20-june-2019 - credai...availability of credit, major listed realty players have reported robust...

20-June-2019

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CREDAI Bengal Daily News Update | 20.06.19

PUBLIC BODY THAT SELLS LAND TO BUILDER

CAN'T BE MADE PROMOTER: MAHARERA

Navi Mumbai builders who are members of CREDAI-MCHI (Raigad) had filed a complaint

with MahaRera, seeking that the City and Industrial Development Corporation (Cidco) be

made a co-promoter of their projects.

MUMBAI: In a landmark decision, state housing regulatory authority MahaRera has ruled that a

public authority which sells land to developers cannot be made a promoter along with the builder in

the housing project. Navi Mumbai builders who are members of CREDAI-MCHI (Raigad) had filed

a complaint with MahaRera, seeking that the City and Industrial Development Corporation (Cidco)

be made a co-promoter of their projects.

They contended that Cidco delays its obligations after selling the plots and, as a result, their projects

get held up and they are held liable for the delay. They said Cidco must be made a promoter under

Rera because it is a public authority and MCHI members are allottees of plots owned by Cidco.

MahaRera chairperson Gautam Chatterjee ruled that the sale transactions effected by Cidco are sale

of immovable property where permissions for development is yet to be given by the competent

authority. "Such transaction does not fall under the definition of a real estate project," he said.

The order said Cidco can be made a promoter along with the builder in cases where Cidco is

mandated to develop "off-site infrastructure" around the plot.

In its complaint, MCHI said that Cidco does not register tenders inviting bids with Rera even though

it was mandated to do so. "Cidco has not followed the provisions of Rera in its agreements and

dealings with the highest bidder and is contravening the provisions of Rera," it said.

The complainant said that Cidco is required to register the scheme as a project with Rera prior to

advertising, marketing and inviting bids for the plots. Besides, Cidco is liable for various obligations

to be performed pre- and post-tender like removal of encroachments and encumbrances, final

demarcation of plot, providing water and drainage connections.

The builders, who plan to file an appeal against Chatterjee's order, said Cidco frequently delays

carrying out these tasks. As a result, they face flak from flat buyers, who drag them before the

housing authority for project delays. "Cidco falls under the ambit of 'promoter' under Rera and its

activities of inviting bids for plots and allotment of the same for lease of 60 years fall under the

provisions of Rera," said the builders.

Newspaper/Online ET Realty (online)

Date June 19, 2019

Link https://realty.economictimes.indiatimes.com/news/regulatory/public-body-that-sells-land-to-builder-cant-be-made-promoter-maharera/69854020

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Counsel for Cidco said the corporation sold plots after a public tender to prospective developers to

develop and construct flats to be sold to third parties. "There we are not liable to register the sale of

such plots with MahaRera," he said.

In his order, Chatterjee said if the developer's plot acquired from Cidco is dependent on certain off-

site infrastructure that has to be provided by Cidco, then "while registering their projects with

MahaRera, the builders can include Cidco as a promoter (land-owner)".

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UNITECH GETS GURUGRAM DEVELOPMENT BODY'S

NOTICE FOR MISUSING GROUNDWATER

According to GMDA officials, they had received a complaint from a Nirvana resident stating

that groundwater is being used for construction activities in the township.

GURGAON: GMDA issued a notice to developer Unitech Group on Tuesday for allegedly allowing

the use of groundwater for construction activities in Nirvana Country. As per the notice, the

developer has given groundwater connections to buildings that are currently under construction or

without an occupation certificate, which is not permissible under the norms.

According to GMDA officials, they had received a complaint from a Nirvana resident stating that

groundwater is being used for construction activities in the township. “We have asked the developer

to cut all such connections and submit a report within seven days from the date of the notice,” a

senior GMDA official said.

A copy of the notice, accessed by TOI, stated that in the wake of water shortage faced by the

residents of Gurgaon, the developer is directed to disconnect all such connections in conformation

with the National Building Code, 2016 and MCG Act, 1994. “We’ve also directed the developer to

ensure that all such under-construction buildings under the purview of the Nirvana RWA use water

from sewage treatment plants for construction purposes,” the official added. There are around 50

under-construction houses in Nirvana Country.

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Date June 19, 2019

Link https://realty.economictimes.indiatimes.com/news/regulatory/unitech-gets-

gurugram-development-bodys-notice-for-misusing-groundwater/69867271

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CANARA BANK REVIVES PLAN TO SELL STAKE IN CAN FIN HOMES

Can Fin Homes have a pan India network of 132 branches, 20 Affordable Housing Loan

Centres (AHLCs) and 20 satellite offices with customer base of over 1.2 lakh.

NEW DELHI: State-owned Canara Bank Tuesday said its board has approved plan to sell part or

full stake in housing finance subsidiary Can Fin Homes Ltd (CFHL). Last year, Canara Bank had

called off move to divest its entire shareholding in housing finance subsidiary Canfin Homes after

receiving lower than expected price quotation.

