#SwachhBharat #CREDAI to launch campaign for zero garbage in the housing complexes

#SwachhBharat #CREDAI to launch campaign for zero garbage in the housing complexes pic.twitter.com/uqcg0bzhrf
— Press Release Watch (@PrReleaseWatch) November 17, 2014

The apex body’s members are expected to deliberate such initiatives at its Annual ‘CREDAI  Conclave 2014’ in New Delhi next week ,

Prime Minister, Shri Narendra Modi is expected to address the Delegates of CREDAI Conclave 2014 through an Audio Visual Link and provide CREDAI with a sense of direction on their endeavor of “Clean India- Skilled India- Strong India”.

A galaxy of dignitaries have confirmed their presence which include Shri M. Venkaiah Naidu, Union Minister of Urban Development, Housing and Urban Poverty Alleviation, Parliament Affairs, Shri P. Ashok Gajapathi Raju, Union Minister for Civil Aviation, Shri Prakash Javadekar, Union Minister for Environment and Forests, Shri Piyush Goyal, Union  Minister for Power, Coal and New & Renewable Energy , Shri Rajiv Pratap Rudy, Union Minister for Skill Development , Shri Ram Kripal Yadav, Union  Minister of Drinking Water and Sanitation.  Shri Arun Jaitley, Union Minister for Finance has also been invited and his confirmation is expected soon.          

Easing of construction #FDI by government is positive;CREDAI

Union Cabinet has eased foreign direct investment norms in India’s construction sector.The built-up area requirement for foreign direct investment (FDI) in construction projects has been reduced to 20,000 square metres from 50,000 square metres.The minimum capital requirement has also been reduced to $5 million from $10 million.The investors are permitted to exit on completion of the project or after three years from the date of final investment, subject to development of trunk infrastructure.Realty stock prices yesterday had zoomed up by nearly 9% due to easing of construction FDI by the Government.

Response from Mr Suresh Hari,Secretary, CREDAI Bengaluru


The cost of funds become expensive now. The funding from banks and other financial institutions have become slow, and banks don’t fully invest in real estate. They don’t come forward to invest in developers fully. Borrowing from other sources come at a higher cost. Availability of funds at a good price is a big challenge. Now the Government has relaxed FDI to include smaller projects also. This will kickstart economic activity in real estate sector in a bigger way and funds will be available for many developers. Real estate will be much more attractive for investment. This applies to all aspects of realty business.

The cost of funds will be more competitive. The bottomline of listed real estate companies will go up because their cost of investment will be competitive.


Till now, investment on office spaces and malls was only made in city outskirts, foreign investment was possible only into projects spread over a larger area. By easing rules for FDI into projects spread over a smaller area, the Government has opened up avenues for development opportunities within city limits. The 20,000-sq-metre requirement will now open up investment opportunities for those looking at smaller projects inside city limits.


Also, this move will also result in investor interest in smaller cities where the demand is more for smaller office or retail spaces.


Response from Mr.Suresh Kris, CFO, Brigade Enterprises Ltd.

The relaxed norms for 100 percent FDI in construction is a welcome move for the real estate industry which is cash-strapped. For developers like Brigade group, who have small land parcels which did not qualify for foreign investment till now, would benefit from this move.


With this notification, foreign investors, who were not keen to invest in larger projects, may now start investing in smaller projects.


The notification would also open up demand for land where development of less than 50,000 sq metre only is possible. It is not just the residential segment which would benefit. The relaxed FDI norms would also see investment flowing into commercial and retail spaces, and also some of the mall management companies would stand to benefit.


Doing away with the clause of 50% development to be done in 5 years from the date of approval and restriction to only a three-year lock in period will give the existing foreign investors a lot of room to exit current investments. They can now re-jig their portfolio, and many developers - small and big - would benefit from such an exercise. All these are positives that we have been awaiting for a long time.

CREDAI wants rollback of 25% cement price hike across South-India

CREDAI Karnataka in association with other organisations has presented a memorandum to the central government against the arbitrary hike in cement prices announced by the Cement Manufacturers Association (CMA). The increase has taken the price of cement from Rs 255 to Rs 315 per bag, an increase of almost 25%. “CREDAI-India will take a petition to the Central Government of India requesting that the price of cement be brought down in a week’s time, failing which - construction across all South-Indian states namely TAMIL NADU , KERELA , ANDHRA PRADHESH and KARANTAKA will be forced to be halted as prices of all apartments will have to be increased by us” said Mr. R Nagaraj, President, CREDAI Karnataka.
At the same time, four organizations – the Builder’s Association of India, Construction Federation of India, National Highways Authority of India and CREDAI will also take a presentation to the Competition Commission of India (CCI) protesting the price rise.
As a result, the cost of construction is poised to escalate pan-India, which means that the end consumer is going to be burdened with a rise in apartment costs. This price increase, CREDAI officials ascertain, has been grossly timed wrong, especially now, with the onset of the monsoons and when prices are generously supposed to be on the downtick due to the slowing of construction pace.
CREDAI acknowledges that the change in economy may result in a small change to the price of cement trading, however asserts that the input cost to the cement manufacturers does not warrant the current level of hike. Coupled with the hike in cement, is a steep increase in steel prices too. Prices have gone up from Rs 47,000 to Rs 52,000 per metric tonne.
It is the common man who will be largely burdened by this increase in prices. A majority of infrastructural projects today are done on the basis of a PPP (public-private partnership). This sharp increase in prices will in turn pass on the burden of project completion to the people, in the form of higher taxation.

