ICCPL PROPERTY NEWS

NO CHANGE IN THE PRE-GST REVIEW BY RBI

          With the biggest tax reform in the country to be implemented from the first day of the next month, today’s bi-monthly monetary review came out with no surprises as India’s central bank governor Dr. Urjit Patel kept the key rates unchanged in it’s second policy review for the FY 2017-18. With the apex bank currently holding excess liquidity and the economy unable to tackle the growth slowdown, keeping the rates unchanged was a balanced and cautious move, also keeping in mind the implementation of the Goods and Services Tax (GST) from 1st of July.

   With today’s decision in the monetary review, Repo rate remains unchanged at 6.25 percent, Reverse Repo rate at 6 percent, Marginal Standing Facility (MSF) at 6.50 percent and Cash Reserve Ratio (CRR) at 4 percent respectively. Although, the Statutory Liquidity Ratio (SLR) has been brought down by 50 basis points to 20 percent from 20.5 percent previously, which will take effect from the fortnight beginning 24th June. In the post demonetised era, RERA implemented across the country with majority states still to follow suit and GST to come up next; residential demand and prices are expected to make an upward movement. Realty experts and stalwarts feel that this monetary review should have provided a rate cut as prices after RERA and GST are projected to go up.

Industry Reacts:

Avneesh Sood, Director, Eros Group

Looking at the market dynamics, we were projecting the RBI to maintain the status quo as it is currently holding high liquidity and a historic tax reform in the form of GST is in the pipeline. A balanced move today will allow the market to absorb the upcoming impacts from GST on various industries and sectors. The next policy review might allow the RBI to cut repo rate, the benefit of which might be passed on by the banks in the near future.

Manoj Chaudhary, MD, Airwil Infra Ltd.

We were anticipating a rate cut this time which would have pushed the banks to further reduce the lending rates. Any reduction in lending rate allows the sentiments to improve as the net cost on the buyer for the housing unit gets decreased. With RERA and GST to have a joint impact on the realty sector, a rate cut this time could have provided a much needed breather for the sector, its players and the buyers as well.

Dhiraj Jain, Director, Mahagun Group

Even though the RBI has not cut the repo rate today, still there is a lot of room for the banks to further reduce the lending rates. The previous repo rate reductions by the apex bank are yet to offer the complete results; that is held by the banks. A lending rate of 6-7 percent is ideal for our realty sector as we are moving towards strong policy changes at the national level which will leave long term effects on the realty sector and its allied industries.

Kushagr Ansal, Director, Ansal Housing

A rate cut of 25 bps could have helped ease the pressure off the market which has been balancing itself through the confusion still pertaining with RERA. With GST to become operational from July, prices for properties are expected to shoot up. During such scenarios, a slash in repo rate would have meant drop in home loan rates by banks, which ultimately reduces the burden off the buyers. With no change today, we expect the market to run uniformly with a static demand in the short run.

Deepak Kapoor, President CREDAI-Western U.P. & Director, Gulshan Homz

This decision of RBI to keep the rates unchanged will prove very substantial in the first quarter post GST is implemented. Before questioning the judgement of the apex bank on holding the rates, one must not forget that it has to keep sufficient cushion for the economy with the massive changes that will come about in the next few months in form of REITs, InvITs, GST, and SPVs.

ICCPL PROPERTY NEWS

Dushyant Sinha, Founder of ICCPL bags the award for Best PR Professional of the Year- 
New Delhi – In a glittering event held in the capital, Dushyant Sinha, the founder of ICCPL, a renowned PR & Digital Communications Company received the award for Best PR Professional of the Year.
The event was marked by the presence of Shri. J.P.Nadda, Union Minister for Health, Honourable Governor for Goa, Mrs. Mridula Sinha and many more imminent personalities from politics, health & real estate sector. The award ceremony was held at Hotel Lalit, New Delhi.
Integrated Centre for Consultancy Pvt Ltd (ICCPL) is a growing name in the fields of Public Relations and Digital Communications which has expertise in Real estate, Education, Health and Automobile sector. The company today is one of the front runners in its sector and is gradually moving towards becoming the biggest service provider in communications in Northern India. The company was founded by Dushyant Sinha way back in 2011 and today it has developed in group of companies and every group company managing its own set of clients. The company primarily caters to Public Relations & Digital needs for its clients.
Dushyant Sinha, the founder in last couple of years has won multiple awards in various categories of marketing and public relations. The young entrepreneur believes that such awards are good for motivation and credits his team for all the success and is looking forward for more such accolades in future.

