Latest news with #ShekharPatel
Time of India
2 days ago
- Business
- Time of India
Reforestation key in achieving net zero targets: Experts
Ahmedabad: The rapid growth of the Indian economy necessitates a balanced approach towards carbon emissions through enhanced green coverage and reforestation initiatives, according to specialists at the Green Gujarat Summit 2025. The summit, held on Friday, was jointly coordinated by the Confederation of Indian Industry (CII), Indian Green Building Council (IGBC), and Urban Development and Housing Department, Govt of Gujarat. CREDAI's national president, Shekhar Patel, emphasised the importance of promoting green building and net zero concepts amongst the public. He stated, "We need to take the green building and net zero movement to the people. India aims to become a developed nation by 2047, and growth will be faster, so there is a need to bring balance, and we can achieve it by increasing green cover. Reforestation will be key to achieving carbon neutrality, and at CREDAI, we have launched a mission to reforest 1 lakh acres in five years. We are going to nurture five crore trees." IGBC Ahmedabad's co-chairman, Taral Shah, highlighted the business advantages of green buildings, noting their popularity among multinational companies. "The state govt also started offering incentives to green buildings, which will encourage more developers to go for it. Green building construction cost is now just around 5% higher compared to normal buildings, but it helps save electricity cost in a big way," Shah added. Get the latest lifestyle updates on Times of India, along with Eid wishes , messages , and quotes !
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Business Standard
3 days ago
- Business
- Business Standard
Rate cut to revive housing demand, help affordability: Real estate industry
Housing demand should improve nationwide after the Reserve Bank of India (RBI) cut the repo rate by a larger-than-expected 50 basis points (bps) on Friday, said real estate industry executives. The rate cut comes after housing sales in top Indian cities in the first quarter of 2025 dipped 28 per cent due to skyrocketing residential property prices and geopolitical headwinds, according to Anarock. Experts believe that rate cuts of 100 bps in 2025 may lower the cost of borrowing and equated monthly instalments (EMIs) for homebuyers, as the current average home loan rates are around 8.5 per cent, which may reduce to 8 per cent once the benefit is passed on by the banks to the borrowers. Reduced EMIs are expected to improve buyer sentiment and encourage first-time homebuyers to enter the market, said Shekhar Patel, president of Credai, which represents real estate developers. 'For aspiring homebuyers, especially first-time buyers, this is a golden window to act,' said Ankit Shah, chief operating officer and chief marketing officer of Grahm Realty. Jayant Manmadkar, CFO, Brigade Enterprises, is expecting a strong uptick in residential inquiries and conversions as EMIs become more manageable for aspirational buyers. The rate cut is likely to help demand for interest-sensitive, affordable and mid-segment housing the most. In the past few years, affordable housing has suffered amid declining sales and launches. The momentum in the housing market for the past few years is concentrated in premium properties amid signals that lower segments are weakening, according to Shishir Baijal, chairman and managing director, Knight Frank India. Dr Niranjan Hiranandani, chairman, Naredco & Hiranandani Group, said, 'For the real estate sector, this rate reduction is set to bolster credit lending, accelerate buying velocity, and enhance development momentum.' According to Anarock, affordable housing sales plummeted from 38 per cent in 2019 to 18 per cent in 2024. Supplies dropped from 40 per cent to 16 per cent. 'This effectively lowers the cost of borrowing, making home loan EMIs easier on the pocket and thereby directly improving affordability for buyers. This can potentially boost demand in the Indian real estate sector, especially in affordable and mid-income segments,' said Anuj Puri, chairman of Anarock. The RBI lowered the cash reserve ratio (CRR) by 100 bps to 3 per cent — a step that is expected to help developers access more capital and complete projects on time. 'The reduction in CRR is expected to infuse significant liquidity in the banking system, which will prompt banks to lend even more,' said Pradeep Aggarwal, founder and chairman of Signature Global (India). Sanjay Dutt, MD and CEO, Tata Realty and Infrastructure, believes that in an era of rising construction costs and increased cost of doing business, the rate cut will reduce borrowing costs of developers. 'We hope the rate cut is quickly translated through reduction in Bank MCLR's resulting in reduction in the long-term borrowing costs. Surplus domestic liquidity situation has already helped reduce short-term borrowing costs significantly' Anshul Jain, chief executive of India, SEA and APAC Tenant Representation at Cushman & Wakefield, expected the lower borrowing costs to improve the viability of capital-intensive projects like global capability centres, data centres, and logistics. Samantak Das, chief economist and head – research and REIS, India at JLL, said the rate cut's impact on financial markets will likely attract institutional capital in real estate debt and equity. 'This could unlock financing mechanisms for developers, accelerating project execution and fostering a more competitive and dynamic supply landscape.' Additionally, the developers' community is expecting the rate cut to spur investments into the sector. Vimal Nadar, national director & head, research, Colliers India, believes that over the medium term, the reduction in the cost of capital is also expected to enhance investor confidence, potentially boosting activity in both residential and commercial real estate segments. However, Anarock's Puri believes that the positive impacts may be partially dampened by the global trade tensions and tariffs imposed by the Trump administration, which have increased the cost of imported construction materials and created economic uncertainty. 'We may see some impact on the demand for luxury and commercial projects, and developer margins may be squeezed.'
