UP Govt focus on new technology for Community Housing Projects

LUCKNOW: Uttar Pradesh chief minister, Akhilesh Yadav has said that the state government has taken a decision to form an inter-departmental committee for community housing projects to assimilate new technology, in consonance to the recommendations made by the Building Materials and Technology Promotion Council. This committee would be formed from the executing agencies and departments related to building construction.

The chief minister highlighted these points in a letter written to the Union Urban Development, Housing and Parliamentary Affaires Minster, M. Venkaiah Naidu. The chief minister has also emphasised on how the inter-departmental committee would review and inspect buildings in various states with regards to the Council's recommendations on technology.

The committee would also give its recommendations with regards to assimilation of techniques in building and construction related departments, development authorities and Housing and Development Board. Yadav instructed various development authorities and the Housing and Development Board to get EWS (economically weaker sections) and LIG (lower income group) houses constructed on priority. The committee, with this in mind, would also review on whether the new technologies were more cost-effective than the conventional methods of construction or not.

Based on the recommendations of the committee the state government would take a decision as warranted, which would then be implemented by all agencies involved in building and construction and the private builders. It may be noted here that the Union Minister had written to the UP Chief Minister with regards to assimilation and adoption of new technologies as recommended by the Council.

IIPA 2015: Nominations Opening Soon

Nominations are opening soon for the biggest event in India Real Estate sector.
IIPA awards 2015 will be the most marketed event along with Trust & Credibility. Once Nominated Developers/Organisations/Projects will be subjected to the 1st qualifying round: Online Polling!!
Where '1.5crore' people will be invited to vote for their own favourite!!
With this IIPA 2015 will be India's First People's Choice Award!
But this is not the end. The qualifiers from this round will be subjected to two more rounds!!. Watch this space for more info!!

State will develop Gurgaon into smartest city: Khattar

With Gurgaon having failed to find a place among the top two cities that would represent Haryana in the Centre's 'Smart City Challenge', chief minister Manohar Lal Khattar on Wednesday said the state government will develop Gurgaon as the "smartest city" on its own. 

"Gurgaon is already a smart city and the state government will develop it as the smartest city," Khattar said, while addressing the NASSCOM Product Conclave in Gurgaon. The chief minister cited non-inclusion in the Jawaharlal Nehru National Urban Renewal Mission (JNNURM) scheme, which carries 20 marks, as one of the main reasons why Gurgaon did not make it to the list. However, when he was informed that Karnal, his hometown, is also not included in JNNURM scheme, and yet made it to the smart cities' list, Khattar did not have an answer. 

"The proposal is final and we have selected Faridabad and Karnal as the two cities that will participate in the smart city race. These two have been selected purely on their scorecard. While Faridabad has secured 90 out of 100 points, Karnal has got 87.5 marks. Gurgaon scored 80 points and has not been included in the list. We will submit the proposal to the Centre by Thursday," said a senior official in Chandigarh. 

Sources said in response to this, Union minister of state (defence) and Gurgaon MP Rao Inderjit Singh has written to the chief minister to review the government's decision on selecting Faridabad and Karnal for the Smart City Challenge, and consider Gurgaon instead. "I strongly feel that Gurgaon is the most suited city for inclusion in the scheme. Its closeness to the national capital and international airport has given the much-needed impetus for expansion of the city as economic hub," Singh wrote to CM. 

He added, "The MCG has already submitted their resolution and other feedback and details, to the state government. It is understood that few marks could not be added to the Gurgaon city because of the correct picture presented by MCG where they have shown the operational and maintenance cost of water supply is 23% whereas other cities showed recovering full cost which may not be the correct picture." 

Singh has requested Khattar to review the entire issue after due verification of statements given by all municipal corporations, considered for the challenge, and then submit recommendations to the Union government. 

SOURCE: THE TIMES OF INDIA

Parliament: Panel to table report on real estate Bill today

The select committee of Rajya Sabha is expected to table its report on the real estate Bill — The Real Estate (Regulation and Development) Bill, 2013 — on the floor of the House Thursday.

One of the major consumer protection measures proposed by the 21-member committee, headed by BJP MP Anil Madhav Dave, is the mandatory condition that developers have to deposit 50 per cent or more of the home buyers’MONEY in a bank which shall be released according to the progress of the construction work.

