Tag Archives: India

Explain the Land Use Pattern in India

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In India, the term “land use pattern” describes the uses of various types of land for multiple activities, including agriculture, forestry, mining, settlements, transportation, and industries. Numerous natural, social, economic, and political factors impact India’s land use pattern. 

  • In India, 60% of the country’s land area is used for agriculture, making it the most prevalent land use. There are three categories of agricultural land: net sown, forest, and other uncultivated. 
  1. Net Sown Area: This term describes the land used for crop cultivation. The net sown area comprises about 45% of India’s total land area. 
  2. Forest Area: The area of land where forests are growing. About 23% of the total land area in India is forest area. 
  3. Other Uncultivated Lands: This category includes any land that is either unsuitable for cultivation or has been left fallow for a while. Other uncultivated land makes up roughly 32% of India’s total area.  
  • Forestry is India’s second-largest land use, taking up about 23% of all land area in the nation. Four classifications exist to classify the forest area: reserved forests, protected forests, unclassified forests, and village forests. 
  1. Reserved Forests: These are forests that the government has set aside to preserve the flora and fauna that call them home. About 53% of the total forest area in India is reserved forests. 
  2. Protected Forests: The government reserves protected forests, which make up about 30% of India’s total forest area, for industrial uses like the production of fuelwood and lumber. 
  3. Unclassified forests are those that are not designated as protected or reserved forests. About 16% of the total forest area in India is unclassified forests. 
  4. Village forests are the woodlands that the locals own and maintain. About 1% of the forest area in India is village forests. 
  • Mining: As a source of raw materials for numerous industries, mining is a significant land use in India. Among the main minerals mined in India are coal, iron ore, bauxite, manganese, copper, limestone, and other minerals. There is a concentration of mining activity in states like Jharkhand, Chhattisgarh, Odisha, etc. 
  • Human Habitations: Human settlements are the places where individuals live and work. In India, there are three types of human settlements: tribal communities, urban communities, and rural communities.
  1. Rural Settlements: These are places where villagers live and work in agriculture and related industries. About 70% of the total population in India lives in rural settlements. 
  2. Urban Settlements: These are places where individuals reside in cities and towns and carry out a variety of non-agricultural pursuits. Urban areas are home to about 30% of India’s total population. 
  3. Tribal Settlements: These are the places where India’s native population resides. The nation’s hilly and forested areas are home to tribal towns. 

The Impact of GST on Renting of Residential Property in India

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On June 28 and 29, 2022, the 47th GST Council meeting occurred. Following the previous GST Council meeting, there were multiple modifications to the Goods and Services Tax (GST). The partial elimination of the GST exemption for services provided in connection with the rental of residential property is one of these significant changes.

It’s crucial to recall that services involving the rental of residential properties for use as a residence were exempt from GST as of July 1, 2017. As of July 18, 2022, certain elements of the exemption will be withdrawn.

Residential and commercial rentals are subject to the GST on residential property rentals. Therefore, even if a residential property is rented out for commercial purposes, the rent remains subject to GST. 

ParticularsNew notificationsOld notifications which are amended vide the new notifications
Notice covering exemption available under GSTNotification no. 04/2022- Central Tax (Rate) dated 13th July 2022 [amendment effective from 18th July 2022]Notification no. 12/2017- Central Tax (Rate) dated 28th June 2017
Notification covering the applicability of the reverse charge mechanismNotification no. 05/2022- Central Tax (Rate) dated 13th July 2022 [amendment effective from 18th July 2022]Notification no. 13/2017- Central Tax (Rate) dated 28th June 2017

The said amendment relating to the applicability of GST on the rental of residential property is briefly covered in the present article.

GST liability for renting a residential property till July 17, 2022

Since the beginning of the Goods and Services Tax (GST), or as of July 1, 2017, any person who is engaged in renting out residential properties specifically for habitation was eligible for a GST exemption. Notably, the exemption listed at SI No. 12 of Notification No. 12/2017- Central Tax (Rate) from June 28, 2017, is tabulated below: 

Heading Description of service Rate Condition 
Heading 9963/ Heading 99721Facilities through the rental of a home for use as a residence NILNIL

The aforementioned makes it abundantly clear that renting out a residential property to anyone who intends to live there is exempt from all regulations. In other words, when renting a residential property to someone for a business purpose, GST is due. 

GST validity for residential property rentals as effective from July 18, 2022

According to notification number 04/2022- Central Tax dated July 13, 2022, SI. No. 12 of notification number 12/2017- Central Tax (Rate) dated June 28, 2017, changed. The amendment states that the phrase “except where the residential dwelling is rented to the registered person” will be added after the words “as a residence.”

