Modi govt may soon pay rent for urban poor in 100 smart cities

NEW DELHI: The Narendra Modi government may now pay your rent. The Centre is all set to roll out a Rs 2,700-crore welfare scheme in 100 smart cities to give rent vouchers to the urban poor.

The government would launch the new rental housing policy with the rent vouchers for below poverty line (BPL) families. Though the policy has been in the works for three years, the first component is likely to be rolled out in 2017-18 financial year in the smart cities.

The scheme is expected to cost Rs 2,713 crore every year to implement in smart cities. Aimed directly at the urban poor and helping the migrant population, the scheme would involve distribution of rent vouchers by urban local bodies.

The tenant would give these vouchers to the landowner, who in turn would be able to redeem them at any citizen service bureau. If the rent is higher than the value of rent voucher, the tenant would pay the difference in cash to the landowner.

The value of rent voucher would be determined by the urban local body on the basis of class or size of the dwelling unit and the prevalent rent in the city. The government is also exploring the option of direct benefit transfer in this voucher scheme. According to Census 2011, about 27.5% of urban residents lived in rented houses in 2011.

However, National Sample Survey (NSS) found that around 35% of urban households lived on rent in 2009. Moreover, according to NSS this proportion has remained steady since 1991. A senior official of housing and urban poverty alleviation ministry told ET, “The rental voucher scheme is being looked at as a means to complement the Prime Minister Housing for All scheme.”

The government would also monetise the confiscated benami properties for construction of affordable homes to address the housing shortage.

“The recent implementation of the Benami Properties Act and rules open up another option for rental housing. An enabling provision would be inserted in the rules that houses confiscated by Central government which cannot be auctioned, could be let out by the Central government or through state governments as rental housing for the middle income group (MIG), LIG and economically weaker section (EWS) depending on the suitability and location of such properties,” the official said.

The ministry would now prepare a Cabinet note to push the rental voucher scheme. The move comes close to a recommendation by a group of secretaries on health, sanitation and urban development formed by Prime Minister Narendra Modi.

Source - ET Realty 

Women in real estate: ‘I did it my way’

“I can’t think of a better career choice” Surabhi Arora Senior associate director research, Colliers International, Gurgaon 

Surabhi Arora leads the India research team at Colliers International. She specialises in real estate economics and is well-versed with the market dynamics across the main cities in India. Arora’s responsibility in Colliers, includes sector analysis, forecasting, financial modelling, strategic planning, project-level analysis, pre-sales and brand building. She has played an active role in the growth and development of the research team. Arora joined a real estate-centric Singapore-based venture capital fund in 2005. Being a chartered financial analyst, her entry into the real estate industry was an unplanned one. 

“The industry was growing at a very fast pace at that time. I could not have chosen a better career than this. The last 12 years in the real estate sector, have been fantastic for me,” says Arora. The challenges faced by women in this industry, are not much different from those in any other industry, feels Arora. “Hard work and self-confidence, helped me to cope with obstacles. Balancing work and home has not been a difficult task for me. My son is 10 years old now. Although it is difficult to spend enough time with him, I ensure that I am there with him for important events,” she elaborates. 

“People will look beyond your gender, if you are hardworking and clear about your objectives” Pushpa Bector Executive VP and head, DLF Premium, Delhi NCR 

Pushpa Bector was instrumental in creating the DLF Mall, which is spread across 2 million sq ft in Noida. Bector heads the premium malls portfolio for the real estate company, including Mall of India in Noida, DLF Place (Saket), Cyber Hub (Gurgaon) and City Centre (Chandigarh). In almost 11 years with DLF, she also revamped and DLF Promenade (Vasant Kunj) into a prime fashion destination in India and set up the F&B division for DLF malls. Bector has two decades of experience in the retail and mall business and has several accolades to her credit, including the ‘Most Admired Shopping Centre Professional of the Year’ at the Asia Shopping Centre and Mall Awards 2014 and ‘International Women Leadership Award for the Excellence in the Retail Industry’ organised by CMO Asia in 2013. 

“Retail management is a human-centric profession. In the last few years, women have been seen in large numbers in the retail industry. Women have good communications skills to persuade and influence the consumer, which helps in marketing. I strongly believe that if you are clear about your objectives and if your work speaks for itself, then, people look beyond gender,” Bector maintains. 

See also: Here’s why Indian real estate needs more women in the business 

“My two children are grown up and they are my biggest support. They look upon me as their role model. I have faced gender discrimination when I was a junior-level executive. I have always dealt with such issues firmly,” says Bector, who graduated in hospitality from the Oberoi School of Hotel Management and was associated with Domino’s Pizza. “In today’s competitive global economy, knowledge and one’s capability are the ingredients for success. If women have ambition and skills, there is no stopping them from succeeding,” she states. 