Can Fin Homes has a pan India network of 132 branches, 20 Affordable Housing Loan Centres

(AHLCs) and 20 satellite offices with customer base of over 1.2 lakh.

The said permission is subject to disinvest at appropriate time depending on the market conditions

and available options, Canara Bank said in a regulatory filing.

___________________________________________________________________________


Date June 19, 2019

Link https://realty.economictimes.indiatimes.com/news/allied-industries/canara-

bank-revives-plan-to-sell-stake-in-can-fin-homes/69860839

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REALTY COMPANIES POST ROBUST SALES

DESPITE SECTORAL SLOWDOWN IN FY19

Collections also remained high, standing at Rs 16,814 crore during FY19, recording a growth

of 13 per cent over FY18, it said.

The real estate sector grappling with liquidity crisis on the back of slow sales and reduced

availability of credit, major listed realty players have reported robust sales and increased project

launches in FY19, the report said.

Top 10 listed entities, including Ashiana Housing, Brigade Enterprises, DLF, Godrej Properties,

Mahindra Lifespace Developers, Oberoi Realty, Prestige Estates Projects, Puravankara, Peninsula

Land and Sobha sold nearly 32.19 million sqft, registering a robust 44 per cent growth over the

previous year, rating agency Icra said.

Icra's Shubham Jain noted that despite GST related disruptions and the NBFC financing slowdown,

these companies have reported healthy sales during last fiscal.

"Home-buyers are increasingly leaning towards developers with an established track record of on-

time and quality project completion. Pricing also remains a key driver of purchase decisions. Thus,

focused execution, resulting in timely deliveries, and developer emphasis on increasing affordability

of residential projects, has supported sales levels for the larger listed players," Jain added.

He further said that due to liquidity crunch the sector has been going through a phase of

consolidation, with smaller players, who have been finding it difficult to cope with the prevailing

market conditions, losing ground to larger, more established players.

According to Icra, sales velocity in FY19 reflects the highest level achieved over the past five years,

with strong sales of 10.99 million sqft having been registered in Q4FY19 alone.

Collections also remained high, standing at Rs 16,814 crore during FY19, recording a growth of 13

per cent over FY18, it said.

"In order to capitalise on healthy sales momentum, large listed players have increased the pace of

project launches as well, with the same standing at a high 34.32 million sqft during FY19, depicting a

robust 62 per cent growth as compared to the previous year," Jain said.

In addition to the ramp-up in deliveries, sales momentum for the major listed developers has also

been supported by a downtrend in average sales price, driven by increasing developer focus on

affordability, the agency said.


Date June 19, 2019

Link https://realty.economictimes.indiatimes.com/news/industry/realty-companies-

post-robust-sales-despite-sectoral-slowdown-in-fy19/69860793

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The average sales price for the sample set stood at Rs 6,633 per sqft in FY19 as compared to Rs

7,158 per sqft in the previous year, registering a decline of 7.3 per cent. Consequently, the quarter-to-

sell (QTS), which reflects the number of quarters required to sell the available inventory, has seen a

declining trend over the past three years.

Icra notes that QTS, has declined to eight quarters in FY19 compared to 10 quarters in FY18 and 14

quarters in FY17.

Jain said that going forward, large organised players with established brands and proven execution

ability are expected to continue to benefit from the ongoing consolidation in the residential real estate

segment.

"However, headwinds remain in the form of transition to the revised GST structure without

availability of input tax credit and overall weakness in demand. Proposals undertaken during the

upcoming union budget would remain a key look-out area," Jain added.

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MUMBAI: COLLECTOR ORDERS FIR AGAINST CORDCONE

BUILDERS WHO DUG UP GILBERT HILL

Revenue department report confirms builder overstepped permissions of soil digging;

suburban collector says offence should be registered for causing damage to a heritage

structure.

Suburban collector Sachin Kurve has ordered registering an FIR against a private developer who was

found excavating the foot of Gilbert Hill in Andheri last month. Granted permission only for soil

digging, Cordcone Builders Pvt Ltd has allegedly damaged several parts of the Grade II heritage

structure to make space for a building. Kurve had issued stop work notice to the builder until a

detailed enquiry was conducted. He had also asked the revenue department for a detailed report after

conducting a site inspection.

A 61-mt monolith column, Gilbert Hill is said to be nearly 65 million years old. Made of black basalt

rock that has attracted geologists from across the world, the structure is said to be created out of

molten lava in the Mesozoic era. Almost 250 steps up the hill is the famous Gaondevi Temple.

The Public Works Department recently cleared the proposal to beautify the spot and install a capsule

lift to give visitors a panoramic view of the city from the hill.

