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<ul><li>There are over 1.600 housing projects, and 4.58 lakh housing units, that are stalled.</li><li>The Narendra Modi cabinet approved a ₹10,000 crore fund for distressed housing projects, and SBI and LIC will pool in another ₹15,000 crore.</li><li>A special window will be created and it will be structured as an alternative investment fund.</li></ul>The Narendra Modi government will provide ₹10,000 crore through a special window to revive stuck housing projects. This fund will be structured as an alternative investment fund under <keyword id="685088" type="ORGANIZATION" weightage="20" keywordseo="SBI-Cap">SBI Cap</keyword>. The country's largest bank, the State Bank of India (SBI), and the state-owned insurer, the Life Insurance Corporation (LIC), will bring in additional funds, taking the initial corpus to ₹25,0000 crore. This will provide relief to thousands of aggrieved home buyers who have been waiting anxiously for their homes to be delivered because the builders have run out of cash. "There are over 1.600 housing projects, and 4.58 lakh housing units, that are stalled," <keyword id="7706673" type="UNKNOWN" weightage="20" keywordseo="finance-minister-nirmala-sitharaman">Finance Minister Nirmala Sitharaman</keyword> said as she unveiled the latest decision by the Union Cabinet. Even projects that have defaulted on loans will be eligible, contrary to expectations in the run up to the decision. "Any project that has not been sent for liquidation by the bankruptcy court are also eligible" Sitharaman said. The fund is largely targeting middle and low income housing projects whose net worth is in the positive. <div type="Article" hostid="261" msid="71942852" title="Know if the home that you are waiting for can avail money from Indian government's new fund for stuck housing projects" mstype="2" mssubtype="0"></div>

 "80% of all stuck housing projects will benefit from this announcement," Samir Jasuja of PropEquity told a television channel. According to Jasuja, out of the 4.8 lakh housing units, nearly 3 lakh units are either in the national capital region around New Delhi or in the Mumbai Metropolitan region. 
 
 
 
 
 
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 The fund provided to developers will be kept in an escrow account— the money cannot be used by the developer for anything other than the construction of the project itself, nor can the bank use the money to recover earlier dues, the minister clarified. The calculation of net worth will be specific to the project, not at the company level. "If there are three towers in a project, and one of them is 70% is complete, and the other two haven't started yet. The money will be available only for the tower that is 70% complete not for the other two," Sitharaman explained. For instance, if the project needs ₹400 crore for completion, the money will be released to the escrow account based on milestones in completion. The real estate sector has already welcomed the decision when it was being discussed as a possibility. Finance Minister Nirmala Sitharaman also said that the government is inviting other foreign funds and sovereign funds to invest in the fund, over and above the initial ₹25,000 crore from the government of India, SBI and LIC. "I rather retrieve projects that are awaiting resolution at the NCLT (National Company Law Tribunal), get them out of there," Sitharaman said explaining the structure of the rescue fund. SEE ALSO: <a href="https://www.businessinsider.in/policy/economy/news/not-just-slowdown-indian-homes-sales-are-brought-down-by-shraadh-custom-and-heavy-rains/articleshow/71375256.cms" data-type="tilCustomLink" target="_blank">Not just slowdown, Indian homes sales are brought down by 'Shraadh' custom and heavy rains</a> <a href="https://www.businessinsider.in/luxury-housing-rebounds-in-india-with-almost-three-times-more-launches-after-two-years/articleshow/70584923.cms" data-type="tilCustomLink" target="_blank">Luxury housing rebounds in India with almost three times more launches after two years</a>

