Mumbai-based Lodha Group has announced its premium lifestyle project, Casa Greenwood in Amara at Thane. The project would feature facilities like decks and private gardens, bigger houses, and proximity to the two-acre forest land developed inside the community.

Price of units start at Rs 1.08 crore.

A recent report said as many as 81.5 percent survey respondents consider open spaces a ‘must-have’ in developments post COVID-19 and the focus on work-from-home.

A whopping 90.2 percent participants vouch for homes with decks or balconies and 80.1 percent are actively looking for multi-purpose usable spaces within their homes. Over three-fourths of respondents need homes that have additional space to accommodate full-time help.

With homes becoming the sole space for all activities, there is a need for extra rooms as consumers look to create activity driven arenas like a study room or workout space within their homes. Further, residences having private gardens and homes with decks/balconies are being preferred for the much needed fresh air.

The Lodha project would feature facilities like decks and private gardens, bigger houses, and proximity to the two-acre forest land developed inside the community.

What’s the deal? Along with a reduction in the booking amount and only 50 percent of stamp duty fee, the brand will reimburse the buyers’ rental expenses in Amara or outside up to Rs 30,000 per month, depending on the unit purchased, till the time of possession of their home

The project is located in Kolshet Road. It is located close to Ghodbunder Road and Eastern Express Highway. Buyers will also have accessibility to the upcoming commercial spaces in Lodha Business District.

The Supreme Court on Tuesday directed SBI Capital Markets (SBI CAP) to start the funding of six Amrapali projects in Noida and Greater Noida.

SBI CAP, as per its offer document submitted to the Court on an earlier occasion, agreed to infuse a sum of ₹995 crore in six commercially viable projects. On the aspect of interest chargeable on this loan and other related aspects, the Court posted the matter for hearing on Monday.

SBI CAP, represented by senior advocate Harish Salve, informed the apex court that as regards six projects, there was no dispute. These were Noida-based Silicon City—1&2, Crystal Homes, Heart Beat City—I, Heart Beat City - II and Greater Noida-based Centurion Park projects (Low Rise, O2 Valley, Tropical Garden).

There are 8,929 dwelling units in these six projects of which 7,658 are sold units. The combined project cost is over ₹1,600 crore of which SBI CAP proposes to invest ₹995 crore out of its stress funds.

The proposal for funding entails an interest component of 12% which was not agreeable to the Court.

Court-appointed Receiver and senior advocate R Venkatramani said, “If stress funds are meant to reduce stress on flatbuyers, can it be at 12% interest?” His view was supported by advocate ML Lahoty appearing for homebuyers who said, “Home loans are available at rates less than 8% per annum. The proposed internal rate of return on investment at 12% is harsh on homebuyers. If the Court accepts this rate, the burden should not be passed on to the homebuyers.”

Salve said, “We are taking 100% risk by funding in these projects. Flat-buyers are not paying anything more. The National Building Construction Corporation (NBCC) is not willing to take the risk. At the end of the day, we want to make profit out of this investment.”

The apex court asked Salve if something could be done at his end so that pressure could be eased off homebuyers.

Some of the largest real estate investors are walking away from debt on bad property deals, even as they raise billions of dollars for new opportunities borne of the pandemic.

The willingness of Brookfield Property Partners LP, Starwood Capital Group, Colony Capital Inc. and Blackstone Group Inc. to skip payments on commercial mortgage-backed securities backed by hotels and malls illustrates how the economic fallout from the coronavirus has devalued some real estate while also creating new targets for these cash-loaded investors.

“Just because a prior investment didn’t work out doesn’t necessarily mean that should tarnish the reputation for future endeavors,” said Alan Todd, head of US CMBS research for Bank of America Securities. “It’s not like something was done in bad faith.”

While cutting losers to buy winners is an age-old investment proposition, the Covid-19 pandemic may create even more openings than the past crises that became bonanzas for real estate investors. The mass exodus of Americans from public spaces has hammered already-weak retailers and their landlords, crippled business travel, crushed restaurants unable to fill all of their tables, and sown chaos for office towers whose tenants may never need as much space again.

Hotels and malls have been the biggest CMBS losers during the pandemic. Lodging and retail debt turned over to so-called special servicers -- workout specialists -- is at the highest level since 2010, according to industry tracker Trepp.