“I feel happy to play a small role in helping home owning aspirations of women from lower segment” Deepali Shinde Unit head of MALA (Mahila Awas Loan Division) of Aspire Home Finance Corporation Limited, Mumbai 

Deepali Shinde heads Aspire Home Finance Corporation Limited’s (AHFCL’s) Mahila Awas Loan Division MALA (Mahila Awas Loan from Aspire). MALA is an initiative to bring financial inclusion to low-income, salaried and self-employed women and offers housing finance as well as advisory assistance. Shinde’s experience in housing finance includes more than a decade in the financial and services industry.

 “The low-income group women include salaried women (working in private companies, small scale industries, nursing and housekeeping staff, maid servants, cooks, etc.), as well as self-employed women (such as vegetable vendors, women with home-based business like papad making, running small kitchens and tailoring). These women have equal share in the income of the household and in many cases, are the only source of income at home. However, their search for financing towards home buying has often gone unanswered. So, we have tied up with builders, to provide property options to our women customers, at below-market offerings. We also offer counselling on the entire process of home buying and home loans,” Shinde explains.

 “My mother, who was not educated, worked very hard and did odd jobs to ensure I was educated. So, I can understand the difficulties of these women. They are committed in their repayment, unless there is any exigency. This segment faces more than 90% of the total housing shortage in India and hence, can also be viewed as a business opportunity,” points out Shinde. 

MALA offers loans starting from Rs 2 lakhs to Rs 12 lakhs and AHFCL currently covers 42 locations in Maharashtra, Madhya Pradesh, Gujarat and Telangana. “We aim to provide housing finance assistance to more than 1,000 women customers in the current financial year. I feel happy to play a small role in fulfilling the home-owning aspirations of women from the lower segment,” says Shinde. 

“Women have a high emotional quotient” Darshana Parmar Jain Deputy MD, Ishwar Parmar Group, Pune

 Darshana Parmar Jain, has a master’s in Software Science from the United States, with 12 years’ experience in the Information Technology industry in India, the US and the UK. She has incorporated information technology as an important driver for growth in the 40-year-old Ishwar Parmar Group one of the largest developers of slum rehabilitation projects in Pune. 

“The success of a real estate company, depends on the product and delivery. When it comes to home buying, the decision maker is often a man but the influencer is a woman. Being a woman is a huge advantage in this field. Women have a high emotional quotient and can appeal to consumers. With the government focusing on improving the ease of doing business and the real estate industry becoming more organised, there are now greater opportunities for ambitious and hardworking women in the industry” maintains Jain, who handles various departments, such as marketing, sales, recovery, legal and liaison. 

“In fact, CREDAI Maharashrta has decided to launch a ‘Women’s Wing’ in all cities, to encourage more women to get involved in real estate. Cities like Pune, Aurangabad, Pandharpur, Satara and Nashik have already setup this wing,” adds Jain, who is Women’s Wing convenor for CREDAI Maharashtra and CREDAI Pune metro. 

“For any woman to scale new heights in her career, she needs a supportive family. I have tremendous support from my in-laws, my parents, my husband and my children. Hence, I am able to balance everything and meet deadlines, by sharing the workload” says the mother of two. 

“Being a woman in this field is an advantage” Gita Ramanan Co-founder and chief design and HR officer, Design Cafe, Bengaluru

 Gita Ramanan is an architect, who also has an Entrepreneurial Management Certification from ISB, Hyderabad. She worked has with several design firms, designing restaurants, five-star hotels and homes, before co-founding Design Cafe in 2011, with her partner Shezan Bhojani. Design Cafe is an award-winning design firm, with projects across the country. Ramanan has experience in client management, employee hiring, accounts, networking, marketing, retention and research. “This business needs one to be very hands-on. We constantly implement better processes and engage with the right people, to manage the challenges that arise,” explains Ramanan, who has been a TEDx speaker and national athlete.

 Ramanan considers herself lucky to belong to a family where getting educated and making a career was natural. Two generations of women before her, managed their families, as well as their careers. “I am also fortunate to have a life-partner, who knows and understands me and honors my choices and intelligence. I try not be a ‘super woman’ and instead, focus on the quality of life,” she adds. 

“While I face numerous challenges as an entrepreneur, architect and designer, being a woman, is not one of them. I certainly am not diminishing the challenges that women face in today’s workplace and in maintaining a balance between their personal and professional lives. 

Nevertheless, being a woman in this industry is an advantage, as we naturally possess patience and determination. Our empathy, holistic viewpoint and attention to details, allow us create a sense of calm in this frenetic field,” Ramanan explains. 

