21 - 08 - 2020

21 - 08 - 2020

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CREDAI Bengal Daily News Update | 21.08.20

Buyers look to cut investment budget on apartments: Survey

The pandemic and subsequent impact on jobs and salaries have had a deep impact on the way

people want to buy homes. While 93% people are looking to buy a property, up from 67% in

April during the peak lockdown, three out of four people are also looking to cut their investment

budget by 10-30% in Bengaluru, as per a survey by Magicbricks.

Out of the total respondents seeking to decrease the budget, 56% were looking to reduce their

budget by more than 20%. At the same time, 32% indicated that they are trying to cut their

home buying budget by 11-20%. With prices not showing any significant downward trends,

these budget cuts may lead to demand for smaller configuration homes to reduce the overall

investment ticket size. While across all significant cities, 70%-80% of the respondents have

seen a cut in their budget, the maximum level of budget reduction is in Chennai, Hyderabad,

Delhi NCR and Mumbai.

"To accommodate the reduced investment ticket size, buyers across the country are exploring

innovative ways such as efficient designs and space-saving tools," said Sudhir Pai, Magicbricks

CEO.

Such efforts – seeking other ways to reduce price without compromising on comfort or space –

include picking smaller but space-efficient homes and intelligent furniture designs like

converting 2 rooms into 3 using partition and foldable or convertible sofas and beds. Over the

last few years, builders too have been reducing sizes of apartments – as customers are not keen

to pay a fortune for their houses.

As per the survey, about 60% of the respondents across 7 out of 8 cities said that they would

prefer to go with any developer who is offering economical options, regardless of the name or

reputation of the developer.

Avik Das, The Times of India/Magicbricks Bureau, Bengaluru

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Newspaper/Online The Times of India ( online )

Date August 20, 2020

Link https://content.magicbricks.com/property-news/buyers-look-to-cut-investment-

budget-on-apartments-survey/115489.html

Realty: Covid renews unexpected interest for senior living segment

According to Anarock Property Consultants, the top 12 senior living players currently

have just 55 ongoing or completed projects across the country.

The Covid-19 pandemic and subsequent lockdown has provided an unexpected boost for realty

companies in the senior living segment. This has emerged a growth segment in an otherwise

depressed residential segment. India will be home to 17.3 crore senior citizens by 2026 and

realty developers are looking at senior living with renewed interest.

Shashank Paranjape, MD, Paranjape Schemes, the oldest player in this segment with 2,000

homes in nine completed projects across Pune, Vadodara and Bengaluru under the Athashri

brand, said they have seen a 50% rise in demand and enquiries have increased. As of now senior

citizens are still under lockdown and advised to stay at home but he expects a spike in bookings

from September 2020 onwards. Even those who had booked and cancelled are re-booking and

those who were indecisive are now sure about making this move, said Paranjape.

Paranjape is building the largest senior citizen home along with a geriatric hospital in the

country at Pune that will be home to 1,200 families with investment of around Rs 1,000 crore.

The pandemic has made our senior citizens realise the true value of living here as everything

was taken care of during the pandemic from grocery to bank ATMs to medical help made

available at their doorstep and even a dedicated Covid Care Centre if anyone needed quarantine

or isolation, said Paranjape. He has seen an unusual flurry of mails from NRI children relieved

that their parents were living with us and being taken care during the pandemic.

There has been a fourfold increase in lead generation and three times jump in enquiries in the

last four to five months, said Mohit Nirula, CEO, Columbia Pacific Communities, which has

nine projects in India with 1,600 residential units. Every month since June, July and August we

have done double of the pre-Covid level business, said Nirula. They were seeing faster

Newspaper/Online Financial Express ( online )

Date August 21, 2020

Link https://www.financialexpress.com/industry/realty-covid-renews-unexpected-

interest-for-senior-living-segment/2061094/

conversion than before and sales has doubled, added Nirula. Part of the Seattle-based Columbia

Pacific Management, the company that has been building, managing and operating senior living

communities in the US, China, Canada and India, is expanding at a rapid pace.

