CM YS Jagmohan Reddy ordered the housing department officials to ensure the basic infrastructure like drinking water, drainage system, and electricity is provided by the time the construction of houses is complete, without fail in all layouts.
On Monday at his Tadepalli office, CM looked over the work progress during the review meeting on construction of Jagananna Colonies and directed the officials to speak to the beneficiaries and provide electricity to all houses during the final stage of construction.
CM also instructed the officials to form alternative layouts where the work has been stopped due to court cases and other disputes. He also directed them to review the works, resolve all issues concerning the housing programme and resume works at all colonies at the earliest.
Officials had informed the CM that the construction work has been stimulated and the government has so far incurred an expenditure of 6,435 crores on construction of houses in the current fiscal, excluding APTIDCO’s expenditure.
Officials said that inspection teams are periodically visiting the layouts and monitoring the progress and quality of construction by conducting four types of evaluation tests at all places as per the instructions given by the CM and arrangements are being made to establish testing labs in all layouts, they added. Officials visited four layouts and conducted quality control tests in December.
Municipal administration and urban development minister Adimulapu Suresh, AP state housing corporation limited chairman Davuluri Dorababu, TIDCO chairman J. Prasanna Kumar, CS Dr. K.S. Jawahar Reddy, Special CS (housing department) Ajay Jain, Housing minister Jogi Ramesh, special CS (land administration) G. Sai Prasad, special CS (energy) K. Vijayanand, TIDCO MD CH Sridhar, CCLA secretary Imtiaz, APSHC MD G.Lakshmi Shah, special secretary (housing), Mohammad Deewan and other officials were present during the review meeting in Tadepalli camp office.
Tamil Nadu Government passed GO stating that Commercial and Bigger Buildings are required to follow the Energy Conservation Building Code under Energy Conservation Act, in order to reduce energy consumption.
The Bureau of Energy Efficiency (BEE) has developed an energy conservation building code for bigger and commercial buildings that consume more electricity in the state, as the government has passed a Government Order (GO) adopting the code. Buildings and apartments consuming high electricity must adhere to the energy conservation building code.
The government after careful examinations makes Tamil Nadu (TNECBC) 2022 under the Energy Conservation Act, stated in GO dated December 27.
Energy-efficient design and construction of buildings must follow energy standards set by TNECBC in order to reduce energy consumption, without affecting its functions or the welfare of the occupants of the building.
The code will be applicable to hospitality, business & education sectors, and health care, apart from shopping complexes and all government buildings.
Buildings with a connected load of 100kW and above or contract demand of 120kVA and above or a built-up area of 2,000 sq m must adhere to the code which will take into the building’s envelope, comfort system, lighting & electrical system, and renewable energy system to decide how energy efficient a building is.
It is estimated that TNECBC-compliant buildings will consume up to 50% less energy when compared to conventional buildings, while the costs of such energy-efficient construction are expected to be up to 2%.
Amid the concurrent revolution of gadgets, IT, digitalizing currency, and equipped individuals, metropolitans seem flooded with individuals connecting through the cables between the clone phone and a new one. The exchange of ideas, thoughts, and sentiments has brought people closer through the screens!
The recent transformation of technology is more gargantuan in dimension, imitating the Mumbai shores engulfed by the sea.
Several MNCs attracted to the core of Asian markets have been dumping money into the urban populous. Hence the rural population migrates to the metropolitan. One such theory by Gilbert is Polarization Theory. It explains that the third world’s urbanization process has transfigured, majorly due to the diffusion of employment opportunities and economic activities that in turn cause expansion from the centre of the metropolitans to the peripheral areas expanding the district cover of those cities. This revolution raises the demands for land cover and residential settlements.
As times change, industries adapt to digitalization. Real Estate cannot be an exception which has given roots to Proptech in the Silicon Valley of India and advanced places like Mumbai. However, what Proptech has brought to Real Estate has hugely varied for the US and India.
Future of the Real Estate Sector
Proptech refers to technology tools that the real estate industry is using to improve the way real estate is dealt with and managed. The proptech startup majorly consisting of an ecosystem of start-ups and innovative products across the commercial and residential real estate market is relatively new. It emerged as a tool of marketing in the late 1990s, with to this day having approximately 8000 proptech companies globally aligned. The US holds the lion’s share of proptech companies accounting for 59.7% of shares worldwide. While speaking continently, the Asian market holds not more than 3% of shares, with China dominating throughout with India being one of the competitor companies. One such study by FMI states that China is expected to have a CAGR of 23.7 percent while Japan is expected to have a CAGR of 26.5 percent. The same states that for the UK, the prediction of growth rate is a CAGR of 17.1 percent by 2032.
