May 31, 2021 - CREDAI Bengal Homes

May 31, 2021

CREDAI Bengal Daily News Update | 31.05.21

 Newspaper/Online Business Standard ( online )
 Date             May 31, 2021
 Link             https://www.business-standard.com/article/finance/rbi-s-status-quo- policy-
                     may-revolve-around-covid-19-pandemic-measures- 121053000875_1.html

  RBI's status quo policy may revolve around Covid-19 pandemic
                            measures

RBI's forecast for growth is 10.5% for the current fiscal year. Most analysts expect the
RBI to lower it in the June 4 monetary policy announcement

A near certainty that there will be no rate change in the June 4 policy will turn the focus on
other measures to be announced by the Reserve Bank of India (RBI), said 12 economists and
bond experts polled by Business Standard. The RBI has moved out of its time-based guidance
to state-based guidance, and has said it will maintain the accommodative stance till there are
durable signs of growth.

That makes the entire process data-based, which does not suggest tweaking the rates. So, the
repo rate would likely continue to remain at 4 per cent for the entire calendar year.

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Newspaper/Online Live Mint ( online )
 Date             May 31, 2021
 Link             https://www.livemint.com/companies/news/realty-sector-set-to-revive-from-
                      2nd-wave-jolt-11622402110687.html

                Realty sector set to revive from 2nd wave jolt
The housing sector, which underwent a prolonged slowdown and a liquidity crisis, is
slowly seeing renewed investor interest, particularly for projects by developers who are
known for efficient execution and delivery
The second wave of the pandemic may have disrupted a nascent recovery of the real estate
sector but developers and investors expect a strong revival in the second half of this fiscal
despite the latest disruptions from the pandemic.

“There was a major revival in the residential sector in 2020-21 despite the pandemic last year.
Real estate prices are at an all-time low and affordability is at a high. Buyers understood the
importance of a well-designed home. Currently, it’s a huge crisis and at an alarming level.
There will be a disruption in the June quarter, but the long-term outlook is healthy," said Mohit
Malhotra, managing director and CEO, Godrej Properties Ltd.

The first wave of the pandemic last year was harsh, particularly as the national lockdown halted
construction, prompted large scale labour migration and created unprecedented uncertainty.
However, from September-October onwards, the realty sector made a strong recovery especially
in the residential sector until the onset of the second wave this year. Jitu Virwani, chairman and
managing director, Embassy Group said good quality homes, which are ready to deliver, will
continue to see high demand.
“On the commercial office front, we expect the sector to do well in the long-term despite the
work-from-home phenomenon. Occupiers are currently in decision-making mode in terms of
workspaces, where some may give up space, but others may ramp up. Once everyone gets the
second vaccine shot, companies will bring back employees to offices latest by the year-end,"
said Virwani.
The housing sector, which underwent a prolonged slowdown and a liquidity crisis, is slowly
seeing renewed investor interest, particularly for projects by developers who are known for

efficient execution and delivery. “We did 26 transactions in the last 12 months, and it was a
busy year for us with a lot of opportunities. The domestic market is starved of capital with
NBFCs pulling back and banks being wary. Most of the capital coming in is through the
offshore route," said Nipun Sahni, partner-real estate, Apollo Global Management.

Amit Bhagat, managing director and CEO, ASK Property Investment Advisors also said the
firm deployed its maximum capital last year. “The opportunity for investors today is lucrative
and counter-cyclical if one understands the risk metrics. We will continue to look at investment
opportunities and beyond the second wave, we are bullish about the residential space. Until the
second wave, homes across the spectrum including luxury and second homes, plotted sales did
well," Bhagat said.
Kunaal Shah, partner, Trilegal said the company had “the busiest year in terms of foreign
investments and transaction flow last year." “For any investor with deep pockets, it’s a time of
great opportunity and for the end-customer, it’s a good time to buy," Shah said.

Investor faith was demonstrated in the residential sector with the much-awaited public listing of
Macrotech Developers Ltd, which operates under the ‘Lodha’ brand. “Housing demand has
been very strong and that will not change in the long-term. The June quarter could take a hit for
developers but like last year, the recovery in the third and fourth quarters is expected to be
repeated in 2021-22 as well," said M. Murali, chairman and MD, Shriram Properties Pvt. Ltd,
which is also looking at initial public offering.

Shobhit Agarwal, managing director and CEO, Anarock Capital said globally, residential and
logistics are the two sectors that have done extremely well through the pandemic.
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Newspaper/Online ET Realty ( online )
 Date             May 30, 2021
 Link             https://realty.economictimes.indiatimes.com/news/industry/tamil-nadu-
                     housing-sector-hit-hard-by-second-wave/83082652

          Tamil Nadu: Housing sector hit hard by second wave
The Builders Association of India says 3,000 housing projects ranging from 8 to 16
dwelling units were hit in May 2021 against the 5,000 projects affected in May 2020.

The housing sector this year is expected to be more badly hit than in 2020 due to spiralling
prices of construction material, acute labour shortage and issues faced by buyers in availing
themselves                         of                      home                        loans.

