Home prices go down by 5-10% due to demonetisation: Housing ministry

NEW DELHI: Post-demonetisation the real estatesector saw a drop in prices by up to 5-10 per cent, according to data shared by the housing and urban affairs ministry. In fact, there could be further price correction and the ministry is optimistic most of the nonserious and fly-by-night players will vanish soon, housing and urban affairs minister Hardeep Singh Purisaid on Wednesday.

Claiming demonetisation had the maximum positive impact on the real estate sector, Puri said this had been one of the main hub of parking black money. "There has been some correction in prices and the ultimate beneficiaries are the end buyers," Puri told TOI.

Added to the drop of 5-10 per cent in property prices, many developers offered freebies during the past one year in the range of 5-7 per cent.

Together, effectively the discount/ correction is expected to be up to 15 per cent, the ministry said.

The data also show that the average resale price of properties witnessed a dip of 10-15 per cent immediately after demonetisation. However, price correction has happened in the past couple of months in the case of ready-to-move in properties.

Similarly, new launches of projects since January has been less across top 10 cities including Noida, Pune, Mumbai, Chennai, Hyderabad, Bengaluru and Ahmedabad. Only exception has been Gurgaon which has witnessed 72 per cent increase in new launches on year on year basis in the case of affordable housing segment under the state government scheme, the ministry data said.

Puri said the implementation of Real Estate Regulation Act (Rera), transparency in the sector and impact of demonetisation will bring a new phase where the ongoing projects will get completed. "Some states have messed up the issue of ongoing projects. But we are trying hard to push the case of genuine buyers," the minister said.

"All the initiatives we have taken will have their impact. Many of the projects will get completed by the builders or by some other entities," Puri said.

Source- ET Realty

North India real-estate witnessed 15% growth this festive season

This festive season has brought cheers on the faces of realty developers. As per the recent reports, North Indian realty sector has witnessed a growth of over 15% in demand. The demand has been spread across commercial & residential projects, both. Also the demand was also seen in multiple developing zones in North India. Majorly the demand was reported in the NCR region but tier II cities like Mohali, Panipat, Karnal, Dehradun, etc. fared equally well.

TDI Infratech's CONNAUGHT PLAZA, a commercial offering in TDI CITY, Mohali saw a huge list of top retail brands like Garam Dharam, Warehouse Cafe, Beer Cafe, Looks Saloon, Bikanerwala and Neo Fitness picking up retail spaces. Talking about the increase in demand for commercial projects, Akshay Taneja, MD, TDI Infratech Ltd. says, "Commercial projects have always been in demand due to the high returns which one receives. This festive season witnessed an upheaval in demand for commercial real estate where retail was in focus. And it is bound to grow more in coming times."

Talking about NCR realty, Deepak Kapoor, President CREDAI-Western U.P. & Director, Gulshan Homz says, "NCR realty due to its multiple offerings under different pocket sizes suits everyone's needs and hence has a constant demand of end user. With festive offers and also with RERA in place, the sentiments were quite positive which eventually resulted in increased demand for group housing & commercial projects, alike."

Saya Group, which is all set to deliver over 500 units in it’s project Saya Zion, Greater Noida West will be again delivering its project before time. Vikas Bhasin, MD, Saya Group says, "A lot of bookings in the sector have taken place and simultaneously possessions have been offered. Families are taking possession considering the auspicious time and this momentum will be carried till end of the year. What this entire scenario will allow is the market to behave in a systematic manner so as to allow the positive sentiments flowing regularly which will help the sector to follow a well-directed roadmap to better shape the upcoming year. We will also be soon starting possessions for our project in Greater Noida West."

Realty major Sikka Group has handed over possession of approximately 400 units in which 300 families have already shifted in its project, Sikka Karmic Greens, Sector 78, Noida. Commenting on the same, Piyush Sharma, Senior Vice President, Sikka Group says, "Possession is the key to success in real estate now. Projects need to be constructed within a stipulated time and offered possession within time as well. This year has been a year of possessions and it has resulted in increased demand this festive season."

Gaurav Gupta, General Secretary CREDAI – Ghaziabad & Director, SG Estates says, "Budget housing is in major demand for housing units in the price bracket of 30 to 50 lacs. Areas like NH-24, Siddharth Vihar & Rajnagar Extension in Ghaziabad saw a huge upsurge in demand this festive season. With UP- RERA in place, a positive sentiment has come in the market."