ICCPL PROPERTY NEWS

KKR INVESTS 200 CRORES IN SIGNATURE GLOBAL’S AFFORDABLE HOUSING

Delhi: Leading financial investor KKR has committed to invest 200 Crore in the National Capital Region based affordable housing player Signature Global India Private Limited. The company has alongside launched two more affordable housing projects in Gurugram primarily ‘The Millenia’ in Sector – 37D and Solera 2, in Sector 107. The projects would also be coming up under the Haryana Affordable Housing Policy like their earlier projects. The company also plans to deliver the first phase of the project Solera, launched in 2015 under the same policy and awarded a 5 star rating from CARE Rating, by the early 2018. This will be the first delivery of any Haryana affordable housing policy project across Haryana . 

On this occasion, Pradeep Aggarwal, Co – founder & Chairman, Signature Global said, “It is very exciting and encouraging at the same time to partner with a leading financial investor like KKR and we wish to take forward this partnership in a long way. We are currently developing approx 7,400 affordable homes out of which we have already allotted 5005 units and 2400 would be allotted soon. We wish to develop over 1,00,000 affordable homes till 2022 . The current launch of over 1900 units is a step in the same direction and would come up at a total cost of 500 Crores.”

Apart from the recent accrual of 200 Crores, Signature Global had also raised 150 Crores from ICICI Prudential in May last year. To boost rural and urban housing , post demonetisation, the Prime Minister had announced interest subsidy of up to 3, 4 & 6.5 per cent on loans taken under the Pradhan Mantri Awaas Yojana. The amount raised through this recent funding would be used towards the development of its affordable housing projects.

Speaking further on the group’s expansion plans, Ravi Aggarwal, Co – founder & Managing Director, Signature Global Group said, “Signature Global has the vision of Har Parivar Ek Ghar and working with that vision, they wish to be one of the leading contributor towards the PM’s vision of Housing for All and that is the reason we would be soon expanding to other cities like Karnal, Ghaziabad and further to multiple cities in Uttar Pradesh and Maharashtra. Lalit Aggarwal , Co – founder &  Joint Managing director added we are also exploring opportunities for Joint Development Agreement across the country in affordable housing segment. Talks are already in the closing stages of a JDA in Mumbai for affordable housing. We are looking at launching another 20,000 affordable housing units by the end of this financial year wherein our focus will remain the same of providing quality housing for first time home buyers.”

KPMG India Private Limited and Yes Securities Ltd., a wholly owned subsidiary of YES Bank Ltd. acted as financial advisors to the transaction.

ICCPL PROPERTY NEWS

RERA ERA FINALLY ARRIVED

The unorganised nature of Indian realty is the sole reason why it had always been in the dire need of a regulatory authority which will now be available post the implementation of nationwide RERA from May 1, 2017. Several states and almost all the Union Territories have notified the laws of RERA before the said deadline of April 30th, 2017. RERA is something which is happening for the first time across the nation and would more or less be finalised along the framework which was set forth by the central government. RERA tends to bring about a new dawn in the sector of Indian realty and limit the concerns of several homebuyers and investors who had almost written off this sector which has seized to be one of the greatest employers and contributors to the country’s GDP. Slowly with the turn of clock, RERA would also settle down as any normal regulation similar to the hundreds we observe in our day to day life but the initial phase will definitely hold key to how better it is accepted amongst the developers and buyers

Industry Reacts:

Manoj Gaur, Vice President CREDAI – National & MD, Gaursons Group

At the outset, I welcome this much awaited initiative of RERA, which should bring huge relief to homebuyers as well as regulate the real estate sector of India. With the implementation of this act, now all approvals will have to be in place and the agreement signed with buyers includes the interest and the penalty clauses laid down in RERA. Also, the statute now demands that the builder should mention carpet area also specify common areas and the parking areas separately. At the CREDAI level too, the apex body of developers is holding training sessions for developers to educate them on the changes expected in the new business environment.