“Our inspection report has found that the developer had been carrying out excavation activity beyond

the stipulated permission. I have asked that an offence be registered against the developer for hiding

the facts and causing damage to the heritage structure,” Kurve told Mirror. He said that his office

will be writing to Municipal Commissioner Praveen Pardeshi, asking the BMC to also take action

against Cordcone. Last month, Mayor Vishwanath Mahadeshwar had also written to the Municipal

Commissioner seeking stern action against the developer. Cordcone Builders, however, didn’t

respond to an email from Mirror.

Local BJP legislator Ameet Satam has also demanded that the revenue department must recover the

cost of the damage from the developer.

“After we received complaints last month, we saw for ourselves that the entire hill was being dug.

Now the revenue department report has confirmed that it was being excavated beyond the permitted

area and the activity has damaged the hill,” said Satam, demanding that the Suburban Collector must

book the builder under the Ancient Monuments and Archaeological Sites and Remains Act for

damaging an internationally renowned natural monument.

Vishwas Teli of the Gaondevi Durga Devasthan Trust was the first to complain about illegal stone

quarrying at the site and said that stern action must be taken against the culprits. “It’s a crime and we

have demanded action against anyone digging the hill,” Teli said, adding that local residents fear for


Date June 20, 2019

Link https://realty.economictimes.indiatimes.com/news/regulatory/mumbai-

collector-orders-fir-against-cordcone-builders-who-dug-up-gilbert-

hill/69867326

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life and property with big stones frequently popping out of the hill and falling in their building

premises.

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FOREIGN PE FUNDS PUMP IN $200 MILLION INTO

LOGISTICS IN BENGALURU, CHENNAI, PUNE

The logistics sector had a massive jump-start in the first quarter of 2019 when private equity

players like Morgan Stanley, Warburg Pincus and LOGOS India pumped in nearly $200

million into cities like Bengaluru, Chennai and Pune.

BENGALURU: Logistics and warehousing is a bright new spot on the Indian real estate heatmap,

with private equity funds investing nearly $1.1billion in logistics and warehousing sectors between

Q1 2017 and Q1 2019 as against zero investments during 2015 and 2016 combined,” said Anarock

Research.

The logistics sector had a massive jump-start in the first quarter of 2019 when private equity players

like Morgan Stanley, Warburg Pincus and LOGOS India pumped in nearly $200 million into cities

like Bengaluru, Chennai and Pune.

“Infrastructure status, the multi-modal logistics park policy and implementation of GST has caused

private equity firms to take greater interest in logistics and warehousing sector,” said Shobhit

Agarwal, MD & CEO, ANAROCK Capital.

The southern cities of Bengaluru, Chennai and Hyderabad saw maximum interest by investors,

followed by Mumbai and Pune, driven by favourable government policies, strong economic

fundamentals and growth in organised retail and e-commerce.

Large institutional and logistics developers are betting big on the growing demand for warehousing

in India either by forming joint ventures with local partners or by investing in the sector. “The Indian

logistics and warehousing space is seen as a promising high-growth real estate sector. Given the

strong interest and growth in this market, there is a risk that inexperienced investors and developers

will focus on non-strategic locations with low demand,” said Mehul Shah, CEO of LOGOS India.

LOGOS is seeing strong institutional interest in this sector, and in 2017 it launched the first venture

in India, the LOGOS India Logistics Venture with Assetz Property, which has up to $800 million in

investment capacity to develop and own high-quality modern logistics facilities in targeted cities

across India.

Some of the top deals in 2019 include LOGOS India’s investment of nearly $100 million into

Casagrand Distripark in Chennai, Morgan Stanley Real Estate’s investment of about $50 million in

KSH Infra Ltd in Pune and Embassy Industrial Parks’s investment of $50 million in DRA Projects in

Bengaluru.

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Date June 20, 2019

Link https://realty.economictimes.indiatimes.com/news/allied-industries/foreign-

pe-funds-pump-in-200-million-into-logistics-in-bengaluru-chennai-

pune/69867348

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GET 90% WAIVER ON STAMP DUTY PENALTIES IN

MAHARASHTRA TILL AUGUST

It may be recalled that several flat owners in housing societies who have bought or sold their

apartments must pay penalties for a delay in stamp duty payment.

MUMBAI: State finance minister Sudhir Mungantiwar announced 90% waiver on stamp duty

penalties till August on Tuesday to encourage defaulter housing societies and flat owners to pay up

their dues. He said a sizeable number of people had responded positively to such an amnesty scheme

last year.

It may be recalled that several flat owners in housing societies who have bought or sold their

apartments must pay penalties for a delay in stamp duty payment. In Mumbai alone, 7,000 property

owners have aired their desire to pay penalty under this amnesty scheme. Also, lakhs of housing

societies are to get ownership of land under the conveyance deed scheme.

