29 - 10 - 2020

CREDAI Bengal Daily News Update | 29.10.20

WEST BENGAL NEWS

Kolkata beats Hyderabad to become most affordable market for

home purchase Affordability has improved in 2020 across all seven major cities despite a fall in average

household income

olkata has emerged as the most affordable market this year for home purchase among India's seven major cities, according to property consultant JLL India.

As per JLL's annual Home Purchase Affordability Index (HPAI), the affordability has improved in 2020 across all seven major cities despite a fall in average household income. The consultant

attributed this to decline in both housing prices as well as interest rates on home loans.

HPAI -- the ratio of the average household income to the eligible household income -- of Kolkata is highest at 203, followed by Hyderabad at 195, Pune 188, Chennai 178, Bengaluru 175, Delhi-NCR 136 and Mumbai 95 during this calendar year.

"HPAI until 2019 indicates that Hyderabad had been the most affordable residential market. In

2020, Kolkata has overtaken Hyderabad to become the best market in terms of home purchase affordability," the report said.

Eligible household income is defined as the minimum income that a household should earn to qualify for a home loan on a 1,000 sq ft flat at the prevailing market price.

A value of 100 means that a household has exactly enough income to qualify for the loan. Below 100 implies that an average household does not have enough income to qualify for a home loan,

while more than 100 means that an average household has more than enough income to qualify for the home loan.

According to the report, Mumbai is moving towards the affordability threshold.

"In 2020, Mumbai continues to be the only market below the affordability threshold of 100," it said.

However, the consultant said Mumbai is the fastest moving city, showing a significant improvement in HPAI from 47 in 2011 to 95 in 2020.

Newspaper/Online Deccan Herald ( online )

Date October 28, 2020

Link https://www.deccanherald.com/business/business-news/kolkata-beats-

hyderabad-to-become-most-affordable-market-for-home-purchase-

908184.html

"Our analysis suggests that despite a fall in household income in 2020, home purchase

affordability has increased in 2020 across all the markets under consideration,” said Ramesh Nair, CEO and Country Head, JLL India.

He projected home purchase affordability to either remain at similar levels or improve during 2021. Nair noted that the broader recovery of the housing market would depend largely upon the

economic environment and the prevailing consumer sentiments. JLL said that property values in a majority of India's prime residential markets have been stagnant

over the past few years, forcing most of the developers to work on very low margins.

On the other hand, household incomes have witnessed steady growth. The growth in household income has been consistently higher than the growth in house prices since 2011.

However, the consultant said the current year has been an exception.

Few developers in certain markets are providing moderate price discounts to facilitate cash flows in the short run. They are offering various freebies such as no EMIs for a year, no stamp duty etc. to attract prospective homebuyers.

This has resulted in a marginal dip in housing prices in certain markets. While prices remained

stagnant in the southern cities of Bengaluru and Hyderabad, the other markets under review witnessed a dip of 1-3 per cent in effective prices.

"At the same time, an unprecedented rise in unemployment, coupled with salary cuts during the year led to incomes decreasing (4-7 per cent dip) by a greater proportion in all the markets," the report said.

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Newspaper/Online The Telegraph ( online )

Date October 29, 2020

OTHER NEWS

Top eight markets Q3 residential launches record 68% rise: Report

Residential launches across India's top eight property markets have witnessed a major upturn with

68 percent jump during the quarter ended September over the previous quarter that was marked

by the lockdowns owing to the outbreak of Covid19 pandemic.

The growth in housing launches was led by Hyderabad, Kolkata, Mumbai and Pune. Launches

rose 658 percent on-quarter in Hyderabad, 326 percent in Kolkata, 238 percent in Mumbai

Metropolitan Region (MMR) and 164 percent in Pune, showed data from Liases Foras Real

Estate Rating & Research.

While sales, launches and inventory levels have improved sequentially from the lockdown

quarter, the performance remains far from recovering to the year ago levels.

Launches continue to be down 70 percent when compared with a year ago period.

These eight tier I markets have recorded sales of 42,297 units in September quarter, up 60 percent

from June quarter. Sales witnessed a maximum Increase of 68 percent in Kolkata followed by 64

percent in Ahmedabad and 60 percent each in MMR and Bengaluru.

