Big budget boost for affordable housing

The announcement by Finance Minister Arun Jaitley in today’s Budget on providing 100 per cent deduction to the entities to construct houses up to 30 sq mtr in metro cities and up to 60 sq mtr in the non-metro cities can give a boost to affordable housing in India. This can be a game changer as the demand for affordable homes is on a steady rise.

"100 per cent deduction for profits to an undertaking in housing project for flats up to 30 sq. mtr in four metro cities and 60 sq. mtr in other cities, approved during June 2016 to March 2019 and completed in three years. Minimum Alternative Tax to apply," says Finance Minister, Arun Jaitley announced in Budget today. 

It is an important step in the wake of Central government’s ambition to provide ‘Affordable Housing for All by 2022’.

“The budget has given provisions to bring cheer to housing sector and will realise home dream for millions of Indians,” Prime Minister Modi noted later in the day.

However, the real estate sector has sent mixed signals. Some see it as a welcome step, while others feel that it is just not enough.

Giving his reaction, V Suresh, former CMD HUDCO told Magicbricks, “This has been a stimulating budget as far as the housing sector goes. Removing service tax on housing units of up to 60 sq mt is a very positive step. Providing tax exemption on housing units of size up to 30 sq mt in metro cities and 60 sq mt in non-metros will boost affordable housing in the country.”

Making a sharp observation on our partner channel Magicbricks NOW, Boman R Irani, chairman & managing director, Rustomjee Group said, “The size of the houses should have been 60 sq m all across India as homes below that size would be too small.”

“This move is significant and in line with the incumbent government's intention to boost affordable housing. The focus on affordable housing will give much-needed impetus to develop greater number of affordable housing projects across the country, thus, directly aligning the agenda with the prime minister’s vision of ‘Housing for All’,” said Abhishek Lodha, managing director, Lodha Group.

Affordable housing vs houses made affordable

Gulam Zia, executive director, Knight Frank India told MB Now in a discussion that the Budget will not immediately help in building up the sentiments in the market. “Time is still not ripe for the market to see more home buyers. The property prices have to come down,” he said.

Answering Zia on that note, Boman R Irani said, “There is no scope for further price deduction from the developers as Rs 37 goes to the government and only Rs 67 comes to developers out of which we manage our costs.”

Adding to the debate, Dharmesh Jain, MD, Nirmal Lifestyle said, “Today, we are taxed by the Centre, state and urban local bodies. Government is taking away a major share. Developers are not the ones who are making money in today’s market.

SOURCE: magicbricks.com

Budget 2016: Highlights of FM's speech

NEW DELHI: Finance Minister Arun Jaitley in his  BUDGET 2016 speech stressed on Indian economy's resilience amidst the current global economic turmoil. "Global economy is in a serious crisis. Financial markets have been battered but Indian economy has held its ground firmly." 

"IMF has hailed India as a bright spot. Let us look at our achievements compared to the last three years of the last government. We inherited an economy with low growth and high inflation," Jaitley said. 

"We have bridged the trust deficit created by the previous government," Jaitley added. We take a look at highlights from his speech: 

> Cheer for common man! HRA tax relief raised from Rs 24,000 to Rs 60,000 under Section 88G 

> Retains FY16 fiscal deficit target at 3.9% of GDP. FY17 fiscal deficit target at 3.5% 

> 1st home buyers to get addl deduction of Rs 50,000 on interest for loan upto Rs 35 lakh. Cost of house should not be more than Rs 50 lakh. 

> Planning to buy a car? Finance Minister Arun Jaitley has just made that costlier. 1% additional tax on cars costing above Rs 10 lakh. 1% infra cess will be levied on small petrol cars. A 2.5% infra cess will be imposed on diesel cars. 4% additional levy will be imposed on high-capacity passenger vehicles and SUVs. 

> Nine pillars to transform India: 

1) Agriculture and farmer welfare with an aim to double farmers' income in the next five years 2) Rural sector 3) Social sector including healthcare 4) Educational skills and job creation to make India a knowledge based and productive economy 5) Infrastructure investment to enhance quality of life 6) Financial sector reforms 7) Governance reforms and ease of doing business 8) Prudent management of government finances 9) Tax reforms to reduce compliance burden 

> Target of 10,000 kms of national highway and upgradation of 50,000 kms of state highways in 2016/17 

> Nearly 85% of the stalled road projects have been put back on track 

> Total outlay for infrastructure development stands at Rs 2.21 lakh crore in FY17 

> NHAI to raise Rs 15,000 cr through bonds in FY17. Allocated Rs 800 crore for port development in FY17 

> Abolition of Permit-Raj in public transport system. Private players will be allowed to operate fleet services. 