Indian government unveils $3.5 billion rescue fund for stuck housing projects

New Delhi, Jan 22 () Housing sales fell 9 per cent during October-December across nine cities to 60,453 units due to economic slowdown and liquidity crisis, according to a report. 
 Housing brokerage firm PropTiger recently reported 30 per cent fall in sales in nine cities during October-December quarter. However, during 2019 calendar year, realty consultants Knight Frank India and Anarock mentioned that sales rose by one per cent and 5 per cent, respectively. 
 "The absorption witnessed a dip of 9 per cent as compared to the same period last year and new launches have dropped by 10 per cent on a year-on-year basis. The downtrend observed was mainly due to economic slowdown and liquidity crisis in the market," PropEquity said in its Q4 report. 
 The nine cities tracked by PropEquity are Mumbai, Thane, Bengaluru, Kolkata, Chennai, Noida, Gurugram, Pune and Hyderabad. 
 "Residential real estate continues to be an end user driven market as ready to move-in or nearing completion properties are being preferred. Consumers are now looking for developers with excellent track records in terms of quality and execution," it added. 
 According to the data, housing sales in Pune declined 9 per cent during October-December period to 15,453 units as compared with the year-ago period. 
 Thane and Hyderabad saw 16 per cent fall at 11,933 units and 4,643 units, while Bengaluru and Mumbai witnessed 12 per cent dip each at 10,263 units and 5,996 units respectively. 
 Housing sales in Chennai too dropped 14 per cent to 3,632 units. 
 However, Kolkata saw sales rising by 26 per cent to 4,743 units. Housing sales in Gurugram rose by 19 per cent to 2,175 units and Noida by 20 per cent to 1,615 units. 
 "We expect markets to recover in 2020 and also expect government to announce positive measures in the forthcoming budget," said Samir Jasuja, founder and managing director at PropEquity.
 PE Analytics owns and operates PropEquity, which is an online real estate data and analytics platform covering over 1,18,010 projects of 34,217 developers across 44 cities. MJH ANS
ANS
ANS
ANS

Housing sales down 9 pc, new supply falls 10 pc in Oct-Dec: Report

New Delhi, Jan 22 () Housing sales fell 9 per cent during October-December across nine cities to 60,453 units due to economic slowdown and liquidity crisis, according to a report. 
 Housing brokerage firm PropTiger recently reported 30 per cent fall in sales in nine cities during October-December quarter. However, during 2019 calendar year, realty consultants Knight Frank India and Anarock mentioned that sales rose by one per cent and 5 per cent, respectively. 
 "The absorption witnessed a dip of 9 per cent as compared to the same period last year and new launches have dropped by 10 per cent on a year-on-year basis. The downtrend observed was mainly due to economic slowdown and liquidity crisis in the market," PropEquity said in its Q4 report. 
 The nine cities tracked by PropEquity are Mumbai, Thane, Bengaluru, Kolkata, Chennai, Noida, Gurugram, Pune and Hyderabad. 
 "Residential real estate continues to be an end user driven market as ready to move-in or nearing completion properties are being preferred. Consumers are now looking for developers with excellent track records in terms of quality and execution," it added. 
 According to the data, housing sales in Pune declined 9 per cent during October-December period to 15,453 units as compared with the year-ago period. 
 Thane and Hyderabad saw 16 per cent fall at 11,933 units and 4,643 units, while Bengaluru and Mumbai witnessed 12 per cent dip each at 10,263 units and 5,996 units respectively. 
 Housing sales in Chennai too dropped 14 per cent to 3,632 units. 
 However, Kolkata saw sales rising by 26 per cent to 4,743 units. Housing sales in Gurugram rose by 19 per cent to 2,175 units and Noida by 20 per cent to 1,615 units. 
 "We expect markets to recover in 2020 and also expect government to announce positive measures in the forthcoming budget," said Samir Jasuja, founder and managing director at PropEquity.
 PE Analytics owns and operates PropEquity, which is an online real estate data and analytics platform covering over 1,18,010 projects of 34,217 developers across 44 cities. MJH ANS
ANS

