The Economic Times
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| 19 January, 2021, 05:03 PM IST | E-Paper

    Covid impact on real estate and how Budget can help revive the sector

    In March 2020, real estate developers were sitting on inventory that would take roughly 15 quarters to clear.

    Tech firms spur rebound in India office leasing from decade low

    The technology sector dominated with 41% of total leasings across the second half of 2020 with Bengaluru, known as India’s Silicon Valley, seeing transactions rise 8% during the period from the previous year.

    Invest in auto, real estate sectors via ancillaries

    Some of the auto and real estate ancillaries hold promise and valuation comfort., says Daljeet Singh Kohli.

    Residential real estate sales yet to reach pre-coronavirus levels, says PropEquity report

    According to the report, sales of home units in top 7 cities in India increased by 20% in October 2020 to 27,061 units versus 22,469 units in September 2020 but is less than 29,347 units sold in October 2019.

    What to look for in real estate and financial stocks

    We are seeing signs of a turnaround in the real estate space primarily because of consolidation, says Shibani Sircar Kurian.

    Coronavirus Impact: Housing demand may decline 40% year-on-year in FY21, says India Ratings

    Market consolidation continued in the favour of grade I players. While sales have declined overall during the first half of 2020-21, grade-I residential developers witnessed a lower on-year decline in sales of 13%. Pre-sales for the top 10 listed players during the period stood at 12.3 million sq ft.

    Real estate sector seeks input tax credit on development of leased commercial properties

    In its Budget recommendation for the 2021-22 fiscal year, industry body CII has demanded that Section 16 read with Section 17(5) of the CGST Act should be amended to enable the real estate players to avail ITC (input tax credit) on procurement of goods and services during the construction phase where the said immovable property is intended for commercial leasing or renting.

    Commercial leasing expected to reach pre-Covid level in next two-three quarters: DLF

    “India has global comparative advantage in terms of a very large English speaking, tech educated population below the age of 30. India also has a global cost advantage of the above talent pool in terms of low wage costs. The real estate costs add to this advantage,” said Sriram Khattar, managing director-rental business, DLF.

    Ariana Grande announces engagement to real-estate agent Dalton Gomez

    The singer and Gomez started dating in January.

    Motilal Oswal Real Estate to raise Rs 800 crore through fifth property fund

    While the last three funds -- IREF II, IREF III and IREF IV -- focused on early-stage investments, IREF V will focus on extending construction finance to realty projects in a post-approval stage.

    COVID-19 increases demand for residential properties in suburbs

    In the wake of the pandemic, many companies have mentioned that their employees would continue to work from home until June 2021. Consequently, homebuyers are looking to buy properties that are not only more spacious but also located in less populated areas, irrespective of their distance from the workplace.

    Choked by Covid: Industries that lost ground in 2020

    In 2020 deserted office buildings, empty restaurants and sparsely-populated gyms became a common scene. Here's a look at the industries that lost ground in 2020

    MoS Hardeep Singh Puri agrees to set up central database for Real Estate Regulatory Authority

    The minister also talked about how the important changes of covering ongoing and commercial projects mar reducing the threshold to bring it under the ambit of RERA, were incorporated by the Modi government as it was not there in the original bill introduced in 2013.

    Mumbai, Pune drive residential property sales in December quarter, cushion lockdown impact on sector

    Registration of residential sales in the financial capital rose 53% from a year earlier to 9,827 deals in the first 18 days of December, surpassing the number for the entire November, which also logged the highest in eight years.

    Mumbai, Pune drive residential property sales in December quarter, cushion lockdown impact on sector

    Registration of residential sales in the financial capital rose 53% from a year earlier to 9,827 deals in the first 18 days of December, surpassing the number for the entire November, which also logged the highest in eight years.

    5 signs that this beaten-down sector may emerge the hottest one in 2021

    Macro data and early numbers reported by the real estate companies suggest a recovery is on the cards.

    Real estate platform NoBroker looks to increase headcount by 500

    The strategic recruitment will help the company identify and cater to the evolving real estate customers' needs and provide them with access to tech-enabled real estate services, he said. The company has recently launched services in five new cities and is looking to expand to 50 cities over the next six months.

    How to evaluate various real estate offers

    To arrive at the actual impact in just one number, you need to see how each of these offers work. For example, offers like waiver of stamp duty, registration charges, GST, etc are straightforward savings that can be calculated easily.

