Budget 2013 -2014: An Overall Review

Posted on February 28, 2013 by designer

Budget 2013 -14 was awaited with lots of expectations and hopes. The budget, announced by the Finance minister today, was received with mixed feeling by the common population.

P Chidambaram announced the Budget 2013.

Finance Minister announced the Budget 2013 today. This is his eighth finance budget and the first one after returning to the Finance Ministry, as its head last year. The budget slightly slapped the top-earners by imposing overload on their shoulders. Many of the luxury items will become costlier while a few common goods will become cheaper.

Foreseeing the 2014 general election, the Finance Minister remained highly keen to offer some sops to the tax payers (income). On the other hand; by raising the duties on luxury and imported vehicles, mobile phones and cigarettes, the finance minister slapped the ‘ultra-rich’ millionaires of the country.

Tax Proposals in the Budget 2013 -14

The budget proposed to raise an additional Rs.18,000 Cr in the form of tax. However the budget has not made any changes in any of the tax-slabs. Mr. Chidambaram gave a tax benefit of Rs.2000 to all the individual tax payers with income up to Rs.5 lakh.

As there is no alteration and revision of slabs the income payers will have to pay as per the existing slabs. As per the existing rates an individual with income between Rs.2 to Rs.5L will have to pay 10%. In the same way, those with above Rs.5L will have to pay 20% and those above Rs.10L will have to pay 30%. Continue reading →

Budget 2013: What it offers to Indian Realty?

Posted on February 28, 2013 by designer

Budget 2013 was expected to be a real estate friendly budget due to many reasons. Crushing the hopes of builders and realty players the Budget 2013 remain tepid to the sector.

Budget 2013 holds nothing special to the realty sector

The first time home buyers will be benefitting from this budget as the Budget 2013 has proposed Rs.1 lakh additional deduction to them. As per the proposal of the budget the home buyers will be given Rs.1 Lakh deduction for the loans up to Rs.25 lakh and Rs.1.5 lakh for the loans above Rs.25 lakh.

By raising the tax deduction limit by Rs.1 lakh, finance minister P Chidambaram aims to promote the housing sector.

Anuj Puri, Chairman Jones Lang LaSalle India, said that the Budget 2013 is not realistic as it was expected to be. In the opinion of Mr. Puri though the Budget 2013 as an overall level is a moderate one it was not so useful to the real estate sector.

Continue reading →

GHMC to Implement Penalty on Owners of Illegal Buildings

Posted on February 28, 2013 by designer

The Greater Hyderabad Municipal Corporation (GHMC) has taken the decision to collect an additional tax in the form of fine from the owners of illegal structured buildings.

GHMC to impose additional penalty on the owners of illegal constructions.

GHMC plans to impose additional penalty on the owners of illegal constructions.

The owners of those buildings which are built against the legal norms of The Greater Hyderabad Municipal Corporation (GHMC) will be hit hard as the civic body plans to levy an additional charge of property taxes on these owners. As against the existing 25% property taxes, these owners will have to pay 100% more as a fine.

The new penalty rule is likely to be implemented by GHMC on April 1 this year. GHMC is expected to gain over Rs.30 Cr in the form of revenue by this penalty as the civic body has already found over three lakh unauthorized properties in Hyderabad.

The civic body has so far assessed only 12 lakh properties; and so there is a possibility for the number to jump again.

An official of GHMC said that the new penalty will be applicable to all forms of buildings. The new rule will cover villas and independent houses, flats or apartments and so on. Continue reading →

Delayed Clearances Shoot up Property Prices: ES 2013

Posted on February 28, 2013 by designer

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.

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 →

Domestic Demand Drives the Growth of Tier-2 Cities

Posted on February 27, 2013 by designer

Tier-2 cities of India have been witnessing a stabilized domestic demand for residential as well as commercial properties. In fact the domestic demand drives the growth of tier-2 cities.

Tier-2 cities will grow as a result of domestic demand and not on foreign or NRI investors.