Housing sales falls 9 pc, new supply down 10 pc in Oct-Dec: Report

New Delhi, Dec 5 () Cash-starved realtors expressed disappointment over the RBI's decision on Thursday to keep the benchmark lending rate unchanged and said the apex bank should have cut repo rate by 1 percentage point to boost housing sales and economic growth.
 "India Inc. was expecting a rate cut of 100 basis points instead of small tinkering such as a rate cut of 25 basis points, which would have provided a boost to the government's recent initiatives to kick-start GDP growth," NAREDCO President Niranjan Hiranandani said.
 "The decision to wait and watch the outplay of previous cuts will go against the current sentiments. The markets overall are disappointed," he said, adding that real estate developers are facing liquidity crunch.
 Knight FRank India CMD Shishir Baijal said the RBI's decision to not lower interest rate has come "as a surprise and a bit of a disappointment to the industry".
 "Lower interest rate would have helped push up credit demand and investment in the economy, aiding overall economic growth. It would have provided much required reprieve to some ailing sectors like real estate and auto," he added.
 Anarock Chairman Anuj Puri said, "From a real estate point of view, rate cuts are obviously always welcome as they help improve overall sentiment. The expected rate cut of 25 basis points would have caused home loan values to fall below 8 per cent for first time ever".
 Sanjay Dutt, MD &amp; CEO, Tata Realty &amp; Infrastructure Ltd said, "This time while the focus of the RBI remains to be on reviving the economy, we are disappointed to see no change in the policy rate".
 The real estate industry, in particular, has been facing some difficult times and with inventories piling up the need to push demand and encourage purchase is now more than ever, he added.
 However, Anshuman Magazine, Chairman &amp; CEO - India, South East Asia, Middle East &amp; Africa, CBRE, said the RBI's decision to keep the repo rate unchanged is an indication towards the government's focus on the evolving inflation-growth dynamics.
 JLL India CEO &amp; Country Head Ramesh Nair said the central bank by keeping the rates unchanged has recognised that the need of the hour is to infuse confidence about the economic growth through a holistic approach.
 "The decision to maintain policy rates augurs well for the economy as the recently introduced policy reforms will take time to pan out and materialise. The economy needs to absorb the impact of the recently introduced reforms and the previous rate cuts. The real estate sector is expected to pick up due to the favourable policy incentives and the faster transmission of previous rate cuts," he added.
 With concern over rising food prices, Elara Technologies CEO Dhruv Agarwala said, "Under the circumstances, the apex bank had little option but to maintain status quo with regard to the repo rate."
 News Corp and Softbank-backed Elara Technologies owns Housing.com, PropTiger.com and Makaan.com real estate portals.
 Sankey Prasad, Managing Director &amp; Chairman, Colliers International India, said the government along with industry experts should identify and resolve other sensitive issues effecting the sector.
 Gaurs group MD Manoj Gaur stressed on effective transmission of 135 basis point cut in repo rate this year.
 Amit Modi, Director, ABA Corp and President (Elect), CREDAI Western Uttar Pradesh said: "By maintaining the status quo, the RBI has given some kind of surprise after a long time. Unfortunately, it is contrary to our expectation.
 "Industry was expecting a rate cut as that would have somewhat provided a positive sentiment to the housing sector. Any positive news on borrowing interest rates would have provided the sector an upward trigger," said Samir Jasuja, Founder and MD, PropEquity.
 Sakshee Katiyal, CEO, Home and Soul said the industry is disappointed with the RBI's decision as real estate sector is facing huge demand slowdown. MJH MR

Realty players express disappointment over RBI decision to hold rates

<ul><li>Reports say that $38 billion worth of <keyword id="8399127" type="UNKNOWN" weightage="20" keywordseo="loans-to-real-estate">loans to real estate</keyword> are in trouble.</li><li>Experts claim that $58 billion loans – which make up for 62% of total loans⁠— are stress-free.</li><li>A consultant report blames RERA ‘regulations’ for the many <keyword id="1241568" type="PERSON" weightage="20" keywordseo="bankruptcies">bankruptcies</keyword> in the sector. </li></ul>As much as $38 billion worth of loans⁠— nearly one in every rupee lent⁠— to real estate are in trouble. And it is not fair to blame the smaller <keyword id="6385582" type="UNKNOWN" weightage="20" keywordseo="builders">builders</keyword> alone. Nearly one in three bigger builders, or Grade A as they are called, are also facing ‘severe stress’ in repaying the loans. 
 
