January 27, 2021

CREDAI Bengal Daily News Update | 27.01.21

India considers easing rules to attract FDI in construction sector

A proposal to allow limited liability partnerships to invest in the construction of townships,

roads, hotels and hospitals is under discussion, the people said, asking not to be identified

citing rules.

India is considering easing foreign investment rules for sectors ranging from construction to

animation to lure overseas capital needed to create jobs in an economy cratered by the pandemic,

people with knowledge of the matter said.

A proposal to allow limited liability partnerships to invest in the construction of townships, roads,

hotels and hospitals is under discussion, the people said, asking not to be identified citing rules.

A plan to allow 100% foreign direct investment in animation, visual effects, gaming and comics

sector may also find mention in the government’s budget to be presented Feb. 1, one of the people

said.

Allowing LLPs will open a new investment avenue at a time when the government of Prime

Minister Narendra Modi is struggling to revive the economy from its worst annual contraction on

record and generate employment in a country still shedding jobs months after the pandemic-

induced lockdown. The government estimates India will require investment worth $777 billion

across infrastructure for development by 2022.

A finance ministry spokesman did not answer a call made to his cellphone outside of business

hours Tuesday.

The construction sector received FDI inflows worth $25.7 billion between April 2000 and

September 2020, government data show. The relaxation in rules is also likely to help the Modi

government get closer to its target of creating affordable housing for all in urban areas by 2022

and building 100 smart cities.

Currently, foreign investors have to meet certain conditions for investing in the construction

development sector such as a three year lock-in period before exiting. Allowing LLP firms will

afford the sector ability to receive foreign investments more easily, the people said.

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Newspaper/Online ET Realty ( online )

Date January 26, 2020

Link https://realty.economictimes.indiatimes.com/news/industry/india-considers-easing-rules-to-attract-fdi-in-construction-sector/80467213

https://realty.economictimes.indiatimes.com/tag/foreign+direct+investmenthttps://realty.economictimes.indiatimes.com/tag/construction+sectorhttps://realty.economictimes.indiatimes.com/tag/fdihttps://realty.economictimes.indiatimes.com/news/industry/india-considers-easing-rules-to-attract-fdi-in-construction-sector/80467213https://realty.economictimes.indiatimes.com/news/industry/india-considers-easing-rules-to-attract-fdi-in-construction-sector/80467213

Luxury housing in south India largely resilient to pandemic-

induced downturn

The momentum in luxury real estate in south India in the last few months is expected to

continue in 2021, especially in the IT-ITeS and manufacturing-driven cities of Bangalore,

Hyderabad and Chennai.

The luxury housing market in south India not only remained largely insulated from Covid-

induced disruptions, but the pandemic spurred demand for larger, ready-to-move-in (RTMI)

homes. As governments and businesses recalibrate their moves, the market is witnessing a

growing interest from high net worth individuals (HNIs) and NRIs looking for a stable asset class

and service-rich and managed residences.

The momentum in luxury real estate in south India in the last few months is expected to continue

in 2021, especially in the IT-ITeS and manufacturing-driven cities of Bangalore, Hyderabad and

Chennai. Besides a healthy concentration of HNIs and NRIs, the need for homes with multi-

purpose usable areas within an integrated township offering connectivity, state-of-art amenities,

exclusivity and large open spaces is also sustaining the demand.

Embassy Group’s president (residential business) Reeza Sebastian said south India has always

been an attractive real estate market for NRIs due to the right pricing, higher rental yields, on-

time completion of projects and trusted developers.

Bangalore-based Puravankara’s managing director Ashish Puravankara said, “We have observed

a significant rise in demand for 3 BHK, 4 BHK and villa projects. From our internal anecdotal

data, we understand that buyers are not looking at the size of houses in terms of square feet per

se, but are rather looking forward to having more rooms in order to use them for home office,

workouts or home schooling.”