Unlike the big cities which witness the demand of NRIs and other HNIs, the smaller cities or tier-2 cities are growing due to the domestic demand for residential and commercial properties. Property prices in these cities are more stable and not rocketing as in the other major cities.

When surveyed among the occupants of tier-2 cities, majority of them opined that the property prices will stand stable in these cities. However a few said that the property prices will be increasing by 70% by the next year. Continue reading →

Faridabad Set To Compete With Gurgaon and Noida

Posted on February 27, 2013 by designer

With high paced infrastructure development and growing transportation facilities, Faridabad is slowly emerging as one of the best realty locations in the NCR.

Faridabad real estate booms along with widening of Highways.

Faridabad has already become a hot spot for the realty players. Many of the most noted real estate developers of the NCR region have their projects in the city now.

Though the city is facing hard-hearted competition from other neighboring cities like Gurgaon, Noida and Greater Noida, it still has achieved a place among the hot real estate locations in the NCR region.

Compared to other neighboring cities the city is more suitable and demanded by middle income class group. Viewing the increasing population level; in the city Haryana Urban Development Authority has launched a 20 year development plan for the city. Continue reading →

Green Norms to Be Eased For Real Estate Construction

Posted on February 26, 2013 by designer

In a step to boost the real estate construction, the environment ministry now plans to ease green norms. Once the green norms are eased more high-rise buildings can be constructed.

Easing of Green Norms: a green signal for high-rise apartments.

The people may see builders developing more high-rise buildings on the side of smaller roads and streets in the cities. Yes, this will be possible if the environment ministry eases the green norms for the construction sector.

By laying down the rules which limited the height of a building, the environment ministry had made it tougher for the real estate developers to create taller or multi-story buildings in cities. The height of the buildings was determined by its closeness to the nearest fire station and many other things similar to this.

Right now a 60-metered building will be given the clearance certificate only if the building is on a 30 m or above wide road and have a fire station within two kilometers distance. Continue reading →

Thane: Connectivity-Based Popular Realty Destination

Posted on February 26, 2013 by designer

Connectivity is considered as one of the major factors which makes Thane in Mumbai as one of the top most and popular realty destination. In fact connectivity fuels Thane’s popularity.

Connectivity holds the growth-key of Thane.

A few couple of years or decades back, Thane remained as an unpopular suburb in the Mumbai Metropolitan Region, right now this has become one of the most popular suburbs in the region.

Though the well planned development and schemes of the Authority plays a key role in the growth of Thane, the main role is played by the connectivity which has attracted more population to the city. Along with the infrastructure growth the connectivity of the area got developed.

The area is all set to be a fully–developed city in all spheres. With easier connectivity to Brahamand, Ghodbunder Road, Owala and Patlipada, the city becomes a hub for all the other areas of the city. Moreover there is a simultaneous and concurrent growth of commerce and infrastructure in the city. Continue reading →

Sahara Group in Deep Troubles: Delhi-Based Investor Moves SC

Posted on February 25, 2013 by designer

Leading Sahara group in to more trouble, a Delhi-based investor approached the Supreme Court last day. He requested the SC to give directions to redeem his investments.

Sahara to face more troubles

Requesting Supreme Court to give directions to redeem his investments; the petitioner claimed that he is one of the real OFCD investors in the Sahara List, a Delhi-based investor approached SC. The petitioner claimed that he had invested in one of the Sahara group companies.

He requested the Apex court to direct the Sahara group firms – Sahara India Real Estate Corp (SIRECL) and Sahara Housing Investment Corp (SHICL) to pay back his due.

Though there were around 3Crore investors as per the list produced by Sahara before the SC and SEBI, this is the first time one of the investors came up against the firms. However finding some dubious facts in the investors’ list, SC had ordered the subsidiary firms of Sahara to refund over Rs.24000 Cr to the investors as a fine. Continue reading →

Property Investment: Pre-Launch Properties Remain Better

Posted on February 25, 2013 by designer

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 →

SEBI Warns the Public against Dealings with Sahara

Posted on February 22, 2013 by designer

The Securities and Exchange Board of India (SEBI) urged the public not to enter into any dealings with two firms of Sahara Group whose properties are attached by SEBI.

