Realty picks up pace this Navratras

With the first major festivities of the year concluded with Navratras, Indian realty is keeping its fingers crossed for the remaining months of the year 2018.

The much awaited time of the year when sales and deliveries take place, realty sector sees the best days during each festive season.

As opposed to the previous few quarters riding with unstable sentiments and uncertainties pertaining to purchase decisions, the last month of the financial year witnessed a whole lot of traffic in the realty market which was evident with the massive footfalls of end users at projects which are more existent in physical form.

Developers were also seen upbeat with the improved market scenario as they came out with multiple offers which included heavy discounts, freebies and much more.

Few of the developers were also seen actively engaged in handing out possessions to the rightful owners during these auspicious days.

Overall though, the market was observed to be picking up some pace, promising a better growth and revival in the upcoming few months.

"With the festive season concluded, the realty sector always hopes for a momentum which should last longer. This year as well, the market has performed well in terms of renewed interests of end users and the much needed revival is becoming prominent in the sector with sentiments gradually becoming positive as well as the market gearing up for an even better response as the year gradually progresses. An equal surge was witnessed for both residential and commercial properties in this Navratras which goes on to establish that there is a prevalent demand for commercial spaces in the country and needs to be tapped properly," explains CEO, Spectrum Metro, Vikas Sharma.

"Homebuyers have never been absent from the market as projected by a lot of reports. A family which needs to move ahead on the purchase decision will do so irrespective of the sentiments in the market. The only exception is that they will be extra cautious with respect to the project they are investing in and the background of the developer in context of the deliveries which have been made by them prior to the selected project. The current demand for ready to move in properties is evident because of the above reasons but as the existing inventory gets cleared and new inventory is pushed in the market, homebuyers will definitely need to study the track record of the developer they wish to purchase with," said vice president CREDAI-NCR and MD, RG Group, Rajesh Goyal.

"This Navratras, there has been a better movement of customers towards project sites. The primary research is already done before this period but the final booking is preferred to be done during these days. One cannot say that there is an exponential growth in sales during these periods but final closings do increase and there is a marginal increase of four to six percent which is witnessed. Two of our projects, Gulshan Ikebana in Sector - 143 on Noida Expressway and Gulshan Bellina witnessed great demand for two and three BHK as one stands complete and the second is nearing completion," said president CREDAI-Western U.P. and director, Gulshan Homz, Deepak Kapoor.

Dehradun realty major, Pacific Group saw almost 200 percent jump in their sales figures and equally for people accepting possessions which has been the trend in this future smart city of Uttarakhand. The city has been the preferred destination of second home buyers because of its climate and geography.

NCR realty major Saya Homes would also soon be possession of its project Saya Zion in Greater Noida West which comprises of approximately 680 units. The developer would be sending out offers of possession and expects people to start acknowledging and shifting in units soon.

NCR realty major Gaurs Group which had offered a flat BSP of Rs. 3295 across its ready to move in units in Gaur City in Greater Noida West and have received over 2000 registrations every weekend. The acceptance of the scheme has been so high that it has been extended until April 1 now on public demand.

Another NCR developer Paramount Group has witnessed over 100 percent increase in site visits in comparison to last Navratras.

According to the developer, the demand for ready to move in properties has definitely gone up and they have witnessed over 500 percent increase in site visits on their projects Paramount Golf Foreste in Greater Noida, Paramount Emotions in Greater Noida West and Paramount Floraville on Noida Expressway.

Sikka Group, which has multiple projects in NCR, has also received an overwhelming response for all its projects with over 30-40 percent increase in queries at all sites. This was static across all its ready to move in and ongoing projects including the one in Dehradun.

With over three projects in line for completion, realty group SG Estates has witnessed over 40 percent increase in queries across their projects SG Grand in Raj Nagar Extension, SG Oasis in Vasundhara and SG Benefit in Govindpuram during the Navratras and the obvious reason being the extent of work which is visible at these project sites. SG Estates would also be soon coming out with their project SG Shikhar Heights in Siddhartha Vihar, Ghaziabad.

NCR realty major Mahagun Group continued with its Great Indian Property Bazaar through the Navratras and witnessed a major increase in footfalls and registrations.

Luxury and mid segment housing, both saw increased queries in comparison to last year.

GIPB is the annual property fest of Mahagun Group in which this year they had eight exquisite offers for seven of their projects in NCR.