Newspaper/Online Financial Express ( online )

Date January 27, 2020

Link https://www.financialexpress.com/industry/luxury-housing-in-south-india-largely-resilient-to-pandemic-induced-downturn/2179306/

https://www.financialexpress.com/industry/luxury-housing-in-south-india-largely-resilient-to-pandemic-induced-downturn/2179306/https://www.financialexpress.com/industry/luxury-housing-in-south-india-largely-resilient-to-pandemic-induced-downturn/2179306/

While Brigade Enterprises’ CEO (residential) Rajendra Joshi said the segment improved

significantly in Q4 2020. Top players continued to generate strong sales due to market

consolidation. Bookings by NRIs are expected to increase as demand for large size units and

finished inventory is gaining momentum.

Anarock Property Consultants chairman Anuj Puri said buyers in luxury housing are out in the

market for various reasons. Discounts and multiple offers doled out by developers have made

such properties far more lucrative and attractive for several buyers. It also scores high with NRIs

as a depreciating rupee translates into greater buying power.

“Additionally, real estate has always been an important diversifier in HNI investment portfolios

— now, amid a pandemic that has shaken up the financial and stock markets, it remains a reliably

stable asset,” he said.

Square Yards principal partner & head (India sales) Rahul Purohit emphasised that southern cities

like Hyderabad, Bangalore and Chennai have historically been relatively more resilient to market

dynamics. Southern cities have always been less speculative than their northern counterparts. This

has stood them in good stead at times of unexpected market exigencies, he said.

“Also, the inclination towards larger homes and villa development in the south has only grown

in the post-Covid era, which has in turn resulted in a spike in demand for luxury segment in these

cities. Hyderabad and Bangalore have seen an uptick in sales of properties priced above `1 crore

and also for uber-luxury properties pegged at `5 crore and above,” he said.

Going ahead, luxury residences promise to sustain the current momentum. “We witnessed a

nearly 140% jump in sales and enquiries in Q4 2020 and strongly believe that this trend will

continue in the upcoming quarters where we see increased interest from NRIs and end-users

looking for service rich and managed residences,” said Embassy’s Sebastian.

Brigade’s Joshi agreed. “We do not anticipate much of a change, in fact, we saw sales going back

to pre-Covid levels in the last couple of quarters in the luxury segment and that will remain

consistent going forward,” he said.

Puravankara said, “We are buoyant about the luxury sector, given the traction in last few quarters.

We can expect this momentum to continue over the next quarters in 2021. Our ultra-luxury line

https://www.financialexpress.com/market/stock-market/brigade-enterprises-ltd-stock-price/https://www.financialexpress.com/industry/luxury-housing-in-south-india-largely-resilient-to-pandemic-induced-downturn/2179306/#addng_dialoghttps://www.financialexpress.com/industry/luxury-housing-in-south-india-largely-resilient-to-pandemic-induced-downturn/2179306/#addng_dialog

World Home Collections’ first offering in Bangalore was a runaway success, and this prompts us

to replicate this is Chennai and Mumbai in the next few quarters.”

_____________________________________________________________________

Delhi-NCR has maximum stuck housing units at 1.9 lakh worth

nearly Rs 1.2 lakh cr: Report

The property market of Mumbai Metropolitan Region (MMR) has the second highest

number of stuck housing units at 1,80,250, worth Rs 2,02,145 crore.

Delhi-NCR property market has maximum stuck housing units at 1.9 lakh, worth nearly Rs 1.2

lakh crore, that were delayed by at least seven years, according to property consultant Anarock.

A total of 1,90,120 housing units, worth Rs 1,19,291 crore, were stuck in the Delhi-NCR as of

2020-end. These flats were launched in 2013 and before.

The property market of Mumbai Metropolitan Region (MMR) has the second highest number of

stuck housing units at 1,80,250, worth Rs 2,02,145 crore.

Across seven major cities, as many as 5,02,340 housing units, worth Rs 4,07,005 crore, were

stuck at the end of last year.

As on 2019-end, 1,322 projects comprising 5.76 lakh units were stuck in various stages.

