Housing loan payouts in Ahmedabad jump 142% in Q1: Report – ET RealEstate

AHMEDABAD: Backed by buoyant demand for affordable as well as luxury homes, the disbursals for housing finance loans are showing a steep surge.

According to the latest report by State Level Bankers’ Committee (SLBC), housing finance disbursals stood at Rs 5,576 crore in the first quarter of 2021-22, up 142% against Rs 2,298 crore in the corresponding quarter of 2020-21, albeit on a low-base effect due to the lockdown imposed in most part of the first quarter last year.

According to the latest report by State Level Bankers’ Committee (SLBC), housing finance disbursals stood at Rs 2,856 crore in the first quarter of 2021-22, up 128% against Rs 1,252 crore in the corresponding quarter of 2020-21, albeit on a low-base effect due to the lockdown imposed in most part of the first quarter last year.

The 170th SLBC meeting was virtually held on Tuesday. Bankers attribute the reason to an increase in demand for new homes in the post pandemic period.

“The demand for new homes and sales have improved over a period of time. The significant surge is due to a low-base effect because last year, due to the lockdown, disbursals took a hit. While fresh uptakes slowed as people were in wait and watch mode due to the lockdown and pandemic-induced uncertainty,” said a top source in the SLBC.
Housing loan payouts in Ahmedabad jump 142% in Q1: Report“Disbursal of loans takes place as and when construction progresses. Since construction work for residential projects had come to a halt because of the lockdown, disbursals had slowed. However, this time, the demand has picked up and launching of new projects too,” said the source.

Real estate industry players also said that the demand for new homes increased in the past year. “Housing sales in the first six months of 2021 surged 67% to 4,208 units from 2,520 units in same period last year,” suggest industry estimates.

Ahmedabad witnessed a rise of 137% to 6,226 units in the first half of 2021, as compared to 2,627 units in H1 2020.

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Gujarat: Realty registrations spike, as hope lights up residential projects – ET RealEstate

Real estate project registrations across the state have picked up pace, thanks to the strong resurgence in demand and fast depleting unsold inventory. Registrations had taken a beating last fiscal due to the Covid-19 induced disruption.

As many as 743 real estate projects — residential, commercial, mixed development and plotted schemes — have been registered with the Gujarat Real Estate Regulatory Authority (GujRERA) in 2021-22 as of September 9. This translates to 55% of last fiscal’s total 1,345 project registrations, and that too in just the first five months of the current fiscal.

The total investment in these projects is estimated to be Rs 19,639 crore, which is about 60% of the total investment proposed through the registered projects last fiscal, shows data available with the state real estate regulatory authority.

“Increased number of real estate projects have been registered with the state regulatory authority, especially in the past three months. This is because the demand for residential real estate has picked up pace, with people upgrading to bigger dwellings. The unsold inventory has also come down to its lowest levels in the wake of fewer launches over the past two years due to several factors, including the pandemic,” said Tejas Joshi, president, CREDAI Ahmedabad-GIHED, city chapter of the Confederation of Real Estate Developers’ Associations of India (CREDAI).

While the commercial segment remains muted, the residential segment has seen a strong demand across affordable, premium, luxury and plotting categories. This could be seen from the fact that 310 (42%) of the total projects registered are purely residential, while 275 (37%) are mixed-use projects.

It may be mentioned that realty project registrations had declined by 23% to 1,345 in 2020-21 from 1,745 projects in 2019-20 due to the pandemic-induced slowdown.

Pressure rises on margins as production costs escalate

Real estate developers have seen their production cost escalating 10-12% with the rise in prices of cement, steel, sanitaryware, bricks and other construction materials.

The increase in diesel prices has further raised the material transportation costs. Although real estate prices have gone up, developers have not been able to fully pass on the higher production cost to the consumers.

“When many projects are hitting the market, developers cannot raise their prices,” said a city-based realtor. As a result, realtors’ margins are getting squeezed.
Gujarat: Realty registrations spike, as hope lights up residential projectsHowever, developers feel there can be a price hike. Steps such as a reduction in stamp duty and floor space index (FSI) fees can provide relief to both developers and consumers, said industry players.

New launches to gain momentum

With buoyant demand, along with the unsold inventory dwindling to its lowest level, realtors see more housing schemes coming to the market during the upcoming festive season.

“Ongoing projects which are slated to be completed in the next one or two years have seen bookings up to 60-70%. With demand going up, several new projects are going to be launched during the festive season of Navratri, Dussehra and Diwali this year,” added Joshi, who himself plans to launch two projects in the premium and luxury segment in the coming months.

According to real estate consultant Knight Frank India, the unsold inventory (housing) in Ahmedabad stood at 12,151 units in January-June 2021 as against 40,035 units in January-June 2016. The projects which were registered last year, but could not be launched are also being rolled out now, say market players.

“Given the improved sentiment and positivity in the market, developers also think that it is a time to roll out projects according to the customers’ current needs,” Joshi said.

