16 - 11 - 2020

CREDAI Bengal Daily News Update | 16.11.20

Coronavirus impact: Demand for houses in Tier II

towns accelerates

Analysts point out that the trend to move to Tier II & III towns has been there for the last six-

seven years as economic growth trickled to smaller towns and the digital economy proliferated.

In July this year, Jagdish Sharan (37) moved back to his hometown, Pratapgarh to take care of his

ailing father as Covid made things difficult to manage from Delhi.

“I purchased a 4-BHK flat in a township. All I needed was high speed internet and a study, which

I got, plus services similar to any gated society in NCR,” said the graphic designer, now working

from home (WFH), for a digital marketing firm based in Indore.

Pramod N Patil (40), a content writer on specialty chemicals, too has a similar story. Patil moved

back to Nashik, his hometown, from Vapi (Gujarat) where he is employed in a pharmaceuticals

company.

“I moved into a 3-BHK ground floor apartment with study, in a gated society, with family during

Navratras. It’s better this way as I have to report to work only 3-4 times in a month,” he said.

Both Sharan and Patil are part of a growing list of entrepreneurs and consultants who in the last

six months decided to move back to their families in tier II and III cities without having to

compromise on career.

Analysts point out that the trend was already there for last six-seven years as economic growth

trickled to smaller towns and the digital economy proliferated.

Lockdowns and health concerns due to Covid-19 coupled with company’s opting for WFH is

further fuelling this trend.

Newspaper/Online Financial Express ( Online )

Date November 15, 2020

Link https://www.financialexpress.com/industry/coronavirus-impact-demand-for-houses-in-tier-ii-towns-accelerates/2128695/

“If you analyse residential sales from 2014 to 2019, tier I cities grew at 28%, but tier II grew

faster at 51%.

This is largely as tier II cities got better traction from government schemes like Pradhan Mantri

Awas Yojana (Urban).

Also, affordable housing here is at a convenient distance from the city centre unlike Tier I cities,”

says Pankaj Kapoor, managing director of Liases Foras, a real estate consultancy.

Kapoor said professionals who have spent five-six years in service would be more prone to

moving back to their home towns, if economic condition permits.

“Those having lived 10-15 years in a city would face issues like children’s education, etc. that

could deter them. They are more likely to purchase a bigger house,” he added.

DLF’s senior executive director (sales and marketing), Aakash Ohri agrees.

“Pandemic has accelerated sales in smaller cities because some of these living spaces are available

in developed and habituated townships. Demand for condos and integrated townships in Tier II

cities has also seen a surge, with increased need of safer environment and amenities within gated

communities,” he added.

Ohri said DLF recently launched a limited number of 188 plots for sale (ground and two floors)

in its township, DLF Hyde Park in New Chandigarh, for which it received enquiries from NRIs

in Canada and UK.

Similarly, in June, DLF received an overwhelming response for the launch of its Economically

Weaker Sections (EWS) and Low-Income Group (LIG) units in Garden city, Lucknow with

number of applications almost double the stock.

Anand Singhania, a leading developer from Chhattisgarh said, “People especially in-service

sector are looking at shifting back as they feel they can find work in the city, even though salary

is lesser than big cities. Raipur now has a well-established and growing base for service, education

and small industries. Naya Raipur, smart city, is also here.” Singhania is also the chairman of real

estate association, Credai’s MSME wing.

Going ahead, Emami Realty’s managing director & CEO, Nitesh Kumar said as many

organisations are planning to continue work from home and policies like Atmanirbhar Bharat

and Make in India will create opportunities in tier II & III cities. Reverse migration is also likely

to continue for some time so demand in these cities will increase.

“At Emami Realty, we have several plans for Tier II and III cities. During Covid, we launched

our residential project in Jhansi which received good response. Within 100 days we got 100

bookings, which is fantastic in a city like Jhansi,” he added.