The eight offers included zero percent GST Impact, one car parking free, no bank loan processing fees, wardrobes in all bedrooms, first free transfer, modular kitchen, hotel membership and one-year free maintenance.

The seven projects across which these offers were applicable are Mahagun Manorial Sec 128, Noida, Mahagun Mezzaria Sec 78 Noida, Mahagun Meadows in Sector - 150 on Noida Expressway; Mahagun Mirabella Sector - 79, Noida; Mahagun Montage in Crossings Republik, Mahagun MyWoods and Mahagun Mantra in Greater Noida.

"It's a normal tendency of the realty sector to perform better than non-festive days. There is an increment of about eight to ten percent on the sales front during the festive season as against the non-festive days. Even on the deliveries part, buyers tend to relocate to their properties during festive season more often. Thus, possessions taken up during this period rise about 10 percent as against the non-festive days. It is clear that the market observes better results on all fronts during the festive season," avers president CREDAI - Ghaziabad, Manu Garg.

NBCC aims to build one lakh budget houses over next five years

State-owned project management consultancy firm NBCC is planning to build over 1 lakh affordable houses on its own land parcels, plots owned by the government and public sector undertakings, said a top company official. 

It is looking to build these houses over the next five years to support the government’s stated objective of Housing for All by 2022. “Our target is to build 1 lakh affordable houses over the next five years. 

This would entail cost of Rs 10,000 crore, which will be shared between all the stakeholders,” Anoop Kumar Mittal, chairman of NBCC, told ET. “Some of these projects would start this year itself.”

These projects would offer residential apartments starting from Rs 10 lakh and going up to Rs 50-60 lakh depending on the location of the project. NBCC is expected to make a profit margin of around 8-10% through these projects. NBCC has over 200 acres of land parcels in cities such as Alwar, Jaipur, Faridabad, Kochi, Patna, Kolkata, Bhubaneswar and Coimbatore that would be utilised to build these houses apart from land to be allotted by the government.

The company has initiated discussions with many PSUs to execute the housing projects on their surplus land parcels in locations that include Delhi, Gurgaon, Pune, Hyderabad, Nainital and Raigadh near Mumbai.

Source- ET Realty

RERA creates a Rs 10,000 crore business for insurance companies

The Real Estate Regulatory Act (RERA) has made it compulsory for developers to get title insurance for all projects, opening a new segment of over Rs 10,000 crore for insurance companies.

Insurance companies have so far not covered land transactions and they say the reason for missing cover is unreliable land records, which can be challenged.

After the implementation of Rera, it is mandatory for developers to provide written affidavit to the buyer stating that the legal title to the land contains legitimate documents of ownership. This policy covers buyers of property against loss and settlement costs, litigation funds arising from problems in the land title discovered after purchase. HDFC Ergo and SBI General are working on launching title insurance policy.

“As per Rera, every builder will have to buy title insurance and we expect the entire potential in terms of premium to be Rs 10,000 crore,” said Anurag Rastogi, member of Executive Management - HDFC Ergo. “Demand has always been there but there was no regulatory requirement.”

Sum assured for title insurance will be the value of the property. Five -six large builders have shown interest in buying title insurance to cover loss of property and cover the legal expense in case of faulty land records.

Given the lack of records, title insurance may not become a big segment just yet. 
“Most land records and manuals and are yet to be digitalised. The ecosystem is yet to mature and given the existing problems with land records, implementation of title insurance could still be difficult and could take up to two-five years for Rera to be fully implemented nationwide,” said Pushan Mahapatra,CEO, SBI General Insurance Company. “Large developers, financiers would like to buy title insurance.”

Mostly, it will cover issues arising out of forgery and fraud or claims arising out of documents not created properly. Interestingly, if property value appreciates, the policy will increase the limit of indemnity.

Source- ET Realty

All you wanted to know about...REIT

Sometime later this year, India may see its first Real Estate Investment Trust (REIT) list on the bourses, with the Blackstone-backed Embassy group planning to float one. REITs have been quite a hit in Asian markets such as Singapore and Hong Kong, but have stayed on the drawing board in India for the last many years. If they take off, there may be light at the end of the tunnel for the struggling real estate sector. Market regulator SEBI has been tweaking its norms of REITs to enable them take off successfully, but progress has been slow.

What is it?

