Rs 408 crore Mahagun Mall in Greater Noida gets green nod

Mahagun Real Estate has received environment clearance for constructing a commercial complex in Greater Noida, Uttar Pradesh, at a cost of Rs 408 crore. The proposed ‘Mahagun mall’ will be developed on 18,694 sq meter plot, which has been allotted by the Greater Noida Industrial Development Authority to the company. The proposal was first examined by an expert panel and based on its recommendation, the Union Environment Ministry has given the final environment clearance (EC).

The EC has been given subject to compliance of certain conditions, the ministry said in the EC letter issued to the company. PTI has reviewed a copy of the letter.  Any appeal against the EC will lie with the National Green Tribunal within a period of 30 days, it added.
As per the proposal, the mall will have 155 shops, 16 auditoriums, 13 restaurants, two family entertainment centres and other facilities. The construction of the mall will not only provide better shopping environment but will also increase the livelihood of people in the area, the company said.

Source- PTI

Economic Survey II: GST has hidden benefits, but needs to be more inclusive

The second volume of the Economic Survey tabled in Parliament on Friday sought to allay concerns that the goods and services tax (GST) was complex while enumerating its ‘hidden benefits’ on the economy as a whole. Additionally, the survey said it was a challenge for the GST Council in the months ahead to ensure that sectors currently outside the ambit of the new indirect tax regime are brought in for a better GST.
The survey prepared by finance ministry economists said that it was inaccurate to compare current GST with an ideal GST, and it should be compared with the previous system of taxation. Further, it said that relative to the past, there was now uniformity and considerably less complexity to the tax system as three-four state VAT rates, varying across states, and 8-10 excise rates had been reduced to six rates under GST.
Although the survey said that taxpayers dealing in goods were less burdened under GST, it admitted that the compliance burden for service providers will increase substantially as they would be required to register in every state of business unlike a central registration earlier. “States were nearly unanimous in insisting for multiple registrations as a way to ensure that they receive their due share of revenues,” the survey said on the decision of the council.
It cited a higher exemption ceiling of Rs 20 lakh annual revenue and composition scheme as beneficial to small traders. “As a result, out of about 87 lakh agents that were previously in the tax net (states VAT, central excise and service tax) about 70 lakh remain in the GST net. A significant number of small traders with turnover less than 20 lakh may have opted out,” the survey said.

Among the hidden benefits of GST, the survey said bringing the entire textile sector and works contracts under the tax net meant that previously partially-taxed sectors — fabrics and real estate — would be formalised leading to transparency and prevent evasion. “The formalisation will occur because builders will need documentation of these input (cement and steel) purchases to claim tax credit,” it said.
Further, GST will remove gaps in the duty structure on imports leading to effective taxation. For example, the SAD was levied at 4%, even though the standard VAT was 12.5% in most states; while in principle firms that paid VAT on inputs could reclaim the tax, in practice there were difficulties getting the tax credits, the survey said and added it would now be rectified.
Additionally, the survey listed benefits such as the expansion of tax base — with nearly 12 lakh new registrations till August 5 — more efficient transportation with the removal of check-posts at state borders and a possible increase in direct tax collections with the availability of the common set of data on taxpayers to both states and centre.
“The longer-term benefits include the GST’s impact on financial inclusion. Small businesses can build up a real-time track record of tax payments digitally, and this can be used by lending institutions for credit rating and lending purposes,” the survey said and added that currently, small businesses were credit-constrained because they cannot credibly demonstrate their financial capability.
In the months ahead, the GST Council will be faced with many challenges to make the current GST a better system. The survey cited the need to include land and real estate and alcohol in the GST to improve transparency and reduce corruption. Bringing electricity under the GST framework to improve the competitiveness of Indian industry because taxes on power get embedded in manufacturers’ costs, and can be claimed back as input tax credit, the survey said.

It also batted for higher GST on jewellery products than the current rate of 3% as these items are disproportionately used by the rich, the survey argued. Extending the same logic, it said that keeping health and education completely out was inconsistent with equity because these are services consumed disproportionately by the rich
Although the survey condoned the multiplicity of rates saying it was needed to keep rates down for essential items consumed by the poor, the rationalisation of rates would pose another challenge to the council.