 
 
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 The only thing making this huge pile of potential bad loans better is the disaster waiting to happen in telecom. Real estate sector is taking heart from the fact that two telecom players⁠— Vodafone-Idea and Airtel⁠— were hit with deferred spectrum dues of ₹92,000 crore ($15 billion) at a time when the top three telecom players <a href="https://www.businessinsider.in/mukesh-ambanis-telecom-war-escalates-telecom-industry-debt-to-3-9-lakh-crore/articleshow/70906000.cms">have combined debt of over ₹3.9 lakh crore</a> (over $55 billion). “In the telecom or steel industries, default by a single company alone equals a sizable portion of the overall stress in the real estate sector. Also, every <keyword id="8399128" type="UNKNOWN" weightage="20" keywordseo="real-estate-loan">real estate loan</keyword> is backed by hard security, which is anywhere between 1.5 times to 2 times. Even if defaulting developers decide to sell their real estate at a discount, there is enough margin for them to pay back,” said Shobhit Agarwal, MD &amp; CEO of Anarock Capital. This is a case of pot calling the kettle black. Real estate is struggling to survive playing by the rules Agarwal also went ahead and blamed ‘regulations’ for the defaults in the sector. “One prime reason was that sluggish residential sales over the last few years completely dried up cash flows for many developers, resulting in unsold inventory pile-up and, thus, their inability to service their loans. Moreover, some developers have even filed for bankruptcy in the backdrop of stricter regulatory norms under RERA,” he said in a press release. But these rules were brought in to clean up the sector that had become infamous as the home to ill-gotten wealth. The domino effect is taking financiers down too The property consultant believes that only $16 billion worth loans are under ‘severe’ stress while $21 billion is under ‘some pressure’. Nearly a third of total realty loans are in the books of housing finance companies and non-banking financial companies and these are sectors that are already struggling to survive.. And it comes as no surprise that 58% of total <keyword id="6360217" type="UNKNOWN" weightage="20" keywordseo="loan">loan</keyword> book of NBFCs are in trouble. The Anarock report also pointed out that the amount that is being lent to the sector has shrunk after IL&amp;FS default since most of their funds come from NBFCs and HFCs who are facing a liquidity crisis themselves. Will the government stimulus for real estate help? The government itself is not shy of lending to the sector, and more so to trouble housing projects. In November, Union finance minister Nirmala Sitharaman decided to give a handout to sector whose sales have been slowing for the last four years with small spurts of growth in between. The government launched a ₹25,000 crore ($3.5 billion) rescue fund for the sector along with India’s largest bank --SBI and India’s largest insurer - LIC. As many as 1,600 housing projects and 4.58 lakh housing units that are stalled. But government too is careful of what ‘kind’ of stressed projects that it is lending to and allowed no free-for-alls. “The project must have a positive net worth. This depends on the demand for the project and expected cash flow from home buyers,” Sitharaman told the press conference. According Samir Jasuja of PropEquity, “As much as 80% of all the housing sector projects which are stuck will gain from the announcement.” Moreover, he also said that 3 lakh crore of stuck housing projects are in Delhi-NCR and Mumbai metropolitan region. It is yet to be seen as to how much this fund will help the troubled sector.

