Supertech shared “The company has tied up with investors to accelerate construction… The company has in hand investment offers of approximately Rs 300 crore which would help them to augment construction and delivery,”
NEW DELHI: On Wednesday, Realty firm Supertech shared that it is planning to raise Rs. 300 cores to speed up construction activities of its ongoing projects across Delhi NCR.
Supertech mentioned in a statement, it has resumed all the construction activities after the orders of NCLAT (National Company Law Appellate Tribunal), orders came out on the 10th of June and allowed the company to continue project execution at all projects.
Earlier, NCLAT ordered the commencement of insolvency proceedings in only one of the housing projects of realty firm Supertech and not the entire company, and directed constitution of the Committee of Creditors (COC) for the said project only.
Members of the NCLAT bench limited the Corporate Insolvency Resolution Process (CIRP) to only ‘Eco Village II’ projects located in Greater Noida (west).
Chairman of Supertech R K Arora, informed that the company would comply with the orders of the NCLAT by delivering homes to allottees and clearing the debt.
Arora added the construction works which were on hold due to the uncertainty after the previous NCLT Order, now started.
He also shared that till now, 1,156 laborers are working on all 16 projects and the company is concentrating on the flats which can be delivered within the next three months.
The number of dangerous buildings is still growing, GMC identified 122 buildings this year. These buildings include multi-story towers and government buildings.
Ghaziabad Municipal Corporation has issued notices to owners of these dangerous buildings multiple times, but still no action has been taken by residents. Ghaziabad has a history of building collapse incidents, especially in the rainy season.
The GMC identified 26 dangerous buildings in 2018 and in 2020 this number went up to 102.
A GMC official informed “The union ministry of housing and urban affairs from time to time seeks details of the dangerous buildings in the city for which the corporation conducts a survey. In this year’s survey, we found 122 dangerous buildings in the city, which are unfit for human inhabitation.”
Official added “These include 15 colonies under Ghaziabad Development Authority (GDA) and electric substations, but these are mostly private buildings, while some are high rise buildings.”
The official further added “But all the GMC can do is issue notices or bring it to the notice of the higher-ups. Every time we insist on evacuation, we are met with opposition from the residents. So, the list of such buildings keeps growing every year,”
A resident of Mandakini Tower, Amit Kumar shared “Ours is a nine-storey building, which since 2018 has been constantly among the city’s most dangerous buildings. As of now, 240 people live here.”
“The GDA is to blame for the pathetic condition of Mandakini Towers since it developed the colony but when it came to maintenance, it passed the buck to the RWA,” he added.
Residents are complaining that they have to register afresh for accessing the portal because their old 15-digit UPIC (unique property identification code) is not working.
NEW DELHI: There are only two weeks left for filing the advance property tax online, residents are facing issues while depositing it, even after making multiple attempts.
Residents also reported that their receipts of last year’s transactions are also unavailable online. Residents question the purpose of spending so much money on developing the portal.
Residents who managed to get into the portal after fresh registration complained, the system was not working well, many residents shared that they hadn’t even received their UPIC card. A resident commented “While the corporation motivates residents so much for filing the tax online, their own system is not operating properly, which is why they are now holding camps. This is dissuading those who want to use the facility from home.”
Amira Gore, a resident shared “The system was hanging repeatedly, and I didn’t get the OTP. I made another attempt this Wednesday and, thankfully, succeeded.”
To solve this UPIC issue, the Municipal Corporation of Delhi has announced that a 9-digit number will be allocated to each property in the future. An official informed “It has been observed that the users/taxpayers are creating multiple UPIC IDS for the same property while filing details online. This usually happens when a taxpayer forgets the first ID and applies for a fresh one. Now we will issue the nine-digit number for each property, then the UPIC card.”
A civil official claimed “With a few days left, the rush has increased online, which may have led to slow functioning. Things have improved this year and the majority of people are not facing any problems.”
Redfin announced that it will cut 470 jobs and compass decided to lay off 450 employees.