Last year, there was a quick recovery by September, but stakeholders say the revival this year
could be delayed. The Confederation of Real Estate Developers' Association of India (Credai),
however, expressed confidence that recovery would begin immediately after the second wave
ends.

The crisis has already played havoc, affecting construction of individual, small and medium
housing projects in the Chennai Metropolitan Area. The Chennai Civil Engineers Association
says that in May 2020, 56% of housing projects including independent houses and apartments
up to 6 units were either non-completed or remained unsold. This May, it was 65%.

The Builders Association of India says 3,000 housing projects ranging from 8 to 16 dwelling
units were hit in May 2021 against the 5,000 projects affected in May 2020.

Builders Association of India state secretary S Ramaprabhu says about 75% of masons, both
from within Tamil Nadu and from outside, had left for home and are expected to return only in
August.

"This year will be worse than 2020 because of escalation of construction material prices,
homebuyers encountering salary cuts and facing difficulties in accessing adequate loan amount
from banks," he said. Unlike last year, quick recovery may not happen this year, though sales
will         start          reviving         from         November,             he       added.
Chennai Civil Engineers Association president S Jagadeesan said construction had come to a
near standstill at several sites. Noting that the number of projects affected during the second
wave had increased, he said residents who left Chennai may take more time to return. "This will
have     a      bearing      on     the     sale    of    dwelling      units,"    he    added.

Credai (Tamil Nadu chapter) president Suresh Krishn, however, remains bullish that the
housing sector will recover immediately after the second wave as work is being executed in-situ
as allowed by the state government. Besides, the movement of construction material has
remained unhindered during the current lockdown period. "We are confident that the housing
sector will recover at the earliest," he added.

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Newspaper/Online ET Realty ( online )
 Date             May 30, 2021
 Link             https://realty.economictimes.indiatimes.com/news/industry/karnataka-second-
                       covid-wave-a-bigger-jolt-to-real-estate-sector/83087911

  Karnataka: Second Covid wave a bigger jolt to real estate sector
Though construction works are under progress, sale of flats/land or independent houses is
not happening. The industry was expecting good business during April-May, which did
not happen due to the lockdown.

Real estate business in coastal Karnataka, which was making a slow recovery early this year, is
hit with another jolt due to the second wave. Industry experts predict a slower recovery when
compared to the first wave. It was only in January that the industry started recovering after last
year’s                                                                                lockdown.

Though construction works are under progress, sale of flats/land or independent houses is not
happening. The industry was expecting good business during April-May, which did not happen
due                        to                         the                         lockdown.

Former president CREDAI Mangaluru chapter and managing director of Marian
Projects Private Limited Naveen Cardoza said that after the first wave, there was renewed hope
and people started investing. However, currently, everyone is worried about the infection. We
are    expecting     the    industry   to    recover     by      the    year-end,    he   said.

Naveen noted that for the time being, investment in new projects may not happen as it would
cost 15% more. Further, the cost of construction materials and GST has increased. In the current
situation, investments in new projects could be risky, he pointed out.

Meanwhile, distress sales are also expected to rise. Real estate consultant Vivek D’Mello said
it’s a good time for buyers as they can negotiate due to distress selling. “However, buyers need
to find the right properties and there is no speculative buying like before,” he warned.

Karthik Salian, a contractor, said that he is finding it difficult to arrange labourers. “Majority of
the migrant labourers who are the backbone of the construction industry, have gone home.
There is a shortage of manpower and we have to invest more to arrange for labourers.”

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Newspaper/Online ET Realty ( online )
 Date             May 30, 2021
 Link             https://realty.economictimes.indiatimes.com/news/industry/andhra-pradeshs-
                      real-estate-sector-in-doldrums-as-sales-plunge/83059868

   Andhra Pradesh's real estate sector in doldrums as sales plunge
There has been a dip in property sales. Builders are not taking up new projects citing
shortage of skilled manpower, restrictions on working hours, curfew and lockdown
atmosphere in the city’s outskirts by administration to contain the virus spread.

With economic activity slowing down across several parts of Andhra Pradesh due to the second
wave of the Covid-19 pandemic, the state’s realty sector seems to be in doldrums. The is seems
to       be       the       mood         especially         in       cities     such        as
Visakhapatnam, Vijayawada and Vizianagaram where the sector has suffered a major blow.

There has been a dip in property sales. Builders are not taking up new projects citing shortage
of skilled manpower, restrictions on working hours, curfew and lockdown atmosphere in the
city’s     outskirts   by      administration      to     contain    the     virus      spread.

Till March-end, homebuyers were visiting projects to choose flats. However, from April
onwards, prospective homebuyers turned cautions and started avoiding property visits even if
they were interested in buying, said B Sunil, a developer in Visakhapatnam.

The second wave of the pandemic has also made people wary of spending money on expenses
such as buying a home. Consumers are taking a wait-and-watch approach and looking to save
money to protect them in the eventuality of an emergency, he added.