According to Grand View Research, the global real estate market size was valued at USD 3.69 trillion in 2021 and has an expectancy to expand at a compound annual growth rate of 5.2 percent between 2022 and 2030.
The 2022 Global Real Estate Council Chair states that big tech companies invest around 600 million into commercial real estate proptech.
Talking of India, considering the magnanimous potential in the sector, proptech start-ups and venture capitalists funding them have increased. Two such blatant proptech start-ups are NoBroker.com and PeProp Money.
As the recent news suggests, No Broker.com scooped up to $210 million and has neared the valuation amount of $1.01 billion. These investments are made by venture capitalists like Tiger Global, Moore Strategic Ventures, Elevation Capital, KTB, and Beenext. Thus providing for a vulture firm in the Indian Real Estate Market to rely on.
This seems to make the graph steep higher for the Indian Real Estate Market.
Advancement in Technology
From the perspective of a real estate broker, collecting raw materials, setting up meetings between the two parties, arranging for an apt deal, and analysing/predicting the demands and future aspects of the client, cause errors of function. To do away with these drawbacks, metro towns provide organized and advanced technology. The algorithm set for proptech makes it easier to analyse the particularities of the client in question setting up a stage for the showcase of appropriate choices to meet the demand. Thus predicting future demands becomes apprehensively easy based majorly on the premade choices and google sheet data. The algorithm can be altered at will by the owner of proptech according to the demographic and market run. The issues of inventory management and raw material procurement also get eliminated.
Preference Towards Mid & Premium Segment
After the pandemic, majorly people have had a more introverted lifestyle. People tend to spend more time at home, opting for work from home and young adolescents, unfortunately, have major engagement with their cell phones and gadgets. Thus customer preferences have railed more towards Premium segment homes, housing societies, Plush apartments, and Gated communities. These are difficult to look for in metro towns and advanced cities where areas away from the city centre provide for what remains.
Investment Aspect to Grow
Real estate investments are no longer simply analysed as ‘shelter needs. but also as simple tactics of highly funded investment schemes people look for in the outskirts and countryside. For such reasons, people demand low brokerage rates, high rates of return in the future, and most importantly safe investments. Considering what PeProp Money offers, the client also gets home loan assistance, legal assistance, and real estate investment insights, and earns cashback on every single transaction with easily available methods of payment like UPI. Thus setting up a stage for both buyers and sellers. Such schemes make it possible to succeed in the long run when set in metropolitans. So when companies invest they earn a return of exceeding interest than expected.
Correlating Proptech and Metropolitan Advantages
The presence of a proptech company ensures the visible availability of lands that are better in detail and hence can be matched with the requirements of the general population and the market to characterize it as an area of varied importance and related setup. Thus, smart cities can be planned and developed. An example stands to be GIFT city in Gujarat.
With the rising need for inventory and its significance, the proptech provides for a listed and organized list of inventories and their stakes. This is accompanied by the owner listing by companies like PeProp Money. Hence, providing a shared platform for both buyers and sellers.
With the countrymen settling for digital wallets and net banking, motivating them to invest using those methods assures they can deal with property at their time of interest thus net banking as a method of payment used makes more sense in developed cities.
Conclusion
In the broader daylight, to conclude, Metropolitans, towns, and rural entities have different demographic requirements and accordingly varying tasks to provide for what seems necessary. According to our stats collected the real estate market in India sums up to USD 1000 billion. However, there remains an extensive gap between the actual demand for real estate and the possible supply amounting to approximately USD 7 million. This gap increases with the fluctuations in the market. Thus developing a huge market for Proptech stands to be one such solution to decrease the gap in the developing economies of current state affairs.
Under the scheme, 11 plots are on auction, estimated construction of 10,000 flats, and brochures are available on the Greater Noida authority website.
The Greater Noida Authority has launched a scheme of group housing projects on 11 plots on a measure of 2.41 lakh sqm. On the basis of the reserve price, the authority will get about Rs 950 crore.
An official said that the allotment is being done through e-auction. It is estimated that the construction of 10,000 flats will be done on these lands.
The plots are in Zeta, Sigma3, Omicron 1A, Eta 2, Sector 36, Mu, Sector 10, and Sector 12, spreading over 10,120 sqm to 39,321 sqm in area.
The authority has released the brochures on the Greater Noida website. Registration fee, EMD (Earnest Money Deposit), and processing fee can be deposited till December 25. The last date for registration is December 25.
The plots will be made available to developers once the allotment is done.
The last date for submitting the documents is December 27.