REITs are investment vehicles that own, operate and manage a portfolio of income-generating properties for regular returns. These are usually commercial properties (offices, shopping centres, hotels etc.) that generate rental income. An REIT works very much like a mutual fund. It pools funds from a number of investors and invests them in rent-generating properties. SEBI requires Indian REITs to be listed on exchanges and to make an initial public offer to raise money. Just like MFs, REITs are subject to a three-tier structure — the sponsor who is responsible for setting up the REIT, the fund management company which is responsible for selecting and operating the properties, and the trustee who ensures that the money is managed in the interest of unit-holders.

You can invest in REITs in primary and secondary market and exit any time you want. But they will have a minimum investment requirement of ₹2 lakh. Also, the minimum offer size of an REIT is ₹250 crore. Though countries such as the US and Singapore have seen REITs providing good returns, in India, issues such as lower rental yields and an illiquid and opaque property market have discouraged REITs.

Why is it important?

The Indian real estate sector has been facing a liquidity crunch on account of unsold inventory and low demand. REITs can help cash-strapped developers to monetise their existing property. Indian investors don’t have too many regular income options. SEBI requires REITs to distribute a minimum 90 per cent of their income earned to investors on a half-yearly basis. Similarly, 90 per cent of sale proceeds too are to be paid out to unit holders unless the amount is reinvested in another property. Thus, you get to receive regular income and also get to benefit from price appreciation, thereby boosting your returns. In real estate sector, both rent and capital appreciation from property depend on the location, infrastructure and industrial development around that area. REITs juggle these risks through a diversified portfolio of properties.

Why should I care?

If REITs take off, you can invest in the property market with a minimum amount of ₹2 lakh, which is far cheaper than buying property. REITs an be a new asset class to explore. Most of the developers are bullish on this because they have already invested large amount in commercial properties which are generating good returns. Further, there is transparency as you will also know the valuation of the REIT once in every six months. Many investors buy second or third homes for rental income. REITs could turn out to be a better option on account of their diversification.

REITs can reduce the risk related to your property investments as 80 per cent of the value of the REIT should be in completed and rent-generating assets. They are required to be run by professional managements with specified years of experience notified by SEBI.

Source- The Hindu Business Line

Government would complete its PMAY target much before 2022: Hardeep Puri

The Union minister blamed some of the state governments for the slow place of the scheme and appealed to all stakeholders to make an all-out effort to achieve the objective of providing shelters for the homeless.

Union minister Hardeep Singh Puri today said the government would complete its target of building 11 million homes under the Pradhan Mantri Awas Yojna much before 2022. 

Refuting some media reports that the pace of the scheme was slowing down, the housing and urban affairs minister said that he has informed Parliament regarding the progress of the government's flagship scheme, under which 4.5 million houses would be sanctioned by the end of March. 

Puri was speaking at a national workshop on Urban Livelihood Mission ceremony organised by his ministry here. 

"I see the scheme progressing at a fantastic rate. I often come across narratives which are ill-informed, without any basis. On the issue of Pradhan Mantri Awas Yojna, our assessment is that we need to build 11 million homes by 2022. 

"The scheme was started in June 2015. By end of March we would sanction 4.5 million homes. Five years are still left (to fulfill) the scheme's target. We will be able to complete our target much before 2022," Puri told reporters. 

On the issue of building shelters for the urban homeless, he said, "In the last six months that I have been associated with this ministry, I have had serious concern because the progress that should have been registered in setting up and running such shelters for the urban homeless has been somewhat lacking in results." 

The Union minister blamed some of the state governments for the slow place of the scheme and appealed to all stakeholders to make an all-out efforts to achieve the objective of providing shelters for the homeless. 

The Supreme Court last year had directed Uttar Pradesh, Haryana and West Bengal to place before it a road map on implementation of a scheme for the urban homeless, saying it was the government's "obligation" to help these poor people. 

The top court perused the affidavits filed by the three states on the implementation of the National Urban Livelihood Mission (NULM) scheme and observed that they had not given a road map or a vision document on the issue. 

Source- Economic Times

Construction of houses under PMAY-Gramin sees nearly 200% jump in last four years

According to the data recently made available by the Ministry of Rural Development, construction of houses under Pradhan Mantri Aawas Yojana (Gramin) has seen a jump of nearly 200% in the last four years.

In the financial year 2014-15, a total of 11.91 lakh houses were completed. As of March 21, 2018, 34 lakh houses have been constructed under PMAY-G.

