Realty stocks see a mixed trend after nod to Real Estate Bill

MUMBAI: Realty stocks on Wednesday ended on a mixed note a day after Parliament gave nod to a Bill that promises relief to home buyers and proposes imprisonment of up to three years, besides monetary penalty for any violation of rules.

Shares of National Buildings Construction Corporation rose by 4.20 per cent, Sobha went up by 1.21 per cent, Mahindra Lifespace (0.89 per cent), Phoenix Mills (0.85 per cent) and DLF (0.85 per cent) on BSE.

In contrast, Prestige Estates lost 2.47 per cent, HDIL (2.12 per cent), D B Realty (1.59 per cent), Unitech (1.33 per cent), Indiabulls Real Estate (1.31 per cent) and Godrej Properties (0.66 per cent).

The BSE realty index ended the day on a flat note, down 0.11 per cent at 1,173.37.

The Real Estate (Regulation and Development) Bill, 2013, approved by the Lok Sabha yesterday, after its passage by the Rajya Sabha, is designed to protect consumer interest, ensure efficiency in all property-related transactions, improve accountability of developers, boost transparency and attract more investments to the sector, the government said.

It provides for setting up of a Real Estate Regulatory Authority (RERA) which will ensure timely execution of projects -- both residential and commercial.

SOURCE: ETRealty.com

RERA CLEARS THE FINAL TEST

      The much awaited Real Estate Regulatory Authority bill that was given a go ahead in Rajya Sabha recently has made it through the Lok Sabha as well. It is now just a matter of time when it is made into an Act after our Honourable President Mr. Pranab Mukherjee puts his signatures on the same. After the upper house test, it was pretty much on the cards that RERA would see through the lower house as well. The buyers of the realty sector have finally got the news that they were waiting for a long time now.

Industry reacts

Mr. Avneesh Sood, Director, Eros Group

After the strong Rajya Sabha test of RERA bill, it was an easy ride for the government to get it cleared in the Lok Sabha, where they are already sitting in the majority. The time of buyers has finally come where they can now blindly trust the sector with a promise of justice. This will in turn help the demand to boost in the near future where we will see the corruption free side of the Indian realty sector.

Mr. Sudeep Agrawal, MD, Shri Group

RERA has finally become a reality now with its passage through both the houses. Customers are overjoyed and are expecting this news to take this sector to a different level. With RERA now in place, developers will follow strict guidelines to make sure that buyers’ sentiments are not hurt and demand flow is kept intact. We will finally witness a much filtered real estate scenario where buyers will now be on top.

Mr. Ankit Aggarwal, CMD, Devika Group

The biggest highlight of RERA in the upcoming few months will be the gradually growing sentiments of the buyers which will pave way for better future demand for housing. Every builder and even the brokers will have to register themselves in order to work in the sector, thus putting a tight leash on the sector. With the real estate bill active, government should now push its focus towards the passage of single window clearance system.

Mr. Rahul Chamola, MD, One Leaf Group

Indian real estate sector will shape up in a different manner now. With RERA on board, each state will have a regulator in place to safeguard the interests of the buyers and promote fair dealings in the sector. The housing demand in particular, will catch up momentum which will allow better performance of the sector. There will now be greater transparency which will make sure retention of buyers in this sector and enhance investments.

Yamuna Expressway to have 2 smart cities in 6,000 hectares

GREATER NOIDA: The Yamuna Expressway authority will develop over 6,000 hectares two hi-tech cities, an industrial township and a heritage city, adjacent to cities of Agra, Hathras and Mathura.

The second phase of YEIDA's Master Plan-2031 was amended at the joint board meeting of Noida, Greater Noida and Yamuna Expressway authorities on Monday. As per the amendment, YEIDA will have two new urban townships, which will comprise of a 100% dedicated industrial area and a heritage city to promote tourism. The board has approved the draft amendment in principle. After putting the plan in public domain, YEIDA will forward it to the state government for final approval. According to officials, the authority will proceed with developing the new townships once cleared.

In August last year, YEIDA had decided to reorganise the area falling under Phase II of its Master Plan-2031. A detailed survey encompassing 1,188 villages was carried out along the expressway between Greater Noida and Agra with focus on sustained and controlled development.