> Ensure universal coverage of LPG connection 

> There will be no excise duty or CVD on dialysis equipment 

> All retail shops will be allowed to operate all 7 days of the week 

> Objective to skill 1 crore youth in the next 3 years under the PM Kaushal Vikas Yojana 

> Rs 9,000 crore allocated to Swaccha Bharat Abhiyaan 

> Rs 1700 crore for Pradhan Mantri Kaushal Vikas Yojana 

> A Digital depository for school leaving certificates 

> A Higher Education Financing Agency to be set up, with a fund of 1000 crore 

> Rs 35,984 crore allocated for Agriculture in 2016-17. Target: 8.5 lakh crore of agricultural credit in 2015-'16; in 2016-17: Rs 9 lakh crore 

> To increase crop yield in rainfed areas, two schemes launched to promote organic farming 

> 28.5 lakh hectares will be brought under irrigation under the Pradhan Mantri Krishi Sichai Yojana 

> Five lakh acres of land to be brought under Organic farming in three years under Krishi Vikas Yojana 

> We will work for passage of insolvency and bankruptcy laws. We will undertake significant reforms 

> Government to provide incentive for deepwater gas exploration 

> We will enact a law to confer benefits on deserving sections on Aadhar platform 

> Rural electrification: 5542 villages in Feb 2016, more than total combined achievement of previous three years 

> Rs 60,000 crore for recharging of ground water recharging 

> Government to set apart Rs 412 crore to encourage organic farming 

> Rs 5500 crore to be allocated to PM Fasal Bima Yojana for next fiscal year 

> CPI inflation was 9.4 per cent in the last 3 years of previous government. CPI inflation has come down to 5.5% under our government, despite two poor monsoons 

> Our external situation is robust, CAD has declined to $14.4 billion this year, will be 1.4% of GDP at the end of fiscal 

> Our forex reserves are at the highest level 

> Pradhan Mantri Safal Beema Yojana has already been announced for farmers 

> New initiative being launched for BPL families. They will be provided cooking gas connection with government help and subsidies 

> We see external challenges as an opportunity. Risk of global turbulence is mounting; India must brace for tough times 

> 7th Pay Panel recommendations, OROP to put burden on government expenditure next year 

> Government's bold measures have helped India to stay ahead in challenging times. Growth exceeded 7.6% despite big fall in exports. 

> Government to enhance expenditure for social, rural and agricultural sector 

> We must strengthen firewalls against risks through structural reforms; rely on domestic market so that growth does not slow down 

> Animal welfare programme, animal health card, emarketing platform for connecting breeders 

> 62 new Navodaya vidyalayas to be opened in next two years 

> Certain parts of dylasis machines to be exempt from all forms of customs duty; national dylasis service programme to be launched in all district hospitals 

> 3,000 medical stores will be opened under Pradhan Mantri Jan Aushodi Yojana to make quality medicine available 

> Govt to provide Rs 500 crore for Stand Up India scheme 

> A new health protection scheme to provide cover up to Rs one lakh per family; top up of Rs 35,000 for people above 60 years 

> 3,500 medical stores will be opened under Pradhan Mantri Jan Aushodi Yojana to make quality medicine available 

> Rs 1000 crore provided for LPG connection to rural households in name of women; scheme to go on for 2 years to cover 5 crore BPL households 

> 75 lakh people have given up LPG subsidy 

> Rs 87,765 crore allocated for rural development 

> Digital literacy scheme to be launched to cover 6 cr additional rural households 

> Govt to develop 300 'rurban' clusters 

> Rs 38,500 crore allocated for MNREGA in 2016-17, the highest ever if entire amount is spent 

> Rs 2.87 lakh crore will be given as grants-in-aid to village panchyats and municipalities to boost rural economy 

> Govt to spend Rs 850 crore in a few years on animal husbandry, cattle and livestock breeding 

> States will be encouraged to take up decentralised procurement of foodgrains 

> Govt to allocate Rs 5,500 crore for crop insurance scheme 

> Rs 19,000 crore allocated for Pradhan Mantri Gramin Sadak Yojana in 2016-17; in all, Rs 27,000 crore after state contribution 

> 2.87 lakh crore to be given grant-in-aid for gram panchayats and municipalities; it is quantum jump of 228 per cent 

> Department of Disinvestment to be remained Department of Investment and Public Asset Management 

> Government to allow 100 per cent FDI through FIPB in marketing of food products produced and manufactured in India 

> Govt to bring new policy for strategic sale of CPSE assets 

> More FDI reforms proposed in insurance, pension, asset restructuring companies and stock markets 

> A new credit rating system for infrastructure will be developed 

> Duty drawback scheme widened and deepened to include more products and countries 

> A Public Utility Resolution of Disputes Bill to be passed to solve problems in infrastructure contracts, PPP and public utilities 

> Govt preparing a comprehensive plan for nuclear power generation and allocation could be up to Rs 3,000 crore per annum 

