May 28, 2021 - CREDAI Bengal Homes

May 28, 2021

CREDAI Bengal Daily News Update | 28.05.21

 Newspaper/Online BW Business World ( online )
 Date             May 28, 2021
 Link             http://www.businessworld.in/article/Home-Loan-Tenure-Of-Up-To-10-Years-
                       Most-Preferred-Survey/27-05-2021-391113/

   Home Loan Tenure Of Up To 10 Years Most Preferred: Survey

Magicbricks.com is owned by Magicbricks Realty Services, which is a subsidiary of Times

Internet, the digital arm of the Times of India Group.

Real estate portal Magicbricks on Wednesday released its survey report on home loans,
suggesting that a repayment period of up to 10 years is most preferred among consumers.

The sample size of the survey is 500, it said.

'The period of up to 10 years is the most preferred duration of home buyers with 26 per cent of
the respondents giving the nod for it. It was followed by 10-15 years (25 per cent) and 15-20
years (23 per cent) as the next most preferred tenures for home loans,' Magicbricks said in a
statement.

About 16 per cent of respondents said that they would like to take a loan for more than 25 years,
while only 10 per cent preferred repayment tenure of 20-25 years.

Last year, online property classifieds Magicbricks entered into home loan services and had tied
up with leading banks, aiming to offer homebuyers a plethora of integrated services from the
discovery to the transaction phase.

'With average home loan interest rates hovering between 6.65-6.90 per cent, borrowers now
want to repay their mortgages as fast as possible,' Magicbricks Chief Executive Officer Sudhir
Pai said on the survey report.

Magicbricks has monthly traffic exceeding 20 million visits and over 1.4 million property
listings, the statement said.

Magicbricks.com is owned by Magicbricks Realty Services, which is a subsidiary of Times
Internet, the digital arm of the Times of India Group.

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Newspaper/Online Live Mint ( online )
 Date             May 27, 2021
 Link             https://www.livemint.com/news/india/residential-realty-demand-to-see-5-10-
                        rise-in-fy22-crisil-11622109059745.html

      Residential realty demand to see 5-10% rise in FY22: Crisil

According to Crisil, absolute demand for residential real estate will catch up with pre-
pandemic levels only after FY23.
Improved affordability and continuing work-from-home are expected to drive demand
for residences
Improved affordability and continuing work-from-home will increase demand for residences by
an average of 5-10% (in terms of area) year-on-year in India’s top six cities in this financial
year, Crisil in a report said.
According to the rating agency, absolute demand will catch up with pre-pandemic levels only
after FY23. The demand in the first half of this fiscal will be impacted by the second wave of
the pandemic. Healthy recovery is expected in the second half, much like the previous fiscal,
and established developers with well-managed balance sheets would grow faster than the
industry, consolidate their presence, and sustain their credit profiles.
____________________________________________________________________

Newspaper/Online Financial Express ( online )
 Date             May 28, 2021
 Link             https://www.financialexpress.com/industry/housing-demand-to-reach-pre-
                      covid-levels-only-after-fy23-crisil/2260284/

 Housing demand to reach pre-Covid levels only after FY23: Crisil
“However, absolute demand will catch up with pre-pandemic levels only after fiscal 2023.
The demand in the first half of this fiscal (FY22) will be impacted by the second wave of
the pandemic. Nevertheless, a healthy recovery is expected in the second half, much like
the previous fiscal,” it projected.

Crisil on Tuesday said the recovery in the residential real estate to pre-Covid levels of 180-185
million sq ft (MSF) is expected only after FY23. However, the credit rating agency noted that
on an annual basis housing demand is expected to grow 5-10% year-on-year (y-o-y) in the
current fiscal.
Improved affordability and work from home will increase demand for houses by an average of
5-10% (in terms of area) y-o-y in India’s top six cities in FY22. But two of these — Mumbai
and Pune — could see demand contracting because of a higher base of last fiscal, while the rest
should see a rebound on a low base, Crisil said in a report.
_____________________________________________________________________________

Newspaper/Online Money Control ( online )
 Date             May 28, 2021
 Link             https://www.moneycontrol.com/news/business/real-estate/covid-19-second-
                      wave-housing-sales-down-60-in-april-may-2021-6947891.html

  COVID-19 second wave: Housing sales down 60% in April-May
                           2021

Fresh project launches also dropped by 53% in the month of April; Average prices also
corrected MoM by 7% in NCR and 4% each in MMR and Pune.

The second wave of the COVID-19 pandemic has battered the real estate sector with housing
sales declining by 60% and new launches dropping by 53% in the month of April, according to
a report by Edelweiss Research.
Demand dropped 60% MoM in April 2021 as the country battled the second wave of the
pandemic but was up 92% YoY, mainly due to the low base effect (stringent lockdown in April
2020).

The southern markets of Hyderabad saw a dip of 49% MoM and Bengaluru witnessed a decline
of 50% MoM. Demand in MMR and Pune was down by 64% YoY and 65% YoY, respectively
as the special stamp duty rate cut window in Maharashtra ended.

Project launches drop by 53% in April 2021
New launches were subdued for the fifth consecutive month. There was a drop in the number of
fresh launches by 53% MoM but an increase by 110% YoY, as per the report.

Unsold inventory continues to correct
Unsold inventory continued to correct and was down by 13% YoY with inventory months
decreasing to 29 from 33 in April 2020, the report stated.

