Tag Archives: Pune

Discover Quality Resale Flats in Pune: Your Key to Affordable Housing

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It’s not easy to purchase a flat for the first time in Pune, especially on your own. Several factors should be considered, such as price, location, EMI burden, neighborhood, amenities, distance from the office, etc. It can be challenging to foresee how a place will change. Their objective is to make us believe that every neighborhood has a lot of potential, that there will soon be six new schools and a dozen new tech parks nearby, and that investing in a home in what they’re suggesting will have virtually no downside! 

Uncertainty, however, is the issue for a home buyer. Often, infrastructure projects are delayed, new tech parks are not built, and the roads are frequently flooded, defeating the whole purpose of investing in an “up and coming” area. 

This is when purchasing a flat off-market makes sense. A resale property is one where the seller is a homeowner rather than a builder; the seller has already lived in or rented out the property and is considering selling it. Many people are wary of purchasing a resale flat in Pune because they believe it might be full of issues. While there are workarounds for this, let’s examine the benefits and drawbacks of purchasing a resale flat in Pune. 

Benefits of purchasing a resale flat in Pune 

When it comes to purchasing a home that is ready to move into, resale properties are considered more financially viable due to several factors, including the property’s age, the asset’s final cost, depreciation over time, the need for renovations, etc. There are numerous advantages to purchasing a resale apartment, including the following, regardless of what motivates you.      

Save on tax 

You will pay less tax if you purchase a resale flat in Pune. You are eligible for a tax exemption of up to Rs. 1 lakh under the Income Tax Act (Section 80C of the Income Tax Act allows for on-principal EMI). A tax deduction of up to Rs. 5 lakh is also available for home loan interest under Section 24B.   

Moving in ready 

You don’t need to wait for the building to be finished or stress about connecting your internet, cable, gas, etc. These facilities will all be available. The previous owners likely already have almost everything in a house that you’ll need to install and make functional. 

Location 

These older homes may be found in the city’s older neighborhoods. On the outskirts of cities, as well as in newer or developing areas, are new apartments. These areas are thoughtfully designed and already have everything you could want nearby. 

Drawbacks of purchasing a resale flat in Pune

The limited appreciation of resale apartments is a big issue. Compared to resale apartments, new apartments increase in value much faster in the first few years. When purchasing a resale flat in Pune, you pay the increased value! However, moving in and starting to live in the apartment is your main priority. 

The limited appreciation of resale apartments is a big issue. Compared to resale apartments, new apartments increase in value much faster in the first few years. When purchasing a resale flat in Pune, you pay the increased value! However, moving in and starting to live in the apartment is your main priority. 

Factors to consider before purchasing a resale flat in Pune 

When purchasing a resale apartment, there are many things to watch out for. Among them are: 

Rules and regulations

There is always an association that controls what happens in society if you purchase a flat there. The type of modifications that can be made to the house you are buying has to be confirmed with them. Some societies will have regulations governing the kinds of renovations permitted, the times that may be done, etc. Check with the building association for permission before searching for a home that needs significant renovations. 

Down payment and homeowners insurance 

When purchasing a resale flat in Pune, you should be aware that the insurance payout will be less than it might be if you had to buy a brand-new residence. For a resale flat, you must put down a minimum of 20%, higher than the down payment required for brand-new homes. 

Pending dues 

An essential thing to look for is all unpaid debts that the home’s owners are still paying. Late utility bills, such as those for water or maintenance, may be considered a debt. In some cases, the owner might not be willing to provide this information. 

When was the property built?

The question is: how old is too old? It is best to avoid any land at least 40-50 years old. At this point, you might have noticed significant structural damage to the home and building. You need to spend more money than planned because of the necessary remodeling and the additional repairs. 

Essential documents to see before purchasing a resale flat in Pune 

A house, apartment, flat, villa, or other resale property can’t be purchased without property documentation. When buying a resale flat, the following documents are required for resale flat registration:

  1. The primary legal document is the sales deed.
  2. The building plan will tell you if the structure has been sanctioned and approved.
  3. The occupancy certificate certifies that the building is fit for human habitation.
  4. Certificate of Encumbrance: the house has no liabilities.
  5. Tax Receipts: There are no outstanding tax payments, and everything is current.
  6. Access to all previously registered agreements under the Mutation Deed
  7. NOC: Certificate of No Objection
  8. Possession Certificate: from the builder to the owner and finally to you.

What are the charges for purchasing a resale flat in Pune? 

The bank does not typically factor in stamp duty and registration fees when you purchase a resale apartment. Stamp duty on a resale flat typically ranges between 5% of the gross transaction value with a registration fee of  Rs. 30,000/-

Hiring the right team to assist you may appear to be a waste of money, but when these fundamentals are not in order, you may cause far less.