BENGALURU: Real estate brokers Redfin Corp and Compass Inc made an announcement on Tuesday saying that they have decided to cut jobs as rising mortgage rates and the prospect of aggressive rate hikes are affecting the demand in the real estate market.
Compass Inc decided that it will lay off 450 employees,10% of its current workforce, and Redfin will cut about 470 jobs, 6% of its total workforce.
Glenn Kelman, Redfin Chief Executive Officer mentioned in a blog “With May (homebuying) demand 17% below expectations, we don’t have enough work for our agents and support staff, and fewer sales leave us with less money for headquarters projects,”
Redfin said it is going to face years of lower home sales and the layoffs are a result of decline in revenues.
It’s a decade-long boom in housing prices from the United States to Europe. Asia is currently facing its first real test as loan costs rise and high inflation affects household budgets.
Coinbase Global Inc also said earlier on Tuesday that it will cut off 1,100 jobs. Redfin and Compass are the latest real estate brokers to cut jobs after Coinbase Global Inc.
Previous year in May, PNB Housing Finance Company promoted by Punjab National Bank was planning to raise Rs. 4,000 crore and finalize the deal with joint venture partner Carlyle Group among other investors.
NEW DELHI: On Tuesday PNB Housing Finance announced that its board has given approval for raising up to Rs 2,000 crore by issuing bonds.
The company had to cancel the deal in October because of some regulatory hurdles and legal battles. QIH (Quality Investment Holdings), a unit of Carlyle Group, holds the stake over 32 per in PNB Housing Finance.
The company made an announcement saying that it will raise money through debt instruments.
The BOD held a meeting on the 14th of June and approved the issuance of non-convertible debentures aggregating up to Rs 2,000 crore on a private placement basis, PNB Housing Finance announced in a regulatory filing.
The board members also gave the approval to ESOP III Scheme and Restricted Stock Unit (RSU) Scheme 2022 to raise funds.
It is mentioned under the ESOP scheme, “The maximum number of Options that may be issued according to the scheme shall not exceed 20,00,000 Options in number which will be convertible into an equal number of equity shares,”
The board also gave its approval to an amendment to the existing ESOP (Employee Stock Ownership Plan) 2016 to authorize the Nomination and Remuneration Committee about the vesting terms at the time of grant of options, subject to the approval of shareholders.
PNB Housing informed that under RSU, the maximum number of stock units that will be issued should not exceed the limit of 8,50,000 which will be convertible into an equal number of equity shares.
The Municipal Corporation of Gurugram had established ward-wise teams to commence the survey of unauthorized residential colonies falling under the civic body’s jurisdiction. These teams consist of junior engineers and patwaris.
Officials reported that neither the applicants nor the RWAs of these colonies are coming forward to authorize the proposed layout of these colonies. Issues arose in the survey of unauthorized colonies.
A list of 24 unauthorized colonies was sent by the department of urban local bodies so far for the survey.
Only if the colonies meet the criteria set by the Haryana government of authorizing the illegal colonies, they will be covered under the regularisation.
An official of MCG reported that “A major challenge we are facing on the ground is that the resident welfare associations or the builder who had carved out these colonies are not coming forward to finalize the layout plan to fulfill the norms set by the government. We have to have an agreement with the representatives of these colonies on the use of common patches of land, where roads or parks have to be planned to fulfill the criterion,”
According to the new norms issued by the Haryana government to regularise residential colonies, If a colony is 25% developed, 35% of the area should be used for roads, parks and other infrastructure. The road should not be less than 9 meters in width and the approach road should be 12 meters. The other categories include colonies with a built-up area between 25% and 50%, and between 51% and 75% or more than 75%. For colonies with a built-up area between 25% and 50%, roads should be 6 meters in width and the approach road should be 10 meters in width. For colonies with a built-up area between 50% and 75%, no roads in the area should be less than 6 meters in width.
