Real Estate Showing Signs of Revival

Real Estate Showing Signs of Revival:

The dent in sentiment between April to September last year due to the stir caused by the new policy initiatives has now settled, and developers and financial institutions are positive about the coming six months.

There is something to cheer for real estate with positive sentiments surfacing in the realty sector in India.

The uptick stems from better acceptance of structural reforms like RERA and GST that pulled down industry sentiments in the earlier part of the year, according to the latest survey conducted jointly by FICCINaredco-Knight Frank India for the last quarter of 2017 (October–December 2017)..

This revival in sentiments can be attributed to the hope that more organized players will take the lead in the growth of the sector, leading to more transparency and ease of doing business.

Developers agree. “The real estate sector is indeed back to its recovery path. The markets of Delhi NCR saw corrections in some popular housing pockets of Gurgaon and Noida, and the sales volume has increased in these markets in the wake of these price corrections. Also, legislations like GST and RERA have boosted buyers’ confidence. With more clarity coming in on GST, sales are expected to improve further in the months to come,” Harinder Dhillon, VP (sales) of DLF Ltd, says.

Developers say that increasing buyer confidence backed by structural reforms has improved confidence in the realty market.

“During the past one year or so real estate has seen reforms like demonetization, GST and RERA. The realty market, however, absorbed all reforms, which gave much confidence to homebuyers. Now the sector is showing signs of recovery with sales improving in the wake of correction in property prices. Both mid- and affordable-housing segments are registering improvements in sales. Hopefully, it is only a matter of a few quarters for the market to be back on track,” Gaurav Mittal, MD of CHD Developers, said.

Property sales are also believed to be improving because buyers are getting better deals in the market. “The implementation of various reforms has boosted buyer confidence. Also, in the current market situation homebuyers are in a better position to negotiate and grab better deals, leading to improvement in sales,” Ravish Kapoor, director of Elan Group, said.

Industry experts say that residential property market is gradually reviving, but a lot of suppressed sentiment dynamics are still very much at play and the overly adventurous pricing developers indulged in over the past few years have definitely had a part in this.

In such a market environment, discounts – either overt in the form of slashed rates or covert in the form of waived statutory government fees, free parking, etc – have been a significant factor and served to attract buyers. However, not everything is selling equally well.

“If all the other fundamentals for a purchase decision – such as good location, the credibility of the builder, available amenities, overall rational pricing, and RERA registration – buyers feel confident to respond to the added incentives of discounts. Also, what is currently selling is affordable and mid-income housing in the primary sales segment. Premium housing, as well as the resale market, took a big hit after demonetization because they were traditionally targets for unaccounted funds. While the overall market is recovering, premium housing is taking longer to recuperate,” Anuj Puri, chairman of ANAROCK Property Consultants, said.

Though it has seen in Jaypee Greens Wish Town, some of projects are ready to move in and people are moving to side of Noida Greater Noida Expressway to find ready to move in project. The positive thing is that the connectivity with  the road and metro is already functional there.

Jaypee Greens having ready to move in apartments in Kosmos and klassic project.

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Lenders are evaluating five bids for Jaypee Infratech: Sources

Lenders are evaluating five bids for Jaypee Infratech: Sources

http://www.jaypeewishtownnoida.in/

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No wrongdoings, keen to deliver flats: Jaypee Group

NEW DELHI: The Jaypee Group has said that there was no wrongdoing or irregularity in creating a charge on the "unencumbered land" by Jaypee Infratech in favour of Jaiprakash Associates (JAL), the parent company. The company said it was "fully committed" to deliver flats to home buyers.

"JAL had been providing support to JIL as a holding company and only a charge was created on the Jaypee Infratech land in favour of JAL's lenders, which included lenders of Jaypee Infratech as well. Besides, all transactions are as per the provisions contained under the applicable statute," Jaypee Group executive chairman and CEO Manoj Gaur said.

Last week, the insolvency resolution professional appointed for Jaypee Infratech had moved the National Company Law Tribunal alleging irregularities in the mortgage of an 858-acre land to secure bank loans of Jaypee Associates. The two companies have several common lenders, including IDBI Bank, ICICI Bank and State Bank of India.

Gaur said the transactions were transparently done at the behest of banks with valuation undertaken by valuers appointed by banks and added that they were done "in normal course with bona fide intention".

Before IDBI Bank moved NCLT at the behest of RBI, the Jaypee Group had proposed to square off Jaypee Infratech's loans by setting aside land parcels at valuations arrived at banks to avoid any hardship to home buyers, a company executive said. "The move did not entail any haircut for the lenders," the executive added.

While Jaypee Infratech had filed a petition against IDBI's move to initiate insolvency proceedings, the company withdrew it "in the interest of home buyers of Jaypee Greens Wish Town and fixed-deposit holders" on the assurance of early approval of a resolution plan, which was being considered by lenders at that time, the executive said

On his part, Gaur said, the group was keen to ensure that home buyers got their flats. "JAL is fully committed to deliver homes to home buyers. In fact, even during the pendency of insolvency proceedings of Jaypee Infratech, JAL as a contractor, continues the construction of homes and has offered possession of over 1,500 homes between August 2017 and January 2018," he said, adding that Jaypee Infratech had already given a detailed schedule under RERA for completion of homes and over 4,000 units would be offered for possession by March 2018. "The group is best suited to meet expectation of home buyers and we consider it to be a sacred responsibility," Gaur said. JAL is one of the companies in the fray for completing construction work as part of the resolution plan although an amendment to the Insolvency and Bankruptcy Code makes it tough for the promoter to bid for a stressed asset.