With demand outstripping supply over the past year, unsold inventory decreased 13% YoY in
India in Apr-21. Pune and MMR witnessed the maximum rate of correction in inventory levels
at 22% YoY and 18% YoY respectively.

With trailing 12-months’ absorption up 13% YoY, inventory months pan-India reduced to 29
months (from 33 months in Apr-20). Pune and Hyderabad remain the best markets with 15 and
20 months of inventory, respectively, followed by MMR, Chennai and Bengaluru at 28–33
months.

NCR remains the worst real estate market with 65 months of inventory, the report said.

With regard to share in overall sales, MMR and Pune lost 3–4% each while Bengaluru and
Hyderabad gained 3–4% each in April 2021. Chennai and Kolkata gained a marginal 1% share
each, the report said.

Average prices rose 27% YoY in NCR, followed by 18% YoY in Kolkata and 10% YoY in
MMR, but remained range-bound in other cities. However, average prices corrected MoM, by
7% in NCR and 4% each in MMR and Pune, but remained broadly stable in other cities, the
report said.

Gradual improvement in the market expected
The pandemic may have battered the real estate market in the first half of FY21, but the pace of
recovery in the second half of the fiscal, and more so in the last quarter, makes us believe that
the gradual improvement would sustain into FY22, the report said.

Decadal-low interest rates, centre and state government incentives, increase in safe harbour
limit, extension of tax incentives for affordable housing, and Covid-induced factors (need for
larger homes due to WFH, for instance) should help FY22 go down as a year of growth for
companies in our coverage, the second wave of the pandemic notwithstanding.

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Newspaper/Online Money Control ( online )
 Date             May 27, 2021
 Link             https://www.moneycontrol.com/news/business/stimulus-quick-relief-for-
                      hospitality-msme-realty-and-construction-likely-6950041.html

        Stimulus, quick relief for hospitality, MSME, realty and
                           construction likely

The government is considering steps to revive the worst-hit sectors of the economy with
direct, immediate measures, unlike last year’s strategy that had many long-term policy
announcements and reforms, sources say.

The government is planning a stimulus package and direct, immediate relief for sectors such as
hospitality and Medium, Small and Micro Enterprises (MSME), which are India’s biggest
employers and have been battered by COVID-19, sources familiar with official deliberations
said.

Discussions about the package are still at an early stage but this time, the government is

unlikely to go for long-term policy announcements a source said.

Initial discussions suggest the stimulus package may have three elements.

First, Immediate relief to the most affected sectors such as hospitality, MSME, real estate and

construction. Sources said the government think tank NITI Aayog is in favour of direct

stimulus like wage support, easy credit and tax relief to mid-and small-size hoteliers.

The second element could be relaunching of some schemes that were implemented in the first

wave of the pandemic. Aatm Nirbhar Bharat Rozgar Yojna may be relaunched with some

changes. Under the scheme, establishments going for new hiring were given special EPF
subsidy from the central government.

Emergency Credit Line Guarantee Scheme (ECLGS) for MSMEs may also be relaunched with

some changes in conditions, according to sources. Under this scheme, MSMEs get loans

without collaterals. Pradhan Mantri Gareeb Kalyan Yojna, under which 5 kg ration is being

given free of cost, may be extended.

Third feature of the proposed relief package could be special focus on unorganised sector. The

government may launch a dedicated portal to give direct support to labourers in the organized

sector as and when necessary.

NITI Aayog and ministries of finance, commerce and industries are holding discussions with

stakeholders for the proposed package, and trying to assess the loss incurred by the identified

sectors in the second wave of COVID-19. Some announcements relating to the stimulus are

expected when states start unwinding restrictions imposed during the second wave of the

pandemic.

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Newspaper/Online ET Realty ( online )
 Date             May 27, 2021
 Link             https://realty.economictimes.indiatimes.com/news/industry/greater-noida-
                      development-body-starts-new-industrial-plot-scheme/82995705

Greater Noida development body starts new industrial plot scheme
While online applications for the scheme can be made on www.niveshmitra.up.nic.in till
June 30, allotment will commence from July 1 through both draw of lots and interviews
for plots over 4,000 sqm.

With a view to drive investments, the Greater Noida Authority has launched an industrial plot
scheme — some 41 plots ranging from 905 to 4061 sqm in sectors Ecotech 10 and 11.

While online applications for the scheme can be made on www.niveshmitra.up.nic.in till June
30, allotment will commence from July 1 through both draw of lots and interviews for plots
over 4,000 sqm. GNIDA expects investments worth Rs 93 crore from these allotments, which
comprise           a           total        area         of         83,000             sqm.

“We have come out with an industrial plot scheme where 38 plots ranging from 904 to 4,061
sqm will be available in sectors Ecotech 10 and 11 of GNIDA. In addition to these, there are
three plots above 4,000 sqm in these two sectors,” said Deep Chandra, additional CEO of the
Greater                                   Noida                                   Authority.

While GNIDA is inviting investments under the ‘ease of doing business model’ of the state
government, it aims to encourage more international companies to open units in the area.
“Many electronics companies from Japan, Korea and Taiwan have shown interest in starting
their units in Greater Noida. Therefore, even in Covid times, we have floated the industrial plot
scheme to encourage more investments,” said Narendra Bhoohsan, CEO of GNIDA.

Moreover, the Greater Noida Authority will soon introduce new institutional, commercial,
information technology, builder and residential group housing schemes, said Bhooshan.

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