Panel advises single-window clearance for realty projects

Posted on March 12, 2013 by designer

A panel, set up to look in to the matter of project delay, finally suggested single-window clearance to speed up realty projects.

Single-window clearance to pace up real estate projects.

Single-window clearance set to pace up real estate projects.

The builders would be happy as the panel has submitted its report to the government suggesting it to implement single-window clearance. They expect the government to implement single-window clearance for realty projects as soon as possible. However the report submitted by the panel does not include any suggestion from the environment ministry.

Builders are to get clearance from Airports Authority of India (AAI) as well as from the ministry of environment. This is considered as one of the lengthiest process in the construction of a big project. Moreover this delay is said to be a reason which leads to the rise of property prices.

To look into the matter of project delay, a panel was set up last year. Dhanendra Kumar, Chairman of Competition Commission of India (CCI) headed the panel.

Though the panel held a number of meetings, both environment and forests ministry did not participate in any of the meetings. Continue reading →

Mid-segment housing now sets to pick up

Posted on March 12, 2013 by designer

In the opinion of the industry experts, the mid-segment housing will pick up in the current year. Nearly 50% of the total demand falls in this segment.

Mid-segment housing turns the need of the hour.

Most of the people speak highly about the affordable housing segment and top-end housing segment. However they seldom speak about the mid-income housing segment which is slowly picking up in the current year.

Pointing to the fact that India is a country where the majority of the population falls in the mid-income segment, Ajay Mangal, director and CEO MG Housing Pvt. Ltd spoke in an interview that the Mid-segment housing would pick up this year.

Mr. Mangal said that he expects the Mid-segment housing to pick up this year. He added that the situation will not be much different in Delhi the national capital. Continue reading →

CMDA permits construction of houses in industrial land

Posted on March 12, 2013 by designer

The Chennai Metropolitan Development Authority (CMDA) permitted construction of houses in the land which was termed industrial land.

Residential project to be developed in the industrial land, as CMDA grants permission.

Hindustan Teleprinters Limited had 10 acres of land inside the Guindy Industrial Estate. The land parcel was trouble gripped as the owners could not find any takers for the plots. The main reason for this was that the plots were termed industrial land. However the plot owners now may be able to sell the plots as CMDA has permitted housing construction on this land.

The land was on block for the past five years. However the owners HTL could not find any taker for the land parcels. Seeking help, the land owner had approached CMDA which finally permitted construction of residential units in the land.

The growing prices for the residential properties in the area, there would be many developers interested in the 10 acre of land. The Guindy region is not so suitable for the development of any IT parks or commercial districts. Moreover, industrial activities, as a whole, are becoming weak in the city. Continue reading →

Luxury housing segment turns costlier after budget 2013

Posted on March 11, 2013 by designer

The recently launched Budget 2013 will have an adverse impact on the luxury housing segment. Experts opined that the prices will shoot up in the luxury housing segment.

luxury housing segment will be costlier now with the revised deduction rate.

Was the Budget 2013 really a tolerable one? Though many of the experts have expressed that the budget 2013-14 was a moderate one, looking at the fate of luxury housing segment they may rewrite or overwrite on what they have said or written earlier. Here let us see how the budget will have an impact on the real estate sector as a whole and particularly on the luxury housing segment.

It is true that the real estate sector as a whole has received a slight help from the budget. Precisely saying only the affordable housing segment received a boost from the budget. On the other end, the budget 2013 has slapped on the top earners by imposing additional charges on them.

Luxury homes will be more expensive for the buyers as the budget reduced the rate of reduction on homes and flats from 75% to 70%. The revised deduction will be applicable to all homes and flats with over 2000 sq. ft. Continue reading →

Suburbs, better for long term investment

Posted on March 11, 2013 by designer

The growth of suburbs into cities assures better options of returns from the investment in these areas. Property investment in Suburbs is expected to be more attractive and productive than investing in metro cities.

Invest in suburbs for longer periods, to gain better returns.

The growing demand for housing units has asked the real estate developers to develop more housing units outside the metro cities. Suburbs around all metro cities like Bangalore, Chennai, Delhi, Kolkata or Mumbai, or any other emerging cities, have seen spectacular growth.

Growth of these new corridors has provided the investors new options. Yet, the investors must approach such locations with a perfect view of investment. The tenure of investment is one of the main factors, that each investor should be careful.

It is never advisable to have in investment for shorter periods in any of the suburbs. If you plan to invest in any suburb, you should plan to invest for a quite longer time- so to say minimum three to four years.