“They know that if they borrow from most lenders, they win if they win and they win if they lose,” said Ethan Penner, an investor who pioneered CMBS deals in the 1990s at Nomura Securities.

Starwood founder Barry Sternlicht and Colony Chairman Tom Barrack got their starts thanks to the 1980s savings and loan crisis, while Blackstone President Jon Gray traded stakes in hotels, offices and single-family homes to generate big returns through the financial crisis.

Now these firms are raising money for their next round of bets, even as they skip debt payments on old obligations.

At least 11 Brookfield malls with more than $2 billion in CMBS debt are delinquent or seeking payment relief because of Covid-19. The company has already repurchased some of its former debt at reduced prices.

“The lenders are willing to sell us their loans or the mortgages back at a discount,” Brookfield Property Chief Executive Officer Brian Kingston said during an Aug. 6 earnings call. “And so in that case we’ve been able to essentially reacquire the asset at an attractive basis.”

Brookfield Asset Management Inc., the parent of the property firm, raised $23 billion from investors in the most recent quarter, including $12 billion in new commitments for a distressed fund. Brookfield spokeswoman Kerrie McHugh declined to comment.

Hotel and retail properties represent just 13% of Blackstone’s real estate exposure and the Club Quarters mortgage is its sole delinquent CMBS.

Starwood is said to be raising $11 billion for a new opportunistic investment fund while also falling behind on payments for 17 of its 30 retail properties with almost $2 billion in CMBS debt. Management of three Starwood malls was assigned to a court-appointed receiver in April after it missed payments.

Debt on a four-mall portfolio was downgraded to junk following an appraisal that cut the property value 66% and wiped out Starwood’s equity.

“We remain committed to ensuring the best outcome possible for our investors in what has proven to be a very challenging asset class,” Starwood said in an emailed statement. “The level of uncertainty regarding tenant performance, anchor stability, capital markets and now the impact of the pandemic remains unprecedented and our strategy for these assets is evolving.”

The Supreme Court, on August 11, delivered a landmark judgment in the case of Vineeta Sharma v. Rakesh Sharma by providing equal coparcenary rights to daughters as similar to the sons in the Hindu Undivided Family (HUF) properties. This ruling will have an impact on the present and future estate and succession planning for HUFs. Here’s what you need to know about the judgment.

How does the recent judgment impact the current position of coparcenary right of daughters in HUF properties?
Daughter’s rights have been enlarged by virtue of the recent judgment of the apex court. Daughters will now have equal coparcenary rights in HUF properties even if they were born before the 2005 amendment to The Hindu Succession Act, 1956. The coparcenary right of a daughter shall not be affected even if her coparcener father demised prior to the 2005 amendment to HSA. The rights and liabilities of a coparcener son and a coparcener daughter shall henceforth, be on equal footing under the HSA.

What was the position of coparcenary right of daughters prior to the 2005 amendment to HSA?
Prior to the Hindu Succession (Amendment) Act, 2005 daughters had no claim in the ancestral property of their family. Earlier, coparcenary property was confined only to the male members of the family. On the death of a male Hindu, the interest in the ancestral property devolved by survivorship upon surviving members of the coparcenary. Post 2005 amendment, daughter’s born or adopted on or after September 9, 2005 were to be considered as a coparcener in the ancestral property and were provided with the same rights and liabilities as conferred to a coparcener son under the HSA.

3. Will the rights conferred to the daughters by the recent SC ruling would only be applicable for inheritance of coparcenary property or are they extendable to self-acquired properties of their father?
The coparcenary rights conferred to daughters by the recent SC ruling would only be applicable for inheritance of the coparcenary property. As regards to the rights of a daughter in the self-acquired property of her father, the provisions of HSA shall continue to govern.
The self-acquired property of the father would devolve either by testamentary succession or intestate succession. If a father executes a valid will as to whom the property should be bequeathed on his death, it is referred to as testamentary succession. In the absence of a valid will, the property of the father shall pass to his legal heirs by laws of intestate succession. In case of intestate succession, daughters have an equal right to father’s property as a son.