Stamp duty is charged at a standard 5% across Maharashtra and an additional 1% as surcharge for

Mumbai property buyers. While the stamp duty is payable as per that year’s rate, the mounting

penalty over it will get largely waived. Around Rs 5,000 crore duty and fees are reportedly pending

across the state with Rs 500 crore in Mumbai city alone. “Even if we get 10% of it, it will be a big

addition,” said an senior official at the office of stamp duty and registration.

Cooperatives expert Ramesh Prabhu welcomed the move and appealed to members to benefit from

the scheme by producing original documents and proof of making payment. He said this time,

perhaps due to poor publicity, the response to the scheme is not very enthusiastic.

In 2018, the assembly had approved an increase of 1% to the stamp duty on conveyance deeds in

rural and peri-urban areas. Moreover, the stamp duty on conveyance deeds in gram panchayat areas

is now set at four per cent of the land value in the amendment, up from the three per cent. The stamp

duty in peri-urban areas governed by municipal councils was also increased to 5% from 4%.

Similarly, dealers whose tax liability does not exceed Rs 25,000 though turnover exceeds Rs 1 crore

need not get their accounts audited.

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Date June 19, 2019

Link https://realty.economictimes.indiatimes.com/news/residential/get-90-waiver-

on-stamp-duty-penalties-in-maharashtra-till-august/69850658

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THANE CIVIC BODY ISSUES NOTICE TO SAMRIN

INFRASTRUCTURE FOR CUTTING 15 TREES

The notice issued under provisions of the Maharashtra (Urban Areas) Preservation of Trees

Act, 1975 on June 12 has sought a written explanation from the developer Mushtaq Shaikh of

Samrin Infrastructure within two days.

THANE: The Thane Municipal Corporation has sent a show cause notice to private

developer Samrin Infrastructure and demanded an explanation for allegedly causing the death of 15

trees replanted near Jagannath Society Pokhran Road No. 1 in Thane West.

The notice issued under provisions of the Maharashtra (Urban Areas) Preservation of Trees Act,

1975 on June 12 has sought a written explanation from the developer Mushtaq Shaikh of Samrin

Infrastructure within two days.

The notice was issued following a complaint by Thane citizens under the aegis of Maharashtra Go

Green Foundation, which demanded strict action against the builder for negligence in nurturing the

replanted trees.

The complaint said that on February 15 and April 16, the TMC’s Tree department had granted

Samrin Infrastructure permission to replant 15 trees, and cut one tree after an affidavit that the trees

would be nurtured. Following the complaint, a tree department official inspected the spot, and on

finding some substance in the complaint issued the notice.

Deputy Municipal Commissioner, Gardens, Om Prakash Divate said, “We have sought an

explanation from the developer. If any negligence is found on his part, we will take stringent action

which includes forfeiting the security deposit paid, and lodging an FIR.” The Act provides for

imposing cash fines, imprisonment up to three months if the trees are in public premises.

___________________________________________________________________________


Date June 19, 2019

Link https://realty.economictimes.indiatimes.com/news/regulatory/thane-civic-

body-issues-notice-to-samrin-infrastructure-for-cutting-15-trees/69855301

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INDORE: STAMP & REGISTRAR DEPARTMENT

RECEIVE 35 OBJECTIONS AGAINST PROPERTY GUIDELINES

In the process to finalize collector’s guideline of property rates for 2019-20, stamp and

registrar department has received around 35 objections against its proposal of increasing 5 to

40 per cent of rate in around 400 localities of the district.

INDORE: In the process to finalize collector’s guideline of property rates for 2019-20, stamp and

registrar department has received around 35 objections against its proposal of increasing 5 to 40 per

cent of rate in around 400 localities of the district.

“The office, which had invited claims and objections against proposed guidelines of the property

rates from June 12 to June 18, has received around 35 objections till Tuesday evening. The same will

be put up in district-level evaluation committee, which will be held next week, for disposal before

sending it to central evaluation committee in Bhopal for consent,” senior district registrar BK More

told TOI.

He added that during week-long process, local office has not forwarded any proposal/report to

Bhopal for consideration.

In a meeting of district-level evaluation committee headed by collector Lokesh Kumar Jatav, an

increase of 5 to 40 per cent in 396 out of total 4280 localities was proposed while for remaining

around 91 per cent of areas (3884 localities), guidelines for property rates remained unchanged.

It was learnt, stamp and registrar department had found in its survey that around 800 areas had

witnessed property registration in last financial year at above current guidelines. These areas

witnessed a surge in property rates, on which registries were documented, between 5 and 65 per cent

and therefore, they had proposed a hike in the guideline for 2019-20 in the similar ratio.

On facing objections by district-level evaluation committee, office then agreed for maximum rise of

40 per cent in property-rate in total around 9 per cent localities. Only four localities were then

proposed about 40 per cent hike in the guideline for the next financial year.

After getting consent from central evaluation committee, proposed collector’s guideline of property

rate for current financial year is likely to be implemented from July 1.

