Pune to set out new rules

The district consumer court has set out a new rule that an occupancy certificate will be issued by the municipal corporation in favour of an interested flat buyer, which will be sufficient to say that construction activity is successfully completed as per the sanctioned plan.
The court also ruled that a flat resident cannot seek his case to be treated as a “representative complaint” without first complying with the necessary requirements of such a plaint. Section 12 (1) (c) of the Consumer Protection Act needs a complete publication of a notice at the time of filing of the respective complaint about the complaint to be treated as a representative case.
A bench of O G Patil , V P Utpat, and Kshitija Kulkarni on Wednesday rejected the complaint by Kondhwa Khurd resident Anand Ranjalkar, who alleged that the builder of their housing scheme delivered him a 1bhk flat in Pune, which was of lesser area than it was originally agreed for, He also claimed that the builder had failed to secure a completion certificate. He also referred to common reliefs relating to the developer’s “failure” to form a society and execute a proper conveyance programme.
In July 2007, Ranjalkar had openly purchased a property in Pune under ‘Kumar Prithvi’ scheme, developed by Sukumar Township Development Private Limited in Bhavani Peth, Pune for Rs 28.7 lakh. The construction firm, as said and confirmed, delivered property to him on March 3, 2009.
In July 2011, after two years of getting possession, Ranjalkar filed a consumer complaint alleging the super built area of the flat was 39.87 sqft lesser than the area that was committed to him in the agreement. He said that he made the measurements done by an architect.
Lawyer Sunita Kinkar, representing the firm that supplied the possession, argued that Ranjalkar was bound by the agreement, to refer any further dispute to an arbitrator and that he did not comply with the norms for converting his complaint into a representative case for seeking common reliefs.
The bench, therefore, rejected Ranjalkar’s application, filed counter-arguments, for publishing a notice of a representative complaint first and held that the matter will then be treated as an individual complaint. “The complainant, in his individual capacity, cannot seek his justice as regards formation of society and execution of conveyance deed, etc. The after effects of the complainant will remain only as regards shortfall in area and completion certificate,” it held.

Gudi Padwa, a positive occasion for Pune’s low Real estate

With India’s economy finally growing its pace, Pune’s real estate market is now slowly witnessing a move in the forward direction in regard to the residential sector with a high rise in new residential launches. As prices are now stable and cheap after the announcement of the new set of rules in the Union Budget 2017, experts say that the auspicious occasion of Gudi Padwa will set a right tone in the minds of buyers to set their pace in investing new property in Pune.
With the storm of demonetisation slowly calming and settling down, Pune real estate is again starting to gather its momentum now. Gudi Padwa, according to experts is expected to give the sector a high increase in demands as residents of Maharashtra prefer home investments on the day. After slowly following this upward movement, Pune’s real estate market is expecting the past inquiries to be smoothly translated into sales. It has been noted that Pune has a huge unsold inventory of its real estate has slowed down since the past one and half years. Even those who cannot afford flats are inquiring for cheap 1bhk Flats in Pune in a relief of low-interest rates from banks and affordable schemes carried forward to them.
After the wonderful festive period, the real estate saw an exhausted inquiry inventory and a piled up sales record. This was due to the belief of auspicious occasion and the pocket-friendly schemes as after demonetization, real estate was one of the major sectors among many to be harmed by the cash crunch. Nevertheless, now as the cash flow in the bank is back to normal, the pace of remonetization has grown up faster than it was actually expected. Again, realty market in India has witnessed some big reforms like Benami Transactions Bill, RERA, or GST which are directly aimed at giving the sector of residential spaces transparency and more credibility.
It has been clearly seen in the country that a big investment like gold or property is considered more sentimentally than economically. Therefore the festive occasion added on to the sentiments and increased the sale to next level. Gudi Padwa, which marks a New Year in Maharashtra saw a huge increase in the sales as well as the new launched by reputed builders and developers of the state. Many people book their new homes or host housewarming parties in this occasion. Thus, Maharashtra real estate defines it as its level best on this day.