Earlier, the NDA government had reduced it to 50 per cent or less and allowed the state governments to lower the amount further.

Members from the AIADMK and Samajwadi Party had reportedly protested against the panel’s recommendation on the grounds that states should be given the liberty to decide if they want to allow lower the percentage. Members from the Congress, however, have given a dissent note proposing the said percentage be increased to 70. 

The panel has based its report after going through a detailed representation from consumer groups and residents’ associations that have asked for 100 per cent of the sale proceeds be kept aside only for construction work. The developers’ associations, on the other hand, had asked the sum to be reduced to as low as 30 per cent.

The Congress members have also demanded that the regulatory law be made applicable to all realty projects without making any exceptions. The panel has recommended inclusion of smaller-sized projects under the ambit of the regulatory authority but it has restricted it to plots larger than 500 sq m or with eight apartments or more.

SOURCE: THE INDIAN EXPRESS

Govt may meet on new circle rates after objections to hike

In the backdrop of a prolonged slump in the real estate sector, the Gautam Budh Nagar administration has received nearly two dozen objections against the latest hike in circle rates for selling and purchasing property, mostly in the commercial and group housing categories.

The UP stamps and registration department on Tuesday said it would soon meet the district magistrate to explore a revision in the new circle rates, which are to be enforced from August 1.

SK Singh, assistant inspector general of UP stamps and registration department, told TOI that the complaints in the group housing category is against 5% extra charge for each extra facility, such as swimming pool, club, etc, with an aggregate cap of 25%. Some have complained that the new circles rates are unrealistic.

"We will hold a meeting with the Gautam Budh Nagar district magistrate to address the objections. The DM, however, is reluctant to reduce the circle rates in the group housing category," he said.

Notably, the new circle rates have brought a sigh of relief to thousand of homebuyers, particularly those whose flats fall within the 10km radius of the Okhla Bird Sanctuary. However, housing plots and group housing plots in Noida are to get costlier by 5%.

"Some residents have welcomed the move not to hike the circle rates in group housing category, while at the same time some residents have lodged their objections against the 5% extra charge for each extra facility," Singh said.

He added, "Some residents feel that in some sectors in Greater Noida, the circle rates are higher than the prevailingMARKET rates. Especially in Chi, Pi, Zeta, Sigma and Eta sectors, circle rates are higher than the prevailingMARKET rates. In many sectors, the circle rates are Rs 27,000 per sq m However, the market rates is between Rs 20,000 and Rs 25,000."

Singh said the department would take up all these issues with the Gautam Budh Nagar district magistrate before August 1. "We have received some signals from the DM that he is not interested in slashing the rates in the group housing category. He has already given relief to flat buyers. We have keep the revenue target in mind as well."

SOURCE: THE TIMES OF INDIA

After hike, circle rates climb over market price

With the new circle rates announced recently, group housing residents of some Noida and Greater Noida sectors have complained they are unrealistic, saying the new rates are even higher than open MARKET rates, and urging the administration to slash them. The administration agreed to review their plea after the state stamps and registration department admitted some rates were indeed unrealistic.

Group housing residents thanked the UP government and the district administration for not hiking circle rates this year ? a huge relief for buyers of projects falling within 10km radius of Okhla Bird Sanctuary. Stand-alone and group housing plots in Noida, though, will become costlier by 5%.

They, however, lodged a plea with the Gautam Budh Nagar district magistrate to slash circle rates in group housing, in which the registry department charges 5% extra for each extra facility, such as swimming pool, club, etc, with an aggregate cap of 25%. "If group housing circle rate is Rs 55,000 per sq m, buyers end up paying Rs 67,500 per sq m (25% extra) for enjoying five or more extra facilities. "This was unjustified. We proposed that charges for extra facilities be curtailed, and slashing of rates in the commercial category by at least 10%," said a senior stamp and registration department official.

 " The department lists these facilities as luxury in group housing, but does not charge people who have such facilities on their freehold propertyfor the same . Today, these are considered basic needs, and these charges should be curtailed," said a resident.According to a real state expert, circle rates are anyway higher than prevailingMARKET rates in various Greater Noida sectors.

