A strong business environment, an increase in warehousing and industrial needs, commercial housing requirements as migration grows, the opening of manufacturing facilities, and other factors may all contribute to this trend.
Between March 2023 and March 2024, the number of construction and real estate employees increased by 86%. According to Indeed, the surge in demand has been accompanied by a 57% increase in job seekers’ interest, with Delhi, Bengaluru, and Mumbai leading the way.
According to Indeed Data, Delhi had the highest construction hiring rate, at 5.05 percent, followed by Bengaluru (4.68 percent) and Mumbai (4.13 percent). A strong business environment, an upsurge in warehousing and industrial needs, increased commercial housing requirements as migration rises, the opening of manufacturing facilities, and other factors could all contribute to this trend.
“Smaller cities such as Ernakulum (2%), Kochi (1.50%), Lucknow (1.38%), and Calicut (1.25%) are among the top regions attracting job seekers’ attention. This trend could be attributed to low living costs or local job opportunities that allow people to work closer to home. Indeed lists Ernakulum, Calicut, and Kochi as Tier 2 and 3 cities with the most job postings.
Engineers (17.18 percent), project leads and supervisors (8 percent), and architects (5 percent) are the most popular job roles, according to job postings. In line with demand, job seekers are interested in engineers (21.31 percent), project leads and supervisors (9.33 percent), and architects (4.27 percent). As construction becomes more complex and technical, the industry requires more skilled workers.
According to the findings, Sashi Kumar, head of sales at Indeed India, stated, “The construction industry continues to be a key driver of economic growth, providing enormous opportunities for skilled professionals and semi-skilled labor. The significant increase in hiring points to promising prospects for job seekers and employers, while the increase in job seeker interest reflects the industry’s strong momentum.”
According to people familiar with the situation who spoke with HT Digital, Elon Musk’s Tesla has held preliminary discussions for showroom space in high streets, mall locations, and commercial districts in New Delhi and Mumbai with several real estate developers, including the biggest player DLF and Maker Maxity.
Musk is anticipated to make a major announcement regarding a major investment in the third-largest automobile market in the world when he visits New Delhi the following week to meet Prime Minister Narendra Modi.
“They require between 3,000 and 4,000 square feet of showroom space, which they need soon. Rental prices will vary depending on the location,” one of the individuals remarked, requesting anonymity.
DLF did not reply to HT Digital’s questions.
It should be noted here that DLF has leased retail space to Porsche in Capitol Point in Connaught Place and to Kia in DLF Cyber Hub, Gurugram. Vehicle dealership rentals are location-specific, according to real estate experts. “In the Connaught Place area, it may be anything above Rs 600 per sq ft. Car showrooms generally can pay higher rentals, often a premium of 25% to 30%. “They frequently become the standard for more expensive commercial rentals in a given area,” they stated.
Moreover, rumors are circulating that Tesla is reportedly looking for showroom space in the Maker Maxity commercial development in Mumbai’s Bandra-Kurla Complex.
Tesla and MakerMaxity have received emails from HT Digital.
How do high-end automakers choose their parking lots?
According to experts, showroom locations with easy access to the main road are typically sought after by luxury car manufacturers.
These are frequently found in areas of the city that are easily accessible to wealthy customers. “The showroom ought to be situated somewhere where automobile deliveries are convenient. Better accessibility infrastructure ought to be present. Large hallways, spotless sidewalks, and a layout that enhances visibility were mentioned.
Several international car brands have showrooms in Gurugram along Golf Course Road. Mercedes and BMW are a couple of these. High net-worth individuals live in this area. According to sources, Maserati is anticipated to open a showroom along this stretch. According to them, the expense of renting a car showroom at this location can reach Rs 600 per square foot.
According to a different real estate expert, residential clusters home to the wealthy and well-known are the first choice for luxury car showroom spots alongside those with prestigious corporate offices.
Aralias, Magnolias, and DLF Camellias are a few of the lavish residential developments along Golf Course Road.
Renting out a luxury car showroom is based on how much room is available for branding, signs, and ads. A real estate expert states that a corner showroom space with two-sided visibility will bring in more money for rentals.
According to a recent Reuters report, Tesla is making right-hand drive vehicles at its Berlin facility with plans to export them to India later this year. The report claims that Tesla executives started actively looking for locations in March. They have already had initial discussions about it with real estate developers.
According to the statement, the ideal locations will likely be at possible malls and high street locations. Tesla has declared that it wants to begin building as soon as possible, with an opening date of 2024 likely.
These smaller-scale micro markets cater to particular demographics and present distinctive prospects. They meet the community’s demands of work, connectivity, and way of life.
Mumbai: The real estate landscape in Mumbai is changing due to micro markets. Developers are finding smaller, niche markets within the metropolis in this space-constrained city. These smaller-scale micro markets cater to particular demographics and present distinctive prospects. These smaller-scale micro markets offer unique opportunities and target specific demographics. They meet the community’s requirements for work, connectivity, and way of life.
“In the Mumbai Metropolitan Region (MMR), neighborhoods like Dombivali, Thane Ghodbunder Road, Goregaon, Kandivali, Mulund, Nahur, Kanjurmarg, Vikhroli, and Chembur are expanding and developing as micro markets. In these markets, improving connectivity and infrastructure are critical components People who want to investigate the walk-to-work concept are finding a lot of commercial and residential buildings in these areas, according to Dominic Romell, director of Romell Group and president of CREDAI MCHI.
“As more people have options for commuting to work outside local trains, the growth is also primarily driven by the increasing metro connectivity.” According to Romell, these micro-markets offer 2 BHK apartments with a carpeted area ranging from 600-645 square feet and one parking space. They would rather take a comfortable transit option that drives down and exacerbates the traffic jam.”
These apartments range in price from around Rs 1.75 crore and less, though prices will depend on the location and amenities. In response to the issue of whether we can refer to these as “Affordable dwellings,” Romell said that although the size of these apartments is reasonable, the price is not because it is directly tied to the cost of land that the developer bought.
