Indian govt again issues land acquisition order

 [NEW DELHI] The Indian government has issued an executive order for the third time to make it easier to buy farmland for large projects after failing to win parliamentary for a controversial land bill championed by Prime Minister Narendra Modi.
The ordinance was approved at a Cabinet meeting on Saturday chaired by Mr Modi. It will replace an existing ordinance that implemented the bill pending parliamentary approval, and needs the president's signature to take effect. "The land ordinance has been cleared again by the cabinet to maintain continuity and we will ensure that farmers don't face hardship on compensation," Cabinet minister Ravishankar Prasad told reporters after the meeting.

Making it easier for investors to buy land has been a key focus of the Modi government's reform efforts. He first passed a decree last December to ease land acquisition rules that require the consent of 80 per cent landowners for a deal to happen.
Lawmakers in the upper house of the parliament, led by the opposition Congress party, have repeatedly blocked the bill which they say is anti-farmer. Mr Modi's nationalist government lacks a majority in the second chamber.

To build consensus over the bill, the government has introduced several amendments and formed a parliamentary committee to examine compensation clauses and resettlement of farmers.
Billions of dollars of investment in industrial projects across India are tied up due to conflicts between farmers and companies trying to buy land across India.
But farmers have criticised Mr Modi's government for eyeing their land at time when unseasonal rains have damaged the crops.

SOURCE: THE BUSINESS TIMES

Is Indian real estate set to change forever?

These have been turbulent times for the Indian real estate industry. Or the calm before the storm if you will.

In the last two to three weeks, I have witnessed many incidents that will have a direct bearing on the real estate industry. The National Green Tribunal's ruling that the vast amount of construction along the Noida Expressway is contributing to pollution is promising. Despite the fact that the fortune of thousands of home buyers is impacted, it was critical that there is some statutory check on the unruly building practices. The leniency in giving them time to correct themselves is extremely positive.

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That India is facing a 22.7 million units housing shortage and trying to cover the gap in just seven years by 2022 is ambitious. However, without stringent controls the entire country would face the type of pollution that the NCR is facing. For a healthy and prosperous India where there is adequate shelter to house all its citizens, these checks are critical. Else healthcare costs rising due to rampant pollution would be the price to pay.

Another policy move that warmed the cockles of my heart was the stricture given to the banks by the Governor of the Reserve Bank of India, Raghuram Rajan. In no uncertain terms, he told the country and the banking community that there would be no sops if the benefits of basis point cuts are not passed on to the consumers. Within hours of this chiding, three leading banks have dropped interest rates on home loans. Many others have followed.

Many consumer surveys on Magicbricks tell us that rising home loan interest rates is one of the critical factors for deteriorating consumer sentiment. Many feel if they take a loan on higher rates the new benefits do not flow to all.

However, in an ideal situation, a home loan consumer should be able to take a floating rate of interest and rest assured that the benefits of falling rates will come to him or her too. That has not happened for a while and only new consumers get the special benefits of lower rates. After years of being taken for granted the consumer prefers to err on the side of caution. That is not good for the industry or the consumer. The small cuts in interest rates and the RBI Governor's tough stance show a tilt towards the day of the consumer. Will the buyer shed his inhibitions and start negotiating? 

SOURCE: THE ECONOMIC TIMES

Know the hidden costs when buying a property

Buying a piece of land or a house for the family is one of the most cherished dreams for most of the people. Investment in property is often seen as a significant investment for a lifetime. Therefore, the home buyers, generally, are willing to go that extra mile to acquire a decent piece of real estate.

Since, real estate the biggest investment that the average person takes up, in most of the cases, people generally reach the upper scale of the limit of their financial budget while selecting a property to buy.

Hiddend costs, therefore, are one such expenditures that take many home buyers by surprise. These hideen costs often escalate the total cost and makes it very difficult for the person to handle the expenses.

The initial costs as described by the real estate agent does not include a host of add-ons which one has to pay for ultimately raising the budget by almost 25 per cent. It is smarter to be aware of and be prepared for this additional expenditure that will come your way when buying real estate.

SOURCE: Magicbricks.com

Raman tells builders to give buyers flats

Scores of homebuyers in Greater Noida (west) conveyed their grievances to Rama Raman, the chairperson and CEO of Greater Noida Authority, on Wednesday.

Following the meeting, Raman asked the developers in question to resolve all buyers' grievances at the earliest and start giving them possession of the flats.

Nearly 1.5 lakh buyers in Greater Noida (west) have been waiting for their flats for more than four years. Their dreams were put on hold after the row over land acquisition broke out in 2011. Nearly two weeks ago, the SC upheld land acquisition by the Greater Noida and Noida Authorities between 2006 and 2009, bringing relief to thousands of homebuyers who had invested in the area.

"We have asked the developers, who are members of CREDAI (Confederation of Real Estate Developers Association of India), to speed up their projects and resolve issues related to late delivery, unjustified penalties, changes in layout plans, high interest on late payments, stalled possession, withdrawal of buyer from project, among others," Raman said.

Raman assured the homebuyers of his support and "We will do our best to help resolve the issues and in making sure all developers follow ethical practices," he said.

"We met the buyers and have heard their issues. We hope to mitigate some of their complaints," Manoj Gaur, president of CREDAI NCR, said. 