B Raja Srinivas, president of Credai, Andhra Pradesh, said that several real estate projects have
got stalled in Visakhapatnam, Vijayawada, Guntur, Vizianagaram and few other cities and
towns as developers are delaying project site visits saying they do not want to get infected.

Secondly, due to curfew from 12 noon to 6 am, working hours have decreased and availability
of labour also has decreased. Nearly over 2,000 projects have been stalled in the state, he added.

“We are expecting that the consumers will prefer ready to occupy projects after the end of the
second wave and the real estate sector may get some boost after a few months. In big cities like
Vizag where a sharp surge in Covid-19 cases has brought economic activity to a standstill, real
estate     developers        are       struggling     as       well,”     said        Srinivas.

The demand for 3BHK units may witness a rise after the second wave in a few cities as the
working from home culture is likely to continue for some more years. Developers are not in a
hurry to finish projects as they say that they can’t risk lives .

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Newspaper/Online ET Realty ( online )
 Date             May 30, 2021
 Link             https://realty.economictimes.indiatimes.com/news/residential/greater-noida-
                      development-body-extends-pmay-application-deadline-to-june-25/83059933

    Greater Noida development body extends PMAY application
                       deadline to June 25
Against 10,000 flats proposed to be built under the scheme, the authority has received only
760 applications. Launched in January this year, the Authority has extended the
application deadline now from April 24 to June 25.

GNIDA has failed to get adequate applications for the Pradhan Mantri Awas Yojana (PMAY)
scheme. Against 10,000 flats proposed to be built under the scheme, the authority has received
only 760 applications. Launched in January this year, the Authority has extended the application
deadline         now         from          April          24         to        June          25.

While Covid lockdown is being seen as the main reason for lack of response, many migrant
labourers working in local factories have left town, leaving few takers for the scheme.

Deep Chandra, ACEO of GNIDA, said, “In view of the pandemic and economic slowdown we
have extended the application deadline of the PMAY scheme by two months. The affordable
housing scheme under PMAY is under two categories – for economically weaker sections of
society (EWS) and low-income groups (LIG). Eligible and qualified beneficiaries may apply on
the prescribed form till 6 pm of June 25 at the special counter set up near gate number 1 of
GNIDA        office     along     with     a     demand       draft     of     Rs    5,000.”

While the state government has given a target of 50,000 such homes to be built by all three
authorities, GNIDA has also made the provision of providing 10% land use for commercial
purposes        to     the        developer       against      the       earlier       1%.

“We have demarcated sectors 1, 2 and 3 for affordable homes to be built with public-private
collaboration under the PMAY scheme. About 10,000 such flats are to be built under the
scheme,”          said        Narendra           Bhooshan          CEO            GNIDA.

Santosh Kumar, OSD (builders) GNIDA, told TOI that overall Covid pandemic has led to a
delay in implanting all the conditions of the scheme. “The lockdown delayed the process while
people facing the Covid pandemic also were caught up in saving lives and livelihood which led
to less responses received so far – about 760 applications till date,” he said.

________________________________________________________________

Newspaper/Online ET Realty ( online )
 Date             May 30, 2021
 Link             https://realty.economictimes.indiatimes.com/news/regulatory/face-fine-for-
                      defunct-rainwater-harvesting-system-at-society-in-gurugram/83059909

    Face fine for defunct rainwater harvesting system at society in
                              Gurugram
The teams of the district administration will conduct checks after June 15 and the
establishments where the rainwater harvesting systems are found non-functional will be
penalised.

The district administration has directed residential societies, institutions, schools and other
establishments to ensure proper functioning of the rainwater harvesting on their premises by
June 15. The directions have been issued so that the system is effectively operational during the
monsoon                                                                                   season.

The teams of the district administration will conduct checks after June 15 and the
establishments where the rainwater harvesting systems are found non-functional will be
penalised.

“As per clause 8.1 (1) of Haryana Building Code, rainwater harvesting is compulsory to be
installed by the owner constructing the building on the plot where the area of the rooftop is 100
square metres or more. As per clause 8.1 (2) of Haryana Building code, recharging of ground
water shall be mandatory not only for residential buildings but for all types of buildings
including group housing societies having a plot area more than 500 square meters and above,”
read the notice issued by the deputy commissioner Dr Yash Garg.

The directions have been issued for all residential buildings, schools, industrial establishments
etc.   that    fall   under     the     district    administration,     MCG, HSVP and DTCP.

It was in March that a meeting of the administration officials and GuruJal society was held to
discuss about the matter. It was decided in the meeting that the GuruJal teams along with the
administration teams will conduct an enforcement drive to check whether the existing rainwater
harvesting         systems         are         working          properly        or        not.

“We have started visiting the government buildings in the districts including the government
buildings located in other blocks of Gurgaon and have checked around 50 buildings.

 If rainwater harvesting systems are not working properly, we are asking the staff to fix it before
June 15. For the residential buildings and other establishments, we will start our enforcement
drive after June 15. Strict action will be taken against defaulters and occupation certificate of

the building will also be cancelled if owners don’t adhere to guidelines,” said a member of the
GuruJal team.

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