> Govt considering to provide calibrated market freedom to new gas production from deep sea, ultra deep sea to boost stagnant domestic output 

> 160 airports and airstrips can be revived at a cost of Rs 50-100 crore each 

> Rs 8000 crore provided for Sagarmala project 

> Total allocation for road and rail in 2016-17 is Rs 2.18 lakh crore 

> Govt to pay 8.33% towards employee pension fund for first three years 

> Scope of e-assessment to be expanded to 7 mega cities, to simplify compliance for taxpayers 

> Dividend in excess of Rs 10 lakh per annum to be taxed at additional 10% 

> Rate of securities transaction tax to be raised from 0.017 pc to 0.05 pc 

> A fund of Rs 900 crore started for stabilising market crisis of pulses 

> Start-ups to get 100 per cent tax exemption for 3 years except MAT which will apply from April 2016-2019 for creation of jobs

www.chromohomes.in

Green rated buildings underperforming

JAIPUR: At a meeting of Urban Development & Housing and local-self governance departments, CM Vasundhra Raje emphasized that green building concept should be promoted and incentives be given to those who adopt it for greenery and rain water harvesting structures in the houses and buildings. But there is far more to green buildings than just rain water harvesting and greenery.

In a recent conference, Center for Science and Environment (CSE), review has exposed the shocking fact that several state governments across the country are giving sops of extra free built up area to developers to get their buildings green rated without independent official oversight on their operations. Rajasthan is one of them.

CSE review has found green rated building underperforming. "State governments are giving extra free built up area without independent official monitoring and oversight of actual energy and resource savings in green rated buildings. Several state governments including West Bengal, Noida (UP), Rajasthan, Punjab among others have promised extra built up area to the developers and put the entire onus of monitoring and certification on rating agencies," reads the CSE review.

CSE has expressed deep concern over the growing obsession among the states and city governments across the country to offer sops of extra and free built up area and fiscal incentives to push the developers to opt for green rating of buildings. "State governments are doing this without setting up independent, transparent and accountable oversight system for monitoring of the actual energy savings and environmental performance of the green rated buildings. Several green rated buildings across the country are under performing and guzzling more energy," said Anumita Roy Chowdhury, executive director, CSE.

Any project enjoying support from the government, fiscal or otherwise, should have the obligation to be under scrutiny for performance and be transparent and accountable. "Without stringent measure for performance private green rating systems are becoming proxy for environmental regulations and the incentives are becoming a privilege for the few whereas these requirements should be an obligation for all," she said.

CSE review of the green rating systems and the incentives has further shown that the cities of Maharashtra like Pune and Pimpri Chinchwad are doing this differently. Instead of giving incentive in the form of extra built up area it has rightly opted only for fiscal incentives that can be withdrawn if needed. This is a better practice than giving the extra built up area as once constructed it cannot be undone if found underperforming.

Besides the data put out by the Indian Green Building Council (IGBC) on energy consumption of large commercial buildings that were rated and awarded silver, gold and platinum rating, under the LEED green rating program, these buildings grossly underperforming. Several of them cannot qualify even for the one star label under the energy star labelling program of the Bureau of Energy Efficiency (BEE) that ranks buildings based on their energy efficiency when operational.

India is locked in a frenzy of construction to meet the demand for homes, offices, and shops. "A staggering two-third of buildings that will stand in India in 2030 are yet to be built. Unless policies minimize resource guzzling and wastes with appropriate architectural design, building material and operational management for the entire building stock, there can be massive environmental debacle in the building sector," said Chowdhury. Unlike the developed world, the challenge is not to retrofit the already built to make it green, but to build new, which is efficient, sustainable, affordable and comfortable for all. This will have enormous impact on the quality of urban space; water and energy resources in cities and waste generation.

SOURCE: ETRealty.com

Modi government puts real estate bill on priority list to pass it in Budget session

NEW DELHI: The Narendra Modi government has flagged the much-delayed Real Estate Bill as a "priority" bill to be passed in the ongoing Budget session of Parliament.

While the BJP government is still trying to garner support for the Goods and Service Tax (GST) Bill, it is hoping to pass the Real Estate (Development and Regulation) Bill in the current session.

According to sources, the government has indicated it as a "priority" Bill and once it sees Parliament functioning normally it would push it in Rajya Sabha.

A senior government official told ET, "This is a high priority bill. We had decided against passing it in the winter session as there was hardly any business conducted. The Rajya Sabha functioned normally in the last 3 days and the government decided to push only non-controversial urgent matters then. If this time there is any indication of Houses running smoothly, it would be done in the first half."

The government is reaching out to non-Congress parties to push through the legislation, which has passed the scrutiny of a parliamentary committee. The Bill had been referred to a select committee, which had given its report in July last year. However, Congress, Left and AIADMK had expressed their reservations on the report through dissent notes.