Commenting on the report, Anarock Chairman Anuj Puri said: “Project delays have been the bane

of the Indian real estate sector over the last decade. Even the implementation of RERA had only

a little impact on this”.

Among other factors, the liquidity crunch threw up roadblocks for developers, which is why the

government intervened with the creation of the Alternate Investment Fund (AIF) in late 2019 with

a corpus of Rs 25,000 crore, he said.

“This last-mile capitalization mechanism couched in the Special Window for Affordable & Mid-

Income Housing (SWAMIH) fund has proved to be effective in getting stuck projects going

again,” Puri said.

Newspaper/Online Financial Express ( online )

Date January 27, 2020

Link https://www.financialexpress.com/industry/delhi-ncr-has-maximum-stuck-housing-units-at-1-9-lakh-worth-nearly-rs-1-2-lakh-cr-report/2179207/

https://www.financialexpress.com/industry/delhi-ncr-has-maximum-stuck-housing-units-at-1-9-lakh-worth-nearly-rs-1-2-lakh-cr-report/2179207/https://www.financialexpress.com/industry/delhi-ncr-has-maximum-stuck-housing-units-at-1-9-lakh-worth-nearly-rs-1-2-lakh-cr-report/2179207/https://www.financialexpress.com/industry/delhi-ncr-has-maximum-stuck-housing-units-at-1-9-lakh-worth-nearly-rs-1-2-lakh-cr-report/2179207/

As many as 190 stuck/delayed housing projects accounting for over 73,560 units were completed

in 2020, Anarock said.

As per the data, 29,850 housing units worth Rs 22,276 crore were stuck in Bengaluru.

Pune has 80,480 units worth Rs 49,667 crore that were delayed as of 2020-end.

As many as 9,180 housing units worth Rs 5,436 crore were delayed in Kolkata.

Hyderabad has 6,520 stuck housing units worth Rs 4,305 crore, while Chennai has 5,940 units

worth Rs 3,886 crore.

_____________________________________________________________________

Tamil Nadu government extends regularisation of unapproved

plots till Feb 28

The one-time amnesty scheme, The Tamil Nadu Regularisation of Unapproved Layouts and

Plots Rules, 2017, was launched in May 2017 and closed in November 2018 after three

extensions.

The state government on Monday extended the scheme for regularisation of unapproved layouts

and plots till February 28, more than two years after the scheme ended. The one-time amnesty

scheme, The Tamil Nadu Regularisation of Unapproved Layouts and Plots Rules, 2017, was

launched in May 2017 and closed in November 2018 after three extensions.

The housing and urban development department said the latest extension was to provide an

opportunity to those who missed the chance to apply for regularization.

This followed a letter from the director of town and country planning (DTCP) that representations

had been received from various organizations to extend the scheme.

The DTCP suggested the scheme be extended by another six months as many had missed applying

for regularization as they did not know it had ended and some others because they expected it

would be extended.

Moreover, during the housing and urban development department’s virtual interaction with real

estate associations in June last year, there was a demand for extending the scheme, Monday’s

order said.

Subsequently, the Chennai Metropolitan Development Authority (CMDA) also sought extension

of the scheme.

Accordingly, the housing and urban development department has extended the scheme till

February 28, 2021.

Application for regularization can only be made online, said the order signed by D Karthikeyan,

secretary of housing and urban development department.

Confederation of Real Estate Developers’ Association of India (CREDAI) Tamil Nadu chapter

chairman S Sridharan said, “Extending the scheme will bring more housing plots under the

bracket of regularization.”