CEO of Runwali Bliss, Lucy Roychoudhury, stated that Mumbai’s architecture is changing due to the construction of high rises and skyscrapers in areas that were not as popular ten years ago as they are now for home buyers. “Localities like Kanjurmarg, Vikhroli, Dombivli, and Kandivali amongst others have gained momentum in the past few years and are locations much sought-after by home buyers today,” Roychoudhury said. The luxury of gated communities with expansive green open spaces, first-rate amenities, and improved connectivity is available at these locations.”
“The younger generation of homebuyers is looking for larger living spaces without sacrificing access to convenient places for their way of life or employment. Recent data indicates a significant demand for homes for ownership and rental purposes, due to the ease of commuting, the availability of projects, and good social infrastructure. These neighborhoods encourage homebuyers to upgrade their lifestyles because they offer the perfect balance of luxury and convenience” Roychoudhury said.
Micromarkets serve a variety of purposes. Young professionals value vibrant nightlife and cultural scenes, while families value proximity to schools, supermarkets, and hospitals. Mumbai’s real estate market changes as micro markets do. Beyond the usual hotspots, homebuyers scour the city for fresh opportunities.
Mumbai has seen an increase in coworking average monthly rentals over the last four years, at 27%, followed by Gurgaon at 19%, per a recent MyHQ by Anarock report.
According to a recent MyHQ by Anarock report, Mumbai has seen an average monthly rental growth for coworking spaces over the past four years (27%), followed by Gurgaon (19%).
The report encompasses six towns: Bengaluru, Delhi, Mumbai, Gurgaon, and Noida.
In Mumbai, the average monthly rental cost for a flex space seat was Rs 15,900 in FY 2024 compared to Rs 12,500 in FY 2020.
Gurgaon saw a 19% increase in that period, going from roughly Rs 8,500 per month per seat in FY2020 to roughly Rs 10,100 per month per seat in FY2024. Rentals for Delhi’s flexible workspace increased by 18% between FY2020 and FY2024, going from Rs 10,000 to roughly Rs 11,800 per space per month.
The average monthly rent for flexible spaces in Bengaluru increased from Rs 7,800 per seat in FY2020 to Rs 9,000 per seat in FY2024, representing a 15% increase. According to the report, the average monthly rental price of flex spaces in Noida increased by 14% over the previous four years, from Rs 6,500 per seat in FY2020 to Rs 7,400 per seat in FY2024.
“In recent years, the Asia-Pacific area has become a significant market for coworking spaces, and demand is rising quickly. Japan, China, India, and Hong Kong are a few of the major cities that are experiencing rapid expansion. According to Utkarsh Kawatra, Senior Director of myHQ by ANAROCK,” India, as a hotbed for startups across various sectors and industries, is witnessing a steady demand for flexible, economical workspaces.”
In the current fiscal year, coworking accounted for 18% of the office supply in the top seven cities’ office leasing market. A report by MyHQ by Anarock estimates that the flexible office real estate market will grow from 55 million square feet to 100 million square feet by 2030.
Financial support for the coworking space has also been encouraging, with more funding coming in after COVID-19 than before.
An average coworking space of 20,000 square feet can fetch an internal rate of return of 40-70%. According to the report, up to 70% of businesses use a hybrid work style.
According to two out of three industry experts, by 2030, coworking spaces will become more in demand than traditional office spaces. Opening coworking spaces is another move by hotels and food and beverage establishments to increase revenue from their daytime unsold inventory.
According to Knight Frank India, residential units comprise 80% of registered properties, with non-residential assets constituting the remaining 20%.
In February 2024, the Mumbai real estate market recorded 11,742 property registrations, 21% higher than the 9,684 registrations for the same month in the same year. According to data from the Maharashtra government, there has been a 7% monthly increase, with 10,967 properties registered in January 2024.
However, from Rs 1,112 crore in February 2023 to Rs 865 crore in February 2024, the revenue from stamp duty collections decreased 22% YoY. Stamp duty receipts increased from Rs 760 crore in January 2024 on a MoM basis.
According to Knight Frank India, a real estate consulting firm that examined the data, the government’s decision to restrict tax deductions on capital gains earned from the sale of residential property after March 31, 2023, is what caused the exceptionally high stamp duty collections last year and the subsequent drop in stamp duty collections.
Furthermore, eight percent of all registered properties are residential units, with the remaining twenty percent being non-residential assets.
Mumbai saw the most property registrations in February 2024 compared to any other February in the previous twelve years. Increased optimism and the release of pent-up demand as the pandemic’s effects subsided drove the prior high in February 2022. However, according to Knight Frank India’s report, the recent surge can be attributed to growing income levels and a positive attitude toward homeownership.
February 2024 saw a rise in the percentage of apartments of 500 square feet or less, from 34% to 45% in the previous year. Conversely, the share of apartments with a floor area of 500-1000 square feet dropped from 45% to 42% last year.
However, this may be an isolated incident, as Mumbai homebuyers have recently preferred larger apartments, according to Knight Frank India.
Knight Frank India Chairman and Managing Director Shishir Baikal, “The positive trajectory is expected to sustain, particularly with the anticipated robust economic momentum and the potential easing of interest rates during the year, creating a favorable environment for homebuyers.”
Where are the houses being sold?
In the meantime, the combined Central and Western suburbs account for over 73% of all properties registered, as these areas are hot spots for new developments that provide a variety of contemporary amenities and excellent connectivity.
92% of consumers in Central suburbs and 86% of customers in Western suburbs chose to buy things at their local micro market. According to Knight Frank India’s research, the familiarity of the area and the availability of goods that suit their preferences for features and price also play a role in this decision.
Urban real estate markets have started to prioritize apartments with balconies. The demand for balcony space is constantly increasing, especially in a metropolis like Mumbai, to the degree that it is now necessary. Balconies are a common feature of apartments. The purpose of flats with balconies is to give residents access to a private standard of living and property value.