Source: The Times Of India

Real estate industry needs to be ethical: Chartered surveyors

The Royal Institution of Chartered Surveyors (RICS) on Thursday said the real estate industry in India will have to be "ethical at the heart of doing everything" to help the country prepare for unprecedented global changes.

At a conference here on Thursday, experts from the RICS said there were six action areas which hold the key for the industry.

The areas were winning the war of talent, being ethical at the heart of doing everything, creating successful and sustainable future cities, embracing technology and big data, helping the surveying profession take new opportunities and developing strong leadership.

The RICS recommended these six key areas in a report titled "Our changing world: Let's be ready" released at the conference "Indian Real Estate: For Future", which was attended by over 300 real estate professionals from Asia, North America, South America, Europe and Africa.

The report said social and economic changes unfolding in the world demand new skills, business models and responses from India to meet the challenges of the real estate industry in the next 15 years.

"India is on a cusp of change with several initiatives announced by the government. The Indian real estate sector has been growing at a rapid pace and smart cities, technology and right talent can really help India tide over its housing shortage," said RICS global president Louise Brooke-Smith.

Devina Ghildial, South Asia managing director for RICS, said the report "calls for a collaborative effort by individuals, governments and companies to come together and achieve our country-specific goals especially in providing housing for all".

RICS CEO Sean Tompkins said the report aims to identify the implications of rapid change for the built environment sector and aims to stimulate debate among practitioners in this sector and beyond.
RICS promotes standards and qualifications in the development and management of land, real estate, construction and infrastructure.

Source: Business Standard

DMRC diversifying into building offices, complexes

With a target of Rs 2,505 crore, the Delhi Metro Rail Corporation (DMRC) is in a race to generate revenue to fund the phase III of the Delhi Metro network. Now, from building Metro tracks, it is diversifying into building offices and commercial complexes as well as residential projects. "We expect to generate around Rs 1,000 crore from six projects that we are undertaking this year," said S D Sharma, director of property development in Delhi Metro.

The urgency to make money-spinners stems from the Delhi Metro's inability to raise adequate funds in the previous phases. Till 2012, it had raised only Rs 230 crore—a massive shortfall.

The Delhi Metro's phase III target is Rs 1,568 crore, said Sharma, to which has been added the shortfall of Rs 891 crore from the previous phases. If Delhi Metro doesn't raise this revenue, the shortfall will have to be arranged from the Centre and Delhi government.

At present, it is banking on six projects to bail out the Delhi Metro. The projects are in Janakpuri, Jantar Mantar, Bhikaji Cama Place, Jasola, Malviya Nagar and Parmeshwari Wala Bagh. The three projects that are expected to come through this year itself are Jantar Mantar—where an office complex is being constructed by the Delhi Metro located right next to the monument, Janakpuri —where a 1.12 hectare residential project will come up, and another office complex at Bhikaji Cama Place. "The project at Jantar Mantar has already been cleared by both the National Monuments Authority and the Delhi Urban Art Commission. We are now awaiting NDMC approval," the Delhi Metro official added.

The residential project in Janakpuri is also going to take off this year. Spread over 14,405 sq m, the construction will be undertaken by the Delhi Metro and offer a lease of 30 years. "It will most likely be targeted at PSUs as the lease period granted is only 30 years as per the rules governing the Delhi Metro," said Sharma. The Bhikaji Cama Place project, meanwhile, is also expected to get a good response, said the official. The rest of the projects are all commercial projects, said Sharma and earmarked for "early 2016".

The Delhi Metro has been trying to make its property development viable for some time now. As part of the fund structure, the DMRC is supposed to generate Rs 1,568 crore towards phase III. However, it has not been able to get any of its property development projects off the ground for quite some time.

Source: Magicbricks.com

Noida homebuyers plan protest march

NEW DELHI: Buyers awaiting delivery of homes in Noida for over a year are planning a protest march besides seeking another meeting with union environment minister Prakash Javadekar to push for the final notification on the boundary of the eco-sensitive zone (ESZ) around the Okhla Bird Sanctuary near Delhi.

The National Green Tribunal had more than a year and a half ago forbidden the Noida Authority from giving completion certificates to those projects that fall within a 10 kilometre radius of the sanctuary near Noida.

While it was decided last year to redesignate the ESZ around the sanctuary and the environment ministry had put out a draft notification to bring down the zone to 100 metres on three sides where several real estate projects were impacted, a final notification is still awaited.   

As a result, about 50,000 buyers whose homes are ready cannot be given official possession by builders and the homes cannot be registered. Unofficially though, many builders have started giving possession to buyers. Earlier this month, at a meeting with homebuyers from about 30 real estate projects in Noida who have come under a joint banner of NCR Home Buyers Group, Javadekar had promised speedy action.
 
"We were told that he would finalise the notification in three days. It has now been three weeks but there is no update," said Markandey Mishra, one of the founding members of the group. Mishra said that the group even approached Noida MP Mahesh Sharma, who also assured them of quick response.

The buyers are turning impatient, though, as they have been waiting for their homes for over a year. According to estimates, the long delay has cost over Rs 2,000 crore to buyers as well as builders as most homebuyers have been shelling out EMIs even as they await possession, and builders have had to hold sold inventory and keep paying interest on their borrowings. "We are now planning a candle march in Noida soon with about 1,000 affected people," said Mishra.

Source: The Economic Times