What are conditions on which the plea of oral partition of coparcenary property would be considered as valid by the court?
In accordance with the SC ruling, only in exceptional cases the plea of oral partition of coparcenary property may be considered as valid. An oral partition may be accepted to be valid if supported by public documents which should manifest the same effect as that of a decree passed by a court. Keeping in view the provisions of HSA, SC held that plea of partition based on oral evidence alone will not be accepted by the court.

Whether by virtue of this ruling, daughter, grand-daughter or great granddaughter will be equally bound to follow the obligation under the Hindu Law to discharge any such debt and can be sued by a creditor against debt contracted prior to the 2005 amendment to HSA?
After the enforcement of 2005 amendment to HSA, courts do not have the power to proceed against a son, grandson or great grandson (born or adopted prior to 2005 amendment) for the recovery of any debt due from his father, grandfather or great-grandfather on the ground of pious obligation under Hindu Law or to discharge the aforesaid debt.
However, any debt accrued towards obligation before the commencement of the 2005 amendment is liable to be discharged by a son, grandson or great grandson against the claim raised by any creditor.
By the virtue of the SC ruling, daughter, granddaughter or great granddaughter will now be equally bound to follow the pious obligation under the Hindu Law and discharge debt in relation to it. The liability of any debt accrued towards pious obligation or claim by a creditor before the commencement of 2005 amendment can be raised against such daughter, grand-daughter or great granddaughter.

Widening the ambit of inquiry into the malpractices in registration of sale deeds of properties in Haryana, the revenue department has ordered that the registrations carried out from April 3, 2017 to December 31, 2019 be probed for

violation of Section 7-A of Haryana Development and Regulation of Urban Areas (HDRUA) Act.

The broadening of the extent of probe was done at the insistence of deputy chief minister Dushyant Chautala, who holds the charge of revenue portfolio.

The fresh inquiry would start from the day (April 3, 2017) an amendment in Section 7-A was notified by the ML Khattar-led Bharatiya Janata Party (BJP) government in 2017 to water down the HDRUA Act provision.

The detection of malpractices in execution of sale deeds has cast a shadow on the functioning of the revenue department under Dushyant’s command.

By widening the ambit of inquiry, the Jannayak Janta Party leader is trying to bring the functioning of the previous BJP government under scanner.

In separate communications, additional chief secretary, revenue, Vijai Vardhan has asked the divisional commissioners of Ambala, Karnal, Rohtak, Hisar, Gurugram and Faridabad to conduct a fresh inquiry within next six weeks for property registrations done in all districts since April 3, 2017.

The cabinet meanwhile has also approved an ordinance to undo the 2017 amendment in the HDRUA Act to water down Section 7-A of the Act. With the assembly session starting next week, a Bill in this regard will be brought in the House.

The definition of notified urban area land and size of the holding for which the NoC was required is being modified. The land holding for which NoC is required is proposed to be less than one acre instead of less than two kanals and the notified urban area land definition will be changed from agricultural to vacant again. The requirement of a NoC stating that land transfer does not contravene any provisions of the Act was to prevent ill planned and haphazard construction in urban areas.

Tata Realty and Infrastructure (TRIL) is planning to list its Real Estate Investment Trust (REIT) with a portfolio of 20 million sq ft of commercial assets in the next few years.

This will be done after the portfolio is expanded from present 6.2 million sq ft to 20 million sq ft via new developments and acquisitions.

Sanjay Dutt, managing director and chief executive officer of TRIL told The Economic Times that the existing land bank has potential of 20 million sq ft commercial development in the next three to four years.

The portfolio may also include office spaces and data centre assets.

TRIL achieved close to 15 percent rental growth in FY20 from leasing its existing it 6.2 million sq ft commercial portfolio, and expects similar growth this fiscal as well, despite the COVID-19 pandemic.

Dutt noted that the June quarter saw 8 percent increase in rentals, which is expected to be 11 percent by the end of 2020.

Ongoing projects include a 1 million sq. ft development in Gurugram expected by November 2020; another 1 million sq ft in Gurugram expected by 2021; a 47-acre plot in Navi Mumbai, where 0.5 million sq ft development is expected to commence soon; and another 0.8 million sq ft is in advanced stage of pre-lease for a built-to-suit campus.

The COVID-19 pandemic has not spared any industry or business, least of all India’s real estate sector, which was struggling even before the pandemic hit. The large-scale exodus of migrant workers from large cities to their villages has caused additional stress in the real estate sector, as it relies heavily on migrant labour.

