IGR implements Rs 1,000 stamp duty for affordable houses in Maharashtra

PUNE: The department of registration and stamps has started implementing the reduced stamp duty of Rs 1,000 for affordable housing projects in the state.

The state inspector-general of registration and stamps, Anil Kawade, said, “We have been registering properties under the affordable housing according to the new norms of the state government. We will eventually make a separate category for such registrations to get a clear picture of registrations under the PMAY (Prime Minister Awas Yojana) scheme.”

The directive to charge Rs 1,000 stamp duty on affordable houses was issued last week. The reduced stamp duty is applicable to houses measuring approximately 30sqm and 60sqm. The registration officials have to confirm that the person buying these homes should not have an income exceeding Rs3-6 lakh and that it is his/her first house and under the PMAY scheme.

The rule issued last week also stated that to avail of the benefits, Maharashtra Housing Area Development Authority (Mhada) must certify that the project concerned is approved under PMAY. It should have an occupancy certificate from the planning authority concerned, too.

Officials of the housing department iterated that the IGR officials would have to check all the criteria before the registration of affordable houses. Credai Maharashtra president Shantilal Kataria said, “Self-declaration should be allowed rather than Mhada attestation and rules should not insist on occupancy certificate because bookings are done prior to the projects’ completion.”

Seema Biswas, who plans to invest in an affordable house, said, “We do not know about the rules and the local authorities should help all workers’ organizations to know them.” 


Source- ET Realty

L&T Housing Finance increases its prime lending rate by 15 bps

NEW DELHI: L&T Housing Finance, a subsidiary of L&T Finance Holdings (LTFH), has increased the prime lending rate (PLR) by 15 bps to 17.50% for all eligible loans linked to PLR, the company said in a media release.

As on December 31 2017, the loan book of company's housing finance business stands at Rs 17,193 crore, with disbursements amounting to Rs 3,052 crore in Q3 FY18.

While company's Q4 results are yet to come, it had reported a 62 per cent year-on-year rise in home loan disbursements and the loan book had increased by 49 per cent during the same period.

L&T Housing Finance had disbursed Rs 976 crore in the housing segment while Rs 2076 crore in real estate finance segment in Q3 FY18 .

Its overall profit after tax (PAT) from housing finance business was Rs 129 crore in Q3 FY18.

Source- ET Reatly

Mumbai frees up 3,355 hectares of land to build 10 Bandra-Kurla complexes

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 The new development plan for Mumbai is expected to spur construction of properties and make home prices more affordable. The ‘Development Plan 2034’ has put the focus on growth of affordable housing and commercial properties, experts said.

The Brihanmumbai Municipal Corporation (BMC) will release 3,355 hectares (8,290 acres) of land, equal to nearly 10 Bandra-Kurla complexes. This land was previously designated as no-development zone, for building houses and commercial complexes in Mumbai and its suburbs.

About 2,100 hectares (5,189 acres) of it will be earmarked for affordable housing under the new development plan, Ajoy Mehta, municipal commissioner of Mumbai, said in a press conference on Wednesday. An additional 300 hectares (741 acres) of salt pan land will also be restricted for affordable homes.

The Mumbai development plan has increased the floor space index (FSI), or the extent of construction allowed on a piece of land, for both commercial and residential buildings.

In the island city, the FSI has been increased from 1.33 to 3 and 5 for residential and commercial properties, respectively. In the suburbs, it has been increased from 2 to 2.5 for residential properties and from 2.5 to 5 for commercial properties.

“It is a welcome move for home buyers since the increase in the FSI will ensure supply and lead to better affordability. Affordable housing is a focus and there is adequate provision for land parcels being earmarked for this,” said Amit Bhagat, managing director and chief executive at ASK Property Investment Advisors, a fund manager.

“For years, Mumbai’s development plans have focused on residential real estate. This time around, the focus has been equally placed on commercial properties, with a focus on decongesting the central business district areas as also extending the ‘walk to work’ aspect to newer locations,” said Niranjan Hiranandani, managing director of Hiranandani Constructions.

He said the new plan brings in a serious effort to ensure that the target of affordable homes is met within a reasonably short time.

Ramesh Nair, CEO and country head at property consultancy JLL, said earlier, the FSI in the island city was lower than the effective FSI allocated to the suburbs, which has now been amended. “The FSI in the island city has now been raised above the FSI in the suburbs, which will lead to higher potential supply,” Nair said.

However, Anuj Puri, chairman, Anarock Property Consultants, was concerned that the infrastructure may not be able to keep pace with the surge in real estate activity in Mumbai, the world’s second most crowded city. “If infrastructure development does not keep pace with increased construction, the stress on civic amenities and traffic may worsen in the city,” Puri said.