On the other hand, the metro cities and other tier-I cities are more preferable for short term investment. If you invest for a short term also you will be able to gain bigger or higher returns. This is because the property prices are rocketing in all these cities. Moreover the growth potential of these cities is limited. This will assure sustainable returns to all the investors over the time. Continue reading →

DDA fails to complete flats, flat owners protest

Posted on March 11, 2013 by designer

Showing dissent over the Delhi Development Authority (DDA) which failed to complete DDA flats, flat owners held a protest recently in Mukherjee Nagar.

DDA flats incomplete, complain the flat owners.

Some flat owners, who had moved to ‘incomplete’ DDA flats in Mukherjee Nagar, held a protest against the Delhi Development Authority. They alleged that flats, which were developed under the 2010 housing scheme of DDA, have not yet been completed.

They remain fed up with the Delhi Development Authority which allegedly had not heeded the pleas of the flat owners.

The flat owners have been running from pillar to post with their pleas. However their repeated pleas remained unanswered by the authority officials. Despite their repeated pleas, DDA remained undisturbed till they conducted a protest recently.

Flat owners alleged that the DDA Officials have not yet taken any action to complete the flats. The accusers added that the authority has failed miserably to console the grieving flat owners. Continue reading →

Development of Mumbai Bangalore corridor: Cameron says ready to fund

Posted on March 9, 2013 by designer

While visiting India, British Prime Minister David Cameron told that his government would fund for the development of Mumbai-Bangalore corridor.

Camron offers financial aid to India to complete the development of Mumbai-Bangalore corridor.

Mumbai to Bangalore corridor spreads across over 1000 km. Along this corridor nearly 9 districts and a good number of cities could be built. Around 2 to 3 million of population can settle in each city. Once the project is completed, Mumbai – Bangalore corridor would be offering millions of jobs. David Cameron, the British PM, has showed readiness to help India complete the project.

Speaking about the growth potential of the corridor, Cameron said that the physical infrastructure should be developed in the first phase.The development of social infrastructure must be followed, he added.

Offering their help to finance the project, Cameron said that their government is happy to see the development of Mumbai-Bangalore corridor. Besides financial assistance to the Indian government, Britain also has showed its readiness to cooperate with India in the project.

British prime minister’s office said that the British officials had been working on the 1000 km-long corridor from Mumbai to Bangalore. It added that they already have assessed and analyzed the project well. The development of the corridor: at an estimated cost of $25 billion, will link the commercial capital with the tech hub.

Mumbai-Bangalore corridor needs to be developed, says Cameron.

While addressing the business people and workers at Hindustan Unilever Limited, Cameron told that their country could find complete solution. He added that Britain has good architects, planners and finance experts who could offer better solution to the project.

The British PM predicted that this corridor would be holding 11.8% of total GDP of India by the year 2020. 5.8% of the total population also will be concentrating on this area.

The first phase development will include physical infrastructure, consisting power generation, telecommunication facilities and other transport networks. Once the physical infrastructure is completed, the social infrastructure including education and healthcare facilities should be developed.

Development of 24 industrial cities along the railway line that links New Delhi with Mumbai has also been planned. The project will be developed with the help of Japan. However the project is moving very slowly now and has not reached anywhere around completion.

The British government also has showed its readiness to fund the project. They will fund around $1.55 million or one million Pounds. The project, if completed, would generate over a half million jobs in the country. This will be besides the indirect jobs which the project will bring in. So the total number of jobs would be over two million or even more.

Land Acquisition Bill May Boost Property Prices

Posted on March 9, 2013 by designer

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.

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 →

Maharashtra Govt. nods e-payment of stamp duty

Posted on March 8, 2013 by designer

Renovating the entire stamp duty collection system, Maharashtra Government has approved e-payment of stamp duty.

Maharashtra govt decides to go online for property tax payment.

Property transactions will be easier in Maharashtra now. And you will have more convenience on moving around from office to office, one to the other. All this will be possible in Maharashtra where the government has decided to accept e-payment of stamp duty.

To pay stamp duty for your property transactions, you may soon be spared of doing the rounds of multiple offices.

Under the new model, the stamp duty for property transactions will be collected by authorized banks. With the approval the buyers will be able to pay the property tax in the bank counter.

Under the new system, the buyer, or the one who needs to pay the property tax, can pay the property tax in the bank. However this new system is applicable only for the sum over Rs.5000.