SEBI warns investors against their dealings with Sahara.

SEBI shows ‘danger sign’ to the investors against their dealings with Sahara.

On February 13, the Securities and Exchange Board of India ordered the attachment of all movable and immovable properties of Sahara India Real Estate Corp Ltd and Sahara Housing Investment Corp Ltd. Along with the attachment of properties of these firms, the properties of their three promoters and directors also were attached by SEBI, the Market Regulator.

SEBI froze the projects of both the Sahara firms as they failed to comply with the Supreme Court order. In 2012 August, SC had ordered these firms to repay over Rs.24000 Cr to the OFCD investors. Additionally the SC had empowered the Market regulator to seize the property of these forms in case if these firms failed to pay the amount within the prescribed time. Continue reading →

Connaught Place & BKC among the Most Expensive Office Locations

Posted on February 22, 2013 by designer

Connaught Place in New Delhi and Bandra-Kurla Complex(BKC)in Mumbai have been counted among the top and most expensive office locations in the Asia-Pacific region.

Connaught Place: the low class business people are forced to sell their goods in the open market as offices have become hotter here.

Connaught Place: As offices have become hotter here, the number of street-marketers may increase.

According to Cushman & Wakefield’s annual survey titled ‘Office Space Across The World 2013′, Connaught Place in New Delhi and Bandra-Kurla Complex (BKC) in Mumbai are included among the most expensive office locations in the Asia-Pacific region. Surprisingly the list dropped Nariman Point from the top 10 list.

As per the global real estate consultant’s report, Connaught Place; where the yearly cost of office space per sq. ft. was $162, stood second in the top 10 list of the region and fourth in the worldwide list. While with $82 per sq. ft. of yearly cost, BKC ranked eighth in the list.

Meanwhile Nariman Point which was considered as one of the most expensive office locations in India was not included in the top 10 list.

Connaught Place emerged as the fourth most expensive office locations in the world. This is mainly due to the shortage of office space in the area, said Mr. Sanjay Dutt, executive MD, C&W. Continue reading →

Housing Sector Likely to Have Infrastructure Status

Posted on February 21, 2013 by designer

Aiming to provide affordable homes to all the people, the union government is seriously pondering over the matter to confer infrastructure status to the housing sector.

Housing sector is likely to gain infrastructure status soon.

Economically poor and weaker sections of people are on the verge to own a home in near future. This will be possible for them if the union government confers the infrastructure status to the housing sector.

The decision is believed to be taken in the upcoming budget session of the parliament. However the matter is under the consideration of the Finance Ministry and Reserve Bank of India.

A senior official with Ministry of Housing and Urban Poverty Alleviation (MHUPA) said that it is likely that a favorable decision is taken on the matter. The official added that the ministry is planning to offer some income tax exemptions and service tax reductions to the housing sector.

Conferring infrastructure status is believed to boost the housing sector as it will provide easier access to funds. As a consequence, the availability of houses also will be increased simultaneously.

A recent study on the urban housing shortage revealed that in 2012 nearly 18.78 million housing units were short in India. A major share of the shortage was in the medium and low budget housing units.

Housing sector may get infrastructure status in the coming Budget session.

The supply of housing units in the economically weaker section and lower income group fell sharply. The former witnessed a shortage of 10.55 million housing units while the number of the latter was 7.41 million.

The shortage cannot be mended by the government but only by the private developers who find it all the more difficult to construct cheaper homes due to the increased cost of construction. The land also has become so costly that added the cost of construction. Increase in the interest rates also affected the property prices.

The developers have been demanding for infrastructure status for the housing sector for a long while. MHUPA also raised the demand for the same. Conferring the infrastructure status to the housing sector will boost housing sector and the builders will be benefitting from this as it will enable them to own some tax exemptions and other tax benefits.