YEIDA CEO Arun Vir Singh said the "two new urban centres" will be developed into smart cities. "Tappal-Bajna will be developed over 3,874 hectares, while Raya will be spread across 2,443 hectares," he said.

YEIDA officials said, Phase-II includes more than double the area of Phase-I in the Master Plan 2031. In Phase-II, land has been reserved for green spaces besides mixed land use including industrial, residential and institutional. Recreational green areas and corporate spaces have also been earmarked along the Yamuna Expressway in the Master Plan.

"The dedicated tourist zone in the Raya urban center will have a riverfront in 110 hectares of land with 25 hectares of water bodies and recreational area covering 315 hectares. The tourism zone will sprawl across 731 hectares," said Singh.

"We hope to give tourists to Vrindavan-Mathura-Agra-Hathras circuit a world-class space and put it on the global tourist map," he said. "The tourist zone will also come equipped with amphitheater, open air theaters, museum, theme based heritage center, Haat for development for local arts and crafts, trails and rural tourism center," he explained.

The Tappal center meanwhile will boast an area dedicated completely to industry. The area will include mixed land use space and recreational zone across 800 hectares besides water bodies and natural features over 30 hectares. "This area will cater to stakeholders from the DMIC project and its dedicated industrial township. We will woo large industrial houses and big international brands to set up their warehouses here," Singh added.

Singh told TOI that once they get a green signal from the government, they will commence the process of developing the two new pockets. "These will be smart cities or urban settlements that exploit technology to offer more structured and hospitable living conditions for residents," he said. "The infrastructure of these cities will be equipped with systems aimed at better management of energy resources, water, transport and traffic, safety and security. Information and communication technology will form the backbone of these future cities," he added.

SOURCE: ETRealty.com

RERA CLEARS THE FINAL TEST

New Delhi: The much awaited Real Estate Regulatory Authority bill that was given a go ahead in Rajya Sabha recently has made it through the Lok Sabha as well. It is now just a matter of time when it is made into an Act after our Honourable President Mr. Pranab Mukherjee puts his signatures on the same. After the upper house test, it was pretty much on the cards that RERA would see through the lower house as well. The buyers of the realty sector have finally got the news that they were waiting for a long time now.

Key Highlights of the Bill

Following points will help us to understand how the Real Estate Bill helps the property buyers, developers and the sector:

1. Each state will get a real estate regulator who will help in settlement and imposition of compensation. All residential and commercial projects will have to compulsorily be registered with the regulator so that buyers can have access to valid projects. Even the ongoing projects that have not received the completion certificate will be covered.

2. Without a prior registration with the real estate authority, developers cannot advertise or launch projects.

3. Developers will have to sell property on the basis of carpet area and not super area.

4. In order to ensure transparency about the projects, developers will have to disclose layout plans, submit clearances and name the associates, architect, contractor and others with the regulator.

5. For timely completion of the projects, promoters will have to deposit 70 percent of the amounts realised from the buyers in a separate bank account within 15 days, for construction purposes. Consent of two-third buyers will be required to alter plans, structural designs and specifications of the building. In this case, each buyer, no matter how many properties they hold in one project, will be counted as one vote only. Developers will be responsible to rectify structural defects and refund money in cases of default.

6. Brokers will also have to be registered with the real estate regulator; non-compliance of which will be punishable.

7. Developers will have to deliver projects on the promised date mentioned by them. In case of failure of timely delivery of projects, the buyers can claim refund with interest and compensation.

8. In cases of violation of rules by the developers, projects will be de-registered and attract heavy penalties. Non-compliance will invite fine up to 10 percent of project cost and misinformation will cause a fine of 5 percent of project cost. Meanwhile, the fine for the agents is Rs. 10,000 for each day during the tenure of violation of provisions.

9. The loss in taxable income caused by builders asking the buyers to pay certain amount in cash will now be curbed, thus eradicating corruption.