Over 47.21 lakh PMAY (G) houses are at an advanced stage of completion while first instalment of 60 lakh houses has already been released and work is in progress.

Assam and Bihar have one of the highest numbers of incomplete houses. “Bihar had the problem of availability of sand for many months,” the ministry said in a release.

The government aims to complete construction of one crore houses under PMAY-Gramin by March 2019.

Source- ET Realty

Home loan tax benefits: How housing loan can help you save big on tax

Owning a house is a dream for most, but it comes at a big financial cost. Buying a home usually requires taking a home loan which generally includes big lumpsum upfront, and monthly EMIs that you pay to your lender for 10, 20 or even 30 years — unless you are one of the few lucky ones who can buy a home completely from your own pocket.

However, availing a home loan also has additional benefits. First, home loans help you improve your credit score through regular and timely payments of the EMIs for a number of years. Second, home loans offer you a number of tax benefits, which can help you reduce your tax outgo. Let’s take a look at tax benefits you can avail if you have taken a home loan or plan to in the near future:

Tax deduction for principal repayment

A home loan borrower’s EMIs has two components – principal repayment, which is the amount you have borrowed from the lender, and interest payment, the amount of interest you need to pay on the home loan. Usually, in the first few years after taking the home loan, the interest component is higher and in the later years, the principal component is higher.

For your principal repayment, you can claim a deduction of up to Rs 1.5 lakh from your total taxable income in a year under Section 80C. Expenses like registration and stamp duty charges are also eligible for tax deduction under Section 80C, but you can avail deductions only when the house has been fully constructed and you have received possession.

Remember, if you sell the property before 5 years of possession, tax benefits availed will become part of your taxable income for the year the property is sold.

Tax deduction on interest repayment

Tax deductions on interest paid on home loan can be claimed from the year the construction of the house is completed. But for this, the loan you have taken has to be for purchase or construction of a new house and also, the construction needs to complete within 5 years of taking the loan. For interest paid on a home loan, you can claim maximum deduction of Rs 2 lakh under Section 24. This deduction, however, can be claimed only for self-occupied property.

For interest paid on loans taken for let-out property, the interest amount is deducted from the rent received from the property. However, there can be instances where there is a loss from the let-out property, i.e. the interest paid on the loan is greater than the rent received. In such cases, the borrower can set off the loss of up to Rs 2 lakh from the income under other heads, such as income from salary, etc. The rest of the loss can be carried forward to future assessment years.

For first time buyers

If you have taken your home loan in the financial year 2016-17, you can claim a further tax deduction of up to Rs 50,000 on your interest repayment under Section 80EE.

However, there are a few conditions that you need to meet to claim this deduction. You need to be a first time home buyer, which means the loan should be for the first property in your name. The value of the house needs to be less than Rs 50 lakh and your loan amount should be less than Rs 35 lakh and it needs to have been sanctioned by a financial institution or a housing finance company. Provided these conditions are met, you can claim this tax deduction till your loan is repaid.

While owning a home is one of the biggest life goals, it also makes most people to adjust their lifestyle due to the high costs involved. So, ensure you make the most of the tax benefits on offer.

Source- Financial Express

Housing cycle in India is on revival path, says CLSA

Hong Kong-headquartered brokerage firm CLSA said the housing cycle in India had started showing some green shoots. 

This can be gauged from the cement demand, developer pre-sales and the government’s affordable housing programme, the brokerage said. The brokerage house believes the PMAY Urban Programme is shifting from announcement to execution mode for nearly two million houses, significant budget raises and recent order wins by large contractors. 

CLSA said the broadest indicator of housing construction activity — the cement demand — had seen doubledigit volume growth during the third quarter of FY18 and January 2018. 

The response of developers to create affordable housing supply has started gaining some momentum with announcements of affordable targeted co-investment platforms being created by leading developers like Prestige and Mahindra Life. 

The governments PMAY Urban programme has seen a steady execution build-up, with 1.8 m houses under construction as of March 2018 vs 0.7 m at April 2017. Construction contractors namely L&T and NCC have also announced substantial order wins from the Andhra Pradesh governments PMAY Urban programmers. 

Our base case remains that a combination of improved affordability and government support should drive the housing cycle improvement through 2018,” said CLSA. Among stocks catering to this theme, CLSA is bullish on Godrej PropertiesBSE -0.12 %, Sobha, Ramco Cements, and Supreme Industries. 