_____________________________________________________________________

Home buyers find order barring them from exiting project

confusing

Those who initiated recovery process against the developer worried that the process will be

impacted if same builder is allowed to continue.

Home buyers find order barring them from exiting project confusing

Home buyers like IT engineer Nikhil Sable, who initiated a recovery process to get their money

when the developer failed to honour MahaRERA’s refund order for three years, are confused after

the regulator allowed the same developer to continue with 51 per cent consent of other home

buyers and asked buyers not to withdraw from the project in the larger interest of completion of

the project.

Sable, 32, and his wife Pradnya had invested in Falco Woodshire project in 2013, but when the

project was not completed by 2017, they approached MahaRERA, and swiftly got an order asking

the developer to refund their money – Rs 36.86 lakh with interest. But their joy was short-lived.

The developer, Kambar Constructions, challenged the order, and the appellate tribunal also

upheld the refund order. When the developer still did not honour the refund order, Sables filed

for non-execution of the order and MahaRERA issued revenue recovery warrants in May 2018,

directing the Collector to recover the money.

The order went to the Kalyan tehsildar who sealed the building and set up an auction. The first

auction was cancelled and a second auction was organised.

“In the second auction, five flats were put up for sale and only one got sold. We received a sum

of Rs 11.11 lakh, which we paid towards the home loan interest. Our total refund amount is nearly

Rs 62 lakh, and Rs 50 lakh of our dues are still pending. But the latest order asking home buyers

not to withdraw from the project has got us confused. What happens to all those of us who got

refund orders, went through a lot of frustration over the last three years to get the warrant recovery

process going?

The process is still on,” said Nikhil Sable speaking to Mirror.

MahaRERA had indicated that the developer could be allowed to continue and complete the

project if majority of the home buyers of the project or 51per cent of them gave their consent.

Falco Buyers Welfare Association, which represents buyers from five buildings including Falco

Woodshire, had prayed that the same developer, Kambar Constructions, be allowed to continue

as the developer with consent from majority of 51per cent buyers of the project.

Newspaper/Online ET Realty ( Online )

Date November 16, 2020

Link https://realty.economictimes.indiatimes.com/news/residential/home-buyers-find-order-barring-them-from-exiting-project-confusing/79241312

“The allottees, who want to withdraw from the project or are seeking interest for delay at this

stage, may consider continuing in the project till the completion of the project and then decide on

their continuation or withdrawal,” said MahaRERA chairperson Gautam Chatterjee in his

November 5 order.

He said in the High Court order upholding the validity of RERA, the court had observed that the

object and purpose of the Real Estate (Regulation and Development) Act, 2016 is to complete the

development work within the stipulated time frame.

“Accordingly, keeping the interest of project completion and the larger interest of the association

of allottees in mind, any withdrawal from the stressed project or claim on interest on delay, at this

stage, will adversely affect the project completion and will not be in the larger interest of the

allottees in the project,” he said.

Developer Rohit Chugani, appearing personally, had submitted that a large number of allottees

in project Woodshire have been approaching him to start the project work and complete it, as has

been done in respect of other towers which have got MahaRERA Order under section 7 read with

section 7(3) of the RERA Act, 2016. He added that they are in discussion with India Infoline

Housing Finance Ltd (IIFL), which had provided construction finance and are hopeful of settling

the outstanding dues of IIFL.

________________________________________________________________

Property registrations up 36% in Maharashtra in September-

November

Maharashtra registration department officials said though the post-pandemic period had

registered a dip in registration, the performance of the real estate sector improved after the

state announced the reduction of stamp duty for a limited period in August.

Property registrations in the state increased by 36% between September and mid-November this

year as against the figures during the corresponding period in 2019.

Maharashtra registration department officials said though the post-pandemic period had

registered a dip in registration, the performance of the real estate sector improved after the state

announced the reduction of stamp duty for a limited period in August.

A registration department official said 1.9 lakh documents were registered in September last year.