 "In many Greater Noida sectors like Chi, Pi, Zeta, Sigma and Eta, circle rates, at Rs 27,000 per sq m, are higher then market rates, which is between Rs 20,000 and Rs 25,000," said UVS Bhati, a real estate expert.

He added, "As a result, buyers have to pay registration rates based on circle rates, even though the property value is less than the circle rate. While buyers pay higher registration fees, their property lacks market value. Moreover, by paying higher registration rates, they come under the notice of the income tax department, so buyers are maintaining a distance from such deals," he added. Category D, which covers sectors 63A, 86, 106, 109, 112, 113, 116, 117 and 118 has registered a 5.47% hike, followed by Category A with 5.23%, covering posh sectors like 14, 14A, 15A, 17, 30, 35, 36, 39, 44, 50, 51 and 52. There is no hike in the economical Category E, covering sectors 66, 102, 115, 136, 141, 158 and 162, ostensibly to raise population density.

Sector 18 and 38A, with commercial plots categorised by plot size, saw a hike in circle rates this year. Rates for plots measuring up to 100 sqmts were raised by 19.36%, while plots between 100-1,000 sqm saw a 20% raise. Last year, the department raised circle rates by up to 30%, despite opposition. This year, Greater Noida Industrial Development Authority has announced a flat 10.21% hike in allotment price across all categories of land.

In recent years, unrealistic MARKETS rates have also hampered the stamp and registration department's targets. In response, the department proposed a reduction in circle rates in some residential and commercial categories. "Due to the steep hike, we're finding it difficult to achieve revenue targets, especially in group housing and commercial categories," said a senior UP stamps and registry official on condition of anonymity. According to assistant inspector general S K Singh, the department's 2014-15 revenue target for GB Nagar was Rs 1,695 crore. "The department achieved only Rs 300 crore, which should have been Rs 500 crore as per the recovery target," Singh said. The 2015-16 target has been fixed at Rs 1,875 crore.

SOURCE: Magicbricks.com

Saya Group raises Rs 200 crore from Edelweiss

New Delhi: Realty firm Saya Group today said that it has raised Rs 200 crore from private equity firm Edelweiss to finance its group housing project Saya Homes.

The group is developing multiple housing projects in the NCR region with its prime focus on Indirapuram and Noida/Greater Noida West.

"we have received an investment of Rs 200 crore from Edelweiss for our projects. We were in talks with Edelweiss for sometime now and the fund has finally been raised which will ensure quality products from Saya Group," said Mr Manoj Jain, Director-Finance of the realty firm.

"Our organisation is developing over 24lac sq ft in Indirapuram and approx 11lac sq ft in  Greater Noida West. We have already delivered approximately 10 lac sq ft in Indirapuram in our two projects. With this new development we are looking forward for a brighter future," says Mr Vikas Bhasin, MD of Saya Group.

The realty firm also disclosed that they won't be raising anymore fund as the financial closures are over for current projects. The group is now focusing on execution of current projects in order to ensure timely delivery of their under construction projects.

The realty firm believes that with such funding, people will instill faith in projects being developed in this part of region which otherwise has been undergoing a lot of turmoil. This will also help identify the performers who have a vision and who will deliver.

Thanks to 'Make in India', Turner expects 25% sales from here by 2018

Global consultancy and project management firm Turner is eyeing nearly 25% of its total sales from India operations in the next 3 years.

"In India, the concept of project management has still not penetrated in the real estate and related sectors. But with the 'Make in India' and digitalization programmes, the sector players are seriously considering the concept and we are getting many proposals," Turner Project Management India Managing Director Jairam Panch told PTI here.

"With our presence growing, I expect India to contribute nearly 25% of total sales," he added. At present, India's share in its total sales is nearly 15%.

Turner, which entered India in 2007, is currently managing nearly 14 million square feet of projects by developers like Piramal Realty, Hirco, DLF, Tata Housing, Reliance, Neptune Orbit Corporation, Lodha, Sofitel among others.

It is also assisting the Gujarat government in building the 182-metre-tall statue of Sardar Vallabhbhai Patel - Statue of Unity.

He said, due to the 'Make in India' programme, not only domestic but foreign firms also want to set up manufacturing facilities here.