He said he wanted to understand how the salt pan developments will take place, given the coastal regulation zone (CRZ) rules. “My understanding is that the CRZ rules will have been relaxed to accommodate affordable housing on salt pans,” he added.

Source- Business Standard

Jewar airport to have two train links with Delhi

File photo

LUCKNOW: The proposed Greenfield Airport at Gautam Budh Nagar’s Jewar has been given an in-principal approval by the Centre’s steering committee.

Officials said that the detailed project report and techno-economic feasibility report for the project has been prepared by Price Waterhouse Coopers.

As per the report, 1,441 hectare land in eight villages has to be acquired for the airport. If all the land required for it is purchased or acquired within a year, the airport can be made operational by 2022, the report says.

The government will follow the PPP mode for its development and work will take place in four phases with approximately Rs 15,754 crore to be spent on it.

The airport will have two runways with a capacity to handle 70 million passengers annually. The cargo airport will be developed to handle 3 million metric tonnes per year.

“The meeting in Delhi was attended by principal secretary (civil aviation) SP Goyal and other senior members of the government. Work on the project had started in April 2017 and it is because of the coordination between the centre and the state that within one year it has been accorded an in-principal approval. On July 6, 2017, the steering committee had given it site clearance. The Yamina Expressway Industrial Development Authority has been appointed the nodal agency for this project,” said a senior government official.

Source- ET Realty

LIC Housing Finance Q4 net rises 2% YoY to Rs 539 crore

MUMBAI: LIC Housing Financereported another quarter of muted growth with profit rising 1.9% during the three months ended March 31, 2018.

During the quarter, the company reported profit of Rs 539 crore as against Rs 529 crore in the corresponding quarter in the previous year.

The company saw overall loan growth of 15% while individual home loan growth of 11%. Its margins improved to 2.49% from 2.39% a quarter ago.

The company’s net interest income- difference between interest earned and interest expended grew by 6%.

“LIC suffered twin blows in FY18 as it suffered massive re-pricing in its individual home loan book and at the same time, it lost market share to aggressive competitors,” said Digant Haria analyst Antique Stock Broking. “While margin pressures may be over, we don't see immediate improvement in either growth or margins.”

Shares of the company rose 1.86% to Rs 550.20 on the BSE.

Source- ET Realty

How metro went the extra mile to shrink distance between west Delhi and Gurgaon

File photo

NEW DELHI: Delhi Metro’s INA station will become an important interchange point for commuters when the second section of the Pink Line opens in June. For one, the interchange point there between the Pink Line and the Yellow Line will shrink the distance between west Delhi and Gurgaon, which means people from areas such as Naraina, Mayapuri, Rajouri Garden and Punjabi Bagh can get on the train to the Haryana city at INA, instead of taking a long detour via Rajiv Chowk.

And when the Pink Line expands to Mayur Vihar, expectedly by September, Gurgaon will come closer to many south Delhi areas that don’t currently have metro connectivity.

INA station will be unique for having the new platform of the Pink Line (Majlis Park-Shiv Vihar) above the concourse level, a first in the rail network’s construction history, pointed out Delhi Metro Rail Corporation (DMRC) spokesperson Anuj Dayal. “The best part for commuters boarding the Pink Line at this station will be the couple of minutes it will take to get into a train because the escalators and lifts will lead directly from the ground level to the platform,” Dayal added. Unlike at other stations, ticketing at two of the main entry points — on Aurobindo Marg and at Dilli Haat - will be at ground level.

The reason why there is no ‘full concourse’ at the Pink Line INA station is because it had to be built above the existing tunnel of the Yellow Line (Samaypur Badli-HUDA City Centre) and there wasn’t enough space available. The new station lies at 90 degrees to the existing station.

“It is for the first time that a station was built over the existing tunnel connecting the functioning INA and AIIMS stations,” Dayal said. “Also, probably for the first time in India, we resorted to cut-and-cover construction over the existing operational tunnel, so there is one point where trains of both the lines and the concourses will operate on top of each other.”

Dayal added, “This was done here because of the height variation between the existing INA station and the upcoming new INA station owing to the already existing Metro tunnel at the location. DMRC had to modify the station design to adjust to the new circumstances.”

Passengers who want to change from the new INA station to the old INA station will have to go down one level from the platform of the new station to the concourse level for further access to the concourse of the old INA station. Dayal assured, “There will be proper signage to guide commuters.”

The construction of the station over an existing tunnel was a big engineering challenge for DMRC. “We had to ensure that constant pressure was maintained on the existing tunnel, in the absence of which it would have got damaged,” a DMRC official revealed. “That is why the construction work was divided into six compartments and work went on in two compartments at a time.”