CREDAI response to RBI policy

The Confederation of Real Estate Developers’ Associations of India (CREDAI) the apex body for private real estate developers in India was surprised by the RBI decision to increase the repo rates by 25bps in the recent review of the monetary policy. The step is only aimed at combating inflation but the focus on the industry growth has been ignored.
 Speaking on the occasion Mr. C Shekar Reddy President CREDAI- National said," In these challenging times RBI decision to raise the repo rates by 25bps is tougher than expected and could have been avoided. In the coming months we hope the Bankers will come out with special schemes to attract the home buyers. “
 He further added “That RBI should formulate a special policy for the housing industry with a focus on affordable   housing. We hope that RBI will take cognizance of the industry requirement and will announce a rate cut, which will provide the needed trigger and encouragement to the sector.

CREDAI Andhra Pradesh elects new Office Bearers

CREDAI Andhra Pradesh today announced its new office bearers, as part of the real estate body’s initiatives to foster better transparency and growth in the industry. The new office bearers of CREDAI Andhra Pradesh will consist of Mr. S Ram Reddy, (C.M.D, M/s SMR Holdings) as President, Mr. A Siva Reddy, MD (M/s Maheswari Builders & Promoters, Vijayawada)as Vice President,  Mr. G Ram Reddy (CMD, M/s Ark Infra Developers Pvt. Ltd) as the Hon. General Secretary, and Mr. S. Venkataramaiah, MD (M/s Sri Vasavi Builders and Developers, Kurnool) as Treasurer, CREDAI Andhra Pradesh and Mr.K.Subbaraju, MD (M/s KSR Developers, Visakhapatnam) as Chairman Advisory Committee.

Mr C. Shekar Reddy, President CREDAI, National said, “We welcome the new leadership of CREDAI Andhra Pradesh. We have debated on the road map for CREDAI - AP and will be focusing on building the customer confidence in the real estate sector. The new team comprises of industry leaders in Andhra Pradesh and I am confident that they will help us to achieve ethical and transparent operations and create positive environment for growth of required real estate activities and I wish them great success in their tenure and expecting to follow the road maps follows:

Building permission online to reduce the time of permission.
Bulk material purchase to reduce the cost of construction
Skill up gradation
To market members build-up space
CSR Activities.

Mr. S Ram Reddy President, CREDAI Andhra Pradesh, said , “Our aim is to create a synergistic approach and build confidence in the real estate industry.  In the next two years we are planning to undertake major initiatives through industry networking to promote Andhra Pradesh as an ideal investment destination for the future”

While thanking all the Chapters for electing him as the President, “Apart from the above the new team will take forward all the initiatives taken by the CREDAI National President to deliver the quality product at cost effective within the scheduled time to create affordable housing for people of Andhra Pradesh.

Mr. G Ram Reddy , Hon. General Secretary , CREDAI – AP added “ We have discussed the road map for the next 2 years for CREDAI - AP and will be focusing on development of the new property hubs in the state along with a focused effort on skill development and tracking the trends and stock for real estate in the state” also improve the brand value of CREDAI by expanding CREDAI across ANDHRA PRADESH.

CREDAI Andhra Pradesh will also take up measures that will help builders deliver projects on time. The consumer redressal cells will help address customer grievances and improve governance.    The body will also create forums to encourage dialogue between developers from all over the state including consultants, vendors, and financial institutions to come at a common platform and explore business opportunity. CREDAI AP will focus on building a better & congenial relationships to promote the growth of real estate sector in Andhra Pradesh through property shows, skill development programs and CSR activities, also creating confidence among the people of Andhra Pradesh.

About CREDAI

CREDAI is the apex body for Real Estate developers in India and CREDAI represents over 9000 developers through 134 chapters in 21 States, across the country. It also links private real estate developers to the Government and customers through numerous initiatives and activities. CREDAI’s success is in bringing a majority of organized real estate developers under a single umbrella; which holds great promise for rapid development of the realty sector touted to be a major driver of India’s economic growth. Staying true to CREDAI’s ‘model code of conduct’, the member associations have been successful in imbibing and delivering the philosophy of transparency and accountability in the realty sphere. Generating a tremendous credibility and trust factor, it has been perceived as a welcome change for serious real estate developers and real estate buyers alike. In a short span, CREDAI has also developed a tremendous reputation for successfully acting as a mediator cell to mitigate disputes between buyers and developers. So much so that today, property buyers in most metros and Tier-2 cities conduct a preliminary check to see if the developer is an accredited CREDAI member prior to investing in a project.