Moreover, NBFC funding for realty projects has dried up completely, which has resulted in a severe cash crunch for many developers. With labour and funds both being in short supply and coupled with the onslaught of successive lockdowns, developers are unable to complete under construction projects.

Hence, the real estate industry has requested the government to provide relief measures under the Real Estate (Regulation and Development) Act, 2016 against any penalties that might be levied for failure to complete a project on time.

Under the RERA, all real estate projects have to be registered with the respective state’s Real Estate Regulatory Authorities, and Section 6 of the RERA provides for an extension of the registration of a project due to a force majeure event for a period not exceeding one year.

On May 13, the Ministry of Housing and Urban Affairs published an advisory, under which it declared the COVID-19 pandemic as a force majeure event under Section 6, and advised the Authorities to extend the registration and completion date for real estate projects by six months. The Advisory highlighted that the RERA envisions any natural calamity affecting the regular development of a real estate project as a force majeure event.

As per the Advisory, all real estate projects whose completion dates were falling on or after March 25 qualified for the reissuance of the revised project registration certificate from the respective Authorities.

Based on this, the Authorities were advised to issue fresh project registration certificates and revise the timelines for each affected real estate project, as well as extend the timelines for meeting statutory compliances under the RERA.

In addition, the Authorities were also advised to grant a further extension of the project completion date by three months for affected real estate projects, if required, after assessing the COVID-19 pandemic situation in that state. In addition, if a promoter needs an additional extension (over and above that granted under the Advisory), then the promoter can apply for it citing force majeure under Section 6 of the RERA; however, the period of further extension is at the discretion of the Authority.

Several state Authorities have issued directions in line with the Advisory, granting an extension to the validity of projects to account for the force majeure period of six months.

The state Authorities have also issued revised project registration certificates with revised timelines for these affected projects. A few severely impacted states such as Maharashtra, Karnataka, Haryana, and Tamil Nadu have extended the time limit for statutory compliances applicable to the promoter under RERA during the entire force majeure period.

The Supreme Court ruling that daughters have equal coparcenary rights in a Hindu Undivided Family (HUF) property even if the father died before the Hindu Succession (Amendment) Act, 2005, came into force is a ‘progressive step’, and settles the ambiguity surrounding the nature and extent of a daughter’s rights to inherit the property, legal experts told Moneycontrol.

The apex court's verdict came on the issue whether the amendment to the Hindu Succession Act, 1956, granting equal rights to daughters to inherit ancestral property would have retrospective effect.

What this means is that whether with the passing of the Hindu Succession (Amendment) Act, 2005, a daughter of a coparcener shall by birth become a coparcener in her own right in the same manner as the son, or if she could be denied her share on the ground that she were born prior to the enactment of the Act on September 9, 2005, and, therefore, cannot be treated as coparcener.

“This judgment has settled the ambiguity surrounding the nature and extent of a daughter’s rights in a HUF property and thus settled a disputed question of law. This clarification was vital in setting aside the grip on previous decisions accorded coparcenary rights to daughters only if both father and daughter were alive as on September 9, 2005, when the amendment was notified,” said Sonam Chandwani, managing partner at KS Legal & Associates.

The judgement is a "welcome move" and clears all webs around a daughter's rights and interests over an HUF property.

“While clarifying that coparcenary is a birth right, the verdict confirms that a daughter cannot be deprived of the right to equality granted to her under Section 6 of the Hindu Succession Act, 1956, even in case the father expires before the 2005 amendment. The ruling aids the society at large in moving towards a more sensible conclusion and breaks free from the deadlock of the dated patriarchal system,” said Rahul Arora, partner, Trilegal.

“Finally it’s crystallised the law with respect to rights of women as coparceners and removing the inequality under succession laws that had been prevalent historically. A huge number or cases all over the country were grappling with this issue and hopefully now things can proceed expeditiously,” said Vaibhav Gaggar, managing partner, Gaggar & Associates.

A Delhi court has pulled up a subsidiary of Japanese designer lifestyle brand Miniso for non-payment of rent for leased property here during the COVID-19 lockdown, saying the company had no dearth of money and directed it to clear all arrears within seven days. The court said in its interim order that there was no dearth of money with Miniso Life Style Pvt Ltd and was successfully running business at almost 10 similar premises on rent in Delhi.