    Hello 2021: Money resolutions for a financially healthy new year

    Coronavirus has not gone from our lives so the learnings from it should not go either, as we enter the new year. Five experts give us financial resolutions to set the money ball rolling into 2021. They also shed light on some crucial learnings from 2020. Watch now.Hello 2021: Money resolutions for a financially healthy new year

    Ten ways coronavirus has changed the world economy

    Here is an overview of some of the transformations.

    To avoid getting stuck in a real estate trap, younger generation should follow these 3 home buying rules

    Buy just one house in which you will live, and which will save you rent. Do not even think of buying more just for investment. No matter how much you’d love a fancy house and how great the hype, the EMI should not be more than one third of your family income.

    How much money you will save after 50% cut in premiums in Maharashtra

    The reduction is likely to result in around 7% reduction in all-in prices in Mumbai. The all-in prices in the rest of the state are likely to decline by about 2.8% and the overall impact on demand is likely to be correspondingly lower.

    Coronavirus impact: Demand for houses in tier II and III cities accelerates

    Leading developers like DLF, Emami Realty, ATS, Omaxe and Alpha Corp have shifted focus towards smaller cities to monetise the land banks they had held for long.

    One year, 400,000 coronavirus deaths: How the U.S. guaranteed its own failure

    For nearly the entire pandemic, political polarization and a rejection of science have stymied the United States’ ability to control the coronavirus. That has been clearest and most damaging at the federal level, where Trump claimed that the virus would “disappear".

    PE investment in real estate to drop 31% at $4.6 billion in 2020; $6 billion seen next year

    During the last one decade, Savills said the real estate investments have followed an overall segmental pattern in the last decade - residential in the early phase, commercial and warehousing in the middle and alternate segments lately.

    India’s growth as R&D hub to drive demand for commercial real estate: Report

    By financial year 2022, engineering R&D revenues are estimated to register a compound annual growth of around 8% with multinationals driving growth across products and services, said property consultant Cushman & Wakefield.

    Alibag is the plush WFH destination for well-heeled Mumbaikars in this pandemic

    When the city began to close in on them during the Covid-19 pandemic, some of the well-heeled Mumbaikars fled, lugging work and family, to the quiet stretches of the coastal town 'Alibag'.

    Rental housing to lead revival of residential segment in 2021: Experts

    With housing sales reaching to a decadal low, experts said that rental housing is a way forward and government has to step in wholeheartedly to save the sector.

    Ten ways Covid-19 has changed the world economy forever

    Measured by output, the world economy is well on the way to recovery from a slump the likes of which barely any of its 7.7 billion people have seen in their lifetimes. Vaccines should accelerate the rebound in 2021. But other legacies of Covid-19 will shape global growth for years to come.

    Coronavirus seeps into TV plots. 'Grey's Anatomy', 'This Is Us' to weave impact of pandemic into storylines

    Other medical shows like ABC's 'The Good Doctor' have already tackled the virus.

    Construction ban will derail recovery of real estate sector, say developers

    On November 4 last year, the tribunal had banned construction activity in the NCR citing poor air quality and the ban was fully lifted only in mid-February, which delayed project deliveries to buyers.

    No vaccine, no entry! Is it possible for offices to allow only vaccinated employees resume work?

    Mandating vaccines would be especially important to help protect workers in minority.

    COVID-19 impact: Homebuyers prefer ready projects; southern cities lead completions

    The low proportion of completed projects in total unsold inventory is indicating this preference. Out of total 792,490 completed projects that were launched between 2013 and the recently concluded September quarter across India, around 90% have already been sold, showed data from ANAROCK Property Consultants.

    Indian real estate sector headed for major consolidation

    Currently, top developers in the country account for merely 6-8% of the overall country sales and 9-12% of the market share in the key cities—leaving a lot more headroom to increase their market share, as several of their peers look to exit the business of real estate development.

    Most investors upbeat about investing in the commercial real estate market, says report

    The brokerage firm said that COVID-19 pandemic and the subsequent lockdown impacted the entire Q2'2020 for the commercial realty leasing, the tenant-landlord discussions centred on business continuity planning and cost optimization measures.

