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REAL ESTATE AT A GLANCE: ISSUE-25
Fortnightly E-Newsletter
18th March, 2015
CREDAI UPDATE:
 CREDAI
Bengal,
The
Telegraph and CRISIL are joining hands
to celebrate and reward excellence in
the real estate sector. The Realty
Awards-2015 is slated for 19th march
2015 at ITC Sonar Bangla, Kolkata in
association with the telegraph and
knowledge partner CRISIL.
 CREDAI and IGBC ink pact to promote
green buildings. C. Shekar Reddy,
President, CREDAI and S. Raghupathy,
Executive Director, CII Sohrabji Godrej
Green Business Centre exchanged the
MoU at GBC, Hyderabad. The major
objective of the MoU was to increase
Green Building footprint, across the
residential sector in the country.
 CREDAI National Election to be held on 24th March, 2015 in New Delhi.
News
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1. Delhi to fast-track building plan approvals: The Business Line
To tackle delay in according approvals and enhance the ease of doing construction business in Delhi, Urban
Development Minister M Venkaiah Naidu has set up a High Powered Review and Monitoring Committee to
enable fast-track approval of building plans, an official statement said on Friday. The 16-member Committee
will be headed by the Vice-Chairman of Delhi Development Authority. The Committee, which will meet every
month, has been mandated to review and monitor sanctioning building plan approvals for land area of 5,000
square metre and more for commercial/ industrial purposes and 10,000 sq.m. and more for residential purposes,
the statement said. It seeks to enable building plan approvals within 30 days from the date of application to the
concerned urban local bodies. Full report: http://www.credai.org/delhi-fast-track-building-plan-approvalsbusiness-line
2. Maharashtra government asks Mhada to review its 104 colonies: The Economic Tines
The Maharashtra government, has asked the Maharashtra Housing & Area Development Authority (Mhada) to
review its 104 colonies spread over 3,800 prime acres across the city. The state government has also asked
Mhada to assess the quantum of fresh supply through redevelopment of these colonies. The state had raised
the FSI for these colonies in 2013 to three from earlier limit of 2.5 in order to encourage the societies to come
together under cluster development. Under this revised FSI, each existing tenant is expected to get a unit
spread of over 405 square feet. . Full report: http://www.credai.org/maharashtra-government-asks-mhadareview-its-104-colonies-economic-tines
3. Home loan: RBI reduces burden on buyers, industry calls move ‘insufficient’: The Financial
Express
Reserve Bank of India last week offered relief to home buyers, especially those belonging to the low-income
category and for houses that may fall in the affordable category or in Tier II and Tier III cities. In a bid to reduce
the burden on buyers purchasing house costing up to Rs 10 lakh, the RBI last week allowed banks to add stamp
duty, registration and other documentation charges to the cost of unit in order to calculate the Loan to Value
(LTV) ratio. Though it may benefit some, industry insiders feel that the RBI should have kept the limit higher as
even in Tier II and III cities one would find it difficult to buy a house that is priced under Rs 10 lakh. Full report:
http://www.credai.org/home-loan-rbi-reduces-burden-buyers-industry-calls-move-insufficient-financial-express
4. CREDAI welcomes repo rate cut: The Hindu
The Confederation of Real Estate Developers’ Associations of India (CREDAI) has welcomed the RBI move to
reduce the repo rates by 25 bps, the second rate cut within a span of 50 days. The Federation described the
move as a favourable shift in stance from the RBI in view of the controlled inflation projection and a more
conducive business environment. C Shekar Reddy, National President CREDAI said, “Considering the overall
economic situation and challenges being faced by the industry, we welcome the second reduction in repo rates
from January 2015 with the hope that it translates into lower rates for home loans. This will ease the burden on
the home buyers and create a positive traction in demand for housing.” However, he felt there is a need for
larger cuts in the interest rates to facilitate reduction in EMIs and increasing the eligibility of a common man to
purchase a house.