District Judge Raj Kumar Chauhan directed Miniso Life Style to pay the rent to Uma Sharma, Varun Prakash and Puneet Prakash for its rented premise at south Delhi's Greater Kailash.

The court directed the company in its August 6 order to pay the rent arrears for the lockdown as well as post lockdown period, April to July, within seven days, failing which the petitioners may take the necessary actions under law.

"The respondent (Miniso Life Style) is also doing its business in post lockdown from the tenanted premises. Even on that account also no case is made out for suspension of rent during the lockdown period and there is no justified reason with the respondent for non­payment of the rent during the post lockdown period as they are enjoying the premises and doing their business from it.

"Since no reasons have been assigned for non­-payment of rent for the post lockdown period, the payment of rent for the period will be strictly as per lease agreement between the parties. Petitioners are even entitled to the penal interest for non-payment of rent," the court said in its order.

It, however, said that the observations in the interim order were prima facie in nature and would not prejudice either party before the Arbitral Tribunal.

It further took note of the fact that Sharma was a senior citizen and the rent amount was the only source of income for her as well as for her son who was suffering from COVID-19 contagion.

Sharma and her son Varun claimed in their petition that the monthly rent of the leased out property was Rs 9,75,000 plus taxes per month, which was divided equally among the three petitioners in the case.

On March 23, the head of business development of Miniso Life Style had through an e-mail requested them to consider waiver of rent for lockdown period April and May, the petition said.

It further said that in April, Sharma agreed to waive the penal interest on the delayed payment which was 18 percent per annum.

In June, the head of the business development sent a proposal that they would be paying 70 percent of the arrears of rent for the month of April and 90 percent of the rent for June and July 2020, it added.

"Since the suspension of rent is not permissible in these facts and circumstances, respondent at the most could have sought for some postponement or relaxation in the schedule of payment owing the lockdown. This court has tried to facilitate amicable settlement of the dispute between the parties. Matter was even referred to mediation where it could not be settled," it said.

The court said that it even tried to facilitate the parties to arrive to a judicial settlement of their dispute and with the persuasion of the court the landlords (petitioners) even agreed to waive the rent for the month of April and May provided the company start making payment of the due rent for the post lockdown period from June onwards.

It noted that the company has not paid even the rent for the post lockdown period and its head of business development could not agree for settlement despite seeking adjournment for taking instruction from the higher authority of the company.

Mindspace Business Parks REIT, with an issue size of Rs 4500 crore, made its market debut on August 7, with a premium of nearly 11 per cent against its issue price of Rs 275 per unit. This, say real estate experts, may encourage more real estate developers to enter the REITs market and improve the fund flow into the sector.

The units of Mindspace Business Parks REIT owned by K Raheja and Blackstone is the second REIT to be launched in the country.

Mindspace Business Parks REIT made its market debut on August 7 and closed with a premium of over 10 per cent against its issue price of Rs 275 per unit.     The units of the REIT listed at Rs 304, reflecting a gain of 10.54 per cent from the issue price on the BSE. During the day, it touched a high of Rs 308.90, zooming 12.32 per cent. Later, it closed at Rs 303.87, up 10.49 per cent.

On the NSE, it closed at Rs 303, a gain of 10.18 per cent after debuting at Rs 302, a rise of 9.81 per cent.

Commenting on the listing, Jonathan Gray, president and chief operating officer of Blackstone, said: "Blackstone is honored to be partners with the Rahejas to help create India's second public REIT. Like Embassy last year, Mindspace has tremendous assets and a real commitment to producing shareholder value."

“Investors have demonstrated a strong interest for Mindspace REIT and this has resulted in huge over-subscription of the issue. Some of the key factors for the success of this REIT are strong developer credentials combined with positive outlook for commercial real estate, established portfolio that ensures stability of returns via rental income. This clubbed with the fact that the majority of distribution of income is by way of tax-free dividend works very well in investors’ interest,” said Ramesh Nair, CEO and country head (India) JLL.

The launch indicates the coming of age of Indian commercial real estate market story.

“It was a one REIT stock story until now. Launch of a REIT by one more player adds to the maturing of the commercial real estate listed space. With the REIT market deepening there are clearly more avenues for larger foreign institutional players like pension, retirement funds and insurance companies to deploy long-term capital in asset backed space instruments,” said Anckur Srivasttava of GenReal Advisers.

