CREDAI to boost real estate investment during Rajasthan summit-2022

credai-to-boost-real-estate-investment-during-rajasthan-summit-2022

On Wednesday the Jaipur Development Authority (JDA) met with the Confederation of Real Estate Developers Associations of India (CREDAI), Rajasthan. The purpose of this meeting is to provide job opportunities and attract domestic investors during the Invest Rajasthan Summit 2022.

Several officials believe after the meeting that there will be new opportunities for industrial development and employment in Jaipur’s tourism sector. At the meeting, a leading developer from Jaipur announced that his group will invest around Rs 10,000 crore during the Invest Rajasthan summit in 2022. The group will begin work on the second phase of the Mansarovar amusement park. In addition, a medical college will be built within a 10 km radius of the established medical hospital on Shipra Path in Mansarovar.

In addition, three industrial cities also established in Jaipur City, where about 2,000 companies will be established. Also, two integrated buildings will be built with about 3,000 plots. The group said it would also set up an IT center where the company’s offices in the cities of Chennai, Bangalore and Hyderabad would be available. In addition, these plans will also contribute to the development of housing construction.

The group informed the community that we will build two shelters for working women on the Jagatpura-Tonk road. In addition, a private golf course will be built on the way to Delhi.

Authorities making efforts to increase real estate investment! 

Other developers of CREDAI (Confederation of Developers’ Associations of India), who attended the meeting. They asked for the development of residential and commercial townships.

Jaipur Development Commissioner Gaurav Goyal said: “Rajasthan is a state with enormous industrial potential. Investment in the Rajasthan Summit in 2022 not only leads to the development of Jaipur, but will also create new job opportunities.”

Chief Minister Ashok Gehlot, in the 2021-22 budget announced that an investor summit would be organized to attract more and new investors to the state. The authorities are making an effort to increase investment in the real estate sector.

According to an official, several CREDAI members offered to provide concessions and incentives for water and electricity connections a municipal development memorandum and a proposed scheme. “After receiving feedback from various participants, the issues will be resolved at the JDA level. The issue that the JDA cannot resolve, referred to the state government.

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CREDAI: Property prices may increase by 10-15% in future!

Builders have to disclose the status of mortgage loans for apartments

CREDAI: Property prices may increase by 10-15% in future!

credai-property-prices-may-rise-in-future

The builders’ committee demanded that the government should take actions to regulate the prices of raw materials. They also proposed to reduce the tax on goods and services for this. CREDAI, which includes more than 13,000 developers, noted that the prices of building materials have risen steadily since January 2020.

The Confederation of Real Estate Developers Association of India (CREDAI) shows concern about the continuing rise in commodity prices, including cement and steel. Housing prices could rise by 10-15 percent to compensate for the increase in construction costs. The authority also demanded that the government should take steps to control the prices of raw materials, and proposed to reduce the tax on goods and services for this.

Delays in construction causes price hike-

In addition, the association said construction delays caused by curfews, lockdowns and labor shortages have led to a direct 10-15 percent increase in construction costs in recent years.

Generally the prices of all materials and goods have risen every time there is a steady rise in fuel prices. However the prices of building materials have been steadily rising since January 2020. Add to that construction delays caused by labor shortages, lockdowns, curfews, has led to rise in labor costs, which has resulted in a direct 10-15 percent increase in construction costs over the past 18 months. Also RERA does not allow the flexibility to increase the selling price even though construction costs increase significantly.

Government should tackle the increasing raw material price-

Harsh Vardhan Patodia, president, CREDAI National said, we have seen consistently sharp increases in commodity prices over the past year and they do not seem to be declining in the future. Developers may not be able to meet the rising costs and ultimately shift the burden onto home buyers. CREDAI requested the government and relevant ministries to address this issue and address the issue of price increases as soon as possible.

One way to deal with this problem may be to allow price increases by allowing the clause in the agreement between buyer and seller. The government may also consider allowing Input Tax Credit for real estate projects or optimizing GST for various building materials relative to their current prices. If these steps are not taken immediately, property prices in all segments will rise and will directly affect affordable housing and for all government missions for housing.