Source- Financial Express

Instruct states to amend diluted RERA rules or renotify them: Parl panel to govt

Instruct the states to either amend their real estate regulation rules or re-notify them, a parliamentary panel has recommended the housing and urban affairs ministry taking note of many states have diluted the rules in favour of builders.The Committee on Subordinate Legislation has said, “While recognizing that each state have their respective development laws, sanctioning procedures, and other land related unique issues, the committee recommend that the ministry should strictly instruct the states to either amend their Rules or re-notify them in line with the letter and spirit of the Act.”The panel has also mentioned that the real estate regulation law has an overriding effect on conflicting laws being made by some states and the Central government has the power to amend, vary, repeal any state law which has previously received Presidential assent. On this basis the ministry has repealed the Maharashtra Housing (Regulation & Development) Act of 2012.It has asked the ministry to apprise it of the action taken on this recommendation as the legislation is going to have a great impact on real estate sector.Expressing its concern over the states including Uttar Pradesh, Haryana and Gujarat have excluded ongoing projects, the panel has asked the government to ensure the law is applied uniformly. Taking note of builders giving partial completion certificates and handing over flats to buyers, the panel has asked the government to take remedial measures and severely deal with the violators by invoking the penal provision of RERA for ensuring timely completion of projects.The committee has observed that any delay in framing of real estate regulation rules will have the effect of depriving public their legitimate rights. It has asked the ministry to monitor the progress made by states regularly and ensure that all the states concerned frame and implement the rules.

Source- ET Realty

RERA compliance must for builders to avail bank loans

Builders who have been thinking of ways to beat the new Real Estate Regulation Act are fast running out of time as banks, in consultation with the Reserve Bank of India, have decided not to extend loans to those projects which have not been registered under RERA.

"We have to look for some security mechanism, and since RERA is designed to weed out fly-by-night operators, we have decided not to extend credit to projects not registered with it," said a bank official who did not wish to be identified. "Adhering to the regulations will safeguard our interests, it's better to be safe now than regret later."
Banks have also sought additional collateral, including on personal properties of promoters, as guarantees while disbursing loans to a few real estate developers.
"We are very apprehensive because even if we disburse loans as prescribed under the law, the way it is designed, it does not protect our credit. If a loan turns bad, customers will be refunded but there’s no inherent protection for us under the law," said a PSU bank official. "So, we are being extremely careful about lending to the sector."
Under the new law, Real Estate (Regulation and Development) Act, 2016 (RERA), a developer will have to maintain 70% money collected from homebuyers in a separate account, which would leave them with only 30% of the sales proceeds to use for any other purpose, against 100% earlier.

Despite the real estate industry body pushing developers to register under RERA, the turnout has been rather dismal so far.
"We have already directed all our member developers to register their projects under RERA and they have committed to do so," said Jaxay Shah, president of realty developers' apex body The Confederation of Real Estate Developers’ Association of India, or CREDAI.
"The spirit of RERA is to ensure that home buyers shouldn't suffer. While developers are applying for registration, the infrastructure at the authority's level needs to be beefed up to ensure speedy processing of the same. Speed is crucial here because homebuyers are waiting for possession and we cannot further our marketing or financing efforts until we get registered," Shah explained.

The government enacted RERA and all the sections of the Act have come into force with effect from May 1 this year, and the builders had three months to register their new and ongoing projects with their respective state RERAs.
According to RERA, which aims to improve transparency in real estate sector and protect homebuyers' interest, builders are expected to disclose project-related information, including project plan, layout and government approvals-related information to prospective customers.

Any major changes in the project can only be done after receiving the consent of two-thirds of homebuyers in that project. To avoid diversion of funds, RERA mandates that developers should maintain 70% of the funds collected from buyers in a separate bank account in case of new projects.
Maharashtra, apart from Punjab and Madhya Pradesh, was one of the first states to notify its rules under the Act and establish MahaRERA. Until the midnight of July 31 deadline, the regulator had received total 10,852 applications for registration of ongoing projects across Maharashtra, which has now crossed 12,000.