Increasing residential demand in the Silicon Valley of India, Whitefield

As it is known that there is a large workforce employed in the area of Whitefield, and preferring to live in the vicinity, is increasing up the demands for residential options here for the comfort of the employees.
Once known as a secluded area of Bangalore to the Silicon Valley of India, Whitefield’s story was shaped primarily by the IT Hub revolution that changed the sleepy landscape with Asia’s first tech park which rose up in 1994.
The excellent development that took place in Whitefield and the EPIP zone have seen over the years seems like a page of a fictional book with a perfect ending. Mammoth towers in glass and chrome stand tall amidst natural greenery which has been long preserved by the developers of these MNC acquiring most of the Bangalore properties especially in Whitefield. Many hitherto heavy manufacturing factories have given a big hand to making this a wonderful place with a lot of infrastructural possibilities and residential flats in Bangalore.
It is no wonder that after all these factors these localities in the vicinity of these ultra facilitated tech parks have largely begun to mushroom into elite gated communities of residential buildings. Villas the high priority choice by the people who want to live here and work in these high-end vicinity of business parks.
While the ITPB has singularly driven the demand for residential property options in its vicinity, the other tech parks and business parks in the EPIP zone too have drawn a high demand for housing options ranging from mid-segment apartments and high-end homes enclosed within well-appointed gated enclaves, to villas and plots.
A member of the committee, Jain has stated that Whitefield, Electronics City, and the EPIP zone was a major initiative taken by the government to create the place into something better which eventually turned out to be called as the Silicon Valley of India with a number of reputed Multi Nationals setting up their base here. This is also increased the demand for high-end flats and villas by the people who come here every year from all over the country to earn their lavish living.

Amrapali Dream Valley project’s action against MD

Homebuyers of Amrapali Dream Valley project have written a letter to the Prime Minister’s Office seeking the permission for impounding of the passport of Amrapali MD Anil Sharma.

The buyers are in a fear that Sharma may try to leave the country as the project is far from complete. Amrapali is one of top investors who is in debt of owing huge amount of money to Noida and Greater Noida authorities. Most of its projects are sold but is far from construction.

In a letter of appeal to Prime Minister Narendra Modi submitted on February 22, Dream Valley buyers have requested that impoertant measures should be taken to safeguard the interests of buyers who have deeply invested in Amrapali.

Meanwhile, the Noida homebuyers’ association on Thursday demanded explanation from the Noida Real estate authority on lack of investigation on their part and keeping a check on defaulting builders. They wrote a letter  seeking answers from the GNIDA, Nefowa referred to therecent arrest of Earth Infrastructure owner Avdesh Goel by the Delhi Police in response to complaints by the Economic Offences Wing. Goel was arrested on February 20 on the basis of complaints by investors in Amrapali.

Home Sales Witness No Signs Of Improvement

There are no signs of improvement for home sales. The sluggishness has affected home sales across the country.

Various freebies and discounts are offered by the developers. Though these were expected to improve the sentiments of home buyers, weak home sales prove that these offers have no impact on the sluggish realty market. Continue reading

New Launches in Mumbai, Offered At Low Rates

Affected by the weak home sales, some top Mumbai Developers have cut down the prices for their new launches.

A few days after the news came out that the property prices have shot up in many of the cities including Delhi, Bangalore, etc., some Mumbai developers said that they have cut down the prices for new launches. Continue reading

Home Prices Sees Rise Despite Weak Home Sales

Home prices in Mumbai rose in the last quarter. Meanwhile the period was noted for lower home sales as well.

MUMBAI: Home sales are down. The real estate market is sluggish. Yet the home prices are not affected by them. It seems that the home prices are not aware of the weak home sales. Continue reading

Water Shortage Affects Realty Construction

Water is necessary for realty construction. The water shortage thus affects it adversely.

As the summer is approaching, water shortage has become one of the main keywords in the headlines. We know that people are affected. Are the people alone affected? No, many industries are also affected with it. Continue reading

No Property Buyers, Realty Developers Troubled

Due to the sky reaching property prices, no property buyers turn up anywhere. As property buyers remain reluctant to buy out properties, the developers are struggling to offload their unsold properties.

The developers would not have imagined that the sky reaching property prices will have as disastrous as this. Many of the builders now have unsold properties at their hand as they are not able to find any property buyers. Continue reading

Investors Turn to Gold, Leave Real Estate

With the fall of gold prices, the investors are rushing to grab this glittering yellow metal. The investors feel it wiser to invest in gold than real estate market.

Is Real estate losing its charm? Whether it loses its charm or not, the investors are not fond of investing in the construction sector now. One of the main reasons for this is the fall of gold prices. Continue reading

Home Rentals to Shoot Up in Metro Cities

Sky reaching property prices will result in rising of home rentals. Home rentals will see an upward growth due to the increasing migration to the top cities.
Home rentals will rise in top cities due to the shortage of supply.