Seeing stiff opposition right till the select committee, the government had formed an informal group of ministers (GoM) to formulate a politically-acceptable Bill. The ministry of housing and urban poverty alleviation, the ministry spearheading the Bill, accepted all the changes suggested by the select committee and the Cabinet gave its approval with further amendments on December 9. With these changes, the BJP government has even accepted suggestions made by Congress.

At present, the government faces the challenge of getting it first passed in Rajya Sabha and then take it to Lok Sabha. This would need a lot of political maneuvering as the MPs would demand a debate on the Bill in both houses.

SOURCE: ETRealty.com

After Jat Stir, Home Ministry working on amending damage of public property act

NEW DELHI: After the recent Jat and Patidar protests in Haryana and Gujarat, respectively, the home ministry is expediting a bill to amend the Damage of Public Property Act, 1984, to ensure that agitators are made to pay monetary compensation for wanton acts during a stir. The bill has remained stuck for the last 8 years, even as the latest agitation by Jats in Haryana is estimated to have caused a loss of nearly Rs 2,000 crore, including losses of private entities.

Amendments to the bill were planned after the Supreme Court in 2007 directed the government to penalise organisations for damages caused after a bandh or strike. Proposed amendments in the Act was mooted during the UPA regime but the bill did not see the light of day due to Parliament logjams.

"The amendments once cleared may be introduced in the ongoing Budget session, though it cannot be applied with retrospective effect," a senior home ministry official said. The amendments may also include damage to private properties not covered by insurance.

The week-long protests by Jats in Haryana witnessed damages to shops and outlets including McDonald's and showrooms of Chevrolet, Hyundai, Toyota and Honda. Schools and educational institutions of non-Jat communities too were vandalised.

According to MHA, the amended law will hold leaders of political parties and other organisations liable for damages. They may face a jail term too for properties damaged during a bandh or protest. The home ministry has suggested, "fine shall be equivalent to the market values of the public property damaged." It has also suggested that cops videograph demonstration and deposit copies with the SDM.

Another amendment was insertion of a Section 4B that will addrress 'abetment of mischief'. According to this new clause, "where damage to public property is caused in consequences of demonstration, hartal or bandh called by any organisation, office-bearers of such organisation shall be deemed guilty of the commission of the offence of abetment of an offence punishable under this Act and shall be liable to be proceeded against and punished accordingly."

SOURCE: ETRealty.com

BUDGET MAY OFFER INDIRECT BENEFITS TO REAL ESTATE SECTOR

    The much awaited Budget Session 2016-17 is finally underway with lot of hopes from the Government to bring in the much needed relief for the country. The tricky trade-off for the Finance Ministry to balance the funds flow will be tested to the core; this time especially due to mammoth plans being already laid. Real estate, which is dependent on over 30 allied industries and sectors, is hopeful for a silver lining. But with the clouds of political disturbances in the country looming, scope of any direct benefit to this sector are becoming null. Passage of Land Bill in this session is out now, with fingers crossed for GST and Real estate bill. Although, it is the demand revival and clearing of unsold inventory what this sector is craving for, the factor which might become prominent if our Honourable Finance Minister Mr. Arun Jaitley announces tax benefits, incentives, allowances, 7th pay commission, OROP, medical allowances, education benefits, benefits on saving and investments, etc.

“Huge commitments with respect to economic growth and infra revamp have been announced in the last couple of years, the fuel to which can be provided only when key reforms in the budget are announced. This sector is hopeful for direct benefits in way of Real estate bill and GST, but providing income tax benefits, allowances and better slabs for savings and investments, will somewhere add towards indirect benefits for this sector. End of the day, it is the purchasing power of a customer that justifies a real estate purchase and if these indirect benefits are made available, then demand is sure to revive in the long run”, states Mr. Rajesh Goyal, Vice President CREDAI-Western U.P. & MD, RG Group.

Tax structure revision a must

At present, the first income tax slab starts from Rs. 2,50,001 and tax savings are allowed to a maximum of Rs. 1,50,000. A person is then safe from tax liability till the time they are earning Rs. 4,00,000 annually. “If the Budget announces revision of tax structure by increasing the limit by another Rs. 50,000 - Rs. 1,00,000, there will be an additional disposable income available for the earner. Similarly, a Rs. 50,000 increase on the savings slab will allow an earner to foray into different ways of investments. This implies that a person will become safe from the tax liability till Rs. 5 - Rs. 5.50 lakh. A major segment of our population today is youth, but is without a home of their own. Announcements like these will allow them to expand their investment options towards higher budgets, thus allowing the inclusion of real estate as well”, explains Mr. Sushant Mutterja, CMD, Cosmic Group. Adding more weight into the topic and putting light on another aspect, Mr. Ankit Aggarwal, CMD, Devika Group elucidates “There is another angle at looking towards how revision of tax structure may help this sector to grow. Youth in India stands at over 50 percent today with most of them are being working singles, putting up on rented accommodations. If tax structure gets lenient in this Budget, there will be an overall shift towards better accommodation for renting. A 1 BHK tenant might shift to a 2 BHK and a person who is unwilling to stay on rent, might afford then. And, in best cases, many might even then be able to buy a property of their own as well. Thus, there will be a growth in rental housing demand as well as for end use and investment.”