Hike in construction cost may affect buyers-

Anuj Puri, Chairman – ANAROCK Group said, given the rising inflation trends in the cost of materials such as cement and steel, it was clear that developers would sooner or later have to raise prices. The increase in building material costs is severe, so it can be offset without affecting buyers. Inflation has affected our lives at all levels, and property development is no exception.

Sharp price increase in raw materials-

Anubhav Jain, CEO, SilverGlades Group said, expenditure on raw materials such as cement and steel has risen markedly in recent months. Since most developers operate with very low margins, any hike in prices of raw materials puts enormous pressure. We will estimate our costs for the input resources, if necessary we also have to raise the prices.

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Builders have to disclose the status of mortgage loans for apartments

Builders can not divide and sell plots says Greater Noida Authority!

Buyers may face a delay upto two-year in delivery of flats in Delhi-NCR

two-year-delay-likely-in-delivery-of-flats-in-delhi-ncr

According to real estate associations Naredco and Credai, the completion time of apartments in different phases of construction in Delhi-NCR could be extended up to two years. The impact is primarily from two consecutive waves of the pandemic and the consequent disruptions in financing and employment.

It also prolongs the wait for the delayed apartments for a longer time. According to a recent survey by real estate consulting firm Anarock, there are more than 3 lakhs of such apartments in the major cities of Delhi-NCR. Apartments are considered delayed if they were launched in 2014 or earlier. Construction started after this period is in progress.

Delivery times for “ongoing” projects will also be affected. Completion time for more than 3 lakh apartments in the NCR may be affected by a two-year delay due to two waves of Covid-19. Real estate agencies Credai and Naredco say buyers and regulators should be ready to face at least a two-year delay. According to Anarock, around 50% of the delayed apartments are located in Greater Noida alone.

Relief package may help to boost construction

Real estate companies cited labor and supply chain problems during the pandemic as cause for the delay. The lack of cash flow also affected the construction work. This was reported by R.K. Arora, CMD of Supertech and President of Naredco, UP. “Since March 2020, project implementation has developed very slowly due to labor shortages, raw material shortages and related problems. Delivery time is delayed by approximately two years.”

Pankaj Bajaj, president of Credai (Delhi-NCR), said, Real estate is one of the worst hit sectors as a result most projects are likely to be delayed by about two years. We hope for relaxation to help us tackle this problem. In addition, to give construction a boost, the government should announce a relief package and provide last-mile funding through banks.

Additional six months registration validity

Prashant Thakur, head of research at Anarock said, According to a survey by Anarock, about 3.29 lakh flats launched in the NCR region in 2014 or earlier have now been stuck or delayed. The pandemic is one of the major reasons for the delay. All were to be delivered by June 2021. 50% of these units are in Greater Noida, Noida has about 16%, Gurgaon has about 12%, and Ghaziabad has about 10%. The remaining 12% are in Delhi, Faridabad and Bhiwadi.

UP-Rera member Balvinder Kumar said the solution was invented. Last year, we gave builders a six-month relaxation or waiver for registration restrictions when the pandemic broke out. According to current rules, all registrations can be valid for one year from the expiration date. We decided to extend the additional six months validity extension to registration of builders.

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UP-RERA rejects super-tech projects registration

Over 25% construction workers have left, projects may delay: Realtors

Confederation of Real Estate Developers (Credai) and The Indian Builders’ Association said that due to labor shortages on construction sites, the timing of real estate projects may be affected as more than 25% of migrant workers have gone to their hometowns. UP-Rera is aware of the situation and says that it can increase the project’s timelines.

Greater Noida and Noida together have about two lakh ready to move in apartments. Also on March 25, 2020, the UP-Rera has already given developers an extension of their under-construction apartments.

Given labor shortages at construction sites, the Confederation of Real Estate Developers (Credai) and Indian Builders’ Association said the delivery timing of real estate projects could be affected. Since more than 25% of migrant workers traveled to their homes. UP-Rera has become aware of the situation and says that it can extend deadlines of projects.

Although work resumed after unlock, cities could not regain all the labor force as previously. In contrast to the pre-pandemic strength of about four lakhs, there are hardly about 1 lakh workers in the cities.