________________________________________________________________

Newspaper/Online ET Realty ( online )

Date January 26, 2020

Link https://realty.economictimes.indiatimes.com/news/regulatory/tamil-nadu-government-extends-regularisation-of-unapproved-plots-till-feb-28/80463151

https://realty.economictimes.indiatimes.com/tag/tamil+naduhttps://realty.economictimes.indiatimes.com/tag/chennai+metropolitan+development+authorityhttps://realty.economictimes.indiatimes.com/tag/cmdahttps://realty.economictimes.indiatimes.com/news/regulatory/tamil-nadu-government-extends-regularisation-of-unapproved-plots-till-feb-28/80463151https://realty.economictimes.indiatimes.com/news/regulatory/tamil-nadu-government-extends-regularisation-of-unapproved-plots-till-feb-28/80463151https://realty.economictimes.indiatimes.com/news/regulatory/tamil-nadu-government-extends-regularisation-of-unapproved-plots-till-feb-28/80463151

Visakhapatnam development body to prepare master plan-2041 by

June

The consultant hired by VMRDA for the master plan preparation has recently submitted

the draft plan and zonal development plans. The VMRDA is scrutinising both the plans.

The Visakhapatnam Metropolitan Region Development Authority is fast working on preparing

Master Plan-2041.

The Covid-19 pandemic had affected its progress last year. The existing Master Plan-2006 will

expire in June 2021.

The consultant hired by VMRDA for the master plan preparation has recently submitted the draft

plan and zonal development plans. The VMRDA is scrutinising both the plans.

Preparation of the master plan and zonal development plans will be completed by June, 2021 to

replace the existing master plan.

Speaking to ToI, VMRDA metropolitan commissioner P Koteswara Rao said that the VMRDA

is scrutinising the draft master plan and zonal development plans to check the minutest details

before finalising them.

“The final draft master plan would be placed in the public domain for about a month. All the

inputs received from the public during this one month would be referred to an expert committee

to check their validity and incorporate the worthwhile in the master plan. We will complete all

this process by June,” said Koteswara Rao.

Out of 13 deliverables, the consultant has so far submitted 10 deliverables. These include

inception report, interim report, field survey report, existing situation assessment report, traffic

survey, analysis report, consultation report, base map, vision & strategy formulation report, draft

perspective plan, preliminary draft master plan & draft master plan, and zonal development plans.

The VMRDA is spread over two districts, including Vizianagaram and Visakhapatnam. This

covers 36 mandals and 936 villages. Even though several mandals of Srikakulam were excluded

from the VMRDA in 2019 to float Srikakulam Urban Development Authority, the VMRDA’s

master plan also included these mandals from Srikakulam. VMRDA metropolitan commissioner

P Koteswara Rao said that the master plan prepared for these mandals would be handed over to

Newspaper/Online ET Realty ( online )

Date January 26, 2020

Link https://realty.economictimes.indiatimes.com/news/infrastructure/visakhapatnam-development-body-to-prepare-master-plan-2041-by-june/80463382

https://realty.economictimes.indiatimes.com/tag/vmrdahttps://realty.economictimes.indiatimes.com/tag/vizianagaramhttps://realty.economictimes.indiatimes.com/news/infrastructure/visakhapatnam-development-body-to-prepare-master-plan-2041-by-june/80463382https://realty.economictimes.indiatimes.com/news/infrastructure/visakhapatnam-development-body-to-prepare-master-plan-2041-by-june/80463382https://realty.economictimes.indiatimes.com/news/infrastructure/visakhapatnam-development-body-to-prepare-master-plan-2041-by-june/80463382

the SUDA.

The master plan outlines a development vision of the VMRDA and its planning framework for

the future, including housing strategies, conservation zones, industrial development plans,

transportation plan, environmental sustainable plan, public amenities and service plans,

integration of erstwhile Vuda master plans, business plans, etc.

________________________________________________________________

Uttar Pradesh to levy category-wise development charges

The cabinet modified the development charges clause of the UP urban planning Act of 1973

to decide the developmental charges in the areas coming under the jurisdiction of

development authorities.

The state cabinet on Monday gave its nod to reducing development charges in less developed

areas around the cities in Uttar Pradesh.

The cabinet modified the development charges clause of the UP urban planning Act of 1973 to

decide the developmental charges in the areas coming under the jurisdiction of development

authorities.

