(CREDAI-MCHI, NATIONAL, MMR)
06th July 20
Realty hot spot series: Why Malad-Kandivali is a popular residential locality in Mumbai
In this week's Realty Hot Spot series we take a look at Mumbai's Malad-Kandivali. This is a developed residential area with good connectivity, social infra and employment hubs. The locality is well-connected through Western Express Highway, SV Road, Suburban Railways and Upcoming Metro Line 7.
The locality is 14 kms away from the airport, 1 km from the nearest railway station and 2 kms from the Western Express Highway (WEH).
Market hits day's high; realty shares in demand
Domestic benchmarks hit fresh intraday high in morning trade, extended gains for the fourth straight session. Positive Asian cues supported the gains. At 10:23 IST, the barometer index, the S&P BSE Sensex, was up 387.92 points or 1.08% at 36,409.34. The Nifty 50 index added 127.95 points or 1.21% at 10,735.30.
In the broader market, the S&P BSE Mid-Cap index rose 0.82%. The S&P BSE Small-Cap index gained 0.93%. Both these indices trailed the benchmark Sensex.
Luxury apartments on the block in Mumbai’s upscale localities are seeing a steady stream of inquiries but few takers, as prospective buyers are seeking deep discounts that sellers are unwilling to offer. According to property brokers, prices have not softened to buyers’ expectations, but deals are expected in the coming months in Lower Parel and Worli, which are among the most expensive in the country.
RERA authorities to ask RBI for one-time debt recast in realty to help developers
Real estate regulators will write within a week to the RBI, seeking one-time debt restructuring for the industry to help developers overcome the liquidity issues, Uttar Pradesh RERA Chairman Rajive Kumar recently said.
Industry bodies CREDAI and Naredco have been demanding one time restructuring of developers outstanding loans with financial institutions to prevent bad loans and making them eligible for fresh borrowings.
Addressing a webinar on Saturday, he said the decision to extend timelines for completion of projects by six months has been taken for the benefits of homebuyers and ensure customers get possessions of their flats.
Be greedy when others are fearful and fearful when others are greedy.” The sage of Omaha, Warren Buffet said this in one of his many letters to investors and has since put it to great use buying blue chip companies in periods of distress like Goldman Sachs, Mars, Bank of America, Dow Chemical during the 2008 crisis. Now, Kunal Moktan, Co-Founder and CEO, PropShare Capital (propertyshare.in), explains how you as an investor reap risk adjusted returns from property market during COVID-19:-
Kunal Moktan says, "In investing, the highest returns are made when investing in periods of fear and uncertainty when the wider market misprices securities of Grade A assets. During my tenure at Blackstone Real Estate Fund, we used the 2008 crisis to buy some of the highest quality assets in Bangalore, Pune and Mumbai at double-digit yields leading to significant gains when they were later listed in the REIT. COVID-19 is another such opportunity to use a temporary dislocation in the markets to reap higher risk adjusted returns in Grade A commercial real estate. A crisis of this proportion affects asset owners in three ways."
The Indian Express
Orissa High Court sets deadline for real estate tribunal
CUTTACK: The Orissa High Court has warned to initiate suo motu contempt proceedings against the State Government if it fails to make the Odisha Real Estate Appellate Tribunal (OREAT) functional within 15 days.
The warning came along with a set of directions in a common judgment on three separate petitions, which had sought the Court’s intervention against nonfunctioning of OREAT which was set up on February 2, 2019
Square Feat India
Registration revenue in Mumbai touch Rs 179 Cr mark highest in 3 months
Registration revenue is one of the biggest source for the state government’s treasury. However, during the lockdown, the numbers had dwindled drastically.
Finally it’s coming on track with figures showing a steady increase. In the 30 days of June, Mumbai saw 13,652 documents being registered.
Square Feat India
In absence of agreement, during cancellation, builder to refund booking amount
Times of India
HDFC Bank has reported a loan growth rate of 21% amid the lockdown for the quarter ended June 30. The bank’s loan book expanded to Rs 10 lakh crore at the end of the quarter from Rs 8.3 lakh crore in the year-ago period. Deposits grew 25% in April-June 2020 to touch Rs 11.9 lakh crore from Rs 9.5 lakh crore in the previous year. In absolute terms, the bank has managed to grow its loans by Rs 10,800 crore during the lockdown quarter, while its deposits rose by Rs 42,000 crore. The higher increase in deposits was an outcome of the flight to safety as the country’s largest private bank was seen as a safe haven at a time when some private lenders saw deposits being pulled out.
The growth rate was higher than the same period in the previous fiscal, when HDFC Bank had a smaller balance sheet. In the first quarter of FY20, the private bank had reported an 18.5% increase in total deposits to Rs 9.5 lakh crore, while total advances had risen by 17.1% to Rs 8.3 lakh crore.
Financial Express (4th July)
RBI has its hands full with Urban Cooperative Banks now unambiguously its responsibility
Last Wednesday (24 June 2020), government announced its decision to bring Urban Co-operative Banks (UCBs) and Multi-State Co-operative Banks totalling 1,482 and 58 respectively as on date, under the supervisory power of the Reserve Bank of India (RBI). This decision, in accordance with an announcement in the Budget speech earlier this year, ‘will give an assurance to more than 8.6 crore depositors in these banks that their money amounting to Rs 4.84 lakh crore will stay safe.’
Wonderful! Except that there’s one fly in the ointment! Rather, two! UCBs were always under RBI’s supervisory control and that has not prevented more than one UCB going up. Two, RBI’s supervisory track record has often fallen short in recent times
The Indian Express (3rd July)
HDFC Chairman Deepak Parekh has urged the Reserve Bank of India (RBI) to permit a one-time restructuring for real estate loans, stating that “a pragmatic approach is needed to resolve the financial stress in the real estate sector, without bail-out packages”.
The country is just beginning to recover from one of the longest and strictest lockdowns across major economies, he said. “India’s sheer numbers means domestic demand has to revive. The challenges are daunting, but I remain confident that India will display its resilience,” Parekh said in his letter to HDFC shareholders. He said “the saga of the highest court of law questioning RBI on the moratorium was indeed unfortunate”.
LIVE MINT(3rd July)
Indiabulls Housing Finance Ltd (IBHFL) has raised ₹2,200 crore from Oaktree Capital by pledging a part of its real estate loans to the global stressed assets investor, two people directly aware of the transaction said, requesting anonymity.
The transaction is expected to breathe a fresh lease of life into Indiabulls Housing, which has been in talks with investors for several months. The fresh funds are expected to be used to meet payment obligations.
The Financial Express
Real estate sector braces for turnaround
Follow Us on: