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Newsletter 13th July 20

DAILY NEWSLETTER

(CREDAI-MCHI, NATIONAL, MMR)

MONDAY

13TH July 20

 

CREDAI-MCHI NEWS

 

1. Mumbai Live

Headline:

State Announces Massive Relief Package For Mumbai’s Slum Rehabilitation Projects

Link:

https://www.mumbailive.com/en/infrastructure/maharashtra-housing-minister-jitendra-awhad-announced-concession-for-sra-projects-and-builders-52602

 

2 Times of India

Headline:

Bldr who fed 6 lakh needy dies of Covid

Link:

Mumbai:

A 65-year-old builder from Ghatkopar died of Covid on Saturday at Somaiya Hospital. Dinesh Shah, suspected to have contracted the virus while distributing meals during the lockdown, is survived by his wife, son, daughter-in-law, and grandson. Shah, owner of Swastik Builders, fed around 6 lakh poor people on behalf of the Lions club, said his friends.

Shah’s son Hiren said when he showed symptoms, they did an X-ray and CT scan, which detected pneumonia. He was mobilised with medicine at home. His conditioned worsened on June 25, and he was admitted to SRV Hospital in Chembur. Shah asked to be shifted to Somaiya Hospital, where is conditioned worsened further on July 9. He was given three vials of tocilizumab, said Hiren.

 

RERA

Hindustan Times

Headline:

The third anniversary of RERA: Streamlining to energize the sluggish real estate sector

Link:

https://www.orfonline.org/expert-speak/the-third-anniversary-of-rera/

Real estate sector in India is currently experiencing one of its worst phases due to the rising levels of unsold inventory and prolonged lack of confidence and transparency.  End-users’ loss of affordability as well as reduced participation of the investor on account of falling returns on the asset class and stagnant real estate prices significantly disturb the demand-supply dynamics in the housing market. Moreover, frequent contractual disputes, opaqueness, improper planning and monitoring, inordinate delays in project completion, speculative investments, supply demand mismatch in both ownership and rental housing markets, poor communication and collaboration among stakeholders, real/perceived fraud and corruption risks have made the housing market unresponsive to housing needs in India.

 

NATIONAL NEWS

Hindustan Times

Headline

India needs to rethink housing for the poor |Opinion

Link

https://www.hindustantimes.com/analysis/india-needs-to-rethink-housing-for-the-poor/story-mQBSGgAbpxy1pHdkZUu1PN.html

Last week, the Union Cabinet approved the Affordable Rental Housing Complexes (ARHCs) scheme, which aims to provide reasonably priced rental accommodation for migrant labourers. The Rs 600 crore-programme has a two-pronged roll-out plan: First, existing vacant government-funded housing complexes will be converted into ARHCs through concessional agreements for 25 years; and second, incentives will be offered to private and public entities to develop ARHCs on their vacant land for 25 years.

 

Hindustan Times

Headline:

Signature Global to invest Rs 225 cr in affordable housing project in Gurugram

Link:

https://www.hindustantimes.com/real-estate/signature-global-to-invest-rs-225-cr-in-affordable-housing-project-in-gurugram/story-tdtDHITMTB9UkULOOD0o0J.html

Realty firm Signature Global will invest Rs 225 crore over the next four years to develop a new affordable housing project in Gurugram, Haryana.

The project, comprising 852 units, will be developed under the Haryana government’s affordable housing policy.

Signature Global said in a statement that the project cost is estimated at Rs 225 crore.

The selling prices of the units range from Rs 14.46 lakh to Rs 25.80 lakh.

 

The Print 

Headline:

To be the next China, India needs a new housing plan

Link:

https://theprint.in/economy/to-be-the-next-china-india-needs-a-new-housing-plan/458694/

India quite literally needs to put a roof over its China dream.

It took a pandemic and a lockdown to highlight the precarious existence of the country’s blue-collar workers. Left without jobs and shelter, an estimated 30 million — roughly a fifth of the urban labour force — have gone back to their villages, with many completing long, hazardous journeys on foot when trains and buses shut down.

 

Economic Times

Headline:

Realty hot spot series: A developing, well-connected residential area in Pune

Link:

https://economictimes.indiatimes.com/wealth/real-estate/realty-hot-spot-series-a-developing-well-connected-residential-area-in-pune/articleshow/76906587.cms

This week in the weekly realty hot spot series, the locality in spotlight is Pashan-Sus in Pune. Here's a developing residential market, comprising several government offices and research institutes.

Buying a 1-BHK property, which equals an area of 630 sq ft, will cost you Rs 40 lakh, on average. 2-BHKs enjoy good supply in the locality. The area is also well-connected through networks such as the Pashan-Sus Road, Baner Road, Mumbai Highway (NH-48) & Shivaji Nagar Railway Station.  ..

 

Outlook Money

Headline:

Co-Living Is Fast Growing As A Sunrise Segment In Realty

Link:

https://www.outlookindia.com/outlookmoney/real-estate/co-living-is-fast-growing-as-a-sunrise-segment-in-realty-5016

India’s residential real estate sector is currently face to face with many a challenge, with the biggest being the recent turn of events due to pandemic. As a result the task of revival seems to have become even more daunting. It would also prompt developers to think of newer areas and opportunities.

The strong emergence of co-living segment gives one reason to believe the sector might be taking a different route to see better days even as the segment itself is facing the heat of the pandemic.

But that may be a temporary phenomenon. According to a recent report, the co-living segment in India is set to become a Rs. 2-trillion market by 2023 in top 9 cities as the demand for such spaces continues to grow among the country’s student and working population. Considering the robust growth prospect in the co-living segment, several companies, both well-known realty brands and start-ups, have forayed into this segment.

 

Money Control

Headline:

How these 5 Indian real estate firms are innovating amidst market decline due to COVID-19

Link:

https://yourstory.com/smbstory/covid19-real-estate-india-business-construction

When the COVID-19 pandemic started spreading in India, it exacerbated the problems plaguing the country’s real estate industry. Sharp dip in buyer interest and number of property visits and increase in the amount of unsold inventory compounded the sector’s existing issues such as rising NPAs in construction finance, high leverage and tight liquidity. Real estate companies in India have lost projects, current projects have been put on hold, labour is hard to come by, and cash flows are severely impacted.

 

Nai Duniya

Headline:

Coronavirus के कारण Real Estate सेक्टर को झटका, अप्रैल-जून में 67% घटी मकानों की बिक्री

Link:

https://www.naidunia.com/business/trade-real-estate-sector-badly-hit-due-to-coronavirus-house-sale-reduced-by-67-percent-between-june-to-april-5715369

 

Indian Express

Headline:

India’s inequitable housing system

Link:

https://www.newindianexpress.com/opinions/editorials/2020/jul/13/indias-inequitable-housing-system-2168912.html

For over a hundred days, most people stayed indoors in Mumbai—a city where an average resident has a mere eight square metres of space to call his own. For a lot of Indians, especially the urban poor, social distancing is a luxury they cannot afford. Lockdowns meant staying shut in densely populated homes and streets, in close proximity with those providing essential services at hospitals, homes and elsewhere.

The lockdown was counterproductive for the poor, who are dependent on common spaces to reduce congestion at home. It put them at greater danger. This was evident in Chennai, where the poor, working class settlements in the northern parts got hit harder than the better-developed south. From there, the virus found its way to the rest of Chennai, as the services of the north were required in the homes, offices and factories of the south.

 

Mumbai Mirror

Headline:

Housing sales decline in Mumbai, Thane by 62-66 per cent: Re

Link:

https://mumbaimirror.indiatimes.com/mumbai/other/housing-sales-decline-in-mumbai-thane-by-62-66-per-cent-report/articleshow/76908937.cms

Due to COVID-19 impact, Mumbai witnessed a 62 per cent decline in housing sales and an 85 per cent drop in new launches in the April to June
 

Economic Times

Headline:

What homebuyers seek

Link:

https://epaper.timesgroup.com/Olive/ODN/TheEconomicTimes/shared/ShowArticle.aspx?doc=ETM%2F2020%2F07%2F13&entity=Ar02000&sk=813F0202&mode=text

As the country emerges from the lockdown in phases, homebuyers in tier 1 cities have once again started searching for properties on real estate portals, says the Magicbricks Propindex report.


 

Economic Times

Headline:

Bungalows for Sale at Posh Delhi Addresses

Link:

https://epaper.timesgroup.com/Olive/ODN/TheEconomicTimes/shared/ShowArticle.aspx?doc=ETM%2F2020%2F07%2F13&entity=Ar00109&sk=C8453620&mode=text

More than two dozen houses in the heart of the national capital – New Delhi’s most exclusive address – are in the market as stressed owners and investors seek to raise funds and rebalance their real estate portfolios in the wake of Covid-19. Bungalows with price tags ranging from ₹75 crore to ₹160 crore have been listed on platforms such as Sotheby’s and local brokers, said realtors. The more expensive homes – valued at up to ₹600 crore – are expected to make their way to the list soon. These prime properties are located in the posh areas such as Lutyens Bungalow Zone, Hailey Road, Jor Bagh and Golf Links.

“We have seen an increase of over 40% in listings on our website… of high-end properties, including in and around the Lutyens Zone, during the lockdown period. Besides the listed ones, there are many in the pipeline,” said Amit Goyal, CEO of India Sotheby’s International Realty.

 

Economic Times

Headline:

How time affects your money

Link:

https://epaper.timesgroup.com/Olive/ODN/TheEconomicTimes/shared/ShowArticle.aspx?doc=ETM%2F2020%2F07%2F13&entity=Ar01401&sk=1188E0A0&mode=text

The features of some life insurance policies can take your breath away. The return of premium term plans give back the entire premium paid if the policyholder survives the full term. Just think about it. You can get an insurance cover of ₹2-3 crore for 20-30 years and if you survive the term, the company will give back every rupee you paid as premium. It’s truly a great offer.

Or is it? The money you will get back after 20-30 years would have lost a lot of its value by then. Over 25 years, even a modest 5% inflation reduces the value of ₹1 lakh to less than ₹30,000 (see graphic). If inflation is higher at 7%, the value would drop to below ₹20,000. So, while the amount may seem big today, the inflationadjusted value of what you get back will not be substantial.

 

Economic Times

Headline:

Buffett and the not so basics of investing

Link:

https://epaper.timesgroup.com/Olive/ODN/TheEconomicTimes/shared/ShowArticle.aspx?doc=ETM%2F2020%2F07%2F13&entity=Ar01901&sk=D6A0B71B&mode=text

You think returns, liquidity and volatility are the basics of investing, but according to Warren Buffett, there is something even more basic, says Dhirendra Kumar.

Returns, liquidity, volatility and predictability. In our routine way of looking at investments, that is all that matters. There’s nothing wrong with that approach and indeed, if those of us who get this much right are probably better than 99% of the investors out there. In our busy, result-oriented way of thinking, we look at only what investments are, and not for any deeper reasons of what they are.

 

RBI/BANK/NBFC

Economic Times

Headline:

Golden Non-Silence From RBI Governor

Link:

https://epaper.timesgroup.com/Olive/ODN/TheEconomicTimes/shared/ShowArticle.aspx?doc=ETM%2F2020%2F07%2F13&entity=Ar01005&sk=2569497F&mode=text

The observations made by RBI governor Shaktikanta Das at the SBI banking conclave last week were notable more for what he did not say than for what he did. What he did say is unexceptionable: Covid-19 is a severe test of the financial system’s and the economy’s resilience, the non-performing asset burden would grow through the crisis and banks would have to reinforce their capital buffers, possibly raise fresh equity as a result. He also said there was a need for a resolution corporation for financial firms that fail, one with statutory backing. All this is fine.

 

Economic Times

Headline:

Interest Rate Cut, Deposit Growth to Hurt Lenders’ Profitability in Q1

Link:

https://epaper.timesgroup.com/Olive/ODN/TheEconomicTimes/shared/ShowArticle.aspx?doc=ETM%2F2020%2F07%2F13&entity=Ar00606&sk=FCC046CC&mode=text

Mumbai: A sharp fall in lending rates due to aggressive benchmark rate cuts by the Reserve Bank of India (RBI) and faster deposit growth during the lockdown could lead to a 10-15 basis point contraction in bank margins, impacting profitability in the first quarter ended June 2020. One basis point is 0.01percentage point.

Loan growth is likely to be slower as the quarter was entirely washed out due to the nationwide lockdown. RBI data show credit growth moderated to 6.2% in the fortnight ended June 5, but deposit growth was faster at 11.3%, which means banks could not match the pace of new loans with deposits. More importantly, credit growth moderated from over 11% a year earlier.

 

Economic Times

Headline:

Economy Likely to Turn Around Much Quicker Than Expected

Link:

https://epaper.timesgroup.com/Olive/ODN/TheEconomicTimes/shared/ShowArticle.aspx?doc=ETM%2F2020%2F07%2F13&entity=Ar00502&sk=722AEC06&mode=text

As India begins to unlock its padlocked cities, albeit only in phases and ever so slowly, the aggregate damage of the shutdown doesn’t appear to be as crippling and widespread on the economy as originally estimated, veteran banker KV Kamath tells MC Govardhana Rangan & Sugata Ghosh in an interview. Jobs are returning, farm output is expanding and the extent of leverage for 80 of the 100 top companies remains rather low, says Kamath, who has just stepped down as the inaugural chair of the New Development Bank, the BRICS equivalent to the Asian Development Bank. Edited excerpts:

 

Economic Times

Headline:

ICICI Bank, HDFC Appoint Bankers for Fundraising

Link:

https://epaper.timesgroup.com/Olive/ODN/TheEconomicTimes/shared/ShowArticle.aspx?doc=ETM%2F2020%2F07%2F13&entity=Ar00605&sk=6EA5F61B&mode=text

Two of India’s biggest financial institutions — ICICI Bank and Housing Development Finance Corp — have started the process of raising a combined ₹29,000 crore in what could be one of the largest instances of capital mobilisation since the global financial crisis.

ICICI Bank, which plans to raise as much as ₹15,000 crore, has roped in Morgan Stanley and JP Morgan, besides ICICI Securities, as book runners to the share sale, people with direct knowledge of the matter told ET.

 

CITY NEWS

Mumbai Mirror

Headline:

In the western suburbs, BMC to focus on highrises

Link:

https://epaper.timesgroup.com/Olive/ODN/MumbaiMirror/shared/ShowArticle.aspx?doc=MMIR%2F2020%2F07%2F13&entity=Ar00305&sk=79FFC804&mode=text

With the Covid-19 concentrated mainly in highrises of Borivali, Dahisar, Kandivali and Malad, the additional municipal commissioner (health) Suresh Kakani has asked the municipal staff to concentrate on such buildings.

Kakani has been visiting the western suburbs for the last four weekends, spending a lot of time touring areas up to Andheri East.

Speaking to Mumbai Mirror, Kakani said, “We have analysed why Covid-19 is spreading in highrises and other buildings. We will now focus on highrises.”

 

Mumbai Mirror

Headline:

NGO calls 2018 state report misleading, wants change in DP

Link:

https://epaper.timesgroup.com/Olive/ODN/MumbaiMirror/shared/ShowArticle.aspx?doc=MMIR%2F2020%2F07%2F13&entity=Ar00406&sk=4E4110F7&mode=text

The Conservation Action Trust has approached the Bombay High Court to save a very large tract of mangrove land in Goregaon. In a public interest litigation filed in the court, the non-government environment conservation group has alleged that instead of being restored, the mangroves have now been subjected to “change of user from no development zone to a residential and special development zone”.

Headed by activist Debi Goenka, the group has sought an amendment to the Development Plan (DP) 2034 for Mumbai city. Accepted by the state government in May 2018, DP 2034 makes close to 400 acres of land “developable”. Goenka has been pursuing this issue for over two decades and made a representation on the DP as well, but to no avail.

 

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