Overall sales across tier I cities, however, declined 37 percent from a year ago. Sales in the

National Capital Region (NCR) and Bengaluru witnessed maximum decline of 47 percent and 46

percent, respectively on from a year ago followed by 37 percent in Ahmedabad and 32 percent in

Kolkata. Least decline of sales was seen in Chennai by 22 percent and Pune by 35 percent.

"Sales in the NCR and Bengaluru witnessed maximum decline of 47% and 46%, respective ly.

Least decline was seen in Chennai at 22%," Report.

Prices in the consolidated tier I cities, according to Liases Foras, remained the same on both

sequential and on-year basis.

Unsold units decreased by 3 percent on a sequential basis and the current unsold across top 8

cities stands at 932,767 units. Months’ inventory reached 66 months during the quarter from 109

months in the previous quarter which is a 39 percent drop as sales increased faster than new

launches. Although when compared to the year ago period it still remained 54 percent higher.

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Newspaper/Online The Times of India ( online )

Date October 28, 2020

Link https://content.magicbricks.com/property-news/top-eight-markets-q3-

residential-launches-record-68-percent-rise-report/116942.html

Residential market remains subdued in September quarter

In some respite, unsold stock in tier-I cities decreased by 4% in the September quarter

compared to the same period last year, on the back of sharp decline in new launches

The residential market continued to remain subdued in the September quarter compared to last

year, according to data released by Mumbai-based research firm Liases Foras.

Home sales across top eight cities declined 37% on a year-on-year basis to 42,297 units. While

the sales in NCR and Bengaluru witnessed maximum decline of 47% and 46% y-o-y respective ly,

sales in Ahmedabad came in lower by 37%, Kolkata declined by 32% and Pune by 35%. Least

decline of sales in percentage terms was witnessed in Chennai as the sales fell by 22%.

In some respite, unsold stock in tier-I cities decreased by 4% in the September quarter compared

to the same period last year, on the back of sharp decline in new launches.

The unsold stock at the end of the quarter stood at 9,32,767 units across Ahmedabad, Bengaluru,

Chennai, Hyderabad, Kolkata, MMR, NCR and Pune. NCR showed the maximum reduction by

11% in unsold units stock followed by Kolkata and Hyderabad by 10% and 8% respectively. Only

Pune witnessed a growth of 1% in unsold units.

New launches decreased by a steep 70% on a y-o-y basis to 18,591 units. New

launches in Chennai witnessed maximum decline of 86% followed by Kolkata with 81% decline,

Bengaluru by 80%, Hyderabad by 78%, Pune by 76%, Ahmedabad by 64%, NCR by 63% and

MMR saw the least decline in launches at 58%.

Overall months inventory increased by 54% on y-o-y basis to 66 months versus 43 months in the

September quarter last year. Inventory months increased maximum in Bengaluru by 74% to 97

months, followed by MMR to 85 months and NCR to 81 months.

Newspaper/Online Financial Express ( online )

Date October 29, 2020

Link https://www.financialexpress.com/industry/residential-market-

remains-subdued-in-september-quarter/2116005/

However, weighted average price across tier-I cities remained the same as compared to a year

ago at `6,730 per square feet. Chennai exhibited maximum increase in prices by 3% to Rs 5,168

per square feet, followed by 2% in Hyderabad to Rs 5,777 per square feet. Meanwhile prices

dipped in MMR by 3% to Rs 12,057 per square feet,

Kolkata by 3% to Rs 4,192 per square feet and Pune by 1% to Rs 5,234 per square feet. The prices

remained stable in Bengaluru and NCR at Rs 5,497 and Rs 4,620 per square feet respectively.

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Haryana RERA penalises several realtors for malpractices

In proceedings against CHD Developers, Ireo, Landmark Apartments, Siddhartha

Buildhome, Vatika, Tashee Land Developers and Tulsiani Constructions and Developers, it

ordered attachment of the bank accounts along with the movable properties of their

directors.

Acting tough, the Haryana Real Estate Regulatory Authority has penalised several colonisers for indulging in malpractices.

The RERA bench, headed by its Chairman K.K. Khandelwal and member S.C. Kush, on Tuesday took action against the promoters of various companies in the wake of complaints by allottees .

In proceedings against CHD Developers, Ireo Private Ltd, Landmark Apartments Private Ltd, Siddhartha Buildhome Private Ltd, Vatika Ltd, Tashee Land Developers Private Ltd and

Tulsiani Constructions and Developers Private Ltd, it ordered attachment of the bank accounts to the extent of Rs 7 crore along with the movable properties of their directors .

