Credai to shove for change in proposed real estate bill

 

cThe Confederation of Real Estate Developers’ Associations of India (Credai) will ask the Central Government for the adjustments to the proposed Real Estate Bill. If the present norms are implemented it could lead to big problems for big boys and will also hike the user-end housing cost in the market.

The Realtor governing body said a regulatory body is must to punish offender but some provisions in the bill are unfairly lodged against the developers and would also scare away small time developers for the market.

The body wanted these major issues to be discussed when the Bill is passed in the Parliament in the winter session.

The Centre should engage the developers in the roll out of affordable housing policies.  The body is keen to take part and contribute measures for the implementation of affordable houses in the country.

The major issue with some guidelines, the developers could end up being punished for a projects time period over which they have no control.

Credai suggested the ‘Residex’, a housing price pointer by the National Housing Bank, to get better parameters in order to be a more realistic reflection of the market.

The next meeting will open its doors to non-members and professionals such as real-estate consultants. The two-day event will also focus on sharing best practices with participants from Tier-II and Tier-III cities in the country.

MCHI Demands Expert Panels To Clear Projects

The Maharashtra Chamber of Housing Industry (MCHI) requested the state CM Prithviraj Chavan to form two expert panels for the clearance of projects.

MUMBAI: The Maharashtra Chamber of Housing Industry (MCHI) has requested Prithviraj Chavan, the State CM, to appoint two expert panels for clearing the real estate projects.

MCHI asked for two panels which will be formed of five experts and structural engineers. MCHI has also asked the state CM to disperse the high-rise committee. Continue reading

Property Transactions Set to Go Costlier

CREDAI Bengal Chapter has said that new property tax will make property transactions costlier. It will adversely affect property transactions as well as the realty sector.

KOLKATA: The state government of Bengal has proposed new tax on property transactions. This was presented in the Finance Bill 2013.  Continue reading

RBI Slightly Cut Rates, Developers Seek More

RBI decided to cut the key policy rates by 0.25%. Welcoming the rate cut, realtors said that this will boost the sector.

Finally the Reserve Bank of India cut the key policy rates. While welcoming the decision of RBI, realtors said that it would boost the sector. RBI cut the repo rate (the rate at which banks borrow from the RBI) by a mere 0.25%.

RBI slightly cut the key rates.

RBI slightly cut the key rates.

Commenting on the rate cut, realtors said that the interest would have gone down if the reduction rate was further lowered. A further reduction would necessarily boost the home sales. Home loans will be lowered. This will boost the sentiments of the buyers.

Along with the buyers, the builders also will benefit from further rate cuts. If the repo rates are further revised, it will bring the EMIs down.

Speaking on the issue, former CREDAI chief Lalit Kumar Jain said that the common house buyers will benefit from the reduction of repo rate.

The Central Bank of India today cut the repo rate, short-term lending rate, by a mere 0.25%.  After the reduction now the repo rate stands at 7.25.

Developers seek more rate cuts from RBI.

Developers seek more rate cuts from RBI.

The RBI decision was met with mixed response. DLF, one the largest developers in India, said that the rate cut will hardly have any impact on the realty sector. The realty major said that the reduction is too small to leave an impact on the sector.

Rajeev Talwar, Executive Director of DLF Group, demanded further reduction. He opined that only a further reduction will boost both economy as well as realty. Mr. Talwar stated that the rate cut is very so small that it is insufficient to boost either economy or realty.

Sachin Sandhir of RICS (Royal Institution of Chartered Surveyors) also expressed a similar view. He too said only further rate cuts can boost realty sector.

Assotech MD Sanjeev Srivastva said that the move will boost the sector. He hopes that the rate cut by RBI will be passed on to the customers by the financial institutions.

CMDA Nods Corversion of Vacant IT Buildings to Malls

CMDA has signaled green for converting vacant IT buildings to shopping malls and office spaces.

Buildings built for Information Technology may soon be turned into shopping malls and office spaces. The Chennai Metropolitan Development Authority –CMDA has sanctioned the conversion of IT buildings into other purposes. Continue reading

Vadodara’s Vacant Properties? RTI Reply Invites Mix-Up

An RTI reply stated that Vadodara has around 1 lakh of vacant properties. The RTI reply is considered as an alarm-bell for the real estate sector in Vadodara.
Sunset scene from  Manjalpur Bridge in Vadodara: Confusion arises over the number of vacant properties.

Sunset scene from Manjalpur Bridge in Vadodara: Confusion arises over the number of vacant properties.

According to an RTI reply, over 1 lakh of properties remain vacant in Vadodara. Meanwhile there appear no takers for the property, it added. The RTI reply which revealed that there are over 1 lakh vacant properties in Vadodara has been considered as a warning- sign for the real estate sector in the city.