REITs are listed entities that invest in income-generating properties and distribute at least 90 percent of their income proceeds to unit-holders through dividends. After registration with SEBI, units of REITs will have to be mandatorily listed on exchanges and traded like securities.

SEBI notified REIT's regulations in 2014, allowing setting up and listing of such trusts, which are popular in some advanced markets.

The Reserve Bank of India (RBI) Governor Shaktikanta Das on August 6 announced an additional special liquidity facility of Rs 5,000 crore for National Housing Bank, a ‘much-needed’ move to relieve the real estate sector battling liquidity issues in COVID-19 times.

Das said Rs 5,000 crore will be provided to NHB and the facility will be for a period of one year to be charged at the repo rate.

A loan resolution plan, which allows for payment moratorium up to two years for corporate and personal borrowers should also provide a breather to stressed real estate developers and individual borrowers in the housing segment alike.

Das was addressing a conference to announce the outcome of the bi-monthly monetary policy committee meeting. RBI MPC unanimously voted to retain the policy repo rate at 4 percent to keeping inflation target in mind.

“It will help infuse capital into the HFCs and eventually provide relief to developers battling liquidity issues in COVID-19 times,” said Anuj Puri, chairman – ANAROCK Property Consultants.

Liquidity of Rs 5,000 crore announced to be infused into NHB will definitely aid the reeling sector to tide over the liquidity crisis. The enhanced finance flow should see developers in need of last mile funding being able to complete their stalled projects. This indicates that the fiscal measures by RBI have started showing the positive outcomes on the economy, said Niranjan Hiranandani, President, NAREDCO.

"We look forward to the recommendations of the Kamath Committee on the details for the real estate segment. We also welcome the announcement of further liquidity infusion to the tune of Rs 5000 crore to National Housing Board (NHB) which should be able to provide some relief during these times of crisis. While the sector was looking at a further revision in policy rate, to boost demand, we appreciate the accommodative stance by the RBI, in the wake of high rate of inflation which may have necessitated keeping policy rates unchanged," said Shishir Baijal, Chairman and Managing Director, Knight Frank India.

The governor revealed that real GDP of India will trend in the negative territory for the majority of FY 20 – 21, which causes concern for the real estate sector as economic growth and stability is a key ingredient for its long-term growth, he said.

Ajay Sharma, managing director, Valuation Services, Colliers International India said that with repo rate and CRR rate unchanged RBI has ensured the transmission of liquidity in system is further supported and at same time keep tight leash on headline inflation.

“This balancing act coupled with infusion of funds to NHB will benefit real estate where emphasis on project completion and value creation is paramount. The unchanged parameter will ensure the continued availability of housing loans at rates that are at historic lows in 15 years which will go further in boosting residential demand,” he said.

Experts said that the pause on rate cuts was also on the back of the previous transmission of rate cuts to consumers through mortgage loans.  In response to the cumulative rate cut of 115 bps announced since February 2020.

“Banks have already transmitted 70-90 bps in their home loan portfolio, being the fastest transmission,” said Ramesh Nair, CEO and Country Head (India), JLL.

He, however, said the one-time restructuring of loan would have given the much-needed respite to the real estate sector which has been facing headwinds due to the pandemic.

Today’s RBI policy statement is a “balanced and well-thought move in the right direction” for growth of the economy and the country. Right from additional liquidity to NBFC’s to controlling, inflation the measures announced have a balanced and accommodative stance in them,” said Jaxay Shah, chairman, CREDAI National.

"The announcement by RBI to facilitate the National Housing Bank with the liquidity of Rs 5,000 crore is an encouraging step for the housing sector which has been under immense stress since the lockdown. This move will help NBFCs and housing finance companies to lend more money to homebuyers and generate demand back in the market,” said Farshid Cooper, MD, Spenta Corporation.

"RBI focusing on augmenting liquidity with an accommodative stance with no rate cut is a smart move in terms of channelizing the demand-based macros in the economy," said Rohit Poddar, MD, Poddar Housing and Development Ltd and Joint Secretary, NAREDCO Maharashtra.