___________________________________________________________________________


Date June 19, 2019

Link https://realty.economictimes.indiatimes.com/news/regulatory/indore-stamp-

registrar-department-receive-35-objections-against-property-

guidelines/69853844

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CHENNAI WATER CRISIS HITS CONSTRUCTION SECTOR

"We are not able to get good water fulfilling quality parameters from the ground hence we are

forced to buy tanker water which is very costly and increases the cost of construction," Varun

Manian, Managing Director, Radiance Realty Developers India Ltd, told IANS.

CHENNAI: The water crisis in Chennai and in several other places in Tamil Nadu has affected the

construction sector severely, said realty players.

"We are not able to get good water fulfilling quality parameters from the ground hence we are forced

to buy tanker water which is very costly and increases the cost of construction," Varun Manian,

Managing Director, Radiance Realty Developers India Ltd, told IANS.

The shortfall in supply delays construction timelines and the handing over of the properties, he said.

Queried about how Radiance Realty is managing, Manian said: "We started using self-curing

concrete and plaster to reduce the consumption of water. We started constructing storm water

collection system and rain water harvesting wells during the course of construction and this will

increase the quality and yield of the ground water within two seasons."

He does not see any fall in property sales due to the water crisis.

"The water crisis has affected the construction sector. The normal pace of activity during this period

is not happening in Tamil Nadu," R.Thayumanavan, former state head of the Federation of All Civil

Engineers Association of Tamil Nadu and Puduchery, told IANS over phone from Cuddalore.

Queried about retaining the workers from outside Tamil Nadu, Thayumanavan, also a Managing

Partner of Alfa Building Construction, said: "We have not sent them back till now. We are adopting a

wait and watch policy." The realty players said they were adopting a wait and watch policy to decide

whether to send back the construction workers to their native states like Bihar and West Bengal.

The reservoirs -- Cholavaram (full capacity 1,081 mcft) and Redhills (3,300 mcft) -- which cater to

Chennai's water needs are dry while the storage at Poondi reservoir is 24 mcft as against the full

capacity of 3,231 mcft, according to the Chennai Metropolitan Water Supply and Sewerage Board

(Chennai Metro).

The Chembarambakkam lake (full capacity 3,645 mcft) has a water level of a mere 1 mcft.

___________________________________________________________________________


Date June 19, 2019

Link https://realty.economictimes.indiatimes.com/news/industry/chennai-water-

crisis-hits-construction-sector/69858230

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DEMAND FOR HOMES AND RENTS GO UP IN

CHENNAI WHERE THERE'S WATER

Realtors say rentals are rising in apartment complexes that are able to ensure water supply to

residents.

CHENNAI: The quest is no longer for potable water. With even borewells that used to yield highly

saline water going dry in most places, people are looking to move to apartment complexes in the city

that have supply of any kind of water at least for a few hours a day.

Realtors say rentals are rising in apartment complexes that are able to ensure water supply to

residents. “There is demand for apartments where the residents’ welfare associations are able to

ensure water supply. Customers are asking us to identify only such apartments. But cost of

maintenance is going up in such apartments on account of increasing water charges. All these have

resulted in indirect increase in rentals,” said Jayant Hemdev, business director, Hemdev’s Real

Estate.

Residents in some of the swanky suburbs are eyeing the core areas of the city, where the borewells

still yield some water or the tanker service is better. “What can one do when there is no water for

your ablutions and daily chores?

You end up shifting to better places,” says K Hari, whose search for a rental apartment in the city

started two weeks ago. He is desperate to move out of OMR. A resident of an apartment complex

in Vepery says he moved into it only a month ago. His search for another apartment complex has

already started as there is no water in the present one.

Scarcity is not caused merely by reduction in water supply by Metrowater. Drying up of borewells

across the city and its suburbs has compounded the problem. When Metrowater used to supply 830

MLD of water in the past, Chennai residents used to also tap groundwater from borewells at will. But

the borewells are drying up and, municipal administration minister S P Velumani admits, Metrowater

supply has fallen to 525 MLD (million litres a day).

The secretary of a residential complex near Anna Nagar says, “Of late, we have been noticing that

there is an influx of people into our building. On inquiry, we came to know that most of them are

relatives of our members.

They have moved into our building from different parts of the city in search of water. It is a strain on

our pocket because cost of maintenance is shooting up. We never used to buy water from tankers.

But last month, we spent Rs2.5 lakh on tankers and this month it is expected to touch Rs6 lakh. Our

corpus reserves are fast depleting. The only way out is to reduce water supply. If there is water

scarcity, outsiders will naturally leave.”


Date June 19, 2019

Link https://realty.economictimes.indiatimes.com/news/residential/demand-for-

homes-and-rents-go-up-in-chennai-where-theres-water/69850735

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Meanwhile, all major hyper-malls and departmental stores have been reporting huge sales of buckets,

pots and other containers used to store water.

