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adProperty News For May 2010

Housing board finances in poor state
Source : The Hindu Published On : 2010-05-01 City : Kochi

The Maitri Housing Scheme has once again emerged at the topic of differences between the State government and the Kerala State Housing Board, with reports that the Local Self-Government Department is insisting that the board pay back the local bodies the money it received from them through the Annuity Deposit Scheme during 1996-98.

The deposit scheme fell under the Maitri Housing Scheme aimed at providing housing to poor people with the money provided as a one-time deposit by panchayats, municipalities and Corporations.

Sources in the board say it has received over 4.5 lakh applications for various housing programmes. However, it has been unable to settle a portion of them because of a funds crunch....

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Sbi group bucks trend real estate loans up 56%
Source : Business Line Published On : 2010-05-02 City : Mumbai

The State Bank of India group advances to commercial real estate sector jumped 56 per cent from April 2009 to December 2009 even as the overall exposure of the banking sector in the same period increased only marginally by one per cent.

The SBI group exposure to the commercial real estate sector surged to Rs 44,670 crore in December 2009 from Rs 28,717 crore in March 2009, according to a written answer to a question on banks exposure to commercial real estate given by the Minister of State for Finance in the Rajya Sabha on Thursday.

The banking sector total exposure to the real estate sector during the period increased to Rs 2,51,484 crore from Rs 2,48,530 crore....

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Realty sector welcomes pranab housing sops
Source : Business Line Published On : 2010-05-02 City : New Delhi

The Government on Thursday gave the housing sector a partial relief by lowering service tax to 2.57 per cent of an apartment cost, against the 3.3 per cent proposed in the Union Budget.

The Finance Minister also decided to exempt service tax for low-cost housing schemes under the Jawaharlal Nehru National Urban Renewal Mission and Rajiv Awas Yojana.

“It is a mixed bag. Although the service tax impact is now going to be lower than what was proposed initially, it is still unfortunate that our demand on excluding the value of land for such calculation has not been met,” said Mr Kumar Gera, Chairman of CREDAI Confederation of Real Estate Developers Associations of India....

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Massive drop in bank lending to real estate sector
Source : Business Line Published On : 2010-05-02 City : Chennai

Bank credit to the real estate sector has practically ground to a halt even as the industry launched a slew of new projects in the last six months. .

Recent Reserve Bank of India data on the flow of bank credit shows net credit inflows to the real estate sector at a measly Rs 842 crore for the 11 months ending February 2010 a massive drop compared with the Rs 33,617 crore lent during the same period up to February 2009.

The sluggish growth in credit disbursement comes in the backdrop of a good number of real-estate companies restructuring of their loans or rescheduling their repayments through a special window that was kept open by the banking industry until June 2009. Pending repayment of these restructured loans, banks appear to be refraining from increasing their exposure to this sector....

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Strengthening structures
Source : The Hindu Published On : 2010-05-01 City : Chennai

For many years, there was no classification of the earthquake zone in Chennai. Then, in 1977, it was classified under zone II. A further revision in 2001 led to it being classified under zone III.

This meant that building designs had to be altered to resist the intensity of earthquakes, as indicated in zone III. Zone classification is done based on the intensity of past earthquakes.

Therefore, buildings constructed under the old zone classifications, now need attention. Most of the Reinforced Cement Concrete RCC frame buildings, especially multi–storeyed buildings, have a ground floor primarily left for parking and other open utility areas....

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