Pankaj Bajaj, president of Credai-NCR, said. Material supply was again an issue due to the closure of markets over the weekend. In addition, more than 25% of migrant workers traveled to their place of residence. As a result, daily work became a problem. We can not meet deadlines. This may affect the completion timing of the ongoing projects.

Balvinder Kumar, UP-Rera member said, we understand the current situation and may consider some relaxation for builders in the coming days, though nothing has been decided so far.

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Builders asking for support of RBI to deal with Covid second wave

UP-RERA working with state government to end flats registration deadlock

Builders asking for support of RBI to deal with Covid second wave

Builders have urged the Reserve Bank of India (RBI) to consider a loan restructuring, a moratorium on interest payments, and extra liquidity support to the real estate sector. This comes after RBI Governor Shaktikanta Das announced on Wednesday a covid relief package for individuals, small businesses, and MSMEs.

The RBI Governor has mentioned a number of measures and arrangements in his statements. Such as the second round of loan restructuring and other relief measures as well as the term liquidity facility of about Rs 50,000 crore for healthcare and SLTRO for Small Finance Banks. The central bank also recognized the difficulties faced by individuals, small businesses, and small and medium-sized enterprises. Due to downsizing, and provided resolution 2.0 measures to restructure loans to small borrowers of up to Rs 25 crore.

CREDAI encouraged and hoped that similar measures would be announced in the coming days. To address the problems of large companies and labor-intensive sectors such as real estate.

It is hope that RBI consider real estate sector as well!

This was stated by the President of CREDAI Harsh Vardhan Patodia. We are convinced that the measures that make accounts classified as SMA 1 and SMA 2 also suitable for restructuring. An interest rate moratorium together with additional liquidity under ECLGS 3.0 transferred to real estate projects will help in reviving the economy and create jobs that are most important to compensate the influence of the second wave.

This was stated by the President of NAREDCO, Niranjan Hiranandani. The RBI governor announced a number of plans. Including the second round of loan restructuring and other relief measures, steps in the right direction. It is hoped that he will also look at industries as real estate that need similar support in these difficult times. We expect consistent, calibrated, and timely action across industries such as real estate.

Samantak Das, chief economist and head of Research & REIS, JLL India said. Apart from individual borrowers, this will be of great help to SMEs associated with the real estate sector, especially resource providers for this sector.

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UP-RERA working with state government to end flats registration deadlock

ICICI, SBI, LIC, HDFC, other life insurers set to invest in InvITs, REITs

Credai to shove for change in proposed real estate bill

 

cThe Confederation of Real Estate Developers’ Associations of India (Credai) will ask the Central Government for the adjustments to the proposed Real Estate Bill. If the present norms are implemented it could lead to big problems for big boys and will also hike the user-end housing cost in the market.

The Realtor governing body said a regulatory body is must to punish offender but some provisions in the bill are unfairly lodged against the developers and would also scare away small time developers for the market.

The body wanted these major issues to be discussed when the Bill is passed in the Parliament in the winter session.

The Centre should engage the developers in the roll out of affordable housing policies.  The body is keen to take part and contribute measures for the implementation of affordable houses in the country.

The major issue with some guidelines, the developers could end up being punished for a projects time period over which they have no control.

Credai suggested the ‘Residex’, a housing price pointer by the National Housing Bank, to get better parameters in order to be a more realistic reflection of the market.

The next meeting will open its doors to non-members and professionals such as real-estate consultants. The two-day event will also focus on sharing best practices with participants from Tier-II and Tier-III cities in the country.

MCHI Demands Expert Panels To Clear Projects

The Maharashtra Chamber of Housing Industry (MCHI) requested the state CM Prithviraj Chavan to form two expert panels for the clearance of projects.

MUMBAI: The Maharashtra Chamber of Housing Industry (MCHI) has requested Prithviraj Chavan, the State CM, to appoint two expert panels for clearing the real estate projects.

MCHI asked for two panels which will be formed of five experts and structural engineers. MCHI has also asked the state CM to disperse the high-rise committee. Continue reading

Property Transactions Set to Go Costlier

CREDAI Bengal Chapter has said that new property tax will make property transactions costlier. It will adversely affect property transactions as well as the realty sector.