An order has been given to issue a bailable warrant against the directors of Prime Time Infra Projects Private Ltd for not complying with the orders of the authority.

During the hearing pertaining to execution petitions, the authority observed that Clarion

Properties Ltd has committed a gross violation of Section 3 of the Act by not registering its project with the authority.

It directed to issue a show-cause notice against the developer for non-registration of project under Section 59, which states that "the promoter shall be liable to a penalty up to 10 per cent of the estimated cost of the real estate project" and if the promoter continues to violate the provisions of

Section 3, he shall be punishable with imprisonment for a term up to three years or with fine further up to 10 per cent of the estimated cost of real estate project, or with both.

Stringent action has been taken against the promoter in the complaints against Supertech Ltd,

with the authority ordering it to pay Rs 5 crore to the allottee for delay in handing over of possession by the promoter.

A hefty cost of Rs 130,000 was imposed on Supertech Ltd for not filing reply within the stipula ted time and the fine has been paid, which will be disbursed to the allottees .

Newspaper/Online ET Realty ( online )

Date October 28, 2020

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

rera-penalises-several-realtors-for-malpractices/78914563

Khandelwal, in a statement, said that such actions against the defaulting promoters would not

only help providing an environment of growth and development of the real estate sector but would

also assist the allottees in gaining and preserving their trust in the authority for quick redressal.

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Jaipur development body will transfer land for MLA flats to RHB

after cabinet's nod

The RHB will take possession of 54 MLA bungalows and sell it off after demolition. A

meeting on November 5 is also scheduled to draft a proposal of 24,810 square metre land of

MLA quarters in Jalupura.

The state government has started the process to transfer 22,260 square metre land for the construction of multi-storeyed MLA apartments in Jyoti Nagar.

The Jaipur Development Authority (JDA) will transfer the land to Rajasthan Housing

Board (RHB) after the cabinet’s nod. An official informed, “A meeting by the chief secretary was called to discuss the issue. Urban

development and housing (UDH) minister Shanti Dhariwal will send a proposal to the cabinet for approval. Once a nod is received, the possession of land will be taken over by the general

administration department (GAD) and then transferred to the RHB,” he said.

The RHB will take possession of 54 MLA bungalows and sell it off after demolition. A meeting

on November 5 is also scheduled to draft a proposal of 24,810 square metre land of MLA quarters

in Jalupura. The revenue earned after selling the land of these bungalows at Lal Kothi and

Jalupura will be utilised to construct the apartments.

An official informed that the RHB has proposed to construct an eight-storey building in the

periphery of legislative assembly to accommodate 160 MLAs. Considering the project as a special

case, the 28-metre building height has been proposed against the 15-metre mentioned in the

building bylaws.

Although, the design has received in-principle approval, the final nod to provide relaxation in the

bylaws will be received by the urban development and housing (UDH) minister Shanti Dhariwa l,

as for the assembly’s structural dominance, in the 100-metre periphery, the height of the buildings

is restricted up to 15 metre.

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Newspaper/Online ET Realty ( online )

Date October 28, 2020

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

development-body-will-transfer-land-for-mla-flats-to-rhb-after-

cabinets-nod/78905037

Mohali development body sells 57 residential sites in e-auction,

earns Rs 417 crore

Gmada had offered a total of 113 commercial and residential sites worth Rs 800 crore, out

of which only 57 sites worth Rs 417 crore were auctioned.

A residential site measuring 500 square yards in Aerocity fetched Rs 1.93 crore while a booth in

Sector 61 went for Rs 1.15 crore as Greater Mohali Area Development Authority (Gmada) fetched Rs 417 crore by selling its 57 sites in an e-auction concluded late in the night on Monday.

Gmada had offered a total of 113 commercial and residential sites worth Rs 800 crore, out of which only 57 sites worth Rs 417 crore were auctioned .

The residential plot of 500 square yards which fetched Rs 1.93 crore had a reserve price of Rs 1.40 crore and was auctioned for just Rs 53 lakh and a booth fetched Rs 38 lakh more than the

reserve price of Rs 77 lakh to be sold at Rs 1.15 crore.

