Enter your new home with a bouquet of

 Enter your new home with a bouquet of home loan offers from SBI

 ·         Home Loan Interest rates start at as low as 6.80%  for Loans upto Rs 30 lacs and 6.95% for loans above Rs 30 lacs based on CIBIL score.

·         Upto 30 bps interest concession on Home Loans based on Loan Amount and CIBIL Score.

·         Women borrowers get a concession of 5 bps.

·         5 bps concessions also available on balance transfer. 

·         Digital sourcing attracts further concession of 5bps.

 

With an aim to offer attractive concessions to the home buyers, country’s largest lender, State Bank of India (SBI) announces further interest concession of upto 30 bps on home loans and 100% waiver on processing fees.

SBI, being a leader in home finance, will continue to make endeavours in reviving consumer sentiments and has been offering various offers on home loans from time to time.

The largest home loan lender has sweetened their past offers & now provides higher interest concession based on loan amount, the creditworthiness of the borrowers and the location of the property.  SBI believes that it is important to offer better rates to customers displaying good repayment history. SBI Home loan interest rates are linked to CIBIL score and start from 6.80% for loans upto Rs. 30 lakh and 6.95% for loans above Rs. 30 lakhs. Interest concessions up to 30 bps is also available in 8 metro cities for loans up to Rs 5 Crs.

Customers can also apply from the ease of their home via YONO App / https://homeloans.sbi / www.sbiloansin59minutes.com and get additional interest concession of 5 bps.

CS Setty, MD (Retail & Digital Banking), SBI said “We are pleased to improve our concessions to prospective home loan customers upto March’21. With SBI’s lowest interest on home loans, we believe this move will facilitate and encourage home buyers to take the home buying decision with confidence. With the nation all geared up to move ahead post pandemic, SBI would continue to support the home buyers and the Real Estate Sector. Further, our eligible existing home loan borrowers can also avail a paperless pre-approved Top-up  home loan through the YONO App in just a few clicks. We wish the new year brings in happiness to our customers with new offerings.”

Pune witnessed 55% rise in new residential launches in

Pune witnessed 55% rise in new residential launches in Q3; sales grew 58% sequentially: JLL

 

·         Locations like Kharadi, Hinjewadi, Wakad and Hadapsar accounted for more than 50% of the launches

·         A total of 1,344 units were sold in Q3, a 58% rise from Q2 2020

·         Home buyers preferred projects of developers with established track record

 

Pune witnessed 1,756 new unit launches in Q3 2020, an increase of 55% over the previous quarter, according to JLL Research. This strong growth was on a low base of Q2 2020 which was significantly impacted owing to the severe lockdown restriction in the wake of ongoing pandemic. Prominent locations such as Kharadi, Hinjewadi, Wakad and Hadapsar saw increased momentum and accounted for more than 50% of the launches during the quarter.

 

With economic activities gradually getting back on track, the city is likely to see a strong recovery in sales after the slump in Q2 2020. Housing sales grew by 58% on a sequential basis clocking about 1,344 units. Home buyers preferred projects from developers who have an established track record and which are closer to prominent office locations. There are also a higher number of enquiries for completed and nearing completion projects as compared to those which have recently launched. There is growing acceptance of digital platforms amongst home buyers to complete their home purchase process from raising an enquiry to making the payment through the developer’s online window.     

                  

	Q2 2020	Q3 2020	Growth (%) – Q3 2020 over Q2 2020
Launches (units)	1,135	1,756	55%
Sales (units)	851	1,344	58%

 

Source:  Real Estate Intelligence Service (JLL), 2020, JLL Research

 

 

“Pune witnessed a growth of 55% in terms of new launches over the last quarter. Developers continued to align new supply with demand and majority of these launches were in affordable and mid segments. Further the city has also witnessed healthy traction in the luxury segments which was earlier not visible ” said Sanjay Bajaj, Managing Director, Pune, JLL India. “In the subsequent quarters, the translation of demand into sales will primarily hinge on enhanced consumer confidence, which in turn depends upon the continued implementation of progressive government policies amidst the gradual revival of the Indian economy at large.” “Pertaining to residential, the scenario for Pune has improved significantly in the last few months, sales has certainly increased owing to reduction in the stamp duty by the government, low bank intrest rates, attractive schemes by builders, and competitive rates. The onset of the festive season will help drive sales, and in addition to the reasons stated above we have reached approximately 75% of sales of pre COVID levels and this quarter will see steady growth as well. Recent trends indicate projects that are near completion stage are witnessing larger traction. Buyers are purchasing assets from more renowned developers with a proven track record, added product value and ability to deliver,” he added.