Home rentals will rise in top cities due to the shortage of supply.

BANGALORE: In all the top cities of India it is impossible for any middle income class person to own a home. The main reason is higher property prices. Yet, the increasing demand and shortage of supply, etc. too play their roles. Adding all together the home rentals in cities are expected to rise sharply.

Rental homes remain the possible option for a majority of residents who have migrated from other rural areas or tier II cities to top cities. Higher flow of population causes more demand for rented homes.

However there is a mismatch between the property price hike and the hike of home rentals. While property prices have shot up many doubles, the rise of home rentals was down by three to five percent down. (Compared only in proportion to the property price hike) Continue reading

Navi Mumbai Airport Delayed, Affects Realty

Due to the delay in the proposed Navi Mumbai international airport, the realty sector in the area is affected badly. Navi Mumbai witnessed a fall of property prices.
The delay of Airport affects the realty sector of Navi Mumbai.

The delay of Airport affects the realty sector of Navi Mumbai.

Property prices in Navi Mumbai were expected to shoot up. The proposed international airport was believed to boost the property prices in the area. However it will be, as the project is delayed, a setback to the realty sector.

Since the proposal of international airport in 2010, the property prices in and around the locality have doubled and tripled. The announcement had an impact on the prices in areas like Kalamboli, Kharghar, Panvel and Ulwe. Prices in all these neighborhood areas shot up highly.

The new airport was proposed to be developed at Navi Mumbai. It, for pure aviation purpose, needs around 1,160 hectares of land. Additionally it needs another 225 hectares of land is required for other purposes.

Out of these 1160 hectares, 291 hectares of land is yet to be attained. Prithviraj Chavan, the Maharashtra chief minister, said in a reply in the parliament. Continue reading

Pallavaram Booms, Connectivity to IT Hubs Remains Keen

Pallavaram in Chennai now witnesses a surge in the property prices. Property prices in the area soar very quickly due to its close connectivity with the IT hubs.
Pallavaram in Chennai booms due to its close proximity to the IT hubs.

Pallavaram in Chennai booms due to its close proximity to the IT hubs.

CHENNAI: Pallavaram in Chennai is a place of historical importance. The area is more connected with Pallava dynasty. However that is not what concerns the home buyers of the area. They are worried over the surge in property prices.

Due to many reasons, Pallavaram is one of the most popular residential destinations in Chennai. The area is just 17km away from Chennai city. Moreover it is well-connected to the Thoraipakkam and Shollinganallur, two IT hubs.

Due to its close proximity to these IT corridors, the demand for housing units has increased. There is a hike in property prices in equal proportion to the demand.

Living in Pallavaram means living away from the hustles and bustles of the city. The area is 7-10 km away from the IT hubs. And so it is easier for those IT professionals to stay here and work. Continue reading

Housing Ministry Recommends Single Window Clearance

In view of bringing the property prices down, housing ministry has recommended single window clearance. The housing ministry hopes to lower the sky reaching property prices.
Housing ministry recommends single window clearance to speed up clearance.

Housing ministry recommends single window clearance to speed up clearance.

New Delhi: As per Economic Survey 2013, delay in project-clearances is one of the main reasons which cause the hike of property prices. The survey had suggested the government to look into the matter and take out suitable steps. This might have prompted housing ministry to move in that way.

If single window clearance system is introduced, the builders will be able to launch their projects soon. Moreover they will be able to provide homes at lower prices as they need not spend lot of money as ‘preservation charges.’

The builders had claimed that they had to spend a lot of money for preserving their land and properties during the period taken for approval.

To consider the issue a committee was formed under Dhanendra Kumar, former chairman of Competition Commission of India. The committee has recommended single window clearance for the real estate projects. Continue reading

VAT increased in Kerala, worries realty sector

Increase in the Value added tax (VAT) may affect the real estate sector adversely. Industry experts stated that increase in VAT would result in materials for construction.
The Kerala Budget 2013 proposes an increase in VAT.

The Kerala Budget 2013 proposes an increase in VAT.

It is true that the budget 2013 has not done any indirect harm to the realty sector. The budget, though did not help the sector, cannot be termed as unfriendly to the real estate sector. However the realty players in the state fear that the proposed increase in VAT would affect the realty sector.