"With our competency in building projects, we see this as a huge growth opportunity. Considering the opportunity, we expect to manage up to 25 million square feet in the next three years," Panch said.

The company not only wants to strengthen its presence in India but also develop it as a hub for its Asian operations, he said.

Panch further added the company also wants to double its head count over the period from 150 to over 300.

"We want to improve our competency and so we will be focusing on innovation and adding the right management team. We will also be working on spreading awareness about importance of project management today," he added.

Turner currently has presence in MARKETS like Hyderabad, Chennai, Gujarat, New Delhi and Mumbai and will add Bengaluru this fiscal.

Adopt modern technology for providing housing for all: Government

The government today asked real estate developers to adopt modern construction technologies to boost housing supply. 

Addressing an event organised by realtors' body NAREDCO, Housing and Urban Poverty Alleviation Secretary Nandita Chatterjee stressed on the need for improvement in construction technologies to implement the scheme 'Housing for All' by 2022. 

"An enormous number of houses to the tune of about 20 million will be required to be constructed by 2022. Hence, we will need innovative fast-track construction technologies through judicious selection and evaluation of globally acceptable contemporary technologies," she was quoted as saying in a statement issued by NAREDCO. 

Chatterjee stressed the need to reduce dependence on conventional energy-intensive construction practices thereby containing ever depleting natural resources. 

In line with the government's strategy to use cost effective technologies for building houses, the ministry has entered into MoUs with premiere Indian institutes like Indian Institutes of Technology (IIT) and School of Planning and Architecture. 

Speaking on the occasion, NAREDCO Chairman Navin Raheja said: "Emerging technologies, materials, and products will play a crucial role in delivering affordable housing as targeted by Housing for All by 2022 mission." 

"It is high time that in addition to talking about land,FINANCE and policy/regulation we also bring technology and delivery capability into our discussion," he added.

37C Gurgaon: Affordable and well-connected

Sector 37C of Gurgaon is fast emerging as one of the most promising residential development hubs in Gurgaon with affordability, road connectivity, location, and handsome appreciation being its USPs. Ravi Kumar Mangalam writes

Sector 37C, Gurgaon, is developing as an attractive residential hub being minutes away from Hero Honda Chowk and in close proximity to major highways like NH-8 and the forthcoming Dwarka Expressway, which offer smooth connectivity to prime areas of Gurgaon and Delhi.

Realty watchers say that Sector 37C is one of the most affordable sectors of Gurgaon, as property prices here are within reach of the average salaried class and the professionals. Considering its strategic location and prospects of appreciation, 2BHKs are available, on average, for Rs 62 lakh while 3BHKs have an average price tag of Rs 86 lakh. In comparison, a 2BHK unit can cost, on average, over Rs 1 crore, in most parts of Gurgaon.

Residential property prices on Sohna Road are around Rs 8,000 per sq ft, on average, while Sector 37C, which is in close proximity to this area, has all-inclusive residential property prices at Rs 4,950 per sq ft on average.

The area has good connectivity with external roads and inter-sector roads with the development of multiple 60metre-wide roads and 24-metre-wide roads.

Also, as Sector 37C comes under the jurisdiction of Municipal Corporation of Gurgaon (MCG), residents here can enjoy all the government and municipal facilities like good street lights, running water, 24-hour electricity, local transportation, sewage system, etc.

The big news for the sector is the clearance of all major legal hurdles in the completion of Dwarka Expressway. The 18km-long highway will serve as an alternative link between Gurgaon and Delhi and is expected to ease traffic on the existing expressway. Also, the construction of Hero Honda Chowk Flyover--a major route from NH-8 to Sector 37C--is progressing at a fast pace. The third major road here, Pataudi Road, has been converted into a national highway, which means that it would be widened and upgraded accordingly.

Many reputed developers have launched attractive payment plans and price options to make the area affordable and within reach of the average homebuyer, when compared to the surrounding districts.

International Land Developers (ILD) has multipleREAL ESTATE developments--ILD Grand, ILD Greens, etc--in the area. Both the projects offer premium 2BHK and 3BHK residences, duplex units, and penthouses.

Prashant Kalia, head of Sales &MARKETING of ILD Group, says: “To provide quality residential apartments to homebuyers in Sector 37C, we have introduced all-inclusive prices with flexible-payment options in our projects, making them more attractive for the end users and investors.