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Business Standard
3 days ago
- Business
- Business Standard
Repo rate cut may revive tepid housing demand, boost affordability
Real estate industry stakeholders are expecting the 50-basis-point repo rate cut by the Reserve Bank of India (RBI) to boost housing demand across India, which has been moderating over the last few quarters. The move comes at a crucial time when housing sales across top Indian cities in Q1 CY25 dipped by 28 per cent year-on-year due to skyrocketing residential prices and geopolitical headwinds, according to Anarock. Industry experts believe that the overall 1 per cent rate cut so far this year may result in a lower cost of borrowing and eventually lower equated monthly instalments (EMIs) for homebuyers. Shekhar Patel, President, Credai, believes that reduced EMIs are expected to significantly improve buyer sentiment and encourage first-time homebuyers to enter the market. 'For aspiring homebuyers, especially first-time buyers, this is a golden window to act,' said Ankit Shah, COO and CMO, Grahm Realty. The apex bank's move is likely to benefit the demand for interest-sensitive, affordable and mid-segment housing the most. In the last few years, affordable housing has been suffering amid declining sales and launches. According to Shishir Baijal, Chairman and Managing Director, Knight Frank India, over the last few years, the strong housing market momentum was increasingly concentrating in the premium end, even as there were signals of weakening in the lower segments. According to Anarock, affordable housing's sales share plummeted from 38 per cent in 2019 to 18 per cent in 2024, while its supply share dropped from 40 per cent to 16 per cent in the same period. 'This effectively lowers the cost of borrowing, making home loan EMIs easier on the pocket and thereby directly improving affordability for buyers. This can potentially boost demand in the Indian real estate sector, especially in affordable and mid-income segments,' said Anuj Puri, Chairman, Anarock. Further, a 100-basis-point cut to reduce the cash reserve ratio (CRR) to 3 per cent is also expected to help developers access more capital and achieve timely completions of their projects. 'The reduction in CRR is expected to infuse significant liquidity in the banking system, which will prompt banks to lend even more,' said Pradeep Aggarwal, Founder and Chairman, Signature Global (India). Anshul Jain, Chief Executive, India, SEA and APAC Tenant Representation, Cushman & Wakefield, is expecting the lower borrowing costs to significantly improve the viability of capital-intensive developments, particularly in high-growth sectors such as global capability centres, data centres, and the industrial and logistics segment. Meanwhile, Dr Samantak Das, Chief Economist and Head – Research and REIS, India, JLL, is anticipating a more profound impact on the financial markets, potentially attracting a fresh wave of institutional capital into real estate debt and equity. 'This could unlock financing mechanisms for developers, accelerating project execution and fostering a more competitive and dynamic supply landscape.' However, Anarock's Puri believes that the positive impacts may be partially dampened by the ongoing global trade tensions and tariffs imposed by the Trump administration, which have increased the cost of imported construction materials and created economic uncertainty. 'We may see some impact on the demand for luxury and commercial projects, and developer margins may be squeezed.'