‘Proptech’ has been floating around in the real estate market for quite a while now, and it has eventually cemented its place in the minds of people. It is the modern-day solution to the age-old problems that the overworked professionals feel, along with the fact that it comes with an increase in the new market as well.
In a world that has adapted itself to technology in such a way, that it has become an integral part of people’s lives, it becomes incredibly important to take our businesses in the direction of digitalization as well. It is not just businesses that strive to become an active part of this, even real estate companies have started to come to the forefront with their ideas and campaigns.
The constant advancement in technology, and the benefits that it provides, have become a hot cake, and everyone wants a piece of it. From companies in the cosmetic sector to the ones based in the corporate world, as well the real estate companies.
Proptech- What is it?
Proptech is the amalgamation of the words property and technology, which at times also overlaps with financial technology. It is used by experts in the real estate world to speed up the process of buying, selling, researching, marketing, and managing properties. It is the beginning of fine-tuning between the property market, and technology.
The concept of property technology is remotely new to the world, and not everyone is accustomed to doing things the digital way, but if you are someone who knows the ins and outs of the sector, then you are a person who has been a witness of the gradual progression and development of the real estate market.
The pandemic has also played a major role in the advancement of the market because even though there were restrictions, the real estate world stopped for none. People turned towards the digital direction, and they could actively participate in the process of purchasing properties from the comfort of their homes. It also came as a blessing in disguise for those people who were on the lookout for purchasing properties in other parts of the country where they reside. There have been speculations that the market is going to be on an uphill climb from henceforth, owing to the number of consumers who prefer digital comfort over anything else.
The value of the Indian real estate brokerage industry is estimated to be $1.4 billion or $1,400 million. According to the data acquired from housing.com, it becomes evident that most of the real estate business is done offline, and Proptech has developed in India, because all the purchasing decisions are being taken online by the concerned parties, the final transactions are still taken offline by the people. But, the estimated number of internet users is supposed to reach one billion by 2025, which is a benefit as there will be significant opportunities created for the various businesses in this sector, and due to the multiple ways that technology possesses to transform the sector entirely, the stakeholders have high hopes for the upcoming digital revolution.
Cost effectiveness and the effect of technology
Technology has played a major role in the industry by giving the professionals a benefit of cutting costs, and the luxury of cost optimization, which provides their clients with the options of purchasing properties at a low price, yet not having to compromise on their dreams.
The real estate sector has found it tricky to adjust to the world of technology and the digital aspect of the market, as there is an overgrowing need for transparency, and improvement in the sector from the client’s side, and the rollout of 5G, along with the acceptance of the AI technology, threatens to upend the estate value chain, but the pandemic has seen an increase in the real estate market investments.
There have been attempts made by the shareholders to investigate the technical aspect of the market’s gradual lean towards digitalization, which has lead them to believe that Proptech has resulted in the shift of power in the industry from the conventional thinkers and developers to the higher achieving and technologically inclined new-age real estate companies.
Customer Experience
Augmented technology, virtual reality and bot technology will be used in the near future to replace the offline customer encounters that people have. The advancement of technology has provided the consumers with the luxury to browse whatever property they wish to purchase/rent, from the comfort of their own house, with the help of the mouse.
Proptech has made the process of buying, selling, renting and advertising properties comparatively easier. While the owners can list their properties on the concerned platform, while the buyers can easily browse, and compare the options that they are presented with, and choose the one that appeals the most. Proptech has also made the process of renting and bank transactions hassle free and smooth for both the parties.
Top 5 New-Age Real Estate Startups
Infra Land
Infra Land is a company that believes in the concept of ‘Low carbon infrastructure for a sustainable world’. Their attempt to bridge the gap between the real estate sector, technology and the infrastructure sectors has become the basis of their thought process behind their ideology of making the company more climate friendly by realizing sustainable developments for the future generations.
Land Deed
Land Deed provides its clients with an Encumbrance Certificate, which is used as evidence of clear and marketable title, and to show that the property is free from any legal liabilities.
PeProp.Money
PeProp.Money provides their consumers with the ease of listing, buying, and selling of properties, and makes the entire process hassle-free for all the parties involved. It is the one-stop solution provider to every need of the consumer, as it ranges from the real estate market to banking assistance, and more.
No Broker
NoBroker has shed the age-old traditions of having to pay the brokers during the process of buying properties, and has brought forward a non-conventional method of making things easier for the consumers, while making sure that the market remains an easy to access forum for one and all.
Square Yards
Square Yards provides the consumers with the luxury of becoming a part of the real estate business from the location of their choice, while keeping the options for their preferred choices open.