Source-ET Realty

Govt to introduce 'Housing Challenge' to boost Housing for All

NEW DELHI: After the success of Smart City Challenge, the Union government is ready to introduce a similar technology competition to give fillip to the Housing for All programme. The competition – to be called Housing Challenge — would be conducted by states to choose the best and most cost-effective technology for each affordable housing project.

National Buildings Construction Corporation (NBCC), under the ministry of housing and urban affairs (MHUA), has been tasked with providing a working model to the states.

NBCC would handhold the state governments in the initial Housing Challenges. According to sources, the ministry has identified 25 cities where the model can be rolled out on a pilot basis.

The ministry has decided that each competition would be unique. NBCC would frame a “problem statement” for the Housing Challenge. The problem statement would clearly state the problem, or the task at hand.

“The challenge would clearly state that a project involves the number of dwelling units to be built and the probable financial models to fund it. The bidders would have to propose a technology that would achieve the objective and would be the most time and cost effective,” said an official.

The move comes after the Smart City Challenge, which has been used to choose cities to be developed as smart cities, was appreciated by Prime Minister Narendra Modi.

NBCC has finalised a concept paper to explain the Housing Challenge. It has laid out 16 different construction technologies approved for Housing for All and different public private partnership models recently worked out by MHUA.

 

Source- ET Realty

RBI rate cut just before festive season to boost affordable housing demand

Real estate developers and experts feel the reduction in lending rate by the Reserve Bank of India (RBI) just ahead of the festive season will help in boosting housing demand, especially in the affordable housing segment.

A good monsoon in progress, low inflation numbers, favorable global environment and an overall uptick in industry sentiments seem to be the catalyst for this rate cut, according to them.

RBI reduced the short-term lending rate, or repo rate, by 25 basis points to 6% at its third bi-monthly policy review.

Vineet Relia, Managing Director, SARE Homes feels 25 bps reduction in the repo rate will go hand in hand with favorable government measures like RERA and GST which will boost housing demand benefiting both developers and buyers.

"This should also give the required boost to the Realty sector, especially in the affordable housing market," said Abhimanyu Londhe, CEO, SMC IM+ Realty Fund.

However, Shishir Baijal, chairman & managing director, Knight Frank India, said a healthier lending rate could have provided the much-needed thrust to fuel India’s growth story.

"Considering the battery of new reforms in force, a good monsoon in progress, benign inflation numbers, favorable global environment and the overall uptick in industry sentiments a healthier lending rate could have provided the much-needed thrust to fuel India’s growth story," he added.

The central bank has now reduced the repo rate by 175 basis points since December 2014, however, reduction in lending rates by banks have not been in line.

RK Arora, chairman, Supertech feels with the rate cut prior to the start of festival season, the sluggishness in the real estate sector would come to an end.

This is how other industry stakeholders reacted to the RBI rate cut:

Rajeev Talwar, CEO, DLF

The Monetary Policy Committee’s (MPC’s) decision to cut the benchmark repo rate by 25 basis points could not have come at the more appropriate time. The Indian economy is at a point of inflection. Easing procedural bottlenecks, speedier project clearances and reviving credit flows to the productive sectors such as real estate are critical for the economy to decisively move to a higher growth trajectory. Another small rate cut in the coming months should not be ruled out.

Samir Jasuja, CEO & Founder, Propequity

Post demonetization, the real estate sector had witnessed a slowdown in terms of demand. A repo rate cut is prudent because the current inflation rate in the economy is hanging at low levels of less than 2%. A repo rate cut would have a positive impact on the overall economy and the realty sector since it leads to lower borrowing costs for home buyers. With low construction costs borne by developers post GST, a regulated market with the introduction of RERA, and a repo rate cut making the home loan market even cheaper, going ahead the real estate sector is ripe for a positive comeback .”

Manoj Paliwal, CFO, Omkar Realtors & Developers

RBI rate cut by 25 basis points for repo and reverse repo was long overdue since 2016. The rate cut will pump in much needed confidence in the real estate sector due to softing of interest rates which have been stable for quite some time now. With the cost of burrowing coming down EMI’s will see further reduction indirectly increasing affordability attracting more buyers to invest in real estate. RBI move is indeed a good move at the right time.