An additional special liquidity facility (ASLF) is seen as a welcome move. ASLF of Rs 5,000 crore to the National Housing Bank will provide much required cushioning for the housing finance companies to lower the home interest rates. This will translate into an upsurge in demand with a lower cost of credit to the home buyer and materialize in a likely upsurge in residential inventory offtake especially in the near onset of festivity in the country, he added.

When Prime Minister Narendra Modi will lay the foundation stone of the Ram temple in Ayodhya on August 5, along with millions of devotees, real estate players, too, will be watching the proceedings, hoping for a start in a town that holds a lot of promise for them.

Studio apartments, 1-BHK flats, second houses and starred hotels are what developers have planned for this small dusty town in Uttar Pradesh’s Faizabad district that had been a battleground of faiths for decades till the Supreme Court settled the bitter land dispute in 2019.

“We would be keen to launch service apartments and second homes in this city,” Manoj Gaur, managing director of the Gaurs Group, told Moneycontrol over the phone. “This town presents immense opportunities.”

The price of farmland has gone up more than 30 percent since the Supreme Court order, developers scouting for real estate parcels told Moneycontrol.

“An agricultural land parcel spread across an acre was available for Rs 75 lakh to Rs 1 crore before the SC order. Currently, the asking price is Rs 1.25 to Rs 1.50 crore per acre, depending on the location. Most of these are located 10 to 15 km from the temple site,” Shobhik Goyyal, member, Credai UP, and promoter of OP Chains Housings, which conducted a survey of the area, told Moneycontrol.

The top court ordered that the disputed site be given to Hindus to build a Ram temple and Muslims be allotted another piece of land to build a mosque.

Gaur and other builders are now waiting for Ayodhya’s Master Plan 2031.

““Ayodhya is in the limelight and we are in talks with the government through bodies such as PHDCCI and Credai,” Gaur said. Credai is an all-India lobby group of real estate developers.

Ayodhya is among the towns to be developed under the Atal Mission for Rejuvenation and Urban Transformation (AMRUT) that aims to provide basic amenities like water, sewerage and transport aimed at changing the face of urban India.

“The National Remote Sensing Centre has been tasked with providing satellite imagery of the town. The team is working on it. The draft plan is likely to be ready by September 2020 and the final Master Plan of Ayodhya 2031 is expected to be ready by January 2021,” Anoop Shrivastava, Chief Town and Country Planner, told Moneycontrol over the phone.

A master plan outlines developmental works expected to be carried out in an area. It demarcates land use—for residential and commercial purposes, including for hotels that Ayodhya will need in large numbers for pilgrims and workers involved in building the temple. Most of the land available right now is agricultural.

Unlike other asset classes, housing projects in holy cities have largely escaped the slowdown and the coronavirus outbreak unscathed.

Retirees or NRIs, who may want wish to spend a few months at the birthplace of Ram, will be among top property buyers in the town, say realtors.

Ayodhya has the potential to emerge as an ideal market for second homes or retirement homes.

Developers have launched several projects in holy cities such as Amritsar, Haridwar-Rishikesh, the four Hindu Dhams of Badrinath, Dwarka, Puri and Rameswaram and in South Indian temple towns of Madurai and Tirupati.

Ramandeep Singh, Alliance Residency Ltd, Credai, UP, said there was a dearth of organised real estate projects in the area. “There may also be demand from the workforce that comes to work in this area going forward besides demand for pilgrimage housing. Most of the land right now is held by the Akharas.” Akharas are Hindu monastic groups.

Also, most of the agricultural land parcels are 10 to 15 km away from the temple site. “Two five-star hotels have already been signed up. We are hoping that five more would come up in the area besides 20 odd three to 4-star hotels,” said Goyyal of  Credai UP.

Once the Master Plan is in place, developers foresee a demand for studio apartments or 1-BHK units.

“In the next five to seven years, one may see demand for at least 5,000 units in the range of Rs 15 lakh to Rs 30 lakh in this area, with maximum demand coming in from devotees. More than 15 developers have already shown interest,” he said.

The town would also need a massive infrastructure upgrade, said Shobhit Dass, president, Credai, UP. “There is not a single branded hotel in the area, only dharmshalas. Senior living housing could also come up in this area,” he said.

“We are all waiting for the master plan to be ready and once it is in place, the entire area is expected to be opened up for development,” he adds.