Mid-term revision of circle rates likely for Jewar

The district administration on Thursday held a meeting with different stakeholders and discussed the feedback received for revision of circle rates, which will come into effect from August 1. Though the officials have not talked about any change, a mid-term revision of circle rates of Jewar is possible after the government gave the nod for an airport in the area.

Sources said the administration received nine feedbacks–Noida (7), Greater Noida (1) and Dadri (1) and applicants requested the officials to decrease the circle rate due to slowdown in real estate sector, also pointing out that circle rates in some areas are higher than the market rate. The administration had asked people and developers to submit the feedback by April 25.

The administration last week said it had decided against increasing the circle rates of property under the three authorities. However, it said the feedbacks collected from different stakeholders will be incorporated in the final decision. The buyers and developers claim that the real estate sector is down for some time due to demonetisation.

The circle rate is the minimum value at which the second sale or transfer of property takes place. The properties in different sectors in Noida are classified in five categories – residential, commercial, industrial, institutional and IT. The rates also differ accordingly in different sectors.

District magistrate B N Singh chaired the meeting of stakeholders and discussed the issue. “We will analyse the feedback and take a final decision. We will share the details in a press conference on Friday,” he said.

The district magistrate directed the registration department to expedite work and ensure that the buyers do not shift into houses without registry. “We have received information that some buyers are shifting to flats without registry. This results in losses to the government exchequer. The officials should conduct special enforcement drive and issue notices to such buyers and builders,” said the DM.

He said that the administration will identify such housing societies nearing completion and fix dates for registration of flats. The administration also plans to initiate action if the registration process is not completed on time.

Source- ET Realty

Affordable housing may be next big theme

The government's efforts to boost affordable housing in a bid to attain the goal of `Housing for All by 2022' have started to yield positive results. All indicators including the much-needed supply; pick-up in housing loans and sales in this category are cumulatively pointing towards an uptrend. However, price rise has been arrested due to good supply and this has been helping in maintaining affordability.

Several incentives for affordable housing including the infrastructure tag, extension in the timeline for project completion and with regards to the size of these houses have been helpful in drawing interest for all the relevant stakeholders including developers, financiers and most importantly home buyers.

Share prices of real estate and cement companies have already been moving up on account of this major affordable housing push trickling into other segments of the business and driving revenues.

Source- ET Realty

With RERA coming into effect, promoters, estate agents queue up to get registered before July 31

With the notification of Real Estate (Development & Regulation) Rules 2017, the Real Estate Regulatory Authority (RERA) office has started receiving applications from promoters and estate agents for registration under the new law.

A statement on Saturday said that the applications received alongwith required documents and fees are being processed before issuing a registration certificate to the applicant promoters and estate agents. “With the last date approaching, RERA is expecting a large number of applications for registration. Till date, 6 promoters of various projects in the state and 3 real estate agents have applied to RERA for registration,” it said.

The last date for registration is July 31. “All promoters and estate agents in the state will come forward and get themselves and their projects registered to avoid any kind of hindrance in their business. This will also help them escape the penalty,” the statement said.

Vini Mahajan, additional chief secretary, Department of Housing & Urban Development-cum-Real Estate Regulatory Authority Punjab said in a statement on Saturday, “The need to register under the Act revealed that Section 3 (1) of the aforesaid act mandates that no promoter can advertise, market, book, sell or offer for sale or invite intending buyers to purchase any plot, apartment or building in a real estate project without registering the project with the Real Estate Authority established under the new law,” she said.

“Also, the projects which are currently ongoing on the date of commencement of this Act and for which the completion certificate has not been obtained, are required to get registered with RERA within 3 months from the date of commencement of the Act, i.e. upto July 31.”

 Source- Indian Express

Uttar Pradesh to launch RERA website today

LUCKNOW: The Uttar Pradesh government will launch the Real Estate Regulatory Authority (RERA) website here on Wednesday, officials said on Tuesday.

The website will be open for all and people can, at any point of time, verify details about the builders antecedents, including their registration number.

Mukul Singhal, Principal Secretary (Housing) said the website has been developed to ensure that people do not have to take rounds of offices to verify builder details and that at a click of a button they can have complete information on the builders from who he or she is planning to buy a property.

He also informed that as soon as the builder or developer feeds all the data relevant to his or her company, they would be given a unique identity number immediately.