Brotin Banerjee, MD & CEO Tata Housing Development Company

We anticipate that the rate cut announced today by .25 BPS, coupled with commensurate benefits for borrowers, will impact home loan rate positively and enhance the consumer sentiment. With the market view calling for measures that encourage investment to boost growth numbers, and with the installation of a regulatory regime for the real estate sector, we expect this move to keep the stimulus on for potential home buyers to invest, and to benefit current borrowers.

Anuj Puri, Chairman, Anarock Property Consultants

There is already enough surplus liquidity in the system and the policy change may not result in a greater impact on real estate sentiment. However, it must be remembered that buyer sentiment has been impacted by a number of variables, including overall lack of affordability in the larger cities and the slowdown in IT/ITeS-driven employment. RERA has also induced a go-slow in fresh launches, which means that there will be less fresh supply on the market. Consequently, prices are unlikely to reduce further - and more than interest rates, it is property prices which affect buying decisions. Nevertheless, this monetary policy announcement sends out positive signals to global investors, who are already showing renewed interest in Indian residential real estate on account of the transparency reboot brought on by RERA and GST deployment.

Anshuman Magazine, Chairman, India and South East Asia, CBRE

The RBI's decision to cut the repo rate by 25bp to 6% - a 7 year low – is in line with industry expectations amidst low inflationary trends. We believe that this cut will result in making housing loans cheaper and help credit offtake in the housing sector. In the long run this will provide further impetus to the segment and help in rejuvenating housing sales. Coupled with the other structural reforms introduced in the recent past, this announcement will further enhance activity levels in the real estate and construction sector.

Ashish Sarin, CEO, Alpha Corp

The banks should now pass on the benefits of this rate cut by lowering the mortgage rates thereby making home loans more affordable for the buyers. The slew of policy reforms undertaken by the government in the recent past have been instrumental in reviving the sentiments of customers in sector and further reduction in the interest rates would be influential in propelling demand for real estate products.

Surendra Hiranandani, Chairman & MD, House of Hiranandani

The rate cut of 25 bps today to 6% was on expected lines given the low inflation levels in the economy. We had hoped for a 50 bps cut as good monsoons, favorable global environment and new reforms provided the perfect platform to aggressively cut rates. However, it seems that the Governor wants to look closely at the impact of the recent economic policies before trimming rates further. While the demand for real estate in India remains huge, actual consumption has remained sluggish. Given the liquidity situation prevailing in the market post demonetization, there is scope for banks to cut their lending rate further. The amalgamation of lower interest rates coupled with various progressive measures taken by the government will hopefully help buyers ahead of the festive season.

Amit Modi, Director, ABA Corp and Vice President CREDAI Western UP

Reducing the repo rate by 25 bps from present 6.25 per cent to 6 per cent which is the lowest in six and a half years is a welcome move by RBI as easing interest rate will help revive health of businesses like Real-Estate which are highly sensitive to interest rate movements. While it is indeed a step in the right direction and also after the demonetization now the banks are flushed with cash and don’t have to worry about reviving their bottom lines, they should be passing the benefits of the rate cuts to the end consumers. This initiative has to be transferred to its end beneficiary for any positive effect on ground to the ongoing economic cycle as it will be indeed the single biggest factor in kick starting the economic activity in these stagnant phases.

Shashidhar Pai, MD, Citrus Ventures

For Real estate industry that is going through a major shake-up due to weak demand, tough regulatory changes and ever increasing costs of inputs like steel, cement, tiles etc., a significant reduction in interest rate could have acted as a booster dose. A 25 bps rate cut is like a temporary plaster for a bad wound.

Abhishek Bansal, Executive Director, Pacific Group

Inflation is recording new lows with the last two quarters, observing a great feat. The stock market on the other hand is achieving greater heights, thus signalling a strong market response and getting ready for the long run. Today’s rate cut will only add more weight to the sentiments and push the customers to move towards investments where real estate sector will greatly benefit. As GST is settling down and RERA gaining momentum, real estate sector is projected to become the investment hub very soon.