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APARTMENT OWNERS IN KOCHI ALLEGE 1996 CRZ MAP WAS ERRONEOUS

Addressing a news meet here, Alfa Serene Apartment Owners’ Association said the 1996 map

was so crude that it was difficult to identify a place.

KOCHI: Residents of Alfa Serene apartment, facing the threat of demolition, have said that the 1996

Coastal Zone Mapping (CZMP), on the basis of which the property in which they reside has been

deemed illegal, was crude, inaccurate and full of errors.

The Supreme Court had on May 8 ordered the demolition of the four high rises at Maradu, including

Alfa Serene, citing the violation of coastal regulation zone (CRZ) norms.

Addressing a news meet here, Alfa Serene Apartment Owners’ Association said the 1996 map was so

crude that it was difficult to identify a place. “It is unlike the map prepared in 2012 by Maradu

municipality, in which the building and CR zones can be clearly identified by the survey numbers,”

said association president Rasheed Usman. The press conference was also attended by association

secretary Sen Eapen and Sooraj Krishna, a resident.

“It mentioned that the area comes under CRZ-3, which is defined as relatively undisturbed rural area.

But the area in which the apartment is located is more developed than some of the Cochin

corporation areas,” said Krishna.

“In 2003 itself the Kerala high court had said that the 1996 map is basic and so illegible that no

definite conclusions can be made with such mapping,” he said.

“What is the minimum guarantee for people like us? We relied on the approval documents given to

us by the builder and the due diligence done by the banks who have given loans. The sub-registrar

office collected the stamp duty paid by us, the municipality collected building tax from us, the village

office collected land tax from us, KSEB is collecting charges for electricity, oil companies are

collecting LPG charges, Kerala Water Authority is collecting water charges from us. So, we have

been living in this community as legitimate owners,” said Krishna.

___________________________________________________________________________


Date June 19, 2019

Link https://realty.economictimes.indiatimes.com/news/residential/apartment-

owners-in-kochi-allege-1996-crz-map-was-erroneous/69855133

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LUCKNOW DEVELOPMENT BODY OFFER FOR DEFAULTING FLAT BUYERS

According to LDA officials, there are more than 26,000 defaulters on the list. These defaulters

have not paid their EMI for months.

LUCKNOW: Lucknow Development Authority (LDA) has decided to introduce a one-time

settlement (OTS) scheme for defaulters to pay the remaining amount for apartmentsthey have bought

from the authority.

The scheme will give the defaulters a discount of 10% and all the fine on the pending amount will be

waived. According to LDA officials, there are more than 26,000 defaulters on the list. These

defaulters have not paid their EMI for months.

LDA finance controller Rajeev Kumar Singh said, “The OTS will be implemented after the

government’s approval. The authority could gain around Rs 75 crore pending for long.”

Defaulters can pay online or at LDA office.

___________________________________________________________________________


Date June 19, 2019

Link https://realty.economictimes.indiatimes.com/news/residential/lucknow-

development-body-offer-for-defaulting-flat-buyers/69854982

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CHANDIGARH HOUSING BOARD HOLDS DRAW OF LOTS

FOR ALLOTMENT OF 52 SMALL FLATS AT MALOYA

To maintain transparency and fairness, both computerized draws were held in presence of

applicants and under the supervision of senior officers of UT administration as independent

judges.

CHANDIGARH: The Chandigarh Housing Board (CHB) on Tuesday held computerized draw of

lots for allotment of 52 small flats under Slum Rehabilitation Programme at Maloya Housing

complex.

The eligibility of the applicant was recommended by the UT estate office. Besides, another

computerized draw was conducted for the two applicants of the Oustees Scheme. Both the applicants

got dwelling units in Sector 63.

To maintain transparency and fairness, both computerized draws were held in presence of applicants

and under the supervision of senior officers of UT administration as independent judges.

Yashpal Garg, chief executive officer (CEO), CHB, said draw of the result has been uploaded on the

website of CHB (www.chbonline.in). A copy of the result has also been provided on the notice board

of the CHB, he added.

The administration rehabilitates slum-dwellers after conducting a biometric survey. The colonies

resettled in the last ten years include Colony No 5, Nehru Colony, Kuldeep Colony and Mazdoor

Colony. The allottees will have to pay Rs 1,000 as licence fee every month for 20 years after which

they will pay the balance to get the ownership of the flat. The construction of the flats in Maloya had

begun in June 2014 at a cost of Rs 250 crore under the Jawaharlal Nehru Urban Renewal Mission

(JNNURM). Prime Minister Narendra Modi was to hand over the flat keys to the allottees in May

last year, but couldn’t do so as the project was incomplete.

The project, construction which began in 2014, was originally meant to be completed by 2016, but it

got delayed by more than two years.

