Delhi NCR real estate market hit by NBFC liquidity crisis, Bengaluru thrives
5 years, 11 months ago

Delhi NCR real estate market hit by NBFC liquidity crisis, Bengaluru thrives

Live Mint  

Bengaluru: The NBFC liquidity crisis has impacted some real estate markets more than others, delaying the possibility of an early recovery. For instance, non-banking financial companies, or NBFCs, have been a key source of funding for builders in Delhi NCR, India’s largest property market, but given the slow sales, developers are finding it tough to maintain the pace of construction, plan launches or repay loans. Shakti Nath, chairman and managing director of Noida-based Logix Group, said raising money from NBFCs has been difficult, and it hasn’t helped that banks are also not bullish in lending to real estate firms. In the real estate sector, under-construction projects were earlier funded by customer advances, but with buyers staying away, particularly in markets such as Delhi NCR and Mumbai, completing projects has been tough.

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History of this topic

New infra corridors spark a flurry of land deals in the Bengaluru real estate market in 2024
2 weeks, 2 days ago

New infra corridors spark a flurry of land deals in the Bengaluru real estate market in 2024

Hindustan Times  

Post-Covid, Bengaluru has become a bustling metropolis, with several MNCs and startups constantly expanding their commercial portfolio. Here are the top 5 land deals transacted in the Bengaluru real estate market 1) In July, Bengaluru-based real estate developer Puravankara Ltd acquired a 7.26-acre land parcel in the Hebbagodi suburb of Bengaluru to develop a luxury residential project worth over ₹900 …

64% of HNI investors prefer fractional ownership model to invest in commercial real estate
8 months, 3 weeks ago

64% of HNI investors prefer fractional ownership model to invest in commercial real estate

Hindustan Times  

As many as 60% investors and 64% of high net worth individuals prefer the fractional ownership model to invest in commercial real estate and have expressed increased confidence in the framework following regulatory support from SEBI, a survey by WiseX, a neo-realty investment platform shows. As many as 60% investors and 64% of high net worth individuals prefer the fractional …

Mumbai real estate market: Here’s why listed realtors are making a beeline for redevelopment projects
10 months, 3 weeks ago

Mumbai real estate market: Here’s why listed realtors are making a beeline for redevelopment projects

Hindustan Times  

The Mumbai real estate market has of late been witnessing a surge in housing society redevelopment projects with several listed developers picking up old buildings in the land starved city to redevelop them into modern apartments. Mumbai real estate market: Mumbai has of late been witnessing a surge in housing society redevelopment projects with several listed real estate developers picking …

Nearly 2.5 lakh homebuyers to benefit as Amitabh Kant committee recommendations get UP govt nod
1 year ago

Nearly 2.5 lakh homebuyers to benefit as Amitabh Kant committee recommendations get UP govt nod

Hindustan Times  

The Uttar Pradesh Cabinet on December 19 approved the recommendations of Amitabh Kant committee on delayed real estate projects, bringing relief to lakhs of aggrieved homebuyers who have been waiting to receive possession of their homes, some of which are stuck for more than a decade. The Uttar Pradesh Cabinet on December 19 approved the recommendations of Amitabh Kant committee …

Real estate in Delhi-NCR to grow exponentially in 2023: Report
1 year, 10 months ago

Real estate in Delhi-NCR to grow exponentially in 2023: Report

Hindustan Times  

The real estate market in Delhi-NCR is expected to grow exponentially in 2023, with some interesting trends shaping the future of Delhi, Gurgaon, Noida and the periphery areas that are all gaining traction like never before. Real estate continues to be the best investment option in Delhi-NCR, with approximately 40 per cent preferring it over other investment options. One of …

Home truth: NCR's unsold inventory dips 26% since RERA, shows data
3 years, 5 months ago