“We have seen an increasing trend in sales with the support of all our active channel partners. Today's buyer takes time to decide and check all the relevant details before finalizing the location and project and it is easy to see that this sector offers housing units at very competitive prices compared to adjacent areas like Sohna Road. It's the best time toINVEST here, as we anticipate prices to go up soon with the development of 24-metre-wide and 60metre-wide roads adjoining our projects.“

International Land Developers was founded in 2006 by Alimuddin Rafi Ahmed, after two decades of land aggregation experience in the Delhi NCR.

The diversified ILD Group is currently implementing residential, commercial, and retail projects in Delhi, Gurgaon, and other parts of the NCR.

ILD has already built a 200-acre industrial township in Manesar and ILDTRADE Centre, a bustling business address, on Sohna Road. 

Source: Times property, The Times of India, Delhi/NCR

Land Bill: Govt may allow states consent clause flexibility

Seeking to placate the Opposition on the vexed land acquisition bill, the Centre may include a fresh section in it to allow state governments to have the provision of a consent clause and social impact assessment while implementing the law.

Sources in the government said on Wednesday that inclusion of a fresh clause through an official amendment is one of the various options being weighed.

According to the proposal, if some states want to have social impact assessment and seek consent from farmers before acquiring their land, they will be free to do so.

Faced with a stalemate on the controversial land bill, the Union Cabinet had last night discussed the issue amid suggestions that government may tweak some of its provisions to make it palatable to the Opposition.

There are indications that Government plans to bring some official amendments to the vexed bill, in order to take the Opposition on board.

Several states have opposed the "dilution" of provisions of the original Land Acquisition Act of 2013 regarding the consent of farmers and exemption from social impact assessment (SIA).

Another option before the government is to re-introduce the consent clause with certain dilutions and having social impact assessment in some other form.

The discussion in the Cabinet came a day after Prime Minister Narendra Modi had expressed agreement with the remarks of SP leader Ram Gopal Yadav that since there is no consensus on the issue, both government and opposition should make some adjustments to resolve the issue.

Referring to the protracted issue, Yadav had said on Monday in an all-party meeting that both the government and the opposition should collectively endeavor adopting a give and take approach to find a solution.

The Joint Committee of Parliament examining the controversial land acquisition bill was today given an extension till the first week of August to submit its report. The Committee was originally mandated to table its report on Tuesday - on the first day of the Monsoon session.

The bill to amend the Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Act of 2013 has got stuck because of opposition by various parties. Congress, led by Rahul Gandhi, is aggressively campaigning against it.

 While the 2013 law required the consent of 80 per cent of land-owners to be obtained for private projects and that of 70 per cent for PPP ones, the present Bill exempts five categories from this provision - defence, rural infrastructure, affordable housing, industrial corridors and infrastructure projects, including public-private partnership (PPP) projects where the government owns the land.

 The 2013 Act also required that a social impact assessment be conducted to identify affected families and calculate the social impact when land is acquired. This provision has been done away with.

Out of 672 representations that the committee received, 670 have opposed the amendments being brought by the NDA government in the land bill, particularly dropping the consent clause and social impact survey. So far, 52 representatives have also appeared before the committee.

At least three of BJP's allies - Shiv Sena, Shiromani Akali Dal (SAD) and Swabhimani Paksha besides a number of farmer and labour organisations attached with RSS like Swadeshi Jagaran Manch, Bhartiya Kisan Sangh, Bhartiya Mazdoor Sangh and Akhil Bhartiya Vanvasi Kalyan Ashram red-flagged a number of provisions of the proposed legislation including removal of provisions of consent clause and social impact assessment (SIA).

Govt committed to a balanced Real Estate Bill protecting both the consumers and the developers

The Indian Government is fully committed and working in a direction to ensure that the newREAL ESTATE(Development and Regulation) Bill protects the interests of the real estate industry and safeguards the interests of the house buyersas well, informed Mr Rajiv Ranjan Mishra, Joint Secretary, Ministry of Housing & Urban Poverty Alleviation (HUPA Ministry), while addressing the 11th CII Realty 2015, a flagship event on real estate organised by Confederation of Indian Industry (CII).