Some people might hesitate to purchase an apartment building’s top floor, while others may want to live there exclusively. The top floor differs from the lower ones due to how living there feels. It provides fresh air and breathtaking views. The most amount of sunlight strikes it. Additionally, if you are on the top floor, you won’t have to put up with the noise of moving furniture or kids playing above you! Some people choose to stay at the top because they value these advantages.
However, the top floor’s primary drawback is that it is considerably hotter than the other floors. People face many challenges residing on the top floor with private terraces and balconies in cities with extreme summer heat. Also, it is possible to feel water leaks from the roof on the top floors, but builders frequently ignore this. It is due to improper ventilation on the upper floors.
Numerous studies have demonstrated that a residence with a private terrace with a balcony has many advantages and disadvantages. If you prefer views, you will enjoy living on the higher floor. You can see everything clearly if you look at it from above. You can get away from the bustle of the city while still enjoying plenty of daylight and a pleasant breeze.
What is a private terrace?
A terrace is an open space that may connect to or separate from a building. The entrances to a balcony, however, can differ. Most places have terraces where guests can go outside the hotel and get some fresh air. If the dimensions are correct in the new location, it will be possible to relocate the furniture on the terrace.
Outside, you might enjoy drinking coffee or tea while studying for tests. Anytime during the day, you are welcome to unwind and take a nap there. Regarding public open spaces, your terrace offers privacy while still being outside.
Benefits of purchasing a Private Terrace Flat in Mumbai with a Balcony
It allows one to feel more like a part of nature.
You can unwind on a private terrace in a healthier and cozier environment. You can also create a lovely terrace garden to enjoy the outdoors. It will boost your immunity and be advantageous for you. If you have a sizable balcony with plants, your home will be better ventilated and experience a lower summer temperature.
A reviving workplace
Working from the same spot while seated in a living room or bedroom can get boring. It might limit your capacity for originality and creativity. It is especially valid for your lifestyle of working from home or for intense study sessions. You could take advantage of the fresh air by using the natural surroundings close to your house.
A spot to relax and unwind
On the terrace, you might enjoy reading your favorite book or sipping tea in the morning. At any time of the day, you can relax and nap peacefully. Unlike public parks and gardens, your terrace offers privacy while still being outside.
Gardening space
The increased oxygen flow caused by plants contributes to the air’s purification. On your terrace, you can grow visually appealing flowers and indoor plants to add aesthetic value to your house. Outside, you can also grow fruits, herbs, and vegetables.
Pet-friendly area
Experts say an outdoor space is essential for your pets’ happiness and health. Taking your pets for daily walks or runs around your neighborhood, a private terrace may be a great and safe place to get some exercise and fresh air. With less anxiety and hyperactivity, the fresh air may vastly enhance their health. On the terrace, you might erect a small playpen for your pet.
Heavy deposits, also called zero-rental flats, are becoming popular in the real estate market. The heavy deposit is an agreement between the owner and tenants where the owner provides the expected property to the tenant in exchange for a hefty security deposit for a period of time.
These days, a growing trend in Mumbai that is spreading to Vasi-Virar, Mira Road, and other city areas is heavy deposits or zero rental flats or apartments.
How Heavy Deposit Varies from General Renting?
Those who rent properties typically pay both the flat security deposit and their rent monthly. Residents of the heavy-deposit apartments do not make monthly rents or security deposits. Instead, they pay a large sum to the owner as a security deposit for the property based on the property’s location during the tenancy period.
Furthermore, the owner will return the tenant’s security deposit when the tenancy finishes.
If the rental agreement allows it, the landlord may withhold payment in the event of property damage or unpaid utility bills.
Heavy Deposit System In Mumbai
The zero-rent option is becoming more and more appealing to Mumbai renters, particularly millennials with transferable employment. To be clear, a rental flat plan permits tenants to reside in an apartment during their rental period without having to pay rent.
According to information provided by Mr. Tauqeer Hashmi, the owner of Maharastra Properties In Mumbai, almost a third of people who seek rental homes are prepared to put down a sizable deposit in order to reduce their monthly rent costs. It usually costs 100 times what the rent is per month. for a flat being offered at Rs.10,000 per month, for instance, a sizable deposit of Rs. 10 Lakhs would be required.
Advantages of Heavy Deposit Flat in Mumbai
The zero-rental flat system is beneficial for both the landlords and the tenants. They provide great opportunities for renters to lower their monthly rent costs, particularly in areas with excessively high rents like Mumbai. If the flat is maintained the tenant gets their whole security deposit back.
On the other hand, the Owner gets a huge amount of money at one time which can be invested in other ways. In the normal renting process, paying electricity bills, and water bills can be a bit problematic, especially in the last month of the tenancy. Also, if every tenant vacates the property, the landlord must spend a lot of money on repairs since new renters demand that the property get little maintenance. A deposit of Rs 30,000 or 40,000 won’t be helpful for the maintenance. At these times the owner can use the security deposits given by the tenants.
For quite a good time the trend of heavy deposits or zero-rental is there in Mumbai as it is a win-win system for both the rentals as well the owner. Additionally, the owner already has a hefty amount on his/her hand, they can use it somewhere else, and can invest it in the real estate sector only by investing the amount to buy a new property. In Mumbai, this system is well known and with the passing of time, it is already spreading the other regions of Mumbai, like Mulund, Chandivali, Bandra, Goregaon, Malad, and Andheri East.
Tips to Rent Heavy Deposit Flat In Mumbai
In a city like Mumbai, it’s simple to find heavy-deposit apartments or zero apartments, but choosing one can be challenging. To help you all find your ideal home, here are some tips.
The first step is research, which is simple and clear but important. Researching every neighborhood in the area will help you to understand and identify the best place to live with all the amenities you require.
The next step is to determine which amenities, such as an air conditioner, a fully equipped kitchen, and a house that includes water and electricity as part of the rent, you need in your flat.