Property deals will be easier in Maharashtra with online tax payment

Once the stamp duty is paid with the bank officer who collects the amount, the officer will return a digital bill to the payer. The bill, known as Electronic Secure Bank and Treasury Receipt (eSBTR), will look like a stamp paper. Moreover it works as a stamp paper.

While the payment is made, the customer has to provide all details related to the property transactions to the bank officer who will feed all the given details in to an online database.

The digital bill or the e-receipt is expected to be more secure than traditional stamp papers. It is the main difference between the two. Traditional stamp papers are more viable to falsifying.

Making it more secure, the category of the paper used for the receipt also will be entered in the database. So it will be easier for the officials to track the receipts and identify whether the produced receipt is fake or original.

The new system of paying property tax through banks will be first initiated in Mumbai and will be followed by Pune. The new system will be introduced in other cities afterwards.

Land Acquisition Bill, No Consensus Reached

Posted on March 8, 2013 by designer

No consensus was reached on land acquisition bill in the all-party meet held on Tuesday. The suggested land acquisition bill was strongly opposed by the opposition leaders.

Land acquisition bill: No consensus yet.

Farmers, whose lands are acquired by the government for the development of infrastructure and industrial projects, will have to wait longer. As against their expectation, the things went. It could be, as it seems, their fault to expect the government to approve land acquisition bill.

Farmers expected to get the compensation soon from the government after approving the land acquisition bill (amendment).

It was true that the government was in a hurry to pass the bill soon so as to speed up over a dozen of slow-moving projects. However the efforts of the government went in vain as no consensus on the bill could be reached in the all-party meet.

Slow land acquisition process is one of the main reasons for delayed projects. The government expected to boost the country’s downturn economy.

The government proposed speedy approval of land acquisition bill. However this was questioned by the opposition parties who did not consent with the bill.

All-party meet does not reach any consensus on land acquisition bill

If the government could pass the bill in the all-party meet it would have provided them an advantage in the upcoming general election. Fortune of the government would have improved or it was expected to do so.

Though the bill was approved by the Cabinet in last December, it still faces strong opposition from the parliament. So far the bill has undergone amendments almost 160 times. Still the parliament opposes the bill.

On the verge of the approval of land acquisition bill, the shares of the real estate firms have gone up. Shares in realty firms had climbed up by 11%. The main push in the sector was the consensus on the bill, which did not happen as expected.

Industries fear that the property prices will go up sharply in the rural and urban areas. The market price for land may also get doubled, making many more people homeless.

Foreign investors to focus on commercial realty

Posted on March 7, 2013 by designer

With the drop of home prices in many of the top cities, foreign investors now plan to invest in commercial properties in India.

Foreign investors plan to shift investment to commercial sector in India.

Foreign investors are active in the country since 2005 the year in which they were permitted. However their main investment options remained residential market due to simpler investment norms. Moreover, once the home is finished, the housing sector offered them chances to exit easily with higher returns.

However with surging number of unsold homes in the country, the foreign investors plan to shift to commercial sector now. It is true that the residential market in India is not as vibrant as it was earlier. This would be a reason what prompts them to exit from the housing sector.

Foreign investors including Blackstone Group, now plans to the move on to the commercial sector for their investment, reported Reuters. The sluggish residential is shown as the reason for their shifted interest.

Though the foreign investors are keen to invest in India due to its fast-growing economy, they do not find investment in the residential project as suitable as it was. Home prices have fallen by 5 to 30% since 2009. This fall of home prices prompts foreign investors to look out for other options. Continue reading →

Bangalore Sees Rentals of Top-End Villas Declining

Posted on March 7, 2013 by designer

Rentals of top-end villas declined in Bangalore over the past year. This is mainly due to the increased number of villa projects in Bangalore.

Top-end villas face rental decline in Bangalore

Top-end villas in Bangalore face decline of rentals.

With many upcoming residential villa projects in the city, Bangalore now sees a decline of rentals of top-end villas. Moreover the rentals are affected by the lowered number of expats in the city.

Available data prove that the rentals of top-end villas have declined by 25 to 30% in the past year.

DTZ India, a leading property consultant, reported that the rentals in Whitefield are going at lower rates. Whitefield, last year, had seen a growth of rentals from 2.5 L to Rs.4 lakh per month. However the rental rates have gone sharply down this year.

Another realty consultant L J Hooker India too reported a similar fall of rentals in the city. It stated that the rental, even at the most sought after Palm Meadows, have fallen sharply from Rs.4 lakh to Rs.3 lakh per month.