Incentives from other sources

Understanding from a common man’s perspective, a decent Budget should be such that should not only bring relief to the citizens but at the same time, maintain a decent government surplus for the future as well. “What matters the most to any citizen is how much they are able to save, so that it can be further used towards other investments. Announcing incentives towards health and education will allow people to save money from this end and use them elsewhere. Enhancement of purchasing power is what ideally should be government’s motive in this Budget session so that people are able to save more and explore other bigger possibilities like real estate, etc. This will allow a better flow of demand in the sector plus regulate the flow of funds”, shares Mr. Vikas Sahani, CMD, Property Guru. Standing in sync and adding further, Mr. Vikas Khurana, Co-Founder, HomzCart avers, “All eyes are set on the Budget this year where mega announcements are awaited. A lot has been said and now is left to be done, and this Budget holds the key towards action. Indirect contributions for the real estate sector may get announced by way of seventh pay commission, OROP and other incentives towards lowering tax percentages and removal of multiple taxes. This is of much significance for the realty sector as demand will get generated only when customers are standing ready with easily available supply.”

Budget Session 2016-17 is planned to be held in two parts, first from 23rd February to 20th March then after a month break; from 20th April to 8th May. Thus, there is a long road ahead with ample to time to execute key reforms which should become a benchmark for the future years. Commenting upon how much importance this particular Budget Session carry for future Mr. Ashok Gupta, CMD, Ajnara India Ltd. concludes “The parliament session on the first day has begun on a low with hardly a few hours of activity. For the real estate sector, Real estate bill, GST and granting of Industry status will hold the key for future progress and demand dynamics. Announcements in the form of flexibility towards tax structure and savings, education, affordable housing, health and others will allow people to save money from one side and utilise it on other fronts. Real estate sector might reap the benefits directly or indirectly out of this Budget Session where the main motive of the government should be focused upon income savings and then influence people to invest on other mediums, to keep the momentum going.”

Over 4.25L houses sanctioned under 'housing for all' scheme: President Pranab Mukherjee

NEW DELHI: President Pranab Mukherjee today said that the government is committed to providing 'housing for all' by 2022 and over 4.25 lakh houses have been sanctioned under the scheme at a cost of more than Rs 24,600 crore.

Launched in June last year, the Pradhan Mantri Awas Yojana seeks to accomplish the construction of about two crore houses in the next six years to benefit primarily slum dwellers, urban poor and those belonging to economically weaker sections and lower income groups.

Addressing the joint sitting of Parliament, the President said, "The government is committed to providing Housing for All by 2022... The mission intends to cover all 4,041 statutory towns in the coming five years."

In its first year alone, 2,011 towns/cities in 27 states have been included under the mission, he said, adding, "A total of over 4.25 lakh houses have been sanctioned with a project cost of over Rs 24,600 crore."

Mukherjee also said that Varanasi and Jaipur have been declared as the first two Indian cities to be part of the UNESCO Creative Cities Network.

Launched in 2004, the network aims to strengthen cooperation with and among cities that have recognised creativity as a strategic factor for sustainable development vis-a-vis the economy, society, culture and environment.

Referring to the Swachh Bharat Mission, with its focus on behavioural change, Mukherjee said it is becoming a community movement to "herald an overall change in the quality of life and well-being" of the people, particularly the poor.

"Focusing on generating wealth from waste, the government has formulated policies on mandatory procurement of power from waste-to-energy plants, co-marketing of compost by chemicals and fertiliser companies, and use of construction and demolition waste," he said.

Holding that a robust infrastructure development unlocks opportunities for all, he said the government has initiated the Smart Cities programme for pursuing urban development in a "challenge mode".

"In the first phase of the Smart City programme, 20 cities have been selected after intense competition among 98 cities. Second and third phases of the programme are on the anvil," he said.

On the tourism sector, Mukherjee said 13 circuits and as many pilgrimage sites have been identified for development under the Swadesh Darshan and PRASAD schemes, respectively.

Under Swadesh Darshan, theme-based tourism circuits are identified for infrastructure development across the country, while PRASAD's objective is to augment religious and spiritual tourism in the country.