Buy Ready Possession Flats in Pune: Affordable Housing

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Are you looking for a flat in Pune? But are you overwhelmed with all the research to find your perfect apartment? Don’t worry! We are here to help you. Pune is a highly desired city in India, as it is the second-largest IT hub in the country and the top FDI destination. 

The incoming professionals in Pune expect a life of luxury and a comfortable standard of living. The demand for flats for sale in Pune is rising. The need for a luxurious lifestyle has already caught up with supply, putting pressure on the developer community to move away from outdated standards and create new ones to satisfy the demand. 

In prime areas like Baner, Anudh, Hinjewadi, Balewadi, and Bavdhan, Pune is now a perfect model neighborhood for sustainability and livability that meets international standards. 

Most of us consider buying a home a significant and emotional decision. We ask questions when we decide to buy a home. When you live in a city like Pune, where the cost of living is very high, it is difficult to make this decision. 

Advantages of buying ready-possession flats in Pune 

Every buyer of a home must choose between a unit that is ready for possession and one that is still underway. It is a significant decision that demands serious consideration. Even though buying ready-possession apartments requires having a lump sum of cash on hand, it also has its own set of benefits. 

Cost considerations 

Ready-possession apartments are great because you can move in and save money on rent. The builder may also agree to a price reduction and waive the floor rise. Thus, you get a much better deal. 

Immediate Possession

For under-construction homes, buyers have to wait to get their dream home in hand. It induces a sense of uncertainty and the fear that the money may get stuck if the builder faces any problems. With ready-possession flats, the process is smoother-complete the required paperwork, pay the amount, get possession, and move in whenever you want. There is no fear of delayed delivery. 

Quality

You get to see the finished product when you purchase ready-possession apartments. Before choosing an option, you can examine the construction quality, space allocation, required amenities, and other details. There are no concerns about overstated features, layouts, or amenities. 

Immediate ROI (return on investment)

If you purchased it as an investment and choose not to live there, you can sell it as soon as it suits you. Families, young professionals, and students are keen on ready-possession apartments. Your rental income thus begins. It is a great help if you are paying the EMIs on the loan. 

The disadvantages of purchasing a ready-possession flat in Pune 

 Payment schedules are rigid

Unlike projects still in the planning stages, the payment schedules for ready-to-move properties are stout. All payments, including the down payment, stamp duty, registration fees, maintenance fees, etc., must be made in one go. 

More legal work and documentation: 

When buying a property already ready to move into, much more legal work and paperwork are required than when purchasing a property under construction.

Fewer customization options

When the apartment builds, it’s possible to fully customize the rooms and home to suit your needs and preferences. But this option isn’t available if you purchase a ready-to-move property. You have to buy and stay in a home that is already complete. 

Inflated Price 

Compared to projects still in the planning stages, ready-to-move-in units are expensive from a price perspective. 

Why invest in ready-possession flats in Pune?

Low-Risk 

All under-construction property is hard to sell, especially if its delivery is postponed or embroiled in litigation. Most of the time, real estate developers don’t sell apartments until the entire project is done, and even then, they’ll charge you a hefty premium. You can avoid this risk by purchasing a ready-to-possess flat in Pune. 

Save on rentals.

For ready-possession homes in Pune, you immediately start getting rent if you are not planning to move into your new home. Many homeowners prefer renting their homes if they invest in other cities. Each location typically has a fixed rent structure based on the amenities it offers and how recently it was built.

No down payment 

The main advantage of a ready-possession flat is that the buyer only needs to pay the home loan’s EMIs before they can move in. Since the EMI won’t begin until the home loan and the rates may change, the homebuyer may be required to pay a higher interest rate for an under-construction property if the developer experiences any delays. The buyer might experience financial hardship and decide to back out of the deal to buy the property. 

Documents to verify when purchasing ready-possession flats in Pune

Do you have any plans to move into a ready-possession flat in Pune? Have you located your ideal home? Furthermore, we understand that the ease of moving in as soon as possible may be the most essential aspect of it all, but research is necessary to make the process easier for you and your loved ones. It’s always the best choice to be aware of the essential documents you’ll need and to confirm them before moving to make the experience convenient. 

Tax-paid receipt 

The buyer verifies with the appropriate groups that the seller has settled all outstanding debts. Buyers should always request the seller’s original, most recent tax-paid receipts. The payment date, taxpayer name, and owner name must all be confirmed. However, every buyer should always verify that all documents and bills, including the water and electricity bills, are current and include names and area codes. You are making this property your own, so you must attend to every last detail. 