The cabinet also authorised CM Yogi Adityanath, who also holds the charge of housing and urban

planning, to take a decision vis-a-vis development charges of different categories of areas coming

under the jurisdiction of development authorities.

Housing officials said that the development authorities were facing problems in recovering

development charges from the projects in the less developed areas having people with low paying

capacity.

This was because the charges were in accordance with the 2014 rules in which the less developed

areas were equated with the main cities which were more developed.

At the same time, development charges have been raised for areas which are more developed than

the cities where development authorities are located. For instance, development charges for Loni,

Modinagar and Moradnagar in Ghaziabad development area would be reduced.

So would be the case with Akbarpur Mati and Bithoor, which come under Kanpur development

area.

The cabinet raised the category of Bareilly, Muzzaffarnagar, Firozabad and Unnao-Shuklaganj

on the basis of population size and assessing the growth potential. Henceforth, the development

charges levied in these regions would be higher than earlier.

________________________________________________________________

Newspaper/Online ET Realty ( online )

Date January 26, 2020

Link https://realty.economictimes.indiatimes.com/news/regulatory/uttar-pradesh-to-levy-category-wise-development-charges/80467338

https://realty.economictimes.indiatimes.com/tag/uttar+pradeshhttps://realty.economictimes.indiatimes.com/tag/yogi+adityanathhttps://realty.economictimes.indiatimes.com/tag/kanpurhttps://realty.economictimes.indiatimes.com/tag/bareillyhttps://realty.economictimes.indiatimes.com/tag/firozabadhttps://realty.economictimes.indiatimes.com/news/regulatory/uttar-pradesh-to-levy-category-wise-development-charges/80467338https://realty.economictimes.indiatimes.com/news/regulatory/uttar-pradesh-to-levy-category-wise-development-charges/80467338

Pune civic body earns double revenue from municipal properties

The civic body has earned Rs42 crore in the first three quarters, compared to the Rs16 crore

of last fiscal’s corresponding period. PMC has around 2,700 properties which have been

given on rent for commercial as well as residential purposes.

The revenue from the municipal properties for Pune Municipal Corporation has increased by over

two times in the ongoing financial year. Efforts for a higher recovery has helped boost the income,

civic officials said.

The civic body has earned Rs42 crore in the first three quarters, compared to the Rs16 crore of

last fiscal’s corresponding period. PMC has around 2,700 properties which have been given on

rent for commercial as well as residential purposes.

The rent from the users and occupiers of these societies is charged based on the ready reckoner

rates. “The civic administration has been keeping a consistent follow up of the dues. Notices were

sent to the defaulters. The recovery drives were conducted frequently,” Rajendra Muthe, the head

of PMC’s estate department, said.

He said emphasis was given on renewing the contracts and also updating the contract terms, which

also helped in quick and proper recovery.

PMC offers houses to citizens, who have lost their properties due to civic projects. The lands or

constructed properties are demolished for road widening, building water tanks, laying pipelines,

construction of flyovers and bridges. Even the dwellers get houses as part of slum rehabilitation

projects, a civic official said.

All these properties are given on 30 years lease. Some old contracts have offered 99 years’

contract. But, many tenants have not adhered to the contract terms and avoided paying rents. Few

tenants have gone to court against the PMC over contractual issues, which has also delayed the

recovery, the civic official said.

________________________________________________________________

Newspaper/Online ET Realty ( online )

Date January 26, 2020

Link https://realty.economictimes.indiatimes.com/news/regulatory/pune-civic-body-earns-double-revenue-from-municipal-properties/80463231

https://realty.economictimes.indiatimes.com/tag/pune+municipal+corporationhttps://realty.economictimes.indiatimes.com/tag/pmchttps://realty.economictimes.indiatimes.com/tag/rajendra+muthehttps://realty.economictimes.indiatimes.com/news/regulatory/pune-civic-body-earns-double-revenue-from-municipal-properties/80463231https://realty.economictimes.indiatimes.com/news/regulatory/pune-civic-body-earns-double-revenue-from-municipal-properties/80463231

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