 

Residential market activity all over India, is also being supported by renewed interest from NRIs in Q3 2020,  resulting in more pent up demand in the market and increased enquiries received by developers.

 

“The further easing of lockdown restrictions and the upcoming festive season might help in bringing buyers back to the market. An assessment of years to sell reveals that the expected time to liquidate stock has increased from 3.6 years in Q2 2020 to 4 years in Q3 2020. While the residential space remains unpredictable, favourable supply dynamics could deliver potential upside for both home buyers and developers in the medium-term,” said, Dr. Samantak Das, Chief Economist and Head of Research & REIS, India, JLL.

 

Focus on mid and affordable segment continues in the country

New launches were restricted with 12,654 units launched in the third quarter, a decline of 14% quarter-on-quarter. Developers focused on completion of under construction projects and clearing their existing inventory. Hyderabad and Mumbai accounted for over 60% of the total new launches in the quarter. The drop in new launches was driven by Bengaluru, which witnessed a substantial decline of over 80% as compared to Q2 2020. Development focus on mid and affordable segments continued in Q3 2020 with nearly 75% of the new launches in the sub INR 1 crore category. Moving ahead, the focus on these price segments is expected to continue with developers focusing to reap the benefits of strong pent up demand.

 

	Q2 2020 (in units)	Q3 2020 (in units)	Growth (%) – Q3 2020 over Q2 2020
Bengaluru	6,135	1,074	-82%
Chennai	182	1,487	717%
Delhi NCR	Negligible	699	-
Hyderabad	5,034	5,396	7%
Kolkata	Negligible	Negligible	-
Mumbai	2,294	2,242	-2%
Pune	1,135	1,756	55%
Total	14,780	12,654	-14%

 

 

Mumbai includes Mumbai city, Mumbai suburbs, Thane city and Navi Mumbai

Source: Real Estate Intelligence Service (REIS), JLL Research

 

Unsold inventory dips across the country

Q3 2020 witnessed sales outpacing new launches as unsold inventory across the seven markets (Mumbai, Delhi NCR, Bengaluru, Hyderabad, Chennai, Pune and Kolkata ) decreased marginally from 459,378 to 457,427 units. Mumbai and Delhi NCR together account for more than 50% of the unsold stock which are at various stages of construction.

 

	Q2 2020 (in units)	Q3 2020 (in units)	Growth (%) – Q3 2020 over Q2 2020
Aggregate (7 cities)	459,378	457,427	-0.4%

 

Top 7 cities include Delhi NCR, Mumbai, Bengaluru, Chennai, Hyderabad, Pune and Kolkata

Mumbai includes Mumbai city, Mumbai suburbs, Thane city and Navi Mumbai

Source: Real Estate Intelligence Service (REIS), JLL Research

 

Over the last few years, residential prices in most markets have remained stagnant. Developers have been operating with low margins and the chances of a significant reduction in prices is unlikely. In Q3 2020, prices remained largely stable across all the seven markets when compared to the previous quarter. However, it is important to note that developers in certain markets are providing moderate price discounts to kickstart sales, thereby facilitating cash flows to tide over the crisis in the short term. Moreover, developers are offering flexible payment schemes such as no EMIs for a year and other schemes to attract prospective homebuyers who pressed ‘pause’ in the last few months. This could be the first signs of a broader recovery of the residential market in the country.

 

NOTE: *The comparison pertains to only last two quarters since the current crisis has no parallel and has infused uncertainty which we have not witnessed in the past decades.

COVID crisis: PMO promises to

COVID crisis: PMO promises to protect homebuyers’ interest,
look into realtors issues

 

In all, 23 States have extended the RERA deadline by six months and one by nine months for completion of real estate projects as the government has taken steps to protect the interests of home buyers in view of the situation created by COVID19, the PMO said.

Stressing that the homebuyers’ interests will be protected in view of the delays in completion of projects arising out of the COVID-triggered lockdowns, the Prime Minister’s Office (PMO) has assured that the issues faced by the developer community will also be looked into.

Responding to a direct petition by a Mumbai-based NGO Samachar Foundation seeking the Prime Minister’s intervention into the real estate crisis, the PMO explained that the government has taken several measures “to ensure that projects do not get stalled due to disruptions caused by Covid19 pandemic and flats and homes get delivered to the homebuyers albeit with some delay.”

Regarding the plea to look into demands from the real estate industry for one-time debt restructuring, reduction of home loan interest rate to 5%, GST input tax credit, the PMO letter, signed by Deputy Secretary Akhil Saxena, told the petitioner that “your valuable suggestions have been noted and appropriate action will be taken.”