Before signing a lease, make sure to inspect the property to determine its quality. Checking to see if the amenities are operating properly will be a smart idea. Before making a choice, look through the security features like locks and cameras.
Make as many contacts with agents as possible, and keep a list of those who can give you a rough notion of how to achieve your goals.
While checking on the heavy deposit flat agents in Mumbai, ask about the past clients of the property you are interested in, and ask about the society and the locality, Depending on the time you can also meet the agent to get a rough idea of the area you are interested in.
Ask the heavy deposit flat agents in Mumbai about the previous tenants of the home you are interested in, as well as about the neighborhood and society. You may also meet the agent to get a general sense of the neighborhood you are interested in.
It can take some time to find the ideal heavy deposit flat in Mumbai, but with little preparation and research, it is possible! You will find your dream home quickly if you use the advice in this article.
Documents Required to Rent A Heavy Deposit Flat
Don’t forget to have this paperwork available for the next step once your extensive study has led you to find your perfect heavy deposit flat in Mumbai.
Tenant Identification: First thing you need is your identification cards which can be any of these Voter ID cards. Aadhar card, PAN card, or your driver’s license.
Rental Agreement: It’s essential to specify in the rental agreement what costs will be paid and by when. To avoid paying taxes or stamp duty, a would normally be for 11 months.
No Objection Certificate (NOC): This is a letter of consent from the landlord confirming that they do not object to you renting their property for a heavy deposit flat in Mumbai. Confirming that both parties concur on every aspect of the rental agreement, serves to safeguard both parties from being taken advantage of.
Security Deposit Receipt: These are essential documents that might assist avoid disagreements later on about security deposits. The Receipts should clearly state how much money is being deposited and when it can, if necessary, be retrieved by either party.
Hence, before signing up for a heavy deposit flat in Mumbai, make sure you have all the necessary documents ready! Afterward, you’ll appreciate yourself.
A Final Piece Of Advice
A final piece of advice. Make sure you familiarize yourself with everything the city has to offer before accepting a heavy deposit flat in Mumbai. Several structures in the city have different features that increase their appeal and worth, such as particular artwork, specialized furniture, or exclusive services.
Conduct thorough research on the area you are moving to, including information on maintenance services and amenities like gardens, swimming pools, gyms, and any specialized security measures.
Shri. Jaiprakash Gaur, the founder of Jaypee Group, had a single-minded focus after graduating from IIT Roorkee with a diploma in civil engineering. He decided to contribute to nation-building by branching off as a civil contractor in 1958 and founded Jaypee Group. The Group’s business interests include engineering and construction, cement, power, real estate, expressways, fertilizer, hospitality, healthcare, sports, and information technology. This article covers the story behind Jaypee’s failure. How did Jaypee start, what all the good things it did, what exactly went wrong, and what is the future now? One thing is for sure, if everything would have gone well, Jaypee would have completely changed the situation in Noida. It could have become the DLF of Noida. But could not. More than 20000 buyers are still struggling to get the homes of their dreams. Let us look at the story behind the making of Jaypee.
Work done by Jaypee:
Jaypee Infratech was founded in 2007 and it is the part of the Jaypee Group. So, let’s look at some of the successful works done by Jaypee Infratech.
1. Yamuna Expressway project:
The Group entered into the construction of expressways with a 165 km access controlled 6 lane super expressway along the Yamuna River connecting Greater Noida and Agra. You would know how well-developed the Yamuna expressway is if you have been to it. It has become a big boon for Noida. Jaypee has also built the Zirakpur-Parwanoo Himalayan Expressway.
2. Jaypee’s Hotels and Resorts:
In New Delhi, Uttar Pradesh, and Uttarakhand, the hospitality division of the Group owns and manages five hotels.
3. Jaypee’s Hospital:
The Jaypee Hospital is well-developed and offers excellent health facilities. The hospital is now commissioning 525 beds in the first phase of its intended 1200-bedded tertiary care multi-specialty complex.
4. Jaypee’s F1 Sports:
The Group hosted the inaugural Formula One Grand Prix of India on October 30, 2011. The track is anticipated to hold more top-tier international racing competitions in addition to F1. Though this was unsuccessful as F1 races did not succeed in India.
5. Jaypee’s Real Estate:
The first real estate project of the group, Jaypee Greens Greater Noida, covers 452 acres. This distinguished municipality includes an 18-hole Greg Norman golf course, upscale homes, shopping centers, etc.
India’s First Wish Town, a premier township featuring an 18 + 9 Hole golf course, world-class residences, commercial developments, numerous entertainment amenities, and acres of greenery, was Jaypee Greens’ second project when it was unveiled in Noida in November 2007. The group then started construction on Jaypee Greens Sports City and Jaypee Greens Wish Town Agra, two townships along the Yamuna Expressway and Jewar International Airport, which is scheduled to open soon, and is a 20-minute drive from the city center.
But destiny was against Jaypee’s prosperity, and Jaypee’s fantasy township became a failure. So let’s talk about this township’s swindling and how many house buyers lost their dream homes.
Jaypee’s Failure in Real Estate:
Who doesn’t want to be the owner of their own home? All of us do. Not just any house, either. A perfect home must be spacious, well-connected to the rest of the city, have a room with a view, and have the best amenities. However, it has been more than 12 years since thousands of Jaypee Infratech Limited (JIL) home buyers in Noida were victims of the mother of all real estate failures in India. The long-drawn legal battles are ongoing, leaving more than 20,000 Jaypee home seekers running from pillar to post and many giving up.
Jaypee got the land of the wish town in return for building the Noida expressway for Rs 400 crores. The company launched 32000 flats, still, 70% of apartments are in the under-construction stage. This project did not show any signs of readiness for the completion date. Around 90% of buyers made their payment, but it was still claimed that progress has been made on this project, although there was nothing to show for it.