    Demand for second home sees a surge amid pandemic

    With prices as low as Rs 12 lakh, people are investing in Haridwar, Dehradun, Rishikesh, and towns like Shimla and Solan in Himachal Pradeshand Dapoli, a coastal city which is a five-hour drive away from Mumbai and Pune.

    New deal-making real estate platform transforming capital markets post-COVID-19

    Launched in March 2020, in response to the challenges created by COVID-19, the GRI eCommunity platform brings together commercial real estate leaders from around the world to source capital, network and facilitate remote deal making thanks to a combination of global data sets, data analysis and technology.

    The very real problem of "she-cession" and what Nirmala Sitharaman can do to undo it

    Almost 17 million women lost their jobs in the first month of lockdown alone, data released by the CMIE showed.

    Citizen Trump: What will Donald Trump do after White House? President's next steps explained

    In the near term and possibly longer, Trump’s post-presidential options will be circumscribed by the fallout over his Jan. 6 speech egging on the crowd that would go on to storm the U.S. Capitol, including a historic second impeachment. If he’s convicted at the upcoming Senate trial, he’ll almost certainly be barred from ever running for federal office again.

    Coronavirus impact: Queen Elizabeth to miss family Christmas celebrations, to stay in self-isolation

    The queen moved from her official residence in the British capital to Windsor on March 19.

    Global funds, realtors approach govt for input tax credit on commercial leasing

    Global institutional investors and realty developers with exposure to commercial real estate including office and warehousing projects have approached the government seeking input tax credit for leasing activity.

    Realtors under Indirect tax department lens for not paying GST on common parking plots

    The tax department would want the real estate developers to pay up GST, fine and interest that would run into crores of rupees, say industry trackers.This could also lead to litigation.

    India's corporate real estate occupiers confident about COVID-19 recovery

    CRE leaders are also (re)imagining the new modern office, with a focus on prioritizing the health and wellness of employees, as well as leveraging technology in their investment plans, said the report by JLL. Concurrently, most polled CRE leaders in India expect total footprint and number of sites that they maintain to remain the same or even increase.

    Bill Gates, the coronavirus and the quest to vaccinate the world

    If the initiative, aided by Gates’ fortune and focus, manages to help protect the world’s poor from a virus that has already killed more than 1.3 million people, it will affirm the strategies he has promoted in his philanthropic work, including incentives for drug companies.

    Is it a good time to buy property? Here is expert's take

    ET Online's Shambhavi Mehrotra speaks to Raj Khosla, Founder & MD,, who explains how homebuyers can gain in terms of pricing, interest rates etc. while buying property and sheds light on the pitfalls one must look out for when it comes to real estate in this period of uncertainty. Watch now.Is it a good time to buy property? Here is expert's take

    Searches for 4-BHK properties doubled due to the pandemic, WFH: Magicbricks report

    Magicbricks' How India Searched for Homes During Pandemic Year 2020 report also reveals that most searched cities for homebuyers were Pune, Bengaluru, Mumbai, and affordability was the key for all house hunts.

    Maharashtra government notifies 50% reduction in realty development premiums

    This concession will be applicable on premiums levied as per the Development Control & Regulations and not be applicable to development charges or other administrative matters, said the state government’s notification issued on Thursday for immediate implementation.

    European stocks slip as healthcare, real estate sectors weigh

    Nestle gained 0.6% as it raised its guidance for 2020 organic sales growth, while strong demand for pet food and health products helped quarterly results.

    Consumption vs real estate stocks: Ridham Desai reveals his sectoral bets

    "I am very constructive on real estate. There is a massive amount of pent up demand."

    Coronavirus vaccine development is on track. The next challenge? Tackling the side effects

    The U.S. Centers for Disease Control and Prevention plans to send daily texts to those who are vaccinated for the first week and then weekly texts for six weeks, while the Food and Drug Administration will also be monitoring side effects in real time.

    What stalls real-time database on poverty

    A rural development ministry working paper on measurement of poverty, as reported by TOI, has underlined the need for social registry information system (SRIS). But well-placed sources said an internal committee has not been able to get the novel proposal off the table because of “problems at conceptual level”.

    Indian real estate likely to attract $8 billion capital inflows in FY22

    According to her, Indian property sector is set to attract Institutional Investments underpinned by fast urbanization, favourable regulatory norms and high demand for residential and office premises across India.