RTI reply was made by the Directorate of Census Operations, Gujarat, to a native of Vadodara. A copy has been sent to the Vadodara Municipal Corporation as well. The RTI reply clearly stated that over 1 lakh properties, precisely 1.02 lakh, were vacant in the city. Continue reading

Real Estate Regulatory Bill: Developers Differ Highly

Developers differ on the real estate regulatory bill as it is ‘one- sided’ in their opinion. The bill which has provisions to send the default builders to jail,exclusively avoid the punishment of default buyers.
Real estate authority bill: CREDAI remains suspecious.

Real estate regulatory bill: Builders remain suspicious.

Real estate regulatory bill is expected to be introduced in the upcoming parliament session. Some of the provisions in the regulatory bill are supposed to become a burden on the shoulders of the default builders. Some builders opined that the bill will curb and control the unscrupulous and dubious builders.

According to Mr. Pradipta Kumar Biswasroy, Real Estate Developers Association’s (REDA) Odisha Head, a commission is necessary to look after the real estate sector. He blamed that, at present, many unscrupulous builders exist because there is no proper law to curb them. He said that the sector loses its face due to the dubious acts of such unscrupulous builders. Continue reading

Real Estate Regulatory Authority Bill Speeded Up By PMO

To implement the pending Real Estate Regulatory Authority Bill, finally Prime Minister’s Office had to step in. PMO has directed both housing and urban poverty alleviation and urban development ministries to sort out their issues and implement the bill soon.
Real Estate Regulatory Authority Bill

Pending Real Estate Regulatory Authority Bill sped by PMO.

The implementation of Real Estate Regulatory Authority Bill has been delayed due to the war between the Ministry for Housing and Urban Poverty Alleviation (MHUPA) And the Ministry for Urban Development. Finally, these ministries are ordered to solve out the issues and soon implement the Bill.

Real Estate Regulatory Authority Bill aims to protect the property buyers from the developers who often use canny methods. MHUPA initiated the Real Estate Regulatory Authority Bill to protect the buyers’ interest and placed it in the Cabinet for Clearance. Continue reading

CREDAI Doubtful Over The Success Of MIDC Policy

CREDAI remains doubtful over the success of Maharashtra Industrial Development Corporation’s (MIDC) new SEZ policy. As per the new policy more Special Economic Zones (SEZ) land is provided for housing development.
industrial policy is doubted

CREDAI is doubtful over the success of new industrial policy of MIDC.

CREDAI said that the new industrial policy of the MIDC may not be as successful as it is expected to be. The apex Confederation Of Real Estate Developers remains doubtful over the success of the new policy to develop integrated Industrial Township. CREDAI’s national chief Mr. Lalit Kumar Jain expressed his doubt.

Mr. Jain asked how the policy will be successful as the SEZ lands have failed to take off. He said in a statement that the new policy will fail as long as no concession is offered. Continue reading

Real Estate Sector Hopes To Thrive In 2013

The year 2013 is expected to be a boom year for economy as a whole. This is more expected in the real estate sector. Real estate sector expects to thrive in 2013.
Real Estate Sector Hopes To Thrive In 2013

Real Estate Sector: ready to thrive in 2013

Real estate sector went through a tough time in the year 2012. The year was noted for its slow pace and declined market. Lower sales and higher construction costs affected the real estate developers adversely. In short the year 2012 was a very difficult one for the real estate developers of India. They faced a tough economic condition as sales stooped down.

Lalit Kumar Jain, National head of CREDAI (Confederation of Real Estate Developers’ Associations of India) expressed his hopes of revival in the year 2013. He said that the year 2012 was a year of loss especially because no corrective step was taken. He moaned that the 2012 remain as a lost opportunity.

Real estate consultancy firm Jones Lang LaSalle India’s Chairman & Country Head, Anuj Puri appeared more confident over the real estate renovation. According to him real estate boom will be more in the final-half of 2013.

The RBI (Reserve Bank of India) has, in recent times, allowed reputable real estate developers to raise funds up to $1 billion. The RBI also has permitted established housing finance companies to raise an equivalent fund. With this new rule the real estate builders and finance companies can raise funds through external commercial borrowings. Continue reading

Land Acquisition Bill Invites Hike in Residential Prices

Union Cabinet recently passed the Land Acquisition Bill. The land acquisition bill ensures more right to the farmers. Real estate experts opine that the bill will cause residential prices to go up.
Land Acquisition Bill Invites Hike in Residential Prices

Residential Prices set to go up with Land Acquisition Bill.

Union Cabinet voted in favor of land acquisition bill. The bill will force the housing prices to go up, report real estate analysts. As per the land acquisition bill the land owners’ consent has become mandatory for all private projects.