HC Asks DDA To Probe into the Illegality of Plot-Deals

Posted on February 21, 2013 by designer

Delhi Development Authority (DDA) is asked by the Delhi High Court to probe into illegal residential land dealings including the sale and purchase.

DDA To investigate into the illegality of land deals in the city.

Today Delhi High Court ordered the vice chairman of DDA (Delhi Development Authority), to probe into the illegal dealings of residential plots in the city.

Delhi Development Authority bench headed by Chief Justice D Murugesan; showing inclination to the PIL filed in this regard, ordered the Vice-Chairman of the DDA to look into the matter efficiently and effectively. The HC Bench consisting Justice V K Jain, said that the petition is passed to DDA which will look into the matter seriously.

The residential plots; which are allotted under the scheme of large-scale acquirement, development and selling of land, are illegally sold and purchased in the city. Continue reading →

Bangalore Residential Market Goes Green Now

Posted on February 20, 2013 by designer

Green buildings are slowly becoming the new trend in the Bangalore residential market. Recent reports show that the number of green buildings is increasing in the city.

Green buildings strike Bangalore residential market .

There are totally 41 LEED India-acknowledged green buildings in Karnataka. Out of these 41 green buildings 39 are in Bangalore. Now you realize how Bangalore residential market is becoming green now.

Karnataka has fourth-maximum number of green buildings in India. However there is a good appreciation from the buyers’ side as well. The people in Bangalore demand more for green buildings now and it seems to have become one of the leading trends in Bangalore residential market.

With the highest number of green buildings, Maharashtra is on the top list which is followed by National Capital Region and Tamil Nadu.

According to the industry experts; in India, the number of residential apartments – compared to commercial buildings, will be more by 2030. Continue reading →

HUDA Postpones Plot Allotment: Owners’ Wait Gets Longer

Posted on February 20, 2013 by designer

As Haryana Urban Development Authority (HUDA) has postponed plot allotment in Gurgaon; following the HC order, the wait of the 700 plot owners still got longer.

HUDA postpones plot allotment after the HC order.

Haryana Urban Development Authority was expected to allot the plots to the plot owners last week. However, surprising the plot owners of Gurgaon, HUDA postponed the plot allotment.

All the steps had been completed for the HUDA to announce the draw of lots last week. However due to some reasons HUDA has to postpone the plot allotment for indefinite period of time.

Plot owners have been battling for owning a plot in Gurgaon for a quite long time. They hoped that their battle would get over as HUDA had been expected to announce the plot allotment. Continue reading →

Noida Extension Flat Owners Relieved As NCDRC Stays Cancellation

Posted on February 19, 2013 by designer

National Consumer Dispute Redressal Commission; providing great relief to the flat owners of Noida Extension, has stayed the cancellation of flats by a developer.

Flat buyers of Noida Extension finally relieved as their cancelled bookings were stayed by NCDRC.

Proposed flat owners of Noida Extension finally were relieved as National Consumer Dispute Redressal Commission stayed the cancellation of their bookings. The commission stayed the cancellation of over 100 flats which were allegedly cancelled by a developer.

It was in last month; leaving the flat owners to stay in distress, a developer cancelled the bookings soon after the Greater Noida Master Plan 2021 was approved by the planning board of NCR. Once the Master Plan got the approval, the construction was resumed in the area.

Distressed home buyers of Noida Extension had approached the commission earlier last month against the private developer who cancelled their bookings. Continue reading →

Corporates Move HQs to Bigger Offices As Rentals Fall

Posted on February 19, 2013 by designer

Perfectly utilizing the sluggish realty market and the fallen rentals in the cities many of the corporates are now moving their headquarters to bigger offices where they will enjoy better amenities and facilities loaded with ample space.

Corporates plan to shift their HQs to bigger offices as rentals slightly fall.

Due to the sluggish realty market the rentals have fallen in many of the cities like Bangalore and Mumbai. Seeing this fall of rentals as a good opportunity, many of the corporates are moving their headquarters to bigger offices.

Bigger offices with ample space are also noted for better amenities and facilities. The corporates are sure that they enjoy better amenities now at comparatively an equal amount or slightly higher amount they used to spend for a small office now.