On the ground level, DMRC is also creating a green area that will serve as a plaza where commuters can relax. The top of a skylight above the interchange area is also being developed as an incline so as to allow a view of the areas surrounding the station.

Source- ET Realty

Land acquisition cost for new Delhi-Mumbai expressway to be lower by Rs 20,000 crore: Gadkari

NEW DELHI: New alignment for the greenfield Delhi-Mumbai express highway is likely to reduce land acquisition cost by up to Rs 20,000 crore as the highway will travel through backward and undeveloped areas, Union Minister Nitin Gadkari said in Tuesday. 

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The proposed project will also cut travel distance between the two metros by 125 km. 

The minister said as compared to land acquisition cost of Rs 7 crore per hectare for the existing highway between Delhi and Mumbai, the new alignment will see land acquisition cost to reduce to Rs 70 to 80 lakh per hectare. 

The government has planned to build a new express highway connecting Delhi and Mumbai on a new alignment at a cost of Rs 1 lakh crore. 

"Land acquisition for the new Delhi-Mumbai express highway will cost Rs 16,000 crore to Rs 20,000 crore less. The new alignment will be from Ring Road of Delhi to Jaipur to Alwar from where it will reach Sawai Madhopur to Mumbai via Vadodara," the Road Transport & Highways minister said on the sidelines of an event here. 

Addressing an event by Transport Corporation of India (TCI) for the launch of "Insurance Requirements of the Indian Logistics & Warehousing industry and their Customers," Gadkari said not only travel distance between both the metropolises will reduce by 125 km after this new express highway but one can reach Mumbai from Delhi in 11 hours on car. 

He said the Vadodara to Mumbai part will be built at a cost of Rs 44,000 crore in five packages and work is likely to begin in a month as tenders have been already out. 

The minister said the new express highway will result in reduction of the logistics cost and will develop the socially backward areas in Rajasthan, Gujarat, Haryana, Maharashtra and Madhya Pradesh. 

The government has plans to build Chambal expressway that would be connected to the Delhi-Mumbai expressway and will benefit states like Madhya Pradesh and Rajasthan, he added. 

"The new alignment of the highway which we made goes from backward areas of Rajasthan and Madhya Pradesh, Gujarat, Haryana as well. All backward areas of the four states will develop industrially. There will be poverty alleviation," the minister said. 

About logistics, he said the trucks will be able to move faster on the new express highway which will be access-controlled. 

"Our problem is our trucks run 200 to 250 km a day. In the US it is 700 to 800 km. Trucks will take 40 per cent time as compared to the existing time, the minister said. 

On insurance requirements of the logistics and warehousing industry, Gadkari made it clear that insurance can not be made mandatory and it is up to consumers to decide. 

"It is the duty of insurance companies to convince consumers," he said. 

TCI and Insurance Institute of India has released a joint report on the insurance requirements of India's logistics and warehousing sector. 

Exploratory study recommended mandatory insurance of cargo by shipper & a comprehensive risk management policy for logistics service providers. 

The study by TCI, a multi modal integrated logistics provider was conducted jointly with the Insurance Institute of India (III). 

The joint exploratory study found that Logistics Service Providers (LSPs) continue to be highly vulnerable due to the often unfair allocation of risk between them and shippers. 

The study also suggested that the sector build internal capacity to understand insurance needs, evaluate its own risk capacity, and make informed decisions with respect to insurance purchases in the future. 

"Unlike developed economies, all goods being transported are not insured. In fact, LSPs and Warehouse Service Providers (WSPs), and Transporters end up taking insurance on behalf of their customers for 'direct cash debits' for significantly high amounts. 

"This is a huge cost and the risk impact is not only on large organised players but on the small transporters it is an unbearable risk," Vineet Agarwal, MD-TCI Group said.

 

 

 

Source- ET Realty

'GST relief mainly for housing projects executed post July'17'

Benefits to the end customer would be seen primarily in projects executed post GST implementation

MUMBAI, APR 17

Contrary to common perception, Goods and Service Tax (GST), will not bring down housing prices even though it will cut construction costs, a report released by real estate consultancy JLL and PwC today has pointed out.

While the effective rate of tax earlier ranged from 10 to 15 per cent, it is now 12 percent under GST. “Therefore, it may appear that GST would result in savings of at least three to four per cent to the customer. However, the ground-level reality may be different. The cost of land involved in the project significantly impact the ultimate savings the customer may derive under GST,” said the report on impact of GST on residential markets.