Powered Paragliding to fascinate all

Greater Noida: The Gaur Yamuna City located near Yamuna Expressway, Greater Noida inaugurated Powered Paragliding to captivate people who aspire to fly. The astonishing inauguration launch was marked by the presence of Dhirendra Singh, MLA,  Jewar where he inaugurated the first enthralling flying adventure activity in the state.

It’s the adventure sports company “Tejas” that has successfully installed the state’s first Paragliding center in Guar Yamuna City. The company has previously installed similar flying adventure centers in regions like Mumbai and Rajasthan. Powered Paragliding is the safest, affordable, and most convenient way to enjoy the adventure of flying in the air. The launch has come as a huge present for the residents of Gaur Yamuna City as they will be able to enjoy the sport at with full convenience at a lesser price.  The initiative is said to boost the tourism in the region while making the youth aware of the adventure sports. The best part of this adventure sport is that it takes less than a week to learn and everyone can safely enjoy this adventurous sport.

Govt may reduce GST on construction materials

NEW DELHI: The GST Councilmay reduce the number of products in the highest slab, following a series of complaints by state finance ministers, who have argued that several common-use products face a 28% levy, causing hardship to people.

At least two state finance ministers told TOI that a number of items like bath fittings, cement, steel products such as rods used for construction are in the top bracket and do not belong there. “The idea was to classify the goods and services into merit and non-merit goods with the non-metrit goods in the top bracket. But we have gone beyond that,” said a state finance minister, who has usually sided with the Centre on most issues.

The minister said the “block” was too big and needed to be reduced. On Saturday, CBECofficials had also said that there were far too many items in the top slab.

The second state FM said the issue is expected to be discussed at the next meeting of the Council scheduled in Guwahati, given the concerns expressed by several states. “In the medium-term the aim is to move to fewer slabs,” the minister said. Finance minister Arun Jaitley had last week reiterated the plan to move to fewer slabs in the future.

Some of the state government officials also believe that the 28% levy was also resulting in sellers evading taxes as it is quite common for shopkeepers to advise buyers to pay in cash, where no invoice is issued.

The talk of reducing the number of products in the top bracket follows finalisation of a concept paper at last Friday’s GST Council meeting. It was decided that a formula for review, including the need for reduction in slabs, the tax credits available and revenue impact will have to be discussed by the Council in detail before a decision is taken, said a source. Separately, the government has also announced the establishment of a panel of state FMs, which will review the tax structure for different categories of restaurants for a possible reduction or rationalisation. Restaurants currently face a levy of 12% to 28%, depending on whether they are mere eateries or restaurants in five-star hotels.

In addition, the panel has three other terms of reference, including possible exemption for sales revenue from exempted goods in calculating the overall turnover of an entity, a decision that is fraught with the risk of massive leakage from the government treasury.

The committee will see if the composition scheme can be extended to outward supply of goods. The scheme allows traders (1%), manufacturers (2%) and eateries (5%) with turnover of up to Rs 20 lakh to Rs 1 crore to pay GST at a flat rate with a lower compliance burden. In deciding GST rates, the government had opted for a principle of equivalence, where the combined incidence of VAT and excise, or service tax, was factored in. The Centre’s focus was on ensuring that there was no rise in the burden on common-use items, especially those which are part of consumer price index, while protecting its revenue. Several items such as stationary were put in the top bracket, decisions that have already been tweaked.

At the same time, the GST Council, comprising the Centre and the states, had consciously opted for multiple tax rates in segments such as restaurants and hotels with the luxury segment in the top bracket.

Source- ET Realty

Real estate sector will bounce back soon, says minister

Now that the government has brought real estate under a regulatory framework, it is likely to bounce back soon from its present state of slump, Union Minister of State (MoS) for Housing and Urban Affairs Hardeep Singh Puri said on Thursday.

"The real estate sector has run into some problems for various reasons, but I have reasons to believe that this sector will soon bounce back," Puri said at an event organised here by the ministry on the occasion of World Habitat Day.

"The government has brought real estate under a regulatory framework in the interest of the sector," he added.

He said the Narendra Modi government had taken several initiatives to give a boost to the housing sector and in particular to affordable housing to meet the housing needs of the people.