Home truth: NCR's unsold inventory dips 26% since RERA, shows data

Business Standard  

Home truth: NCR's unsold inventory dips 26% since RERA, shows data While it continues to take the strain of 328,000 stalled units launched before 2015, unsold units since early-2016 have come down 26 per cent Premium With the exit of 15 local players since 2015, new launches, too, have dropped 73 per cent. Arnab Dutta New Delhi The vast residential …

KKR to step up real estate financing
4 years, 2 months ago

KKR to step up real estate financing

Live Mint  

Bengaluru: Real estate focused non-banking financial company KKR India Asset Finance Ltd is stepping up lending even as overall financing to the sector remains subdued, said a top executive. We also think that the residential market will continue to bottom out and stage recovery in the next few quarters, thereby presenting a good risk-return proposition for investors,” Yesh Nadkarni, MD, …

Sell unsold units at 'no-profit-no-loss' to save interest, boost liquidity: Nitin Gadkari to real estate developers
4 years, 8 months ago

Sell unsold units at 'no-profit-no-loss' to save interest, boost liquidity: Nitin Gadkari to real estate developers

Firstpost  

Union Minister Nitin Gadkari on Wednesday exhorted real estate players to sell unsold housing units, even at no-profit-no-loss, to boost their liquidity condition and save interest cost on loans New Delhi: Union Minister Nitin Gadkari on Wednesday exhorted real estate players to sell unsold housing units, even at no-profit-no-loss, to boost their liquidity condition and save interest cost on loans. …

RBI ensures liquidity support to NBFCs
4 years, 8 months ago

RBI ensures liquidity support to NBFCs

The Hindu  

The Reserve Bank of India has announced a host of measures to provide liquidity support to the non-banking finance companies, apart from giving them certain benefits for loans extended to the commercial real estate sector. To begin with, the banking regulator said banks to have to invest the funds availed under targeted long term repo operations, in investment grade bonds, …

Amid stress in realty, large builders lap up prime plots in distress sales
4 years, 10 months ago

Amid stress in realty, large builders lap up prime plots in distress sales

Live Mint  

Large developers and business groups are finding the continuing stress in the realty market an opportune time to buy up land banks for future expansion, with several prime land parcels up for sale at discounted rates and attractive terms. As several distressed land owners and real estate firms try to get rid of large land parcels in prime areas to …

Budget 2020: Real estate sector urges govt to provide infra status; boost demand to address liquidity, stress issues
4 years, 11 months ago

Budget 2020: Real estate sector urges govt to provide infra status; boost demand to address liquidity, stress issues

Firstpost  

The realty industry is looking to draw the government’s attention towards needs to take steps to boost liquidity, lower stamp duty, incentivise rental housing and affordable segment, rationalise taxation and lower home loan interest rates. Ketan Musale, Director, Dotcom Realty The real estate sector is very optimistic about the upcoming Budget in 2020 as we hope that it will include …

Opinion | Budget 2020 wish list: More freedom for NBFCs to revive demand
4 years, 11 months ago

Opinion | Budget 2020 wish list: More freedom for NBFCs to revive demand

Live Mint  

Non-banking finance companies play an important role in providing credit access to businesses and individuals across the spectrum. The increase in the ₹2 lakh tax rebate on housing loan interest rates under Section 24 of the Income Tax Act, will encourage demand for housing, especially in the affordable and mid-segment categories. Allow strong NBFCs/ HFCs to access public deposits: Large …

India facing 'Great Slowdown', economy headed to ICU, says former CEA Arvind Subramanian
5 years ago

India facing 'Great Slowdown', economy headed to ICU, says former CEA Arvind Subramanian

Firstpost  

India is facing a “Great Slowdown” with its economy headed for intensive care unit primarily due to a “second wave” of the twin balance sheet crisis at banks, former Chief Economic Adviser Arvind Subramanian has said New Delhi: India is facing a “Great Slowdown” with its economy headed for intensive care unit primarily due to a “second wave” of the …

Putting out spreading fires: Raghuram Rajan's cure for real estate, NBFC sectors
5 years, 1 month ago