In any case, the estimated benefit may not exceed three per cent of the overall construction cost. And even this benefit will be available only to projects that are mostly or entirely executed post implementation of GST. “In the case of projects which have already commenced and are nearing completion close to the GST start date, there may not be any significant benefits that the developer can pass on to customers,” it added.

Kunal Wadhwa, Partner -Indirect Tax, PwC India said, “The impact on real estate sector has always been part of the limelight for any major reform. The implementation of GST is no exception. While the change brings in more transparency and maturity to the sector, the requirements under the anti-profiteering law has been a contentious issue for this sector.”

Abhishek Goenka, Partner and Tax Leader - Real Estate, PwC India said the benefit to the end customer would be seen primarily in projects executed post implementation of GST. “The Government should engage with stakeholders to address their concerns. This would help the market gain the needed momentum as anything related to the sector significantly impacts the sentiments of the economy.”

Ramesh Nair, CEO and Country Head, JLL India said GST has been a matter of discussion for both the demand and supply side of the real estate community. “While a transparent uniform taxation system is good, the exact details of ‘how’ to implement this needs to be addressed swiftly. The government has issued certain circulars to set clarity in this sector. However, the need of the hour is to engage with tax authorities and developers at different levels,” he added.

Source- The Hindu Business Line

Avg rental yield of housing units mere 3%: Report

New Delhi, Apr 16 (PTI) Residential properties generate an average rental yield of 3 per cent, according to a report by realty portal Magicbricks.

"The average rental yield in residential real estate assets in India is 3 per cent, however in cities with cheaper real estate rates, like Kolkata the rental yield is higher at 3.9 per cent," Magicbricks said in a statement.

Magicbricks? report, Rental Yield in Residential Sector, takes a look at the yield to understand the kind of returns that can be expected in the current scenario. The report covers 14 major cities and considers multi-storey apartments, builder floors, independent houses and villas.

Builder floors has a rental yield of 3.1 per cent, while multi-storey apartments has 3 per cent yield. Large format and high capital value assets like villas and residential houses have lower yields of 2.4 per cent and 2.9 per cent, respectively.

Magicbricks analysis of rental trends across 14 cities showed considerable variation. In general, markets with cheaper real estate were found to have the higher yields. With 3.9 per cent return, Kolkata has the highest rental yield.

Furnished properties command higher rental and yield is disproportionate to investment made towards furnishings. At pan India level, the yield on furnished properties is 3.3 per cent. Semi and un-furnished have yield of 2.9 per cent and 2.7 per cent, respectively.

"Low rental yields point to the fact that residential investment purely on the basis of rental yield is not sustainable. Especially, considering the fact that national rental yield average at 3% is less than half of prevailing fixed deposit rate offered by the banks," the statement said.

Magicbricks is leading real estate portal with monthly traffic exceeding 12 million visits and with an active base of over 14 lakh+ property listings, it added.

Source- PTI

Over 12 lakh eligible under PMAY in Maharashtra

MUMBAI: A whopping 25 lakh people across the state have registered online for affordable houses under the Prime Minister Awas Yojana (PMAY).

Additional chief secretary (Housing) Sanjay Kumar told ToI that as per the PMAY website, 24.9 lakh persons have registered online, while 12.2 lakh applicants were found eligible for a house under the scheme. “We have drafted an ambitious plan to complete the work for approval of housing projects by 2019,’’ he said.

Kumar said that while the cost of houses ranges from Rs 3 lakh to Rs 10 lakh, the Union government provides a subsidy of Rs 1.5 lakh and the state Rs 1 lakh. For people from economically weaker section a house will be 300 sq ft, while for those from lower income group, it will be more than 30 sq meters, but less than 60 meters. “Under the housing for all, we have set a target of constructing more than 20 lakh houses by 2022,’’ Kumar said.

He said that the Centre aims to provide houses to all, and that too at affordable prices, by 2022 when when the nation completes 75 years of Independence. “In 2015, we prepared a scheme to provide houses to all in 382 cities/towns,’’ he said.

On the initiatives taken by the state government to achieve the target of housing for all, Sanjay Kumar said it has been decided to allot government land at a nominal rate of Re 1 per sq mtr, stamp duty of Rs 1,000 per dwelling unit for economically weaker sections, joint measurement charges at 50% , development charges too will be 50% of prevailing charges. Projects under PMAY will be implemented on public private participation basis. “All these orders have been issued,’’ Sanjay Kumar said.
He said the Centre has released the first instalment of nearly Rs 371.6 crore.

A senior BJP Minister said the government’s main target, particularly in the run-up to the ensuing Lok Sabha and state assembly polls, is to construct maximum number of affordable houses under PMAY. “By the end of 2019, we will ensure that more than 50 per cent of the projects will be nearing completion,’’ he said.

Source- ET Realty