Chandigarh Housing Board is the nodal body for the construction of rehabilitation colonies. So far, it

has built 12,736 of the total 25,728 flats proposed for slum-dwellers. Of these, around 12,000 were

built in sectors 38(W), 49, Dhanas, Mauli Jagran–II and Ram Darbar.

___________________________________________________________________________


Date June 19, 2019

Link https://realty.economictimes.indiatimes.com/news/residential/chandigarh-

housing-board-holds-draw-of-lots-for-allotment-of-52-small-flats-at-

maloya/69856608

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CO-WORKING SPACES SAVE UP TO 15% PER SEAT

According to Knight Frank, a property consultant, opting for a co-working space can save 5-

15% per seat compared to a standard lease for corporate.

NEW DELHI: Over the years, rising rentals in office spaces have brought in new trends in the

Indian commercial real estate market. Companies have been pushed to use space optimally in order

to reduce their overall capital expenditure. They are also on a constant lookout for more cost-

effective spaces.

For such companies, the co-working concept has emerged as a breather. Such shared spaces provide

flexible work styles and affordable rentals which the conventional office setup lacks.

The concept, which initially offered shelter to only start-ups and freelancers, is now a favourite

among well-established companies. Currently around 200 co-working operators are running

approximately 400 shared workspaces across the country. Mostly corporate houses are taking-up

such co-working spaces followed by SMEs and startups.

For instance, Puneet Chandra, founder & joint managing director of Skootr, a co-working firm says

that they have 70% space allocated to corporate, 20% to SMEs and 10% for startups. His example is

not alone.

One of the major reasons why corporate have warmed up to co-working spaces is their lower rental

values. In general, real estate expenses make up approximately 9% -12% of the overall operating

costs (differs from market to market).

According to Knight Frank, a property consultant, opting for a co-working space can save 5-15% per

seat compared to a standard lease for corporate.

Harsh Lambah, country manager (India), IWG, says, “Co-working is proving to be 15-25% cost-

efficient by cutting down rental costs, fixed-capital investments and property maintenance.”

Along with being cost-friendly such spaces are also available in central business districts of cities. In

the top six cities, the cost per desk is Rs 4,000 to 30,000 in the business districts, according to the

Knight Frank data.

While for co-working spaces, a central location ensures continued tenants’ base for corporate it gives

a unique opportunity of being able to lease a space in places like BKC or Connaught Place while

paying a low rent.


Date June 19, 2019

Link https://realty.economictimes.indiatimes.com/news/commercial/co-working-

spaces-save-up-to-15-per-seat/69860408

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The co-working concept also helps companies to focus on their core business rather than on non-core

operational areas and also become asset light eventually reducing their operational cost.

“For more than 90 per cent of the businesses, finding, building and operating an office space is not a

core function,” concludes Chandra.

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of 27

BENGALURU AMONG TOP TEN DESTINATIONS FOR

CROSS-BORDER INVESTMENT ACROSS ASIA PACIFIC

As per CBRE, stronger interest in India is attributed to the launch of first Indian REITs and

the resulting enhanced market transparency.

BENGALURU: The tech capital of India, Bengaluru is the first Indian city to feature in top-ten

destinations for cross-border investors across Asia Pacific in 2019, as per a recent study.

As per CBRE, stronger interest in India is attributed to the launch of first Indian REITs and the

resulting enhanced market transparency.

“Bengaluru featured as the first Indian city in the list of preferred investment destination on the basis

of its growing reputation across the globe as the home base to several international corporates. The

city with a significant talent base and world-class infrastructure is also popular for offering several

investment grade options in office, retail as well as residential segments,” Anshuman Magazine,

chairman and CEO, India, South East Asia, Middle East and Africa, CBRE said.

The first REIT by Embassy Group and Blackstone Group LP was launched in India in March this

year and it is expected to catalyse investments in the country. “Improved investor sentiment in office

assets is likely to expose potential quality buildings as a fundraising avenue for developers and also

propel major corporations to lease / purchase space in these developments,” mentioned the report.

Bengaluru is considered as one of the fastest growing cities in India. In 2017-18, the total real estate

investment in the city was almost $800 million, this investment more than doubled annually in 2018-

19, said CBRE.

___________________________________________________________________________


Date June 19, 2019

Link https://realty.economictimes.indiatimes.com/news/commercial/bengaluru-

among-top-ten-destinations-for-cross-border-investment-across-asia-

pacific/69860710

of 27

CEMENT PRICE HIKES FAIL TO SUSTAIN, ANALYSTS STAY CAUTIOUS

Cement prices in June 2019 have corrected by 2 per cent or Rs 7 per kg.

Brokerages remain cautious on the cement sector as price increases that began in April have failed to

sustain.

Sluggish demand and the onset of monsoons suggest price moderation should continue and margins

could peak near term in the June quarter.

Cement prices in June 2019 have corrected by 2 per cent or Rs 7 per kg, reversing the increase in

May.