Deepak Kapoor, President CREDAI-Western U.P. & Director, Gulshan Homz

The buyers of property market in particular had waited long for RERA becoming a reality which guarantees safeguarding of their rights and interests. For long has this sector and its buyers being affected, but with RERA in place now, soon there will be a regulator in every state who will monitor all the transactions and have answers for their grievances. The amendments are fair and developers have already started working on the lines because these will now pave way for a better demand and supply in the sector. 

Avneesh Sood, Director, Eros Group

With RERA implemented in full scale now across major states and union territories, developers are sure to find it encouraging towards building a better image for the sector. Infact, most of the developers who are genuinely into real estate had already been following the rules which have been set forth by this act. With the government concerned and showing direct intentions towards the sector, RERA will enhance the sentiments in the sector paving way for growth. Possessions are the hot cakes in the sector today and history of a developer in the near future would be judged on the possessions they have offered.

Ashok Gupta, CMD, Ajnara India Ltd.

With so many states implementing RERA today, we will see a completely different scenario in the sector in near future. Infact, developers have been gearing up for RERA ever since it became an act in the parliament and have been working based on the norms excluding the limitations. These limitations, if some, can be done away with only when it is existent in the real scenario helping everyone understand them better and try devising corrections.

Pradeep Aggarwal, Co – Founder & Chairman, Signature Global 

Indian real estate sector will shape up in a different manner now. With RERA on board and implemented in full force, each state will have a regulator in place to safeguard the interests of the buyers and promote fair dealings in the sector. The housing demand in particular, will catch up momentum which will allow better performance of the sector. But, apart from everything else, the one thing that will infuse buyer sentiments in the sector will be of timely deliveries. 

Ashwani Prakash, Executive Director, Paramount Group

The regulatory act (RERA), has been able to arrest the uncertainty in the real estate sector, vis a vis the investors and end users. The mere passage of the bill had given a lot of clarity and made real estate dealings more transparent there by bringing the confidence in the investors and the end users.  Once this confidence sets in completely with it’s proper implementation, the market is bound to grow at a steady pace. Single window clearance system once implemented across the country will allow RERA to function smoothly, without which there might still be some barriers.

Rajesh Goyal, Vice President CREDAI-Western U.P. & MD, RG Group

Developers are certainly well prepared for this change now with RERA implemented across several states. The impacts are certainly going to be visible for both buyers and developers soon. Developers who are not able to deliver on their promises would be automatically filtered out reducing the existing supply in the market, the sector would be much more organised than before and people would be answerable for what is being done at each stage of project development. Buyers on the other hand would be assured of timely deliveries or assured penalty charges in cases of delay but simultaneously would see the property prices going up because of the supply reducing drastically.

Rakesh Yadav, Chairman, Antriksh India

This act is aimed at protecting the interests of consumers, and also seeks to promote fair play in real estate transactions and ensuring timely execution of projects. With this act in place, every state will now have a regulator who will be continuously supervising and monitoring. Moreover, the projects will now be completed on time and developers will have to submit all the layouts, plans and documents with the regulator who will ensure transparency and hence, customers will feel more secure while transacting. 

Gaurav Gupta, General Secretary, CREDAI – RNE

RERA is the biggest thing to happen in the Indian real estate sector and we hope that it will infuse 300% more confidence in the buyers to buy their dream home. This in turn will allow end users to create demand, but will take a while to get going and certain case studies to prove its effectiveness. This act will safeguard the interests of every buyer which will allow a transparent and secured route to transact in future. Once the Act becomes fully functional in each state, grievances will not remain unanswered, and will come with a definite solution. RERA will open more sources of institutional funding for the sector as institutional confidence will also go up in the presence of a regulator. We hope that the teething problems in its implementation will sure be addressed by the government in a practical manner as the intentions of the government is very clear towards protecting the interests of the buyers rather than to strangulate the sector.