Columbia Pacific has just got into a 50:50 JV with Pune-based real estate developer, Nyati

Group, for their foray into the senior living asset class.

Columbia Pacific said they will be pursuing similar JV models with other developers in the

country. Senior living is an underexplored subvertical but in the last four to five months, people

have realised the importance on external agency for day to day existence and how it is fraught

with risks .

Nyati has tied up with Columbia Pacific Communities for their first project in Pune at Nyati

County, a gated community project. This 3.64-lakh-sq ft dedicated senior living has 200 units in

one and two BHK formats from 736 to 1,331 sq ft and is priced between `50 lakh and `80 lakh

and expected to be at the start of the next fiscal year, said Pranav Nyati, director, Nyati Group.

The first project in Pune will see investments of around `150 crore and is awaiting approvals,

Nyati said. He plans to make similar projects across Maharashtra.

According to Anarock Property Consultants, the top 12 senior living players currently have just

55 ongoing or completed projects across the country.

Anuj Puri, chairman, Anarock Property, said due to the rise of nuclear families, increased life

expectancy and people living across geographies, ‘independent seniors’ are becoming a new

demography. “Such seniors do not settle for traditional old-age homes as they prefer and can

afford autonomy and the company of age peers in well-equipped retirement communities. A

recurring theme of this pandemic has been seniors living alone, struggling for basics, managing

without house help and anxious about existing and potential medical issues. The need for homes

in a setting where these factors are taken care of is now undeniable,” said Puri.

Covid-19 may reshape the future of the senior living segment in India, with demand for such

homes set to zoom amid the present uncertainties, added Puri.

The 55 projects are split between the top developers in this segment include Brigade

Enterprises, Paranjape Schemes, Tata Housing, Ashiana Housing, Max India’s Antara Senior

Living, Covai Care, Columbia Pacific Communities, Bahri Estates, Oasis Senior Living,

Aamoksh Oneighty, Ananya Shelters and Primus. Senior living facilities are designed with

senior-friendly amenities and medical support along with services for food, housekeeping and

24-hour assistance which makes them an attractive retirement home.

To safeguard the rights of seniors, according to Anarock, the ministry of social justice and

empowerment has defined models for operating and monitoring retirement homes. “With a

regulatory body for managing and developing such assets already in place, increased developer

activity, the institutionalisation of caregivers and specialised service providers are likely to be

the next steps and institutional capital will follow, said the Anarock report.

____________________________________________________________________________________

MahaRERA issues nearly 200 orders digitally in a month

“Over 342 cases were heard online and 187 orders issued during the period,” a

MahaRERA official said, adding that the office was at present working in a 100% digital

way.

The Maharashtra Real Estate Regulatory Authority (MahaRERA) has issued nearly 200 orders

after hearing cases through video conferencing from mid-July in the wake of the Covid-19

pandemic.

“Over 342 cases were heard online and 187 orders issued during the period,” a MahaRERA

official said, adding that the office was at present working in a 100% digital way.

MahaRERA secretary Vasant Prabhu said the response to the online hearing initiative was

encouraging from noth the developers and consumers. “The online process helps speed up the

process. We plan to continue with the online hearing process and encourage involvement of

maximum people to be part of it,” he said.

MahaRERA member Vijay Satbir Singh told TOI both the petitioners and respondents were

happy with the process while the lawyers were also finding it convenient, economic and less

time consuming.

“We can hear cases from across the state and anywhere in the country. We are constantly

improving our online facilities,” he said.

Singh had initiated the video conferencing hearing facility from the MahaRERA’s Pune office

for the bench in Mumbai last year. “We would like to continue with the arrangements even in

the post-coronavirus times,” he said.

Developers on their part saidif the technical glitches were ironed out, the online hearing would

be convenient for all stakeholders.