SOURCE: ETRealty.com

Survey for Housing For All beneficiaries begins in Nagpur

NAGPUR: The Nagpur Municipal Corporation (NMC) has started the process to provide flats and subsidized housing loans under the central government's Pradhan Mantri Awas Yojana or Housing For All scheme. Citizens with total family income up to Rs6 lakh per annum can apply online and avail the scheme that will continue up to 2022. However, the scheme is a subsidized housing project and not a free housing project that was implemented by the UPA government in the past.

Mayor Pravin Datke in a press conference said that a survey to know exact requirement of flats and subsidized housing loans began on Monday. "Three types of persons are eligible for the scheme slum dwellers, economic weaker sections (EWS) citizens with income up to Rs3 lakh/annum and lower income group (LIG) citizens with income up to Rs6 lakh/annum. EWS and LIG citizens will have to fill application provided online on NMC's website nmcnagpur.gov.in within one month. Survey followed by filling up of applications will be conducted in 178 of total 289 notified slums for three months. Process to denotify 111 slums is going on so they will be excluded from the scheme," he said.

Datke added that a detailed project report seeking funds will be submitted to the government after the survey ends. "Nagpur Improvement Trust (NIT) and MHADA will also plan housing projects under the scheme," he said.

Deputy municipal commissioner Sanjay Kakade said applicants will have to submit a printout of the filled-out form and submit it at counters opened at all ten zone offices. "Slum Rehabilitation Authority (SRA) is going to execute the scheme. Applicants will have to submit copies of voting card, aadhar card, property tax receipt, power bill, domicile certificate, ration card and income certificate along with application form and pay registration fees of Rs100. The applicant should not have availed any other housing scheme of the government. Also, applicants should not have own house in his name in the nation. Citizens can contact on 0712-2570023 or 09326371449 for further details," he said.

The scheme will be implemented in four different categories. First category is for slum-dwellers from notified slums. NMC will construct pucca houses in which Rs2 lakh will come from the central and state governments and remaining would be borne by beneficiaries. The NMC will try to keep the beneficiaries' share very low in redevelopment schemes.

In the second category, those EWS and LIG citizens who own a piece of land will be given housing loan up to Rs6 lakh at interest of 6.5% from nationalized banks. EWS citizens will have to construct up to 30 sqmt house while 60 sqmt for LIG citizens.

In the third category, the NMC or NIT or MHADA will construct housing projects with 250 flats in association with private builders. Size of each flat will be 30 sq mt. The central and state governments to provide funds of Rs2.50 lakh per flat and remaining will be borne by beneficiaries that will be brought down to minimal by the NMC's initiatives.

In the fourth category, EWS citizens will be given financial assistance of Rs2.50 lakh from the central and state governments for converting their temporary houses into pucca or even for expansion.

SOURCE: ETRealty.com

Five crore houses to be built for the poor by 2022: PM Narendra Modi

NAYA RAIPUR: Prime Minister Narendra Modi on Sunday said five crore houses will be built for the poor by 2022 as he laid the foundation stone of 'Pradhan Mantri Awas Yojana' here.

He stressed on the need for skill development and asked the youth to be job creators.

Modi said that years after Independence, there are still five crore families in the country who don't have a house for themselves.

"Two crore of them are in the cities and three crore of them are in the villages. Every Indian should think what kind of India they want in 2022, when India will celebrate 75 years of Independence," he said.

He said that the Centre and the state governments will work together to ensure that five crore houses are built by 2022 for the poor.

"This is not an infrastructure project. This is a project being undertaken to strengthen the dreams of the poor," the Prime Minister said.

He said that the initiative will create a lot of jobs as sale of building materials like cement, bricks and others will increase.

He also spoke about skill development initiatives taken by the Chhattisgarh government and said, "Only talking about demographic dividend won't do."
"Our youth must have skills and must be job creators," he said.

"Skill development brings so many opportunities for the youth. 'Mudra Yojana' is creating new entrepreneurs and helping existing ones grow," he said.

Modi said for economic progress, there is the private and public sector, "but the third and crucial one that I am attaching importance to is personal sector, where every person becomes an entrepreneur."

SOURCE: ETRealty.com

Rajasthan Housing Board may soon be dissolved

JAIPUR: Known to be a major corruption hub, the Rajasthan Housing Board is likely to be dissolved.

Chief minister Vasundhara Raje on Friday observed at a review meeting of the UDH (Urban Development and Housing) department that the Rajasthan Housing Board (RHB) should be dissolved. The RHB was established nearly 46 years ago to cater to the housing needs of the residents, in particular the lower middle class.

Upset over corruption in the board and the fact that RHB houses now being available at market rates and not at lower prices, Raje directed to complete all the ongoing RHB projects and transfer the land to urban improvement trust (UIT), corporation or councils. She also said that the existing staff be transfered to urban local bodies.

A source in the department said, "The chief minister sought an explanation over the initiation work of Dastkaar Yojana and other new housing schemes in the meeting."