The Corporates feel that the headquarters is the sign of their prestige and status. The fall of rentals in some of the top cities of India has prompted them to think in this way to move their HQs to bigger offices. Continue reading →

Iyyapanthangal in Chennai Entices Buyers With Connectivity

Posted on February 18, 2013 by designer

With infrastructure growth in the area, Iyyapanthangal in Chennai has become one of the most sought after destinations in Chennai. The area now offers better connectivity to the people here.

Connectivity boost the growth of Iyyapanthangal

The home buyers are always keen to know the connectivity of the area. Once they feel that a residential property is located in a location where they can enjoy better connectivity, their sentiments are boosted and they readily buy out the property. This is what happens in Iyyapanthangal in Chennai now.

Iyyapanthangal; an area located in the Sriperumbudur Taluk of Kancheepuram district, has carved a place for itself in the Chennai’s real estate landscape. The growth of the area is mainly due to its improved connectivity and infrastructure development.

Iyyapanthangal is rightly supported by better connectivity and infrastructure. The residents of the location enjoy better advantages as it is situated between the Bangalore Highway and the Grand South Trunk Road which provides better connectivity.

Connectivity and infrastructure development affects the property prices of the area which move upward day by day. The average capital value for the properties here range from Rs.4000 to Rs.6000 per sq. ft. There is an increase in the rental rates of the area as well. Continue reading →

GVK to Monetize Mumbai Airport Land: Modernization Aimed

Posted on February 18, 2013 by designer

To modernize the Mumbai airport; prominent Infrastructure and Power Developer firm GVK plans to monetize the real estate lands of the Mumbai international airport.

GVK plans to monetize Mumbai airport land with the aim to modernize it.

GVK Power & Infrastructure Ltd owned Mumbai International Airport Ltd (MIAL); a firm which is developing the Mumbai international airport now plans to monetize the allowed real estate land for monetizing.

While commenting on the issue, Mr. Isaac George Director of GVK Power, told that the initially GVK will monetize about 2.9 million sq. ft. He added that the process will be initiated by the beginning of June this year. However, he did not reveal the details of the fund expected to be raised through monetization.

The monetization will be finalized only once it gets the approval of Maharashtra Chief Minister,who has already approved the plan as the chairman of Mumbai Metropolitan Regional Development Authority (MMRDA). Continue reading →

BMC Increases Water-Supply: Construction May Get Boost

Posted on February 16, 2013 by designer

Providing relief to the residents of the city, finally Brihanmumbai Municipal Corporation- BMC has announced an increase in the amount of daily water supply.

BMC will increase water supply level giving relief to the residents of the city.

Builders in Mumbai finally had something to cheer and be joyous as they heard the news that the Brihanmumbai Municipal Corporation (BMC- also known as Municipal Corporation of Greater Mumbai) is increasing the amount of daily water supply.

BMC has announced an increase from 90 liters per head per day to 135 liters per head per day. The new level of water supply will be effective from October 1, announced BMC.

Up to last year, finding water for construction was the main concern for the builders. They really had to struggle to find sufficient water for housing constructions in the city. As the civic body increased the daily water supply, the builders will be able to find sufficient water for construction purposes.

In experts’ opinion the decision of BMC will be boosting housing industry to greater extents. However they are sure that the increase in daily water supply is not meant for the builders but for the residents.

BMC will make sure that all the leaking pipes in the city are either replaced or repaired.

For a long time, residents of the city had been suffering from acute shortage of water which is a basic necessity. Mr. Paras Gundecha, Maharashtra Chamber of Housing Industry (MCHI) Chief said that this news is a relief to the residents of the city who struggle with water-shortage.

Mr. Gundecha added that though the consumers are aware of the water shortage, they had no option but to complain about the shortage they faced as it is basic.

Last year, though BMC had promised to bring over 200 MLD of water supply to the city, it could not fulfill the promise due to inadequate rain which drained the water level of the Middle Vaitarna Dam.