Nearly one in three Rupees lent to builders is unlikely to come back

New Delhi, Mar 25 () The nationwide lockdown for next 21 days amid spread of coronavirus will severely impact residential real estate as housing sales have almost come to a standstill, which could affect builders' cash flow and lead to default in repayment of bank loans, according to property developers and consultants. Market experts also fear that existing customers might delay payments of their instalments to developers, who in turn could default in repayment of principal and interest on bank loans. Developers may hold on to apartment rates, but prices in the secondary or resale market could fall, they said. To mitigate the impact, developers and brokers are adopting digital marketing tools to reach out to prospective home buyers. When contacted, realtors' apex body CREDAI President Satish Magar said the lockdown will greatly impact the sales transactions and new launches will be deferred. "There are chances of many customers defaulting on their instalments because of tough economic conditions. These will have a cascading effect on developers-who will be battling with servicing their debts as cash inflows will be strained," he added. NAREDCO President Niranjan Hiranandani said overall sales numbers have dropped. The lockdown has opened up opportunities for digital platforms for sales and marketing activities, as also payments, he said. Bengaluru-based Puravankara MD Ashish R. Puravankara said: "At this point, no property registrations are taking place and all new project launches are postponed". As all construction sites are under lockdown, there will be a delay in completion leading to an increase in the interest cost, he added. "Additionally the lockdown could hamper the cash flow cycle of the developers' balance sheets and could result in bank defaults", said Ashish. Anarock Chairman Anuj Puri said the lockdown will have a negative impact on housing sales and new launches during the auspicious festivals of Gudi Padwa, Akshaya Tritiya, Navratri and Ugadi. "This is a time when AV technology to enable virtual site visits and walk-throughs will gain increased relevance and use," he said. Anshuman Magazine, Chairman &amp; CEO (India, South East Asia, Middle East &amp; Africa), CBRE said: "It is too early to comment on the impact of Covid 19 given that the situation is still evolving ... We are confident that once the situation normalises, sales will resume". Dhruv Agarwala, Group CEO, Housing.com and PropTiger.com, said the lockdown will have an adverse impact on real estate. "We too have begun to see a dip in traffic on all our platforms," he said, adding that the company has come out with innovative schemes for builders and brokers to advertise on its websites. Siva Krishnan, MD (Residential Services and Developer Solutions), JLL India said the lockdown will definitely have an impact on housing sales, but briefly. Shalin Raina, MD- Residential Services, Cushman and Wakefield, said the complete lockdown means lesser sales since most of the transaction closures happen only after site visits. Housing prices have corrected by 15-20 per cent in the last few years and further decline is unlikely, Raina said. Savills India CEO Anurag Mathur said: "Housing sales may see a sharp dip for at least the next one quarter... Even if the situation settles down quickly, it may take time for homebuyers to come back to the market." "Price elasticity is not a concern under the circumstances since the transaction activity is at a standstill anyway. Depending upon the duration and depth of the current crisis, prices may or may not see a downward movement," he said. Omaxe CEO Mohit Goel said the recovery in the housing segment has been halted. "As for real estate prices, there will be no change as transactions are not taking place. The prices will resume at the level it has halted," he said. Gaurs' MD Manoj Gaur said, "The sales are impacted, but it is temporary." Supertech Chairman R K Arora said, "housing sales have completely gone". There are no buyers in the market. Pune-based Gera Developments MD Rohit Gera said, "Real estate sales are at a standstill. So far there has not been any reduction or crash in prices of homes." "In the absence of some relief from the government, more real estate developers with debt obligations will default on account of the stop in cash flows thereby impacting the economy and jobs," he added. M3M Director Pankaj Bansal said housing sales would get impacted during this period of crisis, but it would also create a pent up demand once things get back to normal. Experion Developers Senior ED Ananta Singh Raghuvanshi said, "Sales closures are temporarily getting pushed ahead. Prices won't change." Raheja Developers ED Nayan Raheja said the sales and construction are badly impacted and at standstill. ABA Corp Director Amit Modi said the sales velocity has definitely been slow. Gulshan Homz Director Deepak Kapoor said, "People are deferring property buying decisions." PropEquity MD Samir Jasuja said: "For the real estate sector, this is a tough situation as it was just finding green shoots of recovery. We believe for the next few weeks, we will not see any new transactions for housing sales". Ambience President (Sales &amp; Marketing) Ankush Kaul said: "Housing sales will be impacted for the next few weeks." Ekta World Chairman Ashok Mohanani said the lockdown has affected the business cycle deeply. Wadhwa group, Head - Sales, Marketing Bhasker Jain said the lockdown has impacted sales and the company is offering cashback on online bookings. Brokerage firm 360 Realtors Ankit Kansal said the activities have come to a standstill after lockdown. Sales were down by 30-40 per cent during the first three weeks of March. Investors Clinic Founder Honeyy Katiyal said sales would be impacted but not the price. Wealth Clinic CMD Amit Raheja said, "It will hamper sales to a large extent, but we expect a good turnaround once the situation returns to normalcy." MJH MRMR

You Searched For "Samir Jasuja" and got 6 results

Indian government unveils $3.5 billion rescue fund for stuck housing projects

Sriram Iyer

Housing sales down 9 pc, new supply falls 10 pc in Oct-Dec: Report

PTI

Housing sales falls 9 pc, new supply down 10 pc in Oct-Dec: Report

PTI

Realty players express disappointment over RBI decision to hold rates

PTI

Nearly one in three Rupees lent to builders is unlikely to come back

Katya Naidu

Nationwide lockdown to impact housing sales, say realtors

PTI

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