A total of 18,767 people paid a total of Rs.8,676 crores to the company. 1410 people received possession worth 528 crores with no registrations. 413 people canceled their booking and their refund of Rs 64 crores is still pending.
Reasons for the failure:
The reason behind the Real estate failure of Jaypee are:
Jaypee group took the money that buyers had paid for homes and invested it in other projects.
The company invested the money in other businesses.
The government changed at that time.
Future of Jaypee’s Failure:
After a super-lengthy resolution process, Mumbai-based Suraksha realty group got the approval of financial creditors and home buyers to take over the company in June 2021. Furthermore, in its offer, Suraksha promised to deliver all Jaiprakash Associates’ pending housing units within 42 months. It has offered to pay Rs 125 crore upfront and infuse Rs 3,000 crore within 90 days for completing the stalled projects. It will also put Rs 300 crore receivable from Jaiprakash Associates for completing the pending housing unit. Since Jaypee was an extraordinary case, the finalization of the bids is pending before NCLT for more than 17 months for approval. After the approval, the 20,000 home buyers who have been waiting for their units in various housing projects of Jaypee can finally breathe a sigh of relief.
In 2000, the late Atal Bihari Vajpayee, the then prime minister of India, initiate a committee to draft new indirect tax law and i.e. GST which stands for Goods and Services Tax. It was launched to replace multiple indirect taxes in India. Such as excise duty, value-added tax (VAT), services tax, purchase tax, octroi, entry tax, luxury tax, and so on. Here, propertywala brings every fact and figure that you should know about GST in real estate.
DEFINITION:
The Goods and Service Tax Act was driven in Parliament on 29th March 2017 but it came into effect on 1st July 2017. It is the only tax that applies all over India and imposes on the supply of certain goods and services. However, GST does not replace customs duty, which is still required on imported goods and services. Different categories of products and services attract different tax rates under GST.
Now, we will go ahead with the GST regime which is given by our Honorable Prime Minister Shri Narendra Modi, In his words, the Goods and Services Tax (GST) is “a path-breaking legislation for New India”. Then, GST is not just a tax reform but a milestone in realizing Sardar Vallabhbhai Patel’s dream of building ‘Ek Bharat – Shrestha Bharat’.
GST APPLICABILITY IN REAL ESTATE:
APPLICABLE –
1. It is applicable to under-constructed flats only. 2. It is because the GST does not cover the real estate sector under its range. Therefore, the tax rate applicable on a property is charged under ‘work contracts.
NOT APPLICABLE –
1. GST does not apply to ready-to-move-in flats, plots, and lands. 2. Upon completion and receiving the occupancy certificate i.e.(OC), the property is categorized as ready to move in. That is why a developer cannot charge GST on selling ready-to-move-in homes.
GST RATE ON REAL ESTATE 2022:
Everyone has a dream of a house. Well! It is fine if you are planning to buy a property. Because buying the right property is one of the biggest achievements in life. So, home buyers in India have to pay GST on the purchase of under-construction properties such as flats, apartments, and bungalows. Before hurrying on to the process, the foremost thing you must ask yourself is,“what is the GST rate on real estate?”
PROPERTY TYPE
GST RATE FROM APRIL 2019
Affordable housing
1% without ITC (Input Tax Credit)
Non-affordable housing
5% without ITC
According to the table, if the property is affordable, the GST rate from April 2019 is only 1% without ITC. Also, for non-affordable housing, the GST rate is 5% without ITC.
WHAT IS ITC?
Input Tax Credit refers to the tax already paid by a person on any purchase of goods and/or services that are used or may use for business. Therefore, it is available as a deduction from tax payable.
AFFORDABLE HOUSING AS PER GST:
According to government norms, housing units worth up to Rs 45 lakhs are referred to as affordable housing in metro cities in which carpet area measures up to 60 sq. meters. The Delhi-National Capital Region, Bengaluru, Chennai, Hyderabad, the Mumbai-Kolkata are categorized as metropolitan regions. A housing unit in non-metro cities barring to be an affordable house, if it costs up to Rs 45 lakhs and has a carpet area of up to 90 square meters as mentioned in the given table.
CITIES
PRICE
Carpet AREA (SQ/M)
METROS
up to Rs. 45 lakhs
60 sq./m
NON- METROS
below Rs.45
90 sq./m
SOME FACTS TO BE NOTED WHEN CONSIDERING GST IN REAL ESTATE:
It does not subsume the stamp duty and registration charges, which you still have to pay.
Seller increases the cost of ready-to-move-in properties to factor in the GST cost. So, overall the under-constructed properties are still cheaper than ready-to-move-in properties.
That’s all you need to know about GST when it comes to real estate.
India’s wealthiest truly have luxurious tastes and live in prestigious residences with unique names, unexpected architecture, elegant interiors, and first-class services. Here, we’re showing billionaire homes. So, if you are eager to know which of these billionaires of India live in the most expensive houses then you are on the right way. Read on propertywala as we take you through the list of India’s 5 most expensive houses.
1. MUKESH AMBANI’S ANTILIA:
Reliance Industries Limited chairman, a business tycoon, Mukesh Ambani is one of the wealthiest men in India. His luxury house comes on the top list ofIndia’s 5 most expensive houses. Therefore, a man who currently holds the title of 11th richest person in the world lives in Antilia, the most expensive private residence in India.
Let’s know about Antilia’s house:
It is located at Altamount Road, Mumbai, Maharashtra
The area of Antilia (in sq. ft.) is 4 lakh sq. ft.
Total no. of floors 27.
Mukesh Ambani’s house has approx. 600 staff.
Other vital features: 9 high-speed elevators, a Private movie theater, 3 helipads, a hanging garden, an ice-cream parlor, a salon, and a gym. Apart from this, there is a parking space for 168 cars with 6 floors of car parking.
The price of the house is approximately 15,000 crores.