"The main reason for the liquidity crunch in JIL was the downtrend in the real estate sector, otherwise selling land would have been the first option for the group, instead of selling plants, which were revenue generating and this aspect cannot be brushed aside," he said, adding that the group had got out of several businesses to repay debt to lenders.

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अप्रैल 2016 से पहले होम लोन लेने वालों को मिलेगा घटी हुई ब्याज दरों का फायदा

नई दिल्ली (बिजनेस डेस्क)। अप्रैल 2016 से पहले होम लोन ले चुके लोगों की शिकायत रही है कि ब्याज दरें घटने का फायदा उन्हें नहीं मिल रहा, क्योंकि यह सुविधा नए लोन पर ही लागू होती है। रिजर्व बैंक ऑफ इंडिया (RBI) ने इसका फैसला कर दिया है। आरबीआई ने बैंकों को लिखा है कि ब्याज दरें कम होने का फायदा पुराने होम लोन ग्राहकों को भी दिया जाए। 1 अप्रैल 2018 से इस पर काम शुरू हो जाएगा।

मालूम हो, अप्रैल 2016 से पहले होम लोन की ब्याज दर बेसरेट से तय होती है। यह फैसला पूरी तरह से बैंक ही करते थे। इसका असर यह होता था कि आरबीआई ब्याज दरें घटाता था, तो पूरा फायदा बैंक उठा ले जाते थे और ग्राहक को कुछ नहीं मिलता था।

इस संबंध में शिकायतें मिलने के बाद आरबीआई ने नया फॉर्मूला बनाया, जो मार्जिनल कॉस्ट ऑफ लैंडिंग रेट यानी एमसीएलआर पर आधारित था। एमसीएलआर फंड्स की लागत से जुड़ी व्यवस्था है। इस तरह अप्रैल 2016 के बाद लोन लोने वालों को एमसीएलआर का फायदा हुआ, लेकिन पुराने ग्राहकों से बेस रेट पर ही लोन वसूला जा रहा था।

अब अपने ताजा आदेश में आरबीआई ने सभी बैंकों से कहा है कि पुराने होमलोन के बेस रेट की गणना भी एमसीएलआर से करें। यह काम 1 अप्रैल 2018 से होगा। अगले हफ्ते तक इस बारे में विस्तृत निर्देश बैंकों तक पहुंचा दिए जाएंगे।

जानकारों का कहना है कि ब्याज दरें ढलान पर हैं, इसलिए आरबीआई इसका दायरा बढ़ाना चाहता है। साथ ही अब आम लोगों को आरबीआई की घटी हुई दरों का फायदा जल्दी मिलेगा। आरबीआई ने दो बातों को ध्यान में रखते हुए यह फैसला किया है। पहला - ब्याज दरें घटने पर एक स्पष्ट पॉलिसी बनाना और दूसरा - इसका फायदा ज्यादा से ज्यादा लोगों तक पहुंचाना।

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Supreme Court refuses to stay Jaypee Infratech’s bidding process

Supreme Court refuses to stay Jaypee Infratech’s bidding process:

New Delhi: The Supreme Court on Monday refused to stay the bidding process under Jaypee Infratech Ltd’s resolution process that was initiated to raise money for completion of the developer’s delayed projects as part of its debt resolution process.

“The bidding process will continue before the interim resolution professional (IRP),” said Chief Justice Dipak Misra.

Jaypee Infratech is among the 12 companies against whom the Reserve Bank of India (RBI), through its 13 June directive, had asked banks to file insolvency petitions.

Jaiprakash Associates Ltd (JAL), the parent company of Jaypee Infratech, told the court that it had deposited Rs550 crore against its total liability of Rs2,000 crore that it was required to furnish under a September order to protect the interest of home buyers.

Jaypee Greens

Amicus curiae (friend of the court) Pawan Shree Agrawal also told the court that claims of approximately Rs1,150 crore had been received on the online portal where home buyers could submit their claims for refund or possession.

On 22 November, the court had restrained independent directors and promoters of JAL and their family members from transferring any personal assets or property without the court’s permission to safeguard home buyers’ interests. They will be held for criminal prosecution or contempt of court if found in violation of the order, the court held.

The court was hearing an application filed in a public interest litigation by Delhi resident Chitra Sharma, who has booked a home in a Jaypee Infratech project.

On 4 September, the apex court had stayed an order passed in August by the Allahabad bench of the National Company Law Tribunal (NCLT), which initiated insolvency proceedings against Jaypee Infratech. A day later, IDBI Bank Ltd approached the court, seeking restoration of insolvency proceedings against Jaypee Infratech.

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