Source- Economic Times

Aadhar and Pan card no proof that you are legally occupying house: Bombay HC

MUMBAI: Aadhaar card, Pan card and electricity bills are not proof that a person is legally occupying a house, Bombay high court has ruled. Justice Shalini Phansalkar Joshi upheld the eviction of four families of former municipal employees from a building in Matunga owned by BMC.

The families, claimed they had been staying in apartments at Laxmi Niwas, Matunga, for around four decades and had been issued identity and address documents “The documentary evidence on which (the families) have relied on, such as electricity bills, ration cards, Aadhaar card, PAN cards, etc, at the most prove their occupation but not the authority under which they are occupying those premises,” said the judge. “It may be true that as they are in possession of the enquiry premises since last several years, no objection might have given by the municipal corporation for them to obtain electric or telephone connections, but that cannot make their occupation over the enquiry premises as authorised,” the court said, adding that they were liable to be evicted.

The court pointed that the families had admitted that they did not have documents to show that they were unauthorisedly staying in the apartments or the corporation had given then permission to stay there. “They have admitted that they are neither tenants nor licensees of the municipal corporation. They have admitted that they have not paid rent, fees or compensation in respect of the premises to the municipal corporation,” said the judge.

Source- ET Realty

Art Affordable Housing Finance to infuse over Rs 100 crore for expansion in FY 18-19

Art Affordable Housing Finance (AAHF) has raised Rs 25 crore from institutional investors. It plans to infuse nearly Rs 100 crore in the next financial year, most of which will be used to expand its business, said Arvind Hali, managing director and CEO of the company.

AAHF had previously raised Rs 350 crore in 2017 through the institutional investors.

“We hope to expand into Rajasthan and take the total operational locations to 65-70 by 2018,” said Hali.

AAHF currently has a book size of Rs 400-500 crore which it plans to increase by Rs 20,000-30,000 crore in the next 2-5 years.

The company is however not keen to enter into smaller ticket size segment (below Rs 5 lakh). “The operating expense in equal whether you are lending Rs 5 lakh or Rs 30 lakh. Along with this, in this particular segment there is not much clarity on title documents,” he said.

According to Hali, the government should provide some kind of compensation on the upfront cost to housing finance companies to move into the low-cost segment or the volumes of housing in the segment must increase exponentially, which is currently highly unlikely, to make it viable.

Real estate showing signs of revival: Venkaiah Naidu

The real estate sector is showing signs of revival after a period of slowdown, Vice President M Venkaiah Naidu on Thursday said but expressed concern over high prices of land parcels especially in smaller cities.

Addressing realtors' body CREDAI annual conclave, he asked the association to adopt self code of conduct for members and keep distance from defaulting and fly-by-night operators.

"After a period of slowdown in the market, the realty sector market is once again showing signs of revival, which is good for the economy," he said.

The construction and real estate sector plays a vital role as it is the second largest job provider after agriculture, he added.

Naidu hoped that the CREDAI is well geared to implement the best practices as required in the new real estate law RERA (Real Estate Regulatory Authority).

Referring to the court cases filed by home buyers against builders, Naidu said there is a need for regulator but regulations should not become strangulations.

"If there is no regulation, then you have more and more Vijay Mallya's, you have Nirav Modi's.....," the vice president said, adding that this realty law was passed during his stint as Minister of Urban Development.

The law, which came into effect from May last year, seeks to bring much-needed transparency in the property sector.

On high land price, Naidu said he wondered prices of land in Vijaywada and other places, are equivalent to New York and Washington.

The cost of housing units is going up because of land, he said.

Stating that land parcels are largely held by middle men, Naidu said, "there is a need for price correction" and "reality has to come in the real estate sector".

He also expressed concern over massive housing shortage of 19 million units currently, estimated to double at 38 million units by 2030.

Highlighting steps taken by the government to boost affordable housing, the vice president said this segment will drive the real estate sector in coming months.

Naidu said the private players have a great role to play in providing homes to people.

The delay in clearance for housing projects should be addressed by local bodies, he said, adding that there should not be obstruction in development in the name of environment.

Earlier, CREDAI President Jaxay Shah highlighted that initiatives taken by the association towards skill development of construction workers and waste management as well as environment protection. He also informed that member developers have taken up affordable housing projects in a big way.

Indian real estate market may touch $180 bn by 2020: Report

The real estate sector in India is likely to reach a market size of $180 billion by 2020, from $126 billion reported in 2015, a report said.