We are in consultations with all key stakeholders like the developers, builders, retail buyers, the state governments, other related ministries, and other parties as well to work out solution on a few regulations in the bill, he added.

A Balanced bill that protects both the buyers and the sellers would certainly act as a game changer for theREAL ESTATE industry which is presently passing through a tough phase because it would reinforce the confidence of variousFINANCIAL institutions, banks and foreign investors in Indian realty sector. This would help solve the big fund crunch that the sector is facing. Further it is also expected to boost the retail demand if the consumer feels more secure of the timely possession and effective delivery of other services, opined Mr Mishra.

On speeding up the approvals process which is one of the biggest bottlenecks in the real estate sector, he shared that We have convened a committee with key representatives of different related ministries like the environment, forests and Climate Change,FINANCE, Defence, Urban Development, civil aviation, labour, power, cultural and consumer affairs etc to streamline the approval process".

"The members would meet regularly and next meeting is on 30th July to be chaired by Mr M Venkaiah Naidu, Housing and Urban Poverty Alleviation (HUPA) Minister. The minister would draw a roadmap with all ministries concerned to make concerted efforts to facilitate ease of doing business in Indian real estate sector by fast tracking of approval procedures especially for the affordable housing projects, he informed.

We have requested different ministries and states to identify and clearly notify the areas where construction or development is permissible and where it is not and hence create land banks, so that the realtors are not harassed later on to get the approvals. It is estimated that simpler and uniform processes would lead to a 20-30 percent decrease in the cost per unit, he informed.

We have requested the Ministry of finance and RBI on many occasions and finally it has agreed to the long pending demand of both the industry and the Ministry of HUPA to include affordable housing in the 'Infrastructure' sector category. Hence the affordable housing developers would be able to avail key financial incentives, regulatory and procedural benefits which are available to the infrastructure sector. But for now, the ministry is concentrated on the passage of the bill, he shared.

It is also imperative that some regulatory permissions and procedural approvals are delegated to the state governments so as to simplify the procedures. We are also working with the states to come up with a model Affordablehousing policy and would notify the same soon, he announced.

Some of the projects under it would be on PPP mode where Govt would contribute Rs 1- 1.5 lacs . One of its key characteristic would be interest subvention scheme to the tune of 6.5 % for slum -redevelopment or renovation by the end user himself. To materialise this, we are meeting all major banks next week. With more than 700 million people expected to move to urban areas by 2050, there is an immense potential in the affordable housing sector for the industry, he added.

We have decided to roll out a Rental Housing Policy' soon as well to safeguard the interests of both parties. Our draft Model Tenancy Bill, 2015, will soon go to the cabinet for its approval. It is on our website for feedback from all the stakeholders. The upcoming policy would do away with some archaic rules that governed this sector. The housing for all guidelines would also impact this upcoming policy, he shared.

Implementation of various key projects like the smart cities, industrial corridors, clearance of land acquisition bill and strengthening of the single window clearance system to ease out approval processes are the key to boost theREAL ESTATE sector in true sense. Though it will take a decade or so more, said Mr Mr Anshuman Magazine, Chairman - CII REALTY 2015, Co - Chairman, CII National Committee on Real Estate & Housing and Chairman & Managing Director, CBRE South Asia.

He also called for rapid infra development in order to fill the shortage of 17 million dwelling units in urban area which gap is further expected to widen by 5 million units each year.

Mr Shreekant Somany, Chairman, CII Northern Region & Chairman & Managing Director, Somany Ceramics shared that The sector is expected to generate over 17 million employment opportunities across the country by 2025. According to data released by DIPP, the construction development sector in India has received FDI equity inflows to the tune of US$ 24,012.87 million in the period April 2000-December 2014. CII has long been actively involved with the Real Estate Sector, addressing key policy issues and constantly developing a roadmap for the stable growth of this Sector. CII Realty is yet another platform to deliberate on the radically evolving scenario in this sector amongst the stakeholders especially the policy makers.

As a solution to the presentMARKET condition, we believe that instead of discounts, offering customers value-added services like sporting facilities, special subvention scheme, will attract the customers. Also, delivery of the project on time will help us to gain the trust of the consumers, said Mr Vineet Relia, MD, SARE Homes Project Services.