The year 2012 witnessed a decreasing price appreciation for the residential sector. This year with the approval of land acquisition bill the situation is going to be worsened. Experts are of the opinion that the bill will necessitate price – hike. In fact the value appreciation will be improved. Continue reading

CREDAI Demands Consumer Friendly Real Estate Reforms

CREDAI, the apex confederation of real estate builders said that the real estate reforms must be consumer friendly.
Consumer Friendly Real Estate Reforms

Consumer Friendly Real Estate Reforms turn the need of the hour to provide “Home for All.”

CREDAI has appealed to all the parliament members (MPs) to bring in reforms which are consumer friendly. The apex body of the real estate developers further asked them to consider the large number of stalled projects. Continue reading

CREDAI Asks Real Estate Builders to Ease Property Prices

CREDAI- Real estate developers’ apex confederation asked its members to ease property prices. The real estate developers’ apex body advised its members to lower property prices for selling them off.

CREDAI national head Mr. Lalit Kumar Jain said that the real estate developers consider selling of their unsold properties at a lower rate. P Chidambaram, the Finance Minister of India, placed the suggestion in front of real estate developers.

P Chidambaram suggested the Real estate developers to consider the amount of unsold properties. He pointed out that there exist a vast number of real estate properties which remain unsold. Continue reading

Real Estate Developers Oppose ULCA in Bengal

CREDAI urged the Bengal government to repeal urban land ceiling act. The apex body of real estate developers said that this has become a serious issue which blocks the real estate constructions.

Real estate developers’ confederation – CREDAI harshly blamed the Mamata Banerjee government to implement Urban Land (Ceiling and Regulation) Act (ULCA) in Bengal. The apex real estate developers’ confederation pointed out that Bengal is one of the few Indian states to have ULCA. Continue reading

CREDAI Express Discontent on The New Real Estate Bill

The decision of Housing and Urban poverty alleviation ministry (MHUPA) is looked down by the apex body of Real Estate Developers- CREDAI.

CREDAI showed higher discontent over the MHUPA’s new Real estate Bill. The officials of CREDAI said that the bill will foster corruption. The new Real estate Bill is roughly welcomed by the real estate developers.

The Confederation of Real Estate Developers’ Associations of India have nearly 8,800 developers as its members. The CREDAI members represent 20 States of India. The apex body has 114 city- divisions across the country. Continue reading

CREDAI Appreciates AP Govt.’s Online Approval System

Confederation of Real Estate Developers’ Association of India- CREDAI, welcomed the AP Govt.’s online approval of building plans. The apex body of builders pointed this as highly appreciable.

Andhra Pradesh Government has launched single window system for approving the building plans of real estate projects. CREDAI appreciated the real estate reforms like online building plan approval and single window system. Earlier this year the apex body of the real estate developers had asked for speedy clearance. Continue reading

HC Orders MH Real Estate Builders To Pay 5% VAT

Maharashtra High Court ordered the real estate builders to pay 5% VAT by 31 of Oct. This order solely binds builders to pay the tax but they are found forcing the buyers to pay the tax.

VAT Troubles Real Estate Builders

VAT Troubles Real Estate Builders

Real estate Builders remain unable to claim their tax provisions due to less transparency and poor records. The developers are still expected to pay the entire amount. Continue reading

CREDAI Demands Speedy Eco Clearance Certificates

CREDAI pointed out that the real estate builders will be able to meet the rising demand only if the Ministry of Environment caters faster clearance.

Environment Clearance

“Environment Clearance Need to Be Faster” Says CREDAI.

CREDAI, the apex body of real estate developers demanded the government to speed up the eco clearance. The Confederation of Real Estate Developers Association of India requested the government to avoid “antiquated laws” in favor of urban development and housing.

CREDAI strongly supported a pragmatic and practical approach to meet the severe housing shortage. The apex body of the developers recommended all government departments and especially the Ministry of Environment. Continue reading

Mumbai Real Estate termed Investor-Unfriendly by CREDAI

CREDAI showed discontent over the unsupportive policies of the MH govt. by terming Mumbai real estate as “investor unfriendly.”

Bye Bye to Mumbai Real estate

Bye Bye to Mumbai

CREDAI is dissatisfied with the existing Mumbai real estate conditions. This unfriendly atmosphere of Mumbai leads CREDAI to shift their investment plan to Gujarat. Continue reading

Festive Season Fills New Hope in Residential Real Estate

Enlightening Festive Season

Enlightening Festive Season

Confederation of Real Estate Developers Association of India – CREDAI expressed their hope of 20 percent improvement in the housing sales. This improvement will be mainly in the major cities of India. Smaller cities always remained unaffected by the interest rates. Continue reading

Real Estate Township Projects Sees Light Again in W.B.

townships see light again

townships see light again after 6 months in W.B.