"The housing sector's contribution to the Indian GDP is expected to almost double to more than 11 per cent by 2020, up from estimated five to six per cent," said the CREDAI-JLL report released at the inaugural session of CREDAI Conclave 2018 here on Wednesday.

The Confederation of Real Estate Developers' Association in India (CREDAI) is the apex body of private real estate developers in the country, while, JLL is a professional services firm specialising in real estate.

According to the report, the Real Estate Regulatory Act is expected to consolidate the real estate sector in the country as it would force out unscrupulous developers.

The report further said: "Private equity and debt investments in real estate increased by 12 per cent on year-on-year (basis) across 79 transactions in 2017."

"Private equity inflows in office and information technology and information technology enabled services during 2014-2017 (year-to-date) are 150 per cent higher than the previius seven years' inflow combined," it added.

Source- Business Standard

DigiComm, the digital wing of ICCPL bags the account of Gaursons India Private Limited

DigiComm Marketing Services LLP, the digital wing of Integrated Centre For Consultancy Pvt Ltd (ICCPL) will now be responsible for managing all the social media & digital marketing activities for the realty major, Gaursons India Private Limited. 

Gaurs Group, has been a front runner in Indian real estate for over 2 decades. The group has over 35000 satisfied buyers and is now amongst the top developers across the nation. 

DigiComm is India's fastest growing digital marketing company which has created a niche for itself in real estate, education, retail and health sector. The company has been serving clients like Saya Homes, Mahagun India, Pacific Group, Delhi Public Schools, Ansal Housing, Eros Group, TDI Infratech, Khaitan Public School, Metro Mall and many more in recent past. 

Dushyant Sinha, founder of DigiComm adds, "we come from PR & communications background and have served over 100 clients in the same domain. Our understanding for each sector is deeply rooted and content plays the strongest role in digital marketing which comes from knowledge. 
Digital marketing is the future for all sectors. With shrinking marketing budget and the growing need to increase the market and reach out to a bigger audience, organisations have to become digitally active".

Mr Siddhartha Sood, Head- Marketing, Gaurs Group says, "Real estate is fast moving towards digitization and it has been observed very well that the kind of platforms one gets to showcase their work online is way above the conventional techniques.  We have a big kitty of projects for homebuyers to choose from. Our association with DigiComm comes in the light of the same and we hope that this helps us market our products better, reaching out to bigger masses". 

Housing sales higher than new supply in last 2 years: JLL

Housing sales exceeded new supply by 5 percent during the last two years in seven major cities, property consultant JLL India said, while advising end-users and investors to buy flats as prices are stable and interest rate low.

In its latest report, JLL said that housing sales stood at 2,44,830 units during 2016 and 2017 calendar years in seven major cities, while cumulative new launches of homes were 2,33,387 units.These seven cities are —Delhi-NCR, Mumbai, Chennai, Kolkata, Bengaluru, Hyderabad and Pune.

“This is a good time for end users, investors and fence sitters to consider their entry into the residential market, given that prices have been stable for a sustained period,” JLL India Country Head and CEO Ramesh Nair said.

With lending rates from banks having significantly reduced since 2015 and are at a decade low, he said the situation provides residential buyers a most opportune moment to purchase properties as well as easily service their monthly instalments EMIs.

Housing sales were higher than the new launches in six quarters but were lower in last two quarters.In the second half of 2017, new home launches increased after the uncertainties related to new real estate regulatory law RERA stabilised.

“These projects launched in the second half of 2017 are witnessing good offtake, which will reflect in good sales figures when the January- March 18 quarter ends,” JLL said.

The fresh supply in residential in the latter part of 2017 was largely on account of the lag effects of the RERA implementation, which was adopted by most states during the same period, it added.

JLL said the scale of new launches indicates the confidence that the market has for the future potential demand. “It also indicates the strengthening of the transparency, governance and compliance standards aligned by the developers. Certainly, a good and controlled ecosystem to operate in, both from a developer and buyer perspective,” the report said.

During the last 8 quarters, JLL said the sales velocity has seen a steady upward trend on account of pent-up end user demand that uplifted the market as soon as a stable trend in the residential capital prices was observed.

Last week, JLL released a study that showed that as many as 4.4 lakh housing units were unsold in seven major cities at the end of 2017 with Delhi-NCR contributing maximum at over 1.5 lakh flats.