Sale deed 

The most important document on the checklist is a sale deed because it’s evidence of the sale and the transfer of the property’s title from the seller to the buyer. Before signing the contract, it is advisable to read the fine print and confirm that all terms and conditions are accurate and appropriate. 

Occupancy Certificate

When a builder requests this certificate, the authorities inspect the requirements. The builder can obtain the certificate once it has received official approval. This certificate, a witness to the project’s readiness for occupancy, is essential for the buyer when purchasing a property or applying for a mortgage. 

Completion Certificate

The municipal government issued this certificate. It demonstrates the completion of the project and that all requirements were satisfied. This document is essential when looking for a mortgage and buying real estate. Additionally, this certificate certifies that the property is fit for habitation when constructed following approved codes and other laws. 

Locations in Pune to buy ready-possession flats 

Kondhwa 

The Kondhwa is among the most notable locations in the southeast. Along with residential developments, this includes industrial entities. The distance from important city destinations and information technology hubs increases its value. Mohammedwadi, Undri, and Wanowrie are places that surround Kondhwa. Kondhwa is the renowned National Institute of Bank Management (NIBM). A wide range of contemporary civic amenities, including schools, colleges, hospitals, clinics, superstores, and other necessities, are also present in the Kondhwa area. 

Hinjewadi 

Thanks to the creation of corporate offices by foreign companies at Infosys, Wipro, Cognizant, etc., Hinjewadi is Pune’s largest IT hub. The presence of these MNCs in the area has benefited a variety of factors, including employment, real estate, connectivity, and social infrastructure and amenities. 

Tathawade 

The neighborhood of Tathawade, which is close to Hinjewadi, is a top location for investment and daily life. Tathawade is for homebuyers because of its luxuriant green surroundings, social infrastructure, and other features. Unique projects are being built in this suburb daily to provide upscale urban living. Hinjewadi, Pimpri-Chinchwad, Pimple-Saudagar, Wakad, and Ravet are nearby. Tathawade enjoys unrivaled capital appreciation as a result of its exceptional locational advantages. 

Balewadi 

On the outside of the city, in Pune’s northwest, is a neighborhood known as Balewadi. It houses the Shiv Chhatrapati Sports Complex, popularly known as the Balewadi Sports Complex. Balewadi enjoys proximity to Baner, Aundh, and the Mumbai – Expressway. Pearly White Dental Clinic, Apex Eye Care Clinic, and Life Line Hospital are the major hospitals in Balewadi. Balewadi High Street is famous for its bars, restaurants, and nightlife. Plus, it’s easy to find plenty of greenery in the surrounding area. 

Know your neighborhood. 

You can learn everything in advance when you reserve ready possession flats in Pune, including the layout, designs, and the neighbors you will have. It’s important because you would be surrounded by them every day. Other aspects of the house are subject to your control or modification, but you can’t alter the neighbors nearby.

A ready possession enables you to speak with potential neighbors and learn more about them and their way of life. You can also discuss the local schools and the caliber of the education with the parents who reside there.  Verify that the parks and other amenities look satisfactory to you by inspecting them. You can plan your children’s commute to school or university, the best shopping malls’ accessibility, etc. 

MahaRERA marks 1,824 residential projects as ‘expired’ across the state

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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.”

Also read:-

Developers collecting money without agreement is violation- TNRERA

You can now apply for completion certificates online – Noida Authority

Non-farm use of plot only after infrastructure in place- MahaRERA

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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. 

Also Read:-

Invest in Yamuna Expressway

6 month extension to builders to deliver projects-MahaRERA

Publicly Disclose the Apartment Sales: MahaRERA

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Due to a growing number of complaints about developers illegally transferring the same apartment to multiple buyers. The MahaRera Real Estate Regulatory Authority (MahaRera) ordered them to publicly disclose whether the apartment was sold or reserved.

To avoid more than one transaction with apartments / plots, it is mandatory to provide information immediately once a flat is booked or sold. According to experts from the real estate market, there are cases where builders only issue an allotment letter to the buyer. (A letter of allotment kind of confirmation that the apartment is booked). 

The apartment can be resold to another buyer and the first buyer remains unknown of this. Also the same apartment can even be mortgaged to banks or financial institutions. Ultimately, neither the first nor the second buyer is aware of the sale of the apartment. Also the bank is not aware of this kind of sale. Thus, the developer illegally collects funds for the same apartment from two or even three different buyers.