Therefore, after the publication of notification no. 04/2022- Central Tax (Rate) dated July 13, 2022, SI. No. as of July 18, 2022, will read as follows: 

Heading Description  Rate Condition 
Heading 9963/ Heading 99721If the property is not rented by a registered person, renting it to be used as a home is prohibited NilNil

With effect from July 18, 2022, GST will apply to residential rentals as follows:

Particulars GST Position post 18th July 2022
Renting a residential property for residential use to the person registered under GST Taxable as of July 18, 2022
(Free from 1 July 2017 to 17 July 2022 and Taxable from 18th July 2022)
Renting a residential property for a personal reason to an individual who isn’t registered with the GST Exempted from 1st July 2017 
Rental of a residential property for a business purpose to a person who is registered for GST Taxable from 1st July 2017
Renting a home for a business for an individual not registered under GSTTaxable from 1st July 2017 

The corresponding modification to the reverse charge service mechanism for renting residential dwellings- 

The fundamental notification, Notification No. 13/2017-Central Tax (Rate), dated June 28, 2017, covers the list of services to which the Reverse Charge Mechanism is applicable. SI. NO. 5AA was added to Notification No. 13/2017- Central Tax (Rate), dated June 28, 2017, by Notification No. 05/2022 – Central Tax  (Rate), dated June 13, 2022. The said SI.No. 5AA is tabulated hereunder-  

SI.No. Description of Service Service providerService receiver 
5AARenting the residential dwelling to the registered person as a serviceAny person Any registered person 

As a result, the registered person (also known as the service recipient) who receives services by renting a residential property is required to pay GST under the Reverse Charge Mechanism. In nut-shell, even if the service provider of the renting of a residential dwelling is registered under the GST, the registered service receiver will be liable to discharge the GST under Reverse Charge Mechanism. 

The conclusion that GST applies to the rental of residential property – 

The following table offers an overview of how GST will be used for residential property rentals starting July 18, 2022. 

Particular GST Applicability GST payable by the service provider GST payable by the service receiver 
Services of renting of residential dwelling for residential purposes to the person registered under GSTGST-taxable as of July 18, 2022,No Yes
Services related to renting a home for private purposes to a person not registered under GST Exempted NANA 

BEST TIPS TO HIRE A BROKER IN INDIA

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Real estate is one of the largest industries in India. There are several companies of real estate agents who work as intermediaries between buyers and sellers of property. Finding an agent for real estate can be a difficult task. There are so many different qualities and attributes that you might want to look for, and finding someone who has them all is impossible. However, there are some basic qualities that you should look for in any potential agent.

Whenever we hire a broker for our real estate transaction, we must list our requirements clearly. For example, what type of property you want, locality, etc. As brokers don’t specialize in the entire area. So, they might show options that they’re selling. So, make it your job to be clear about what you want to purchase.

If you are looking for a real estate broker, choose a registered one. This will provide you with another level of trust and credibility. This is because the Real Estate (Regulation and Development) Act, 2016, (RERA) requires real estate brokers to be registered with the state RERA authority.

You should always ask about the latest pricing and gauge the broker’s market knowledge. Excelled brokers always know about the locality from when the area has been created, the future of development of the area, and capital rates of the area. They should have good interpersonal skills and find out how good they are at conversing with clients.

You need to find out how many years they have been in the real estate business, their record on selling the property, the number of deals they cracked, what their credentials and qualifications are if they have experience, etc. Ask all brokers you are communicating with for details on previous clients and speak to the clients so that they can also give their reviews on that particular broker.

Always find an agent who is willing to spend enough time with you until you find the property that suits your desires. A broker should understand the nuances and will advise you accordingly.

Buyers need to find a broker who has good intentions and should be thinking about your benefit.

HOW TO SEARCH BROKERS

You can also search online on platforms like propertywala.com.

Try to talk to at least two to four brokers before finalizing, and try to discuss all talked-about matters with expectations.

Try to connect on call, see his office, and have a meeting with him for your trust.

Best tips to hire a broker in India

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Real estate is one of the largest industries in India. There are several companies of real estate agents who work as intermediaries between buyers and sellers of property. Finding an agent for real estate can be a difficult task. There are so many qualities and attributes to look for that finding someone who has them all is impossible. However, there are some basic qualities and tips to hire a broker in India.

Designated Agency Duties & 4 Good Reasons for an Exclusive Buyer Brokerage Agreement - Illinois REALTORS

Here’s what you should know before hiring a broker in India:

  1. Whenever we hire a broker for our real estate transaction, we must list our requirements clearly. For example, what type of property you want, locality, etc. As brokers don’t specialize in the entire area. So, they might show options that they’re selling. So, make it your job to be clear about what you want to purchase.
  2. If you are looking for a best real estate broker, choose a registered one. This will provide you with another level of trust and credibility. The Real Estate (Regulation and Development) Act, 2016 (RERA) requires real estate brokers to be registered with the state RERA authority.
  3. You should always ask about the latest pricing and gauge the broker’s market knowledge. Excelled brokers always know about their localities’ future developments and capital rates. They should have good interpersonal skills and find out how good they are at conversing with clients.
  4. You need to find out how many years they have been in the real estate business, their record on selling the property, the number of deals they cracked, what their credentials and qualifications are if they have experience, etc. Ask all brokers you are communicating with for details on previous clients and speak to the clients so that they can also give their reviews on that particular broker.
  5. Find an agent who will spend enough time with you until you find a property that suits your desires. A broker should understand the nuances and will advise you accordingly.
  6. Buyers need to find a broker who has good intentions and should be thinking about your benefit. 