KOLKATA: The state government of Bengal has proposed new tax on property transactions. This was presented in the Finance Bill 2013.  Continue reading

RBI Slightly Cut Rates, Developers Seek More

RBI decided to cut the key policy rates by 0.25%. Welcoming the rate cut, realtors said that this will boost the sector.

Finally the Reserve Bank of India cut the key policy rates. While welcoming the decision of RBI, realtors said that it would boost the sector. RBI cut the repo rate (the rate at which banks borrow from the RBI) by a mere 0.25%.

RBI slightly cut the key rates.

RBI slightly cut the key rates.

Commenting on the rate cut, realtors said that the interest would have gone down if the reduction rate was further lowered. A further reduction would necessarily boost the home sales. Home loans will be lowered. This will boost the sentiments of the buyers.

Along with the buyers, the builders also will benefit from further rate cuts. If the repo rates are further revised, it will bring the EMIs down.

Speaking on the issue, former CREDAI chief Lalit Kumar Jain said that the common house buyers will benefit from the reduction of repo rate.

The Central Bank of India today cut the repo rate, short-term lending rate, by a mere 0.25%.  After the reduction now the repo rate stands at 7.25.

Developers seek more rate cuts from RBI.

Developers seek more rate cuts from RBI.

The RBI decision was met with mixed response. DLF, one the largest developers in India, said that the rate cut will hardly have any impact on the realty sector. The realty major said that the reduction is too small to leave an impact on the sector.

Rajeev Talwar, Executive Director of DLF Group, demanded further reduction. He opined that only a further reduction will boost both economy as well as realty. Mr. Talwar stated that the rate cut is very so small that it is insufficient to boost either economy or realty.

Sachin Sandhir of RICS (Royal Institution of Chartered Surveyors) also expressed a similar view. He too said only further rate cuts can boost realty sector.

Assotech MD Sanjeev Srivastva said that the move will boost the sector. He hopes that the rate cut by RBI will be passed on to the customers by the financial institutions.

CMDA Nods Corversion of Vacant IT Buildings to Malls

CMDA has signaled green for converting vacant IT buildings to shopping malls and office spaces.

Buildings built for Information Technology may soon be turned into shopping malls and office spaces. The Chennai Metropolitan Development Authority –CMDA has sanctioned the conversion of IT buildings into other purposes. Continue reading

Vadodara’s Vacant Properties? RTI Reply Invites Mix-Up

An RTI reply stated that Vadodara has around 1 lakh of vacant properties. The RTI reply is considered as an alarm-bell for the real estate sector in Vadodara.

Sunset scene from  Manjalpur Bridge in Vadodara: Confusion arises over the number of vacant properties.

Sunset scene from Manjalpur Bridge in Vadodara: Confusion arises over the number of vacant properties.

According to an RTI reply, over 1 lakh of properties remain vacant in Vadodara. Meanwhile there appear no takers for the property, it added. The RTI reply which revealed that there are over 1 lakh vacant properties in Vadodara has been considered as a warning- sign for the real estate sector in the city.

RTI reply was made by the Directorate of Census Operations, Gujarat, to a native of Vadodara. A copy has been sent to the Vadodara Municipal Corporation as well. The RTI reply clearly stated that over 1 lakh properties, precisely 1.02 lakh, were vacant in the city. Continue reading

Real Estate Regulatory Bill: Developers Differ Highly

Developers differ on the real estate regulatory bill as it is ‘one- sided’ in their opinion. The bill which has provisions to send the default builders to jail,exclusively avoid the punishment of default buyers.

Real estate authority bill: CREDAI remains suspecious.

Real estate regulatory bill: Builders remain suspicious.

Real estate regulatory bill is expected to be introduced in the upcoming parliament session. Some of the provisions in the regulatory bill are supposed to become a burden on the shoulders of the default builders. Some builders opined that the bill will curb and control the unscrupulous and dubious builders.