Avneesh Sood, Director, Eros Group

Implementation of GST has completed its very first month and a great response can be already observed as the buyers’ queries are increasing day by day. A rate cut at this moment will boost these sentiments further where footfalls and conversions are bound to increase. Final festive season of this calendar year is nearing and this rate cut can allow the banks to cut down on their lending rates further. Economy is shaping up well with a growth trajectory becoming visible for the real estate sector as well.

Gaurav Gupta, General Secretary CREDAI-RNE & Director, SG Estates

Indian real estate market is moving strong towards a new era where GST and RERA are leading the way from the reforms front. Pricing, on the other hand remains a vital player for Indian consumers and any dip there is inversely proportional to the demand for property. A reduction in Repo rate today, happening after October 2016, will push the banks to further reduce the lending rates. With transparency increasing in the sector, the low pricing factor will help boost the property demand and further clear the inventory in macro real estate regions.

Deepak Kapoor, President CREDAI-Western U.P. & Director, Gulshan Homz

The realty sector welcomes the repo rate cut by RBI today which is further expected to fuel the demand as the EMIs are expected to fall even more. This rate cut has come at a time when GST and RERA have entered in to a settled phase and the sector is observing a transition where the buyers are increasing their activity and developers eagerly waiting to satisfy the demand. GST’s input tax credit feature coupled with lowered EMIs will further reduce the burden off the buyers and pave way for strong demand-supply matrix in the sector.

Rakesh Yadav, Chairman, Antriksh India Group

The sector was hopeful for a rate cut today and after almost 9 months, RBI has decreased the key rate by 25 basis points. Banks must follow suit in order to pass on the benefit to this sector’s customers. This rate cut has happened in the post GST and RERA era, where customers are looking towards a much transparent and simplified sector where any fall in the cost to the buyers will further enhance the demand for property.

Gaurav Marya, Managing Director, RE/MAX

This announcement by RBI will definitely bring a respite to home loan borrowers and would somewhat help in reviving real estate demand in India. We believe India right now is at inflection point for revival of the real estate sector as sentiment has drastically improved over the last few months and we will finally see uptick in transaction activity, especially in the affordable housing sector as borrowing rates for home loans reduce.

Sanjay Shenoy, Joint Managing Director, Legacy Global Projects

Reduced cost of credit is excellent news for the real estate industry. Eased inflation and GST has brought about the very impact we were looking forward to. The real estate sector has been working hard to bring about increased transparency and ease of doing business with months of toil to implement RERA. The announcement is the very catalyst required to attract investors and spark about a surge in demand, ahead of the auspicious season of festivities to start post August.

Vinod Rohira, MD & CEO, Commercial Real Estate & REIT, K Raheja Corp

The RBI policy review of the financial year 2017-18 has witnessed a change in the repo and the reverse repo rate which will give a much-needed impetus to the realty sector. With the recent change in reforms and policies, this rate cut comes as a blessing improving buyer sentiments. The steps taken are on the right path to address the economy, and we are optimistic that the banks will also pass on the benefit to the consumers, which in turn will help propel the growth of the industry.

Pankaj Bansal, Director, M3M Group

RBI’s decision to lower the REPO rate is on expected lines. Inflation is at its lowest in five years and economic growth is picking up. This revision will positively impact the sentiments surrounding the real estate sector. Banks will now be able to offer loans at more attractive rates. Cheaper loans for home buyers will promote a renewed interest in residential property purchase from end users and investors. The cost of funding for real estate developers should also now reduce. Overall, this move definitely indicates a positive direction for the economy in general and therefore also for the real estate sector, as its performance is directly linked to the basic economic fundamentals.

Ravish Kapoor, Director, Elan Group

We appreciate the decision for reduction in the repo rate as this would boost the liquidity in the system. Easing interest rate will help revive Real-Estate sector which is profoundly sensitive to interest rate movement.

Ssumit Berry, Managing Director, BDI Group

RBI’s decision to reduce the repo rate will surely improve the economy. The lowering of the Repo rate will spur growth of the real estate sector with sentiments of buyers turning favorable. This will ensure uplifted property demand in near future and also boost the affordable housing segment.