Kuldeep Yadav, councilor of ward number 29 reported “The builders of these illegal colonies have already fled after setting up these colonies and selling the plots,”
The Housing Minister of Andhra Pradesh reported that 20 lakh houses are now sanctioned to Andhra Pradesh.
VISAKHAPATNAM: On Sunday, the housing minister and minister of petroleum and natural gas, urban affairs interacted with the beneficiaries of Pradhan Mantri Awas Yojna and Pradhan Mantri Ujjwala Yojana. Hardeep Singh Puri said that our Prime Minister Narendra Modi aims to provide pucca houses to every Indian.
Hardeep Singh Puri said “Andhra Pradesh stands first in the country in terms of implementation of the PMAY. If needed, more housing units will be sanctioned to Andhra Pradesh,”
Rs. 203 crores have been transferred to over 42,324 beneficiaries across Andhra Pradesh by Union Minister.
Union Minister gave the house keys to the batch of beneficiaries and distributed sanction letters to fresh beneficiaries.
Minister further added “The Pradhan Mantri Ujjwala Yojana scheme is benefitting 9 crore people. Three cylinders were given free of cost under Ujwala Yojana during the Covid-19 pandemic,”
When the minister was talking to beneficiaries, one lady reported that she does not own a ration card, minister then immediately ordered the responsible officials to sanction her one.
The mall in the Gurugram will be about 3 million sq. ft. and the mall in Goa will almost cover 5.5 lakh sq. ft.
A senior executive reported that DLF is planning to expand around 5 million sq. ft. in the upcoming years. The company decided to invest around Rs. 3,000 crore.
The company has planned a few new projects and the majority of them will be released this year. The company planned malls in Gurugram and Goa in addition to retail space in its upcoming commercial and residential projects.
Sriram Khattar, MD, rental business, DLF commented “We believe that organized retail will continue to grow faster than retail as a sector,”
“Our development program should double our retail portfolio over the next five to six years” he further added.
Goa is India’s richest state by per capita income and is one of the main destinations. “Our development in Goa will provide a high-quality retail experience to the population of Goa,” he said. He also added, DLF Mall of India, Gurugram is going to be one and a half times bigger than DLF Mall of India, Noida.
“We are introducing a new concept of high-street shopping that primarily caters to the needs of the residential population in that area and brings high-quality, organized retail to their doorstep,”
“Work on one such center has commenced in DLF 5 in Gurugram and we are planning a similar format in New Gurugram and West Delhi,” Khattar added in the conversation.
The mall in the Gurugram will be about 3 million sq. ft. and the mall in Goa will almost cover 5.5 lakh sq. ft.
Pushpa Bector, executive director, DLF Retail said “We have strong relations with tenant partners and we are confident of their support in future expansions. Apart from stand-alone retail destinations, we have created strong office amenities blocks for our office tenants,”
Bector further commented “This will make it exciting for office goers to come back to work”
The majority of developers agreed that the increased interest on home loans is to impact the cost of construction and to put pressure on the end customer even though they still fear the rate hike will make home loans costlier and will affect the residential sales.
On Wednesday, as expected the RBI increased the repo rate by 50 basis points to 4.9%. RBI made this decision to tame inflation.
Some developers fear that this decision will affect the residential sales and it’s unnecessary to mention that it will surely make the home loans costlier.
Group CEO, Housing.com, Proptiger.com, and Makaan.com Dhruv Agarwal commented on the same “The RBI move to increase the repo rate by 50 basis points to 4.90% was widely expected. We can say that we are in the midst of a rate up-cycle as inflation remains outside the comfort level of the apex bank. However, the twin rate hikes by the apex bank would ultimately result in home loan interest rates going up, thereby impacting buyer sentiment that has remained consistently strong during the record low-interest rate regime over the past year. The increased cost of borrowing would also make the construction of housing projects costlier for developers, ultimately putting price pressure on the end-user.”
RBI also announced a piece of positive news that will reduce some of the effects of rate hikes, the limit for Individual housing loans for states, and district cooperative banks by 100%.