Expressing happiness at the prompt response from the PMO within a week of filing the petition on PM’s web site, B N Kumar, director of Samachar Foundation, said that this assurance is significant as it comes close on the heels of Finance Minister Nirmala Sitharaman’s promise that she would have “an open and fresh look” into the developers’ problems.

The petition to the PM drew his attention to developers’ body CREDAI’s online petition to him and pointed out that the pandemic of Covid-19 has compounded the difficulties already being faced by one of the key components of the economy, the real estate Industry that contributes to 7% - 8% of GDP and is the largest employment generating sector after agriculture, generating about six crore jobs.

Pointing out that the RBI has recently indicated a negative growth forecast, the petition said that real estate sector has all the capacity to revive the economy as close to 300 industries depend on it.

For the revival of the real estate industry and in turn the revival of the economy, the developers body has suggested one-time debt reconstruction, reduction of home-loan interest to 5% (or subsidising it to bring it down to that level) to empower the buyer, extension of RERA timeline for project completion to March 2021, GST Input Tax Credit to be extended for new projects and raising SWAMIH fund to be increased to 1 lakh crore.

The PMO explained in its response to Samachar Foundation that due to COVID19, the work of on-going real estate projects has halted. Large scale reverse migration of labour and huge disruption in supply chain of material, have adversely impacted the construction work. Labour is least likely to return before festivals in October - November get over. In such circumstances, real estate projects will take quite some time to resume work fully. Surely this will delay completion of projects leading to lot of litigations for non- compliance of commitments on time and make projects fail or get stressed. Hence, in order to safeguard the interest of all stake-holders, especially home buyers and to ensure delivery of houses, flats to them, Ministry advised States and RERA to invoke the force majeure clause under the law, the PMO said.

As on 18.06.2020, in all 23 States’ RERA have extended registration of projects by six months and one by nine months in view of the situation created by COVID19. As advised by Ministry, this has been done suo moto to cut down unnecessary paper work & delay. RBI has recently allowed moratorium of 6 months till 31 August, 2020 to homebuyers for payment of dues in view of Covid19. Hence, borrowers get effectively nine months to put their accounts in order without getting NPA.

These measures have been taken to ensure that projects do not get stalled due to disruptions caused by Covid19 pandemic and flats and homes get delivered to the homebuyers albeit with some delay. Homebuyers, with lifetime savings invested in dream home projects, are interested in flats and homes, not litigations or making developers get failed. The interests of homebuyers have got squarely ensured via extension. RERA is to safeguard interest of homebuyers & that has been done, the response said.

JLL partners with RoofandFloor to

JLL partners with RoofandFloor to Offer a Seamless Home-buying Experience in India

JLL has today announced a partnership with RoofandFloor, a technology driven online marketplace for homebuyers in India. Through this association both firms aim at creating a smooth journey for homebuyers as they together support project discovery, shortlisting, site visits, negotiations and bookings.

The partnership brings together JLL’s long established relationships with several top developers in the country and RoofandFloor’s tech-savvy online marketplace delivering a superior experience to high intent homebuyers. The platform showcases properties across 24 cities in India and supports buying, selling and resale. Homebuyers can now shortlist properties on RoofandFloor’s portal and be rest assured that JLL, the country’s largest real estate consultancy firm would support them through the homebuying journey.

Speaking on the development, Siva Krishnan, Managing Director, Residential Services, India, JLL, said, “We are delighted to join hands with RoofandFloor to work together and help clients navigate the home buying journey. This initiative brings together JLL’s expertise in residential real estate and RoofandFloors well-established online marketplace. It also bridges the gap between top developers and homebuyers with the support of JLL’s experienced advisors. We see this as a win-win for the homebuyer, especially now when it is the best time to buy a property as interest rates are at all-time low and attractive offers being doled out by many developers.”

“Until now, the home buying journey could be seen in two parts - First, buyers search for properties online and select a few. Then, they try to get good deals on those properties, which is a separate step. Through this collaborative effort, we want to provide an end-to-end solution that leverages cutting-edge technology and a wide network to improve the homebuying experience. The partnership makes the entire journey seamless, as it should be, by serving homebuyers across the entire spectrum,” stated Thejaswi Udupa, CTO, RoofandFloor.

JLL has the expertise to deliver the best deals in the market to homebuyers meeting their investment criteria and RoofandFloor has built a strong technology-led engine that is pivoted on understanding the homebuyer has needs and matching them with the right property to purpose. Together, both entities aim to smoothen the home buying process.