10. The bill will regulate both, residential and commercial projects.

PROPERTY GURU AND HIGHEND WINDSOR PARADISE IN ASSOCIATION WITH RELIANCE PROPERTIES LAUNCHES MAHILA AWAS YOJNA

Ghaziabad: After series of successful ventures and years of immense experience in real estate consultancy, NCR’s leading real estate consultant Property Guru has tied up with Reliance Properties for the launch of 'Mahila Awas Yojna' for several projects being developed in  Ghaziabad’s Raj Nagar Extension. With this, they have also brought along their maiden specific Mahila Awas Yojna for the project Windsor Paradise being developed by Highend  Developers.

A total of 300 units of 2 BHK flats have been kept aside imperatively for this scheme under which a flat discount of 20 to 25 percent would be given to women buyers. It must also be noted that this scheme has been approved exclusively by the State Bank of India which makes it an eye catcher instantly. There are also provisions for availing upto 50% loan on the booking amount as well. Also, the registration fees have been kept as low as Rs. 11,000 only for women buyers. There have always been talks of women empowerment and the Indian real estate sector also employs a large number of women but no such offer had yet been brought forward in the market. The basic amenities such as gymnasium, 24*7 special security arrangements, yoga centre, crèche and shuttle services would be available in the project as well.

Accomplishing such a distinguishing feat, Mr. Vikas Sahani, CMD, Property Guru was quoted saying, “Women have been the pillar of strength in this society for quite some time now and still there was not much available on cards for women looking to make investments in the property market. We have been on the think table for long to bring about such a scheme wherein we would provide exclusive opportunities to women buyers to own a roof. Raj Nagar Extension was the first choice because it is currently one of the hottest real estate destinations in NCR. Subsequently, after monitoring the success of this scheme, we would be launching it in various other cities such as Noida, Greater Noida West, Jaipur, Lucknow, etc. in tie up with other developers. The scheme holds an additional plus because of it’s approval by the State Bank of India wherein the bank would be offering special rate of interest to women seeking home loans for purchases made under this scheme.”

These 3 builders will gain the most from Realty Bill

Select property developers with good reputation in the market will benefit most from the recent Real Estate Bill as they already follow most of the norms laid out in the bill.

Analysts said Oberoi Realty, Godrej Properties and Prestige Estates are likely to benefit the most as they compete in the most unorganised market. The real estate bill will lead towards greater transparency, stringent regulations and timely completions, said analysts. It will also attract higher FDI, bringing in the much needed funds to the sector.

SOURCE: ETRealty.com

New law may revive NCR realty market

New Delhi: The Real Estate (Regulation and Development) Act will go a long way in bringing transparency into an industry plagued by a credibility crisis while ushering in more financial discipline among developers.

Industry watchers are hopeful that the law will help instrument a revival of the real estate sector in NCR, particularly Gurgaon, Noida, Greater Noida and Ghaziabad, which has been going through a prolonged slump. The main reason for the slowdown, consultants say, is the loss of credibility among developers in the eyes of buyers due to huge delays in completion of projects, in some cases by more than 10 years.

Besides, developers hardly pay any penalty to customers. Therefore, buyers land up paying EMI on loans taken to purchase the apartment and the rent for their homes. This has turned away potential buyers from the market and abetted the slowdown. But with the real estate industry now governed by a law, homebuyers can bank on legal safeguards on their investments. Under the Act, builders can be punished with imprisonment up to three years for violations. The Act also has a provision of stiff penalties for project delays that stipulates that builders should pay the same interest to customers that they charge them in case of a default in payment.

The RERA, as the Act is known, brings existing projects within its ambit. But since real estate is a state subject, the Act leaves it to state governments to announce guidelines on completion schedules of houses. A state government has to appoint a regulator, which will frame rules to govern the real estate sector.

The realtors' community is unhappy about ongoing projects being brought within the purview of the new legislation. Realtors' association Credai said it would mean stopping work to ensure ongoing projects comply with the new law.

"This is not only time-consuming but also poses insurmountable difficulties in determining the nature and scope of regulation for ongoing projects,'' said Credai president Getamber Anand. If a project has already been sold to the extent of 50% and construction is under way, it is practically impossible to make the rest of the project compliant with the Act. It would also be prohibitively expensive, Anand pointed out. The Haryana government has expressed its intent not to include existing projects in the new Act. In Delhi, a number of projects running behind schedule may now see the light of day.

SOURCE: ETRealty.com