Realty News Roundup: EMIs To Come Down As Banks Cut Lending Rate; Mumbai Mulls Incentives For Green Builders

In a big relief to home and auto loan borrowers, several banks led by market leader SBI slashed lending rates by up to 0.3 per cent after RBI cut key policy rate. SBI reduced its base rate or minimum lending rate to 9.70 per cent from 9.85 per cent to be effective from June 8.  Allahabad Bank cut base rate 0.30 per cent while Dena Bank, Punjab & Sind Bank reduced their base rate by 0.25 per cent each.

Here are the other real estate related news stories of June 3, 2015:

Municipal Corporation of Mumbai has moved a proposal to incentivise environment friendly buildings where certified green buildings could get 20 per cent discount on property tax. A typical 100,000 sq ft green office building saves the occupier 30-40 lakh in a year on energy alone. Municipal Corporation of Greater Mumbai (MCGM), the civic body of the country's most expensive property market, is discussing the proposal with Indian Green Building Council.

The Punjab government has slashed collector rate in many districts aiming to energise the realty scene in the state. Chief Minister Prakash Singh Badal's turf of Bathinda got the biggest cut of 35% while Mohali Vibhor got the minimum cut. The revised rate is as follows. Mohali: 5-7%; Bathinda: 25-35%; Fazilka: 15-20%; Mansa: 15-20%; Moga: 15-20%.In the stock market, realty shares, along with banking and automobile shares witnessed steep fall amid worries that weak monsoon forecast and subdued growth could hurt sales and lead to inventory pile up. Several real estate shares crumbled with Prestige Estate Projects crashing 8 percent to Rs 258 and Indiabulls Real Estate tumbling 6.5 percent to Rs 55. Others such as Godrej Properties, DLF, Sobha Developers and HDIL ended 4-5 percent lower.

In the industry, Indiabulls Real Estate Fund (IREF) has raised 300 crore from investors for its maiden real estate fund. IREF is planning to raise a total of 1,000 crore under the first scheme of Indiabulls Alternative Investment Fund. Oberoi Realty has passed an enabling resolution for raising up to Rs 2,250 crore by issuing debentures and equity shares. L&T Infrastructure Finance Company  said it will raise up to Rs 50 crore debt by way of private placement.