Page 33 - Banking Finance August 2020

ARTICLE

that the default of each one of them had nothing to do with and then it just becomes the “Yatha Raja – Thatha Praja”
cash-flows, but just with their intentions. Story.

Many a borrower thinks of gypping the bank they borrow Lord Acton had got it right when he famously concluded that
from – but, and unfortunately, they do not have the political “A Society will get the leaders it deserves”.
clout these names have/had/continue to have.
The incentives to ‘manage the NPAs’ are disappearing fast
Author’s concluding remarks: – not just due to the issue of the mass attacks by the un-

As long as we have ‘auction able’ positions in PSU banks, initiated, and helped by a media that is fast turning itself
etc (there was a time not too long ago, when one could over the various hues of yellow (it almost RED, in many other
‘buy’ the MD’s position – reportedly through the ‘very genres covered – a story for another day!!) – but also the
powerful spouse’ of a ‘even more powerful FM’ and the society-at-large becoming adept at ‘quick fixes’ (not of the
transaction would even be ‘financed through agents’, thus dope kind, but on ‘closures to issues’).
tying up the incumbent to the financier’s whims!!), the
motivation to ‘play by the book’ just disappears at the MD We need to be careful of not throwing out the baby with
level, who is probably repaying his own version of an “EMI”, the bathwater. T

Demand for ready-to-move-in homes accelerates in Covid times

Demand for ready-to-move-in (RTM) property has increased in recent years due to a variety of reasons, including
project delays by multiple builders. However, in times of the current pandemic, people are showing an inclination
towards RTM homes more than ever. Last year, it was estimated that around 3 lakh RTM homes will hit the market
by the end of 2020, but as of now, there might be a slight change in the figures. However, the demand for these
homes has transformed with people ready to pay extra just to ensure that they immediately own a real estate asset.
According to 360 Realtors, one of the leading institutional channel partners, RTM sales in Delhi NCR (Gurugram and
Noida markets combined) were 3,870 units in the previous quarter (April- June), and the sales of RTM homes in the
present quarter (July- Sept) are expected to rise by 18% based on early numbers. "During the lockdown, many house-
holds realized the importance to own a home. Hence there was a healthy demand for RTM homes. Moreover, in RTM
properties one can save GST as well. However, due to attractive payment plans, under-construction projects were
also able to garner buyer's and investor's interest," says AnkitKansal, founder & MD, 360 Realtors.
With home loan interest rates at an all-time low, the situation of homebuyers has improved and they are not in a
mood to wait for property. The demand has increased due to the situation thrown at the door of the people after the
global pandemic. "People who were living in rented accommodation faced many difficulties and they realized the
importance of having their own home. Then we have the NRIs, who after witnessing the tough times abroad, are
coming forward to buy a piece of property in India that can help them have security in case of exigencies. Post-COVID,
people are more concerned about the real estate asset and are ready to pay extra if the property fulfills their set of
requirements," says Amit Modi, President (Elect) CREDAI Western UP & Director, ABA CORP.
In fact, in their last report 'Concerned yet positive - The Indian Real Estate Consumer (April - May 2020)', which was
jointly released by Housing.com and National Real Estate Development Council (NAREDCO), the majority of the con-
sumers showed an inclination towards RTMs or the projects that are near completion. A majority of respondents
surveyed (73%) comprise 'first-time homebuyers', who are looking to buy a 'ready-to-move-in-house' for end-use and
are from the age group of 25-45 years. While 60% of respondents opined that for the next six months, they would
prefer a ready-to-move-in home, 21% said they were okay with a piece of property with a delivery timeline of a
maximum one year. Dhruv Agarwala, Group CEO, Housing.com, Makaan.com & PropTiger.com, said, "Our survey
showed that potential homebuyers who were searching for flats have pressed a pause button for the time being because
of liquidity concerns and uncertainty over the COVID pandemic. But, a majority of them will gradually start returning
to the market in the coming months. This survey has established again that credible developers and ready-to-move-
in or nearing completion properties are preferred by prospective customers, who are largely end-users."

BANKING FINANCE | AUGUST | 2020 | 33