Difficulties to lenders and consumers–

Pankaj Kapoor, an official from a real estate firm, Liases Foras, said, the main purpose of RERA was to suppress such threats and actions. The law stipulates that developers upload information about mortgaged and sold properties on the RERA website. Previously, it was noticed that many builders’ projects were stuck in the NCR and MMR trap and practiced similar approaches. It had caused several difficulties to lenders and consumers. These builders need to severely be punished as this undermines consumer confidence and discredits the entire industry.

Shop Sold Multiple Times

Manohar Shroff, Navi Mumbai based builder said, Navi Mumbai has become “a villain’s port”. The whole industry suffers from some dishonest brokers and builders.
In one case, Shroff said a developer cheated or misled several investors and fled to Pune. In another case, a builder fled with Rs 100 crore, and a third sold a shop several times in Belapur’s CBD and misled buyers. So, to avoid these kinds of fraud, buyers should register their documents as soon as possible.

Must Register Sales Agreement-

Property law expert, Lawyer Anil Harish said, it appears that even after the arrival of RERA, some developers continue to issue more than one allotment letter for a single property. This is obviously wrong in both civil and criminal law.
Buyers should also check the MahaRERA website to see if the project registered and if building permits have been received. Also search sub-registrar registrations to check ownership and mortgages.

According to experts, buyers must register an agreement if more than 10% of the apartment price is paid. Stamp duty for a letter of employment, a letter of intent or a memorandum of understanding (MOU) can be 1% of the price to encourage people to sign up. This 1% must credited to the stamp duty specified in the contract, so you only have to pay the remaining 4%.

Also read:-

BRERA wants separate teams to help home buyers

CREDAI-MCHI urges Maharashtra Government to cut stamp duty to 2%

Gujarat government offers property tax waiver for restaurants, hotels, resorts & water parks for FY21-22

Reasons to Invest in Panvel

CREDAI-MCHI urges Maharashtra Government to cut stamp duty to 2%

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Real estate association CREDAI-MCHI on Tuesday requested the Maharashtra government to cut the stamp duty to 2 percent in Mumbai to revive housing demand amid the COVID-19 pandemic.

The association wrote separate letters to Udhav Thackeray, Chief Minister of Maharashtra, Ajit Pawar, Minister of Finance, and Balasaheb Thorat. Deputy Chief Minister of Maharashtra and Minister of Revenue of Maharashtra.

Drastic reduction in stamp duty collection

In September 2020, the Maharashtra government announced a 2-3 percent reduction in stamp duty. The exemption became ineffective in March this year.
In support of its claim, the association cited a slowdown in housing sales and a sharp reduction in stamp duty collection for the state government.

CREDAI MCHI, which has more than 1,800 developer members, has asked the state government to reduce stamp duty to 2 percent in Mumbai by March 2022. In addition, authorities said the downward trend will continue and many potential buyers are hesitating due to higher transaction costs.

The industry authority noted that the decision to reduce stamp duty in August 2020 has helped the sector incredibly.
However, the decision not to renew the stamp duty refund after March and the outbreak of another wave has led to extremely low-key sentiment from home buyers. Revenue collection for the authorities has also fallen. Property registration and stamp duty collection fell by 70 percent in May compared to March.

Low inquiries since past few months!

Deepak Horadia, president of CREDAI-MCHI, said, the association has called for an extension of the cut beyond March. So that the momentum of this industrial and economic revival does not fade. “However, we have seen a strong downward trend in inquiries and sales in recent months. Which not only hampers the sustained progress made in the real estate sector but also the more than 250 aid industries that come into play. Goradia said the state government should be aware of the need to return stamp duty reduction. So to regain the confidence of home buyers as well as increase its own revenue collection.

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Best Area to buy Flat in Pune

MahaRERA order developers to disclose sold, booked inventory

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The format requests data such as a total number of floors/wings, number of floors/shops/ townhouses, carpet area, sold/reserved/unsold property. And the date of registration at the sub-registrar’s office.

AURANGABAD: The Maharashtra Real Estate Regulatory Authority (MahaRERA) has ordered all developers to unveil their inventory. This includes the sale of apartments, houses, land, booked flats, as well as other construction details. This database is important because it will provide greater clarity to buyers and prevents more than one transaction. 

Information in proper format-

MahaRERA asked developers to provide details in the prescribed format. Referring to the permissible provisions of the Real Estate (Regulation and Development) Act 2016, which has been in force since May 2017.

The format requests data such as a total number of floors/wings, number of floors/shops/ townhouses, carpet area, sold/reserved/unsold property. And the date of registration at the sub-registrar’s office.

Currently the CREDAI Maharashtra has 3,000 active members in 59 cities across the state.

