MPCB shall be the “nodal agency for coordination and compliance” said the NGT. “The
joint committee may look into the grievance and if there is violation of EC conditions, take
suitable measures as per law, including assessment and recovery of compensation, followingdue process. The joint committee may visit the site and is also free to conduct proceedings online,” the order added. The committee may interact with the stakeholders and consult any other expert and submit any ‘action-taken report’ within two months, said the NGT and posted the next hearing on September 7. ________________________________________________________________
Newspaper/Online ET Realty ( online )
Date June 08, 2021
Link https://realty.economictimes.indiatimes.com/news/residential/delhi-
development-body-to-conduct-mini-draw-for-surrendered-flats/83329597
Delhi development body to conduct mini-draw for surrendered
flats
According to sources, out of the 1,354 flats offered in the scheme, nearly 300 flats have
been surrendered by the original allottees, which would now be allotted to those in the
wait list.
Delhi Development Authority (DDA) is planning to conduct a ‘mini-draw’ in July for those
who had applied for a flat under the Housing Scheme 2021, but were kept in the wait list.
According to sources, out of the 1,354 flats offered in the scheme, nearly 300 flats have been
surrendered by the original allottees, which would now be allotted to those in the wait list.
The DDA Housing Scheme 2021 was launched from January 2, to February 16, 2021, which
saw 22,752 applications for the 1,354 flats on offer.
The draw of lots for the scheme was held on March 10 and the details of waitlisted applicants
were uploaded on the DDA website.
The authority has now requested all the wait-listed applicants to deposit a registration amount as
per their preferences in the application form of DDA Housing Scheme 2021 by June 30 through
the DDA website.
________________________________________________________________Newspaper/Online ET Realty ( online )
Date June 08, 2021
Link https://realty.economictimes.indiatimes.com/news/residential/now-apply-
online-for-affordable-homes-in-gurugram/83329642
Now, apply online for affordable homes in Gurugram
Forms for an affordable housing scheme will have to be filled on the DTCP portal and the
draw of lots will take place online as well. The beneficiaries will get confirmation through
SMSes.
To streamline the allotment of flats under the affordable housing scheme of Haryana and
eliminate the chances of any manipulation, the department of town and country planning
(DTCP) has introduced a digital draw system.
Now, forms for an affordable housing scheme will have to be filled on the DTCP portal and the
draw of lots will take place online as well. The beneficiaries will get confirmation through
SMSes.
Till now, developers advertised about their affordable housing projects and distributed forms
directly or through agents, following which the draw for allotment of flats was conducted in the
presence of the senior town planner. “But the department has been receiving complaints about
irregularities in allotment and unavailability of the application forms. To fix this, we have
introduced an online system of filling forms and allotment,” said STP Sanjeev Mann.
The department issued a notification in this regard on April 7 and on Monday, senior DTCP
officials held a virtual meeting with developers from across Haryana.
According to new norms, a developer will have to submit an online application with details of
the projects and tentative date of draw. After scrutiny, the STP will provide the approval and it
will go live, which will be visible to the general public. Potential buyers will have to create a
login id on the website with their mobile number. All the forms filled by the individual buyers
will be scrutinised by the developer.
________________________________________________________________Newspaper/Online ET Realty ( online )
Date June 07, 2021
Link https://realty.economictimes.indiatimes.com/news/infrastructure/pandemic-
draw-groundwater-table-hits-new-lows-in-hyderabad/83301468
Pandemic draw: Groundwater table hits new lows in Hyderabad
GWD observed that in May 2020 and May 2021—considered as ‘peak’ months in the
summer season—the ground water depleted between 0.34 meters and 5.27 meters depth
below to the ground level.
During the two waves of the Covid pandemic, Hyderabadis have extracted a lot of
groundwater.
The reason being: Telangana government imposed lockdown in phases based on the spike in the
cases and it was observed that Hyderabad district witnessed a huge depletion in the groundwater
table.
The depletion was noticed when the Hyderabad Ground Water Department (GWD) measured
the ground water table through piezometers installed in Asifnagar, Bandlaguda,Bahadurpura,
Charminar, Himayat nagar, Saidabad, Musheerabad, Secunderabad, Marredpally, Ameerpet, S
R Nagar, Khairatabad, Nampally, Shaikpet and Tirumalagiri areas.
GWD observed that in May 2020 and May 2021—considered as ‘peak’ months in the summer
season—the ground water depleted between 0.34 meters and 5.27 meters depth below to the
ground level. “Usually, the consumption during summer is high, but with the pandemic
situation, residents couldn’t leave the city due to lockdown. As a result, they extracted more
water,” a GWD official said.
For instance, in Khairatabad, the recorded ground table in May 2020 was 15.97 meters. In May
2021, a depletion of 10.70 meters was noticed. Not only is Khairatabad a residential area, but
also a highly commercial area, which could be the reason for the highest depletion in ground
water consumption, the official opined.
Surprisingly, in Marredpally—which used to have very high ground water depletion levels in
the city—GWD records revealed that there was a depletion of only two meters.
According to the GWD report, in May 2020, the recorded ground water table was 20.90 meters,
but in May 2021, the table fell to 18.35 meters.
“Groundwater percolated due to copious rainfall. Additionally, the October floods could have
also added to the water table,” the ground water department’s analyst said.The GWD predicts that the city may witness a rise in the ground water table this rainy season, based on the IMD’s forecast. ________________________________________________________________
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