"The government is committed to ensuring a decent living habitat for all in urban areas and in particular for the poor and has taken various initiatives in this regard," he said, adding that new urban missions launched during the last three years constituted an "integrated urban habitat model".

The minister said the new urban missions launched by the government, like the Pradhan Mantri Awas Yojana (Urban), were at the core of ensuring affordable homes to the poor and the needy while other missions, like the Atal Mission for Rejuvenation and Urban Transformation (AMRUT), aimed at enabling the much needed basic infrastructure for a decent habitat.

Under PMAY (Urban), the ministry had so far approved construction of 28,57,321 affordable homes for economically weaker sections, low and middle income groups with an investment of Rs 1,54,180 crore. Central assistance of Rs 44,278 crore had been approved for these houses, Puri said.

Source- Business Standard

RBI caps banks exposure to Reits,InvIts at 10% of unit capital

MUMBAI: The Reserve Bank on Monday amended the statutes making it possible for lenders to invest in Reits and InvIts capping such exposures to 10 per cent of the unit capital of such instruments, and also to regulate their commodity derivatives play.

In amendments to the Master Direction- Reserve Bank of India (Financial Services provided by banks) Directions, 2016, the central bank said banks should not invest more than 10 per cent of the unit capital of a real estate investment trust (Reit) or an infrastructure investment trust (InvIt) subject to overall ceiling of 20 per cent of its net worth.

The master directions first issued in May last year did not provide for investments in the Reits and Invits, both newly introduced instruments.

The RBI also prohibited banks from becoming a professional clearing member of commodity derivatives segment of Sebi-recognised exchanges unless it satisfies certain prudential criteria.

These include bank satisfying membership criteria of the exchanges and complying with the regulatory norms laid down by Sebi and the respective stock exchanges and putting in place board-approved risk control measures, among others.

The RBI also prohibited banks from offering broking services for commodity derivatives segment of Sebi recognised stock exchanges except through a separate subsidiary set-up for the purpose or one of its existing subsidiaries.

Laying down the conditions for allowing broking services, it said there should be an effective risk control measures, including prudential norms on risk exposure, in respect of each of its clients, taking into account their net worth and business turnover.

The central bank also barred the subsidiary from undertaking proprietary positions in commodity derivatives.

The amendments also remove references to corporate debt restructuring and strategic debt restructuring in the earlier master directions.


Source- ET Realty

Dwarka Expressway: Home buyers at NHAI door for faster completion

GURUGRAM: Nearly 50 members of DXP Welfare Association, which represents 34 residential projects on Dwarka expressway, approached NHAI officials on Saturday for expediting the completion of the national highway. The expressway project, which was launched a decade ago, has seen multiple delays due to land acquisition hurdles.

“We are unable to shift to our homes due to the non-completion of the highway. Though the Dwarka expressway was declared a national highway 18 months back, the actual work towards the completion of this project has not taken off till date,” stated a letter submitted by the homebuyers to NHAI officials.

However, the homebuyers expressed happiness in the fact that a tender for a portion of the expressway has been released recently. NHAI also recently announced NCR’s longest-elevated corridor on the expressway.

The homebuyers are, however, still unsure of the timely completion of the project as the multiple delays in the past 10 years have taken a toll their patience levels. “The six-lane elevated highway sounds like an ambitious plan to ease traffic and pollution level, but still there is no concrete plan from the government side for the timely completion of Dwarka expressway,” said Yashesh Yadav, president of DXP Welfare Association.

The delay in the project has primarily been caused due to hurdles in land acquisition, and litigation and protests by oustees. “We don’t see the desirable seriousness from authorities towards resolving the issues pertaining to the completion of the Dwarka expressway. From the past one year, the issues have only increased and even today there is no connectivity between the existing portion of Dwarka expressway and NH-8 or towards Delhi,” said Pradip Rahi, another affected homebuyer.

Envisioned as the fourth link between Delhi and Gurgaon — after MG Road, NH-8 and Old Delhi-Gurgaon road — Dwarka expressway originates at Shiv Murti in Delhi and ends at Kherki Daula in Gurgaon, near the toll plaza on the highway. In all, around 90,000 homebuyers are affected due to the delay in the completion of the project and many have not been able to move into their flats because the road is still incomplete.

Despite repeated attempts, NHAI officials could not be contacted.

Source- ET Realty