Easier ECB norms to create more affordable housing: Crisil
RBI lowered the total experience of developers or builders for affordable housing projects to 3 years, against 5 years prescribed earlier to avail of ECBs
Jun 27, 2013
Source : The Economic Times

 

MUMBAI: The easing of fund-raising norms through the external commercial borrowing (ECB) route will lead to developers focusing on low-cost housing projects, says rating agency Crisil.

Earlier this week, RBI lowered the total experience of developers or builders for affordable housing projects to 3 years, against 5 years prescribed earlier to avail of ECBs.

Besides, the apex bank has also withdrawn the condition of minimum paid-up capital requirement of not less than Rs 50 crore for housing finance companies (HFCs) to avail of ECBs.

"Both, housing finance companies and developers, are the direct beneficiaries while home buyers will also benefit in terms of concessional interest rates and greater availability of low-cost homes," CrisilBSE -0.03 % said in a report.

Crisil estimates that the cost of funding for developers will come down to around 9-11 per cent (taking into account the hedging cost) from the current levels of 15-20 per cent, depending on the current source of funds.

"In addition to the cost of funds, since the criteria of past experience has been relaxed, relatively less experienced developers will also benefit as it will enable them to launch new projects in the affordable housing segment," it said.

 

Latest Realty News

Pune’s new ‘green living’ is a fast-emerging concept
Jun 27, 2013
PUNE: Over the last decade, people’s lifestyles have evolved into an important and often decisive factor in the Indian real estate industry. With the increasing presence of the IT/ITeS sector in many cities of the country, a large segment of Indian home buyers have entered a higher level of affordability and therefore, tastes in homes. This has led to a greater emphasis on larger sizes, evolved ambience and interior décor in the choice of properties.
CBDs-SBDs in Mumbai suburbs paving way for ‘walk-to-work’ culture
Jun 27, 2013
MUMBAI: Mumbai has a deeply ingrained work culture, of a magnitude that other mega-cities like Manhattan and Tokyo have. Its citizens tend to attribute ultimate location values to homes that are within reasonable commuting distance from their work places. In this island city, a home close to the CBD or SBD is a premium offering in the residential real Estate market. In fact, the prices get more out of reach as one closes in on the central areas of the city. It doesn’t necessarily have anything t
Mumbai : New system may allow ready reckoner rates to be revised
Jun 27, 2013
MUMBAI: After receiving complaints on discrepancies in the ready reckoner rates in Mumbai and other parts of the state, the government on Wednesday said it would review the system to determine real estate prices, and also introduce an option of revising them after they are published.
‘Housing Regulator Bill ignores ground realities’
Jun 27, 2013
MUMBAI: Even though the Real Estate (Regulation and Development) Bill is expected to bring in transparency, it also brings with it challenges like timely project clearance which need to be addressed first, consultancy firm Jone Lang LaSalle has said.
JNPT asked to wind up new office at World Trade Centre
Jun 27, 2013
MUMBAI: The Government has asked Jawaharlal Nehru Port Trust, which manages India’s biggest container port, to wind up its new posh city office .
Reliance building on real estate interests in Kenya
Jun 27, 2013
MUMBAI: Reliance Industries is expanding its presence in the real estate sector in Africa.In its second major foray, the Mukesh Ambani-owned Reliance Industries has acquired 10 prime plots of land in Kenya’s capital, Nairobi, for around Rs 202 crore ($33.9 million).
Two-Day Road Show of DAMAC Properties in Delhi and Mumbai
Jun 27, 2013
MUMBAI: DAMAC Properties, the largest private developer of luxury real estate in the Middle East, is beginning a two-day road show in Delhi and Mumbai to showcase the latest luxury living in Dubai.
Exit low building clusters, enter skyscrapers at Girgaum and Parel
Jun 26, 2013
MUMBAI: The skyline is set for a drastic change with the high-power committee for cluster redevelopment giving the go-ahead to two projects at Girgaum and Parel each. All low-rises here would be mowed down to make way for skyscrapers.
‘Housing Regulator Bill ignores ground realities’
Jun 26, 2013
MUMBAI: Even though the Real Estate (Regulation and Development) Bill is expected to bring in transparency, it also brings with it challenges like timely project clearance which need to be addressed first, consultancy firm Jone Lang LaSalle has said.
PMC will start collecting 2 per cent fine on property tax dues
Jun 26, 2013
PUNE: The Pune Municipal Corporation (PMC) will start collecting 2 per cent fine on property tax dues from July 1.

Latest Realty News Of State

Realty Talk's