According to RERA, any aggrieved buyer can file a complaint with the competent authority. In relation to a real estate project that has been registered for violating any laws or rules and regulations related to RERA. The authority can put in place a complaint access mechanism to deal with such complaints quickly. Anyone who feels dissatisfied by an instruction, decision, or order from MahaRERA or a judicial officer. He/She can appeal to the appellate court and then to a higher court.

CREDAI welcomed MahaRERA decision-

Confederation of Real Estate Developers Association of India (CREDAI), Maharashtra, has appreciated this decision of the MahaRERA. Officials from CREDAI said this decision aimed at corrupt developers who are not registered with the association’s offices in the state.

Sunil Furde, CREDAI Maharashtra president said- “We appreciate and welcome the new MahaRERA order, which seems to be aimed at eliminating illegal construction, which is mainly seen in small towns.

Now the developers will disclose or announce the number of sold units and upload the details to the MahaRERA website in accordance with legal requirements. CREDAI correctly accepts the MahaRERA circular as defined by developers who do ethical business and comply with the law.

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UP-RERA postpone physical hearing of complaints

DTCP launches online portals to buy affordable home in Gurugram

New rules by the PCMC

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As it was planned, the launch of an additional 6,500 tenements for the low-incomecropped-1-pcmc-main-building group under the JNNURM has now been unexpectedly cancelled as stated by the municipal commissioner Dinesh Waghmare.
This has been carried out because of Pimpri-Chinchwad Municipal Corporation(PCMC) which was started under the Pradhan Mantri Awas Yojana (PMAY) the present year.
The beneficiaries who have already applied for the 6,500 tenements can still ask for their benefits given under Pradhan Mantri Awas Yojana as PMAY is a new scheme and if the government approves the proposal.
The PCMC had earlier planned that they would provide 17,920 tenements for those who live in slum regions and for those who fall under low-income wages under the Jawaharlal Nehru National Urban Renewal Mission. These houses were to be made by the government in the regions of Nigdi, Link Road between Pimpri and Chinchwad, Milindnagar, Ajanthanaga, Vetalnagar, Vithalnagar.
The PCMC could only construct 11,420 tenements in 2005 and the rest were supposed to be completed by this year which unfortunately had to face failure because of Non-availability of land and failure to get the positive environment.

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.

Commercial Real Estate Office Space Demand Regains Pace

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Commercial_Real-Estate

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 →

Real Estate Fails to Tackle Surging Housing Units Demand

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Surging Housing Shortage of India.

Surging Housing Shortage of India.

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 →

Growing Service Sector Enhances Commercial Real Estate

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Commercial Sector Boom

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 →

Tie Up with Everstone Marks JLL India’s Real Estate Entry

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Jones Lang LaSalle (JLL) India forays into the retail real estate India market with the company’s tie up with Everstone, one of the leading Private Equity (PE) firms and real estate advisors of India. Both the companies will collaborate in the construction and launch of four shopping malls at four main cities of India namely Vadodara, Kochi, Pune and Ahmedabad. These shopping mall projects are to be finished by 2017 or within a span of five years. Continue reading →

Reliance PMS Launches Real Estate Oriented Fund

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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.

Anand Rathi and Knight Frank Eye the Second Realty Fund

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Anand Rathi Financial Services and property consultancy Knight Frank India are planning to launch their second real estate fund by end of this months and looking to raise around Rs 500 crore (~$100 million), sources close to the development told VCCircle. Unlike its peers who are hitting foreign shores to raise new funds, the joint fund rental yield and appreciation portfolio (RYAP) fund will be raised from the domestic market.  Like its predecessor, it will invest in commercial assets in tier I cities which include Mumbai, Pune, Bangalore, National Capital Region (NCR) and Chennai.

The fund would be targeting returns of 10-12 per cent from its investments and expects to stay invested in an asset for four-five years. A senior executive of the joint venture fund house who did not wish to be identified, said, “We are waiting for final Alternate Investment Fund (AIF) guidelines as right now there is no clarity on registration of funds and other norms. Once we have clarity on the same which we are expecting by mid-May we will register and start our fund raising process.”

In April 2, markets regulator Securities and Exchange Board of India (Sebi) had unveiled its final norms to regulate AIF’s in the country. Fund managers expect the detailed guidelines to be issued in the next two weeks.

Knight Frank India and Anand Rathi Financial Services had joined hands two years ago to raise Rs 225 crore rental yield fund. It has invested Rs 135 crore from the existing fund in two projects including Hub town Ltd’s commercial project in Mumbai and Cerebrum IT park development by Pune-based Kumar Urban Development Ltd.