Most corporates have reduced their budgets due to the tight global market conditions. Some of them even had the plans to cut short the number of expat. Continue reading →

Godrej BKC jointly launched by Godrej Properties and Jet Airways

Posted on March 6, 2013 by designer

Partnering with Jet Airways, Godrej Properties will develop a commercial project in the Bandra Kurla Complex in Mumbai. The airline and the realty firm will hold equal shares of the project named Godrej BKC.

Godrej will develop a commercial project named Godrej BKC jointly with Jet Airways.

Real estate wing of Godrej Group, Godrej Properties Ltd. (GPL) will launch a commercial project, named Godrej BKC, in the Bandra Kurla Complex area. Jet Airways will partner with Godrej Properties for the development of this commercial project.

The construction has already been started and the project is expected to get over by 2015-end.

Pirojsha Godrej, the Managing Director and Chief Executive of GPL; while commenting on the project, said that the firm expects to create around Rs.3,500-4,000 Cr from the project. He added that the project will be completed within two to three years.

However, he kept his lips crossed when asked about the financial details of the project. So far no financial details are available.

The cost will be borne by both Jet Airways and Godrej Properties equally. They will have 50 – 50 share in the project named Godrej BKC. Jet Airways has already reserved 2.5 lakh sq. ft. of office space in the project. The total salable space in Godrej BKC is 1.3 million sq. ft. Continue reading →

Focusing affordable housing, DDA Budget 2013-14 passed

Posted on March 6, 2013 by designer

Delhi Development Authority (DDA) has recently passed its budget for the year 2013-14. The main thrust of the DDA budget is affordable housing and the preservation of green areas.

Affordable housing sector is the main focus of DDA Budget 2013-14.

In a meeting held on Tuesday, Delhi Development Authority passed its DDA budget for the year 2013-14. The budget is passed with a special focus on affordable houses. Besides the focus on the affordable houses, the budget includes special provision for the maintenance of green areas in the city.

Low-income housing or affordable houses will be boosted. However the development authority plans to develop the affordable houses in the outskirts of the city. Infrastructure projects also are likely to be boosted by the newly launched DDA budget.

DDA chairman Tejinder Khanna said that a chart will be prepared before the next meeting of the authority. The chart will include each project’s timeline and expected date of completion.

Once the chart is prepared, it will be easier for DDA to monitor the development of all projects and its delay. This will help the Authority accelerate the slow moving projects in the city. Continue reading →

Foreign retailers to drive the demand for office space

Posted on March 5, 2013 by designer

The demand for office space will be driven by the foreign retailers who now plan to expand their stores in India.

The expansion plan of the foreign retailers will boost the demand for office space in India.

The expansion plan of the foreign retailers like Starbucks, will boost the demand for office space in India.

Office space will be more demanded in the major cities where the foreign retailers plan to expand their offices. According to the market intelligence report there are many foreign retailers who will drive the demand for office space with their expansion policies.

Gron Stockholm, Hamleys, Hennes and Mauritz (H&M), Lacoste and Starbucks are a few among the many foreign retailers who set to expand and establish their business empire in India.

However their expansion plan will boost the office space absorption in the major and top cities. Continue reading →

Hot Investment Destinations in the Delhi NCR

Posted on March 5, 2013 by designer

Offering higher returns to the investors, properties in Delhi NCR remain one of the most sought after options of investment. Investors in the Delhi NCR are keen to invest even on residential plots as well.

Investment in Delhi NCR properties increases as it offers better returns to the investors.

Delhi NCR is one of the top real estate investment destinations in India. The city offers higher returns to the investors and so there are many investors who remain keen to invest in the properties in this region.

According to a recent survey, nearly one-fourth of the property investors are attracted to Delhi NCR which is second hotter destination after Mumbai. The area offers around 90% of returns to the investors.

Among the investment options in the Delhi NCR, Dwarka Expressway Corridor is the best and most sought after real estate investment destination. The area’s growth is well-supported by the infrastructure development and the location advantages. Continue reading →

Portugal welcomes Indian realty investors

Posted on March 5, 2013 by designer

Portuguese foreign minister Paulo Portas, on Monday, promised residency permits to all who will invest in Portugal. This is considered as part of their strategy to invite more non-European investors to their country.

Cities in Portugal may witness more Indian investors.

While visiting India, Portuguese foreign minister Paulo Portas promised residency permits to all the Indian realty investors who will invest in Portugal.

Citing the strategic location of Portugal, he added that it would be open the doors of Europe in front of the Indian realty investors. However the investment in Portugal is expected to provide access to the entire European Union countries.