“A two-thong approach by the RBI governor and the Government of India by means of monetary and fiscal intervention is an absolutely necessitated step to administer economic growth as well as arrest inflationary pressure. A corroborated approach is hailed by India Inc to sustain economic resiliency and boost sentiments. It is, however, evident that a home loan interest rate hike will impair the home buying rally as payout in terms of EMI is scheduled to rise. But according to me, this crater in demand sentiment is a makeshift move, as home loans are based on floating rates for a long tenure. The EMI constraint will be eased as rates are expected to normalize once the global situation is stabilized” said Dr.Niranjan Hiranandani, vice president- of NAREDCO and MD Hiranandni Group.
Akhil saraf, Founder and CEO, Reloy, a real estate digital amenities, and referral sales solutions provider believes that this rate hike is not going to impact to a large extent.
Ridhima Kansal, Director, Rosemoor, observed “Given the high inflation, the RBI had no option other than to increase policy rates to curtail the excess liquidity in the market and put a check on inflation. An increase in the repo rate will push the lending rates up and eventually hit home buyers. However, given the possibility that the interest rate goes up by 50-100 basis points, it will still remain under the comfort zone of below 8% per annum. With other factors and market conditions in favor of home buyers, sales momentum is expected to continue without any major hiccups.”
“In the backdrop of rising inflation, the RBI has implemented a rate hike by 50 basis points. This is the second consecutive rate hike after the apex bank increased the repo rate by 40 bps last month. This is a move that has come as a no-brainer since the RBI has attributed the current scenario to tensions between Russia & Ukraine along with currency depreciation & high supply shock.” she added.
The escalation in rates has definitely prompted retail borrowers to adopt a bearish outlook when it comes to borrowing as the cost of taking out loans is now noticeably higher. “However, looking at the consistent pace of improved urban demand, there is still optimism as far as uptake in commodities such as home fragrances is concerned, which are predominantly emerging as a popular product among buyers,” she further commented.
Some developers also requested the government to concentrate on the price of raw materials and reduce the hike in prices.
“The cost of key construction materials like steel and cement has gone up significantly in the last six months or so, which has pushed up construction costs substantially. However, after the policy rate hike announced by the apex bank last month, there has been some softening of prices of these commodities, including steel. We hope with today’s policy rate hike, prices would soften further, which would benefit the real estate sector as well as end-users immensely” Pankaj Pal, Group Executive Director, AIPL also added in the ongoing discussion.
A New Zillow survey reported that over 50% of U.S. home buyers accepted that the whole process of buying a house left them in tears. They cried at least once in their home buying journey.
The report came out that 65% of Z gen buyers and 61% of millennials at least cried once while purchasing a home in their own country. The whole process left them crying.
60% of the seller in the U.S. reported getting at least two offers on their homes. Almost half of the homes are sold in the U.S. in April 2022 and they went from over the asking price.
Most sellers prefer the buyer who can pay the entire amount in cash and the buyers who are planning to finance their purchase using house loans are losing out. Getting the entire amount in cash is a more attractive offer for sellers.
Zillow’s survey also mentioned that almost 30% of recent buyers lost at least once to a cash buyer.
Zillow home trends expert commented “Buying a home is not like buying any other asset; it’s deeply personal and it’s emotional,” and “When you make an offer on a home, you have likely envisioned your life there. If you lose out on that home to a stronger offer, it can feel like losing a future you have already started planning. These survey results find, even when they are ultimately successful, a large share of buyers in today’s competitive market experience heartache and stress.”
Nearly 90% of home buyers confirmed that the process of purchasing a home is stressful for them.
Zillow also shared that there are 23% fewer homes available in the market than the previous year.
These few tips can help to deal with the stressful purchase process:
1- Know what you can afford. Plan your finances and stick with the budget you have. Calculate and compare mortgages accordingly.
2- Hire a top-rated agent.
3- Make use of technology and use comparing tools. Also, use the technology for research.