While Ambuja Cement and ACC declined 5 per cent each in the past month, UltraTechgained just a

percent. The other two cement majors such as Shree Cement and Grasim gained 5 per cent and 6 per

cent, respectively.

“We see June quarter cement prices and margins at near-term peak and expect price moderation to

continue,” said Sumangal Nevatia, analyst, Kotak Securities. “We believe large capacity addition

will keep industry utilisations low over the next two years and will restrict sustainable improvement

in margins.”

Companies such as ACC,

Ambuja Cement and Grasim are

currently trading 12 times their

FY20 estimated EV/EBITDA.

Shree Cement and UltraTech

Cement are trading at 16 times.

“We maintain a cautious stance

on the cement sector on

expensive valuations of large-

cap cement names at 12-16

times FY21 estimated

EV/EBITDA,” said Nevatia.

Analysts believe that steep increases in cement prices are not sustainable and there could be a decline

once the demand from non-trade segment improves.

“Although cement prices have not seen much of a correction in North, demand has taken a knock and

this remains a cause for concern,” said Sanjeev Kumar Singh, analyst, Emkay. “Most (dealers)

expect some decline in cement prices going forward and some of them believe average price increase

in FY20 should be limited to 3-4 per cent year-on-year”.

Sales volumes for the industry has seen a steep decline after March 2019.


Date June 19, 2019

Link https://realty.economictimes.indiatimes.com/news/allied-industries/cement-

price-hikes-fail-to-sustain-analysts-stay-cautious/69854557

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In April the decline was 3.2 per cent year-on-year and 14.9 in May. Volumes for June are expected to

fall by14-17 per cent year-on-year. This seems to be driven by higher spending during the pre-

election period, unavailability of labour and surging temperatures. Industry experts, however, believe

that the liquidity crunch has had a greater impact in causing demand to soften.

___________________________________________________________________________

of 27

DEMAND FOR LOGISTICS AND WAREHOUSING SPACE

OUTSTRIPS SUPPLY: REPORT

The JLL report said that annual demand of around 32 million sq ft has outstripped the supply

of 31 million sq ft witnessed for the first time in last four years.

BENGALURU: Demand for grade-A logistic and warehouse spaces in the country has outstripped

the supply in the first quarter of 2019, said JLL India.

Structural reforms including the awarding of infrastructure status and the implementation of Goods

and Services Act, have bolstered the demand for logistics and warehousing space in the country.

The JLL report said that annual demand of around 32 million sq ft has outstripped the supply of 31

million sq ft witnessed for the first time in last four years. With January-March period of 2019

already witnessing 8.4 million sq ft of absorption, it is expected to clock approx. 38 million sq ft by

end of 2019.

The report mentioned, with high demand, lease transactions have remained high so far, it added.

Alongside the rise in transactions, the share of Grade A spaces leases have also gone up in the past

four years, it said. Of the total 32 million sq ft of industrial and logistics leases in 2018, 56% were

concluded in Grade A spaces.

Ramesh Nair, CEO & country head, JLL India said, “Favourable investment regulations have made

the deployment of development funds a lot easier than it used to be in the past. Moreover, the

infrastructure status as expected has added strength to the development pace. GST implementation

has brought in a uniform tax regime and has removed the challenges relating to logistics supply

chain, making it easier for operators in the space to expand across geographies.”

Sectors such as 3PL/logistics, engineering, auto & ancillary, e-commerce, FMCG, retail and telecom

& white goods have remained the biggest demand drivers. As a result of the high demand, logistics

sector is expected to grow to $215 billion by 2020, said JLL.

The liquidity infused by global investors is prompting the market to move towards organized and

globally accepted warehousing space, which has more than 50% savings on rent per pallet position

over Grade B spaces.

___________________________________________________________________________


Date June 19, 2019

Link https://realty.economictimes.indiatimes.com/news/allied-industries/demand-

for-logistics-and-warehousing-space-outstrips-supply-report/69860620

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CRISIS IN NBFC SECTOR PUSHES UP YIELDS ON NCDS TO 10-15%

Newspaper/Online The Economic Times

Date June 20, 2019

Link https://economictimes.indiatimes.com/markets/stocks/news/crisis-in-nbfc-

sector-pushes-up-yields-on-ncds-to-10-15/articleshow/69867431.cms

of 27

CITY NO. 1 IN WAREHOUSING SPACE GROWTH IN INDIA

___________________________________________________________________________

Newspaper/Online The Times of India

Date June 20, 2019

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REAL ESTATE COS POST ROBUST SALES DESPITE

SECTORAL SLOWDOWN IN FY19

___________________________________________________________________________

Newspaper/Online Millennium Post

Date June 20, 2019

Link http://www.millenniumpost.in/world/real-estate-cos-post-robust-sales-despite-

sectoral-slowdown-in-fy19-358892

20-june-2019 - credai...availability of credit, major listed realty players have reported robust...

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