Dhiraj Jain, Director, Mahagun Group

RERA’s prime motive is to curb the irregularities persisting in the real estate sector and protect buyers’ interest. There are strict guidelines in the act against developers who are unable to deliver on time. But we cannot deny the fact that developers today are under severe pain of not getting the obligatory clearances and approvals on time; and if this continues then they’ll be axed for no reason. Thus, the government must ensure the passage of single window clearance, so as to allow the sector to work in a much systematic and organised manner, with full support for RERA as well.

Vikas Bhasin, MD, Saya Group

For long has the sector’s buyers and stakeholders being affected due to the absence of a watchdog for the real estate transactions. But with RERA now in place, there will a regulator in every state who will monitor all these activities and have solutions for the problems of the buyers. Developers who had been working fair and square need not worry much about the circumstances post the implementation of the act because adhering to norms and guidelines is a general business practice and that is what RERA is all about, to ensure all norms and guidelines are followed.

ICCPL PROPERTY NEWS

AVNEESH SOOD OF EROS GROUP CONDUCTS PLANTATION DRIVE

Greater Noida: With temperatures rising up this season, Eros Group organized a plantation drive on Wednesday at its premium project, Eros Sampoornam, located in Greater Noida West. The drive was conducted in presence of several residents, Eros team, and Director of Eros Group, Mr. Avneesh Sood. Around 150 saplings, 5 full grown palm trees and few more semi-grown trees were rooted at the site, covering areas near the boulevard, kids activity area and around the society perimeter.

“The drive was one of our endeavors to conserve the environment and also with summers knocking on the doors, these newly planted trees could be beneficial for everyone to have the temperature and pollution level controlled of the whole society”, said Mr. Sood. Over 80 people had joined the event and participated arduously to make the society greener. The newly planted trees would be kept under continuous maintenance by the society administration and the residents as well. Beginning in the morning the drive concluded by afternoon.

ICCPL PROPERTY NEWS

RBI OFFERS MULTIPLE INDISCERNIBLE PLUSSES

The financial year 2016 – 17 was a true example of any developing economy which was marked with both ups and downs for the real estate sector.  Where one could see the peak of the sector in the past couple of years during the festive season, suddenly after it, demonetisation crippled the sector to it’s bottom most for the upcoming two months. But with things like RERA, Smart Cities Mission and Housing for All in the pipeline, the sector is expected to perform better than ever. As one of the highest contributors to the country’s GDP and an end user to over 30 allied industries, very high hopes rest on this sector to perform well in order for the economy to revive. On top of it all, the Reserve Bank would always play a key role in deciding the fate of this sector through it’s bi – monthly monetary policy reviews.

With today’s decision in the monetary policy review, the Repo rate remains unchanged at 6.25 percent. However, the corridor under the LAF has been narrowed down to 25 basis points which makes the Reverse Repo rate stand at 6.0 percent. This adjustment under the LAF also means that the Marginal Standing Facility (MSF) also stands reduced at 6.5 percent basis the recalibration of MSF difference to 50 basis points above the Reverse Repo rate. Cash Reserve Ration (CRR) at 4 percent and Statutory Liquidity Ratio (SLR)  at 20.5 percent remain unchanged. There are no direct benefits attached for the financial institutions but indirectly they gain a lot with the increase in Reverse Repo and reduction in the MSF, allowing them to lend to RBI at higher rates and enabling overnight borrowing at a lower rate.

Industry Reacts: 

Manoj Gaur, President CREDAI-NCR & MD, Gaursons India Ltd.

It is great to see that the Reserve Bank has been so persuasive towards reduced lending rates in the market, specially from the end of Financial Institutions. Increased Reverse Repo rate would mean RBI withdrawing money from the market at a higher rate, hence filling the hands of the banks further. However, it’s on the part of the financial institutions to convert these indirect benefits into something substantial for the end users and promote healthy business environment in the market.