West Bengal government plans to allow the real estate builders to resume their construction works which have been barred for last six months. Earlier the West Bengal government had prevented West Bengal real estate builders from building townships in West Bengal. Continue reading

CREDAI Finally Says “No” to Real Estate Corruption

 

credai anti corruption

Anti Corruption Campaign By CREDAI.

CREDAI– Confederation of Real Estate Developers Association of India has asked the members not to bribe officials as part of their anti-corruption policy. This warning is resulted from the hurt feeling caused by the growing allegations on real estate corruption. Continue reading

Will MoU Between CREDAI, Fire Department work?

Announcement of a memorandum of understanding (MoU) between the Confederation of Real Estate Developers Association of India (CREDAI) and the Karnataka State Fire and Emergency Services (KSFES) Department on fire safety certification has raised quite a few eyebrows in the real estate industry.

While an industry expert questioned how “credible” would the entire process be, if the issuance of a no-objection certificate (NOC) and a clearance certificate (CC), which earlier took months or even years, would now have to be completed within 30 days. “Currently, the KSFES has been manually going through each drawing and then mulling over all the errors and suggestions. This consumes a lot of time. According to our MoU, we will be providing software prepared by a company which would identify the errors in the drawing. It would indicate whether a particular project proposal is in acceptance of the norms by highlighting the faults in red colour. Then at the click of a button, the department can either condone or reject the proposal. The company has provided similar software to civic bodies of other places like Mumbai, Pune, Ahmedabad, Nagpur and other places. Hence, their credibility is established,” asserted Sushil Mantri, under whose President ship CREDAI signed the MoU. He argued that it is important to make this move as almost 90 percent developers are suffering because a handful of builders did not follow norms.

“CREDAI members are responsible for almost 60-70 percent output of the city. Further, to become a member of the confederation, they have to sign a code of conduct which covers all the approvals and rules. By delaying progress of approvals, not only do builders incur losses as production suffers, but also the revenue to the city and BBMP is further delayed,” he said.

CREDAI and Builders’ Rift over Code of Conduct

Firstly, several developers declined to abide by the code of conduct laid down by CREDAI. Following this, the association has expelled several developers, while some have resigned discontinuing their involvement with the organisation.

Opposing the self-regulation code, the builders refused to sign the association’s code of conduct. The bone of contention for builders was the code of conduct that primarily outlines transparency clauses that builders have to follow.

Ultimately, CREDAI expelled some builders, as they did not comply with the directives despite the body having issued several notices to them. DLF, Hirco and Hiranandani Realtors have been expelled from the Chennai Unit, whereas four builders have resigned from the Bangalore unit.

CREDAI has further decided to expel non-compliant builders in NCR and informed the expelled builders that they can be a part of CREDAI unit only if they sign the code of conduct.

 

Real Estate Bill Have to Wait More

The much-awaited regulatory Bill for the real estate sector is still a long way off. The draft Real Estate Regulation Bill will not be tabled during the current session of Parliament, a senior official in the Ministry of Housing and Urban Poverty Alleviation has confirmed.

The imprisonment, according to the final draft, applies only in the case of non-registration with the real estate regulation authority. Registration is mandatory for projects of a certain area and type. The maximum term of imprisonment is up to three years, and penalty may be extended up to 10 per cent of the project cost. In the earlier draft of the Bill, imprisonment was recommended in case of wilful failure to comply with orders of Appellate Tribunal too. The ministry has also reduced the area size for compulsory registration from 4,000 square feet in the earlier draft to 1,000 square feet now. This would mean registration would be mandatory for the smaller players too.

The Bill has been in the making for several years now, and was slated to be introduced during the Budget session. The housing ministry is now targeting the monsoon session of Parliament. The official said the final draft was ready. The draft bill has gone through some changes related to clauses on imprisonment and compulsory registration.

National Real Estate Development Council (Naredco) hailed this as a good move. “It would also check fly-by-night operators in real estate, which are majorly into smaller projects,” said R. R Singh, Naredco director-general. “However, the load on the authority will increase, as it would get flooded with projects for registration as smaller projects are more in number.” Confederation of Real Estate Developers Association of India (Credai), however, wants no limit on the registration. “No developer should be left out of the ambit of Real Estate Regulation Authority,” according to Credai chairman Lalit Jain.

The objective of the proposed legislation is to establish an authority to regulate, control and promote planned and healthy development and construction, sale, transfer and management of colonies, residential buildings, apartments and other similar properties, besides to host and maintain a website containing all project details.