    Awfis hopes to increase co-working space to 50,000 by March despite Covid disruption

    Awfis currently has 67 operational co-working centres with 35,000+ seating capacity in 10 cities in India including Mumbai, Pune, Kolkata, Chennai and Bengaluru. The upcoming centres will cater to large corporates, SMEs as well as startups, continuing to nurture the spirit of innovation and enterprise across the nation.

    India Ratings maintains negative outlook for residential real estate

    However, the agency has maintained a Stable rating Outlook for its rated residential realty companies for the second half of 2020-21, expecting limited rating movements in its investment grade large real estate portfolio, as the ratings already reflect the agency’s revised expectations.

    Real estate has become a buyers’ market: Should you buy a house now?

    The housing sector is looking up after quite some time and our number of approvals for the month of October was up 58% as compared to the same period last year. People are buying homes around the country and not only in Mumbai -- home loan numbers are proof.

    Over 3-5 years, Reliance can beat Sensex, Nifty

    If you have a 3-5-year view, Reliance Industries should still generate pretty decent returns, at least higher than the Sensex and Nifty, says Dipan Mehta.

    Covid-19 impact: Real estate sentiments hit lowest level

    The current lockdown has brought the industry to a standstill position and the recovery curve will depend on the fiscal stimulus rolled out by the government.

    Maharashtra government approves 50% reduction in realty development premiums

    The premium will be calculated based on ready reckoner rates of 2019 or 2020, whichever is higher. The move is expected to support the property sector by reviving stalled projects, avoid delays and rein in speculative price rise.

    Why your future financial losses are likely to be much heavier than future gains

    Expect the unexpected, and expect the unexpected to be worse than the expected. Think of the concept of a financial stress test and check if your investments as well as your financial life (as well as life in general) can manage a bout of severe problems.

    Many trial volunteers got placebo Covid vaccines. Do they now deserve the real ones?

    As state and federal governments prepare to distribute the first coronavirus vaccines to health care workers and nursing home residents later this month, the tens of thousands of people who received placebo shots in trials have become the subject of a thorny debate among experts.

    Housing sale in NCR reaches 45% of pre-covid level : Report

    Real estate developers continue to focus on offloading the existing unsold inventory and completing projects under construction. Prices remained range-bound across most of the submarkets within Delhi NCR during the quarter.

    Can WFH concerns over comfort revive commercial real estate?

    Shares of DLF and Brigade Enterprises have rallied 12 per cent and 20 per cent, respectively, since April 1, while BSE Real Estate index has gained 25 per cent during the same period.

    Prestige Group's Q2 sales booking up 9 per cent at Rs 1,123 cr despite slowdown in property market

    According to a company's investors presentation, Prestige Group's sales booking in the first six months of 2020-21 declined to Rs 1,584.4 crore from Rs 2,042.5 crore in the corresponding period of the previous year.

    China December new home prices slow, private survey shows

    New home prices in 100 cities rose 0.25% in December from a month earlier versus a 0.32% gain in November, moderating for the second straight month, according to data from China Index Academy (CIA), one of the country's largest independent real estate research firms.

    View: A dekko at the lay of the land post-Covid that will present new threats and opportunities

    The State not just makes policy — industrial policy, urban planning guidelines — but plans for the economy and regulates huge swathes of it. When governments set targets for net zero emissions, they embrace planning. From telecom to financial markets and potential abuse of market dominance, everything is regulated.

    Karnataka RERA Extends Hsg project completion deadline by 3 months

    With this, the state authority has extended the deadline twice, offering relief of a total 9 months for registered projects to finish the work and offer possession. This effectively would result in possession of projects that were earlier scheduled to be completed on and after March 15, 2020, being offered starting from the first week of January.

    Demand for independent floors in south Delhi, Gurgaon increases

    DLF and Birla Estates have reported an uptick in the sales of independent floors, while developers of boutique apartments in south Delhi claim there is a shortage of such ready-to-move in accommodation.

    The impact of pollution in NCR: Developers install anti-smog guns and cameras at construction sites

    With no construction activity during the majority part of the last year, first due to pollution ban and then due to lockdown, the developers are facing consistent delays in delivering projects.