________________________________________________________________

Newspaper/Online ET Realty ( online )

Date August 21, 2020

Link https://realty.economictimes.indiatimes.com/news/technology/maharera-issues-

nearly-200-orders-digitally-in-a-month/77667603

Ahmedabad civic body mops up Rs 492 crore in property tax

The state government has announced 20% rebate for property tax under the Atma

Nirbhar package which is applicable for 4.75 lakh commercial properties in the city.

The extra 10% rebate for advance tax payers has yielded a good response and the fund

starved Ahmedabad Municipal Corporation (AMC) has been able to collect Rs 492 crore

as property tax from residential as well as commercial properties.

The AMC officials said that the corporation was the only corporation in the state to announce

10% rebate for advance tax payers for both commercial and residential properties. The state

government has announced 20% rebate for property tax under the Atma Nirbhar package which

is applicable for 4.75 lakh commercial properties in the city.

The officials said that the relaxation which was extended till August 31 and more and more

Newspaper/Online ET Realty ( online )

Date August 20, 2020

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

body-mops-up-rs-492-crore-in-property-tax/77651687

commercial property owners were paying their taxes. The officials said that against the property

tax of Rs 1,122 crore, for which bills have been raised by the AMC, a total of 44% tax has been

collected by the AMC.

The officials said that the eight municipal corporations had collected Rs 1,076 crore of which

the lion share was the collection by the AMC, followed by Surat Municipal Corporation.

The officials said that the AMC was the only corporation which had announced this rebate, and

hence the collection was very high. “Even in terms of percentage, Ahmedabad collection was

on the higher side,” said an AMC official.

The official said that against the property collection bills of R 946 crore for commercial

properties, the collection was Rs 426 crore, while for the residential properties, against the bill

of Rs 176 crore the collection was only Rs 66 crore.

________________________________________________________________

Andhra Pradesh to construct 30 lakh houses in 17,000 YSR colonies

According to an official release, the state government proposes to construct 30 lakh houses

in 17,000 YSR colonies across the state with 15 lakh houses each in two phases.

Andhra Pradesh Chief Minister YS Jagan Mohan Reddy on Wednesday inspected a model

house constructed by housing corporation at Tadepalli, Amaravati.

According to an official release, the state government proposes to construct 30 lakh houses in

17,000 YSR colonies across the state with 15 lakh houses each in two phases. As part of the

programme, the government would build 17,000 YSR Jagananna colonies across the state.

The state housing corporation has taken up the project by starting the construction of model

houses and the Chief Minister inspected the house having a living room, bedroom, kitchen,

bathroom, and a verandah.

Housing Minister Cherukuvada Sriranganatharaju, Ministers Kodali Venkateswara Rao,

Mekapati Gautam Reddy and Mangalagiri MLA Alla Ramakrishna Reddy were among those

who accompanied the Chief Minister.

________________________________________________________________

Newspaper/Online ET Realty ( online )

Date August 20, 2020

Link https://realty.economictimes.indiatimes.com/news/residential/andhra-pradesh-to-

construct-30-lakh-houses-in-17000-ysr-colonies/77651789

Centre asks Chandigarh administration to refix rates of flats under

housing scheme

UT adviser Manoj Parida said the project would not be abandoned and employees would

certainly get houses at concessional rates.

The Centre has now asked the UT administration to recalculate the rates of flats to be made for

different categories under the UT employees housing scheme 2008.

On the directions of the Punjab and Haryana high court, a meeting through videoconferencing

was held on Wednesday under the chairmanship of Union home secretary Ajay Kumar Bhalla,

UT adviser Manoj Parida, Chandigarh Housing Board (CHB) chairman Ajoy Kumar Sinha, and

representatives of petitioners in the court case of the UT employees housing scheme.

After deliberations to resolve the issue regarding rates of flats of the scheme, it was decided that

the calculation of rates be made again for different categories by applying various factors like

floor area ratio (FAR), collector rate, plot area etc. in consultation with the representatives of

petitioners of the UT employees housing scheme court case.