Real estate developers have restricted new launches in last few years due to unsold inventories and subdued sales.

Source- Realty + Mag

Densely populated cities can sustain urban planning better: CSE

The executive director of Centre for Science and Environment, Anumita Roy chowdhury, has said "high-density cities can sustain urban planning better than the newly built ones". 

Speaking at a programme - 'Green cities mission: a dialogue on urban sustainability' - Roychowdhury said yesterday the web of interconnected lanes in the densely populated cities makes travelling faster. 

"People can walk short distances in the high-density cities. In a new place like Newtown, where the planners have built rows of super blocks at the nodes and there is no maze of lanes, vehicle is the only option for travelling," she explained. 

That in a way also gives rise to vehicular pollution, Roychowdhury said. 

"The builders often do not take climatic factors into consideration. It is necessary to monitor energy performances of green-rated buildings and modify the bylaws of urban planning bodies." 

Asked about the situation in West Bengal, she said, "While the state government is formulating new policies and announcing incentive programmes for green buildings, we have to find out if we are implementing the ideas in a proper manner," the top CSE official said. 

West Bengal Pollution Control Board Chairman Kalyan Rudra said initiatives have been taken for solid waste management and recycling. 

"Years ago, a popular resort/open air theatre had come up on the top of a waste dump which looked like a hilltop along E M Bypass. I think using waste materials for such purposes is not feasible. Instead we should look towards recycling or reusing waste," he said. 

The takeaway points from the of the one-day meet - organised by the CSE Delhi and Institute of Town Planners - will be forwarded to the Urban Development Ministry and Environment Ministry for a "possible follow-up action", Roychowdhury added. 

IIT Kharagpur Professor Somnath Sen, IIEST Professor Souvannic Roy, Technical Advisor of Kolkata Municipal Corporation N B Basu were among those who participated in yesterday's programme.

Source- ET Realty

UP GATE TO RAJ NAGAR EXT ELEVATED ROAD PROJECT GETS GREEN NOD

The environment department on Friday granted long-pending clearance to Ghaziabad’s prestigious elevated road project from UP Gate to Raj Nagar Extension.

 According to the senior officials of the District Administration,  Chief Minister of Uttar Pradesh Yogi Adityanath is expected to inaugurate this project. Details of Chief Minister’s visit are being worked out.

Atul Sharma, PRO Ghaziabad Development Authority  ( GDA) said , the State level committee of environment has given the clearance to the 10 kilometer long elevated stretch starting from UP Gate to newly developed township of Raj Nagar extension. 

The GDA Vice Chairperson and the District Magistrate Ritu Maheswari had announced that the inauguration of this elevated road, which will shorten the journey to national Capital to 18 minutes from the city.

Highlighting the project’s importance, Ms Maheswari said that the elevated road had been constructed on Transit Oriented Development (TOD) basis which took five years to be completed. 

On September 20, 2013, the GDA Board cleared proposal to built elevated road for which detailed project report (DPR) for Rs 1142/- was prepared.  On January 30, 2014, GDA Board approved the project.  On June 2, 2014 revised DPR  for Rs 1147/- was approved by the GDA board.  On October 18, 2014, contract was awarded to Hyderabad based Navyug Enterprises.  And finally the road was made ready to ply vehicles in January 2018.

Source- The Pioneer

MahaRERA acts on 50% of complaints registered with it

The Maharashtra Real Estate Regulatory Authority (MahaRERA) has heard 900 of the 1,800 complaints registered with it and levied Rs 50,000-10,00,000 lakh on developers for rule violations between August last year and this February.

A recent assessment of the cases uploaded on the MahaRERA website stated this. “We have a 50% record in hearing the cases. With the conciliation bench to be operational from March 10, the number of cases coming to us will reduce,” said a MahaRERA official.

“Of the complaints registered with us, we did not hear those that are not under our jurisdiction. For others, we have passed orders pertaining to each case. We have levied fines from Rs 2 lakh to Rs 10 lakh, depending on the violation,” he said.

According to officials, some projects paid a penalty of Rs 50,000 each. Penalty of Rs 1 lakh each and Rs 10 lakh each was levied on a few projects. “The rest paid fines between Rs 2 lakh and Rs 10 lakh,” said another official.