5. DIPP seeks import duty on cement: The Business Line
The Department of Industrial Policy and Promotion (DIPP) has sought imposition of import duty on cement to
provide a level-playing field for domestic producers and boost exports. DIPP Secretary Amitabh Kant said: “Our
department has recommended that the import duty of cement be reimposed to provide a level-playing field to
domestic production,” adding that he would personally take the matter up with the Revenue Secretary at the
earliest. The import duty on cement is nil at present and the cement sector wants 2-2.5 per cent basic Customs
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duty. Kant was speaking at the 53rd annual session of Cement Manufacturers’ Association (CMA). He added
that the concerns on new emission norms and some provisions in the Mines and Minerals Development and
Regulation (MMDR) ordinance would also be taken up with respective secretaries. The manufacturing sector
has to grow by 13-14 per cent and cement has to be a major driver, he said. Full report:
http://www.credai.org/dipp-seeks-import-duty-cement-business-line
6. $5mn FDI in construction must come in 6 months of nod: Govt: The Business Line
Government today said foreign companies investing in the construction sector will have to bring in a minimum
of US$ 5 million within six months of the date of approval of the building plan. Clarifying on the issues raised by
investors on 2014 Press Note on Construction sector, the government said that exit from the incomplete project
will be permitted after approval of the Foreign Investment Promotion Board (FIPB). Automatic exit, it said, would
be allowed after the completion of the project. “FDI policy mandates exit on the completion of the project or
completion of trunk infrastructure. If the unused land is part of the project and trunk infrastructure has not been
developed, then exit can take place with prior approval of FIPB,” the clarification said. The government in 2014
relaxed the guidelines for Foreign Direct Investment (FDI) in Construction development sector and reduced the
minimum capitalisation requirement from US$ 10 million to 5 million. Full report: http://www.credai.org/5mn-fdiconstruction-must-come-6-months-nod-govt-business-line
7. Govt launches portal to monitor cement cost: The Times of India
Union Minister of Road Transport & Highways and Shipping, Nitin Gadkari launched a web portal, INAM-PROPlatform for Infrastructure and Materials Providers. The portal will facilitate the monitoring of the supply of
cement and expedite the process of placing purchase orders by the prospective users/ user agencies with the
respective cement manufacturers. The portal, designed by the Ministry of Road Transport & Highways shall
ensure complete transparency in the supply of cement under the scheme, so as to achieve reduction in the cost
of construction of rigid pavement. “INAM-PRO” is a web based application (www.inampro.nic.in) for
Infrastructure and Materials Providers and would act as a common platform for Infrastructure materials
providers viz. Cement Companies, Infrastructure providers, Ministry of Road Transport and Highways and other
stakeholders. To start with, it would facilitate contractors/cement buyers engaged in executing the Central/State
funded Roads and Highways/Bridge construction projects to place cement orders online with the registered
cement companies offering cement at competitive rates in the vicinity of project execution locations. Full report:
http://www.credai.org/govt-launches-portal-monitor-cement-cost-times-india
Construction Cost Indices in India- January, 2015 (Base 100 in October-2007)
Ahmedabad
Bengaluru
Chennai Delhi
142.53
141.06
140.12
147.58
Hyderaba
d
141.25
Kolkata
Mumbai
Pune
144.69
139.30
140.37
Source: Construction Industry Development Council
MARKET SNAPSHOT (From 1st March to 13th March, 2015)
EXCHANGE /Index
BSE
NSE
NSE Realty
NSE Infra
USD/RUPEE
EURO/RUPEE
1st March, 2015
29220
8957
239
3372
61.82
69.14
13th March, 2015 CHANGE
28546
-674.00
8648
-309.00
226
-13.00
3298
-74.00
62.67
0.85
66.42
-2.72
PERCENTAGE
-2.31
-3.45
-5.44
-2.19
1.37
-3.93
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R C Sahu
Research Officer
CREDAI-National
703, Ansal Bhawan, 16 K G Marg
New Delhi-110001
WWW.credai.org , email: rcsahu@credai.org , Ph No: 011-43126205, Fax: 011-43126211
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