Time of India
4 days ago
- Business
- Time of India
Realtors' bodies Credai, Naredco expect at least 25 bps cut in repo rate to boost housing demand
Realtors' apex bodies CREDAI and Naredco expect at least 25 basis points reduction in repo rate by the RBI on Friday and said it will help a lot in increasing demand for residential properties. The RBI's rate-setting panel started its three-day brainstorming on monetary policy on Wednesday, and Governor Sanjay Malhotra will announce the decision on the key benchmark lending rate on Friday morning. "We are expecting 50 basis point reduction in repo rate. This will boost housing demand to a great extent," CREDAI National President Shekhar Patel told PTI. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Experts Shocked At This New Hearing Aid Smartek Learn More Undo He said there should be at least 25 basis points cut. "Housing demand in the last three months has been a bit slow. So, the rate cut will help immensely in improving the sales," Patel said. Live Events The RBI reduced the key interest rate (repo) by 25 bps each in February and April, bringing it to 6 per cent. Naredco's National President G Hari Babu said the real estate sector always keeps a close watch on the RBI's monetary policy, as it has a significant impact on housing demand - both directly and indirectly. "In the current economic environment, where inflation is largely under control and macroeconomic indicators are showing stability, a reduction in the repo rate would be a timely and positive move. It would provide much-needed relief to both homebuyers and developers by lowering borrowing costs and easing liquidity," he said. The Naredco President noted that real estate is a vital driver of the economy, with linkages to over 200 sectors from cement and steel to furniture and furnishings. "Therefore, a cut in the repo rate will not only boost housing demand but also spur overall economic growth and generate large-scale employment," said Hari Babu. According to an assessment by the RBI, in response to the 50-basis points cut in the repo rate since February 2025, most of the banks have reduced their repo-linked external benchmark-based lending rates (EBLRs) and marginal cost of funds-based lending rate (MCLR). Housing loan outstanding has increased to Rs 30 lakh crore as on April 18, 2025, from Rs 27.41 lakh crore year-on-year, according to the latest RBI data. On expectations from monetary policy, Sterling Developers CMD Ramani Sastri said the real estate sector is hopeful for a further rate cut as it would be highly encouraging for homebuyers and developers alike. Dhruv Agarwala, Group CEO of said there is a strong case for 25 basis points rate cut. "...For the housing sector, lower home loan rates would enhance affordability and sustain demand- particularly critical at a time when we are witnessing early signs of demand tapering and developers pulling back from the affordable housing segment due to rising input costs," Agarwala said. Bengaluru-based realty firm Sanjeevini Group Chairman and Founder, Umesh Gowda H A said home loan interest rates have dropped below 8 per cent in some banks, which is a good sign of timely transmission of two repo rate cuts by the RBI. "We expect another 25 bps cut in repo rate and hope that more banks quickly pass on the benefit to borrowers," he said. This will provide a much-needed relief to not just existing homebuyers in the form of reduced EMI but also those who have been postponing their decision to buy a home, Gowda said. Ashok Kapur, Chairman of Krishna Group and Krisumi Corporation, said, "The RBI had adopted an accommodative stance in its previous policy review meeting, and it is expected that we will again see a cut, giving further relief to the various sectors of the economy." Garvit Tiwari, Director & Co-Founder of InfraMantra, said a cut in interest rate will give a spur to housing demand and encourage new entrants to make real estate purchases. Realty firm Sikka Group MD Harvinder Sikka expects a rate cut to boost consumer sentiment.
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Business Standard
16-05-2025
- Business
- Business Standard
Affordable housing cap needs rethink, says Credai's Shekhar Patel
The Credai president said that while the size limits of 60 square meters for metro cities and 90 square meters for non-metro cities were generally acceptable, the price cap was deterring developers Gulveen Aulakh New Delhi Listen to This Article With escalating housing costs, the government should reconsider the ₹45 lakh cap defined by the government for affordable housing, which was last set in 2019, said Shekhar Patel, president of the Confederation of Real Estate Developers Associations of India (Credai). 'The ₹45 lakh home in 2019 has now become ₹75 lakh, according to the Reseve Bank of India's housing price index and other data that show that the costs have escalated. There should not be a price limit,' Patel, who is also the managing director of Ahmedabad-based Ganesh Housing Corporation, told Business Standard. The Credai president said that while the