Rahul Singla, Director, Mapsko

With RBI’s decision of offering reduction in the repo rate, we can expect further rate cut for home loans. Reasonable loans for home buyers will give a boost to the real estate sector favorably. Industry trends are already pitching for upward growth trajectory, companies are focusing on deliveries & liquidity of their projects, making it the right time to invest in the sector.

Sachin Sandhir, Global Managing Director-Emerging Business, RICS South Asia

The central bank has cut repo rates by 25 basis points to 6 per cent, which is good news for the real estate industry. This is the first rate cut by the RBI in about ten months. The slash in repo rate is on expected lines considering that inflation is under control. The cut will lower interest rates and make home loans and auto loans among others cheaper. Reforms in the real estate sector (RERA/GST) coupled with the rate cut will encourage home sales and we are glad that this cut has come just ahead of the festival season, which usually sees brisk home sales. It will help break the lull in the sector. We are also glad that the RBI governor has taken note of the need for a time-bound single window clearance at the state government level for faster approvals for affordable housing projects. This has been a demand of the industry and RICS for a long time. A delay in securing approvals adds to the cost of a project, so any move towards faster approvals will benefit the affordable housing sector.

Gaurav Shah , Director, Ravi Group of Companies

It is a welcoming step taken by RBI Governor of cutting the repo rate by 0.25 bps to 6% today. This will improve and bring in positive sentiments and spearhead growth for the realty sector, bringing some relief to customers with home loans. Also post RERA and GST, the real estate sector is going through a makeover and these sops by government will surely boost the sector. The move to reduce the rate by the RBI was greatly awaited by the industry and potential home owners alike. This change is well-timed with many looking at the festive and auspicious season as a time to make substantial purchases. We are optimistic about the good sales during festive season.
Also this move of RBI will give a thrust to government’s ‘Housing for all’ initiative that has potential in job creation, improve social infrastructure and give a boost to the Indian economy as a whole. Especially for affordable housing segment, it will prove to be a game changer.

Ashwin Sheth – Chairman & Managing Director, Sheth Corp

The reduction in the repo rates will help in bringing down the home loan interest rates which in turn is likely to bring in some amount of relief to the homebuyers. But, the banks will also have to pass down the benefit to the homebuyers to encourage the prospective buyers to move a step closer to purchase their dream home. Interest rate is one of the important factors as the equated monthly installments (EMI) is directly linked to it. Therefore, if the banks pass on the benefits and the EMIs fall, we feel the demand for the housing should witness momentum as far as buying new properties are concerned.

Pradeep Aggarwal, Co-Founder & Chairman, Signature Global

Implementation of GST has completed its very first month and a great response can be already observed as the buyers’ queries are increasing day by day. This rate cut has come at a time when GST and RERA have entered in to a settled phase and the sector is observing a transition where the buyers are increasing their activity and developers eagerly waiting to satisfy the demand.

Rohit Gera, Managing Director, Gera Developments and VP Credai Pune Metro

The reduction of the repo rate by 25 bps is a welcome step. We look forward to the banks and Financial Institutions transmitting this to home buyers at the earliest. This reduction when passed on will improve the affordability for all segments. The overall affordability for homes over the last 3 years has increased substantially on account of even moderate salary increases, a reduction in the real rates of homes as well as a reduction in the interest rates. This increased affordability is sure to have a positive impact on home buying sentiment in the near future and help convert the need for housing into demand.

Tushad Dubash, Director, Duville Estates

The RBI governor cutting the repo rate by 25bps to 6% today is a welcome step for the real estate sector. Lower interest rates coupled with progressive measures like GST and RERA will improve and bring in positive sentiments and spearhead growth for the realty sector. It is now important that banks now offer home loans at more attractive rates which will incentivize customers to buy their dream home.

Sanjay Jain , Group Managing Director, Siddha Group

The 25 basis point slash in the repo rate and the reverse repo rate in the third bi-monthly policy 2017-18 will have a positive impact on the real estate market. This move is expected to make home loans cheaper if the banks pass on the benefits to the consumer improving the buyer’s sentiment to invest in the market. The Government and RBI are working closely to provide a major thrust to housing for all. Faster GDP growth and declining interest rates will collectively help boost the growth of the real estate industry.