The number rose to 2.47 lakh in September 2020.

Similarly, the number of registrations rose to 2.73 lakh this October from 1.93 documents

registered in October last year. The first 13 days of November last year saw 88,000 registrations.

The number was 1.21 lakh during the first 13 days of November 2020.

Newspaper/Online ET Realty ( Online )

Date November 15, 2020

Link https://realty.economictimes.indiatimes.com/news/regulatory/property-registrations-up-36-in-maharashtra-in-september-november/79230218

State Inspector General of Registration and Stamps Omprakash Deshmukh told TOI that the

reduction of stamp duty had helped many citizens to take the plunge and invest in the sector.

“Registrations started slowly picking up from August this year. The initial pandemic period had

seen a dip in registrations, as most of the offices were closed because of the lockdown. But as the

offices reopened, the online registrations picked up.”

Deshmukh said, “During the unlock period from September, the registration has increased. The

state announced the reduction in stamp duty till March 31, 2021. People are availing of the

benefits.”

Confederation of Real Estate Developers' Association of India (Credai)-Maharashtra president

Rajiv Parikh told TOI the stamp duty reduction had encouraged the fence sitters to take the

plunge. “The developers also stepped in and offered different sops to ensure that the citizens

invested during this period, when stamp duty waiver was totally in place. The stamp duty waiver

and GST reduction in residential homes helped many people invest. Nearly 3,000 Credai

members said the stamp duty waiver was beneficial. Another boost was the reduction of home

loan interest rates to around 7%.”

Pune Credai president Suhas Merchant said, “Intelligent buyers will not waste time and will book

projects now. The advantage of the stamp duty waiver will not be in place six months down the

line. The costs are bound to increase after six months, as the material and labour expenses will

increase.”

Managing director of Gera Developments Rohit Gera said the return to normalcy was fuelling the

need for housing being converted to demand. “As companies come to terms with the effects of

the pandemic and the lockdown, the uncertainty around job security is rapidly lifting and this is

leading to people to buy homes this season,” he said.

________________________________________________________________

Delhi government to construct 89,400 flats for EWS, slum dwellers

by 2025

Construction of 89,400 flats will be carried out in three phases. In the first phase, 41,400

will be constructed, followed by 18,000 in the second phase and 30,000 in the third phase,

the statement said.

The Delhi government will undertake construction of 89,400 flats for economically weaker

sections and slum dwellers by 2025, according to a statement. The decision was taken in a meeting

of the Delhi Urban Shelter Improvement Board (DUSIB) on Friday and it was attended by Chief

Minister Arvind Kejriwal.

"We have to provide shelter to every poor in Delhi and the project should be completed within its

due time line," Kejriwal said in the meeting.

Construction of 89,400 flats will be carried out in three phases. In the first phase, 41,400 will be

constructed, followed by 18,000 in the second phase and 30,000 in the third phase, the statement

said.

It said a detailed rehabilitation and construction plan, including appointment of architect

consultants, is being prepared by the government.

The meeting was also attended by Urban Development Minister and DUSIB Vice

Chairperson Satyendar Jain, Principal Secretary (Urban Development) Renu Sharma and other

senior officers.

"The 'Jahan Jhuggi Wahin Makaan' policy is the flagship policy of the Delhi government. We

have to ensure that the construction of the EWS (economically weaker section) flats for in-situ

rehabilitation of people should be completed in its due time line. This has to be ensured so that

we can provide shelter to every poor in Delhi," the chief minister said.

Out of the 221 acres of land available with the DUSIB, at present 115 acres of land is being

considered for construction of EWS houses. The construction project will also be carried out on

the vacant land from where people have been shifted from, said DUSIB Member Bipin Rai.

The architect consultants for the project will be appointed in the next two months, he said.

Rai said that the 89,400 houses will be constructed in three phases.