Gaurav Gupta, General Secretary, CREDAI – RNE

A recalibrated MSF standing reduced at 6.5 percent would mean that the overnight borrowing of banks from RBI would come at a lower rate giving a freer hand to banks at lending. However, some direct rate cuts could have been also beneficial in the short term for the realty sector because with the recent data release by RBI which states that HPI has picked up in the last calendar year would have allowed the realty sector to ride on improved sentiments from all corners of the economy.

Vikas Bhasin, MD, Saya Group

Also with global growth indicators showing signs of stronger activity in most of the Advanced Economies and further indicators pointing to a modest improvement in the macroeconomic outlook of the country might have prompted the apex bank to keep a cautious approach towards any major changes in the key rates. However, it was very heartening to see that the RBI has been very accommodative towards reduced lending rates in the market and hence has passed on benefits indirectly to the government allowing them the necessary room to work upon.

Dhiraj Jain, Director, Mahagun Group

In case of a low interest rate environment surrounding the economy and cash available in abundance, the risk of inflation moving up exists. Hence, the RBI doesn’t reduce the rates until it has been fully convinced about the inflation control; as even the inflation had been on a rise for the fifth straight month till February but has taken a downward trend in March which would be kept under strict vigil the next policy review allowing them the necessary cushion to work further on the key rates. Till then, even the financial institutions should also devise ways to offer indirect benefits to borrowers. 

Rajesh Goyal, Vice President CREDAI-Western U.P. & MD, RG Group

This is not a surprise move by the RBI as everyone was expecting a stagnant approach towards the key rates. The market has been gaining stability and post the union budget, further ease could have been thought off on the cards. Even though the RBI has not provided any rate cut this time, fresh home loan borrowers should not worry much as they may still witness lowered EMIs because amidst intensifying competition among the lenders, the banks might be forced to start cutting down the interest rates themselves.

ICCPL PROPERTY NEWS

DEHRADUN’S REALTY CATCHING UP PACE

       If you are planning to buy a second property, then Dehradun might just be the perfect destination to fulfil your desires. From being a favoured tourist hot spot to a pilgrimage, Dehradun is a good real estate bet that can allow a buyer to not only get a second home residence option, but provide greater returns on investments too. Due to its existing institutional, education and industrial hubs, the infrastructure in the region is ever-expanding; and now with the realty giants stepping up, a big makeover is in progress that will further enhance the attraction quotient of the city.

Even the NRIs have been showing a keen interest in the region, says Avneesh Sood, Director of Eros Group as he adds, “Since the fall of Rupee against the dollar, last couple of years have witnessed a surge in foreign investments in Dehradun and it ranks quite well against other major cities in the country and we expect this investment plan to increase by another 20-25 percent in the next couple of years.” According to a report by Assocham in 2013, Dehradun ranked fifth amongst the top favoured destinations in India by NRIs where Bangalore claimed the first spot.

Realty Map of Dehradun

The city being the capital of Uttrakhand is spread across an area of 3,088 sq. kms. with a population of almost 1.7 million. Apart from this population, there is a strong domestic and international footfall that takes place across Uttrakhand where Dehradun picks up the limelight. According to a data from Ministry of Tourism, total of approx. 2.5 crore Indian tourists visited Uttrakhand in 2015 coupled with over 1 lakh foreign travellers. This footfall has been increasing on an annual basis, highlighting the development of the state and its major cities, where Dehradun is most prominent. These increasing numbers have pushed the developers to come out with residential, commercial and mixed-land use projects across the city. “Hospitality, retail and realty sector and industries gain the most when a region offers a wide variety of options for a tourist. Developed retail and hospitality sites in such regions allows greater footfall that can also enhance the demand for real estate in the long run. Tourism in India has been a strong converter for the realty sector as well where Tier 2 regions gain the most”, avers Prithvi Raj Kasana, MD, Morpheus Group.