    A farewell to @realDonaldTrump, gone after 57,000 tweets

    It began with a May 4, 2009, tweet promoting Donald Trump's upcoming appearance on David Letterman's show. It died more than 57,000 tweets later, with Trump using some of his final postings on the powerful platform to commiserate with a pro-Trump mob that besieged the halls of Congress as lawmakers were set to certify his defeat.

    57,000 tweets later, it's farewell for @realDonaldTrump

    The provocative handle was given birth by a New York real estate tycoon who used it to help him become the 45th U.S. president.

    Real estate sector hopes for revival after announcement of Film City in Noida

    The Chief Minister said that the proposed site is just an hour away from New Delhi and very close to the proposed International Airport at Jewar. A lot of developers had acquired land around the upcoming Jewar airport and the announcement of film city will increase the demand further.

    With 11 million cases in US, coronavirus is now personal for most

    Many who have seen people close to them seriously affected say they are taking increased precautions. Others, though, are focusing on how most people recover and are shrugging off the virus, and calls for concerted efforts to combat it.

    COVID-19 impact: Housing sales down 37%, office leasing dips 35% in 2020 across eight cities

    However, both housing sales and gross office leasing during October-December 2020 were higher than the corresponding period of the previous year. The sales of residential properties in the fourth quarter of the 2020 calendar year rose to 61,592 units from 58,402 units in the year-ago period on pent-up and festive demand, while office absorption increased to 17.5 million sq ft from 16.4 million sq ft.

    View: With no real recovery, GoI needs to know why its splurges have been ineffective

    Sitharaman’s package this time is smaller than the May package. But that is not because of a fresh sense of responsibility or caution. She knows that she is getting close to the next budget. So, she will not have to wait too long to fling around more money.

    Rs 5,000 cr fund manager shares tips on how to spot value bets in a bull market

    As the fund manager of the UTI Value Opportunities Fund, Premchandani has been buying stocks that are cash-rich and available at reasonable valuations.

    Stuck realty projects won’t benefit from tax relief: Industry groups

    Industry lobby groups Naredco and Credai said a one-time loan restructuring and a simpler process to avail of last-mile funding would help revive the sector rather than the tax exemption in the latest relief package.

    Captains of industry, corporate bosses, cricketers and actors put gloss back on Mumbai realty

    Buyers include HDFC’s Keki Mistry, actors Hrithik Roshan, Alia Bhatt and Amrita Puri (daughter of HDFC Bank ex-chief Aditya Puri), stockbroker Motilal Oswal, cricketer Shreyas Iyer, Jatia Hotels’ Vinod Kumar Jatia, Modison Metals’ Kumar Jay Modi and Harpreet Singh Minhas of Harman Finochem.

    COVID-19 impact: Mumbai, Pune office space demand halved in 2020, says report

    The decline was attributed to the longest and toughest lockdowns in the state of Maharashtra owing to the pandemic, which affected both demand and supply of commercial offices.

    Dubai, party haven amid pandemic, faces its biggest surge

    With its cavernous malls, frenetic construction and legions of foreign workers, Dubai was built on the promise of globalization, drawing largely from the aviation, hospitality and retail sectors - all hard hit by the virus.

    Real estate agents focus on reskilling

    With no commercial or residential deals closing due to the lockdown, agents are keen to learn about the intricacies of social media marketing and also various legal provisions such as force majeure that they will have to grapple with later.

    Kolkata overtakes Hyderabad to become the most affordable residential real estate market: Report

    The report shows that from 2011 to 2020, home purchase affordability improved across key Indian cities which were part of the Index.

    Covid-19 impact: Private equity inflows into Indian real estate to taper down

    Private equity inflows into Indian real estate is expected to be 45-50% lower in 2020 from a year ago.

    Covid vaccine rollout urgent as new strains take hold

    The European Medicines Agency (EMA) on Wednesday approved the US-made Moderna vaccine, having already given a green light December 27 to one made by Pfizer/BioNTech for use in the European Union.

    The Swiss cheese model of pandemic defense

    The metaphor is easy enough to grasp: Multiple layers of protection, imagined as cheese slices, block the spread of the new coronavirus, SARS-CoV-2, the virus that causes COVID-19. No one layer is perfect; each has holes, and when the holes align, the risk of infection increases.