“A higher level of integrity and commitment, are my greatest strengths as a woman in this field” Nazia Yusuf Izuddin President, SN Group, Uttarakhand 

Nazia Izuddin is the founding president of SN Group of Companies, which is a business house based in Uttarakhand. The Group consists of infrastructure companies, hospitality companies and asset banks. 

Izuddin started her career as a finance lawyer in New York and thereafter, worked in Dubai and London. She moved to Dehradun in 2008 and along with her husband, started SN Group with two key laterals – hospitality and real estate. Their flagship hospitality project in Dehradun is the World Integrity Center, India. The Group is currently developing Aures Valley, one of the largest residential developments in Dehradun, spread across 40 acres. Izuddin, a Fulbright scholar and Harvard and Aligarh Muslim University alumnus, feels that the acceptance towards women has increased and this has helped them to make inroads and build allies and networks faster, especially in entrepreneurial ventures such as real estate.

 “Gender decimation can be emotionally torturous, especially for those who are educated and experienced, points out Izuddin. “There may be a constant attempt discredit one’s merit. This disturbs productivity, because half of one’s energy goes into establishing relevance. I deal with one situation at a time. I believe in god and good and this keeps me going. I am a great believer in experiences. If the experience is wholesome, it has a natural balance. Home, work, family, friends and clients, all balance out naturally, because as a person, I am not compartmentalised – all my experiences stem from the same being. Intuition and aesthetic and utility sensibilities are my strengths, which help me in designing real estate and hospitality products. A higher level of integrity and commitment and the ability to value things beyond its financial aspect, are my greatest strengths as a woman in this field,” concludes Izuddin.

Source- Money Control 

Affordable homes set to get more affordable on likely stamp duty removal

Affordable houses may soon be exempt from stamp duty, which varies between 4% and 8% of the transaction value.

Union minister for urban development and housing M Venkaiah Naidu said that his ministry has written to state governments to exempt affordable houses from stamp duty. Stamp duty is a state subject, with the state government fixing the rate and collecting the duty.

Addressing Credai, the Confederation of Real Estate Developers' Associations of India, the minister said that the Centre would ensure that there was no net tax escalation in the housing sector, particularly the affordable housing segment, following the implementation of the goods and services tax (GST).

He said that the inclusion of the real estate sector in the GST framework would help the industry.

Affordable housing is exempt from service tax, which is around 5.35% of a property's selling price. He said his ministry had already taken up with the finance ministry the need to continue the exemption under GST. He added that his ministry had also recommended to the finance ministry that the sector be taxed at a rate which is revenue neutral, and not a higher one.

The minister expressed his helplessness vis-a-vis the exclusion of stamp duty from GST, saying, "States have, in their wisdom, not adhered to the inclusion of stamp duty under GST." "Thus, we need to move forward from this debate," he said.

Source - ET Realty 

Home buyers urge govt to declare March 10 as 'Homebuyer's Day'

NEW DELHI: Home buyers' group 'Fight for RERA' has urged the government to declare March 10 as 'Homebuyer’s Day' to highlight the empowerment of homebuyers, who have being suffering in the hands of developers.

In a letter to Union minister for housing M Venkaiah Naidu on February 27, the home buyers' group has also asked the minister to announce awards to be presented on this day every year by the ministry for such homebuyers or homebuyers group which have taken forward the agenda of fulfilling home buyers aspirations.

The Real Estate (Regulation and Development) Bill was passed last year on March 10 after a long wait of 8 years.

"It is pertinent to reflect into history briefly to remember the tribulations this Bill went through before it was finally passed by both the houses of Parliament," said Abhay Upadhyay, national convenor, Fight For RERA.

The Bill was introduced in Rajya Sabha by the UPA government on August 14, 2013 and was referred to the select committee of Rajya Sabha on May 6, 2015 after the BJP government came to power.

The committee report was tabled in Rajya Sabha on July 30, 2015, and received the cabinet approval on December 9, 2015. The Real Estate (Regulation & Development) Act, 2016 (RERA) was finally notified on May 1 last year

Fight For RERA has played an active role in aggressively lobbying for the passage of the real estate regulatory Act.

All the states are required to notify real estate rules including the general rules and the agreement for sale rules and establish the real estate regulatory authorities and the appellate tribunals maximum by April 30, 2017 as the Act would commence its full operation from May 1.

However, only four states of Gujarat, Madhya Pradesh, Maharashtra, Uttar Pradesh and six Union Territories have notified the final rules so far.

Fight for RERA has also recently written to written to the prime minister Narendra Modi and Naidu asking separate Parliamentary committee on subordinate legislation (COSL) of the two houses of Parliament to intercede so that states do not weaken the RERA and ensure that final rules are framed and implemented within the ambit of RERA.

