Monday 25 September 2017

Lending rate cuts key to economic recovery: Report

The report said that structural reforms take long time of 5-10 years to reflect in growth rate or reviving the stranded projects



NEW DELHI: Lending rate cutsare the only viable way to economic recovery as they would perk up demand and push investments, a report has said.

The report said that structural reforms take long time of 5-10 years to reflect in growth rate or reviving the stranded projects.

In a research note, BofAMLsaid, "Lending rate cuts hold the key to recovery. They would push up demand, put idle factories to work, and spark off investment when capacity is exhausted, in our view."

The report further said that with 2017-18 likely to see sufficient USD 35 billion of reserve money, lending rates should come off 25 bps (0.25 percentage point) before the October-March busy season sets in (and 50 bps by September 2018).

Lending rate cuts are the only viable route to recovery rather than structural reforms which can take a long time of around 5-10 years to reflect in growth numbers, it adds.

"We never shared the market enthusiasm for reforms (as it can take 5-10 years to show up in growth) or clearing 'stalled' projects (given idle capacity)," the report said.

According to BofAML, growth is stuck at an "anaemic 5 per cent (in old GDP series), well below our estimated 7 per cent potential", as high real lending rates are constricting domestic demand in a long global recession.

Regarding the Reserve Bank's monetary policy stance, the report said that the central bank is expected to key policy rates by 25 bps December 6 policy review meet as inflationis expected to normalise and stay well within the RBI's 2-6 per cent range.

The next policy review meet is scheduled on October 3-4.

RBI reduced the repo rate by 0.25 per cent to 6 per cent in August, citing reduction in inflation risks. The rate cut was the first in 10 months and brought policy rates to a near 7-year low.


Tuesday 19 September 2017

CREDAI Maharashtra organizes study tour for realtors

The study tour helped the members in learning new way of planning which begins from the root level, duties of supervisors at the construction site



PUNE: In order to study new technology, mass conceptual housing and affordable housing projects, 161 delegates from 19 Cities of Maharashtra visited NCR Delhi recently, informed Shantilal Kataria, President- CREDAIMaharashtra.


The visit was planned at the construction sites of Ashiyana Group known for their project designed especially for senior citizens called Comfort Homes which not only takes care of physical comforts of the senior citizens but their emotional needs as well, Bharat City known for its conceptual housing, Bharat PreFab factorywhich is ideal for mass conceptual housing and thus making it most cost effective, and the high end projects of ATS and Affordable housing projects of Signature Global of Agarwal brothers.


“The study tours helps our members to know more about happenings in real estate sector, new inventions & technology, trending projects, creative executions etc Such tours further help them to refurbish their knowledge and apply the same in their own business”, said Kataria.


The study tour helped the members in learning new way of planning which begins from the root level, duties of supervisors at the construction site, the innovative way of store management, arrangement of training at site etc. The members, esp from Tier II and Tier III cities, also learned how the use of Mivan technology in mass affordable housing segment that can control the cost of the project.


It was also observed that the developers at Delhi do not only sale the apartments but also maintain them for year through the contract with Residential Welfare Societies. It is seen that these welfare societies maintain the buildings more professionally due to which the buildings which are 25 to 30 years old are still fresh.


Vishal Gupta-Owner of Asiyana Group,GetamberAnand- Owner of ATS, S.P.SING-owner of Bharat Prefeb factory, Pradeep Agarwal from Signature Global offered full support to the members in explaining and introducing to new technologies.



Thursday 14 September 2017

5 key takeaways from 9th Annual National Association of Realtors India Convention

The focus at the convention was on the three tsunamis that have hit the real estate sector in the past one year namely demonetization, RERA and GST. Here are 5 takeaways from the convention.




Ashwini Priolker
CNBC-TV18
It was a buzzing morning at the 9th Annual National Association of Realtors (NAR) - India convention in Mumbai. More than 1,200 realtors and developers across India were present, belying the general belief that the residential real estate market is down in doldrums! The focus at the convention was on the three tsunamis that have hit the real estate sector in the past one year namely demonetization, RERA and GST. Here are 5 takeaways from the convention.
1) RERA Harsh on Brokers: No surprise that the Real Estate Regulatory Authority (RERA) was the main topic of discussion at the conclave. The realty broker community did feel that the RERA rules were unfair to them. "The penalty for the brokers and developers is the same. This is too harsh especially when the broker manages to get only 2 percent commission. Even the registration fee is very high", said Ravi Verma, Chairman NAR India. This was countered by industry veteran Anuj Puri, Chairman, Anarock Property Consultants, who has recently moved into residential business in India. He felt that RERA has been able to weed out unscrupulous fly-by-night brokers, leaving more room for serious professionals. “For the very first time brokers have been recognized as an industry,” said, Puri.
2) Dilution of RERA Rules by States: Industry leaders made no bones that RERA is simply not the last mile solution to all the problems plaguing the sector. In a strongly worded statement Nirnajan Hirnandani, MD, Hiranandani Group, said “RERA is a good law for all the future projects. But the problem related to ongoing projects is deep rooted, like cancer. These cannot be solved only with RERA. We need to find other solutions like alternative funding mechanisms and these projects to be taken over to be completed, with government intervention."
3) Impact of GST on Homebuyers: The implementation of Goods and Services Tax has left Real Estate Industry with more questions than answers. The tax neutrality of GST on prices of homes was challenged. “GST in its current form cannot be tax neutral especially in bigger cities like Mumbai where the prices are more than Rs 10,000 per sq ft,” says Boman Irani, Chairman & CEO, Rustomjee Group. So, buyers will have to be prepared to shell out more in bigger cities was the verdict.
4) Return of the Homebuyers: Despite several setbacks, first-time home buyers seem to be coming back especially for well located, well priced projects. According to the Anarock Chairman Anuj Puri, the sales in the past six consecutive quarters have been more than the launches across India. This clearly indicates that the launches have come down drastically, and unsold inventory is steadily getting absorbed. On home prices correcting further, the consensus was that most markets across India have already witnessed a 5-25 percent correction. The builders said the government was itself buying land at way above the market price for infrastructure in different locations, leaving little room for land prices to moderate. In fact, the circle rates do not even allow for property prices to fall below a certain point, added the panelists.
5) Consolidation on Cards: There was complete unanimity on the topic of consolidation. "Landowners who earlier had ambitions of becoming developers cannot do so, after RERA and now only the serious players will survive," added Kushroo Jijina, CEO, Piramal Finance. PE investments in the realty sector have touched Rs 15,000 crore amount in first six months of 2017, and a large part of these inflows have been to bail out cash strapped builders.




Monday 4 September 2017

9th NAR-INDIA Annual Convention

Dear Realtors,
We are EXCITED to announce The TITLE SPONSOR for 9th NAR-INDIA Annual Convention



Please welcome India's topmost Real Estate Brand - HIRANANDANI as the Title Sponsor

Hiranandani present 9th NAR-INDIA ANNUAL CONVENTION 2017

On this special occasion, we have opened up few Delegate Registration at a very Special Price for you
₹ 11,000 for NAR-INDIA Members
₹ 12,000 for Non NAR-INDIA Members
This Special Offer is only for the next TWO DAYS

For Registering and payments, please call
Raju Achpilia on +919820137078
Ritesh Gupta on +919820687275

Check out all about the Convention at http://narindiaconvention.com/