At present, MahaRERA has 15,000 projects registered with it. The Real Estate (Regulation and Development) Act, 2016 mandates builders to register their projects with the housing authority to ensure that homebuyers are aware of their details. The last day for registration of ongoing projects was 31 July, 2017. The authority under the act has the right to penalize a developer up to 10% of the project cost for delayed registration.

Consumer forums have raised objections to the projects not yet registered with MahaRERA. “It is time that MahaRERA conducts its own survey and penalizes such projects. The formation of the conciliation panel dissuaded many flat buyers from registering their complaints with MahaRERA,” said Vijay Sagar of Akhil Bharatiya Grahak Panchayat.

The Telangana government has constituted a panel to study the administrative set-up and functioning of MahaRERA.

Mumbai world's 16th costliest property market: Report

Mumbai, the country’s hottest property market, now ranks 16th among the top 20 costliest cities in the world. A budget of $1 million can help you buy little less than 1,000 sq ft in few coveted localities of the country’s commercial capital. With that amount, one can buy 237 sq ft space in Hong Kong, which ranks second in the tally, showed Knight Frank’s annual wealth report.

A year ago, Mumbai property market ranked 15th in this list with $1 million fetching 1,065 sq ft space.

The rise in Indian financial capital’s ranking on this count is supported by the rapid wealth creation in the country. India is expected to be the third largest contributor in Asia with respect to wealthy population after China and Japan by 2022.

Mumbai itself ranks 47th on the Knight Frank City Wealth Index among 314 global cities. The index is drawn from four major indicators such as wealth, investments, lifestyle and future. Mumbai and Delhi would be among the top 10 markets to witness the highest addition in households earning more than $250,000 annually between 2017 and 2022.

In terms of wealth alone where in the index measures the number of the Ultra High Net Worth Individuals, High Net Worth Individuals (HNWIs) and rate of wealth generation in a city, Mumbai ranks in the top 20 with Delhi at 22nd and Bengaluru at 26th positions respectively.

According to the report, India’s wealthy population in the prime $5 million-plus category rose to 47,720 individuals between 2016 and 2017 recording 21% growth. This is more than double the global average of 9% and one and half times the Asia average of 14%. Even in terms of projections, the segment in India is expected to increase by staggering 71% between 2017 and 2022, again well above the Asia’s 61% and the global average of 43%.

“India is one of the major drivers of UHNWI population growth in Asia, which is a bright spot in the global landscape…However, the inclination to invest in property is lower for the ultra-wealthy Indians compared to their global peers. Only 23% wealthy Indians are interested to invest in property (excluding a primary residence and secondary home) in India compared to 43% globally,” said Samantak Das, Chief Economist & National Director - Research, Knight Frank India.

The nation’s affluent class in the super prime $50 million and above category also grew by 21% between 2016 and 2017, more than double the global average of 10% and above the Asia average of 15%. Between 2017 and 2022 India is expected to add more than 2,000 individuals in this category, at a growth rate of 71% again well above the Asia’s 55% and world average of 40%.

The superrich in the country belonging to the trophy $500 million and above category also grew by 18% between 2016 and 2017 marginally above the global average of 11% and the Asian average of 16%. By the end of 2022 India is projected to have 340 individuals in this category at a growth rate of 70%.

“2017 was a relatively strong year for growth in Asia-Pacific, which has been reflected in the growth in wealthy individuals across the region. Despite global headwinds including a rising interest rate environment, the continued rebalancing of the Chinese economy and tensions around trade, the region is set for further growth in 2018, with wealth increasingly being accumulated through new sources of growth including technology related industries,” said Nicholas Holt, Head of Research for Asia Pacific, Knight Frank Asia Pacific.

During the period, a staggering 97% respondents that the wealthy population in India saw an increase in their wealth as compared to 88% in Asia and 72% globally. Property investments was amongst the lowest at 17% contributing factors that led to increase in wealth amongst Indians, compared to 30% for Asia and 50% globally. While 95% respondents said that India’s wealthy people increased their investments into equities, 50% said that investments into property dwindled in 2017. The investment allocation into property in India at 36% was lower than Asia at 39% and globally 43%.

According to Das, for those looking to invest outside India, the top choices are UK, USA and UAE. Amongst those willing to commit to property, a heightened level of interest is seen in the asset class of commercial real estate particularly office and logistics, warehousing on the back of a stream of policy interventions.

Majority of the respondents said that investments in gold at 69% and crypto currencies at 71% were unchanged in 2017.

Source: ETRealty