A senior civic official from the water department revealed that this year adequate water will be collected and supplied in the city in abundance. The official added that BMC has considered changing old and corroded pipelines which cause the loss of lot of water while supplied.

Bollywood Loses Multiplexes Due To Sluggish Realty Market

Posted on February 16, 2013 by designer

Due to the slowdown in the realty market, Bollywood missed many multiplexes which were supposed to be completed by now. It affected the entire Bollywood industry.

Revenue of Bollywood movies affected as number of multiplexes are lower.

Revenue of Bollywood movies is affected as number of multiplexes are lower.

Bollywood film industry is affected by the sluggish realty market which has halted many mall projects. It is estimated that around 150 multiplexes across the country has not been completed in time due to the slowdown in the realty market.

It is a bad news for any Bollywood fan to hear that real estate market has indirectly affected the Bollywood industry. If the developers are not developing multiplexes, where will the Bollywood movies be shown and the people will be able to watch them. So in short the slowdown in the real estate sector has affected Bollywood, though indirectly.

In India, majority of the multiplexes which contribute a major share of film’s total collection, are built in malls. Once the mall construction has been halted by the developers due to the existing slowdown, the film industry also is affected. According to experts, Bollywood industry might have lost over 150 multiplex screens which would have generated more income to the industry. Continue reading →

SEBI Attaches Sahara’s Assets: Freezes Realty Projects

Posted on February 15, 2013 by designer

Recently Securities and Exchange Board of India- SEBI attached all the bank accounts and realty assets of two Sahara group companies. The SEBI order is expected to freeze the realty projects of the group.

SEBI orders freezing of all properties owned and held by Sahara firms.

Freezing the accounts and real estate assets of two Sahara group companies, Securities and Exchange Board of India attached their properties. The order of SEBI will affect the real estate projects of the firms. Aamby Valley City project, an ultra-luxury township project with golf club and other modern facilities, is one of them.

Under the SEBI order, Sahara India Pariwar’s Aamby Valley project will stand frozen. The villa and timber chalet project; being developed at Lonavala in Pune, spreads over 707 acres. This is considered as one of the major projects of Sahara India Pariwar. Continue reading →

Budget 2013 to Give Hopes to Home Buyers

Posted on February 15, 2013 by designer

Budget 2013 is expected to offer some hopes to the home buyers as finance minister has signaled some special provisions for the affordable housing segment.

Budget 2013 likely to boost affordable housing.

Budget 2013 is expected to be a real estate- friendly budget as there will be some special provisions to boost the housing segment in the country. Union finance minister P Chidambaram has already hinted that the government has plans to confer infrastructure status at least to the affordable housing segment.

Demands of the realtors are many and may have an end for any of them. They seek tax exemptions, lower interest rates for their loans, lowering the cost of finance for construction sector, and so many others. Some of them demand Single –window clearance for speedy approvals.

Besides all the above said demands, realty players have recently asked for infrastructure status to the entire real estate sector as it would enable them to attain some tax benefits. Continue reading →

Real Estate Bill Likely To Protect Flat Buyers

Posted on February 14, 2013 by designer

Real estate bill is likely to protect flat owners and prospective buyers from the unethical and unscrupulous builders. The real estate bill is expected to be presented in the upcoming parliament session.

Real estate bill will give new horizon to real estate industry

The prospective buyers can rejoice finally. They have got a reason to do so as real estate bill is expected to be passed in the upcoming parliament session. It is expected to restrain the unethical and unscrupulous builders from looting the flat owners and buyers.

In the opinion of the experts, harsh and corporal punishment to the builders for fraud behaviors will remove all unethical and unscrupulous practices from the industry as a whole. Real estate sector looks so fine and attractive from outside as it gives new shapes to the cities.

However once the real estate bill is passed, the real estate developers may not be as happy as they used to be. The new real estate bill has provisions to punish the unscrupulous builders for proved fraud behaviors in the industry. Though the builders have demanded for monetary punishment in place of jailing, the decision has not yet been taken. Continue reading →