"Dejected with the idea of constructing houses in far-flung areas, she said the existence of the board was no longer serving its purpose,''the source added.

Established in 1970, the RHB aimed at providing houses on no profit-no loss basis. However, in the recent past, several cases of corruption surfaced as officials allegedly increased the prices in connivance with the contactors. The matter was also reported to the chief minister in the pervious review meetings.

Source in UDH department said, "The unprecedented rise in the cost of group housing schemes of RHB was burning a hole in consumers' pockets. The allottees of RHB schemes were forced to pay double the amount in many schemes to take possession. This was happening as contactors were deliberately delaying the project."

Reports suggested a huge difference in prices from what was quoted at the time of booking and at the time of construction. As per records, in the past two years, the construction cost has been raised by more than 40%. For instance, in 2015 in Bhilwara, the RHB had announced flats at Rs 16 lakh each for middle income group (MIG-B) but the cost of constructed ones went up to Rs 42 lakh, which surprised the purchasers. Many allottees also approached the court in this regard.

Similarly, there was a price difference of Rs 16 lakh for Bhagu apartment (Mansarovar). At the time of booking the RHB had quoted Rs 38 lakh and when it was constructed, the allottees were asked to pay Rs 54 lakh. "The contractors, in connivance with officials, were using the material, which is not mentioned in the list and this elevates the cost."

Meanwhile, the RHB unions are gearing up for protest. "The chief minister's intention is to give the RHB land on public-private partnership (PPP) model at cheaper rates to develop various projects including international convention centre. Our union is continuously opposing this move. This is the reason such direction has been taken." O P Punia, RHB union president.

The union president further claimed the RHB is the only organisation in the country to meet the target of constructing houses for economically weaker sections and lower income group. The government will fail to achieve the target of 'Housing For All' plan, if the board is dissolved, he said.

SOURCE: ETRealty.com

Real Estate Market Showing Signs of Improvement in India: Report

BENGALURU: The real estate market in India is limping out of the slumber says the recent report from Proptiger. Improvement is sales reported for the first time in the last 10 quarters comes as a breather for the real estate residential market, reports Srinibas Rout.

The report titled Realty Decoded Q3 FY’16 mentions that cities including Ahmedabad, Kolkata, and Hyderabad witnessed increased launches compared to that in Q3FY’15. Stability in prices can be expected due to the tangible signs of recovery in most cities.

Affordable segment is doing much better than the luxury segment with over 50 percent of sales but luxury segment has plenty to look forward to as there is a consistent increase in sales. Greater demand has been witnessed across the cities for a budget of not exceeding 75 percent with the exception of Mumbai and Gurgaon.

Bangalore rose by 13 percent over the last 10 quarters while Hyderabad in close on the heels standing at 12 percent. Factors such as subsiding inflation and softening of policy rates may also catalyze the real estate market growth, says the report.

Governments Chipping in
Both the ruling central government and the state governments are taking measures to help the real estate sector growth. The cabinet gave green flag to 20 major amendments to real estate bill. The government also partially relaxed FDI norms for the real estate sector. Rajasthan Housing Board cut down the additional charges, UP government is promoting green buildings by offering no additional tax, Haryana enabled real estate developers to set up more development projects, and Maharashtra has annulled ban on the fragmentation of non-agricultural lands measuring 2,000 square meters or less.

SOURCE: SILICON INDIA

GULSHAN HOMZ LAUNCHES GULSHAN BOTNIA IN NOIDA

Noida: After a series of quality constructions and on-time deliveries, NCR realty major Gulshan Homz has announced the launch of its much awaited residential project ‘Gulshan Botnia’, which is to be developed at Sector 144, Noida Expressway. After an enthralling response received for their previous two developments on the Expressway, namely ‘Gulshan Vivante’ and ‘Gulshan Ikebana’, this is their third in line to be developed in the region.

The project will offer 2/3 BHK apartments with five unit plans starting from 1,025 sq. ft., 1,160 sq. ft., 1,355 sq. ft., 1,370 sq. ft. and 1,475 sq. ft. The total area of land under development would be 21,494.8 sq. mtrs. or 5.31 acres approx. that will house 12 towers with around 1,000 units in offer, podium + 19 floors in each tower. Gulshan Botnia, which is to be developed at Sector 144, Noida Expressway has been planned very strategically where it will receive the fruits of being well connected to the National Capital, Greater Noida, Faridabad, Ghaziabad, Yamuna Expressway and various other parts of Noida as well. The project is expected to be ready and delivered by March, 2019. The current BSP stands at Rs. 4,300 onwards. It is also to be noted that this is part of the 17.5 acres of land parcel which Gulshan Homz had bought from Unitech back in 2014, at a cost of Rs. 400 crores. The project boasts of brilliant locational advantages as well with close proximity to the upcoming metro station and ISBT while facing authority green area. The project features a neoclassical architecture, immaculate landscaping and a central landscaped podium. Along with superior connectivity and locational advantages, the project offers various modern amenities like in-compound OPD, customer care centre, water softner plant, amphitheatre, infinity swimming pool with a large deck, rainwater harvesting, playpen for kids and much more for the future residents to relish.