    Covid impact: Tenants want Kerala government to bring rent regulations

    Many employees are reluctant to travel by public transport due to the fear of community spread of Covid-19 and hence are in search of a suitable accommodation.

    Housing enquiries rebound to 50% of pre-COVID-19 levels, highest in Bengaluru

    In terms of the preferred budget range, homes priced between Rs 40 lakh to Rs 1.25 crore now attract a major chunk of the post-COVID-19 buyer enquiries. Bengaluru, Chennai, Ghaziabad and Noida are seeing maximum traction for homes in the under-Rs 1 crore budget.

    Credai writes to Bengal CM for real estate bailout

    Property sales across India have come to a standstill after the coronavirus outbreak. It has hurt residential sales and also dented the leasing of commercial assets across the country, leading to a severe liquidity crunch for the builders.

    Developers request RERA to extend real estate project registration by a year

    “There is no sign of end to the pandemic as the number of positive cases are increasing day by day. Further, there were unexpected exodus of migrant labourers in large numbers from real estate projects to their native states. Also the supply chain of materials and equipment from different parts of the country, has been badly impacted due to the lock down restrictions,” said RK Arora, president of NAREDCO-UP.

    KV Kamath panel's recommendation may reboot stressed real estate sector

    "The recourse provided the much-needed elbowroom to developers and suppliers of raw materials to keep their businesses afloat and viable. Further, it was also timely for individuals who had availed home loans as they were reeling under the pressure of discontinuity of steady income due to fragile employment scenario," said Ramesh Nair, CEO & County Head (India), JLL.

    Play contra on the real estate theme via HFCs: Manishi Raychaudhuri

    India offers a greater degree of spread to the global and regional investors which many other Asian peers do not really offer.

    As housing market improves, these 5 stocks are likely to benefit the most

    Recovery in housing sales and work-from-home make improvement products cos — paints, tiles, pipes, sanitaryware and woodwork — good picks.

    South-Central Mumbai luxury home sales records sharp pick up in October

    South-central Mumbai localities – including Tardeo, Mahalaxmi, Worli, Prabhadevi, Byculla and Lower Parel – have witnessed a jump of more than 230% year-on-year in monthly sales to Rs 500 crore, showed data from Anarock Property Consultants. In October last year, these localities had recorded sales of Rs 150 crore for apartments priced above Rs 5 crore.

    Budget 2021 could impose a coronavirus cess, hike LTCG tax on equity: EY

    Due to the need to garner more revenue, the government could look at imposing a Covid cess probably graded by income groups as people are already impacted by inflation, says EY India's Sonu Iyer. "I don't foresee any change in the personal tax rates per se because the government has already introduced an alternative tax slab structure last year offering lower tax rates sans exemptions," she said.

    Demand for residential real estate in Q3 surpasses pre-Covid levels by 30-40%: Magicbricks PropIndex

    “With the festive season just around the corner, we are witnessing a sharp recovery in demand and prices have remained stable for the July-September quarter after falling upto 5% in the April-June quarter of 2020. We hope consumers’ buying sentiment will continue to improve and translate into transactions in the coming quarters,” said Sudhir Pai, CEO, Magicbricks.

    Record residential sales momentum in Q4 helps cushion dip in 2020 performance

    Although residential real estate bottomed out in 2020 against the previous peak of 2014, the October-December quarter has provided strong revival signs with home affordability being at its all-time best.

    UN report cites ISRO efforts in assisting Indian government to contain COVID-19 pandemic

    The UN report 'Geospatial Practices for Sustainable Development in Asia and the Pacific 2020' cites the role being played by 'BHUVAN', the national geo-portal developed and hosted by ISRO comprising of geo spatial data, services and tools for analysis, in combating COVID-19.

    Realty developers witness a surge in demand for luxury and super luxury homes

    The increase in the purchasing power of the NRIs coupled with a spike in the exchange rate of the US dollar will continue to encourage the sale of luxury realty, developers said.

    Indian realty's institutional fund inflow in 2020 seen at $4.8 bn

    Report said that investors are most attracted to the country’s office sector, with interest remaining strong throughout the pandemic and the partial relaxation of the lockdown with USD 200 mn invested during Q3 2020.

    Karnataka: Real estate projects get deadline extension

    All RERA registered projects whose completion date (including revised completion date) expires on or after March 15, the authority has extended the deadline by three months.

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