Now you know how to choose a good broker, and this is the end of the best tips to hire a broker in India.

How to search brokers in India:

  1. You can also search online on platforms like propertywala.com.
  2. Try to talk to at least two to four brokers before finalizing, and try to discuss all talked-about matters with expectations.
  3. Try to connect on call, see his office, and have a meeting with him for your trust.

East and Southern Bangalore to witness high demands

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Interestingly, the biggest coincidence that can be seen in all metro cities is the fact that in all of these, the southern part of the city experience major development and is always considered as the posh regions. The new flats for sale in Bangalore, especially in the south region are most popularly seen in Kanakpura Road. These flats are mostly in demand by the young professionals working here. However, the demand is not so great here when it comes to 3BHK Flats. The basic demand seen for 3BHK Flats in Southern Bangalore is seen in Whitefield and Electronic city. Southern Bangalore was the first part of the city which was established and is thus the most developed and has reached its saturation. The reason people tend to favour this place is the amazing connectivity with the electronic city via NICE Ring road. The infrastructure is well developed and has high growth potential in terms of real estate if you are looking to buy a property in Bangalore. The area has close proximity to office areas and offers and chilled out the environment.

Also, the east of Bangalore also experiences high demands in residential apartments. The areas like Brookefield, CV Raman Nagar, ITPL, KR Puram and Whitefield offers a lot of 2BHK Apartments which are ideal for you and your family’s needs. These flats are mostly preferred by high-end individuals, mostly the people working in the vicinity. Thus, both these areas are ideal for you if you need to settle in Bangalore with a lavish upfront.

Bangalore is costliest Indian city to live in.

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Glitzy tech capital Bangalore just earned a new sobriquet, the costliest Indian city. An analysis of the Reserve Bank of India’s Consumer Price Index (CPI) shows that Bangalore is a couple of notches higher than the all-India cost-of-living average, with financial capital Mumbai just a shade behind.

The CPI is a measure of a standard basket of items, including food, clothing and transport, across cities. In the price race, Delhi is comfortably placed very low in the table, deriving its cushion from the subsidies galore it receives from the Centre. Take, for instance, LPG cylinders, which is a must-have in middle-class families.

According to Bharat Petroleum’s latest figures, Bangalore currently pays Rs 415 for a 14.5-kg refill, Kolkata Rs 405, Mumbai Rs 402 (expected to go up after budget), Delhi Rs 399 and Chennai Rs 393.50. Bangalore’s CPI peaks in the national chart at a whopping 200, followed closely by Mumbai at 199, Kolkata 184 and Delhi a distant 181. The national CPI average is 198.

For homemakers like Koramangala resident Aditi Rao, life in Bangalore is becoming tougher with each passing day. “Frequent hikes in the prices of basic items put our home budget out of sync every month,” said Rao, 34.

Budget analyst Ravi Duggal, who has lived in Mumbai and Delhi, observed that the high cost of living in Bangalore has come about as a result of the IT industry. He said there were different reasons for differential living costs among cities, including the aspiration of people. Talking of India’s two leading cities, he said, “Where education is concerned, for instance, Delhi has more public education facilities than Mumbai.”

What makes Mumbai equally expensive? “There are many factors, the chief being high rentals. Over 40% of the salary of an average Mumbaikar goes into paying rent,” pointed out economist Vibhuti Patel of SNDT University.

Asia To Witness Surge In REITs

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Asian Continent Location Map
The number of Real Estate Investment Trusts (REITs) in Asia is expected to swell over the coming 3 to 4 years according to HSBC because of increasing demand for investments in more risk disinclined properties.

REITs invest in commercial properties mainly and pay rent collected from their properties to shareholders as dividend. This is why some investors see them as safer investments than property stocks.
Another advantage is that they usually offer returns that are higher than yields of government bonds.

The increased activity in the REIT IPO market this year especially in the Asian continent is due to successful listing of Cache Logistics Trust in Singapore. Also Sunway City plans to list its REIT in Malaysia come July.

At the Reuters Global Real Estate and Infrastructure Summit which was held today, Managing Director and Head of Real Estate Advisory for Asia Pacific at HSBC, Mr. Jason Kern had to say,
“I see proliferation of REITs, absolutely. I think we’ll have twice as many REITs in Asia as we do today in the next three or four years.”
He anticipates Singapore to witness most of the activity with more than 20 to be listed there in the coming years from companies all across Asia. It already has more than 20 listed REITs such as Fortune, Saizen from Hong Kong and Ascends from India. Australia and Malaysia are also showing growth patterns.

Kern further added, “What I find in my space is that investors are more risk-averse for sure. They are more defensive. We actually still find very strong demand at the most defensive end of the spectrum, which are the REITS.”