An estate officer of Haryana Shahari Vikas Pradhikaran (HSVP) and two builders identified as Rishiraj and Vashisht Kumar Goyal have been arrested in accuse of property fraud.
The action was taken after a complaint received by the vigilance bureau against Rishiraj, the director of RR Foundation Engineering Pvt Ltd, and Mukesh Kumar Solanki in 2019.
A three-storey commercial building was allotted to Rishiraj’s company in Sector 23-32A. Rishiraj paid only 10% of the cost, although he was required to pay 15% a month as per the rules. After a year, the allotment was canceled as Rishiraj failed to make the remaining payment. Also, found later that the builder didn’t have a company named RR Foundation in Gurgaon but had one such office at Delhi’s Barakhamba Road.
Rishiraj appealed in the consumer forum, for the reallocation of his company but the appeal was rejected because of discrepancies. Rishiraj transferred the commercial property to another builder, Goyal by executing power of attorney.
Since the allotment was canceled in 1998, Rishiraj didn’t have any ownership of the property as the transfer of property was illegal. Goyal pleaded in court in 2018 that the property was allotted to him. Estate officer Solanki reissued the re-allotment letter to the Goyal in June 2018 at the same rate as it was auctioned in 1997.
An FIR was Register against Goyal, Solanki, and Rishiraj under sections 409(criminal breach of trust by public servant), 418 (cheating with the knowledge that wrongful loss may ensue to person whose interest offender is bound to protect), 468 (forgery for purpose of cheating), 120B (criminal conspiracy) 420 (cheating and dishonesty), and 467 (forgery) of the IPC and provisions of the Corruption Act, 1988.
The official said that the estate officer misused his power and issued an illegal re-allotment letter. The property was allotted at the same cost as it was auctioned 21 years ago. This caused a huge loss to the exchequer.
126 flat/villa buyers of “The Fernhill” located at Sector 91, Gurugram, an Ansal API’s real estate project has moved the plea which was admitted by a two-member bench of the insolvency tribunal.
NEW DELHI: The National Company Law Tribunal has ordered insolvency proceedings against realty firm Ansal Properties & Infrastructures initiated on a petition filed by 126 flat buyers of one of the company’s housing projects.
The buyers in their petition had purported defaults by Ansal API in delivering the project within the promised time frame and even after the grace period provided under the clauses of the builders-buyers agreement.
“The applicants have succeeded in proving their debt and default on the part of the Respondent in the instant case. Hence, in the given facts and circumstances, the present Application being complete and the default being committed above the threshold limit, the present Application is admitted,” it said.
As a necessary consequence of the moratorium, it also imposed prohibitions against any recovery under suits, transfer of property, disposal of assets of the real estate firm and others under the Insolvency & Bankruptcy Code.
As per the written petition filled by the buyers, Ansal API promised them to give the physical possession of the said units booked within 48 months- by July 2017 for the majority of the applicants.
Even after including the grace period, Ansal API was required to hand over the allotted units by January 30, 2018, whereas, till March 31, 2021, the said units were not completed.
The entire project is lying incomplete/unfinished even after a gap of four years from the promised.
The lenders of HDIL- Housing Development Infrastructure selected Adani Properties for Project BKC and Shahad Maharal Lands while Dev Land and Housing Pvt Ltd won HDIL Tower. The syndicate of Khyati Realtors and Dosti Realty Ltd won three projects- Majestic Towers, Whispering Towers and Premier Kurla.
Lenders to real estate developer Housing Development Infrastructure (HDIL) voted for separate plans for six projects, including a plan submitted by Adani Properties, stock exchange disclosures showed.
“The resolution plans of these three bidders barely scraped through. Just over 66% of lenders voted for their plans,” said one of the creditors. Interestingly, as per the Insolvency and Bankruptcy Code, at least 66% of lenders by value must vote in its favour for a resolution plan to be approved.
The resolution professional for the same Abhay Manudhane, iintimated the stock exchange the plans received for four verticals were not compliant last week itself. The RP will begin the procedure to file with the bankruptcy court for the liquidation of these four verticals. These include Galaxy Apartments, Paradise City, Virar Land and the rest of the company.
The promoters of HDIL, Rakesh Kumar Wadhawan and his son Sarang Wadhawan are under federal investigation over an alleged multi-crore scam that led to the collapse of Punjab & Maharashtra Co-operative Bank two years ago.
The RP has admitted Rs 900 crore homebuyers’ claims and Rs 6,895 crore of financial creditors’ claims.
This year in February, the resolution process of HDIL restarted after the appellate authority set aside a liquidation order pronounced by the National Company Law Tribunal. While rejecting the extension, the tribunal said lenders had not found a buyer for two years.