Putting out spreading fires: Raghuram Rajan's cure for real estate, NBFC sectors

India Today  

Noted economist Raghuram Rajan has laid out a detailed plan for the recovery of the stressed real estate sector and non-banking financial companies, which are its key lenders. Rajan, a former Reserve Bank of India governor, said both real estate sector and NBFCs are in deep trouble and pouring in fresh capital may not help in any improvement. "Instead of …

Property market set for modest lift from government measures: Analysts
5 years, 1 month ago

Property market set for modest lift from government measures: Analysts

Live Mint  

India's housing market, burdened with unfinished projects as developers struggle to get cash, is forecast to rebound modestly over the coming year on government plans to unclog the market, a Reuters poll of analysts found. Financing options, including banks and non-banking financial companies, have dried out and investors prefer commercial real estate," said Anuj Puri, chairman of ANAROCK Property Consultants, …

Nearly 60,000 unsold flats in NCR in affordable category: Report
5 years, 3 months ago

Nearly 60,000 unsold flats in NCR in affordable category: Report

Live Mint  

Unsold housing units in Noida, Greater Noida and Gurugram stood at nearly 1.09 lakh at the end of July, of which 54% were priced at ₹45 lakh and below, according to property brokerage PropTiger. With fall in interest rates on home loans and additional tax deduction of ₹1.5 lakh on interest for flats up to ₹45 lakh, Proptiger expects that …

Realty bites: Indian property slump leaves beleaguered banks exposed
5 years, 3 months ago

Realty bites: Indian property slump leaves beleaguered banks exposed

Live Mint  

India might have thought the worst of a bad loans crisis was past, but a severe cash crunch in the real estate industry could augur fresh strife for its banks. If three-quarters of the high-risk category of outstanding real estate loans is not repaid, that could lead to additional bad debt of $15 billion on banks' books in the next …

Central bank opens liquidity tap to help stressed shadow banks
5 years, 5 months ago

Central bank opens liquidity tap to help stressed shadow banks

Live Mint  

The Reserve Bank of India on Wednesday announced two key measures to help stressed non-banking financial companies raise funds from banks. “Under the revised guidelines on large exposure framework that came into effect from 1 April 2019, a bank’s exposure to a single NBFC is restricted to 15% of its Tier I capital, while for entities in the other sectors, …

Investment flow into real estate drops 31% to $2.2 bn during January-June driven by liquidity crisis in NBFCs: Anarock
5 years, 5 months ago

Investment flow into real estate drops 31% to $2.2 bn during January-June driven by liquidity crisis in NBFCs: Anarock

Firstpost  

Out of the total $2.2 billion of inflows, commercial real estate attracted the lion’s share at 64 percent amounting to over $1.4 billion. New Delhi: Investment flow into real estate fell 31 percent to $2.2 billion during the first half of this year, mainly due to liquidity crisis in NBFC, according to property consultant Anarock. “A majority government at the …

NBFC crisis: Liquidity steps for non-banking finance companies too little, too short-term, says Fitch report
5 years, 5 months ago

NBFC crisis: Liquidity steps for non-banking finance companies too little, too short-term, says Fitch report

Firstpost  

Mumbai: The government measures to provide partial credit guarantee to public sector bank on their asset purchases from NBFCs can ease funding pressure only for the short-term, says a report. In the budget, the government had said for purchase of high-rated pooled assets of financially-sound NBFCs, amounting to Rs 1 trillion during the current financial year, it will provide a …

To solve the liquidity crisis, RBI should make banks lend more to NBFCs
5 years, 6 months ago

To solve the liquidity crisis, RBI should make banks lend more to NBFCs

Hindustan Times  

In the immediate liquidity crisis, good Non-Bank Financial Companies should be able to raise debt capital, but this is not always happening. If the real estate company is itself under financial stress, and does not have the money to complete its project, the assets on the balance sheet of the NBFC start looking bad. Suppose the real estate company needed …