Feeling proud and jubilant on the launch, Mr. Deepak Kapoor, Director, Gulshan Homz & President CREDAI-Western U.P. said “First of all, I would like to take this opportunity to thank all our stakeholders and associates who have been with us throughout this successful journey. On behalf of the entire Gulshan Homz family, I take this sheer pleasure in presenting Gulshan Botnia. The project has been planned keeping in mind all the important aspects for the residents and thus offering amenities that matter, location which provides access to key places and connectivity with chief NCR regions. Noida Expressway being a region in demand will make this project a great addition for every investors’ and residents’ portfolio. We hope to receive a good response from the public like we have always.”

About Gulshan Homz

While fire, water, wind, earth and sky are the five indispensable aspects of our environment, Gulshan Homz calls quality, faith, professionalism, truthfulness and passion as the five element of its blueprint. Some may term them as are their building blocks, they call them their raison d'être, or to put it simply - their very essence of existence. And it is this foundation laid by their Founder & Managing Director, Mr. Gulshan Nagpal, that Gulshan Homz has stood rock solid for more than 25 years. The foresightedness of Mr. Nagpal has helped the company envision and improvise its skills. No wonder then, today their structures speak for themselves and their future looks bright with a number of premium projects already in the market.

SOURCE: ICCPL

80 developers, 300 pre-approved projects on offer in Chennai from Feb 19

CHENNAI: The city's residential sector could generate about Rs 25,000 crore in revenue selling about 40,000 units annually , feel developers affiliated to Confederation of Rea Estate Developers' Association of India (CREDAI).
Disputing the claims of most international realty consultants, who peg the volumes around 20,000 units per annum, city developers said the actual business in the residential sector was much higher going by the approval given to projects in the city and its suburbs by the Chennai Metropolitan Development Authority and Directorate of Town and Country Planning.

CREDAI members are coming together to monitise their stock at the annual property fair, Fairpro, which wil be held from February 19 to 21. Prospective buyers should not wait as CREDAI had worked out two attractive schemes for them, said Fairpro convener A Mohamed Ali. For under-construction projects buyers can book the apartments paying just 10% of the cost. They need not pay EMI till the apartment is comple ted and handed over to them.

In the case of ready-to-occupy apartments, buyers who pay the margin amount can take a one-year EMI holiday CREDAI will give an iPhone 6 to every person booking an apartment at Fairpro venue, he said.

Eighty developers are putting 300 pre-approved projects on display at their stalls. This is the ninth edition of CREDAI's property fair.

It will be held at Chennai Trade Centre.

About 21,000 visitors had attended the fair last year. It could go up to 25,000 visitors this year, said Ajit Kumar Chordia, president of CREDAI Chennai.

SOURCE: ETRealty.com

Noida plans amusement, business hub in Sector 94

NOIDA: The Noida Authority on Monday reviewed designs and plans for the city's proposed business and entertainment hub in Sector 94 that will house commercial spaces, entertainment zones, a habitat centre and residential highrises in a 25 acre area.

"The project aims to become the main business and entertainment hub of Noida. The plan is to have the project well laid out with open spaces and a mix of high and low buildings for offices, residences, shopping centres and restaurants," said Rama Raman, chairman and CEO of Noida Authority.

Located along the Noida-Greater Noida Expressway, officials said the area is likely to shape up soon. While about 9 acres of the land have been reserved for commercial space, the rest will house a habitat centre built on the lines of India Habitat Centre in Delhi and residential properties. The district centre would also boast of malls, shopping condominiums, office space, retail space and multi-cuisine restaurants as well as cafeterias.

Officials said that reputed architects were invited in November last year to propose designs for the integrated facility. "Leading developers will also be allotted land for developing residential pockets governed by controlled architecture which will be fused with the entire concept of the district center," said Raman.

A scheme inviting technical bids for the commercial space measuring 38,000 sqm was announced on February 10. "The technical bids for the commercial plots will be opened on March 2," said Bipin Gaur, general manager, commercial, Noida Authority.

"Normally, Noida allows a Floor Area Ratio (FAR) of 4 and 40% ground coverage. However, for this project we will allow FAR of 2 and 60% ground coverage," Gaur said. "Also, developers willing to pay the full amount in 90 days will get a rebate of 20%," he said adding that the reserve price announced for the land is Rs 1,59,000 per sqm.

SOURCE: ETRealty.com