Hyderabad: 3rd most affordable office location in 2011

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Hyderabad has emerged as the world’s third most affordable office location in 2011 in a list prepared by global realty consultant DTZ, which has also named Chennai and Pune among the top five such positions. According to DTZ’s latest study ‘Global Occupancy Costs – Offices’, Surabaya in Indonesia and Qingdao in China were placed in the top two positions of the chart as the most affordable office locations in the world last year.

“While Tier II cities in India and China dominate the list of top 10 most affordable markets globally, Surabaya in Indonesia remains number one,” DTZ said in the report. The consultant said Hong Kong, London, Geneva, Tokyo and Zurich were the five most expensive office markets in 2011.

DTZ said Surabaya and Qingdao saw average rentals of $ 1,680 and $ 2,380 per workstation a year, respectively in 2011.
Hyderabad, Chennai and Pune followed the top two places with rentals of $ 2,430, $ 2,570 and $ 2,590 a year per workstation respectively, it added.

The study showed that Hong Kong was costliest office place with an annual rental of $ 25,160 per workstation in 2011, followed by London and Geneva at $ 22,590 and $ 18,740, respectively. DTZ, however, said many cities across the world are likely to witness decline in their rentals during this year.

“Under the downside scenario, 2012 offers occupiers a window of opportunity in which to realise cost savings as rents decline… In the top five least affordable cities of Paris, Tokyo, Geneva, London and Hong Kong, office rents fall in 2012 under the euro break-up scenario,” it added. Occupiers in Rome and Milan are likely to benefit from falling occupancy costs over the next five years as sharp decreases in rents are expected in 2012 and 2013, DTZ said.

It further said office rentals in low-cost Indian cities may see double-digit falls in this year.

Realty projects, roads focus to help build-up for Unity Infraprojects

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Healthy order book, strong balance sheet and the potential to unlock value from real estate projects make Unity Infraprojects a decent investment idea on a medium-term basis. Mumbai-based Unity Infraprojects is a small-sized construction firm operating in buildings, water and roads segments. The company is also developing real estate on its land parcels in Nagpur, Bangalore, Pune, Kolkata and Goa. The total saleable area from these projects is nearly nine million square feet.

Unity Infraprojects stands to gain by unlocking the value in its real estate projects. It was not able to monetise any of its real estate projects due to delays in execution by over a year. However, it is now in an advanced stage of securing approvals for launching its Bangalore residential project. Unity has a total saleable area of nearly 3 million square feet in this project, which it intends to launch in another three months.

After this it will focus on monetising its real estate in other cities. The current order book of the company in its construction business stands at Rs 4,700 crore, which are 2.75 times its FY11 revenues. These orders are to be executed over the next three years. The company has been increasing its exposure to the roads segment in the last few years. Although the roads segment is highly competitive, Unity’s backward integration in terms of owns machinery has allowed the company to garner better operating margins than its peers.

In the nine months ending December 2011, the company has maintained an operating margin of 15.5%. Another factor that augurs well for the company is its strong balance sheet. As of September 2011, the company had a debt-equity ratio of 1.1, which is one of the best among its peers. Unity Infraprojects’ stock is trading at a P/E of 3.9 while similar-sized rivals like Pratibha Industries and Supreme Infrastructure India are trading at a P/E of 5.9 and 5.2, respectively. Considering its growth potential and the relative discount to its peers, the stock looks attractive at this level.


20% Reservation for EWS will take time, Says Real Estate Industry.

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The real estate industry is at loggerheads with the state government after a directive by the Urban Development Department to private developers that they reserve 20 per cent of plots and tenements for the economically weaker sections (EWS). The move is being opposed not only by individual developers but also by the Confederation of Real Estate Developers Association of India (CREDAI) who is tagging the proposed policy as unworkable and not contemplated in totality. CREDAI has filed an objection with the Town Planning Department (TPD) arguing that Rajeev Awaas Iona gave thought to all aspects of such housing creation.

“The department is at present hearing people with stake in real-estate industry and have filed objections. The hearing report will be submitted to the government for approval,” said Avinash Patil, deputy director, TPD. The government notice, issued in January, specifies that out of development on plots measuring 2,000 square metre and above, the developers should reserve 20 per cent of the area for the EWS category in the plot size of 30 to 50 square meters. In case the developer is building apartments on the same area, it has been directed that minimum of a 20 per cent of built-up area be reserved in the apartment size of 27.88 to 45 square meters.

The real estate industry feels that implementation of such a policy should only happen after adequate thoughts as the notice can affect the industry adversely. “The notice lacks clarity. In the present form the move will hit us badly,” said Hemant Naiknavare, vice-president, CREDAI, Pune Metro.

Gudi Padwa and its Impact on Indian Realty Sector.