In the first phase, 41,400 houses will be constructed by 2022. In the second phase, 18,000 houses

will be constructed and in the third phase, 30,000 EWS houses will be constructed across Delhi,

Newspaper/Online ET Realty ( Online )

Date November 15, 2020

Link https://realty.economictimes.indiatimes.com/news/residential/delhi-government-to-construct-89400-flats-for-ews-slum-dwellers-by-2025/79220094

he said.

The houses will be multi-storeyed, and five separate tenders will be floated for each of 8,000

houses, Rai said.

The time frame for the construction of houses in the first phase is 24 months, with a construction

cost of Rs 3,312 crores for 41,400 flats, Rs eight lakh per flat, he said.

________________________________________________________________

Telangana government offers 50% rebate in property tax for FY21

Municipal administration minister KT Rama Rao announced the tax relief as a Diwali gift

on Saturday. While announcing the decision, the minister said the tax rebate would be

applicable for the financial year 2020-2021.

The Telangana government has announced 50% rebate in property tax for property owners in

the state. The rebate will be applicable to those, who pay tax up to Rs 15,000 a year in Greater

Hyderabad Municipal Corporation (GHMC) and up to Rs 10,000 in other municipalities. The

decision will benefit nearly 13 lakh papers in the Greater Hyderabad limits.

Municipal administration minister KT Rama Rao announced the tax relief as a Diwali gift on

Saturday. While announcing the decision, the minister said the tax rebate would be applicable

for the financial year 2020-2021.

“If property tax owners have already paid the tax this year, the amount (50% balance) will be

adjusted in the next financial year,” KT Rama Rao said

The tax rebate was given reportedly in view of ensuing elections to the Greater Hyderabad

Municipal Corporation. The State Election Commission (SEC) has already initiated election

arrangements and the notification is expected soon.

During the last elections in 2016 also the Telangana government announced property tax relief.

For those who had been paying up to Rs 1,000 tax a year, was asked to pay just nominal tax Rs

101.

Apart from this, the state government also enhanced salaries to the sanitation workers from Rs

14,500 to Rs 17,500. The government said the salaries were increased recognising their services

during Covid 19 pandemic.

The minister said the state government will continue to disburse Rs 10,000 instant relief to the

recent flood victims in Greater Hyderabad. He appealed the people to register their names in

Mee Seva centres and provide bank details to avail the benefit.

________________________________________________________________

Newspaper/Online ET Realty ( Online )

Date November 14, 2020

Link https://realty.economictimes.indiatimes.com/news/industry/telangana-government-offers-50-rebate-in-property-tax-for-fy21/79224280

Pune civic body to sell 1,200 civic flats to tenants

According to PMC officials, these flats have been allotted to the citizens who lost their

properties in projects like road expansions and construction of civic amenities.

Tenants of around 1,200 municipal flats will soon get their ownership, with the Pune Municipal

Corporation (PMC) deciding to sell these houses to their present occupiers. The civic body is

expected to generate Rs200 crore in revenue from the move.

According to PMC officials, these flats have been allotted to the citizens who lost their properties

in projects like road expansions and construction of civic amenities.

“An option is being explored to give the flats to these tenants. Most of the properties are small

flats like 1RK or 1 BHK. Cost of flats will be decided based on the location and size of the units.

Price may be charged as per ready reckoner rates,” Hemant Rasane, chairman of PMC’s standing

committee, said.

“Many tenants have not paid their rents for years altogether. But PMC is left with no option but

to provide them services,” a senior PMC official said.

The PMC gets flats in housing complexes of over 1,000sqm as a part of the reservation policy.

Mostly, these flats are given to urban poor and project-affected people. They are offered on 30

years’ rent. PMC data shows around 4,200 flats are available with PMC via this policy, of which

1200 are occupied right now.

________________________________________________________________

Newspaper/Online ET Realty ( Online )

Date November 14, 2020

Link https://realty.economictimes.indiatimes.com/news/residential/pune-civic-body-to-sell-1200-civic-flats-to-tenants/79230281

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