This Trend is only to bring fortune to our Country as well.

Affordable Housing, a priority for real estate

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With an aim to achieve housing for all by 2020 and thus planning new flats in Delhi/NCR till 2022, finance minister on January 1 had stated that the affordable housing schemes will be given infrastructural status which will be a great deal for builders like Ashiana, Housing, Puravankara. This move will dip the costs for the builders and developers and attract most and more investors.

It would also mean a great hike in demand for loans which would be a step in the forward direction for housing finance companies like Gruh Finance, as well as Repco Home Finance.

“Infrastructure status to the affordable housing segment especially to Noida real estate will mean lower loan costs for the sector and thus aims at the margin issues that private players in this segment face,” said Nidhi Seksaria, Advisory Partner & Leader – Real Estate, BDO India LLP.

“The combined with interest subventions, this could be a big step in making apartments for sale in Noida more affordable,” he said.

Ashiana Housing was already trading 15 percent higher at Rs 163. On the other hand, Puravankara was up by 3 percent. The housing finance companies, Gruh Finance was already up by 1.4 percent while Repco Home Finance was up nearly 2 percent.
To achieve the targets set by the government in the affordable housing sector, the builder tends to increase their number of apartments with a certain decrease in amenities which consequence into lower costs. The competition has increased in the past quarter and thousand of new flats for sale in Noida are being constructed and ready for you to live in.

Ban on registering the Unapproved plots in Tamil Nadu

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The banning on the registration of plots which are still unapproved is back in Tamil Nadu with full force. The Madras Court on Friday clearly ordered to restrain all registrations of plots which are still not approved or those who apply for the re-registration with pending layout approvals. The law has been confirmed for the next three weeks and till no further notice comes.
Adding to the ban, the Justice M Sundar and the Chief Justice Indira Banerjee asked for all the details of the applicants of registration with unapproved plots in the violation of the court dated as on September 9, 2016, ban order.
The legal justice has stated that the decision for these issues will be taken after a special sitting which will be organised either on May 4 or on May 5.
The law has turned sour after the case that held on September 9, 2016, when the Chief Justice Kishan Kaul rapidly approved all the registrations of the plots which were still not approved or of those who tried to convert farmlands into housing plots without following the rules and regulations. Also, the bench held responsible all the officials who were personally liable for the violation of rules and regulations.

Why Attapur deserves your Investment

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In the city of Hyderabad, Attapur is now developing as a new suburb which is an ideal location for the residential complexes now. The main reason behind this is the presence of several different colleges which makes it an ideal location for the students to live in. It is also really close to Jawahar Nagar, the educational hub of Hyderabad. Not only the students but the people who work in the IT Hub of Hitec City also prefer this place as it is in close proximity given the excellent transportation and the development of roads. The fact that Attapur provides people with a lot of housing options that too in affordably large sizes, make the residents travel 10km each day to and fro for their work.
Many people say that Attapur is the centre of their work and other public infrastructure needed by them. The location is in close proximity to their offices, their children’s schools, Airport, Koti and Secundrabad. The main purpose of each and every resident is solved because of this and people find no problem in travelling a few kms for every work present in equal distances.
When it comes to water and transport, the PVNR Expressway connected to the outer ring road makes it really easy for the people to commute.

Rates to take a step down alongside Noida expressway

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In the NCR region, that is subtly attached to the capital region of India, Delhi there extends two expressways that are built to let the residents enjoy the great community and work from far off places while travelling through these roads. The eastern region has been accurately acquired by the 22km long through Noida and Greater Noida. The other one runs for 18km in the regions of Dwarka.

All these expressways are developed to join the regions of Delhi NCR in a better way providing the areas extending adjacent to them to the real estate developers to create more and more property in Noida and in Dwarka.

These lands were also supposed to be given to the developers who want to build commercial spaces and give away office for rent in Noida, Greater Noida, Dwarka, and Gurugram. This, however, made both the regions a large hub for the working class people who migrated here from all over the country. This gave a major boost to all the realty developers to build more and more residential complexes.

As soon as the areas were changing into residential complexes, the southern areas started to experience water and sewage problems. Developers were unable to provide their residents with the daily needs. However, the eastern region thoroughly enjoyed the regular facilities of water and sewage but could not gather proper funds. These developers tracked the funds from the farmers and this became a major reason to manage all the funds and thus fulfil the increasing demands of people. Also, after the demonetization process, those launched flats which were left in the middle of the construction period were unable to be delivered on the expected date of delivery. One Unitech project called Grande, located in Greater Noida was launched in 2007 and even after 10 years, it could not be completed due to inappropriate funds. Now as the government orders all the realty developers to increase the supply, these well-built flats would be sold at much lesser prices given its history of in accomplishment. These flats are built along with the Yamuna Expressway and were targeted towards those who wanted to have the luxury as they were built across an 18 hole golf course.