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Gudi Padwa, a festival which earmarks new beginnings and new hopes to everybody’s life. Hence many builders announce their new projects at this point of time taking into consideration the sentiments of the local market. The festival is widely celebrated in the state of Maharashtra. As for common people in India, a home is a priced possession and they do not sell and buy residential properties often. They wait for an auspicious date to such transactions.

Keeping this in mind, realtors at Pune has organized Sakal Pune Property Show named as Sakal Gudi Padwa Grihotsav 2012. Across the just concluded quarter, residential prices in the outskirts of Mumbai have seen a positive slide. With the Union Budget 2012 giving due consideration to the loans of affordable housing projects coupled with the positive feeling related to the festival, buyers and sellers expect to strike a great deal during this year’s Gudi Padwa.

The buyers mainly constitute the New Urban Family Sector. Moreover, during this festive season, realtors juxtapose the properties with attractive discounts and freebies. But with these factors only, nobody can lure customers today. They are more oriented towards the location of the property, the pricing and the quality of construction.

The recent years were not so good for real estate sector. The ever rising inflation rates and interest rates kept the buyers at the bay. But the recent decision of the RBI to cut CRR rates gives little bit of hope to the sector.

However real estate experts suggest that the sentiments related to a festival only cannot trigger the sector. But it is decisive in getting the real estate market on the right track after a gloom. Moreover, traditionally Gudi Padwa means birth of bhoomi and bhoomi is everybody’s shelter. We can hope and look forward for bright days for real estate sector ahead with this auspicious festival.

Lalit Kumar Jain: Bihar is better than Maharashtra for builders.

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When it comes to ease of approval and a good bureaucratic set up for real estate, Bihar seems to be better opportunity than Maharashtra, according to Lalit Kumar Jain, real estate tycoon and president of Confederation of Real Estate Developer’s Association of India (CREDAI). Jain was speaking to DNA against the backdrop of the first ever all India CREDAI meeting to be held in Pune from Wednesday.

“In Bihar, the bureaucratic setup to get necessary sanction allows us to complete our projects on time. Thanks to the organised system there, the end buyer also pays less for real estate compared to Maharashtra,’’ he said.

The two-day conference, will discuss amongst other things, the various challenges faced by the industry in terms of approvals, government’s decision to reserve 20%flats for economically weaker section of society and other issues.

While commenting about various problems facing the industry, Jain saidthe apparent delay in the process of getting sanctions for the projects was a major concern. “In case, the sanctions are delayed, the cost of the project escalates which results in a burden on the customer,’’ he said.

The decision of the state government to compulsorily reserve 20% of the flats for economically weaker sections of society according to Jain would be have a negative effect on the industry. “To compromise on this, the builder will pass on the cost to other buyers who will feel the pinch,’’ he said.

Indian developers will present properties to NRI investors at Doha exhibition.

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Indian developers are all geared up to offer NRI investors a wide choice of properties across India at an exhibition which is going to start on 16th March 2012.

It is the 20th India Property Exhibition in Doha on Friday which will showcase more than 100 projects spread across New Delhi, the National Capital Region, Jaipur, Mumbai, Pune, Goa, Hyderabad and several other cities.

The $12 billion realty market in India is on a high growth curve, because of the fast growing economy, increased participation of global players in the Indian market and new technological innovations.

According to organisers – Indus Fairs and Events (India) and Apex Business Solutions, Doha – the investment portfolio includes apartments, independent houses, bungalows, luxury villas, farmhouses, commercial properties, beach resorts and plots.

Realty sector seeks affordability from the government.

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Real estate businesses have much expectation from the forthcoming Union Budget 2012 that it will contain some pragmatic provisions that will lower effective price barriers for home-seekers.

Vice-president of Credai (Confederation of Real Estate Developers Associations of India) Pune Metro, Anil Pharande, said that on a macro level, a higher allocation of infrastructure funds for housing can be a favourable approach. “The government can set clear guidelines on timely commencement and completion of projects and link disbursement of these funds with adherence to these guidelines.”

Pharande also added that removal of the 10 per cent service tax on residential real estate construction, that increases the cost of new homes by as much as 3 per cent, is critical for a cost-sensitive market like Pune, which has mainly lower mid-income segment.

Real estate developers says, that broader incentives for development of affordable housing are needed, to encourage more developers to become active in this important sector and increase the supply of budget homes in the city as the city continues to face problems including high lending rates and construction costs, insufficient infrastructure and lack of affordable housing.

Even the 1 per cent interest rate subsidy on home loans can also work as a good measure to bring affordability. Also the present eligibility limit of loan amount of Rs 20 lakh should be raised to Rs 30 lakh which will help people think about buying apartments of decent sizes. Reducing taxes such as excise VAT and stamp duty on real estate will also make home purchase attractive, Pharande said.