2. GAUTAM VIJYAPAT SINGHANIA‘S JK HOUSE:
The chairman and Managing Director of the Raymond Group, the world’s largest producer of suiting fabric. He has a mansion that is called JK House, which will be a combination of a private residence and a textile showroom.
The location of the house is Altamount Road, Mumbai, Maharashtra, located next to Antilia.
The area of the house ( in sq. ft.) is 16,000 square feet.
The total no. of floors is 30.
There are 6 Parking floors.
Some other features: 2 swimming pools, a spa, a gym, and 1 helipad.
The price of the house is 6000 crores.
3. MR. ANIL DHIRUBHAI AMBANI’S LUXURY HOUSE ‘ABODE’:
A top businessman in India and the Chairman of Reliance ADA Group Mr. Anil Dhirubhai Ambani’s property offers luxurious and 7- star hotel amenities. This luxury villa is known as Abode.
Let’s have a closer look at this magnificent property:
It is located at Pali Hill, Mumbai
The area of the house ( in sq. ft.) is 16,000 sq. ft.
The total no. of floors is 17.
Other vital features are: a swimming pool, a gym, 1 helipad, parking space, and a lounge area displaying Ambani’s car collections.
The price of the house is 5,000 Crores.
4. MR. KUMAR MANGALAM BIRLA JATIA HOUSE:
Jatia House is also one of the most expensive houses. It is owned by the chairman of Aditya Birla Group, Mr. Kumar Mangalam Birla, a Chartered Accountant.
Jatia House is located at Little Gibbs Rd, Malabar Hill, Mumbai.
The area of the house (in sq. ft.) is 30,000 square feet.
There is a total of 3 floors.
Some other features of Jatia House are: a grand garden, a small pond, a central courtyard, and 20 bedrooms.
The price of the house is 425 crores.
5. SHAHRUKH KHAN’S MANNAT:
The King Khan of Bollywood, Shahrukh Khan is one of the most loved stars in the Hindi film industry. His house, Mannat, is a famous landmark in Mumbai city. His house looks very glamorous and has become a tourist place for his fans.
The address of the house is Mannat, Land’s End, Bandra (West), Mumbai.
The area of Mannat (in sq. ft.) is 27,000+ square feet.
There are 6 floors.
Other vital features in Mannat are multiple bedrooms, living areas, a gym, pool, library, a private movie theater, Shahrukh’s office, an impressive terrace, and a bar.
The house price is estimated to be around Rs. 200 crores.
About 1,824 residential projects in the state were declared as “expired” due to exceeding completion dates set by the Maharashtra Real Estate Regulatory Authority (MahaRERA).
These projects will now require 51% of the buyer’s consent to ensure that appropriate completion dates are extended. 103 of these projects were completed on time in 2017, 541 next year and 1,180 in 2019.
According to an official, many projects were not completed, even after a one-year extension under section 6 of the Real Estate (Regulation and Development) Act. “All of these projects will now require the consent of 51% of the buyers in accordance with Section 7 (3) of the Act”.
Developers are now restricted to promotions-
Due to the Act, developers of these projects are prohibited from selling, advertising, or promoting them before applying for an extension. Of the 1,824 projects listed by MahaRERA as overdue or expired, 350 project renewals have been submitted. However applications of these projects are currently pending or under scrutiny.
MahaRERA has extended the deadline to September for projects that were supposed to be completed in March. “The rest of the projects had deadlines before 2020 year, when the pandemic hit,” a MahaRERA spokesman said. A majority of the projects are based in Pune, Mumbai, Thane and Raigad.
An additional 1,500 projects may be under the scanner since their deadline expired in March 2021. Developers of these projects may now benefit from a one-year renewal under RERA Section 6.
Strong message to arrogant developers-
The developers felt that the authorities should make decisions appropriately as the market was down and there were difficulties in getting documents on time.
Anuj Puri, Anarock Property Consultants chairman said, the MahaRERA’s decision was a strong signal for arrogant developers who were postponing projects. “Home buyers have been waiting to gain possession of projects for the past three years. The last year was unique as the pandemic resulted in disruptions in the supply chain and inaccessibility of buildings. The year 2020 should be considered as an exception.”
Credai Maharashtra President Sunil Furde said, “MahaRERA was right to point out the status of unfinished projects. However, many projects remain “unfinished” for technical reasons. The authorities need to consider and evaluate this aspect as well. In addition, the projects for Credai members listed on the portal were completed on time. The “completion certification” for these projects has been received from municipal corporations before the registered dates. There are projects that have been completed, but completion certificates were received later.”
The Maharashtra Real Estate Regulatory Authority has stated that a simple conditional permit to convert an agricultural land into non-agricultural non-urban areas without providing any infrastructure can only qualify as an ongoing project and therefore must be registered under RERA.
A permit to convert a plot of land from agricultural to non-agricultural is only the beginning of the process and ends when tehsildar registers, that all imposed conditions are met and constitutes a “completion certificate”, MahaRERA explained.
Dealing in “plotted development” outside urban areas, MahaRERA instructed a developer to immediately register a project on August 10. It was found that the conditions imposed over a nearly decade-old nod for non-agriculture (NA) use by the Raigad collector remained pending.
No Advertisement before registration-
Ajoy Mehta, MahaRERA chairperson, said, the actual nomenclature of the completion certificate means that the premises are finished and suitable for human habitation. The use of Non Agricultural land starts when tehsildar corrects that all conditions are met.
Mehta ordered the developer not to advertise, sell or approve non-agricultural bookings in a project called Amarai in Kolad for sale. Until it is registered under Section 3 of the Real Estate (Regulation and Development) Act (RERA). He also imposed a fine of Rs 50,000 for non-compliance with the provision of the law and failure to register an ongoing project. “The amenities that were promised and those listed in the NA judgment were not delivered. So, the property remains deprived of the amenities to allow a buyer to use it. Therefore, the project has no CC until the date,” said the order.