Due to these reasons and the post demonetisation effect where people just stopped thinking of following their dreams and the wish to buy a house vanished all of a sudden, lowering the rates seemed to be the only option. These low rates would fill the empty flats and would decrease the number of new flats that were to be constructed to meet the demands after the Union Budget of 2017.

Demands in Bangalore West take a major hike

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The increasing commercial demand in the vicinity of West Bangalore is asking the residential sector to grow and lead the city to a better place.
The Mumbai-Bangalore Industrial Corridor, Greater Peenya Industrial Area, proposed Peripheral Ring Road (PRR) Metro Rail connectivity, Dabaspet Industrial Area, integrated townships along the NICE corridor, all these factors make the west of the city an investment destination. The plots in Bangalore in this region is owned by automotive parts, manufacturing, electrical, electroplating, pharmaceutical, chemical, electronics, building materials, aerospace components, garments, castings, forgings, foundries, and scientific instruments industries.
The whole area is well connected to the plunged road built over Peenya international airport, in the Mysore road. It is also connected to NICE corridor as well as the metro rail network.The well established and renowned market of Yeshwanthpur having a micro market with healthcare, retail and other public infrastructure gives a major push to people to come and live here.
Shrinivas Rao, CEO of APAC, Vestian Global services stated that the major factors that increase the rates of property in Bangalore are the presence of economic complexes and industrial sectors with the perfect physical infrastructure and amazing connectivity with all public convenience nearby. It has been noted that after 2008 this western area of Bangalore was influenced by a major hike in IT and ITeS companies which came and set up their base here. These industrial areas included Kumbalgodu and Bidadi which resulted in their nearby localities like Kengeri to become a popular residential choice for those who are employed in this area or the vicinity. According to reports and databases, Kumbalgodu Industrial Area, Bidadi Industrial Area and Global village IT park, together holds a total number of 80,000 employees. Also, after the rapid metro connectivity in this region, it has become very easy for people to travel and save their working hours. With all these factors in hand, the fact that region is well connected to the NICE Road, Outer Ring Road and Tumkur Road gives the place an additional advantage to grow more property in Bangalore west.
Currently, 79854604-lake_6the development that is being done in this region comprises of apartment projects and plots in Bangalore West. The Kengari residential sectors incorporate a large scale of apartment projects and townships in the mid segment value people. It is thus expected that the annual residential sale growth in this region is 6-8 percent while the rental yeild will be 4 percent.

Pune to set out new rules

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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.

5 reason you should buy a property in Noida

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After the utterly clumsy place of the capital region of India, Delhi and the densely overcrowded place for offices, Gurugram people are quite as well left with a choice of Noida. This is the reason that the residential sector of Noida Real estate is highly increasing since the past two decades. Noida is considered as a cheap and easy city to live in provided its easy connectivity to Delhi, Faridabad, Agra, and Haryana.
Noida has been considered as the most affordable place to live in given the high number of affordable flats here. There are many reasons that add to the fact but if we want to name a few we can easily do so by guiding the basic points.
The first one can be the extremely well maintained and thoughtfully built infrastructure. The infrastructure that has built the city is the basic reason for more and more citizens coming here. The excellent infrastructure makes it capable of being the next best thing in the world. The availability of lands for residential, commercial as well as infrastructural facilities is something that makes it top the list leaving Delhi and Mumbai behind.
Second reason is the reputed faces of developers who are eyeing in this place to make their new launches. Builders like Supertech, Unitech, Ansal, Emaar, MGF and now Godrej has made their new launches in Noida and Greater Noida. These flats suffice all the segments of the society and promise to be affordable with the availability of luxury.
Third and the most important reason that helps people to relax and invest in these lands is new rules against Forgery. New and quick rules have now been applied to the forgery cases of land. Earlier, the land disrupts were handled by the court’s jurisdiction which always tends to stretch such cases to a number of years, but now a sigh of relief has approached when all these cases are being handed over to the stamps jurisdiction.
The fourth best reason would be the easy connectivity of Noida to other regions like Delhi, Ghaziabad, Gurgaon, Agra. The major plus point Noida has is the rapid availability of Metro from Delhi to Noida. Also, the ongoing construction of Metro from Delhi till Greater Noida via Noida will add a golden point to all these and make it more convenient for those who travel till Greater Noida and will also decrease the traffic on roads.
The fifth point is for those who have a property in Noida or are living on rent flats in Noida. The major availability of marketplaces throughout Noida makes it very easy and accessible to live here.