Earlier, this process, would have taken a minimum of 45 days.

The officials of the Housing Department said that after initial delay the state was ready to implement RERA with immediate effect.


Source- ET Realty

HUDCO reports 52% YoY rise in net profit at Rs 211 crore in Q1

Housing and Urban Development Corporation(HUDCO) on Monday reported 52 per cent year-on-year (YoY) rise in net profit at Rs 210.85 crore for the quarter ended June 30, 2017 against Rs 138.74 crore in the corresponding quarter last year.

Total revenue of the government-owned housing and infrastructure finance firm jumped 4.26 per cent YoY to Rs 929.08 crore during the quarter under review. It had reported total revenue of Rs 891.11 crore in the same period last year.

Profit before tax of the company stood at Rs 211.97 crore in Q1FY18 against Rs 204.43 crore in Q1FY17.

Shares of the company settled 0.96 per cent down at Rs 87.90 on Monday.

Percentage of gross non-performing assets jumped to 7.20 per cent in Q1FY18 from 6.02 per cent in the sequential quarter ended March 31, 2017. Net NPA stood almost increased to 1.98 per cent from 1.15 per cent during the same period.

30 residential plots in Gurugram to be auctioned next month

GURUGRAM: Haryana Urban Development Authority (Huda) is planing to auction 30 residential plots on August 13 to raise around Rs 38 crore. Reeling under a financial crisis, the Authority is selling its properties at regular intervals to raise funds.

All the plots are in Sector 9A. Out of the 30 plots up for auction, seven are of 1 kanal size (approximately 5,440 sq ft), eight are of 14 marla (around 270 sq ft), seven are of 10 marla, five are of 8 marla and three plots are of 2 marla. The plots of 1 kanal have a reserve price of Rs 2 crore, while 14 marla plots have a reserve price of Rs 1.37 crore. The 10 marla plots will start at Rs 1.05 crore, and the 8 marla plots have a reserve price of Rs 87 lakh. The 2 marla plots will be available for Rs 24 lakh.

Those interested in bidding for the plots will have to deposit 10% of the reserve price of the plot for which they are willing to bid. “We have received a good response to our properties so far, and are hoping that all the properties will be sold during the e-auction,” a senior Huda official told TOI, adding that residential and institutional properties are easily sold out.

The cash-strapped civic body is banking on selling its properties to meet its daily expenses. For this, Huda has been carrying out auction of property at regular intervals for the last one year. “We are hoping to collect Rs 100 crore in a month from the auction of properties. Till now, we have been putting up 30 properties at a time for auction. We are now planning to increase the limit to put up as many properties as possible under the hammer during an auction,” the official said.

At a time when the real estate market is going through a bad phase, Huda has so far been successful in selling its properties through online auctions. Huda has successfully raised nearly Rs 700 crores by selling its properties through e-auction since May 2016. “We have been getting a very good response from residents. Most of the properties are being sold above the reserve price,” the official added.

Cement demand growth likely to recover by 5% during FY18

MUMBAI: Country's cement demand growth is expected to recover to around 5 per cent during FY18, driven by a pick-up in the infrastructure and housing segments, a report said.

"We expects cement demand growth to recover to around 5 per cent during FY2018 as against a decline of 1.2 per cent in FY2017, driven by a pick-up in the infrastructure segment, mostly road and irrigation projects and the housing segment," ICRA said in a report.

"While in the short term, demonetisation has had a negative impact on real estate and construction activities and hence on the cement off-take, the impact has started to subside from Q1 FY2018 driven by a pick-up in the infrastructure segment.

"Further, the increased budgetary allocation for the infrastructure sector, which includes roads, railways, metro, irrigation and housing, during FY2018 will directly and indirectly support cement demand," said ICRA Ratings senior vice president & group head Sabyasachi Majumdar.

The higher rural credit and increased allocation for rural, agricultural and allied sectors, including the demand for rural housing, are significant contributors to the overall cement demand mix, added Majumdar.

Cement prices have also recovered from February 2017 and reached pre-demonetisation levels in most markets by April 2017. While improvement in the supply-demand scenario in FY2018 is expected to support the cement prices going forward, sustenance of the same is critical, given the rising costs, ICRA said.

 

Source- ET Realty