Rattan Hawelia, Founder & Chairman, Hawelia Group

Because of GST impact a sudden dip in real estate sales especially in the affordable category has hit the banking sector home loan business. For long real estate market was looking for measures that encourage investment to boost growth numbers, and with the on set of a regulatory regime for the sector, we expect this move to keep the stimulus on for genuine end user home buyers, and also to benefit current borrowers. At this juncture of struggling real estate sector reduction in repo rate can surely have a revival impact and such move will help to drive the sector sales if the banks will pass on the benefit to home loan seekers.

Pankaj Bajaj, President, CREDAI NCR

It is a welcome cut. More importantly, we hope that the banks will pass on the rate cut to the retail borrowers. Given that the demand for housing is weak at the moment with the current home loan rate of around 8.5% per annum, we are looking at deep cuts in the rate to revive the demand. We hope that the banks will transmit the past and current rate cuts by RBI to bring the home loan rates to between 7 and 7.5% per annum. We think that that will be the inflection point for revival of demand.

Prashant Tiwari, Chairman, Prateek Group

Reduction in the repo rate was an awaited move which will improve the overall market sentiments. The result of this rate cut will be reaped by home-buyers in the form of reduced home-loan interest rates. Moreover, with fall in interest rates, the demand for home loans will also continue to grow stronger. We hope home buyers will take full benefit of this golden opportunity as there couldn’t be a better time than this to invest in property market.

Owais Usmani, MD, Presidency Infraheights

We hope that market will see an upsurge of buyers willing to enjoy the likely rate cuts by the banks. Until and unless banks decide to pass on the benefits it would be difficult to gauge the effects of RBIs step, which came at a time when economic growth is slow. Another aspect is that right now real estate developers are focusing on RERA and GST compliance, projects are not being launched and many projects are stuck. In such a scenario, it can be said that effects will be visible only after some time.

Saurabh Jindal, Joint Managing Director, SVP Group

It was an anticipated move by the RBI as economic activity was at a low for the past two years. By reducing the rates RBI has given a window to the banks to pass on the benefit to the home loan seekers. Hopefully, this step will make more buyers to come forward and realise their dream of owning a house. We should also understand that real estate prices are at all time low and if banks passes the benefits to home loan seekers then this would be the best time to invest in property.

Ravindra Pai, MD, Century Real Estate Holdings 

It is a welcome move, especially to combat the odds industry was seeing in recent times. Cheaper home loan definitely will boost positive sentiments amongst the home buyers and in turn will help the developers to gain the momentum. With RERA ushering in, budget housing getting infrastructure status and RBI rate cuts, we certainly feel good times for the industry are just a stretch away and a matter of a very short time.

Source- ET Realty

Good news for UP builders; Yogi Adityanath government extends RERA registration deadline

The up government on Tuesday decided to extend the deadline for registration for builders under the Real Estate (Regulation and Development) Act (RERA),until August 15, after which it will apply a graded penalty till September 30. The decision was taken by the state cabinet. This will allow builders who could not register themselves and their ongoing projects to do so. Giving details of the changes, interim RERA chairman and principal secretary Housing, Mukul Singhal said developers who have not been able to register on the UP RERA portal till Monday, can now do so without any penalty till August 15, after which graded penalty would be enforced. From August 16 to August 31, registrations would entail 1% penalty, from September 1-15 a penalty of 5% would be charged and from September 16-30, a penalty of 10%.

The total number of projects registered on the UP-RERA portal are 1725, with Gautam Buddha Nagar (Noida) having the maximum number of registrations at 652, followed by Lucknow, which registered 308 and Ghaziabad at 298 projects. A state government official said the total money received from the registration process is Rs 3.38 crore. “While developers have deposited Rs 2.91 crore as registration fee, Rs 46. 75 lakh came as agent registration fee and Rs 15,000 as complainant fee,” he said.

As the UP government had launched the website on July 26, builders had raised the issue that the delay in setting up the portal would make it difficult for them to beat the deadline of July 31 and has asked for an extension.

 Source- Financial Express