According to Mr. Pradipta Kumar Biswasroy, Real Estate Developers Association’s (REDA) Odisha Head, a commission is necessary to look after the real estate sector. He blamed that, at present, many unscrupulous builders exist because there is no proper law to curb them. He said that the sector loses its face due to the dubious acts of such unscrupulous builders. Continue reading

Real Estate Regulatory Authority Bill Speeded Up By PMO

To implement the pending Real Estate Regulatory Authority Bill, finally Prime Minister’s Office had to step in. PMO has directed both housing and urban poverty alleviation and urban development ministries to sort out their issues and implement the bill soon.

Real Estate Regulatory Authority Bill

Pending Real Estate Regulatory Authority Bill sped by PMO.

The implementation of Real Estate Regulatory Authority Bill has been delayed due to the war between the Ministry for Housing and Urban Poverty Alleviation (MHUPA) And the Ministry for Urban Development. Finally, these ministries are ordered to solve out the issues and soon implement the Bill.

Real Estate Regulatory Authority Bill aims to protect the property buyers from the developers who often use canny methods. MHUPA initiated the Real Estate Regulatory Authority Bill to protect the buyers’ interest and placed it in the Cabinet for Clearance. Continue reading

CREDAI Doubtful Over The Success Of MIDC Policy

CREDAI remains doubtful over the success of Maharashtra Industrial Development Corporation’s (MIDC) new SEZ policy. As per the new policy more Special Economic Zones (SEZ) land is provided for housing development.

industrial policy is doubted

CREDAI is doubtful over the success of new industrial policy of MIDC.

CREDAI said that the new industrial policy of the MIDC may not be as successful as it is expected to be. The apex Confederation Of Real Estate Developers remains doubtful over the success of the new policy to develop integrated Industrial Township. CREDAI’s national chief Mr. Lalit Kumar Jain expressed his doubt.

Mr. Jain asked how the policy will be successful as the SEZ lands have failed to take off. He said in a statement that the new policy will fail as long as no concession is offered. Continue reading

Real Estate Sector Hopes To Thrive In 2013

The year 2013 is expected to be a boom year for economy as a whole. This is more expected in the real estate sector. Real estate sector expects to thrive in 2013.

Real Estate Sector Hopes To Thrive In 2013

Real Estate Sector: ready to thrive in 2013

Real estate sector went through a tough time in the year 2012. The year was noted for its slow pace and declined market. Lower sales and higher construction costs affected the real estate developers adversely. In short the year 2012 was a very difficult one for the real estate developers of India. They faced a tough economic condition as sales stooped down.

Lalit Kumar Jain, National head of CREDAI (Confederation of Real Estate Developers’ Associations of India) expressed his hopes of revival in the year 2013. He said that the year 2012 was a year of loss especially because no corrective step was taken. He moaned that the 2012 remain as a lost opportunity.

Real estate consultancy firm Jones Lang LaSalle India’s Chairman & Country Head, Anuj Puri appeared more confident over the real estate renovation. According to him real estate boom will be more in the final-half of 2013.

The RBI (Reserve Bank of India) has, in recent times, allowed reputable real estate developers to raise funds up to $1 billion. The RBI also has permitted established housing finance companies to raise an equivalent fund. With this new rule the real estate builders and finance companies can raise funds through external commercial borrowings. Continue reading

Land Acquisition Bill Invites Hike in Residential Prices

Union Cabinet recently passed the Land Acquisition Bill. The land acquisition bill ensures more right to the farmers. Real estate experts opine that the bill will cause residential prices to go up.

Land Acquisition Bill Invites Hike in Residential Prices

Residential Prices set to go up with Land Acquisition Bill.

Union Cabinet voted in favor of land acquisition bill. The bill will force the housing prices to go up, report real estate analysts. As per the land acquisition bill the land owners’ consent has become mandatory for all private projects.

The year 2012 witnessed a decreasing price appreciation for the residential sector. This year with the approval of land acquisition bill the situation is going to be worsened. Experts are of the opinion that the bill will necessitate price – hike. In fact the value appreciation will be improved. Continue reading

CREDAI Demands Consumer Friendly Real Estate Reforms

CREDAI, the apex confederation of real estate builders said that the real estate reforms must be consumer friendly.

Consumer Friendly Real Estate Reforms

Consumer Friendly Real Estate Reforms turn the need of the hour to provide “Home for All.”

