The Reserve Bank on Tuesday asked banks to link the disbursal of home loans to stages of construction to protect the interests of buyers and contain the fallout of 'innovative' housing financing schemes.
Many developers are increasing prices by 15 to 30 per cent the moment they became sure of demand returning.
Expressing disappointment over RBI's decision to hike the key policy rate, real estate developers said this would lead to increase in finance cost and also affect housing demand during the festive season.
Q3 will be better than the second, say bankers and builders.
Does low-cost housing make economic sense? It seems to. Developers believe the loss in margins (20 per cent in affordable housing, against 50-300 per cent in case of premium housing) can be made up somewhat by the sheer volumes of sales.
Builders bet on affordable homes as luxury sales dip, however, signs of revival after note ban and Rera are slowly visible
Litigation, regulations and the process of seeking approvals have also discouraged some developers.
The real estate sector might have been caught off guard by the second wave of the Covid-19 pandemic, but large listed developers like Godrej Properties and Prestige Estates Projects soldier on undeterred. They aim to have sales bookings of Rs 10,000 crore in the next few years.
Real estate bill seeks to impose penalties, including de-registration of the project and other fines in case of a breach.
Gurgaon and Mumbai, the richest cities in Haryana and Maharashtra, respectively, have always been the preferred markets for investors. Most parts of these cities are beyond the reach for those looking for affordable homes.
Whether it is DLF in the National Capital Region, or Godrej Properties and Oberoi Realty in Mumbai or Sunteck Realty, Prestige Estates and Sobha Realty in Bengaluru, most top players have launched or lined up a slew of new project launches during this season.
Puneet Wadhwa and Debashish Pachal locate real estate stocks to watch out for.
Property consultants also feel that the hike in policy rates would not have any significant impact on the housing sector, which has witnessed a revival in demand for the last one year.
Many developers are facing financial challenges after the IL&FS defaults, after which non-banking finance companies - the major financiers to real estate firms - slowed disbursals.
People are not just splurging on clothes, mobiles and household goods through the online route, they are also looking at cars and even houses.
Hurun Report and GROHE India named Lodha Developers' M P Lodha and family as India's richest real estate entrepreneur with a wealth of Rs 31,960 crore, followed by DLF's vice chairman Rajiv Singh and Embassy group founder Jitendra Virwani in the second and third position respectively. Total wealth of top 100 Indians in the real estate sector stood at Rs 2,77,080 crore -- up 17 per cent against 2018. While Mumbai accounted for six of the top 10 and 37 of the 100 names, Delhi and Bengaluru had 19 residents each who featured on the list. Smita V Crishna of Godrej Properties featured as the richest woman.
"We are looking at how we can bring back skill sets developed by Indians overseas," Rajiv Singh, vice-chairman of DLF, said in an interview with the Financial Times. "Our desire is to have a very highly motivated and trained labour force come back and work for us."
Raghavendra Kamath reports on what ails India's real estate sector.
Real estate loans could become NPAs for banks.
DLF, Unitech, HDIL & Puravankara line up 60 million square feet of new launches. This is more than double the sales bookings in the past financial year.
Experts attribute this to new launches in anticipation of a demand revival after the 2014 general elections.
In commercial real estate, leasing of office space was higher although the activities were subdued in retail segment.
Militant labour policies compounded a poor security environment for capital in West Bengal and encouraged the business community to relocate. constraining the private sector's right to hire freely could well be the coup de grace. As with Calcutta/Kolkata, it will probably take a decade for Gurgaon/Gurugram to feel the difference, says Kanika Datta.
Developers announce new projects, vacant land being unlocked
Realty players want single window clearance for all affordable projects, reports Karan Choudhury.
Launches of new homes reduced drastically this year.
Housing sector to benefit from Budget.
The BSE Realty Index is on a downhill journey.
They sought further cut in interest rates as well as reforms.
According to property experts, this is the biggest plan by any developer at the moment.
The revival in Mumbai's property market could help the group.
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The year so far has witnessed several luxury project launches by major real estate companies such as DLF, Unitech, Supertech, Tata Housing and Godrej Properties.
For those in the EWS and LIG category who wish to take a loan up to Rs 600,000, there is an interest subsidy of 6.5 per cent for a tenure of 15 years.
The new law would boost home buyer confidence as well as investment in the realty sector.
The case is understood to be related to the alleged irregularities in land allotment in 2009, sources said.
Increase in service tax would make properties costlier to buyers.
While office and mall properties enjoyed revival and saw some big PE deals, residential real estate was hit by double whammy - stagnating prices and demonetisation
Realty sector is facing a huge slowdown for last 3-4 years, leading to a significant delays in possession of flats to customers.
Property sales have been sluggish and the sector has been facing headwinds. So, firms are in wait-and-watch mode.
Raheja has unveiled Krishna Housing Scheme in sector 14 at Sohna and the homes will be priced at Rs 15,00,000-23,00,000.
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