Real estate shows recovery signs, housing sales rise 50% in 2018; year-end liquidity crunch limits strong growth
6 years ago

Real estate shows recovery signs, housing sales rise 50% in 2018; year-end liquidity crunch limits strong growth

Firstpost  

Property developers and consultants expect housing sales to remain subdued in the first half of 2019 due to the continuing NBFC liquidity crisis and upcoming general elections. New Delhi: Showing signs of recovery, the real estate sector saw almost 50 percent surge in housing sales in 2018 across major cities on stable rates and demand for affordable flats, but year-end …

Real Estate: Housing sales rise 50% in 2018, but liquidity crunch limits recovery
6 years ago

Real Estate: Housing sales rise 50% in 2018, but liquidity crunch limits recovery

Live Mint  

New Delhi: Showing signs of recovery, the real estate sector saw almost 50 per cent surge in housing sales in 2018 across major cities on stable rates and demand for affordable flats, but year-end liquidity crisis dashed hopes of a strong growth while homebuyers remained a worried lot over delayed delivery. However, sales may surge in the second half if …

NBFC-led India liquidity crisis may nip green shoots in real estate
6 years, 1 month ago

NBFC-led India liquidity crisis may nip green shoots in real estate

Live Mint  

The liquidity crisis faced by non-banking financial companies has triggered concerns for property developers. After all, commercial real estate and housing sectors comprise nearly two-fifths of the total NBFC portfolio. After banks trimmed their lending to the real estate sector in the past couple of years, developers received nearly half of their funding from NBFCs. Motilal Oswal Financial Services Ltd …

Govt says some NBFCs face liquidity stress, puts pressure on RBI to ease
6 years, 2 months ago

Govt says some NBFCs face liquidity stress, puts pressure on RBI to ease

Live Mint  

New Delhi: A top Indian government official on Monday said the nation’s non-banking housing finance companies were facing liquidity stress, in comments that are likely to put more pressure on the Indian central bank to ease its policy towards the sector. The intervention by Corporate Affairs Secretary Injeti Srinivas came after Finance Minister Arun Jaitley and other government officials raised …

Investors continue to dump NBFC, housing finance stocks tank up to 9% on persistent worries over liquidity constraints
6 years, 3 months ago

Investors continue to dump NBFC, housing finance stocks tank up to 9% on persistent worries over liquidity constraints

Firstpost  

Liquidity concerns in the NBFC space have hit investor sentiment of late, with shares of many of these companies tumbling sharply. New Delhi: Shares of NBFC and housing finance firms continued to witness selling pressure Friday, falling up to 9 percent on persistent worries over liquidity constraints. The scrip of Indiabulls Housing Finance plunged 8.91 percent, Reliance Home Finance 8.43 …

NBFC, housing finance stocks continue to slide on worries over liquidity constraints
6 years, 3 months ago

NBFC, housing finance stocks continue to slide on worries over liquidity constraints

Firstpost  

Shares of housing finance and NBFC companies had dropped as much as 23.5 percent on Tuesday, led by DHFL, on fears of a liquidity crisis. New Delhi: Shares of NBFC and housing finance firms continued to trade weak Thursday, plunging by up to 8.5 percent on worries over liquidity constraints. Can Fin Homes plunged 8.48 percent, PNB Housing Finance 7.29 …

NBFCs lose over ₹ 75,000 crore in 2 sessions on liquidity fears
6 years, 3 months ago

NBFCs lose over ₹ 75,000 crore in 2 sessions on liquidity fears

Live Mint  

Mumbai: India’s top 15 non-banking finance companies have together lost over ₹ 75,000 crore in the last two trading sessions on fears of a financial crunch in the sector. Across Friday and Monday, Housing Development and Finance Corp. Ltd lost around ₹ 18,600 crore, Bajaj Finance Ltd around ₹ 13,800 crore and Bajaj Finserv Ltd ₹ 4,200 crore. The other …

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