CREDAI has appealed to all the parliament members (MPs) to bring in reforms which are consumer friendly. The apex body of the real estate developers further asked them to consider the large number of stalled projects. Continue reading

CREDAI Asks Real Estate Builders to Ease Property Prices

CREDAI- Real estate developers’ apex confederation asked its members to ease property prices. The real estate developers’ apex body advised its members to lower property prices for selling them off.

CREDAI national head Mr. Lalit Kumar Jain said that the real estate developers consider selling of their unsold properties at a lower rate. P Chidambaram, the Finance Minister of India, placed the suggestion in front of real estate developers.

P Chidambaram suggested the Real estate developers to consider the amount of unsold properties. He pointed out that there exist a vast number of real estate properties which remain unsold. Continue reading

Real Estate Developers Oppose ULCA in Bengal

CREDAI urged the Bengal government to repeal urban land ceiling act. The apex body of real estate developers said that this has become a serious issue which blocks the real estate constructions.

Real estate developers’ confederation – CREDAI harshly blamed the Mamata Banerjee government to implement Urban Land (Ceiling and Regulation) Act (ULCA) in Bengal. The apex real estate developers’ confederation pointed out that Bengal is one of the few Indian states to have ULCA. Continue reading

CREDAI Express Discontent on The New Real Estate Bill

The decision of Housing and Urban poverty alleviation ministry (MHUPA) is looked down by the apex body of Real Estate Developers- CREDAI.

CREDAI showed higher discontent over the MHUPA’s new Real estate Bill. The officials of CREDAI said that the bill will foster corruption. The new Real estate Bill is roughly welcomed by the real estate developers.

The Confederation of Real Estate Developers’ Associations of India have nearly 8,800 developers as its members. The CREDAI members represent 20 States of India. The apex body has 114 city- divisions across the country. Continue reading

CREDAI Appreciates AP Govt.’s Online Approval System

Confederation of Real Estate Developers’ Association of India- CREDAI, welcomed the AP Govt.’s online approval of building plans. The apex body of builders pointed this as highly appreciable.

Andhra Pradesh Government has launched single window system for approving the building plans of real estate projects. CREDAI appreciated the real estate reforms like online building plan approval and single window system. Earlier this year the apex body of the real estate developers had asked for speedy clearance. Continue reading

HC Orders MH Real Estate Builders To Pay 5% VAT

Maharashtra High Court ordered the real estate builders to pay 5% VAT by 31 of Oct. This order solely binds builders to pay the tax but they are found forcing the buyers to pay the tax.

VAT Troubles Real Estate Builders

VAT Troubles Real Estate Builders

Real estate Builders remain unable to claim their tax provisions due to less transparency and poor records. The developers are still expected to pay the entire amount. Continue reading

CREDAI Demands Speedy Eco Clearance Certificates

CREDAI pointed out that the real estate builders will be able to meet the rising demand only if the Ministry of Environment caters faster clearance.

Environment Clearance

“Environment Clearance Need to Be Faster” Says CREDAI.

CREDAI, the apex body of real estate developers demanded the government to speed up the eco clearance. The Confederation of Real Estate Developers Association of India requested the government to avoid “antiquated laws” in favor of urban development and housing.

CREDAI strongly supported a pragmatic and practical approach to meet the severe housing shortage. The apex body of the developers recommended all government departments and especially the Ministry of Environment. Continue reading

Mumbai Real Estate termed Investor-Unfriendly by CREDAI

CREDAI showed discontent over the unsupportive policies of the MH govt. by terming Mumbai real estate as “investor unfriendly.”

Bye Bye to Mumbai Real estate

Bye Bye to Mumbai

CREDAI is dissatisfied with the existing Mumbai real estate conditions. This unfriendly atmosphere of Mumbai leads CREDAI to shift their investment plan to Gujarat. Continue reading

Festive Season Fills New Hope in Residential Real Estate

Enlightening Festive Season

Enlightening Festive Season

Confederation of Real Estate Developers Association of India – CREDAI expressed their hope of 20 percent improvement in the housing sales. This improvement will be mainly in the major cities of India. Smaller cities always remained unaffected by the interest rates. Continue reading