Mandatory to give Amenities stated in agreement-
Last year, the Amrai Kolad Plot Owners Welfare Association filed a complaint against Sai Developers, and others. According to their lawyer Zaman Ali, in May 2012, the Raigad district collector gave conditional NA permission to the developer to build infrastructure facilities, including roads, storm drains, sewerage, water supply and open space development within two years. Shortly after receiving permission, the developer started advertising the project, promising infrastructure services and a possession period of development costs of Rs 50,000 per plot. The complaint is that despite the payment “the project remained unfinished”.
After RERA went into effect on May 1, 2017, in October 2017, the developer announced new announcements for the remaining unsold plots offering services including the pool. But if infrastructure and services are not provided, the project will fall under RERA as an ongoing project that requires registration, the association said.
The developer, through his lawyer Tanmay Ketkar, argued that the project was completed in 2014, met all the conditions of NA and all plots were sold. So this is not an ongoing project, and the complaint is a “mala fide” harassment.
“In case of planned development, it is “imperative” that all agreed amenities should be completed, said Mehta.
PUNE:- Citizens planning to register their property this month must have to book or reserve time slots. These time slots should be booked at the relevant registry office using the e-step-in facility. In accordance with the strict restrictions on passenger traffic under the Maharashtra government’s order to prevent the spreading of Covid-19.
Slot reservation ensures that each of the 519 government offices will do a maximum of 20-30 registrations per day, indicating a sharp drop in government revenue in the first month of the new fiscal year. These 519 offices will operate Monday to Friday, from 10:00 am to 6:00pm. And the offices remain closed on weekends following weekend curfew orders.
A senior registration officer said. “Few home buyers can meet such restrictions after booking online space, which will affect revenue collection during the beginning of the new fiscal”.
Same process for those who have paid stamp duty-
A senior officer from the registration department said, home buyers who paid stamp duty prior to March and those who are required to pay and register their property this month, they must follow the same procedure for reserving slots using the e-step-in facility. They have to visit the State Property Registration website to reserve the time slots and receive confirmation of the assigned time slot.
Shravan Hardikar, inspector-general of registration and controller of stamps, said, the notification of reserved slots must be shown during the entrance to the registration office. Only those who are required to be present during the registration process are allowed in the office to ensure the least possible crowd at the registration authorities. He also urged developers to electronically register new properties in their own offices.
Credai officials stressed quitting the stamp duty waiver (only women get a 1% exemption) and the new restrictions will certainly affect the registration process and the overall real estate business in the state.
Shantilal Kataria, National vice-president of Credai, said, by March the government was setting high records and the stamp duty exemption gave the property market a boost. We urge the government to reconsider our demand to continue the stamp duty waiver in the current situation. If the state government declares that the restrictions should not impact the economy, they must take appropriate action.
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.
New Delhi, December 21, 2017: Investors Clinic, a Noida-headquartered fastest growing real estate consulting giant, has announced its growth plans to expand business operations nationally by setting up offices in Mumbai, Bangalore and Jaipur. These markets have shown unprecedented real estate growth in past few years creating huge demand for professional real estate services.
After its successful operations in Delhi-NCR with impressive growth record of 20% annually in last 10 years, Investors Clinic sees surge in demand for its quality real estate consulting offerings in other markets of the country having immense potential for real estate growth from consulting to buying and selling properties both in residential and commercial projects. The company aims to achieve three-fold growth in next 5 years.
Speaking on this expansion plan, Honey Katiyal, Founder, Investors Clinic said that, “We see a huge opportunity for consulting services in matured markets like Mumbai and Bangalore and growing market like Jaipur. Our vast expertise and experience in real estate consulting for last 10 years have encouraged us to expand our business operations to these markets and win customer trust. Investors Clinic aims at setting operations in at least 10 new markets in next 5 years and is confident of achieving the same, given its consistent year-on-year growth.”
Investors Clinic has already partnered with leading developers in these three markets, as part of its expansion plan to establish itself as an emerging player and cater to the growing needs of homebuyers and sellers looking at professional real estate guidance and expertise in today’s highly competitive and complex marketplace.
Investors Clinic has partnered with pioneer builders like Lodha, Rustomjee, DLF, Godrej, Sobha, Tata, Damac and more as part of its pan-India expansion plans in key cities including Mumbai, Bangalore and Jaipur and looking at giving a value for money experience to their customers.
About Investors Clinic: Investor’s Clinic is a real estate consulting company serving all over the globe. Investor’s Clinic, a pioneer amongst professional real estate consulting companies in India, has served premier corporate houses in both domestic and international arena. With more than ten years of collective experience in this industry, their expertise is in providing best in class customer service through world class technology, process and response mechanism
Prime Minister Manmohan Singh will take personal attention to make sure that the Navi Mumbai airport takes off. Now that the project affected people will be getting 22.5 pc of the developed land with an average of 2 floor space index in the area.
The growers from the area have been assured of suitable compensation. The land acquired would be developed into a state-of-the art airport with international standards. The facilities will be world class for the travelers.
The major issues concerning the new Airport facing are like Churchgate-Virar Elevated Suburban Rail Corridor; Mumbai Trans Harbour Link (MTHL); Colaba-Bandra SEEPZ; Salt Pan Land and Indu Mills Land were deliberated at length.
A high-level meeting was taken place in Mumbai in which Manmohan Singh, Pritiviraj Chavan, Sharad Pawar, P Chidambaram, Montek Singh Ahluwalia, Ajit Pawar and other minister and officials took part to discus the issue.
In a effort to give another life line to Maharashtra infra sector, a new Rs 9,689 cr MTHL project is being declared and the CM urged the PM to declare it as a National Project and provide enough financial support to the project.
The new mega project involves a total distance of 22 km which will have hassle free link from Mumbai to Navi Mumbai, Pune Goa and South India.
The state government urged the PM to intervene in the infra projects to remove blockages and help the state to get approvals for the projects.
Morgan Stanley plans to invest in Bandra Kurla Complex, in Mumbai where the firm will develop around 1.6 million sq. ft. of office space. If this deal takes place this will be the first investment of Morgan Stanley in India in the commercial sector.