Ghaziabad Growing its Infrastructure

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Ghaziabad is popular for serving to the mid-segment and affordable housing segments. The very known housing clusters such as Kaushambi, Vaishali and Indirapuram are now a major part of Ghaziabad property in terms of increasing the real estate. Apart from this, the new upcoming residential locations include Raj Nagar Extension, and other areas along NH-24 which are beyond Indirapuram, and incorporates Crossing Republic Township.
The only thing bothering the developed locations is the lack of space for further high-level development. These places majorly include Kaushambi and Vaishali. The 1BHK Flats in Ghaziabad are now available to meet all the residents and is expected to have a healthy capital appreciation. The recent projects mostly kept its focus on upper-mid and premium segments offering them new upgradations which were beyond anybody’s expectations. The affordable residential clusters which are mostly 1BHK Flats and located in Raj Nagar, Shahibabad are in the average price range of INR 2,200-3,500 per sq ft. The upper end of the range is commanded by projects which are fully completed or nearly ending its construction in Crossings Republic, whereas the newly passed projects in NH-24 are in the lower price band of INR 2,200-2,600 per sq ft. The Raj Nagar Extension corridor on NH-58 is has a price range in between INR 2,600-3,000 per sq ft range.

Regular efforts for affordable housing for all

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Metropolises such as Noida are under scrutiny and major comprehensive plans are being drawn to build better infrastructure. The Centre is facilitating adequate amount of funds for urban local bodies in states to make cities more liveable by providing them more and more properties in Noida. “We are taking into account the, roads, water supply etc. and creating a major five-year development plan,” Naidu said while talking about Bengaluru, Pune and Noida cities. He stated that more and more 1bhk flats in Noida will be created so as to provide the urban localities the desired liveable surroundings.

State participation is the major key to achieving adequate infrastructure and it is therefore the essence of realising the ‘Housing for All 2022’ dream. Affordable housing will be a success only when these type of states perform. Around 23,000 houses still lie vacant in Delhi alone because of lack of infrastructure and therefore their buyers. “Where there are people there is a shortage of houses and now there are houses but nobody interested to reside in them. It is proving to be a grave problem,” said Naidu. The main infrastructure concerns that needs to be seriously looked after are drainage, sewage, main roads, byroads, rain water drainage, maintenance of water bodies, etc.
It is now supposed to be joint effort by the Centre, states and local bodies. People only set their keen eyes on better quality and good services. If the states can figure out a method to provide the correct measurements then there’s no going back. “They should try and study the development patterns of several states. Learn from other’s mistakes,” suggested Naidu.

Hyderabad to promise a positive realty sector

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The last quarter of 2016 struck all of India with major impacts on real estate sector. In terms of Hyderabad city, the real estate sector have been really promising this quarter. The initiatives taken by the government have been fairly positive towards the residential sector. After demonetisation settled down, the GHMC recieved a total of 154 crore as it begun its decision to accept the banned currency from property tax payers. This meant that the currency accepted from the defaulters could be used in a constructive manner.

Hyderabad’s realty experts have expected that Hyderabad commercial market will soon become the leading market all over India, latest by 2018. The main reason behind this is the healthy accomplishment of affordable housing which therefore boosts the residential market as well. As the newly reputed companies are starting to set their base in the city, the residential supply in Gachibowli, Hitec City and Raidurg will increase. These residential sector are expected to be consumed by the expected increase of employees from 4.3 to 4.7 lakhs within the next 12 months.

Bangalore: Girish Karnad Reflects

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Few decades ago, people came to Bangalore essentially for the horse races. Once the racing season was over, the city emptied out. Bangalore had little else to offer.

Today the racecourse has been moved out of the city—a former chief minister’s dream of erecting a 100-story commercial tower à la Singapore in the course’s place was foiled by public outcry—and Bangalore throbs through the year with no concern for the seasons. Its roads are chock block with traffic, and its hotels crammed.

Bangalore started its life as a cantonment built by the British to keep a watchful eye on the nearby princely city of Mysore. It was European in its orientation, with wide roads, bungalows with pillared porticoes, and spired churches where everyone spoke English. And nearby was its “native twin,” Bengaluru, congested and cowed, where the lingua franca was the South Indian language of Kannada.

In 1956 the administrative map of India was redrawn on a linguistic basis with each of its nearly 20 languages defining a separate state. And Bangalore found itself the capital of a new Kannada state, at the mercy of political and economic forces it was unprepared for. The first to pour in were bureaucrats who needed offices, houses, and roads to run the new state, their numbers swelled by the philosophy of a socialist economy that led to the setting-up of government-sponsored enterprises, like the telephone and the aeronautical industries. Ancillary enterprises followed, leading to an influx of migrant workers.

DLF gains profit much after Goldman Sachs upgrade

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Reuters Market Eye – India’s biggest real estate developer DLF (DLF.NS) rose 3.2 percent to 188.10 rupees after Goldman Sachs upgraded its rating on the stock to “buy” from “neutral” and raised its 12-month target price to 264 rupees from 252 rupees.

Goldman cited a pickup in residential launches, a recovery in commercial property, easing interest rates, and improved outlooks for asset sales as well as for operating/financial leverage as reasons for upgrade.

DLF’s share price is down 0.5 percent for 2012 while the BSE Sensex is up about 11 percent in the same period.

The upgrade has come close on the heels of DLF’s removal from the Sensex, which will come into effect from June 11.