The e-auction was held after a gap of eight months from October 10 to 26 after Gmada slashed

the reserve price by 10%. However, Gmada had further offered a rebate of 10% if the successful

bidders deposit the full amount within 60 days of the e-auction end date. The last auction for

properties was held in February this year when Gmada managed to sell 32 out of the 67 sites after

offering a rebate of 20% in reserve prices.

Gmada offered a total of 22 residential sites out of which it managed to sell 14 sites and out of a

total of 32 commercial sites, it sold 28 booths. A hospital site measuring 16320 square yards in

Aerocity went for Rs 49 crore against a reserve price of Rs 24 crore, said a senior officer .

A group housing society in Sector 77 went for Rs 97 crore against the reserve price of Rs 45

crore. A commercial site in Aerocity measuring 4 acres went for Rs 116 crore against the reserve

price of Rs 83 crore. Gmada even sold seven IT sites, for which the calculations are yet to be

done. There were no takers for a school site in Eco City and four hotel sites in various parts of

Mohali.

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Newspaper/Online ET Realty ( online )

Date October 28, 2020

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

development-body-sells-57-residential-sites-in-e-auction-earns-rs-417-

crore/78905003

Pune civic body collects Rs 85 crore from property tax defaulters

PMC has waived off Rs 41 crore penalties owed by around 37,000 property owners. The

civic body had to recover Rs 4,500 crore from defaulters — dues of Rs 2,100 crore and

Rs2,400 crore in penalties.

The civic body has raked in Rs85 crore from property tax defaulters, who took advantage of the 80% penalty waiver offered under the amnesty scheme.

PMC has waived off Rs41 crore penalties owed by around 37,000 property owners. The civic body had to recover Rs4,500 crore from defaulters — dues of Rs2,100 crore and Rs2,400 crore

in penalties.

The defaulters must pay a 2% levy on pending tax. Those who have defaulted the tax include owners of small homes as well as large commercial properties, well-known developers, industr ia l units and hotels, PMC officials said.

PMC had introduced the amnesty scheme to provide relief in the backdrop of the coronavirus

pandemic.

“The deadline to pay tax is November 30. We are likely to introduce a penalty on defaults later,

so the overall benefit of the amnesty will be reduced. So people should ideally pay the tax before

October 31 to avoid last-minute hassles,” Vilas Kanade, head of PMC property tax department,

said.

As per PMC data, 10.5 lakh properties are registered, of which around four lakh have yet to pay

taxes. Taxpayers have the option of paying the taxes both offline and online .

“The civic body aims to recover the maximum tax from defaulters. The amnesty scheme is a step

to appeal to the defaulters and make them pay their dues,” Hemant Rasane, chairman of the civic

standing committee, told TOI.

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Newspaper/Online ET Realty ( online )

Date October 28, 2020

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

civic-body-collects-rs-85-crore-from-property-tax-defaulters/78904946

Coimbatore civic body releases list of top 100 property tax

defaulters

The civic body had compiled a list of top 20 defaulters in each zone and some of them had

not paid the property tax from as early as 1998.

The city corporation on Tuesday released a list of top 100 defaulters who had failed to pay a sum

of Rs 21 crore in total as property tax and had warned them to pay the due amount immediate ly.

The civic body had compiled a list of top 20 defaulters in each zone and some of them had not paid the property tax from as early as 1998. The defaulters list includes educational institutions, hotels, companies, supermarkets and a shopping complex.

The pending property tax that needs to be paid by the top 20 defaulters is Rs 5.66 crore in east

zone, Rs 1 crore in west zone, Rs 2.14 crore in south zone, Rs 4.58 crores in north zone and Rs 7.59 crore in central zone, according to the list.

Corporation commissioner P Kumaravel Pandian in a statement directed all the defaulters to pay

their pending amount immediately if not drinking water connection would be disconnected as per

the Section 204 (1) of Coimbatore City Municipal Corporation Act, 1981.

If they failed to pay the amount even after disconnecting the water supply connection, movable

properties would be seized by the corporation, he added.

A civic body source said most of the defaulters had not paid the tax amount since 2017 and in

some cases years before that. “The defaulters have already crossed the deadline to pay their due

amount and now only grace time – a week or so – is given to them. If they fail to pay, we will

take action.”

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Newspaper/Online ET Realty ( online )

Date October 28, 2020

Link https://realty.economictimes.indiatimes.com/news/regulatory/coimbato

re-civic-body-releases-list-of-top-100-property-tax-defaulters/78904976

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