Morgan Stanley plans to invest in India
Morgan Stanley Real Estate Investing is pondering over the firm’s plans to develop 1.6 million sq. ft. of office space in Bandra Kurla Complex in Mumbai. Mumbai- based real estate firm, Wadhwa Group, initiated construction of the project under which two more commercial towers will be developed by the end of next year.
Though the deal is only in its initial stages now, it would be the first investment by Morgan Stanley investors in the commercial sector of India. Earlier the firm had invested $850 million in India for developing a real estate project. However the project was basically a housing project. And so it would be the first time the American firm will be investing in a commercial project. Continue reading →
A recent survey reports that Mumbai and Delhi are included among World’s cheapest cities. Mumbai shared the top-spot with Karachi; while Delhi stood third.
According to a survey; recently conducted by Economist Intelligence Unit, top Indian cities Delhi and Mumbai have found place among world’s cheapest cities.
Mumbai tops the list of all least expensive cities of the world.
Mumbai and Karachi; the financial capitals of India and Pakistan respectively, topped the list of the cheapest cities of the world. They were followed by the Indian Capital city New Delhi which was ranked third. Algiers, the Capital of Algeria and the Capital of Nepal Kathmandu were the other two world cities included in the top five cheapest cities of the world.
Recently Economist Intelligence Unit conducted a survey among world’s top 131 cities. The survey was based on the cost of living. The cost of living was decided on the prices of over 160 items. The list of the items included the transport-fares, utility service charges, and expenses on food and clothing.
Maharashtra Industrial Development Corporation – MIDC announced its new industrial policy in the state. Mumbai Real estate is said to gain benefits from this new policy.
Mumbai real estate builders welcomed new industrial policy despite scam allegation.
The new industrial policy announced by the Maharashtra Industrial Development Corporation – MIDC gives new hope to the Mumbai Real estate developers. This new policy remains as a New Year jackpot for the Mumbai Real estate developers.
MIDC decided to free nearly 35,000 acres of land in the special economic zones (SEZ) for developing residential projects. As per the new policy, around 40% of the total available SEZ land can be used for residential developments. The remaining 60 % of the land will be used for commercial development. Continue reading →
Real estate investors of India prefer to have real estate investment in tier two cities now. These developing cities offer higher returns for the real estate investors.
Real estate investment in tier 2 cities is more profitable as it offers higher returns.
The Tier two cities are more preferred by real estate investors now. These cities are noted for their faster development and this is the main factor that attracts the Indian real estate investors to these cities.
Real estate investors’ traditional approach to bigger cities such as Delhi and Mumbai shifts as they remain incapable of delivering higher returns to them. On the other hand tier two cities are emerging as better real estate destinations.
The cities with better job- opportunities are all the more preferred real estate investment destinations. Higher population inflow to the small cities like Pune and Gurgaon prompts the builders to increase the supply.
With the growth of population the commercial needs improve and so does the demand for commercial spaces. These cities better offer chances for business growth as well. All these factors have pushed up the real estate prices as there is an increased demand.
Developed cities do not support Real estate investment as it offers only lower returns.
Leading real estate consultancy firm Jones Lang LaSalle India (JLL) reported that the cities like Bangalore and Chennai will grow along with the expansion of IT centers in the cities. The real estate consultancy firm highlighted the expansion plan of Wipro.
Wipro has recently disclosed their plan of expansion. The firm plans to expand their existing Bangalore headquarters and campus which at present has the capacity to hold 31,000 people. Another 25 lakh sq. ft. of area will be added to the current Wipro headquarters.
IT expansion is taking place in Hyderabad and Chennai as well. These areas’ growth will be dependent on the IT expansion. JLL India’s CEO Om Ahuja opined that the real estate prices in these cities will be more dynamic than in other cities. He added that trends of real estate supply will be different in these areas.
All these features tell the real estate investors to tap new and emerging markets. They can reap sizeable returns from these cities and so these cities remain hotter places to have real estate investment. In short prime real estate investments in tier 2 cities are easier way to become rich now.
Demand for space in commercial real estate sector is reviving after the earlier setbacks in the primary quarters of the year 2012. Seven prominent commercial hubs of India showed a greater pace of growth in the third quarter of 2012. The third quarter which longs from July-to-September quarter, witnessed an A-Grade office space absorption by the major commercial real estate hubs on India. Continue reading →
Continued population boom in India leads to a situation where residential units or space remains insufficient for the people. According to Cushman and Wakefield all major cities of India are in high need of around 2.1 million new housing units to meet the increased demand. Real estate sector has to come up with new residential projects to solve out this great menace. Real estate has to play a vital role. Continue reading →
Commercial Sector Booms with Service Sector Growth
Growing service sector of India drive the demand for commercial real estate. Real estate research firms reported that Service sector of India showed a greater pace of growth rate of 8.5%. This will result in the increased demand for more commercial real estate space. In 2011 service sector occupied 70 % of office space and this is likely to be increased this year. Continue reading →
Reliance Capital prepares to launch its maiden real estate focused fund of र 1,000 crore by the end of the year 2012. Reliance Capital is owned by Anil Dhirubhai Ambani (ADA) Group. This maiden launch of Reliance Capital in the realty industry will be done under the surveillance of Reliance Portfolio Management Services (PMS). The new fund will aim at constructing residential properties. The investment will be concentrated in the cities like Pune, Chennai, Bangalore, Mumbai and Delhi primarily. Reliance selected these cities as the real estate markets of these cities are more firm and have an increasing value appreciation.
The higher financial stress of the Government makes them think of selling or leasing of the surplus land. This will provide more land for construction in metropolitan cities like Delhi, Kolkata, Mumbai and other such notable cities of India.The decision will boost the real estate growth. Realty firms are sure to cast their hawk’s eye on this land and make the profit out of it. Continue reading →