Speaking about the popular micro pockets of Dehradun, there are a total of 11 favoured regions by the developers where construction is taking place at a rapid pace and several projects have been already delivered. Descending on the basis of demand of the regions, chart begins with Sahastradhara, followed by Rajpur Road, GMS Road, Mussoorie Road, Haridwar-Dehradun Road, Dalanwala, Nehrugram, Canal Road, Race Course, Jakhan and Chakrata Road.

S. NO.

REGION

CIRCLE RATES(Rs. per sq. mtr.)

AVG. PRICE(Rs.)

UNIT SIZE RANGE(sq. ft.)

1

Sahastradhara

28,200

35 Lakh

550-3,550

2

Rajpur Road

65,000

55 Lakh

475-3,019

3

GMS Road

36,000

40 Lakh

1,120-2,883

4

Mussoorie Road

38,100

40 Lakh

413-3,250

5

Haridwar-Dehradun Road

38,100

40 Lakh

625-3,200

6

Dalanwala

38,100

40 Lakh

631-5,712

7

Nehrugram

28,000

35 Lakh

950-5,100

8

Canal Road

65,000

55 Lakh

1,020-4,030

9

Race Course

38,100

45 Lakh

850-2,620

10

Jakhan

28,000

40 Lakh

970-3,143

11

Chakrata Road

28,200

35 Lakh

845-1,555

“Real estate map of Dehradun offers a wide range of unit sizes available at highly affordable prices which makes it an even better deal for people opting for second property options. Even the property prices observe good appreciation on an annual basis with infrastructure witnessing a major revamp. Due to the residential sales rising in the regions, demand for commercial setups has lead to the supply of retail and office spaces”, says Abhishek Bansal, Executive Director, Pacific Group.

At present, Dehradun offers a total of 157 residential and 6 commercial projects that are in different stages of construction with several projects ready to move in. Amongst the big names, Pacific Group, Supertech, ATS Group, Pushpanjali Builders, Unitech Group, Pearls Infrastructure, Parsvanath, Sikka and others have projects in place.

Demand for housing in Dehradun is a lot different from that of NCR. Obvious reason being, located at hilltop, it doesn’t allow the developers to construct high rises. As per the present building by-laws in the city, a tower can have a maximum of G+9 floors. Thus, the concept of independent or villa living is predominant in Dehradun. Even the current inventory of Dehradun offer more villas than apartments. Highlighting the same, Kushagr Ansal, Director of Ansal Housing explains, “The criteria for development on hilltops is way different from the plains due to the different building by-laws present in those regions and thus, the concept and demand is also different. Duplex and Villa living is more common than apartment style living and thus, projects offered according to the former concept is more prominent in such regions than the latter.”

Infrastructure In Focus

Dehradun has been quite active in terms of developing and upgrading the infrastructure along the micro regions. Speaking about the developed infrastructure, there is a strong presence of hospitality, retail, health, educational institutes, IT parks, administrative setups and strong road and aerial connectivity. For instance, Doon University, Indian Military Academy, IIAE aeronautical college, Forest Research Institute and Institute of Petroleum comprise amongst the educational strongholds in the region. FMCG industry has been the core behind Dehradun’s development with the presence of big brands such as HUL, ITC, PepsiCo India Holdings Pvt. Ltd. and inclusion of Patanjali in 2006. Furthermore, Jolly Grant Airport has been upgraded and shares a strategic connectivity with Dehradun, Hrishikesh and Haridwar, falling within a distance of 25 Kms from each. Also, the existing Helipad in Sahastradhara is under plans to be upgraded into an Airport that will directly cater the city. Dehradun is located nearly 45 Kms from NH 58 and has another National Highway- NH 307 which links it with Chhutmalpur in Uttar Pradesh on NH 344. Also, there are 2 state highways connecting Dehradun with Shimla and Saharanpur via SH 2 and SH 57 respectively. “Long run acceptance and performance of any region is directly dependent on its infrastructure. Tier 2 cities have been well planned and connected with Tier 1 cities, where Uttrakhand and UP presents a classic case of infrastructure driven realty. With so many infra projects in pipeline, National and State Highways offering superior road network, the region’s realty sector will shape up even better few years down the line”, concludes Rakesh Yadav, Chairman, Antriksh India Group.