Tag Archives: Surat

Income Tax Raided 6 Builders; Around Rs.100 Cr Will Be Recovered

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Income Tax department’s investigation wing conducted raids on some realty players of Surat. From them, the department seized Rs.8 lakh in cash and jewelry worth nearly Rs.45 lakhs.
Income Tax Raided real estate builders

Income Tax Raid on Real Estate Builders: Hopes to recover Rs.100 Cr.

Last month Income Tax department conducted raids on six major real estate developers of Surat. The department seized Rs.8 lakh in cash and jewelry worth nearly Rs.45 lakhs from their bank lockers.

The latest Income Tax operation is one of the biggest operations in the recent period. More than Rs.92 Cr was recovered by the income tax department. The operation included some six major real estate developers and two leading advocates of the city. Continue reading →

Surat: Real Estate experiences 100% growth in 2 yrs.

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Realty glitters in the diamond city. Real estate sector has witnessed a 100 per cent growth in the past two years, aided by a number of factors like vertical development, business opportunities and influx of people from other places.

Om Ahuja, CEO-residential services, Jones Lang LaSalle (JLL) India, said, “In cities like Surat, the growth is directly related to increased income of people. High income has also spawned more nuclear families.”

Chairman CREDAI, Surat, Tarun Rawal said, “On-going development of mass transport infrastructure and planned town planning schemes in the city has given confidence to people to go to faraway places to live. Hence, small sector projects – 1,500 sq ft houses – have gained a foothold in the city.”

Surat was the only city where people used to buy and sell properties without documents, but now awareness is growing. “Now small units have started to come up in huge numbers,” said Harshil Daliwala of SNS Builders.

The city is estimated to be spread over in an area of 326 sq km. It could further expand by another 200 sq km. “There is a plan to convert Surat-Navsari into twin cities which will together have a population of 1.15 crore people,” Surat Municipal Corporation’s director of planning Jivan Patel said.

Realty Big Players Attracted Towards Small Cities for Expansion

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NEW DELHI: Growing demand for homes in smaller cities of the country is attracting real estate biggies. Cities like Bhopal, Bhubaneswar, Coimbatore, Indore, Jaipur, Lucknow , Nagpur, Surat , Vadodara and Visakhapatnam are estimated to add 354 million sq ft of residential development in the coming 03 years. According to a research, large builders like DLF , Unitech , Parsvnath , Omaxe , Ansals and Emaar MGF have already diversified into these cities. These cities today show huge potential for growth. These cities are attracting the big developers because of their considerable price stability and growth prospects. With economic activity picking up in these cities, there is a growing migration from smaller areas, which has created a shift towards an apartment culture. This shift will foster volumes for larger developers in the future.

Looking at this new demand, banks and financial institutions are also looking towards these cities to bridge the financial saturation gap.The growth prospects in the smaller cities are fascinating huge developers with multi-city existance.

Truth Behind Declining Realty

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Pranab Mukherjee

FINANCE MINISTER MR.PRANAB MUKHERJEE


Few days after the budget is announced the Realty Industry started showing discontent in concern with the service tax policy announced by the union finance minister, Pranab Mukherjee. The Confederation of Real Estate Developers’ Association of India (CREDAI) with the Surat Builders association wrote a letter dated March 5 to the finance minister, Pranab Mukherjee asking to withdraw service tax imposed on sales and renting of commercial and residential spaces.

In the letter to the Centre, the association has also said that a inclusive action plan for urban housing is necessary as there is a shortage of 27 million houses in the country presently.
President of Surat Builders’ Association and the vice-president of Gujarat chapter of CREDAI Tarun Rawal said that if we look at the population explosion in the city the figure has gone up to 46 lacs very fast but there is a shortage of about 5 lacs shelters in the city itself. He added that the need for sustainable housing in most of the big cities is huge and to fulfill that we must have a central policy and plan to guide it.

The association compels the Union finance minister to look into the matter of service tax imposed on housing sector as the sector is crucial for growth to create affordable housing. Slum re-development and integrated township incentives are also required. “Only if this is provided the sector will be able to fulfill the need of a growing nation,” said Rawal.

It is argued by real estate developers that the imposition of service tax will eventually make buying houses more difficult for the middle and lower classes. Similarly, service tax on rented property will adversely affect sectors like IT sector since they are already showing declining trend when the US restrictions have affected them.

What the finance minister decides is what should be looked for now.