Sales up 30-35%

Traditionally, residential property bookings remain negligible from April to August. “This year, however, developers are witnessing an increase in site visits and bookings even in this lull period,” said Dipak Patel, a city-based real estate developer.

“Riding on the resurgent demand, sales and bookings have gone up by at least 30-35% compared to last September. Sales have bounced back to the levels seen before the outbreak of the pandemic,” added Ashish Patel, president, CREDAI-Gujarat.

The uptick in sales could be seen from the fact that the state’s revenue from stamp duty and property registrations jumped 148% at Rs 3,061 crore during April-July 2021. The revenue had stood at Rs 1,234 crore in the same period last year. In July alone, this revenue surged by 65% to Rs 968 crore.

Realty consultant Knight Frank India’s latest report shows that 1,163 residential units were sold in Ahmedabad during April-June 2021, a growth of 362% over the same period last year. However, the sales were down when compared with the preceding quarter of January-March due to the second wave of the pandemic affecting sales on a quarter-on-quarter basis.

NRI investments flowing in: NRGs from the US, the UK and Canada are buying housing properties in their hometowns in the state. Till now, commercial and plotting schemes used to grab a larger share of the NRI investments. Now, they are also purchasing housing apartments.

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Ahmedabad’s tallest residential project opposite Science City in limbo – ET RealEstate

AHMEDABAD: The city’s upcoming tallest residential building at Science City — 110 meters tall, 30 floors — the project is currently stuck in limbo.

The reason being that the state government’s urban development department, after having announced the finalization of the development control regulations (DCR) in May this year, is yet to constitute a technical committee, involving engineering institutions and government experts. The committee was to review building design and run simulation studies on horizontal load — how the building would react during earthquake — and wind load.

The Ahmedabad Municipal Corporation (AMC) is presently examining the project after having been intimated by the state government last week. If the project passes, it will be at the 92.4 metre building height of three buildings that is expected to come up on the Sabarmati riverfront.

According to plans available with the AMC, the skyscraper residential project, spread over a 14,000 square yard plot just opposite Science City will consist of 348 units.

There are plans for 3 and 4 BHK apartments of 3,500 sq ft, 4,500 sq ft and 5,500 sq ft carpet area. When TOI contacted the developer, Prakash Karsan Patel, he said, “The DCR was finalized two months back while I had submitted the project eight months earlier for consideration.”
Ahmedabad's tallest residential project opposite Science City in limboUnder the current general DCR, the maximum limit of any building was earlier confined to maximum 45m, since the 2001 earthquake. It was then raised to 70m — which translates to 22 or 23 floors — in 2017.

The new policy for tall buildings that was announced in August 2020 allowed builders to make the sky their limits, provided a road of at least 30m width adjoined the plot. The developer also has to procure an NOC from the Union civil aviation ministry or Airports Authority of India (AAI).

Sources in the AMC claimed that skyscrapers can come up in zones that have a Floor Space Index (FSI) of more than 1.2. The new policy allows an FSI of 5.4 but the developer will have to pay for FSI above 1.2 at 50% of the jantri value (revenue ready reckoner rates) of the non-agricultural land.

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Ahmedabad civic body to issue property tax bills based on carpet area in Bopal – ET RealEstate

AHMEDABAD: Bopal residents will be issued their first municipal property tax bills, based on carpet area formula, between September end and October second week. Most of these bills will be between 2.3 to 2.5 times the existing nagarpalika bills, claim civic officials.

The Ahmedabad Municipal Corporation (AMC) had begun an elaborate carpet area survey of more than 40,000 properties — residential and commercial—over the last four weeks.

A senior AMC official told TOI that survey of more than 18,000 properties has been completed and the rest will be completed in a month’s time.

The inspecting tax assessors have been demanding the original plans of the individual tenements, bungalows and apartments. After being brought within AMC limits last year, the area will now be taxed under the new carpet area-based property tax system.

Right now, 40,000-odd residents of the area are cumulatively paying Rs 5 crore in tax to the nagarpalika. The AMC had earlier estimated a tax of Rs 15 crore from the area, but now this amount may increase to about Rs 20 crore.

Most Bopal and Ghuma areas will be in the ‘C’ category of the municipal tax system, where the land jantri value is between Rs 7,000 and Rs 15,000, except for South Bopal which will be under the ‘B’ category.

“The property tax system existing in Bopal-Ghuma is quite arbitrary. For instance, apartments which came up over past 4 years are paying based on carpet area while other properties are paying a flat charge according to the old blanket assessment system,” said a senior South West Zone tax assessor. The AMC had recently completed assessment of newly acquired areas of Nana Chiloda and Kathwada, where about 12,000 properties were assessed and issued bills last year.

“In the recently concluded carpet area-based tax assessment for industrial clusters for Kathwada, there has been a 14 to 15 times jump in property tax. Some of these cases have come for dispute settlement before the AMC. They ask why they need to pay if they do not have basic civic amenities in place,” said a senior AMC official.

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