Portugal has already approved the golden residency permit which permits the non-European citizens to have full access across the European countries in the Schengen area. However the investor is expected to invest either in the real estate or start up an industry in Portugal. Continue reading →

Housing shortage to hit India hard: Knight Frank

Posted on March 5, 2013 by designer

According to Knight Frank, India will have to face or witness severe housing shortage. One of the main drawbacks in the construction sector is funding.

Housing shortage will be one of the biggest problems India will have to deal with.

Knight Frank India has published its latest research report entitled “Economy and Realty @ Glance.” In the global property consultant’s opinion the best way to meet the housing shortage is Real Estate Investment Trust.

The report concentrates mainly on the housing shortage which India faces now. According to the property consultants the best thing to meet the housing shortage is Real Estate Investment Trust (REIT) model.

Knight Frank India suggests that the funding of real estate projects can be met with REIT effectively. Funding is one of the main problems which the developers are facing and it can be well tackled through REIT. Continue reading →

Budget 2013-14 Proposes Rs.1L Deduction to First-Home Buyers

Posted on March 1, 2013 by designer

With the Rs.1 lakh deduction on interest rates on home loans up to Rs.25 lakh, the first time home buyers alone may benefit from the Budget 2013-14 which was presented in the parliament on Feb 28.

Budget 2013-14 will help the first time home buyers

The much awaited Budget 2013-14 was presented in the parliament by the finance minister on Feb 28. This year the budget did not have many sops to the real estate sector as a whole.

However real estate sector will benefit from the budget as it includes deduction of interest in the home loans by the first-home buyers. Those who plan to buy home for the first time can gain tax exemption and deduction in the interest rates up to Rs.1 lakh.

This will have more effect on the middle income class and so the buyers of this class will have a reason to be happier. Continue reading →

Budget 2013-14: No Big Boosts for Real Estate Sector

Posted on March 1, 2013 by designer

The real estate sector was expecting that the union Budget 2013-14 would be a supportive one for them. But however the budget did nothing special to the construction sector nor did anything harmful to the sector.

Budget 2013-14 hardly helps real estate sector

Budget 2013-14 helps real estate sector only slightly.

It was true that the real estate sector had been waiting for the Budget 2013-14, with the hope to gain some benefits and boosts from the finance ministry.

Omitting the regulatory bill, industry status and single window clearances, the finance minister slapped on the real estate players sector slightly. All these were expected to be included in the Budget 2013-14.

However, the finance budget included some good measures which will improve and boost the housing sector, especially the affordable housing segment.

By providing Rs.1 Lakh deduction of interest rates to the first-time-home-buyers; for the loans up to Rs.25 lakh, the finance minister did address the buyers. This move of the finance minister is expected to drive the housing demand for the affordable housing units in the future.

Appointment of the Regulatory Authority for the road sector to solve out the issues related to the acquiring of land parcels is another positive move included in the budget. The regulator is to look after the problems of the developers who find it difficult to construct on the corridors. The regulatory authority will be reviewing the performance and policies of National Highways Authority of India.

Chidambaram's finance budget 2013-14 provide no better relief to the real estate sector

Chidambaram has to cover his face as finance budget 2013-14 provide no better relief, as expected.

The budget has also reduced tax exemption to homes above 2000 sq. ft. from 75% to 70%. This will affect the luxury housing segment and will be applicable to all homes worth over Rs.1 Cr.

Speaking about the budget and its impact on the real estate sector Supertech Realty Group’s MD Mr. RK Arora said that he felt upset when he heard the news to levy TDS on property transactions beyond Rs.50 lakh. He added that this would have a negative impact on the real estate market which is already sluggish.

Jones Lang LaSalle India’s Chairman & Country Head Mr. Anuj Puri was of the opinion that though the budget is a moderate one as a whole but was really tepid for the realty sector. He; mentioning the Rs.1 lakh deduction, added that the budget would only help the affordable housing sector in the tier-2 and tier -3 cities and not the entire sector.

Mr. Puri added that the budget’s focus on education and job creation would certainly benefit the real estate sector. Education is now a subsidiary segment of real estate and the focus on the education will boost the real estate sector.

NAREDCO President and Raheja Group’s CMD Mr. Navin Raheja said that he was expecting infrastructure status to the housing sector at least. Another expectation was the deduction of cost of finance for the construction.

In short the Budget 2013-14 provided nothing big or special to the real estate sector. The budget will help real estate sector only in a smaller way as there are some initiatives to improve the housing demand. Some of the builders fear that the increased tax on the super-rich class would affect the sale of luxury housing units.