The prices for cement, wood and paint are likely to go up with the proposal to increase VAT. The prices of the above mentioned items are directly related to construction. So in short the prices of the raw materials will have an impact on the property prices too. The property prices will shoot up proportionately.

The budget 2013 has proposed an increase of 1.5% of VAT. This will directly affect the prices of the raw materials used for construction. Continue reading

Land Acquisition Bill May Boost Property Prices

Land acquisition bill may boost the property prices in the urban cities. Investors expect land acquisition bill to provide more clarity to the land acquisition process.
Property prices may go up with land acquisition bill

Property prices may go up with land acquisition bill.

The farmers may be happy to see the parliament passing land acquisition bill. Once the bill gets through the parliament the farmers will be sure of gaining more rights on their land parcels.

Though the bill will bring clarity to the land acquisition; the bill will affect the property prices severely. The prices will shoot up as the bill stands for the consent of the land owners, at least four- fifth of the entire land holders.

Industries also fear that the cost of the projects will be costlier. The land acquisition bill forces them to pay an amount, four times higher than the market price, in the rural areas.

The bill also asks them to pay a double the market price for the land in the urban areas. Project development will not be as easier as the builders have to get the permission of the land owners. Continue reading

Delayed Clearances Shoot up Property Prices: ES 2013

Delayed clearances for new buildings are one of the key factors that shoot up property prices in India. The Economic Survey 2013 blamed the government for delayed clearances which result in the hike of property prices.
Property prices shoot up as a result of delayed clearances

Property prices shoot up as a result of delayed clearances.

According to the Economic Survey 2013 report the property prices shot up in India by 40% due to the undesirable delay in clearances. As the builders are to gain around 34 clearances for starting any project, it takes at least six months’ time for beginning. By the time the property prices rise highly.

Economic Survey for 2012-13 in its report submitted in the parliament pointed that the housing and realty sector faces many challenges in India. One of the main challenges is undesirable delay in clearances.

The Survey adds that the average time taken for all clearances is 196 days. This delayed period alone shoots the property prices up to 40%.

Citing the World Bank’s the latest report by, the survey said that India ranks 182nd in construction clearance processes. Meanwhile the Subcontinent is one of the top countries in terms of housing and work-space demands. Continue reading

Property Investment: Pre-Launch Properties Remain Better

Blooming real estate sector makes property investment probably the best investment option. However the returns are more when they are invested in pre-launch properties.
Property investment in pre-launch projects better as it offers better returns.

Property investment in pre-launch projects is better as it offers faster returns.

The booming nature of real estate market is one of the main reasons which attract the investors to property investment. There are many who have invested in much number of properties. Other forms of investment are incapable of providing better returns as quickly as property investment does.

For them property investment is a faster means to earn better and higher returns and financial benefits. Bank deposits and other financial schemes are only secondary to the property investment.

The most sought after location for property investment is Gurgaon. In fact the city is more or less has become an investor-driven market. However according to many experts the property prices are rocketing in the city mainly due to the presence of vast number of investors. Continue reading

Property Prices Will Remain Stable; No Chance For A Fall

The situation seems impossible for the property prices, especially in the metro cities, to fall downward in near future or ever. Will there be a price correction, sooner or ever?
Property prices will remain stable despite no takers are around.

Property prices will remain stable; despite no takers are around.

The situation in India shows that there will not be a fall of property prices, especially in the metros like Bangalore, Delhi, Mumbai or any other metros. Though everyone wishes a fall in the property prices, it is almost impossible to happen, neither in the near future nor in the longer- future.

Developers have taken loans from the banks and housing finance companies. Some of the builders have even taken loans from private equity firms which normally lend loans at 25 to 30 %. Still, builders are forced to cut down prices as many of the projects remain without any demand as buyers’ sentiment has been hurt by the sky rocketing property prices. Continue reading

English Cricketers Attracted To Indian Properties

The soaring property prices have really attracted some of the English Cricketers. They are very keen to have some investment on Indian properties.
English cricketers attracted to Indian properties

Some English cricketers are attracted to Indian properties.

Seeing property prices soaring in India, some top English Cricketers have expressed their interest in investing in Indian properties. Reliable sources close to the English Cricket Team reveal that around five top-cricketers are interested in Indian real estate market.