In the meeting, it was also decided that thereafter another meeting will be held again with the

Union home secretary for further directions in the matter.

UT adviser Manoj Parida said the project would not be abandoned and employees would

certainly get houses at concessional rates. He also thanked the local MP, Kirron Kher, for

pursuing the proposal with the home ministry continuously.

Last year, after the opposition by employees, the UT administration had decided to reconsider

high prices of flats under the UT employees’ self-finance housing scheme 2008. The employees

had also moved the Punjab and Haryana high court over the UT’s delay in handing over the

flats under the scheme to the employees.

The CHB had last year finalised a three-bedroom hall kitchen (BHK) flat for Rs 1.76 crore, Rs

1.35 crore for two BHK flat, Rs 99 lakh for one BHK flat and Rs 58.07 lakh for one BHK

(EWS) flat. The CHB, through a public notice, had asked all the successful applicants of the

scheme to give their consent within 21days for payment in five instalments with applicable

interest.

Thereafter, the employees had decided not to give consent to the high prices fixed by the CHB

Newspaper/Online ET Realty ( online )

Date August 20, 2020

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

chandigarh-administration-to-refix-rates-of-flats-under-housing-scheme/77652944

for the flats.

Earlier, the CHB had estimated Rs 2.08 crore for a three BHK, Rs 1.64 crore for a two BHK, Rs

1 crore for a one BHK flat and Rs 60 lakh for one BHK (EWS). As the decision was taken to

construct the flats for the UT employees on “no profit no loss” basis, the prices were calculated

to Rs 1.76 crore for three BHK, Rs 1.35 crore for two BHK, Rs 99 lakh for one BHK and Rs

58.07 lakh for one BHK (EWS).

When the scheme was announced in 2008, the rates were Rs 34.70 lakh for three BHK flat, Rs

24.30 lakh for two BHK flat, Rs 13.53 lakh for one BHK flat and Rs 5.76 lakh for one BHK

(EWS) flat. On January 2, 2019, a cabinet meeting chaired by PM Narendra Modi approved the

proposal of the housing scheme pending since 2008.

________________________________________________________________

Lucknow civic body may seize bank accounts of property tax

defaulters

According to LMC records, of 6.1 lakh properties, about 50% are tax defaulters. These

include around 19,000 commercial establishments, 324 educational institutions and 78

government buildings, while the remaining are housing units.

Going tough on tax defaulters, Lucknow Municipal Corporation (LMC) will now seize bank

accounts of property owners with dues over Rs 1 lakh.

The move comes after the civic body failed to meet the property tax collection target in

previous financial years despite offering several concessions.

According to LMC records, of 6.1 lakh properties, about 50% are tax defaulters. These include

around 19,000 commercial establishments, 324 educational institutions and 78 government

buildings, while the remaining are housing units. The civic body has not been able to achieve its

target for 12 years. As a result, total tax due on these properties is around Rs 400 crore.

LMC chief tax collection in charge Ashok Singh said, “There are many defaulters who have not

paid for years due to legal dispute. As a result, the dues mounted. Even after disputes were

resolved, there is a substantial number which is not paying. Hence, we decided to take action

against defaulters whose cases have been settled.”

LMC has been trying several measures to make people pay taxes. These include one-time

settlement scheme. It also got geographical index survey done to locate those paying

undervalued tax. The tax payment has also been made online. But the efforts did not yield the

desired results. Against the target of Rs 280 crore in 2016-17, LMC received Rs 192 crore,

which fell to Rs 178 crore in 2017-18 and Rs 174 crore in 2018-19.

________________________________________________________________

Newspaper/Online ET Realty ( online )

Date August 20, 2020

Link https://realty.economictimes.indiatimes.com/news/regulatory/lucknow-civic-body-

may-seize-bank-accounts-of-property-tax-defaulters/77651733