India: ICICI Bank eyes growth after strong Q4

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ICICI Bank, India’s No. 2 lender, posted on Friday a larger-than-expected 31 percent rise in quarterly profit and forecast a higher growth rate for domestic loans and stable asset quality for the coming year.

Loan demand in India is expected to pick up after the central bank last week cut its benchmark lending rate for the first time in three years to help revive sagging economic growth. The Reserve Bank of India has projected loan growth for Indian banks for fiscal year 2013 at 17 percent against 16 percent in the previous year.

ICICI expects its domestic loans to grow 20 percent in the year that began in April from 17 percent last year, driven by demand from companies for working capital, home and car loans, Chief Executive Chanda Kochhar told reporters.

“These numbers may give us comfort to keep what we have (but) we don’t have any particular plans to increase our stakes. We have concerns about the India story in general,” said Olsson Jan-Olov, portfolio manager of Carnegie Emerging Markets at Sweden, which owns ICICI shares.

“We have been a little hesitant towards increasing positions in India due to the overriding political and macro economic situation.” Earlier this week, Standard & Poor’s cut India’s credit rating outlook to negative from stable on hefty fiscal and current account deficits and political paralysis in Asia’s third-largest economy.

The negative outlook jeopardises India’s long-term rating of BBB-, the lowest investment grade rating. Indian banks are actively easing terms on loans for companies, as high interest rates and an economic slowdown has hurt the ability of some to repay loans on time. Power, textile, aviation, construction and real estate are the hardest hit sectors.

ICICI, which is also listed in New York and competes with State Bank of India and HDFC Bank, sees a “very small” and “minimal” pipeline for corporate debt restructurings, Kochhar said.

Indian Real Estate Market Among the Most Lucrative Sectors for NRIs

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Indian real estate market is one of the most lucrative sectors for Non-Resident Indians to invest their foreign money. Moreover, this trend will continue for more 4-5 years as the consumption story of Indian real Estate market is not going to get over in near future leading to immense commercial growth prospects that in turn increase the demand for real estate. Although Indian Realty market is facing downfall, it is not correct to say that all cities are experiencing the same situation. It has been observed that some of the cities in India always have good chances of investment and these cities even in worst circumstances would be able to provide good investment returns. One more factor that attracts NRI’s to invest in India is the bigger geographical area. Unfortunately, NRI’s put their money into property prevailing in big cities and metros, but they should be informed appropriately about the outskirts of the big cities and even about the tier-2 cities that offer a great deal of real estate investment in present scenario.
Not only this, but the recent significant depreciation in the value of rupees in respect of dollar/pound/euro has given a profitable chance to the NRI’s to clandestine their foreign earned money into some good  investment plans. However, quite a few times NRI investors face some issues with liaison services in real estate industry, but once these intermediary services will improve more and more foreign investors would be lured to purchase property in India in lieu of high returns.
Foreign investment is also a good sign of growth for Indian Real Estate market as well. In this current state of affairs when the Indian Realty market is experiencing a huge downfall, the foreign investors seem to be the ray of hope. With more and more NRI’s investing in small and even big commercial properties in India, the Real estate market will soon see a huge intensification. It has been observed from past trends that around 70% of foreign investment has been done in residential sector, but according to the Indian developers there are various commercial investment opportunities also existing for the foreign investors who wish to set up a business in India.
However, it has been told by the real estate experts that present time when foreign currency is in appreciation, it is the encouraging time for NRI’s to make some good investment in realty market in India. Office plots, residential spaces and even apartments are easily available for NRI’s.
Indian property developers also have a notion that the downfall of realty market in India is the result of the global meltdown and depreciation of rupee. Their belief is not vague, but they also consider that ambiguities in western economies led to the build-up confidence of NRI’s into Indian market and they are keen on purchasing property here. Their investment is a huge support for Indian Realty market and soon with the rupee appreciation these investments will strengthen the economic situation as well.

Bengal Urban Land Policy: Seeks 30% Reservation for Low-Cost Housing

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The promise of Ma, Mati, and Manush governance by Mamata Banerjee may fall short of the second M-word, meaning land — at least for real estate developers in the state’s capital city. For, the West Bengal government has now decided to bring in an amendment to the Urban Land (Ceiling and Regulation) Act (ULCA), 1976, an eyesore of developers for quite some time. The proposed alteration will stipulate the developers to reserve 30 per cent apartments in big housing projects for the low-income group (LIG). Industrialists have been seeking a total repeal of the Act, introduced in 1976 to prevent hoarding or excessive holding of land in urban centres.

According to the Act, the ceiling limit on vacant land in a category ‘A’ city like Kolkata is 7.5 cottah or about 500 square meters. The demand for repealing the ULCA was raised for the first time by Godrej Properties chairman Adi Godrej, at an industry meet within the first month of Banerjee taking over the chief minister’s office.

Much to the disappointment of the developers, urban development minister Firhad Hakim has now totally ruled out the possibility of repealing the Act. “We are not going to abolish the Land Ceiling Act,” he said. “Instead, we will give permission to developers for purchase of land beyond ceiling, provided they reserve 30 per cent housing for low-income housing segment.”