The National Company Law Appellate Tribunal gave an extension following a plea by homebuyers. While providing an extension, the appellate tribunal observed that the RP had received 25 expressions of interest when it explored a project-wise sale of the company.
CIFI Holdings (Group) Co Ltd Index rose 40% while Country Garden Holdings Co Ltd soured 23%. The Hang Seng Mainland Properties Index surged by 8%.
HONG KONG: On Wednesday, the Chinese property developers’ shares prices soured up after regulators expanded a financing programme aimed at supporting bond issuance in the crisis-ridden sector.
The National Association of Financial Market Institutional Investors propose to extend a programme to support about 250 billion yuan ($34.5 billion) worth of debt sales by private firms, including property developers.
The semi-official association under the central bank also said the programme can be expanded further.
Alvin Cheung, associate director of Prudential Brokerage in Hong Kong said, “Even though the programme may not actually help developers that much, it’s the message from the central government, showing its determination to stabilise the sector and the economy, that is boosting sentiment,”
The move from regulators is in response to uplift the cash-strapped property developers struggling to tap sources of funding to finish projects and pay suppliers. Due to stark circumstances several developers have defaulted on offshore debt obligations in the past year.
More recently, investors have been fretting about the crisis deepening as developers widely believed to have had government backing also missed payments, such as CIFI and Greenland Holdings Corp Ltd.
“We think this is a big step to help ease liquidity for top private developers after recent defaults,” said Jefferies analyst Shujin Chen in a client note.
Still, there will likely be more defaults given weak recovery in property sales, Chen said.
Nomura said benefits from the expanded programme are unlikely to be sufficient to resolve developers’ financial woes as prolonged contraction in new home sales may reduce funding sources this year by 3.3 trillion yuan.
The property market continued its slump in October, with private data showing home prices and sales falling, indicating lacklustre sentiment and a bleak outlook amid strict COVID-19 curbs that have rattled consumer confidence.
The investment made through structured debt instruments will be used up for financial closure of projects, repayment of high-cost debt and towards working capital. The investment will support six projects spread over nearly 7 million square feet in Mumbai and Pune.
Mumbai: HDFC Capital Advisors, a real estate private equity investment manager owned by top bank loan lender HDFC, has invested over Rs 1,550 crore in a portfolio of residential projects by S P Real Estate.
Venkatesh Gopalakrishnan, chief executive officer of Shapoorji Pallonji Real Estate mentioned, “Our partnership with HDFC Capital Advisors will give us significant headroom to capitalise on growth opportunities in our targeted markets. This partnership will add immense value to our project pipeline and propel our growth further,”
Vipul Roongta, managing director and CEO of HDFC Capital Advisors, stated that in this partnership with Shapoorji, HDFC Capital will emphasis on meeting the increasing demand for high-quality homes for mid-income households in India.
“In line with the ‘housing for all’ vision of the government of India, HDFC Capital’s endeavour is to increase the supply of housing in India by providing flexible, long-term capital to leading developers across India,” Vipul said.
The six projects HDFC has invested in are green field projects in the mid-income category with some components of premium as well as affordable segments.
One project out of these six projects is involved in redevelopment of a large housing society in the central part of Mumbai.
Other projects include three plotted developments on the outskirts of Pune and one villa project that is part of the company’s larger layout in Pune’s Hadapsar locality.
While all approvals for the central Mumbai project have already been secured, permissions for other projects are expected soon.
Prior to this partnership, HDFC Capital Advisors in August entered into an agreement with the Ahmedabad-headquartered Lalbhai Group company Arvind SmartSpaces to set up a Rs 900-crore platform to undertake residential developments.
The ongoing consolidation in Indian real estate has caught up speed as established developers continue to gain more market share in terms of sales and liquidity, as homebuyers increasingly prefer established developers.
Shapoorji Pallonji Real Estate constitutes a significant part of the Shapoorji Pallonji Group, a multi-business conglomerate. With a development potential of over 113 million sq. ft., the developer is working on projects in Mumbai, Pune, Bengaluru, Gurgaon and Kolkata.
The company has projects across segments including luxury apartments, aspirational homes for mid-income homebuyers, and mass housing projects.
HDFC Capital, set up in 2016, manages a $3-billion funding platform that has been rated as one of the world’s largest private finance platforms focused on development of affordable housing.
Recently HDFC’s wholly owned subsidiaries HDFC Property Ventures and HDFC Venture Capital have approved a plan to merge with HDFC Capital Advisors. The combined platform will advise and manage around $4.1 billion of assets, potentially making it the largest private equity firm in India.