Source: Et Realty

With low rates and easy tech, this is the time to invest in realty

BENGALURU: You work hard for your money, but does your money work hard for you? When you put money into an investment, your money goes to work for you. Plain and simple: Investing is how you become wealthy. But what is the best “job” for your Rupee? How can your money earn the most and offer the least risk? One investment stands head and shoulders above the rest: Real Estate. 

CREA (I), Confederation of Real Estate Associates (India), the highly-reputed association of Real Estate Advisors and Marketing associates believes that right now might be the greatest time to buy real estate that we’ll see for another decade or longer. Here are some reasons why.

Rates will fall

Low interest rates lead to low monthly payments, which is great for real estate investors looking to maximize their profits. Investing in a property now with a flexible interest rate to avail the benefits of further fall in interest rates, especially with the multi schemes from developers and banks that offer great subvention schemes are a fabulous option for the Investor and Home Buyer to gain a 10-20% price benefit over a 10-year loan tenure. Several years from now, many Buyers and Investors will look back and say, “Remember back in 2017 when you could get a mortgage below the 7 percent? Those were the days!”

Banks have funds

Post demonetisation, banks are loaded with funds and banks have begun opening their vaults and relaxing their standards. No, this doesn’t mean you’ll be able to obtain a 125 percent loan-to-value mortgage with no money down based only on “your signature,” but if you have a job or a business and decent credit, obtaining a loan is easy now and the CREA (I) certified Real Estate Advisor also connects you with the best loan options specialists for a door step services. 

Prices reasonable 

Yes, real estate prices are extremely reasonable. An astute Investor knows that the Developers and Builders have gone through an adjustment era for over a year now and the market is picking pace especially in Bangalore.

However, for those willing to hustle to find great deals, great deals can be found. This is especially true for investors who buy foreclosures and have an eye for the great deals that a CREA (I) can bring to the table in partnership with a Developer and a Bank for properties ranging from `20 lacs to `5 crores. 

Tech makes it  easier

In the “olden days,” investing in real estate took a significant amount of driving around, talking to people, waiting, looking at hundreds of pages of documents and other difficult, time-
consuming tasks. Today, technology has made investing in real estate significantly easier. Today, a real estate investor barely needs to leave the comfort of home to manage a portfolio of properties. 

Source - The New Indian Express  

First Greater Noida Metro may run from Dec

NEW DELHI: The first Metro train from Noida to Greater Noida could run as early as this December, three months before the March 2018 commissioning date, reports Vandana Keelor. The 29.7km corridor to be dubbed `Aqua Line' is racing to the finish line and, according to the DMRC, will be the fastest Metro project built in India in less than two-and-a-half years.

The stretch is also setting another record, of being the most economical Metro project to be built in the country , DMRC chief Mangu Singh said on Thursday . Originally assessed at Rs 200 crore a km, the actual cost could be around just Rs 150 crore or even less, officials said. In comparison, Delhi Metro's Phase 3 is being built at a cost of Rs 552 crore per kilometre.

Officials said work on the Aqua line was progressing fast because land acquisition for the project was easier as opposed to major hurdles in Delhi Phase 3.

Source - ET Realty

Noida Authority orders removal of DG sets from government land

NOIDA: Adopting a tough stance against property owners encroaching on government land by placing their Diesel Generator (DG) sets outside their premises, Noida Authority has issued a public notice on Tuesday for their removal. Giving an ultimatum, the Authority has asked allottees of residential, commercial, institutional and industrial units to remove the gen sets within seven days or face action including monetary penalties.

According to Noida Authority officials, many Noida residents encroach on government land by installing DG sets, thus grossly violating the state pollution control board's rules. “As per norms, gen sets should be installed on the rooftops or within the premises of a residence, commercial or institutional premises,” said Saumya Srivastava, Deputy CEO (DCEO), Noida Authority. "We have been receiving complaints from citizens and other stakeholders of the city. Many gen sets are placed on the road outside private houses or in local parks facing the houses across many sectors. They not only occupy land belonging to the Authority but also generate pollution," he added.

Officials further said that the public notice is an attempt to remove the menace and rein in violators of pollution norms and guidelines for installation of gen sets. “We will give property owners time of seven days to remove these DG sets from government land. After that we will not only remove the gen sets but also charge a penalty fee from the allottee,” Srivastava warned. “We have sought the assistance of RWAs, CREDAI and Noida Entrepreneurs’ Association to get their members to cooperate with the Authority,” he added.

According to Uttar Pradesh Pollution Control Board (UPPCB), these generators should be on rooftops or inside the boundaries of a building, which houses it with a 15-metre-high pipe for fuel emission. However, many gen sets are seen parked on the service roads, parks, common areas of markets, etc hindering traffic and other movement, officials said.

Source - ET Realty