Affordable Housing Policy to be implemented by the State Government from 15th April.

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From April 15, the state government’s affordable housing policy is set to be implemented. With a preliminary notification already out, the policy will be implemented after the final notification in a month’s time.

This decision took place at a recent meeting between Additional Chief Secretary (Urban Development Department) TC Benjamin and representatives of Confederation of Real Estate Developers’ Associations of India (CREDAI) from Pune, Nagpur, Kolhapur, Nashik and Aurangabad.

The government in the notification has made it mandatory for all projects on more than 2,000 sq m land to reserve 20 per cent of the land or constructed space for small-sized housing.

Benjamin said that, “The state has a dearth of such housing and this initiative will help bring about more such houses in residential projects. It will have to be implemented by the builders after April.”

Builders expressed reservations about whether the 20 per cent of the land should be reserved in the same area. However, it was decided that they could have a little farther but in the same zone. To this Benjamin added that, “They have to provide the housing with almost the same kind of infrastructure.”

However, most of the builders had reservations about having the economical housing on the same campus but agreed to have it a little farther away from their projects.

Pune CREDAI representative Satish Magar, who attended the meeting, said, “We are open to the policy but had some issues, which we discussed.”

LIC Housing to Concentrate on Senior Citizen Homes Business

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LIC Housing Finance focuses to have a all India-presence for its senior citizens homes business as the rise in demand from senior citizens provokes the company to scale-up presence in other cities across the country. The 4th largest mortgage lender has finished two projects, one in Bangalore and the other in Bhubaneswar, They believe this “futuristic idea” will lead to the home finance company eventually spinning off its care home business into a listed body as early as 2014.

“We expect to make the care homes business a fully listed body in coming three to five years,” CEO of LIC Housing finance said. LIC H.F., promoted by the country’s largest insurer, the LIC of India, is looking for an existence in up to 07 cities, which it says are more “friendly to the senior citizens” and also can get land at discounted rates. The company lately finished a 98-unit project and a bigger 200-unit project in Bangalore and Bhubaneswar respectivly.

Presently the organisation is in the process of acquiring land in Jaipur, Haridwar and Goa. “More cities such as Nagpur and Pune which have historically been friendly to the retired people will be looked at.” India has 65 % of its people aged between 15 and 64 years, so the business model might find many takers. Retirement homes are built in a community format with modern amenities including gymnasium & club houses, music rooms and auditoriums. These projects also come with a house-help which is offered by the developers or owners themselves.

An Apartment in Mumbai goes for Rs 20 crore and Rs 61.5 crore in Delhi

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MUMBAI

An apartment, measuring approx. 3000 sqft, recently was dealt for about Rupees 20 crore on Carmichael Road. This large apartment has a huge entrance lobby, living room with an adjoining dining area and a separate study room. The master bedroom has an en suit bathroom with a walk-in closet and beautiful sea views. The apartment has separate servant’s quarters and a covered and an open car parking. The building is equipped with amenities like a garden, pool table and a gym . Carmichael Road is one of the most posh localities of Mumbai with several oldstyle bungalows and apartment buildings.

PUNE

Lately, a 3-BHK apartment was sold at a price of Rupees 44,33,000 in Rich Woods, a new project by Rama Developers in Chikhli in the city. The price included of the car parking charges . Rich Woods is a project of 180 large 2 & 3 BHK apartments in 07 imposing towers with high-tech amenities and facilities. Chikhli is directly accessible from the Nashik highway and has great connectivity to the Pimpri Chinchwad area. This Group has made its mark in the city with two well executed projects to its credit. The base rates are being quoted at  3,100 per sqft, while the general residential rates in the area range between Rs 2,600 per sqft and Rs 3,100 per sqft. Chikhli area has grown as a feasible residential locality. It has become a perfect option for investors as well as ultimate users.

DELHI

In a latest deal in Delhi , a 600 square yard plot was dealt at a range of Rupees 61.5 crore. This old Ground+01 property is located in Shanti Niketan which is  a rich residential micromarket in South Delhi. The property has been purchased by a well-known builder in NCR for redevelopment. The builder plans to build a Ground+3 storied structure and construction activity will start soon. The builder has already started marketing the project . The first floor is been quoted for Rs 20 crore, the second floor for Rupees 20.5 crore, and the third floor for Rs 21 crore. The project commands a premium in terms of price, due to its South Delhi location which is well connected to all the major business complexes in the NCR and most of the foreign embassies are in the neighbourhood in the location.