Available sources reveal that they have already entered into talks with the developers regarding their property purchase. These cricketers will purchase land parcels or properties in major Indian cities like Bangalore and Mumbai. Some of them prefer to purchase properties in Goa, one of the most favorite tourist destinations in India.

While some of them prefer to own land parcels, others prefer to own apartments in partnership with the Indians. Sources told the Times of India that they have been searching for properties for a quite long while. Sources revealed that the English Cricketers have shortlisted three cities now. Continue reading

Real Estate Market Improves With Better Cash Flows

Real estate market shows signs of improvement as there was a steady increase in the cash flows. Builders hope to pay off their debts as they have better cash flows now.
Real estate market showed signs of recovery.

Real estate market showed signs of recovery as there is an increased cash flow.

With better cash flows the real estate market is back on the track. The increased cash flows lights the rays of hope in builders as they were looking for ways to pay off their debts. Fitch Group’s India Ratings & Research reported that the real estate market, compared to last year, now has better cash flows.

India Ratings, the rating agency has revised the sector from ‘negative’ of last year to ‘stable’ now. The agency said that the inflow of cash is better this year than the last year due to the increased demand. Continue reading

Property prices in Coimbatore may get hike

The jump in land, materials and labour costs has pushed property prices up by 25%-30% per cent and slowed the growth of the real estate sector in Coimbatore in the last two years. Property developers in the city believe that if the real estate sector has to grow at pace similar to that of Chennai, which despite the global economic slowdown, registered a steady growth quarter after quarter, as per the residential price index brought out by the National Housing Bank, the government has to develop infrastructure facilities, promote industries and improve water bodies.

“There is not much space left for property developers inside the city. All construction activities are moving towards the suburbs,” said V Subramanian, president, Confederation of Real Estate Developers Association of India (CREDAI), Coimbatore. However, land prices have increased in the outskirts in the past two years. The cost of material and labour is also on the rise. This has seriously affected the middle income group, which is the major segment that invests money to buy property. Property developers have been forced to pass the cost increase burden on the people, which have slowed down the market.

“Land costs have increased four-fold in Coimbatore, which is causing major problems for developers,” Subramanian said. Cement, which was costing Rs 190 a bag a year ago, is now available for Rs 300. Steel prices have increased from Rs 38000 per tonne to Rs 60000 per tonne now. Developers are struggling to control their costs and boost sales. Omkar Sankar, director, Sankar Foundation, said there is huge demand for affordable and low-budget houses in Coimbatore. But the jump in prices of affordable houses is now becoming a cause for concern, he noted.

Flats that were sold for Rs 4500 per sq. ft. in Ramnagar area are now being sold for Rs 6500 per sq. ft. Similarly, in areas like Vilankurichi, Thondamuthur, Vadavalli, which are outside the city, costs have moved from Rs 2300 per sq. ft. to Rs 3500 and more. Though the recent lowering of interest rate by banks may bring some respite, developers are still in a wait and watch mode. The situation in Coimbatore is different from Chennai, which is well connected with infrastructure facilities even in far-off areas.

There is a huge demand for housing in Coimbatore and in the next few years there would be at least a demand for 1 lakh housing units, said P Karthikeyan, Chief Executive Officer, Trishul Shelters Private Limited. However this would require good connectivity and infrastructure development in the suburban areas, which is lacking now, he said. Besides the developers have to look at ways to keep costs down by adopting innovative methods and different technologies, he noted.

Property Prices Set to Soar in Twin Cities

The lands in Noida and Greater Noida will make houses costlier in both cities. Out of 54 villages in Noida, 40 have been agitating for plots for years. So, more land is still required. There will be no land left for allotment to developers. Demand for land is ever increasing; land prices are bound to go up considerably. Apart from 10,000 odd farmers who are seeking developed land plots, about 4500 farmers in 11 villages of Noida, whose land was acquired before 1997 have also launched an agitation.

The authority says in order to meet the demand the option of raising floor area ratio that allows construction of bulkier buildings. But this alone can’t solve the crisis. The land rates have to go up.

In Greater Noida, the situation is different. Here, two court decisions have quashed forcible acquisition of about 750 hectares of land in two villages. Other villages have also moved court. The process of out-of-court settlement is on. If the farmers are paid more, land prices automatically will go up. If there is no out-of-court settlement, land has to be reacquired under the state’s new acquisition policy, which leaves less saleable land with the authority.