As for the Trinamool dispensation, it has also decided to do away with the concept of public-private partnership (PPP) — an idea pioneered by the earlier Left Front government under Buddhadeb Bhattacharjee. Instead, “the government will allocate land to the highest bidder and for the rest of the big projects the state will build on its own,” according to Hakim. Notably, in spite of the Land Ceiling Act, the earlier government had windfall gains by allotting land in prime areas of city.

For example, three prominent government agencies involved in land deals in and around Kolkata — the Kolkata Metropolitan Development Authority (KMDA), Kolkata Municipal Corporation and West Bengal Housing Board— signed deals worth more than Rs 18,000 crore, for over 5,250 acres of land during the period in little over two years. In fact, KMDA was credited with signing deals, worth more thanRs 800 crore with real estate developers on a single day. “The process of land allotment slowed substantially over the last two years. First, it was due to elections,” said a city-based real estate developer. “Second, it was due to lack of vision and policy of the new government.”

2012 is a Tougher Year for Fund Raising

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Due to global issues, liquidity is becoming a problem. Though the phase is temporarily, the concern cannot be ruled out. Indian real estate sector is banking on the fact that change will take place and market will come out of the situation. The fact of the matter is that next 12 months and in fact 2012, does not look too bright for the sector.

The global debt worries have led to more and more uncertainty. In the last few months, the sector has been plagued by a potential liquidity squeeze. The situation is very unsettling and the fear is that we might end up looking at the year 2008 situation. It is certain that banks will get into selective lending with more strict verifications. In 2012, we are expecting that interest rates might get stabilized but disbursal of home loans will come down.

As RBI has been steadily increasing interest rates, debt for developers is becoming expensive. Also many banks are right now not keen to lend to real estate projects. Due to global uncertainty even private equity is cautious of investing in India. In fact, companies have started looking at alternative routes of fund raising. And many a deals are being done as structured debt deals hiding behind the facade of an equity structure.

In structured debt deals, the companies—investor and investee—sign two agreements. In the publicly announced agreement the investor—a PE or a VC fund—buys an equity stake in the company; and in the second contract they have buyback clause, which allows investee company to buy back its shares from the PE/VC fund at a price that will give the fund a return of about 20% per annum over the duration of the investment.

All signs currently suggest that 2012 would not be an easy year. As debt becomes more expensive and PE funds find it difficult to deploy cash due to global economic conditions, we would see higher number of structured deals taking place in 2012. Though these structured deals are being done, they have their share of problems. The problem is when the side-contracts are not honoured.

Indian Realty Sector growing very Fast

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The real estate industry is expected to reach US $180 billion by 2020, said analysts and industry experts at a seminar organised in the city.

As part of the Management Development programme, the students of the Acharya Bangalore B School attended a three-day seminar on Real Estate Management that started on Thursday.

Realtors and analysts from the field also attended the seminar to provide the students with future prospects and various professional options.

Presenting a paper on ‘Internet and Real Estate’, Business Head of 99Acres.com, Vineet Singh said, “As per reports by real estate intelligence firms, India is ranked as the fifth most attractive destination for future real estate investments in a list topped by China. The Indian real estate industry is expected to reach US $180 billion by 2020. This is a good platform to involve both academia and industry to facilitate dual growth and understanding. We get to know what the emerging new talent holds and they learn about the industry perspective.”

Industry experts from Brigade Group, Sobha Developers and other leading real estate organisations attended the event to train the students. “I’ve always had an interest in this industry as my family deals with real estate. But at this seminar I could ask a few basic questions and get industry relevant answers,” said Niharika Singh, a student.

In March,India Inc. invested $2.7 bn overseas.

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Overseas investments by Indian companies stood at USD 2.77 billion in March, up 37.6 percent over the previous month, with Binani Industries, Mercator Lines, HCL Technologies, Varun Shipping, Hexaware Technologies, and Tata Steel emerging as major investors.

As many as 489 overseas investment transactions were carried out by various companies in March, as per the Reserve Bank data released Wednesday. Binani Industries invested a total of USD 323.34 million in its two wholly-owned subsidiaries based in Luxembourg and the US that are involved in financial, real estate and manufacturing services.

Mercator Lines, which is into agriculture and mining, through its joint venture-Mercator Offshore PTE- invested USD 150.15 million in Singapore during the month, it said. ABG Shipyard, through its wholly-owned subsidiary invested USD 80 million in Singapore.

HCL Technologies, India’s fourth largest software exporter, invested USD 60 million in Bermuda through its wholly owned subsidiary for providing financial, insurance and real estate solutions.
Likewise, Varun Shipping which is into transport, storage and communication business invested USD 60 million via its JV in Cyprus.

Hexaware Technologies invested USD 38.7 million through its wholly-owned subsidiary in Germany to provide financial, insurance, real estate solutions, it said. Tata Steel invested USD 35.5 million in Singapore through its wholly-owned unit, it said.